Aviation Daily

Lori Ranson
Frontier is planning a small revival in former focus city Los Angeles with the launch of point-to-point service to San Francisco June 29, claiming that San Francisco will be a low-fare alternative to nearby Oakland. The carrier made a push in Los Angeles in 2004 offering flights to Philadelphia, Kansas City, St. Louis and Minneapolis/St. Paul but scaled back its operations after the expansion from L.A. was slower than expected.

Staff
Lost, damaged and pilfered baggage will be the subject of a hearing today by the U.S. House aviation subcommittee, chaired by Rep. John Mica (R-Fla.). Witnesses include staff from the Transportation Dept., the Transportation Security Administration and the Air Transport Association. The panel estimates that the air transport industry worldwide is losing about $2.5 billion annually due to mishandled baggage.

Seabury Airline Planning Group

Eclat Consulting

Luis Zalamea
Pilots and flight engineer unions at Aerolineas Argentinas (AR) last week broke off government-supervised negotiations with management, as the goodwill of the Easter "truce" (DAILY, April 6) ended and the possibility of strikes went up again. AR proposed a 19% salary increase, plus non-remunerative supplements for pilots, co-pilots and flight engineers. Though they accepted the increase, the unions insisted on discussing both non-remunerative supplements and seniority in depth, which led to a break in negotiations until today.

William Dennis
New Zealand and India on Tuesday signed an air services agreement in New Delhi that will pave the way for launch of flights between the two countries. An air services agreement between the two countries signed in 1996 allowed ANZ to repatriate funds earned on ticket sales in India, but details for flights to be introduced between the two countries had never been finalized until yestserday.

By Adrian Schofield
Continental yesterday reported impressive load factor and unit revenue growth in April, supporting analyst predictions that April was a very strong month for the airline industry. The carrier said its passenger unit revenue was up 12.5%-13.5% for the month, with mainline unit revenue increasing 11.5%-12.5%. Both increases were roughly double the March unit revenue growth, although April benefited from a later Easter than last year.

David Hughes
FAA aims to install 400 Automatic Dependent Surveillance Broadcast (ADS-B) ground stations by 2014 at it rolls out this key satellite navigation capability across the U.S. while decommissioning more than 125 ATC radars.

Luis Zalamea/ Annette Santiago
Guyana has licensed three new carriers -- Caribbean Air Systems, Travelspan Guyana, Inc. and E-Jet, Inc. -- to provide regional and international services, including some limited U.S. service, from the capital of Georgetown.

Steven Lott/Benet Wilson
Mexicana has been seeing record loads on its new service from Fresno to Guadalajara and Mexico City. The carrier started the five-times-weekly Airbus A318 service on April 1. "The flights are completely packed for the next two weeks, where 40% to 60% is the usual on new routes," said Patti Miller, director of marketing, air service and public relations for Fresno Yosemite Airport.

Eclat Consulting

Steven Lott
Mexicana's low-cost subsidiary Click plans to expand to international routes outside Mexico for the first time this year as its fleet grows 50%.

Staff
Embraer sold two Legacy 600s to Fransabank SAL CEO Adnan Kassar and Kuwait-based Celtel International. Fransabank is set to take delivery of its plane in the third quarter, while Celtel, a subsidiary of mobile phone service supplier MTC, is set to receive its jet in the fourth quarter. Embraer said the latest sales would boost the number of its executive jets flying in the Middle East to seven.

By Adrian Schofield
Leading House Democrats this week raised new concerns about FAA's ability to fund the next-generation air transportation system (NGATS) that is currently being planned, while an independent study has provided fresh detail on the size of the shortfall.

Luis Zalamea
Officials from El Salvador and Qatar, envisioning greater commercial cooperation between the two countries, say a bilateral agreement is necessary to establish a relationship for the development of joint enterprises.

Staff
Lost, damaged and pilfered baggage will be the subject of a hearing today by the U.S. House aviation subcommittee, chaired by Rep. John Mica (R-Fla.). Witnesses include staff from the Transportation Dept., the Transportation Security Administration and the Air Transport Association. The panel estimates that the air transport industry worldwide is losing about $2.5 billion annually due to mishandled baggage.

Steven Lott
Many network airlines think a first-class product, international network and frequent flyer program entitle them to a revenue premium over their low-cost carrier competitors, but that premium is shrinking fast.

Lori Ranson
Delta TechOps won new business from private Venezuelan carrier Santa Barbara Airlines to supply nose-to-tail maintenance for the airline's Boeing 767-300ERs, including engine component, inventory and training support; the value of the five-year deal is $50 million.

Luis Zalamea
The ability of the LAN group of airlines to levy a fuel surcharge on passenger tickets differs from country to country; in Argentina, it is harder as the government regulates airfares. User understanding of the charges also differs with each industry segment, from passenger to cargo.

Steven Lott
India's Jet Airways recorded a 15% jump in full-year profits to INR4.5 billion (US$101.3 million), leading executives to claim that Jet is the most profitable airline in India.

Eclat Consulting

By Adrian Schofield
Boeing yesterday announced a blockbuster deal under which the company will take over aircraft parts supplier Aviall for $1.7 billion in cash, spreading Boeing's reach significantly in the supply chain management business.

Lori Ranson
CIT's new Aerospace and Defense Finance Group could close some deals within the next several months as it firms up financing packages with rates that will be "competitive with the market," the head of the new group told The DAILY. Managing Director and General Manager Pat Dowling said that CIT's new branch, launched yesterday, had an "active backlog of potential transactions."

Steven Lott
Delta plans to install its live satellite television service on three different types of aircraft in the next 18 months as part of its post-Song product changes, The DAILY has learned, as the carrier tries aggressively to boost revenue across its domestic and international system.

Steven Lott
All Nippon Airways parent on Friday posted a 26.7 billion yen net profit (US$236 million), down about 0.9% for the fiscal year ended March 31, as record revenues helped offset high fuel prices.