Embraer has established a finance subsidiary to facilitate sales of its new 50-passenger EMB-145 regional jet. Embraer Credit Corp. (ECC) will offer direct operating leases to customers and then take the paper on those transactions to the financial markets. The transactions also will benefit from the Brazilian export bank (PROEX) interest-rate-equalization program, which pays 3.8% on the declining balance at each quarterly or half-year payment after the 15% down payment. Over a 15-year lease period, value of the PROEX benefit can be $3.5 million to $3.8 million.
Gulfstream International will serve Melbourne, Fla., beginning Sept. 9, offering direct flights to Miami and Tampa, the regional announced. The carrier will operate three daily flights on weekdays to Miami and two daily flights to Tampa, with limited weekend service, using Beech 1900 aircraft.
Midwest Express Airlines' traffic increased 2.3% in June to 107.3 million revenue passenger miles. Available seat miles increased 5% to 154.4 million, however, and the load factor decreased 1.8 percentage points to 69.5%. For the second quarter, RPMs increased 0.7% to 310.2 million and ASMs 4.3% to 470.7 million, and the load factor fell to 65.9% from 68.3%.
Airport and Airway Trust Fund Income Statement October 1, 1995 - April 30, 1996 Current Month Year-to-Date RECEIPTS (Revenues) Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas $ 0.00 $ 56,227,000.00 Transportation by Air, Seats, Berths, etc. 0.00 1,275,570,000.00
FAA yesterday issued to industry and safety officials its Human Factors Team Report on "The Interfaces Between Flightcrews and Modern Flight Deck Systems." The evaluation of cockpit automation includes a five-year program of improvements.
Mesa Air Group's Mountain West Airlines unit will suspend service at Goodland, Kan., and Lamar, Colo., Aug. 9, Mesa announced. In both cases, Mountain West President Mike Lewis said, "economic circumstances" forced the carrier to terminate the service.
Introduction of inflight gambling on Singapore Airlines, scheduled originally in June, has been delayed. Sky Games International, which is providing the software for the venture, says problems with Matsushita's hardware will keep the system out of the hands of customers until the fall.
Airbus Industrie said it received 143 aircraft orders from 15 customers in the first six months of the year, surpassing the 1995 total and attaining a 37% share of the market for aircraft seating more than 100 passengers. Limited to markets where it is represented, the consortium's market share is 41%, it said. Net orders after cancellations totaled 136 aircraft for the six months. The consortium reported 43 orders for the A330/A340 and 98 for the A319/A320/A321. The largest orders came from Asia, including 30 from China and 24 from the Philippines.
United Express affiliate Atlantic Coast Airlines has appointed Michelle Bauman manager of customer service training and Bill Race regional manager of stations. Bauman's new position involves overseeing the expansion of a customer service training curriculum jointly developed by United and its United Express affiliates, as well as operating the company's consumer affairs function. She previously was a regional manager of stations, supervising activities of ACA's three busiest non-hub stations at Boston, Newark and New York Kennedy.
Air 21 will take delivery of its fourth F28 Monday and may take on another one from Helasco Aircraft at the end of July. The Fresno, Calif.- based carrier intends to add cities to its route network and expand its interline connections with other low-fare airlines, said Mark Morro, chairman and chief executive. Air 21 also will take delivery in the near future of an F28 from USAir that was originally scheduled to be delivered in February.
Kenya Airways reported a profit of 1.42 billion Kenya shillings ($24.5 million) for its fiscal year, which ended March 31. Revenue totaled KSH10.31 billion ($178 million), and the company posted an operating profit of KSH2 billion ($34.5 million). The results compare with a KSH885.6 million ($15.3 million) operating profit on revenue of 9.1 billion ($157 million) for fiscal 1995. "We are very pleased with these results, which must place Kenya Airways among the top performing airlines in the world," said Brian Davies, managing director and chief executive.
AirWays Corp. Chairman and Chief Executive Robert Swenson, who also is chairman of AirTran Airways, has taken on the additional roles of president and chief executive of AirTran, replacing John Horn, who has retired.
America West reported record traffic for June, but its load factor slipped 2.6 percentage points. Traffic for the month was up 6.8% but capacity grew faster, 10.6%, forcing the load factor down 2.6 percentage points to 72.3%. The number of passengers enplaned by the airline grew 0.9% for the month. During the first half of the year, America West's traffic was up 13.9% on an 8.6% increase in capacity. Load factor for the period grew 3.3 points to 71.3%. The number of enplaned passengers rose 8.6%.
Boeing said yesterday that Air Europa, a Spanish inclusive tour operator, ordered 10 737-800s valued at $510 million and reserved options on two more. Deliveries will begin in 1998 and continue through 1999. Boeing has announced orders for 312 of the new-generation 737 family, which it launched early in 1994.
Western Pacific is expected to decide within the next two weeks on the aircraft to be operated by its new regional feeder - Mountain Air Express (MAX) - for service beginning by Dec. 15. The ATR 42-500 was thought to be leading the pack. The Dash 8-200 and Dornier 328 have bounced back, however, with Dornier reportedly very aggressive now that it is 80% owned by Fairchild Aircraft. WestPac will take an initial four aircraft and expand the fleet eventually to 12. Such an order would be a major feather in the cap of Fairchild and Dornier Chairman Carl Albert.
British Airways reached a new tentative pay agreement with its pilot's union yesterday, heading off a strike the group had set for Tuesday. The accord, still subject to a vote by BA's 3,500 pilots, would raise pay for those flying from London Gatwick by 10% but also would increase their work load by 10%, the company said. The pilots union, the British Air Line Pilots Association, insisted that the company raise the rates of Gatwick pilots, who are paid less than their counterparts at Heathrow.
National Transportation Safety Board placed emphasis on weather reporting in the numerous recommendations arising from its investigation of the crash of a Simmons ATR 72 on Oct. 31, 1994, at Roselawn, Ind. (DAILY, July 10, 11). The board called on FAA to tell principal operations inspectors (POIs) to make sure all Part 121 air carriers require their dispatchers to provide all pertinent information, including airman's meteorological information (Airmets) and center weather advisories (CWAs), to flight crews for preflight and inflight planning purposes.
AI(R) Marketing President Alain Brodin is returning to France in October after two lengthy postings to the U.S. as head of the ATR 42/72 marketing program in North America. He will become senior VP-commercial for Aero International (Regional) in Toulouse, in charge of contracts and negotiation. Brodin replaces Jo`91l Le Breton, who ran ATR Marketing from mid-1985 to late 1989. +Le Breton has left the company. Brodin will be replaced by Jean Michel Leonard, who is now president of AI(R) American Support, which is co-located with AI(R) Marketing in Herndon, Va.
Northwest will upgrade service between Minneapolis/St. Paul and Kalispell, Mont., from seasonal to daily year-round flights via Billings, beginning Sept. 10.
DOT made final its show cause order tentatively granting Panagra Airways authority to operate interstate and foreign charter combination service. The Fort Lauderdale carrier applied for the certificates in January, saying it intended to provide supplemental non-scheduled charters, including ad hoc services, sub-service to scheduled carriers and charters contracted by the government (DAILY, Jan. 29). It said it plans to operate Boeing 727-200 aircraft initially within the U.S. and between the U.S. and Mexico, Latin America and the Caribbean Basin.
Frontier Airlines' June traffic jumped 195% to 71.3 million revenue passenger miles in June while capacity grew 115% to 113.9 million available seat miles. The load factor soared 17 percentage points to 62.5%. For the first six months, RPMs rose 167.1%, ASMs 92.8% and the load factor 17 points, to 61.2%.
The European Bank for Reconstruction and Development (EBRD) has provided a credit line of 50 million Deutschmarks to Croatia to aid its tourism industry. Tourism is one of the largest generators of hard currency for Croatia and is responsible for significant employment. The war-torn nation has used hotels to house refugees, and most facilities are in need of significant repairs, according to the EBRD. Croatia's Minister of Finance, Bozo Prka, said Croatia is taking its first steps toward restoring its tourism product.
American Society of Travel Agents will hold its annual travel scam conference Aug. 1 at the National Press Club in Washington, D.C. The conference aims to educate consumers and the media on recognizing travel fraud. Included this year is a presentation on online computer services and how to evaluate travel offers on the Internet. ASTA will present its annual Traveler's Advocate Award, recognizing a journalist's efforts to "champion the rights of travelers." To register, call 703-684-8319.
Air Transport Association's new electronic ticketing standard will enable carriers to ticket itineraries involving more than one airline. Individual carriers will have to work out their own agreements, and several plan to do so by fall.
