BAA plc generated a pre-tax profit of #136 million (US$219 million) for the quarter ended June 30, 4.5% more than in the same 1996 quarter. After-tax profit gained 7.1%. Income from airport and traffic charges rose 4.2% to #136 million ($219 million). Revenue from retailing rose 7.1% to #161 million ($259 million). BAA said its seven U.K. airports handled 10.2 million passengers in July, 6% more than July 1996 and the highest number ever in a single month.
Profits for Crossair more than doubled during the first half of 1997, the Swissair subsidiary said. General revenues rose 25%, while turnover from flight operations jumped 27%. The regional carrier attributed part of its rise in revenues to a weaker Swiss franc and a strong economic climate in foreign markets. However, it also kept a firm grip on expenditures, particularly operating costs, thus boosting its breakeven load factor - a trend Crossair management intends to follow for the remainder of the year.
DOT extended Air Jamaica's exemption for New York/Atlanta-Barbados service via intermediate points until Dec. 1, giving Jamaican authorities another opportunity to resolve Amerijet's ground-handling issues. Air Jamaica's last temporary exemption expired yesterday.
Five of 14 regional airlines posted load factors of more than 60% during July. Only one fell below 50% and one topped 70%. The average load factor for the 14 carriers was 58.2%, up 4.3 percentage points from the same period in 1996. United Express Air Wisconsin topped the chart at 71.7%, up from 64.4% a year ago. AMR Eagle, comprising Executive, Flagship, Simmons and Wings West, hit 66.3%, up from 62.5% in July 1996. Horizon Air, typically one of the top load-factor producers, reported 64.8%, up from 62.3%.
Summary of U.S. Major Carriers Domestic Traffic February 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 792 5.67 816 646,485 America West 1,376 1.79 853 1,174,022
Delta pilots will conduct informational picketing on Labor Day at selected cities as part of an "aggressive plan" to press grievances, ALPA Master Executive Council chief Denny Dolan told members. The campaign, in development for weeks (DAILY, Aug. 18), reflects pilots' frustration with "management's failure to comply with the spirit and intent" of the current contract, which is amendable in April 2000.
Kansas City-based Vanguard Airlines is offering one-way $25 fares and Orlando-based AirTran Airways has reduced fares to $49, both for tickets bought this weekend. Vanguard is selling the low-price seats on any flight to or from Kansas City tomorrow and Sunday. AirTran's sale tickets must be purchased by Monday but are good for travel between Sept. 8 and Oct. 2, a slow period for U.S. airlines.
Lufthansa Group more than tripled its pre-tax profits for the first half of 1997, earning 397 million Deutschmarks (US$220 million), the best half-year result ever. Nearly a third of the earnings, DM125 million ($69 million), came from exchange rate gains due to the DM's weakness against the dollar, however. The results show how much currency fluctuations can affect airline earnings - if the DM had retained its value of the first half of 1996, the company would have generated DM275 million less in revenue but incurred DM150 million less in expenses.
Summary of U.S. National Carriers Systemwide Traffic February 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American Trans Air 433 (20.19) 1,564 677,338 Carnival 205 (3.65) 1,167 239,391
...Speculation abounds, however, that Western Pacific founder Ed Beauvais, who was forced out in a boardroom coup, may be seeking investors to win back control of the carrier and its regional subsidiary from Robert Peiser, who moved both carriers from Colorado Springs to Denver. An emergency board meeting - the second this week - is scheduled today. But the $7.1 million from MAX might help keep Westpac afloat during its current financial difficulties. The carrier is said to be seeking about $100 million in outside capital.
Northwest and Alaska Airlines enlarged their two-year-old code-sharing pact yesterday to include Alaska's service to Russia as of tomorrow. The deal includes through fares and connecting flights, frequent flyer plans and one-stop check-in. Alaska serves Magadan, Khaborovsk, Vladivostok, Petropavlovsk-Kamchatsky and Yuzhno-Sakalinsk, with direct MD-80 service from Seattle via Anchorage. "The routes have a lot of business travelers, because there's been increased trade with the Russian Far East and there's U.S.
American submitted additional documents in the TACA code-share case, as directed by DOT, but said competitors' arguments that the TACA deal is related to new proposed alliances with Iberia and Aerolineas are "hyperbolic." There is "absolutely no relationship between any of those proposed arrangements...and our longstanding proposed alliance with TACA," American told DOT.
Aspen Mountain Air appeared closer to a deal to acquire Mountain Air Express (MAX) from 57% owner Western Pacific for a reported $7.1 million. AMA officials declined comment. MAX President Tom McClain said a couple of people expressed interest and the fledgling regional needs "fresh outside capital." MAX reported a $3.6 million net loss on revenues of $1.3 million for the June quarter but is now making money. There is considerable synergy because both carriers serve Colorado markets and both operate 32- seat Dornier 328s...
Boeing plans to transfer 200 workers next week from its 767 assembly line to 747 production as part of an effort to deal with what the company described as an "extremely demanding production schedule." Capacity is being taxed by market demand for production rates to increase "twice as rapidly as in comparable periods in the past," it said. Ron Woodard, Boeing Commercial president, said the company is looking at bringing in workers from other Boeing units, such as Douglas Aircraft, and other companies, such as Lockheed Martin.
Passenger traffic at Europe's 25 largest airports increased 7.5% in the first six months of this year compared with the same period in 1996, according to data compiled by Airports Council International-Europe. Aircraft movements grew 7% and freight volume 6.2%. The 25 airports together account for about half of Europe's air traffic, and ACI-Europe predicted more than 800 million total passengers, about 11 million landings and takeoffs and nearly 10.5 million metric tons of freight in Europe this year.
FAA awarded a $2 million grant to Austin, Texas, to build an automobile parking facility at Austin-Bergstrom Airport, scheduled to open in mid- 1999. The agency issued the grant under the Military Airport Program, which is intended to expand the civil airport system by providing a modest set-aside of Airport Improvement Program funds to help convert former military airfields.
Burlington Air Express improved overnight service in Texas and New England, offering what it called "significant expansions to existing capacities." The company said it also is improving daily arrival and departure times in the two markets.
Embraer has selected the Allison AE3007 turbofan to power the proposed EMB- 135 37-seat regional jet. It is the same engine that powers the 50-seat EMB-145 but would be derated. The Brazilian manufacturer has yet to launch the aircraft officially, although it said at the Paris Air Show in June the launch likely would come in August. There is speculation the announcement will be made at the European Regions Airline Association meeting in early October at Baveno, Italy. The 135 would be a 145 with fuselage plugs removed fore and aft of the wing.
Scandinavian Airlines System's SAS Commuter confirmed Wednesday it has placed orders for 15 de Havilland Dash 8Q-400 aircraft plus 18 options (DAILY, Aug. 22). The aircraft will be delivered between July 1999 and December 2000. Value of the order was placed at $350 million. Initially, the aircraft will be configured for 72 passengers and will serve the carrier's European destinations from Copenhagen. Later aircraft will seat 76 passengers and operate in the domestic and international Swedish networks from Stockholm, joining at least six Saab 2000 47-seaters.
The French government is changing tactics in an attempt to break the deadlock over corporatizing Airbus Industrie, French industry sources said yesterday. Daily newspaper Le Monde reported Wednesday that the Socialist government in Paris has given up its right-wing predecessor's plan to merge privately controlled Dassault Aviation and Aerospatiale, France's government-owned member of the four-nation Airbus consortium, prior to modifying the statutes of Airbus and consolidating the civilian and defense activities of Airbus's members.
London City Airport passenger traffic jumped 91% in July, compared with the same month of 1996, partly due to British Airways strikes that drained traffic from London Heathrow Airport to the city's other airports. But the main factor is steadily growing business passenger traffic, according to Richard Gooding, managing director.
Urumqui, China-based China Xinjiang Airlines took delivery of the first of five ATR 72-210s it has on order, with the remaining aircraft to be delivered over the next year, the consortium Aero International (Regional) said. The carrier will use the aircraft in Xinjiang province to provide service between Urumqui and tourist areas.
Don Phillips of The Washington Post and David Field of USA Today will discuss aviation issues in a "reporters' roundtable" on Aviation News Today, to air Sunday on Washington NewsChannel 8 at 12:30 a.m. and 1:30 p.m.
Aer Lingus said it received a high volume of telephone calls after launching its toll-free reservations number, 1-888-IRISH AIR. The airline has a new number, 516-577-5700, for travel agents and consumers calling its North American headquarters.
Aero International (Regional) has given financially troubled Mahalo Air "more support than any other airline - more than most other manufacturers would provide," according to Jean-Michel Leonard, president of AI(R) Marketing of Herndon, Va. The Hawaiian regional is under Chapter 11 bankruptcy protection from creditors, including AI(R), which sought to prepossess its seven ATR 42s in late July, prompting the Chapter 11 filing (DAILY, Aug. 15). Mahalo had complained about reliability of the aircraft, which Leonard said is identical to that at other carriers.
