Eight regional airline stocks started off the year on a slightly negative note with the average price per share dipping by 15 cents to $12.09. The average ranged from a high of $13.06 on Jan. 20 to a low of $12.01 on the 29th after closing out 1996 at $12.24. United Express Atlantic Coast stock rose $3.81 to close the month at $16.06. Delta Connection Atlantic Southeast increased 63 cents to $22.50, while United Express Great Lakes Aviation issues rose a quarter to $2.75. Delta Connection Comair's stock price dropped $3.63 per share.
Frank Kruesi, DOT assistant secretary for transportation policy, has asked that his name be withdrawn from consideration as FAA administrator, sources said yesterday.
FAA this week proposed to provide relief to operators in Alaska from certain dispatch requirements called for in the "Commuter Rule" that takes effect March 20. The proposal would create a new Special Federal Aviation Regulation (SFAR) that would address requirements to show that a two-way air/ground communications system is available at all points. FAA said "the lack of infrastructure or appropriate technology" prevents operators from having continuous communications. FAA proposed to require two-way air/ground communications "to the maximum extent feasible."
Reno Air has "shared some thoughts" with DOT on predatory pricing, an airline spokesman said, but it has not filed a formal complaint with the department. In addition to handling Frontier Airlines' complaint against United, DOT has been collecting data from several airlines, which it declines to identify. ValuJet says it is one of them (DAILY, Jan. 30).
Commercial users would pay $4.9 billion and the general aviation community nearly $800 million per year for air traffic services if FAA shifts to a system of user fees to finance its operations, according to estimates in the draft of a study conducted for top FAA policymakers by Gellman Research Associates. According to the study - The GRA Inc. FAA FY 1995 Cost Allocation Study, a portion of which was obtained by DAILY affiliate ATC Market Report - it costs FAA $6.307 billion per year in fiscal 1995 dollars to provide air traffic services.
International Transport Workers Federation will launch a campaign against sex discrimination in civil aviation March 8, International Women's Day. According to ITF News, the drive will last all year, focus on issues raised by trade unions with the support of women's groups, and distribute information to passengers. Airlines around the world will be graded, and examples of good and bad treatment of female employees will be publicized at the end of the year.
DOT plans to issue proposed changes to the essential air service (EAS) program in the next several months in light of last year's legislation giving EAS up to $50 million a year, beginning in fiscal 1998, which starts in October. The department is expected to focus on enhanced service to existing EAS markets rather than adding new communities to the program. The program was funded at $25.9 million in fiscal 1997. In the future, any portion of the $50 million not spent on EAS would go for safety-related grants to rural airports.
McDonnell Douglas issued Tracor Flight Systems a 10-year, $27 million contract to produce the y-barrel assembly for the MD-95. The agreement provides for Tracor to build more than 400 assemblies, which house the main landing gear and fuel, hydraulic and electrical lines in the lower part of the fuselage.
Dewi Rowlands has been appointed VP-sales and marketing for British Aerospace Asset Management Inc.-Turboprops. Rowlands was first employed at British Aerospace in 1961 as a sales engineer.
United's January traffic rose 7.6% on 6.8% more capacity, which pushed load factor up 0.5 percentage points to 67%. Domestic traffic increased 7.1% "even though yields were higher," said John Edwardson, president and chief operating officer. Hawaii led domestic statistics, as revenue passenger miles were up 20% after the carrier added 14% more capacity, producing an 85% load factor. The Pacific load factor was 75.1%.
Mountain Air Express (MAX), the new regional subsidiary of Western Pacific, found itself at a competitive disadvantage out of the starting gate. The Part 121 carrier was subject to drift-down charts - terrain clearance requirements with one engine inoperative and engine anti-ice on - that limited the 30-seat Dornier 328 to as few as 18 passengers. Part 135 (until March) carrier Lone Star (d.b.a. Aspen Mountain Air) 328s had no such restrictions and could fly direct routings.
In what was called a "historic action," a federal judge in Tucson has ordered FAA to explain under oath where the agency gets its authority for license penalty to suspend a license or certificate or impose a civil penalty. If the plaintiff prevails, FAA's entire enforcement authority could be in question. U.S.
Sen. Slade Gorton, chairman of the Senate aviation subcommittee, will discuss reinstatement of the aviation excise taxes, his panel's legislative agenda and the President's budget for FY 1998. The program will air on this week's Aviation News Today on Washington's NewsChannel 8 Sunday from 12:30 a.m.-1 a.m. and from 1:30 p.m.-2 p.m.
TWA reported a 4.8% increase in revenue passenger miles flown in January on 0.6% less capacity. The load factor rose 3.2 percentage points to 62.1%. International RPMs were up 1.4% even though international capacity dropped 6.3%. TWA recently substituted 767s for 747s on many transatlantic routes. International capacity made up 19.7% of TWA's systemwide capacity in January. The international load factor rose 5.2 points to 68.7%, while the domestic load factor increased 2.8 points to 60.4%. January 1997 January 1996
Paul Tate has been named chief financial officer for Atlantic Coast Airlines. Tate had been CFO, VP-finance and treasurer at Reno Air and previously was with Midway Airlines.
All Nippon Airways, the sixth largest airline in the world in 1995 based on passengers carried, plans to enlarge its international capacity by 25% during its current fiscal year. The airline, which grew 24% internationally in fiscal 1995 and 23% in fiscal 1996, said it hopes this year for "major growth in its operations to the United States," pending the outcome of U.S.-Japan aviation talks. Currently, three carriers - Japan Airlines, United and Northwest - fly 80% of U.S.-Japan transpacific traffic. ANA and three U.S.
FAA 1998 Budget - Summary of FAA Accounts, By Progem (In Millions of Dollars) 1996 Actual 1997 Est. 1998 Est. Operations Obligations by program activity: Direct program: Air traffic services 3,559 3,909 3,976 Regulation and certification 495 529 575 Civil aviation security 67 116 93
Richard Goodmanson has been elected president of America West Holdings Corp. and president and chief executive of America West by the two companies' board of directors, as anticipated last May. Goodmanson, a native Australian who has lived in the U.S. for more than 13 years, became a U.S. citizen last month.
United Chairman Gerald Greenwald told employees yesterday the company needs to "stay the course" if it is to continue making profits and be competitive for more than just a few years. He made the comments in light of contentious contract negotiations with the Association of Flight Attendants, which continued this week, and ongoing wage discussions with the Air Line Pilots Association and the Machinists. Greenwald said employees must remember the competitive environment in which they work. "That environment is changing every day. So are our competitors.
Northwest has added hotel rate specials at Radisson to its weekly CyberSaver fare sales on the Internet. The airline plans to advertise more specials by car rental and hotel partners, and possibly other travel services companies, in the future. This week's CyberSaver page includes a link to Radisson's Hot Deal page. The airline's fare specials are posted every Wednesday for travel the following weekend.
New Regional Aircraft Deliveries November 1996 Last 12 Months Carrier No. Type Engines Delivery ------------------------------------------------------------------- Air Littoral 1 AA ATR 42-500 PW127E 7 Air Tahiti 1 AA ATR 42-500 PW127E - Cimber Air 1 AA ATR 42-500 PW127E 2 Comair Inc. 2 Canadair RJ CF34-3A1 15
United Express affiliate Air Wisconsin posted a 23.7% increase in traffic last month to 44.9 million revenue passenger miles, as capacity increased just 2.2% to 83.3 million available seat miles. The resulting load factor of 53.9 was 9.3 percentage points higher than January 1996's figure. Enplanements rose 14.3% to 155,074.
Correction: The settlement proposed by the Allied Pilots Association to American includes 7.25 million stock options at $10 below market value. The 7.25 million was incorrectly expressed as a dollar amount Feb. 5 in The DAILY.
British Airways posted a 9% increase in January traffic, boosted by strong growth in international flights to the Americas and the Asia/Pacific region. Capacity rose 7.6% and the load factor was 67.5%, up 0.9 percentage points. BA also posted a 9.7% gain in cargo tonne kilometers. Its two regional airlines, Deutsche BA and TAT, experienced a combined traffic gain of 8.3% on 7.9% greater capacity. The two carriers transported 287,000 passengers in January, up 10.8%.
