Aero International (Regional) has signed an agreement with Newcourt Credit Group that lays the groundwork for an aircraft leasing vehicle. The leasing vehicle is intended "to provide, when appropriate, preferred lease financing on ATR's family of aircraft," AI(R) said. AI(R) estimated the world market for turboprop commuter aircraft in the 40- to 70-seat range, both new and used, at approximately $1.5 billion in 1996, with ATR aircraft accounting for about half of that market.
First annual review of FAA's new system for acquiring goods and services shows it is saving time and money for the agency and bidders but could do more, George Donohue, associate administrator for research and acquisition, said yesterday. The internal review found the reforms cut by half the time needed to award contracts of $100,000 or more, and industry executives said they saved 30% to 40% over previous bid and proposal costs.
American and Aero California are fighting Continental's suggestion that DOT delay approval of their code-share application until the U.S. and Mexico negotiate code-share provisions into the bilateral. The agreement currently does not expressly permit code shares, which are approved as extrabilateral exemptions. Continental and other carriers are concerned about linking American and Mexico-based Aero California in transborder markets. Mexico is one of the most open of regulated Latin American markets but can limit the number of designated airlines on routes.
The European route network for the Dornier 328 high-speed turboprop has grown to more than 40 destinations in nine countries since the aircraft entered service in October 1993. Launch customer Air Engiadina of Switzerland now operates five of the 30- to 32-passenger aircraft under two code-sharing agreements. Since February, the carrier has served Amsterdam from Berne on behalf of KLM. Under an agreement with Swissair and subsidiary Crossair the carrier operates from Zurich to Genoa, Milan and London City Airport.
Rolls-Royce's experience in recovering from Trent 700 inflight shutdown problems offers lessons for engine manufacturers, Rolls-Royce Aerospace Managing Director Colin Green told McGraw-Hill Aviation Week Group's Show News. The shutdowns led Cathay Pacific and Dragonair to ground their Airbus A330 aircraft briefly, and Rolls's fix for it will lead to "a greater emphasis on condition monitoring of engines in service," said Green.
...Embraer is poised to join the 70-seat jet market if AI(R) backs out. Mauricio Botelho, chief executive of the Brazilian manufacturer, told The DAILY at the Paris Air Show this week that he believes there is a market for the aircraft, "but not for three manufacturers." Bombardier already has already entered the fray with the CRJ-700. Of higher priority for Embraer is the proposed 37-seat EMB-135 regional jet - a shortened EMB-145 - that it may launch by the end of the summer. There is strong interest in a 30-passenger-class jet.
Raytheon Aircraft delivered two Beech 1900Cs to Kenai, Alaska, carrier SouthCentral Air. SouthCentral, which holds options for four more 1900Cs, will operate the aircraft in scheduled service among Kenai, Homer and Anchorage. The aircraft will enter service this month.
American Eagle and Bombardier Regional Aircraft cannot agree why Eagle selected the EMB-145 over the CRJ in its order for 50-seat regional jets. Eagle ordered 42 firm -145s plus 25 options, while at the same time opting for 25 CRJ-700s plus 25 options for its 70-seater. "It was primarily pricing," said Canadair Aerospace President Bob Brown, during a somewhat contentious news conference. "We took a deep, hard look at commonality," said Eagle Senior-VP Planning Pete Pappas, who did not mention price.
The 88 chief executive members of the World Travel&Tourism Council have asked government leaders attending the Summit of the Eight, formerly known as the G7, in Denver today through Sunday consider travel and tourism when they discuss job creation.
U.S. Customs Service said one million users have visited its World Wide Web site, which is geared toward world travelers, importers, exporters, law enforcement officers and the international business community.
Bosnia and Herzegovina have chosen Northrop Grumman's Electronic Sensors and Systems Division to provide an advanced air traffic control system. The company will supply a stand-alone monopulse secondary surveillance radar, an ATC center for en route operations and associated VHF and microwave communications. The surveillance radar, upgradable to full Mode S capability, will be operated from a remote site. The VHF system will come from Park Air Electronics, Northrop Grumman's wholly owned British subsidiary.
United Express affiliate Atlantic Coast Airlines is pursuing a $50 million debt offering, plus up to $7.5 million to cover over-allotments. The proceeds of the offering will be used to support the introduction of ACA's regional jet fleet, for the repurchase of 1.46 million shares of company common stock from British Aerospace, the retirement of higher interest debt and general corporate purposes. ACA announced in January it will acquire 12 50-seat Canadair regional jets, with the first entering service in September. It placed an option for another 36 jets.
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.
