Horizon Air flew 24% more revenue passenger miles last month than in May a year ago on 34% more capacity, causing the load factor to drop 4.5 percentage points to 54.9%. The number of passengers boarded increased 18.8%. Through the first five months of this year, the airline's passenger traffic increased 28% on 34% more capacity, and its load factor slipped 2.3 points from 1994's five-month level. May 1995 May 1994 5 Mths 1995 5 Mths 1994 RPMs 67,000,000 54,000,000 318,000,000 248,000,000
An academic expert in encryption policy and technology told the House Transportation aviation subcommittee yesterday that, on balance, the arguments against encryption of differential Global Positioning System correction signals appear stronger than arguments for it.
Alaska Air Group has marketed an offering of $100 million in convertible senior debentures due in 2005. The proceeds will be added to the company's working capital and used for general corporate purposes, including the redemption or repurchase of outstanding 7.25% zero coupon convertible subordinated notes due 2006. The offering is expected during the week of June 19. Merrill Lynch and Goldman Sachs are acting managing underwriters.
DOT declined to confirm yesterday reports that Japanese and U.S. officials are scheduled to discuss their aviation disputes Sunday in Washington. Masahide Ochi, Japan's transport vice minister in charge of international air, is to represent Japan at the meeting, according to Reuter.
Boeing's latest market forecast nearly doubles the company's projection of air carrier requirements for small jet transports through 2014, to 1,458 aircraft. The total is swelled by two format changes, however - the aircraft being counted have between 50 and 90 seats, rather than the 70-to-90 range used last year, and the forecast period is 20 years, up from 19. A Boeing official explained this forecast covers all passenger jets. "Those [orders] will now go to jets and not to turboprops, but it's not that the overall market has changed."
Aeroflot-Russia International Airlines is applying for renewal of its authority to operate scheduled combination service between Russia, via intermediate points, and the U.S. co-terminal points New York, Washington, Chicago, Anchorage, Seattle, San Francisco, Los Angeles, Miami and Orlando. The carrier also seeks renewal of its authority to fly beyond the U.S. points to Chile, Jamaica, Nicaragua and Mexico, and to operate charter service between Russia and the U.S. (Docket 50385)
In the year since they started their code-sharing operation, Lufthansa and United have nearly quadrupled - to 300 a day from 80 - the number of code- sharing flights they offer, Lufthansa said yesterday. The number of destinations the two airlines serve jointly has increased to 78 from 27. Lufthansa said the first year of cooperation has brought the two carriers an additional 1,000 passengers daily, and its passenger load factor on U.S. flights has jumped 10 percentage points to 78%.
Taiwanese carrier Great China Airlines has signed an agreement to buy 12 Dash 8 regional aircraft for US$316 million. Although Canadian manufacturer Bombardier Inc. no longer produces the 70-seat Dash 8, a spokesman said the company hopes the order from Great China will encourage other airlines to order the aircraft, enabling it to reopen production lines. No delivery date was specified in the agreement. The signing was witnessed by Canadian Minister of Transportation Douglas Young and Mao Chi- kuo, Taiwan's vice minister of transportation and communications.
Custom Air Transport is seeking a certificate to begin all-cargo operations. The prospective carrier plans to begin about Aug. 1 to provide scheduled and charter cargo flights using a leased Boeing 727-200 between points in the U.S., initially with roundtrip services between Detroit and Cleveland and Detroit and Kansas City. The new entrant also intends to seek contract business with the U.S. Postal Service, the Military Airlift Command and other potential cargo shippers in interstate and foreign air transportation.
The current upswing in the economic cycle is getting "fresh momentum" from the strengthening of European economies and other factors, according to Air Canada Chairman Hollis Harris. Speaking yesterday to Scotia McLeod's Canadian Airline Investment Conference, Harris said he is optimistic about his airline's prospects for the rest of the decade, and he disagreed with analysts who maintain that the current airline growth cycle is almost spent. "The longer-term fundamentals for North American airlines are encouraging," he said.
Aviation Week Group of The McGraw-Hill Companies will launch the Aviation Week Group Information Center on the CompuServe Information Service with "live" coverage June 11-14 from the Paris Air Show. Services will include a weekly briefing abstracted from all AWG publications, archival and reference databases, interactive access to the AWG editorial staff, a communications forum and hosted conferences.
Continental's shareholders approved the election of 18 directors, amendments to the 1994 Incentive Equity Plan and the appointment of an independent auditor this week at the carrier's annual meeting in Houston. President and Chief Executive Gordon Bethune, speaking after the meeting, said the airline has exceeded its performance targets every month this year, and he expects the first full-year profit in nearly a decade. Bethune reported that Continental Express is performing well and may not be sold or spun off.
Centennial Express is giving fits to the city of Denver and its new Denver International Airport with the prospect of launching regional service from close-in Jeffco Airport. The proposed startup would like to serve the western slope of the Rockies, Wyoming and West Texas from Jeffco with 30-passenger aircraft - Dornier 328s or Saab 340s. The city reportedly promised major DIA tenant United to block scheduled service from airports within 25 miles of DIA.
DOT has tentatively chosen WestAir Commuter Airlines, operating as United Express, to continue to operate essential air service at Merced and Visalia, Calif. The carrier will provide four roundtrips per weekday and five per weekend to San Francisco, routed Visalia-Merced-San Francico and return. At Visalia, WestAir may substitute one nonstop roundtrip between Visalia and San Francisco for two one-stop Visalia-San Francisco roundtrips. All service will be operated with 19-seat Jetstream 31 aircraft.
An Orange County Board of Commissioners' task force investigating the potential sale of the John Wayne Airport said its preliminary findings "clearly discourage private ownership of commercial airports in the U.S." The panel also cited "significant prohibitions against the use of airport revenues for non-airport purposes." The John Wayne Airport Revenue/Sales Task Force, which has been researching revenue opportunities through legal research, airport surveys and other techniques, is expected to report to the supervisors this month.
USAir is opposing Spirit Airlines' bid for 10 arrival and departure slots at New York LaGuardia Airport to operate service to and from Detroit. USAir maintains that Spirit has not demonstrated "exceptional circumstances" that would justify a special exemption from the high density rule at LaGuardia. Spirit has applied for the slots to operate five daily roundtrips between LaGuardia and Detroit City Airport, using DC-9-21 aircraft.
Subsidized Essential Air Service As Of May 1, 1995, (Excluding Alaska) State/ Subsidized Service to Aircraft Communities Carrier (Hubs) Type Alabama Anniston Gulfstream Atlanta Beech C-99 Arizona Kingman Mesa Phoenix Beech 1900 Prescott Mesa Phoenix Beech 1900
Dennis Dutch, special agent for the DOT Office of Inspector General (DOTIG), said Wednesday he did not recall much of his investigation into FAA's shutdown of TPI International Airways. In testimony before Administrative Law Judge Allan Elmore of the Armed Services Board of Contract Appeals, the career criminal investigator said he conducted a "management review" of the investigation of the Brunswick, Ga.-based cargo carrier by the Atlanta Flight Standards District Office.
The medium-term outlook for the aircraft finance industry is stable because aircraft values have firmed up and leasing activity and lease rates are increasing, which should lead to steady profitability, according to a just- published report from Moody's Investors Service. The report adds, however, that any predictions should incorporate several elements that were not significant in the past, including the reversal of the historic relationship between realizable passenger yields and aircraft prices, and airlines' reluctance to order new aircraft.
FAA issued safety recommendations for children on aircraft yesterday and introduced rulemaking aimed at banning child-safety systems it said have been shown not to provide adequate protection, but it did not propose to require the use of child safety seats. Trying to give parents clear guidelines for air travel with children, FAA wants to "get children off the laps and into straps," said Deputy Administrator Linda Daschle.
Fidelity Management&Research, its parent company and an affiliated company have acquired a 6.23% stake in Mesa Airlines Inc. and believes the airline company's stock is undervalued. In a filing at the Securities and Exchange Commission, Fidelity said it has no current proposals related to any type of "extraordinary" corporate transaction, such as a merger, liquidation or sale of assets, but Mesa should consider various ways of enhancing shareholder value, "including the sale of the company."
McDonnell Douglas Corp. believes the worldwide airline industry will need 13,272 new passenger aircraft valued at $1.024 trillion through 2013 to accommodate traffic growth and replace older aircraft. The long-term outlook, to be published this summer, sees fewer aircraft than Boeing's 15,462 through 2014, but it projects about the same dollar volume (DAILY, June 6). Summarizing the analysis, MDC said worldwide aircraft requirements are divided about evenly between widebodies and narrowbodies, but the latter account for only about one-quarter of the value.
Kenneth Mead, General Accounting Office director-transportation issues, is moving to the Office of Comptroller General within GAO. He will be replaced by John Anderson, who most recently has worked on natural resources issues for the agency.
Fuel Cost and Consumption, U.S. Majors Nationals and Large Regionals May 1994 - April 1995 Total Total Cost Gallons (Dollars) 1994 May Domestic 1,024,303,178 542,391,432 International 350,115,248 207,889,880 System Total 1,374,418,426 750,281,312
