Sundstrand said second quarter net earnings totaled $34 million on sales of $371 million, compared with earnings of $27 million in 1995 on revenues of $377 million. The company said its aerospace segment continues to benefit from improving commercial business, "which we believe is in its early stages. We now expect that our commercial OEM [original equipment manufacturer] sales will increase by 20% to 25% from 1995 levels, compared with a total aerospace sales increase of 5% to 10%."
American's Allied Pilots Association has asked the American Arbitration Association to print and mail strike ballots to APA members because mediated talks with the airline, now running seven days a week in Orlando, have shown no progress.APA said the company persists in seeking a pay reduction from the pilots, who want higher salaries and retroactive pay. Pension is the only issue on which both sides are close to an agreement on what APA terms the "must-have, passionate, shut-down-the-airline issues."
Continental reported record income yesterday, $206 million pre-tax for the second quarter, and announced bank financing to prepay $324 million in debt to General Electric Co. "We're hitting on all cylinders," said President and Chief Executive Gordon Bethune, citing year-over-year gains in yield, load factor and productivity. Results came on the strength of sales - operating revenues increased 10.9% from the second quarter of 1995, reaching $1.64 billion, while operating costs were held to $1.41 billion, a 3% increase.
Douglas Aircraft officials said yesterday that airline and government officials in China have signed final agreements for the purchase of 20 MD- 90s for China Northern and China Eastern airlines. The first of 11 new aircraft for China Northern will be delivered later this month, and China Eastern will receive the first of its nine units late next year.
Kiwi International Air Lines is offering its $69 and $89 one-way fares on all flights without advance-purchase restrictions. Tickets must be purchased by July 31 and travel completed by Aug. 28. The $69 fare is good for travel from Atlanta to Chicago and Florida, and the $89 fare is for travel on all other nonstops. Kiwi serves New York, Chicago, Atlanta, Tampa, Orlando, West Palm Beach, Las Vegas and Bermuda.
Shipments of general aviation airplanes increased 10.3% in the first six months to 503 units valued at $1.25 billion, compared with 456 units worth $1.27 billion during the same period a year ago. Shipments of jet aircraft dropped 9.5%, to 95 from 105, but piston-engine aircraft shipments rose 11.9% to 273 from 244 and turboprop shipments 26.2% to 135 from 107, the General Aviation Manufacturers Association said. Exports stood at 160 units compared with 124, a 29% increase. Export billings rose 17.9% to $332.4 million from $281.9 million.
McDonnell Douglas said its MD Explorer is the first helicopter to receive "complete validation" by the 27 European members of the Joint Aviation Authorities. The company said it expects JAA members to issue type certificates within the month on the aircraft, four units of which are operating in Europe.
Virgin Atlantic Airways has asked the U.S. DOT for authority to serve Kansas City, Mo., under a blocked-space agreement with Midwest Express Airlines. Under the arrangement, Virgin proposes placing its code on certain Midwest Express flights operating between Boston and Kansas City beginning Sept. 9. The two carriers already provide code-share service between Boston and Milwaukee. (Docket OST-96-1576)
Granted orally to AHK Air Hong Kong an exemption to conduct scheduled all-cargo service between Hong Kong and Chicago with technical stops in Japan (Kansai International), Korea and/or Anchorage.
FAA Administrator David Hinson and National Transportation Safety Board Chairman Jim Hall have reached "tentative agreement" on how to define accidents, according to Hinson. Now, an arm broken in turbulence will be given the same weight as "a complete hull loss." The Hinson-Hall pact will go to ICAO in an attempt to standardize definitions worldwide.
Air China has ordered three 747-400s valued at $510 million for use on routes to the U.S., Europe and Asia, Boeing said Friday. The company said Air China has ordered 47 of its aircraft, and China has taken delivery of more than 250 of them, representing more than 70% of the market for Western-built aircraft.
United hired 263 maintenance technicians, more than any other airline, from June 1995 to June 1996. American hired 258, according to the Future Aviation Professionals of America. Zantop International, which has been discussing a maintenance contract with ValuJet, hired 79 in the past 12 months. FAPA said Zantop is recruiting engine mechanics, flight line electricians, A&P mechanics, sheetmetalists and painters this month.
Hawaiian Airlines Inc. postponed plans for its rights offering, which had been scheduled last Thursday. The company said only that it will announce a new date in advance and mail a prospectus and subscription materials to shareholders as of the record date. Under the offering, shareholders other than the company's main investor, Airline Investors Partnership L.P., will receive one subscription right for each share of common stock it holds.
FAA said it completed on-time delivery of the Voice Switching and Control System June 28 when the last of 21 installations arrived at the Jacksonville, Fla., air route traffic control center. It is scheduled to be operational in February. FAA said VSCS, the largest automation system it has ever introduced, is fully operational at 11 en route centers.
Former DOT Inspector General Mary Schiavo, outlining to Congress what she described as a pattern of "vastly different" abuses at FAA, said there is a "common thread." Managers are "not held accountable for decisions that reflect poor judgment," and taking FAA independent "is only going to increase the problem."
British Midland has become the 41st participant in Infini's Locator Back system, which registers airlines' record locators in Infini's passenger name records.
DOT is seeking comments on a complaint brought by Northwest against the government of Indonesia. The carrier asserts that Indonesia is preventing it from exercising its bilateral rights to carry fifth-freedom traffic between Japan and Indonesia. The deadline for answers to the complaint is Aug. 1, and replies are due Aug. 6. (Docket OST-96-1547)
Delta will launch a SkyMiles dining program Aug. 15 that offers members three miles for every dollar they spend at participating restaurants. Delta's program does not require a special dining card or membership fee, or limit the number of visits per month to a restaurant. Members can pay for the meal in any form and receive the mileage credit by showing their SkyMiles card.
DOT has dismissed without prejudice Jet Aspen's certificate application and withdrawn its Jan. 19 show cause order tentatively granting the certificate. Objections to the show cause order filed by Tri Star Airlines and Peak International "raised issues pertinent to the applicant's compliance disposition," said DOT.
The Senate Appropriations Committee last week restored funding for development of the terminal digital radar program, ASR-11, which was zeroed in the House version of the fiscal 1997 DOT appropriations bill (H.R.3675). The Senate panel recommended $20 million for the program, $3.3 million less than the Clinton administration request. The committee restored $7.35 million cut by the House from the advanced en route automation (AERA) program request.
