Expanding transatlantic operations and paying off on 1992 profit-sharing agreements, USAir plans to increase capacity for the rest of 1996 but thinks its unit costs will continue to grow nonetheless. Even though USAir and other carriers have developed profits recently by shrinking capacity and improving yield, USAir Group estimated that the carrier's available seat miles will increase 2% in the third quarter and 7%-8% in the fourth, due mainly to transatlantic services it did not offer last year.
Emery Worldwide Airlines is seeking renewal for one year of its authority to provide long-term, wet-lease flights for Brazilian carrier Vasp on Miami-Manaus/Sao Paulo scheduled service. Emery operates one weekly roundtrip on the route for Vasp, using DC-8-73s, and expects to continue doing so for an additional year.
FAA established Sept. 3 yesterday as the deadline for aircraft operators to apply for a waiver of regulations that tighten the percentage of noisy aircraft allowed in fleets as of Dec. 31. At yearend, operators of Stage 2 airplanes must reduce the number of such aircraft by 50% from their base level or achieve a fleet mix of 65% Stage 3 aircraft. For new entrants, the Stage 3 percentage is 50%.
Consumers are being told to grab airline tickets this week to avoid paying an extra 10% now that President Clinton has signed into law legislation that reimposes the 10% ticket tax and other aviation excise taxes. The tax takes effect Aug. 27 but does not apply to tickets purchased before that date for travel later (DAILY, Aug. 20). Consumers still will feel a pinch, however, because most carriers increased their fares last week by 10%. Still, the American Society of Travel Agents is recommending that the public buy now, especially for travel during the holidays.
Canada's aerospace industry will surpass Germany's and Japan's to become the world's fourth largest by 2000, a study by Deloitte Touche Consulting Group predicts. Since 1985, Canada's aerospace sector has grown 150%, nearly four times faster than that of the U.K., the next best performer, the consulting group says.
Sky Games International has filed an exemption for non-issuer transactions in California, and the company's common stock is now officially eligible for trading in the state under securities laws. Sky Games is considering filings in other states. Its inflight entertainment software is developed and marketed through Interactive Entertainment Ltd. (IEL), an 80%-owned joint venture with Harrah's Entertainment.
Airbus and Fokker Aircraft Operating Costs First Quarter 1996 Dollars Per Block Hours A320-100/200 America West Northwest United Average Crew Cost $351 $694 $704 $627 Fuel&Oil 479 467 483 474 Rentals 796 395 661 555
Indian carrier Jet Airways is operating scheduled service between Delhi and Calcutta twice a day with 737-400 aircraft. The carrier said the new service, started this month, completes a "triangle" of service linking Delhi, Mumbai and Calcutta. Jet Airways operates 11 737s and expects to take delivery of four more by May. It said it wants to operate as many as 35 aircraft by early 1998 - another eight 737s and perhaps 12 smaller aircraft to be used by two feeder airlines in West and Northeast India.
Mesa Air Group announced yesterday it is buying 16 Canadair Regional Jet aircraft valued at $320 million and taking options on 16 more (DAILY, Aug. 2). Deliveries of the 50-passenger jet transports will begin early next year. Bombardier Regional Aircraft Division President Pierre Lortie said Mesa is ordering the Series 200 LR version of the aircraft, powered by General Electric CF34-3B1 engines. He said orders now total 166, with 126 already delivered and 40 firm, backlogged orders. Mesa Air Group, Farmington, N.M., serves 166 destinations in the U.S.
Delta, citing the absence of opposition by other U.S. carriers, is urging speedy approval of its application to transfer its authority to operate between New York/Newark and Ottawa/Montreal to code-share partner Comair. Comair proposes beginning Oct. 1 five daily nonstop roundtrip flights, using Canadair RJ50 aircraft, configured for 50 seats in a one-class layout. Comair intends to operate the service under the Delta Connection code, with Delta reservations agents continuing to take reservations.
TWA customers can make reservations on Trans World Access, the carrier's newly launched online and electronic ticketing product accessed through CompuServe and Worldspan. Users can book directly with TWA through their personal computer. Electronic tickets are available only in select markets. TWA said a coupling to its Internet site also provides access to TWA's home page. Users who make reservations receive 500 miles in the TWA Frequent Flight Bonus Program. TWA is offering six ticket delivery options, including free delivery by Federal Express.
ValuJet will operate proving runs today and tomorrow, one of the last requirements for restarting operations, which it says still is possible by Aug. 23, its target date. A spokesman said the carrier submitted "virtually everything" that was required to the FAA, and conducted some "practice flights" on Friday in preparation for the proving runs that are expected to ensure crew compliance with FAA regulations. Employees are being recalled for operations as early as Friday.
FAA is revising its widely unpopular proposal on crew member flight and duty time limitations and rest requirements, according to Rep. Pat Williams (D-Mont.). Williams told his state's DOT that FAA told him it "will soon be releasing a new proposed rule for discussions - one which reflects many of the concerns" directed at the original notice of proposed rulemaking.
Hudson General Corp. reported net earnings of $10.5 million or $8.87 per share on sales of $157.7 million for its fiscal 1995-96, which ended June 30. For the previous year, the company netted $4.6 million or $3.69 per share on $135.5 million in sales. The company is part of a land development joint venture in Hawaii on which it lost $3 million before taxes in 1995-96, versus $2.7 million the year before. Since June 1, its aviation services have been provided by its 74%-owned subsidiary, Hudson General LLC.
Ashurst Technology, Hamilton, Bermuda, said yesterday it has signed a service agreement with McArtor Enterprises of Memphis, Tenn., a private consulting and investment company headed by Allan McArtor, former FAA administrator. McArtor will work with Ashurst to introduce what the company called its "advanced materials and technologies to the North American aerospace and commercial aircraft industries."
UPS yesterday launched UPS OnLine Tracking Software, describing it as the "only software in the industry that provides an image of the receiver's signature and allows customers to track up to 100 packages at a time." UPS said customers can track shipments using their own reference number, such as an invoice or purchase order, instead of a UPS tracking number, and can learn the status of an entire shipment by tracking only one of its packages. "We asked our customers what they wanted and then we built it," the company said.
Delta has donated more than 530 tickets to the Paralympic Games in Atlanta to local charities that will benefit those who are disabled or disadvantaged. Delta, in cooperation with the South Fulton Medical Center, is underwriting transportation for 400 children and 60 adults to attend the games, and the hometown carrier also has provided more than 400 volunteers to help at the 10-day event and assist visitors at Hartsfield Airport.
Security consulting firm, The Lee Group, has scheduled seminars at Washington Dulles Airport keyed to threats against aviation and other concerns of business travelers. The group is headed by Ed Lee, former associate director of security at the State Department. Seminars costing $150 per person will be held Nov. 12, 9 a.m.-noon, on safe and successful foreign travel; Nov. 12, 1 p.m.-4:30 p.m., on protecting laptop computers and proprietary information; Nov. 14, 9 a.m.-noon, on safe and successful U.S. travel, and Nov.
President Clinton signs into law reinstatement of the aviation excise taxes today, just a few days after the aviation trust fund surplus dipped below $2 billion. According to the American Association of Airport Executives Web page, the estimated uncommitted balance stood at $1,942,239,431.26 as of 4:51 p.m. yesterday. The trust fund will continue to lose about $16 million a day until collections resume - seven days after Clinton's signature - and proceeds are remitted.
In a major development in India's civil aviation sector, a panel of government-appointed aviation experts recommended that the government dilute its equity stake in domestic carrier Indian Airlines to 49% within two years to ensure IA's survival, civil aviation ministry officials said yesterday.
Alaska's application for enhanced cargo operations at Alaskan airports has sparked mixed reviews, mainly negative from U.S. carriers and positive from Asian airlines. The state and its major airports have asked DOT to amend the Foreign Air Carrier Permit and exemption authority of all foreign carriers authorized to serve the U.S. to enable them to engage in expanded cargo transfer activities at Alaska's international airports (DAILY, July 30).
Southwest Airlines has begun upgrading the flight data recorders on its fleet of 737s ahead of the timetable suggested by the FAA. The carrier currently operates 237 Boeing 737 aircraft and will have 241 by yearend. The enhanced recorders are not needed in aircraft manufactured after 1991, which in Southwest's case total 90. Most of Southwest's upgrades will be completed by the end of 1998, with "a half dozen or so" left for 1999, a spokeswoman said. FAA proposed to require airlines to begin the modifications no later than 1998 and complete them sometime after 2000.
The Carlyle Group said yesterday it will buy Textron's Aerostructures Division for $180 million in cash and a subordinated note. The sale, which is not expected to result in a book gain or loss to Textron, is targeted for completion in September, Carlyle Managing Director William Conway said. The Aerostructures unit had 1996 revenues of $190 million producing wings and wing components for business, commercial and military aircraft.
Most major airlines increased domestic ticket prices by 10% last week, excluding sale fares, as the 10% federal ticket tax is expected to be reinstated today by President Clinton as part of the minimum wage package (H.R. 3448). The excise tax, as well as the $6 international departure tax and the 6.25% cargo waybill tax expired Dec. 31 as a result of the federal budget impasse. If signed into law today, the tax will go into effect Aug. 27.
Boeing 737 Systemwide Aircraft Utilization Per Day First Quarter 1996 B737-300 America West Continental Delta Number of Aircraft Operated 40 66 13 Total Fleet Operations Departures 262 287 69 Block Hours 471 678 119
