Aviation Daily

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Despite Mexico's current economic ups and downs, startup Azteca confirmed its commitment to invest US$42 million in 2002, its first year of operations, according to DAILY affiliate AvNews Latin America & Caribbean. Eduardo Laris-McGregor, marketing director, said Azteca wants to position itself in the domestic market at reasonable but not cutthroat fares. Its fleet, now limited to two 136-seat Boeing 737-200s, will increase in August with two 757-200s for international routes and charter flights.

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Air Jamaica plans to launch its second daily nonstop flight from Chicago O'Hare to Montego Bay on Feb. 12, 2003, using Airbus A320s. It also signed a long-term contract with Pratt & Whitney to provide full-scale engine overhaul and maintenance work on its 17 CFM56-5-powered Airbus A320/A321s. The estimated value of this 10-year fleet management program is $80 million. The work will be performed at the P&W Norway Engine Center at Stavanger Airport in Norway.

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Copa Airlines this week took delivery of its 10th new Boeing 737-700 with winglets. The airline will have additional deliveries of 737-700s in November and December, bringing its total fleet of 737-700s to 12 and completing the first phase of a fleet rejuvenation plan the airline began in 1999.

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Continental, effective immediately, removed the "fuel surcharge" from all fares in U.S. domestic and trans-border Canadian markets but increased those fares by $40 to reflect the same final roundtrip amount.

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BMI British Midland yesterday added its code on additional United flights within the U.S. The BMI code now appears on United flights from Dallas, Las Vegas, Orlando, Portland and Sacramento to Manchester via Washington Dulles. On July 27, the BMI code will be added to flights from Des Moines, Omaha, Sacramento and St. Louis to Manchester, via Chicago O'Hare. The additions will give BMI 36 U.S. cities under code share with United. "A large percentage of BMI's customers from Manchester to the U.S.

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Boeing could build a new 250-seater with 30% lower direct operating costs to replace the Boeing 767, Commercial Airplane Group President and CEO Alan Mulally told The DAILY at the Farnborough air show.

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There is no evidence that aircraft cabin air recirculation increases the risk that passengers will come down with a head cold or other upper respiratory infections (URI), according to a new study. The report, published yesterday in the Journal of the American Medical Association, takes steps to debunk the theory of some health critics that airlines and aircraft that do not pump 100% fresh air into the cabin are putting passengers at a greater risk for catching the common cold.

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United and US Airways yesterday reached a marketing alliance that will include a code-share partnership and frequent flyer cooperation. US Airways has been in talks with other U.S. domestic carriers, but United was the most likely candidate and the agreement was expected. The two airlines last year were forced to abandon a proposed merger agreement due to regulatory concerns.

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Boeing Commercial Airplanes continues efforts to fly a fuel cell-powered electric airplane demonstrator, and hopes someday to use the hydrogen-powered fuel cells as auxiliary power units. Program managers will choose components, including the airframe and the fuel cell itself, later this year, aiming for a first flight in late 2003.

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Qantas has converted four of its 60 options for Boeing 737-800s and taken options for an additional four. The conversion is an agreement concluded with Boeing last year with 15 orders and 60 options. Delivery for the four aircraft is slated for early next year. It would be configured into a two class layout with 12 in business class and 158 in economy Qantas is also looking an option to have an-all EY cabin with seating for 180.

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Pratt & Whitney's financial performance is tracking closely with the engine manufacturer's business plan that was revised late last year, CEO Louis Chenevert said this week, and he believes the company will be well positioned to take advantage of an eventual market recovery. Chenevert expects to see a market improvement in late 2003 or early 2004. He said P&W will likely finish 2002 with sales slightly down from last year's levels and profitability unchanged.

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FedEx planners looking ahead to a future without 727s are stymied by the reality that the aircraft are still doing the job well and no obvious replacement exists that would be an exact fit. Senior VP-Flight Operations Donald Barber emphasized to The DAILY at the Farnborough air show that no action is planned to replace the fleet, but FedEx does "need to be prepared" for what will likely be its next major fleet overhaul. U.S.-based FedEx operates 130 727s carrying domestic cargo.

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Korean Air last week signed a contract with Hyatt International to operate a 10-story, 530-room hotel scheduled to open at Seoul Incheon International Airport in May 2003. Korean Air develops hotels through its hotel division and owns four other hotels in the U.S. and Korea. The hotel is about 70% complete and is being built in a Y shape design symbolizing Hanjin Transportation Group's dominance on land, ocean and air.

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Delta this year plans to build a new South Florida Reservation Contact Center in Broward County. The new center will handle customer calls from throughout North America, the Caribbean and Latin America, as well as e-mails, faxes and communications through personal digital assistants. Delta's South Florida contact center, located in Coral Gables, handles on average just under one million calls each month and employs about 700 people. Delta expects the new center to open in fall 2003.

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Bombardier appears to be moving closer to a decision on whether to go ahead with a new large regional jet. Following up on earlier comments by Bombardier Aerospace's President Pierre Beaudoin, a company spokesman confirmed to The DAILY, "We are actively evaluating" a new project. He cautioned, however, "We are not in a position to make a decision now."

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Boeing yesterday brought more partners into its Sonic Cruiser program, which continues to evolve in size and shape through customer and industry consultation. GKN Aerospace Services, Stork Fokker and Fischer Advanced Composite Components are the newest members of the Sonic Cruiser technology design team. The next partners to be added will be in systems design area, Boeing said.

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Ansett's collapse last September after 66 years of operation left a gaping hole in the global network of Star alliance with no Australian domestic carrier feed, a critical factor to its passenger flow through the Asia/Pacific region. Ansett was a member of the alliance. According to Qantas CEO Geoff Dixon, Qantas had to add the equivalent of about seven years' capacity growth virtually overnight to fill the domestic vacuum. Dixon said the airline grew 50% in six to eight months after Sept. 12.

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Mekong Airlines, Cambodia's new flag carrier, will start operations Aug. 15 with four aircraft -- two ATR 42s and two Airbus A320s, all leased. The two fleets will be based in Phnom Penh. The ATR 42s will be deployed to operate to Bangkok, Battambang, Ho Chi Minh and Siem Reap, while the A320s will cover Hong Kong, Guangzhou, Kuala Lumpur, Singapore and also Bangkok. Kunming and Hanoi will come on line later in the year. The airline plans to add two more A320s in the second quarter of next year.

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Lufthansa has decided to order 10 Airbus A330-200s, industry sources told The DAILY. It's understood that the order will not be announced at this week's Farnborough air show. The aircraft will replace the carrier's fleet of six A340-200s. When finalized, it would be the second major A330 order in just a few weeks; KLM ordered up to 24 aircraft earlier this week.

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With eight new orders from four airlines announced at the Farnborough air show, French manufacturer ATR claims it's on target to achieve its goal of 20-25 turboprop orders this year. After shareholders decided against buying Fairchild's 728 regional jet program, ATR has no other near-term plans to enter the regional jet market and believes turboprops will remain a viable product.

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The Supplemental Appropriations Act, agreed to Tuesday by the House and passed by the Senate 92-7 yesterday, provides $28.9 billion in supplemental funding for the remainder of fiscal 2002, including $3.85 billion for the Transportation Security Administration -- $550 million less than the administration sought.

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Investigators sent out last week to check on the progress of checkpoint screener federalization by the Transportation Security Administration revealed that only one concourse at Baltimore/Washington Airport "is totally federalized," House Transportation aviation subcommittee Chairman John Mica told reporters this week.