Aviation Daily

Staff
FAA has ordered inspections for discrepancies in the cargo loader system in the forward and aft cargo compartments of Boeing 757-200 aircraft. FAA said the discrepancies, if not corrected, could result in reduced structural integrity of the fuselage and consequent cabin depressurization. The order becomes effective Oct. 26.

By Denise Marois, [email protected]
Vanguard Airlines' new Kansas City-Los Angeles service, initiated yesterday, is the fourth and final destination the carrier plans to add this year, new CEO Jeff Potter told The DAILY. So far this year, Vanguard has added New Orleans, Pittsburgh and New York-LaGuardia to its route system in hopes that a modernized fleet and an influx of investment capital will mean more, longer routes next year. VP-Market Planning Greg Aretakis said he wants Vanguard to boost its east and west flying, adding destinations such as Boston, Washington or Philadelphia.

Staff
FAA has granted UPS Aviation Technologies approval to begin producing and selling the first certified Automatic Dependent Surveillance-Broadcast (ADS-B) system for passenger and cargo jets, and UPS Airlines said it will install the systems on its 230 aircraft over the next two years. FAA and the Cargo Airline Association will show new applications of ADS-B technology at an open flight demonstration Oct. 30 at the Kentucky Air National Guard facility in Louisville, Ky.

By Sean Broderick
Industry officials report that near-term aircraft electrical system safety research goals set several years ago are on track, but some caution that long-term plans must be firmed up quickly to keep the momentum building. This month, several significant target dates in industry's non-structural system program will be met. Boeing is expected to begin flight tests of its arc fault circuit interrupter (AFCI) design in 717s and 737s before the month is out, and it hopes to have them on the production line by 2002. FAA and the U.S.

By Steve Lott, [email protected]
US Airways shareholders overwhelmingly approved the merger with United yesterday, but Continental CEO Gordon Bethune remains baffled that the two carriers remain committed to the overall deal and will not consider his offer to purchase the assets planned for DC Air. Even though the United-US Airways deal and plan to start DC Air were first announced in May, Bethune waited until this month to bid for the DC Air assets and slots at Washington National because he had serious doubts that United would stick by its plan for the acquisition.

Staff
Pilots from the SkyTeam Alliance, comprising Delta, AeroMexico, Air France and Korean Airlines, have agreed to form the SkyTeam Pilot Alliance, representing 16,000 flight crewmembers. The new organization will act as advocate for its members, as well as ensure the highest aviation safety standards.

Staff
House Transportation Committee Chairman Bud Shuster (R-Pa.) said yesterday that US Airways has to make a decision on whether to accept Continental's offer to buy US Airways-owned assets in "a global context," and not simply on dollars. Continental has offered to pay $215 million in cash to purchase 119 carrier slots and 103 commuter slots at Washington National Airport. The price is more than 50% over the $141 million that BET executive Robert Johnson, who also sits on US Airways' board, would pay.

Staff
AIRCRAFT TRANSACTIONS FOR JUNE 14 - JULY 10, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Raytheon Commutair Champlain Beech 1900D Enterprises PT6A-67D Raytheon Commutair Champlain Beech 1900D Enterprises PT6A-67D

Staff
FAA this week denied a request by the Air Tour Association for a stay of rules limiting the number of commercial air tour operations by each operator and redefining the special flight rules area for Grand Canyon National Park. FAA published the two final rules April 4, and in May the association asked for a stay pending a review of the two rules by the U.S. Court of Appeals for the District of Columbia. In denying the stay, FAA said it did not believe the association could prevail.

Staff
Legend Airlines' filing with DOT last week shows the privately owned carrier lost $10.8 million in the second quarter, but Legend CEO Allan McArtor and analysts agree that is not unusual for a startup. Legend expects to take possession of its seventh DC-9 aircraft in two weeks, and McArtor said load factors overall are in the mid-50% range, on track with the company's business plan. He said he expects to see profitability early next year "which is what our business plan called for."

Staff
British Airways' decision to suspend its Kuala Lumpur-London service April 1 paves the way for Virgin Atlantic to use its rights to operate the route with its own aircraft. Virgin currently has code-share services with Malaysia Airlines on the twice-daily Boeing 747-400 flights. BA's pulling out also opens the door for stepped-up competition between MAS and Singapore Airlines to capitalize on the heavier demand for seats on the route. SIA, which operates three flights a day using 747-400s, offers attractive fares.

Staff
Carrier Profile - Japan Airlines IATA Reported Operations, Fleet and Employment International Domestic All Services Services Services Worldwide IATA RPK Carrier Ranking 5 10 9 Carrier RPK Distribution 79.1% 20.9% 1999 Systemwide Operating Statistics Scheduled Services International Domestic Total

Staff
A lottery would be a fair way of allocating slots at New York LaGuardia Airport, William De Cota, aviation director for the Port Authority of New York and New Jersey, said this week at the International Transportation Symposium in Washington. He noted that majors have applied for about 80% of the LGA slots available under AIR-21.

Staff
Rep. Bill Lipinski (D-Ill.), ranking member of the House aviation subcommittee, this week introduced a bill to increase the minimum civil and criminal penalty to $1 million for illegally transporting chemical oxygen generators on passenger aircraft. The bill was co-sponsored by Rep. Peter DeFazio (D-Ore.) and Jerry Costello (D-Ill.). Lipinski cited news reports that there have been 60 incidents involving 24 airlines "in which oxygen generators were illegally shipped as cargo on passenger and cargo aircraft between May 1996 and June of this year," he said.

Staff
Carrier Profile - Lufthansa IATA Reported Operations, Fleet and Employment International Domestic All Services Services Services Worldwide IATA RPK Carrier Ranking 2 26 7 Carrier RPK Distribution 93.3% 6.7% 1999 Systemwide Operating Statistics Scheduled Services International Domestic Total

Staff
Ministers from over 70 countries agreed to a joint declaration of principles on developing global transportation in the 21st century at the close of this week's International Transportation Symposium in Washington, an event that included successes and disappointments for host DOT Secretary Rodney Slater. The leaders committed to keep safety and security as the top transportation priority and cooperation as well as to collaborate on economic and technological advancements. The U.S. signed agreements with Morocco, Rwanda and Malta, raising to 50 the total of U.S.

Staff
AirTran Airways yesterday, on the first anniversary of service with its Boeing 717-200 aircraft, said it will begin low-fare service Dec. 12 between Grand Bahama Island and Atlanta, its 33rd destination. CEO Joseph Leonard said the 717 "has helped us to save more than $3 million in fuel costs in its first year of service. We anticipated 18% better fuel efficiency versus the DC-9, but the 717 actually averages 24% increased efficiency."

Staff
AeroMexico added a twice-weekly direct flight between Atlanta and Acapulco via Monterrey, Mexico, with SkyTeam partner Delta. The service, slated to begin Nov. 1, will be operated with AeroMexico MD80s. The new flight will cater to business travelers to industrial Monterrey and vacationers to Acapulco.

Staff
House this week joined the Senate in approving the Visa Waiver Permanent Program Act. Ed Bolen, president of the General Aviation Manufacturers Association, said business aviation and charter operators "will now have the same flexibility provided to the commercial air carriers."

Staff
Competition guidelines should be implemented to provide more low-cost competitors to major airlines, which can unilaterally impose fuel surcharges on business travelers, their most profitable customers, chairman of the Business Travelers Coalition (BTC), told a House panel this week.

Staff
DOT's decision on new service to China for U.S. carriers bidding for one new designation and 10 additional frequencies will come "relatively soon," DOT Secretary Rodney Slater said yesterday. Slater, who meets next week with his Chinese Transport Ministry counterpart, said DOT's announcement of the award would not be made until after that meeting, which is expected to include discussions on future expansion of U.S.-China market access. The decision was originally expected by the end of September. Rep.

Staff
Carrier Profile - British Airways IATA Reported Operations, Fleet and Employment International Domestic All Services Services Services Worldwide IATA RPK Carrier Ranking 1 37 5 Carrier RPK Distribution 97.0% 3.0% 1999 Systemwide Operating Statistics Scheduled Services International Domestic Total

Staff
Air Canada has ordered 12 Airbus A321s and two additional A319s as part of its growth and fleet renewal. It now operates 35 A319s and 47 A320s. The carrier will take delivery of the latest aircraft ordered beginning next October. It will be the first A321s for the airline. CEO Robert Milton said recent labor agreements "provide us with the necessary stability to proceed with the company's growth. This is the first of a series of announcements on fleet expansion and renewal." Air Canada will replace older generation aircraft, such as the DC-9 and Boeing 737.

Staff
US Airways pilots this week didn't get to hear whether CEO Rakesh Gangwal has a contingency plan in place if the merger with United doesn't go through. Gangwal was expected to talk about the plan at a special meeting with pilot leaders this week (DAILY, Oct. 11) but didn't. Master Executive Council Chairman Chris Beebe said pilots are worried by plans to create DC Air which it called a non-union, potential alter ego airline, and to reduce the Airbus delivery schedule and overall fleet plan for 2001.

Staff
Lufthansa Technik, which already provides maintenance, repair and overhaul services for major North American carriers such as American, Atlas, Northwest and United, is increasingly buying into companies and setting up new companies in the MRO sectors for corporate/VIP aircraft. It acquired BizJet International in May and Hawker Pacific Aerospace in September. LHT also has acquired 20% of spare parts manufacturer Helco Aerospace Holdings and 40% of AirLiance Materials, in which partners United and Air Canada also hold interests.