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).
American, accusing Delta of violating confidentiality procedures, asked that its comments on various alliances be stricken from the record and called for sanctions against the carrier. Delta vigorously denied the charges.
Delta is expanding its weekend escape discount travel program to include New York. Each Sunday after 12:01 a.m., the airline will offer two domestic and two international destinations for escape plan members at roundtrip discounts as much as 60% off normal, advance-purchase, coach fares. SkyMiles members who pay a $49 membership fee can call an automated toll-free number to hear the list of new cities each week. Sale roundtrip tariffs include $228 from New York to Amsterdam, a saving of 60%, and $198 for New York to Mexico City, a saving of 57%.
Gate Gourmet International, the catering subsidiary of the Swissair holding group, SAir Group, has formed a joint venture with Malaysian Airlines Systems and Manila Integrated Airport Services (MIASCOR), which specializes in ground-handling and freight-forwarding activities. The three parties plan to build an inflight catering facility at Manila Ninoy Aquino Airport. Construction of the new catering site will begin by the yearend, with operations scheduled for the second half of 1998.
DOT Secretary Rodney Slater wrote to National Civil Aviation Review Commission Chairman Norman Mineta on the commission's preliminary Finance Task Force report, outlining areas that require further discussion.
Atlanta-based AirTran Airlines is reinstituting its "X-Fares" program, offering 18- to 24-year-olds a standby fare of $35 each way for travel to any of the 22 cities it serves. Available for travel through Feb. 28, 1998, the program requires customers to present a valid government-issued photo ID at the ticket counter at least one hour before scheduled departure. Standby processing ends 30 minutes before scheduled departure.
Atlantic Coast Airlines reported third quarter operating income of $9.1 million, up 18%, and pre-tax profits of $8.4 million, up 10.3%. Despite the gains, after-tax net profits fell 32% due to a much higher tax bill. The airline paid $3.5 million in third-quarter taxes, at a 42% tax rate, versus $440,000 at a 6% rate last year. Operating revenue increased 10.7% to $54.9 million. In a major achievement, cost per available seat mile fell 0.9% to 20.6 cents. Yield fell 9.3% to 45.2 cents, however, and the breakeven load factor rose 3.9 percentage points to 44.9%.
Midwest Express will build a state-of-the-art 70,000-square-foot hangar at Milwaukee General Mitchell Airport, doubling its hangar space there, to handle maintenance of its current and expanded fleet. In September, Midwest Express signed a letter of intent to acquire eight MD-80s, increasing its fleet to 34 aircraft, and spokeswoman Lisa Bailey said the carrier needs the additional space for maintenance work required before the aircraft enter service. The company has not decided whether to lease or buy the new airplanes.
Spanair will launch North American service Nov. 20 with a split commission structure and low fares that the airline hopes will draw traffic onto its Madrid-Washington route. The carrier, owned 51% by the largest travel agent company in Spain, Viajes Marsans, and 49% by SAS, will serve the route four times weekly with Boeing 767-300ERs configured for 18 seats in business class and 248 in economy. Spanair will offer the only nonstop on a route United dropped in favor of more lucrative business.
Varig Brazilian Airlines officially joined the Star Alliance yesterday, becoming the sixth member and adding every major South American city to the alliance network. The alliance, including Lufthansa, United, SAS, Air Canada and Thai Airways International, serves 642 destinations and has 230,000 employees. Combined revenue was $45.7 billion last year. Varig, South America's largest airline, has 18,100 employees, carried 9.7 million passengers last year and produced $3.4 billion in revenue.
