- H.R.2459 - introduced Oct. 11 by Rep. John Kasich (R-Ohio) - a bill to amend the Congressional Budget Act of 1974 to extend and reduce the discretionary spending limits and to extend the pay-as-you-go requirements set forth in the Balanced Budget and Emergency Deficit Control Act of 1985. Referred to the Budget and Rules committees.
Sterling, Va.-based United Express affiliate Atlantic Coast Airlines reported a load factor of 43.1% for December, 3.4 percentage points higher than in the same month in 1994. While revenue passenger miles were up only slightly for the month - 0.3% to 25.9 million from 25.8 million - capacity fell 7.7% to about 60 million available seat miles from nearly 65 million in the prior period. The carrier reported a similar load factor improvement for the full year - 3.3 percentage points to 47.7% from 44.4% in 1994.
Two instrumented General Electric CT7-9B turboprop engines should be delivered to Russia's Sukhoi design bureau during the second quarter to power the first prototype of Sukhoi's S-80 multi-purpose STOL aircraft during flight tests, GE reported (DAILY, March 3, 1995). Sukhoi just completed the aircraft, and static tests are under way. Production of the GE-powered Russian transport is slated to begin in late 1997, and Sukhoi managers hope to sell as many as 650 S-80s by 2006.
French aircraft manufacturer Aerospatiale needs a partner willing to increase the company's capital, and finding one is "a task on which decisive progress must be made this year," according to Louis Gallois, president of the French aerospace group. Although the value of orders last year increased to 39 billion francs - about US$7.76 billion - compared with 29.6 billion in 1994, revenues increased during the year only slightly - to 49 billion francs from 48.6 billion in the previous year.
Rolls-Royce's Allison Engine Co. unit has won International Standards Organization (ISO) 9001 certification, the company reports. The third- party assessor, BVQi, recommended certification of the company after an evaluation. BVQi President Greg Swan said, "ISO 9001 is considered the most comprehensive and challenging quality standard because it evaluates quality systems of the entire design, product and service life cycle." Swan said that "with ISO 9001 registration, Allison joins a distinct group of quality manufacturing leaders worldwide."
Northwest Airlines Corp. reported its second consecutive largest-ever annual profit and its 10th consecutive profitable quarter yesterday, and officials said the results would have looked even better if not for the high stock price the company had to apply to stock distributions to employees. Net income for the year was $392 million, or $6.13 per share, up from the record of $295.5 million set in 1994. The company netted $53.5 million, or $1.34 per share, in the fourth quarter, versus the 1994 quarter's $35.9 million.
An accounting change to recognize a sluggish MD-11 trijet market wiped out record performances by McDonnell Douglas's military aircraft segment in 1995, turning what would have been $707 million in net profits - an 18% gain - into a $436 million loss, the company reported yesterday.
Continental Express flew 59.4 million revenue passenger miles last month, a 9.4% increase from the same 1994 month. Capacity grew more slowly - 6.3% to 123.9 million available seat miles from 116.5 million. As a result, the load factor increased more than a percentage points to 47.9% from 46.6%. The number of passenger enplanements rose 7.1% to 283,546 from 26,715. December 1995 December 1994 Rev. Passenger Miles 59,361,859 54,248,805
American and American Eagle are bringing back weekend BreakAAway fares for nonstops from Dallas/Fort Worth, Chicago, Los Angeles, New York, Nashville and Miami. The mileage-based specials, ranging from $79 to $299 roundtrip, require a one-day advance purchase for travel Jan. 19 through May 21. Most passengers must depart on a Saturday and return on Monday or Tuesday. Transcontinental and Hawaii trips require a Friday departure.
New engine-design software developed by General Electric's Schenectady, N.Y., research center not only maps out areas where designers' parts may get in each other's way, but steers designers away from areas that would make repairs and removals difficult, DAILY affiliate Aerospace Propulsion reported. And among the many applications for the software, dubbed Product Vision, is developing the new CF34-8C business and regional jet engine and integrating the newest members of the CFM International CFM56 family on Boeing's next-generation 737.
Nine publicly held regional airlines saw their combined market calendar 1995. The value rose from $1.46 billion at the end of 1994 to 2.15 billion on Dec. 29, 1995, United Express carrier Atlantic Coast posted the largest increase, up 603.7% to $90.3 million. The carrier has undergone a significant restructuring of fleet and routes. Delta Connection Comair topped the market-value list at $795.8 million, up 124.7%; Delta Connection Atlantic Southeast was at $702.6 million, an increase of 34.9%.
BWIA regional partner Carib Express has appointed two new members to its board and continues to look at firming up an alliance with fellow regional airline LIAT, Carib Express said. Carib Express appointed to its board Allan Batson, general manager of Barbados International Travel Services and chairman of the Barbados Tourism Authority, and Stephen Hobson, chairman of NSG (West Indies) Ltd. Bernie Weatherhead recently became chairman of Carib Express, while Geoffrey Cave continues as chairman of the regional's holding company, Project Holdings Ltd.
The U.S. and Japan should commence negotiations on passenger issues as soon as possible to resolve market inequities and spur competition, said All Nippon Airways President and Chief Executive Seiji Fukatsu yesterday. "With Japan and the U.S. already engaged in talks on cargo rights, now is the time to move on to passenger rights," he told the International Aviation Club in Washington. ANA had pressed for passenger talks to be held in conjunction with ongoing cargo negotiations, Fukatsu said in a news conference.
Mesa Air Group says its Fokker 70 operations "have been marginal to unprofitable and have not met management's expectations." The airline operates two F70s as America West Express, and said in its recent SEC 10-K filing that its agreement with Fokker permits it to return the aircraft between 12 and 18 months after delivery, subject to a six-month notice. "Unless current operating results improve or Mesa is able to obtain amendments to the Fokker agreement, it may be necessary to exercise its option to return the aircraft," the carrier said.
Wall Street believes newly appointed USAir Chairman Stephen Wolf has a tough job ahead, but if anyone can fix the ailing airline, it is Wolf. Three airline analysts shared opinions on Wolf's prospects yesterday at the fifth annual Global Financing Opportunities symposium in San Francisco. "USAir is one sick puppy," said Furman Selz analyst Ray Neidl, "but if I had to bet, I'd say he [Wolf] can do it [turn the airline around]." Because U.S.
Fish where the fish are biting.Northwest "totally" supports U.S. policy on international aviation negotiations - devote resources to areas where progress can be made, and "leave the British to stew in their own juices," says Michael Levine, executive VP-marketing and international.
AMR Corp. reported increased profitability in 1995 at its Sabre and Management Services groups, and its Airline Group financial results were better than they look. Sabre logged net earnings before taxes of $53 million in the fourth quarter, up from $45 million in the year-earlier quarter, and $371 million in the full year, up from $321 million in 1994. Margins were 13.5% for the quarter and 22.8% for the year, versus 12.6% and 21.9%, respectively, in 1994.
General Electric yesterday reported record results for 1995 including revenues of $70 billion and net earnings of $6.6 billion, up from $60.1 billion and $4.7 billion in 1994. In the fourth quarter, GE had revenues of $19.8 billion, up from $17.8 billion, and net earnings of $1.9 billion, up from $768 million. GE said its Aircraft Engines unit realized "double- digit increases in operating profit."
Air Transport Association quietly celebrated its 60th anniversary Jan. 14 during the Blizzard of 1996.The association was formed in 1936 in Chicago with 19 members. Its membership peaked in 1959 with 45 full members, including four foreign airlines. Today, ATA counts 24 members - 21 U.S. and three foreign airlines. Of the 19 original members, only four - American, Delta, Northwest and United - still are operating.
The Daimler-Benz board was expected to meet Monday to decide its future commitment to Fokker, but the fate of the Dutch regional aircraft manufacturer looked uncertain as rumors surfaced this week about the inability of the Dutch government and DASA to reach agreement over a financing package. Fokker officials yesterday confirmed that the Daimler- Benz board was set to meet Monday to discuss Fokker and that the Fokker board may follow suit the same day. The officials could not predict the outcome of that meeting, however.
Top priority on the Travel Industry Association's agenda for 1996 is to coordinate and carry out recommendations from the National Travel and Tourism Strategy that grew out of the White House Conference on Travel and Tourism. TIA National Chairman Sandra Fulton, in remarks prepared for an industry lunch canceled last week, states the Implementation Team has a plan to implement the top 10 recommendations. A final report by the team and a plan for the structure of a national tourism office will be issued by the end of March, she said.
95 Major Monthly Traffic December 1995, 12 Months (000) December December % 1995 1994 Change America West Revenue Passenger Miles 1,077,371 975,634 10.4 Available Seat Miles 1,629,273 1,570,559 3.7
FAA early next week is expected to issue a proposed rule that would advise the flight crews of specific regional-airline turboprops how to recognize potential serious icing conditions and require that they exit those conditions when encountered. The proposal results from recent flight testing of individual models behind aerial water tankers and with molded ice-shapes to replicate certain icing conditions known as "super-cooled drizzle drops" like those encountered by the American Eagle ATR 72 near Roselawn, Ind., Oct. 31, 1994.
Only about 15% of bird strikes against aircraft are being reported, according to preliminary information from a bird ingestion conference sponsored Jan. 11 by the National Transportation Safety Board. "We need better reporting to really understand the problem," NTSB member John Goglia told The DAILY. The session established that bird ingestion could represent up to one-third of in-service damages to the fleet, he said. "The predominant airplane in the fleet today is two-engined. These engines were certified with [ingestion tests using] 1 l/2-pound birds.
