Reno Air boosted its load factor to 68.2% last month, a 10.9-point gain from the same month in 1995. The carrier logged traffic of 212.4 million revenue passenger miles, a 60% increase. For the month, Reno Air carried 360,613 passengers, a 31.3% increase over 1995 levels. Capacity for the month grew 34.4% to 311.2 million available seat miles. It was the seventh consecutive month of year-over-year traffic gains by the airline. Reno, which operates a fleet of 24 MD-80 series jets, is scheduled to take delivery of two MD-90s this month.
TWA has reinstated its travel agency agreements with two travel agencies - Colpitts World Travel and Hobbit Travel - that TWA said had violated their agreements with the carrier by selling discount TWA tickets obtained from Global Discount Travel Services (DAILY, March 7). TWA said the two agencies immediately agreed to desist from selling or distributing the tickets. Both actions happened Wednesday, and TWA said it applauds the quick action taken by the agencies.
Nine regional airline stocks averaged a 24% increase in price during February, jumping from an average of $9.64 per share at the closing of the market in January to $11.98 on Feb. 29. Total market value of the nine stocks rose $606.2 million to $2.56 billion. Two Delta Connection affiliate carriers had outstanding months. Atlantic Southeast stock was up $7.81 to $26.25 per share while Comair stock rose $6.50 to $31.13. Two others were up by more than $2 - Mesa Air Group climbed $3.81 to $11.88 and United Express Atlantic Coast was up $2.50 to $11.50.
Hawaiian Airlines is distributing maps of the Hawaiian islands to passengers inflight while flight attendants point out places of interest. Hawaiian said its Mea Ho'okipa Service, which involves playing traditional Hawaiian music during boarding and debarkation, discussions of cultural traditions by employees and serving Hawaiian beverages, is a continuing effort to educate passengers and employees on Hawaii's history.
Northwest has lined up several tour operators to offer package vacations to China. The carrier starts nonstop service to Beijing from Detroit three times a week as of May 1 with a 747-400. Seven- or eight-day tour packages starting at $1,000 per person will be on sale for travel through June 30. Tour operators offering the packages include Northwest WorldVacations, Pacific Delight Tours, TBI Tours, Pacific Bestours and Aberdeen Tours. The packages can be booked through travel agencies but are not available directly from Northwest.
The U.S. airline battle for as-yet-unsecured U.S.-Japan services continues to heat up despite continuing difficulties in U.S.-Japan all-cargo negotiations. Following last week's application by American for U.S.-Japan services, United tendered a bid to operate Chicago-Osaka, Seattle- Tokyo/Osaka and Washington-Tokyo/Osaka flights. It also asked that DOT lift the limits on the frequencies it may operate between Chicago and Tokyo, or add eight weekly frequencies to its present allocation of six.
Pension Benefit Guaranty Corporation is beginning compliance checks this month to ensure corporations with large underfunded pension plans are informing workers and retirees of funding levels and PBGC guarantees. PBGC is surveying a cross section of the affected companies to ascertain compliance with the Retirement Protection Act of 1994. The law requires that companies notify employees and retirees if their plans are less than 90% funded. Companies must verify by September that they have sent the notices.
Regional jets will dominate the regional aircraft market over the next 20 years, according to Aviation Systems Research's Michael Boyd. He says that of 22.000 airplanes of 30 passengers or more, 6,300 will be jets in the 50- to 90-seat category. More than half of those will be 50-seaters, he says, with the remainder 70-seaters. Turboprops will account for 3,100 units over 20 years with large turboprops of 60 seats or more being at the weakest end of that market, he said; he added, however, that projecting out 20 years is "dicey" at best.
United, in reports to FAA, complains of electrical and other problems that interrupt its 777 service. Although the carrier yesterday refused to give out the dispatch reliability of the aircraft to date, reliability was less than 95% three months after entry into service (DAILY, Sept. 25). In contrast, the Airbus A340 and the A330 competitors were at 98.3% and 98.6% dispatch reliability after three months in service. The 777A and the A330 are competitors, as are the 777B and the A340.
Dutch aircraft maker Fokker, still hoping for a chance to survive, presented a new business plan to Dutch banks and pension funds this week, but continuing talks with potential investors have not yet produced any public support for the company. A decision on the stricken company's future is not expected before next week.
United Express affiliate Atlantic Coast's load factor rose 1.1 percentage points last month to 40.5%, as traffic increased 6.4% to 22.6 million revenue passenger miles and capacity rose 3.5% to 55.7 million available seat miles. Feb. 1996 Feb. 1995 2 Mths 1996 2 Mths 1995 RPMs 22,552,000 21,195,000 43,208,000 42,372,000 ASMs 55,662,000 53,802,000 109,252,000 113,885,000
Air Canada affiliate AirBC will begin Spokane, Wash.-Calgary, Alberta, nonstop service April 22, Air BC announced. The carrier will fly two daily frequencies using 37-passenger de Havilland Dash 8-100 aircraft.
Singapore wants to talk about open skies when it begins negotiations with the U.S. April 23 in Washington. U.S. officials will listen but are not sure they want to go that far. In the absence of open skies, both look to expand scheduled service and charter opportunities, and liberalize routes, while addressing "doing business" issues.
CCAIR made 22.5 million seat miles available in February, a 3% decline from February 1995. But the USAir Express affiliate's traffic rose 7.8% from the same month in the prior year to slightly more than 10 million revenue passenger miles. Feb. 1996 Feb. 1995 2 Mths 1996 2 Mths 1995 RPMs 10,039,376 9,311,946 19,682,779 19,180,625 ASMs 22,452,075 23,157,471 45,975,074 48,934,412
Top 25 Domestic City-Pair Markets Under 750 Miles O&D Passengers Third Quarter 1995 Short Total Average Haul Markets Non-Stop Passengers Rank Rank City-Pair Mileage Per Day 1 1 Honolulu - Kahului 100 8,543 2 2 Chicago - New York 723 8,506
America West's traffic grew 23.7% last month, compared with February 1995, on 11.1% more capacity. The load factor was up 7.2 percentage points to 70.3% as passenger boardings rose 18%. For two months, traffic was ahead 20.8% on 7.1% more capacity, pushing up the load factor 7.6 points to 67.2%. Feb 96 Feb 95 2 Mths 96 2 Mths 95 RPMs 1,120,361,000 905,46,000 2,687,956,000 2,340,760,000 ASMs 1,593,667,000 1,434,515,000 3,218,189,000 3,005,636,000
Airbus Industrie said Aeroflot will lease four more A310-300s, bringing to 10 the number of A310s it will operate in the near future, and Iberia took delivery of the first of eight A340-300s. Aeroflot also is to receive an A310 simulator to train its own pilots and to offer training to other airlines. Iberia will receive three more A340s before yearend and all eight by 2001.
KLM flew 614.6 million revenue ton kilometers (RTKs) last month, a 10% increase from February 1995 levels. Capacity was 863.2 million available ton kilometers (ATKs), an increase of 13%. Overall load factor was 71.2%, down 2.2 percentage points. Revenue passenger kilometers flown increased 13% to 3.29 billion, while available seat kilometers rose 10% to 4.68 billion. The passenger load factor was 70.4%, a 1.9-point jump. For April through February, revenue ton kilometers rose 10% from the same period in 1995 to 7.38 billion RTKs.
The Michigan congressional delegation is urging DOT to reverse its show cause order and grant Northwest rights to operate new Detroit-Rome service. DOT has tentatively selected USAir to operate new Philadelphia-Rome service beginning April 1.
...Mesaba Holdings will look at regional jets once it absorbs its acquisition of 50 (Dornier 328 or Saab 340) turboprops, and that decision will come "very soon," The DAILY is told. Still pending is whether Northwest will lease the aircraft and then sub-lease them to Mesaba, in which it holds a 30% stake, or whether Mesaba will lease the airplanes directly from the manufacturer. The latter option would lower the bottom- line lease costs for Mesaba. Meanwhile, Mesaba's total control of the Minneapolis hub would probably justify a 50-passenger jet in the fleet mix.
TWA's traffic increased 15.2% last month, compared with February 1995, on 11.4% more capacity, resulting in a load factor gain of 2 percentage points to 61%. The number of passengers carried grew 17.3%. For two months, the carrier's traffic was up 6.3% and capacity 5.8%, while the load factor rose 0.3 points. The number of passengers carried grew 8.7%. TWA's results for the year are consistent with its plan to increase operations by 5% to 7% this year, said Robert Peiser, executive VP and chief financial officer.
Multi-affiliated Mesa Air Group flew 110.5 million revenue passenger miles last month, a 36.1% increase from February 1995's 81.2 million. Capacity rose 15% to 196 million available seat miles from 170.5 million, pushing the load factor up 8.7 percentage points to 56.3% from 47.6%. Passenger enplanements increased 16.4% to 502,642 from 431,931. For the first two months of the year, RPMs increased 32.3% to 215.8 million; capacity gained 14.1% to 405.6 million ASMs, load factor rose 7.3 points to 53.2% and passenger boardings increased 13.2% to 984,437.
American will begin daily nonstops between Dallas/Fort Worth and Santiago Chile Nov. 1. The flights are in addition to service between Miami and Santiago. American will start selling the flights March 17. They will be operated with a 767-300 in a three-class configuration.
