Computer-savvy travelers can qualify for a future $99 companion ticket on Northwest when they purchase a regular roundtrip electronic ticket worth at least $200 by Oct. 30 at Travelocity's web site, http://www. travelocity.com. Travel must be completed by Feb. 28. A Saturday night stay and a 14-day advance purchase are required. The companion ticket may be redeemed after the original travel is completed and must be purchased at the same time as an additional Northwest roundtrip adult ticket through the Travelocity site.
Delta yesterday reported its best September quarter results ever, with net income of $254 million, up 6.7%, and an operating margin of 12.1%. Operating profits dropped slightly to $431 million as revenue grew 3.5% to $3.6 billion and expenses increased 4% to $3.12 billion. New Chief Executive Leo Mullin attributed the strong quarter to "continued strength in the economy, strong business demand, improvements in transatlantic performance and continued cost containment." Revenue per available seat mile was flat at 9.95 cents while cost per ASM rose 1.5% to 8.75 cents.
Mesa Airlines' new service from Fort Worth Meacham Field to Houston and San Antonio with the Bombardier Regional Jet has increased the carrier's load factors and is now leading to new markets within Texas and elsewhere. The Farmington, N.M.-based regional began the service in May with 11 daily frequencies between Meacham and Houston Hobby Airport, initially carrying very light passenger loads. In September, it reduced the Houston frequency to six, but added six flights to San Antonio, and since then, the load factors have increased substantially.
FAA issued an emergency airworthiness directive in the Oct. 21 Federal Register on Fokker F28-100 aircraft, prohibiting "use of reverse engine thrust power settings between idle and emergency maximum." FAA, which first notified operators Sept. 12, said the action was prompted by a report of an engine fan blade failure in preparation for takeoff, followed by an engine fire. "The actions specified by this AD are intended to prevent uncontained engine fan blade failure due to high-cycle fatigue cracking, which could result in loss of thrust," the agency said.
Average load factor for 15 regional airlines was 53.96% in September, up nearly four percentage points from the same month a year ago. The result was well below August's 59.01% for the same airlines, reflecting the seasonal drop-off in traffic. United Express Air Wisconsin led the group in September, at 63.96%, up more than five points year-over-year. Only two others came in at more than 60% - Horizon Air at 61.79%, up nearly five points, and Delta Connection Comair at 60.05%, an increase of 5.6 points. In August, seven of the 15 carriers topped the 60% mark.
Barring an eleventh-hour miracle, negotiators will not reach agreement by today on a new U.S.-Japan bilateral, sources said. Progress on code- sharing is real, they said, but the two sides have stalled on issues including Tokyo slots and "safety-net" provisions (DAILY, Oct. 22). Negotiators are considering whether to extend the Washington talks or reconvene in Tokyo.
United, Northwest and other airline stocks were hit by the Hong Kong market crisis yesterday. Northwest lost 6% of its value, falling $2.94 to $46.125, and United's stock dropped $4.56 to $95 per share, losing 4.6%.
National Air Transportation Association said it applauds legislative language in the DOT appropriations bill pushing FAA promptly to supply pilot records requested by employers. Under the Pilot Records Improvement Act (PRIA), employers are required to obtain records on all new pilots, including records maintained by FAA. But "delays encountered in obtaining FAA records are a major impediment to the ability of the industry to comply with the law," NATA said.
Mahalo Air, the Hawaiian low-fare interisland carrier that entered Chapter 11 in July, could fly again if an investor steps forward with $1.5 million. The airline has until Nov. 10 to sell its operating certificate or be liquidated by order of a bankruptcy court judge. Principal investor Robert Iwamoto talked with a potential investor this week and has promised to match an investor's $1.5 million with his own money to keep the airline going. Iwamoto told a Hawaiian newspaper this week he believes Hawaii needs a local carrier that can provide affordable fares.
Saab Aircraft AB of Sweden is considering whether to cease production of the Saab 340 and Saab 2000 regional turboprops and does not believe development of a new regional aircraft is an option for it, the company said yesterday. Fokker, Europe's only other unaligned producer of regional transports, has ceased production. "The manufacturing of regional-jet aircraft has extensive over-capacity," Saab said. "In the competition for the 50-seat segment, regional-jet aircraft have weakened the position of [the] Saab 2000.
Citing software anomalies, FAA issued an emergency airworthiness directive requiring increased monitoring of the flight path of the Airbus A320 family of aircraft.
Comair stock has rocketed nearly $10 per share in just eight trading days ended Wednesday, when it closed up $9.88 since Oct. 10 to $36.94 after reaching $37.38 earlier in the session. Nearly 6.6 million shares changed hands during the eight-day period. Jim Parker of Robinson Humphrey in Atlanta attributed the runup to second quarter earnings of 55 cents, reported last week, which were up 31% from a year ago and which beat street estimates by a nickel. He said earnings should be up another 34% this quarter.
Fairchild Dornier said its 328Jet ha entered ground vibration testing in Germany to ensure that flutter will not occur in flight. In other program progress, the jet's Pratt&Whitney Canada PW 306B engines, scheduled for installation next month, have successfully completed first test runs and achieved performance numbers, the company said. The 328Jet is fitted with replica PW 306B engines that accurately represent the mass of the production engines. Several aircraft loading conditions are being tested, including full and empty tanks and full and empty cabin.
Air Canada is being aggressive in its marketing of new transborder flights with the Canadair Regional Jet -"Air Canada service aboard the Canadair jet offers seating in a 2x2 configuration with no middle seat...." The carrier on Monday replaced seven of nine Air Ontario Dash 8 weekday roundtrips to Cleveland - at 193 miles, requiring relatively high yields. It also will begin nonstop roundtrips from Toronto to Pittsburgh , Cincinnati and Milwaukee. The new routes will bring to 41 the total number of U.S. destinations served by Air Canada.
United Express Great Lakes took swift action last week when an inordinate number of its pilots called in sick. It fired them. Dick Fontaine, the Spencer, Iowa-based carrier's senior VP-marketing, said 48 or 49 pilots, "an unusually high number, "called in sick Oct. 15. The daily average is about five, he said.
A high-cycle fatigue problem has cropped up in GE Aircraft Engines' GE90 turbofan, leading to a small crack on a rotating seal in the engine's high- pressure compressor, GE said yesterday. But GE engineers say the crack is "stable" and well understood. Of five British Airways GE90s inspected so far, one has been removed from service for further testing, and three are flying again. Thirty engines have been inspected so far.
US Airways' Air Line Pilots Association unit leadership in Pittsburgh will vote in favor of the contract currently in the hands of membership for ratification, a source said yesterday. Pittsburgh's ALPA contingent is the largest, with about 1,800 pilots, and its leadership generally is the bellwether for how the Pittsburgh pilots vote, the source said. US Airways has secured delivery positions for five more Airbus aircraft - two A319s and three A320s - bringing to 26 the total for which delivery will begin in 1998 (DAILY, Oct. 22).
Airbus Industrie said it has won 249 firm orders in the first nine months of the year, 43% of total airliner sales worldwide. Most orders are from U.S. companies, including International Lease Finance Corp. with 65, Northwest with 50 and America West with 22. Airbus said it delivered 137 aircraft "on time" despite a 50% increase over the same period last year.
Mary Rose Loney, Chicago aviation commissioner, will discuss U.S.-Japan aviation negotiations, passenger facility charges as a source of funding for airport capital needs and issues surrounding a third Chicago-area airport on Aviation News Today, to air Sunday on NewsChannel 8 at 12:30 a.m. and at 1:30 p.m.
Lemanair, a Geneva-based regional carrier, will begin operations in summer 1998 with one 50-seat Canadair Regional Jet, according to Christian Valentiny, its director and founder. The airline, which awaits authorization from the Swiss federal aviation authorities to operate scheduled services, is considering serving destinations in Germany, Belgium, Scandinavia, France, Northern Italy and the U.K.
Delta's Air Line Pilots Association unit has endorsed a contingency plan for pilots of new aircraft to park their planes by February 1999 if management does not agree to an acceptable wage and rules package. Delta ordered 70 737-600s, -700s and -800s, and ALPA wants the pilots who fly the Dash 800 aircraft to receive top industry wages.
Debonair Airways and AzzurrAir, two of Europe's newest airlines, this week signed a commercial alliance for scheduled service between the U.K. and Italy. The carriers will code share on flights from London Luton to Milan Bergamo and Rome Ciampino. Starting Sunday, AzzurrAir will introduce daily Avro RJ services between Luton and Milan Bergamo with through-plane service to Rome Ciampino under the code share with Debonair. The flights will complement Debonair's midday departures from Luton to Rome Ciampino.
GATX Corp. announced third quarter net earnings of $28 million on revenues of $430.9 million, compared with net income of $33.4 million on revenues of $367.8 million. For the first nine months, net income was $89.4 million on revenues of $1.3 billion compared with net earnings of $83.8 million on revenues of $1 billion. The company said gains were partially offset by one-time expenses.
US Airways Group yesterday reported a third quarter net profit of $187 million, nearly three times the $67.7 million it earned in the same period last year. The significant change came with the company's sale of its stake in Apollo Travel Services and Galileo for a net gain of $149.1 million. Nonrecurring expenses totaled $78.8 million, resulting in a net gain of $70.3 million. The company's operating profits plunged 36.7% to $83 million from $131 million.
Boeing Co. said yesterday it will report a third quarter loss tomorrow after taking a record pre-tax charge of $1.6 billion associated with aircraft production problems and late deliveries in its commercial segment. Chairman Phil Condit said recovery plan disruptions will affect commercial aircraft earnings through 1998. Boeing said last month parts shortages were forcing it to temporarily halt production of the 747 and final assembly of its next-generation 737s (DAILY, Oct. 6).
