Aviation Daily

Staff
SkyTeam plans to launch the third phase of its ongoing advertising campaign, an $18 million ad buy, with print spots appearing around the world beginning April 15. SkyTeam again used the agency BETC Euro RSCG to create the "Caring Hands" campaign, emphasizing the alliance's focus on passengers. The advertisements highlight the alliance's network, fast flight connections and "priority services." An outdoor campaign will launch in May, with a concentration of billboards around SkyTeam hubs, as well as other at large airports.

Staff
GE Aircraft Engines (GEAE) and Turbomecanica S.A. of Bucharest, Romania, formed a joint venture to make engine components. The 50/50 venture will be located at Turbomecanica S.A.'s Bucharest operation. Turbomecanica has been a supplier to GEAE and GE Power Systems since 1998, producing static hot section parts.

JF
Iberia's first quarter results were significantly better than forecast, underlining the viability of the carrier's current strategy. Iberia is focusing on a strong domestic market, key European routes and has established itself as the leading carrier between Europe and South America, largely avoiding the sharp drop in traffic on the North Atlantic routes. The airline, privatized last year, posted a EUR5 million operating loss for the quarter, up from a loss of EUR90 million in 2001.

AS
NTSB will hold a public hearing May 9 on the February 2000, crash of an Emery Worldwide Airlines DC-8 cargo aircraft near Rancho Cordova, Calif. The hearing was scheduled in August 2001 but was postponed when Emery suspended operations. In a statement Friday, NTSB Member John Goglia said the safety board felt it was important to reschedule the hearing to examine the maintenance issues involved.

MT
European Union Transport Commissioner Loyola de Palacio said she "will not allow any state aid to anyone which would not conform with European legislation," speaking about Olympic Airways on the sidelines of a conference last week in Thessaloniki. "We saw what happened with Sabena. We cannot act differently -- and I will not -- depending on the company and on the state," de Palacio said. The Greek government had until the end of last week to respond to European Commission questions relating to the financing of Olympic but has asked for an extension.

AS
A San Mateo, Calif., law firm has filed a lawsuit against Continental and Air France over an alleged case of deep vein thrombosis (DVT) resulting from a long-haul flight. Although a number of DVT suits have been filed overseas, this is believed to be the first such case in the U.S. The firm, O'Reilly, Collins&Danko, represents Debra Miller, who suffered cardiac arrest 16 days after flying from Paris to Newark, and on to San Francisco. The suit claims that her collapse was cause by the blood clotting associated with DVT.

Staff
Skyway will introduce Milwaukee-Rhinelander, Wis., service, beginning June 1. The airline will offer three nonstop roundtrips each weekday and two each weekend day. Service will be operated by Astral Aviation, a subsidiary of Midwest Express, using Beech 1900D aircraft.

AL
DOT last week urged transportation officials from African and Caribbean nations, meeting in Atlanta, to move forward on strengthening safety and security standards as well as to consider the benefits of liberalized aviation regimes. "Open, safe and secure skies are crucial to economic development," Read Van de Water, assistant secretary for aviation and international affairs said. The U.S.

AL
Midwest Express has placed a firm order for 25 Boeing 717s, with options for 25 more. The order, valued at $940 million, expands on the carrier's April 2001 announcement to order 20 717s and will accelerate its plans to replace its DC-9s. Its current 35-aircraft fleet includes 23 DC-9s and 12 MD-80s. Delivery of the 25 717s will begin in February 2003 and continue through 2005 at a rate of one aircraft a month. The first is expected to enter scheduled service in March 2003.

LZ
In spite of the worldwide airline crisis and its own political, security and economic problems, Colombia's aviation industry expects a good year, according to analyst projections. Major developments revolve around the Avianca/SAM operational integration with Aces. Juan Emilio Posada, president of the alliance, says its brand name and top management will be made public on May 21, and passengers will start to benefit from free ticket endorsements and mutual frequent flyer privileges.

Staff
TRAFFIC DATA FOR MARCH 2002 In From In From Load Airline Millions 3/01 Millions 3/01 Factor Air Wisconsin 135.7 +16.5% 184.6 +7.4% 73.5% Midwest Express 182.7 -2.9% 278.3 -5.0% 67.6% Skyway 15.2 +25.4% 31.2 +17.4% 48.6% SkyWest 245.2 +98.0% 346.7 +64.8% 70.7%

Staff
Varig plans to resume its flights between Miami and Belem, Brazil, effective May 18. The weekly Varig flights will operate from Miami on Saturdays with a stop in Manaus. The northbound flights from Belem will operate nonstop on Sundays. Service will be operated with Boeing 767-200s in a two-class configuration. Officials described Belem as the "northern gateway" to Brazil.

AS
Miami International Airport has reduced its Capital Improvement Program (CIP), retaining priorities such as runway construction but deferring many other planned programs. The revised plan was recently approved by the Miami-Dade Board of County Commissioners.

Staff
U.S. National Carriers Traffic March, 3 Months 2002 (000) March March % 2002 2001 Change Air Wisconsin Revenue Passenger Miles (000) 135,714 116,539 16.5 Available Seat Miles (000) 184,596 171,942 7.4 Load Factor (%) 73.5 67.8

Staff
Southwest has begun installing American flag decals on all of its Boeing 737s. The new flags, which are being placed on both sides of the base of each plane's tail fin, meet all codes of federal regulation and federal aviation regulations. The airline's fleet should be outfitted with the new flags by the end of July.

Staff
House Appropriations transportation subcommittee in the next few weeks will revisit the $4-plus billion supplemental being requested for the Transportation Security Administration. The subcommittee will make recommendations, but there is no word as yet on what they will be, a spokesman said.

LZ
Adding upper tiers to Mexico City's Viaduct and Peripheral Expressways as access ways to the alternate airport approved by the federal government in the Texcoco area is a new technical argument being promoted by politicians and urban planners. Texcoco has been opposed by Mexico City's municipal administration on the basis that it would generate serious traffic problems in the capital and increase the threat of floods, which could no longer be channeled through natural drainage in and around Texcoco.

AL
Two veteran federal law enforcement officers have been named as the latest federal security directors (FSDs) -- the Transportation Security Administration's top law enforcement corps, overseeing federal aviation security at U.S. commercial airports.

LZ
Nearly 1,000 commercial pilots in Brazil, highly trained at substantial expense and with many thousands of flying hours, have lost their well-remunerated jobs as direct result of the ongoing sector crisis. According to the National Union of Airline Workers (SNA), only at Transbrasil, grounded for four months after a long period of decline, 350-400 experienced pilots were terminated, although expanding TAM Brazil and Gol Airlines rehired most of them.

AS
Continental yesterday reported a net loss of $114 million excluding special charges for the first quarter, and company officials said that the second and third quarters of this year might edge into the black. Although the first quarter was down overall, March was the airline's first profitable month since Sept. 11, partly due to the fact that the Easter weekend fell in March instead of April this year.

Staff
Lima-based AeroContinente reports carrying 16,523 passengers over the Easter holidays, a record. During the first quarter, it sold 308,890 tickets and expects to carry more than a 1.5 million passengers this year.

LZ
Peru was awarded FAA safety oversight Category 1 in 1997 and this was ratified in 2000 subject to improvements in some operations. Since then, differences of opinion have arisen between Peru's civil aviation authorities and local airlines about certain safety technical standards that require heavy capital investments. The FAA visited Peru again in 2001 and questioned full implementation of certain air safety standards but made no changes in assessment.

WD
An Air China Boeing 767-200 carrying 155 passengers and a crew of 11 crashed in bad weather on approach into mountainous terrain in the Korean city of Busan on a flight from Beijing.

Staff
DOT set forth procedures for carriers to apply for a third round of compensation under the Air Transportation Safety and System Stabilization Act, which provides up to $5 billion for eligible losses following the Sept. 11 attacks and extending through Dec. 31, 2001. Carriers have received compensation in earlier tranches totaling up to 85% of their eligible losses documented in their applications. This round would bring compensation up to 95%; a final round will be processed later.

AS
With US Airways pilots still deciding whether to accept a management proposal for increasing regional jet flying, leading airline analysts say that although the increase is smaller than the carrier wanted, it would have many positive implications. The Air Line Pilot Association's US Airways Master Executive Council met yesterday to consider the proposal, but no decision was expected until today.