Boeing demonstrated its latest digital information offerings aimed at replacing paper and microfilm maintenance documents at an airline symposium in Seattle. Each guest was provided $20,000 in fake money to allocate among 11 investment choices. The biggest total, $395,000, went to Boeing's online data service, followed by $371,000 for digitizing data for out-of- production airplanes, $245,000 for "intelligent" graphics and $241,000 for a low-cost system to help non-digital airlines make the transition to a digital world.
Boeing will display its aircraft at Internationale Luftfahrtaustellung (ILA), the Berlin Air Show, for the first time this year. The presence of the airframe giant alongside other U.S. market leaders - GE, Lockheed Martin, Raytheon, Pratt&Whitney, Northrop Grumman and others - is seen as a reflection of ILA's rapid expansion.
Lufthansa Group posted a record fiscal 1997 pre-tax profit of 1.65 billion Deutschmarks (US$920 million), up 140% over the previous year, as the company wiped out all remaining debt. Net profits rose 49.6% to a record DM835 million ($465 million), while revenue grew 11% to DM23.1 billion ($12.9 billion). Expenses increased 6.3%. The group financial position, which has improved steadily during the past two years, reached a new level last year as Lufthansa ended the year with a DM1.8 billion equity leap.
Neither US Airways nor American has begun or even scheduled talks with their pilots unions on their proposed alliance, even though both carriers need pilot approval to enter a domestic code share. United and Delta, whose domestic code-share alliance also is subject to approval by pilots, began talks with their unions shortly after announcing their plans.
Executives from Delta, American, United and Northwest assured the House Transportation aviation subcommittee last week (DAILY, May 1) that competition will not be harmed by their respective code-share agreements. Northwest VP Elliott Seiden suggested his carrier's alliance with Continental is the most beneficial for consumers, since the partners' route systems have very little overlap and, combined, would create a single entity nearly the size of its top competitors.
Approved an initial one-year exemption for Mexicana to operate scheduled combination service between Puerto Vallarta, Mexico, and co-terminal points Baltimore and Washington...Approved, subject to FAA-approved routings, a Russian Bureau of Travel charter using a Transaero DC-10-30 for one roundtrip carrying 300 passengers to the Second Annual Galactic Conference on a Moscow-Las Vegas routing May 10-18...Approved, subject to FAA-approved routings, an Erickson Air Crane charter using an Air Foyle An-124-100 for a one-way flight carrying an Erickson Air Crane helicopter o
As airlines wait for European Commission recommendations on international alliances, the guessing game on the release date continues. DOT Secretary Rodney Slater told Sen. John McCain (R-Ariz.) recently the department expected the findings in late April (DAILY, April 28), a target that like many others has come and gone. One likely scenario, sources said, is for EC's recommendations on American-British Airways and the United-Lufthansa- led Star alliance to come out simultaneously, followed by the others.
Amtran Inc., parent of American Trans Air, reported a record first quarter net profit of $12.4 million, up 285% over the prior-year period and a record for any quarter in the airline's 25-year history. Operating income tripled to $23.4 million while revenue increased 18% to a record $229.3 million. Yield, at 9.09 cents, also set a record. Even the airline's charter revenue per available seat mile improved, up 4.6% to 6.1 cents. Lower fuel prices and an improved aircraft payment structure enabled the company to reduce its cost per ASM to 6.12 cents from 6.25 cents.
Taiwan's EVA Airways, showing few symptoms of the Asian economic crisis, will push ahead with plans to increase capacity to Europe 33% this summer. The airline will add dedicated routes to Vienna and Paris on June 3, splitting what had been a Taipei-Bangkok-Vienna-Paris route. The move also increases freight capacity to Europe by almost 100 tons each week.
General aviation billings in the first quarter of 1998 were the highest in history, increasing 24.5% to $1.1 billion from $886 million in the first quarter of 1997, General Aviation Manufacturers Association President Ed Bolen said yesterday. Shipments rose 92.4% to 456 units, up from 237. Bolen predicted "another great year for this industry," saying jet deliveries reached a record high of 82 units in the quarter, an increase of 30.2%. Turboprop deliveries rose 20.5% to 47 units and piston-engine aircraft shipments grew 142.2% to 327 units.
U.K. and Bahrain signed an agreement updating and expanding their 1972 bilateral. British carriers will be able to carry passengers from Bahrain to other Persian Gulf points and Bahraini carriers will be able to serve any U.K. airport, not just London.
WestAir, the West Coast subsidiary of Mesa Air Group that has lost its United Express franchise, will be sold or liquidated, The DAILY has learned. Its fleet of 21 Jetstreams and 19 Brasilias will not be a Mesa obligation. The remaining Mesa fleet of United Express Beech 1900s and Brasilias are actively on the block with United Express Great Lakes taking 15 and possibly more 1900Ds. Two Brasilias are gone and five more are in the pipeline, likely to SkyWest, the Mesa/WestAir United Express replacement on the West Coast.
Yesterday's House Transportation aviation subcommittee hearing was expected originally to focus on international alliances, but subcommittee members queried witnesses extensively on what some see as growing concentration in newly proposed domestic alliances, heightening uneasiness over predatory activities and hub domination. Subcommittee Chairman John Duncan (R-Tenn.) said he was "somewhat skeptical" of domestic alliances that "seem one step away from full-fledged mergers," and he urged DOT and the Justice Department to safeguard competition.
New Jet Aircraft Deliveries January 1998 Last 12 Months Carrier # Type Engines Delivery Air Canada 2 A319 CFM56-5A5 22 Air France 1 A340-300X CFM56-5C4 3 Air France 1 737-300 CFM56-3C1 - Air New Zealand 1 737-300 CFM56-3C1 - Air Portugal 1 A319 CFM56-5B5/P 2
Fernando Pinto, president and chief executive of Varig, will speak Tuesday at an International Aviation Club luncheon at The University Club in Washington, D.C. For more information, contact Charlene Kennedy at 202- 216-0700.
FAA said yesterday it plans to fine SabreTech $2.25 million, the largest fine ever proposed for hazardous materials violations, for the company's role in the May 11, 1996, fatal crash of ValuJet Flight 592. FAA cited the company for "knowingly offering Valujet a shipment" of about 125 unexpended and 10 expended oxygen generators on the passenger-carrying flight, in which all 110 people aboard died. SabreTech counsel Kenneth Quinn said FAA's action was "neither necessary nor justified," because the company revised its operations long ago to prevent a recurrence.
American is adding automatic external defibrillators and enhanced medical kits to its domestic flights, beginning today. The carrier has equipped its 247 over-water aircraft with defibrillators since June 1997 to help treat sudden cardiac arrest. The device gives flight attendants voice prompts to administer treatment, determines whether the patient needs an electrical shock and delivers it when appropriate. It also provides a visual analysis of the heart's rhythm to help an attending physician diagnose the patient's condition.
Northwest filed in support of a joint motion by American opponents asking for a suspension of procedural dates in the American-British Airways antitrust immunity proceeding until DOT decides whether documents from the US Airways suit against BA are relevant to the case. After declaring the application substantially complete, DOT gave parties until May 11 to comment and June 9 to file replies.
British Aerospace's announced acquisition of 35% of Saab AB envisions a substantial role for British Aerospace Asset Management (BAeAM) in the management of more than 300 Saab 340s and Saab 2000s as they come off their original leases. Although Investor AB, which controls Saab, made no mention in its statement of asset management involvement by BAeAM in the Saab fleets, BAeAM General Manager Rory Fisher called it the "first move towards consolidation in Europe of aerospace asset management..."
Niche carrier Pro Air answered objections by the Office of the Queens (N.Y.) Borough President and the Detroit City Airport Study Committee objecting to its bid for slot exemptions at New York LaGuardia Airport. Queens has continually fought slot exemptions, opposing more noise and congestion, but ProAir said its four daily departures - which would be operated by Stage 3 jets - "cannot be shown to represent any diminution in either safety or in the quality of life for the citizens of Queens," who would benefit from low-fare access to Detroit.
...Aero International (Regional), on the other hand, announced the dissolution of the European regional-aircraft consortium this week, with ATR and BAe agreeing to go their own ways with their respective turboprop and Avro quadjets, albeit under the same roofs. ATR also has a large number of turboprops coming off leases that must be managed. The Franco/Italian partnership, which is being formalized into a single company, will retain its own asset management activities within its existing commercial sales organization.
Latin American carriers need to reveal more operating and financial data to the international aviation community, Tom Gallagher, managing director of CIBC Oppenheimer, and Julius Maldutis, managing director of Salomon Smith Barney, said at the International Airline CEO Conference in Orlando. Gallagher noted a need for "transparency" among carrier data, which Maldutis said would lead to "tremendous benefits" for Latin American carriers.
Used Jet Aircraft Deliveries January 1998 Carrier # Type Engines Previous Operator Air Liberte 1 Fokker 100 TAY620-15 Deutsche BA Airbus Industrie 2 A310-300 PW4152 Air Club Airworld 2 A320-200 V2500-A1 BCM Airlines Capital Aircraft 1 727-200 ADV JT8D-15 Prestige Airways Challengair 1 DC-10-30 CF6-50C Caledonian
