Dusseldorf Airport fell from its position as Europe's 10th-busiest airport to the 14th rank because of traffic disruptions following the April 1996 fire that claimed 17 lives. The number of passengers decreased below 15 million in 1996, down 4.8% from 1995, and flight movements dropped 3.3%. In the first half of 1997, growth was 2.4% - the German average was 5.2% - because the airport's operations still had not returned to normal.
Dragonair said yesterday it will replace its A320s with seven new A320s and A321s, acquiring five of the aircraft on lease from International Lease Finance Corp. (ILFC) and two directly from Airbus Industrie. Dragonair said the decision is part of a four-year plan that could double its fleet of 12 aircraft, and it is the largest investment the 12-year-old airline has made. The Hong Kong-based carrier, which has five A330s, also will buy another A330-300 for delivery in October 1998.
Delta's restructuring of its Atlantic operation, dropping short-haul service beyond Frankfurt in favor of more nonstops from the U.S., has been "tremendously successful" this summer, a spokesman said, especially on the New York-Istanbul route.
Austin-based Conquest Airlines, under its fifth new owner in five years, has ceased flying and will shift its base of operations to Oklahoma City, says Ben Bradley, chairman and chief financial officer of Mid- Continent Airline Inc. Mid-Continent acquired Conquest in late July from Worldwide Aircraft, which had been talking to a number of prospective buyers. Bradley said he stopped Conquest's operations because of "financial woes I was not apprised of when we acquired the company. There is a financial crisis every day," he added.
McDonnell Douglas DC-10 Aircraft Operating Costs First Quarter 1997 Dollars Per Block Hour DC-10-10 American United Average Crew Cost $892 $1,133 $1,054 Fuel&Oil 1,612 1,589 1,596 Rentals -- 49 33
Aspen Mountain Air may acquire Mountain Air Express (MAX) from Western Pacific Airlines, according to several sources in the Denver area. Both carriers operate in and out of Denver, and both fly Fairchild Dornier 328 high-speed turboprops. Westpac President and CEO Robert Peiser has not concealed his disdain for MAX, launched by his predecessor, Ed Beauvais. MAX recently shifted its hub from Colorado Springs to Denver and serves Albuquerque, Kansas City, Oklahoma City, Salt Lake City and Tulsa. MAX President Tom McLain was unavailable for comment.
ABX Air Inc., the Airborne Express airline, will replace Omega/VLF navigation systems on its DC-8 aircraft with II Morrow's Apollo 2101 GPS navigation management system, according to the manufacturer and marketing company DAC International. II Morrow also will provide a customized navigation database, including company routes. Installation has begun and will be completed by Sept. 30, when Omega stations are to be decommissioned.
Precision Standard said it lost $4.9 million for the June quarter on sales of $35.7 million, compared with a loss of $1.9 million on sales of $35.8 million during same quarter a year ago. For the six months ended June 30, the company lost $7.5 million on sales of $70.7 million, compared with a loss of $3.3 million on sales of $62.4 million.
Hawaiian startup Mahalo Air was struggling to stay in operation this week following a Chapter 11 bankruptcy protection filing July 25 to protect its fleet from repossession. Mahalo was behind in its rent on seven aging ATR-42 aircraft because of high operating costs resulting from "deplorable reliability," said carrier President Mike Yocum. He described the repossession as a "midnight cowboy raid" by Aero International (Regional) and its leasing subsidiary Renaissance Leasing Corp.
Continental Express put a 13.7-percentage-point spread between traffic and capacity growth during July. With its burgeoning fleet of Embraer EMB- 145 regional jets, the carrier's revenue passenger miles surged 35.9% over the July 1996 level, while available seat miles rose 22.3%, resulting in a 60.5% load factor. Passenger enplanements increased 25.1% to 478,956. Year-to-date, traffic improved 22.8% on a 19.8% gain in capacity, producing a load factor of 54.3%. Passenger enplanements were up 15.2% to 2.7 million.
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day First Quarter 1997 DC-10-10 American United Total Number of Aircraft Operated 13 25 38 Total Fleet Operations Departures 21 70 92
Midway Express Connection Skyway Airlines will start service Oct. 1 between its Milwaukee hub and Escanaba, on Michigan's Upper Peninsula, operating six daily roundtrips with 19-passenger Beech 1900Ds. Also on Oct. 1, it will launch four weekday roundtrips between Milwaukee and Chicago Midway. Skyway has no competition on the Milwaukee-Escanaba route but faces Chicago Express's five weekday roundtrips with 19-seat Jetstream 31s in the Milwaukee-Midway market.
BAA's seven U.K. airports handled 10.2 million passengers in July, the highest number ever in a single month, and passed 100 million for the first seven months of the year. Despite the British Airways flight attendants strike, every airport and all major markets recorded increases in July. BAA estimated the net loss directly attributable to the BA strike at 200,000, 2% of the month's volume. The European charter market was the fastest-growing sector, up 12.3% from July 1996.
Mesaba Holdings stockholders will vote next week on increasing the number of shares outstanding from 15 million to 25 million. The company states that the additional shares will be "available for possible future financing or acquisitions, transactions, stock splits, recapitalization and other general corporate purposes." Management also says that, "although not intended as an anti-takeover device, issuing additional shares of common stock could impede a non-negotiated acquisition...by diluting ownership." Senior partner Northwest holds 30.6% of Mesaba stock.
Aviation-Related Bills Introduced In Congress June 2-August 1 -- S.832 - introduced June 5 by Sen. Herb Kohl (D-Wis.) - a bill to amend the Internal Revenue Code of 1986 to increase the deductibility of business meal expenses for individuals who are subject to federal limitations on hours of service. Referred to the Finance Committee.
Frontier Airlines yesterday reported a net loss of $2.1 million for the quarter ended June 30, reversing last year's profit of $1.3 million. Revenues grew to $34.6 million from $28.1 million. Frontier President Sam Addoms said the loss was due to increased maintenance and leasing expenditures and the reinstatement of the 10% ticket tax. Cash and cash equivalents dropped to $8.5 million from $15.1 million last year.
Members of the Family Assistance Task Force meeting in Washington yesterday discussed efforts to train airline employees to effect a drastic role change in the event of an air disaster - from efficient operators of a mass transit system to the first point of contact for stricken, angry relatives of victims. "I think we need to recognize how hard this is," said Judy Bonderman, a Justice Department official who has worked with law enforcement in victim assistance. "It's very hard. That first contact you make with the family is etched in your memory forever."
The Network Connection Inc. (TNCi), a new player in airline inflight entertainment, has received significant interest from several major international airlines in what it says is the industry's first scalable interactive digital video/audio system. "We bring an entirely digital system - it's totally interactive - and there's no other like it flying today," said TNCi Chairman Wil Riner. The company believes its edge is that its system operates on a local area network that is lighter and simpler to install.
The Indian government, acting on the recommendation of the country's Divestment Commission, has decided to divest its entire equity holding of 78.5% in helicopter company Pawan Hans Ltd., government officials said last week. The government also accepted the commission's recommendation that the stake first be offered for purchase to state-owned oil and gas producer Oil and Natural Gas Corp. (ONGC). Pawan Hans ferries equipment and personnel to offshore oil rigs for ONGC.
DOT asked Florida West International Airways for more information on the carrier's applications for operating authority renewal. Noting Florida West's plans to sublease office and warehouse space from Fast Air, DOT questioned whether FWIA will share with Fast Air any resources, including employees or financial arrangements, except for Ernesto Ramirez, a longtime Fast Air senior official and a Florida West board member. Several principals of Fast Air own International Aviation Services, which holds 25% of Florida West's stock.
Singapore Airlines was rated tops in all 18 categories of an airline service survey of Korean business travelers conducted by The Economist magazine. The 50 largest Korean companies rated SIA ahead of 35 other airlines, including Korean Air and Asiana, SIA said. With a satisfaction rating of 75.8, SIA outdistanced Japan Airlines, 65.9, Asiana, 65.3, and Lufthansa, 62.5. KAL was rated sixth overall, with 57.2. United, rated 47.9, was lowest among the top 10 carriers in 15 categories, including taste of meals, inflight comfort and punctuality.
NASA, tasked by the Clinton administration to oversee improvements in aviation safety, plans to issue requests on research projects late this year and early next year, according to Mike Lewis, newly appointed NASA Aviation Safety Research Program manager. Proposal reviews will begin in February and "new starts" in April, Lewis told industry representatives yesterday in Washington.
New Zealand and the U.K. will liberalize air services under a new memorandum of understanding permitting an unlimited number of flights by flag carriers between the two countries. The expansion accommodates traffic growth that has made the U.K. New Zealand's third-largest source of tourists, trailing Australia and Japan and surpassing the U.S. The MOU permits new, limited beyond rights, eliminates a requirement to file freight tariffs and supports liberal approval of charter applications.
Qantas is celebrating 50 years of flying between the U.K. and Australia with the launch of three Discovery fares to Australia, starting at #749 roundtrip to Perth or Darwin. The tariff includes a stopover in Bangkok or Singapore in each direction. For #829 roundtrip, Qantas includes two free internal flights on selected routes in Australia, plus the stopovers. The special fares are on sale until Nov. 30 and valid for travel until March 31, 1998.
US Airways reduced ticket prices as much as 55% below normal roundtrip excursion fares in nearly 8,000 U.S. and Canadian markets and for travel to San Juan, Grand Cayman, Montego Bay and Cancun. The lowest U.S.-Canada fares are available for travel on Tuesdays, Wednesdays or Saturdays, and the lowest Caribbean fares are for travel, Mondays through Thursdays. Reservations must be made at least 14 days in advance of travel and tickets must be purchased by Aug. 21. Travel must be completed by Dec. 16 and include a Saturday night stay.
