Mesa Air Group has named Ben Harrison to the newly created position of VP-planning and pricing. Harrison, 46, who is responsible for strategic market planning of Mesa's six airline divisions, has 23 years of airline experience with Braniff, AMR and Metro. Mesa also appointed George Lippemeier, 54, president of Desert Sun Airlines, the company's recently formed, Phoenix-based jet division that operates Fokker 70 regional jets on behalf of America West to Des Moines and Spokane from Phoenix.
Galileo International has appointed James Lubinski to the newly created position of senior VP-Denver product development. He will join the computer reservations system company on July 17. Lubinski most recently was senior VP/division head of systems and operations of Boatmen's Trust Co., a subsidiary of Boatmen's BancShares.
TWA flew 0.4% fewer systemwide revenue passenger miles last month on 7.7% less capacity, causing its load factor to rise 5.2 percentage points to 71.1%. The number of passengers boarded during the month rose 4.5%. Domestic traffic was up 3.4% on 2.2% less capacity while international traffic fell 8.1% on 18.9% less capacity.
Sen. Conrad Burns (R-Mont.) introduced legislation (S.1000) last week to reform the corporate alternative minimum tax (AMT). AMT relief has been a high priority for airlines and other capital-intensive industries for several years. The bill would enable companies to use the same depreciation system for AMT purposes as for regular tax purposes. It also would enable taxpayers who have unused accumulated minimum tax credits for any three of the past five years to use a portion of those credits to offset up to 50% of their current-year AMT liability.
The Airline Pilots Association is supporting FAA's proposed new rules for commuter operations, while expressing dismay at attempts by some trade groups to dilute the regulations. "We are extraordinarily pleased that the FAA has come forward to 'do the right thing' for the passengers and crewmembers of the commuter airlines," said Randolph Babbitt, president of ALPA.
FAA, in its 100-day writing of Notice of Proposed Rulemaking 95-5 - the so-called Commuter Safety Rule -may have done the regional airline industry a favor by defining in no uncertain terms the difference between cost and benefit. The rule, broadly viewed as a political plum for DOT Secretary Federico Pea, would threaten the economic viability of the 19- passenger turboprop and thus the Essential Air Service program and small- community air service. Yet, the agency can point to no accidents that would have been prevented had the rule been in place.
Illinois Gov. Jim Edgar and Attorney General Jim Ryan filed suit in U.S. District Court Monday in an attempt to defeat the airport agreement between Chicago and Gary, Ind. "The Chicago-Gary airport authority is an unlawful impediment to achieving the regional consensus needed to meet the transportation and economic development needs of the metropolitan area, and so we are asking the court to remove it," Edgar said.
The City and County of Denver and Continental Airlines have filed with DOT seeking dismissal of TWA's rates and charges complaint about costs at Denver Airport. TWA asked DOT to order Denver to refund money it paid when Denver "unlawfully" raised prices from $61.98 per square foot to $71.03 after a lease agreement between Denver, United and Continental. The agreement released Continental from its original 20-gate lease obligation, requiring other airlines to pay $10 million per year in rent that would have been paid by Continental (DAILY, June 23).
TeleService Resources, an affiliate of AMR Corp. subsidiary AMR Services, plans to open a call center this summer in Columbus, Ga. The 11-year-old, 5,300-employee company, which provides high-volume call-handling services to Fortune 500 companies and governmental agencies, will employ about 225 customer service representatives and 25 managers at the new center by yearend.
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals June 1994 - May 1995 Total Total Cost Gallons (Dollars) 1994 June Domestic 1,043,288,592 539,881,778 International 373,109,240 218,808,219 System Total 1,416,397,832 758,689,997
Saab 2000, the first delivered to Regional Airlines of France during the Paris Air Show in June, established a new speed record for turboprops Wednesday between Lyon, France, and Madrid. The aircraft, with 35 passengers aboard, covered the 520-nautical-mile route in one hour and 15 minutes for a ground speed of 411 knots, the airline said. True airspeed was 370 knots at 29,000 feet. Fifteen of the new high-speed turboprops are now operational - 14 in Europe with Crossair, Deutsche BA and Regional, and one in the Pacific with Air Marshall Islands.
Lockheed L1011 and McDonnell Douglas MD-11 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 L1011-1-250 Delta TWA Total Number of Aircraft Operated 39 17 56 Total Fleet Operations Departures 128 40 167
The aggregate passenger load factor of Orient Airlines Association (OAA) member carriers fell 1.7 percentage points to 64% in April, the third consecutive month in which the percentage of seats filled decreased on a year-over-year basis and the seventh straight month that it has either decreased or remained flat. Passenger traffic for April, the most recent month for which data are available, increased 10% from April a year ago, but capacity rose 10.8%.
Pilots at Jetstream International, a USAir Express operator, will conduct informational picketing July 9 at Pittsburgh Airport to protest lack of progress in negotiations toward a labor agreement.
Future Aviation Professionals of America is counting on Atlanta-based UPS to be the anchor company that attracts others to its AVJOBS '95 job fair Oct. 13-14 at the Georgia International Convention Center in Atlanta. The job fair is a global aviation meetingplace for recruiters, trainers and managers, FAPA said, and will attract thousands of attendees, ranging from experienced aviation professionals to students. Exhibitors will include flight training companies, human resource software vendors and immigration and language consultants.
Fokker expects to record a first-half net loss that will be greater than the net loss for all of last year. The Daimler-Benz Aerospace company blamed the expected result on the past depressed state of the market, but even more on "the steep decline of the US dollar." The poor results have "necessitated further far-reaching reorganizations for which considerable additional provisions had to be made," Fokker said.
Millon Air is seeking renewal of its authority to operate scheduled all- cargo service between Miami and Venezuelan points Valencia, Caracas and Maracaibo. The carrier projects three weekly flights to Valencia, two to Caracas and one on a Miami-Valencia-Maracaibo-Miami routing, using 707, DC- 8 or L-1011 aircraft. The carrier currently operates charter service between Miami and Venezuela on a regular basis, mainly carrying cargo for air freight forwarders. (Docket 48368 and OST-95-282)
British Airways Chairman Colin Marshall has doubts about whether the timetable for the newly begun second phase of U.S.-U.K. bilateral talks is realistic. "I have to say that hopes for a successful conclusion within three months seem optimistic," Marshall said this week in a speech to the Aviation Club of Great Britain, and he predicted that DOT Secretary Federico Pena will remain "under prompted congressional pressure to beat up the British over Heathrow, or else rescind the bilateral." Marshall said U.S.-U.K.
The first set of Avro RJ wings to be made by British Aerospace Aerostructures in Prestwick have been delivered to Avro's factory at Woodford near Manchester. It is less than 12 months since the project transferred from the previous suppliers, Textron Aerostructures of Nashville, Tenn., and, according to Avro, the changeover has brought "improved momentum of production." The transfer to Prestwick was part of a cost reduction exercise and has also helped to secure a small number of jobs at both sites.
The House and Senate last week approved a concurrent budget resolution aimed at balancing the unified federal budget in seven years, including reductions in transportation spending of $34 billion compared to the existing-law baseline (DAILY, June 28). The House approved the budget resolution 239-194, and the Senate vote was 54 to 46.
Singapore Airlines has invited Boeing and Airbus Industrie to bid on a multi-billion-dollar order of 33 "medium-size, medium-range" aircraft, the airline confirmed yesterday. Looking specifically at the Boeing 777 and the Airbus A330, SIA expects to decide on an order by the end of the year, possibly by October, a spokeswoman said. SIA plans 17 firm orders and 16 option. The airline has not placed a value on the order, but wire service reports put it at as much as $5 billion.
Nine regional airline stocks jumped an average $3.80 per share during June with three hitting 52-week highs (a fourth followed on July 3). Comair closed the month at a 52-week high of $37.88 per share following an increase of $9.88 per share since May 31. Atlantic Coast was up $3.50 for the month to close at a 52-week high of $8.75 per share; CCAIR hit its 52- week high of $3.56 on the 27th, closing the month at $3.19, a $1.25 increase since May 31. The Delta Connection carriers led the field in price increases.
Rep. David Skaggs (D-Colo.) introduced legislation (H.R.1954) last week to allow the secretary of the interior to regulate scenic commercial overflights at units of the National Park System and award concessions for those overflights. Skaggs said Congress should remove any doubts about the authority of the National Park Service to regulate park overflights and "make sure that the American people - who own the national parks - receive an appropriate share of the profits from such operations."
USAir Express will replace its F28 jets with Dash 8s between Pittsburgh and Newport News, Va., in September. The reduction from 68-seat aircraft to 37-seat capacity is part of cutbacks, announced this week, from Pittsburgh, Kansas City, Lansing and Portland, Ore. The changes complete USAir's 5% schedule reduction (DAILY, July 5). David Mercer, chairman of the Peninsula Airport Commission, said jet service has been "on the marginal list" for some time. "We hope this move will help USAir to become healthy so that one day they can reinstate jet service."
