Jonathan Ornstein, the former president of Continental Express, is introducing Europe to his irrepressible ways. The new chief executive of Virgin Express, the Brussels-based low-cost 737 operator, is already expanding - Brussels-Copenhagen Sept. 5. with a $93 fare, half the current lowest fare. The company says some tickets may be as much as 80% cheaper, and repeats the motto of low-cost, low-fare U.S. carriers that it is not competing with other airlines but is generating a new group of air travelers that would have used alternative modes or not traveled at all.
United Express affiliate Atlantic Coast Airlines' second quarter income jumped 65.3% to a record $8.5 million, or 94 cents per share, from $5.1 million, or 52 cents per share, in the comparable 1995 quarter, the regional carrier announced. The airline's quarterly earnings accounted for more than 91% of the $9.3 million, or $1.04 per share, it posted in net earnings for the first six months of the year. Total revenue for the first quarter jumped 21.6% to 50.4 million from 41.4 million in second quarter 1995.
Mountain Air Express, the new regional feeder being launched by Colorado Springs-based Western Pacific, has not announced its aircraft selection. It is advertising in a Seattle newspaper, however, to fill air carrier positions, including directors of operations, maintenance, quality assurance and customer service as well as chief pilot, instructor pilots and check airmen. The ad said "Dornier 328 experience preferred." The DAILY understands the new carrier will order 12 plus 12 options with four deliveries this year and the remaining eight in 1997.
Officials from the White House and several cabinet agencies reacted yesterday to the fatal crash of a TWA 747-100 late Wednesday in the Atlantic Ocean off Long Island, reflecting concerns that it might have been caused by a bomb. The disaster, in which all 228 people aboard were killed, still was being termed an accident yesterday, but the aircraft experienced what witnesses described as a massive explosion and fell in pieces into the ocean.
Atlantic Southeast flew nearly 80 million revenue passenger miles last month, a 13% increase from June 1995. Capacity grew more slowly - 4.9% to 149.9 million available seat miles from 142.9 million in the comparable month one year ago. Load factor rose 4.9 points to 53.4% from 49.5%. Enplanements rose 16.9% to 331,947 from 283,966.
Fourteen of the nation's largest regional airlines averaged an increase in traffic of 16.3%, as measured by revenue passenger miles. Capacity for the same carriers, as measured in available seat miles, increased an average of 12.5%. Rapidly expanding Gulfstream International Airlines continued to lead all carriers in terms of percentage growth. RPMs were up 99.2% in June, but that figure fell short of a 111.8% jump in ASMs. At the other end of the spectrum was Skyway Airlines, the Midwest Express subsidiary. Its traffic was down 6.2% while capacity dipped 13%.
MD-95 development costs ate into McDonnell Douglas's profits and a buildup of its jetliner inventory hurt its cash flow, but improvements in its military business enabled the company to turn in an 11% improvement in second quarter net earnings yesterday. McDonnell Douglas earned $188 million during the quarter even though sales slumped 17% to $3.26 billion. Overall sales were off by 11% - and commercial sales by more than 50% - for the first half.
U.S. Major Carriers Unit Revenues and Expenses By Region, First Quarter 1996 Operating Operating Operating Revenues Expenses Profit/Loss Yield per ASM per ASM per ASM per RPM (cents) (cents) (cents) (cents) Alaska 8.12 8.22 -0.1 11.08
Northwest and KLM have developed guidelines for online ticket distribution that include a 5% commission structure for "intermediaries" who make online bookings. Northwest is the first U.S. airline to issue a policy on commissions for bookings on the Internet and other online services. The announcement angered the American Society of Travel Agents, which said the policy raises more questions than it answers on how travel providers are to be compensated. ASTA and Northwest have scheduled a meeting Aug. 20 to discuss the implications of the Internet policies.
Transportation Secretary Federico Pena ran into criticism in Congress this week over the administration's plan to use an aviation tax to aid college students, his visits to aviation accident sites and his extemporaneous comments on airline safety. Sens. Ted Stevens (R-Alaska) and John McCain (R-Ariz.) put Pena on the defensive over the Clinton administration's plan to raise the international departure tax to $16 from $10 and use $6 of the increase to help offset finance aid to college students (DAILY, June 5). Sen.
Public and private aviation interests intend to establish a helicopter flight training center in Taiwan, according to an official of Taiwan's government-backed Committee for Aviation and Space Industry Development. CASID's deputy office director, Tang Feng, said the committee will coordinate sources from the Taiwanese military, the Civil Aeronautics Administration and private industry in setting up the center, which also will provide training in helicopter maintenance.
Reno Air posted record second quarter results yesterday with a net profit of $3.27 million, or $0.28 per share on a fully diluted basis. That compares with a profit of $331,775 for second quarter 1995, or $0.03 per share. Operating revenues jumped 48% to $90.92 million compared with $61.43 million in second quarter 1995. The carrier's operating income rose to $3.63 million for the quarter, up from $1.68 million in second quarter 1995.
DOT Secretary Federico Pena, FAA Administrator David Hinson and former DOT Inspector General Mary Schiavo will be featured on Aviation News Today this week, in highlights of the Senate Commerce Committee hearing on the ValuJet crash. This week's edition of Aviation News Today will air Sunday from 12:30 to 1 a.m. and from 1:30 to 2 p.m. on NewsChannel 8 in Washington.
Atlas Air applied to DOT for renewal of its authority to wet-lease an aircraft on a long-term basis to Lufthansa Cargo Airlines. Under the terms of the agreement, Atlas has been providing wet-lease Boeing 747 freighter service for LCA between Germany and Atlanta, Chicago, Dallas/Fort Worth and/or Miami, and beyond.
A National Research Council panel has recommended that FAA undertake programs to alleviate concerns the traveling public may have over new technologies for passenger security systems. A recent NRC report funded by FAA examines various issues surrounding new technologies, including chemical trace-detection and imaging. It said FAA needs to consider necessity, health, privacy, legal implications and costs as it moves toward implementing new screening methods.
Taiwan and St. Lucia signed a bilateral agreement Wednesday that permits each side to designate one or more airlines to conduct service on direct routes between them. Travel agents in Taipei say flights between the two areas are unlikely any time soon, however, since few Taiwanese currently view the Caribbean as a high priority for travel. The agents say the signing was carried out mainly for political reasons - the government in Taipei considers any government-to-government agreement to be a major success because of Beijing's efforts to isolate Taiwan politically.
Express Airlines I for the first time has published its monthly traffic figures on the PRNewswire, leading to speculation that the Atlanta-based company is seeking to embellish its image as negotiations with senior partner Northwest toward a new marketing agreement continue. The existing agreement - to feed both the Memphis and Minneapolis hubs - expires next spring. Express reported June traffic was up 17.5% to 40.3 million revenue passenger miles, while capacity was down 1% to 69.4 million available seat miles. Enplanements totaled 166,149, up 13.2%.
Alaska Air Group's Horizon Air subsidiary posted an operating income of $2.7 million for the quarter ended June 30, a 92.9% increase from the same quarter one year ago, Alaska Air Group reported. Operating revenues rose 9.3% to $76.7 million from 70.2 million in the 1995 period. The parent reported a net income of $18 million, or $1.24 per share, on operating revenues of $416.7 million and an operating income of $39.7 million (See related story below) 2nd Qtr 1996 2nd Qtr 1995 6 Mths 1996 6 Mths 1995
United asked DOT for an exemption to offer services between points in the U.S. and Baku, Azerbaijan, and Ashkhabad, Turkmenistan, and to integrate these services with its other route authorizations. The carrier proposes to offer the service via Frankfurt under its code-share pact with Lufthansa. Lufthansa requested authority to hold out United's code on Lufthansa's flights between points in Germany and Baku and Ashkhabad. The services will begin as soon as government approvals have been received, said United. (Docket OST 96-1560)
Cathay Pacific has purchased a cargo yield management system from Sabre Decision Technologies and expects to improve its revenues by 1% to 4% per year. The first phase of the new system is scheduled to be operational by September and the second by the end of 1998.
U.S. National Carriers Traffic June, 6 Months 1996 June June % 1996 1995 Change American Trans Air Revenue Passenger Miles (000) 770,338 718,942 7.1 Available Seat Miles (000) 1,178,586 1,007,834 16.9 Load Factor (%) 65.4 71.3
U.S. and Colombian negotiators were at loggerheads yesterday as the sides continued talks for a third day in Washington. U.S. officials were trying to end the talks without prompting Colombia to renounce its bilateral with the U.S.
Cincinnati- and Orlando-based Comair flew 134.7 million revenue passenger miles in June, a 24.5% increase from June 1995. Capacity increased more slowly - 15.3% to 221.3 million from 191.9 million - allowing the load factor to rise 4.5 percentage points to 60.9% from 56.4% in the prior period. The number of passengers boarded rose 20.4% to 413,389 from 343,286.
Objections to the proposed British Airways-American alliance is "predictable, meritless and shortsighted," according to American. "It is clear that the objections are based on an intense desire by other carriers to deny American and BA the benefits of the alliances almost all of our opponents already enjoy," said Arnold Grossman, American VP, international planning. Noting that the deal is contingent on a U.S.-U.K.
Aero Personal, a Mexican air taxi operator of executive aircraft, applied to DOT for an exemption to provide charter passenger service with small aircraft between Mexico and the U.S. Aero Personal also requested stopover privileges and relief from the requirement to obtain advance approval for each Mexico-U.S. flight. The carrier estimated that it will operate 35 roundtrips annually between Mexico and the U.S. with an average of two to three passengers per flight. Half of the transborder trips are expected to serve more than one destination in the U.S.
