Air Transport World

Europe, Part 2

Britannia Scandinavia: This Britannia subsidiary flew 1,302,800 passengers and 4 billion RPKs in 1997, according to IACA.

British Airways: The strength of the pound, the Dec. 12 fire at London Heathrow's Terminal One and a late charge for engine maintenance ate into BA's profits in the year ended March 31, counteracting improved yields and continuing cost efficiencies. Pretax profit fell to $963.8 million from $106 billion and operating profit was down to $836.6 million from $906.4 million even though revenues rose 3.4% to $14.3 billion.

On the traffic front, calendar-year passenger boardings were up 1.6% to 34,159.000 and RPKs advanced 2.6% to 98.4 billion.

Chairman Sir Colin Marshall said that "the past year has seen British Airways make great progress and the overall Outlook for the company is favorable." He added that good growth in European markets, low fuel prices and improved exchange rates will help offset the impact of any slowdown in the U.S. and U.K. economies and the current difficulties in the Far East.'

The past years notable events have included the launch in May, 1998, of BAs new low-cost, cut-rate fare offshoot. Go, and a decision to buy up to 100 new lets for affiliates British Airways Regional, Air Liberte, Deutsche BA and Euro-Gatwick.

Still pending is the proposed alliance with American Airlines, which BA is confident will he approved "by the early autumn."

British International Helicopters: Good traffic growth continued at the U.K. helicopter carrier, which posted gains of 2.1% to 105,875 in passengers and 2.2% to 6 million in RPKs. Load factor reached 77.6%.

British Mediterranean: Thanks to a franchise agreement with British Airways and several new routes, British Mediterranean's traffic soared last year. Passenger boardings climbed 203.3% to 111,337 and RPKs jumped 196.3% to 403 million,

British Midland: The European regional chalked up the best year in its history in 1997, despite increased competition from new low-cost carriers. Pretax profits jumped to $28.8 million front $10.2 million as revenues ruse 10.7% to $880.8 million.

Chairman Sir Michael Bishop attributed the good results to the carrier's alliances with 17 international airlines at London Heathrow and to its new Diamond EuroClass premium service. BMA also benefited from a strike by cabin crew at British Airways. he said.

Passenger boardings rose 7. …

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