Aviation Daily

Staff
Aerolineas Argentinas traffic increased 49.59% in the first 11 months of 2002, according to a report issued last week by IATA affiliate Monthly International Statistics (MIS). LanChile's traffic rose 19.51% and Varig's 2.26%. Other results were negative: TAM Brazil down 5.23%, Mexicana 11.37%, TAM 11.37%, AeroMexico 14.16%, LAB 21.57% and Cubana 33.39%.

Staff
Passenger traffic at Kuala Lumpur International Airport (KLIA) grew 12.3% to 16.33 million last year, making it the fastest growing airport in the region despite its failure to attract major carriers from Europe and the U.S. Hong Kong International Airport handled 34.32 million passengers, up 3.8%; Bangkok International Airport grew 3.3% to 31.61 million, and Singapore Changi Airport saw an increase of 3.2% to 29.9 million.

Staff
Hooters Air, planning to start charter flights from Myrtle Beach, S.C., this summer, will take full advantage of its well-known restaurant branding to attract passengers to its new operation. Hooters of America Chairman Robert Brooks late last year acquired Winston/Salem, N.C.-based Pace Airlines and its 17 aircraft through a limited liability corporation he owns (DAILY, Jan. 3). Pace, founded by executives of Piedmont Aviation in 1995, specializes in sports team, corporate and tour company charters and operates mostly Boeing 737-200s and -300s.

Staff
The FAA will begin the first phase of its sweeping high-altitude airspace redesign in May, beginning in the Northwest and encompassing the rest of the U.S. by 2006. The project is aimed at using en route airspace more efficiently, and allowing aircraft certified for required navigation performance (RNP) and area navigation (RNAV) to fly point-to-point routes, easing flow congestion as well as reducing the distance between city-pairs.

Staff
The Transportation Security Administration yesterday named retired Coast Guard Vice Adm. John Shkor as the new associate administrator/chief operating officer, and Gale Rossides was named the associate administrator/chief support systems officer. Carol DiBattiste will be TSA's chief of staff.

Staff
The National Air Transportation Association has been inundated with calls from Part 135 operators facing an early February deadline for setting up mandatory security programs but who have not yet seen the final guidance on implementing those programs.

Staff
Northwest yesterday named former Michigan Gov. John Engler to its board. Last week, Engler was named president of state and local government and VP of government solutions of North America for EDS. Engler was Michigan's 46th governor for the past 12 years.

Staff
ARINC Inc. has signed multiyear contracts with Frontier Airlines to provide data link communications services for the carrier's Airbus fleet. ARINC said it would increase existing air/ground voice communications the company already supplies to the carrier. The services include Globalink/VHF data link service, OpCenter message management service, digital automatic terminal information service, predeparture clearance and graphical text weather service. -LR

Staff
GE dismissed reports in the Japanese press last week that the company plans to jointly develop an engine with Ishikawajima-Harima Heavy Industries Co. (IHI)."Boeing hasn't selected anyone for the new Boeing 767," a GE spokesman said. "GE is exploring a new engine concept based on the hot section of the GE90, and likely, IHI would be a revenue-sharing partner. But this is way too premature to talk about doing an engine together."

Staff
The Indian government has approved Malaysia Airlines' application to operate three-times-weekly Airbus A330-300 flights to Kolkata and increase capacity to other Indian cities. Services to Kolkata will start on June 2. India also allowed MAS to upgrade its current daily A330 service to a Boeing 747-400. Due to a shortage of aircraft, MAS will upgrade four of the services to 747s in June, while the remaining three will be upgraded starting Oct. 28.

Staff

Staff
Japan Airlines and China Eastern Airlines agreed to operate four freighter code-share flights between Narita and Shanghai, starting Feb. 1. JAL will operate on Thursday and Saturday using a Boeing 747-200F, while China Eastern will use an MD11 trijet, operating Wednesday and Friday. With the two additional flights, JAL will operate five freighter services on that route. It will also operate one flight independently on Monday. JAL launched the service with one weekly flight in 1998, rising to two last April and three in November.

Staff
Fitch Ratings last week initiated coverage of American and assigned a rating of CCC+ to the company's senior unsecured debt with a "negative" ratings outlook. The company said the CCC+ rating reflects "deepening concerns over American's ability to respond to the continuing industry revenue crisis by quickly overhauling its labor costs and renegotiating union contracts."

Staff
Grant Aldonas, under secretary for international trade at the Commerce Department, will be the featured speaker at the International Aviation Club luncheon Jan. 30 at the Marriott at Metro Center in Washington.

Staff
Aircraft Mechanics Fraternal Association won representation rights for Southwest mechanics in a ballot Friday.

Staff
Emirates, as it begins to implement a complete makeover strategy, revealed plans to boost its capacity this year by 25% as it grows the fleet by 11 new aircraft. The airline on Oct. 26 will launch daily nonstop flights from its Dubai hub to Sydney after it receives its first long-range Airbus A340-500. The same day, it will start daily Boeing 777-300 services to Brisbane via Singapore, giving it its fourth Australian route after Sydney, Melbourne and Perth.

Staff
New York jet fuel spot prices ended last week at $0.90 per gallon, which had increased from the beginning of the week and up 65.0% from a year ago, according to Deutsche Bank Securities.

Staff
To list an event, fax information to Donna Thomas at 202-383-2438. (Bold type indicates new calendar listing.) JAN. 27-30 -- Snell Infrared's Thermal Solutions®, Clearwater Beach, Flor., 800-636-9820, fax 802-223-0460, www.thermal-solutions.org JAN. 28-29 -- Commercial Aviation Events, 12th Annual Financial Opportunities Conference 2003, The Fairmont Hotel, Nob Hill, San Francisco, 44-1932-893-860, fax 44-1932-893-893, email [email protected], www.commercialaviation.net

Staff
Industry groups are questioning how a final rule issued by FAA last week will affect the rights of pilots in the future. The regulation allows FAA and the Transportation Security Agency (TSA) to refuse and revoke airman certificates if TSA views certain individuals as a threat to security.

Staff
Southwest has no plans to add a new city to its network in 2003 but will continue its strategy of adding more flights and frequencies within its existing network, says Chief Financial Officer Gary Kelly. The full-year 2003 capacity increase is estimated at 4.2% as the airline's Boeing 737 fleet grows 11 by aircraft.

Staff
United plans to cut 704 more flight attendants by Feb. 22, the Association of Flight Attendants (AFA) said last week. The airline and AFA agreed on a voluntary furlough package that will be offered to staff; involuntary furloughs will follow if too few attendants buy into the deal. The voluntary furlough offer will close Jan. 30, and the furlough period will run from Feb. 22 to June 30, 2004. A "partnership flying" job-sharing program was also offered, closing Feb. 3. These cuts will bring the total furlough number to 4,210. -AS

Staff
Northwest plans to start seasonal daily nonstop service between Seattle and Osaka, Japan, from June 1 through Oct. 5. The flight will be operated with a DC-10-30 aircraft, with 26 seats in business class and 243 seats in coach. Northwest also announced it has connected the schedules of its Seattle-Honolulu and Honolulu-Osaka flights, providing travelers with a year-round option on Northwest between Seattle and Osaka.

Staff
South African Airways on Friday took delivery of its first of nine new Airbus A340-600s, marking the start of a 41-aircraft, 10-year fleet modernization program. The airline this month will start operating the long-range A340-600 on routes from Johannesburg to Frankfurt and Hong Kong. SAA said it chose a "very spacious layout," seating 48 passengers in a premium business class and 291 in economy. Four Rolls-Royce Trent 500 engines power the aircraft.

Staff
Lufthansa no longer expects 2003 profits to exceed 2002 levels, with airline CFO Karl-Ludwig Kley saying, "There is no way 2003 will be better than 2002." The airline expects an operating profit of EUR700-750 million (US$753-806 million) for 2002 and has not issued any previous guidance for the current year.