British Midland, the code-share partner of 17 international carriers at London Heathrow Airport, posted record pre-tax profits of #17.3 million (US$28.8 million) for 1997, triple its 1996 earnings. The airline's sales rose 11% to #529.3 million ($880.9 million). British Midland carried 5.7 million passengers last year, up 7%. "This performance has been achieved at a time of unprecedented competition in the marketplace, especially from new low-cost carriers," said Michael Bishop, chairman.
Just three days after 747-400 pilots from All Nippon Airways went on strike, Japan is bracing for two more work stoppages today that for the first time will disrupt domestic passenger service. Some of Japan Airlines' pilots and flight attendants will strike today, but the carrier does not forecast any cancellations. Japan Air System is expected to cancel hundreds of flights, however, turning the domestic market into disarray. JAS is the third-largest carrier in Japan.
Air France and Luxair have agreed to cooperate to develop the Paris- Luxemburg route, offering multiple daily flights using Luxair's Boeing 737- 400s and Fokker 50s. The carriers will use an adjustable business-class separator in the aircraft, varying premium capacity based on demand.
In the wake of yesterday's U.S.-France bilateral agreement, Air France is proposing to start service to two additional U.S. gateways, Boston and Atlanta. The carrier has 81 weekly frequencies to the U.S. and will increase that amount 78% this summer, to 144, and it expects "vigorous growth" across the North Atlantic. It will begin daily service June 19 to Atlanta, home of partner Delta, serving the route with 767-300s with 25 seats in business class and 184 in economy.
America West's revamped revenue management system should produce an annual revenue benefit of $30-$50 million by 2000, said Salomon Smith Barney analyst Julius Maldutis. The airline also will see a $5 million quarterly boost later this year from a new automated scheduling system for aircraft, he said.
Delta Express is offering $69 one-way introductory fares between Columbus, Ohio, and Tampa as it begins daily nonstop service on the route May 1. The fares are available for travel in May except on May 21, 22 and 25. Tickets must be purchased at the time they are reserved, and restrictions apply. Delta Express will offer 21-day, seven-day and walkup fares, assigned seating and the Delta SkyMiles frequent flyer program.
AirTran announced yesterday it will begin service to Hartford Bradley Airport May 18 with three nonstop flights from Atlanta. AirTran is offering one-way fares starting at $99 until Saturday. As a special introduction, the carrier will waive the 14-day advance purchase requirement for travel to 19 connecting destinations from and to Hartford. After June 14 one-way fares will range from $99 to $201. First-class seating will be $226 one-way. AirTran previously served Hartford as ValuJet.
10 Fastest Growing U.S. Airports By Large, Medium and Small Hubs The Year 1997* vs. The Year 1992 Large Hubs (Greater Than 1% of Total Enplanements) 1997* Percent Of 1992 Percent Enplaned 1997 U.S. Enplaned Change Rank Airport Code Passengers Enplanements Passengers 97/92 1 Portland, OR PDX 6,093,778 1.01% 3,496,839 74.3%
Northwest traffic fell 0.7% in March on 1.4% more capacity, which lowered the load factor 1.6 percentage points to 75.7%. Domestic traffic ebbed 0.5% on 2.1% more capacity, dropping the load factor 1.9 points to 72.8%. Despite the troubles in Asia, Northwest's international traffic fell only 1% on 0.4% more capacity, resulting in a load factor of 80.4%, down 1.1 points. During the first quarter, the international load factor fell 2.0 points to 75.6%. March 1998 March 1997 3 Mths 1998 3 Mths 1997 Rev.
National Express Group plc, a U.K. bus and rail operator that owns East Midlands and Bournemouth airports, is the preferred bidder on a long- term lease for Stewart Airport in Newburgh, N.Y., state officials said yesterday. The company, which also operates the Subic Bay airport in the Philippines, beat out four other proposals with an offer of $35 million in cash and a percentage of revenues.
Continental's March traffic rose 10.2% on 11.55% more capacity, resulting in a load factor of 73.6%, down 0.9 percentage points. Domestic traffic rose 3.3% on 5% more capacity, while international increased 26.9% on 27.1% more capacity. The airline's international network represented 34% of systemwide capacity in the first quarter. Continental Express posted a 32.8% rise in revenue passenger miles on 29.1% more capacity, which pushed load factor up 1.6 points to 57.3%. March 1998 March 1997 3 Months 1998 3 Months 1997
AirTran Holdings reported a 25.4% increase in traffic and a 34.1% rise in capacity for March 1998, causing the load factor to drop 4.4 percentage points from the same month last year. AirTran flew 283.9 million revenue passenger miles and 454.2 million available seat miles, producing a 62.5% load factor. Passenger enplanements were up 17.2% to 454,936. The first three months saw a 37.4% increase in RPMs and a 42.5% rise in ASMs from the first three months last year, which pushed the load factor down 1.7 points. Passenger enplanements rose 28.2% to 1,114,418.
US Airways continued to shrink in March, moving toward delivery of new Airbus aircraft - and growth - later this year. Traffic fell 4.5% on 4.5% less capacity, keeping the load factor constant at 75.2%. Domestic traffic fell 5.9% on 5.2% less capacity, resulting in a 74% load factor, down 0.5 percentage points. International traffic increased 9.7% on 3.9% more capacity, boosting the load factor 4.6 points to 86.3%. Despite the international expansion, the average passenger journey on US Airways last month fell 0.6% to 711.4 miles.
Malaysia Airlines has introduced a bargain package from Los Angeles or Newark to Malaysia for $739 per person roundtrip, including four nights in a hotel. The fare is available to 10 different cities in Malaysia, and travel must occur between April 15 and June 30. The airline begins one- stop service from Newark April 13.
KLM's overall traffic increased 8% on 5% more capacity, boosting the load factor 1.8 percentage points to 77.8%, for the 1997-98 fiscal year, which ended March 31. Passenger traffic rose 12% on 8% more capacity. Mid- and South Atlantic, North Atlantic and Europe traffic increased 22%, 17% and 16%, respectively. On Asia routes, passenger traffic grew 6% on 5% more capacity. In March, traffic rose 4% on 5% more capacity, which reduced the load factor to 79.5% from 80.7%.
Joseph O'Gorman, former executive VP of United and chairman and president of Reno Air, has been elected to the board of Cade Industries, which develops components for aerospace and air transport companies.
The U.S. and France have postponed signing their new air transport agreement, scheduled to take place yesterday in Paris. The delay is due to "technical reasons" and "will not alter the contents" of the accord, said a spokesman of the French Ministry of Foreign Affairs. The signing is now expected to take place on April 8, "at the earliest," he said. U.S. negotiators "wanted to 'comb' the text and the annexes of the agreement one last time before signing," he added. A U.S.
Industry may believe it has been promised a satellite-based sole-means system of navigation, but no such promise has been made, according to a top FAA official. The agency expects an answer "within six months" on whether the GPS-based Wide Area Augmentation System should offer sole or primary means for approach and landing, Dennis deGaetano, acting associate administrator for research and acquisitions, told The DAILY. DeGaetano said he wants to clarify reports that FAA has promised industry a sole- means WAAS.
Depending on whom you ask, DOT's proposed guidelines to stop anti- competitive behavior by the major carriers are either a big boost for consumers or the worst policy ever and bad for the future of airlines. On the pro side are consumer groups, small airlines that would benefit from the regulations and legislators who believe their constituents stand to be served better if more markets are opened to startups. On the con side are the majors and economic analysts who see the proposals border on draconian.
The Washington debate over major airlines driving smaller carriers out of business and collecting fat profits at fortress hubs "ignores the remarkable absence of profits in recent history," observes Robert Gordon, Northwestern University economics professor. "Between 1982 and 1997, the 10 major U.S. airlines earned small profits in some years that were exactly canceled out by losses in other years, with a net profit of zero over that 16-year period."
DOT yesterday invited U.S. carriers to apply for the one remaining U.S.- London Gatwick service opportunity available under the existing U.S.-U.K. aviation agreement for service to a new U.S. gateway. Applications are due by by April 20 and answers seven days later.
Air Transport Association Cargo Traffic January 1998 Revenue Ton Miles (000) January January % 1998 1997 Change Domestic Freight 732,451 706,699 3.6 Mail 169,028 163,636 3.3 Total 901,479 870,335 3.6 International Freight 686,629 612,538 12.1
Pratt&Whitney said yesterday it has recalled more than 8,000 turbine blades from PW4000, PW2000, JT9D and V2500 engines used on aircraft ranging from A320s to 747s. The company and FAA are concerned that some of the blades may have been damaged by an "overly aggressive" new ultrasonic cleaning machine at Eagle Services, New Haven, Conn., a P&W subsidiary. Eight engines with the blades were installed on United and Delta aircraft but FAA said there had been no incidents. The engines have been removed.
