Western Pacific Airlines, in its last quarter based solely at Colorado Springs, reported a net loss of $17.7 million versus a net profit of $521,000 a year earlier. Revenue rose to $43.9 million from $39.3 million. The results "only served to reinforce our decision to enter the Denver market, effective June 29," said Robert Peiser, Westpac president and chief executive. The airline has lost $35.5 million in the first half of 1997, compared with a loss of $1.9 million last year.
Northwest is enhancing its web site to speed online bookings. Improvements include a currency converter and a seat map graphic that enables customers to choose their seats. Customers provide credit card numbers over the telephone. Gold card members already can view and reserve aisle seats online.
Boeing Commercial named Nancy Bethel executive VP, heading a team that last year sold 717 aircraft valued at more than $53 billion. She also is a member of the Office of the President, comprising a selected group of senior executives.
Standard Aero purchased the assets of Marysville, Tenn.-based Alliance Engines, giving the Canadian gas turbine engine and accessory overhaul specialist a home for its AE3007 repair work and an opportunity to expand into other engine and auxiliary power unit markets. Terms of the transaction, completed July 31 after an initial agreement earlier in the month, were undisclosed. The AE3007 powers the EMB-145 and other aircraft.
Moody's Investors Service said Airbus Industrie gained some benefits from the merger of Boeing and McDonnell Douglas, including the "elimination of a major, albeit fading, competitor like Douglas." Combined with the demise of Fokker, the Boeing deal "rationalizes the industry," according to Tassos Philippakos, senior VP. "The finite number of aircraft to be delivered will be essentially shared by two competitors instead of three, which should allow them to better recoup their huge R&D investments and to earn a reasonable profit on sales."
Continental Express Oct. 1 will add four new EMB-145 flights to its Houston-Corpus Christi service. Currently, Continental Express and Continental offer 10 departures in the market - three (non-regional) jet frequencies and seven turboprop flights. With the new service, the two carriers' flights still will total 10 - but the mix will change to six with jets (four regional), and four with turboprops. The EMB-145 carries 50 passengers. The regional jets will use Continental's Terminal B concourse in Houston, scheduled to open next month.
Cargo and commercial airlines tried to make space for increased package volume yesterday as the UPS strike of drivers, sorters and loaders continued. UPS was processing 10% of its total volume and said it has a plan to increase the amount. Only 42 flights operated yesterday, but the company said it sorted more than 304,000 packages at its Louisville facility. The work was done with more than 376 union members, an increase over Wednesday in the number of workers crossing picket lines.
Dover, N.H.-based Business Express will launch service to Ottawa, Ontario, from New York LaGuardia Oct. 1 with three roundtrip flights. The airline, which does business as both a Delta Connection and a Northwest Airlink partner, operates 39 Saab 340 aircraft to 26 cities in the Northeast and Canada.
British Airways said opponents of the American/BA alliance are "piling on" in support of a Continental motion to launch a DOT evidentiary review of the alliance's cooperative ventures with Iberia and its effect on other relationships, including the American/TACA code-share proposal. TWA, United, Delta and City of Houston authorities support the move.
Atlantic Coast Airlines has appointed Patti Barth-Carlo director of strategic planning. Barth-Carlo has been manager of strategic planning since 1994 when she joined the airline. In her new position, she is responsible for long-range planning, industry analysis and product development. Barth-Carlo, who has been in the industry since 1991, from 1992 to 1994 was a senior analyst with Continental, where she was responsible for financial and corporate planning.
Paradise Island Airlines will begin three-times-daily Miami-Orlando service Sept. 8, using 50-passenger de Havilland Dash 7 aircraft. Paradise Island will offer an introductory fare of $69 each way, on sale until Aug. 22 for travel between Sept. 8 and Dec. 18. Paradise Island also operates service from Fort Lauderdale and West Palm Beach to Paradise Island in the Bahamas.
Greenwich Air Services said yesterday that net sales for the June quarter rose 122% to $220.4 million, its 15th consecutive record quarter. Income from operations was up 129% to $16.6 million, and net income jumped 105% to $5.6 million. For the nine months ended June 30, net sales were up 179% to $609 million, income from operations soared 169% to $49.1 million, and net income gained 133% to $16.7 million.
Northwestern Air, based in Fort Smith, Northwest Territories, Canada, has purchased one Jetstream 31 from British Aerospace Asset Management- Turboprops. The aircraft is Northwestern Air's second J31. Northwestern Air offers charter and scheduled services throughout the Northwest Territories and Alberta; the new aircraft will be placed in service on the Fort Smith-Edmonton route.
FAA, which Wednesday issued a final rule allowing Part 135 commercial operation of single-engine aircraft under instrument flight rules (IFR), promoted the rule as a significant way to help prevent accidents involving visual flight rules (VFR) operation into instrument meteorological conditions (IMC).
Continental Express employees are being treated to pizza today for handling record passenger loads of 60.5% in July. Cities with high load factors were Providence, 77.2%, Syracuse and Portland, 62.3%, and jet markets Savannah, 62.3%, and Milwaukee, 60.2%. Continental and Continental Express have been hiring high numbers of inflight crews, and the regional said with its latest flight attendant class graduation, it is now overstaffed. "We have overinvested to catch up, and we are doing the same on the pilot side," said President Dave Siegel.
American Airlines Cargo said it has entered a "global partnership" with Air Express International. AA Cargo will provide special pricing, space allocations, automation, handling considerations and dedicated personnel to AEI on a worldwide basis in exchange for designation as AEI's preferred carrier. American Airlines Cargo President Dave Brooks said the companies "already had a close partnership with over $35 million in joint revenues in 1996."
Reno Air flew 4.5% more traffic in July, for a total of 311.9 million revenue passenger miles, than in the same 1996 month. Capacity was up 0.8% to 423.6 million available seat miles, which resulted in a 2.6-point gain in load factor to 73.6%. The airline carried a record number of passengers during the month, 530,854, an 11.6% gain. For the first seven months, RPMs rose 7.2% to 1.836 billion, while ASMs went up 6.5% to 2.702 billion. The load factor eased up 0.5 points to 68%. Passengers carried increased 11.7% to 3,208,672.
Western Pacific, which this week posted financial results for the second quarter and first half of 1997, also published selected operating data of 57% owned subsidiary Mountain Air Express. The regional began service in December 1996, so year-over-year comparisons are not available. Mountain Air Express - Selected Operating Data 1) 3 Months Ended 6 Months Ended June 30, 1997 June 30, 1997
Electronic ticketing is catching on at Delta. The carrier reports that in July, the percentage of electronic tickets issued by U.S. domestic stations rose four points to 75% - that is, where ticketless travel was available, three out of four passengers opted for it. Three stations, St. Thomas, San Juan and St. Croix, issued 100% electronic tickets. Hub leaders were Los Angeles, 88%, and Orlando, 87%.
ValuJet Inc. received consent from a majority of its 10-1/4% senior note holders to move forward with its merger with Airways Corp. ValuJet Chief Financial Officer Steve Nevin said the bondholder approval means "we can move forward to gain the final requisite shareholder and regulatory approvals for the merger, which will strengthen our position in the airline industry."
