Daimler-Benz Aerospace (DASA) workers were to hold last-ditch talks during the weekend in what some observers viewed as a futile effort to keep management from axing 8,000 jobs in an attempt to stem losses that thus far this year amount to more than $1 billion. DASA plans to abolish nearly 9,000 jobs as part of a restructuring plan to become more competitive against the U.S. dollar.
For the first time in its 50-year history, Airborne Express carried more than one million shipments per day during one week, Nov. 6-10. A second runway at its hub in Wilmington, Ohio, which makes simultaneous landings and takeoffs possible, increased Airborne's system capacity.
Lufthansa and United estimate that their alliance is generating 1,300 passengers per day on the route system of both carriers. Lufthansa expects a 30% increase in passengers over the next 12 months.
U.S. National Carriers Productivity, In RPMs And ASMs Per Employee Second Quarter 1995 Revenue Available Passenger Seat Miles Miles Airline (000) (000) Alaska 2,144,053 3,498,406 Aloha 169,279 276,362
All but two of Boeing's 11 customers to date for its next-generation series of 737 aircraft are from overseas. The exceptions are Southwest and International Lease Finance Corp. Boeing says it has sold a record 214 of the series aircraft since launching the program two years ago last Friday.
Moody's Investors Service placed Delta's ratings under review Friday for possible upgrade because of the significant improvements Delta has achieved in its operating results over the past 12 months. But the rating agency also said that an upgrade will hinge on the continued strengthening of the company's cash flow, leverage and other credit measures. The action affects approximately $1.7 billion of long-term debt. Delta's senior unsecured debt is rated Ba1.
The federal government shutdown is not likely to affect bilateral negotiations. Although DOT is back to work, the State Department, which chairs all negotiations, still was out as the weekend began. But nothing is scheduled until next week - Nov. 28-30, with Japan in Washington. If State is not back entirely by then, it still has several people at work who could be involved, and it has discretion to recall some employees on an essential basis.
Hawaiian Airlines' consolidated October passenger traffic, scheduled and charter, increased 58% from October a year ago on 36% more capacity, swelling the load factor 10.9 percentage points to 78.1%. Oct 95 Oct 94 10 Mths 95 10 Mths 94 RPMs 331,979,314 210,106,439 2,956,868,822 2,397,731,108 ASMs 425,067,441 312,662,238 3,837,477,474 3,288,066,075 LoadFtr% 78.1 67.2 77.1 72.9
British Airways' first Boeing 777 entered revenue service Friday in the London Heathrow-Dubai-Muscat market. The aircraft is configured to accommodate 281 passengers in three classes of service, and BA has placed firm orders for 14 more and holds options on another 15. BA is naming its 777s after aviation pioneers, the first for Sir Charles Edward Kingsford- Smith. Two more 777s are scheduled to join the BA fleet by the end of the year, and they will be used initially to Paris and on daily Cairo service.
Qantas opened last week a new lounge, the Qantas Club, for its first- and business-class passengers departing from the international terminal at Sydney. The lounge, which has been refurbished and expanded from the previous 140 seats to 264, is housed on two floors, with first- and business-class areas separated for the first time. The first-class lounge occupies the upper deck with 42 seats. Both lounges offer shower facilities and have been designed to accommodate handicapped guests, Qantas said.
Following is an article on McGraw-Hill Aviation Week Group's Chicago '95 international aviation conference, conducted early this month. It was written for Aviation Week&Space Technology by Contributing Editor James Ott, appearing in today's issue of the magazine, and has been edited for publication in The DAILY. The future of international aviation lies in a group of air carriers that serve whole world regions, bonded together by commercial and trade agreements.
New Pittsburgh company JetTrain intends to begin daily service Dec. 11 among Pittsburgh, Newark and Orlando with DC-9-31 aircraft pending government approval. It will offer ticketless travel with open, one-class seating. Introductory fares are $49 in the Pittsburgh-Newark market, $69 for Newark-Orlando and $89 for Pittsburgh-Orlando. On Dec. 18, a three- tier pricing system will go into effect, charging $69 for a 21-day advance purchase in the Pittsburgh-Newark market and $109 for walk-up fares.
USAir, one of two major U.S. carriers without authority to serve Italy, should be given the opportunity to fly to Rome from Philadelphia over competitors Northwest and Delta, which also are seeking the rights, the carrier told DOT. Northwest also lacks authority to fly to Italy, but it already holds out service to Italy on KLM and more authority would only add "another jewel to the Northwest/KLM treasure chest," USAir said. If Delta were to receive the authority, it would control 50% of U.S. flag service.
Eleven of the 30 busiest U.S. airports - ranked by total departures - had more traffic on foreign flag carriers than U.S. airlines in 1994. At Bangor, Maine, 96% of passengers flew on foreign flags, followed by 85% at Baltimore, 77% at Orlando and 75% at Anchorage. The four airports where foreign flags drew less than 1% of passengers are Cincinnati, Minneapolis, Portland, Ore., and Raleigh/Durham.
Taiwan's Civil Aeronautics Administration, as expected, has granted authority to provide service between Taiwan and Macau to EVA Airways and TransAsia Airways (DAILY, Oct. 23). Both carriers have said they are prepared to begin service as early as the second week of December, with EVA expected to begin flying the route on Dec. 8, using new Boeing 767-200 aircraft.
Certification testing begins next month on McDonnell Douglas Helicopters' first production MD 600N helicopter. The flight tests are expected to be completed in the third quarter of 1996. The first of the eight-place aircraft will go to AirStar, a Grand Canyon operator that specializes in tourist flights. The helicopter has an Allison turbine engine and a six- blade main rotor.
CS First Boston analyst Paul Karos has reinstated coverage of Northwest Airlines with a "buy" rating. Karos estimated that the carrier's fourth quarter earnings will come in at 70 cents per share on a fully distributed basis, and he set a 12-month price-per-share target of $50.
Early successes in DOT Secretary Federico Pena's Asian trip include an agreement with officials in Bangkok to resume U.S.-Thailand aviation negotiations and discussions in Jakarta on expanding U.S.-Indonesia air services, Pena said in a speech last week to the American Chamber of Commerce in Kuala Lumpur. Pena said he advanced a number of pending transportation contracts in Thailand, and that officials in Jakarta agreed to "elevate these discussions to a senior level in the near future."
Reno Air said Friday it has made a non-cash adjustment of nearly $1.4 million to non-operating expenses for the second quarter of 1995. The adjustment reflects an accounting charge related to Reno's conversion of 7.25% convertible subordinated notes due on July 15, 1996. Originally, the notes were convertible into shares of common stock at about $7.03 per share. On May 8, holders of $4.55 million principal amount of notes accepted the company's offer to convert the notes into common stock at a ratio of one share of stock for each $5 principal amount of notes.
