Harris Corp. reported a contract to provide its new Series 3000 multimode transmitters to enhance air traffic control communications in Mexico. The new equipment will replace analog ground-to-air radio systems with 50-watt synthesized transmitters compatible with new digital waveforms.
American's traffic increased 1.1% in August on 1% more capacity, which left the load factor unchanged at 74.7%. The airline continued its international expansion at the expense of the U.S. market. International traffic increased 7% on 9.3% more capacity, while domestic traffic fell 1.5% on 2.5% less capacity. The airline carried 7.42 million passengers in August, 100,000 fewer than during August 1997. American's largest international division, Latin America, posted a 6.1% traffic gain on 6.8% more capacity, reducing the load factor 0.5 percentage points to 68.5%.
Canada's WestJet Airlines reported sharp gains in second quarter revenues as net profits doubled to C$1.3 million (US$818,000). The airline, which operates six Boeing 737s, posted a 79.2% increase in revenue to C$27.9 million ($18 million). Traffic during the period grew 61%, slightly ahead of the 60.6% capacity increase. The load factor rose to 67.5% from 66.2%, despite the addition of two aircraft and increasing flights per week to 411 from 326.
Lufthansa will start daily Frankfurt-Detroit and Frankfurt-Philadelphia nonstops, beginning March 28, 1999. Both will use Airbus A340s. The airline returns to Philadelphia after a five-year absence.
Travelocity is offering 1,500 bonus miles for booking on American, Continental, Northwest and United, plus hotel stays or car rentals, through the Travelocity web site during September. Travel must be completed by Dec. 31, and bonus miles must be redeemed within 30 days after travel is completed. Bonus miles can be claimed only for the airline on which the flight is taken.
Cargolux has purchased its first 747-400F simulator from CAE Electronics Ltd., Toronto, for use at a new Cargolux training center near Luxembourg Airport beginning in December 1999. Cargolux will have nine 747-400 freighters by the time the simulator comes on line, but it intends to make training time on the device available to pilots from other carriers to help defray costs.
U.S. airline and manufacturer stocks were battered by the downturn in world financial markets, with all major companies posting significant declines. Among leading airlines, all except Alaska Air Group showed double-digit stock price declines during August. American parent AMR posted the largest one-month decline, as its stock fell 23.7% in the 31-day period, finishing at $54.50 per share. Stocks of Continental, TWA, United and US Airways all fell more than 20% last month.
Amadeus introduced Project Vista, its new browser-based front office system at a recent consumer conference. The system, to be marketed and supported by Amadeus, is a comprehensive web-based reservations network with access to Amadeus's GDS and the World Wide Web, delivered through a single communication line. Users do not have to switch between making a reservation and accessing the Internet or electronic mail.
US Airways asked DOT yesterday to dismiss its complaint against the U.K. over its inability to secure viable slots at London Gatwick Airport, filed in March (DAILY, March 13). It said that while the U.S. "has not thus far succeeded in securing the commercially viable access" US Airways seeks as the U.S. carrier designated for Charlotte-Gatwick service, it has "recently obtained a personal assurance" from DOT Secretary Rodney Slater that the U.S. will continue efforts to gain such access to Gatwick for the carrier's service from Charlotte on a year-round basis.
Israel Aircraft Industries' Bedek Aviation Group redelivered a 747-200 to United Parcel Service following a conversion from passenger to full freighter configuration and a C check, service bulletin implementation and strip and paint. The conversion is the fifth for the company and the third for UPS.
A conference last week on GPS interference and mitigation techniques failed to convince at least some attendees that signal interference issues can be resolved easily. Sean Gilmore, MIT Lincoln Laboratory, told the Aug. 27 conference at the Volpe National Transportation Systems Center, Cambridge, Mass., that noise jammers will work on the civil C/A code at a range of 85 kilometers, and that spoofers, which transmit a fake GPS signal to the user, will work out to the horizon.
Boeing Commercial said yesterday it selected five mills to supply aluminum flat-rolled products and small and intermediate extrusions for the next 10 years. The agreements, valued at $4.3 billion, are part of the "new, lean procurement strategy" the company announced July 6. Under this strategy, Boeing will buy directly from the mills and then provide the materials through a single distributor to its external suppliers "at a reasonable price." The five mills are the Aluminum Co.
Summary of U.S. Major Carriers International Revenues and Expenses First Quarter 1998 Total Operating % Passenger Freight Revenues Change Revenues Revenues Alaska 26,691,000 1.90 25,203,000 488,000 Latin 26,691,000 1.90 25,203,000 488,000 American 1,220,580,000 4.13 1,059,004,000 80,188,000
United States Air Tour Association said a recommendation that air tours be prohibited from overflying Glacier National Park is a "serious breach of faith on the part of the National Park Service." Steve Bassett, USATA president, said the Glacier draft general management plan contains a proposal to eliminate air tours. He said that for more than a year, a nine-member National Park Overflights Working Group, working closely with groups such as USATA, "negotiated in good faith and developed a consensus process to effectively manage air tours over national parks."
Emirates has appointed Nabil Sultan, currently the airline's manager in Dubai, to general manager-U.K. and Ireland. Current U.K. Manager Mohammed Qasim Al Ali will become general manager-passenger services for DNATA, ground-handler at Dubai Airport and a division of the Emirates group.
DOT granted an initial two-year exemption for American to provide scheduled combination service between points in the U.S. and Aberdeen, Scotland, and authority to integrate the exemption with its U.S.-Manchester, U.K., authority. American will operate the Manchester-Aberdeen segment under its code share with British Midland. (Docket OST-98-4147)
FAA Administrator Jane Garvey said this week she has named Lynne Osmus to succeed Patrick Poe as director of the agency's Europe, Africa and Middle East Office. Poe will become administrator for the Alaska Region. Marie Dominguez was hired as deputy chief of staff and counselor to Garvey. Osmus worked as chief of staff for Garvey since 1995. Poe has led FAA's European office since 1991. Dominguez was special assistant to the President and associate director of presidential personnel.
DOT granted Air Atlantic Dominicana amended exemption authority adding new Dominican Republic terminal points to its existing U.S.-Santo Domingo authority. The carrier received authority to fly from Puerto Plata, Punta Cana, Barahona and La Romana in the Dominican Republic to the co-terminal points San Juan, Puerto Rico; Miami, and Newark/New York. (Docket OST-96-1863)
Aviation Industry Stock Performance August 1998 Closed Closed Monthly Change Symbol 8/31/98 7/31/98 ($) (%) Alaska Air Group ALK 38.938 42.125 (3.187) (7.6) America West (Class B) AWA 19.438 24.375 (4.937) (20.3) AMR 1 AMR 54.500 71.438 (16.938) (23.7)
Delta said yesterday it is stopping efforts to launch a code share with United after failing to persuade Delta's Air Line Pilots Association unit that the code share should proceed even in the absence of a voting seat for the union on its board. The union had insisted on the seat as a precondition for backing the code share, over which it has veto rights under the scope clause of its contract. Delta Chief Executive Leo Mullin expressed disappointment yesterday but said he was committed to working constructively with his "extraordinarily professional" pilot group.
City of Fort Worth asked DOT to dismiss its Love Field airport service proceeding, requested an extended deadline if not dismissed, and sought full disclosure surrounding a June 30 letter from a key DOT official to Continental Express attorneys in litigation on Love Field issues. DOT started the proceeding in an effort to quickly end much of the litigation concerning air service limits at the airport (DAILY, Aug. 26). Fort Worth has sued Dallas and other parties to block additional long-
William Schoneberger will receive United Technologies Corp.'s Lauren D. Lyman Award Sept. 28 at the National Press Club in Washington. A reception is scheduled at 11:45 a.m. and a luncheon at 12:30 p.m. For more information, call the Society of Aerospace Communicators at 301-652-3381.
Lufthansa plans to equip its 48 long-haul aircraft with latest-generation seats in economy class by spring 1999 at a cost of about 80 million Deutschmarks (US$46 million). Passengers will be able to adjust seat height, move headrests sideways, and recline as much as 23 degrees. The carrier upgraded first- and business-class seats last winter.
Half-year net earnings for TNT Post Group (TPG), the Dutch courier and mail company, increased 18% compared with the same period in 1997. TPG predicts comparable results for the second half as well. Sales volume grew 8% to 7.95 billion guilders (US$4 billion) as TPG's small logistics division showed the strongest growth, nearly 21% to NLG 1.11 billion ($558 million). Group operating income rose 8.7% to 685 million ($344 million) and net profit jumped 18% to 365 million ($183 million).
BehavHeuristics Inc., (BHI), Hanover, Md., launched FarePrice, describing it as a "new, affordable online airline pricing solution that allows airlines to enhance their revenues." BHI said the system could prove especially useful for small and midsize airlines.
