Austrian Airlines' operating profit in 1996 was 101.6 million Austrian schillings (US$8.13 million), a gain of ATS46.5 million ($3.6 million) or 84.4% from 1995. Its net profit, after deducting 1995 losses, was ATS25.9 million ($2.1 million). Its operating revenue rose 8.8% to ATS13 billion ($1.04 billion) for the year. The airline predicts a better year in 1997. The number of passengers in the first quarter rose 9.3% from the first three months of 1996.
Amtran Inc., parent of American Trans Air, yesterday reported a 45% increase in first quarter pre-tax income to $6.3 million. Net income rose to $3.2 million from $2.4 million. Total revenue dropped 6.2% to $194 million. Charter revenue rose to $100 million, but the increase was not nearly as great as the decline in scheduled service revenue, to $82 million.
Aeroflot has a long way to go to overcome its image as an airline with poor reliability and terrible customer service. It ranks last in a new Zagat survey of 61 airlines of the world, and customers say it is "quicker than Kevorkian" and "Russian roulette may be safer." Customers complained that the equipment is old, they were served only apples and water, and lavatories were supplied with a single, community towel.
British Airways and Canadian Airlines International said they will greatly expand the joint service they offer across the Atlantic and within Canada. Effective May 14, the two carriers will begin code-share service on the Toronto-London Heathrow and Vancouver-London Heathrow routes. Canadian will launch service from Toronto using a 767, complementing daily 747 flights by BA. On June 1, Canadian will fly six weekly flights from Vancouver, joining a BA 747 on the same route. The two will offer 23 weekly nonstop code-share flights from Toronto and 13 from Vancouver.
Parks College of Saint Louis University said it will integrate flight training with its Aviation Science curriculum, incorporating flight instruction fees with standard tuition charges. Qualified students beginning in August will receive all necessary flight instruction related to their degree at no additional cost, the school said.
Delta has reduced business fares to selected markets from Cincinnati and Atlanta. From Cincinnati, fares 25% off the unrestricted coach price are to Allentown/Bethlehem/Easton, Buffalo, Newburgh and Syracuse. The reduced business fares from Atlanta are available to Augusta, Columbia, Greenville/Spartanburg, Knoxville, Montgomery and Newburgh. A three-day advance purchase is needed.
A group of Russian airlines, meeting with U.S. government and industry officials this spring, covered environmental, legal and market issues during a fact-finding tour in the U.S. "They came to learn about our system," a DOT official said. The Aeroflot Airtransport Operators Association discussed various topics with DOT, including how U.S. competition laws work and how airlines survive in a highly competitive environment. "They wanted to learn as much as they could about a market- driven aviation system, which is kind of new for them," he said.
United has extended the deadline for purchasing summer sale tickets to May 16 from yesterday. Fares are as much as 40% off the 21-day advance price and require a 14-day advance purchase. Tickets are good for travel through Oct. 8.
Airlines Reporting Corp. reports that total travel agent sales processed in March rose 10% from March 1996 to a record $7.216 billion. Domestic fares for the first three months of 1997 were up 7% to $12.311 billion, and international fares rose 13% to $4.716 billion. Commissions grew 4% to $699.7 million, with international commissions up 12% and domestic commissions down 2%.
Geneva Cointrin Airport is planning to invest more than 400 million Swiss francs (US$280 million) in its long-term expansion and modernization program despite uncertainties linked to air traffic liberalization and Swissair's decision to move its international traffic to Zurich Kloten. The company managing the airport reported a sharp drop in profits and traffic last year, but Board President Jean-Philippe Maitre said Cointrin is not in danger and has reached "cruising speed." He stressed that the airport serves a wide region of western Switzerland and Alpine France.
UNC yesterday posted first quarter sales of $261.8 million, up 85% from $141.5 million. Operating income grew 125% to $13.3 million and net earnings 333% to $2.9 million from $474,000. Chairman Dan Colussy attributed the performance to the acquisition of Garrett and "robust growth" in the aviation industry.
Royal Jordanian and TWA have signed a code-share agreement for service from seven U.S. cities, via New York Kennedy and Amsterdam, to Amman, Jordan. Flights are expected to begin in late summer. The U.S. gateways are San Francisco, Los Angeles, Chicago, Washington, Miami, Detroit and St. Louis.
Former Carnival Air Lines Chairman Reuven Wertheim has signed on with Tower Air as managing director-Europe, with offices in New York and Athens. Tower will launch twice-per-week New York-Athens-Tel Aviv service June 15. Wertheim has been "mandated to establish and develop business relationships with key European tour operators, stimulating Tower's charter business," according to a statement from Tower. The carrrier intends to grow its Israel service and expects the tourist market there to improve. Wertheim spent 23 years as an El Al executive.
United's "concentrated" contract talks with the Association of Flight Attendants may be extended beyond the original cutoff date of today if they show signs of progress. After two and a half weeks of talks in Honolulu, AFA said yesterday barring an agreement today, it will continue its CHAOS campaign through May. The campaign involves informational picketing throughout United's system worldwide. AFA and management this week will tackle compensation, international domiciles, retirement, work rules and language qualifications.
FAA ordered operators of the Eurocopter MBB-117 helicopter to ground the air-craft until the tail booms can be inspected for cracks, loose rivets or other anomalies. The order follows a fatal accident last week in New York in which the tail boom, which holds the stabilizing rotor, broke off. Authorities determined the failure was caused by fatigue cracking and, subsequently, cracks were found on three more of the helicopters. The manufacturer and the U.S. distributor immediately sent alert notices to operators.
Amadeus Global Travel Distribution has formed a new company, Amadeus Ukraine, under a partnership with Ukraine International Airlines and the Ukrainian Civil Aviation Computer Centre (UCACC). The Kiev-based company will handle all marketing, technical, training and customer service functions for travel agencies in the area.
DeCrane Aircraft Holdings reported revenues jumped 102% to $26.1 million for the March quarter, while operating income grew to $2.8 million from a $100,000 loss in the previous comparable quarter. Net income was $600,000, compared with a net loss of $1.3 million.
Continental is facing an August deadline for exercising 25 of its 175 options for the EMB-145, according to a company filing.If the carrier does not buy the airplanes, the rent associated with the aircraft rises by $33.6 million over the 16-year life of the leases.
Austrian Airlines ordered four Airbus A330-200s yesterday, confirming an earlier announcement. Partners Swissair and Sabena also had placed orders for the aircraft. Deliveries to Austrian will begin in August 1998.
American and Transportes Aereos Meridionais (TAM) of Brazil signed a cooperative agreement yesterday to code share between the U.S. and Brazil, beginning Aug.1 subject to government approval. American would place its AA code on TAM-Meridionais service from Sao Paulo to other destinations in Brazil and TAM-Meridionais would place its JJ code on American flights from Sao Paulo to Rio de Janeiro and on service to Miami, New York and Dallas/Fort Worth, and to several cities beyond the three U.S. gateways.
FAA's public meeting tomorrow on the overflight fees it plans to impose May 19 will draw opposition from the Air Transport Association of Canada and the International Air Transport Association, which fault both the structural basis for the new fees and the process by which FAA made the rule.
The pace is picking up for the introduction of Central American open skies, with El Salvador and Honduras initialing agreements Monday and Guatemala last Friday, all at the embassy level in the respective countries. Panama was the first in the region. U.S. momentum is growing for a bloc of Central American nations to initial such agreements during next week's summit bringing together President Clinton and Central American heads of state in Costa Rica(DAILY, April 10).
Asian airlines continue to receive more accolades than other world carriers for their international service, according to a new Zagat Survey of 10,000 frequent flyers. Singapore Airlines was ranked the best airline in the world for the fourth consecutive year, followed by Cathay Pacific, Swissair, Japan Airlines, Thai Airways, All Nippon Airways, Qantas, Air New Zealand, SAS and Virgin Atlantic. Luxury airline Midwest Express outranked other carriers in U.S. domestic service.
Calgary-based startup WestJet Airlines said yesterday it earned a net profit during the first quarter of 1997, but it did not issue earnings or revenue figures. WestJet said, however, that it is the first scheduled jet Canadian airline to post a first quarter profit in the last 10 years. The airline flew 110,603,000 available seat miles and 77,925,000 revenue passenger miles, which resulted in a load factor of 70.5% during the period.
