FAA issued an airworthiness directive on McDonnell Douglas's newest transport, the MD-90, that sets compliance times for inspecting the 15 aircraft in service for fatigue cracking of principal structural elements.
TWA will increase by 60% the number of first-class seats in its narrowbody fleet in an attempt to attract more business travelers and upgrade more full-fare business passengers. Terming the first-class expansion the "centerpiece" of new perquisites it is offering business passengers, the airline intends to announce other enhancements during the summer. "When our fleet conversion is completed, many more business-fare travelers seeking upgrades will have two choices," said Rod Brandt, senior VP- marketing and planning.
Dismantling Boeing's "exclusive" contracts to supply Delta and American with aircraft for 20 years "would be a step in the right direction, but not sufficient" to win the European Commission's authorization for the company's merger with McDonnell Douglas, a European Union official said yesterday in Brussels. The long-term contracts are included in the EC's "statement of objections" sent to Boeing Wednesday as guidance on how the merger proposal can be made acceptable in Europe.
Comair Holdings earned a net profit of $75.4 million, or $1.70 per share, for its fiscal year, ended March 31. The per-share figure is 25% more than the previous fiscal year's $1.36. Operating revenues for the fiscal year totaled $563.8 million, versus $463.3 million in the prior period. For the fourth quarter, net profit totaled $19.4 million, or 44 cents per share, compared with $16.2 million, or 37 cents per share, in the prior period, on revenues of $149 million, up from $123.9 million.
DOT granted for 179 days Japan Airlines' application to switch gateway designations so it can fly seven combination frequencies to Kona, Hawaii, while maintaining three flights a week to Atlanta. A 1985 memorandum of understanding permits JAL to fly seven times a week to Atlanta; a 1989 MOU permits it to fly three times a week to Kona. Northwest opposed JAL's bid due to its continuing dispute over beyond-Japan frequencies, and Hawaii parties supported it. United advised against dragging Japan's third and fourth freedoms into a dispute over fifth-freedom beyond rights.
America West said yesterday it will add service from its Columbus, Ohio, hub to Miami, Fort Lauderdale, West Palm Beach and San Francisco, bringing to 17 the number of cities it serves nonstop from the Midwest. The carrier will launch the Florida service Oct. 26 using 737-300s with eight seats in first class and 124 in coach. The San Francisco service will begin in the first quarter of 1998, after America West acquires additional aircraft. America West said it is central Ohio's dominant carrier, with 36 daily departures from Columbus.
Composites Aquitaine of the Sogerma Maintenance Group of Aerospatiale will produce the baggage and clothes storage units for the 12 ATR 72-210s recently ordered by American Eagle, Sogerma announced. The company said the contract represents 3,500 hours of labor and turnover of about four million French francs (US$701,200). Delivery of the first of the 12 sets is scheduled in mid-June, the second in July, and the next five before the end of the year, with the remainder at a rate of one set per month by May 1998.
John Dasburg, president and chief executive officer of Northwest, will discuss airline economics, passenger facility charges and international aviation on this week's Aviation News Today, to be broadcast Sunday on Washington's NewsChannel 8 from 12:30 a.m. to 1 a.m. and 1:30 p.m. to 2 p.m.
SIA Group, parent of Singapore Airlines, posted a net profit of $714 million in 1996, 2% less than in 1995. Group revenues reached $5 billion, up 2.1%, and total assets rose 7.2% to $10 billion. Pre-tax profit was $646 million (DAILY, May 19). Group results include maintenance and catering operations.
United Aero Services said it plans to complete by June 15 the design of a modification kit that will cure deficiencies in the cargo floor structure of 727 freighters and comply with FAA's pending proposed airworthiness directive on the aircraft. UAS said it expects to offer a modification kit later this year that will recover most or all payload capability that otherwise would be lost under FAA restrictions. Floor structure modification kits will be available "quickly" after FAA approval, UAS said. The 9-G barrier and the cargo door structure also will be revised.
The world's regional-aircraft builders will deliver 7,856 units during the next 20 years, according to Allison Engine Company. Ken Roberts, Allison's strategic planner, said that number is more than twice the number of aircraft to be retired in the 1997-2026 period.
While industry executives acknowledge that the downturn in demand for the 19-passenger airliner in the U.S. continues, they maintain that the market is healthy and predict it will not disappear in the near future. The DAILY spoke with several of the executives, from airframers and airlines, at the Regional Airline Association convention in Reno earlier this month.
R. Dixon Speas, a veteran airline consultant, called for an annual safety audit of all U.S. airlines and the creation of a Flight Standards Safety Board to collect and disseminate the results. Speas said the board could include representatives of airlines, manufacturers and others as deemed necessary, and also could become a center for safety information and data collection. Speas spoke in Washington, where he received a Golden Eagle Award from the Society of Senior Aerospace Executives.
Great Lakes Aviation reported a net loss of $4.8 million, or 63 cents per share, in the first quarter of 1997, at the same time as it was announcing discontinuations of service in the East and Southwest. The carrier, which suspended operations under FAA pressure last weekend, also recently said it had reached an agreement to cancel operations as a Midway Connection affiliate Nov. 1.
India's state-owned aircraft maker Hindustan Aeronautics Ltd. (HAL) and Aviazapchast Public of Russia plan to form a joint-venture company in India to manufacture spares for Russian aircraft, HAL officials said this week. The company also will set up a spares warehouse. Because the company plans to make and deal in military aircraft spares, the negotiations are being monitored by India's defense ministry and the Indian Air Force, HAL sources said.
Boeing's planned record production of 43 aircraft per month during the second quarter of 1998 (DAILY, May 22) is made up of 24 737s of all models, five 747s, five 757s, five 777s and four 767s. The rates for the 737, 747 and 757 are higher than those planned for the first quarter. The 767 rate is unchanged and the 777 rate falls off from seven per month, capacity for the type. Boeing expects to deliver about 340 aircraft this year.
Thai Airways International ordered four A330-300 and five A300-600R aircraft from Airbus Industrie. Deliveries of the A300s will begin in the first quarter of 1998, and Thai will take its first A330 in the second quarter of that year. Both types will be powered by Pratt&Whitney PW4000 series engines. The A300s will be configured for 261 passengers in two classes and the A330s for 317 passengers in two classes. The carrier now has placed 45 orders for Airbus widebody aircraft.
Cargo carrier TransContinental Airlines applied for authority to operate a long-term wet-lease for Ecuador's Aerocomercial de Transportes y Rutas (ATR), starting about Sept. 15. FAA rates Ecuador as a Category 2 country, so ATR cannot start its own service to the U.S. TransCon plans to fly once a week on a Miami-Quito-Guyaquil-Miami route, using a DC-8. Still pending are separate ATR applications for a foreign air carrier permit and exemption authority to fly all-cargo charters between Ecuador and the U.S.
All Nippon Airways continues to plan vigorous international expansion and shares Japanese government concern that the U.S. is not focusing on positive aspects of Japan's last offer in bilateral talks in Honolulu, an ANA official told The DAILY. After ANA President Seiji Fukatsu resigned (DAILY, May 14), the Japanese press reported speculation that the carrier would scale back expansion and Japan would stop pushing ANA rights in bilateral talks.
UPS purchased the international express division of Air Courier, its authorized contractor in Chile, with which it has operated since 1991. Air Courier will continue to represent UPS in Chile.
The European Commission yesterday sent Boeing its statement of objections to the company's proposed merger with McDonnell Douglas. Competition Commissioner Karel Van Miert has described talk of a trade war over the issue as "nonsense," but the commission seems unlikely to accept the deal as it is currently structured.
United wants an immediate grant of 14 weekly overflight frequencies between Europe and the Indian subcontinent, governed by the U.S.-Russia bilateral air agreement. Last week, FAA dropped its prohibition of operations by U.S. carriers flying through the Wakhan Corridor over Afghanistan, an area barred to the carriers during that country's civil war. United's daily scheduled service in both directions between London and Delhi previously was forced to navigate around the area, increasing flight time and operating costs.
US Airways is considering purchase of a regional jet for its wholly owned Express operators - three of the nine - Chairman Stephen Wolf told shareholders yesterday. He said the company is talking with two manufacturers but did not identify them.
Aeroporti di Roma may float shares on the Italian stock market in mid-July, according to a request filed with Italian stock exchange authority Consob last week in Rome. The state-owned holding company Istituto di Ricostruzione Industriale (IRI) holds 73.58% of Aeroporti di Roma, which operates Rome Leonardo da Vinci Airport. IRI said the size of the stake to be sold would be between 25.62% and 49%. Aeroporti di Roma's shareholders will hold an extraordinary meeting June 2 to adapt the company's statutes to the upcoming privatization.
Pieter Bouw, president of KLM for six years and with the airline for 30, resigned yesterday, saying the time was right for new leadership. The KLM Supervisory Board said it intends to support KLM Managing Director and Chief Operating Officer Leo van Wijk to succeed Bouw and will name Peter Hartman a managing director. Bouw will leave Aug. 5, the date of KLM's annual meeting, and partner Northwest yesterday issued a four-line statement wishing Bouw well.
