Mexicana managed a first-half profit of 151.5 million pesos despite what it described as a "steep domestic market downturn." Mexico's economic problems produced an 18% drop in domestic traffic during the first six months of 1995, but Mexicana said it was able to offset the negative impact somewhat by capturing a larger share of available traffic. Mexicana said its domestic market share rose 2.6 percentage points from the same period a year ago to 30.1%, and its transborder traffic share inched up one point to 22.5%.
The civil aircraft recovery that began slowly last year is picking up steam, and Boeing is the biggest beneficiary, data issued yesterday by Aerospace Industries Association indicate. All three major aircraft manufacturers were better off at mid-1995 than when 1994 ended. Boeing's 133 net new orders through the second quarter outpaced 1994's full-year total by more than 96%. At 48 aircraft, Airbus Industrie is two-thirds of the way to its 1994 total.
Aeroperu plans to inaugurate nonstop service between Miami and Iquitos on Dec. 6 to meet the growing demand of "ecotourists" traveling to Iquitos and the Amazon rain forest. Last year, more than 6,000 passengers traveled to Iquitos and more than 8,000 are forecast for this year, the airline said. The new service will be operated weekly from Miami and will continue to Lima. The return to Miami is timed to connect with flights to major U.S., Canadian and European destinations.
TWA said yesterday it will lease three MD-83 aircraft from Ansett Worldwide Aviation Services. The MD-83s will be the first new aircraft in TWA's fleet since it acquired six MD-83s in 1993. The aircraft "demonstrate our forward momentum as we position TWA for the future with a more modern and efficient fleet," said President Jeffrey Erickson. Deliveries begin late this month at 30-day intervals.
American Airlines will conduct a three-month test of Airshow systems and software, including the random access digital video reproducer, on a 767- 300 aircraft. The system provides full motion/still video, audio, and map and flight data displays that give passengers destination/arrival information. The computer-based Interactive Airshow, which allows passengers to select languages, flight information and maps, also will be tested onboard.
Atlantic Coast Airlines, Jetstream Aircraft, Atlantis Aerospace and Ivex Corporation have formed what they called The "Regional Airline Pilot Training Working Group" to perform research on the training needs of regional operators and the matching of training tasks to training devices. Atlantis Aerospace and Ivex had launched a research initiative designed to quantify the extent to which airline flight training can be accomplished using a flight training device fitted with a visual system.
Eastern Australia Airlines, a Qantas subsidiary, has placed an order with Bombardier for one de Havilland Dash 8 Series 200 and secured options on another three aircraft, Bombardier said. The initial Series 200 delivery, scheduled January 1996, will be the first delivery of Bombardier's newest production Dash 8 model in that country, the manufacturer said. The Series 200 has 37 passenger seats and boasts excellent "hot-and-high" performance characteristics.
FAA officials said yesterday a circuit board that "burned" may have triggered Wednesday's power outage at the Oakland center that caused the loss of radar and radio contact with aircraft and may have led to as many as three traffic alert and collision avoidance system (TCAS) alerts. FAA, which is investigating each TCAS alert, has concluded that at least one involved a system error because aircraft separation standards were exceeded, Monte Belger, FAA associate administrator for air traffic, said yesterday.
Aerovias de Mexico d/b/a Aeromexico has successfully completed its financial restructuring through the issuance of new five-year Euronotes and US$530 million recapitalization by existing shareholders and creditors, the company said this week. The new Euronotes are being exchanged for US$137.5 million in outstanding Euronotes and Euro-commercial paper.
IPTN of Indonesia flew the new Allison-powered N-250 for the first time Thursday, but the project continues to swirl in controversy. The program already has absorbed $400 million of a projected $650 million, which critics say is too expensive for an outdated aircraft in a shrinking market. The World Bank calls it a waste of money, and one Indonesian academic said the world's fourth most populous country, where a large percentage of the 190 million people live in poverty, cannot afford it. Next on the drawing board is a $2 billion, 130-passenger regional-jet program.
Delta Connection Comair saw its operating profit margin top the 20% level for the first time during the June quarter. The actual number was 22.7%, which represents the percentage of revenues retained after expenses. The carrier's average operating margin over the past nine quarters was 15.5%. The net profit margin also hit a high of 14.5% after averaging 9.5% over the past nine quarters. There were other firsts in the June quarter for the Cincinnati-based regional. Quarterly revenues topped $100 million for the first time, reaching $115.4 million.
United Parcel Service said yesterday it has contracted to re-engine seven 727-100s with Rolls-Royce engines next year, which will give it an all- Stage-3 fleet three years ahead of the 1999 deadline set by FAA. UPS said it will pay more than $70 million to install Tay 651-54 engines. The modifications will be performed by the Dee Howard Co., a wholly owned subsidiary of Alenia.
FAA yesterday said it awarded a contract to Denro Inc. Gaithersburg, Md., to build and install the Enhanced Terminal Voice Switch (ETVS). The contract was valued at $1.38 million over 10 years, the company said. George Donohue, associate administrator for research and acquisition, said the amount represented a 30% savings over originally projected costs to upgrade the communications capability at air traffic control towers and approach and departure facilities.
The Senate yesterday passed the fiscal 1996 DOT appropriations bill (H.R.2002), defeating an effort to strip the bill of measures requiring new FAA procurement and personnel regulations exempt from various federal laws. In other action on the bill, the Senate rejected 63 to 33 an effort to extend Railway Labor Act coverage to U.S. airline flightcrews overseas, and it dropped a measure preventing DOT from terminating passenger facility charge revenues pledged to pay debt service (DAILY, Aug. 7).
DOT has issued a show cause order on the certificate application of Sierra Expressway, L.L.C., enabling it to begin operating scheduled commuter passenger service. If approved, the Oakland, Calif.-based operator initially plans to provide scheduled service from Oakland to Monterey, Medford, Sacramento and Eureka/Arcata, Calif., using five 19-seat British Aerospace Jetstream 32 aircraft.
Northwestern Business Travel, one of the largest travel management firms in the U.S., has completed a company-wide transition to Worldspan's World Ledger 4000 with Windows accounting and information system. Two IBM AS/400 computers are the hardware platform for the newly installed system. Northwestern also plans to explore the use of Worldspan's TechXChange products, the computer reservations system company said.
Mesaba Aviation flew 29.3 million revenue passenger miles in July, a 3.1% decline from the July 1994 level of 30.2 million. Capacity dropped more quickly - 4.3% to 61.4 million available seat miles from 64.1 million in July 1994. The load factor rose 0.6 percentage points to 47.7% from 47.1%. Passenger boardings decreased 2.1% to 132,495 from 135,326. Mesaba, which operates as Northwest Airlink, serves 55 airports in 16 states and one Canadian province. July 1995 July 1994
Unisys Corp. and Mexicana have signed a five-year agreement under which Unisys will maintain and support Mexicana's USAS software and renew its software licenses. The renewals cover USAS passenger processing solutions, as well as operating system software and AIR/net communications software. The maintenance and support contract covers the software and the Open 2200 enterprise servers on which it runs.
USAir Express affiliate Chautauqua Airlines will use some of the 17 Jetstream 31 aircraft it is leasing from fellow USAir Express Jetstream International to replace service that had been operated by Jetstream in nine markets, Chautauqua said (DAILY, Aug. 8). Chautauqua will replace Jetstream in the following markets on the indicated dates: Hagerstown, Md.-Pittsburgh, Nov. 1; London, Ontario-Pittsburgh, Nov. 1; Lancaster, Pa.- Pittsburgh, Dec. 1; Hamilton, Ontario-Pittsburgh, Dec. 1; Altoona, Pa.- Pittsburgh, Jan. 6, 1996; Johnstown, Pa.-Pittsburgh, Jan.
The Aviation Rulemaking Advisory Committee (ARAC) is looking at adding some parameters to the flight data recorders of 737s that would track rudder performance, Thomas McSweeny, FAA director of Aircraft Certification Service, said yesterday. The committee also is considering the "feasibility and time frame" of retrofitting the aircraft with newer recorders, as recommended by the National Transportation Safety Board, McSweeny said.
Horizon Air Industries has elected Thomas Gerharter to senior VP-operations and Daniel Scott VP-flight operations. Gerharter has 12 years with the company, and for the past three he served as VP-flight operations. Scott, also with the company for 12 years, will succeed Gerharter. Scott most recently was director-flight operations. Gerharter will assume responsibility for flight operations and the maintenance divisions, and Scott will be in charge of managing flight crews, pilot training and related activities.
American is studying whether to postpone the retirement of up to 22 Boeing 727s.The airline has mothballed seven of the aircraft this year but is considering whether to retain 16 more that are scheduled to leave the fleet this year and six tagged for retirement in 1996.
In deeply divided comments on DOT's proposal to reinstitute the exclusion of mechanical delay information from on-time data, the industry also split on other potential Air Travel Consumer Report changes included in the notice of proposed rulemaking. Most of the respondents - Delta, TWA, United, American and Southwest -supported continued monthly reporting and publication of the on-time reports, saying the public benefits from them and airlines would gain only negligibly if the reporting frequency were reduced.
DOT has agreed to defer action for 30 more days, until Sept. 8, on Fine Airlines' complaint against the government of Ecuador and Aeroservicios Ecuatorianos (AECA). The extension is the second granted to Fine as it continues its battle to gain greater access to the South American country (DAILY, July 11). Fine complained initially against Ecuador in January, saying it would not permit Fine to conduct charter services authorized under the U.S.-Ecuador aviation agreement.
TWA has reached an agreement to sell to a group of private investment funds the ticket vouchers the airline is issuing to 8% noteholders as part of its prepackaged Chapter 11 reorganization plan. The investment funds, which are managed by M.D. Sass Investor Services and its affiliates, have agreed to purchase the vouchers for $26 cash per $50 face amount tendered by the voucher holders.
