National Transportation Safety Board Member John Goglia's comment on learning that FAA conducted a news briefing on board recommendations on air traffic control system outages before the board even voted on them: "It appears that FAA has clearly transcended the electronic age and moved into clairvoyance....I think they would be well served if they could apply some of that clearly unusual talent toward addressing the problems of the ATC outages. Maybe they could predict them so they could be prepared when they occur."
Air South is again offering $24 segment fares on nonstop flights between any cities it serves. The fare requires a 21-day advance purchase. Until Feb. 15, every time customers purchase tickets, they will receive a free one-way flight certificate good for travel May 1 through Nov. 15.
Saab Aircraft, Fairbrook Leasing Inc., and Saab Aircraft Credit AB filed a petition in U.S. Bankruptcy Court in New Hampshire placing Business Express in involuntary Chapter 11 bankruptcy proceedings. After several years of operating losses by the carrier, with unpaid leases and large debts, "the Saab Entities were left with no practical alternative but to seek the relief afforded by the Bankruptcy Court," Saab said.
Midwest Express Holdings Inc., which operates Midwest Express Airlines, turned in strong results for the fourth quarter and all of 1995. In the quarter that ended Dec. 31, operating revenues were up 18.3% to $63.4 million, compared with the 1994 period, and net income grew to $2.9 million from $753,000. The quarter would have been even better had the carrier not been subjected to the 4.3 cents-per-gallon federal fuel tax, which cost it $560,000 in pre-tax earnings.
Congested Chicago O'Hare Airport moved up a notch and tied with Atlanta Hartsfield Airport as the best airport in North America by Business Traveler International readers. About 2,000 international travelers cast their votes in the seventh annual survey.
U.S. Major and National Carriers Rental Expenses Third Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 64,275,749 17.97 American 287,959,000 7.96 Continental 159,325,000 13.58 Delta 252,689,000 8.72
TWA's charter service in 1995, aided by the high-profile papal visit to the U.S., netted $15.5 million in incremental revenue, its best performance in three years. Charters are one of two main areas pegged to bring in additional revenue with existing resources. The other is its new yield management system, which could generate in as much as $100 million a year once it is fully operational. TWA was the last major U.S. airline to implement a comprehensive yield management system that analyzes fare type and revenue mix to determine how best to allocate seats.
Continental gained financial momentum in the fourth quarter to cap a record year, its first annual profit since 1986 and a strong improvement over 1994. "Everywhere we look, we are a better airline than last year," President and Chief Executive Gordon Bethune said yesterday in a telephone news conference. The airline posted a 1995 profit of $224 million, or $6.29 per share on a fully diluted basis. That compares with a net loss of $613 million in 1994 which included a non-recurring charge of $447 million.
Charges taken by United parent UAL Corp. hurt the company's financial performance for the fourth quarter. On a fully diluted basis, the carrier had a $56 million net profit, or 83 cents per share, on $212 million in operating earnings for the quarter. Without the one-time charges, UAL had net earnings of $98 million. In 1994, United had a fourth quarter net profit of $67 million, or $1.47 per share, on $172 million in operating earnings. For 1995, United reported net earnings of $349 million using generally accepted accounting principles.
More not-so-on-time statistics showing how bad the weather has been: For the first 21 days of January, 62.8% ontime departures made Orlando Delta's best-performing hub. Its three largest hubs did not fare well - 42.2% of flights left on time from Cincinnati, 31.8% from Atlanta and 30% from Salt Lake City.
Romania's DAC Air has agreed to acquire four de Havilland Dash 8-300s and four Canadair Regional Jet 200s, Bombardier said yesterday. The carrier also placed four conditional orders and four options for each type. All 24 aircraft are valued at US$425 million. Bucharest-based DAC Air is planning to begin service in May to domestic and other European destinations. The new Bombardier aircraft will replace 24 An-24s that have served the area for more than 30 years.
Comair Holdings Inc., parent of Delta Connection carrier Comair, nearly doubled its third quarter net income to $13.1 million, or 44 cents per share, on revenues of $112.7 million. The results compare with a net income of $6.8 million on revenues of $90.1 million in last year's third quarter. The Comair board declared a seven-cent-per-share cash dividend, payable Feb. 14 to shareholders of record Feb. 5.
As thousands of sports fans flock to Phoenix for the Super Bowl this weekend, Delta is cutting fares from the city, and from Tucson, for people who want to escape the commotion. The reduced fares are good on flights to 80 cities Jan. 25-27 and return between 4:01 p.m. Jan. 28 and 11:59 p.m. Jan. 30.
TWA yesterday moved to snuff out smoking on flights to points in three Western European countries - Great Britain, France and Germany. The new non-smoking policy will be instituted March 2. The ban covers 28 roundtrip flights per week, or 39% of the carrier's international service. "We continue to monitor the marketplace very closely and will expand smoke-free service as customer demand warrants," said Mark Coleman, TWA senior VP- marketing.
National Transportation Safety Board said yesterday that while it remains concerned about the problems FAA is experiencing with its aging computers, the air traffic control system is "very safe" and the public "should not be unduly alarmed by recent press accounts of specific" equipment malfunctions at air route ATC (ARTCCs) centers. The board's conclusion follows a special investigation, begun last September, of ongoing computer and related equipment outages, particularly at the five ARTCCs equipped with the aging controller display computer systems.
Ladeco, S.A., has requested renewal of its authority to operate scheduled combination service between Santiago, Chile, and Los Angeles. The service is operated via Mexico City, with local traffic rights in both directions between Mexico City and Los Angeles. (Docket OST-96-1017)
USAir will write profit-sharing checks in late March for the first time to employees who made pay concessions in 1992. The carrier expects to pay $73.7 million to employees this year, or 80% of their total salary reduction. On Monday, USAir reported its first profit since 1988 (DAILY, Jan. 23)
Northwest has promoted Jun Mokudai to VP-Japan, responsible for marketing, sales, human resources, inflight services, finance and airport operations in the country. He was VP of marketing and sales-Japan since 1992. John Dasburg, Northwest president and chief executive, said Mokudai is "well known in the Japanese travel industry and has a thorough knowledge of all aspects of airline operations."
Excalibur Airways has applied for a permit to operate combination charter service between points in the U.S. and the U.K. The carrier proposes operating directly or via intermediate or beyond points in other countries, with or without stopovers. It wants to start the service in May with a series of weekly charter flights between Manchester, Prestwick and London Gatwick in the U.K. and Orlando, Chicago, San Francisco and Los Angeles in the U.S. All flights will be operated by two DC-10-30 aircraft dry-leased from G.E. Capital Aviation Services.
Tower Air plans resume to scheduled service to New Delhi April 4, adding the Indian city to its twice-weekly service between New York and Bombay, via a scheduled stop in Amsterdam. "Clearly, India is an important focal point in our global niche strategy of tapping into large, growing markets where disposable incomes are increasing," said Morris Nachtomi, co- founder and chief executive. After inaugurating service to New Delhi in 1994, the carrier suspended the flights in August 1995, saying the route had become uneconomical because of U.S.
Northwest is seeking renewal of its authority to operate scheduled combination service between Minneapolis/St. Paul and Montreal. The carrier has asked for a two-year renewal of its exemption to operate two daily roundtrips on the route, using DC-9-30s, and to add two daily roundtrips this year after DOT finalizes its decision on the 1996 U.S.-Montreal route proceeding. (Docket OST-96-1005)
Boeing, which weathered a 10-week strike by its 32,000 Machinists union workers before securing a four-year contract at the end of 1995, has won new agreements from its second largest union with comparative ease. The manufacturer's engineers and technical workers, represented by the Seattle Professional Engineering Employees Association (SPEEA), Monday voted 80% and 79%, respectively, in favor of two new four-year contracts. SPEEA represents about 21,000 employees, 9,000 of whom are dues-paying members eligible to vote.
DOT issued a show cause order tentatively granting Baltia Air Lines a certificate to operate scheduled service between New York and St. Petersburg, Russia. (Docket OST-95-396)
British Airways' assessment that the U.S. government "would have difficulty approving...additional investment [in USAir] was likely correct, given that the investment would lead to issues of ownership, control and governance," a senior administration official said yesterday. BA disclosed last week it would not exercise rights to subscribe for additional preference shares in USAir, which would have meant a further investment of $450 million in the U.S. carrier (DAILY, Jan. 22).
A Dutch court yesterday granted Fokker a four-week reprieve from obligations to its creditors, during which the company can continue to manufacture aircraft and determine whether, and in what form, it can continue operations beyond that. Sources in The Netherlands said Fokker is talking with Bombardier about a partnership. The company also is negotiating with the Dutch Ministry of Economic Affairs to determine how the pre-financing of five aircraft already ordered by the Dutch government can be rendered to the company.
