U.S. National Carriers Operating and Net Profit The Year 1995 Operating Net Profit/Loss Profit/Los (000) (000) The Year 1995 Alaska $ 72,424 $ 24,784 American Trans Air 15,213 6,409 Carnival 7,008 4,474
The management of India's national carrier, Air-India, has signed a productivity-based wage agreement with its engineering labor union, Air- India Aircraft Engineers' Association, in an attempt to increase aircraft availability and dispatch reliability for improved fleet utilization. "It's definitely a step toward an era of industrial peace in the airline," an AI spokesman said. Air-India absorbed heavy costs to send aircraft abroad for maintenance checks after the engineers adopted go-slow protest tactics last year.
Lufthansa has acquired another A300-600R from Airbus, the manufacturer said yesterday. The jet will be delivered in early 1997 at the same time as a second A300-600R leased from International Lease Finance Corp.
The Airbus Industrie A319 powered by International Aero Engines V2524 turbofans completed a successful first flight Tuesday. The six-hour flight from Toulouse initiated a 200-hour test program for the aircraft-engine combination by the European Joint Aviation Authorities. The first customer for this A319 version is International Lease Finance Corp. The A319 powered by CFM International CFM56-5B engines was certificated by JAA on April 10, and Swissair is operating it on European routes.
Engine nacelle manufacturer Rohr Inc. reported sales of $203.7 million in its third fiscal quarter, down slightly from the company's $210.8 million volume in the third quarter of 1994-95. Production of nacelles for the MD- 90 helped boost the company's performance while overall sales fell because of changes in engine options selected on aircraft orders and delivery rate reductions in commercial programs, the manufacturer said.
Emirates has signed a $106.25 million financing agreement for the acquisition of the first of its seven 777-200s from Boeing. The carrier will take possession of its first 777 June 4 in Seattle. Financing for the deal was led by Citibank, Bank of Tokyo/Mitsubishi and Credit Lyonnais. Emirates also said it has lined up financing for the remaining six jets.
Aeroflot has signed an agreement with Airbus Industrie to take four A310- 300s powered by PW4000 engines. The jets will join six other European-made widebodies in the carrier's fleet.
Reno Air is urging DOT to deny Northwest's application to operate code- share service with Alaska Airlines on San Francisco-Puerto Vallarta/San Jose del Cabo routes. Noting that it has applied for San Jose-Puerto Vallarta/Los Cabos service, Reno said the code share "could practically foreclose actual competition in the Bay Area-Mexico markets," since the U.S.-Mexico markets are single designation.
Interactive Flight Technologies said yesterday it has raised $26 million in capital as 94% of the company's holders of its outstanding A warrants accepted its exercise offer. "These funds will enable us to continue to implement our expansion plans and sign up additional airlines for the installation of IFT's inflight entertainment system," said Michail Itkis, the company's chief executive. IFT claims it is the only inflight entertainment service provider that offers airlines and passenger true video on demand.
Oslo, Norway-based Braathens S.A.F.E. has leased a 737-500 from International Lease Finance Corp. The carrier will take delivery of the jet in March 1997 on an eight-year lease.
Sen. John McCain (R-Ariz.) called the Los Angeles City Council action to strike a $30 million transfer from Los Angeles Airport to the city a "significant victory" for the integrity of the aviation financial system (DAILY, May 21). McCain, chairman of the Commerce aviation subcommittee and sponsor of legislation (S.1774) against airport revenue diversion, said the almost unanimous vote "has sent a message to airports that revenue diversion must end once and for all."
American International Freight has expanded its domestic overnight air cargo service to New York Kennedy and Orlando, giving it 50 cities. Its road feeder service is being expanded to Tampa, Jacksonville, Washington, Milwaukee and Albuquerque. AIF is owned by the Kalitta Companies.
Delta and Unisys Cargo Hosting Services have signed a 10-year, $35 million contract to improve Delta's cargo business performance by processing air waybills through Unisys's global operations data center in Eagan, Minn. Unisys said its airline clients currently carry about one-third of the world's air cargo. Delta joins the Unisys Cargo Users Group, the first association of freight carriers to adopt Cargo Multinational EDI Association standards for the exchange of cargo information.
TriStar Airlines said it has added thousands of seats to those offered at the lowest possible fare after correcting a fare allocation computer program. Travel agents could not find many of the carrier's cheaper seats, including its $28 one-way fare between Los Angeles and Las Vegas. Attributing the problem to a computer glitch, TriStar released an additional 33% of its discount seat inventory.
The Animal Legal Defense Fund is mounting a campaign for tighter controls on airlines' responsibilities in transporting animals. The ALDF issued an emergency alert yesterday warning pet owners to avoid transporting animals by air during the hot summer months. Saying airlines continually show disregard for the safety of animals, the group is preparing to petition the Department of Agriculture for stricter regulations and improved conditions for animals transported by air.
Philippine Airlines is repositioning its service in the Pacific Rim, dropping its flight to Seoul, Korea, from Manila in favor of Manila-Pusan. Leisure travelers from the Osaka, Japan, region will receive two more flights to Cebu, for a total of four, continuing on to Manila. PAL said it would like more flights to Fukuoka and Tokyo, but it already is operating to the limit of service allowed under the Japan-Philippine air agreement. Starting in July, PAL will begin flights to Shanghai, operating three times weekly.
Macau, which opened its new airport last November, is becoming an important gateway to China with flights to 11 Chinese cities - Beijing, Changsha, Chongqing, Dalian, Qingdao, Shanghai, Shenyang, Wenshou, Xian, Xiamen and Yantai. Of these points, Qingdao, Wenzhou and Yantai do not receive scheduled service from Hong Kong. In April, Air Portugal and Sabena started joint service to Macau, operating weekly on a Lisbon-Brussels-Macau routing. Neither airline flies to Hong Kong.
Sabre users no longer have to call Delta to confirm bookings when using the "Claim It" inventory management tool. Lee Macenczak, Delta's director of distribution planning, said the system will help the airline reduce its distribution costs by eliminating service calls to reservations offices. Subscribers also save time because they do not need to create a copy of the booking. Other Claim It users are Canadian Airlines International, American, America West, Gulf Air, Air Canada and Virgin Atlantic.
USAir holds its annual shareholders meeting today at 9:30 a.m. at the Crystal City Marriott Hotel in Arlington, Va. Chairman and Chief Executive Stephen Wolf is not planning major announcements, an airline representative said. He will brief shareholders on the status of meetings with employees around the system.
New Aircraft Orders and Options February 1996 Last 12 Months Firm Orders Options Orders Options Carrier # Type # Type Engines Del Dates # Type # Type Garuda 3 MD-11ER - CF6-80C2 Dec 96-97 - - TWA 20 757-200 20 757-200 PW2037 Jul 96-99 - - Source: Aviation Data Services, Wichita
Zoltek Companies, Inc., has declared a two-for-one stock split, payable in the form of a 100% stock dividend. The dividend will be payable June 17 to shareholders of record of the company's common stock on June 3.
One of four founders of ValuJet sold a major chunk of his holding in the carrier on Monday, which helped push its share price down to the lowest levels in more than a year. Founder and board member Timothy Flynn sold 1.5 million shares of ValuJet common stock, the carrier said yesterday, enabling him to satisfy margin debt previously incurred. The carrier did not say if the margin debt was in ValuJet shares or another stock. While Flynn played a part in starting the airline, ValuJet said he does not have a role in the day-to-day running of the no-frills carrier.
American parent AMR Corp. has issued 12.9 million shares of common stock as part of its conversion of 6 1/8% convertible subordinated quarterly income capital securities due 2024. The debentures were called for redemption May 20. Another 1.1 million shares were issued in connection with the company's conversion of its $500 Series A cumulative convertible preferred stock, also called for redemption May 20.
The New York Air Route Traffic Control Center computer failed twice on Monday - between 6:08 p.m. and 6:32 p.m. and between 7:22 p.m. and 8:23 p.m. "Safety was not compromised during the situation," FAA said. "At no time did air traffic controllers lose radar or communication with aircraft," the agency said, adding that "there were no pilot deviations or operational errors associated with the interruptions."
Despite several turbulent years, the ingredients to sustain profitable growth at Alaska Airlines and sister carrier Horizon Air are in place, John Kelly, the carrier's chairman told shareholders at Alaska Air Group's annual meeting yesterday. "Our focus for the last couple of years has been on improving our productivity and cost structure," Kelly said. "We've made dramatic gains, and we continue to make cost control a priority, but we're also focusing on building the revenue side of the equation - strengthening our already unmatched market presence.
