FedEx said yesterday net income for the quarter ended May 31 increased 8% to $87.2 million from $80.7 million, while net income for its fiscal year was up to $297.6 million from $204.4 million. Revenues for the quarter rose 9% to $2.5 billion, and revenues for the year increased 11% to $9.4 billion. Operating income was $174.1 million for the quarter, down from $193.7 million. Operating income for the year totaled $591.1 million, compared with $530.6 million last year. International operating profit was $34.4 million for the quarter, up from $20.4 million.
SatoTravel has won its first corporate account with QUALCOMM Inc., San Diego. It will provide travel services to the company through a local travel office and its corporate call center in Arlington, Va. The travel company began seeking corporate accounts last year in response to shrinking military and government travel budgets.
CDB Research&Consulting said a survey of 1,189 analysts gave Delta the highest combined rating on operating performance among four major airlines in a "Hidden Value" study conducted in cooperation with Financial World magazine. The study covered all types of companies, and analysts were asked what companies they track. Delta, AMR Corp., UAL Corp. and Southwest were the only airlines included.
Moody's Investors Service is reviewing the Aa3 long-term debt rating of certain guaranteed subsidiaries of Daimler-Benz AG for possible downgrade, and it assigned yesterday a counterparty rating of A3 to British Aerospace Public Ltd. Co. (PLC). The Daimler-Benz review will consider the German company's need to bolster the competitive position of its principal business unit and to reduce its exposure to high-cost German production through the transfer of production facilities and purchasing activity abroad.
Commuter Safety Rule comments ended Wednesday with a number of sharp reminders that the Part 121 upgrade could spell the end of 19-passenger regional-airline transportation. The gist of the comments was that FAA failed to justify or provide "sufficient substantiation" for Part 135 scheduled flight operations to be brought up to Part 121 standards across the board.
Western Pacific Airlines elected officers and four new board directors this week at its first annual shareholders meeting in Colorado Springs. Martin Dugan was re-elected as a director. The new directors are Clayton Bennett, Ivan Irwin, Glenn Stinchcomb and James Wikert. Founder Edward Beauvais and Trevor Van Horn will remain on the board; they were not required to stand for re-election.
Turks Air is seeking renewal of its authority to operate non-scheduled all- cargo and charter freight service between the Turks and Caicos Islands and Miami. Under its current exemption, the carrier may use only wet-leased aircraft from a carrier that has received requisite economic authority from DOT. In its filing, Turks points out it has renewed a long-term wet-lease for all-cargo operations with DHL Airways. It also has a long-term wet- lease for all-cargo operations with Trans-Air-Link Corp. (Docket 48134)
Talks between the U.S. and Japan are expected to begin Wednesday, a senior U.S. government official said yesterday. Likely to last two or three days, the meetings will follow a specific agenda. First, the U.S. will press Japan to honor its responsibilities to Federal Express on beyond-Japan cargo rights under the U.S.-Japan bilateral. If the U.S. can be sure that Japan will live up to its commitment, the official said, then the U.S. will address a cargo agreement.
Honeywell signed an agreement with Ramensky Priborostroitelny Zavod, a Russian manufacturer of inertial reference systems, for co-production of Honeywell navigation systems for customers in the Commonwealth of Independent States.
Senate Commerce Committee Chairman Larry Pressler (R-S.D.) became the 23rd senator to sign on to S.304, a measure to repeal the transportation fuel tax applicable to commercial aviation. Noting that South Dakota currently suffers from insufficient airline service, Pressler said the tax could lead cost-cutting airlines to target less productive routes and "make a bad situation in my state worse."
FAA advised airline passengers this week to use their seat belts when they are seated. The advisory follows recent incidents in which passengers were injured when their aircraft flew into "severe turbulence." DOT has ordered FAA to study whether it needs to toughen seat belt rules. FAA's latest revision, in 1992, requires that passengers fasten seat belts when warning lights are on.
Aviation groups are supporting a proposal backed by Rep. Tom DeLay (R- Texas) to reallocate $100 million in big-city transit operating assistance to the Airport Improvement Program, bringing the House AIP recommendation to $1.7 billion.DeLay is expected to offer the amendment today during Appropriations Committee consideration.
Three Alaskan carriers have joined forces to oppose Alaska Island Air's (AIA) bid for an exemption from the 45 day review period to restart service after having its Part 135 certificate suspended by FAA. The agency had suspended the carrier's certificate for violating Federal Aviation Regulations.
Cathay Pacific Airways wants the air services agreement between Hong Kong and Australia to be limited to operations within that market, avoiding the "unnecessary complications" of fifth-freedom issues.
European Commission will investigate whether the joint venture formed by British Aerospace, Aerospatiale of France and Alenia of Italy - aimed at cooperation in marketing, sales and support of regional aircraft - will satisfy European Union competition rules.The decision represents a setback to the joint venture, which envisions eventual development of a new aircraft.
ValuJet plans to suspend its newly launched Washington Dulles-Montreal service July 11 for lack of traffic. "Whether we were affected by cultural, currency or language differences, we clearly were not able to generate enough business to operate profitably in this market," President Lewis Jordan said yesterday. ValuJet flies two daily roundtrips, and customers holding confirmed reservations after July 11 can receive a refund or fly on Air Canada or USAir, which serve Montreal from Washington National.
Boeing 747 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 B747-100 Continental Northwest TWA Number of Aircraft Operated 2 23 9 Total Fleet Operations Departures 2 38 13 Block Hours 18 272 88
Taiwan's Civil Aeronautics Administration, ignoring complaints from the island's domestic airlines, says it will implement a system of special landing fees at nearly all Taiwan airports on Aug. 1. The fee, varying according to the size of the aircraft, will be about US$368 for a Boeing 747. A CAA spokesman said the more than US$19.5 million the new tax is expected to generate every year will be used to combat noise pollution near the airports.
Nielsen AIR, a joint effort launched this year by Nielsen Media Research and AIR Marketing Services, Inc., will soon make available to airports, advertisers and airlines the results of a passenger survey on airport and inflight advertising. The company surveyed 3,000 passengers and visitors at Chicago O'Hare, Dallas/Fort Worth, Newark, Minneapolis/St. Paul, Portland and 14 other major U.S. airports.
FAA, under political pressure, failed to do its homework last winter when it rushed to issue a proposed rule within 100 days to bring safety requirements for smaller turboprop aircraft up to the standards of larger air transports, according to industry comments filed this week with the agency.
British Airways estimates that its 747 fleet will use 50,000 fewer metric tons of fuel a year, saving $12.1 million, through use of the Automatic Dependence Surveillance (ADS) system, otherwise known as the Future Air Navigation System. With other associated benefits, the carrier believes it can save $32.23 million a year with ADS.
Air Canada is offering an introductory fare of US$99 roundtrip to publicize the launch of its daily Montreal-Atlanta service Tuesday, July 4. The coach fare, which is available until July 17 with a three-day advance purchase, is good for travel until Sept. 30. The fare requires a minimum stay of one Saturday night and allows a stay of 30 days. Members of Air Canada's Aeroplan frequent flyer program and partner Continental's OnePass program will receive triple mileage on Air Canada flights in the Montreal- Atlanta market until Aug. 31.
Sabre Travel Information Network has expanded its Bargain Finder Plus product to process international as well as domestic itineraries. The product had been available only for U.S. and Canadian city-pairs. Bargain Finder Plus automates the search for lower airfares, increasing agent productivity by reducing time in locating a lower fare. The product, which is available to Sabre subscribers in the U.S., Canada, Puerto Rico, the U.S. Virgin Islands, Bermuda, the Bahamas and countries in the Caribbean, is host-based and does not require additional software.
