Florida West Airline's Chapter 11 bankruptcy trustee, Kenneth Welt, announced the carrier closed the sale of substantially all of its assets, as well as its subsidiaries, to Florida West International Airways Inc. for $3.5 million. The sale is in connection with its liquidation in Chapter 11 proceedings. President and Chief Executive Richard Haberly said the new Florida West will change "quite a bit" by gradually changing to larger aircraft and seeking some Asian routes - most likely to Japan - in 1996.
United Airlines says that with its recent decision to prepay some long-term debt, it has implemented more than $1.8 billion of credit improvement initiatives since it became employee-owned in July 1994. During the third and fourth quarters of this year, the carrier will retire $229 million of Japanese yen-dominated deferred purchase certificates, reducing its debt by that amount, and terminate leases for 39 aircraft by acquiring them. The purchase will lower minimum lease payments by $426 million by 1998.
The Chilean Antimonopolies Board, on its third attempt, approved four-to- one the LanChile application to acquire control of Ladeco. The board stipulated that safeguards would be imposed to protect consumers from monopoly practices, given that the two airlines control more than 85% of the Chilean domestic market, according to DAILY affiliate Aviation-Latin America&Caribbean.
Kiwi International Air Lines will elect four directors for terms expiring in 1998, three for two-year terms and two for one year each at its annual shareholders meeting tomorrow in Newark. The election will result in 12 sitting directors on a 15-member board. The company wants to leave three seats unoccupied while it searches for a chief executive and additional investment capital, and while it awaits a designee from aircraft lessor Pegasus Aircraft Partners.
Carnival Air Lines will introduce scheduled jet service between Fort Lauderdale and Nassau, Bahamas, starting Sept. 7 using A300 aircraft. The airline already has daily narrowbody jet service to Nassau. Introductory fares start at $50 each way, with no requirement for an advance purchase, a roundtrip purchase or a Saturday night stay. Flights will operate Monday, Thursday, Friday and Sunday.
McDonnell Douglas Corp. has $383 million in guarantees outstanding on delivered aircraft as of June 30, according to a 10-Q filing with the Securities and Exchange Commission. In the same period, MDC said it made offers totaling $649 million to lease aircraft scheduled to be delivered between 1995 and 1998. It also made offers totaling $303 million to accept notes in payment for aircraft or guarantee financing for customers for ordered but undelivered aircraft.
A power outage struck the Miami center over the weekend even as FAA announced more plans to prop up the nation's wobbly air traffic control centers. Meanwhile, the agency also said a team has determined that a defective circuit board probably caused the power failure last week at the Oakland center. The outage at Miami Saturday, which lasted over an hour and knocked out primary and backup systems, is believed to have been caused by lightning.
FAA Administrator David Hinson, commenting yesterday on stepped-up security at New York airports during the weekend, left the impression that heightened security at all U.S. airports will not be short-lived. Refusing to discuss directly the reasons for the actions at LaGuardia, Newark and Kennedy, Hinson said "security will be an ongoing issue." He observed, however, that airport and airline security have been ongoing programs for a long time.
U.S. order backlog for civil jet transports rose during the second quarter for the first time since the end of 1990, according to Aerospace Industries Association data. However, the increase was negligible - to 1,120 aircraft from 1,116.
Air South said yesterday July was its second consecutive month of profitability, with an operating profit of $163,000 on $5.7 million in revenues. Operating expenses totaled $5.5 million, leaving a net profit of $156,000, an airline official said. The carrier generated more than 17 cents in revenue per passenger mile and reduced its cost per available seat mile to 8.36 cents from 11.07 cents in February. Air South operates seven 737-200s. In March, it outlined several goals, including paring costs to 7 cents per ASM.
Used Jet Aircraft Deliveries May 1995 Carrier # Type Engines Previous Operator Aer Lingus 1 737-400 CFM56-3B2 Ryan Aviation Aero California 1 DC-9-10 JT8D-7A Aeroleasing African Airlines 1 707-320B JT3D-3B Kenya Airways Air Europe 1 767-300ER PW4060 Taesa Air Europa 1 757-200 RB211-535E4 LTS
Rolls-Royce/Snecma Olympus 593 engines, which power the Concorde supersonic transport, have amassed 750,000 flying hours, 480,000 of them at greater than the speed of sound. The aircraft made its first flight in 1969 and was put in commercial service in 1976 by British Airways and Air France. Its fastest recorded crossings are three hours from Paris to New York and two hours 57 minutes from London to New York.
In a $30 million tribute to the state of California, Southwest designated a new 737 California One last week. The aircraft, painted white with a red star and giant bear, did a fly-by for spectators during a ceremony at Sacramento. Southwest, which began serving three California cities in 1982, now has 532 departures a day from nine cities.
United is offering its new round-the-world service at fares of $2,750 for economy class, $3,618 for Connoisseur Class and $5,019 for First Class. The carrier will inaugurate the eastbound flights Dec. 14, flying from Los Angeles to New York, London, New Delhi, Hong Kong and back to Los Angeles.
U.S. Trade and Development Agency, in cooperation with FAA, the American Association of Airport Executives and the Airport Consultants Council, is sponoring a workshop Oct. 15-17 in Warsaw, Poland, on airport development, finance and new technology for Central and Eastern Europe and the Newly Independent States (NIS). Top airport and airline officials from 20 countries in the region have been invited by TDA to participate. For information on registration and trade show/sponsorship, call AAAE at 703- 824-0504.
FAA Administrator David Hinson, calling for a new "mental, attitudinal outlook" toward aviation safety, said yesterday the agency in the near future will issue a "concept paper" asking for ideas on how to achieve a goal of zero accidents in commercial aviation. Christopher Hart, assistant administrator for system safety, said his office will issue the concept paper probably within the next four to five weeks in an attempt to "reach the Rands and the TRWs and the thinkers out there and get them motivated" to help reach the goal of zero accidents.
SAS increased its firm order for McDonnell Douglas MD-90 twinjets from six to eight, bringing the total value of the purchase to about $320 million. The aircraft, configured for 143 passengers in five-abreast seating and powered by IAE V2500 engines, are scheduled for delivery during the second half of 1996 and the first quarter of 1997.
Northwest Territorial Airways (NWT Air) has applied for authority to operate scheduled combination service between any point or points in the U.S. and any point or points in Canada. The carrier also requests permission to code share with Air Canada between points in Canada and the U.S. Wholly owned by American, NWT Air provides scheduled service primarily between Calgary, Edmonton and Winnipeg and points in Canada's Northwest Territories, using three 737-200 aircraft. (Docket OST-95-384)
Federal Express will not have to pay any additional excise taxes under an agreement with the Internal Revenue Service resolving an IRS claim that the carrier owed as much as $159 million. The dispute covered a seven-year period that ended March 31, 1991. FedEx gave up its claim for a $70 million refund for that period.
BAA Plc reported a 14.4% increase in pre-tax profits for the quarter that ended June 30, the first of its financial year. Profits increased to 127 million, with a pre-tax profit figure before exceptional items of 121 million. The group's seven airports handled 23.8 million passengers in the period, an increase of 8%. Gross revenue from retailing was up 10.9% to 138.7 million, producing net retail income of 98.2 million, an increase of 11.5%. Property income rose 6.8% to 51.0 million.
Legislation (H.R.752) to repeal the commercial jet fuel tax entered the August congressional recess with 280 co-sponsors, 62 more than a majority of the House. Through Aug. 8, the Senate legislation (S.304) had 34 co- sponsors.
Latin American flag carriers, meeting Friday in Cartagena, accused FAA of basing its "tough stance on safety oversight" on favoritism toward U.S. carriers serving Latin nations. Members of the Association of Latin American Airlines, meeting at the request of Gustavo Lenis, chief executive of Avianca, agreed unanimously that FAA is discriminating against small Latin airlines, a spokesman said yesterday. Civil aviation authorities from several nations also attended and expressed their agreement, he said.
SunGard Financial Systems awarded its entire $2.1 million travel program to Rosenbluth International. Rosenbluth's reservations center in Atlanta has handled SunGard's travel, and now its centers in Eagan, Mich., Boston and El Segundo also will be used.
America West has prepaid $48 million of its $123 million of 11.25% senior unsecured notes due Sept. 1, 2001, and has exchanged the remaining $75 million for new notes with a lower coupon and longer maturity. Chairman William Franke said that less than one year out of Chapter 11 bankruptcy protection, America West is performing much better than expected. It announced record earnings in the second quarter, when it had a cash balance of $300 million, enabling it to improve its balance sheet.
