When Delta and Southwest do battle in Delta's new low-cost markets, Gruntal's Steve Lewins says, "both probably will win a 'cost war,' not a 'price war,' that may leave USAir with little more than its original Allegheny franchise...and certain other smaller, less powerful airlines tails up."
The pace of U.S. transport manufacturing quickened in the second quarter as deliveries grew to 70 aircraft from 50 in the previous quarter, but the delivery total still is five aircraft short of second quarter deliveries in 1995, according to the Aerospace Industries Association. The trade group's quarterly tally of manufacturers' reported data shows that McDonnell Douglas delivered eight aircraft in the second quarter, versus 15 in the same quarter a year earlier, while Boeing shipped 62 aircraft, two more than in the year-ago period.
Midwest Express recorded in July its highest level of traffic in any single month during its 12-year history. The Milwaukee-based airline posted a 13.4% increase in revenue passenger miles over July 1995, but capacity increased 19.1% and the load factor fell 4.4 percentage points, to 66.7%. For the first seven months of the year, traffic was up 3.6% on a 3.1% increase in capacity. July 96 July 95 7 Mths 96 7 Mths 95 RPMs 112,551,099 99,270,325 714,961,090 689,874,984
Top Gun Over Moscow, to be shown on the NOVA television program Tuesday, Nov. 12 at 8 p.m. EST on PBS stations. Offers an up-close look at Russia's most powerful flying machines, including footage of the Russian Knights as they demonstrate the flight capabilities of Russia's combat jets. The film also provides a historical perspective with a look at images that were locked away in Moscow military archives for generations.
Continental has a new service to ease the pain of lost baggage. Having consolidated baggage tracking and claims in Houston, the carrier is making a toll-free telephone number available to customers to track their own bags "no matter where they're lost," said Continental Chief Executive Gordon Bethune. Although Bethune would rather not lose the bags in the first place, "for the bags we do lose, it's a great way to keep customers happy."
Citing "a number of multiple turbine engine power-loss and instability events, forced landings and accidents," FAA is preparing to change its water and hail ingestion standards. The decision follows a study by Aviation Rulemaking Advisory Committee, which recommended the upgrade.
Boeing engineers are working with airline customers to try to solve a false fire alarm problem on the new 777 widebody twin, apparently related to humidity in the cargo hold, without having to re-work the fire alarm system itself. Problems have turned up when carriers tried to haul tropical fruit in the hold, a company spokeswoman confirmed to The DAILY, in some cases leading to diversions and emergency evacuations. In one incident, an Emirates aircraft bound for London had to divert and land in Cyprus after mangoes set off the fire-detection system.
U.K. Office of Fair Trading seems likely to issue its report on the proposed American-British Airways alliance by the end of the month, said industry sources. They suggest that some of the key carriers already have received advance word of the decision.
Frontier reported a net profit of $1.3 million for its first fiscal quarter ended June 30, compared with a net loss of $1.9 million in the same 1995 period. Revenues rose 118% to $28.1 million from $12.9 million. The company also posted a profit in the March quarter, its first profitable quarter since beginning operations in 1994. President Sam Addoms said Frontier is "continuing to enjoy the benefits of overhauling our route system to serve Denver's most popular destinations rather than filling the flight voids in secondary markets."
President Clinton has received from Congress the legislation (H.R.3448) that would reinstate aviation taxes (DAILY, Aug. 6), and he must act on the measure on or before Aug. 20. Tax collections will begin seven days after he signs the bill into law.
America West's July traffic rose 7.6% to 1.4 billion revenue passenger miles from July 1995. Capacity was up 9.7% to 1.9 billion available seat miles for a load factor decline to 72.9% from 74.3%. "America West filled nearly 73% of its seats in July despite putting almost 10% more capacity in the marketplace," said William Franke, chairman. "Bookings for the third quarter and beyond continue to be strong, reflecting the strength of the carrier's low-fare, full-service market niche."
Continental will begin nonstop service to Chicago Midway Oct. 1 and add a seventh daily flight to O'Hare Oct. 27, both from Newark. It plans to operate three daily flights to Midway with 737s, increasing to four on Oct. 27.
- In Federal Register dated Aug. 5...Issued an airworthiness directive on certain Fokker F28 aircraft requiring preload adjustments of the main landing gear downlock actuator...Proposed to amend the requirements for landing gear braking on transport aircraft.
Labor leaders and a bipartisan group of members of Congress have scheduled a news conference Aug. 20 at New York Kennedy Airport to keep up pressure on the Clinton administration to hire more former PATCO controllers. Organizers say FAA's plan to hire 500 controllers next year is not enough. "Cost-effectiveness and affordability will have to give way to the safety of the flying public," one official said.
Carnival Air Lines is pressing DOT to deny Pan Am's bid for an exemption to advertise, list schedules, accept reservations and payment, and issue tickets for proposed services before receiving its certificate. Before such an exemption is granted, "a carrier is expected to be on the verge of inaugurating revenue service, with all material issues resolved," said Carnival.
Outside directors of FedEx are paid an $8,000 quarterly retainer, $2,000 for each board meeting they attend and $1,000 for each committee meeting. They also have a retirement program and an option under the company's stock incentive plan to buy 1,000 shares of common stock on each of five consecutive annual meeting dates as of Sept. 26, 1994. Committee chairmen are paid an extra $6,250 a year.
United anticipates up to $5 million per year in revenue as the eventual value of its selection as Nike's preferred carrier. The contract initially covers Nike employee travel originating in the U.S. and The Netherlands but it could be extended to other countries in the future. The main offices for Nike are in Portland and Amsterdam.
Western Pacific Airlines reported a 146% traffic increase in July, to nearly 153 million revenue passenger miles from 62.1 million in July 1995. The carrier's capacity rose 202%, however, to 259.1 million available seat miles from 85.8 million. The load factor fell 18% to 59.1%. WestPac carried more passengers in July, 176,052, than in any month in its 15 months of operations. In July 1995, the carrier was operating to nine cities with six airplanes. It now has 15 aircraft and serves 20 cities from Colorado Springs.
The ranking Democrat on the House Transportation aviation subcommittee and three other Democrats on the committee are asking FAA to help draft legislation to tighten up license requirements for airframe and powerplant mechanics. "In light of preliminary investigation results in the May 11, 1996, ValuJet crash, suggesting that improperly trained mechanics may have contributed significantly to this tragedy, we fee that a serious review of A&P licensing requirements is needed," Reps.
AirTran Airways' July traffic climbed 143% to 83.2 million revenue passenger miles from 34.2 million, while capacity rose 194% to 139.1 million available seat miles from 47.3 million. The load factor dropped 12.4 points to 59.8%. The carrier said its traffic was affected by negative publicity surrounding the entire airline industry, as well as its own operational difficulties in June.
