IATA carriers earned $5 billion in net profits in 1997, said Director General Pierre Jeanniot yesterday in Montreal, more than his forecast of $4.5 billion last November. World airlines experienced a 2.7% yield decline last year but a 2.2% unit cost decrease. Industry revenues reached $145.7 billion, and expenses totaled $137.5 billion. While European and North American carriers posted healthy profits, Asia's airlines probably had their worst year ever, Jeanniot said.
American Eagle will begin operating two regional jet roundtrips between Chicago O'Hare and Shreveport, La., and one RJ roundtrip between Dallas/Fort Worth and Shreveport on Aug. 7. DOT awarded the carrier takeoff and landing slots at O'Hare, enabling it to begin the Shreveport service. American Eagle is offering an introductory fare of $198 and double frequent flyer miles through Oct. 15 on Chicago-Shreveport flights.
Japan's Aviation Council, an advisory committee for the transport minister, last week recommended implementation of safety inspection of foreign aircraft serving Japan, enhanced safety administration of aircraft and crews wet-leased from foreign companies, making air safety information available to the public and relaxing the qualifications for flight crews and mechanics.
US Airways pilots are being asked to vote on a widebody pay agreement. Under a letter of agreement sent out last week by the Air Line Pilots Association unit's leadership, a 767-400 captain would make $205.53 per hour by August 2000. An A340-500/600 captain would earn up to $228.01 per hour. US Airways, evaluating both aircraft, says pilot ratification will help it choose.
DOT Secretary Rodney Slater and FAA Administrator Jane Garvey praised the performance of controllers of the Tulsa Airport air traffic control tower for more than two million error-free operations. The tower is approaching 2.4 million operations without an error. Oklahoma state and city officials and senior FAA officials recognized the achievement during a ceremony at the airport.
A high-ranking congressman is being lobbied by a major airline to block DOT's proposed competition policy, and the Clinton administration takes a dim view of the move. The vehicle would be language added to the DOT appropriations bill.
Former PATCO controllers fear that a shift in FAA policy will result in 200 fewer job opportunities this year. An official of Controllers United, which represents the former controllers, said that "if new agency guidelines are enforced, many of the 4,000 experienced controllers seeking re-employment at high-density facilities will have greatly reduced opportunities for rehire."
Sen. Wayne Allard (R-Colo.) introduced a bill, S. 2134, that would direct DOT to permit an airline to fly Denver-London nonstop by July 1. The bill is intended to permit British Airways to fly the route, though the carrier is not named in S. 2134. US Airways has formally protested what it regards as unfair treatment at London Gatwick, where the carrier maintains it cannot acquire a commercially viable slot for service to its Charlotte, N.C., hub.
Northwest will offer electronic ticketing from the U.S. and Canada to London, Paris and Frankfurt, beginning June 29. E-ticket passengers between June 29 and Sept. 30 will receive 1,000 bonus frequent flyer miles.
Korea's struggling economy is expected to reach rock bottom this month or early in the July-August period as layoffs and other painful reforms follow last week's elections in Seoul, according to the city's Hyundai Research Institute. Major conglomerates are expected to announce post-election layoffs that will establish the low point economically in all sectors, including transportation. Korea's unemployment rate, 2.6% last year, is expected to reach 6.7% by the end of 1998, according to Hyundai data released this week to Aviation DAILY.
Raytheon is within budget and on schedule developing FAA's Wide Area Augmentation System. The company has completed, and FAA has accepted, master stations in Virginia and California and Earth stations in Maryland, California and Washington state. Raytheon will deliver the latest of its computer algorithms soon, and final software delivery is expected by December.
America West reported a 3.6% increase in traffic and 4.8% rise in capacity for May 1998 from the same month last year, which depressed the load factor 0.9 percentage points. Year-to-date traffic was down 4.2% and capacity rose 1.8% from the same period last year, producing a 4.1-point decline in the load factor. May 98 May 97 5 Mths 1998 5 Mths 97 RPMs 1,405,664,000 1,357,149,000 6,416,052,000 6,694,517,000 ASMs 2,078,670,000 1,982,610,000 9,884,445,000 9,708,896,000
President Clinton's proposal last week to renew China's Most Favored Nation (MFN) trade status drew immediate support from Boeing. "Trade with China has helped our nation's economy stay strong and has meant steady jobs for thousands of Boeing families," the company said in a statement. "It has long been our position that trade between the United States and China is a positive force in the overall relationship between our two countries. China has said it plans to spend more than $750 billion in new infrastructure over the next 10 years.
Smiths Industries Aerospace said it was selected by Southwest to supply new flight management computers for 208 737-300/500 aircraft. Deliveries are to be completed by December. The upgrades are intended to offer Southwest greater control over arrival times, reducing delays and increasing airport capacity.
Korean Air will begin television advertising and sponsor cultural events in China as a result of last week's lifting of Chinese government restrictions on leisure travel to Korea. Previously, the carrier reached prospective customers via direct mail and limited billboard advertising due to the cost of advertising - $30,000 for a quarter-page ad in China Daily.
Approved a two-year exemption renewal for American International Airways to provide scheduled cargo service between Honolulu, Hawaii, and Guam and Jakarta, Indonesia, via Melbourne, Australia...Approved a one-year exemption renewal for Allegro to conduct scheduled combination service between San Jose del Cabo, Mexico, and San Francisco, and between Cancun and Orlando, as well as U.S.-Mexico and other charters...Approved a one- year exemption renewal for AeroMexico to conduct scheduled combination service between Durango, Mexico, and Los Angeles...Approved a one-year exe
Explaining alliance benefits to Sen. Slade Gorton (R-Wash.) at last week's Senate Commerce aviation subcommittee hearing, Continental Staff VP Hershel Kamen detailed how the Northwest-Continental pact would improve service on many routes. Kamen showed Gorton how a code share would work between Washington state and Belize City, Belize. "I want you to know how much I appreciate that example," Gorton said, "since Spokane-Belize City service has so rarely come up in my town meetings."
Top DOT and FAA officials Friday criticized efforts by air courier companies to comply with hazardous materials regulations and promised further crackdowns. Recent inspections and surveillance of commercial air courier shipments show increased compliance with rules by the airlines in keeping hazardous materials off passenger transport aircraft, DOT Secretary Rodney Slater said. Slater said he still is disappointed, however, with compliance efforts by air courier companies.
Controllers at the New York air route traffic control center Friday twice lost radar contact with Air Force One. Both instances involved the radar at Gibbsboro, N.J. Controllers said they have been reporting problems since the radar was activated last October. FAA ordered an investigation and said, "Safety was not compromised and communications were maintained with the aircraft at all times."
OAG Worldwide named James Pilcher director-North America airline business and Gene Glendinning senior advertising manager-airline business, North America.
JHM Cargo Airlines has become the North American launch customer for the A300 freighter, leasing seven from S-C Aviation Services. The startup cargo airline, currently seeking FAA approval for Part 129 operations, intends to operate the aircraft on flights between North America, Central America, South America and the Caribbean. The first A300 freighter is scheduled to enter service this month, and deliveries are to continue for five months.
