Mesa Air Group reported that revenues passenger miles declined to 303.2 million in its third quarter, which ended June 30, from 359.6 million the year before. For the first nine months, RPMs declined to 984.4 million from one billion. Capacity fell to 530.7 available seat miles from 642.5 million in last year's quarter and to 1.79 billion from 1.83 billion for the year-to-date. The load factor rose to 57.1% from 56% for the quarter and declined to 54.9% from 55.4% for the year. The carrier attributed the results to the end of United Express operations May 31.
Air Canada yesterday reported C$148 million (US$97.6 million) in operating income during the quarter that ended June 30, the first of its fiscal year. The amount is up 10% from the year-earlier quarter and the best for any June quarter in the company's history. Net earnings totaled C$91 million ($US60 million), an increase of C$20 million ($US13.2 million). Traffic increased 8% and yield per revenue passenger mile was up 8% due to fare increases. Operating revenue increased 13%.
Northwest reported a 0.1% decline in systemwide traffic on 1.1% less capacity in July compared with the year-earlier month, which boosted the load factor 0.8 percentage points to 78.4%. International revenue passenger miles grew 0.9% on 3.3% more available seat miles, which depressed the load factor 1.9 points. Domestic scheduled service RPMs dropped 0.8% and ASMs 4.1%, and the load factor grew 2.5 points.
American's Allied Pilots Association board of directors will decide today whether to approve a comprehensive package settling a dispute over language in the current pilots contract. APA's board will vote on language regarding scope clause provisions, in particular as they apply to the carrier's code-share agreement with Canadian Airlines; a provision regarding the carriers' 400 check airmen, and language governing the training of newly hired pilots. The union completed negotiations with management on Wednesday.
America West reported a 2.5% traffic increase on 2.5% more capacity in July 1998 compared with July last year, leaving the load factor unchanged at 75.2%. Passenger enplanements were down 3%. Year-to-date revenue passenger miles declined 1.7% on 2.5% more available seat miles, and the load factor dipped 2.9 percentage points to 67.7%. Passenger enplanements were down 4.8%. July 1998 July 1997 7 Months 1998 7 Months 1997 RPMs 1,556,093,000 1,518,814,000 9,478,808,000 9,646,182,000
Mesa Air Group, still under pressure from loss of its code share with United, yesterday reported a fiscal third quarter net loss of $4.4 million and a net loss for the first nine months of $52.7 million. For the same periods last year, the net losses were $2.5 million and $4.4 million. Operating revenues for the third quarter declined to $99.5 million from $129.4 million. Year-to-date, operating revenues fell to $343.7 million from $376.4 million.
AirTran's 400 flight attendants are threatening a CHAOS (Create Havoc Around Our System) campaign if they cannot reach a contract agreement with the company by Sept. 5. The carrier and its Association of Flight Attendants unit entered a 30-day cooling-off period yesterday after the National Mediation Board declared an impasse in contract negotiations, which have been under way nearly three years, about a year and a half with NMB. The union accepted NMB's proffer of arbitration but the company rejected it.
Delta reported a 3.1% increase in traffic on 2.6% more capacity in July 1998 from July 1997, and the load factor crept up 0.4 percentage points to 78.5%. Year-to-date, Delta posted 3% more revenue passenger miles, 2% more available seat miles and a 0.7 point increase in the load factor. July 1998 July 1997 7 Months 1998 7 Months 1997 RPMs 9,676,165,000 9,389,346,000 60,083,202,000 58,348,635,000 ASMs 12,327,635,000 12,018,228,000 81,885,565,000 80,257,733,000
Air Canada revealed its strategy for new regional partner Voyageur Airways with the announcement of the carrier's first cross-border route. Operating as Air Connexion, the carrier will begin service Sept. 20 between Toronto and Syracuse with four weekday flights using new Beech 1900D 19-seaters configured for 18 seats. The number of frequencies is high for a new market, but the service will reduce current travel time by about three and one half hours on the 182-mile route. Other potential markets include Albany, Buffalo and Rochester (DAILY, June 26).
Used Brasilias are finding their way to the tracks - NASCAR tracks. Bill Elliott Racing Team and Grand Aviation Inc., owned by Elliott and Miami Dolphins quarterback Dan Marino, have acquired three Brasilias to transport racing teams - 12 per car - to venues around the country on Thursdays and return them home on Sundays. The sales are the first to a corporation in the U.S., and Embraer sees selling seven or eight more Brasilias to NASCAR customers. The former DLT planes were refurbished with 28 seats by Celsius Group, Nashville, Tenn.
Voyageur Airways, newly exempted for U.S.-Canada scheduled and charter combination services using Beech 1900s (DAILY, Aug. 6), asked DOT for an amendment allowing it to conduct combination charters with 60-passenger aircraft. The Canadian carrier, which had told DOT it planned to purchase 10 1900s over the next 10 months, said it wants to use de Havilland Dash 7 aircraft, which exceed the size restriction in its exemption. It said there is "high demand" for U.S.-Canada charter transportation using aircraft carrying more than 30 passengers. (Docket OST-98-4149)
Mesa Air Group added two key managers this week - Michael Suckow, senior director-system operations, and Steve Markhoff, director-corporate affairs. Suckow formerly was VP-flight operations, VP strategic planning and safety director at Chautauqua; Markoff most recently was general counsel and secretary at Kiwi International. They join former Chautauqua Chief Executive Tim Koon, who is VP-US Airways Express and director-East Coast operations. The Chautauqua executives were terminated after the carrier's recent acquisition by Wexford Management.
Crossair has launched EuroCross, a campaign in Europe to emphasize the benefits of Basel as an air transport hub. Crossair is out to change the difficulties it believes travelers experience when flying to smaller European regions - time-consuming travel requiring several transfers. At EuroAirport Basel-Mulhouse-Freiburg, Crossair's EuroCross service shortens transfer times for regional connections, enabling comfortable travel on routes having smaller passenger volumes, such as Nice-Nuremberg or Manchester-Venice.
US Airways' load factor increased 2.5 percentage points in July to 78.1%, its highest ever, as total scheduled service traffic decreased 0.9% but capacity dropped much more, 4.1%. During the first seven months of 1998, revenue passenger miles fell 2.3% from the year-earlier level on 5% fewer available seat miles, pushing the load factor up 2.1 points. July 1998 July 1997 7 Months 1998 7 Months 1997 RPMs 3,818,620,000 3,852,261,000 24,144,457,000 24,704,857,000
FAA probably will not be able to meet all its Year 2000 computer compliance goals, a General Accounting Office official said yesterday. Joel Willemssen, GAO's director-civil agencies information systems, credited FAA with making significant progress - Administrator Jane Garvey reported last week that the agency met an internal July 31 deadline for renovating at least 60% of its mission critical systems (DAILY, Aug. 3) - but expressed reservations in testimony before the House Science subcommittee on technology.
Dulles, Va.-based Atlantic Coast Airlines, which flies as United Express, reported an 84.1% jump in traffic on 67.5% more capacity for July 1998 over July 1997, which boosted the load factor 5.3 percentage points. Passenger enplanements were up 49.8%. Year-to-date revenue passenger miles shot up 90.6% on 58.4% more available seat miles, which boosted the load factor 9.4 points. Separately, ACA this week launched nonstop regional jet service between Charleston, W.Va., and Chicago O'Hare and added one jet flight to its existing Charleston-Dulles turboprop service.
Continental applied to renew its exemption for scheduled service to the U.K. and authority to code share with Virgin Atlantic, which expires Oct. 3 - two days before U.S.-U.K. bilateral negotiations resume in London and during DOT's consideration of antitrust immunity for the American-British Airways alliance (DAILY, Aug. 3). "While awaiting the conclusion of an open-skies agreement, Continental will be able to retain its additional access to London without adding capacity, affecting slots or hindering opportunities for other U.S. carriers," the airline said.
A General Accounting Office official told the House Transportation aviation subcommittee yesterday that some FAA regions issue more emergency orders to revoke or suspend medical certificates than others. Gerald Dillingham, GAO associate director for transportation issues, said that while most regions issue no more than one to five such orders a year, the Eastern and Western- Pacific regions averaged about 25 annually in fiscal 1990-97 and the Southwest Region nearly a dozen. The subcommittee hearing was on H.R.
Moody's Investors Service has raised the long-term rating of Atlantic Coast Airlines Enhanced Equipment Trust Certificates 1997-1. It raised Tranche A to A2 from A3, Tranche B to Baa2 from Baa3, Tranche C to Ba1 from Ba2, Tranche D to Baa3 from B1, and convertible subordinate debentures to B3 from Caa1.
Alaska Airlines carried 7% more traffic on 9.7% more capacity for July 1998 over July 1997, which depressed the load factor 1.8 percentage points to 69.4%. Alaska flew 1.1 billion revenue passenger miles on 1.59 billion available seat miles. Year-to-date RPMs rose 7.4% and ASMs 7.8%, and the load factor fell 0.3 points.
Air Transport Association asked DOT yesterday to extend for 120 days - until Dec. 30 - the comment period on the effect of airport practices on competition in the domestic airline industry. Comments are now due Sept. 1. ATA wants more time to assemble "meaningful data." (Docket OST-98- 4025)
The threat of terrorist attacks against air traffic control computers appears to be low, FAA officials said yesterday at a House hearing on Year 2000 and computer security problems, but DOT Deputy Assistant Inspector General John Meche, who faulted FAA computer security, said that assessment is part of the problem. Computer security "is very expensive work," he said, and if FAA sees little threat it spends its money elsewhere.
Federal Express pilots have approved by 91% a doubling of union dues. The FedEx Pilots Association will increase dues over the next six months, beginning immediately. The union, which recently elected a new contract negotiating committee, resumed negotiations with management and the National Mediation Board on Wednesday. The dues increase will fund the negotiating and strategic preparedness committees.
Standard&Poor's yesterday affirmed its single A corporate credit rating on British Airways PLC, and changed the outlook to negative from stable. The change in outlook reflects the increasing competitive environment BA faces over the coming years, combined with pressure on its financial profile caused by its UK$5.5 billion (US$9 billion) capital spending program. Its rating reflects BA's strong market and operating positions and consistent profitability.
