Major European aerospace companies say the weak dollar threatens to spoil their financial results for 1995. Daimler-Benz Aerospace of Germany, which receives all of its aircraft and engine revenues in dollars, said it will miss its breakeven target for the year, losing at least 100 million Deutschmarks, unless the dollar returns soon to DM1.60, Reuter reported. Yesterday, the dollar stood at DM1.35. DASA is at risk even though it hedged about DM2 billion against the dollar before the dollar's value fell.
McDonnell Douglas Corp. yesterday reported record net earnings, mainly from military aircraft manufacturing, and increased revenues, mainly from increased commercial transport deliveries, for the first quarter of 1995. During the three months ended March 31, the company netted $159 million, up 19% over the $134 million of 1994's first quarter. The per-share increase was from $1.13 to $1.38.
Sabre Travel Information Network launched yesterday a cruise industry reservation and information system, Sabre CruiseDirector, and said that Princess Cruises is the first participatant. Kloster Cruises' Norwegian Cruise Line will be available in Sabre CruiseDirector in the third quarter. The new product features fill-in-the-blank entries instead of formats and codes. Sabre CruiseDirector will be distributed to all Sabre with Windows subscribers in the U.S., Canada and the Caribbean at no extra charge.
TWA has completed the launch of its new first-class service - Trans World One - to Europe. TWA rolled out the service a month ago to major European and U.S. cities. It now is on all transatlantic flights to London, Paris, Athens, Rome, Milan, Frankfurt, Cairo, Tel Aviv, Lisbon, Madrid and Barcelona. In the U.S., it is available from New York to Los Angeles, San Francisco and Seattle.
Transportes Charter Turismo, operating as Brasil Transair, is asking DOT for authority to operate all-cargo service between Sao Paulo, Brazil, and Miami with intermediate stops in Manaus, Brazil. While awaiting DOT and FAA approval to use its own equipment, the carrier plans to operate flights through long-term wet-leases with U.S. or foreign carriers. It proposes starting operations through long-term wet-leases with Tower Air. The carrier currently leases a DC-8-71F from GPA. (Docket 50296)
The City of Chicago strongly supports Kuwait Airways' request to operate combination service between Kuwait and Chicago via Amsterdam. Service between Chicago and Kuwait "is long overdue," said the city, noting that passengers seeking nonstop service to Kuwait may do so only from New York. Saying there is a rapidly growing "community of interest between Chicago and the Middle East," the city noted that only one Arab flag carrier serves Chicago from the Middle East - Royal Jordanian, with flights from Amman, Jordan, via Amsterdam.
USAir Group yesterday reported a first quarter net loss of $96.7 million, which, while substantial, still represents a marked improvement over the first quarter last year, when the struggling airline company lost $196.7 million. After taking into account preferred dividend requirements, the net loss applicable to holders of common stock was $117.5 million, or $1.91 per share, down from a loss of $215.9 million, or $3.64 per share.
Qantas has recruited and is training more than 100 new engineering and maintenance apprentices and 19 new flight catering apprentices.Its total intake of 183 apprentices this year amounts to an increase of 12.5% over 1994.
FAA and Europe's Joint Aviation Authorities granted certificates yesterday for Boeing 777's type/design and production, officially declaring the new aircraft "safe and airworthy." The certificates clear the way for the aircraft to begin service in June with United. In a ceremony in Seattle marking certification, DOT Secretary Federico Pena touted the steps taken by the administration to spur growth in the aerospace industry, while noting sharp increases in passenger and cargo traffic.
American parent AMR Corp. yesterday posted first quarter net earnings of $38 million ($37 million after stock dividends), or 48 cents per share, and an operating profit of $252 million. In the same quarter last year, AMR suffered a net loss of $7 million ($23 million after dividends), while managing an operating profit of $159 million. AMR Chief Financial Officer Gerard Arpey, describing the results as "a little bit better than we had anticipated," said they show that the company's two-year-old Transition Plan is on track.
S&P's B- preliminary rating on Continental's $1 billion Rule 415 shelf registration remains on CreditWatch with negative implications, leaving open the possibility that the rating will be downgraded. Any action likely will be determined by whether Continental, which recently confirmed it is scrapping its Continental Lite product, will successfully complete negotiations on deferring aircraft deliveries and scaling back its lease commitment at the new Denver Airport.
World Airways flew 2,210 block hours in March, an increase of 82% from the 1,212 it flew in the same month a year ago, the charter carrier's parent company, WorldCorp, said yesterday. First quarter block hours flown rose 64% to 6,913. Revenues per block hour flown declined, however, to $5,843 from $6,201 in March 1994, and fell to $5,682 in the first quarter 1995, compared with $7,502 a year earlier. The company attributed the decrease to its strategy of obtaining a higher percentage of its total revenues from "basic" as opposed to "full-service" contracts.
Varig's first quarter passenger traffic rose 6.8% from a year ago to 6.07 billion revenue passenger kilometers. The number of passengers boarded increased 8.9% to 2.48 million, and the airline's cargo traffic rose 20.8% to 320.4 million freight tonne kilometers. In March, Varig's passenger traffic increased 12.4% to 1.94 billion RPKs, and its passenger boardings rose 9.8% to 800,320. Freight traffic increased 20.4% to nearly 120.1 million FTKs.
Airlines Reporting Corp. has suspended its agreements with Private Jet d/b/a National Airlines and Dominicana de Aviacion d/b/a Dominicana Airlines. Both no longer are providing scheduled passenger service, and ARC processing of travel agency transactions for them will end, effective May 1. ARC said travel agents may begin May 1 to report sales on World Airways. World plans to begin three weekly flights from New York Kennedy to Tel Aviv July 2 with MD-11s.
Air France Group yesterday reported a net loss of 2.36 billion French francs (US$494 million) on revenues of FF 56.19 billion (US$11.78 billion) for the first 12 months of its extraordinary 15-month fiscal year, which ended March 31. Air France is switching to an April 1-March 31 fiscal year, which is why the year just ended was 15 months long. The net loss for the 12-month period ended Dec. 31 was significantly better than the previous year's loss of FF8.48 billion.
Responding to National Transportation Safety Board recommendations on flight data recorder upgrades, FAA said yesterday it does not question the merit of the proposals but believes the board's timetable may be unrealistic (DAILY, Feb. 23). To determine a feasible schedule for fulfilling the NTSB recommendations, FAA will hold a day-long meeting today with representatives of airlines, aircraft manufacturers and other segments of the industry, said Tony Broderick, associate administrator for regulation and certification.
News Corp. appears ready to sell its 50% stake in Ansett Australia Airlines to Air New Zealand for A$400 million to A$600 million, according to wire service and local newspaper reports from Sydney and Wellington. The reports, which could not be confirmed independently yesterday, said a deal is imminent. The investment would give Air New Zealand its long-sought access to the Australian domestic market.
Consumers can now book flights on United through CompuServe with the launch of United Connection. Airline reservations and ticketing are available now, and hotel and rental car service will be available in the next few months. Mileage Plus members will be able to check their accounts, and customers will be able to scan flights and fares quickly. The service provides a variety of ticketing options, including electronic ticketing in city-pair markets where the service is available.
FAA will conduct a press briefing today to provide its "perspective" on National Transportation Safety Board recommendations to increase flight data recorder capabilities (DAILY, Feb. 23). It will conduct a public hearing on the recommendations tomorrow at 9 a.m. in the third-floor auditorium at its headquarters building in Washington.
A jury has awarded $19 million to the widow of a victim of the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland. The attorney for Faith Pescatore said the award is the largest wrongful death award in airline history, according to a Reuter report, and the first damage case tried on behalf of a passenger since Pan Am and security company Alert Management Systems Inc. were found guilty of willful misconduct in the bombing. Pescatore, whose husband was one of 270 people killed on the flight, sued both Pan Am and the security company.
A representative of the nation's air traffic controllers is cautiously positive about FAA's plan to address runway incursions. "We are guardedly optimistic that the Airport Movement Area Safety System will improve air safety for the flying public," said Barry Krasner, president of the National Air Traffic Controllers Association.
Northwest is urging DOT to deny American's bid to begin promoting and selling tickets for service to Osaka and London Heathrow. Northwest said its opposition is based on the same reasons that it opposed an application by United for similar authority with regard to Chicago-Heathrow service - American lacks the underlying route authority and should therefore not be allowed to promote the service. American filed its applications just before Round 2 of current U.S.-U.K. talks got under way in Washington last week (DAILY, April 10).
British Midland has upgraded its Diamond EuroClass service with chinaware, new meal trays and an expanded menu. British Midland said it is the first U.K. airline to offer European and domestic business passengers Kellogs Cornflakes and Muller bio breakfast yogurts in addition to the company's traditional cooked breakfast. Also, Diamond EuroClass passengers now have a choice of Earl Grey or traditional English tea, served individually in a china cup and saucer.
Jetstream Airlines' flight attendants have voted for representation by the Association of Flight Attendants. The 36 flight attendants, who were not previously represented by a union, are based in Pittsburgh and Akron.
