Aviation Daily

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Transportation Security Administration could meet the letter of the law requiring federal screening of passengers by Nov. 19 and screening all checked baggage by Dec. 31, but waits could be very long, DOT Secretary Norman Mineta told House lawmakers under questioning. During his prepared testimony, he said funding lags put those deadlines at risk.

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The European Parliament, at its plenary session in September, is expected to demand detailed working time rules for European Union cockpit and cabin crews. Despite several years of talks, crews and airline representatives failed to agree at the European Union level. So far, the European Commission avoided becoming involved in this highly complex and controversial issue. The draft EU regulation harmonizing technical rules and administrative procedures in EU civil aviation, which the EC initially proposed in March 2000, refrained from addressing the issue.

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Delta Connection this fall plans to start daily regional jet service from Atlanta and Orlando to Key West, Fla. The nonstop Atlanta flights will be operated by Atlantic Southeast Airlines and will be the first airline service from Key West to a destination outside Florida in 40 years, the carrier said. Delta Connection will upgrade existing twice-daily Key West-Orlando turboprop service with 40-passenger Bombardier CRJ200s on Sept. 1. Two daily nonstop, roundtrip flights between Key West and Atlanta will start Oct. 1, operated by Comair with 70-passenger CRJ700s.

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LanChile Cargo and Lufthansa Cargo signed an agreement providing for Lufthansa Cargo to start operating five weekly flights with MD-11s from Frankfurt to Sao Paulo and continuing to Rio and Buenos Aires. LanChile will use Boeing 767-300Fs to increase to three its current two flights from Frankfurt to Miami connecting to destinations in South America and vice versa. In general, Lufthansa Cargo will cover the East Coast of South America and LanCargo the West Coast.

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America West inked a deal to become an Orbitz "charter associate" member and use the company's new supplier-link technology. AWA is Orbitz's 42nd airline charter associate member. Orbitz's growing total list of airline, hotel and car-rental charter associates now totals 54.

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Ernesto Asbun, new president and majority equity holder in Lloyd Aereo Boliviano, has launched new flights from Cochabamba and La Paz, Bolivia, to Cusco, Peru, offering twice-weekly service with Boeing 727s at a roundtrip fare of $188.

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World Airways CEO Hollis Harris predicted this week that the company has a 50% chance of remaining listed on the Nasdaq SmallCap Market. World participated in a Washington hearing before the Nasdaq Listing Qualifications Panel and outlined steps that have been taken to achieve fiscal 2002 net earnings adequate to exceed the minimum listing requirement. The panel's decision is expected within the next two weeks.

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Alaska Airlines upgraded its connectivity level to the Sabre global distribution system, enabling travel agencies using the Sabre system to view seat maps in real-time and get other benefits, such as interactive bookings and instant confirmation. Under the "Direct Connect Sell" connectivity, travel agents can view open seats on any Alaska or Horizon Air flight and request specific seat assignments. Agents also can claim and ticket a reservation generated by Alaska or Horizon without creating a passive booking or calling the airline.

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New York LaGuardia and Kennedy may be the next airports where the public can track aircraft arrivals and departures for noise and other concerns, pending funding of the AirportMonitor system now in use at the Los Angeles and Louisville, Ky., airports. Reps.

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Signature Flight Support acquired all general aviation and commercial operations of AirKaman's fixed-base operation at Jacksonville, Fla., International Airport. As part of the acquisition, Signature will acquire eight aircraft hangars, over 180,000 square feet of aircraft storage space and 60,000 square feet of office space. In addition, Signature intends to retain the 65 staff members already working at the flight support operation.

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Share prices and market capitalizations of the largest U.S. majors continue to drop to dismal levels. United's stock hit a record low of $4.17 per share yesterday, leading to a market cap of $233 million -- roughly the list price of a single Boeing 777-300ER. US Airways comes in even lower with a $2.65 share price and a market cap of $180.5 million. JetBlue has a $1.7 billion market cap.

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Raytheon's weather processing system known as the integrated terminal weather system (ITWS) for the FAA recently achieved initial operational capability at Atlanta Hartsfield Airport. The Atlanta system entered into service on schedule per the FAA's operational evolution plan, Raytheon said. Current FAA plans call for installing 34 ITWS systems to cover 45 major airports that experience severe weather conditions.

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Pluna, the Uruguayan carrier managed by Varig, will retire one Boeing 767-200 on its only international route, Montevideo-Madrid via Rio, and replace it with a newer 767-300ER on lease from Ansett Worldwide. The service will be operated under code share with Varig to reduce losses, which totaled $15 million since Pluna was privatized seven years ago.

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JetBlue Airways yesterday topped analyst expectations by posting a $14.6 million net profit and an industry-high 18.6% operating margin. The airline recorded $149.3 million in revenues, a 90.4% jump from last year, when it was flying about 60% fewer departures. CEO David Neeleman said the revenue results were better than expected thanks to strong performances from new markets. The results were 37% higher than last year and represent JetBlue's sixth consecutive profitable quarter at a time when the industry is posting the largest losses in a decade.

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Boeing's Air Traffic Management (ATM) division launched several European initiatives laying groundwork for its vision of a space-based, global ATM system, division President John Hayhurst said yesterday. He believes a newly formed European ATM partnership launched with similar goals to Boeing's will complement Boeing's efforts, although he dismissed questions raised by the European coalition about Boeing's ATM approach and track record.

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Talks between Mexican authorities and Atenco land holders over construction of a new airport in the Texcoco area lasted only two hours Wednesday night and ended with new threats of violence by the protesting farmers. The climate for negotiations deteriorated when farmer Jose Enrique Espinosa, one of the leaders of the protest, died early yesterday as result of head injuries received in the first violent confrontation with the police July 11.

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FAA chose five sites for its latest round of awards in the Military Airport Program (MAP), an AIP program that funds facilities that have converted or plan to convert from military to civilian or joint use. The airports are Guam International; San Bernardino International, Calif.; Sawyer Airport, Marquette, Mich.; Mid-America Airport, Belleville, Ill.; and Plattsburgh International, Plattsburgh, N.Y. According to DAILY affiliate Airports, all but Plattsburgh are already in the program and are being re-designated to continue. A dozen other airports are also in MAP.

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Scotland's Loganair and Air Jet of France are expanding their Saab fleets with the announcement this week of new lease agreements. Loganair leased two Saab 340Bs for delivery in August and September, and took an option on a third, while extending its lease on another. The airline also is upgrading its fleet of Shorts 360s. Air Jet will get Saab 2000s this month and in September. The carrier became a Saab customer in November to complement its fleet of BAe 146s.

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Arming pilots might make passengers feel safer, Sen. Conrad Burns (R-Mont.) told DOT Secretary Norman Mineta at a Commerce Committee hearing, while Chairman Ernest Hollings (D-S.C.) urged DOT not to reconsider the issue. Newly installed TSA head James Loy said Mineta asked him two days ago to review use of lethal or non-lethal weapons by pilots, and while admitting he is "hesitant," he said he is "being directed" to conduct a review and will do so.

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Senators challenged DOT Secretary Norman Mineta yesterday for specifics on funding and agency launch problems stemming from Transportation Security Administration mandates, and questioned whether key deadlines can be met following passage of a short-funded supplemental spending measure.

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As result of the fleet reduction announced last week by Varig, domestic subsidiaries Rio Sul and Nordeste will have to adjust their expansion plans. Rio Sul plans to take delivery of five new Boeing 737s to increase flights between state capitals; Varig serves only major international hubs in Brazil. Nordeste will rationalize schedules between the Northeast and the rest of nation.