Aviation Daily

Staff
Congressional staff working on pension reform will get no rest over the July 4 recess after the House-Senate conference committee failed to reach agreement before everyone left Washington. American, Delta and Northwest have urged members to break the logjam, but the talks have continued for weeks with no end in sight. The congressional staff next week will work to move closer to a compromise, sources say.

Annette Santiago
Northwest is reviving plans to serve the Memphis-Cozumel and Detroit-Ixtapa/Zihuatanejo markets after letting its authority for the routes go dormant earlier this year. The airline blamed its failure to launch the services in January on the "effects of Hurricane Wilma and Northwest's reorganization priorities under Chapter 11." Northwest now envisions launching service in the markets on Feb. 17. It would operate a seasonal Saturday-only service on both routes, using Airbus A320s seating 16 in first class and 132 in coach.

Eclat Consulting

Staff
US Airways this week named Matthew Hart to its board, effective immediately. Hart is president and chief operating officer of Hilton Hotels Corp. and also served on the America West board from 2004 to 2005. He stepped down when the two companies consolidated their boards last September. Hart, whose term expires in 2009, will also serve on the US Airways audit committee. Before joining Hilton as CFO in 1996, Hart was senior VP and treasurer for The Walt Disney Co.

Staff
Lufthansa Technik (LHT) cinched two 10-year contracts with ATA Airlines covering components and engine support for three Boeing 737-300s, 25 737-800s 20 757-200s/300s and four L-1011-500s . LHT plans to maintain 3,200 parts through the power-by-the hour deal and execute a sale and leaseback pact for the airline's existing inventory.

Benet Wilson
While the Transportation Security Administration has strengthened its efforts to deploy baggage-screening systems, funding to install future equipment on a large scale remains uncertain, says a new report from the Government Accountability Office. TSA needs to systematically evaluate checked baggage screening needs at airports, including identifying the cost and benefit of in-line versus standalone explosives detection systems, says the report, commissioned by House aviation subcommittee Chair John Mica (R-Fla.).

Steven Lott
Normally rivals, JetBlue, Northwest and several other U.S. carriers plan to ramp up their Washington lobbying machines after the July 4 holiday congressional break to fight the proposal that seeks to repeal the Wright Amendment.

Steven Lott
Alaska Airlines this week unveiled a new Boeing 737-400 freighter that it converted from a pas- senger plane and added to its cargo fleet; the aircraft is the first of five larger cargo planes the airline will put into service by the end of 2007.

Staff
Peter Michaelis was elected to be the new Chairman of Austrian Airlines' Supervisory Board. He succeeds Rainer Wieltsch, who will continue on the board as deputy chairman. Former CEO Vagn Soerensen, who left the airline earlier this year (DAILY, Feb. 16), will become CFO of Danish shipping giant Maersk on July 1.

Annette Santiago
Air Midwest will continue to operate essential air service at DuBois, Pa., after its service proposal won the community's and the U.S. Transportation Dept.'s support. Air Midwest will use its 19-seat Beech 1900D aircraft to operate 18 weekly roundtrip flights between DuBois and Pittsburgh as US Airways Express. The carrier requested $599,271 in annual subsidies, and the new rate will be effective Aug. 1-July 31, 2008 [OST-2004-17617].

Staff
Flybe plans to launch flights to three new destinations from Birmingham -- Hannover, Galway and Aberdeen -- this winter. The carrier plans to offer three weekly flights to Galway, daily service to Hannover and three daily flights to Aberdeen, which will be served with the airline's new Embraer 195. The airline is also adding two new destinations from Belfast Oct. 29 with the launch of two daily flights to Doncaster and a single daily flight to Galway.

By Adrian Schofield
Airservices Australia yesterday signed a deal with Thales to buy new radars for its major airports, but it appears to be backing away from part of its plans for en-route satellite navigation coverage.

Steven Lott
TAM plans to boost an already aggressive fleet and network expansion with a new memorandum of understanding to acquire 37 additional Airbus aircraft.

Lori Ranson and Fran Fiorino
While the National Transportation Safety Board uses the upcoming 10th anniversary to push FAA to mandate fuel inerting systems in aircraft, the agency continues to evaluate comments to its proposed rulemaking, which touts inerting as the best solution.

Harrell Associates

Eclat Consulting

Steven Lott
U.S. airlines have lost almost half of their top paying passengers in the past five years due to discount fares and business jets, a new study shows. A new analysis by consultancy The Velocity Group found that business aircraft now account for passenger levels equal to about one-third the number currently flying airline first-class, business-class and full-fare coach fares combined. Velocity's study, done every two years, reviewed higher-yield passenger data in the U.S. domestic airline and business aviation markets.

Lori Ranson
Southwest plans to unveil destinations from its newest market at Washington Dulles next month in preparation for an October launch. Earlier this year, the airline touted its plans to start flights from the airport, close to its Baltimore stronghold, after the demise of Independence Air. The carrier plans to lease two gates in the airport's Concourse B.

Staff
Embraer tomorrow plans to win certification for its 195 jet from Brazilian regulators, and approval from Europe and the U.S. FAA should follow in a matter of weeks, CEO Mauricio Botelho tells the Aero Club of Washington. The first delivery of the 118-seat plane is expected this fall to Europe's Flybe, which has firm orders for 14 195s and 12 options.

Staff
Precision Castparts CEO Mark Donegan joined the board of directors at Rockwell Collins, filling a position with a scheduled re-election in February 2007.

Steven Lott
Northwest next week plans to start offering new special boarding lanes for premium and the carrier's most frequent customers at airport departure gates throughout the U.S.

Benet Wilson
The Canadian government needs to speed its pursuit of open-skies agreements with countries around the world as part of a current review of international air policy, said Jim Facette, president and CEO of Canadian Airports Council at an aviation seminar.

Steven Lott
UPS and the U.S. Postal Service extend the olive branch yesterday and signed a three-year contract that will see UPS fly first-class and priority mail to 98 cities.

Lori Ranson
Startup Mexican carrier Interjet predicts turning a profit this year as a result of siphoning passengers from the country's legacy carriers through pricing that the airline's leader claims is substantially below what those airlines charge. The airline launched flights in December from Toluca Airport and now flies to 13 destinations, using seven ex-Volare Airbus A320s.