Interlease Aviation Group said it has reached agreement with Gulf Air of Bahrain to buy the carrier's five L-1011-200 aircraft, spare parts, tooling and a cockpit flight simulator. Phil Coleman, Interlease president, said there continues to be "high demand" for spare parts and engines and that the aircraft will be used in charter operations by TradeWinds Airlines, joining three others on lease to the carrier. Dennis Crosby, who heads TradeWinds' charter business, said the 345-passenger aircraft will be used on transatlantic flights.
SkyWest common stock has soared since the carrier was awarded the former Mesa/WestAir routes at both Los Angeles and San Francisco by United. Although trading at $37.50 per share near the close of trading Thursday, the stock hit a 52-week high of $38.50 Jan. 21 on the heels of the San Francisco announcement, up from $29.63 on Dec. 31. One year ago today, SkyWest was trading at $12.63, before its affiliation with United. That represents a 204.8% jump to $38.50 per share in one year. The carrier announced Jan.
British Aerospace Asset Management-Jets (BAe-AMJ) posted sales and lease transactions totaling about US$290 million in 1997, including a record 12 BAe 146s worth slightly more than US$105 million, BAe-AMJ said. Meanwhile, affiliate British Aerospace Asset Management-Turboprops (BAe- AMT) said it recorded a record year "in both the number and quality of transactions" - 135 deals comprising 54 leases, 51 renewals or extensions and 30 cash sales.
The American Society of Travel Agents has joined two other travel organizations in protesting the planned sale of Hawaiian Airlines flight coupons through Bank of Hawaii automated teller machines. The National Association of Commissioned Travel Agents and the Association of Retail Travel Agents earlier this month asked the carrier to drop the plan (DAILY, Jan. 16). ASTA last week filed a letter of demand with the Hawaii Banking Commissioner seeking information about Bank of Hawaii's authority to sell the coupons via its ATMs.
Arinc said its GlobalLink service is in operation, and aircraft equipped with the HF data link can begin sending two-way messages. The first ground station was installed in San Francisco, and the next will be operational in Hawaii within 30 days, Arinc said. Eight more will be added over the next 15 months to provide worldwide coverage including the North Pole. John Belcher, president, said the service will provide "three to six times cost savings over alternative communications systems." Competing systems are "still on the drawing board," he said.
Business Travel Coalition Chairman Kevin Mitchell wrote the chief of the Justice Department's Transportation, Energy and Agricultural Section antitrust division asking for scrutiny of the proposed Northwest- Continental code share. In a letter copied to senior officials at DOT and the Federal Trade Commission, Mitchell warned Justice's Roger Fones that the transaction could increase airline leverage over purchasers and help block new entrants, and it would be another step toward industry consolidation.
United, Delta and Continental asked DOT to overturn its approval of the American-TACA code share or impose more conditions on it, but American/TACA told the department the measures are in conflict with the U.S.-Central America open-skies agreement. DOT tentatively approved the code share this month but said the carriers should be barred from operating a Joint Alliance Committee and would have to sell tickets on a blocked- space agreement in certain markets.
Lufthansa Group traffic rose 7.3% during 1997 on 5% more capacity, which improved passenger load factor 3.2 percentage points to 73.5%. The group carried 44.5 million passengers, 3 million or 7.4% more than in 1996. The fastest growth occurred at all-jet regional Lufthansa CityLine, where the passenger count rose 25.4% to 3.8 million. Lufthansa carried 33.3 million people, up 5%, including 4.7 million across the Atlantic ( +17%) and 3.9 million to Asia (+7.8%).
Egyptair signed a firm order for two A340-600s and took options on two more, Airbus said this week. The carrier, a launch customer for the airplane, operates three A340s and other Airbus aircraft.
Mike Savage, VP-marketing and public affairs for Saab Aircraft International since 1984, has established his own consulting firm following the closure of Saab's office in the U.K. A well-known personality in the regional aviation industry, Savage previously served with Handley Page on the Herald program and with British Aircraft on the BAC-111 twinjet project. Savage was public relations manager on the British portion of the Concorde program from first flight to entry into commercial service.
Mesa, in its own10-K filing with the SEC for fiscal 1997, described its relations with senior partner United at the Denver hub as "poor." Mesa stated, "It is unlikely that MAI will operate in the Denver market through 2005 [the end of its contract]. As a result the company believes it will ultimately dispose of its Denver operations by transfer or sale to another airline. United President John Edwardson said this week, "We have had a concern about the level of service" at Denver.
Average load factor for a sampling of 15 regional airlines increased an average of 2.54 percentage points in December to 54.3%, up from 51.8% a year ago. Horizon Air was back at the top of the list with 65.9% on the month, up 4.2 percentage points, while American Eagle, Continental Express, Mesa Air Group and Skyway saw their load factors decline slightly year- over-year. Delta Connection Comair posted the largest increase of the group, up 11.1 points to 60.9%.
The pilots of Brussels-based low-fare carrier Virgin Express are considering a strike in support of a list of demands to be submitted to the company's management, the Belgian Cockpit Association (BCA) said this week. BCA wants "a more serene and stable professional and social life" and claims that "stress and urgency have been instituted as a system" by Virgin Express, a fast-growing partner of Sabena. The unions want to negotiate holidays, schedules and new hirings.
U.S.-Japan talks continued in Washington yesterday. A U.S. government official said it was possible negotiators would work into the weekend if they could not reach agreement by today.
DOT has invited applications from U.S. carriers interested in providing scheduled combination service in the U.S.-Peru market. The government of Peru said it will make available by June seven additional frequencies for service in the U.S.-Lima market, with Iquitos as an optional co-terminal point, according to an agreement outlined in a December 1997 letter. This service is in addition to daily New York-Lima- Cuzco service to be operated by a U.S. carrier in January, the letter said (see following story).
Air Wisconsin has promoted Herman Bethel to VP-hub operations. Bethel will have overall responsibility for the carrier's three largest customer service ground operations at Denver, Aspen and Chicago. He will relocate to Denver, where the carrier "expects most of its growth to occur over the next few years." Bethel joined Air Wis as a passenger service agent in March 1979. Air Wisconsin currently operates 16 BAe 146 quad jets as United Express at the Denver and Chicago hubs. It expects to pass the one billion available seat mile mark in 1998.
Atlantic Coast Airlines, the Washington Dulles-based United Express affiliate, posted 1997 net earnings of $14.5 million ($1.61 per share), a 24.3% decline from 1996's $19.2 million. But as operating revenue rose 12.6% to $205.4 million while operating expenses were rising just 8.8% to $176.5 million, operating income reached $28.9 million - and the company's operating margin for the year rose 3.2 percentage points to 14.1% from 10.9%.
Aviation Distributors said it has reached agreement with Air China Group Import&Export Trading Co. to form a cooperative to market and sell surplus commercial aircraft materials owned by air carriers in China. ADI is relocating a senior executive to Beijing to be responsible for marketing the surplus materials. The Chinese side will be responsible for liaison with the Chinese carriers and arranging for consignment of the materials.
Taiwan domestic carrier Daily Air will begin scheduled helicopter service between Matsu and three smaller islands before the end of February. The carrier, which currently provides Taiwan's only scheduled passenger helicopter service, expects the new five-day work week to spur tourism to Matsu, which lies just off the coast of mainland China.
Swedish manufacturer Saab Aircraft Wednesday delivered the first of two Saab 2000 high-speed turboprop airliners to Med Airlines of Sicily. The 53-passenger aircraft is scheduled to enter service March 1 and will be operated between Trapani and Rome. A second Saab 2000 will be handed over to Med Airlines in March. Med Airlines President Franco Castiglione said that after an evaluation of new regional jets and turboprops, the 2000 "most suited all our requirements." He cited the aircraft's speed, comfort and quiet operation in the airline's decision.
The Senate debated passage yesterday of a bill to rename Washington National Airport as Ronald Reagan National Airport, companion legislation to a bill approved earlier this week by the House Transportation aviation subcommittee in a vote largely along party lines. In the Senate, Commerce Committee Democrats agreed to permit the bill, backed by Chairman John McCain (R-Ariz.), to be recommended to the Senate without debate in markup.
Latest in explosives detection technology, from trace detection to bomb- sniffing dogs, will be demonstrated today at San Francisco Airport for Vice President Al Gore. Accompanied by FAA Administrator Jane Garvey, Gore is expected to make an announcement concerning airport security. "We are willing to be the guinea pigs for testing the latest" in explosives detection technology, says SFO spokesman Ron Wilson, and FAA "has taken us up on it."
Franklin Resources, which recently amassed a 9% stake in Mesa Air Group, says it wants the airline out of the aircraft distribution business. Mesa signed up a year ago as a distributor for the Sino Swearingen SJ30 business jet, committing for eight units valued at $28 million. Mesa board member Jack Braly is Sino Swearingen's CEO.
Stock clerks at America West will have a chance to vote on representation by the Teamsters. Ballots will be mailed to 32 America West employees Feb. 5 and counted March 5. The National Mediation Board ordered a new election on Dec. 12 after finding that airline management interrogated stock clerks about an earlier election in violation of federal law, the Teamsters said.
