Frontier Airlines, reversing its projections, said Friday it expects to report a loss for the June quarter, the first quarter of the Denver-based startup's second fiscal year. The original estimate was based on advance bookings and normal seasonal traffic improvements. "Preliminary reports indicate our earlier revenue projections were eroded by lower-than-expected yields, induced by heavy industrywide discounting during the period," said Frontier President Sam Addoms.
Delta's systemwide passenger traffic declined 1.3% last month on 0.1% less capacity, depressing the load factor 0.9 percentage points. The number of passengers boarded fell 2.2%. Robert Coggin, Delta senior VP-marketing, attributed lower domestic load factors in June to the carrier's continued marketing focus on the frequent business traveler. "This, as well as a more favorable fare environment this year, is resulting in improvements in both domestic and international passenger mile yields and total passenger revenue."
- In Federal Register of June 30...Issued special conditions on the SIAI Marchetti S211A airplane...Superseded an AD on Boeing 747SP aircraft concerning inspection for cracks in the web of the wing front spar over engine Nos. 2 and 3. - In FR of July 5...Issued an AD on certain Agusta A109 helicopters requiring a modification of the tail boom vertical fin.
Ernie DuBester has been nominated by President Clinton to another three- year term, through July 1, 1998, on the National Mediation Board. DuBester was chairman from December 1993 until last week, when Maggie Jacobsen succeeded him.
Northwest will continue its Minneapolis/St. Paul-Anchorage service through Jan. 2 instead of ending the seasonal flights as usual at the end of September. It operates two daily flights in the market and a third rountrip each Friday, Saturday and Sunday. It also operates service from Minneapolis to Anchorage via Seattle year-round.
The only engine on a ValuJet DC-9 suspected of reaching 3,000 cycles since overhaul by THY of Turkey was scheduled to be removed for disassembly during the weekend, Anthony Broderick, FAA's top enforcement official, said Friday. The 3,000-cycle limit was one of three recommendations issued Thursday by the National Transportation Safety Board (DAILY, July 7) during its investigation of the uncontained failure June 8 of a JT8D engine on a ValuJet DC-9 during a takeoff from Atlanta.
Lufthansa's efforts to "internationalize" its costs include a deal with its unions allowing the airline to recruit up to 10% of cabin crew members abroad and pay them at lower, foreign wage levels; and moving some revenue accounting functions to India and some technical services to Ireland. According to Chairman Jurgen Weber, "made in Germany" is evolving into "made by Lufthansa."
An overflight fee proposed by Transport Canada is being protested by U.S. carriers. Air Transport Association President Carol Hallett said it "appears that one segment of the airline industry - non-Canadian airlines - is being singled out to pay an arbitrary fee in advance of a comprehensive revamping of the system of Canadian charges for air navigation services."
Year-over-year load factor increases and yield improvements continue to produce strong revenue results for USAir, according to Chairman Seth Schofield. In June, USAir's load factor increased 1.7 percentage points to 68.1%. "The combination of strong summer traffic and the positive effects of our earlier announced capacity reductions has produced the highest June load factor since 1987," he said. In June, USAir's passenger boardings fell 7%, but its passenger traffic dropped only 2.6%.
USAir's traffic declined 2.6% last month on 5% less capacity, pushing the airline's load factor up 1.7 percentage points to 68.1%, its highest June load factor since 1987.
Mesa Air Group has named Ben Harrison to the newly created position of VP-planning and pricing. Harrison, 46, who is responsible for strategic market planning of Mesa's six airline divisions, has 23 years of airline experience with Braniff, AMR and Metro. Mesa also appointed George Lippemeier, 54, president of Desert Sun Airlines, the company's recently formed, Phoenix-based jet division that operates Fokker 70 regional jets on behalf of America West to Des Moines and Spokane from Phoenix.
Galileo International has appointed James Lubinski to the newly created position of senior VP-Denver product development. He will join the computer reservations system company on July 17. Lubinski most recently was senior VP/division head of systems and operations of Boatmen's Trust Co., a subsidiary of Boatmen's BancShares.
TWA flew 0.4% fewer systemwide revenue passenger miles last month on 7.7% less capacity, causing its load factor to rise 5.2 percentage points to 71.1%. The number of passengers boarded during the month rose 4.5%. Domestic traffic was up 3.4% on 2.2% less capacity while international traffic fell 8.1% on 18.9% less capacity.
Sen. Conrad Burns (R-Mont.) introduced legislation (S.1000) last week to reform the corporate alternative minimum tax (AMT). AMT relief has been a high priority for airlines and other capital-intensive industries for several years. The bill would enable companies to use the same depreciation system for AMT purposes as for regular tax purposes. It also would enable taxpayers who have unused accumulated minimum tax credits for any three of the past five years to use a portion of those credits to offset up to 50% of their current-year AMT liability.
The Airline Pilots Association is supporting FAA's proposed new rules for commuter operations, while expressing dismay at attempts by some trade groups to dilute the regulations. "We are extraordinarily pleased that the FAA has come forward to 'do the right thing' for the passengers and crewmembers of the commuter airlines," said Randolph Babbitt, president of ALPA.
FAA, in its 100-day writing of Notice of Proposed Rulemaking 95-5 - the so-called Commuter Safety Rule -may have done the regional airline industry a favor by defining in no uncertain terms the difference between cost and benefit. The rule, broadly viewed as a political plum for DOT Secretary Federico Pea, would threaten the economic viability of the 19- passenger turboprop and thus the Essential Air Service program and small- community air service. Yet, the agency can point to no accidents that would have been prevented had the rule been in place.
Illinois Gov. Jim Edgar and Attorney General Jim Ryan filed suit in U.S. District Court Monday in an attempt to defeat the airport agreement between Chicago and Gary, Ind. "The Chicago-Gary airport authority is an unlawful impediment to achieving the regional consensus needed to meet the transportation and economic development needs of the metropolitan area, and so we are asking the court to remove it," Edgar said.
The City and County of Denver and Continental Airlines have filed with DOT seeking dismissal of TWA's rates and charges complaint about costs at Denver Airport. TWA asked DOT to order Denver to refund money it paid when Denver "unlawfully" raised prices from $61.98 per square foot to $71.03 after a lease agreement between Denver, United and Continental. The agreement released Continental from its original 20-gate lease obligation, requiring other airlines to pay $10 million per year in rent that would have been paid by Continental (DAILY, June 23).
TeleService Resources, an affiliate of AMR Corp. subsidiary AMR Services, plans to open a call center this summer in Columbus, Ga. The 11-year-old, 5,300-employee company, which provides high-volume call-handling services to Fortune 500 companies and governmental agencies, will employ about 225 customer service representatives and 25 managers at the new center by yearend.
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals June 1994 - May 1995 Total Total Cost Gallons (Dollars) 1994 June Domestic 1,043,288,592 539,881,778 International 373,109,240 218,808,219 System Total 1,416,397,832 758,689,997
Saab 2000, the first delivered to Regional Airlines of France during the Paris Air Show in June, established a new speed record for turboprops Wednesday between Lyon, France, and Madrid. The aircraft, with 35 passengers aboard, covered the 520-nautical-mile route in one hour and 15 minutes for a ground speed of 411 knots, the airline said. True airspeed was 370 knots at 29,000 feet. Fifteen of the new high-speed turboprops are now operational - 14 in Europe with Crossair, Deutsche BA and Regional, and one in the Pacific with Air Marshall Islands.
Lockheed L1011 and McDonnell Douglas MD-11 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 L1011-1-250 Delta TWA Total Number of Aircraft Operated 39 17 56 Total Fleet Operations Departures 128 40 167
The aggregate passenger load factor of Orient Airlines Association (OAA) member carriers fell 1.7 percentage points to 64% in April, the third consecutive month in which the percentage of seats filled decreased on a year-over-year basis and the seventh straight month that it has either decreased or remained flat. Passenger traffic for April, the most recent month for which data are available, increased 10% from April a year ago, but capacity rose 10.8%.
Pilots at Jetstream International, a USAir Express operator, will conduct informational picketing July 9 at Pittsburgh Airport to protest lack of progress in negotiations toward a labor agreement.
Future Aviation Professionals of America is counting on Atlanta-based UPS to be the anchor company that attracts others to its AVJOBS '95 job fair Oct. 13-14 at the Georgia International Convention Center in Atlanta. The job fair is a global aviation meetingplace for recruiters, trainers and managers, FAPA said, and will attract thousands of attendees, ranging from experienced aviation professionals to students. Exhibitors will include flight training companies, human resource software vendors and immigration and language consultants.
