The American Eagle carriers - Simmons, Wings West, Executive and WestAir - posted 2.1% decline in revenue passenger miles and a 5.2% drop in capacity in October, versus the same 1996 month, which boosted the group's load factor 1.9 percentage points. American's regional affiliate flew 208.8 million RPMs during the month, down from 213.4 million, on 349.7 million available seat miles, down from 368.9 million. The group flew 2.132 billion RPMs for the year to date, down from 2.276 billion in 1996, on 3.509 billion ASMs, down from 3.713 billion.
United's experimental carry-on baggage strategy is a bad idea that is sure to anger travelers, say airline consultants. United is testing a policy that limits the lowest-paying passengers to one carry-on bag in order to make room in overhead storage bins for the bags of higher-paying business travelers. United will start the test Dec. 1 on its Des Moines service, which has a high concentration of business travelers and, with 15 departures daily, is a manageable size, said United spokesman Tony Molinaro.
Air Canada has ordered five A330-300 aircraft and three A340-300s, doubling its contract for Airbus widebodies. Air Canada will be the first scheduled-service airline in North America to operate the A330-300.
Air France has leased two Airbus A319s from International Lease Finance Corp. on five- and six-year terms, for delivery in February and April 1999. Air France operates six ILFC aircraft - three A319s, an A320 and two A340- 300s.
Vivid Technologies said it received a $1.7 million order from United for automated explosives detection systems for New York Kennedy's new Terminal One. Vivid said the order is the first in the U.S. from an entity other than FAA.
Association of European Airlines Traffic September, 9 Months 1997 September 1997 Passenger Data % RPKs Change ASKs Region (Mil) 97/96 (Mil) EUROPE 10,591.0 8.7 15,221.8 NORTH AFRICA/MIDDLE EAST 1,699.6 7.6 2,461.0 LONGHAUL
Western Pacific is extending special fares to cover travel during the Thanksgiving weekend. Can Do Spirit fares, starting at $49 one way based on roundtrip travel, are available for purchase through Saturday. They must be purchased at least 14 days before departure, and travel must be completed by Feb. 11.
Pilots unions at Air France's regional unit, not pacified seven months after the unit's merger with the French flag carrier, have called for a 48- hour strike Nov. 13-14. Pilots of the former Air Inter are protesting a French government decision to extend for five months a transitional agreement on their working conditions that was due to expire Oct. 31. Air Inter pilots enjoyed more advantageous working conditions than their Air France colleagues before the merger.
British Airways, continuing on its track of profitability, posted six-month net profits of #317 million (US$510 million) as mainline scheduled passenger traffic gained 5%. The profit was down 18.7%, however, as BA put the total cost of its summer flight attendant strike at #125 million ($201 million). Revenue improved 1.5% to #4.46 billion ($7.18 billion). Expenses increased 6.1% to #4.1 billion ($6.6 billion). BA will raise its interim dividend to shareholders 10.6% to 4.7 pence per share.
United's scheduled traffic increased 3.1% in October on 5% higher capacity, forcing the load factor down 1.3 percentage points to 70.9%. Transatlantic traffic jumped 22.3% on 19.3% more capacity. "The popularity of our Boeing 777 contributed significantly to an 80% passenger load factor between the United States and Europe in October," said United President John Edwardson. Domestic traffic, affected by an October snowstorm in Denver, rose 1.4%. Pacific traffic edged up 0.7% on 3.8% more capacity. Latin American traffic was down 5.4% on 0.1% more capacity.
Alaska Airlines traffic for October increased 0.4% on 4.7% more capacity, reducing the load factor 2.6 percentage points to 61.4%. The airline carried 935,100 passenger versus 950,300 in the year-ago period. For the first 10 months of 1997, traffic rose 4.5% on 1.9% more capacity.
Delta is trying to improve service to passengers who are separated from their baggage - delivery by uniformed handlers with a customer-friendly demeanor and positive identification - under a contract between the carrier and Distribution Solutions International Inc. to handle lost-baggage delivery at 12 of its largest locations, including Atlanta, Cincinnati, Salt Lake City and Orlando. DSI is trying to standardize the presentation of delivery personnel as well as the way deliveries are made.
Eagle USA Airfreight said its revenues for the September quarter increased 59% to $91.4 million from $57.5 million a year earlier. Operating income and net income both rose 41%, to $8.1 million and $5.2 million, respectively. For the fiscal year ended Sept. 30, revenues jumped 57% to $291.8 million and net income 46% to $16.8 million. The company opened terminals in Little Rock, Guadalajara and Mexico City during the quarter, reaching a total of 60, and it plans to open 30 more in North America during the next two fiscal years.
World Airways net profits for the September quarter grew to $3.7 million from $3.1 million. Revenues rose 6% to $79.9 million, and expenses increased to $75.4 million from $71.7 million. The earnings were affected by a settlement reached with an engine manufacturer, which reversed $2.4 million worth of lease expenses that appeared in prior quarters. Passenger operations with Brazil's VASP, which has wet-leased MD-11s, have yet to affect World's revenues.
United is seeking to become a larger player in China's thriving aviation market, as it opens a Beijing branch of UAL Services. The division offers everything from ground-handling to consulting and spare parts. The company, which is negotiating to open joint U.S.-China air routes, has trained pilots for several small Chinese carriers, including Hainan Airlines and Xiamen Airlines.
Senate Commerce Committee passed the FAA Research, Engineering and Development Authorization Act of 1997 this week, authorizing the account for one year. The RE&D bill authorizes $229.7 million for one year, establishes a $750,000 grant program to use undergraduate and technical colleges for relevant research, and includes a Sense of the Congress resolution on the need for FAA to assess immediately the year 2000 date- logic problem.
Spirit Airlines, returning to health after last year's losses and near- acquisition by Comair, is expanding its Florida-Atlantic City service with a second daily flight to Fort Lauderdale, and increasing service to Fort Myers from four frequencies a week to daily flights. Vice Chairman Mike Kahan said the carrier lost $6 million last year, but in the first nine months of 1997 earned more than $1 million. The secret to survival is controlling growth and carefully selecting markets, he said.
Emirates is evaluating two long-range development aircraft that would enable the Dubai-based carrier to handle burgeoning passenger traffic to the United Arab Emirates and the Middle East. The airline is assessing the Boeing 777-200X and the Airbus A340-500, both capable of operating nonstop from Dubai to the carrier's destinations in the U.S., Australia and Japan.
Servisair said Swissair contracted with it for ground-handling requirements at Manchester Airport. Swissair operates daily scheduled service to Zurich with A320 aircraft, and is increasing frequency to twice daily.
Atlanta-based AirTran Airlines flew 120.2 million revenue passenger miles in October and 273 million available seat miles, resulting in a 44% load factor. Year-to-date RPMs totaled 1.4 million and ASMs 1.2 million, with a 52.2% load factor. In September, the company announced a merger with Orlando-based AirTran Airways and changed its name from ValuJet. These moves, plus a lack of advertising, contributed to the low load factor, a company spokeswoman said. The merger will be completed at monthend.
Kiwi International Air Lines expanded its service yesterday with nonstop flights to Tampa from Newark, Chicago and Atlanta, and one-stop service through Newark from Boston to Tampa. One-way fares begin at $109 for Tampa flights to Chicago, $113 to Newark, $59 to Atlanta and $87 to Boston. Orlando-San Juan service will begin Nov. 21.
The French government is demanding information from the European Commission on the newly definitized aircraft sales contract between Boeing and Delta, France's European affairs minister, Pierre Moscovici, said yesterday in Paris. The commission does not have the information yet, because it granted Boeing a delay until Nov. 10 to provide it. France is putting pressure on the European competition authorities nonetheless: "The surveillance of these agreements is to France an essential commitment," Moscovici said in an address to the French parliament.
Top 25 Domestic City-Pair Markets O&D Passengers First Quarter 1997 Short Total Average Haul Markets Non-Stop Passengers City-Pair Rank Rank Mileage Per Day Los Angeles - New York 1 3 100 7,172
Finnair carried 9.7% more international passengers in September than a year ago, as total passenger traffic rose 11.1%. International cargo and mail volume for the month rose 16.6 %, while total cargo and mail jumped 18.5%. The passenger load factor edged up to 70.1%, 1.2 percentage points higher.
Continental's pilots will receive pay parity with the top five carriers under their tentative pay agreement with the carrier (DAILY, Nov. 4), Independent Association of Continental Pilots Secretary/Treasurer Mike Hynes said yesterday. Chief Executive Gordon Bethune had promised employees parity with the top ten airlines within three years.
