Vanguard Airlines, determined to shake off the ValuJet image weighing on all small carriers, is banking its future on a niche within a niche - the "cost-conscious business traveler," according to Rocky Spane, who joined the carrier last July as its third president and chief executive in as many years. Boxed into no-win leisure service, the Kansas City-based carrier has struggled to stay afloat during its three-year life span and now hopes the lucrative business segment will help it turn the corner.
Qantas has become the first airline outside Japan to be authorized to perform line maintenance on Japanese-registered aircraft. The Australian carrier was awarded certification by the Japan Civil Aviation Bureau and Japan Airlines. Qantas will perform pre-flight certification and engineering release of Japanese aircraft operating to Sydney. JAL, which signed a code share with Qantas in April 1997, provides technical assistance to Qantas in Nagoya, Fukuoka and Sapporo.
Austrian Airlines named Dan Gaico marketing manager for North America. Frontier appointed Anne Laboon city manager-Boston and Geoffry Morneau city manager-New York LaGuardia. Mexicana appointed Alicia Quintero district sales manager-New York sales office and its Los Angeles Technical Committee named Jorge Winney vice chairman of the Management Council for 1998. Polar Air Cargo appointed Michael Bell chief financial officer.
British Airways plugged one of its last remaining holes in Europe by linking Friday with Finnair. The carriers signed a code-sharing and marketing alliance linking London and Manchester with Helsinki and Stockholm, effective next month. A reciprocal frequent flyer agreement is part of the alliance. Last month, BA signed a code-share alliance with Poland's LOT and is seeking approval for a link with Iberia. BA's move enables it and future partner American to compete on a more level basis with other alliances in Scandinavia.
Hispano-Suiza S.A. was selected by Rolls-Royce to supply the accessory gearbox for Rolls's new Trent 500 engine, in development to power Airbus's A340-500/600 derivatives. The French company will deliver its first Trent 500 development gearbox to Rolls-Royce by February 1999. Engine certification is scheduled for December 2000 and entry into service during the first quarter of 2002.
Continental Express pilots hope for a tentative contract agreement Wednesday. Last week, only scope and two economic issues were open and the Independent Association of Continental Pilots predicted a resolution soon. IACP President Len Nikolai said he expects a scope provision for Express pilots similar to the mainline pilots'. Both contracts will be signed at the same time.
- Approved an Apple Vacations West charter using an Allegro MD-83, 727 or DC-9 for 11 roundtrips carrying 165 passengers on a San Francisco-Cancun- San Francisco routing June 14-Aug. 23...Approved an Apple Vacations West charter using an Allegro MD-83, 727 or DC-9 for 11 roundtrips carrying 165 passengers on a San Francisco-Montego Bay-San Francisco routing June 14- Aug.
EasyJet, the U.K.-based no-frills, low-cost airline, has served a High Court writ on British Airways seeking an injunction to stop BA from cross- subsidizing its new low-cost subsidiary, GO, by using its "monopoly profits", and to ensure that it will not cross-subsidize GO in the future (DAILY, Dec. 10, 1997). The latest legal step follows BA's refusal in correspondence with EasyJet's lawyers to give its assurance not to cross- subsidize GO. Cross-subsidies by dominant companies are illegal under Article 86 of the European Community Treaty.
Continental asked DOT to designate it for Cleveland-London Gatwick combination service "as soon as possible" and said it plans to inaugurate daily nonstop service on the route April 30, 1999. DOT removed the designation, along with Laker's Fort Lauderdale-Gatwick designation, when it awarded US Airways Charlotte-Gatwick (DAILY, Feb. 23). The department said Continental, Laker or any other carrier with firm service plans could apply for the undesignated London route.
Canadian Airlines reported a net profit of just C$5.4 million ($3.8 million) for 1997, an improvement over the net loss of C$187.1 million in 1996. The results were "in line with the financial objectives" of the company, Canadian said. The airline lost C$33.8 million ($23.7 million) in the fourth quarter, but the result also was an improvement over the year- earlier period.
Travel agents told the House Transportation aviation subcommittee yesterday they are being victimized by criminals stealing ticket stock and then doubly punished by airlines and the Airlines Reporting Corp. (ARC) through harassment and punitive actions that often force them out of business. ARC and an American Airlines security executive said stolen tickets are a tiny fraction of the total issue, and travel agents can protect themselves by taking adequate security measures.
Syracuse economic development officials' decision to decline a stake in would-be startup carrier Northern Airlines in exchange for forgiving a loan of seed capital "was in no way an indication of lack of support or confidence in the company's effort to start operations," said Vito Scisioli, president of the quasi-public Syracuse Economic Development Corp. (SEDCO).
FAA will ask Congress soon to reprogram $75.3 million in fiscal 1998 spending to fund Year 2000 computer date logic projects, Administrator Jane Garvey told the Senate Commerce aviation subcommittee yesterday. The Clinton administration's fiscal 1999 budget proposal includes $72 million for the Y2K fixes, and funds already are being spent on them. Garvey said FAA still is working with the DOT Inspector General's office to determine the total cost of fixes for mission-critical Host computer system items, but she suggested it will be in the range of $300 million.
Rep. Jack Quinn (R-N.Y.) is looking for co-sponsors for the FARE Act of 1998, which he plans to introduce next Tuesday. Seeking to combat high prices and poor service for air travelers, including his Buffalo-area constituents, Quinn proposes establishment of the Federal Aviation Research and Evaluation (FARE) Board, with the "power to hold hearings, take testimony and receive evidence" on complaints about predatory pricing and service availability. The board would commission studies on the complaints and report the results to Congress with recommendations.
International Aero Engines is the winner of a $1 billion engine order from three Latin American carriers, the details of which have not been announced, reports Daily affiliate Aviation Latin America&Caribbean. IAE's V2500 engine beat out General Electric in the battle for who would power the 100 Airbus A320 family of aircraft ordered by TACA, LanChile and Brazil's TAM. The minimum of 200 engines needed for the 100 twinjet aircraft would be worth $1 billion to IAE, with options worth another $1 billion. The aircraft order has been widely reported (DAILY, Dec.
Air Wisconsin formally announced plans to operate United Express service with Dornier 328s from Denver after acquiring troubled Mountain Air Express (MAX) this month (DAILY, Feb. 20 and Feb. 18). In a joint announcement with Do 328 manufacturer Fairchild Dornier, the companies said four aircraft will be in scheduled revenue service in late April; two more will join the fleet in early May and four more in early June. The aircraft will be configured for 31 or 32 seats.
Embraer will introduce its new long-range version of the RJ145 regional jet to the marketplace in April. Meanwhile, Business Express of Dover, N.H., placed a firm order yesterday for 20 units of the RJ135, a 37- seat derivative of the RJ145, and 40 options. It intends to place the 135 in service by October 1999 with subsequent deliveries of one per month.
Embraer has advanced the rollout of the new 37-seat RJ135 from August to May 11 as it races to be on the market at about the same time as its Fairchild Dornier 328JET competitor. The announcement was made at Asian Aerospace '98 in Singapore after the manufacturer initially issued a press release stating that the rollout would be in August. There was no immediate explanation for the change. First flight, however, will be in July, as earlier stated.
Summary of U.S. Major Carriers International Traffic September 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % Carriers (000) Change (miles) (000) Change Alaska 34 (6.64) 1,085 36,485 (5.06) Latin 34 (6.64) 1,085 36,485 (5.06)
Malaysia Airlines will take delivery of four 777s and three 747s from Boeing this year despite Malaysia's economic problems, but it will drop accelerated deliveries it had negotiated with Boeing before the crisis.
Embraer announced a large order for 30-seat Brasilia turboprops - 20 firm plus 40 options for United Express SkyWest - bringing mixed responses at Singapore, with most competitors being "flabbergasted" by the event. A source at Saab Aircraft, which had been attempting to sell the carrier used 340Bs, speculated the new aircraft are probably going out on seven-year leases. SkyWest management is "very conservative," he said. "There go their small-jet aspirations," opined another observer.
The IPTN N250 regional airliner came to Asian Aerospace '98 in Singapore backed by a large order book, most recently including a commitment by Air Venezuela for four, with a like number of options. In all, more than 220 N250s are on order, only 40 short of breakeven. Two N250 prototypes are now flying. Certification by the Indonesian aviation authority is due in March 1999, followed by the European Joint Aviation Authorities in May and the FAA at the end of that year.
The first full-flight simulator for the Embraer RJ145 regional jet has received its FAA level D certification at FlightSafety's Tulsa base. A second unit simulator is being prepared at FSI's Houston base. When this one is certificated, the first will be moved to a new site more convenient for airline operators of the Brazilian 50-seat regional jet. Designed and built by FlightSafety's simulation systems division, the RJ145 simulators include an enhanced daylight visual system, additional audio replications and increased aircraft motion.
Boeing will help Indonesia's state aircraft firm in understanding the airline market and in certifying its N250 turboprop airliner, according to Boeing Chairman and Chief Executive Phil Condit. "We are certainly going to spend time working with IPTN (PT Industri Pesawat Terbang Nusantara) understand that market," Condit said after a 30- minute meeting with President Suharto in Jakarta earlier this month.
Midwest Express will start service between Milwaukee and Hartford and expand flights between Milwaukee and Philadelphia. Its Astral Aviation subsidiary, which operates Midwest Express Connection carrier Skyway Airlines, will introduce year-round service between Milwaukee and Traverse City, Mich. On May 4, Midwest will introduce six flights between Milwaukee and Hartford - four nonstops and two one-stops via Philadelphia. Midwest also will increase the frequency of its Milwaukee-Philadelphia service by adding one business-day flight in each direction.
