Aviation Daily

Staff
American notified the U.S. Transportation Dept. that it would end code sharing with British Airways and Mexicana on its Los Angeles-Palm Springs flights, effective April 3. American has been carrying BA's code on the route since May 30, 2003 and Mexicana's code since April 29, 2004.

Staff
The Air Transportation Stabilization Board (ATSB) is expected to give US Airways an extension to keep using its cash to fund operations beyond the Thursday deadline, say sources with the board and the airline. The ATSB will likely cap the amount of cash the carrier can use, but it is expected to be enough to keep operations going through the winter. The bankruptcy court will need to approve any agreement.

By Adrian Schofield
ATA Airlines yesterday revealed its new and reduced scheduled for Chicago Midway, with the most notable cuts coming in cities served by its new code-share partner Southwest.

Lori Ranson
Airbus yesterday won its second U.S. A380 customer after UPS signed a deal to buy 10 freighters, giving the airframer another order for the jumbo jet less than a week before the plane's formal roll-out in Toulouse. UPS follows rival FedEx, which inked an A380 order in 2002, also for 10 freighters. UPS worked with Airbus to reduce the number of A300-600s it had on order, cutting a 90-plane order to 53. UPS has already taken delivery of 40 A300s and plans to accept delivery of the remaining 13 A300s by July 2006.

Staff
Palonegro Airport serving Bucaramanga in Central Eastern Colombia was awarded environmental certification ISO 14001, a few months after Medellin's Rionegro International Airport received the same certification. The government hopes the award will encourage other airports throughout the country to upgrade environmental safety standards.

Angela Kim
Alaska, American and Continental are each asking the U.S. Transportation Dept. for authority to start new service between Los Angeles and Mexico City, moving quickly to lay claim on the route, which Delta is dropping at the end of this month.

Steven Lott
United over the weekend won tentative concession deals with two of its largest unions representing mechanics and flight attendants, avoiding a likely contentious bankruptcy trial that would have seen the airline try to abrogate its current contracts.

Luis Zalamea
Domestic and international passenger traffic in Colombia was poised to post strong growth, as results from November show a 5.8% increase domestically and 15.3% international growth from last year.

William Dennis
The low-cost carrier (LCC) boom that hit Southeast Asia in 2004 shows no signs of stopping this year, and airlines that expanded rapidly over the past year are ready to launch new flights, setting the course for new battles against major carriers and amongst themselves.

Lori Ranson
Pilot furloughs at Independence Air are following service cuts the carrier announced last week, as the airline continues to work with lessors to restructure deals and avoid a potential bankruptcy. The carrier is cutting five markets and reducing frequency in 10 other cities in its network effective Jan. 31 (DAILY, Jan. 5). An airline spokesman said those "schedule adjustments would require rebalancing staff needs in accordance with the reduced flying."

Luis Zalamea
Only two weeks after Jamaica regained control of financially troubled Air Jamaica (DAILY, Dec. 27), new management under executive chairman Vin Lawrence decided to cut headcount, top executives salaries as well as canceling unprofitable routes. After posting $90 million in losses last year, Lawrence said the dramatic changes are needed just to keep flying. -LZ

Angela Kim
The U.S. Transportation Dept. approved American's request to expand its code sharing partnership with Gulf Air. American will begin carrying Gulf Air's "GF" designator code, effective Feb. 16, on its flights from Frankfurt to Chicago and Dallas/Fort Worth and between Paris and Chicago, Dallas/Fort Worth, Miami and New York Kennedy. American carries Gulf's code on its flights from London Heathrow to Boston, New York Kennedy, Newark, Miami, Chicago and Los Angeles [OST-2004-19923]. -AK

By Adrian Schofield
Continental Connection carrier Gulfstream International plans to expand its service from South Florida to the Bahamas.

Staff
AirTran next month plans to start new nonstop service between Newport News, Va., and Tampa International Airport. The airline will operate one daily flight in either direction starting Feb. 9.

By Jens Flottau
Germanwings expects to grow revenues and profits in 2005 as the airline expands its fleet to 20 aircraft in the next few weeks. The airline anticipates a 45% rise in passenger numbers to about 5 million. Also revenues are expected to increase from EUR245 million in 2004 to beyond 300 million this year. The airline said it made an operating profit in 2004, but it declined to specify further.

Luis Zalamea
US Airways has received authority from El Salvador to operate daily nonstop service between Fort Lauderdale and El Salvador with Airbus A319s, reports Roberto Herodier, chairman of the country's civil aviation department (AAC). The service is scheduled to launch on Feb. 16. US Air Account Manager Diana Flores noted that now passengers from El Salvador may enjoy the convenience of quicker entry to the U.S. and easier connections by using the Fort Lauderdale option to avoid congested conditions at the Miami terminal. -LZ

Lori Ranson
Operators of Airbus A310s in the U.S. will have to make modifications to the interior of the right-hand wing to prevent an ignition source from developing in the fuel tank as part of industry's efforts to reduce sources of flammability in wing fuel tanks. Special Federal Aviation Regulation (SFAR) 88, issued in 2001, requires operators to look for possible ignition sources in fuel tank systems and consider design changes.

Annette Santiago
Senior VP-Operations Michael Snyder will leave the company, effective Jan. 29.

Steven Lott
Spirit Airlines on Feb. 10 plans to add a second daily nonstop flight from Fort Lauderdale to Nassau. The first flight to Nassau starts Jan. 10. "Customer response has been so strong to our Nassau service that this second flight became a necessity," said CEO Jacob Schorr. The second daily flight will depart Fort Lauderdale at 7:40 p.m. and arrive in Nassau at 8:35 p.m. The return flight leaves Nassau at 9:00 a.m. and arrives less than an hour later. -SL

Staff

Staff
Southwest sees a dramatic increase in capacity by competitors in all its markets, says airline CEO Gary Kelly. Competitor capacity was up 10% in the fourth quarter of 2004, and the same trend is continuing this year, Kelly says.

Staff
Rep. John Mica (R-Fla.) will again head the aviation subcommittee of the House Transportation and Infrastructure Committee during the 109th Congress. Rep. Don Young (R-Alaska) will return for his third term as chairman of the full committee.

Staff
Boeing has cut final assembly of the 737 to 12 days, down from 22 days five years ago. The airframer credits lean manufacturing techniques for the drop. Boeing plans to shave even more time in final assembly of narrowbodies, and is working toward an eight-day goal.

Luis Zalamea
Right before the close of 2004, Trinidad & Tobago Prime Minister Patrick Manning told Trinidad-based BWIA and Antigua's LIAT to restructure and merge or face being shut out in favor of a "replacement entity," reports DAILY affiliate AvNews Latin America & Caribbean. A BWIA/LIAT merger has been on and off the table for years, always subject to political forces. Manning stressed that both airlines have been given 30 days from the end of December to come up with a strategic plan or face restructuring under some form of holding company. -LZ