Air Express International said its net income increased 36% to $9.1 million in the fourth quarter of 1995 as revenues rose 13% to $334.9 million. For the year, net income gained 28%, to $29 million, and revenues increased to $1.2 billion. Operating income increased 37% for the quarter, to $15.3 million, and 30% for the year, to $49.6 million. Guenter Rohrmann, president, said the company "experienced sold growth in all segments of our logistics business throughout the world" during 1995.
Boeing 747-200 with winglets will be put into flight testing late this year in a program expected to interest freighter operators. The "blended" winglets, developed by Aviation Partners of Seattle, improve wing aerodynamics and may add as much as an extra hour of range to the aging 747 model. Technical issues are "manageable," according to Aviation Partners Chief Executive Joe Clark, and the cost of the modification is estimated at $1.35 million per aircraft.
It will cost more to apply for permission to start up a new airline and fewer companies are likely to attempt it - or succeed - if the Transportation Department and FAA adopt newly published suggestions from the General Accounting Office. GAO said DOT and FAA should consider making new-entrant airlines pay a larger portion of what it costs the government to certify them. Also, the auditing agency commented that DOT and FAA are spending millions of tax dollars on certification services for applicants that "never begin operations" as new-entrant airlines.
All Nippon Airways and Austrian Airlines have applied to the Japanese and Austrian governments to begin joint service between Osaka's Kansai Airport and Vienna. The carriers plan to offer roundtrip flights twice a week using an Austrian A340. It is the first nonstop scheduled service between Osaka and Vienna, ANA said. The new service will carry 15,000 passengers and 300 tons of cargo in the first year, ANA estimated. It will be the 16th international route for ANA from Kansai. The two airlines have operated joint service between Tokyo and Vienna since 1989.
IATA has mounted a campaign to obtain the four ratifications needed to allow airlines to use electronic air cargo records. A Montreal protocol was negotiated more than 20 years ago, but only 26 of the 30 nations required to ratify it have done so. The air cargo industry needs the pact to reach its full market potential, IATA says.
American Society of Travel Agents has thanked the new Pan Am for its plan to offer full travel agent commissions when it starts service, expected this summer. ASTA President Jeanne Epping said Martin Shugrue, head of the airline, "recognizes the critical service and revenue stream that travel agents provide to airlines."
Atlas Air, which operates a fleet of 747 freighters, reported that its fourth quarter net earnings increased 151% from the 1994 quarter, to $8.4 million, representing a 15% profit margin. Operating profit jumped 175% to $16.2 million, and revenues gained 57% to $56.1 million. For the year, net income was $17.8 million, up from $3.6 million; operating profit was $42.7 million, up from $13.9 million, and revenue was $171.3 million, compared with $103 million.
CanAir Cargo is seeking renewal of its authority to operate passenger service between a point or points in Canada and a point or points in the U.S. CanAir operates charter flights between Canada and Florida, as well as fifth-freedom charters using Convair-580, Boeing 737 and Airbus A320 aircraft. (OST-96-1061)
Several airlines at Atlanta Hartsfield Airport will begin relocating in the next few days as Atlantic Southeast Airlines, a Delta Connection carrier, moves all of its operations to 15 gates on Concourse C North. The Atlanta City Council last week approved an agreement to relocate ASA's operations to reduce connecting time with Delta. ASA will begin operating from the gates May 1. The move requires Air South, AGI, Kiwi, TWA and ValuJet to relocate.
Air France flew 4.2 billion revenue passenger kilometers last month, an 8.8% increase from January 1995 figures. Capacity for the month was 6 billion available seat kilometers, a rise of 4.5%. The load factor was 70%, up 2.8 percentage points. Freight ton kilometers increased 2.2% to 332 million.
DOT has renewed Thai Airways International's exemption to operate scheduled combination service between Bangkok and Los Angeles via Seoul, with full traffic rights between Seoul and Los Angeles. The carrier operates four weekly flights on the route, using 747-400 aircraft (DAILY, Jan. 26). (Docket OST-95-338)
DOT has granted United exemption authority to integrate its Miami-Lima and Miami-Santiago services to enable it to operate on a Miami-Lima-Santiago routing. The department also allocated to United three weekly frequencies for services beyond Lima to Santiago, which the carrier will use to operate three weekly Boeing 757 flights (DAILY, Sept. 19, 1995).
Pilot unity at Federal Express continues to be the top priority for the established Air Line Pilots Association (ALPA) and the FedEx Pilots Association, which wants to represent the pilots. ALPA, saying talks with the company on its first collective bargaining contract are nearing completion, is on a membership drive. ALPA is urging pilots to join its ranks so that they can vote on the contract and help determine their own futures.
Midwest Express has dropped plans for now to add 30-seat turboprop aircraft to its Astral Aviation unit. The carrier planned to acquire the aircraft in 1996 for Astral, which operates as Midwest Express Connection carrier Skyway Airlines. Astral operates 15 Beech 1900Ds. "We remain convinced of the potential of a large turboprop program and will pursue our plans when the timing is right," said Timothy Hoeksema, chairman and chief executive of the Milwaukee-based company. Midwest Express has acquired another DC-9- 30 aircraft, bringing its jet fleet to 22 aircraft.
ValuJet Airlines has agreed to purchase 11 used McDonnell Douglas aircraft, nine DC-9-30s and two MD-83s, for delivery by the end of the first quarter of 1997. The carrier will use the airplanes to build up service at its newest focus cities, Boston and Orlando, with more nonstops, and to serve new cities that it will announce in mid-March. A ValuJet spokeswoman said yesterday that some of the aircraft also may be used to add frequencies on existing routes.
Association of Flight Attendants has filed an amended lawsuit in Georgia against ValuJet that adds four plaintiffs to the complaint alleging that the carrier has disciplined or fired flight attendants who were union supporters, and that it continues to mistreat outspoken union members. The suit also alleges that ValuJet President Lewis Jordan, among other managers, is one of the offenders. The AFA says Jordan threatened one of the plaintiffs if she continued to wear a T-shirt displaying her support for AFA.
Air Transportation Holding posted net earnings of $353,000, or 12 cents per share, for its fiscal third quarter ended Dec. 31. Year-to-date net earnings were $1.2 million for the overnight air service provider.
During the second half of 1995, the standard industry fare level (SIFL) was up 2.1% over the same period in 1994, said DOT. Although fares were deregulated Jan. 1, 1983, the department has continued to calculate the SIFL to evaluate the reasonableness of fares in essential air service market and carrier pricing in the free market system.
China Airlines has applied for exemption authority to operate scheduled combination service between Taipei, Taiwan, and Houston. Granting the authority "would allow CAL the flexibility to provide Taipei-Houston service that is able to adapt to the demands of the market," said the carrier, adding that it is negotiating with Continental to operate Taipei- San Francisco-Houston service on a code-sharing basis. Under the plan, CAL would operate the Taipei-San Francisco and Continental the San Francisco- Houston segments.
Traffic of Canadian Airlines International increased 5.3% last month from that of January 1995 on 3.4% more capacity. The carrier flew 1.2 billion revenue passenger miles for the month on 1.9 billion available seat miles, gaining 11% in domestic and 4% in international RPMs. As of January, its traffic data include frequent flyer redemption travel. The load factor grew 1.1 percentage points for the month, to 63.2%.
U.S. Major Carriers Pacific Share of Service Third Quarter 1995 Total Revenue Departures American 525 Delta 1,040 Northwest 5,926 United 5,584 Total 13,075 Average Number of Seats Per Departure American 244 Delta 253
Air Wisconsin Airlines Corp., a United Express operator, experienced a drop of 7.2 percentage points in its load factor in January, to 44.6% from 51.8% in January 1995. Revenue passenger miles for the month increased 19%, to 36.3 million, on 81.4 million available seat miles, up 38.4%. The number of passengers carried in January was 135,638, down 6.7% from 145,322.
New Jet Aircraft Deliveries, October 1995 Last 12 Months Carrier # Type Engines Delivery Air Canada 1 767-300ER PWC4060 0 Air Inter 1 A321-100 CFM56-5B 2 Air Littoral 1 Fokker 70 Tay620-15 3 All Nippon 1 777-200A PW4084A 0 American Trans Air 1 757-200 RB211-535E4 2
