Aviation Daily

Staff
Peruvian domestic airlines Aerocondor and tour operator Travel Air are offering overflights of Cusco, the former capital of the Inca Empire and home to the country's ancient temples, fortresses and other monumental wonders. Operated with 12-passenger turboprops designed for observation flights, the hour-long flights are offered for $150.

Annette Santiago
America West applied to the U.S. Transportation Dept. for exemptions to operate to Sweden and Portugal, authority that will be needed for new service US Airways expects to launch this summer (DAILY, Feb. 10). US Airways, meanwhile, also won exemptions to fly between the U.S. and St. Eustatius, Netherlands Antilles, and beyond [OST-2005-23349]. The carrier needs the authority to put its code on Caribbean Sun Airlines' flights from San Juan to St. Eustatius and St. Kitts and Nevis (DAILY, Dec. 19, 2005). -ARS

Staff
Panama's COPA Airlines in June will launch new service from its Hub of the Americas in Panama to Manaus, Brazil, Port-of-Spain, Trinidad/Tobago, and Santiago de los Caballeros in the Dominican Republic, using Boeing 737-700s.

By Adrian Schofield
Reducing the pain caused by peak delay days in the summer is even more important than cutting annual delay averages, FAA and airline executives say. Average delay numbers have dropped since the infamous summer of 2000 despite traffic climbing to higher levels, FAA's Chief Operating Officer Russell Chew said at the agency's annual forecasting conference this week. While this is a positive overall trend, Chew said the peak summer delay days are now much worse. "The difference between the good and the bad days is getting bigger," Chew said.

Steven Lott
Japan Airlines yesterday announced that CEO Toshiyuki Shinmachi plans to resign his position along with five other board members as part of a chaotic shake-up within the top ranks of the company.

Steven Lott
U.S. airlines improved their on-time performance in January, but JetBlue and Alaska Airlines kept their streak alive as the carriers with the most late flights.

Eclat Consulting

Luis Zalamea
The president of Mexican bus company IAMSA that will team with the founder of Ryanair to launch new low-cost carrier AeroBus in Mexico (DAILY, Feb. 28) believes the joint venture will help the company keep its share of the land transportation market.

Annette Santiago
United and the TACA group of airlines inked a code-share deal that will link the networks of TACA, its subsidiaries and its Costa Rican affiliate LACSA with United's worldwide system. The code share will allow United to bolster its network with TACA and LACSA's Central American offerings, while allowing the TACA group to hold out service to the U.S., Canada, Europe and Asia. United says its current Latin service is limited to Guatemala City and San Salvador. Both flights depart from Los Angeles.

Staff
Colombian all-cargo airline Tampa will launch service between Miami and Port-au-Prince, Haiti, pending approval by the U.S. Transportation Dept. If it receives the go-ahead, Tampa would use DC-8-71 aircraft for the flights [OST-2006-24023].

By Adrian Schofield
In what could be one of its last financial statements before privatization, Aer Lingus yesterday reported a drop in operating profit for 2005 despite strong growth in passenger numbers. Operating profit dropped to EUR72.4 million ($86.3 million) last year, compared to EUR107 million in 2004. Profit before tax increased from EUR1.1 million in 2004 to EUR82.6 million. Revenues were down by nearly EUR24 million to EUR883 million.

Martial Tardy
A total of 13 countries agreed to apply a tax on airline tickets to finance development aid despite fierce opposition from airlines. The levy "is completely new and revolutionary," French Foreign Minister Philippe Douste-Blazy boasted in Paris, where an international conference aimed at finding new ways to finance development aid was held.

Luis Zalamea
Bolivian carrier Aerosur, capitalizing on troubles at rival LAB Aero Boliviana (DAILY, Feb. 28), says it is capable of launching European operations to keep traffic flowing, quashing claims of local media that the carrier couldn't fill in for LAB on its European routes.

Annette Santiago
Caribbean Sun Airlines and its sister carrier Caribbean Star will accommodate passengers left stranded by a pilots sickout at troubled Antigua-based carrier LIAT. "This isn't about competition, it's about helping people," Caribbean Sun/Caribbean Star CEO Skip Barnette said. "We feel that it is our duty to do all that we can to help out during this difficult period."

Staff
Seabury Group hired former Merrill Lynch executive Mark Schulte as a managing director and head of investment banking. Schulte joins Seabury from Taurus F.C., a financial advisory and investment banking firm focused on the transportation industry. Before founding Taurus, he was co-head of Merrill Lynch's global transportation practice in investment banking. In connection with the move, Schulte will merge his current advisory business of Taurus into Seabury.

Steven Lott
Jet Airways will be the first Indian airline to offer passengers a way to trace missing baggage using a new online system. Passengers need to report their missing baggage or delay in receipt of their baggage at Jet Airways' airport offices. They will be given a 10-character reference number, which can be used to get an update on the web site. "Passengers will be advised once the baggage has been located and it will be duly delivered to the contact address at the passenger's convenience," the airline said.

Seabury Airline Planning Group

Steven Lott
SN Brussels Airlines suspended its two weekly flights to Kigali after the Rwandan government grounded one of the airline's Airbus A330s for several days.

By Adrian Schofield
Airbus' new Fuel Systems Test Facility at Filton, U.K., was formally opened this week by the Duke of York, although the center has already begun work on fuel systems for new Airbus aircraft programs. The facility, which Airbus says is the first of its kind, designs and tests fuel systems to make them safer and more efficient. Testing is being done on systems for the A400M military airlifter, the A350 and the A380. The center is also studying improvements in fuel system simulation and fuel tank inerting, as well as other emerging technologies.

Steven Lott
Northwest yesterday reached a tentative contract deal with its flight attendants' union, jumping one of two major hurdles in its drive to lower labor rates. The agreement, which is subject to ratification by membership, includes $195 million in cost savings, moving the airline closer to its $1.4 billion goal. No details on the tentative agreement were immediately available. As of press time, the carrier was still negotiating with the Air Line Pilots Associations, and the bankruptcy judge had not decided whether to impose new terms.

By Adrian Schofield
The U.S. Export-Import Bank said the Cape Town treaty, which became effective yesterday, will aid aircraft financing deals that would not otherwise have been available, and the Ex-Im bank called on other aircraft financing agencies to follow its lead and offer incentives in nations that ratify the Cape Town treaty.

Lori Ranson
Porter Airlines scored a victory against Air Canada Jazz while firming up its executive team in its push to launch service from Toronto City Centre Airport in the fall. Carrier parent company Regco Holdings unveiled plans for Porter Airlines earlier this month after initially revealing details to start a new airline based at the airport nearly three years ago (DAILY, Feb. 3).

Staff
Grupo TACA on April 1 will start three weekly nonstop flights between San Salvador and Lima, a link that will improve the flow of passengers and cargo from North to South America via Central America. At an introductory fare of $639 roundtrip, the route will be operated with Airbus A320s.