Nine regional airline stocks ended January in a wash - the average price per share was $7.83, exactly where it stood on Dec. 31. In the interim, the average reached as high as $8.42 on Jan. 9 and as low as $7.68 on the 25th. Five stocks advanced, three declined and one stayed even. Mesa led the losers, falling $2.69 to $6.44. United Express Great Lakes was off $1 to $4 and Aeromexico affiliate Air L.A. lost a quarter to end the month at $1.50 per share. Delta Connection Atlantic Southeast was up $1 to $16.50 per share to lead all gainers.
Independent Association of Continental Pilots (IACP) officers and negotiators picketed a meeting of Continental directors yesterday in New York - and threatened more demonstrations across the country - to protest the loss of the second half of their longevity pay raise, which was to come due March 31. Announcing 1994 losses, Continental Chief Executive Gordon Bethune told employees the company cannot afford to increase the payroll (DAILY, Jan. 27).
Iberia's passenger traffic declined 3.3% in 1994 to 22.54 billion revenue passenger kilometers. The number of passengers boarded for the year fell 4.5% to 13.36 million. Iberia's December traffic was down 1% to 1.76 billion RPKs and its passenger boardings declined 4.3% to 977,511.
GARY E. PAYTON, an Air Force colonel who retired as advanced technology director for the Pentagon's Ballistic Missile Defense Organization when he couldn't get detailed to head NASA's X-33 reusable launch vehicle program, has been "tentatively selected" by the space agency for the job, a spokesman said yesterday. NASA managers picked Payton for the space transportation job last fall (DAILY, Sept. 26, 1994, page 476), but his appointment snarled when his military superiors wouldn't release him. Administrator Daniel S.
...Atlantic Southeast Airlines, the only Delta Connection carrier without jet equipment, is believed to be close to a deal for about 10 Canadair Regional Jets, with which Comair and SkyWest have been quite successful. ASA has one factor to contend with at the Atlanta hub that the other Connection carriers do not have - ValuJet. At Dallas/Fort Worth, however, Delta already has turned a number of markets over to ASA and is adding Houston Hobby and Oklahoma City to the list. It also is dropping Kansas City.
POTENTIAL BIDDERS for the next generation of Global Positioning System (GPS) satellites are being asked by the U.S. Air Force to express their interest in writing by Feb. 14. In a Feb. 3 Commerce Business Daily notice, the AF's Space and Missile Systems Center, Los Angeles AFB, Calif., said it intends to issue a draft request for proposal for Block IIF of the Navstar GPS system in February, followed by a request for proposal in May and a contract award in December.
DOT yesterday approved the Delta-Virgin Atlantic code share application, plus new American and Tower service between the U.S. and the U.K. DOT Secretary Federico Pena promised "to continue to press for changes in our bilateral agreement with the U.K. that will eliminate restrictions on all airlines and allow travelers to enjoy the full benefit of competition." Pending since April 1994, the code-share agreement had seemed to be a hostage to the U.S.-U.K. bilateral stalemate and growing discomfort in the U.S. with the effects of the USAir-British Airways alliance.
ROLLS-ROYCE said its Trent 800 engine for the Boeing 777 has been certificated by the FAA. The action follows certification last week by the European Joint Aviation Authorities.
Reno Air Express will begin feeding Reno Air at Reno, Nev., from Redding and Santa Rosa, Calif., Feb. 15. The independent commuter, which is operated by the Phoenix Leasing Corp., also will add nonstop service from Sacramento to San Jose, Chico and Redding. Introductory fares will be $39 to Redding and Chico from Sacramento, and $45 to San Jose. Flights from Reno will cost $49.
Environmental compliance costs are among the highest and the "trickiest to keep up with" for airports, Tim Campbell, chairman of the American Association of Airport Executives, told the House Transportation and Infrastructure aviation subcommittee Wednesday. Campbell, who also represented Airports Council International-North America, said an ACI-NA survey found that the average cost for an airport to comply with state and federal environmental laws was more than $4 million.
RAYTHEON CO.'s Electronic Systems Div. is working under a $44.6 million award from U.S. Naval Sea Systems Command to fill the fiscal year 1995 requirement for three AN/SPY-1D transmitters, including three Mk. 99 fire control systems, for the three DDG-51 Arleigh Burke class destroyers. The transmitter and fire control systems are elements of the Aegis weapon system. Also included in the contract, Raytheon said, are priced options for FY 1996 and '97 requirements with quantities ranging from one to three units per fiscal year.
Delta's domestic route realignment will cut back service from Los Angeles to Guadalajara, Mexico City and Puerto Vallarta and make Los Angeles-Acapulco service seasonal, beginning May 1. On Feb. 2, The DAILY stated incorrectly that the three cities would receive seasonal service.
General Electric's GE90 turbofan for Boeing's 777 widebody twin won its FAA certification yesterday, and hours later a VIP flight of 777 No. 6 - the first airplane for launch customer British Airways - took off on its first test flight. Certification of the basic 84,700 lbst. version and the de- rated versions that will be used in initial service had been held up while FAA officials re-checked data on GE's modified fan blade-out test. Rolls- Royce and U.K. airworthiness authorities raised questions last year about the special conditions.
Air UK and Air Wisconsin each have leased one additional BAe 146 transport, according to Asset Management Organization, the British Aerospace unit that sells and leases the aircraft. Air UK signed a medium-term lease for a 110-seat 146-300, increasing its fleet to 10 -300s, one -200 and one -100.
...Product line for the new joint venture also is up in the air, although an all-new regional jet in the 80-passenger-plus range is seen as likely perhaps in eight to 10 years. In the meantime, there seem to be questions among the players themselves about whether the new entity will pursue the ATR-82 project, now seen to be a 330- to 350-knot, high-speed turboprop seating fewer than 80 passengers. The DAILY is told work continues on the project. A re-engined Avro RJ series with improved performance also is under discussion (see story on Page RA3).
The Kansas congressional delegation, joined by legislators in other states, introduced legislation (S.322, H.R.774) this week to repeal the so-called Wright Amendment, which restricts direct service from Dallas Love Field to intrastate flights and service to points in states contiguous with Texas. The Love Field restrictions were added to the International Air Transportation Competition Act of 1979 at the request of then-Rep. Jim Wright (D-Texas).
Bell Helicopter Textron has "just started" talking to the Army about the potential of using systems developed for the RAH-66 Comanche helicopter on its OH-58D Kiowa Warrior scout rotorcraft, Bell officials said yesterday. "We've looked at what we could do to make the aircraft better," one executive told The DAILY yesterday. "It looks like it would be a reasonable investment and low risk."
The Tay engines that will power the four firm orders and four options for Fokker 70s placed by Austrian Airlines has a potential value, with spares, of $75 million To Rolls-Royce, the manufacturer said (DAILY, Feb. 1) Austrian is the 13th operator to choose the F70.
FAA safety and inspection oversight top the DOT Inspector General's list of the department's most significant management problems, IG Mary Schiavo told the House Appropriations transportation subcommittee yesterday. Second is the growing cost of the air traffic control system. Other problem areas within FAA are acquisition and procurement integrity, grants management, logistics management and environmental compliance.
Great Lakes Aviation, a United Express affiliate, flew 18.9 million revenue passenger miles in December, an 11.5% increase from December 1993. Capacity increased 13.8% to nearly 41 million available seat miles from 36 million; load factor dropped one percentage point to 46.1% from 47.1%, and passenger enplanements rose 8.1% to 59.1 million from 54.7 million.
The New Congress Note: The following listing combines data released in recent weeks about membership of committees of the new Congress of interest to the aerospace and defense communities. Membership of subcommittees of the Senate Armed Services panel was expected to be released soon. House National Security Committee (202-225-4151) Republicans Democrats ----------- --------- Floyd Spence (S.C.), chairman Ronald Dellums (Calif.),
DIAGNOSTIC/RETRIEVAL SYSTEMS INC., Oakland, N.J., said its Technology Applications and Service Co. (TAS) has received a U.S. Navy contract with a ceiling value of $9.8 million for additional field engineering, integrated logistics support and depot repair services for the AN/SPS-40 series air search radars. It said initial funding on the contract should be released in 60 days. TAS has provided technical services for these radar systems since 1983.
Fitch put AAR Corp.'s senior debt and commercial paper on FitchAlert with negative implications because of weakening cash flows and reduced debtholder protection measures. The action affects $65 million of BBB rated 9.5% senior notes due in 2001; $50 million of BBB rated 7.25% senior notes due 2003, and the F-2 rated commercial paper program. No commercial paper is outstanding at this time.
SITA has completed the implementation of the Interactive Sell functionality in its Gabriel airline reservations system and said Luxair's use of the capability is a "significant milestone" in Gabriel's evolution. Interactive Sell, available to 95 Gabriel-hosted airlines, provides real- time system updates to seat inventory and passenger name records, both in Gabriel and in the Amadeus computer reservations system, at the time of sale.
The U.S. Air Force "ought to buy" Non-Development Airlift Aircraft (NDAA) to flesh out its mobility capability while at the same time avoiding re-engineering and other infrastructure costs, AF Chief of Staff Gen. Ronald Fogleman said yesterday. The AF recently finished a mobility requirements study, which revalidated the need for 120 "C-17 equivalent" aircraft, and is expected to release a second draft request for proposals for NDAA within the next two weeks, according to service sources.
