British Airways is considering spinning off its British Airways Engineering unit into a separate company to make it more competitive and less reliant on business from the airline.BA says the spinoff would not result in layoffs and no final decision has been made, but it will trim jobs at the unit over the next three years.
McDonnell Douglas DC-9 And MD-80 Systemwide Aircraft Utilization Per Day Third Quarter 1995 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 31 89 34 Total Fleet Operations Departures 172 453 195
American has added 13 cities to its AAdvantage dining program, which enables frequent flyer members to earn miles by eating out. For the first time, the program includes restaurants outside the U.S., in London, Toronto and San Juan, Puerto Rico. The other new cities are Albany, Cleveland, Detroit, Kansas City, Las Vegas, Milwaukee, New Orleans, Providence, Sacramento and St. Louis. Miles can be earned now in all cities except London, which becomes effective March 1. Members earn three miles for every U.S.
Most parties advocating BAA Plc's proposal to construct a fifth terminal at London Heathrow say the airport management company and the airlines have won their economic arguments, corroborating a recent report in The Observer that the project will go ahead and the only issues remaining are the nature and extent of environmental restrictions that will be imposed. The opposition has been fierce in the long-running inquiry, and parties expect the U.K. government to apply strict environmental conditions.
Two labor unions that lost elections in 1994 to represent workers at America West are attempting to organize again. The Transport Workers Union has filed an application at the National Mediation Board to represent the carrier's fleet service workers, and the International Brotherhood of Teamsters (IBT) is seeking representation of mechanics and related employees. The TWU in December 1994 received only 309 votes from 1,527 eligible voters (DAILY, Dec.
DOT has tentatively chosen Alaska Air Group subsidiary Horizon Air to continue to provide essential air service at Ephrata/Moses Lake, Wash., until Dec. 27, 1997. The tentative decision calls for Horizon to operate two roundtrips each weekday between Ephrata/Moses Lake and Seattle with 18-seat Fairchild Metro IIIs, for which DOT will pay an annual subsidy of $177,628 - a reduction from the previous rate of $210,653 per year. The $210,653 previous annual subsidy was itself a reduction from the $326,875 originally authorized for the service. DOT on Nov.
Training will begin April 1 on a new RJ85 flight simulator installed at Lufthansa's Berlin Schunefeld Airport flight training center, the carrier reported. The 20-million-Deutschmark simulator, developed by the Canadian CAE Group, was flown to Berlin Feb. 18.
United Express affiliate Great Lakes Aviation will be allowed to suspend service today at Marinette, Wis./Menominee, Mich., DOT said. The agency called for proposals from carriers interested in providing essential air service at the point - without subsidy. DOT left open the possibility of subsidy "in the event that program spending obligations decrease sufficiently to enable the department to provide such support."
Opposition among regional airlines is growing to a user-fee-supported FAA called for by the Senate McCain-Ford bill, according to RAA President Walt Coleman. Long-haul carriers American, Delta and Northwest support the measure, while low-fare and other carriers that fly high-frequency, short-haul routes fear they will be forced to pick up proportionately more of the tab. An "alliance" of aviation companies and associations is quietly lobbying for continued general-fund and excise tax support of the aviation infrastructure as well as a more independent FAA.
Continental plans to issue $200 million of 6 3/4% convertible subordinated notes due April 15, 2006, in a private placement, the carrier said this week. The notes will be convertible into Class B common stock of Continental at an initial conversion price of $60.39 per share. The carrier will use proceeds from the offering to reduce debt and for general corporate purposes. The notes are expected to be listed on the Luxembourg Stock Exchange, with the closing late in March.
Lack of clarity and precision in FAA policy is one of the largest impediments to airport privatization, proponents of privatization told the House Transportation aviation subcommittee yesterday. Wilbur Ross, senior managing director of Rothschild Inc., told the panel that FAA's proposed airport revenue policy seemed to open the door slightly to airport privatization (DAILY, Feb. 26), but "we do forecast considerable investor confusion over the many ambiguities contained in the FAA's proposed policy." Rothschild Inc.
TWA has opened a World Wide Web site on the Internet offering flight schedules, airport maps, frequent flyer information and weather news. The page can be viewed at http://www.twa.com.
Citing "current market conditions," Saab Aircraft AB said Thursday it will lay off 540 workers at its aircraft manufacturing facility in Linkuping, Sweden, about 9% of its roughly 6,000 employees. Included are 440 shop-floor workers and 100 office staff. Saab President Hans Kruger said the company maintains its policy to be market-oriented and adjust its resources to market demand. "The present market conditions and the company's order bookings require us to adapt our resources to lower volumes," he said.
Cathay Pacific Airways said it will use the four Boeing 777-200 aircraft due for delivery in May on routes connecting Hong Kong with Taipei, Tokyo Osaka, Bangkok, Bahrain and Dubai.
Aviation Industries of China emerged yesterday as an unexpected potential buyer of Fokker. The state-owned Chinese aircraft company will send officials to Amsterdam next week for talks with the court-appointed administrators of Fokker, sources close to the Dutch aircraft manufacturer said.
Pilots at United Express Great Lakes this week voted be represented by Teamsters Union, the union reported. Of 344 eligible voters, 276 voted for Teamsters representation and 15 for the Air Line Pilots Association; five ballots were declared invalid. The Great Lakes pilots had been represented by the independent Great Lakes Pilot Association. Ray Benning, director of the union's Airline Division, said, "Pilots found they were trying to do a full-time job on a part-time basis. So they sought out Teamster representation."
DOT has made final its order finding Sun Pacific International fit to operate domestic and international combination charter service. The Tucson-based carrier plans to offer sub-service to other certificated supplemental charter air carriers, providing aircraft, crew, maintenance and insurance and using a 727-200 (DAILY, Sept. 14, 1995). (Dockets OST-95-585&OST-95-586)
Mesa Air Group has posed two scenarios under which it could return its two Fokker 70s to the manufacturer, at a $3 million penalty. In a recent 10-Q filing with the SEC, the carrier says that although the jet operation has become "marginally profitable," the F70s have not met expectations. Unless results improve or its agreement with Fokker can be amended, Mesa said it may exercise its option to return the aircraft.
The Boeing 777 powered by the Rolls-Royce Trent 800 turbofan engine received its type certificate from FAA and Europe's Joint Aviation Authorities. The 90,000-pound-thrust engine won certification early last year, three months ahead of schedule, and the 777 flight test program, including tests at 90,000 pounds thrust, was "flawless," said Project Director Phil Hopton. The flight test program accumulated 550 hours during 180 certification flights. Rolls said the engine has captured more than 35% of the market for 777 engines.
Operating margins for seven publicly held regional airlines increased an average of 2.3 percentage points during the December quarter. Delta Connection Comair surpassed fellow Connection carrier Atlantic Southeast with a 6.3-point increase year-over-year to 18.8%, the highest margin in the group. ASA saw its operating margin decline by 5.2 point to 18.3% in the fourth quarter. Scoring the biggest gain was United Express Atlantic Coast Airlines. It went from a negative 5.8% to a positive 8.3% - a differential of 14 points.
Anchorage, Alaska-based Peninsula Airways was selected by DOT to provide essential service at 11 Kodiak Island, Alaska, bush communities, eight of which will receive subsidized EAS. The term of the award is until Jan. 31, 1998. At the same time, DOT reduced the EAS service determination for Parks/Uyak to zero, thereby allowing service to lapse altogether. Peninsula had competed with Island Air for the Kodiak Island EAS award. MarkAir Express, the previous operator, entered Chapter 11 bankruptcy hearings Nov. 17, and its parent, MarkAir, is being liquidated.
TWA applied yesterday for authority to begin operating as soon as possible daily nonstop St. Louis-Tokyo service and three weekly flights between St. Louis and Osaka one year later. (Docket OST-96-1121)
