Gulfstream International Airlines will upgrade service between Tallahassee and Tampa Aug. 1 with the 36-seat Shorts 360 and is offering introductory fares of $69. Gulfstream acquired six Shorts this year for service in Florida and to the Bahamas. It has painted one of the aircraft hot pink with purple and turquoise stripes and another cobalt blue and yellow with a dancing dolphin on the fuselage. The liveries are advertising for Sandal's resorts and Grand Bahama Island.
Douglas Aircraft Co. reported that FedEx has ordered another MD-11 freighter, this one for delivery in November. The package carrier is taking delivery of four MD-11s this year and will be operating 21 of them by January. The freighters can carry up to 202,100 pounds and fly 4,200 nautical miles nonstop with a full payload. Douglas also reported that it has rolled out the first MD-11 fuselage built in Long Beach. The fuselages had been produced in San Diego by Convair, which decided to end production last December.
Patrick McCann, staff director for the Senate Appropriations transportation subcommittee, will join The Wexler Group Sept. 3 as principal and senior director. McCann has been a majority staffer on the committee for 13 years, the last eight in his current position. He will replace Will Ris, recently named VP of government affairs for American.
Delta earned a record $328 million in the June quarter, but a $273 million restructuring charge left it with net earnings of just $161 million, down 35.9% from $251 million in the June quarter of 1995. Because of the healthy operating environment, Delta jettisoned its high-profile campaign to reduce its unit cost to 7.5 cents per available seat mile. "In today's strong traffic and revenue environment, focusing solely on costs based on somewhat dated assumptions would limit our profitability," said Chairman Ronald Allen.
Continental Express President David Siegel, returning with other Continental executives from meetings in Brazil with Embraer, says the fleet modernization competition between the EMB-145 and the Canadair Regional Jet is not over. Continental is negotiating for 15- to 17-year leases of 25 firm-order aircraft and a large number of options, possibly as many as 100, Siegel told The DAILY Friday. The carrier wants to lock into a large number of options at favorable lease rates, giving it more flexibility in replacing some turboprops.
Rolls-Royce is withdrawing from the large steam power generation business, which accounted for #280 million of its turnover and 2,500 of its employees last year.
DOT Secretary Federico Pena telephoned TWA President and Chief Executive Jeffrey Erickson last week to express his concerns about reports of poor treatment of victims's relatives following the crash of TWA Flight 800. House Transportation Committee Chairman Bud Shuster (R-Pa.) said Friday the committee will move legislation that "clearly defines the interaction between the victims' families with the involved airline and government agencies."
Air Lines has opened its second reservations center in Florida, this one in Cape Coral. The airline employs 60 agents there and plans to hire 100 more by the beginning of winter. It employs 250 agents at its center in Dania, Fla.
Apollo's LeisureShopper product has signed up Hamilton Miller Hudson&Fayne, which offers tour packages to Denver, Detroit and Flint, Mich., as its latest online tour vendor. Apollo sees "great revenue potential" in the leisure market, said Lynne Rosenbaum, Apollo senior VP of marketing and sales.
Senate Commerce Committee Chairman Larry Pressler (R-S.D.) said he was troubled that FAA did not "transport immediately" an emergency National Transportation Safety Board team to the site of the TWA Flight 800 crash last week. Pressler said he also was disturbed by the administration's "recent decision to de-post" the Athens airport, from which the TWA 747 had come to the U.S. immediately before its fatal flight out of New York Kennedy Airport, bound for Paris.
Sens. Ron Wyden (D-Ore.) and Wendell Ford (D-Ky.) told FAA last week that making airline safety information available to consumers would be "extremely helpful." DOT Secretary Federico Pena said such a requirement could have a chilling effect on the government's drive to persuade the industry to share safety information in an attempt to identify trends and prevent future accidents. The senators asked FAA for its recommendations within 120 days.
Airlines Reporting Corp. said total travel agents sales processed for June increased 7% from June 1995 to $6.384 billion. Domestic fares were up 12% and international fares 10% for the month, while domestic commissions rose 3% to $2.014 billion and international commissions 5% to $1.398 billion.
U.S. and U.K. officials agreed to meet again July 30 and 31 in Washington after making some progress during talks Thursday and Friday in London. The two countries are addressing a potential open skies agreement, which would advance the prospective alliance between American and British Airways.
Aviation Security Advisory Committee, meeting last Thursday, asked industry to review and analyze "current levels of security countermeasures with the expectation to increase the requirements," according to the National Air Transportation Association.NATA warned members that the ValuJet, Delta and TWA accidents may prompt FAA to "respond to perceived shortcomings in the safety of U.S. aviation."Rep. James Oberstar (D-Minn.) and DOT Assistant Secretary Mortimer Downey attended the meeting.
India's state-owned Directorate-General of Civil Aviation announced requirements for airlines operating in Indian airspace during the monsoon season, from July to October. DGCA acted following a study finding that 60% of aviation-related mishaps in India occurred in bad weather during the rainy months. The guidelines cover landing approaches and diversion criteria in bad weather; hazard markings for airport charts, and operating standards for aircraft brakes, windshield equipment and sensor systems.
National Air Transportation Association published its 1996 NATA Compensation Survey, which details wages, salaries and benefits for a variety of positions. Cost is $99 for members, $150 for non-members.
Jonathan Ornstein, the former president of Continental Express, is introducing Europe to his irrepressible ways. The new chief executive of Virgin Express, the Brussels-based low-cost 737 operator, is already expanding - Brussels-Copenhagen Sept. 5. with a $93 fare, half the current lowest fare. The company says some tickets may be as much as 80% cheaper, and repeats the motto of low-cost, low-fare U.S. carriers that it is not competing with other airlines but is generating a new group of air travelers that would have used alternative modes or not traveled at all.
United Express affiliate Atlantic Coast Airlines' second quarter income jumped 65.3% to a record $8.5 million, or 94 cents per share, from $5.1 million, or 52 cents per share, in the comparable 1995 quarter, the regional carrier announced. The airline's quarterly earnings accounted for more than 91% of the $9.3 million, or $1.04 per share, it posted in net earnings for the first six months of the year. Total revenue for the first quarter jumped 21.6% to 50.4 million from 41.4 million in second quarter 1995.
Mountain Air Express, the new regional feeder being launched by Colorado Springs-based Western Pacific, has not announced its aircraft selection. It is advertising in a Seattle newspaper, however, to fill air carrier positions, including directors of operations, maintenance, quality assurance and customer service as well as chief pilot, instructor pilots and check airmen. The ad said "Dornier 328 experience preferred." The DAILY understands the new carrier will order 12 plus 12 options with four deliveries this year and the remaining eight in 1997.
Officials from the White House and several cabinet agencies reacted yesterday to the fatal crash of a TWA 747-100 late Wednesday in the Atlantic Ocean off Long Island, reflecting concerns that it might have been caused by a bomb. The disaster, in which all 228 people aboard were killed, still was being termed an accident yesterday, but the aircraft experienced what witnesses described as a massive explosion and fell in pieces into the ocean.
Atlantic Southeast flew nearly 80 million revenue passenger miles last month, a 13% increase from June 1995. Capacity grew more slowly - 4.9% to 149.9 million available seat miles from 142.9 million in the comparable month one year ago. Load factor rose 4.9 points to 53.4% from 49.5%. Enplanements rose 16.9% to 331,947 from 283,966.
Fourteen of the nation's largest regional airlines averaged an increase in traffic of 16.3%, as measured by revenue passenger miles. Capacity for the same carriers, as measured in available seat miles, increased an average of 12.5%. Rapidly expanding Gulfstream International Airlines continued to lead all carriers in terms of percentage growth. RPMs were up 99.2% in June, but that figure fell short of a 111.8% jump in ASMs. At the other end of the spectrum was Skyway Airlines, the Midwest Express subsidiary. Its traffic was down 6.2% while capacity dipped 13%.
MD-95 development costs ate into McDonnell Douglas's profits and a buildup of its jetliner inventory hurt its cash flow, but improvements in its military business enabled the company to turn in an 11% improvement in second quarter net earnings yesterday. McDonnell Douglas earned $188 million during the quarter even though sales slumped 17% to $3.26 billion. Overall sales were off by 11% - and commercial sales by more than 50% - for the first half.
