Continental Express tomorrow will begin nonstop service between Cleveland and Toronto, operating three roundtrips daily using 30-passenger Embraer Brasilia aircraft. The carrier intends to upgrade the service to the new 50-passenger EMB-145 Jet - what it calls the ExpressJet - in the spring of 1998. With the new flights, Continental or Express now serves Toronto from all three hubs - Newark, Houston and Cleveland.
Saab Aircraft's announcement last week that it may curtail production of the Series 340 and 2000 turboprops caught some suppliers by surprise, especially concerning the popular 340. Some observers see it as a move to halt the competitive ratcheting down of prices. "These are shrewd people - the same people who put Business Express into bankruptcy." The latest large 340 customer - Northwest Airlink Mesaba with 50 firm and 22 options - said it was not surprised by the move. It is pleased with the airplane's performance and likely will exercise its options soon.
Four of the high-flying publicly held regional airlines continued to post double-digit operating profit margins for the quarter ended Sept. 30. Delta Connection carriers Atlantic Southeast and Comair continued to lead the pack with margins of 23% and 24.1%, respectively. Both have been in double digits over the past nine quarters, pretty much tracking each other. ASA topped 27% in two of those quarters, while Comair posted a high of 25.2% in the June period.
Iran Asseman has signed a contract with Aero International (Regional) for two ATR 72-210A aircraft in a deal estimated to be worth $40 million, the carrier and AI(R) announced. AI(R) also said Air UK has converted one option for an ATR 72-200 to a firm order. AI(R) said it had sold 49 ATR aircraft since the beginning of the year.
Aviation Industry Stock Performance, October 24-29, 1997 Closed % Closed % Majors Symbol 10/29/97 Chg* 10/28/97 Chg* Alaska Air Group ALK 32.813 2.9 31.875 2.8 America West (Class B) AWA 14.938 -0.4 15.000 7.1 AMR AMR 117.000 1.7 115.000 4.1 Continental (Class B) CAI.B 45.438 0.7 45.125 2.4
Sen. John McCain (R-Ariz.), chairman of the Senate Commerce Committee, will discuss his airline competition bill, U.S.-Japan talks, the line item veto and other issues on Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and at 1:30 p.m.
Air Jamaica has launched a winter sale from nine U.S. cities to several Caribbean islands for travel through Feb. 5. Sample roundtrip fares include Atlanta-Barbados, $433; Baltimore-St. Lucia, $354, and New York- Barbados, $354.
Austrian Airlines launched this week a direct biweekly nonstop flight between New Delhi and Vienna, airline sources said yesterday. The flights, to be operated with an Airbus A310 aircraft, will take off from Delhi on Wednesdays and Sundays, and from Vienna on Tuesdays and Saturdays. The airline is offering 196 seats on each flight - 166 in economy and 30 in club class. The eight-hour flight to Vienna offers the shortest entry point into Europe from India, and enables passengers to reach eight European capitals within another hour, airline sources said.
Eurowings has announced a range of increased frequencies and an expansion to its jet fleet to boost its forthcoming winter schedules. The German carrier will double frequency on its Frankfurt Berlin (Tempelhof) service from four to eight flights a day. Also the Nuremberg-Berlin (Tempelhof) operation will be upgraded from ATR to BAe 146 aircraft, followed by the introduction of the jets on to the Dortmund-Munich route on Nov. 24.
Delta and Air Jamaica applied for a two-year exemption to code share on Air Jamaica flights linking Atlanta, New York and Miami with Montego Bay and Kingston, Jamaica, and Barbados, Antigua and St. Lucia, starting Jan. 15, 1998, and on Delta flights between Atlanta and Boston, Cincinnati, Hartford, Memphis and San Francisco, starting March 28, 1998. The U.S. bilaterals with Jamaica, Barbados, Antigua and St.
Officials of Europort Vatry, billed as Europe's first all-cargo airport, said Air Liquide will establish its European distribution center, road only, at the airport in mid-1998, and Garonor, a subsidiary of AGF, an international insurance company, will use the air component of the multimodal complex beginning in 1999.
Boeing is widely expected to kill the MD-80 program when it reveals Monday what it will do with McDonnell Douglas product lines. But yesterday a top Boeing official said the company sold two MD-80s to an Asian carrier - not identified, but not Chinese - this week.
Japan Airlines reported net profits of $170.5 million for the six months ending Sept. 30, more than seven times the $22.5 million earned in the 1996 period. Despite weak international traffic, domestic traffic and international cargo grew steadily, JAL said. The carrier cited new slot availability at Tokyo Haneda Airport, following the opening of a new runway there, and a new domestic frequent flyer program as factors that boosted domestic traffic. The passenger volume rise led to revenue of $5.4 billion, up 5.5%. Expenses rose 2% to $5.05 billion.
Airbus Industrie Chairman Jean Pierson is demanding more public money for aeronautical research in Europe. European governments should reaffirm the value of their aeronautics industry "and that reaffirmation should be backed up by a commitment to increase funding in research and technology to a level which brings it, if not on a par, close to that of the USA," Pierson said this week in Toulouse on the 25th anniversary of the first flight of the first Airbus aircraft, the A300-B1. The U.S. currently outspends Europe "by a factor of four," Pierson said.
Shorts of Belfast is another company that ceased regional aircraft production of its 36-seat Shorts 360 a number of years ago. Today the Industrial Development Board (IDB) of Northern Ireland is hawking the now- Bombardier subsidiary's investment of more than $170 million in the design and manufacture of the CRJ-700s center and forward fuselage and engine nacelles as well as the engine nacelles and wing components for the Dash 8- 400. Shorts has fared well under Bombardier, boasting partnerships with Boeing, Rolls-Royce, British Aerospace and others.
Boeing has confirmed that Aeroflot, Russian International Airlines has agreed to lease two Boeing 777s through International Lease Finance Corporation. A Boeing source said company officials are currently in Russia working with aviation authorities in an attempt to get the 777 certified in Russia.
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day Second Quarter 1997 DC-10-10 American United Total Number of Aircraft Operated 13 25 38 Total Fleet Operations Departures 24 59 83
AirTran Airlines, formerly ValuJet, which won an exemption last week for 11 slots at LaGuardia, to serve Atlanta, may seek more for service to Washington Dulles. The carrier still believes Dulles-LaGuardia "would be extremely attractive," Senior VP-Marketing Ponder Harrison told The DAILY. Atlantic Coast, established in the market, added a ninth daily flight in August.
Sabena's traffic soared 33.3% in September, to 1.13 billion revenue passenger kilometers, and is up 22.5% for the year to date. The carrier flew 5.1 million passengers in the first nine months, nearly matching its total for all of last year. Sabena's freight volume rose 27.8% in September, the third straight month of double-digit cargo growth.
DHL Airways has begun operation of an expansion facility at its Cincinnati hub to accommodate double-digit growth it has experienced. The facility includes a 10-position freight container unload system connected by high- speed conveyor belts to the primary sort area inside the main hub building.
An incident aboard an American Airlines aircraft has prompted the DOT inspector general and FAA to launch a joint review of security controls over accompanied commercial air courier shipments. In the incident, which occurred Oct. 1 at Miami, passengers were evacuated when noxious fumes "permeated" the cabin, according to DOT Secretary Rodney Slater. Although the case still is under investigation, it appears that a passenger acting as an "accompanying commercial courier" for a freight forwarder had checked bags that were leaking a corrosive pesticide, Slater said.
Production lines for critical Standard Terminal Automation Replacement System components have a short life, averaging five years, according to a National Air Traffic Controllers Association official. By contrast, production lines for commercial and industrial applications last 20 years, NATCA says. The STARS replacement expense not only will negate some of the advantages of off-the-shelf technology, but some of the STARS production lines already have been shut down even though the system is not yet complete, NATCA says.
Sabena, choosing to cooperate rather than compete head-on with Belgian startup airlines, is purchasing a minority stake in CityBird, which was formed in 1996. Sabena plans to take between 10% and 15% of CityBird and will operate joint flights with the low-cost airline to Montreal, Sao Paulo and New York (Newark), starting May 1, 1998. CityBird's MD-11 and Boeing 767 aircraft will carry Sabena colors. "The aircraft will be operated by Sabena pilots.
Pan American is leasing three 737-300 aircraft from Air Alaska for delivery between December and February. The acquisition will enlarge its fleet to seven 737-400s, three 737-300s, two 737-200s, seven 727-200s and an A300. Pan Am said it is in the market for more Stage 3 737s and 727-200s.
