Aviation Daily

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Mesa, which still has about 300 pilots and 200 other staff on furlough, has begun recalling personnel and is especially looking for employees for its Phoenix office, CEO Jonathan Ornstein told The DAILY. The company has new-hire flight training classes going on and pilot attrition is down to zero.

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Teamsters on Friday lost its campaign to unionize AirTran's customer service, ramp and reservations agents. The union received 33% of the votes out of 1,731 employees polled.

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The Myanmar government has approved construction of the country's third international airport in Bago, 50 miles north of the capital, Yangon. Bureaucracy and lack of funds had riddled the plans, which have been in the works since 1994. Cost is expected to escalate due to the delay. Earthworks have been completed, and construction is slated to start in the second quarter. Construction would take four years, with operations targeted for early 2007.

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TRAFFIC DATA FOR DECEMBER 2001 RPMs Change ASMs Change In From In From Load Airline Millions 12/00 Millions 12/00 Factor Express 1 66.8 +57.1% 121.9 +64.4% 54.8% Midwest Express 145.2 -6.8% 240.6 -11.1% 61.7% Skyway 12.9 45.2% 25.7 +28.5% 50.3%

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Aero Club of Washington luncheon will feature FAA Administrator Jane Garvey, speaking on "The New World of Aviation Security," at its Jan. 22 luncheon. For reservation information, call 703-327-7082; web site address is aeroclub.org.

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FAA has extended through Feb. 14 the comment period for its November NPRM on Boeing 737 rudder upgrades. Boeing requested the 30-day extension in part so operators would have more time to assess the rule's impact.

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Last week's statement by Ecuador's Civil Aviation Agency (DAC) that it would not oppose draft legislation before the National Congress to allow the country's two major cities, Quito and Guayaquil, to collect direct fees and taxes in order to improve, maintain and expand their respective airports, has sparked a national debate about the DAC.

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50 years ago Jan. 14, 1952: Customs and immigration pre-clearance experiment begins with inspections at Toronto of passengers on AA's Buffalo and New York flights, with IATA urging its institution at major traffic centers like London and Paris. 40 years ago Jan. 17, 1962 : Sen. Olin Johnston (D-S.C.) urged Congress to bar drinking on flights operating within U.S. territory, saying first-class passengers are bearing "the expense of the distribution of free cocktails...to others." 30 years ago

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Oman has become the first country in the Middle East to privatize its airports, starting with Seeb Airport in Muscat and Salalah. The Omani government has handed over the management of both facilities to the British Airport Authority-led consortium, which bagged the deal. The other parties in the consortium are Bahrain Trading Co. of Oman, which holds 35%, Omani government 25%, BAA 25% and ABB Equity Ventures 15%.

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New York jet fuel spot prices ended last week at $0.60 per gallon, up 5% from the beginning of the week and down 31.7% from a year ago, according to Deutsche Banc Alex. Brown. Crude oil prices were trading slightly above $20 per barrel.

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Crossair once again faces an important and potentially dangerous legal dispute in France after a Paris court ordered the seizure of CHF2 million (US$1.2 million) in income from tickets sold in the country. The decision is part of an ongoing legal campaign by SAirGroup's former French subsidiary AOM Air Liberte, which claims CHF670 million ($403 million) in damages and other payments from Crossair.

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Northwest recorded about $600 million in sales through its own web site in 2001, representing about 11% of total domestic sales. When sales through third party sites are included, the percentage of Internet sales rises to 20% of its total, according to Al Lenza, VP-distribution and e-commerce.

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J. Dawson Ransome, 81, founder of Philadelphia-based Ransome Airlines, died Jan. 9 in Ocala, Fla. Ransome was a civilian flight instructor for the Royal Canadian Air Force and in 1944 was commissioned as an officer in the U.S. Army Air Corps. He was awarded the Air Medal and Distinguished Flying Cross. He founded Ransome Airlines in 1957 and began scheduled service between Philadelphia and Washington. The airline later operated as USAir Express, Delta Connection and Pan Am Express. He retired from the airline in 1986.

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Air Canada today plans to resume service between Montreal and Washington National. The carrier will operate two daily flights using 50-seat Canadair Regional Jets. The carrier said it is fully compliant with the new security measures, including the presence of armed Royal Canadian Mounted Police agents. Air Canada resumed service between Toronto and DCA on Nov. 12 and currently offers five daily round trip flights six days per week and four on Sunday.

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Pilot hiring slowed dramatically in 2001 due to the weak economy and the events of Sept. 11, according to AIR Inc. The industry hired 12,766 pilots last year compared to 19,030 the previous year. The 14 major U.S. airlines did not hire any pilots in December. Majors hired 3,318 in 2001 versus 4,026 for national carriers - both far lower than in 2000. AIR is predicting just 6,000 new pilot jobs this year.

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United and its International Association of Machinists last week testified before the Presidential Emergency Board, with United outlining its efforts to cut costs, according to a company message to employees. A U.S. District Court Judge Friday refused IAM's request to block the PEB, which stops mechanics from going on strike. IAM spokesman Frank Larkin said he was unsure whether the union would appeal.

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The nine largest U.S. airlines are expected to post a $3.3 billion net loss for the fourth quarter, according to Merrill Lynch estimates. The loss would be the second worst on record, topped only by a $3.7 billion loss in fourth quarter 1990. American and Continental on Wednesday will kick off this quarter's financial reports.

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Mesa Air Group has set up a new investment entity, UFLY, to purchase stock in US Airways, according to the company's December filing with the Securities and Exchange Commission. UFLY was established in September to make "strategic investments in US Airways Inc.," the company said, adding that it will own a 50% share of UFLY and that Mesa CEO Jonathan Ornstein will be a shareholder, owner and managing member. Ornstein said Mesa's investment in US Airways is less than 5%.

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An ICAO official, citing their critical safety role, says that "establishment of licensing standards for cabin crew by ICAO cannot be ruled out." It wants to establish a panel to review flight crew licensing and training standards, and it has scheduled a conference Feb. 19-20 that is expected to endorse security measures developed since Sept. 11.

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Seven months since its relaunch, Thailand's second national flag carrier Angel Air (AA) plans to acquire more aircraft and expand its network. Currently operating with three Airbus A300-600Rs wet-leased from China Northern Airlines to Hong Kong, Macau, Osaka and Phuket, AA plans to fly to Seoul and Taipei, in the second quarter, to Tokyo, Sendai, Toyama, Fukuoka and Sapporo in Japan in the third and resume its Bangkok-Chengdu service.

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Star alliance CEO Jaan Albrecht plans to be in Miami tomorrow to break ground on MIA's $780 million south terminal program. The alliance notes that the 1.3 million square foot concourse "J" will be the first dedicated Star concourse in North America. Slated for completion in 2005, will add 15 gates and also will house Delta and its SkyTeam partners.

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Cargolux last week started weekly service to Penang, Malaysia, with a Boeing 747-400 freighter. Cargolux has fifth-freedom rights out of Penang and now offers service to Australia and New Zealand. The airline plans to add a second weekly flight in the near future.

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Hainan Airlines recently took delivery of its first three Boeing 737-800s with blended winglets. Hainan is the first Asian airline to operate the 737-800 with winglets. Boeing claims that the change in aerodynamics reduces drag and boosts fuel efficiency. Including the new airplanes, Hainan operates 10 737-800s, seven 737-400s and five 737-300s.

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Official figures have confirmed that domestic airline traffic in Brazil increased 8.1% in 2001 from the previous year, with TAM grabbing the lion's share of the market at 36.68%, followed by Varig with 28.3%, VASP 14.1%, Rio Sul, 8.9%, Gol 8.1%, Nordeste 3.2% and others 1.5%. International traffic was up 6% for the year. Market share was Varig 82.3%, TAM 17.7% and others 9.9%. At the beginning of 2002, carriers were jockeying for position to take advantage of the upward domestic trend.

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Brazil will subject its troubled airlines to an in-depth study before granting any government aid, according to a December decision by Minister of Development and Trade Sergio Amaral. The review, to be conducted by the National Bank of Economic and Social Development (BNDES), is expected to be ready by mid-February at the latest. Airlines will submit information to the National Civil Aviation Council (CONAC), which will pass it on to BNDES.