Finnair's profits for the first six months of 1996 were cut in half because of higher fuel prices and flat growth in its international traffic. The pre-tax profit fell to 233.5 million markka (US$50 million) in the first half from 463 million in the same period of 1995. Net sales rose to 3.67 billion markka from 3.62 billion, but operating costs jumped almost 9% to 3.23 billion markka. The fuel bill increased by 60 million markka in the first half. "The full-year operating result will be clearly below last year's," said Finnair.
Australia's Ministry of Transport and Regional Development has established for the first three airports to be privatized price cap formulas intended to guarantee lower landing charges for airlines. The ministry proposed earlier this year to adopt formulas for Melbourne, Brisbane and Perth based on the consumer price index minus "X", a value to be determined later. The value for X now has been set at 4% for Melbourne, 4.5% for Brisbane and 5.5% for Perth.
After losing a $19.6 million judgment last week arising from a 1993 traffic accident blamed on its 40-foot gate information signs along Dallas/Fort Worth Airport's main roadway, American may turn off the signs as early as Thursday or Friday and remove them. American spokesman John Hotard told The DAILY yesterday that the airline "later this week will be looking at alternative means" of getting information on its two DFW terminals to passengers, and the signs will be turned off "once we determine it [the alternative] is viable."
Responding to competition from privately held new entrants, Malaysia Airlines is prepared to take immediate control of privately owned Malaysian regional carrier Pelangi Air, subject to approval of Pelangi Air's board.
The Senate majority and minority leaders and the leadership of the Senate Commerce Committee urged the Senate Finance Committee yesterday to make extension of the aviation excise taxes through fiscal 1997 the committee's "first effort in the 105th Congress." The taxes are set to expire Dec.
Airlines operating at Amsterdam Schiphol Airport said yesterday they will, beginning Jan. 1, pass along to travelers the Schiphol passenger service charge they currently are absorbing. Citing air fares that are "reduced drastically in real terms" and costs that have "risen disproportionately," the carriers said they can no longer include the charge as part of the fare. A passenger service charge of 18.65 guilders - about US$10.80 - will be applied on stopover and originating tickets, and a charge of 3.6 guilders will be applied to all direct transit tickets.
British Airways Express will take over the London Gatwick-Bremen route from Deutsche BA next March. The current Deutsche BA service is based on three flights a day using 50-seat Saab 2000s, but this will discontinue when the airline's fleet becomes an all-jet operation next year. City Flyer Express, BA's franchise partner, operating as British Airways Express will take over the service using 66-seat ATR 72s, offering business and economy classes.
Delta believes it flew more people Sunday than any airline on any single day in history. The Dec. 1 all-time one-day boarding of 358,805 was followed by 342,057 yesterday, Delta's second-best day ever. This means Delta transported the equivalent of the population of San Francisco in two days.
Top 25 Domestic City-Pairs Markets O&D Passengers Second Quarter 1996 1996 1995 Average Mkt Mkt Passengers Rank Rank City-Pair Per Day 1 1 Chicago - New York 8,267 2 2 Honolulu - Kahului 7,711 3 3 Los Angeles - New York 7,644
Southern Air Transport denied yesterday an assertion by its Teamsters unit, representing pilots and flight engineers, that the carrier will join the union in requesting National Mediation Board assistance in negotiations if the two sides do not reach agreement on a contract in January (DAILY, Dec. 3). David Sweet, administrator-corporate communications, said NMB involvement would lengthen the proceedings by six months to a year, and the company would rather continue private talks than accept such a delay.
The Association of Retail Travel Agents has filed a complaint at DOT charging that international discount fares offered on the World Wide Web are being sold at prices below internationally agreed tariff levels, in violation of federal law. ARTA named IATA, Cathay Pacific, Aer Lingus and Icelandair in the complaint.
Slots that American says could become available at London Heathrow Airport simply do not exist, according to a study commissioned by Delta Air Lines. American's slot assessment (DAILY, Nov. 13) was intended to show that under a U.S.-U.K. open skies agreement, slot access would create adequate competition to the proposed American-British Airways alliance.
United and Air New Zealand yesterday formed a code-sharing and strategic partnership linking destinations in North America, New Zealand, Australia and the South Pacific. ANZ gets broad access to 251 of United's North American destinations and United gains South Pacific traffic, destinations and visibility. Both carriers will retain existing service across the Pacific. The alliance will take effect in March, subject to government approval.
Douglas Aircraft Co. engineers will help Boeing develop derivatives of the 747 and possibly the 767 widebody jet transports under an agreement announced yesterday by executives of the two companies (DAILY, Dec. 2).
Far Eastern Air Transport Corp. of Taiwan received ISO-9002 certification for aircraft maintenance. The company is working to obtain certification for other functions, including flight safety.
Air South's recent contracting to Kiwi International was not caused by maintenance problems at Air South (DAILY, Nov. 27). Kiwi was hired to fly five flights on both Nov. 27 and Dec. 1 to cover busy holiday periods when two Air South 737s were undergoing routine heavy maintenance.
The Illinois House of Representatives executive committee yesterday approved a bill providing for state acquisition and operation of Chicago's Meigs Field. It was unclear yesterday afternoon whether the measure would come up for a vote during a special session of the House last night.
Following a break of more than 23 years, Taiwan hopes to restart air service to Osaka if disagreements between Taiwan and Japan can be ironed out at bilateral talks scheduled early next year. China Airlines, which operated service between Taipei and Osaka until Japan cut diplomatic relations with Taiwan in 1973, is reported to be lobbying for the right to fly the route once it is reopened. CAL currently serves Tokyo, Fukuoka, Nagoya and Okinawa.
Taiwan's China Airlines is believed to be preparing to begin operating flights between Taipei and Moscow next year. CAL has long been interested in serving the route but could not do so because China objected to allowing aircraft bearing the Taiwan flag from operating on routes to Russia. The recent introduction of a new corporate image, which eliminated the ROC flag from CAL's livery, has eliminated this problem.
British Midland has begun using its new 350,000-plus lounge for business passengers and a refurbished lounge for members of its Diamond Club frequent flyer program at East Midlands Airport. The facilities, located in the airport's new departure terminal, are part of the airline's 15 million pound (US$25 million) package of service improvements aimed at upgrading its Diamond EuroClass product.
Delta added one daily nonstop flight between Cincinnati and Dallas/Fort Worth over the weekend for a total of five. The new flight brings to 222 the number of daily flights Delta operates at Cincinnati, its second largest hub.
Carriers objecting to DOT's award of new all-cargo service to the Philippines said UPS would merely duplicate service provided by FedEx, but they devoted most of their energy to doubts that Polar Air Cargo would adequately serve the route it signed up for. Terming the selection of Polar "a monument to wishful thinking," World Airways echoed TWA's attack on DOT in the Toronto route case (see related TWA story in this issue).
Teamsters union said contract talks for pilots and flight engineers at Southern Air Transport have been scheduled in January. If an agreement is not reached in January, the company and the union will ask the National Mediation Board to assist in the talks, the union said.
Airline Industry Stock Trends Closed Closed Exchange 11/29/96 10/31/96 Majors Alaska Air Group NYSE $ 24.120 $ 22.000 AMR NYSE 91.250 84.000 America West (Class B) NYSE 14.620 11.500 Continental (Class B) * NYSE 28.370 25.120 Delta NYSE 75.250 70.870
