The combined market value of U.S. airline company stocks tracked by The DAILY rose 9.2% last month to $27.26 billion on the final day of April trading, from $24.95 billion at the end of March. A relatively mild winter on the U.S. East Coast, fewer fare sales and continuing cost-cutting efforts boosted airline financial performance in the first quarter, and most carriers are looking forward to a busy and profitable summer season.
Air Canada yesterday posted a "not unexpected" first quarter net loss of C$88 million (US$65 million), more than twice last year's, but it also reported an operating loss of C$7 million (US$5 million), its best first quarter operating result since 1987. In the first quarter of 1994, Air Canada had an operating loss of C$12 million and a net loss of C$32 million. The airline attributed this year's larger net loss to the weak Canadian dollar, and to C$40 million in one-time gains last year that it did not have this year.
National Car Rental/Interrent and American have teamed to give National customers AAdvantage miles. From June 15 until Aug. 15, National customers will earn double miles with every rental. Miles can be earned in the U.S., Europe and Canada, and at participating locations in Latin America and the Caribbean.
The American Society of Travel Agents and Norwegian Cruise Line (NCL) have teamed to recruit new ASTA members by rewarding agents for booking NCL cruises. ASTA said NCL is asking agents to support ASTA as it battles the airline commission cap, and will give agents up to $500 in bonus commissions on bookings in the next year. ASTA President Jeanne Epping said the association's membership has increased by more than 1,000 since airlines introduced the cap.
Delta, which became the first totally smoke-free airline in January, began this week airing television commercials that promote its commitment to passenger comfort with non-smoking flights in conjunction with its sponsorship of the 1996 Olympic Games. Delta will advertise in the print media in the future.
British Airways, working with the U.K. Civil Aviation Authority and the Institute of Satellite Navigation at the University of Leeds, will test a 20-channel Global Positioning System and Glonass receiver on a BA 747- 400. Leeds recently was able to lock up 11 GPS and nine Glonass satellites with the receiver, which can carry out receiver autonomous integrity monitoring (RAIM). The receiver was described by the institute as important for both differential or stand-alone Global Navigation Satellite System capability in Europe.
U.S. and U.K. officials will begin another round of aviation negotiations today in London. The talks, scheduled to last through Saturday, will follow a "precise agenda" divided into two phases, DOT Acting Assistant Secretary for Aviation and International Affairs Patrick Murphy said yesterday. The first phase will be devoted to the so-called "mini-deal," which includes proposals for an additional Heathrow slot for the U.S., to be operated from Chicago by United; beyond rights for U.S.
While representatives of former Professional Air Traffic Controllers Organization members met this week on Capitol Hill with House and Senate aviation committee staff personnel, and members of the National Air Traffic Controllers (NATCA) union distributed information packets at airports, FAA sent urgent letters to members of Congress denying as unfounded some of the concerns expressed by the two groups.
BFGoodrich Aerospace Avionics Systems has received British CAA approval for its TCAS 791 traffic alert and collision avoidance system and its SA-151D Servo Actuator for autopilots.
Jetall Holdings is seeking renewal of its authority to operate charter cargo service between points in Canada and the U.S. The carrier also requests that the exemption be expanded to include other charters. (Docket 47652)
All Nippon Airways has applied to Japan's Ministry of Transport for authority to launch new service from Osaka Kansai to Shanghai, Bangkok and Kuala Lumpur. ANA plans to use a two-class, 204-seat 767-300 to serve the route, beginning July 21. Osaka-Shanghai flights will operate twice weekly and Bangkok and Kuala Lumpur service four times a week. Two weekly flights will be routed Osaka-Bangkok-Kuala Lumpur and two Osaka-Kuala Lumpur-Osaka. ANA flies to both Shanghai and Bangkok from Tokyo but does not serve Kuala Lumpur.
Spending constraints as the administration and Congress restrict federal funding in their drive to balance the budget will leave little room for program and technology errors in FAA and industry efforts to transition to a free-flight regime, an RTCA symposium was told yesterday. The symposium, conducted in Washington, was a prelude to the first meeting of an RTCA free-flight task force, scheduled May 17-18 in Herndon, Va. Richard Taylor, a longtime consultant to Boeing, is the chairman of the task force.
Martinair Holland reported yesterday its 35th straight profitable year, but the Dutch carrier's 1994 net earnings fell 35.5% to $28.8 million from $44.6 million the previous year. Revenues increased 1.5% to $575.8 million, and costs, including lease payments and depreciation, rose 1.3% to $518.8 million. The reduction in net earnings can be traced, in part, to a $3.4 million book loss on the sale of aircraft Martinair took in 1994, versus a $27 million profit from the sale of aircraft the company recorded in 1993.
Dee Howard Co. said it has signed a contract with Polar Air Cargo to perform B check inspections and airworthiness directive/service bulletin terminations on 747-100 aircraft.
Citing the new U.S.-Peru agreement, United has asked DOT to increase its allocation of Miami-Lima frequencies from 4.5 to seven per week. Hoping to begin daily 757 service June 5, the carrier noted that the pact increases the number of frequencies available for Miami-Lima from 21 to 24.5. The additional 3.5 frequencies would be "more than enough to enable United to offer daily services," the carrier said.
National Weather Service's $351 million Automated Surface Observing System (ASOS) "does not provide certain capabilities that some users say are critical to ensuring safe aviation," according to a report to Congress by the General Accounting Office (DAILY, May 9). Six of the eight sensors in the ASOS "do not meet key contract specifications for accuracy or performance," GAO said.
Fuel Cost and Consumption; U.S. Majors, Nationals and Large Regionals; April 1994 - March 1995 Total Total Cost Gallons (Dollars) 1994 April Domestic 1,002,684,540 519,490,805 Int'l 334,893,571 195,809,124 System Total 1,337,578,111 715,299,929
FAA has selected the Trimble 8100 GPS receiver for its flight inspection aircraft. The unit will be installed in the Beech 300 aircraft, which, as part of the flight inspection fleet, helps perform evaluations to validate navigational aids and flight procedures to ensure the safety of the National Airspace System. Manufactured by Trimble Navigation Ltd.
First Rolls-Royce-powered Boeing 777 was rolled out yesterday in Seattle and is expected to make its first flight on schedule this month. The Trent 800 was the first 777 engine to be cleared for flight at 90,000 pounds takeoff thrust when it was certified in January. A 95,000-pound thrust version, the Trent 895, will be available for the 777A stretch aircraft in May 1998.
America West's April traffic increased 11.1% from a year ago on 7.6% more capacity, causing the airline's load factor to increase 2.3 percentage points to 72.4% - the highest April load factor in its history. "Our strong April results continued to build on the healthy traffic we reported in March," said Maurice Myers, president. He added that the carrier's summer fare sale has generated "solid advance bookings throughout the next several months." April 1995 April 1994 4 Months 1995 4 Months 1994
A vintage keyboard failed at the Washington Center yesterday - one day after controllers demonstrated at 55 airports about staff shortages and unreliable equipment - causing flow control delays in the morning rush hour, according to James Kidd, the National Air Traffic Controllers Association representative at the Leesburg, Va., facility. The loss affected controllers' ability to amend altitudes and flight routes, he said. Kidd said that a non-radar keyboard multiplexer failed. The center has four of the devices, one as a backup, and a second already was out.
Cost of travel rose more than the cost of all goods in March, bolstered by an increase in air fares from February to March, according to the Travel Industry Association of America. Travel costs were up 1.6%, compared with a 0.3% rise in the cost of all goods as measured by the Consumer Price Index, while air fares grew 3.9%. Air fares from March 1994 to March 1995, however, were down 5.1%.
The new U.S.-Peru agreement provides for immediate increases in combination and cargo frequencies for carriers from both countries. The pact, hammered out last Friday after a week of negotiations in Washington (DAILY, May 8), boosts immediately the number of weekly combination roundtrip frequencies for both countries' carriers from 21 to 31.5. That number rises to 42 on Nov. 1, 1996. The accord reserves seven of the immediately available frequencies and seven of the 1996 frequencies for service to cities other than Miami and Fort Lauderdale, Fla.
Continental's systemwide passenger load factor rose a strong 4.1 percentage points last month as its traffic grew 3.6%, while available seat miles declined 2.9%. Domestic traffic was up 2.5% despite a 7% capacity reduction, caused by the carrier's retrenchment in a number of markets as it dismantles Continental Lite. International traffic rose 7% on 3.1% more ASMs. Through the first four months, Continental's systemwide traffic rose 2.9% on 2.7% more capacity, resulting in a load factor increase of 0.2 points.
President Clinton has written House Speaker Rep. Newt Gingrich (R-Ga.) and Senate Majority leader Sen. Robert Dole (R-Kan.) urging passage of the administration's legislation to reform the nation's air traffic control system.
