Inmarsat Assembly authorized the acquisition of additional satellite capacity for navigation, calling the move a further step in its evaluation of a global International Satellite Navigation System. Inmarsat also agreed on the use of its system "solely for peaceful purposes."
Alaska Air Group is asking shareholders to let it increase its authorized common stock to 50 million shares from the current 30 million. While only 13.74 million shares are outstanding, Alaska says in its latest preliminary proxy statement it may finance continued growth at least in part through the sale of more common stock.
Norden Systems has been awarded a $5 million contract to supply an advanced surface movement guidance and control system to Singapore Changi Airport as a subcontractor to Philips Singapore.
AAR Corp. said preliminary results show net income increased to $4.1 million in the quarter ended Feb. 29, the third of its fiscal year, compared with net income of $2.9 million for the same period a year earlier. Sales hit a record $136 million, up 9%. For the first nine months, net income rose to $11 million from $6.9 million and sales increased 14% to $367 million.
Air Transport Association Cargo Traffic January, 1 Month 1996 Revenue Ton-Miles (000) January January % 1996 1995 Change Domestic Freight 630,519 627,426 0.5 Mail 145,327 145,242 0.1 Total 775,846 772,668 0.4 International Freight 500,281 517,260 (3.3)
USAir says it outperformed all the other major carriers in a second round of FAA security inspections. FAA began Level 3 inspections last fall of ticket counters, gates and baggage checks.
Tower Air flew 3.2% fewer block hours in February compared with the same month last year. For the first two months of the year, Tower flew 6,649 block hours, a 1.7% decrease from the same period in 1995. Capacity for the month was up 18.2% to 324 million available seat miles, while traffic for the year grew 19% to 225 million revenue passenger miles. Load factor grew 0.4 points to 69.4%.
FAA Administrator David Hinson welcomed three new members to the agency's research, engineering and development advisory committee. The terms of two members, former FAA Administrator John McLucas and John Olcott, president of the National Business Aircraft Association, expired at the February meeting. Joining the committee were Wesley Harris, an aeronautics and astronautics professor at MIT, Aaron Gellman, director of the Transportation Center at Northwestern University, and Brian Rowe, chairman emeritus of GE Aircraft Engines.
Air France will increase service to Los Angeles from Paris to 12 times per week during its summer schedule, which begins April 4 and ends Oct. 24. During the rest of the year, the carrier flies a single daily nonstop with what it says is the only 747 in the market.
Two airlines ordered by the Immigration and Naturalization Service to pay detention costs for illegal aliens while they awaited hearings on political asylum requests are entitled to recover those expenses from INS, a federal appeals court ruled. The decision of the U.S. Court of Appeals for the Federal Circuit (Case Nos. 94-5076, 94-5077) reverses a U.S. Court of Federal Claims ruling that dismissed claims filed by Aerolineas Argentinas and Pakistan International Airlines.
Northwest Airlines has named Jeff McDougle managing director-corporate finance. He joined Northwest in July 1994 as director-corporate finance. In his new position, he will have responsibility for private capital markets, including commercial banking and municipal finance activities.
House last week approved 209 to 206 legislation (H.R.3019) to continue funding for the federal government through fiscal 1996. The bill, to be considered today by the Senate, includes a measure to guarantee collective bargaining rights for FAA's unionized employees after FAA adopts its new personnel management system (DAILY, March 7).
China Airlines, which has largely withdrawn from the within-Taiwan market in recent years, has indicated that it wants to regain its position as a leading domestic carrier. Bowing to government pressure, CAL gave up its Taipei-Hualien, Taipei-Makung and Taipei-Taitung routes. Following a change in government policy that will permit international carriers to conduct domestic flights, announced late last year, CAL wants to resume service on its former routes.
Rolls-Royce reported 1995 pretax profits of 175 million pounds, up from 101 million the year before. The profit included 30 million pounds from operations of Allison Engine Co., acquired March 24, 1995. Sales increased to 3.6 billion pounds from 3.2 billion pounds, including 377 million pounds contributed by Allison. Backlog stood at 6.2 billion pounds at yearend, compared with 5.9 billion pounds, as the inclusion of Allison more than offset a Rolls reduction in commercial aircraft engines. Chairman Ralph Robins said he is "encouraged" by the 1995 performance.
Mesaba Holdings is expected to announce today that it will acquire 50 Saab 340 aircraft, ending a heated competition between Saab and the Dornier 328. The Minneapolis-based carrier will take 20 used 340 and 30 new 340BPlus airplanes to replace its de Havilland Dash 8 and Fairchild Metro fleets.
State governments intend to spend $413 million in fiscal 1995-96 on promoting tourism, 2.5% more than in 1994-95, according to a Travel Industry Association survey of state travel offices. For a majority of states, the travel industry is the first, second or third largest employer, said TIA President William Norman. The state with the largest travel budget this year is Illinois, which will spend $31.5 million, followed by Hawaii, $24.5 million after a 21% budget cut, and Texas, $21 million.
Boeing has invested more than $100 million in China since 1993 "because we want them to be able to buy aircraft and we are hoping they will buy our aircraft," says Nancy Bethel, VP-marketing. "We really hope that the market is stable and that we will be able to compete in it."
American Trans Air will begin scheduled service May 4 from New York Kennedy Airport to three Irish cities, Dublin, Belfast and Shannon, flying six times a week with 757s and L-1011s. Fares start at $269 one way before tax. ATA will continue to operate charter flights to Ireland from Boston, Chicago and Detroit.
Transport Canada estimates that 93 new scheduled services were operating one year after the U.S. and Canada signed their open skies bilateral. Canadian carriers account for 56 of the new routes, and most of them, 34, are converted charter services.Toronto, Montreal, Vancouver and Calgary account for 68% of the new services.
Airport and Airway Trust Fund Income Statement October 1, 1995 - December 31, 1995 Current Month RECEIPTS (Revenues) Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas $ 11,250,000.00 Transportation by Air, Seats, Berths, etc. 383,704,000.00
Air Canada will operate 273 more flights per week this summer than it did a year ago, a 13% increase in capacity. Of the 273 flights, 149 are in transborder markets, an increase of 21%. Air Canada will establish service to Atlanta from Montreal during the Olympic Games and put a widebody aircraft in the Toronto-Atlanta market. The carrier will increase service from Toronto to Nashville, Minneapolis/St. Paul, Boston, Orlando and Fort Lauderdale, and also in the Montreal-Orlando and Vancouver-Hawaii markets.
Careful analysis of competition in city-pairs comprising hubs of U.S. airlines and foreign partners applying for antitrust immunity is an "especially important" factor as DOT and the Justice Department determine whether to approve immunity, according to Mark Gerchick, DOT deputy assistant secretary for aviation and international affairs. Germany is linking implementation of its open skies agreement with the U.S. with U.S.
World Airways has no plans to scrap its recently launched scheduled service to Tel Aviv in the wake of terrorist bombings in Israel, Chief Executive Charles Pollard told The DAILY. Some carriers say they have seen a falloff in travel as a result of new violence. World, which already was struggling with the service, says it has not experienced a decline.
AEI said it has acquired Profreight Forwarding, which it described as one of South Africa's "fastest growing companies in the freight forwarding and clearing industry," with offices in Johannesburg, Cape Town, Durban and Pretoria.
FAA officials expressed surprise last week at the degree of interest shown by industry in the acquisition reform proposal the agency will implement April 1. An aide to George Donohue, associate administrator for research and acquisition, reported 2,090 "hits," or electronic accessions, since Feb. 22, when FAA made the proposal available on the World Wide Web, and "there has been no leveling off in the number of hits." Program officials will assess comments on the proposal before they make it firm and put it into effect.
