British Airways yesterday instituted an employee stock option program it hopes will lead every employee to take a stake in the airline. BA sent letters to 60,000 workers in 81 countries offering to pay 20% of the cost if they buy shares. Employees already are BA's third-largest shareholder, but 87% of them hold only 4% of outstanding shares. "We would like to see an increase in employee ownership and participation," said spokesman John Lampl.
Pratt&Whitney and Seven Q Seven said yesterday they have signed an agreement to certify the JT8D-200 engine on the Boeing 707 as part of a re- engining program that could involve more than 500 707-320 and KC-135 aircraft worldwide. The engine currently is used on the MD-80 and the new application will use the MD-80 nacelle modified to reflect the 707's under- wing position. Pylon design is under way. The JT8D-200 also is used on some re-engined 727s. The 707 is powered by JT3D engines.
Southwest announced a 0.8% growth in revenue passenger miles for December on 9.2% more capacity, which forced the load factor down 5.2 percentage points to 62.6%. For the year, traffic grew 4.7% on 9.2% more capacity, resulting in a 63.7% load factor, down 2.8 points. The average length of haul on Southwest was 563 miles, up 3.1% from 1996, when the average was 546. Chairman Herb Kelleher said December loads were on par with historical averages, and revenue yield per passenger mile rose significantly from year-ago levels.
Air Madagascar has appointed Fortis Aviation to offer for sale a 747-200 Combi aircraft, delivered new to the carrier in 1979. It was operated until recently in all-passenger configuration under a code share with Air France, which maintained it while Iberia overhauled the JT9D-70A engines.
Sabena and Delta plan to strengthen their marketing cooperation by offering more joint capacity to travelers in the spring. Drawing more transit passengers to the two airlines' hubs of Brussels and Atlanta is a principal aim of the strategy. Starting May 15, Sabena will add a second daily flight from Brussels to Atlanta every day except Monday and Saturday. It also will expand its current five-times-weekly service to Cincinnati to a daily frequency.
Air Lanka's December traffic was down 6.4%, but full-year traffic rose 10.9%. The airline carried 1.24 million passengers, up 4.8%. Cargo volume rose 9.6% to 174 million freight ton kilometers.
A federal court judge in Denver will rule today on an appeal by Boullioun Aircraft Holdings in Seattle to repossess three of its airplanes from Western Pacific or obtain better protection for its leases. Boullioun made the request last week after a federal bankruptcy judge approved a new financing plan for Westpac giving control to its financier, Smith Management. A Westpac spokeswoman said Boullioun probably will not repossess the aircraft if U.S. District Court Judge John Kane Jr. finds in its favor but will try to work out an agreement with Smith.
DOT granted initial authority for one year to Continental, Continental Express and EVA Airways to conduct code-share operations linking Taiwan, the U.S. and Panama. EVA Airways will display Continental's designator code on flights connecting in Los Angeles, San Francisco, Seattle, Newark and Honolulu to Taipei. EVA operates Los Angeles-Panama flights. Continental and Continental Express will display EVA Airways' designator code on flights throughout the U.S.
Regional jet operator Comair asked DOT to step back from an "ad hoc" process of granting slot exemptions and consider whether the allocations risk damaging free-market solutions to system congestion, such as the development of Cincinnati's airport as an alternative Midwest hub. Cincinnati is Comair's home base and the carrier, a Delta Connection operator, has the largest regional jet fleet in the world.
Environmental groups alleged violations of federal clean-water and right- to-know laws in two separate filings of intent to sue Baltimore/Washington International and Chicago O'Hare airports.
Morten Beyer&Agnew added Bryson Monteleone as manager-operations, taking over some of the responsibilities of Executive VP Clinton McCutcheon, who has retired.
Delta became the first airline in the world to carry more than 100 million passengers in a single year, finishing 1997 with 103,295,376. The airline said December traffic was up 1.7% on 0.9% more capacity, resulting in a 69.3% load factor, up 0.5 percentage points. Annual traffic grew 6.1% on 3.8% more capacity, pushing load factor to 71.8% from 70.3%. Dec 97 Dec 96 12 Mths 97 12 Mths 96 RPMs 8,084,869,000 7,950,784,000 99,691,107,000 93,928,376,000
TWA will unveil its new first-class domestic service, Trans World First, today at The Wings Club in New York. The carrier has redesigned its first- class cabins and introduced a gourmet menu aimed at drawing a larger share of the business market.
Christian Blanc, former Air France chairman, was named a member of the board of Middle East Airlines, the Lebanese carrier said Friday in Beirut. Blanc rescued Air France from bankruptcy but resigned his post last September after France's newly elected left-wing government refused to privatize the flag carrier.
Western Pacific's board has ousted founder Ed Beauvais from his $350,000-a- year job as board chairman because it could no longer justify the expense. Beauvais, who will remain a board member, differed with President Bob Peiser over scheduling and frequency and disagreed with Peiser's decision to move Westpac from Colorado Springs to Denver.
FAA expects to seek $561 million for research, engineering and development and $2.944 billion for facilities and equipment in 2000, according to a draft copy of the National Airspace System (NAS) V.3 Architecture acquired by DAILY affiliate ATC Market Report. For fiscal 1998, the current level of R,E&D funding is $199,183,000 and $1,875,477,000 for F&E.
US Airways and its Air Line Pilots Association unit staked out their positions last week on pay for pilots who will fly the carrier's new widebody aircraft. Pilots told management they want pay parity with pilots who fly widebody aircraft at the top four carriers, plus 1% (DAILY, Jan. 7). US Airways ALPA spokesman Roy Freundlich said the union and management "exchanged openers" this week, but he would not describe management's offer or say how far apart the two sides were. Freundlich said he believes the negotiations will continue until February.
U.S. Major Carriers Productivity, In Revenue and Expenses Per Employee Third Quarter 1997, In Dollars Total Total Operating Operating Revenues Expenses Total (000) (000) Employees Alaska 422,995 354,142 7,647 America West 465,194 428,210 10,691
United will focus this year on profits, on-time performance and customer satisfaction, the same goals it had last year. It wants 70% of flights to depart within five minutes of schedule, versus 66% in 1997. United saved 1.24 million minutes of delays in the January-November period; it believes each delay minute per flight costs it $41.
Zuckert, Scoutt&Rasenberger named Paul Schoellhamer partner, director of government affairs and managing director of consulting affiliate Farragut International.
Pratt&Whitney said it has received FAA approval to overhaul all makes of engines at its new Engineering Overhaul and Repair Center. Ron Henson, VP- global engine overhaul, said the center has completed a year-long process to become a licensed overhaul and repair station.
Number of fatal accidents and passenger fatalities was down in 1997 from 1996, but hull and liability losses, $1.4 billion, still were worse than most previous years, according to Airclaims. Only 1996, 1994, 1989 and 1985 produced worse results. The 1,056 passenger fatalities were 80 fewer than the average during the 1980s, so 1997 "might therefore be described as 'good in parts.'" Data apply to worldwide operations of Western aircraft.
