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Aviation History
1981
1981 - 0060.PDF
54 FUGHT International, 10 January 1981 ATA predicts better 1981 for US carriers THIS YEAR will be better than I960 for the US airline industry because a moderate upturn in the American economy is anticipated, cost increases are expected to be smaller than those last year, and airline productivity will rise, says Air Transport Association senior vice-president for economics and finance, George James. But with a projected 2 per cent profit margin "we are only about one-third where we should be," he adds. "At best 1981 will not be as bad as 1980, but not nearly as good as the long-term average." James says the carriers could earn $700 million to $750 million operating profit because "operating revenues next year are going to rise a little faster than the operating expenses." The revenues should increase by about 17 per cent against a 14 per cent rise in expenses, he estimates, while revenue passenger miles could vary by plus or minus 2 per cent on 1979. Allowance for fuel price increase is 20 to 30 per cent in James' calcula tions, and he adds that with the Civil Aeronautics Board's greater flexibility on fare rises the airlines will be better placed to keep pace with costs. Last year is expected to prove the worst ever for operating losses, with a 0-5 per cent "negative profit mar gin." However, the airlines might still report an overall profit after taking into account depreciation, convertible debentures, aircraft sales and invest ment tax credits. James' main worry is that the car riers need to show an operating pro fit of 6 per cent (against the predicted 2 per cent) to finance re-equipment— even at the $13,000 million level to which they are already committed over the period 1980-1984. He main tains that this level is less than ideal —it should be $22,000 million to meet the carriers' needs. The profit re quired to carry through the present programme is an annual average of $1,000 million for each of the five years. James says the airlines will have to make a profit of more than $11,000 million over the next four years to meet the higher target. Short hauls ... • Pacific Southwest Airlines has begun DC-9 Super 80 services* thus becoming the first US airline to operate the type. PSA plans to have 13 DC-9 Super 80s in service by the end of 1981, having ordered 20 with a further six on option. O The Federal Aviation Administra tion is streamlining air traffic control procedures in the US "Northeast Cor ridor" to help conserve aviation fuel. The FAA plan entails steeper climb- outs and higher cruise altitudes. Some speed restrictions will be modified, route changes will be made to reduce traffic bottlenecks, and circuitous routeing will be eliminated wherever possible. FAA estimates expect the new procedures to save four million US gallons of aviation fuel annually. The changes will be introduced in the New York ATC area during January, when a new Terminal Radar Approach Control Centre comes into operation. • New Belgian charter carrier Trans- jet has begun freight and VIP charter operations from Brussels using an ex- Lufthansa Boeing 727-030C. The Zaventem-based airline holds a full Short hauls ... freight charter licence and a limited passenger-carrying licence allowing 40 seats a flight. Transjet is offering VIP charters to European and Middle East destinations under the limited licence. • Swift Aire Lines' shareholders have voted to accept Golden Gate Air lines chairman Justin Colin's $2-5 million bid for a controlling interest in the San Luis Obispo-based com muter carrier. Swift Aire is setting January 12, 1981, as the closure date for the purchase agreement, which still has to gain approval from the CAB and Swift Aire's creditors. • A California Public Utilities Com mission study states that local air fares have at least doubled since the removal of Governmental fare control in 1978. According to the Commission, deregulation has caused Californian intrastate fares to rise towards the CAB-established SIFL (standard in dustry fare level), which the PUC maintains is considerably higher than the intrastate levels it formerly set. The Commission notes that deregula tion has forced major carriers off the local routes, which have now been This recently taken picture shows on llyushin II-76M transport, at a Libyan airfield, in Libyan Arab Airlines markings. The aircraft is clearly a military version as it sports a rear gun turret (although no armament is visible) and tail warning/gun-laying radar Short hauls ... taken over by commuter carriers charging higher fares for poorer, slower service. D Air France is being sued by 70 pas sengers out of 93 held hostage by pro- Palestinian terrorists in one of the airline's A300s at Entebbe in 1976. Families of four passengers killed during the hijacking are among those who have instigated proceedings on the grounds that Air France did not provide adequate security measures for the passengers' protection, par ticularly at Athens Airport, where the four terrorists embarked. A pre liminary hearing will begin in Tel Aviv on April 8, 1981. • Air New Zealand is to reduce its staff by over 1,000 and will cut back both international and domestic ser vices in an attempt to reduce its current losses of more than NZ$1 million (£400,000) a week. The airline intends to concentrate on its profit able long-distance North American and Pacific routes, with the result that regional services such as those to Fiji are expected to suffer. • The Maltese Civil Aviation Authority has held three-day talks with a Russian delegation led by V. Hrabrov, deputy chief of the Depart ment of International Relations in the Soviet Ministry of Civil Aviation. An official statement says the visit was made to discuss co-operation in the field of civil aviation. Local feel ing is that Russia is keen on extend ing its air services to Malta. D Czechoslovakian national airline CSA has raised its domestic fares by an average of 90 per cent. Compari sons between the new domestic time table and the old show that ticket costs for some flights (e.g. Prague- Bratislava and Prague-Karlovy Vary) have doubled, while some return fares (Prague-Gottwaldov and Prague-Pies- tany among others) have increased by as much as 110 per cent. The carrier has also rationalised domestic services —several routes have disappeared from the winter timetable.
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