Federal Express posted a net profit of $115.4 million for its fourth fiscal quarter, which ended May 31, the company said yesterday. Earnings per share rose to $2.01 for the quarter from $1.54 a year earlier.
David Golden, a managing director of Hambrecht&Quist LLC, has resigned from Vanguard Airlines' board of directors. The carrier said Golden is leaving the board because of a decision by the investment firm to limit board participation by its officers in public companies in which it holds large stakes.
Reports carried by two of Taipei's leading dailies say that Wheelock NatWest, a Hong Kong subsidiary of Britain's National Westminster Bank, is negotiating to buy a 16% stake in China Airlines for about US$300 million. CAL officials, contacted about the reports, said they were not in a position to comment. A spokeswoman for National Westminster Bank's Taipei representative office likewise declined comment, saying the office only learned of the reported negotiations through the newspaper stories.
CIT Leasing said it bought two 737-300s and two spare engines from GECC. The aircraft and engines, purchased with an existing lease to Continental, represent the fifth 737 transaction this year by CIT.
A class action lawsuit against Florida West Airlines and some of its ex- officers has been dismissed without prejudice by a Florida district court. The suit was brought against the airline for making false and misleading statements regarding its financial position and future business prospects before it filed for bankruptcy protection. The court said that because Florida West filed for bankruptcy, the reorganized Florida West has no assets or liabilities of the old entity, and it is discharged of all preconfirmation indebtedness.
KLM and Northwest may be on the verge of settling the acrimonious feud that has threatened to undermine the world's most profitable airline alliance. Pieter Bouw, KLM's president and chief executive officer, said that in the next few months the companies will sign new long-term cooperative agreements guaranteeing KLM that other Northwest shareholders will, like KLM, have what he described as a long-term perspective.
Delta is expanding its electronic ticketing program, the carrier said yesterday, adding 15 city-pairs to the list of points at which it is testing the program. Delta, following a trend set by other carriers in the U.S., launched a ticketless program in May in five test markets. The new points involve Salt Lake City, Boston, Orlando, Chicago and Cincinnati. Currently, travelers have to purchase a ticket with a credit card through a Delta agent, who then sends the passenger a receipt. Customers check in at the airport with identification.
Delta and Swissair will expand their code-share pact to include flights from Newark, Boston and Washington to Zurich. Delta already is buying seats on Swissair's daily service from Newark to Zurich, five times a week service from Philadelphia to Boston and on to Zurich, and twice-weekly service on a Washington-Boston-Zurich routing.
Beleaguered air traffic officials from FAA's New York area were criticized for management shortcomings yesterday by 24 members of Congress from both parties and by controllers' union officials. The congressmen wrote President Clinton complaining about poor staff management at high-traffic- volume towers and radar facilities in the area and an increase in near- collisions between aircraft.
KLM's May traffic rose 7% in May for a total of 689.6 million revenue ton kilometers, compared with 641.7 million in May last year. Capacity was up 8% to 987 million available ton kilometers, depressing the load factor to 69.9% from 70.2%. For passenger service, traffic was up 13% to 3.9 billion revenue passenger kilometers, and capacity up 10% to 5.5 billion available seat kilometers. The load factor improved 1.5 points to 72%. KLM said its greatest passenger traffic increase was on service to the Middle East/South Asia, where RPMs grew 26%.
David White, president of the American Sleep Disorders Association, told FAA last week that the association has strongly believed for many years that the effects of sleep deprivation and basic circadian physiology on job performance - including that of flight crewmembers - have been "substantially underestimated." White endorsed a review of FAA's proposed rules on flight and duty time funded by the Independent Pilots Association, which represents UPS pilots.
Reno Air will offer a free space-available upgrade to first class for passengers traveling on their birthdays until July 1, 1997. The offer is part of Reno's celebration of its fourth anniversary.
Rich International, charged by FAA with installing parts on six L- 1011s that it had removed from another L-1011, is contesting the agency's call for $2.6 million in civil penalties, saying the charges are "groundless." About 75 of the parts could not traced to an FAA-approved source (DAILY, June 28).
Granted orally to Alaska Airlines an exemption to operate scheduled combination service between the terminal point Phoenix and the terminal point Puerto Vallarta, Mexico...Granted orally to Aero Costa Rica Acori renewal of its authority to conduct scheduled combination service between San Jose, Costa Rica, and U.S.
Fairchild Aircraft Chairman Carl Albert has been named chairman of the management board and managing director of Fairchild Dornier Luftfahrt. Harold Williams, president of Fairchild, also was named managing director. Jim Robinson, who was president of Learjet, becomes president of Dornier. He is succeeded at Learjet by Lachlan Beatson.
Clearwater, Fla.-based Sun Jet International has named David Banmiller president and chief executive. He began his aviation career at TWA and later was president and chief operating officer of AirCal, VP-international services at American, president of Air/Lyon and president of The Falcon Group.
- In Federal Register dated June 21...Issued an airworthiness directive on certain Fokker F28 aircraft requiring inspection for cracking of the elevator gust lock housing...Issued an AD on certain Fokker F28 aircraft requiring replacement of junction fittings of the horizontal stabilizer.
TAP Air Portugal has applied for permission to carry individually waybilled cargo on passenger charter flights between Portugal and the U.S. The carrier said it has entered into an agreement with a Portuguese tour operator to conduct flight service in connection with a public charter program to be operated between Lisbon and Miami once each week between July 24 and Oct. 2. TAP will use its Airbus 310-300 aircraft in a one-class, 198-seat configuration for the service.
Comsat named Mike Hughes VP-finance for Comsat International Communications. Dassault Falcon Jet named Jean-Michel Jacob manager-international sales for South America. GTE named Horace Lindsay VP-technology marketing. Jetfleet Management appointed Christopher Tigno general counsel. Kosola And Associates promoted Lorinza Henry to shop operations superintendent. LEP Profit International appointed Eric Williams director-Latin America.
Aeronautical Repair Station Association, in the aftermath of the ValuJet crash, is warning its members to make sure they have the information necessary to show that they are in compliance with air carrier manuals. "As with most knee-jerk reactions, the guidance needed to ensure compliance" will be provided "long after the FAA starts looking for the problems."
Summary of U.S. National Carriers Systemwide Revenues and Expenses Fourth Quarter 1995 (In Dollars) Total Operating % Passenger Carrier Revenues Change Revenues Alaska 278,232,000 8.68 227,512,000 American Trans Air 164,626,000 16.64 87,226,686
United's 45 old 737s will be marketed by Interlease Aviation Corp., a new leasing company, but not to U.S. carriers in passenger configuration, according to Morten Beyer Associates. Interlease is offering them at about $5 million after overhaul or $6 million in cargo configuration. MBA says the restrictions on sales or leases to U.S. startups "would appear to skirt antitrust and restraint-of-trade laws."
