Aviation Daily

Staff
Emirates plans to use Oracle's Human Resource Management system to connect its employees in the Middle East with those at remote outstations. The company will use Oracle HRMS to move recruitment and payroll functions for 13,500 employees to the Internet.

Staff
Pool of possible Bush administration candidates for DOT secretary has expanded to include Gov. Bill Graves (R-Kansas); Elaine Chao, DOT deputy secretary during the elder Bush's administration; Sen. Spencer Abraham (R-Mich.) and Carl Vogt, former NTSB chairman, who was strongly endorsed by industry for FAA administrator when President Clinton filled the five-year post in 1997.Jane Garvey's term as administrator expires in August 2002.

Staff
Connecticut Better Business Bureau yesterday reinstated Pricline.com as a member in good standing, after it was removed in September. Priceline also named former New York Attorney General Robert Abrams as an advisor to "provide ongoing feedback on the company's products and practices." Priceline claims its airline product now has faster response times, faster connections and better itineraries.

Staff
Ryanair plans to launch a fourth daily service from Shannon to London Stansted, starting Jan. 11. Following the demise of AB Airlines, the withdrawal of Pakistan International Airways and the closure of Virgin Express at Shannon on Jan. 15, Ryanair CEO Michael O'Leary confirmed that the airline and its low fares "are here to stay in Shannon, today, tomorrow and forever."

Staff
Boullioun Aviation Services, one of the world's largest aircraft operating lessors, will be acquired by Westdeutsche Landesbank Girozentrale (WestLB). The deal is conditional, pending regulatory approvals, and is scheduled to be finalized in first quarter 2001. Boullioun currently is owned by Deutsche Banc, which acquired it from Sumitumo Trust in October 1998.

Staff
British Airways fired two pilots for drinking alcohol just hours before a flight. The crew were filmed drinking by a British television station that was shooting a documentary series. A third pilot resigned and four more are awaiting disciplinary hearings.

Staff
Continental Express will begin twice daily Madison, Wis.-New York LaGuardia service Jan. 31. The regional carrier acquired 20 AIR-21 slots in the LaGuardia lottery Dec. 4. Service will be aboard the Embraer ERJ-135 regional jet.

Staff
Trans World Express is adding regional jet service from St. Louis to Pensacola, Fla., Feb. 10. TWE will offer three daily roundtrips operated by partner Chautauqua Airlines using 50-seat Embraer ERJ-145s.

Staff
Lufthansa is understood to be close to ordering the newly launched Airbus A380. Industry sources tell The DAILY that the two parties have been in close contact the past few days but have failed to reach an agreement in time for Tuesday's launch of the 555-seat superjumbo. Lufthansa is interested in both the passenger and freighter version of the A380.

Staff
Legend Airlines plans to resume service between Jan. 15 and Jan. 20 with the help of a debtor-in-possession (DIP) loan, subject to approval by the bankruptcy court an a DOT fitness review, Legend CEO Allan McArtor told The DAILY yesterday. McArtor declined to say how much money the loan will provide but said it would be "a substantial amount" that should carry the airline through to profitability in 2001. Legend's hearing with the bankruptcy court is scheduled Friday, Dec. 29.

Staff
Volcanic eruptions in Mexico are posing dangers to airports. Mexico City's airport appears to have minimal effects because winds were blowing south, directly opposite the capital. Hermanos Serdan Airport in the state of Puebla had to close Wednesday after its runways were deeply covered with volcanic ash.

Staff
Flight attendants at US Airways Express carrier Piedmont Airlines yesterday voted overwhelmingly to strike. Ninety-nine percent of ballots cast by members of the Association of Flight Attendants supported the job action, saying it has been nearly two years since their contract became amendable and negotiations have stalled.

Staff
The European Commission yesterday gave the green light to the Italian authorities' new traffic distribution rules for the Milan airport system. "This responsible decision will facilitate the full development of Malpensa and of the airport system of Milan that is so necessary to the development of this part of Europe, in compliance with the Community rules, along the lines of other major European airports," EU Transport Commissioner Loyola de Palacio said.

Staff
Ranking House Transportation Democrat Rep. James Oberstar (Minn.) yesterday predicted that approval of the proposed United-US Airways merger would make the merged airline so dominant that other leading airlines would have no alternative but to merge and merge quickly to compete with the dominant "New United." He predicted mergers of competitors would take place "within weeks."

Staff
Grupo Aeroportuario del Sureste (ASUR), the operator of nine airports in the southeastern region of Mexico, launched the first-ever international tender for retail concessions at several of its facilities. The agreement will cover ASUR's three largest airports -- Cancun, Cozumel and Merida -- for 10 years of operation.

Staff
US Airways' stock plummeted 18% yesterday on heavy volume due to renewed investor concern that the merger with United may face increasingly high hurdles. The airline's stock gave back almost all of its December gains in one day yesterday. Shares grew nearly 23% since Dec. 1, closing at $47.69 Tuesday, but yesterday closed at $38.94, down $8.75 or 18.3%. The Justice Department has the final say on the merger, and will soon begin negotiations with the two airlines discussing how much assets will need to be sold to get the deal approved.

Staff
European Union Transport Commissioner Loyola de Palacio yesterday asked EU member states to give her a brief to start talks on a multilateral air transport agreement with the U.S. by June 2001. Addressing transport ministers in Brussels, she said, "Otherwise, our credibility in the U.S. will be severely affected." Most EU member states and air transport stakeholders welcome the project to create a Transatlantic Common Air Transport Area (TCAA), said the French government, which was chairing the gathering, in a statement circulated after the meeting.

Staff
The U.S. government needs to help identify choke points in the air traffic system and consider new ways of encouraging communities to solve problems with crowded skies, Memphis Airport CEO Larry Cox told The DAILY this week. Cox likened air traffic to "a highway at 30,000 feet," noting that there is "nobody in charge, there's no quarterback" of capacity at the federal level. "We need a Capacity Czar," he said, noting that FAA and the government could be "more of a catalyst for advocacy," in streamlining the processes needed to build and enhance airport facilities.

Staff
Autorita Garante della Concorrenza e del Mercato, the Italian competition authority, said yesterday in Rome that it was opening an investigation into fuel surcharges introduced by Italian airlines. Alitalia, Air One, Air Europe, Volare Airlines, Meridiana and Air Dolomiti implemented a 10,000 Italian lire (US$4.6) fuel surcharge on all flights in June and increased that to ITL24,000 ($11) as of Sept. 1.

Staff
DC Air Chairman Robert Johnson yesterday met with Justice Department officials to present his business plan to regulators and explain why DC Air will be a "very viable competitor." DOJ still is evaluating the merger and despite yesterday's questions posed by a General Accounting Office report, Johnson told The DAILY he "still thinks this merger will be approved." Johnson would not comment if or how much United and US Airways would have to give up to gain approval, only noting that DC Air has committed to fly the same routes US Airways serves.

Staff
FedEx Corporation revenue rose 7% in the second quarter 2000 compared to the same 1999 period, to $4.9 billion. Operating income gained 13% to $345 million and net income rose 13% to $194 million. Operating expenses were $4.5 billion, up 7%.

Staff
FAA has determined, following an initial safety assessment, to give Greece a Category 2 rating, finding that the country's civil aviation authority does not meet International Civil Aviation Organization safety standards. FAA's determination comes as a result of a review under the agency's international aviation safety assessment (IASA) program, by which FAA determines, with the cooperation of the foreign authority, whether the authority adheres to ICAO safety standards and practices.

Staff
LanChile yesterday took another step to boost its cargo network by purchasing a 25% stake in Mexico's MasAir for $5.1 million and a 25% stake in Miami-based Florida West International Airways for $900,000.MasAir is the largest international freight operator in Mexico.

Staff
Domestic airfare hikes recently instituted in Argentina -- 15% on average and some as high as 20% -- are dampening market enthusiasm at the height of the holiday travel season, analysts say. Potential travelers face the same situation that prevailed 10 years ago in Argentina, when it was cheaper to fly abroad than within the country.