Aerovias de Mexico (Aeromexico) reported a second quarter net profit of $10 million, down considerably from net earnings of $98 million reported in the comparable 1995 quarter. The latter earnings were boosted, however, by a reduction of 600 workers, a decrease in the carrier's fleet and a stronger Mexican peso. Operating revenues increased 8%, to more than $22.7 million from $17.9 million in the same quarter last year. Most of the increase was due to a 10.5% gain in passenger revenues, said the carrier.
Delta and United have joined Continental in objecting to American's bid for code-share service with the TACA Group. American and the TACA Group - Aviateca, Compania Panamena de Aviacion, Lineas Aereas Costarricenses, Nicaraguense de Aviacion, TACA de Honduras S.A., and TACA International Airlines - signed an alliance agreement last month proposing to launch code-share services between the U.S. and Central America and other cooperative programs, beginning Nov. 1 (DAILY, June 28).
Lufthansa has taken delivery of the first of 20 Airbus Industrie A319s it has on order. Four more are to be delivered this year and all 20 by the end of 1998. They will serve the same routes as Lufthansa's 33 A320s and 15 A321s, and five more of the latter are yet to be delivered. The carrier's A319s will seat 126 passengers in a variable business- and economy-class configuration.
FlightSafety International appointed Al Krusz Gulfstream director- maintenance training and Harry Houckes manager-FlightSafety Savannah Learning Center.
Availability of good used aircraft has dried up, and potential purchasers have to pay higher prices or try to "resurrect" equipment put in storage years ago, according to Avmark Inc. The big question is the disposition of the ValuJet DC-9 fleet, Avmark says. If the carrier resumes service with 15 aircraft, the other 36 might be available for short-term lease or sale.
Singapore International Airlines and Tata Consultancy Services of the Mumbai-based Tata Group of Companies have formed a joint-venture company to develop and maintain computer software systems in India. The joint-venture agreement, based on a memorandum of understanding dating from November 1994, was signed by TCS Deputy Chairman F.C. Kohli and SIA Director of Management Services Cheong Kai Mun.
DOT last week tentatively designated Northwest and United to operate third-country code-share service between the U.S. and Warsaw, approving seven weekly frequencies for each carrier to operate services to the Polish capital with its code-share partner, KLM and Lufthansa, respectively. Losing out in the proceeding was Delta, which asked for designation to operate daily service with Austrian Airlines between its U.S. gateways, Atlanta and New York, and Warsaw via Vienna.
Sabre Travel Information Network has introduced a system - Web Marketing Reservations - that enables travel agents to make online bookings directly from their World Wide Web sites. When a customer makes a booking request, the reservation is sent automatically to the agency for ticketing. The Web Marketing Reservations system is free to agencies, which will be charged a $3 fee per reservation booked. The system is available in a domestic version, and an international version, as well as rental car and hotel applications, will be added later.
Northwest Cargo introduced Specific Air International, a service under which it will accept shipments as late as three hours before departure and guarantee that the shipment is moved as booked. The cargo will be recovered within three hours of arrival and the consignee contacted. The service is available to and from Anchorage, Boston, Chicago, Columbus, Ohio, Detroit, Honolulu, Houston, Los Angeles, Minneapolis, New York, San Francisco, Seattle and Washington to points throughout Asia and Europe.
The Teamsters union lost a bid last week to represent America West's stock clerks. The National Mediation Board said of the 40 employees eligible to vote, 19 supported the union.
ValuJet mechanics have filed a request at the National Mediation Board for a representation election by the Teamster. The union said the mechanics have seen their own professionalism questioned by the May crash, and they are seeking collective bargaining "in order to protect their jobs and expand ValuJet's in-house capabilities." The Teamsters lost a representation election in June 1995 by only five votes. The union said about 70 workers at ValuJet will be eligible to vote.
Most carriers that published second quarter financial results last week - however favorable - pointed to a fuel cost spike and the 4.3-cent federal fuel tax as big contributors to expenses. USAir's fuel bill increased only 11.7%, adding nearly $20 million in costs, but UAL Corp.'s rose 19.7% or $81 million, AMR Corp.'s 17.8% or $70 million and Delta's 19% or $65 million.
DOT has tentatively granted Air Micronesia (AMI) and Federal Express new fifth-freedom all-cargo rights beyond Hong Kong. AMI tentatively received three frequencies to serve the Hong Kong-Manila market (with one frequency converted into two for a total of four), and Federal Express was awarded five frequencies to serve Hong Kong-Subic Bay.
Allied Pilots Association at American swears this story is true: A captain jumpseating on an American flight to Dallas repeatedly refused to follow AMR drug and alcohol testers to a testing area for a good reason - he, wearing a black uniform with gold stripes, was a TWA captain.
Travel agents may begin reporting their sales on Spanish carrier Air Europa and Ecuatoriana de Aviacion with the Airlines Reporting Corp. Air Europa has been operating daily scheduled service since May between New York Kennedy and Madrid, with connections to Barcelona, Malaga, Santiago de Compostela, Palma de Mallorca and the Canary Islands. Ecuatoriana provides service to Quito from Miami with connections to Guayaquil.
The Port Authority of New York and New Jersey said it will enter into a lease with United for design, construction and operation of a new 85,000- square-foot cargo facility and 65,000-square-foot administrative and maintenance complex on about 43 acres at New York Kennedy Airport. The lease, approved at the port authority's recent monthly meeting, is for a 20-year term beginning Aug. 1.
Cooper Aviation Industries appointed outside sales representatives as follows: Mike Abrams, St. Louis; Brenda Flanagan, Oklahoma City; Randy French, Texas; Pat Gentile, Columbus, Ohio, and inside sales support representatives as follows: Nora Harned, Ft. Lauderdale; Lisa Kase, Harrisburg, Pa., and Greg Smith, Oklahoma City.
