Regional airlines fully expect the Internal Revenue Service to make the capitalization of engine overhauls a "coordinated audit issue." So far, the tax agency has issued only a Technical Advice Memorandum (TAM) theorizing that overhauls should be considered a capital expenditure rather than an everyday business expense that can written off for the year in which it occurred (DAILY, Aug. 19).
John Presburg is out as executive VP/COO and Hap Pareti is in at USAir Express Paradise Island Airlines - at least as a consultant. Pareti, the former president of Presidential Airways, failed in his recent attempt to launch Jet Aspen, a planned BAe 146 carrier operating out of the Colorado ski resort, but was brought into Paradise Island by its new ownership - The Ages Group of Boca Raton, Fla. Ages is an international aviation services group that reportedly is interested in expanding Paradise Island's Dash 7 operation to the Denver-Aspen market.
Trans States Airlines has contracted with Northwest Aerospace Training Corp. (NATCO) to develop an FAA-approved advanced qualification program for the carrier's Jetstream 41 aircraft. Nannette Gibbons, manager, training program development for the Northwest Airlines subsidiary, said, "We are pleased that Trans States has put their confidence in NATCO." Gibbons said Trans States' decision "shows their commitment to the highest standards of pilot training quality."
A Delta Boeing 727 made an emergency landing at New York LaGuardia Airport Wednesday night after one of its Pratt&Whitney JT8D turbofans suffered a severe surge and turbine failure during climbout, sending pieces of the turbine section into a residential area near the airport, P&W and airline officials said yesterday. Delta spokesman Bill Berry confirmed that the damaged pieces are believed to be from the "fourth-stage turbine area," although the extent of the damage will not be known until the engine can be inspected completely by P&W and FAA.
InVision Technologies said it has shipped a fourth FAA-certified explosives detection system, the CTX 5000, to the Israel Airports Authority for use at Tel Aviv Ben Gurion Airport.
DOT has assessed Fast Air $60,000 in compromise of potential civil penalties for operating unauthorized service and violating the cease-and- desist provisions of an earlier consent order. The DOT Office of Aviation Enforcement and Proceedings said Fast Air, a Chilean carrier, conducted a number of flights between Lima, Peru, and Miami in 1995 and 1996 without economic authority from DOT.
FAA will impose new IFR wake vortex separation standards at midnight tonight that by its own study are expected to increase aircraft delays - during good weather - as much as 72% at Los Angeles, 34% at San Francisco, 29% at LaGuardia, 19% at Atlanta and 17% at Newark, according to an Air Transport Association official. The standards will reclassify more than 880 commuter aircraft to small from large, which means they will have to increase the distance at which they follow larger aircraft.
Cincinnati- and Orlando-based Delta Connection Comair logged 134.9 million revenue passenger miles in July, a 28.5% increase from the same month one year ago. Capacity did not keep pace, rising 16.2% to 228.9 million available sweat miles from 197.1 million. The load factor rose 5.6 percentage points to 58.9% from 53.3%. Passenger enplanements increased 25.5% to 412,524 from 328,742.
Continental Express flew nearly 86 million revenue passenger miles last month, a 20.9% increase from July 1995's 71.1 million RPMs. Capacity was up 17.1% to 158.1 million available seat miles from nearly 135 million. As a result, the load factor climbed 1.7 percentage points to 54.4% from 52.7%. The number of passengers boarded rose 12.6% to 382,781. July 1996 July 1995 --------------------------------
Mountain Air Cargo parent company Air Transportation Holding Company reported net earnings of $405,000, or 14 cents per share, for its fiscal 1997 first quarter ended June 30, 1996. In the comparable 1996 fiscal quarter, the carrier reported net earnings of $520,000, or 17 cents per share. Last year's first quarter figure included a $263,000 gain on disposal of company aircraft that increased net earnings five cents per share.
KLM's July traffic rose 5% to 764 million revenue ton kilometers, up from 727 million in July 1995. Available ton kilometers rose 8% to 1.049 billion from 973.7 million. The load factor for the month fell 1.9 percentage points to 72.8%. Passenger traffic rose 7% to 4.7 billion revenue passenger kilometers and capacity gained 8% to 5.876 billion. KLM said cargo traffic to the Middle East and Southern Asia showed strong growth after it introduced more 767 equipment into the markets.
Continental Express has awarded a three-year, exclusive contract to Atlantic Turbines Inc. to perform all external repair and overhaul on the regional's PW100 turboprop engines. Atlantic Turbines is a fixed-wing repair and overhaul subsidiary of CHC Helicopter Corp. of St. John's, Newfoundland. In a statement, CHC Helicopter described Continental as "the world's largest independent operator of PW100 engines." The deal calls for two option years.
Regional airline traffic grew nearly twice as fast as capacity in July, according to a sampling of 14 of the largest carriers. Traffic, as measured in revenue passenger miles, was up an average 9.2%; capacity, as measured in available seat miles, rose an average 4.9%. American Eagle's four units logged 3.3% lower traffic and 10.9% less capacity. [Individually, Eagle carrier Flagship - with the demise of the Nashville hub - saw traffic decline 26.4% while capacity was down 30.2%. Wings West was off 8.1% and 10.7%; Executive was down 3.3% and 4.7%.
China Airlines has entered into a joint venture agreement with Jardin Airport Services Ltd. (JASL), under which CAL will acquire a 15% stake in Jardin Air Terminal Services (JATS). JASL will hold 80% of the shares of JATS and an unnamed partner the remaining 5%. The agreement was signed Wednesday in Hong Kong by CAL VP Michael Lo and JASL representative Wang Gui Xiang. The partners have agreed to invest a total of NT$250 million (US$32.05 million) in JATS, which will begin operations in April 1998 with the opening of Hong Kong's new Chek Lap Kok Airport.
Fairchild Dornier is contemplating a new marketing tool that would put the 30-passenger Do 328 high-speed turboprop into the hands of regional airlines for extended periods of operational evaluation. The company is considering placing an aircraft on the certificate of wholly owned Fairchild subsidiary Merlin Express, a Metro cargo and charter operator. Merlin would then wet-lease the aircraft to carriers for a month or so to be operated in scheduled service. The aircraft has been well received by passengers of other U.S. customers - Horizon, PSA and Lone Star.
SkyWest boarded 1.5 million passengers in the first seven months of the year, a 25.5% increase from the same 1995 period (DAILY, Aug. 14). July 1996 July 1995 7 Months 1996 7 Months 1995 --------------------------------------------------------------------- RPMs 64,449,482 53,819,156 407,332,075 299,905,154 ASMs 120,588,780 111,104,051 781,201,097 641,849,891 LF (%) 53.4 48.4 52.1 46.7
Calgary-based WestJet Airlines has launched a daily flight between Calgary and Saskatoon, two daily flights between Vancouver and Kelowna and a daily flight between Victoria and Kelowna. The service is made possible by a 737-200 the carrier received this week, its fourth. The low-fare airline, which started service in February, said its service in six Canadian markets has had great success. It recorded 80% load factors in July, carrying about 250,000 passengers.
Still rapidly expanding Gulfstream International Airlines logged a 67.9% increase in traffic last month, flying 9.7 million revenue passenger miles, compared with 5.8 million in July 1995. Available seat miles rose more quickly - 90% to 19.5 million available seat miles from 10.2 million. As a result, the load factor dropped more than 6.6 percentage points to 50.1% from 56.7%. Passenger boardings rose 63.4 % to 51,527 from 31,526. July 1996 July 1995 7 Months 1996 7 Months 1995
Boeing 767 Systemwide Aircraft Utilization Per Day First Quarter 1996 B767-200 -------------------------- American Delta TWA Number of Aircraft Operated 30 15 12 Total Fleet Operations Departures 53 59 29
American Trans Air's traffic fell 0.2% in July to 996.6 million revenue passenger miles from 998 million on 6.5% more capacity. Available seat miles totaled 1.366 billion, up from 1.282 billion last July, producing a 4.9-point drop in load factor to 73%. The carrier's scheduled service RPMs grew 8.9% to 538 million on 20.7% more capacity, for a load factor drop of 7.6 points to 69.8%. For the first seven months of the year, RPMs rose 8% overall to 5.790 billion and ASMs 11.2% to 8.308 billion, depressing the load factor 2.1 points to 69.7%.
Denro said it received a contract to provide three small-tower voice switch communications systems to the Civil Aviation Department of Thailand. The systems will be installed at Nan, Udorn and Ubon airports in December.
Tom Appleton will soon be selling...amphibians? The de Havilland Aircraft chief salesman for regional turboprops turned chief salesman for the Canadair Regional Jet and then chief salesman for both when Canadair parent Bombardier acquired de Havilland-the centerpiece in the controversial debate over regional jet versus turboprop-is to become president of the Amphibian Aircraft Division of Bombardier, which produces the CL-415 water bomber. Competition to replace him as Bombardier Regional Aircraft Division executive vice president could be interesting.
American's political action committee has contributed more to federal candidates and committees in this election cycle than the next three largest passenger airlines combined. According to the most recent reports, American's PAC gave $339,559, United's $134,550, Northwest's $85,900 and Delta's $83,250.
Aviation journalists David Field, USA Today, and Kristin Krause, Traffic World, will discuss security issues on this week's Aviation News Today. The program will air Sunday on Washington's NewsChannel 8 from 12:30 a.m. to 1 a.m. and from 1:30 p.m. to 2 p.m.
