Finnair more than doubled its pre-tax profit and lifted its net profit nearly 60% in the fiscal year that ended March 31. The good results reflected strong across-the-board demand, a high rate of capacity utilization, and operating revenues that grew faster than expenses. Finnair Group turnover rose 9.9% from 7.4 billion Finnish markkas (US$1.35 billion) in 1996-97 to FIM 8.24 billion ($1.5 billion) in 1997-98. Finnair's operating revenues grew 8.8% to FIM 8.06 billion ($1.46 billion), including a gain of FIM 142.3 million ($25.9 million) from the sale of aircraft.
Newly retired Bob Crandall and his wife, Jan, have kept their pledge to sail the Atlantic in their new boat, Arway. The couple left Ipswich, England, on May 25 and reached the Azores last Sunday. Their progress is being updated on the World Wide Web at www.janandbob.com.
Philippine Airlines (PAL), which has been forced to cancel much of its domestic and international service recently due to a pilots strike, is scaling back service to the U.S. and is "on the brink of collapse," the airline said in a statement. PAL fired about 625 pilots last week during a pilots strike and is operating just 20% of its normal schedule of flights. Although the Philippine government is not expected to let the carrier fail, the strike, coupled with a dire financial shortfall, is compelling the airline to shrink sharply.
US Airways will eliminate advance boarding passes as of July 7. Passengers still will be able to receive seat assignments in advance and boarding passes at check-in. American said recently it will issue boarding passes only on the day of departure.
Paris Air Show officials believe the number of exhibitors at the 1999 event could reach 2,000, setting another record. In 1997, there were 1,860 exhibitors, itself a record. A two-story chalet in Row A or C will cost $46,670 and a single-story chalet in Row C or B will cost $27,192. Hall space will cost $233.67 per square meter, all based on an exchange rate of 5.9 French francs to the dollar.
Prudential Securities estimates that Boeing will have to take new charges as great as $250 million this year as it increases its new-generation 737 production rate, "particularly if costs begin to become evident from delays on certifying the new 717 airliner." Saying Boeing shares "could meaningfully underperform the market," Prudential commented that the 717 faces "challenges to complete flight testing and certification" in time for deliveries next June.
Mexicana received one-year initial exemptions to provide scheduled combination service between Fort Lauderdale and Cancun, Dallas/Fort Worth and Puebla, and El Paso and co-terminal points Guadalajara/Mexico City/Monterrey/Hermosillo. (Dockets OST-98-3669, 3828)
Approved a two-year exemption renewal for United to serve points in Brazil on a code-share-only basis, and a one-year exemption renewal for Varig, which had requested a two-year exemption renewal, to serve points in the U.S. on a code-share-only basis, and a one-year exemption renewal for Varig to serve Boston via intermediate points from points in Brazil and to co- terminalize Boston operations with those to other U.S.
FAA says that out of 488 737s inspected as of last week for fuel system ignition sources, 243 showed "noticeable chafing through Teflon wrappings," 27 showed 50% insulation chafing and nine had exposed wires. The agency said it is "not alarmed or unnecessarily surprised" by these numbers.
- In Federal Register dated June 5...Issued an airworthiness directive on British Aerospace 3101 aircraft requiring modification of the emergency hydraulic hand-pump.
Summary of U.S. National Carriers Systemwide Traffic November 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change American Trans Air 377 23.53 1,602 603,455 17.44
Great Lakes Aviation recently expanded its United Express service with flights to Denver from Cortes and Telluride, Colo., and Farmington and Sante Fe, N.M.
Midway Airlines logged increases of 17.6% in traffic and 10.6% in capacity in May, pushing the load factor up 4.1 percentage points to 67.6%. The carrier flew 84.8 million revenue passenger miles and 125.6 million available seat miles, and passenger enplanements increased 22.4% to 168,500. Year-to-date RPMs rose 9.7%, ASMs 5.2% and enplanements 14.3%, and the load factor increased 2.7 points.
DOT issued an order making final its determination that Alaska-based Servant Air is fit to conduct interstate scheduled combination service using aircraft with no more than nine passenger seats. (Docket OST-97- 3022)
Canadian Airlines reported a 0.3% increase in traffic on 0.6% more capacity during May, depressing the load factor 0.2 percentage points. International, charter and regional operations logged traffic increases over May 1997. International and charter revenue passenger miles rose 1.8%, but available seat miles were up 2.4%, pushing the load factor down 0.4 points. Regional operations showed a 7.7% rise in RPMs and a 10.9% increase in ASMs, creating a 1.3 point decline in the load factor.
Cathay Pacific Airways applied at DOT for a one-year exemption to operate Hong Kong-San Francisco scheduled combination service. It wants to begin daily A340-300 roundtrips Dec. 1 in the market, which is served by Singapore Airlines and United. The Hong Kong-based carrier holds combination and all-cargo exemption authority to serve several U.S. points, and it currently provides Hong Kong-Los Angeles/New York combination service. Cathay said the government of Hong Kong will notify the U.S.
Delta will count women's purses against a two-carry-on baggage limit if the government adopts such a regulation, the carrier's director of inflight operations and planning told the House aviation subcommittee Thursday. A spokeswoman said Delta will stand by its current policy - laptops, totes, shopping bags and briefcases count against its two-bag limit, but not purses - unless the government enacts a carry-on rule.
Nasdaq has not accepted Great Lakes Aviation's plan to meet the minimum net tangible assets test to continue its stock listing. As of March 31, Great Lakes did not have $4 million in assets. A hearing is planned, and if Nasdaq is not convinced, the United Express carrier could be limited to trading as a penny stock.
