Inland Aviation Services notified DOT of a June 19 Cessna 207 accident in a supplement to its application to provide scheduled combination service within Alaska using Cessna 172 aircraft (DAILY, May 27). The carrier said it "experienced an enroute engine failure and executed an off-airport controlled crash landing" near Holy Cross, Alaska, during a charter flight carrying three passengers and the pilot.
Troubled Greek flag carrier Olympic Airways will receive less state aid than the European Commission authorized in 1994, a commission official told The DAILY yesterday. The EC "will cut part of the aid" next week, the official said.
Atlantic Coast Airlines Holdings yesterday reported second quarter net income of $10.5 million, excluding a $1.4 million non-recurring charge involved in converting notes to shares, up from $5.9 million a year earlier. Revenue totaled $75.8 million and the operating margin was 22.9%, up from 18.7%.
TWA finally turned the corner yesterday, posting a second quarter operating profit of $45.5 million and a net profit of $19.5 million. A year ago, the carrier reported a net loss of $14.4 million. Revenue increased 4.6% to $883.5 million despite a 3.9% drop in capacity that followed TWA's replacement of 747s and L-1011s with smaller aircraft. Chief Executive Gerald Gitner described the results as "further progress" toward the goal of sustained profitability. The carrier is in Phase 3 of a three-part strategy to achieve profitability goals.
Comair yesterday reported record June quarter net earnings of $34.3 million, up 36.2%. The Delta Connection carrier posted revenue of $187.9 million during its fiscal first quarter, up 18.1%. The airline turned in a pre-tax margin of 29.5% and a net margin of 18.3%. Cost per available seat mile increased to 16 cents from 15.3 cents while yield grew to 34.2 cents from 33.1 cents. Quarterly traffic rose 13% on 6.2% more capacity, which boosted the load factor to 65.4% from 61.5%. Breakeven load factor worsened slightly to 47.1% from 46.6%.
U.S. Major Carriers Advertising Expense, First Quarter 1998 % Of Total Advertising Passenger Revenues Alaska 4,287,000 1.42 Domestic 3,888,000 1.41 Latin 399,000 1.58 America West 6,811,222 1.54 Domestic 6,781,769 1.58 Latin 29,453 0.22
Vivid Technologies said this week it has received an order for its automated explosives detection systems that will be installed at King Khalid Airport in Riyadh, Saudia Arabia. The order is for four automated checked baggage screening systems and three passenger screening systems for carry-on baggage inspections. Vivid said its systems have been selected for use in 33 airports in 17 countries.
Dusseldorf Airport, which suffered a damaging blaze in 1996, expects to return to profitability this year, the German airport's marketing director, Matthias Tumpel, said last week. In 1997, the airport company's deficit plunged to 23.8 million Deutschmarks (US$13.3 million) from DM18.2 million ($10.2 million) the previous year. The 1997 setback was caused by the need to rebuild airport facilities, which required Dusseldorf's largest-ever investments, totaling DM302.9 million ($169.2 million), during the year.
Washington-based think tank Economic Strategy Institute compared DOT's proposed competition policy to regulations imposed by the Japanese government, saying it would create "a series of hidden decisions taken against individual airlines that will destroy the transparency of proper government deliberation and enforcement." Filing yesterday at DOT, the Washington-based think tank said the department's proposed guidelines are too subjective, and it rejected departmental claims that it does not want to discourage major airlines from competing against niche carriers in hu
The European Investment Bank has lent Aeroports de Paris 500 million French francs (about US$83.5 million) toward construction of a third runway at Roissy Charles de Gaulle Airport. The project, which includes taxiway improvements and pollution control measures, is part of ADP's program to increase the airport's capacity to 55 million passengers a year from the current 30 million. The EIB loan reflects the bank's support for trans-
Delta weighed in yesterday as the first of the major carriers to file comments on DOT's proposed policy on unfair competition practices. The carrier denounced the proposal as being hurtful to consumers and small and mid-sized markets while not achieving its intended purpose - to promote competition by leveling the playing field for new-entrant carriers.
Raytheon Co. announced yesterday it has acquired AlliedSignal's Communications Systems business based in Towson, Md. The unit will become part of Raytheon's Communication Systems Division, Fort Wayne, Ind. The sale is expected to be completed in the third quarter. Raytheon also said it has sold Raytheon Systems Ltd. Flight Training, London Gatwick, to GE Capital. The flight training unit will become part of GE Capital Aviation Services, Stamford, Conn., when completed in the third quarter.
Aerospatiale says it increased productivity 31%, reduced employment 20% and cut indebtedness from 16 billion French francs (currently about US$2.8 billion) to less than FF1 billion ($167 million) between 1992 and 1997. It is "now ready to actively take part in the building of a competitive European aerospace industry."
Atlas Air said it has reached an agreement to place an additional 747-200 freighter with a consortium of airlines led by the Colombian carrier LAS. The consortium was formed to take advantage of the growing cargo market that has developed in South America, Atlas said. LAS has extended the terms of its contracts on two other 747-200 freighters leased in January 1997, Atlas said. The freighter previously was leased to British Airways, which exchanged its lease for delivery of the first of Atlas's new 747-400 freighters.
NDT Systems, a leader in ultrasonic flaw detectors, said it has introduced a concept using an airborne ultrasonic beam "which opens up a new realm of inspection opportunities." Called Curlin-Air, the portable detector eliminates the need for material contact or liquid couplants, the company said. Using a hand-held scanning yoke, the material to be tested need only pass through an ultrasonic air beam, NDT said.
FAA yesterday reopened the comment period on its proposal to require modifications to the fuel system wiring on Boeing 737 series aircraft. The agency said issues have been raised regarding the ability to "implement corrective action in a timely manner, particularly because the manufacturer has yet to issue a service bulletin." The proposal asked for comments concerning installing components to suppress electrical transients and/or components to provide shielding and separation to the fuel system wiring that is routed to the fuel tanks.
Warren Wilkinson, director-marketing and corporate communications for Mesaba Aviation, was identified incorrectly in the July 21 DAILY as president of the Regional Airline Association.
Transatlantic unit revenues are under pressure from all directions as carriers seek gains from one of the few healthy international sectors. "The international component of the industry is peaking," according to Tom Schreier, Credit Suisse First Boston analyst. "Asia's not a big mystery, and some are adding capacity to Japan anyway. Latin America is a battle for share, and that leaves the Atlantic." Schreier notes that both North American and Asia/Pacific carriers are shifting capacity from the Pacific to the Atlantic.
United Parcel Service confirmed yesterday it is close to a decision on an order for up to 30 aircraft from Airbus or Boeing. UPS's current fleet comprises 216 aircraft, all U.S.-built. Reports are circulating that British Airways, until now a U.S. customer, is considering an order of as many as 30 Airbus aircraft.
U.S. National, Regional and Cargo Carriers Advertising Expense First Quarter 1998 % Of Total Advertising Operating Expenses American Trans Air 3,308,282 1.71 Hawaiian 2,543,616 2.49 Aloha 1,693,670 3.01 Midway 815,000 1.85 Midwest Express 1,571,209 2.23
America West yesterday reported the best quarterly profit in its 15-year history, with net income of $41.1 million, up 80%. Yields and unit revenues improved while jet fuel prices fell and the carrier accounted for its $2.5 million maintenance-related FAA fine (DAILY, July 16). Revenue rose 8.7% to $533.7 million, also a record. So far this year, the company has posted revenues of $1 billion and net income of $66.6 million.
Vanguard Airlines has finally found its niche, and, for the first time, it's a profitable one. After several leadership changes and route restructurings, the airline reported its first profitable quarter since it began flying in December 1994. Vanguard late Monday posted a net profit of $323,000, compared with a loss of $7.2 million in the year-earlier period. Revenue climbed to $25.4 million from $21.7 million (DAILY, July 21). "This opens up new possibilities for us that before we couldn't consider," Russell Winter, VP-marketing and planning, told The DAILY.
American said it will "invade" Continental's Houston stronghold Sept. 9 with MD-80 service from Houston Hobby Airport to Austin and New York LaGuardia Airport. American offers only American Eagle service between Hobby and its at Dallas/Fort Worth hub. Avmark consultant Joseph Berman was quoted as calling American's planned Hobby service "spite" over Continental's Love Field plans. Judge Bob McCoy earlier issued a temporary injunction barring planned Continental Express service between Love Field and Continental's Cleveland hub.
Continental expects to save roughly $50 million in pilot training costs by bringing in new-generation 737s and disposing of older 737-100/200s, 727s and DC-9-30s as they come off lease. All three older models will leave the fleet by the Stage 3 noise deadline of Dec. 31, 1999, reducing Continental's average aircraft age to 7.5 years.
