Continental flew 5% more systemwide revenue passenger miles last month than in January 1994, but its capacity increased 7.8%, producing a load factor decline of 1.5 percentage points. Continental does not report passenger boardings on a monthly basis. The airline's domestic traffic rose 3.3% on 7.4% more capacity, resulting in a load factor decrease of 2.1 points to 53.8%. It fared better internationally, however, with a traffic increase of 9.5% on 8.8% more capacity, pushing its international traffic up 0.4 points to 61.6%.
David Traynham, longtime House aviation subcommittee staff member, today will receive FAA's Extraordinary Service Award, the highest recognition it gives to persons it does not employ. He is leaving the subcommittee after 15 years.
FAA is preparing to require modification of the nacelle strut and wing structure of 747s with Rolls-Royce engines at a cost of about $120,000 per aircraft. The agency yesterday issued a proposed airworthiness directive based on a Jan. 12 alert bulletin issued by Boeing, which will supply the parts at no cost to the operator. The cost estimate does not cover changes imposed by other Boeing service bulletins that would be performed prior to or concurrent with the strut and wing structure modification. FAA said that while there are no Rolls-powered 747s in the U.S.
U.S. aerospace companies hope scheduled talks between the U.S. and China will resolve tariff disputes before the end of the month, when the U.S. is to impose a 100% duty on many Chinese products. China bought aerospace products valued at $2.4 billion in 1993 and the market is growing, an Aerospace Industries Association official said.
SAS Group yesterday reported a preliminary 1994 pre-tax profit of 1.5 billion krona (US$202.1 million) - the airline company's first pre-tax profit in five years and a significant improvement from 1993, when it lost 492 million krona. From 1990 through 1993, SAS Group had pre-tax losses, including extraordinary items, of nearly 3.31 billion krona.
USAir plans to start daily nonstop service to Frankfurt from Philadelphia and Boston on June 11, and transfer its Philadelphia-Paris service to Charles de Gaulle from Paris Orly on March 26. USAir currently operates daily nonstop service to Frankfurt from Charlotte and Pittsburgh. With the new schedule, the Charlotte service will become a one-stop over Boston, so the net increase in flights to Frankfurt is seven a week.
Carnival Air Lines is offering a roundtrip business fare of $159 for passengers traveling from Fort Lauderdale to New York Kennedy and returning on the same day. Business-class upgrades are available for $59 each way. The flights depart Fort Lauderdale at 8 a.m. and return at 11:25 p.m.
Kiwi International Air Lines' founder and chairman, Robert Iverson, and three other high-level managers have left the company and other departures are expected in a management shakeup about which the company offers few details. Kiwi would not describe Iverson's departure as a resignation, saying only that the consensus of the board was that it was time to take Kiwi "to its next plateau," indicating that there have been differences in philosophy by management on the future of the company.
Sabre Decision Technologies (SDT) has at least a tentative deal to supply Air France with yield management and other of its decision support software, the AMR unit confirmed yesterday. In addition to the yield management system, Air France and SDT are discussing the U.S. company's airline profitability model, its fleet assignment model, an aircraft routing model and other products. SDT has a team of about 20 consultants working with Air France in Paris.
Lufthansa Technik AG has developed what it said is the first system for transporting the seriously ill that can supply oxygen reliably on very- long-range flights. The system includes a breathing apparatus with an oxygen capacity of 13,000 liters. The solution to aviation authorities' rules against carrying large quantities of oxygen in aircraft cabins was a central link to the aircraft's exterior, securing the system's four oxygen flasks against leakage into the cabin.
Delta's systemwide passenger traffic rose 2.7% in January from the same month a year ago on 0.5% more capacity, boosting its load factor 1.3 percentage points. The number of passengers boarded systemwide increased 3.4%. Delta's domestic traffic was up 3.2% on a like amount of additional capacity, and its international traffic rose 1.3% despite an 8% decline in capacity. "The new year has started out positive for us with an increase in terms of passenger boardings and load factor over a very strong January last year," said Delta Senior VP-Marketing Robert Coggin.
Comair Holdings has reached an agreement with the Canadair Group of Bombardier to exercise options on five Regional Jets, and it placed a conditional order for 10 aircraft with options on 25 more. Comair Holdings valued the 15 aircraft at about $260 million and said the deal is subject to financing arrangements. The aircraft would be delivered next year, and the 25 on option would be delivered in 1997 and 1998.
AlliedSignal yesterday reported record sales and net income in 1994. Earnings increased 16% from the previous year to $759 million, while sales grew 8% to $12.8 billion. Earnings also rose 16% in the fourth quarter to a record $205 million, while sales were up by the same percentage to $3.5 billion, also a record. AlliedSignal Aerospace reported its first sales increase since 1990. Full-year sales were up 2% to $4.6 billion and income increased 14% to $260 million.
Air New Zealand plans to increase its operations from Los Angeles July 1 with two more weekly nonstops to Sydney, for a total of five, plus an eighth to Auckland and a fourth to London Heathrow. To accommodate the additional service, Air New Zealand will add a 747-400 from International Lease Finance Corp. to its fleet later this year. With the additional service, Air New Zealand will operate 27 flights a week from Terminal 2 at Los Angeles.
FAA has notified bidders of a one-month delay in awarding its $500 million wide area augmentation system contract because of uncertainty over whether the Defense Department will require encryption of signals from its Global Positioning System satellites (DAILY, Jan. 30).Until FAA knows what DOD intends - and its position appears to be hardening - it cannot evaluate the bids fully. Contract award was planned in March or April.
Southwest has deployed 15% to 20% of its total capacity in new markets, far more than usual.The airline, which acquired Morris Air at the end of 1993 and spent much of last year integrating its operations, historically puts only about 5% of its capacity in new markets.
Southwest's January passenger traffic rose 3.7% from last year on 13.3% more capacity, causing the airline's load factor to drop 5.3 percentage points to 57.3%. The number of passengers carried increased 4.4%. The carrier's load factor performance is likely the result of the addition of new markets last year, particularly the launch of service to Salt Lake City, Tucson and Boise in the fourth quarter. January 1995 January 1994 Rev. Passenger Miles 1,663,423,562 1,603,750,449
KLM's overall traffic - passenger, cargo and mail - increased 12% to 599.8 million revenue ton kilometers last month on 7% more capacity, increasing the load factor 3.1 percentage points to 71.5%. The airline's passenger traffic rose 10% to 3.5 billion revenue passenger kilometers on 4% more capacity, boosting the load factor four points to 73.9%. KLM reported significant load factor increases on flights to the U.S. and Africa. Business-class traffic rose 9% and coach class increased 11% for the month.
All Nippon Airways has relocated its West Coast offices to Gramercy Plaza, 2050 W. 190th St., Torrance, Calif. The new offices, where about 60 people are employed, consolidate space the company occupied in the AT&T building in downtown Los Angeles and the Herbalife building near Los Angeles Airport. ANA signed a 10-year, $4.2 million lease on the new property.
El Al will emerge from receivership on Feb. 14 after 13 years, and Israel's privatization committee will appoint a board of directors for the carrier, the government said Sunday. The committee also approved the government's retention of a golden share in the airline to safeguard national interests once the airline is privatized, Reuter reported. The government expects to retain about a 49% interest in the airline.
Ladeco and five other Chilean companies are spearheading a "Destination Chile" program in North America this year. A number of companies are expected to join the program soon, Ladeco said. As part of the program, the Chilean airline has added six daytime flights a week to its regular daily nonstop schedule between Miami and Santiago. The promotional program is being supported by Sernatur, the Chilean National Tourist Board, and the Corporacion de Turismo.
Thrifty Car Rental has formed a marketing partnership with Gulfstream International Airlines that enables the car-rental agency to tap into business bound for Florida and the Bahamas. Gulfstream, based in Miami Springs, is a regional feeder for United. The partnership permits Gulfstream to sell Thrifty services to customers booking flights.
