America West traffic in September fell 5.6% on a capacity gain of 5.7%, which resulted in a load factor of 60.5%, down 7.2 percentage points. The airline noted that the unfavorable year-over-year comparison was due partly to last year's high load factor after Southwest Airlines launched a $25 fare sale. "The load factor has been more than offset by a significant improvement in passenger yield," said Chairman William Franke. Sept 97 Sept 96 9 Mths 97 9 Mths 96
Eurobelgian Airlines was purchased by Virgin Travel Limited, a company that includes Virgin Atlantic Airways. Eurobelgian, renamed Virgin Express, currently operates as a separate airline.
Senate Commerce Committee yesterday voted out its recommendation to reconfirm three National Transportation Safety Board members - George Black, John Hammerschmidt and Chairman Jim Hall. Hammerschmidt told the panel that the board's recommendation asking FAA to examine the effectiveness of enhanced ground proximity warning systems (EGPWS) was one of the two most important safety recommendations made during his tenure; the other was a call for sharper action against drunk driving. The recommendation came after the Oct.
Boeing 727 and 737 Systemwide Aircraft Utilization Per Day Second Quarter 1997 B727-200 American Continental Number of Aircraft Operated 81 33 Total Fleet Operations Departures 288 111 Block Hours 698 268
United's traffic for September rose 5.3% on 4.8% more capacity, which led to a load factor of 72.1%, up 0.4 percentage points. Atlantic traffic soared 29.9% on 29.3% more capacity, which inched Atlantic load factor higher, to 87.5%, up 0.3 points. The Atlantic division comprised 13.3% of systemwide traffic in September, up from 10.8% a year ago. North America traffic rose 2.8% on 3.4% more capacity, resulting in a 68.5% load factor, down 0.4 points. Pacific traffic increased 1.5% on 0.1% less capacity, leading to a 76.7% load factor, up 1.1 points.
Northwest's September traffic rose 5.3% on 0.4% more capacity, which raised the load factor 3.6 percentage points to 75.1%. Domestic traffic was up 6.1% despite a 1.6% decline in domestic capacity, resulting in a load factor of 68.9%, up 5 points. International traffic gained 4.5% on 3.1% more capacity, which forced the load factor up 1.1 points to 83.3%. Sept 97 Sept 96 9 Mths 97 9 Mths 96 RPMs 6,053,646,000 5,747,854,000 54,762,465,000 52,449,078,000
Midway Airlines filed a registration statement for an initial public offering it expects to bring in $60 million, half of it to buy 10 Canadair 50-seat Regional Jets. The stock is being offered by both Midway and certain shareholders. Proceeds to the company are expected to total $30 million, and the airline said no proceeds from selling shareholders will benefit the airline, indicating that $30 million will go to those shareholders. The IPO is being underwritten by Morgan Stanley Dean Witter and Robinson-Humphrey.
Hong Kong's airport authority said yesterday it plans to reduce user charges at Chek Lap Kok Airport 25%-40% below rates envisioned earlier this year. The decision followed an eighth round of consultations with IATA representatives, who pressed airline arguments that the airport authority was planning to burden aeronautical users with too much of the financing responsibility for the facility, which opens next spring (DAILY, Dec. 23, 1996).
Bristol Aerospace Ltd., Winnipeg, received a $98.9 million work package from Boeing Canada Technology Ltd. to make composite panels for the wings and tail section of 737 aircraft. "This program provides the strong base from which we can grow our commercial airframe structures business," said Jim Butyniec, VP and general manager of the Magellan Aerospace unit.
Sun Country's Air Line Pilots Association unit, which rejected a company contract proposal Monday, has offered instead a proposal that "is capable of being signed," according to Master Executive Council Chairman Terry Matson. Sun Country Chief Executive John Skiba said it will take the company "about a week" to assess the ALPA proposal.
September traffic for TWA declined 7.9% on 13.7% less capacity, which improved the load factor 4.1 percentage points to 64.7%. Retiring several widebody aircraft and an international retrenchment in January were reflected in international traffic, which fell 29.5% on 37.6% less capacity, pushing the load factor up 8.7 points to 76%. International capacity for September represented 22% of its systemwide total, compared with 30% a year earlier. Domestic traffic rose 3.2% on 3.3% less capacity, resulting in a 61.5% load factor, up 3.9 points.
London City Airport said it processed 107,492 passengers in September, up 47% from September 1996 and its fourth straight month of handling more than 100,000.
The final version of the fiscal 1998 DOT funding bill (H.R.2169) provides $152.83 million for FAA to continue development of the Wide Area Augmentation System (WAAS), but the appropriations committees are directing FAA and DOT to withhold some of the spending until they submit reports on the program to Congress. The House recommended $114 million for the program. On a related issue, the bill includes language that prohibits implementing the Flight 2000 demonstration program during fiscal 1998.
George Donohue's nomination as FAA deputy administrator was placed on hold by Sen. Bill Frist (R-Tenn.), a member of the Commerce Committee and its aviation subcommittee. Frist is angry that DOT Secretary Rodney Slater has not replied to his request for slots at two high-density airports by two carriers that want to serve Tennessee points. Frist threatened earlier to place a hold on the nomination of Jane Garvey as FAA administrator but was "convinced by DOT and FAA officials that they would act promptly" on the requests, an aide said.
Barlow Partners II, a group of airline investors, is proposing to acquire the United Express divisions of Mesa Air Group for $50 million, sources close to the deal told The DAILY. A written proposal to Mesa for the divisions that feed United in Denver and Los Angeles has not been rejected outright, one source said, and three other airlines - SkyWest, Air Wisconsin and Atlantic Coast, all three United Express feeders - have spoken with Mesa about United Express.
DOT has granted initial one-year authority to Continental for foreign combination code-share service with Virgin Atlantic between Los Angeles/Miami/New York Kennedy/Newark/San Francisco/Washington Dulles and London Heathrow. The approval restores the presence of a third U.S. carrier to Heathrow; Delta's Heathrow service ended when Delta and Virgin Atlantic terminated their code share.
Hokkaido Air System has been formed in Japan by Japan Air System and the Hokkaido island government. JAS owns 51% and the government 49%. HAS's initial capital totals 125 million yen (US$1 million). The capital will be increased to 490 million yen ($4 million) before March, when the airline intends to start. HAS has selected three intra-island routes, to be flown with a 36-seat Saab 340. A second aircraft will join the fleet in July, the third in 1999.
SAir Group subsidiary Gate Gourmet is buying British Airways' inflight catering units at London Heathrow Airport for #65 million (US$105 million) and a 10-year deal to supply the U.K. carrier. The sale, announced yesterday and to be concluded by yearend, involves BA's long-haul catering operation, whose 1,200 employees produce about 25,000 meals a day, and its short-haul catering unit, which produce an equal number of meals and has been managed by Gate Gourmet since 1982.
Mechanics at Frontier voted 46 to 2 Tuesday against representation by the Teamsters. All of the company's seven stock clerks voted against the union. Frontier President Sam Addoms thanked employees for what he interpreted as a vote of confidence in management, pledging to continue "our active direct involvement" with workers. "My intent, and that of the rest of management, is to work hard to listen and respond to the ideas and concerns of the Frontier family." A Teamsters spokeswoman said yesterday the union has no plans for further action at Frontier.
U.S. and foreign aviation organizations yesterday outlined a cooperative 2 l/2-year fuel system inspection program involving 2,000 transport aircraft of various types operated by 68 airlines in an attempt to eliminate disasters like the TWA 800 crash. The organizations participating in the multi-million dollar program, already under way on Boeing 747s, include the Air Transport Association, Aerospace Industries Association, Association of European Aerospace Industries, Association of European Airlines and Association of Asia Pacific Airlines.
Metropolitan Washington Airports Authority (MWAA) said AirTran Airways' bid for new slot exemptions at Washington National is plainly blocked by the law, which "could not be more clear." The power given DOT for granting exemptions at high-density airports under exceptional circumstances is expressly denied at National, MWAA said, citing the U.S. Code. So is authority to grant exemptions for essential air service and foreign air carriers.
Southwest is bringing Fun Fares back to California with a $39 one-way tariff for travel within the state. It also is offering $99 one-way fares to selected Midwest cities, including Chicago, St. Louis, Cleveland, Detroit and Columbus. Tickets must be purchased by Oct. 31 and travel completed by Dec. 8. Prices are based on roundtrip purchase and require a one-night stayover.
Pro Air Inc., has increased service from its Detroit City hub to Baltimore and Newark from two to three daily flights. Flights will depart for Baltimore at 7 a.m., 1 p.m. and 5:55 p.m., returning to Detroit at 9 a.m., 4 p.m. and 7:55 p.m. Flights to Newark will leave at 8:05 a.m., 12:45 p.m. and 5:40 p.m., and return at 10:20 a.m., 3 p.m. and 7:55 p.m. The unrestricted one-way coach fare is $79, and first-class travel costs $199 each way. Pro Air will continue daily nonstop service from Detroit to Indianapolis and Milwaukee.
American and Asiana are expected to announce a code-share alliance Oct. 17 during a briefing by chief executives of both airlines in New York. The Korean carrier and Northwest ended a partnership last month.
