Faster-than-planned expansion boosted Air Canada's operating costs, contributing to a second quarter net loss of C$23 million (US$16.9 million) and knocking the airline off course for its projected full-year net earnings of C$99 million. Releasing the results Friday, Air Canada said it incurred the costs for "the benefit of future revenues," but it nonetheless unveiled a number of initiatives to "flatten" the cost curve by C$50 million this year and C$100 million in 1996.
Many cockpit crewmembers found work at national airlines (1,933) and turboprop operators (1,928) during the past 12 months, Future Aviation Professionals of America reported. American International Airways hired 275, FloridaGulf 196, ValuJet 192, Trans States 164, American Eagle/Simmons 162, Mountain West Airlines 154, and Business Express 149. United outhired the rest of the majors, taking on 722.
FAA will publish in today's Federal Register its massive, long-awaited proposal to revise certification and training requirements for pilots, flight instructors, ground schools and agency-approved pilot schools. The current rules have been under review since 1987, and the revisions are expected to benefit the general aviation industry, according to James Coyne, president of the National Air Transportation Association.
ALM Antillean has asked DOT for renewal of its authority to operate scheduled combination service to Puerto Plata, Dominican Republic, as an intermediate point on its Netherlands Antilles-Miami service. The carrier also wants renewal of its right to display United's designator code on flights between Miami and Netherlands Antilles, via Santo Domingo and Puerto Plata, under its code-share agreement with United. ALM noted that the Dominican Republic has not yet approved the code-share services. (Docket 49611&OST-95-377)
Miami-based Gulfstream International Airlines reported record boardings of 31,526 passengers in July, a 59.8% increase from July one year ago. Revenue passenger miles rose 58.9% to 5.8 million from 3.7 million, as capacity increased 40.9% to 10.2 million available seat miles from 7.3 million. Load factor rose 6.4 percentage points to 56.7% from 50.3%. President and Chief Executive Thomas Cooper said, "We are encouraged by our steady growth," adding that the carrier believed "that the trend will continue" in the latter portion of the year.
Apollo will give its travel agent subscribers six weeks' free-trial use of the computer reservations system's new Preview Plus product when it is deployed Aug. 14. Preview Plus is an enhanced version of Apollo's Preview, designed to make it easier for agents to locate groups of passenger name records based on particular criteria. For example, Preview enables an agency to find quickly the records of all customers traveling on a specific airline on a certain day, who were booked by a specific agent on a corporate account.
The Senate Appropriations Committee last Friday and the full Senate this week modified DOT appropriations bill language three times to allow continued subsidized air service for certain communities. A fourth effort to preserve essential air service subsidies for two New England points was dropped. The House and Senate now go to conference on EAS measures that are quite different. The House approved $15 million for the program, providing for a 50% local match. The Senate EAS funding level is more than $10 million higher without a local match requirement.
KLM's June quarter net earnings rose 10.7% from a year ago to 135 million guilders (US$85.7 million), but its operating profit fell 22.3% to 164 million guilders ($104.1 million) as a result of two pilot stoppages and the adverse impact of a strong Dutch guilder. KLM estimates the job actions had a negative impact of 20 million guilders on its operating income.
Delta Connection affiliate Comair logged 105 million revenue passenger miles last month, a 26.6% increase from the 82.9 million recorded in July 1994. Capacity did not keep pace, rising 19.6% to 197.1 million available seat miles from 164.8 million. As a result, load factor enjoyed a a three- percentage-point increase to 53.3% from 50.3%. Passenger enplanements were up 18% to 328,742 from 278,528.
"Buy European" has become the increasingly loud rallying cry within the European aerospace community - one that could affect U.S. manufacturers of engines, avionics and other aircraft components. Bombardier of Canada led the way with its selection of the Pratt&Whitney Canada PW150 for the new 70-passenger Dash 8-400. It now appears that Franco-Italian Avions Transport Regional will opt for a European engine to power the new high- speed version of the ATR 72, sources say. Although no large turboprop engines are currently built in Europe, the capability is there.
America West has decided to use the WorldTracer baggage management system, offered by SITA and IATA, to analyze its baggage return performance. The system enables employees to access baggage files on a real-time basis through every airport and reservations computer terminal. "This electronic baggage management system eliminates tedious searches through paper files and provides customers with immediate information on the status of their bag," said Bob Nichols, America West senior VP-customer service. WorldTracer is used by more than 120 airlines worldwide.
National Park Service overflight fees put airspace management policy in the wrong hands and should be eliminated, the National Air Access Council (NAAC), representing air tour operators, told the House Resources subcommittee on national parks, forests and lands. The fees, established in 1993 legislation, raised more than $1.7 million during the last nine months of 1994 after the Interior Department imposed them at the Grand Canyon, Haleakala and Hawaii Volcanoes national parks.
French regional carrier Flandre Air has placed orders for two Beech 1900Ds and taken options on another four aircraft, 1900 manufacturer Raytheon Aircraft said. Potential value of the deal was placed at about $32 million. Flandre Air, based in Lille, has a fleet of six 1900Cs, and serves domestic routes in France, including Lille, Rennes and Mulhouse - as well as other routes on behalf of larger airlines. Deliveries of the 1900Ds are scheduled to begin in February 1996.
Aeromexico's passenger traffic dropped 18.9% in the first six months of 1995 from the same period last year to 4.08 billion revenue passenger kilometers. The number of passengers boarded fell 18% to 3.3 million. Cargo traffic was up strongly, however, increasing 29.1% to 45.7 million freight ton kilometers. In June, Aeromexico's passenger traffic declined 20.1% to 668.9 million RPKs, and its passenger boardings were down 18.9% to 539,074. Freight traffic rose 44.8% to 7.5 million FTKs.
Embraer plans to fly its new 50-passenger EMB-145 for the first time tomorrow, preparatory to an official rollout and first flight Aug. 18. The aircraft, which carries the same price tag as the $13.5 million, 70- passenger N-250, also is Allison-powered and will occupy an important market niche. At $270,000 per seat, the -145 comes to market priced well below the 50-passenger Canadair Regional Jet, with a per-seat cost of $358,000. The -145 also is the first commercial product brought to market by the Brazilian manufacturer since privatization.
CCAIR's July traffic fell 11.6% from a year ago despite an 8.4% increase in capacity, resulting in a load factor drop of 9.8 percentage points to 43%. The USAir Express carrier said, however, that last year's traffic results were inflated due to discount fares offered throughout the system to compete with the since discontinued Continental Lite, and that the declines in load factor and traffic have been more than offset by increased passenger yields. The carrier said its July yield, which it did not reveal, was its highest since July 1991.
Air Canada hopes to wrest Canada-Italy authority from rival Canadian Airlines International by invoking the use-it-or-lose-it clause in Canada's new international aviation policy. Yesterday, Air Canada said it plans to apply to Transport Minister Doug Young for authority to fly to Italy from Montreal and Toronto using Boeing 767s because Canadian's service has dipped or soon will dip below mandated levels.
U.S. Major and National Carriers Rental Expenses First Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 61,034,406 18.89 American 275,017,000 8.02 Continental 159,606,000 13.68 Delta 281,297,000 9.66
U.S. Major and National Carriers Commission Expenses First Quarter 1995 % Of Total Passenger Systemwide Revenues America West $ 28,893,856 8.99 American 303,841,000 9.68 Continental 94,442,000 9.24 Delta 285,578,000 10.65
Aeromar has applied for renewal of its authority to operate scheduled combination service between San Luis Potosi, Monterrey and Chihuahua, Mexico, and San Antonio, Texas. The carrier also wants renewal of its authority to operate charters between Mexico and the U.S. The carrier noted that while it is operating only San Luis Potosi/Monterrey-San Antonio, it wants to hold on to the Chihuahua-San Antonio rights and begin service when "the economics of the route improve." (Docket 46771&OST-95- 379)
DOT is requiring Air Midwest, operating as USAir Express, to continue operating essential air service at Topeka, Kan., through Sept. 15, or until a carrier capable of providing the EAS begins the service, whichever occurs first.
Chicago Express Airlines is celebrating its second birthday today by holding drawings at Midway Airport for free tickets. Any passenger whose birthday is today, and is traveling on Chicago Express will receive free unlimited travel for the rest of the year. The airline, which operates Jetstream 31s, flies to Grand Rapids, Green Bay, Des Moines, Cedar Rapids and Evansville.
The U.K. is offering options for a modest increase in London Heathrow Airport slots available to U.S. carriers in return for exempting U.K. carriers from Fly America restrictions.U.S. and U.K. aviation officials began working group meetings yesterday in Washington, following a three-day plenary session in which the U.K. introduced the Heathrow offer. Scheduled to meet through today, the working groups continue to study in greater detail pricing, cargo and charter issues.
Reductions in essential air service funding are being chipped away by exceptions, and criteria for the program are beginning to resemble tax legislation, which is notorious for site-specific loopholes. Late last week, the Senate Appropriations Committee modified the criteria so the program will fund two points in Montana. This week, the Senate exempted Hawaii from the criteria and, much like tax legislation, exempted a single airport in Arkansas that was inexplicably described, but not named. (See related story on Page RA3 of the hard copy of this issue.)
The power outage at Oakland knocked out both the primary system and the backup direct access radar channel (DARC) (DAILY, Aug. 10). Dropped words made it appear that DARC is the primary system.
