Aviation Daily

William Dennis
Malaysia Airlines remained MYR133.7 million (US$38 million) in the red for the year ended Dec. 31 despite posting a MYR122 million profit (US$34.9 million) for the fourth quarter. It was the first time since the airline started operations in 1972 that it turned an operating profit -- MYR36 million (US$10.28 million) -- for its domestic operations, surprising even the international community. For the fiscal year, revenue jumped 18% to MYR2.5 billion (US$713.5 million) while costs rose 2% to MYR1.4 billion (US$399.7 million).

Staff
Delta CEO Jerry Grinstein says he sees "international flying going to Boston in about two years," noting there is a problem with getting customs in the carrier's terminal, "but we will make the necessary arrangements when the time comes." He also points out Delta should take as much of US Airways' traffic "as we can."

Staff
JAL expects a revenue increase of at least JPY3 billion (US$25 million) a year due to its joining the oneworld alliance, says CEO Haruka Nishimatsu. He admits this revenue number is conservative, and does not include the cost savings that will be realized through co-location of airport facilities.

Benet Wilson
Aéroports de Paris is preparing to open the newly renovated, $35.5 million West Hall 2 at Paris Orly Airport on April 3. Hall 2, used by Air France, has been under construction for 13 months. Changes include more clearly defined boarding, disembarkment and security checkpoint areas; more streamlined check-in counters designed to reduce lines and offer airlines greater flexibility in passenger handling; and an automatic baggage sorting system.

Benet Wilson
The Transportation Security Administration's (TSA) staffing allocation model is useful for distributing staff among airports, but assumptions used should be systematically reassessed, says a new report from the Government Accountability Office (GAO). The model was created to ensure that enough transportation security officers (TSOs) were available to perform passenger and bag screening at the more than 400 airports where TSA covers these duties. As of Oct. 31, 2006, these airports had 761 checkpoints and 2,002 screening lanes.

Staff
Air New Zealand will finish the last year of a four-year cost-cutting program in June, and expects to achieve savings significantly above its goal. The program will yield NZ$326 million in cumulative annual cost cuts, compared with the target of NZ$245 million.

Staff
Elected Arthur Collins, Jr., CEO of Medtronic, to its board.

By Adrian Schofield
British Airways CEO Willie Walsh insists that despite the airline's recent order of four Boeing 777-200ERs, a larger long-haul modernization competition is still wide open. Boeing and Airbus "should not read anything into" the recent 777 order, Walsh told The DAILY. BA was looking for aircraft to expand its fleet in the near term and decided that the only options were the 777 and the Airbus A330. Airbus made "a very attractive offer" on the A330 but was "just shaded" by the Boeing proposal.

Benet Wilson
Worldwide passenger traffic rose 5% in January to 182 million, fueled by an increase in international traffic, according to statistics released by Airports Council International. Total freight handled worldwide gained 3% in January year over year and international freight 3.8%, while domestic freight remaining almost flat at 0.4%.

Staff
Named Michael Kraupp VP-finance and treasurer.

Staff
While US Airways says crews and aircraft will remain separate after the America West code disappears when reservation systems are combined, the Air Line Pilots Association argues the carrier already violated a transition agreement with its pilots when it used US Airways pilots on America West flights from Las Vegas to Boston. ALPA also claims the carrier assigned America West pilots as fleet managers for US Airways aircraft.

Madhu Unnikrishnan
European Union negotiators last week handed their U.S. counterparts a draft proposal for a new passenger name record data transfer deal, which the U.S. will now review. At the crux of the issue is the amount of PNR data the U.S. collects, how long these data are retained and whether these data are adequately safeguarded, a senior EU official told The DAILY. The interim agreement allows PNR data collected by the U.S. Dept. of Homeland Security to be shared with other law enforcement agencies on a case-by-case basis.

Staff
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 17-19 -- MRO Military 2007 Conference & Exhibition, Cobb Galleria, Atlanta, Ga.

Martial Tardy
European Union and U.S. negotiators on Friday reached a draft agreement creating a transatlantic Open Aviation Area after a week of last-ditch talks that led to a number of concessions from the U.S.

Benet Wilson
Employees of the 10 SkyTeam carriers are learning how to give passengers a hassle-free travel experience flying on member airlines under a new three-day training program.

Staff
The massive delays of Feb. 14's ice storm are spawning the first of what may be a string of airline passenger legal rights legistlation. The measure, introduced by Rep. Mike Thompson (D-Calif.), gives passengers the right to deplane after ground delays of three hours or more -- with some exceptions. It also calls on FAA to work out a plan to permit passenger off-loading without losing the flight's position in the departure sequence.

Staff
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) MARCH 7 -- European Aviation Club luncheon featuring Jonathan Faull, European Commission, Director-General, DG Justice, Freedom and Security, presentation on aviation and terrorism, Brussels, email: [email protected] MARCH 7 -- Special Wings Club Luncheon on the Road featuring Dermot Mannion, CEO Aer Lingus, The Westin Dublin Hotel, Dublin, Ireland, 212-867-1770, email: wingsclub@ aol.com.

Staff
Appointed Ken De Jaeger VP to help lead the Financial and Technical Services practice. De Jaeger will work in SH&E's New York offices.

Staff
Toronto and Hartford, Conn. are the two Milwaukee markets that would grow the most if AirTran is successful in merging with Midwest. AirTran would increase daily seat totals in the Toronto market from 64 to 351 by July 2009. Hartford would have the same stats. AirTran estimates that would mean 448% growth in those markets.

Lori Ranson
AirTran is detailing more of plans to develop Milwaukee as the March 8 deadline of its tender offer to Midwest's shareholders approaches. The offer by AirTran to Midwest's shareholders followed a rebuff by Midwest's board of AirTran's second attempt to merge the two airlines late last year.

Annette Santiago
Proposed Bush Administration changes to Essential Air Service in the Fiscal 2007 FAA Reauthorization measure could shut some existing communities out of the program and leave passengers as the biggest losers, say two industry associations.

By Adrian Schofield
Emirates says the Boeing 777 and 747-400 freighters it has on order will enable the carrier to meet ambitious expansion goals through 2010 -- extra service to Asia and Europe and flights to new regions, such as South America.

Harrell Associates

Lori Ranson
A preliminary hearing is scheduled today on a request from the Air Line Pilots Association at US Airways for a temporary injunction against dropping the America West marketing code during the planned migration this weekend of the US Airways reservations system.