Aviation Daily

Staff
Alaska subsidiary Horizon Air began service to Denver on Monday with six daily nonstop flights from the Pacific Northwest. Alaska also inaugurated service from Vancouver to Orange County, Calif.

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Several U.S. major airlines in April took a step backward in terms of traffic and unit revenues, largely due to the absence of any major holiday periods. Continental's April unit revenue fell 10-12%, more than the March decline of 6.4% and deeper than expected. Traffic was down 11.7% and capacity fell 11%. If Continental's unit revenue continues to decline year-over-year for the next two months, "then we think a profitable June quarter could be a bit of a stretch," said Merrill Lynch analyst Michael Linenberg.

Staff
Mesa Air yesterday reported a first quarter $5.2 million net profit thanks to its regional jet expansion and cost-cutting efforts. The profit easily topped analyst expectations and compares with a $12.9 million loss last year. CEO Jonathan Ornstein said the airline's "numbers this quarter were terrific." He added that the results "surprised us to a degree," and he predicted that Mesa's growth rate next year would be roughly 40%, "the highest in the industry," thanks to new deliveries. Passenger revenue of $116.9 million fell 6.9% from 2001 but expenses dropped 9.7%.

Staff
Daniel Montgomery has been named executive director of the Air Transportation Stabilization Board, replacing Joseph Adams, who will continue as a consultant to the Treasury Department-based board.

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Midwest Express has changed the passwords accessing its frequent flyer program and has taken steps to ensure customer data protection after a screenshot of data captured from the carrier's test server -- not its actual website -- was posted on the U.S. Space and Naval Warfare Systems Command website, which immediately removed the web page.

Staff
United yesterday launched a new effort to improve its transatlantic premium meal service that it claims will add no additional cost. "Transatlantic service is a highly competitive market where United has grown significantly over the past 10 years," said Teri Fujiwara, senior staff representative-food and beverage Planning. "To remain competitive and meet our customers' expectations, we need to continuously look for innovative ways to allocate our meal service dollars."

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U.S. Major Carriers Change In RPMs, ASMs and Load Factor Fourth Quarter 2001 Load Factor (%) 2001 2000 Pts. Change Alaska 66.4 66.2 0.2 America West 68.5 68.4 0.1 American 66.2 69.6 -3.4 Continental 64.8 69.7 -4.9 Delta 70.3 71.6 -1.3

Staff
Leading pilot groups are following different strategies as they step up pressure on the White House, airlines and Congress to support regulations allowing pilots to have weapons in the cockpit. Today the Coalition of Airline Pilots Associations (CAPA) is expected to announce that it has gathered about 50,000 signatures on its petition calling for the arming pilots. Meanwhile, the Air Line Pilots Association has distanced itself from this petition but has organized a letter-writing campaign aimed at airline management.

Staff
Omni Air International has leased two DC-10-30 freighters and plans to have them available by late summer for charter or long-term wet lease work. The move puts Omni back in the cargo-hauling business for the first time since 1998, when it left the package-hauling market after five years. The carrier will maintain its five-plane passenger aircraft fleet -- which is all DC-10s -- and grow its cargo fleet "conservatively," Omni said.

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Travelocity.com and Expedia recently turned down an offer to list a special online fare offer from Northwest, according to an airline source. The carrier offered both sites a restricted fare from the U.S. to Frankfurt, but the two online agencies refused the offer allegedly because it conflicted with existing preferred partnerships with European carriers. The Northwest fare is now listed on Orbitz.

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A U.S.-U.K. open-skies agreement could be signed prior to a ruling in the European Court of Justice case, but such a bilateral would have a "short life," Loyola de Palacio, European Commission transport minister, said yesterday in Washington. Briefing reporters between meetings with U.S. administration and congressional leaders, de Palacio, also the EC's vice president, said the ECJ's binding decision likely will confirm the "illegality" of European Union nations' bilateral with the U.S. as outlined in the advisory opinion.

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Sen. Robert Smith (R-N.H.) today plans to introduce legislation that would, within six months, establish a training program for arming pilots in the cockpit. Smith will make the announcement along with members of the Coalition of Airline Pilots (CAPA). Details of Smith's proposed legislation were not available yesterday, but the bill has bipartisan support, including Sen. Zell Miller (D-Ga.), who recently spoke to the National Rifle Association in favor of arming pilots.

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Seoul Incheon International Airport (IIA) plans to install a state-of-the-art system to disperse fog from the airport and improve operating safety at the facility. Several systems from the U.K. and Germany are currently being evaluated, and a decision is expected soon. Located 36 miles outside Seoul and 15 kilometers offshore from Incheon's coast, the Category IIIA facility allows aircraft to take off and land in all types of weather conditions down to 200 meters visibility.

Staff
United's recovery plan, including labor cost concessions, will likely be completed within the next two months, according to CEO Jack Creighton. Only hours after the carrier announced plans to start a search for his successor, Creighton vowed to continue working full-time to improve labor relations and lower costs, key components of United's recovery. In Washington yesterday to lobby for the Chicago O'Hare expansion bill, he said he has worked 55-hour weeks at United and "will continue to do that until a replacement is found."

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A U.S.-U.K. open-skies agreement could be signed prior to a ruling in the European Court of Justice case, but such a bilateral would have a "short life," Loyola de Palacio, European Commission transport minister, said yesterday in Washington. Briefing reporters between meetings with U.S. administration and congressional leaders, de Palacio, also the EC's vice president, said the ECJ's binding decision likely will confirm the "illegality" of European Union nations' bilateral with the U.S. as outlined in the advisory opinion.

Staff
American recently launched "Brazos" a new television, print and radio advertising campaign in the U.S. Hispanic market as part of AA's promotion of "More Room Throughout Coach." The commercial aired for the first time over the weekend during the Spanish-language show, Sabado Gigante. "Ponte Comodo" is the tagline of the campaign and focuses on peace of mind, harmony, confidence and trust.

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WestJet converted two options for Boeing 737-700s and will take a third three months earlier than planned. The new orders will arrive in April and July 2003, while the rescheduled aircraft will be delivered in October 2003 rather than January 2004. The moves mean that WestJet will add 11 planes next year.

Staff
Northwest pilot leadership approved a tentative contract extension late Tuesday night, and have recommended that membership accept the deal. Members are scheduled to vote on the contract extension from May 20 to June 3.

Staff
NTSB Bar Association will present a symposium on safety enforcement proceedings May 7 at the NTSB auditorium in Washington. The program will bring together representatives from NTSB, FAA, DOT and the Transportation Security Administration. For more information, visit NTSBA's web site at www.ntsbbar.org.

Staff
ILFC will lease a CF6-80C2-powered Boeing 767-300ER (serial no. 27136) to Air Holland for six years and place a CFM56-3C1-powered 737-448 (serial no. 24521) with Kiev-based Aerosvit for an unspecified amount of time. Both planes are slated to be delivered this month.

Staff
Virgin Atlantic Airways plans to add 300 staff by the end of the year to cope with increased frequencies and the addition of the first Airbus A340-600s to the fleet. The airline said it is looking mainly for more ground staff and cabin crew and will contact employees who went on unpaid leave late last year. Virgin Atlantic plans to increase frequencies to Lagos, Shanghai, New York and Orlando this summer. "This recruitment drive is an endorsement of our decisive action last September.

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CAAC together with the Ministry of Transport and the relevant air transport authorities are in the process of assembling a 2200-strong airline police unit, to be known as marshals. A CAAC official said the move is in line to enhance security throughout the industry in China. "We were not affected by the Sept. 11 attacks on New York and Washington, which caught everyone off guard. We are already operating under extremely tight surveillance and the move is to enhance our system," the official said.