Aviation Daily

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Steven Lott
Alaska Airlines soon plans to expand a modified version of its "Anchorage Airport of the Future" concept to more than a dozen rural Alaska airport stations to help boost efficiency. The "Alaska Two-Step," expected to be finished this summer in 13 communities, is taking aim at the airline's goal of improving productivity through boarding process changes while reallocating limited lobby space to meet TSA needs. The $2 million project is expected to save the airline up to $8 million in remodeling costs, the carrier said.

Luis Zalamea
Argentina said its restructuring plan for LAPA will include sponsoring a new state-operated airline to fly the grounded carrier's routes. (DAILY, April 25 & 28). The new airline will use the infrastructure of Intercargo, the government airport ramp operator, with a fleet of five to six aircraft, and all of its 850 employees. Labor unions applauded the move, as did politicians who want to offset the alleged Aerolineas Argentinas/Austral monopoly in the domestic market. The government will not assume LAPA's liabilities, however, nor take over its shares.

Staff
Clarification: Robert Sturgell was nominated as FAA deputy administrator in November, was confirmed March 19, and sworn in during the first week of April. The April 29 issue of The DAILY failed to note Sturgell's senate confirmation.

By Adrian Schofield
FAA faces fresh accusations that inadequate staffing is jeopardizing air traffic control in one of the nation's busiest airspace sectors, with Chicago controllers claiming that short-staffing, coupled with increased aircraft activity, is causing an alarming number of operational errors.

Willaim Dennis
The Republic of Korea and the Russian Federation have concluded a new air services agreement, which paves the way for carriers of both countries to operate to six destinations in each country instead three. A new agreement was needed to accommodate the increasing air traffic between the two countries. The first agreement was signed in 1991. Currently, nine airlines from Korea and Russia operate 22 scheduled passenger services and eight freighter flights a week. -WD

Annette Santiago
Singapore Airlines (SIA), trying to maintain its operational health in the wake of the SARS pneumonia, announced plans to further reduce frequencies and asked its cabin crew to take seven days' unpaid leave every two months, starting yesterday, until the financial year ends March 31, 2004. The decision will affect more than 6,600 cabin crewmembers, and SIA plans to broach a similar plan with the Air Line Pilots Association Singapore, which represents its pilots.

Steven Lott
Mesa Air yesterday reported a $12.0 million profit for its fiscal second quarter, including one-time items, more than double the earnings it posted last year as it continues to grow its regional jet flying. Without four special gains and charges related to the ceasing operations of CCAIR and the return of Beech 1900s, Mesa posted a $4 million profit. The earnings far exceeded analysts' consensus expectations. CEO Jonathan Ornstein told analysts yesterday he believes the current operating environment is getting "marginally better."

Staff
Spirit Airlines today plans to retire the last four DC-9s from its fleet, which is a "pivotal move for our airline," said Chairman Ned Homfeld. The DC-9s had an average age of 30 years and were part of the fleet when the airline started 12 years ago. Spirit will be left with a much younger fleet of 27 MD-80s, according to the Airclaims CASE database.

Steven Lott
TSA plans to cut 6,000 airport screeners from its total work force by the end of September, while lifting the requirement that law enforcement officers be posted at airport checkpoints.

Denise Marois
Senator Barbara Boxer (D-Calif.), co-sponsor of a bill with Sen. Charles Schumer (D-N.Y.) to arm commercial aircraft with anti-missile defense systems, told The DAILY yesterday that the legislation is gaining support and moving forward.

Back Aviation

Steven Lott
DOT this week invited small U.S. communities to apply for a total of $20 million in grants under the Small Community Air Service Development Program.

Steven Lott
Continental this week on its Web site launched ITA Software's international search engine that includes worldwide pricing for the airline and its network of alliances.

Steven Lott
WestJet eked out a slim C$778,000 (US$543,000) first-quarter profit, down sharply from C$7.1 million last year but still an accomplishment as the airline dealt with high fuel taxes and a drop in demand.

By Jens Flottau
Emirates, which yesterday posted a $286 million net profit on revenue of $2.8 billion in its Fiscal Year 2003, confirmed it plans to announce large orders for a variety of long-haul aircraft at the Paris Air Show next month.

Lori Ranson
US Airways is poised to begin flying Embraer 170s/175s as part of its mainline network through its MidAtlantic Airways division, Senior VP of Employee Relations Jerrold Glass said in Washington yesterday. Glass gave the US Airways pilots credit for understanding "our vision of the product, provided we reach some sort of provision with Embraer," he told attendees at the Commercial Aviation Events Regional Airline Conference.

Steven Lott
Delta's management team took the first step in its attempt to win concessions from its pilots union by submitting to the group a two-phased proposal that includes a 22% hourly wage reduction. Delta sent the detailed proposal to the union's negotiating committee, but the Air Line Pilots Association has not yet completed its evaluation of the airline's financial situation. Phase 1 of the proposal addresses pilot pay rates, per diem, overrides and Delta's contribution to the Delta Pilots' Family Care Savings plan.

Steven Lott
The Transportation Security Administration before monthend is expected to announce its decision on whether United and Mesa Air can proceed with a prototype program to arm their crews with Taser non-lethal weapons.

Staff
Joe Hopkins, media relations manager and longtime spokesman for United, retired yesterday after a 30-year career with the airline. "United has always been blessed with wonderful employees, and I appreciate all the help I've gotten along the way," Hopkins said. "Your help has gone a long way to make my job easier."

Steven Lott
SkyWest yesterday reported a $13.3 million first quarter profit, down 45% from the like period last year, but officials said announced they do not intend to defer the planned 39 CRJ firm deliveries scheduled for this year.

Staff
United mechanics and ramp workers, represented by the International Association of Machinists, voted to ratify a concession agreement yesterday. Of the mechanics who voted, 70% were in favor of the agreement, while 83.2% of ramp workers voted for the deal.