Aviation Daily

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Worldspan and Priceline.com signed a long-term worldwide technology agreement extending a partnership that they started in 1998. The new deal makes Worldspan the preferred global distribution system powering the Priceline.com travel pricing and reservations service. Worldspan also will provide Priceline.com with "substantial product development resources

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Aviation Sales Co.'s Timco division is teaming up with aircraft interiors specialist AIM Aviation, Inc. to offer operators customizable flight deck security enhancement kits. Renton, Wash.-based AIM is making the doors, while Timco's Engineered Systems Division is handling the door-surround as well as keyless entry systems and other options that will be available. Timco will get the kits approved with supplemental type certificates issued under its FAA-assigned designated alteration station authority.

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New York LaGuardia Airport's on-time performance for operations by the 11 largest carriers nearly doubled in the past year thanks to slot restrictions, improved air traffic control flows and reduced airline schedules. According to DOT's Air Travel Consumer Report for December, issued yesterday, LGA posted an on-time record of 89.7% in December 2001 for 7,323 arriving flights, nearly double its last-place performance in December 2000, when 46.6% of 9,412 flights arrived on time.

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American's leader does not expect the airline to reach profitability in the near term, even though demand and revenues continue to improve. CEO Don Carty told employees in an internal message that advance bookings for February and March "are looking good" and revenues "continue to inch upward." Because of continual fare sales, however, "we're still unfortunately losing money daily," Carty said. "We do have a long way to go before we get back to profitability. But we will get there."

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Air Transport Association Monthly Airfare Report December 2001 Based on a 1,000 Mile Trip First/Business Coach Average Annual Average Annual Domestic U.S Fare Change Fare Change January $254.22 5.3% $132.11 3.6% February $258.11 0.5% $134.84 0.6%

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A pilots' strike at Aer Lingus, scheduled on Feb. 11, was called off yesterday in Dublin after the airline agreed to withdraw compulsory redundancy notices to 10 pilots. Carrier management and Irish pilots union IMPACT agreed to enter an arbitration procedure to work out a solution for the reduction of Aer Lingus's cockpit staff by 80 pilots, of a total of 530. The ailing carrier is attempting to push through a drastic rescue plan aimed at cutting annual costs by EUR190 million.

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LastMinuteTravel.com last week announced a recapitalization and reorganization program, paving the way for a new strategy led by outside investors. Alan Greenberg, chairman of Greenberg Ventures LLC, a venture capital firm specializing in media and entertainment services, will direct the company as CEO and chairman. Greenberg was the founder and chairman of Greenberg News Networks Inc., a company sold in 1999 to Healtheon/WebMD.

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DOT's fiscal 2003 budget request of $59.3 billion includes $4.8 billion for the first full year of funding the Transportation Security Administration and represents an 8% overall increase when adjusted for legislatively required reductions in highway spending levels, DOT Deputy Secretary Michael Jackson said as he released the figures. The TSA budget includes $2.2 billion in passenger and air carrier fees -- the $2.50 security fee per enplanement and the contribution by airlines of an amount equal to their 2000 aviation security expenses.

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European Union Transport Commissioner Loyola de Palacio said the European Commission is considering anti-dumping measures against non-EU countries that subsidize their airlines. In a speech over the weekend at New York's World Economic Forum, de Palacio recalled that the EU "expressed its concern about the consequences" of the $15 billion aid package voted by the U.S. Congress to compensate U.S. airlines for losses incurred due to the Sept. 11 attacks. Unfair Practices

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Transportation Security Administration (TSA) will deploy teams to 15 U.S. airports of various sizes in the coming weeks to "map" security processes and procedures at each facility. Once analyzed, TSA officials hope the information will help them craft plans on how to roll out new, more stringent security measures without putting too much burden on the system. TSA will use one of the 15 airports -- Baltimore/Washington International -- to test potential improvements in a real-world environment.

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FLEETWATCH - VARIG Aircraft January January 1997 2002 727-100C/-100F 5 5 737-200 / F 18 12 737-300 25 36 737-400 0 4 737-700 0 5 737-800 0 2 747-300 3 0 747-300 SCD 2 0 767-200ER 6 6

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U.S. regulators released the long-anticipated proposal to create a series of requirements tailored, for the first time, specifically for the "light-sport" aircraft. The proposal provides rules for producing, piloting and maintaining light-sport aircraft, which the FAA said includes light airplanes, gliders, balloon, powered parachutes, weight-shift-control aircraft and gyroplanes.

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A wing-tip vortex from a Boeing 747 may have hit wind shear and intensified enough to contribute to the upset that doomed American Airlines Flight 587, a scientist from Canada's National Research Council (NRC) theorizes. NRC scientist Miroslav Mokry cautioned that the idea is merely a possible explanation for why a seemingly stable aircraft could suddenly encounter forces strong enough to rip off a piece of primary structure -- in this case, the aircraft's tail.

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TransMeridian Airlines plans to add two Boeing 757-200 to its fleet by June. The new aircraft will be leased from Pegasus Aviation and will be marketed to U.S. tour operators. TransMeridian currently operates a fleet of five aircraft -- two Super 727s and three 727-200 Advanced aircraft. The Atlanta-based charter carrier provides flights throughout the Americas and Caribbean.

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Brussels Airport International Co. confirmed yesterday that it discovered anti-Semitic messages planted in the baggage of an El Al flight departing from Brussels on Jan. 3. A similar incident took place last September, after the terrorist attacks on the U.S. The airport company said it "condemns all racist acts" and has taken measures to identify the culprits.

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Midwest Express flight attendants, represented by the Association of Flight Attendants, said yesterday they had requested release from mediated contract talks with the airline. The National Mediation Board has been mediating the talks since October 2000, AFA said. If the NMB finds that negotiations are at an impasse, it will proffer arbitration to the parties to resolve their differences. If either party rejects arbitration, both parties will be released from mediation.

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Sabre this week is expected to report that it has installed the newest version of its AirPrice fares management system with three U.S. major airlines, and the carriers are already seeing benefits, the company said. Version 6.0 of AirPrice was first released last summer, but the airline users are now starting to report their results. Sabre believes the new version boosts the speed of airline fare pricing analysis and calculations process by up 25%.

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Lockheed Martin Air Traffic Management will provide seven air traffic control automation systems to China. Under a $10.7 million contract with INCOM, a subsidiary of China National Instruments Import and Export Corp., the company will tailor its SkyLine system for Chinese airspace.

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Northwest, through its regional operators, is adding flights and replacing some turboprop service with regional jets. On April 7, Express 1 will convert early afternoon departures in each direction on its Detroit-Flint route from the Saab 340 turboprop to the 50-passenger Canadair Regional Jet. On May 1, it will add RJ service to Flint on two flights -- the evening Detroit-Flint departure and the morning Flint-Detroit departure will both upgrade from the Saab to the 69-passenger Avro Regional Jet.

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General Aviation Manufacturers Association named Jeff Sural general counsel and association lobbyist. He succeeds Darby Becker, who joined the Washington office of GAMA member United Technologies.

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Delta on Thursday will open a temporary "Welcome Center" in its Salt Lake City maintenance hanger to help the movement of passengers through the airport during the winter Olympics. The center, modeled after a similar facility used during the 1996 Atlanta Summer Olympics, will focus on the Games' sponsors and suppliers. During normal operations, Delta moves about 24,000 passengers daily into the Salt Lake City Airport, of whom 65% connect to other flights. Due to the Olympics, which begin Friday, normal passenger travel to the city is expected to nearly triple.

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Irish low-fare airline Ryanair continues its expansion with the introduction of 11 new routes. It will start services from London Stansted to Eindhoven, Netherlands; Friedrichshafen, Germany; Graz and Klagenfurt, Austria; Newquay, Cornwall; Rome and Milan, Italy, as well as Montpellier, France, starting April 4. Also, Ryanair launches services from Glasgow Prestwick to Oslo Torp, from Liverpool to Brussels Charleroi and from Brussels Charleroi to Rome.

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American has cut its recommended airport arrival times for domestic departures to 90 minutes for passengers who are checking baggage and 60 minutes for those who are not. International customers should be at the airport two hours prior to departure. As part of its plan to improve its on-time departure rate, American asked that customers be at the gate at least 30 minutes before departure. If a passenger is not at the gate 15 minutes before the departure time, his seat may be re-assigned.

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Gate Gourmet, the world's second-largest airline caterer, yesterday signed a deal to be sold to Texas Pacific Group. The private equity group has entered a period of exclusive negotiations with Gate Gourmet parent Swissair Group. The aviation concern said the transaction is set to be completed by the end of the first quarter. Swissair Group is being dismantled under Swiss "Nachlassstundung" bankruptcy proceedings. Gate Gourmet's annual sales were CHF3.2 billion (US$1.86 billion) in 2001.