Air France managed to reduce its losses significantly in 1996-97, at the end of a three-year restructuring plan comprising a 20 billion French franc capital increase by the French state. Results for the fiscal year ending March 31 should show a deficit of FF200 million, as forecast, despite rising fuel prices, Chairman Christian Blanc told members of the French Parliament. Blanc also underlined that the rise in the dollar had generated extra expenses of about FF200 million. Air France lost FF2.9 billion in 1995-96 and as much as FF8 billion in 1993.
Surplus military aircraft will be one of the major issues to be discussed at the Feb. 4 meeting of the Helicopter Association International in Anaheim, Calif. HAI said that between 1993 and 2000, as many as 3,000 surplus military aircraft, "plus tons of components and parts," will be transferred from the military into civilian fleets. At least 750 military surplus helicopters already have been redeployed into non-military uses, mostly by state and local governments.
Boeing 737 Systemwide Aircraft Utilization Per Day Third Quarter 1996 B737-300 America West Continental Delta Number of Aircraft Operated 40 65 13 Total Fleet Operations Departures 258 286 70 Block Hours 481 703 125 Flight Hours 397 589 103
United posted record fourth quarter and annual earnings yesterday as the carrier's 1996 profit topped $1 billion for the first time in its history. The carrier realized improved international and domestic passenger unit revenues, better system yield, a higher load factor and a more profitable Pacific operation. United also set records in annual earnings per share, $7.68, up 48%; operating earnings, fully distributed, $1.8 billion, up 36% ; and revenue, $16.4 billion, up 9.5%. Revenue per available seat mile - 12.35 cents, also a record - improved due to a strong U.S.
Correction: Thomas Lagow, USAir executive VP-marketing who is retiring at the end of January, was hired at USAir from United in 1992. He came to USAir before Chairman Stephen Wolf came on board last year. Wolf brought former United colleague Rakesh Gangwal with him from Air France. The sequence of events was stated incorrectly in The DAILY Jan. 23.
United's pilots have embarked on a campaign to persuade all the carrier's employees to be non-cooperative with management in an effort to end what they describe as corporate culture problems that include "cost-cutting without regard to operational consequences or human impact" and "consistent, chronic understaffing." The Air Line Pilots Association, which recently rejected by a large margin and sent to arbitration the mid- term wage adjustment to the Employee Stock Ownership Plan (ESOP), says the campaign is not simply a wage issue.
Alaska Airlines reported yesterday a 1996 net income of $38 million, more than double 1995's $17.3 million. The second best year in the airline's history was dampened by a net loss of $5.6 million in the fourth quarter, however. Severe winter storms in December, coupled with sharply higher fuel prices, walloped the carrier's Seattle and Portland hubs as well as its fourth quarter numbers. The company posted a 6.8% rise in fourth quarter revenues but a 10.6% hike in expenses.
American President Donald Carty yesterday challenged the Allied Pilots Association (APA), asking the union to reconsider allowing an independent arbitrator to rule on its pending labor contract. "If they are confident in their position, they should have no concern about arbitrating this matter," he said. The bottom line is that if American's order for 103 new Boeing jets is to go through, the airline cannot tolerate pilot costs that are higher than those set down in the tentative agreement that APA members rejected Jan. 8, Carty said.
Boeing will provide a senior scientist to become program director of the FANS Stakeholder Group (FSG) at the International Air Transport Association. Frank Ruggiero, senior principal scientist at Boeing, will be based at IATA headquarters in Montreal, said Director General Pierre Jeanniot. He said Ruggiero will lead an "active plan" for implementing FANS (future air navigation system). "FANS offers enormous benefits to both airlines and air traffic service providers - both in increased safety and financial savings.
Swissair is blowing hot and cold about its 49.5% stake in Sabena. The Belgian flag carrier's Swiss-appointed chief executive, Paul Reutlinger, said Swissair likely will write off its 6 billion Belgian francs investment in Sabena this spring but insisted a total pullout is not imminent. Last October, Swissair threatened to drop its Sabena stake unless the carrier started making money soon, and Reutlinger told employees recently that Sabena had six months to win back shareholder confidence.
Belgium's National Council of State overturned a local court order from last summer that forbade nighttime flights at Brussels Airport International in nearby Zaventem. According to the council's statement issued after the decisions, the "normal demands" of a modern international city "inevitably create" noise disturbance for residents who choose to live there.
Delta, which suffered three engine failures on its 727 fleet since last January, lost another JT8D-15A to an uncontained failure Monday after takeoff from New Orleans. The failure is believed to be the third involving the turbine area, and all three occurred during takeoff or climbout. The latest incident involved the first-stage turbine, while the previous two affected the fourth-stage turbine. Delta experienced engine failures on 727s last August during climbout from New York LaGuardia and last January on an aborted takeoff, also from LaGuardia.
United and Lufthansa have asked DOT to renew and amend their code- share/blocked-space agreement under the U.S.-Germany open skies bilateral. The carriers want permission to substitute one German point for another when operating beyond German gateways. Exchanging German gateways at will would eliminate the need to amend the statement of authorization every time a beyond point is served from a different German gateway, the carriers said.
LTU International Airlines, Germany's second largest airline, will resume weekly nonstop San Francisco-Dusseldorf service May 14. LTU and Air New Zealand have extended their code-share agreement, applying it to the Los Angeles-Frankfurt route, and LTU's Phoenix-Dusseldorf weekly flight continues. On May 5, LTU plans to operate from Fort Myers, Florida, to Cancun, Mexico, subject to government approval. The leisure airline also is expanding service to Bergen and Lakselv, Norway, and will introduce scheduled service this summer to Luxor, Egypt, and Agadir, Morocco.
DOT Administrative Law Judge John Mathias is retiring, effective Jan. 31, after 40 years of federal service. He has been DOT's chief judge for six years.
Far Eastern Air Transport Corp., newly approved as the fifth Taiwan carrier authorized to operate scheduled international service, hopes to launch weekly flights between Taipei and Guam in April. Currently, Continental Micronesia is the only airline providing direct flights in the market. Sources in Taipei say Far Eastern may not be able to fly the route as hoped, however, because Taiwanese airlines have been barred from opening new routes to the U.S.
Rep. Frank Wolf (R-Va.), chairman of the House Appropriations transportation subcommittee, urged President Clinton yesterday to nominate quickly as FAA administrator an individual with longstanding aviation experience and skills in leadership and management of a large, diverse organization. Sources said Wolf's letter in essence opposes the candidacy of Frank Kruesi, DOT assistant secretary for transportation policy, who is believed to lead other contenders for the post.
KLM is offering inexpensive one-way tickets to London, Paris and Berlin, in imitation of a low-cost rival, U.K.-based EasyJet. An EasyJet spokesman called KLM a "copycat" and a "bad loser." Cheap one-way tickets also are marketed by Brussels-based Virgin Express.
Federal Express became the first cargo carrier to join detractors of the proposed American-British Airways alliance in filings to derail routine approval. Supporting Delta's motion for a stay pending an open skies aviation agreement with the U.K., FedEx said it wants to ensure that negotiators address cargo competition.
Mexico is the most popular winter travel destination for the third year in a row, according to nearly 400 travel agents polled by Carlson Wagonlit. Ranking after Mexico were the Caribbean, Florida, cruises, Hawaii, California, Colorado, Europe and Asia. More than 50% said clients want to go somewhere warm but inexpensive.
Commercial airline service will begin soon to small M. Graham Clark Airport, two miles from Branson, Mo., at The College of the Ozarks in Point Lookout. The airport, owned by the college and leased to Ozark Mountain Management Group, is building a 13,600-square-foot terminal for completion by June 1. Chantilly, Va.-based Country Tours, the majority shareholder of Ozark, will manage the airport. The company said it is seeking a firm to manage the air service and likely will announce a selection in two to three weeks.
Lufthansa Group's total volume grew moderately last year to 41.4 million passengers, 1.7% more than in 1995. Its subsidiary, regional airline Lufthansa CityLine, racked up the strongest growth, as passengers rose 17.4% to 3.1 million. The group's charter operator, Condor, carried 6.6 million passengers, an increase of 7.3%. By contrast, the passenger volume of Lufthansa AG, the group's flagship carrier, dropped 0.6% to 31.8 million.
FAA, replying to General Accounting Office criticism that air traffic control modernization has led to unreliable cost information (DAILY, Jan. 24), said Friday that it canceled in 1994 an "over-budget and behind schedule modernization program that caused the GAO's core concerns." That action, FAA said, saved taxpayers $1.6 billion.
