British Aerospace Asset Management-Turboprops (BAe-AMT) believes the demise of the Jetstream 41 production line will not harm BAe-AMT's leasing business. "Out of 106 Jetstream 41s produced, 79 units are part of AMT's portfolio," BAe AMT Executive VP Stephen O'Sullivan said. "Of these units, 77 are secure with long-term leases and quality customers." O'Sullivan said two 41s are currently available for lease, "and we have a strong list of prospects in both the U.S.
The rhetoric is heating up between two contestants in one of the newer regional aircraft niches - 30-passenger-class jets. Embraer says its new 37-passenger EMB-135 will be a "real jet"- even before the program's official launch, expected in August. Fairchild Dornier says its 32-seat 328JET will have significant advantages over the "real jet" and that the two companies' competition will be a "shootout at the OK Corral."
Polar Air Cargo warned DOT that it might help create a monopoly on cargo rights to Argentina if it does not award Polar frequencies while allowing Federal Express to buy three frequencies from Florida West International and Arrow Air. Polar seeks reallocation of two unused Challenge Air Cargo frequencies, a request Federal Express said it would not oppose if DOT grants its FWIA/Arrow application. FedEx said it would pursue award of the Challenge frequencies vigorously if it is denied FWIA/Arrow, however.
Bombardier subsidiary Short Brothers has thrived in the wake of component customer Fokker Aircraft's demise because it has invested $1.12 billion in modernization and continues to be heavily involved in its parent's civil aircraft programs, Shorts Chairman Roy McNulty told McGraw- Hill Aviation Week Group's Show News. McNulty touted the speed of Shorts' recovery since Fokker's collapse, which slashed Shorts revenue 17% as production of Fokker F100 and F70 wings shut down. Some 900 jobs were eliminated.
American Trans Air has hired back its previous president and chief operating officer, John Tague, as president and chief executive. Parent company Amtran made the announcement yesterday, one day after Vanguard Airlines announced that Tague resigned as chairman, chief executive and president. He also was chairman, chief executive and president of Air South. Air South said yesterday it has elected Chief Operating Officer John Affeltranger president and acting chairman.
Cessna appointed Reims Aviation the authorized distributor in France of single-engine aircraft manufactured at its new facility in Independence, Kansas.
Kiwi International Air Lines is up for sale and has a bidder, increasing the likelihood the carrier will emerge from Chapter 11 bankruptcy July 10 with a new owner, a clean balance sheet and a fresh start. "The company can make a profit, and did so in the fourth quarter of 1995 and the first and second quarters of 1996," said Kiwi President and Chief Executive Jerry Murphy. But ValuJet's crash, and the subsequent loss of public faith in low-fare carriers, plunged Kiwi into bankruptcy Sept. 30 and caused it to stop scheduled operations Oct. 15.
Scope-clause provisions in the new American Airlines pilot contract are not of concern in Eagle's decision to buy 70-passenger jets, according to Pappas. The clause limits the overall Eagle fleet to an average of no more than 50 seats. With its existing fleet of Saab 340s and ATRs, plus its hard jet orders, the Eagle fleet would average 46.6 passenger seats. "There will be no violation of the scope," Pappas said.
Air Transport Association Cargo Traffic March 1997 Revenue Ton-Miles (000) March March % 1997 1996 Change Domestic Freight 759,381 724,856 4.8 Mail 160,868 154,724 4.0 Total 920,249 879,580 4.6 International Freight 750,050 636,321 17.9
International Aero Engines describes its V2500 turbofan as the engine of choice on Airbus Industrie's A319/A320/A321 family but is frustrated by its inability to get the engine on Boeing's 737s, President and Chief Executive Barry Eccleston said at Le Bourget. CFM International would argue about the Airbus claim - its CFM56 is on 55% of those aircraft, flown by 45% of the operators - but Eccleston commented that CFMI had a headstart of several years.
Continental Express, launch customer for the EMB-145 at last year's Farnborough Air Show, is "extremely interested" in a 30-passenger-class jet, according to President Dave Siegel, who exercised his option for a second batch of 25 -145s this week in Paris. "The 30-seater has tremendous potential, but we have not convinced ourselves on the economics yet. If Embraer has a decision by August, then we will, too," he said. Fairchild Dornier also is in the hunt, and Siegel says commonality would be nice "but not essential," and the 135 "is still a concept."
Bombardier Aerospace President Bob Brown predicts that consolidation will continue in the regional aircraft market, stating that he believes the segment could ultimately mimic the larger aircraft market where there is essentially just one major airframer in North American and another in Europe. "We think there's further consolidation to come," Brown said in Paris this week, pointing out that the field has already contracted to five airframers from 13.
Northwest has signed a memorandum of understanding with Airbus Industrie for 50 firm and as many as 100 option A319 aircraft to be delivered between 1999 and 2003. Michael Levine, the carrier's executive VP-marketing, said the 125-seat A319 "complements our 150-seat A320s and can serve as the foundation for future needs for replacement and growth." Northwest currently operates 50 A320s and is to get 20 more in 1998 and 1999. John Dasburg, Northwest president, said NWA hopes to finalize the MOU "in the near future."
Saab Aircraft is using its new-found financial freedom - owner Investor AB wrote off nearly $200 million in 340 and 2000 development costs - to offer 2000 customers a new Complete Aircraft Repair and Exchange program (CAREfree) that will reduce direct operating costs by $2 million per aircraft during the first six years of operation. It is a power-by-the- hour-type program that eliminates maintenance risk except for labor and consumables. Saab says the program translates into a savings of up to 25%, compared with 50-seat competitors, including jets.
Exigent International, Melbourne, Fla., is offering Fototag, a bag-matching system that indexes photographs of passengers and the barcodes on their boarding pass and the routing tags on their checked baggage. At check-in, the system takes and stores to memory an instant, video-captured photo of each passenger checking baggage. At the jetway, IATA-compliant barcode information on the boarding pass triggers display of the photo image on a monitor, enabling personnel to doublecheck and match every piece of baggage with an owner.
Sunrock Aircraft, Dublin, an operating leasing arm of Nissho Iwai, Japan, has ordered five 737-600s and two 737-300s and is negotiating for 13 more aircraft.
AAR Allen Group said AAR Allen Aircraft has signed a five-year distributorship consignment agreement with Hamilton Standard, under which AAR will sell surplus parts consigned by Hamilton Standard. AAR Corp. said it has completed acquisition of Cooper Aviation Industries. The operation is being integrated into AAR Allen Group, the company's airframe parts inventory provisioning and management unit, and will do business as AAR Cooper Aviation.
Internet travel service provider Biztravel.com is offering bizReservations 2.0, a reservation service that tries to lead travelers to the most frequent flyer miles. Recommending an itinerary based on past individual preferences, the product proposes a travel plan that will maximize frequent flyer mileage and promotional awards from airlines, car rental companies and hotels. System users also can find the lowest available fares. The software distinguishes between base miles and bonus miles to help a traveler maximize miles.
Aero International (Regional)'s deferral of a decision on developing its prospective 70-seat AirJet transport (DAILY, June 17) will enable the British Aerospace-Aerospatiale-Alenia consortium to assess the project in terms of industry consolidation, partnership opportunities, supplier prices and aircraft design. Chief Executive Patrick Gavin told reporters at the Paris Air Show a launch decision may not come until yearend. In the meantime AI(R) will assess:
Mesa Air Group has named Paul Madden to a vacated seat on its board of directors. Madden, an attorney, replaces Blaine Jones, who had held a board seat since 1984 and was Mesa's chief financial officer from 1984 to 1994. Jones is taking a position with Merrill Lynch.
Greenwich Air Services said it signed a 10-year, $85 million contract with Britannia Airways for repair and overhaul of CF6-80A2/C2 engines and a five-year, $40 million contract with British Midland Engineering for CFM56- 3 engine maintenance. The work on both contracts will be performed at Greenwich's Caledonian facility in Prestwick, Scotland.
DOT is prepared to impose sanctions, approved last summer but not enforced, in response to Japan's refusal to allow Federal Express to launch bilaterally authorized beyond service, Assistant Secretary Charles Hunnicutt told reporters yesterday during a break at a Senate Commerce aviation subcommittee hearing on U.S.-Japan issues. The statement clarifies Tuesday's comment by DOT Secretary Rodney Slater that Japan must act quickly to resolve outstanding cargo issues, or the conflict will be "dealt with quickly on its own."
Fairchild Dornier announced this week orders from Club Vuelos Internos Privados (Club V.I.P.) of Quito, Equador, for two 32-seat Dornier 328s; from Point-a-Pitre, Guadeloupe-based Air Guadeloupe for two new 19- passenger Dornier 228-212 aircraft, and from Air Iceland of Reykyavik, Iceland, for two new 19-passenger Metro 23s.
