U.S. Major and National Carriers Maintenance Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 28,596,000 9.47 America West 48,744,175 11.66 American 348,182,000 9.91
Bomb threats forced the evacuation and closure of London Gatwick Airport this week, snarled air service at London Luton and Heathrow airports and shut four London rail stations. Gatwick was closed until about 6 p.m. Monday and most airlines serving the airport had no choice but to cancel service. "We lost all of our flights at Gatwick - about 100 flights were canceled," said British Airways spokesman John Lampl. American said several flights were disrupted and one had to be diverted to Birmingham.
Lufthansa will expand its service in Asia beginning April 28 with first-time joint flights with Thai Airways to Bangladesh, Brunei, Laos and Nepal. The services will be routed from Munich via Bangkok. On the same day, Katmandu will be opened to Lufthansa passengers via Bangkok. For the summer season, the two airlines will offer 22 nonstop, code-share flights per week from Frankfurt or Munich to the Thai capital.
Opponents of the proposed American-British Airways alliance gained an ally yesterday in the Senate Judiciary antitrust subcommittee, which held hearings on the partnership. Its leaders want Attorney General Janet Reno to recommend that DOT hold a formal evidentiary hearing into the alliance. DOT has yet to decide (DAILY, March 25). Virgin Atlantic's Richard Branson, who testified yesterday, said in a separate news conference that a Labor victory in upcoming elections could alter U.K.
Northwest yesterday reported first quarter net income of $64.6 million, up 21% the same 1996 period, as healthy domestic and international traffic offset negative fallout from bad weather, higher fuel prices and a weak Japanese yen. Revenues rose 4.9% to $2.38 billion and expenses 5.2% to $2.24 billion. Operating margin was 5.7%, down from 5.9%. "Our operations during the quarter were impacted by extremely difficult weather conditions," said President John Dasburg. The airline had more "weather days" than in any other year this decade.
The strike that has been disrupting British Airways' French subsidiaries TAT and Air Liberte for a fortnight "will last another four weeks if necessary," said union spokesman Jean Immediato in Paris. The cockpit and cabin crews of both companies are protesting plans to align TAT's work and pay conditions with those of Air Liberte, considered to be the lowest among French airlines, and they remain unsatisfied after talks with management. Both carriers were forced to cut 60% of their flights on weekdays and 35% on weekends.
Argentina, Brazil, Paraguay, Uruguay, Chile and Bolivia are ripe markets for the 50-seat regional jet or smaller regional aircraft, according to Jose Martinelli, a Brazilian economic consultant for EURO Latin. The six nations signed a pact in December to facilitate travel in certain city-pairs in the region. The pact says other countries may join at any time.
French tour operator Nouvelles Frontires confirmed last week in Paris its intention to buy domestic airline AOM, currently owned by a subsidiary of troubled French bank Credit Lyonnais. Nouvelles Frontires was a candidate for the purchase of Air Liberte, which was bought by British Airways in 1996. Jacques Maillot, the tour operator's chairman, opposes Air France's alleged plans to take over AOM.
America West posted a record $13.95 million net profit in the first quarter, as operational and revenue improvements aided its bottom line. But the profit was up just 1.6%, compared with $13.73 million net earnings in the first quarter of 1996. The airline's biggest improvement was in lowering unit costs in the face of higher fuel expenses. Operating cost per available seat mile declined to 7.40 cents from 7.65 cents, even though the cost of a gallon of jet fuel rose 24.7% to 75 cents from 60.2 cents. Excluding fuel effects and fuel taxes, CASM would have dropped 6.7%.
Uzbekistan Airways has ordered an Airbus A320-300 powered by Pratt engines for delivery in May 1998. It also plans to purchase two A310s it has been operating under a lease agreement the past four years.
Northwest and Garuda Indonesia have signed the first alliance between the Jakarta-based carrier and a U.S. airline. The commercial cooperation agreement will include code sharing on flights across the Pacific and on Garuda's and Northwest's domestic flights, as well as aligning schedules, a computer reservations system link and through-airport check-in. The move enables Northwest to serve Jakarta directly while it awaits approval to operate Tokyo-Jakarta. The Japanese government recently rebuffed Northwest in its effort to serve the Indonesian capital from Japan.
U.S. Major and National Carriers Labor Expenses Fourth Quarter 1996 % Of Total Operating Systemwide Expenses Alaska $ 85,316,000 28.26 America West 90,562,647 21.67 American 1,152,014,000 32.80 Continental 316,345,000 24.80
FAA plans to fine Aerovias Colombianas $79,000 for allegedly failing to follow required maintenance inspection schedules and operating with incomplete maintenance records. The carrier has 14 days to respond to a civil penalty letter.
The Dutch government opened April 21 its new "Air Safety Counter," an experimental information switch-board designed to keep the public aware of hazardous situations by telephone, fax or e-mail. Preparations for the center began last year and will include information about risky air carriers suspected of failing to fulfill international standards regarding equipment, aircraft maintenance or crew training.
United's first quarter net profits vaulted up more than 100% to $215 million, on a fully distributed basis, as revenue, yield and domestic operations improved significantly. Operating revenues grew 10% to $4.1 billion from $3.7 billion. "We are outpacing the industry in revenue growth and in unit and high-yield revenue," said President John Edwardson. Yield rose 5% to 12.8 cents from 12.2 cents. Operating cost per ASM rose 3.2% to 9.3 cents from 9.0 cents, with half that increase due to higher fuel costs.
AeroPeru will increase service between Los Angeles and Lima after success on the route during the last two years. It will add two nonstop flights June 2, bringing its number of weekly nonstops to four. The service connects through AeroPeru's Lima hub to several cities in South America.
U.K. airports handled 5% more passenger traffic in 1996 than in the previous year, and movements also increased 5%, according to figures just published by the U.K. Civil Aviation Authority. The CAA also issued on- time statistics for the six main U.K. facilities, which showed improvement in the performance of charter flights but a decline for scheduled services. Despite this, performance still was better than when these statistics were introduced in the late 1980s. Since that time, air transport movements rose some 20%.
Joint Committee on Taxation staff believes it "may be impossible" to show that an alternate aviation tax structure allocates costs better than the current system.Citing the Coopers&Lybrand and GRA studies, the panel said in its review of fiscal 1998 revenue proposals that FAA has no comprehensive cost accounting system and that more than 50% of FAA costs are either joint or common costs to multiple functions.
Continental, vying with American for a stake in Aerolineas Argentinas, said American would take control of 70% of the U.S.-Argentina market if it is approved to acquire a large Aerolineas stake, Chairman Gordon Bethune told the International Airline CEO Conference yesterday in Miami. Bethune said last week he expected a decision within a few weeks (DAILY, April 21), but conference organizers suggested it may come sooner.
AlliedSignal Aerospace said its new 131-9-A auxiliary power unit for Airbus single-aisle aircraft completed its critical design review and first engine test ahead of schedule. The APU is expected to provide Airbus operators "significant improvements in reliability and cost of ownership," the company said. Projected production rate is 300 units a year by 2000.
R. Dixon Speas, veteran aviation consultant, has been named the recipient of the Society of Senior Aerospace Executives Golden Eagle Award. SSAE will present the award May 15 at a luncheon at the Army&Navy Club, 17th and Eye Streets N.W., Washington. A reception will start at 11:45 a.m. and the luncheon at 12:30 p.m. For reservations, call 301-652-2666.
FAA said it plans to fine Longview Inspection, Sulphur, La., $62,500 for allegedly "mislabeling and mishandling" acid-filled batteries it offered for air shipment. The agency also plans to fine Stark Sales of Bell Gardens, Calif., $82,500 for allegedly improperly packing, marking and labeling five boxes containing plastic containers of flammable resin solution.
Atlantic Southeast Airlines yesterday announced an order for 30 Canadair Regional Jets from Bombardier with options for 60 more. Export Development Corp. of Canada will provide financing. ASA is an Atlanta-based carrier which offers service to 22 cities from a second hub in Dallas.
UPS VP Robert Frenzel said his reaction to all the talk about code- sharing alliances expanding international service was "been there, done that. We've always had to work with other people" to deliver goods, whether it was "other carriers, train operators, freight forwarders or gondolas." Speaking at last week's Asian Open Skies conference, he and other cargo officials joined passenger airlines in calling for the continued expansion of open skies and other policies to sweep away regulatory limits on their business.
Air Transport Association Cargo Traffic February 1997 (000) February February % 1997 1996 Change Domestic Freight 670,708 656,621 2.1 Mail 143,208 141,317 1.3 Total 813,916 797,938 2.0 International Freight 606,399 544,749 11.3
