Southwest's second quarter net income jumped 42.9% to $85.3 million, skyrocketing beyond record profits of $59.7 million posted in 1995. Operating income was up 37.5% to $142.2 million. Operating revenues rose to $910.3 million from $738.2 million and operating expenses to $768.1 million from $634.8 million. The carrier's unit costs were up in the second quarter, driven largely by an increase in the price of jet fuel and the implementation of the jet fuel tax, which added $8 million to expenses. Unit costs are expected to continue rising in the third quarter.
Express Airlines I, which published its traffic figures last week for the first time on the PRNewswire, enplaned nearly 20% more passengers for 1996 through June - 865,318 - than in the same 1995 period, and advance bookings are strong, Chairman Michael Brady said. It has been speculated that the carrier is burnishing its image as negotiations with senior partner Northwest toward a new marketing agreement continue (DAILY, July 19).
Air Malta has ordered three RJ85s to be operated by the carrier's new Italian airline venture AZZURRAair, Aero International (Regional) announced (DAILY, July 12). AZZURRAair, based in Bergamo Airport, Milan, willl take delivery of the first two aircraft in November and December and begin services shortly thereafter to Cologne, Geneva, Rome and Zurich. The third aircraft will be delivered in April 1997.
Northwest Airlink affiliate Mesaba Holdings earned a record net income of $3 million, or 23 cents per share, for its fiscal first quarter, ended June 30. The figure was 113.1% higher than the net for the comparable quarter last year, $1.4 million, or 14 cents per share. Operating revenues dropped 5% to 42.4 million from $44.6 million. Results for the 1995 quarter, however, included the operations of the company's jet carrier subsidiary, Airtran Airways, which was spun off to shareholders in September 1995.
Users of USAir's World Wide Web site can sign up for weekly electronic notifications of discounted "E-Savers" fares. Every Wednesday, registrants will receive a list of markets in which USAir discounts travel that starts the following Saturday with a return on the next Sunday, Monday or Tuesday. The fares are being offered initially only to Boston, Philadelphia and Pittsburgh, but USAir will expand them to other markets later.
The Transport Repair and Maintenance Division of BFGoodrich Aerospace said it will perform heavy maintenance checks on seven Frontier 737s from September through February. Tramco says it is the largest independent repair station in North America, working on more than 350 aircraft per year at its facility in Everett, Wash.
Pan Am has applied for an exemption to advertise, list schedules, accept reservations, accept payment and issue tickets for proposed services before it receives its certificate. The carrier asked that the exemption be granted at the same time as a show cause order approving its certificate, and that it be made effective on that date. "With the substantial expenses that it is incurring...Pan Am must start now with the initial promotional and selling efforts to attract traffic to its beginning services," the would-be carrier said.
Rep. Jim Oberstar (D-Minn.), ranking member of the House Transportation and Infrastructure Committee, will discuss aviation security and FAA reauthorization in an interview on Aviation News Today, to be broadcast Sunday from 12:30 a.m. to 1 a.m. and 1:30 p.m. to 2 p.m. on Washington NewsChannel 8.
FAA and Wilcox have agreed on a means to resolve the protest the company lodged after the agency terminated its $475 million Wide Area Augmentation System contract last spring (DAILY, April 29). The protest, the first under FAA's new acquisition rules, will be watched closely by industry. The Office of Dispute Resolution will select a third party, perhaps as early as today, to be a special master and make recommendations on the disposition of the protest.
U.S. Major Carriers Productivity Measures In Revenues and Expenses Per Employee First Quarter 1996 in Dollars Total Total Operating Operating Revenues Expenses Airline (000) (000) Alaska 284,364 287,617 America West 416,097 381,779
Continental will be the first U.S. airline customer for the next- generation 737-800 derivative under the carrier's long-awaited agreement with Boeing to restructure its 1993 order of 43 aircraft. As the basis for a new five-year flexible growth plan, Continental will take on many more 737s in an attempt to enhance profitability and drop acquisition of 767s, an aircraft that does not now fit into Continental's long-term growth plans (DAILY, June 12).
Midwest Express's three newly ordered DC-9-32s will be delivered in the second, third and fourth quarters of 1997 and satisfy the carrier's jet aircraft expansion needs through the end of that year, according to Midwest Express Holdings Chief Executive Timothy Hoeksema. The company acquired two of the DC-9s and agreed to buy the third, and all three "are in excellent condition - well maintained and very low cycle," Hoeksema said.
Saab Aircraft is quietly touring a number of North American regional airlines with a Saab 2000 wet-leased from Swiss regional Crossair, the launch customer for the 50-passenger high-speed turboprop. The tour has been more focused than the first sales tour two years ago, targeting those carriers with large fleets of turboprops due for replacement in the not too distant future, carriers that have been eyeing regional jets with that in mind. The tour also is targeting carriers that have short-field and hot- and-high requirements that cannot be filled with a jet.
Dornier has been working for about two years on a turbofan-powered, 50- passenger stretch of the Do 328, The DAILY has learned (DAILY, July 19). According to sources familiar with the program, such an aircraft could use either the GE CF34 or the Allison AE3007. A larger wing would be required, but use of a turbofan would eliminate the need to move the nacelles outward on the wing for propeller clearance and would not require a larger rudder. The aircraft would have about the same field performance and fuel burn as a turboprop and cruise at around 380 knots.
Only three of 15 regional airlines reported that load factors in June fell below 50%. Four members of the sampling topped 60%. The 15 carriers averaged 54.7%, compared with 53.2% in June 1995. United Express Air Wisconsin topped the sampling at 64%, up from 61.5% in June 1995.
Atlas Air reported yesterday that its net earnings for the June quarter jumped to $10 million from $3.9 million during the same quarter last year. Operating profit more than doubled to $22.7 million from $10 million. Due to a doubling in fleet size, revenues increased 89% to $72.6 million, from $38.4 million. Atlas said it has signed Fast Air of Chile as a new customer. Fast Air is an all-cargo airline that owns part of LanChile.
AirTran Airways has reduced fares to $50 one way for travel between Orlando and five points - Allentown, Pa.; Akron-Canton, Cincinnati and Dayton, Ohio, and Norfolk, Va. Tickets must be purchased by Aug. 7 for travel Aug. 19 through Oct. 31. Last week, the carrier announced similar fares between Orlando and other cities (DAILY, July 22).
Continental's flight attendants have ratified a 3.5-year contract agreement that boosts their pay and provides for productivity improvements. The Machinists union, which represents the carrier' 5,600 attendants, said the contract is retroactive to June 24. Neither the IAM nor Continental was able to provide a vote count yesterday. The union previously told The DAILY the contract raises pay 13.5% in the first year, 6% in the second and 6% in the third (DAILY, July 12).
Fifty-seven international airlines are flying the North Atlantic this summer, up from 52 last summer, according to Global Aviation Associates. On a typical peak-season day, 326 aircraft carrying 75,000 passengers leave the U.S. and Canada for Europe and the Middle East. Code-shared flights also continue to grow - 526 of 2,257 transatlantic sectors display more than one code this year, up from 417 of 2,130 last year.
Midwest Express's Skyway Airlines regional subsidiary incurred an 11.4% increase in cost per available seat mile to 21.1 cents in the quarter ended June 30, 1996, compared with 19 cents in the same 1995 period, Midwest Express reported. Revenue yield failed to keep pace, rising 6.1% to 52.4 cents per RPM from 49.4 cents. Midwest Express published quarterly operating statistics for the June quarter this week for both the parent and regional subsidiary. 3 Months Ended 3 Months Ended
McDonnell Douglas Chairman Harry Stonecipher said yesterday he still isn't worried that struggling ValuJet remains the only customer for his company's in-development MD-95 100-seater.Airlines have little incentive to order aircraft until they will lose delivery positions by delaying, he commented to The DAILY.The MD-95 will reach that point in mid-1997.
Private Spanish carrier Air Nostrum is considering purchasing three jet aircraft in 1997 to expand its European route network, Managing Director Carlos Bertomeu said in a recent interview in the Spanish daily Gaceta de los Negocios. Air Nostrum, which operates seven leased Fokker 50s, will take delivery of two more later this year.
Canadian Airlines Corp. lost slightly less money in the second quarter than it did during the same period of 1995, $23.8 million versus $25.6 million. For the first six months of the year, Canadian lost $134.7 million, compared with $164.2 million in 1995. The carrier said its results were held down by a spike in fuel prices, a weaker Japanese yen and lower fares brought on mainly by new entrants. Network and product improvements made during the past year offset the negative factors somewhat, it said, and cash on hand increased to $111.9 million from $19.8 million.
DOT has extended United Express opertor Great Lakes Aviation service obligation at Sterling/Rock Falls and Mt. Vernon, Ill., Ironwood, Mich.; Ashland, Wis., and Norfolk. Neb. through Sept. 5, 1996, or until replacement service begins. (Dockets OST-96-1247, OST-96-1265, OST-96-1266 and OST-96-1267)
American has discounted international fares 15%-30% off the lowest excursion rate for fall travel and extended the 35%-40%-off domestic fare sale through Aug. 5. Tickets may be purchased through July 28 for the deepest discount and through Aug. 5 for 10%-20% off the regular fare. Travel dates vary by country but generally run from early September through mid-December for Europe and mid-August to mid-November for Latin America and the Caribbean. The fares require a seven-day advance purchase.
