The world's scheduled airlines managed a combined operating profit of $8 billion in 1994, according to a preliminary estimate issued yesterday by the International Civil Aviation Organization (ICAO). The profit marks the second consecutive year the world's airlines have made money on their operations after three straight years of losses. The industry had a 1993 operating profit of $2.5 billion.
General Electric Aircraft Engines said yesterday that tests uncovered an "imbalance" in the GE90 engine that will require a "minor modification" to the aluminum fan platform. The modification will temporarily halt flight testing of GE90-powered Boeing 777s, but a GE spokeswoman said the company is "still working toward" the scheduled September delivery of the first GE90-powered 777 to British Airways.
Yunnan Airlines has selected Weber Aircraft to supply tourist-class seats for three Boeing 767s. Deliveries will begin in January. Yunnan will configure the aircraft with 245 seats, seven abreast.
Average weekly wage of all U.S. jobs supported by aerospace manufacturing was about 51% higher than economy-wide wages in 1993, according to Maureen Steinbruner, president of the Center for National Policy. Air transportation-supported wages were about the same, "even after a period of significant wage decreases within the industry in recent years," she said.
Southwest's May traffic rose 9% from a year ago, but its capacity jumped 16%, leaving the airline with a load factor decline of 4.1 percentage points. The number of passengers carried increased 6.4%, and the average length of haul rose 2.4% to 516 miles. Through the first five months of this year, Southwest's traffic increased 5.7% on 13.6% more capacity, resulting in a load factor drop of 4.8 points. The number of passengers boarded rose 3.9% and the average length of haul 1.8%. May 1995 May 1994 5 Months 1995 5 Months 1994
United's decision to open a few foreign domiciles for its flight attendants has "set a nasty tone for our upcoming contract negotiations by ignoring the flight attendants as a valuable employee group and throwing away our job security to new hires in foreign countries," United's Association of Flight Attendants Master Executive Council President Kevin Lum said yesterday at an AFA rally at Washington Dulles. The AFA contract becomes amendable March 1.
Moody's Investors Service yesterday assigned a senior rating of Baa2 to United's proposed $225 million special facility revenue bonds series 1995A, to be issued by the Indianapolis Airport Authority to finance the expansion of United's Indianapolis overhaul and maintenance facility. Payment on the bonds is unconditionally guaranteed by United. With the proposed expansion, the Indianapolis facility will be used as the primary heavy maintenance facility for about two-thirds of United's fleet. Aircraft to be serviced at the facility are the Boeing 737, 757 and 767.
Northwest is building an advanced maintenance base, or "focused hangar," for its Airbus A320 aircraft in Duluth, Minn. McClier, a Chicago-based consulting, engineering and construction firm, was selected for the work. The focused hangar layout "brings maintenance tools right to the airplane" and "allows maintenance to be conducted on or very near the aircraft, increasing productivity and reducing turnaround time," the company said. The hangar also will be able to accommodate other narrowbody aircraft when construction is completed next spring, McClier said.
Air South increased its capacity nearly 25% in May despite adding only one aircraft to its fleet, but its traffic growth did not keep pace and its load factor fell 4.5 percentage points from April to 46.2%. Year-over-year comparisons are not available because Air South has been flying only since September. Air South's May traffic rose 14% from April, to 33.5 million revenue passenger miles, and its capacity grew 24.9% to 72.5 million available seat miles. Passenger boardings increased 16.1% in May to 97,311.
Qantas plans to add a third weekly Boeing 747 flight between Seoul and Brisbane in November, bringing to four the number of weekly flights it operates between Australia and Korea. Qantas also flies nonstop between Sydney and Seoul once a week. Ian Mitchell, Qantas regional general manager Queensland, said he is confident the third weekly Brisbane-Seoul flight will help the market continue to grow and increase Korean interest in Queensland as a leisure and business destination.
ValuJet Airlines is expanding service from Atlanta in July with the addition of DC-9s to three new nonstop markets - Kansas City, Mo., Jackson, Miss., and Newport News, Va. Beginning July 11, the carrier will operate three daily nonstops to Jackson and Newport News, and on July 18, it will add three daily flights to Kansas City. One-way fares will be as low as $49 to Jackson, $59 to Newport News and $69 to Kansas City. To introduce the new service, ValuJet is offering the lowest fare on all seats until July 31.
A DOT study of prohibiting the installation or use of gambling devices aboard foreign and domestic carriers drew stiff opposition from foreign carriers and governments. Required by the Federal Aviation Authorization Act of 1994 to conduct the assessment, DOT has been seeking feedback on safety and competitive issues linked to gambling on flights (DAILY, May 3). Foreign carriers maintain that a ban would raise serious sovereignty issues. Four carriers - Virgin Atlantic, Qantas, British Airways and TWA - filed comments opposing a ban.
The European Commission and the embassies of 19 countries have urged the U.S. government to treat U.S. and non-U.S. airlines the same in the award of restitution or prospective relief in the Los Angeles landing fees case. In a May 31 diplomatic note to the U.S. State Department, the EC and the countries, most of them European, challenged arguments by the City of Los Angeles that DOT has no authority to grant refunds to foreign airlines. The EC and the 19 nations contended that granting restitution to U.S. airlines but denying the same compensation to non-U.S.
Alaska Airlines flew 17% more revenue passenger miles last month than in May 1994 on 19.6% more capacity, resulting in a load factor decline of 1.3 points to 59.7%. The number of passengers boarded increased 15.3%. Through the first five months of this year, Alaska's traffic rose 18% on 24% more capacity, depressing the load factor 2.9 points. The number of passengers boarded increased 16.1%. May 1995 May 1994 5 Months 1995 5 Months 1994 RPMs 675,000,000 577,000,000 3,128,000,000 2,658,000,000
Despite the political battle leading up to Tuesday's agreement, the U.S.- U.K. mini-deal has drawn little reaction from Capitol Hill. Sen. Larry Pressler (R-S.D.), chairman of the Commerce Committee, said he welcomed reports that the "U.S.-British aviation agreement represents a net gain in economic opportunity for the United States." Pressler added that he was encouraging DOT Secretary Federico Pena and the U.S.
FAA has visited 48 civil aviation administrations for safety assessments to date. Of 30 completed assessments, "initial findings have shown that two- thirds of these countries were not fully complying with ICAO standards," according to Anthony Broderick, associate administrator for certification.
Lone Star Airlines, based in Fort Worth, Texas, is negotiating with city officials from Del Rio, Texas, and Acuna, Mexico, to analyze the need for service to Dallas/Fort Worth. If the communities can commit to a certain level of service, Lone Star said it will begin service to Del Rio Airport, possibly on July 10, offering two daily roundtrips on weekdays and one on weekends. Lone Star operates 30-seat Dornier 328s.
Eastwind Airlines has asked for an additional 90-day extension of its exemption from revocation-for-dormancy rules to start up operations. The potential new entrant earlier received a three-month extension to June 29 (DAILY, April 7). "It has become apparent that, although the FAA certification is well under way, it will not be completed by the end of June," said Eastwind. The hopeful startup airline also has filed a change in service plans, adding Trenton, N.J.-Greensboro, N.C., service to planned Trenton-Boston service.
A draft notice of proposed rulemaking on single-engine aircraft Part 135 commercial operations under instrument flight rules has been completed for FAA by the Aviation Rulemaking Advisory Committee. The draft is similar to a Canadian rule that allows single-turbine IFR operations for hire or compensation, but the draft limits such operations to turbines despite objections from the Regional Airline Association.
Latest update of a series of reports on airline competition published by Salomon Brothers concludes that the index used by the government to determine industry concentration is flawed, and that the level of concentration is excessive. Concentration is measured by using the Herfindahl-Hirschman Index (HHI), which is based on national market share data at the 50 largest airports, and it is classified in three categories - unconcentrated, moderately concentrated and highly concentrated.
Aerospace Industries Association has approved a policy - just before the Paris Air Show begins next week - calling for international air shows in Europe to be held every other year instead of annually. "The consolidation of the global aerospace industry, a trend toward fewer new products that stay in production longer, and a need to reduce costs have eroded the U.S. industry's support for a major European show every year," said AIA President Don Fuqua, reflecting a policy of AIA's board of governors.
Gruntal&Co. analyst Steve Lewins has initiated coverage of ValuJet with a neutral rating. Lewins is generally high on the airline - one of his few worries is future maintenance costs for all those DC-9s - but he said the stock is fully priced at the current level of about $32 5/8. He noted that when the carrier started in late 1993, it did not pay more than $2.5 million for any of its DC-9s, but because of increased demand for the twinjets - primarily from ValuJet - the cost of its last four was $17 million.
Air Wisconsin's May passenger traffic rose 64.7% from the same month last year on 46% more capacity, boosting the United Express carrier's load factor 6.4 percentage points. The number of passengers declined 3.2%. The airline attributed the drop in boardings to longer aircraft stage lengths. For five months, traffic rose 30.1% on 28.2% more capacity, boosting the load factor 0.8 points. The number of passengers boarded increased 4.2%. May 1995 May 1994 5 Months 1995 5 Months 1994
The state of Hawaii said it "strongly supports" Northwest's bid for renewal of its authority to operate between Honolulu, on the one hand, and Nagoya and Fukuoka, Japan, on the other. The service "confers important consumer benefits, by providing passengers and shippers with a competitive service alternative to other U.S. and foreign carrier services operating between the United States and Japan," the state said.
U.S. National Carriers Productivity In Revenues And Expenses Per Employee Fourth Quarter 1994, In Dollars Total Total Operating Operating Revenues Expenses Total Airline (000) (000) Employees Alaska 256,022 255,189 6,477
