Federal Express yesterday posted quarterly revenues of $3.99 billion, up 13%, on the strength of the company's domestic operations. Operating income rose 38%. The company had $79.7 million in after-tax merger expenses after acquiring Caliber Systems Inc., whose results were included with FedEx's for the first time. FedEx posted a net profit of $97.4 million for the third quarter ended Feb. 28, excluding merger expenses, up from $61 million. Without the merger expenses, the FedEx domestic operation showed revenue of $118.9 million, a 52% rise.
Top 50* U.S. Airports Average Yield (Cents) By Stage Length Groups Year Ended Third Quarter 1997 Under 250 250-500 500-1000 Airport Code Miles Miles Miles Albuquerque ABQ 34.62 18.68 12.84 Atlanta ATL 68.05 30.02 20.99 Austin AUS 38.31 19.38 15.36 Nashville BNA 65.81 23.43 17.57
Bankrupt Sun Jet International has received two reorganization proposals that would enable the charter carrier to resume operations as early as June 1. Aviation Industries wants to inject $8.5 million in debtor-in- possession financing under a proposal that will be reviewed at a hearing April 9. Sun Jet said that under Aviation Industries' plan, the current Sun Jet management would remain in place, "which is key to receiving expedited regulatory approval for the DOT and FAA." In a separate proposal, Sun Jet's founder and largest creditor, P.
Vanguard Airlines on Tuesday introduced $29 companion fares available for purchase through tomorrow. When customers purchase a seat at certain fares, they can buy a companion fare for $29 each way. The fare is good for travel April 1 through May 15. Seats are limited, and blackout dates and other restrictions apply. Companion fares require roundtrip purchase.
The new pilots contract at Sun Country provides extensive scope and successorship protections if the company changes hands. The 30-month first contract, signed yesterday, ensures that only Sun Country pilots will fly the airlines routes and provides job protection if the company is sold, said spokesman Paul Omodt. The contract also phases in pay improvements - as of yesterday, 727 and DC-10 pilots receive a 2% pay increase, and effective Sept. 1, 1999, 727 pilots will receive 2% more and DC-10 pilots 3%.
DOT issued decisions on joint requests for new U.S.-Mexico code-share service by American/Aero California, Delta/Aeromexico and United/Mexicana. American gained service in four U.S.-Mexico markets and may display Aero California's code to six Mexican points from Dallas/Fort Worth, two from Chicago and on a New York-Dallas/Fort Worth-Los Cabos routing. Aero California got authority to serve four Mexico-U.S.
Hispano-Suiza, the sub-components subsidiary of French engine maker Snecma, generated sales of 976 million French francs (US$166 million) last year, up 11% from 1996. Consolidated sales rose 20% to FF2.1 billion ($357 million).
FAA came under fire this week for permitting certification of the 777-300 and stretched versions of the A330/A340 without full-scale emergency evacuation testing. In a notice issued last week, it said, "There are currently sufficient full-scale evacuation data available to support" its position.
The U.S. Supreme Court heard oral arguments Monday in ALPA v. Miller, a case that will decide whether non-union employees must exhaust internal arbitration procedures before going to court with grievances about how their union fees are spent. Fees paid to unions by non-union employees can be used only for collective bargaining. Under Communications Workers v. Becker, workers have the right to reclaim all dues not used for collective bargaining purposes, according to the National Right to Work Legal Defense Foundation, which is representing 150 non-union Delta pilots.
Triumph Group said it has signed five-year contracts with UPS and Lufthansa Technik for repair and overhaul services. The UPS contract covers 727, 757 and 767 aircraft auxiliary power units and line replacement units. The Lufthansa contract covers APUs and LRUs on 737s.
SH&E will lead an advisory team to aid in the privatization of Air Madagascar. The New York consulting firm will be aided locally by FTHM. SH&E was selected from eight finalists. The World Bank expects fast-track conversion to private ownership, SH&E said.
Increased competition from other carriers has caused Northwest to stop its daily Chicago-Tokyo nonstop, beginning June 1. Northwest, which has served the route for more than 20 years, will transfer part of its Chicago flight attendant and ground staff to other locations. United and American, with hubs in Chicago, will add service to Tokyo during the next few months, and Japan Airlines serves Chicago-Tokyo daily with a 747-400. Northwest's Chicago 747 service accounted for about 10% of its capacity to Tokyo.
National Transportation Safety Board documents show that but for a series of "ifs," there might not have been a fatal crash of a Korean Air 747-300 trying to land at Guam. The board is holding three days of hearings in Honolulu on the crash, which killed 228. Of the more than 20 survivors, two flight attendants said there was no warning to prepare for a crash landing on Aug. 6, 1997. At the time of the accident, the glideslope associated with the ILS to the runway was out of service, although the localizer was working.
Delta, Northwest and Continental have discounted ticket prices for travel this spring and summer. Delta is offering introductory fares from Atlanta and Cincinnati to Mexico City, while Northwest and Continental are cutting children's and adult tariffs in selected markets for summer travel. Delta's Mexico City fares are $278 roundtrip from Atlanta and $318 roundtrip from Cincinnati. Tickets must be bought April 5-7 and travel taken between April 5 and May 31.
Turkish Park Holding, a conglomerate with interests in textiles, mining, financial services and airport ground services, is establishing an airline company, Park Express, that will fly only to domestic destinations in Turkey. The airline aims to serve destinations that are receiving poor service from state-owned Turkish Airlines (THY). The new airline company recently named Atilla Celebi chairman. Celebi, 68, was president and chief executive of THY until last year.
The European Commission authorized yesterday a #200 million (US$340 million) U.K. government loan to Rolls-Royce to help finance development of new-generation high-thrust Trent engines, estimated to total #736 million. The government loan will be granted over four years, from 1998 to 2001.
Tower Air and Federal Express have settled a lawsuit brought by Tower for alleged contract and antitrust violations. In another action, the New York State court issued a verdict in Tower's favor in a September 1995 Pacific Harbor Capital action over a leasing agreement.
Senate Commerce Aviation Subcommittee Chairman Slade Gorton (R-Wash.) said his answer to the question whether the $3 ceiling on passenger facility charges will be raised is a "resounding 'I don't know,'" and urged a "meeting of minds" between airline and airport advocates on the issue. But Gorton, speaking Tuesday at the Airports Council International-North America/American Association of Airport Executives Washington conference, said he sees no consensus at this time.
International Aero Engines said yesterday it is offering a 20,000-pounds- thrust version of its V2500 turbofan for Airbus's prospective new 100-seat jetliner, the A319-M5. Barry Eccleston, IAE president, said if the aircraft enters production, "I believe the best solution is to continue offering the existing family of engines and allow current customers to maintain fleet commonality." The V2520-A5 proposed for the A319-M5 is a derated version of the powerplants on current A319 and Corporate Jetliner models.
Air Canada will suspend its Indian operations between June 1 and Sept. 30 citing low yields, airline sources said. It presently operates four Airbus A330 flights every week between Toronto and New Delhi, via London. This is the second year in succession that Air Canada has resorted to a temporary flight suspension for the Indian sector. Aviation industry analysts say it might be significant that Air Canada began suspending its flights to India soon after Air-India began its additional North American flight to Chicago last year.
Continental, growing the fastest among large airlines, boarded nearly 36 million passengers in 1997 and bumped 360, garnering the lowest denied boarding rate for the year, 0.10 per 10,000 passengers.Delta, whose 1.53 rate was 15 times higher, boarded more than 100 million passengers and bumped 15,297, nearly as many as Continental, United, Northwest, American and US Airways combined.
Ansett Australia has cut the price of its Jakarta-Sydney roundtrip fare to US$400 from $700. Ansett Marketing Manager Yuliana Subarli said the move was needed because of a fare war among airlines in Indonesia.
Southwest, which is buying or leasing four 737-300s formerly operated by Western Pacific, is accelerating recruitment of flight attendants as a result. With the addition of the Westpac aircraft, Southwest's 737 fleet will total 263.
