Aviation Daily

MT
The Council of European Union Transport Ministers, meeting tomorrow in Brussels, is expected to adopt new EU rules on airport noise that would replace a hushkit ban scheduled to become effective April 20. Consequently, the U.S. is expected to withdraw a complaint against the ban it had filed with ICAO in March 2000. The new rules allow airports that are confronted with noise issues to restrict access of the noisiest aircraft. The new rules are in line with an ICAO agreement and were approved by the European Parliament on March 13.

Staff
British European is adding 7% more seats to its summer schedule over last year's summer schedule and maximizing use of its aircraft types. The airline will launch its new schedule March 31, offering more frequencies on several key routes, including Birmingham-Edinburgh and Brussels-London City-Isle of Man and Edinburgh. British European is also offering a new route from Newcastle to the Isle of Man.

MT
KLM on Friday announced an internal reorganization that confirms the group's intention to develop low-cost operations. The Dutch carrier launched the London Stansted-based buzz service in January 2000 as a part of KLM uk, while Basiq Air started operating from Amsterdam Schiphol in December 2000 as a unit of KLM's charter subsidiary Transavia. "Its experiences with both low-cost operations has led the KLM Group to decide to continue to play an important role in this fast-growing market," the Dutch carrier said.

Staff
Raytheon last week finalized the formation of a joint venture between its fractional aircraft ownership business, Raytheon Travel Air and Flight Options Inc. The new company, Flight Options LLC, will have more than 1,600 customers and a fleet of about 200 aircraft, and will be based in Cleveland. The joint venture was announced on Dec. 20, 2001. Under terms of the agreement, Flight Options holds 50.1% ownership of the new business and Raytheon 49.9%. Raytheon Aircraft Co. also has a contract with Flight Options to supply 115 new business jets over five years.

Staff
Embry-Riddle Aeronautical University named Jim Hampton director-public relations.

MT
The development and operation of European satellite positioning system Galileo will create "some estimated 100,000 new jobs, and an equipment and services market of some EUR9 billion per year by 2010," the European Association of Aerospace Industries said Friday in Brussels. European transport ministers are expected to confirm the launch of Galileo at their meeting tomorrow in Brussels.

Staff
Aircraft Operating Cost - Regional Jet Third Quarter 2001 Dollars Per Block Hour Crew Fuel/ Cost Oil Rentals Deprec. Insurance Dornier 328Jet $233 $167 $272 -- $8 Air Wisconsin $233 $167 $272 -- $8 ERJ 135 $290 $294 -- $170 --

MT
The European Union transport ministers tomorrow are expected to support a two-month extension of government coverage for airlines' war and terrorism risk insurance. The current system is scheduled to expire March 31. "The European Commission would see no obstacle to a two-month prolongation of the existing system if the [EU] states want it," a spokesman for Transport Commissioner Loyola de Palacio said Friday. The fact that the U.S. extended the duration of a similar scheme until May, 20 is expected to overcome the hesitations of reluctant EU member states.

Staff
The industry could "eke out a net profit of $270 million by the September quarter" if current financial trends continue, predicts Merrill Lynch analyst Michael Linenberg.

DM
TWA pilots, represented by the Air Line Pilots Association, are asking the National Mediation board to investigate the representation election process involving ALPA and American's Allied Pilots Association. TWA's ALPA Master Executive Council wants NMB to hold off certifying the election results pending an investigation into alleged interference by AA. ALPA accuses AA of entering an agreement with its Allied Pilots Association by granting "substantial windfall gains in seniority" to AA pilots at the expense of TWA pilots.

Staff
Delta Connection is offering new service between Halifax and Boston, starting May 1, with three daily roundtrip regional jet flights. Service will be operated by Atlantic Coast Airlines using Fairchild Dornier 328JET regional jets.

Staff
Thunder Aviation appointed Kevin Breeden manager-maintenance sales.

Staff
American Trans Air named Chet Fuller to the newly created position of VP-operations productivity and analysis. Fuller most recently was director-strategic planning.

Staff
SAS plans to introduce its new website on May 28, offering new booking capabilities and the ability to check in online. The carrier's aim when designing the new site was "simplicity and speed." The web check-in service can be used 22 hours before departure and enables customers to select their seat assignments at the same time.

Staff
The House will seek $10 million in funding for NASA's Quiet Technology Program for Stage 4 aircraft, a boost of 50%, said Mark Kirk (R-Ill.). Kirk and Rep. William Lipinski (D-Ill.), both on the House Transportation aviation subcommittee, plan to attach the request to Lipinski's version of Sen. Richard Durbin's Chicago O'Hare expansion bill, Kirk told The DAILY.

Staff
Worldspan signed an agreement with Cayman Airways to host a reservations and departure control system for the airline. Worldspan also is introducing electronic ticketing for Cayman Airways flights. The agreement extends a partnership that started in 1996.

Staff
FlightSafety International named George Ferito manager-Fort Worth Learning Center and Mike King manager of the company's two training centers at St Louis Lambert Airport.

Staff
America West last week eliminated its base travel agent commissions for tickets in the U.S. and Canada but unveiled an alternative pay-for-performance program to appease agents. Like all other U.S. majors except Southwest, AWA's base commission elimination takes effect immediately and applies to all tickets except those purchased outside the U.S. and Canada. At the same time at it cut base payments, AWA started the "Agency AWArds" program for travel agents. The program is similar to frequent flyer plans, with agencies categorized and compensated based on performance.

SB
New cockpit door standards adopted by ICAO suggest that regulators mandate new, stronger doors by Nov. 1, 2003, but FAA fully expects airlines flying into the U.S. to comply with an earlier deadline established for U.S. carriers.

Staff
Last year was the worst for air cargo since 1970, Boeing Cargo Marketing Regional Director Tom Crabtree said, citing a deep dip in demand that was exacerbated by the post-Sept. 11 downturn. Global cargo traffic fell 9.7% last year, with major routes to the U.S. posting double-digit declines.

Staff
AV-EXnamed Chuck Ross manager-quality control of inspection, shipping and receiving.

DM
United plans to recall 1,300 employees in the ramp service, customer service and cabin service categories in hub markets. Pilots said they have not been informed whether they will be part of the recall, but rumblings of more pilot furloughs continue. The recall will affect Chicago, Denver, Los Angeles, San Francisco and Washington Dulles. The airline said earlier this month it planned to recall employees to meet its schedule in June (DAILY, March 13). United also will recruit about 900 new hires.

Staff
President Bush last week submitted a $27.1 billion emergency FY 2002 supplemental appropriations budget request to the Office of Management and Budget that seeks $4.7 for DOT, including $2.4 billion for the TSA for the rest of FY 2002.

SB
KLM Engineering&Maintenance (KLM E&M), pushing hard to expand its third-party revenues, last week signed its most lucrative maintenance contract ever, a six-year, EUR200 million (US$176 million) deal covering 12 Virgin Atlantic Boeing 747-400s. Work will include airframe, engine and component maintenance, as well as engineering modifications, interior work and painting. The deal extends a relationship that began eight years ago, when Virgin first went to KLM E&M for maintenance, repair and overhaul (MRO) services.

Staff
FAA selected Adacel Systems Inc. to upgrade eight 3-D visual simulators to air traffic control training simulators at the agency's Mike Monroney Aeronautical Center.