CCAIR's July traffic fell 11.6% from a year ago despite an 8.4% increase in capacity, resulting in a load factor drop of 9.8 percentage points to 43%. The USAir Express carrier said, however, that last year's traffic results were inflated due to discount fares offered throughout the system to compete with the since discontinued Continental Lite, and that the declines in load factor and traffic have been more than offset by increased passenger yields. The carrier said its July yield, which it did not reveal, was its highest since July 1991.
Air Canada hopes to wrest Canada-Italy authority from rival Canadian Airlines International by invoking the use-it-or-lose-it clause in Canada's new international aviation policy. Yesterday, Air Canada said it plans to apply to Transport Minister Doug Young for authority to fly to Italy from Montreal and Toronto using Boeing 767s because Canadian's service has dipped or soon will dip below mandated levels.
U.S. Major and National Carriers Rental Expenses First Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 61,034,406 18.89 American 275,017,000 8.02 Continental 159,606,000 13.68 Delta 281,297,000 9.66
U.S. Major and National Carriers Commission Expenses First Quarter 1995 % Of Total Passenger Systemwide Revenues America West $ 28,893,856 8.99 American 303,841,000 9.68 Continental 94,442,000 9.24 Delta 285,578,000 10.65
Aeromar has applied for renewal of its authority to operate scheduled combination service between San Luis Potosi, Monterrey and Chihuahua, Mexico, and San Antonio, Texas. The carrier also wants renewal of its authority to operate charters between Mexico and the U.S. The carrier noted that while it is operating only San Luis Potosi/Monterrey-San Antonio, it wants to hold on to the Chihuahua-San Antonio rights and begin service when "the economics of the route improve." (Docket 46771&OST-95- 379)
DOT is requiring Air Midwest, operating as USAir Express, to continue operating essential air service at Topeka, Kan., through Sept. 15, or until a carrier capable of providing the EAS begins the service, whichever occurs first.
Chicago Express Airlines is celebrating its second birthday today by holding drawings at Midway Airport for free tickets. Any passenger whose birthday is today, and is traveling on Chicago Express will receive free unlimited travel for the rest of the year. The airline, which operates Jetstream 31s, flies to Grand Rapids, Green Bay, Des Moines, Cedar Rapids and Evansville.
The U.K. is offering options for a modest increase in London Heathrow Airport slots available to U.S. carriers in return for exempting U.K. carriers from Fly America restrictions.U.S. and U.K. aviation officials began working group meetings yesterday in Washington, following a three-day plenary session in which the U.K. introduced the Heathrow offer. Scheduled to meet through today, the working groups continue to study in greater detail pricing, cargo and charter issues.
Reductions in essential air service funding are being chipped away by exceptions, and criteria for the program are beginning to resemble tax legislation, which is notorious for site-specific loopholes. Late last week, the Senate Appropriations Committee modified the criteria so the program will fund two points in Montana. This week, the Senate exempted Hawaii from the criteria and, much like tax legislation, exempted a single airport in Arkansas that was inexplicably described, but not named. (See related story on Page RA3 of the hard copy of this issue.)
The power outage at Oakland knocked out both the primary system and the backup direct access radar channel (DARC) (DAILY, Aug. 10). Dropped words made it appear that DARC is the primary system.
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.
