Aviation Daily

Staff
Southern Winds, a privately held Argentinean carrier, started previously announced service from Buenos Aires to Miami. The carrier is operating the service four times weekly with Boeing 767-300ERs wet-leased from Air Atlanta Icelandic, using "A4" as its airline code.

Staff
American, as part of its widespread strategy to cut costs, announced plans to consolidate about 5,000 management and support staff from 11 headquarters buildings in the Fort Worth area to two buildings by early 2005.

Staff
Expanding its operations from New York Kennedy to South America, LanChile now offers daily nonstop service between New York and Lima, Peru, continuing to Santiago, Chile, as well as connecting flights throughout South America. The daily flights also connect with LanPeru's extensive network throughout Peru. The new and expanded schedule, targeted at business and leisure travelers, offers night flights both to and from Lima, providing passengers with easier connections. -LZ

Staff
Both Finnair and Icelandair improved their results in recent months despite the air transport industry downturn. Icelandair recorded a pre-tax profit in the first six months of 122 million Icelandic crowns (US$1.42 million), compared with a loss of ISK2.33 billion in 2002, while sales dipped to ISK17.56 billion ($20.4 million) from ISK17.72 billion. The swing back into profits stems from a tighter focus on the Icelandic tourism market rather than transatlantic operations, profitable currency variations, lower fuel prices and lower interest rates, the carrier said.

Staff
Passengers may carry paper or foam cups -- with "coffee, juice or other beverage" -- as they pass through metal detectors at screening checkpoints, James Loy, acting under secretary for transportation security, said yesterday.

Staff
Bombardier believes a new market has emerged for airlines to use its 70-seat Q400 turboprop and 90-seat Canadair CRJ900 aircraft in second-tier cities currently not served by low-fare airlines using Boeing 737s and Airbus A320s. But the number of those secondary markets is finite, said Rich Goloshefsky, executive VP of Pennsylvania-based GRA Inc. "There are markets where this works. The question is how many dense, short-haul markets can handle the aircraft without being part of a larger network?"

Staff
Southwest yesterday slashed its most expensive walk-up fares to a maximum of $299 each way, but one analyst said the move will have little effect on industry revenues. Southwest executives, however, expect the move to draw more business travelers, increase traffic and boost annual revenues by millions of dollars. The airline previously capped its one-way, unrestricted walk-up fares at $399, but the airline wanted to "give business passengers flexibility back they desperately need."

Staff
Cockpit door kit supplier C&D Aerospace will be able to deliver the 5,000-odd kits ordered by U.S. carriers well in advance of FAA's April 9, 2003, deadline for getting the new systems installed, a company executive said yesterday. C&D Engineering Manager Tom McFarland told attendees at the annual Air Line Pilots Association safety forum that some 400 kits have already been delivered, and the company plans to be cranking out 900 kits per month by late fall. By Jan.

Staff
Alaska Airlines unveiled plans yesterday to further boost its East Coast presence, launching flights this fall from Seattle to Newark and Miami. The airline plans to operate one daily nonstop roundtrip flight in each market with 120-seat Boeing 737-700s. Service to Newark will begin Oct. 28, followed by Miami on Nov. 21. The new destinations will become the seventh and eighth outside Alaska's traditional West Coast route system, and are part of Alaska's ongoing "Seattle Strategy."

Staff
Air traffic demand "recovered noticeably from the significant decline that occurred after the Sept. 11 terrorist attacks," said Fraport, operator of Frankfurt airport. In the first half of 2002, passenger traffic at the airport nevertheless declined by 4.3% to 22.9 million in the first half of 2002. Fraport said first-half earnings before interest, tax, depreciation and amortization (EBITDA) rose 14.3% to EUR234 million, with consolidated sales up 13% at EUR855.2 million. "This growth in revenues can be largely attributed to ICTS Europe Holding B.V.

Staff
The Hong Kong today will announce Cathay Pacific's application to resume passenger service to China and invite the aviation industry in Hong Kong and China to comment. The next step involves a lengthy process of applying to the Civil Aviation Administration of China (CAAC). Once CAAC has given its approval, negotiations at the government level would begin to decide on the destinations and frequencies the airline would operate.

Staff
FAA has issued its stringent FAR 145 certification to the maintenance center set up by Aerolineas Argentinas at Buenos Aires Ezeiza Airport, which is now qualified to repair, maintain and overhaul Boeing and other aircraft licensed in the U.S.

Staff
Northwest plans to start new winter seasonal service from its three domestic hubs to warm-weather destinations. From Detroit, Northwest on Dec. 18 will begin new daily service to Nassau, the first time the carrier has served the point. Northwest will start seasonal Saturday-only service from Detroit to Montego Bay, Jamaica, effective Dec. 21, and will grow to four flights per week, beginning Feb. 1. From Memphis, Northwest will begin new daily service to Puerto Vallarta, Mexico, beginning Feb. 1. From Minneapolis/St.

Staff
FAA has denied a request to withdraw an airworthiness directive (AD) mandating that carriers modify the wiring in the fuel quantity indicator system (FQIS) on Boeing 777s. The agency received comments saying that Boeing has already addressed the proposed changes through service bulletins. FAA believes there are still dangers with the current wiring, including chafing that could lead to wire exposure and potentially cause an explosion in the fuel tank.

Staff
In what could be one of her last speeches as NTSB chair, Marion Blakey this week stressed that in spite of the new emphasis on security, there are a number of safety issues such as runway incursions that could still become problems for the industry. "There are serious safety issues still lurking, waiting to spring if we are not careful," Blakey said.

Staff
Transportation Security Administration head James Loy, in saying yesterday that the Dec. 31 deadline for 100% checked-baggage screening should be carefully considered, may be signaling the Senate to take up the issue of providing flexibility to the hard-pressed agency and airports on meeting the deadline. Loy, speaking at the Seattle/Tacoma Airport, said an "extra 30, 60 or 90 days" might enable TSA to get explosives detections systems in place, given time and budget constraints and "engineering challenges."

Staff
Rolls-Royce posted a pretax profit of GBP104 million (US$157 million) for the first half of the year, compared with GPB190 ($288 million) for the same period in 2001. Rolls-Royce said it expected a drop in profits after a decline in its civil aircraft engine business as a result of the Sept. 11 attacks. The company said it plans to deliver 870 new engines to power civil aircraft in 2002, about 36% fewer than in 2001. However, Rolls-Royce said total revenue from engine service contracts is expected to equal 2001 levels and grow in 2003.

Staff
Experts consulted by Mexico about expanding the present Mexico City International Airport (AICM) claim expansion of its present facilities is at best a Band-Aid solution to market growth over only eight years at a very high cost. The expansion involves a second taxiway, relocation of the control tower and new terminal facilities. Some of the experts who participated in the master plan for the discarded Texcoco option estimate these costs at a minimum of $200 million. The airport's capacity would increase by only 20%.

Staff
FAA will begin operational use of controller-pilot data link communications (CPDLC) in its Miami en route center in October, and the system is expected to be in use nationwide by 2006. The system uses a new ARINC network to enable digital exchange of data between aircraft and controllers, and will reduce frequency congestion and controller workload by replacing some voice communications.

Staff
Southwest this week added a new Boeing 737-700 to its fleet. The delivery was the 16th of the year and brought Southwest's fleet to 368 aircraft. Two more deliveries are scheduled for the year, with one arriving in September and one in October. With the addition of N424WN, Southwest's fleet comprises 122 -700s, or 33% of all aircraft.

Staff
Delta today plans to ink a widespread marketing and code-share agreement with Continental and Northwest that the airlines hope will successfully combat the proposed United-US Airways partnership, The DAILY has learned. Sources close to the deal said the partnership will initially start with cooperation in North America and expand to their respective international networks. If all goes well, today's agreement could lead to the expansion of the SkyTeam alliance, sources said. Continental previously had a close relationship with SkyTeam partner Air France.

Staff
FAA is proposing a US$1.5 million fine against United Airlines for the carrier's failure to properly maintain and inspect three Pratt & Whitney JT8D engines from April through November 1999. FAA said United continued operating the engines on 124 flights after the carrier realized it failed to comply with an airworthiness directive mandating that the airline replace weak engine components. United has 30 days to reply to the agency.