U.K. Office of Fair Trading seems likely to issue its report on the proposed American-British Airways alliance by the end of the month, said industry sources. They suggest that some of the key carriers already have received advance word of the decision.
Frontier reported a net profit of $1.3 million for its first fiscal quarter ended June 30, compared with a net loss of $1.9 million in the same 1995 period. Revenues rose 118% to $28.1 million from $12.9 million. The company also posted a profit in the March quarter, its first profitable quarter since beginning operations in 1994. President Sam Addoms said Frontier is "continuing to enjoy the benefits of overhauling our route system to serve Denver's most popular destinations rather than filling the flight voids in secondary markets."
President Clinton has received from Congress the legislation (H.R.3448) that would reinstate aviation taxes (DAILY, Aug. 6), and he must act on the measure on or before Aug. 20. Tax collections will begin seven days after he signs the bill into law.
America West's July traffic rose 7.6% to 1.4 billion revenue passenger miles from July 1995. Capacity was up 9.7% to 1.9 billion available seat miles for a load factor decline to 72.9% from 74.3%. "America West filled nearly 73% of its seats in July despite putting almost 10% more capacity in the marketplace," said William Franke, chairman. "Bookings for the third quarter and beyond continue to be strong, reflecting the strength of the carrier's low-fare, full-service market niche."
Continental will begin nonstop service to Chicago Midway Oct. 1 and add a seventh daily flight to O'Hare Oct. 27, both from Newark. It plans to operate three daily flights to Midway with 737s, increasing to four on Oct. 27.
- In Federal Register dated Aug. 5...Issued an airworthiness directive on certain Fokker F28 aircraft requiring preload adjustments of the main landing gear downlock actuator...Proposed to amend the requirements for landing gear braking on transport aircraft.
Labor leaders and a bipartisan group of members of Congress have scheduled a news conference Aug. 20 at New York Kennedy Airport to keep up pressure on the Clinton administration to hire more former PATCO controllers. Organizers say FAA's plan to hire 500 controllers next year is not enough. "Cost-effectiveness and affordability will have to give way to the safety of the flying public," one official said.
Carnival Air Lines is pressing DOT to deny Pan Am's bid for an exemption to advertise, list schedules, accept reservations and payment, and issue tickets for proposed services before receiving its certificate. Before such an exemption is granted, "a carrier is expected to be on the verge of inaugurating revenue service, with all material issues resolved," said Carnival.
Outside directors of FedEx are paid an $8,000 quarterly retainer, $2,000 for each board meeting they attend and $1,000 for each committee meeting. They also have a retirement program and an option under the company's stock incentive plan to buy 1,000 shares of common stock on each of five consecutive annual meeting dates as of Sept. 26, 1994. Committee chairmen are paid an extra $6,250 a year.
United anticipates up to $5 million per year in revenue as the eventual value of its selection as Nike's preferred carrier. The contract initially covers Nike employee travel originating in the U.S. and The Netherlands but it could be extended to other countries in the future. The main offices for Nike are in Portland and Amsterdam.
Western Pacific Airlines reported a 146% traffic increase in July, to nearly 153 million revenue passenger miles from 62.1 million in July 1995. The carrier's capacity rose 202%, however, to 259.1 million available seat miles from 85.8 million. The load factor fell 18% to 59.1%. WestPac carried more passengers in July, 176,052, than in any month in its 15 months of operations. In July 1995, the carrier was operating to nine cities with six airplanes. It now has 15 aircraft and serves 20 cities from Colorado Springs.
The ranking Democrat on the House Transportation aviation subcommittee and three other Democrats on the committee are asking FAA to help draft legislation to tighten up license requirements for airframe and powerplant mechanics. "In light of preliminary investigation results in the May 11, 1996, ValuJet crash, suggesting that improperly trained mechanics may have contributed significantly to this tragedy, we fee that a serious review of A&P licensing requirements is needed," Reps.
AirTran Airways' July traffic climbed 143% to 83.2 million revenue passenger miles from 34.2 million, while capacity rose 194% to 139.1 million available seat miles from 47.3 million. The load factor dropped 12.4 points to 59.8%. The carrier said its traffic was affected by negative publicity surrounding the entire airline industry, as well as its own operational difficulties in June.
The Association of Flight Attendants has asked DOT to hold a public hearing to assess the safety changes implemented at ValuJet before the carrier is cleared by FAA to resume service. AFA told DOT in July that Lewis Jordan, chief executive, and Robert Priddy, chief operating officer, should resign because "they do not have the disposition to comply with DOT regulations" (DAILY, July 24).
Delta Express, Delta's low-fare initiative, will begin operating Oct. 1 to 10 points in the Midwest and Northeast from five Florida cities, using Orlando as a focal point. Delta Express will fly to Nashville, Louisville, Indianapolis, Columbus, Washington Dulles, Philadelphia, Newark, Hartford, Boston and Providence. The markets include six cities served by Southwest, among them Providence, which Southwest will launch late in October, and Washington, which Delta Express will serve from Dulles and Southwest from Baltimore/Washington.
Air Wisconsin posted an 8.5% increase in revenue passenger miles during July over July 1995. Available seat miles declined 3.9%, producing a 7.4-point increase in the United Express carrier's load factor to 64.4%. For the year to date, traffic was up 12.9% and capacity 13.5%. July 1996 July 1995 7 Months 1996 7 Months 1995 RPMs 49,961,946 46,029,405 298,432,140 264,370,556 ASMs 77,596,556 80,761,236 554,446,644 488,396,930
Pratt&Whitney's PW4090 engine has begun its flight test program on a Boeing 777. At 90,000 pounds thrust, it is the most powerful engine built by the company. It is scheduled to enter service next March.
Mesa Air Group Chief Executive Larry Risley is being snubbed by his major nemesis, Sen. Ben (Nighthorse) Campbell (R-Colo.). Campbell, who has generously granted interviews to reporters about problems with Mesa's Colorado operations, has refused to accept Risley's phone calls to discuss the issues, claiming Risley did not return a letter 18 months ago regarding his concerns. "Calls to your office were stopped at your assistant stating, 'the senator will not discuss the matter over the phone,'" he said in a letter obtained by The DAILY...
New Jet Aircraft Deliveries May 1996 Last 12 Months Carrier # Type Engines Delivery Air Berlin 1 737-400 CFM56-3C1 - Air Nippon 1 737-500 CFM56-3C1 2 Alaska Airlines 1 MD-83 JT8D-219D 2 All Nippon 1 777-200A PW4084A 2
New Aircraft Orders and Options, May 1996 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del. Date # Type # Type Airtours Intl 1 757-200 - RB211-535E4 Mar97 - - Braathens* 1 737-500 - CFM56-3C1 Mar97 - - China Arls 4 747-400 - PW4056 97 2 A300-600R -
Wilcox Electric, shrinking itself in reaction to FAA's termination during the spring of its Wide Area Augmentation System contract, accepted voluntary departures from 130-150 employees in June and has laid off about 30 people since then. A company source said this completes Wilcox's adjustment to the loss of WAAS, which it thought originally would double its size.
Shares of the three publicly held Delta Connection carriers have been generally down during the last 52-week period, ended Aug. 2, with one exception. Comair stock was up 45.1% to $24.13 per share from $16.63 in the week of Aug. 11, 1995. Shares of Atlantic Southeast and SkyWest both fell, however. ASA was down 11.3% from $27 to 23.94, while SkyWest declined 27.3% from $22.88 to $16.63. Both ASA and Comair peaked on June 18 at $29.33 and $30.63, respectively. SkyWest topped out at $25.33 on Sept. 7, 1995.
