Aviation Daily

Staff
Continental last week claimed to set an industry record by having passengers check in for flights more than 12.7 million times using its self-serve airport kiosks. In addition to having the most individual check-ins, the airline said it had the highest utilization rate, with 62.4% of customers traveling in the continental U.S. using eService check-in as of December. The kiosks are manufactured by Orlando-based Kinetics, and Continental has installed 683 units in 113 airports, or about 91% of its domestic destinations. -SL

Staff
DOT Secretary Norman Mineta was out of bed late last week and exercising following recent surgery at Walter Reed Army Medical Center in Washington.

Staff
Cubana de Aviacion said Friday in Madrid that, effective in July, it will start to operate one weekly nonstop flight between Madrid and Holguin, Cuba's third most important tourist destination. Holguin is the gateway to a wide area of isolated beaches, wildlife preserves and reefs for scuba diving, and is being developed with participation of Melia and other Spanish resort chains. -LZ

Staff
Virgin Express plans to raise up to EUR85 million (US$91.6 million) from its parent company and other shareholders to finance its expansion, the carrier said yesterday.

Staff
The Bush Administration asked Congress for $4.8 billion to fund the Transportation Security Administration (TSA) for fiscal 2004, as 2003 budget requests still await congressional approval.

Staff
The Varig Boeing 777 impounded last week at Paris Charles de Gaulle Airport (DAILY, Feb. 3) by order of a French court was returned to the airline last Friday and flew back to Brazil Saturday morning. Jeff Kriendler, Varig spokesman in Miami, told The DAILY emergency negotiations between Manuel Guedes, the carrier's president, and leasing company ILFC, led to the court-approved release. -LZ

Staff
Delta yesterday joined airlines changing its excess baggage charges for overweight baggage.

Staff
No-frills carrier Ryanair is expected today to reveal more details on its decision to buy KLM subsidiary buzz, and will also disclose its third quarter results. Analysts expect the airline to improve net profits by 35%-40%, to about EUR40 million (US$43million).

Staff
American Trans Air plans to add two daily flights from Chicago Midway to New York LaGuardia, as well as one daily flight from Indianapolis to New York LaGuardia. The new flights will begin May 1, and tickets are available for purchase immediately. With the new frequencies to New York, passengers traveling from Chicago will now have 11 nonstop flights each weekday for travel to the New York and Newark areas. The airline also will offer three nonstop flights from Indianapolis to LGA.

Staff
Airports want an accounting of Transportation Security Administration's payout to Boeing of $500 in funds earmarked for airport security modifications. But TSA said Friday it explained to airports the funds were used for physical modifications.

Staff
United and American, the major airlines with the largest financial losses last quarter, posted the best on-time arrival rates in December, according to the latest DOT Air Travel Consumer Report.

Staff
KLM will ground one Boeing 747-300 and two Fokker 50s in the summer timetable "due to market circumstances."

Staff
Alaska Airlines inked a new partnership with Cathay Pacific Airways that lets members of each airline's frequent flyer program earn and redeem miles on the other carrier. This is the first time Alaska's frequent flyer program has partnered with an Asia-based carrier. Beginning Feb. 19, Alaska's Mileage Plan members will earn one mile for each mile flown on Cathay Pacific, plus a 25% bonus for business class and a 50% bonus for first class. Later this spring, Mileage Plan members will also be able to redeem miles for travel on Cathay Pacific.

Staff
Baltimore/Washington International Airport today joins more than 145 other U.S. airports participating in the TSA's "Selectee Checkpoint" program, which requires passengers to have boarding passes at the security checkpoint. E-ticket receipts, itineraries and vouchers will no longer provide access through the checkpoints, and boarding passes will no longer be issued at the gates. Boarding passes may be obtained at ticket counters, through airline computer kiosks, or at most skycap curbside stations. -SL

Staff
US Airways, still facing high costs and intense fare competition, reported a $794 million fourth-quarter loss, including one-time items. The deficit was narrower than the record $1.16 billion loss it reported in the same 2001 quarter, and its loss without the special items in the quarter was $295 million. For the full year, the airline reported a $1.65 billion loss, smaller than $2.12 billion loss it had in 2001.

Staff
Ecuador's TAME, operated for years by the air force as a commercial airline, is now seeking a 49% shareholder to create a joint public/private corporation to assure its future growth. Under fleet renewal plans, Tame will overhaul its two Fokker 28s and will lease a Boeing 737-800 or Airbus A320 in addition to the seven Boeing 727s it currently operates. -LZ

Staff
TAM Brazil's CFO Jose Zaidan Maluf reported last week 2003 insurance costs for the carrier's fleet have been cut by 30%, from $27 million to $21 million. Insurance costs are still "quite expensive," however, because war risk coverage was included. Because there are still some industry misgivings about government guarantees on this type of risk, according to Maluf, insurance was arranged by TAM through Unibanco-AIG, a leader in insuring leased aircraft. -LZ

Staff
The White House yesterday released a DOT budget that signals important changes to the way aviation will be funded over the next four years, including a major shakeup of the Essential Air Service (EAS) program and a proposal to draw a share of money from the aviation trust fund.

Staff
Japan Airlines has chosen Lufthansa Technik to maintain some of the thrust reversers on its CFM6-80 engines powering its Boeing 747s. Lufthansa Technik said JAL plans to send thrust reversers from CFM6-80s that "its own MRO operation lacks the capacity to handle."

Staff
Delta yesterday became the latest U.S. major airline to start testing whether passengers are willing to buy meals on board.

Staff
In what is becoming an increasingly public clash, Austrian Airlines CEO Vagn Soerensen said yesterday the airline would not order any Bombardier aircraft until the manufacturer has sorted out longstanding reliability problems with Austrian's Q400 fleet.

Staff
Air France said it managed to operate 85%-90% of its flights on Sunday and Monday, despite a pilot's strike over pay. Pilots union representatives disputed the figures and said only 40%-60% of services were operated. The strike is scheduled to last until Feb. 5.