Precision Standard reported earnings of $11.2 million for the year ended Dec. 31 on sales of $148.5 million. It earned $6 million on sales of $169.9 million a year earlier. For the fourth quarter, the company reported a profit of $9.8 million on sales of $40.8 million, compared with earnings of $2 million on sales of $41.2 million the year before. It said 1994 results included a one-time, non-operating benefit of $8.3 million for deferred tax assets.
Speculation that Saab Aircraft is moving closer to a joint venture with a possible U.S. aircraft manufacturer was renewed Thursday with the announcement of a major management shakeup within the Swedish company's U.S. subsidiary (see related story below). Saab Aircraft of America President Jack Faherty becomes a senior VP who "will work with Saab Aircraft AB's management on matters related to partnership opportunities and other strategic issues," a company statement said. Raytheon (Beech) Aircraft has been mentioned as a possible partner.
G. Norman Kenyon, a longtime associate general counsel for TWA, died March 24 in Rhode Island. Contributions in his memory may be sent to the Westerly Hospital, 25 Wells, Westerly, R.I. 02891, attention Nick Stahl.
American's passenger traffic, boosted by strong domestic U.S. and Latin American results, increased a "better-than-expected" 3% systemwide on 0.3% more capacity in March, pushing the load factor up 1.8 percentage points to 65.9%. North American traffic rose 2.1% despite a 2.2% drop in capacity. Overall international traffic increased 5.3% on 7.1% more capacity, resulting in a load factor decline of 1.1 points. Transatlantic traffic fell 0.2% on 1.7% more capacity and Pacific traffic declined 5.2% on 2.9% more capacity.
New Denver-based Frontier Airlines, which expects to post a loss for its fourth quarter, which ended March 31, is predicting it will turn its first profit in the first quarter of fiscal 1996. The carrier is considering several new longer-range markets for service from Denver if it finalizes its decision to lease a handful of 737-300s. Frontier code shares with Continental at Denver.
Eastern Airlines said it has made a first distribution totaling $48.6 million - more than $24 million of it to the Pension Benefit Guaranty Corp. (PBGC) - to holders of general unsecured claims greater than $100,000. The new distribution follows the 71,000 checks totaling $30 million that Eastern issued in February to creditors with lesser claims. It will continue distributions to creditors with claims of over $100,000 throughout 1995 and 1996.
Continental has named Jeffery Smisek senior VP and general counsel. He has been a partner at Vinson and Elkins, LLP in Houston, where he practiced in the corporate finance and securities section.
Continental Micronesia is asking DOT to amend its existing authority to add the Philippines to its current service between Guam and Saipan, on the one hand, and points in Indonesia, Malaysia, Thailand, Sri Lanka and India, on the other (Segment 12 of Route 171). The carrier said the expanded rights would give it flexibility to combine Philippines flights with other service on the route, including all-cargo operations serving Jakarta and Kuala Lumpur via Manila.
Mesa Air Group and Bombardier this week announced signing a definitive agreement for 25 Dash 8-200 aircraft plus 25 options. The airline had announced its selection of the newest version of the de-Havilland-built aircraft in late February (DAILY, Feb. 24). Deliveries on the C$317 million order are to begin next February at the rate of two a month.
The Association of Flight Attendants lost an election to represent flight attendants at Delta Connection carrier Comair yesterday. The National Mediation Board said of the 324 eligible voters, the AFA received only 116 votes. Comair's flight attendants are not currently represented by a union.
Saab Aircraft of America Thursday announced a major realignment of top management in what could be likened to a "youth movement." Henrik Schruder, 39, the son of retired Saab Aircraft Division General Manager and Saab-Scania Executive VP Harald Schruder, was named president and chief executive. He retains his position as president of the Saab Aircraft customer finance companies in the U.S. President Jack Faherty, 63, becomes a senior VP when the appointments become effective Monday.
DOT has tentatively renewed the authority of Exec Express II to provide subsidized essential air service at Enid and Ponca City, Okla., and Brownwood, Texas, for a two-year period from March 1, 1995, through Feb. 28, 1997. For an annual subsidy of more than $1.3 million, Lone Star will operate three roundtrips each weekday and weekend between Enid and Ponca City and Dallas/Fort Worth and two roundtrips each week-day and weekend between Brownwood and DFW. The carrier will perform service using a Fairchild Metro III or Metro 23. (Dockets 42130&43922)
A U.K. court has settled the Dirty Tricks case Virgin Atlantic brought against British Airways, resulting in a substantial net payment to BA, BA said. As of December, Virgin claimed damages from the Dirty Tricks campaign were 29 million, and last month it suggested a settlement payment of 750,000. BA rejected the offer. Virgin came back with a settlement of 265,000 and the suggestion that each side pay its own legal fees, which BA also rejected.
America West's tour package division is offering vacation specials to Mazatlan and Los Cabos, Mexico. Prices for two-night packages range from $339 from Phoenix to $499 from Minneapolis and Milwaukee to Los Cabos, and from $319 from Phoenix to $479 from Milwaukee and Chicago to Mazatlan. Packages include roundtrip airfare, a choice of hotel accommodations, 500 bonus FlightFund miles and ground transfers.
Sen. Wendell Ford (D-Ky.) introduced this week the Clinton administration's proposed legislation (S.682) to allow FAA to expand Part 139 airport certification requirements to airports served only by small commuter aircraft. FAA's current authority to issue airport certificates is limited to airports serving air carrier aircraft with more than 30 passenger seats.
Cincinnati- and Orlando-based Comair will expand service throughout Florida this spring, including the launch May 1 of Canadair Regional Jet service between Fort Lauderdale and Orlando as well as direct service to New Orleans from Fort Lauderdale via Orlando. The regional also will add two roundtrip flights between Fort Lauderdale and Tampa with 30-passenger Embraer Brasilia aircraft and upgrade an early roundtrip flight to Orlando from a 19-passenger Metro to the 30-passenger Brasilia.
Eastwind Airlines is seeking a three-month extension of its exemption to start up operations. The exemption had a revocation-for-dormancy date of March 31, and the carrier said it was "making significant progress toward commencing operations and believes it can make its certificate effective within 90 days." Eastwind said it was "actively engaged" in obtaining operating authority from FAA and negotiating aircraft leases. It also is "coordinating with and has support of the State of New Jersey Department of Commerce and Economic Development.
An Airbus Industrie A340 conducted automatic landings in Beijing, Shanghai and Guangzhou recently, demonstrating differential Global Positioning System capability to pilots and staff of several major Chinese carriers. Sextant Avionique supplied the ground station and aircraft receiver.
A senior executive of India's state-owned Hindustan Aeronautics Ltd. (HAL) has revealed the rampant use of counterfeit aircraft spares by the country's civil aviation industry. Titled "High Treason With Bogus Spares," the report, by HAL Deputy General Manager A.E. Patrawalla, says the dubious spares can be hazardous in terms of safety because they are often manufactured with cheap materials not appropriate for an aircraft, and they are dimensionally defective, improperly heat-treated and inadequately corrosion-proofed.
Short Brothers has awarded AEL Industries of Lansdale, Pa., a contract for its East Alton, Ill., Aero Division to design modifications and convert three Shorts 360 aircraft from passenger to cargo configuration. One already is completed and certificated by FAA. A similar modification is expected for a fourth aircraft. The first conversion was completed after work was begun at the Aero Division's St. Louis center in December, and has culminated in a Supplemental Type Certification from FAA's Great Lakes Region, AEL said.
A senior Boeing official said yesterday there does not appear to be enough demand to support the near-term launch of a very large commercial transport (VLCT) aircraft program. Larry Clarkson, senior VP-planning and international development for Boeing Co., said in Seattle he doubts that such a project will be started during the next two years, considering the amount of money and time a developer would have to invest.
LanChile is seeking authority to operate cargo service to the U.S. under lease for Mas de Carga. Under the arrangement, LanChile would lease aircraft to Mas de Carga to operate up to four weekly flights between Mexico City/Toluca, Cancun and Miami, and up to two weekly flights between Mexico City/Toluca and Los Angeles. (Docket 50259)
Alaska Air Group affiliate Horizon Air flew 68 million revenue passenger miles in March, a 27% increase from the 54 million flown in March 1994. Capacity rose 33% to 115 million available seat miles from 86 million a year ago, pushing load factor down 3.1 percentage points to 59.6% from 62.7%. The Seattle-based regional carried 315,100 passengers, up 20% from the 262,000 boardings of March 1994. March 95 March 94 3 Months 95 3 Months 94 RPMs 68,000,000 54,000,000 186,000,000 143,000,000
Regional Airline Association, responding this week to an FAA request for comments on National Transportation Safety Board recommendations that flight data recorders be upgraded, complained that it had been impossible to develop the required cost information in the two weeks allotted (DAILY, April 5).
The Clinton administration transmitted to Congress yesterday legislation proposing the DOT reorganization it announced in December and unveiled in February. The proposal would reduce the department from the current 10 operating agencies to three - the Federal Aviation Administration, the U.S. Coast Guard and a new Intermodal Transportation Administration (DAILY, Feb. 3). The new FAA would be smaller, with air traffic control functions shifted to a government corporation under separate legislation.
