Northwest Airlink Mesaba Holdings led January traffic for 14 regionals, higher by 14.84%, while the capacity trailed at an increase of 8.91%. Mesaba's traffic was up 117.62% to 68.8 million revenue passenger miles (RPMs). The carrier continues to add Saab 340s and Avro RJ85s, the latter configured for 69 seats to comply with Northwest's scope clause. Mesaba's capacity increased 100.56% to 114.5 million available seat miles. United Express Atlantic Coast's traffic rose 60.29%; its capacity was up 44.93% as it continues to add 50-seat Canadair Regional Jets.
CCAIR which provides service as US Airways Express in the southeastern U.S., reported a 10.5% decline in traffic in January - but capacity dropped much faster, 25.5%, driving the load factor up 8.4 percentage points to 50.5%. The capacity reduction resulted from the elimination of seven 36- seat Shorts 360 aircraft from the CCAIR fleet. January 1998 January 1997 Rev. Passenger Miles 9,148,616 10,221,205 Available Seat Miles 18,109,341 24,298,594
Rep. Thomas Manton (D-N.Y.) added to slot-control bills this week by introducing H.R. 3179, a proposal co-sponsored by five other New York Democrats. The bill would require preparation of an environmental impact statement evaluating slot exemptions for new service from New York LaGuardia Airport.
Summary of U.S. Major Carriers International Traffic July 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 44 (4.76) 1,064 46,555 (3.46)
Orlando-based AirTran Holdings, parent company of AirTran Airlines and AirTran Airways, recorded a 65% jump in traffic and a 51.2% rise in capacity for January 1998 from January 1997, which caused a 4.4-percentage- point climb in load factor. AirTran reported 210.3 million revenue passenger miles and 394.3 million available seat miles, resulting in a load factor of 53.3% Passenger enplanements were up 52.5% at 325,628.
The Korean government has given the go-ahead to Asiana and Korean Air to raise ticket prices 15.2% on average starting this weekend. Korea's Ministry of Construction and Transportation said the two carriers will charge 5% more on routes to Europe, 10% on Korea-Japan routes and 25% on service from Seoul to cities in the neighboring Oceania region. Korea- North America routes could see 30% price increases, although with a 46.5% drop in Korea's currency versus the U.S. dollar last year, fare increases will have more effect in Korea than internationally.
A Continental Express EMB-145 regional jet crashed yesterday on takeoff during a training flight from Beaumont, Tex. Continental reported two "minor injuries" among the four pilots on board. In the past, NTSB has cited a lack of simulators for regional airliners when they enter service.
European Union Competition Commissioner Karel Van Miert has an "idealist" view of competition in the airline sector, SAS European Affairs Director Hans Ollongren said Tuesday in Brussels. Last month, Van Miert said European Commission officials would look again into the alliance between SAS and Lufthansa because competitors have not entered the market on routes between Scandinavia and Germany, even though the commission ordered both airlines in January 1996 to give up airport slots if necessary to accommodate competitors.
Airbus Industrie selected The MacNeal-Schwendler Corp., Los Angeles, as a strategic partner to define and implement competitive tools and processes, MSC announced. Objectives include improving the level of communication and responsiveness within new Airbus projects, such as the A340-500, A340-600 and A3XX programs.
Continental and Continental Express pilots are conducting "virtual strikes" today at Newark, Cleveland and Houston airports to protest the airline's failure to offer acceptable job protection provisions in their current contract negotiations.
Air France and Aeromexico renewed their code-share agreement on service between France and Mexico and said they will expand cooperation. Trying to make Paris-Mexico City the preferred Europe-Mexico link, the carriers operate 10 weekly flights on the route and will increase to 12 this year and 14 eventually. They will explore marketing ties in addition to current frequent flyer links and joint purchasing, training, cargo, and inflight and ground services.
Wexford Management LLC ordered 20 firm and 20 option Embraer RJ135 jet aircraft, according to Allison Engine Co., which supplies the AE3007A3 powerplants. The order is the largest to date for the 37-passenger aircraft, which was launched last fall and is scheduled to enter service during the first half of next year. Launch customer Flandre Air of France last October ordered eight with options for 10 more. The RJ135 is the second Embraer aircraft to be selected by Wexford, following 20 firm orders and 20 options for RJ145s (DAILY, Oct. 10, 1997).
US Airways' desire to serve Japan initially via code sharing with competitors American and United is expected to have little near-term impact and is viewed by industry officials as US Airways' desire to show interest in the Asian market for the first time. US Airways this week applied to serve Tokyo and Osaka via code shares with United and American, as well as provide eventually its own nonstop Japan service from Philadelphia. The code shares are envisioned on two routes each for United and American.
Boeing Commercial President Ron Woodard predicts that neither his company nor Airbus will try to develop an advanced-technology supersonic transport for at least another generation. "The economics just don't favor SST aircraft," he said. "If there was a 350-seat SST, only business travelers would use it. And the yields from all the economy-class travelers and backpackers left to fill the remaining subsonic fleet would not be enough to sustain the industry."
Reno Air reported a 4.4% rise in traffic and a 0.6% increase in capacity for January 1998 compared with January 1997, which caused the load factor to grow 2.2 percentage points. Its revenue passenger miles totaled 225.3 million and available seat miles 378.6 million, producing a load factor of 59.5%. Passenger boardings rose 9.4% to 413,613.
United's answer to DOT's tentative approval of the American-TACA code share points to the Justice Department's dim view of the decision and suggests barring Miami code sharing as a potential remedy. United, like Continental and Delta, cited DOJ statements that conditions imposed by DOT cannot eliminate the threats to competition from the combination. But United said that if the agreement goes forward, DOT should ban American-TACA code sharing through Miami. United sees a similar line of reasoning in theDOJ filing.
DOT made final its tentative decision to add conditions to exemptions, U.S. carrier certificates and foreign carrier permits prohibiting cargo services that include a stop in Sudan and cargo transportation to the U.S. by aircraft with Sudanese registry (DAILY, Dec. 9, 1997). The department said it will not entertain petitions for reconsideration. The action results from an executive order imposing sanctions on Sudan.
Pan Am, which merged with Carnival last September, has signed a memorandum of understanding to sell the Pan Am operating certificate to Palm Beach Aerospace for an undisclosed sum. After the merger, Pan Am assumed the operating parameters of Carnival's certificate, which are more generous and flexible due to Carnival's long operating history. The sale includes "certain personnel, manuals and systems," said Pan Am Chief Executive David Banmiller in a message to employees.
Virgin Atlantic drew tomorrow - Friday the 13th - as the date for U.S. District Court oral hearings in New York in its antitrust battle with British Airways and, superstition notwithstanding, Chairman Richard Branson plans a personal appearance.Virgin claims damages of $1 billion in the four-year-old case, alleging BA used its power at London Heathrow to induce travel agents to enter deals that shut out Virgin.
Reducing accidents caused by controlled flight into terrain, maintenance, and human factors issues will head the agenda of the Commercial Aviation Safety Strategy Team, an industry group formed to focus safety efforts "where they will do the most good." Presenting the group's 1998 agenda yesterday in Washington, Mike Rioux, senior VP-operations and safety for the Air Transport Association, said the team believes its approach is the best way to meet Gore Commission goals of reducing transport aircraft accidents by 80% over the next 10 to 15 years.
Northwest posted a 3.4% increase in January traffic on 5.2% more capacity, resulting in a load factor of 66.2%, down 1.2 percentage points from the same month last year. Domestic traffic rose 2.3% on 2.5% more capacity, keeping the load factor constant at 62.2%. International traffic increased 5% on 9.6% more capacity, dropping the load factor 3.1 points to 72.3%. January 1998 January 1997 Rev. Passenger Miles 5,403,270,000 5,223,813,000
Northwest and KLM rejected American's arguments that renewal of their antitrust-immunized alliance be subjected to a proceeding, saying comparisons between their agreement and the proposed American-British Airways alliance are invalid. Describing the comparison as "remarkable," Northwest-KLM said American was trying to deflect attention from American- BA. "The Department will search [the American petition] in vain for even a single sentence that suggests any concern about continuation of the Northwest-KLM alliance," they said.
Summary of U.S. Major Carriers Domestic Traffic July 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 1,154 2.70 854 985,847 3.98 America West 1,661 7.74 895 1,486,238 12.49
Atlas Air yesterday reported net income of $9.1 million for the fourth quarter, down from $13.4 million. Operating income was $27.8 million and revenues were $120.9 million, compared with operating income of $29.9 million and revenues of $104.7 million in the same quarter a year earlier. For the year, net income was $23.4 million, operating income $83.1 million and revenue $401 million. In 1996, the company reported net income of $37.8 million, operating income of $88.1 million and revenues of $315.7 million.
Fairchild Corp. posted net earnings of $20.4 million for the quarter ended Dec. 28, compared with a loss of $3 million in the same quarter in 1996. Sales rose to $236.7 million from $159.9 million. For the first six months of its fiscal year, Fairchild reported net earnings of $20.9 million, up from a loss of $8 million the year before. Sales totaled $450.4 million, up from $306 million. Chairman Jeff Steiner said demand for the company's aircraft fasteners and aerospace products is increasing.
