Daimler-Benz earned 4.2 billion Deutschmarks (US$2.3 billion) before taxes in 1997, up from earnings of DM2 billion ($1.1 billion) in 1996. The company recorded sales of DM122.8 billion ($67.8 billion), as all four divisions reported increases of at least 15%. Operating profit climbed 78% to DM4.3 billion ($2.4 billion). Sales in the Aerospace Division grew 20% to DM15.3 billion ($8.5 billion).
FAA Administrator Jane Garvey plans to address a meeting of airline chief operating officers when they meet in April at Air Transport Association headquarters in Washington. Garvey wants to emphasize FAA seriousness concerning cooperation in air traffic control modernization efforts. FAA's "immediate focus is on the critical need to replace aging equipment," she says.
Orally approved an initial one-year exemption for Continental Micronesia to conduct scheduled foreign combination service between Guam and Saipan and Niigata and Okayama, Japan, and to integrate the exemption with the carrier's existing certificate and exemption authority... Orally approved a one-year exemption renewal for Japan Asia Airways to conduct scheduled foreign combination service between Nagoya, Japan, and Guam and Saipan...
Northwest will acquire 979,000 shares of Continental stock - and the majority control it thought it got in January but did not - under a purchase agreement with Barlow Investors III. Shares acquired by Northwest under the new agreement, signed March 2, plus its stake under the earlier deal will give it about 15.4% of Continental's common stock equity and 57.8% voting power, Northwest said in an 8-K filing to the Securities and Exchange Commission. The Barlow stock cost $59.5 million, or $60.82 per share. On Friday, Continental closed at $56.438 per share, up $2.938.
Exports, fueled by the aerospace sector, now account for one in six new jobs and one in five manufacturing jobs, according to U.S. Trade Representative Charlene Barshefsky. Since 1992, exports have accounted for more than one-third of U.S. economic growth, she said.
The 10 largest U.S. carriers improved their on-time arrivals rate in January, with lower mishandled baggage and consumer complaint rates, compared with December. DOT also published quarterly and 12-month denied boarding data, reflecting a decrease in bumping for both periods. The carriers posted an on-time record of 75.1% in January, an improvement over 73.5% in December and 68.4% in January 1997. US Airways was first, with 80.8%, Southwest second, 79.4%, Alaska ninth, 69.3%, and Northwest 10th, 69.1%
Air New Zealand asked DOT to amend its exemption to allow it to operate service "to the full extent authorized" by the U.S.-New Zealand open-skies agreement until Oct. 17, when the exemption expires, pending the issuance of an amended foreign carrier permit. The carrier wants blanket authority to engage in scheduled foreign combination service from points behind New Zealand via New Zealand and intermediate points in the South Pacific to points in the U.S. and beyond, to operate cargo services between the U.S.
- In Federal Register dated March 3...Issued an airworthiness directive on Pilatus PC-12 aircraft requiring elevator inspection...Issued an AD on Robinson R44 helicopters requiring replacing the aluminum elbows for the cooler lines...Proposed an AD on Eurocopter SA-350/355 helicopters to require inspections of the main gearbox suspension cross beam.
Studies predict "air traffic gridlock" unless airspace modernization efforts get under way soon, Jack Ryan, Air Transport Association VP-air traffic management, told the House Transportation aviation subcommittee Thursday. "If we do not take immediate action to modernize the national airspace system, then by 2005 we will still have airplanes and airlines but they will not resemble anything like a scheduled airline," Ryan said.
Northwest Chairman Gary Wilson on Friday praised his carrier's global code- share alliance with Continental as a major pro-competitive transaction. More carriers will seek global alliances, he predicted, but added they will need antitrust immunity to grow those partnerships. He also warned against government reregulation of the airline industry as it returns to profitability.
All Nippon Airways, lowering its forecast, expects to lose approximately $57 million in the fiscal year ending March 31, airline executives said last week in Tokyo. ANA attributed the predicted loss, which supplants a forecast net profit of $30 million, to a slowing Japanese economy and lower domestic revenues. ANA, the largest domestic carrier in Japan, derives about 80% of its revenues from service within Japan. "There are just fewer people traveling in Japan," said ANA spokesman Tom Fredo.
KLM traffic for February increased 8% on 9% more capacity, which resulted in a load factor of 73.8% versus 74.5% a year ago. Asia traffic grew 2% on 5% more capacity, while North Atlantic traffic rose 11% on 8% more capacity.
Fifteen unions representing Delta alliance partners Swissair, Sabena, Austrian, Air France, TAP, Aer Lingus and Aeromexico have signed an international cooperation agreement. They intend to share bargaining data, company intelligence and alliance information to facilitate crew sharing, ground-handling and other tasks.
Continental and its Continental Express pilots have reached tentative agreement on a five-year contract after 10 months of negotiations. Terms were not disclosed pending ratification by members. The tentative agreement comes just weeks after Continental's mainline pilots reached a tentative pact, and the Independent Association of Continental Pilots, representing Express and mainline pilots, vowed both contracts would be signed at the same time.
Taquan Air, Ketchikan, Alaska, has purchased two Jetstream 32EPs from British Aerospace Asset Management-Turboprops, BAe reported. Taquan Air is launching May 1 a new scheduled carrier, AirOne, which will serve Juneau, Ketchikan, Wrangell, Petersburg, Sitka and Klawock. The airline also will provide summer service between Prince Rupert, Canada, and Inside Passage communities.
Vanguard Airlines is offering a $25 companion fare sale through today, enabling customers traveling at full fare to bring along a friend for $25 each way. Travel must take place between April 1 and May 15. A seven-day advance purchase, a one-night stay and other restrictions apply.
FAA has awarded its level "D" certification to FlightSafety International's full-flight simulator of the Embraer RJ145 regional jet at the Houston flight center, FlightSafety reported. The simulator - the second RJ145 simulator in service - was designed and built by the FlightSafety Simulation Systems division in Tulsa, Okla., and is equipped with the VITAL ChromaView visual system that provides detailed daylight scenes.
Southwest has received tentative approval from Maryland's public works board to add 10 gates at Baltimore/Washington International Airport by 2002, increasing its gates from six to 16. The expansion is estimated to cost $72.5 million, and Southwest spokeswoman Kristie Kerr said she did not know how much the carrier will pay in leasing fees. The gates will increase Southwest's capacity dramatically - it currently operates 50 flights out of the six gates and "could go up to 160 flights with 16 gates," Kerr said.
DOT issued a final rule this week establishing categories of disabled passengers for which airlines generally must provide special seating accommodations, if requested. The department also asked airlines to carry collapsible, folding or break-down electric wheelchairs as in-cabin storage, if requested, in the same manner as manual wheelchairs, and outlined requirements for handling batteries. The effective date of the new rule, published in the March 4 Federal Register, is April 3. The compliance date on seating is six months from the rule's effective date.
