Trade squabble between Brazil's Embraer and Canada's Bombardier reached the boiling point when Canada's Financial Post reported that Bombardier had rejected an offer by Embraer to sell it part of the company or launch a joint venture as a means of resolving a dispute over government subsidies. The issue is export financing and both say the other government's program is illegal under World Trade Organization rules.
Northwest Airlink Mesaba suffered extensive hail damage to 16 aircraft due to a severe thunderstorm that struck the Minneapolis/St. Paul Airport last Friday evening, including nine Saabs, four Avro RJ85s and three Dash 8s. All but five Saabs and the Dash 8s were back on line by Thursday because of quick manufacturer response. Most damage was to composite flying surfaces. The carrier was forced to cancel 125 flights Friday due to the weather, and 58 Saturday, 46 Sunday, 33 Monday and 30-plus Tuesday and Wednesday because of damage...
DOT is inviting applications from all U.S. carriers interested in providing scheduled U.S.-Colombia all-cargo services. Applications must be filed by June 9, with answers due by June 16. Carriers without the requisite U.S.-Colombia authority should file applications by June 9; those holding authority should file applications for allocation of the U.S.- Colombia route opportunity. Under the U.S.-Colombia memorandum of consultations signed Aug. 22, 1996, the U.S. can authorize one additional carrier to operate such services beginning Sept. 1, 1998. Six U.S.
...Saab Aircraft, its image tarnished when it announced an end to production of its 340B and 2000 turboprops, showed up at this week's Regional Airline Association convention in Minneapolis with a flair. Its stylish exhibit stood inside the door of the exhibition hall; its hospitality suite was by far the most popular, and the company got high marks for its continued commitment to support the existing fleet. Its support program was further enhanced by its overnight response to a violent hail storm that grounded nine Mesaba 340s last Friday.
Air Wisconsin in April and May has taken delivery of the first eight of 10 Dornier 328-120 turboprops on order for use at Denver. Two more aircraft will be delivered by June 1. The -120 is the hot-and-high version of the Dornier 328-100 series. Cities to be served with the aircraft will include Rapid City, S.D.; Casper, Cheyenne and Jackson Hole, Wyo., and Durango, Colorado Springs, Gunnison, Grand Junction and Montrose, Colo.
United told DOT that America West's "panoply of regulations" is the wrong solution for controlling computer reservations system abuses, and that America West had used faulty analysis in trying to show that United profits unfairly from its relationship with the Apollo CRS. United said it is concerned about fee levels as much as any carrier, since all must pay the same booking fees. A cap on booking fees proposed by America West will simply prompt vendors to maintain their profit margin by raising other fees.
Boeing 727-200 and 737 Systemwide Aircraft Utilization Per Day Fourth Quarter 1997 B727-200 American Continental Delta Number of Aircraft Operated 79 33 129 Total Fleet Operations Departures 273 108 682
Korean Air will operate its new Boeing 777s on the Seoul-Sydney route this month. The carrier operates four weekly flights, three via Brisbane. In a market-related move, competitor Asiana has launched an A$999 (US$619) roundtrip Seoul-Sydney package that includes airfare, three nights in a four-star hotel, daily breakfast, tours and local transportation.
British Aerospace and Saab Aircraft "will begin to compare and analyze their respective operations within their regional aircraft portfolio and customer support companies," BAe-Asset Management announced. BAe-AM Executive VP Stephen O'Sullivan said, "We look forward to exchanging our experiences with Saab in order to establish best practices. British Aerospace is taking a 35% stake in Saab AB (DAILY, May 1).
Charlotte, N.C.-based CCAIR will operate US Airways Express service to Raleigh/Durham, N.C., from Washington Dulles effective June 1, offering three daily roundtrips with Jetstream 31EP aircraft. The carrier will double its service to six roundtrips, effective July 6.
KLM's operating income for fiscal 1997-98 reached a record 811 million Netherlands guilders (US$403 million), before accounting for a windfall from the sale of stock in partner Northwest. KLM had operating income of NLG 109 million ($54 million) a year earlier. Net income for the year ended March 31 reached NLG 2.2 billion ($1.1 billion), more than nine times the profit a year ago. The large disparity came from after-tax items, including the stock sale, which added NLG1.6 billion ($796 million) to the bottom line.
Continental yesterday agreed to buy 19% of Aerolineas Centrales de Colombia (ACES), a year after the carriers established a marketing alliance. The move comes just nine days after the carrier agreed to acquire a stake in Panama's COPA. ACES, based in Medellin, is regarded as Colombia's most sophisticated carrier and has been compared to Midwest Express because of its business-passenger focus. ACES has been named the best airline in Colombia for six years. The agreement is expected to be completed by mid-summer.
Despite FAA's issuance of an emergency airworthiness directive on CFM International CFM56-3 turbofans this week, all the potentially affected engines already have been inspected or repaired, CFM partner General Electric Aircraft Engines reported. The AD was aimed at -3 Series engines with suspect gearbox components, and required removal of one engine on twin-engine aircraft and replacement with a serviceable engine or replacement of the components (DAILY, May 21). But that AD essentially duplicates a telegraphic AD transmitted to operators on Dec.
DOT Office of Inspector General in a new report concludes that, due to uncertainties related to signal interference, "some type of back-up system for the Wide Area Augmentation System will be needed for the foreseeable future." IG Kenneth Mead told FAA Administrator Jane Garvey this week that such interference could come from unintentional or intentional jamming, communications satellites or ionospheric variations. Mead earlier told Rep.
Air New Zealand, which earlier this month announced its intention to join the Star Alliance, yesterday confirmed it will forge a code-share and marketing alliance with Lufthansa. The agreement, which was expected, will begin July 20. ANZ-Lufthansa will cover Air New Zealand's service between Auckland and Frankfurt via Los Angeles, as well as Lufthansa's daily service between Frankfurt and Christchurch via Singapore. ANZ operates the Christchurch-Singapore portion, using Boeing 767s. The carriers have had a reciprocal frequent flyer arrangement since last September.
Justice Department recommended yesterday that American-British Airways competitors receive 336 weekly slots and urged a carve-out of routes from London Heathrow to Chicago and Dallas before AA-BA can receive antitrust immunity from DOT. DOJ called the proposed pact a "troubling" one it would try to block if it were reviewing it under antitrust laws.
Wexford Management, the Greenwich, Conn., leasing company that recently acquired Chautauqua Airlines from Guarantee Reassurance Corp., of Jacksonville, Fla., abruptly fired four of the carrier's top five managers last Friday. Included was President and Chief Executive Tim Coon, who is broadly credited with the airline's profitability, especially after senior partner US Airways pulled down its Indianapolis hub. Ed Wegel, executive VP-Wexford Aviation, and long-time regional executive Don Young now occupy the "corner" offices.
Indonesia's new prime minister, Jusuf "B.J." Habibie, may be the most visible aviation stalwart in Asia-Pacific, at a time when the region's airlines are increasingly unstable. Habibie, a German-taught aeronautical engineer, is the force behind aircraft maker IPTN and has pushed the country to develop indigenous aircraft products and skills.
Executives for British Aerospace Regional Aircraft Ltd. (BARAL), now independent from the Aero International (Regional) European consortium with Aerospatiale of France and Alenia of Italy, say they are looking at a new RJX quadjet with new powerplants and reduced costs. They also plan to expand their existing production and maintenance businesses for outside customers. The company built 217 earlier-model BAe 146s, all of which are operating, and has taken 147 total orders for the newer Avro RJ70/85/100 series, of which 105 have been delivered.
SkyWest Airlines posted net earnings of nearly $4.7 million, or 21 cents per share, in the fiscal quarter ended March 31, compared with $1.1 million, or six cents per share, for the same quarter one year earlier. For the fiscal year, the carrier earned $21.9 million, or $1.06 per share, more than doubling its fiscal 1997 earnings of $10.1 million, or 50 cents per share.
TWA said it has acquired three 757-200s from International Lease Finance Corp. for delivery in 1999 and 2000, when TWA will have 23 of the models. It operates 15 now and will receive one more this summer and six next year. TWA also recently ordered 24 MD-83s for delivery by the end of 1999. TWA said it will receive about one aircraft every 10 days next year, and it will have a fleet of more than 100 MD-80s.
Swissair Chairman Jeffrey Katz said his company is "preoccupied" by the possibility that the recent code-sharing pact between Air France and Delta may be extended to cover more than services between France and the U.S. Katz, speaking at a news conference yesterday in Tokyo, said Swissair is holding talks with Delta in an attempt to set up "barriers" around the Delta-Air France agreement. Swissair has a wide-ranging partnership with Delta - the Atlantic Excellence alliance - which also includes Sabena and Austrian Airlines.
DOT issued an order instituting a 1998 U.S.-Brazil combination service proceeding, called for late last year by designated carriers American, Continental, Delta and United (DAILY, Dec. 24, 1997). The four airlines have applied for the seven frequencies that become available to them Oct. 1 under the U.S.-Brazil bilateral.
