Swissair Group said yesterday it will purchase 12 RJ100s from Avro International Aerospace for use by subsidiary Crossair and dispose of 10 Fokker 100s (DAILY, March 3 and 7). The board said the move will permit all operations involving aircraft up to 100 seats to be transferred to Crossair, Swissair's regional subsidiary, which "offers a lower cost structure in this field." Deliveries of the new aircraft run from September until next summer. Options were taken on another 12, making the order worth up to $600 million.
After making significant breakthroughs in Canada and Europe, the U.S. is being forced increasingly to focus on its more difficult relations with Japan and the U.K. Some observers believe Japanese moves to constrain service by U.S. carriers will obligate the U.S. to schedule talks with that country (DAILY, March 30). Meanwhile, U.S. officials will reconvene talks with the U.K. April 10 in Washington after failing to attain broader concessions from Great Britain than the so-called "mini-deal" last week in London. The U.S.
AlliedSignal Aerospace was awarded $175 million in contracts from Southwest to supply a "package of cockpit avionics, including the world's first forward-looking windshear detection system, and to provide maintenance for wheels and brakes." Southwest chose all avionics products that AlliedSignal offered for the new 737-700, including RDR-4B forward-looking windshear radar systems, traffic alert and collision avoidance systems, the Quantum Line communication and navigation system, flight data acquisition and management system and solid state flight data and cockpit voi
Swissair Group's 1994 net and operating profits fell sharply from 1993's levels largely because of the negative impact of currency exchange rate fluctuations, the airline company said yesterday. The Swissair Group, which includes Swissair, Crossair, Balair/CTA and Swissair Associated Cos. (SAC), posted a 1994 net profit of 23 million Swiss francs (US$20.2 million), less than half of 1993's earnings of 59 million francs, and an operating profit of 131 million francs (US$115 million), down from 216 million francs in 1993.
Senate late yesterday was debating a bill (H.R.1158) to make additional appropriations and spending cuts for fiscal 1995, including a measure to cut $5.3 million from the essential air service program in this fiscal year. Because changes to, or elimination of, EAS is possible for fiscal 1996, the Senate bill also prohibits DOT from entering into EAS contracts beyond Sept. 30.
National Transportation Safety Board will meet next Tuesday in Washington, D.C., to determine the probable causes of a USAir DC-9 crash last July 2 during an attempt to land at Charlotte, N.C. The crash killed 37 and injured 20.
International Council of Aircraft Owners and Pilots Association will hold its World Assembly April 3-7 in Tokyo. David Watrous, president of RTCA, and Harumasa Hojo, will speak on developments in global satellite navigation.
The Association of Flight Attendants (AFA), representing flight attendants at Tower Air and American Trans Air, is supporting striking flight attendants at Icelandair. The Icelandair employees began the labor action Monday, which caused flights from New York Kennedy to be canceled. The Icelandair flight attendants union asked for AFA's support when it learned that Tower Air flight attendants were being positioned as strikebreakers. Icelandair subcontracted with Tower to operate its flights when it learned of the planned strike.
Nearly US$22.8 billion flowed through the IATA Clearing House last year, an increase of 7.7% from 1993, making 1994 the second busiest year in Clearing House history, according to IATA figures. The Clearing House is the mechanism through which the world's airlines settle interline accounts and charges. Passenger interline settlements totaled US$13 billion in 1994, up 5.6% from 1993, when throughput declined because of weak traffic and weaker yields.
Officials at Denver Airport have received about 1,500 noise complaints since the facility opened Feb. 28, compared with 431 complaints at Stapleton last year, Airport Noise Abatement Officer Brian Riks said. He attributed the volume of complaints partly to air traffic control instrument anding procedures that are bringing airplanes down to about 5,000 feet at distances of about 25 miles from the airport - rural areas with low background noise that experienced a smaller number of aircraft before DIA was built.
Air Canada has raised C$500 million (US$357 million) by selling combined stock/debt units to a group of investment dealers, according to media reports from Canada. The dealers will sell the units, which comprise newly created non-voting common shares and some debentures. Air Canada will reportedly use the proceeds to finance new aircraft and facilities to support its transborder and international expansion. It did not disseminate information on the transaction to the U.S. on the advice of its securities lawyers.
The Port Authority of New York/New Jersey will examine whether increased private sector involvement, including a lease or management contract with a private airport operator, could improve operations and management of Newark Airport. The bi-state agency selected the joint venture of Leigh Fisher Associates and KPMG Peat Marwick for a $460,000 study to identify and examine potential operational and managerial improvements and efficiencies.
Rolls-Royce reported that its Trent 800 turbofan, which will power the new Boeing 777, completed its first flight this week on a Boeing 747 test bed. Rolls said the engine is the first to be certified at 90,000 pounds takeoff thrust. During the 4 hour and 15 minute flight, designed to test baseline performance calibration, the aircraft reached an altitude to 35,000 feet and cruised at Mach .83.
Fokker is thought to be a leading contender in the regional-jet competition taking place at Atlanta-based Atlantic Southeast. Fokker very nearly beat out ATR when ASA acquired its first large turboprops a couple of years ago. Sources told The DAILY that ASA went to Bombardier Regional Aircraft Division seeking the same deal for Canadair RJs that North American launch customer and fellow Delta Connection carrier Comair received, and got little response. Fokker, seeking a greater North American presence for the 79-passenger F70, may be a bit more sympathetic.
Virgin Atlantic Airways has introduced a new tour package that is targeted at the gay community, which the U.K. carrier said is a first in the airline tour package industry. Air-inclusive packages such as "Out in London's West End" and "London Proper/Gay Paree" feature roundtrip air fare on Virgin Atlantic, hotel stays ranging from tourist to deluxe class, "meet & greet service," airport transfers, and continental breakfast daily.
New Zealand authorities this week were investigating the crash of a Beech Queen Air that apparently was operated by Kiwi West Aviation. The aircraft reportedly crashed near the town of Hamilton, New Zealand, Wednesday, killing all six aboard. Wire reports said the airplane reported engine failure to the control tower shortly after taking off around midday and turned to return to Hamilton but disappeared from radar screens after a mayday call.
Singapore Airlines (SIA) has renewed its effort to gain DOT authority to operate intermodal cargo services to its U.S. gateways and beyond to other U.S. cities. In its application, it said it is scaling back its unsuccessful February 1994 bid to operate intermodal service nationwide to more than 90 points beyond its gateways (DAILY, Feb. 22, 1994). SIA, which serves Los Angeles, San Francisco and New York, said it will specify city- pairs later. Singapore's earlier application drew opposition from American and United.
National Transportation Safety Board will hold a public hearing April 19 on the collision last November of a TWA MD-82 and a Superior Aviation Cessna 441 at Lambert Field in St. Louis. Chairman Jim Hall will preside over the board of inquiry at the Plaza Ballroom of the Doubletree Hotel National Airport, Arlington, Va. The hearing is expected to last two days.
Swissair, which has been unable to win concessions from its pilots despite months of negotiations, yesterday served notice that it plans to terminate the pilots' contract as of March 31, 1996. In giving notice of intention to terminate the current collective working agreement, Swissair said it is attempting to lay the foundation for what it termed "unconditional negotiations." Swissair has been pushing the pilots union, Aeropers, to negotiate unconditionally, meaning all aspects of the current contract are open to discussion.
FAA Administrator David Hinson this week cited a General Accounting Office report that says aviation manufacturers could save between $800 million and $1 billion over 10 years if "international differences in airworthiness standards and duplicate certificates were eliminated."
DOT has invited carriers to apply for scheduled combination services between Tampa and Montreal and/or Toronto. The Tampa authority was originally held by Delta as part of its Miami-Toronto and Miami-Montreal authority. In its route transfer application, Delta told DOT it intended to halt Tampa service April 30, and Miami-Montreal/Toronto rights were transferred to American, which also said it would not serve Tampa (DAILY, Jan. 26). (Docket 50088)
El Al plans to add a third weekly Chicago O'Hare-Tel Aviv flight to its schedule on June 25. The Israeli carrier also said it is expanding nonstop service from Newark and Los Angeles. El Al recently launched its first nonstop from Newark to Tel Aviv and plans to add a second weekly flight to the schedule in June. It also offers two weekly flights from Newark to Tel Aviv via London. Also in June, El Al will begin weekly nonstop service from Los Angeles to Tel Aviv. The airline currently offers three weekly direct flights from the California city.
British Airways today will unveil a new $2 million television ad that will premier in the U.S. on Monday in what the airline described as an initial $5 million "burst of activity." The worldwide campaign, created by Saatchi & Saatchi, was shot in Australia and features a cast of 300 actors, 40 boats and helicopter pilots from Sylvester Stallone's "Cliffhanger" movie.
