American International Airways (AIA) asked DOT for authority to conduct a long-term wet-lease with Air Jamaica. The carriers have entered into a one-year agreement under which AIA will provide and operate one DC-8-63F in scheduled all-cargo operations between Jamaica and the U.S., serving Miami, Montego Bay and Kingston.
FAA said it wants to develop partnerships with interested commercial and government entities to develop the Local Area Augmentation System (LAAS). It has scheduled a briefing March 2 on its plans, with details to be published Feb. 16 on the Internet. The agency said it will "contribute partial financial resources" to the project but only for Stage 2 of LAAS development. "This contribution shall be made as milestone payments for satisfactory development of LAAS," it said. FAA said LAAS is being developed first for Category 1, followed by Categories 2 and 3.
American has petitioned DOT for a proceeding to review the renewal of antitrust immunity for the Northwest-KLM alliance. The carriers formally notified DOT that they want to continue the alliance, and American wants DOT to establish procedures for public comment, require Northwest and KLM to make their agreements available to interested parties, and make public any deal the department may have made with Northwest or KLM regarding procedures. American also wants the carriers to provide documentation on slot constraints at Amsterdam Schiphol Airport.
President Clinton has now delayed for 15 months naming an FAA Management Advisory Council, according to Phil Boyer, president, Aircraft Owners and Pilots Association.FAA Administrator Jane Garvey, "while bright and talented," has "little direct aviation knowledge" and "could use the aviation industry advice, experience and knowledge" the 15-member council would provide, he said.
Northwest yesterday reported the best fourth quarter in its history, $105 million in earnings that led the way to a record $597 million net profit for the year. The fourth quarter profits rose 305% and 1997 profits were up 11.3%. Annual revenues rose 3.5% to $10.2 billion while expenses increased 2.7% to $9.1 billion, and operating income grew 9.8% to $1.16 billion. The airline experienced falling unit costs, as the price of a gallon of jet fuel fell 17.7% to 62.7 cents in the fourth quarter and 3.5% for the year.
SkyWest yesterday announced a major service expansion and plans to establish a West Coast hub at San Francisco Airport, where it will fly as a United Express carrier, beginning June 1. It estimates it will need 17 new aircraft to support the expansion, which would bring its EMB-120 fleet to 67.
Japan Airlines said yesterday it will add routes and frequencies to the U.S., Europe and Asia during fiscal 1998, which begins April 1. JAL intends to add service from Tokyo to New York and Los Angeles and begin three-times-weekly Nagoya-Los Angeles service in April. It also plans weekly Hiroshima- Honolulu service, subject to government approval. Nagoya-London service will operate twice weekly. New service to China is under consideration, as are expanded frequencies to Beijing, Shanghai and Dalian.
Hawaiian Airlines reported a 2.8% decrease in systemwide traffic and a 3.0% gain in capacity, which led to a 4.1-percentage-point drop in load factor for December 1997 versus December 1996. Hawaiian recorded 328.1 million revenue passenger miles, 472.1 million available seat miles and a 69.5% load factor. Cargo ton miles were down 10.1% to 4.574 million. Year-to- date RPMs grew 8.3% to 4.162 billion and ASMs 6.6% to 5.439 billion, raising the load factor 1.2 points to 76.5%. Hawaiian carried 5,217,749 passengers, 1.1% more than in 1996.
DOT asked FAA for its safety and compliance review of WestJet Express, signaling the startup's application is moving forward. The airline plans to fly charter passenger service in medium-sized short-haul markets in the western U.S. using a single DC-9-21 configured for 89 seats. The department said it is particularly interested in learning whether FAA will approve a deviation from qualification requirements for WestJet's proposed chief pilot. The venture's chief executive is Mitchell Allee. (Docket OST-97-3270)
DOT is extending the deadline for reply comments on computer reservations system rules to Feb. 3 in response to a request by American. DOT agreed that the numerous comments and the complexity of the issues warranted the change. The due date had been Jan. 23, extended from Dec. 9. (Docket OST- 97-2881)
European Union Competition Commissioner Karel Van Miert yesterday dismissed as "unfounded" criticism leveled a day earlier by the Association of European Airlines. European Commission aviation policy does not reflect the reality of worldwide competition and threatens to hamstring European carriers challenged by it, AEA Chairman Jurgen Weber, chief executive of Lufthansa, told reporters Monday after AEA leaders met with Van Miert.
America West's fourth quarter net income jumped 66% to a record $20.1 million, buoyed by lower fuel prices and strong revenue. Record revenue of $1.9 billion, up 7.8%, included record fourth quarter revenue. Net earnings of $75 million, up ninefold, also were an annual record. Operating income was $161.8 million, up 136%. In the fourth quarter, revenue grew 7.5% to $472.9 million. "We finished the fourth quarter exceptionally strong," said Chief Financial Officer Doug Parker, pointing to improving yields and unit revenues.
The Independent Association of Continental Pilots (IACP), Continental's pilots union, will send strike authorization ballots to its membership next week as it gears up for a possible breakdown in negotiations. IACP plans to hold "virtual" strikes along with informational picketing during the Presidents' Day weekend in February. IACP wants Continental management to disclose information about a possible long-term code-share pact and stake purchase by Northwest.
U.S. Major Carriers Traffic December, 12 Months 1997 (000) December December % 1997 1996 Change Alaska Revenue Passenger Miles 908,000 801,000 13.4 Available Seat Miles 1,328,000 1,164,000 14.1 Load Factor (%) 68.4 68.8 America West
UPS's Independent Pilots Association said yesterday it expects its members to ratify the tentative agreement reached with management Monday. The deal provides substantial pay increases and improved hours and working conditions. IPA declined to give details of the agreement but said it will run until the end of 2003. The union will send the tentative contact to its members during the next two weeks. IPA President Bob Miller said he recommends ratification, and ballots will be counted in March.
Northwest said Monday it will suspend its three-time-weekly Detroit-Seoul, Korea, service in less than two weeks due to economic developments in the struggling Asian country. Service will stop Feb. 2. Usually, airlines alter routes with greater notice to accommodate the volume of passengers it has to notify by telephone or letter. Passengers on the nonstop will be taken to Seoul via Tokyo, where Northwest operates daily service from Narita.
US Airways notified DOT of a change in counsel. Attorneys from O'Melveny&Myers are now representing the company in all DOT dockets and other domestic and international regulatory issues, taking over an account that was held by Zuckert, Scoutt&Rasenberger.
Barring unforeseen developments, objections from non-U.S. airlines and foreign governments to reallocating FedEx slots at Narita will not derail the new U.S.-Japan agreement being negotiated this week, sources said yesterday. Formal talks resumed yesterday in Washington, but Assistant Secretary of State Alan Larson and DOT Assistant Secretary Charles Hunnicutt worked with their Japanese counterparts on Saturday, Sunday and Monday as well.
Continental reported a record net profit of $73 million in the fourth quarter 1997, up 55.3% from the same 1996 period and the 11th consecutive quarterly record. Traffic grew 14.3% last year, outpacing a systemwide capacity gain of 10%. Despite growing fastest among U.S. majors, Continental retained a 10% operating margin. For the third straight year, Continental also posted record pre-tax profits - $640 million, up 15% - and net income was $385 million, up 20.7%. The annual load factor of 70.9% also set a record.
