Alitalia has pledged to stop its illegal practices "soon" on the Italian market, indicated the spokeswoman of European Union transport commissioner Neil Kinnock on Feb. 6 in Brussels. The European Commission has threatened to block the payment of 750 billion lire (US$4.4 million) in state aid unless Alitalia stops acting as a price leader on some domestic routes. Alitalia is obligated not to lower its fares below those of its competitors under conditions it accepted to obtain the EC's approval of a massive recapitalization plan, in July 1996.
Reno Air said it will incur a "substantial" loss for fiscal 1997 and its fourth quarter loss will "significantly exceed" the $6.3 million lost during the same period a year earlier. "The cutover to a new Sabre reservations system significantly impacted our revenues as well as our costs in the fourth quarter," said Chief Executive Robert Reding. "Due to the disruption caused by the transition, we were not able to handle the large volume of incoming reservations calls." Reding said the Sabre connection will help the airline in the long term.
DOT issued an order approving United's complaint against the Russian Federation (DAILY, Sept. 22, 1997) but deferred a decision on sanctions as it seeks resolution through the diplomatic process. The department said forcing United to terminate its U.S.-Frankfurt-Moscow code share with Lufthansa over U.S. objections "establishes an unjustifiable and unreasonable restriction against an air carrier and imposes an unjustifiable and unreasonable restriction on the market access of United." The U.S.
National Business Aviation Association promoted Pete West to senior VP-government and public affairs; Bob Blouin to senior VP-operations; David Almy to VP-strategic programs; Moe Haupt to director-airport/ground infrastructure; Paul Smith to director-air traffic services; Bill Stine to director-international issues; Jay Evans to senior manager-airmen and commercial issues; Fred Kirby to senior manager-safety and maintenance; Cassandra Bosco to senior manager-media relations; Joel Bacon to senior manager- legislative affairs; Linda Peters to senior manager-exhibits; Sand
Midway Airlines posted an operating profit of $15.1 million and a net profit of $24.9 million during 1997, including net earnings of $2.6 million in the fourth quarter, the fifth consecutive quarter of record profits. The gain was more than double the $1.1 million in profits earned in the fourth quarter of 1996. Midway's annual results compare with a net loss in 1996 that included a $16.9 million writeoff of assets. The airline posted the gains as it conducted an initial public offering Dec. 4.
Great Lakes Aviation flew 13.4 milllion revenue passenger miles last month, a 32% reduction from the January 1997 figure. But capacity fell 37.4% to 31.4 million available seat miles, allowing the load factor to increase 3.4 percentage points to 42.7% January 1998 January 1997 Rev. Passenger Miles 13,382,000 19,691,000 Available Seat Miles 31,356,000 50,099,000 Load Factor (%) 42.7 39.3
DOT adopted expedited procedures to help activate new services as soon as possible when it issued its formal invitation for rights available under the new U.S.-Japan bilateral (DAILY, Feb. 4). The department already has decided to grant seven weekly Tokyo Narita frequencies to each of the current MOU carriers - American, Delta and Continental/Continental Micronesia- on a pendente lite basis without prejudice to future decisions. A final order on that decision is to come.
Rep. Hal Rogers (R-Ky.), a member of the House Appropriations transportation subcommittee, discusses President Clinton's budget proposal and funding prospects for transportation programs on Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1 :30 p.m.
Status Of Aviation Trust Fund, Fiscal 1994-1999 (in millions of dollars) Fiscal years 1994 1995 1996 Unexpended balance, start of year: Uninvested balance 179 180 220 U.S. Securities: Par value 12,672 12,206 11,145 ---- ---- ---- Total balance, start of year 12,851 12,386 11,365
Continental traffic for January rose 10.4% on 9.9% more capacity, boosting the systemwide load factor 0.3 percentage points to a record 64.8%. The domestic load factor, also a record, rose 0.5 points to 63.9% as domestic traffic grew 3.2% on 2.5% more capacity. International traffic rose 26.8% on 27.8% higher capacity, lowering the load factor 0.5 points to 66.5%. Continental Express traffic jumped 36.6% on 23.8% more available seat miles, lifting the load factor 4.5 points to 47.5%. January 1998 January 1997
Horizon Air, an Alaska Air Group subsidiary, flew 74 million revenue passenger miles last month, up 9.8% from January 1997. The regional offered 130 million available seat miles, up 9.5%, as the load factor climbed 0.1 percentage points to 56.9%.
ASA Holdings, parent of Atlantic Southeast, posted 1997 net income of $54.5 million, or $1.81 per share, a 3.7% decline from 1996, as revenues rose 2.7% to nearly $385.3 million. For the fourth quarter, net income jumped 32.2% to $13.7 million, or 45 cents per share, as revenues increased 11.5% to just over $97 million. Quarter Ended Dec. 31 12 Months Ended Dec. 31 1997 1996 1997 1996
Saying FAA's decision may set an important precedent, DOT Inspector General Kenneth Mead has suggested FAA seek more explicit legislative guidance as to whether the Port Authority of New York and New Jersey should be allowed to collect and spend $1.6 billion in passenger facility charges (PFCs) on a light rail system at New York Kennedy Airport (DAILY, Feb. 5).
Lufthansa's flights worldwide will become smoke-free March 29. The airline cited an internal survey in which more than two-thirds of passengers preferred non-smoking flights and smokers were willing not to smoke on board. Star Alliance partners United, SAS and Air Canada already are smoke-free worldwide.
FAA said it will require the operators of 9,814 Textron Lycoming piston- engine aircraft to inspect the crankshafts at a cost of $480 per inspection. FAA said six engine failures have occurred on aircraft more than 13 years old, mainly in England. Four incidents occurred in the U.S. - in 1972, 1982, 1984 and 1996, FAA said. "No injuries occurred as a result of these incidents," it said.
Deputy Transport Minister Hiromichi Toya's insistence that Japan will not permit FedEx to be paid for slots it leases to other U.S. carriers (DAILY, Feb. 3) does not endanger the slot compromise or the overall U.S.-Japan agreement, sources said yesterday, because Japan will look the other way. U.S. and Japanese sources agreed that Japan's Ministry of Transport is not in a position to police compensation for slot transfers, regardless of whether they involve direct payment or barter arrangements for services such as ground handling at Narita or elsewhere.
Atlantic Coast revenue passenger miles jumped 60.3% last month to 37.7 million as capacity climbed 44.9% to nearly 92 million available seat miles. The resulting load factor, 41%, was 3.9 percentage points higher than the 37.1% posted in January 1997.
Mercury Air Group reported this week record net income for the second quarter ended Dec. 31 of $2 million, a 54% increase from $1.3 million in the same quarter the previous year. Revenue was down l7% to $68.7 million from $73.9 million, primarily due to a drop in world oil prices. For six months, Mercury reported a net loss of $168,000, down from net income of $2.8 million in the 1996 period.
FAA suddenly has a concern that the Host computers at its en route centers will not work in 2000 and is stripping other programs of funds to line up newer computers to control traffic at the 20 centers, sources told The DAILY yesterday. FAA said it will not know until March 31 whether the Host computers can be made Year-2000 compliant. Sources said facilities and equipment (F&E) funding will be halted for several navigation and landing system improvements and upgrades, including Runway Visual Range, Instrument Landing System and VOR/DME.
Atlantic Coast Airlines, operating in the Eastern U.S. as United Express, is offering double frequent flyer miles until April 15 to passengers flying from Washington/Dulles to Fort Myers, Jacksonville, and Tampa, Fla.; Atlanta; Nashville, and Raleigh/Durham. Passengers enrolled in the carrier's frequent flyer program must call 800/426-7670 and mention the promotion code MPN198 to qualify.
Trans States Airlines has struck a code-sharing deal with its sixth partner, Delta. Trans States will provide expanded service for Delta customers at New York Kennedy Airport. Trans States and Delta still are discussing which routes the regional carrier will fly, said Trans States spokesman Bill Mishk.
