The average length of haul for 15 of the nation's largest regional airlines remained static during September at 239 statute miles, compared to the same month a year ago. Individual carriers, however, saw swings of as much as 7.8% on the plus side and 7.9% on the minus side. At the top of the list was Delta Connection Comair with its fleet of new Canadair Regional Jets (CRJs) pushing its average length of haul up 4.7% year over year to 330 miles. That was up from 315 miles in September 1995.
Air Line Pilots Association directors have voted unanimously in favor of a proposed merger agreement with the Canadian Air Line Pilots Association. The board approved the proposal at its 36th biennial meeting in Bal Harbour, Fla. CALPA officials will vote during its Convention Assembly Nov. 19-21 in Quebec City, which would be followed by a membership vote. ALPA President Randy Babbitt said a merger is a step toward ensuring that pilots of different nations "will not be pitted against one another."
Training Crunch at both Fairchild Dornier and Saab is forcing the companies to provide airplanes to train new crews at both USAir Express PSA (formerly Jetstream International) in the case of the former and Mesaba in the case of the latter. Fairchild Dornier's only U.S. Dornier 328 simulator at Portland, Ore., is booked solid primarily with pilots for new Western Pacific subsidiary Mountain Air Express, so it took an airplane from Lone Star to train pilots at PSA.
The 1996 congressional election brings few key individual races of interest to the aviation industry, but the possibility that control of the House, the Senate or both may shift back to the Democrats makes it notable nonetheless. The most significant race, between Senate Commerce Committee Chairman Larry Pressler (R-S.D.) and Rep. Tim Johnson (D-S.D.), is viewed by many as a toss-up. All House members are up for reelection, but none of the key committee or subcommittee leaders is believed to be in danger.
FedEx has started operations to Moscow, which it intends to develop as a gateway to Russia and the former Soviet republics. FedEx said it will be the "only U.S. express carrier to use a combination of its own aircraft and customs warehousing service," removing weight restrictions on express service.
United Parcel Service and the Teamsters union, which represents more than 800 UPS aircraft maintenance workers, reached a tentative agreement on a new labor contract, the company said yesterday. The proposal will be submitted to a vote by workers early this month, and terms were not revealed pending the vote.
Minneapolis-based Mesaba Airlines posted an operating margin of 13.9% for its second fiscal quarter ended Sept. 30, 4.1 percentage points higher than the 9.8% it recorded in the same 1995 period. The Northwest Airlink affiliate earned a net income of $3.9 million, or 30 cents per share, compared with 23 cents in the same year-ago period (DAILY, Oct. 25). The net profit figure represents a 51.1% increase over the previous year's second fiscal quarter net earnings of $2.6 million (excluding a $49.3 million nontaxable gain resulting from the Airways Corp. spinoff).
The French court that was expected to rule this week on who will buy Air Liberte has put off its decision until Nov. 5 because British Airways, the principal suitor, wants more information on the French carrier.The deal would give BA more than 30 slots at Paris Orly, an airport that likely will lose Delta and Continental to Charles de Gaulle Airport next year if and when their alliances with Air France are cemented.
Some 250 member airlines of the International Air Transport Association will hold an urgent meeting Nov. 13 in Geneva to address the high cost of jet fuel worldwide. In what is officially known as the Tariff Coordinating Conference, member carriers will consider how to counter fuel costs that have risen more than 10% globally in the past 12 months, reaching five-year highs. Carriers could absorb price hikes but are expected to agree as a group to pass them on to consumers by increasing passenger and cargo tariffs.
Belfast-based Bombardier subsidiary Short Brothers is creating 120 jobs in Northern Ireland to keep up with demand from customers for aircraft components. Shorts VP Ken Brundle said, "As a result of recent increases in the aircraft production rates of our major customers, there is a need to employ a further 120 production line employees at our two composite plants."
Farmington, N.M.-based Mesa Air Group posted net earnings of $30.4 million, or one dollar per share, for its fiscal year ended Sept. 30, a 138.1% increase per share from fiscal 1995 earnings of $14 million, or 42 cents per share. For the fourth quarter ended Sept. 30, net earnings reached $8.1 million, or 29 cents per share, a 26.1% per share increase from the prior period's $7. 6 million, or 23 cents per share.
Belgian flag carrier Sabena and its unions reached a preliminary agreement yesterday that will save the carrier 4.7 billion Belgian francs (US$151 million) during the next two years and return it to profitability. Three separate components of the union accords, framed under Sabena's "Horizon '98" restructuring, will reform the carrier's work rules, salaries, benefits, operational efficiency and provide for voluntary retirements. "There were some last-minute problems with the pilots, but they have been solved," said Sabena spokesman Eric Plateau.
Air Express International and Sears have created a "Miami Export Initiative" program that enables Latin American shoppers in Miami to buy goods, receive shipping quotes and pay for the shipment of purchases anywhere without ever leaving the store. In most cases, international shoppers visiting the U.S. must arrange their own shipment of goods. The program is being pilot-tested at Sears's 17 locations in Miami and may be expanded to New York, Los Angeles and Orlando.
AirWays Corp., the parent of Orlando-based AirTran Airways, posted a $4.1 million loss for the third quarter, versus a net profit of $201,000 during the year-earlier period. The airline continues to realign its service, withdrawing from several cities and trying others in a search for the best profitability for nonstop flights from mid-sized cities to Orlando. AirTran blamed its worsened results on negative publicity about low-cost airlines following the ValuJet crash in May.
Sabena has converted an outstanding order for nine 85-seat Avro RJ85 aircraft to 100-seat RJ100s, which will be delivered before the end of 1999. Sabena, which originally ordered 23 RJ85s, says the larger aircraft will enable it to meet growing demand on regional routes.
Boeing 767 Systemwide Aircraft Utilization Per Day Second Quarter 1996 B767-200 American Delta United Number of Aircraft Operated 30 15 12 Total Fleet Operations Departures 57 61 29 Block Hours 367 159 157
One month after returning to service, ValuJet Airlines plans to keep things simple for a while before adding to its fleet or expanding to new routes. Now operating with 15 aircraft, the maximum allowed by FAA, the carrier is serving 16 cities, all from Atlanta, with high loads at low fares. It has no plans in the immediate future to operate from its former Washington Dulles focus city to any city but Atlanta. ValuJet is "opting for simplicity" of service, President and Chief Operating Officer Lewis Jordan said yesterday in an interview with The DAILY.
Aerospace Safety Technologies and AlliedSignal yesterday announced "amicable resolution" of a patent infringement case brought by ASTI in Nevada District Court in 1995. The suit alleged improper use by AlliedSignal of proprietary, patented electrothermal heating technology to remove ice from critical aircraft surfaces.
Continuing a restructuring begun two years ago to reflect its global business, Delta has promoted nine top executives to senior VP positions. Business units now concentrate on distinct markets such as the Delta Shuttle, Delta Express, Cargo and Transoceanic, Chief Executive Ron Allen said in an Oct. 28 internal memorandum. Operating units provide shared services and resources, such as inflight service and reservations, and corporate support units provide staff services, such as finance and government affairs.
The International Association of Machinists (IAM), which represents TWA's mechanics, ramp employees and passenger service agents, is trying to persuade TWA's flight attendants to call for an election to oust the current union, the Independent Federation of Flight Attendants (IFFA). IAM actions last week caused IFFA members to file suit in a St. Louis circuit court against their own president, Sherry Cooper, and the IAM for "gross disloyalty amounting to breach of contract, misappropriation of union assets and tortious interference with contract."
National Consumers League is opposing the proposed American-British Airways alliance. In a letter to President Clinton, NCL President Linda Golodner said the alliance would "create a monopoly" and "harm consumers on both sides of the Atlantic" by raising fares. Golodner warned the administration against granting the partners immunity from antitrust laws in exchange for an open skies agreement with the U.K. Citing data that show alliance control of the U.S.-U.K.
Saying it intends to "reach the merits of the case," the Illinois Appeals Court extended indefinitely its stay of the demolition of Chicago Meigs Field. The court set a briefing schedule through Dec. 6 without a schedule for oral arguments. At issue in the appeal is whether the state has the right, under the Illinois Aeronautics Act, to take control and run the lakefront airport. The Aircraft Owners and Pilots Association is campaigning to save Meigs, and AOPA President Phil Boyer said extending the stay is "a significant milestone" in the effort.
Kiwi International Air Lines signed a $5 million debtor-in-possession financing agreement with Wasatch International Corp. that will enable Kiwi to return to scheduled service (DAILY, Oct. 23). The Newark-based airline, which suspended service Oct. 15, has been operating charters since then. Kiwi will present its agreement to a bankruptcy court in Newark, N.J., today. If approved, Kiwi will unveil its plan Nov. 4 to resume scheduled service.
Like many airlines paying higher fuel prices, World Fuel Services Corp. reported record earnings for the September quarter. The company, which bills itself as "an industry leader in providing aviation fuel services to small and midsize air carriers throughout the world," said revenue from aviation operations increased 23.1% to $90.5 million.
