FAA yesterday issued its proposed rules to prohibit the operation of turboprop passenger transport aircraft in freezing rain or drizzle as determined by certain visual conditions. The proposed new rule, on which comments must be received by March 7, was prompted by the October 1994 crash near Roselawn, Ind., of a ATR-72 operated by Simmons Airways that killed all aboard.
Great Lakes Aviation flew 20.2 million revenue passenger miles in December, a 6.9% increase from the same 1994 month. Available seat miles rose 18.3% to 48.5 million, however, driving load factor down 4.4 percentage points to 41.7%. For the year, capacity rose 18.6% to 566.3 million ASMs and traffic increased 16.7% to 248.6 million RPMs. The 1995 load factor dipped 0.7 percentage points to 43.9%, compared with 44.6% in 1994. Great Lakes operates 39 Beech 1900s and 12 Embraer Brasilias.
General aviation industry in 1995 delivered 1,077 units, up 16.1% from the previous year and the highest number since 1990, the General Aviation Manufacturers Association reported yesterday. Total dollar billings jumped 20.6% over 1994 to $2.8 billion. "The industry is entering 1996 in better shape than any other recent year," said GAMA President Edward Stimpson.
U.S. Regional Airline Industry Passenger Traffic Activity Third Quarter 1995 48 STATES/HAWAII/PUERTO Third Third Percent RICO/VIRGIN ISLANDS Quarter 1994 Quarter 1995 Change Revenue Passenger Miles 3,286,064,057 3,473,012,680 5.7 Available Seat Miles 6,212,652,221 6,684,186,201 7.6 Passengers Carried 15,383,931 15,281,815 (0.7)
Very strong fourth quarter performance led Southwest to record earnings in 1995. The carrier turned in net income for the quarter of $43.4 million, more than double the 1994 quarter's net of $20.3 million. For the year, net income was $182.6 million, eclipsing by less than 2% the previous high, $179.3 million in 1994. Net income per share for the year was $1.23, a penny more than the 1994 level. The growth came from a strong upturn in revenues - fourth quarter operating revenues increased 19.5% and yield was up 9.7%.
United said yesterday it plans to begin implementing the code-sharing provisions of its three-year-old marketing alliance with Thai Airways. The carriers plan to begin code-share service this summer in U.S., European and Asian markets.
Seasonal markets - particularly New England - are graveyards for regional airlines. Business Express, forced into Chapter 11 protection Monday by Saab Aircraft, is but the latest to feel winter's wrath. There was Executive Airlines, Cape&Islands, Air New England, Precision, Bar Harbor, Gull Air, the list goes on. "Low load factors supported by high yields...you can realize why nobody can make money up here," lamented BizEx President Gary Ellmer, saying that the carrier has been seeking a seasonal partner in Latin America or Europe for two years.
Sierra Expressway is offering a buy-one-get-one-free ticket sale starting today through Feb. 29. Passengers will be given a free roundtrip of equal or lesser value for each roundtrip ticket purchased. All are good for travel until March 31.
Pan Am-The New Airline will reveal next week its plans on when, where and how it intends to re-enter the business. Martin Shugrue, a chief operating officer of the original Pan Am and trustee of Eastern, is president and chief executive of the new company, which was formed with Charles Cobb, a former ambassador to Iceland. The new Pan Am will serve New York Kennedy, Chicago, Los Angeles, Miami and San Francisco and is targeting Orlando and Tampa for quick expansion. It says it will offer fares at about half the cost of incumbent airlines.
U.S. Major and National Carriers Food Expenses Third Quarter 1995 Cost Per Systemwide Passenger America West $ 9,715,772 $ 2.17 American 166,091,000 8.01 Continental 34,417,000 3.80 Delta 90,920,000 4.11 Northwest 67,993,000 5.04
DOT has granted IATA's request for a 90-day extension of antitrust immunity for continued discussions among carriers about the limits and conditions of passenger liability established by the Warsaw Convention. IATA asked for the extra time to enable airlines to determine whether a specific agreement is needed to implement an IATA Intercarrier Agreement that was endorsed unanimously last October at the IATA Annual General Meeting in Kuala Lumpur. That agreement requires signatory carriers to waive the convention's limitation on passenger liability by Nov.
Mesa Air Group plans to rationalize its fleet this year and grow modestly, with explosive growth slated for 1997. The carrier's capacity will increase about 5% this year but will jump by 16.8% in 1997, Steve Jackson, Mesa Air Group VP and chief financial officer, told a financial conference in San Francisco last week. The airline will phase out its 25 remaining Beech 1900C aircraft and replace them with 1900Ds. The D version of the aircraft has a stand-up cabin, making it more comfortable for passengers, and is slightly more efficient.
National Air Transportation Association President James Coyne said yesterday the group "will not rest" until FAA changes its proposed new rule on flight and duty time for pilots because it would "destroy on-demand operations." Coyne described the proposal as the "most onerous and threatening piece of rulemaking I have ever seen." He said FAA disregarded NATA's arguments and "embraced the pilot unions' recommendations instead." He said NATA will be the industry's voice for coordinating the massive effort needed to stop the proposal.
U.S. use of antitrust laws raises fundamental questions about its open skies agreements, said Kenneth Walder, legal director of British Airways. "I begin with an apparent paradox," he told an American Bar Association conference yesterday. "The U.S. signed what is called an open skies agreement with The Netherlands, supposedly leaving market forces to dictate prices and service. But it then granted immunity from the antitrust laws to key participants in the newly liberalized environment," he said.
United Technologies Corp. said yesterday fourth quarter net earnings increased 13% to $187 million from $165 million a year earlier. For the year, net income rose 28% to $750 million from $585 million. Revenues for Pratt&Whitney were flat at $1.7 billion for the quarter, rising to $6.2 billion for the year, up from $5.8 billion in 1994. Operating profit for Pratt for the year increased 39% to $530 million from $380 million. Operating profit for the quarter increased 11% to $147 million from $133 million the previous year.
British Airways Holidays will mail revised vacation planners, designed to help clients put together their own vacation packages, to 26,000 travel agents in the U.S. next week. The Summer 1996 Create Your Own Vacation, Britain&Europe planner includes lower rates at more than 200 hotels in Europe, starting at $39 per person per night, based on double occupancy. Rates for a Hertz rental car start at $18 a day with unlimited mileage. The brochure helps travelers plan other activities, such as theater, dining and sightseeing, as their budgets allow.
Italy's tourism industry continues to generate twice the income of its food and garment industries, while a favorable exchange rate is fueling increased travel to the country. A need for improved basic services accounts for the influx of hotel chains and travel companies and the rise in conventions. In the first half of 1995, Italy, for the first time, matched France in inbound tourist receipts totaling about $13 billion, according to the Italian Department of Tourism. The devaluation of the lira also is prompting more Italians to vacation within the country.
U.S. Major and National Carriers Labor Expenses Third Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 91,368,605 25.54 American 1,215,799,000 33.61 Continental 264,518,000 22.55 Delta 930,460,000 32.12
Radisson Hotels Worldwide has filed a lawsuit in a St. Paul, Minn., court against Westin Hotels and Resorts, and its chief executive Juergen Bartels, for patent infringement and trade secret misappropriation. Radisson claims Westin and Bartels copied features of Radisson's "Look to Book" travel agent incentive program that awards points for each booking in Westin's comparable Westin Connections program. Bartels was president of Radisson's parent company, Carlson Hospitality, when the program was being developed.
Association of Flight Attendants at America West intend to conduct informational picketing tomorrow at Phoenix Sky Harbor Airport for being denied pay from the AWArd program, an employee incentive payment based on 1995 profits. The AFA complains that the flight attendants are the only workers who will not receive the pay, and are the only employees represented by a union, but currently without a contract. The union says the company is seeking concessions in 1996 and beyond in exchange for a share in the profits.
Air Canada's traffic grew 13.9% in December, compared with December 1994. The airline generated 1.3 billion revenue passenger miles on a 9.9% rise in capacity. The load factor gained 2.1 percentage points to 58.1%. The growth was fueled by international traffic, which rose 17.6%. For 1995, traffic was up 11.7%, compared with 1994, on 12% more capacity. The airline flew 16.7 billion RPMs, and its load factor slipped 0.2 points to 63%. The annual growth was split between an 8.7% rise in Canadian traffic and a 13.6% increase in international RPMs.
Travelers gave high ratings to their last vacation experience in a survey grading on fun, overall value, lack of hassles and level of service. The Travel Industry Association survey found the highest rating went to the "fun" category, which equates to an A, while the lack of hassles received the lowest score, a B+. The other two categories scored an A-. TIA said women tend to rate value for the money and level of service higher than men, but there was little difference between the sexes in rating a vacation as fun.
Atlas Air said yesterday it has contracted to acquire six 747-200s now being flown by Thai Airways International. The GE-powered aircraft will be converted to freighters and delivered to Atlas over the next 18 months, with up to four to be delivered this year. The transaction, in conjunction with Langdon Asset Management, also involves the purchase of Thai's spare engines and parts.
The U.K.'s Royal Mail service expanded its contract with EVA Airways for letter and package delivery from the U.K. to cover new destinations, including Taipei, Bangkok, Auckland and Saigon, the carrier said. The airline won its first Royal Mail contract in March 1994 for service between the U.K. and Sydney. Shipments on EVA from London Heathrow have increased from an average of 13 tons per month in January 1995 to more than 48 tons in December 1995, the carrier said.
Millon Air objected at DOT to Southern Air Transport's request to serve a number of intermediate and beyond points in Latin America on its U.S.-Chile operations, part of Southern Air's bid to renew its all-cargo authority in the market (DAILY, Jan. 11).
