Fleet Industries, Fort Erie, Ontario, said it received a $3.3 million repayable investment from Technology Partnerships Canada to enable it to secure a contract from Hyundai Aerospace of South Korea to design tooling and produce wing components for the MD-95. Fleet said the work is expected to create 82 full-time jobs at its facility and among its 30 Canadian subcontractors. Fleet will build aileron and wing tabs, flaps, vanes, forward and aft wing fairings and wing-to-fuselage fillets over the course of the 11-year contract.
FAA issued an emergency airworthiness directive yesterday requiring visual inspections to detect distress and replace faulty ball bearings in GE90 engines on five Boeing 777 aircraft. The AD follows reported ball bearing failures on two British Airways aircraft, neither of which resulted in an engine shutdown. Of the five aircraft affected by this AD, two are operated by BA and three by China Southern.
U.S. officials presented their own proposal for a new bilateral agreement with France yesterday as talks continued in Washington.The first day was spent examining a draft French proposal. The talks are scheduled to conclude today.
Shuttle By United is contemplating new routes from Denver, after expansion to Phoenix and Las Vegas proved profitable after only a month of operation. United lost money on the routes before turning them over to Shuttle. United President John Edwardson noted that future Shuttle expansion "is still going to be west of the Mississippi."
US Airways, still seeking major labor concessions to restructure its cost structure, may have made the process more difficult yesterday by posting record net earnings of $152.7 million. The profits were a dramatic improvement over last year's first quarter loss of $32.3 million. The airline's revenues surged up 20.2% to $2.1 billion, and operating earnings went from a loss of $8.9 million a year ago to $174.1 million in the quarter that ended March 31. US Airways Group revenues rose 12.5%.
National Civil Aviation Review Commission will meet for the first time early next week at FAA, where members will hear overviews of the budget issues confronting the agency. Commission member Linda Barker said, "I would hope the commission will understand that we have a symbiotic relationship to everyone in aviation." Asked about the lack of members representing general aviation, Barker said, "I think there is now some concern that more attention was not paid to broader representation."
Diverse parties involved in civil aviation met for the first time this month at the Montreal headquarters of the International Civil Aviation Organization (ICAO) to coordinate planning for the future Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) systems. CNS/ATM is expected to result in a seamless, integrated worldwide air traffic management system.
Lufthansa Cargo and Boeing yesterday in New York christened a 747 freighter arriving from Frankfurt the "New York" to recognize the carrier's inauguration of 747 freighter service 25 years ago.
U.S. Major and National Carriers Commission Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 19,657,000 8.01 America West 33,417,803 8.16 American 274,972,000 8.31 Continental 90,567,000 7.50
DOT assistant secretary for transportation policy is seeking comments on the future Global Positioning System. The request notes that the Air Force has begun to develop a Future Worldwide Positioning, Navigation and Timing System Capstone Requirements Document (CRD) to address near-, mid- and far- term GPS modernization. The CRD will identify "performance-based, operational requirements" that address military and civil navigation, positioning and timing needs for GPS or future space-based navigation systems.
Deregulation of the U.S. airline industry was never completed, in part because DOT continues to intervene in airline market decisions, Northwest President John Dasburg said yesterday.
DOT has tentatively approved a certificate for niche carrier CityLink Airlines, a startup that plans to operate from Gary, Ind. (DAILY, Nov. 4, 1996). Gary Regional Airport is between Gary and Chicago, and the airline's business plan expects to capture traffic from a catchment area that includes O'Hare and Midway airports.
European Commission has informed the Italian government it should revise its restructuring plan for flag carrier Alitalia, a spokeswoman for Transport Commissioner Neil Kinnock said yesterday in Brussels. The plan includes a cash infusion of about 2.8 trillion lire (US$1.64 billion).
Moscow-based carrier Orient Avia applied for a renewal of its exemption authority for operations between Russia and the U.S. Orient Avia said it received authority from DOT a year ago to serve the Hawaii-Vladivostok market, an unserved route. While obtaining its approvals from FAA, the carrier was advised of "obscure federal legislation" that bars all new service to Hawaii by aircraft that do not meet Stage 3 noise-reduction requirements. The carrier had planned to serve the route with a Stage 2 Il-62. "This legislation was enacted to protect certain U.S.
American Bar Association Forum on Air and Space Law will present four roundtable discussions - on antitrust concerns, joint ventures, FAA enforcement and global alliances - at its annual meeting June 12-13 in Seattle. Boeing Chairman Phil Condit will give the keynote address. For more information, call 312-988-5794.
United, Continental and Delta have applied for seven weekly frequencies becoming available Dec. 15 for U.S.-Chile service (DAILY, April 10). The trend for strong demand in Latin American markets continues, with all three carriers seeking the total seven frequencies offered. United wants to extend an existing Miami-Sao Paulo flight to Santiago. United said the aircraft that would be used for the service is currently "parked on the ground in Sao Paulo for several hours every day," leaving it available for Sao Paulo-Santiago rotations.
Senate Commerce aviation subcommittee is planning a hearing May 15 on airline competition issues, including predatory pricing and barriers to entry for low-cost carriers. The same issues emerged at a conference by the Business Travel Contractors Corp. yesterday in Washington. BTCC, founded to make business travel more affordable, originally proposed a net fare program that would charge a standard fare for a set length of haul.
Midwest Express posted record revenue, operating income and net income for the first quarter, buoyed by strong yields and passenger volume. Revenue jumped 20% to $79.9 million, while operating income soared 46.6% to $6.5 million. Net income reached $4.2 million, up 49.2%. "Revenue yield increased 10% from a year ago, and traffic was up 7% on a 12% capacity increase," said Timothy Hoeksema, chairman and chief executive. He cited the airline's seasonal service to Florida and Phoenix and new year-round service to Orlando as reasons for the gain.
American has selected Dallas-based Corgan Associates program manager of its new 47-gate terminal at Miami Airport and this week called on other airlines to drop their efforts to block the project. The airline also has named 15 contractors for the design and development phase, all based in the greater Miami area. DOT last month cleared the fees imposed by the Dade County Aviation Department to help finance the project (DAILY, March 20).
U.S. Major and National Carriers Rental Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 44,683,000 14.80 America West 74,131,406 17.74 American 260,042,000 7.40 Continental 162,098,000 12.71
First quarter billings for general aviation manufacturers hit a record $886 million, an increase of 60% from the first quarter of 1996, the General Aviation Manufacturers Association reported. The performance was powered by strong jet deliveries, up 40% over last year to 63 units, the most since any first quarter since 1982, GAMA President Ed Bolen said. Total shipments increased to 237 units, up from 225 units the same quarter a year ago.
Reno Air's flight attendants narrowly voted in the International Brotherhood of Teamsters as its new representative. The group of employees previously was unrepresented. The 442 flight attendants eligible to vote cast 280 ballots for the IBT and 10 for the Association of Flight Attendants. Thirteen votes were counted as invalid and one was cast for another union.
InVision Technologies said it has received orders from three repeat customers for seven CTX 5000 explosives detection systems. The customers are Israel Airports Authority for two, El Al for three and Manchester Airport, U.K., for two. The units are scheduled to be shipped over the next 12 months under terms of the $6.7 million in contracts. The airport authority orders are in response to the growing number of passengers using Tel Aviv Airport. El Al units will be placed at various airports, giving it a total of four devices.
Northwest wants DOT to delay renewing Air-India's exemption for India- Chicago service until India approves third-country code-share applications by Northwest and United. Air-India seeks to renew an India-Chicago routing via Toronto, London, Paris and Frankfurt, with local traffic rights between Chicago and London, Frankfurt and Paris.
Tower Air's first quarter earnings improved, slightly, but the airline still lost $5.4 million, compared with $8.1 million in the prior-year period. Operating revenues dropped 9.1% to $78 million. Expenses fell 14% to $85 million. During the quarter, Tower's scheduled passenger traffic shrank 26.5%, while capacity dropped 25.5%. The carrier retrenched from the India market and stopped serving Brazil in March.
