American Trans Air's consolidated March traffic - both charter and scheduled - increased 38.8% on 37% more capacity, nudging its load factor up one percentage point to 76.7%. The number of passengers carried rose 29.2%. Through the first three months of this year, American Trans Air's consolidated passenger traffic rose 33.5% on 37.8% more capacity, resulting in a load factor decline of 2.3 percentage points. The number of passengers boarded rose 25.4%.
Anchorage-based MarkAir, which entered bankruptcy in 1992 and emerged last year, filed for Chapter 11 protection again late Friday in the face of threats by GPA to repossess aircraft. An Alaskan state agency turned down a $40 million loan guarantee in mid-March, resulting in employee layoffs and route cuts. The carrier then turned to its creditors and was near agreement with all lessors except GPA on restructuring its leases, said Tom Medland, director-U.S. sales and marketing.
In its second acquisition in the past few weeks, Eva Airways purchased a 20% stake in Taiwanese domestic carrier Great China Airlines. Earlier this month, Eva acquired a 21% stake in domestic carrier Makung Airlines (DAILY, April 7). An Eva spokesman said the international carrier paid Great China chairman and founder Tang Cheng about NT$15 million for 22 million shares of his airline's stock. Tang remains Great China's largest single shareholder, with 24.4% of the company. Great China operates domestic service with a fleet of nine Dash 8 aircraft.
FAA unveiled yesterday its action plan to address runway incursions amid charges that the agency has delayed development and deployment of the system. The Runway Incursion Action Plan includes a timetable for new technologies, with plans to launch the Airport Movement Area Safety System in San Francisco in May 1996 and apply it systemwide by 1997, and FAA Administrator David Hinson said the agency hopes to install it in 37 airports by 1999.
Citing its inability to operate to Saudi Arabia, Northwest is urging DOT to turn down Saudi Arabian Airlines' application for renewal of its authority to operate scheduled cargo and passenger service between Saudi Arabia and points in the U.S. Northwest said it has been unable to gain approval from the government of Saudi Arabia to begin service to the country despite receiving U.S. authority early in 1994 to serve Jeddah and Dahran via Amsterdam under it code-share arrangement with KLM.
USAir, whose auditors last week publicly questioned the carrier's ability to continue as a going concern, expects to end 1995 with more than $400 million in cash on hand - barring unforeseen circumstances.
Lone Star Airlines has hired David Rescino as VP-planning and corporate development. Rescino has worked for the past six years at Continental Express and has held positions at Chicago Airlines and Midway Airlines. He will evaluate the profitability of Lone Star's existing markets, make changes in service levels and analyze new markets.
Las Vegas McCarran Airport will host the third annual Las Vegas International Air Cargo Symposium May 10-11. Featured speakers are Bill Boesch, president of American Airlines Cargo, who will talk about air cargo and the global community, and Jan Meurer, VP and manager-cargo for KLM, who will address issues related to cargo and the 21st century. The Las Vegas International Air Cargo Center will open a 38,500-square-foot facility in May.
Franco-Italian turboprop manufacturer ATR signed a contract to sell Comair of Johannesburg, South Africa, two 48-seat ATR-42-320s as replacements for the carrier's Fokker 27 aircraft. The aircraft are scheduled to enter service next month and in June.
Air Pacific has launched weekly nonstop service between Fiji and Wellington using a Boeing 737-500 configured to accommodate eight passengers in business class and 100 in coach. "This new service provides the first direct flight to link Fiji with the capitol of New Zealand," said Nicholas Panza, director of the Americas and Europe for the airline.
Aerospace restructuring charges turned first quarter net earnings into a net loss at Sundstrand Corp., but Chairman and Chief Executive Officer Don O'Hare predicted "accelerated recovery in commercial aerospace sales" and increased the company's forecast of full-year earnings. O'Hare said Sundstrand still thinks its 1995 aerospace operating profit margin will be about 13% on flat sales, but "we anticipate that our operating margins will improve in 1996 and then return to historical levels as the benefits from the current restructuring take effect."
Subcontracting accounts for one-seventh of the European aerospace industry's total turnover, according to Eurostat, the European Union's statistics agency, but aerospace subcontractors employ more than one-third of the industry's work force. At 66%, France has the highest ratio of subcontracting to overall business among the 15 EU countries, the agency said.
- In Federal Register dated April 10...Issued an airworthiness directive on Jetstream 4101 aircraft requiring new case drain pipes...Issued an AD on certain Jetstream 4101 aircraft requiring modification of the spoiler system...Issued an AD on Airbus A300-600 aircraft requiring inspection for cracks in the bolt holes of Rib 9...Issued an AD on British Aerospace BAC- 111 aircraft requiring inspections of the bearings of the aileron control system.
Granted orally an exemption to Air New Zealand to perform scheduled combination service between New Zealand and the co-terminal points Los Angeles and Honolulu via intermediate points in Australia...Granted orally an exemption to United Parcel Service renewing its authority to perform all-cargo service between Louisville, Ky., and Mexico City, and between San Antonio, Texas, and Monterrey, Mexico...Granted orally an exemption to America West renewing its authority to perform scheduled combination service between Phoenix, Ariz., and Mexico City...Granted orally an exemptio
Japan Airlines, All Nippon Airways and Japan Air System are studying a plan to set up a joint cargo container handling company to save money. The company would buy, control and repair containers and other cargo-handling tools, leasing the containers to the airlines. The new company, which might be formed this year, would control more than 10,000 cargo containers, saving each airline upwards of 70 million yen per year.
Conquest Industries has decided not to go through with the sale of Conquest Airlines to Air L.A. The California carrier signed a letter of intent last month to acquire Austin, Texas-based Conquest (DAILY, March 14). Last week, it said it will continue to focus its efforts on its code-sharing relationship with Aeromexico and its existing routes in the Southwest and Midwest.
American Society of Travel Agents (ASTA) has revamped its Department of Market Research and is embarking on several research projects, including a membership profiling survey, a membership profitability survey and an educational program survey. ASTA said it will offer statistical information to the industry, the media, consumers and its members. The association also plans to begin a study of agency budgeting, profitability, marketing strategies and market segmentation, in which it will observe and track a sample of agencies for one year.
The Puerto Rico Ports Authority and five airlines have reached a settlement of the issues raised by the airlines' complaint over new rates and charges at San Juan's Luis Munoz Marin and Mercedita airports. Late last week, DOT Administrative Law Judge Ronnie Yoder directed the parties to formalize the agreement and file a proposed order by April 19. The hearing in the Puerto Rico rates and charges proceeding was to begin April 21.
Reps. John Duncan (R-Tenn.) and James Oberstar (D-Minn.), the chairman and ranking Democrat of the House Transportation aviation subcommittee, have asked Budget Committee Chairman John Kasich (R-Ohio) to include in the House budget resolution an assumption that the aviation jet fuel tax will be repealed. Citing testimony at a recent subcommittee hearing and a recently released Congressional Research Service report, Duncan and Oberstar said the new tax will "severely hurt the already ailing airline industry."
DOT and Northwest settled a disagreement over the manner in which information was displayed in the carrier's on-time advertising campaign, the department said Friday. Without admitting it violated any regulation or law, Northwest signed a consent order promising to "cease and desist from future violations and pay compromise penalties" of $90,000. The department said it would not seek any further action against the carrier in connection with the claim.
Laker Airways has asked DOT for the authority to provide scheduled service between New Orleans, on the one hand, and Freeport and Nassau, Bahamas, on the other hand. The Bahama-based carrier would launch daily 727-200 scheduled combination service on the route as soon as possible. It currently has authority to operate scheduled service on a variety of U.S.- Freeport routes. (Dockets 48075, 48288&49196)
Air Transport Association Cargo Traffic February, 2 Months 1995 Revenue Ton-Miles (000) February February % 1995 1994 Change Domestic Freight 621,156 567,547 9.4 Mail 133,121 128,521 3.6 Total 754,277 696,068 8.4 International
Air Marshall Islands has applied for renewal of its authority to operate scheduled combination service between Majuro and Kwajalein, Marshall Islands, and Honolulu, and to conduct charter service between the Marshall Islands and the U.S. The carrier plans to continue to operate three roundtrips per week, using DC-8-62 combination aircraft. Air Marshall Islands also operates domestic and international service to the island nations of Kiribati, Tuvalu and Fiji, using two Dornier 228-100s and one BAe-748. (Docket 50284)
America West plans to announce an expansion of its club-sharing agreement with Continental, to allow its Phoenix Club members and Continental's President's Club members to share access to airport lounges worldwide. America West also is working on teaming up with Air New Zealand in its frequent flyer program.
