Business Express Airlines' operating and net income improved in the June quarter, and the airline said it expects a full-year profit and is considering an initial public offering. Business Express' operating profit rose to nearly $2.4 million in the quarter, the first of its fiscal year, and it posted net earnings of $1.7 million. In the June quarter last year, the airline had an operating profit of $479,000 and a net loss of $977,000. June quarter operating revenues improved 4.7% to $49.3 million and operating expenses increased 0.7% to $46.9 million.
Summary of U.S. Major Carriers Domestic Traffic December 1994 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) America West 1,269 1.99 762 967,015 American 5,620 1.82 1,048 5,887,870
Grimes Aerospace Co., citing improved productivity, said it is holding the line on prices of its spare parts to airlines for the third consecutive year.
Carnival Air Lines asked DOT to defer processing applications for service to Peru from points outside South Florida until it decides on earlier bids by Carnival, United and American for service from Florida. The three carriers are competing for the 3.5 Miami/Fort Lauderdale frequencies made available under the U.S.-Peru agreement struck in May (DAILY, May 8). "Introduction of a third U.S. carrier's (namely Carnival's) services in the South Florida-Peru market, which is by far the pre-eminent U.S.-Peru market, should be the department's top priority," said Carnival.
USAir, which will sublease its maintenance facility at Indianapolis Airport to FedEx as of Aug. 1, has consolidated C checks at its Pittsburgh base and is changing its C-check procedure from a program of segmented checks, doing the work 25% at a time, to a complete check all at once. The new system involves more aircraft downtime but still is more efficient and cost- effective, a company spokesman told DAILY affiliate Overhaul&Maintenance. USAir also is incorporating mandatory aging-aircraft inspections, which it is designating Q checks, into its D checks.
Northwest Airlines Corp. and Northwest Airlines Inc. filed with the Securities and Exchange Commission a Form S-3 universal shelf registration covering debt and equity securities, amending an unused Form S-1 covering $400 million of debt securities. The company said the change is intended to increase its "overall financing flexibility" as it takes delivery of Boeing 757 aircraft this year and in 1996.
Federal Express and Evergreen International Airlines are urging DOT to dismiss DHL's objections and issue an immediate final order approving the transfer of Evergreen's U.S.-China route authority to FedEx. DOT approved the deal tentatively last month (DAILY, June 29), but DHL continues to oppose it. In earlier filings, DHL maintained that the route transfer would "put FedEx - which is by several measures the largest U.S.
Egyptair will buy three A340-200s from Airbus Industrie, with deliveries late in 1996 and in the first half of 1997, according to a Reuter report from Cairo. The news agency said that Airbus Industrie will try to find a buyer for three A300-B4s the carrier wants to dispose of, and that Egyptair also plans to buy three Boeing 777s.
Business Travel Contractors Corporation (BTCC) estimates U.S. airlines would see a net gain in revenues of 3% a year if they implement the company's proposed mileage-based net fare pricing system for corporate customers, which cleared Justice Department review Friday (DAILY, July 17). BTCC needs at least three airlines to take part in the system and negotiate a simplified domestic fare structure for it to be a "workable program," President Kevin Mitchell told reporters yesterday.
Istanbul Airlines of Turkey has contracted with Pemco World Air Services to install a Federal Express heavyweight Stage 3 hushkit on one of its 727- 200Fs. Installation will take place at Pemco's subsidiary in Copenhagen.
Northwest Airlink pilots flying for Express Airlines I and represented by the Air Line Pilots Association plan to conduct informational picketing today at Memphis and Minneapolis/St. Paul airports to protest slow progress in two years of contract talks. "Our sick pay policy is at the bottom of the industry for pilots of 30-passenger aircraft. Our pilots are penalized financially for their first day of sick leave," said John Ebert, chairman of the carrier's ALPA unit.
Mesaba Aviation has named Business Express President and Chief Executive Bryan Bedford as its president and CEO, effective next month. Mesaba, owned by AirTran Corp., operates as Northwest Airlink at Minneapolis/St. Paul and Detroit. Business Express operates as Northwest Airlink in the Northeast. Business Express said Bedford will continue to serve on its board of directors. The carrier has appointed Gary Ellmer its new president, in addition to his current duties as chief operating officer, and he will be elected to the board.
Taiwan's China Airlines is offering one-stop check-in to passengers headed to China via Hong Kong. Previously, CAL passengers had to check in twice - leaving Taiwan for Hong Kong and again boarding flights from Hong Kong to China. The new service is the result of agreements signed recently between CAL and seven Chinese carriers - CNAC, Air China, China Eastern, China Southern, China Northern, China Southwest and China Northwest Airlines.
Startup Eastwind Airlines, planning to launch low-fare service Aug. 16 between Boston, Greensboro, N.C., and its Trenton, N.J., base, believes it can add service to Tampa/St. Petersburg and Fort Lauderdale in the fall and Chicago and Atlanta sometime later. Operating with 120-seat 737-200s out of Trenton Mercer Airport, the carrier will offer two daily roundtrips to Boston Logan for $53 each way, to Greensboro for $63 and between Greensboro and Boston for $83.
Granted orally an exemption to Abaco Air to conduct combination charter service between Abaco, Bahamas, and Florida...Granted orally an exemption to American to operate scheduled combination service between Honolulu and Vancouver, under a code-sharing agreement with Canadian Airlines International. American's designator code will be displayed on CAI's service on the route, beginning Sept.
FAA awarded Raytheon Support Services Co. a contract valued at $875 million over the next seven years to provide support services for the air traffic control system. Raytheon and its team member ATC Services Inc. are the incumbents on the present FAA contract for these services. They will be joined by Dimensions International for the new contract.
United has asked DOT for renewal of its authority to operate scheduled combination service between Miami and Bonaire, Netherlands Antilles. The carrier operates the service under a code-share arrangement with ALM Antillean Airlines. (Docket 49141&OST-95-299)
Cathay Pacific last week took delivery of its second Boeing 747-400 freighter, giving it a total of six 747Fs. The other four are -200 freighters. The airline plans to operate the new freighter on its new Hong Kong-Toronto route, scheduled to begin July 27. Hong Kong-Toronto cargo service is a Cathay-Air Canada joint venture.
Carnival Air Lines is seeking authority to operate scheduled service between Miami and Punta Cana, Dominican Republic, and to carry Ladeco South America-Miami cargo traffic on the service under a Ladeco designator code. If approved, Carnival plans to operate twice-weekly service using Boeing 757-200ER aircraft dry-leased from Ladeco. The Chilean carrier currently uses the 757s between South America and Miami and between South America and Punta Cana. For operational reasons, Ladeco currently moves the aircraft by ferry between Miami and Punta Cana.
Standard&Poor's ratings of USAir and parent company USAir Group remain on CreditWatch with negative implications following the rejection by rank-and- file flight attendants of a tentative package of concessions worked out between the airline and its flight attendants union, the Association of Flight Attendants (DAILY, July 14). USAir's ratings were placed on CreditWatch in mid-February.
Acting DOT Assistant Secretary for Aviation and International Affairs Patrick Murphy will testify Tuesday before the Senate Finance Committee to defend the administration's position against renewing the aviation industry's fuel tax exemption. A House Transportation aviation subcommittee hearing on U.S.-Japan aviation relations, scheduled for Thursday, has been postponed.
The number of passengers handled by the seven U.K. airports managed by BAA increased 5.8% in June to 8.54 million. Passenger volume at BAA's three London-area airports - Heathrow, Gatwick and Stansted - increased 5.8% to 7.38 million. Heathrow's volume rose 4.6% to 4.78 million, Gatwick's 6.7% to 2.22 million and Stansted's 16.9% to 372,400. Passenger volume through the three Scottish airports - Glasgow, Edinburgh and Aberdeen - increased a combined 6.1% to nearly 1.11 million.
FAA Friday issued a draft advisory circular it said will help prevent the use of unapproved aircraft parts. Comments on the AC will be accepted through early August. The AC should set up an industry-operated authorization program for brokers and distributors of aircraft parts. Administrator David Hinson said the program, developed jointly with industry, will set up a voluntary accreditation program for a network of about 2,500 distributors and dealers throughout the country.
The Ralph M. Parsons Co. was chosen by Loral Federal Systems to help modernize FAA's air traffic control system by providing design and construction management services to support installation of Loral's Display System Replacement equipment in air route traffic control centers (ARTCCs). Parsons, as part of a program to update controllers' consoles, will assist in replacing 25-year-old en route system work stations at 22 ARTCCs.
