Roberts Roach&Associates has named Alan Sbarra and Ulf Weber VPs who will serve aviation industry clients as senior consultants. Sbarra has been senior sales analyst in the Latin American Division of United Airlines. Weber was VP-network development for Swiss regional carrier Crossair. The Hayward, Calif.-based transportation consulting firm issues a quarterly scorecard on airline industry costs.
American has objected to DOT's show cause order approving the United-Air Canada alliance and granting it antitrust immunity, arguing that American- BA has been forced to submit massive amounts of documentation in comparison and has not yet seen even a procedural schedule. American believes alliance review standards are being applied unevenly, and it wants United- Air Canada to provide the same type of information it has been compelled to produce. Like American-BA, United-Air Canada goes far beyond simple code- sharing.
...SkyWest just as vigorously pursued the United agreement because of its falling fortunes at Los Angeles, where senior partner Delta is scaling back its hub operation. United is by far the dominant major carrier at LAX and SkyWest the dominant regional. Particularly attractive to United was the San Diego market, where SkyWest operates 32 daily roundtrips. Unique about the agreement is that SkyWest will operate two distinct feeder operations at LAX, one for United in United livery and United uniforms, and the other for Delta/Continental (see related story below).
U.S. National, Regional and Cargo Carriers Advertising Expense First Quarter % Of Total Systemwide Operating Expenses National Carriers American Trans Air $ 2,629,037 1.46 Carnival 1,812,827 1.98 Hawaiian 2,502,267 2.40 Midwest Express 1,396,295 2.15
Crossair has achieved Joint Airworthiness Authorities certification for the Head-Up Guidance System on its Saab 2000 fleet. The advanced navigation system will enable Crossair to perform precision low-visibility landings at airports accomplished previously only by jet aircraft. Crossair's system, manufactured by Flight Dynamics of Portland, Ore., will give the airline flexibility on a range of approaches, including Category 1, 2 and 3 precision approaches, non-precision approaches and visual landings.
United Chairman Gerald Greenwald yesterday called the latest Japanese bilateral offer "a good-faith proposal," saying, "It's not open skies, but it's a step." In a speech to the Washington Airports Task Force, Greenwald said, "We have too much riding on this to let ideology or political posturing get in the way of real opportunity. We should take the deal - and then we should build from there." Separately, Greenwald voiced opposition to elimination or modification of the perimeter rule at Washington National Airport.
Lufthansa Technik said it converted a 747 Combi into an all-passenger aircraft in 38 days even though it ran into "unacceptably slow deliveries" for cabin parts and "had to scrounge available materials wherever it could." It said that "even then, the project remained jeopardized by missing parts" and it had to manufacture the parts itself from Boeing drawings.
Southwest's profits increased 10% to $93.8 million in the second quarter, boosted by strong revenue trends and solid performances from new Florida and Rhode Island service. Operating revenues gained 5.1% to $956.9 million, up from $910.3 million in the year-earlier period, and revenue trends for the year have been "very strong," said Gary Kelly, chief financial officer. Capacity rose 8% and traffic 3%, pushing down the load factor to 63.9% from 67%.
American applied to DOT for an exemption to provide scheduled foreign combination service on San Antonio-Mexico City and Miami-Monterrey, Mexico, routings. The carrier wants to begin daily nonstop service in both markets Dec. 15. Currently, no U.S. flag carrier operates on either of the dual- designation routes. (Docket OST-97-2758)
Atlanta-based Northwest regional subsidiary Express Airlines I posted in June an 11.1% traffic increase to 44.7 million revenue passenger miles from 40.3 million as capacity climbed just 2.0% to 70.8 million available seat miles. The load factor increased 5.2 percentage points to 63.2%; enplanements rose 10.4% to 184,239. June 1997 June 1996 6 Months 1997 6 Months 1996 RPMs 44,748,000 40,267,000 235,883,000 212,599,000
FAA provided limited relief for regional aircraft operators in its new requirements for enhanced digital flight data recorders (DFDR) issued earlier this month, but disputed concerns of industry leaders that the costs of compliance were unjustified for smaller commuter aircraft. The rule, proposed a year ago, will apply to thousands of passenger-carrying aircraft with 10 or more seats in scheduled service, at an estimated cost of $316.3 million.
Minneapolis/St. Paul-based Mesaba Holdings posted a 32.4% increase in net profit for the quarter ended June 30 to nearly $4 million, or 30 cents per share, compared with slightly more than $3 million, or 23 cents per share, for the June 1996 quarter. Operating revenue swelled 28.3% to $54.4 million from $42.4 million.
Robert Francis, National Transportation Safety Board vice chairman and lead investigator on the TWA Flight 800 accident, will discuss the investigation, NTSB's relationship with the FBI and FAA, and other aviation safety issues on Aviation News Today, to be broadcast Sunday on Washington at 12:30 a.m. and at 1:30 p.m.
Atlas Air yesterday reported net earnings for the June quarter of $3.5 million compared with $10 million during the same quarter last year. Revenues rose 20% to $93.9 million and operating income was $16.4 million, down from $22.7 million. For the year to date, net income was $9.3 million, down from $16.2 million. Revenues increased 34% to $176 million while operating income was $34.7 million, down from $38.1 million. Richard Shuyler, senior VP and chief financial officer, said results were affected by five 747-200 freighters Atlas subleased from FedEx.
Atlantic Coast will add two daily roundtrip flights Sept. 9 to its Washington Dulles-Greensboro, N.C., service, giving it eight weekday trips in the market. At the same time, the United Express affiliate will boost its Hartford, Conn., service by one nonstop roundtrip - for a total of five weekday trips - and add one nonstop roundtrip to its Charleston, W.Va., service pattern for a total of four weekday roundtrips.
Omni Air Express told DOT it aims to launch passenger charter service by October and asked the department to waive a ban on signing charter contracts or receiving payment for them before it receives its passenger certificate. The October launch date means OAX must start marketing the new service immediately, the carrier said.
Chicago Department of Aviation yesterday banned touch-and-go operations by fixed-wing aircraft at Meigs Field, a move officials said returns the airport to the general operating environment that existed before it reopened Feb. 10. The department acted after noticing a "huge spike in the number of takeoffs and landings at Meigs compared with the previous year," officials said. Aviation Commissioner Mary Rose Loney said Illinois Transportation Secretary Kirk Brown supports the action, which follows a midair collision last weekend between two general aviation aircraft.
Hainan Airlines of China will take delivery of the first two of 10 Fairchild Dornier Metro 23 aircraft Monday. Five more will be delivered by yearend and the remaining three in 1998. The carrier will operate the 19- passenger aircraft from the city of Haikou.
Delta said it has signed an agreement to provide maintenance and technical service to Airborne Express's fleet of 767-200s. Airborne Express will be operating 12 of the aircraft by 2000, and Delta is to provide engine, auxiliary power unit, component and airframe services for up to 10 years, beginning early in 1998.
Great Lakes Aviation this week resumed service to Minneapolis/St. Paul from Devils Lake and Jamestown, N.D., and anticipates reinstatement to Grand Island and Norfolk, Neb., and Yankton, S.D., in early August. By the end of the month, the carrier expects to be operating twelve to fourteen daily departures from the Twin Cities. The carrier voluntarily suspended its service systemwide in May under FAA pressure. Great Lakes' site on the World Wide Web: http://www.greatlakesav.com
American launched and several carriers matched a fare sale offering tickets priced as much as 46% off the regular 21-day advance price on domestic travel, and 15%-30% off the excursion fares for travel to Europe, the Caribbean, Central America and selected markets in South America and Mexico. The fares, available through Aug. 4, require a seven-day advance purchase for travel by Dec. 12.
AirTran Airways will begin service from Islip MacArthur Airport on Long Island to Orlando and Boston Sept. 3, the same day it expands service between Allentown and Boston. Islip is one of nine cities US Airways is dropping Sept. 4 because of unprofitable routes. AirTran made the announcement Wednesday, and Delta said yesterday Delta Express will start two daily flights to Islip from Orlando and Fort Lauderdale Oct. 1. Business Express, a Delta Connection carrier, also serves Islip.
