U.S. Major Carriers Traffic March, 3 Months 1995 (000) March March % 1995 1994 Change America West Revenue Passenger Miles 1,170,318 1,094,701 6.9 Available Seat Miles 1,629,359 1,494,478 9.0 Load Factor (%) 71.8 73.2
Northwest has made a number of financial reporting changes, effective in the first quarter, that it said will enable more accurate comparisons with the rest of the airline industry. As a result, Northwest has restated statistical data for the past several years. The airline has reclassified rebates made to customers in the Pacific market - a standard industry practice - as a reduction to passenger revenue, rather than as a commission expense.
Bombardier is believed to have chosen a Pratt&Whitney engine - new, not a derivative - to power its new 72-passenger de Havilland Dash 8-400 high- speed turboprop. An announcement was expected last week but has been delayed.
While visiting San Francisco Airport Friday, DOT Secretary Federico Pena announced an Airport Improvement Program grant of $21.2 million for improvements at the facility. The funds will be used to reconstruct a runway and taxiway and to build a new taxiway. Pena said the grant "illustrates our commitment to strategic investment in our transportation infrastructure, a key to the nation's economic growth and global competitiveness." The grant is part of $54.6 million in AIP funds awarded to California airports for fiscal 1995.
Southwest's first quarter 1995 net earnings dropped nearly 72% from a year ago to $11.8 million, and its operating profit fell 69.2% to $23.4 million. In the first quarter last year, Southwest posted a record net profit of $41.8 million and an operating profit of $76 million. The decline in profitability was not unexpected. Southwest had a difficult fourth quarter, and management had made it clear since the first of the year that several factors that hurt these earnings had carried over into the first quarter and may be felt in the second quarter as well.
TWA has once again extended its offers to holders of its 10%, 8% and 11% notes and the Pension Benefit Guaranty Corp. to exchange the notes they hold for new debt and equity as part of the struggling carrier's financial restructuring. The offers have been extended through midnight May 5. The airline also said its general solicitation efforts would reman suspended pending Securities and Exchange Commission review of its amended S-4. A further amendment of the S-4 is expected pending the outcome of talks with noteholders.
Alliant Techsystems elected David Jeremiah to the board. Barnes Group elected Theodore Martin president and chief executive officer and Thomas Barnes chairman. FlightSafety International named Andy Parrish marketing manager-Savannah Learning Center. Intertrade named Kerry Koch controller. Logistics Worldwide named Randy Clark executive director. Stevens Aviation appointed Rich Collins manager of its Atlanta office. USL Capital named Michael Flagg senior VP-corporate business development.
United's entire domestic fleet is now equipped with GTE advanced digital Airfone service. GTE Airfone said 450 of United's airplanes feature air- to-ground and ground-to-air calling, fax and data transmission capability, as well as conference calls, information services and shopping. The cost for sending or receiving calls is $2.50 to connect and $2.50 per minute. Cost for sending or receiving faxes and data is $1.50 to connect and $1.50 per minute. An additional $2 activation fee is charged for receiving calls of faxes.
Continental pilots, up in arms about the pace of contract negotiations, picketed their Newark and Houston hubs Friday and are threatening to take action, perhaps a strike, as early as June. The Independent Association of Continental Pilots (IACP) said this is the first time the pilots have picketed the hubs since 1985. They are protesting being without a contract for 12 years. IACP has been negotiating an initial contract since it became the pilots bargaining agent in July 1993.
FAA issued last week an Advisory Circular entitled Government Aircraft Operations, providing details and a guideline on how the agency will apply a new law increasing oversight of most government aircraft carrying passengers or operating commercially. Taking effect April 23, the law will affect more than 5,000 "public aircraft," airplanes and helicopters, operating in the U.S.
After two meetings, the six U.S. and two European carriers discussing a smoking ban on transatlantic flights have suspended talks until after the summer season. They are negotiating under antitrust immunity that expires May 24, and they are considering a request for an extension until September or October.
British Airways plans to begin operating Boeing 777s between London and Boston in early December - the transatlantic debut for BA's GE 90-powered twinjets. BA's first revenue flights with the new aircraft will begin in September, shortly after the U.K. carrier takes delivery of the first of the 15 777s it has on firm order. The first BA 777 revenue flight will be between London and the Gulf states. BA holds options for 15 777s in addition to the aircraft on firm order.
-- In Federal Register dated April 14...Issued an airworthiness directive on Boeing 737 aircraft requiring identification of the part and serial numbers of the main rudder power control unit...Issued a notice of an open forum with the FAA administrator and deputy administrator, and public meeting on a proposed rule on commuter operations and general certification May 18 in Anchorage.
The main sticking point in the International Civil Aviation Organization's efforts to develop a way to oversee international compliance with its safety and technical standards is whether results of such oversight should be disclosed, according to Carol Carmody, U.S. representative to the ICAO Council. In an interview taped for broadcast Sunday, Carmody said ICAO will have a proposal in time to be at the top of the ICAO Council's agenda when it reconvenes in June.
Aviation industry representatives cautioned FAA last week not to mandate the National Transportation Safety Board recommendations on flight data recorder (FDR) upgrades without further study. During a half-day public meeting in Washington, an eight-person panel composed of FAA and NTSB officials was told that the enhancements would be too costly, require aircraft down time and add significant costs to the production and price of new aircraft.
Singapore Airlines has installed a new interactive video system - Krisworld - for passengers in all three classes on two of its 747-400s, in the first phase of implementing what SIA claims will be the world's most advanced inflight entertainment system when it is fully developed by the end of next year. The product is being developed by SIA and Matsushita Avionics System Co. and is being introduced in phases because much of the technology is still in development.
MarkAir discontinues all jet service in Alaska and Reno-Oakland flights today, concentrating on Denver, which accounts for 90% of its bookings. It will eliminate Dallas-Atlanta operations May 17 and begin Dallas-Las Vegas service the next day.
Delta is unifying its cargo divisions, now part of the Marketing Division and Airport Customer Services Division, by appointing Walter Doll, VP-fleet management and reliability, to the new position of VP-cargo to lead worldwide cargo sales and service, effective May 1. Delta wants to identify opportunities for revenue enhancement, and Chairman Ronald Allen said cargo "is one of those opportunities. We intend to grow that business aggressively and make it a strategic part of Delta's future." Doll will report to Robert Coggin, senior VP-marketing.
AirTran Airways named Michael Toffoli VP. Aloha promoted Paulette Toledo to regional sales manager-Northern California. DHL Express promoted Michael Comstock to senior VP-customer and systems integration. Emery Worldwide named Gary Kowalski VP-strategic planning and quality. Northwest named Tony Randgaard manager-Sales Action Center.
China is about to publish comprehensive guidelines for foreign investment, dividing industries into three categories, U.S. foreign service officers report.Civil aircraft and infrastructure, such as airports, will fall into the "open sectors" category, which will allow for the easiest investment.
-- Granted orally an exemption to Air Caraibes Exploitation to perform charter combination service between the French West Indies - Guadeloupe, Martinique, St. Barthelemy and St. Martin - and the U.S. co-terminal points Puerto Rico and the U.S.
Galileo International has signed seven more airlines to participation agreements, making them bookable through both the Galileo and Apollo computer reservations systems.
Talks last week between U.S. and Czech officials produced only an agreement to meet again, and they didn't even set a date. The key issue was third- country code sharing, which U.S. carriers want but the Czechs will not permit until their carrier, CSA, finds a partner.
U.S. and Russian officials failed to reach agreement in two days of aviation talks in Washington, adjourning until the fall. The U.S. seeks new opportunities for U.S. carriers, including increased overflight rights, more destinations in the Russian Far East and authority for sales activity inside Russia by non-designated carriers. Russia maintains that the U.S. is not using all of its current opportunities and was unwilling to grant new ones.
