Aviation Daily

Staff
Pegasus Aviation is leasing two Boeing 727-200ADV freighter aircraft to Varig. The two aircraft will operate on domestic postal service. Varig now leases two DC-10-30Fs from Pegasus, which labels itself the largest privately held commercial aircraft leasing company.

Staff
British Airways does "not have the right to carry out alcohol testing without renegotiating all employees' contracts," a BA spokeswoman said last week in London. Earlier last week, BA grounded 11 pilots and three cabin crewmembers pending an internal investigation. The move was a response to a documentary scheduled to be broadcast on Thursday by Channel 4 in the U.K., which allegedly reveals a drinking culture among BA flight crews. The makers of the documentary filmed 12 pilots secretly.

Staff
Frontier Airlines has launched "above wing" service at Boston Logan, including ticket counter, customer service and baggage service. Frontier will employ 15 part-time and two full-time customer service agents and one supervisor. Frontier operates two daily nonstops to Boston from its Denver hub.

Staff
Continental wants to buy the assets of US Airways-owned DC Air, but so far neither US Airways nor United has responded to the offer. US Airways plans to sell the carrier to BET.com cable executive Robert Johnson, who also sits on the US Airways board. The sale of its Washington-based assets is part of US Airways' strategy to merge with United.

Staff
The U.S. National Transportation Safety Board will analyze the flight data recorder pulled from the wreckage of the AeroMexico DC-9 that crashed near the Mexico-Texas border Friday, the airline says. Six people on the ground were killed when AeroMexico Flight 250 skidded off the runway while landing at Reynosa, Mexico's General Lucio Blanco Airport Friday afternoon. The aircraft made its approach at about 4:55 p.m. local time with what the airline says was "routine clearance" from air traffic control.

Staff
British Airways last week unveiled a corporate rewards program aimed at small and medium-sized businesses. Named "On Business," the program was created after a nine-month trial period. Every time an employee of the company books an eligible fare with BA, the company earns points, which can be exchanged for a range of business travel rewards, including free flights, Heathrow or Gatwick Express tickets and hotel vouchers.

Staff
The deadline for comments on Shuttle America's proposed Hanscom-LaGuardia service ends next Monday, but FAA already has determined the flights will not negatively affect historic sites near Hanscom Field. FAA put a halt to Shuttle America's planned Hanscom-LGA service in mid September after historical preservationists asked it to further study the impact on local historic sites (DAILY, Sept. 18).

Staff
Overall Percentages Of Reported Domestic Arriving On Time, By Carrier, August 2000 Quarterly 3rd Q 1999 4th Q 1999 1st Q 2000 2nd Q 2000 % (Rank) % (Rank) % (Rank) % (Rank) Alaska 72.0 (8) 69.7 (9) 66.5 (9) 70.9 (7) America West 62.7 (10) 69.2 (10) 64.7 (10) 66.6 (9)

Staff
Revenue management implementation at Virgin Atlantic has boosted revenues by 12%, according to Conrad Clifford, director of commercial planning. The carrier currently uses a PROS Revenue Management system, and Clifford stressed in Houston yesterday that a revenue management department must remain independent to be successful. This task has been a challenge within Virgin Atlantic's organizational structure, which is "in a state of continual flux...constantly restructuring and reorganizing," he said.

Staff
Chinese domestic airlines have come out in defense against the Civil Aviation Administration of China's (CAAC) attack on the carriers that an investigation is under way to determine the cause for losses for the first six months of the year. Last week, CAAC cited poor management and poor marketing as the reasons for losses posted by domestic carriers after the turnaround last year. CAAC also threatened to remove the leadership of airlines that record another loss in the July-December period.

Staff
A survey of 26 corporate travel and purchasing managers on the fuel surcharges imposed by airlines shows a "common theme of distrust," which leads to "lost opportunity of harnessing the voice, resources and political capital of major customers in helping solve important industry problems," according to Kevin Mitchell, chairman of the Business Travel Coalition. Mitchell said he collected the input in support of testimony being developed for House hearings Nov. 11.

Staff
Orbitz yesterday named former Sears executive John Park as its new chief financial officer. Park previously was VP of finance at Sears, Roebuck and Co., managing the Sears Services portfolio of business, which includes the company's online activities.

Staff
Ebookers.com yesterday revealed plans to acquire Flightbookers after a close, four-year working relationship. Flightbookers is one of the 10 largest U.K. travel companies and currently provides travel fulfillment services to Ebookers.com in the U.K. Ebookers.com is the technology and travel spinoff from Flightbookers, which in 1996 became the first travel company to establish an interactive web site in the U.K. A call option agreement for the purchase of Flightbookers was established when Ebookers.com launched its initial public offering in November 1999.

Staff
AirTran's 350 mechanics and inspectors, represented by the Teamsters, ratified a new five-year contract yesterday, the company said. The deal increases wages, benefits and job security and adds an airline-funded defined contribution pension program. The parties also will be entitled to take part in a new apprentice cooperative work study program designed to develop future licensed airframe and powerplant mechanics.

Staff
Vacation packages booked on the Internet will see faster growth over the next five years than online travel in general, according to a recent Forrester Research report. Online travelers will spend $245 million this year buying vacation packages on the web, "impressive," given that only 2% of online travelers have bought packages online, according to analyst Henry Harteveldt. In 2004, he estimates that $721 million worth of packages will be bought online, representing a five-year growth rate of 194%, outpacing the 137% growth rate of total online travel.

Staff
AIRCRAFT TRANSACTIONS FOR JULY 28 - JULY 30, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Boeing China Airlines China Airlines Boeing 747-400F/ CF6-80C2B1F American Eagle Chicago Express Firstar Bank Saab 340B

Staff
Delta and United reportedly are "on the inside" as bona fide buyers of holding company Cintra and its two main assets, AeroMexico or Mexican. Delta is AeroMexico's partner in the SkyTeam alliance, and United is Mexicana's partner in Star Alliance. The government of Mexico announced last week that Cintra will go on the sales block in the first semester of 2001, raising widespread speculation that the U.S. carriers would step forward. International airline analyst Julius Maldutis told Mexican media that AMR Corp.

Staff
The four-airline SkyTeam alliance of Delta, Air France, Korean Air and AeroMexico plans to recruit two more carriers from Asia -- one from China and the other from Southeast Asia. SkyTeam hopes to achieve this within the next six months. "This will then make us a much stronger grouping with a wider coverage in Asia," said an official of an airline member. SkyTeam has identified China Eastern Airlines (CEA) and Thai Airways as future partners.

Staff
Delta has promised to make sweeping changes in the way it handles its drug-testing program after five employees were fired, then offered reinstatement when problems were uncovered in the way the lab performs validity tests. Delta's Air Line Pilots Association union conducted an extensive investigation of LabOne that revealed "seriouxs deficiencies" in tests conducted on alleged substituted urine samples. One pilot and four flight attendants were fired. All have been offered their jobs back but so far none has returned to work, the union said.

Staff
Boeing Business Jets said yesterday it has sold 17 airplanes since it was launched in 1996 as a joint venture with General Electric. Of these, 46 have been delivered and are in service, BBJ President Borge Boeskov told the National Business Aviation Association convention yesterday in New Orleans. The company announces sales once a year at the NBAA convention.

Staff
Brendan Air is asking DOT for a certificate to fly foreign charter air service using Airbus A320 aircraft. Brendan Air's owner, John Mullen, operates Apple Vacations and is a director of Canada 3000, formerly an all-charter airline that has launched scheduled operations.

Staff
Although the work of the European Commission on the problems surrounding air traffic control has been "commendable" so far, the aviation community must come together as a single voice to help find solutions to ATC issues, Barry Eccleston, Fairchild Dornier executive VP, said last week.

Staff
U.S. National Carriers Financial Results Second Quarter 2000 Second Quarter 2000 Operating Operating Revenues Expenses (000) (000) AirTran Airlines $ 160,769 129,147 Aloha 72,340 71,302 Frontier N/A N/A Hawaiian 154,557 146,990

Staff
Wayport appointed David Vucina CEO.

Staff
Lufthansa's CEO Juergen Weber said Friday that the airline will follow a dual-hub strategy in the future, using Munich as well as capacity-constrained Frankfurt. Speaking at Munich airport, where the airline took delivery of its 30th Airbus A340, he made clear that Lufthansa will move growth to where capacity is. Weber stressed that the airline will not wait for Frankfurt airport to be expanded, but rather shift traffic to Munich, which has two runways that can be used simultaneously. A second terminal is under construction and will be opened in 2003.