Fares rose in more markets than they fell in the second quarter of 1997, according to DOT's fourth quarterly airfare report, issued yesterday. The report covers more than 1,000 city-pair markets in the lower 48 states, making up about 70% of total domestic traffic. Among other comparisons, the report covers largest decreases and increases in average one-way fares. DOT counted 31 markets where fares fell more than 30% and 50 where they increased more than 30%.
Environmental groups in Brussels and London say a recent proposal by the European Commission to lower nitrogen oxide (NOx) emission limits for aircraft is but a fraction of what is required. The groups want tougher legislation in a number of areas affecting Europe's air transport sector.
Former British Aerospace executive Graham Whitmarsh has joined Vancouver, Canada-based airline crew scheduling software specialist Mercury Scheduling Systems as VP-sales and marketing. Whitmarsh had been VP-sales and marketing for BAe's Asset Management-Turboprops division in Washington, D.C.
Delta is offering discount fares for travel to Europe, India, Brazil, Mexico and Korea originating through March 31 and ending by April 5. Restrictions apply. Sample roundtrip fares include Atlanta-Amsterdam $388, Cincinnati-London $370, and Philadelphia-Paris $358.
Continental described Delta's recent application for expanded Latin American authority as closer to a "publicity stunt" than a "serious request for authority," and United's response was to ask for amendments to its route system to serve key missing points.
Two Western Pacific executives sold blocks of airline stock recently at bankruptcy prices. Timothy Komberec, VP-operations at the Chapter 11 carrier, sold 25,000 shares at $.38 each, netting $9,500. Stacy Mihalsky, a controller and chief accounting officer, sold 2,500 shares at $.69 each, netting $1,725.
Legend Airlines has hired two senior executives, President and Chief Executive T. Allan McArtor said yesterday. Mickey Cohen, former senior VP- Aloha, was named the Dallas startup's senior VP-airline operations, and Bob Young, a former FAA air carrier certification specialist, will be director of airline safety and compliance.
DOT renewed for one year Air Tindi's exemption authority to conduct charter combination service between Canada and the U.S. The Canadian carrier's request for a two-year exemption, which it said was consistent with the U.S.-Canada open skies agreement, was dismissed by the department. An Air Tindi application for a foreign air carrier permit is pending at DOT. (Docket OST-96-1856)
UPS and its Independent Pilots Association, who resume contract negotiations next week, are equally optimistic that a resolution is near. Talks will begin Jan. 14 at the National Mediation Board in Washington with member Maggie Jacobsen. UPS President and Chief Operating Officer Tom Weidemeyer said the UPS offer should ensure that pilots are rewarded for their service while keeping UPS competitive.
Horizon Air saw a 15.6% increase in traffic and an 8.6% rise in capacity, which resulted in a 3.9 percentage point rise in load factor for December 1997 over December 1996. Horizon reported 86.0 million revenue passenger miles, 130.6 million available seat miles and a 65.8% load factor. Year-to-date RPMs rose 2.6% and capacity dropped 1.1%, causing a 2.2 point increase in load factor. Dec. 1997 Dec. 1996 12 Mths 1997 12 Mths 1996 RPMs 86,000,000 74,400,000 889,000,000 867,000,000
It was a slow learning process, but during 1997 the major airlines finally recognized the value of the regional jet in a big way. Delta's regional affiliates already possessed a huge Canadair Regional Jet (CRJ) fleet; Continental Express received its first four of 50, and potentially 200, Embraer RJ145s as the year began. But United, American and US Airways were locked in labor combat with their pilots about just who would fly regional jets in those liveries. Some regional affiliates ordered regional jets anyway.
Eight regional-airline stocks closed up an average of 14.8% in December, posting an average 52.8% advance on the year. The high flyer in December and for the year was United Express Atlantic Coast, up 35.8% to $31.75 on the month and 159.2% since Dec. 31, 1996. ACA launched its initial Canadair Regional Jet service in late November and seeks 42 exemption slots to feed United at Chicago O'Hare. Delta Connection SkyWest was the other big winner with a 22.2% gain to $29.63 for the month and 113.5% for the year.
United, expecting good things from Hong Kong, will more than double capacity on its seasonal nonstop service from Chicago. The airline will operate daily service June 10 through Oct. 24, versus only three weekly flights last year. This year's service will be to Chek Lap Kok Airport if the facility opens on schedule.
FAA this month said it will require all guide operations involving aircraft for hire to meet the requirements of Part 135 or 121 by the end of the year, including operations in Alaska that historically have operated under Part 91. FAA noted that it historically has not held Alaskan guide companies - those that offer hunting or fishing packages involving air transportation - to Part 135 or 121 standards. Such enforcement is "inconsistent with enforcement in the rest of the country," FAA said.
Fairchild Dornier is looking for a major boost for the 32-seat 328JET before the Singapore Air Show in February. According to Fairchild Aerospace President Jim Robinson, the company could tally new orders of 125 aircraft and options for another 125. Customers have not been identified, but most of the airplanes are believed to be for the North American market. Embraer, which launched the 37-seat RJ135 last fall, has no North American orders for the aircraft, but American Eagle and Continental Express are prospects with big RJ145 orders already on the books.
Lufthansa has slashed winter transatlantic fares "in response to competitive fare actions by other carriers serving the North American market." Roundtrip fares from New York, Newark or Boston to Germany, Amsterdam or Paris are as low as $238 through Feb. 14. From Atlanta and Washington, D.C., fares are $278. Roundtrips cost $298 from Chicago or Miami and $358 from Los Angeles or San Francisco.
Farmington, N.M.-based Mesa Air Group posted a 0.6-percentage-point drop in passenger load factor to 55.8% last month, as revenue passenger miles rose 6.1% to 118.2 million, but capacity climbed 7.3% to 212.1 million available seat miles. Enplanements edged up 0.3% to 526,781 from 525,291. Dec. 1997 Dec. 1996 12 Mths 1997 12 Mths 1996 RPMs 118,244,000 111,491,000 1,424,630,000 1,349,269,000 ASMs 212,050,000 197,639,000 2,528,462,000 2,397,385,000
DOT renewed for two years exemptions to conduct foreign combination service to France requested by American and US Airways. American may continue its Dallas/Fort Worth-Paris Orly service and US Airways its Philadelphia-Paris Charles de Gaulle operations. (Dockets OST-95-928, 96-1000)
Canadian Airlines and Canadian Regional halted all service at Ottawa and Montreal yesterday due to icing and bad weather. Some flights also will be affected today. Air Canada, whose major hub is at Toronto, canceled more than 10% of its flights yesterday and Wednesday and operated a "very limited schedule" at Ottawa and Montreal, a spokeswoman said.
The heads of Brussels-based Virgin Express and London Luton-based EasyJet held talks recently about potential cooperation but a merger is unlikely in the near term. "This is all extremely premature," Virgin Express President Jonathan Ornstein told The DAILY yesterday. "We talk to a lot of airlines about a lot of different things, but there's no merger." EasyJet Chairman Stelios Haji-Ioannou "happened to be in Brussels and we chatted about opportunities we might pursue together," Ornstein said.
Continental told DOT that it intends to use its authority to serve the Cleveland-London route and that US Airways and United should seek Laker Airways' authority if they want to expand operations. The opposing carriers want the chance to gain control of the routes for their own planned London services, and argue against renewal of Continental's authority.
Donna Rosato, transportation reporter for USA Today, will discuss electronic ticketing and airline passenger baggage issues on Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
Regional airline stocks have increased in value an average of 82.1% since Dec. 31, 1995. Mesaba Holdings topped the list with 100 shares acquired on that date increasing in value by 235.5% through Dec. 31, 1997. Atlantic Coast was second at 209.8%. It was followed by SkyWest, up 130%, Comair up 101.9% (following two three-for-two stock splits during the period), CCAIR up 45.6% and Atlantic Southeast up 32.3%. On the negative side were Mesa and Great Lakes, down 45.1% and 53.3%, respectively.
SAS said its new cargo building at Newark airport will open tomorrow to accommodate "dramatic growth in freight volume." The 292,000-square-foot facility will help handle the growth, which reached a record 1 billion tons of cargo in 1997.
