National Transportation Safety Board, citing instances of "inadequate clearance" between electrical wiring and adjacent components on Boeing 767 and Cessna 650 aircraft, called on FAA to review and, if necessary, require revisions to correct the problem. In the case involving the Cessna, a fire resulted from arcing between electrical wiring and the hydraulic pump suction line, which caused loss of the navigation display and radio communication.
Alaska Air Group subsidiary Horizon Air earned $3.6 million before income taxes in the quarter ended Dec. 31, a $10.4 million turnabout from a $6.8 million loss in the comparable 1996 quarter (DAILY, Jan. 29). For the 12 months ended Dec. 31, the regional posted $6.3 million income before tax, compared with just $300,000 in the comparable 1996 period.
British Airways is introducing electronic ticketing on all routes between the U.K. and Germany, the first time the carrier has offered the service outside its borders. Ticketless travel, which reduces check-in time to less than one minute, will be expanded later to other European destinations, as well as to North America service. Self-service machines have been installed in seven German airports, and BA allows check-in via credit card or Executive Club card. Flights within Germany on Deutsche BA also will feature electronic ticketing.
Elliot Seiden, Northwest VP-law and government affairs, will discuss Northwest's plan to acquire a share of Continental and related international issues on this week's Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
GATX reported a net loss of $140 million for the fourth quarter and $50.9 million for the year, reflecting fourth quarter charges of $163 million after taxes in 1997. This compares to net income of $18.9 million for the quarter and $102.7 million for the year in 1996. Before the charge, net income would have been $22.5 million for the quarter and $11.9 million for the year. Ronald Zech, chairman, said on an operational basis, the company achieved record results, and "we have set the stage for future growth in profitability."
Boeing 737 Systemwide Aircraft Utilization Per Day Third Quarter 1997 B737-200 America West Continental Delta Southwest Number of Aircraft Operated 41 65 13 181 Total Fleet Operations Departures 261 269 70 1,562 Block Hours 512 702 125 2,056
Vanguard Airlines' $25 one-way sale fare to any Vanguard nonstop destination will end tomorrow. If an itinerary calls for more than one nonstop flight, the price is $25 for each nonstop segment. The fare is available for travel on Tuesday, Wednesday and Saturday only, but customers can combine the $25 fare with a regular one-way fare any day of the week. Reservations must be made at least seven days in advance, and travel must be completed by March 11.
Pilots at Midwest Express subsidiary Skyway Airlines have ratified by 99% a four-year contract, their first. The "overwhelming approval...affirms that the membership's objectives were clearly validated," Skyway Air Line Pilots Association unit Master Executive Council Chairman John Malotky said.
First Security Bank, as trustee for a subsidiary of Metlife Capital Corp., has purchased four Boeing and one Airbus aircraft from International Lease Finance Corp. Metlife helped finance the purchases through BTM Capital Corp. ILFC will manage the aircraft, a 737-400 on lease to Alaska, a 767- 300ER on lease to Asiana, a 757-200ER on lease to Mexicana, a 737-300 on lease to Varig and an A319-100 on lease to Swissair. ILFC said its portfolio of 380 jet transports is valued at over $16 billion.
World Airways said yesterday that fourth quarter earnings will be less than analysts expect due to the absence of one aircraft from operation and financial instability in the Pacific Rim. Earnings, which will be announced Feb. 9, will show a loss of 25 to 35 cents per share. World said the results were affected by the temporary loss of one aircraft that suffered damage during landing in Uruguay. The two-month absence cost the airline $4 million in revenue.
A show of hands at Tuesday's heavily attended Aero Club of Washington luncheon overwhelmingly opposed changing the name of Washington National Airport to honor former President Ronald Reagan. Later that day, the House Transportation Committee approved a bill, H.R. 2625, that would make the change. Yesterday, recalling Reagan's dismissal of striking air traffic controllers in 1981, the National Air Traffic Controllers Association weighed in against the change - Reagan's only aviation-related action "was what he did TO us, not FOR us."
United yesterday reported a record $1.55 billion in profits for 1997, as the airline showed strong unit revenue growth and benefited from lower fuel prices and a healthy domestic market. It was the airline's fifth consecutive profitable year. The company posted record operating revenues of $17.6 billion, $1 billion more than in 1996. Operating earnings rose to $2.25 billion from $1.8 billion. The airline's revenue growth was ahead of the industry average, which is "a good signal for us for the future," said United President John Edwardson.
Europe will have to learn a few new airline names tomorrow. British Airways is expected to christen its Operation Blue Sky low-fare project and Air UK will change its name. Lufthansa, too, may detail its new low-fare operation.
Amadeus Global Travel Distributions is charging American with discriminatory practice because the U.S. carrier does not participate in the Amadeus computer reservations system to the same degree as in its own Sabre system. Amadeus claims American does not provide Amadeus with the same level of information about schedules, fares and availability that it gives Sabre. Amadeus filed a complaint yesterday with the European Commission charging infringement of the European Union Code of Conduct for CRSs.
Delta Connection carrier Atlantic Southeast and its Air Line Pilots Association unit have reached a tentative contract agreement after more than 28 months of difficult negotiations, the union said yesterday. The pact, described by the pilots as a new industry-standard contract, will be reviewed late next week by the union leadership after negotiators complete final language. It will be sent to members for ratification if the leadership approves. The pilot negotiating committee will schedule road shows to explain the deal to pilots in Atlanta and Dallas.
Varig's traffic for 1997 grew 6.6% to 25.3 billion revenue passenger kilometers. December traffic rose 1.6%, with load factors of 63.8% internationally and 61.3% domestically. Varig carried 9.94 million passengers in 1997.
The current conversion of Airbus Industrie from a grouping of companies into a centrally managed, corporation-like business will open up new subcontracting and supplier opportunities for U.S. aerospace companies, according to Traverse Ltd., a Glasgow consulting firm. Airbus manufacturing, currently managed individually by partners Aerospatiale, Daimler-Benz Aerospace, British Aerospace and CASA, already has considerable U.S. content.
Delta is offering discount fares available only through its SkyLinks Web site for travel through May 31 between its Cincinnati hub and most of the U.S. points it serves when customers reserve and purchase travel using SkyLinks. Delta SkyMiles members may earn up to 1,000 bonus miles, 250 each way for both Internet reservations and e-tickets, valid for bookings and travel through June 30. Sample roundtrip Internet sale fares are $254 for Boston, $323 San Diego and $175 Washington, compared with $315, $378 and $216. Blackout dates and restrictions apply.
Reno Air is introducing premium Gordon Biersch Marzen German-style lager beer on its flights in first and economy class. It also is offering Java Coast Gourmet coffee on all flights throughout 15 U.S. states and Canada.
Netscape Communications Corp. and The Sabre Group have launched Netcenter Travel by Travelocity, a co-branded service accessible through the Netscape Netcenter at www.home.netscape.com. Travelocity, at www.travelocity.com, provides schedules for more than 700 airlines and reservations capability for more than 420 carriers.
Reinforcing European Commission themes of the past year at an aviation conference, EC Transport Commissioner Neil Kinnock highlighted the market discipline increasingly imposed on European carriers, but he warned of barriers to competition on the EC's agenda, including growing airport slot constraints.
Slot issues continued to be the key concern in U.S.-Japan talks, although sources said the key activity consists of discussion between FedEx and other carriers over lease terms for diverted Narita slots.
The nation's airlines came out yesterday against using Loran as a backup to the Global Positioning System and endorsed a dedicated National Airspace System program office in which FAA and industry "could work together full- time" on a modernization plan. Air Transport Association President Carol Hallett, addressing the Air Traffic Control Association, said Loran "does not make sense" as a GPS backup because the airlines already have VOR-DME, "which is totally reliable." Loran is favored by FAA and the general aviation industry (DAILY, Jan. 28).
Senate Commerce Committee Chairman John McCain (R-Ariz.) said he does not object to the planned Continental-Northwest alliance, but any industry consolidation "highlights the need for Congress and the administration to ensure that the aviation industry remains competitive." McCain's proposed Aviation Competition Enhancement Act includes provisions for slot auctions, exemptions to the perimeter rule and timely government response to complaints of predatory behavior.
