Underserved, overpriced markets are Reno Air's specialty, a formula that has made it one of the more successful startup carriers in recent airline history. Reno Air is the only startup since 1993 that has broken into the profit curve consistently, said Mike Boyd of The Boyd Group in Denver. In the third quarter of 1997, Reno posted $4 million in operating profit on $100 million in revenue, a little better than last year's third quarter results (DAILY, Dec. 22).
Middle East Regional Office of the International Civil Aviation Organization will hold its fifth Aircraft Accident Prevention/Investigation and Safety Seminar May 24-28 in Cairo. Experts from around the world are expected to participate. Papers will be in English with simultaneous interpretations in Arabic and English.
Swissair and Air One, a privately owned startup airline based in Italy, have agreed to deepen their year-old cooperation by allowing Swissair to take a "substantial" minority stake in the regional carrier. The two airlines said last week they have signed a memorandum of understanding (MOU) that focuses on their networks, sales and joint marketing efforts in the Italian market. The MOU also allows Swissair to buy into One Air. A primary motive for Swissair is to gain greater access to Italy's rich and densely crowded northern region.
Mexicana and Aeromexico have joined the Air Transport Association as associate members. ATA now has 27 members, five of which are associate non-domestic.
Creditors of Western Pacific Airlines will begin receiving payment in March under the carrier's Plan of Reorganization, filed recently in U.S. Bankruptcy Court for the District of Colorado in Denver. Westpac is about $50 million in debt, a company spokeswoman said, and unsecured creditors will receive more than $8 million, or 16 cents on every dollar owed. The payout comprises $2 million on confirmation of the plan by the court, a note for $3 million in cash payable over one year, and $3 million in travel vouchers. The note will carry a 10% interest rate.
World Airways said it has signed a wet-lease agreement with Irish carrier Aer Lingus, calling for the U.S. carrier to provide an MD-11 passenger aircraft to operate Ireland-U.S. flights from May through October. Aer Lingus has an option to renew the lease for the same period in 1999. World sales teams visited 50 carriers last summer seeking business opportunities, said Russell Ray, president.
City of San Jose selected HNTB Aviation and Parsons Brinkerhoff Construction Services as the engineering design and program management team for an expansion program at San Jose Airport. HNTB will design a 6,600- foot extension of Runway 30R to 11,000 feet. Design is to begin early this year as part of the 15-year, $850 million expansion program.
City Of New York filed a legal challenge against recent LaGuardia slot exemptions awarded to Frontier, AirTran Airways and the former ValuJet. Jeffrey Friedlander, acting corporation counsel for the City of New York, filed court papers Dec. 16 asking the U.S. Court of Appeals for the Second Circuit to review, enjoin and set aside DOT's Oct. 24 order. Friedlander also wants the judge to reject DOT's order finding no significant impact on the environment from the exemptions. The court has not set a timetable for the procedures.
Polar Air Cargo plans to begin scheduled 747 freighter services in April between the U.S. and South Africa via The Netherlands, Egypt, Kenya and Zimbabwe. Ned Wallace, chief executive, said the air freight market to these points is "relatively undeveloped. However, Polar's ability to combine these traffic flows with others at our European transload facility at Schiphol Airport in Amsterdam will make the African operation economically feasible."
British Aerospace Asset Management-Jets said Air Wisconsin has leased three 146-200s that had been operated by Atlantic Southeast Airlines. Air Wisconsin will operate the aircraft under the United Express banner primarily for growth of its Denver operations. The three airplanes are expected to be delivered early this year and will bring the carrier's 146 fleet to 18.
FAA said Amerijet International voluntarily ceased operating following an inspection that "revealed serious deficiencies" in cargo-handling operations. The agency said the carrier agreed to stop flying "rather than face an immediate suspension of its operating certificate." FAA and Amerijet officials are scheduled to meet early this week to discuss resuming operations.
A U.S. district court judge has vacated his earlier decision to dismiss Laker Airways' charges that British Airways violated federal antitrust and Florida statutory law. Key to the charges is Laker's contention that BA influences the slot-allocation process at London Gatwick and has prevented Laker from acquiring viable slots. Wilkie Ferguson, U.S. District Judge in the Southern District of Florida, vacated his Nov. 26 dismissal last month, directing defendant BA to file comments by Jan. 12 on the applicability of the law the judge cited in the dismissal.
Fine Air Services has purchased International Lease Finance Corp.'s last L- 1011. ILFC converted the aircraft to freighter configuration at Marshall Aerospace in the U.K.
A Spanish transport ministry official says his government will not allow British Airways and American to buy a controlling stake in Iberia. Pedro Ferreras, who also is chairman of SEPI, the state-owned holding company that controls Iberia, said last month that Madrid will not let the two foreign airlines acquire more than a 5% stake each in the Spanish flag carrier. The three airlines have been talking about the privatization of Iberia since the fall.
Handicapped passenger Franz Soni filed a complaint against Continental Airlines charging violations of the Air Carrier Access Act of 1986, aimed at ensuring that mobility-impaired travelers can use the air transportation system. Soni told DOT the carrier violated the act on four flights from August through early November, 1997. In one case, Soni, who uses a wheelchair, was denied boarding a flight to Newark even though he arrived at Milan Airport two hours and forty minutes before departure.
United, which recently announced a second daily Mexico City-Chicago O'Hare flight starting April 5, will relaunch San Francisco-Hartford on the same date, boosting the service to year-round flights.
US Airways has named John Hedblom, former director of labor arbitration and administration, VP-labor relations. He replaces Dwain Andrews, who is retiring after a 45-year career in airline labor relations.
The European Commission's competition authority says it has no objection to a German-Irish consortium taking a major equity and managerial stake in Dusseldorf Airport. The facility is Germany's third-busiest airport and the 14th largest in Europe. They ruled last month that the consortium of Aer Rianta, the Irish airport operator, and Hochtief Projektentwicklung GmbH, the German construction group, can proceed with plans to buy 50% of the airport's shares, held by the German state of North Rhine Westphalia.
Atlas Air said it has reached an agreement for early termination of leases on two 747-200s with Philippine Airlines and it will get the aircraft back early this year. They then will undergo conversion to freighter configuration at Boeing's Wichita modification facility and enter revenue service for Atlas in the second quarter. "The delivery of these two aircraft into our fleet in early 1998 will go a long way toward filling any aircraft gap created by the 747-400 delivery delays expected from Boeing," said Atlas President Michael Chowdry.
