SITA has signed up five new carriers for its Gabriel computer reservations system. The airlines are Asia Pacific Airlines (Malaysia), Grand International Airways (Philippines), Kiwi Travel International Airlines (New Zealand), Ladeco (Chile) and Zambian Express (Zambia). The new carriers bring the number of Gabriel participants to 116. Separately, SITA said it has developed a new capability, the Market Analysis Data Service, to provide airlines with access to statistical information. The service saves up to six elements of passenger name records for 120 days.
Atlas Air posted a first quarter profit of $6.2 million, up from $50,000 in the same year-ago period, representing an 11% net profit margin. Operating profit increased four-fold to $15.4 million from $3.5 million while revenues doubled to $58.6 million from $28.9 million. Total aircraft hours increased to 11,125 from 5,812. During the quarter, Atlas took delivery of four more 747-200 freighters, bringing its fleet to 14.
In a report issued yesterday, the General Accounting Office concluded that in the aggregate fares and service levels have improved since deregulation for the consumer at communities of all sizes, but the experience of small- and medium-sized communities is mixed because of regional disparities. In testimony to the Senate Commerce Committee, John Anderson, GAO director-transportation and telecommunication, said the study concludes that communities - particularly those in the West and Southwest - have benefited greatly from new low-fare airlines.
AlliedSignal said yesterday that first quarter net income rose 14% to $225 million from $198 million the same period last year. It was the company's 17th consecutive quarter of earnings growth of 14% or more. Sales reached a record $3.8 billion, up 11% from $3.4 billion. Aerospace sales were up 14%. Operating margin rose to 9.7% from 9.2%. Lawrence Bossidy, chairman, said, "We are confident we will achieve our goal of 13% to 17% earnings growth for 1996."
Canadian Regional Airlines, a subsidiary of Canadian Airlines International, posted improvements in virtually all areas during 1995. Operating profit jumped 206.3% to C$9.8 million from C$3.2 million the previous year, which followed three consecutive years of losses. Operating profit margin increased from 1.1% to 2.9% on revenues of C$334.8 million versus expenses of C$325 million. These results compare with C$287.6 million and C$284.4 million, respectively, in 1994.
Saying a lack of consistent funding makes participation in the current essential air service program "a bad business decision," Great Lakes Aviation Chairman Douglas Voss called on Congress yesterday to ditch the existing subsidy program and replace it with an exemption from the federal ticket taxes and possible user fees, expanded exemption from passenger facility charges and greater access to slot-controlled airports.
Fairchild Aircraft said late Thursday it is in negotiations to acquire control of Dornier Luftfahrt GmbH from Daimler-Benz Aerospace. The announcement confirms reports in the German press earlier this week that San Antonio-based Fairchild was one of 12 aviation firms vying for the regional turboprop manufacturer. There was no immediate indication whether the factory would be moved from Germany to the U.S. and no additional information about the transaction. Fairchild would benefit with the addition of a 30-passenger turboprop to its product line.
Herc on floats? Stolkraft International of Queensland, Australia, is working with Lockheed Aircraft on the "marinization" of the C-130 Hercules - i.e., fitting the four-engine turboprop with floats. Although the concept sounds a bit bizarre, some airline interests believe the aircraft would offer excellent potential in the Northeast corridor, where it would serve Boston, New York, Washington and other cities at downtown waterfront locations. The aircraft, in a passenger configuration, would accommodate about 90 seats.
Virgin Atlantic Chief Executive Richard Branson is being sued by Elizabeth Hlinko, a former public relations manager for the airline, on charges of sexual harassment. The suit, filed in a Manhattan court, alleges that Branson harassed Hlinko, during one incident fondling her breasts in the presence of other employees. The suit also accuses David Tait, another Virgin Atlantic executive, of sexual harassment. Hlinko, who worked at the carrier between 1992 and July 1995, is seeking unspecified punitive and compensatory damages.
Singapore International Airlines yesterday took delivery of its first two A340-300E ultra-long-range aircraft. These are the first high gross weight versions of the A340-300 with an increased maximum takeoff weight of 275 metric tons. SIA has firm orders for 17 of the aircraft plus 20 options, making it the largest customer for the type. It will introduce the aircraft on its Bangkok, Jakarta and Melbourne routes, and later this year on its Sydney route and the ultra-long-haul Paris service.
Export-Import Bank is financing the $119 million lease of a 747-400C to Philippine Airlines. PAL's earlier lease of three Ex-Im Bank-financed 747- 400s turned the Los Angeles and San Francisco routes, where the newest aircraft will be placed, into profitable ones for the airlines, the bank said. The fourth 747-400 will make PAL "even more competitive on those routes by enabling it to provide daily nonstop flights to Manila from both Los Angeles and San Francisco on new aircraft," it said.
Saying DOT has no timeline for passenger talks with Japan, Secretary Federico Pena pledged yesterday to stand fast against calls to trade beyond-Japan rights for additional direct service. "We must respect rights in the current agreement," Pena told the Senate Appropriations subcommittee on transportation, and the administration wants to build on them. "We believe there is room for expansion in third- and fourth-freedom service and fifth," he said, holding out as a model the U.S.-Canada agreement, which has benefited carriers in both countries.
Lufthansa's traffic grew 4% last month, compared with March 1995, on a 2% increase in available seat kilometers (ASKs). The carrier flew 5.06 billion revenue passenger kilometers (RPKs) on capacity of 7.17 billion ASKs. The passenger load factor was up 1.4 percentage points to 70.6%. The airline carried 2.77 million passengers, a 1.6% improvement. For the first three months of the year, the carrier's traffic was up 1%, compared with the same period in 1995, on a 4.6% boost in capacity. The load factor fell 2.3 points to 64.3%.
Airfone users will be charged a flat rate of $15 beginning May 1 for voice, data and fax services, according to a GTE official. Mark Schneider, VP- marketing, said passengers will be able to "talk, listen to voice mail or answer their e-mail for as long as they like for only $15 per call plus tax." He said GTE research shows that many people did not use Airfone service because they did not know how long they would be on the line and feared excessive charges. The current cost is $2.50 a minute with a toll charge.
USAir is taking its Business Select seats out of the 31 737-200s that have been operating with them since February 1995, putting in 12 first-class seats instead, and is considering a total refurbishment of its entire fleet. Chairman Stephen Wolf believes that to become the airline of choice, USAir must deliver a consistent first-class service, a spokesman said. The transition will begin this fall, and while the wider, leather seats are being delivered and installed, the Business Select cabin will go to a two-and-two seating with the middle seat blocked off.
Percentage Of Passengers In Low-Cost Markets By Amount Of Discount On Average Industry Fare % Passenger Fare Premium In Low-Cost or Discount City Markets* $ Amount Percent Cincinnati 0.0 65.5 47.6 Charlotte 0.0 52.5 38.5 Minneapolis 2.9 46.2 31.5
Rolls-Royce said it has completed a 3,000-cycle test on its Trent 800 turbofan engine, a "key steppingstone in its program to win early 180- minute ETOPS [extended-range twin-engine operations] approval on the Boeing 777." The test simulated 3,000 operational flights or the equivalent of three to four years in airline service. Rolls said it expects to finish the ETOPS trials by midyear.
Hawaiian Airlines Inc. turned an operating profit of $396,000 in the first quarter, the first time since 1987 that the carrier has been in the black on an operating basis in the first quarter. The airline suffered a net loss of $582,000 for the quarter, however. The operating and net results include a one-time charge of $946,000 tied mainly to the sale of 18.2 million shares of stock - and control of the carrier - to Airline Investors Partnership L.P. The results compare with a first quarter 1995 operating loss of $7.43 million and a net loss of $8.29 million.
Top Domestic City-Pair Markets Ranked By Yield The Year 1995 Avg Psgrs Longhaul Market Yield(Cts) Miles Per Day 1 Philadelphia St Louis 29.6 811 308 2 Dallas/Fort Worth Cincinnati 28.7 815 276 3 Chicago Hartford 25.7 779 699
FlightSafety International won a one-year contract from FAA to conduct initial and recurrent training of EMB-120 (Brasilia) pilots. FlightSafety will provide Level C simulator and inflight training at its Houston facilities.
Allied Pilots Association at American has taken a look at the impact of new entrant airlines on the domestic system from a completely different perspective than that of DOT's just-released study, but it reached the same conclusion in at least one area - the major airlines are not threatened by the new carriers. DOT found that consumers saved $6 billion last year through the new entrants' lower fares, which generated an extra 47 million passengers who would not normally have flown. But APA said consumer benefits usually are short-lived.
TWA has hired Lisbeth Mack as staff VP-advertising and consumer marketing, a new position. Mack comes from British West Indies Airways, where she was VP-sales/North America, and she formerly worked for Kiwi as VP-sales and marketing. Marie Spadoni, director of advertising, will head the creative services department, when it is formed.
Top 25 Domestic City-Pair Markets Under 750 Miles 0&D Passengers The Year 1995 Short 1995 Average Haul Markets Non-Stop Passengers Rank Rank City-Pair Mileage Per Day 1 1 Chicago - New York 723 8,069 2 2 Honolulu - Kahului 100 7,679
American's tour operator, Fly AAway Vacations, is displaying information on American's World Wide Web site. The site, which provides destination data, on May 1 will start showing special bonuses and discount vacation programs that American called a good source of last-minute travel specials. Web users also can enlarge photos of hotels for closer inspection of the rooms. The Fly AAway web site address is http://www.amrcorp.com.
