Aviation Daily

Staff
Elected Gerald Fitzgerald, president and chairman of Cornerstone Bancorp and LaSalle Bancorp, to a three-year term on its board.

William Dennis
Bangkok Airways is eager to build a new airport in Luang Prabang in Laos. Founder and CEO Prasert Prasarttong-Osoth said the existing airport's short runway of 1,850 meters and the mountainous terrain surrounding the facility make it dangerous for aircraft flying to the city. He said the problem was compounded by haze during winter and smoke from forest fires. The airport, which handled 150,000 passengers last year, is expected to hit its capacity of 230,000 in three years. More than 85% of the passengers are carried by Bangkok Airways.

Luis Zalamea
Chile's major international and domestic airlines are increasing fares to offset rising fuel costs that could place profits in jeopardy, local sources say. As oil crept toward $70 a barrel, LAN announced increases in fuel surcharges from $9.50 to $14.30 on domestic tickets, $20-$25 on regional international routes and $60-$80 on long-haul international tickets. Domestically, Sky has upped surcharges from $11.50 to $19, while Aerolineas del Sur plans to escalate increases from the current $9.50. -LZ

DHL

Staff
Appointed Maryann Goebel, formerly chief information officer for General Motors North America, as CIO-DHL Express in the Americas, Asia Pacific and Emerging Markets/Latin America.

By Adrian Schofield
British Airways is beginning talks with its unions on its plan to resolve its pension deficit headache, but the crucial negotiations will probably not occur until a new estimate of the deficit is completed, a senior BA executive says.

Staff
Named Senior VP-Public Policy and Communications Tod Hullin to succeed Rudy deLeon as senior VP-government affairs for the Washington, D.C., office upon deLeon's June 30 retirement. Boeing Commercial Airplanes Communications leader Thomas Downey will take over Hullin's responsibilities as VP-corporate communications. Boeing also named Connexion by Boeing President Laurette Koellner to president-Boeing International Relations, replacing Thomas Pickering upon his retirement.

Lori Ranson
Embraer unveiled a new, 78,000-square-foot hangar at its maintenance services base in Nashville that's capable of handling maintenance, repair and overhaul of Embraer 170/190 jets.

Benet Wilson
Mesa Air has resolved a dispute with Hawaii's DOT over terminal space at Honolulu International Airport; the carrier's Go operation will remain in the commuter terminal.

Staff

Luis Zalamea
Varig received a $400 million proposal from former cargo subsidiary Varig Log for an equity stake in the airline, a $50 million improvement from the original proposal that could give Varig the funds it desperately needs to keep operating (DAILY, April 14). Local reports say Varig Log released a statement confirming both the improvement on the April 4 offer and the agreement on the purchase. The deal, however, must pass the muster of Varig's board, creditors and employees, as the carrier is restructuring in court.

Steven Lott
Delta On Friday reached a tentative deal with its pilots' union, averting a possible strike for the time being, but it's not clear how the membership will react until the details are released.

Luis Zalamea
Aerocalifornia owner Raul Arechiga dismissed local reports that FAA backed a decision by Mexico's civil aviation department (DGAC) to suspend the carrier's operations, calling it a routine acknowledgment that FAA sends to its foreign counterparts every time an airline that flies to the U.S is suspended.

Staff
You can now register online for Aviation Week events. Go to www.AviationNow.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 25-26 -- MRO Military 2006 Conference & Exhibition, Phoenix Civic Plaza, Phoenix, AZ APRIL 25-27 -- MRO 2006 Conference & Exhibition, Phoenix Civic Plaza, Phoenix, AZ MAY 17-18 -- MRO Military Europe, Berlin SEPT. 19-21 -- MRO Asia, Xiamen, China OCT. 24-26 -- MRO Europe, Amsterdam

Benet Wilson
As the deadline has passed for communities to submit applications for the DOT's Small Community Air Service Development program (SCAD), The DAILY contacted the top 10 grant recipients in the program's first year -- FY2002 -- to see how the money was spent. DOT awarded $19.9 million in grants to 40 communities in 2002. Five of the top 10 grant recipients in FY 2002 were successful in efforts to improve air service (DAILY, April 13).

Steven Lott
Virgin America yesterday was slapped with another delay by the U.S. Transportation Dept. when the startup carrier was ordered to submit additional information about its ownership structure and management's relationship with Virgin Atlantic Chairman Richard Branson.

Benet Wilson
Congress should fully fund the Essential Air Service (EAS) program in 2007 to ensure that small communities keep their access to the global air transportation system, according to panelists at a legislative briefing on Capitol Hill.

Steven Lott
Virgin Atlantic yesterday predicted a 20% spike in passengers traveling on the carrier for the Easter and Passover holidays.

Steven Lott
United this week wrapped up two separate five-year content distribution deals with Worldspan and Galileo committed the carrier to a long-term relationship with the global distribution systems. The Worldspan agreement includes two new products that give travel agencies access to the airline's published fares and seat inventory. This includes all published fares sold through United. com, any third-party web site or other distribution system, as well as some private fares. The agreement is expected to be implemented in six months.

By Jens Flottau
Lufthansa saw only small traffic growth in the first quarter, with demand up 1.0% from last year. The airline offered 3.1% more capacity, the load factor consequently dropped 1.5 percentage points to 71.8%. The slowdown was caused mainly by a 4.7% drop in demand on routes to North and South America, while European traffic -- like Asia/Pacific -- was up 5.8%. The airline pointed out that with the Easter holidays in April, the figures are not completely comparable to last year. -JF

House