Embraer reported that revenues in the first half of 1998 soared to $563.1 million from $471.7 million in the same period last year. Profit for the first half declined to $40.8 million from $51.8 million. Mauricio Botelho, president, said 89% of first-half revenues came from export sales. He said Embraer has registered four consecutive profitable quarters following a loss of $80.3 million in the first half of 1997. The company delivered 44 aircraft during the period, including 26 ERJ-145s.
United took its latest step yesterday to reshuffle capacity in its Pacific division, reflecting ebb and flow of passenger demand on different routes. This time, the carrier is trimming service from San Francisco to Tokyo and adding capacity from Tokyo to Seoul. Effective Oct. 24, Tokyo-San Francisco flight frequencies will fall to 14 per week from 17, and United will use the three freed-up Tokyo Narita slots to increase Tokyo-Seoul service to 10 weekly flights from seven, effective Oct. 28.
Officials of the Interactive Travel Services Association met last week with DOT to discuss their concerns about competition. ITSA represents independent online travel agencies, which sold an estimated $816 million in airline, hotel and other bookings in 1997. At the meeting, ITSA elaborated on its competition policy filing (Docket OST-98-3713), which focuses more on alleged unfair practices by airlines aimed against ITSA members than on DOT's proposal to protect niche carriers from majors.
Air Exel Netherlands applied at DOT for an exemption to code share with Northwest between Paris and Eindhoven, Netherlands, for at least one year or as long as the U.S.-Netherlands open-skies agreement is in effect. The Dutch carrier, which operates in Europe as KLM exel, said it operates intra-Europe flights, including Paris-Eindhoven, under its "special exclusive marketing arrangement with its strategic partner, KLM." The Eindhoven flight would connect with Northwest's Detroit-Paris service.
Experimental Aircraft Association President Tom Poberezny called on FAA to help fund the Cargo Airline Association's trials of automatic dependent surveillance-broadcast (ADS-B) and said his members will offer assistance in the technology effort. EAA, which backs development of the system as an enabling technology for the Free Flight concept, believes the technology will be advantageous to general aviation, he said. "EAA encourages FAA and RTCA to explore the requirements and develop standards that will lead to early implementation of ADS-B," Poberezny said.
Approved an Airtours International Airways charter using an Air-Atlanta Icelandic 747 for one roundtrip carrying 484 passengers on a London Gatwick-Sanford, Fla., routing Aug. 14-18...Approved an Air Charter World charter using an Air Foyle An-124-100 for a one-way flight carrying 95 tons of computers on a Singapore-Manila-Osaka-Petropavlovsk/Kamchatsky-
Air Canada will become the first carrier to offer scheduled service between Toronto and New Orleans when it starts flights Oct. 26. The daily flight will use DC-9 aircraft and is being launched with a $227 roundtrip fare.
UPS says its domestic ground volume remains below year-ago levels due to the August 1997 Teamsters' strike. Its U.S. work force numbered 293,868 as of June 30, compared with 307,807 a year earlier. The global work force also is down.
Aspen Mountain Air (AMA) says it has not agreed to a schedule for the return of its nine Fairchild Dornier 328 turboprops to the manufacturer following its Aug. 7 filing for Chapter 11 bankruptcy protection from creditors (DAILY, Aug. 14). Chief Executive Pat Imeson said interim financing is in place and payments are being made.
Northwest, which has blocked several proposed domestic fare increases due to public pressure from its labor troubles, is becoming "less relevant as a near-term competitor," according to PaineWebber analyst Sam Buttrick.A 4% fare hike suggested by American and United last week likely will stick despite Northwest's reaction. "If Northwest isn't flying, its fares don't matter," Buttrick said.
Reno Air reported a 6.4% decrease in traffic on 3.9% less capacity in July compared with the same month last year, which depressed the load factor 1.9 percentage points to 71.7%. Reno flew 292.4 million revenue passenger miles on 407.6 million available seat miles. For the first seven months of 1998, RPMs rose 0.6% on 2.6% more ASMs, reducing the load factor 1.4 points.
Boeing said Friday American ordered 15 more 777-200ERs valued at $2.1 billion, bringing the carrier's total 777 orders to 34, all powered by Rolls-Royce Trent engines. Deliveries are to begin in March 2000 and continue through August 2001. American named Boeing in November 1996 its preferred airplane supplier and announced orders for Boeing products over the next 20 years. Boeing said it began building American's first 777 last week and plans to deliver it in January.
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day First Quarter 1998 DC-10-10 American United Total Number of Aircraft Operated 13 22 35 Total Fleet Operations Departures 27 54 81
FAA Technical Center will conduct a drop test of a 30-passenger Shorts 330 aircraft Thursday at its vertical drop test tower. The aircraft, with a 75-foot wingspan and weight of more than 21,000 pounds, will be the largest ever dropped from the tower. FAA is trying to determine the loads and forces an airframe would experience in a severe but survivable crash, particularly a high-wing commuter aircraft. The Shorts 330 will be equipped with 28 dummies, including seven anthropomorphic test dummies used to measure human reaction to impact forces.
Dallas Aviation Director Danny Bruce said Friday he has submitted a new Continental-American Love Field gate agreement to the city attorney to determine if city approval is needed (DAILY, Aug. 14). The airlines agreed Thursday to share Love Field gates that Continental developed for its subsidiary Continental Express, which offers seven daily flights between Dallas and Houston Hobby Airport. Language in the agreement says the pact is subject to city approval.
Delta will retire its entire fleet of 131 Boeing 727 aircraft by 2005, three years earlier than planned. The aircraft will be replaced by new Boeing 737-800s. Delta has 70 new 737s on firm order for delivery from 1998 through 2006. The carrier said the decision to accelerate retirements was driven by its "commitment to reliability, customer satisfaction and by overall enhanced economics" of new 737s. The airline does not expect to take any extraordinary charges against earnings because of the new 727 retirement schedule.
Aviation flight inspectors, represented by the Professional Airways Systems Specialists (PASS), said recent criticism about familiarization trips by the DOT Inspector General should not apply to them. PASS said FAA management is cracking down on en route inspections performed over the weekend, citing a conflict of interest. PASS said the jumpseat in the cockpit was "actually placed there for Flight Standards Aviation Safety Inspectors by law, specially the FAA Act of 1958. The act authorizes inspectors to bump anybody from the jumpseat.
Cathay Pacific named Russ Fortson airport service manager-San Francisco and Terry Kanat sales manager-Northwest USA. United appointed Brandon O'Reilly general manager for the U.K., replacing Mark Schwab, who joined US Airways.
McDonnell Douglas DC-10 Aircraft Operating Costs First Quarter 1998 Dollars Per Block Hour DC-10-10 American United Average Crew Cost $1,252 $1,252 $1,118 Fuel&Oil 1,147 1,251 1,206 Rentals 0 31 18
American Chief Executive Don Carty defended pilots against criticism from other workers for forcing flight cancellations. In a message to employees, he expressed sympathy for ground agents forced to deal with angry passengers before a recent dispute settlement with the Allied Pilots Association. The cancellations came when pilots failed to fly "open time" flights, a decision rightfully "their own." If anyone made a mistake, he said, it was management - himself included - which expected voluntary extra flying to continue as before.
China Airlines announced the seconding of two senior pilots from Singapore Airlines to become senior CAL officials. Pow Tuk-Kwan, 54, will be CAL's new VP-operations and Gui Wee-Kee, 51, will be special assistant to the president. Pow, with SIA since 1963 and one of the first group of pilots it sent to England for training, is an A340 commander. He has been SIA's A340 chief pilot and a member of the SIA Flying College board. He will be responsible for CAL's flight operations management and training.
American will begin daily Newark-Fort Lauderdale seasonal service Dec. 15, using 139-seat MD-80s. Delta Express also will serve the market, starting Dec. 2 (DAILY, Aug. 14).
Frontier is leasing a hushkit-equipped 737-200 aircraft from Interlease Aviation Investors. The carrier has two Advanced 727-200s, seven 737-300s and five basic 737-200s. It plans to replace the basic 737s by October 1999.
