Aviation Daily

Staff
Delta will begin code-share service between Paris and Nouakchott, Mauritania, with its SkyTeam partner Air France next month. The new service via Paris begins Sept. 25 using an Air France Airbus A310.

Staff
American Eagle plans to start nonstop regional jet service between its Dallas/Fort Worth hub and Fort Smith, Ark., on Oct. 5. The airline will replace turboprops with 37-seat Embraer ERJ-135 regional jets on two of its nine daily flights between DFW and Fort Smith. It will continue to operate the remaining seven daily flights with 34-seat Saab 340Bs. Regional jet service to Madison, Wis., will start Sept. 6.

Staff
Kaman Aerospace this week obtained a three-year, follow-on contract from Boeing, valued at $98 million, to supply structural parts for commercial aircraft.

Staff
The three foreign airlines operating on the Kuala Lumpur-Chennai and KL-New Delhi routes have taken Malaysia Airlines to task for prematurely raising the fare by 22.5% from the current M$1,265 to M$1,550, starting Friday. Air India, Indian Airlines and SriLankan Airlines together with MAS had agreed that the increase would take effect Nov. 1. The other three carriers will adhere to the agreed date. That type of airline-to-airline fare agreement is not legal in the U.S.

Staff
Midway Airlines plans to start three new flights between New York LaGuardia and Raleigh/Durham, beginning tomorrow. Midway will offer nine daily weekday nonstop flights on the route.

Staff
United plans to expand its Africa presence with the introduction of code-share service through its Star Alliance partner Lufthansa to Accra, Ghana; Lagos, Nigeria, and Abidjan, Cote d'Ivoire. The launch of code-share flights are subject to government approval. United intends to serve 10 destinations in Africa through its code share. With Lufthansa, United already serves Johannesburg and Cape Town, South Africa; Harare, Zimbabwe; Windhoek, Namibia; Addis Ababa, Ethiopia, and Asmara, Eritrea.

Staff
Local Area Augmentation Systems are being installed at O'Hare and Midway airports in Chicago, Honeywell said yesterday. The company said the two airports are among the first to install its SLS-3000 ground stations, which increase accuracy of aircraft Global Positioning Systems. Both systems will be operational in the near term and certified by FAA in early 2002, Honeywell said.

Staff
TRAFFIC DATA FOR JULY 2000 RPMs Change ASMs Change In From In From Load Airline Millions 7/99 Millions 7/99 Factor Air Canada 4.35 +4.4% 5.58 +3.4% 70.0% Canadian 1.51 -11.4% 1.00 -8.5% 76.9% Change Passengers Change

Staff
German pilots union Vereinigung Cockpit (VC) has threatened that Deutsche BA pilots could strike as early as today to underline its demands in the ongoing contract negotiations. Deutsche BA expected a two-hour strike if it occurred today. Under German law, unions can organize a so-called warning strike when they declare negotiations to have failed and even before the strike vote. DBA sees the fact that VC seems to avoid striking on the busiest days -- Monday and Friday -- as an indication that the union still is willing to reach an agreement.

Staff
While the number of Internet users with annual household incomes under $25,000 has grown nearly 50% since 1999, outpacing the growth of total users, they still represent only 9.7% of the overall Internet-using population in the U.S. A recent Media Metrix report analyzing Internet behavioral data stated that the "digital divide" gradually is narrowing as lower-income households increase online usage by a significantly wider margin than the total population. The overall composition of the web, however, still skews toward a higher-income user base.

Staff
Summary of U.S. Major Carriers Domestic Traffic First Quarter 2000 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % Carriers (000) Change (Miles) (000) Change Alaska 2,878 3.08 858 2,469,609 3.77 America West 4,498 8.31 938 4,220,216 7.72

Staff
Air Canada reached a tentative settlement with its pilots during the weekend after the Air Canada Pilots Association (ACPA) decided to accept a federal mediator's recommendations as the basis for a final contract. ACPA will meet over the next week with airline executives to clarify some of the points made in the mediator's report and work out the final contract language. The proposed contract would span four years retroactive to April 1 and must be presented to pilots for ratification during the next few weeks.

Staff
Sabre unveiled plans yesterday to cut more than 10% of its work force in order to reduce costs, at the same time it signed a deal to spend $757 million in cash to acquire GetThere Inc. Sabre soon will begin a company-wide cost-cutting program to support its goals for strong growth and profitability. Officials claims the program is in line with an effort launched several months ago to improve efficiencies and flatten the organizational chart, "increasing speed and agility." The cuts are expected to bring annual savings of roughly $100 million, beginning in 2001.

Staff
America West is facing stepped-up FAA surveillance after an agency audit found significant shortcomings in the airline's maintenance record-keeping. The carrier has been asked to overhaul several key maintenance programs, includinag its continuous analysis and surveillance (CASS) effort. CASS helps airlines spot maintenance trends that can help them make needed improvements to maintenance practices. FAA wants America West to submit a plan within 30 days detailing how the carrier will fix problems pointed out in the audit.

Staff
IAM, angry over Boeing's plans to close a facility at Harbour Pointe and consolidate others, is creating radio spots to urge the company to include the union in the decision-making progress, IAM said last Friday. IAM District 751 President Bill Johnson said many members fear the consolidation is the beginning of a "steady dismantling of our local facilities. It doesn't help morale when Boeing continues to leave our members out of the loop." IAM represents more than 34,000 machinists at the company's Seattle, Portland and Wichita facilities.

Staff
Virgin Blue, its regulatory obligations met, is set to launch this week, starting with Sydney-Brisbane service on Thursday. The low-fare airline fulfilled the last regulatory requirements late last week, completing proving runs for Australia's Civil Aviation Safety Authority (CASA). The airline was cleared to sell seats for its inaugural route, and Virgin Blue CEO Brett Godfrey flew to Canberra yesterday to meet with CASA officials and formally receive the airline's operating certificate.

Staff
North Atlantic freight traffic grew strongly during 1999, the 7% increase in freight ton kilometers a stark contrast to the 0.9% rise of 1998, according to new IATA statistics. The continued strength of the U.S. economy was a key factor in the growth although there was a downturn in the European Union GDP, IATA says. The strength of the dollar had a "detrimental impact on the purchase of American goods by European buys," IATA said.

Staff
AIRCRAFT TRANSACTIONS FOR JUNE 23, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Southwest WestJet WestJet Boeing 737- Airlines Airlines Airlines 200 Advanced/ JT8D-9A Boeing Southwest Southwest Boeing

Staff
Summary of U.S. National Carriers Systemwide Traffic First Quarter 2000 Revenue Average Revenue Passengers Length Passenger Enplaned % Travel Miles % Carriers (000) Change (Miles) (000) Change AirTran Airline 1,572 5.01 546 858,338 6.00 Aloha 1,274 (0.30) 150 191,405 7.41

Staff
In a bid to exploit China's huge potential and boost air travel within the country, China's State Council will ask the Civil Administration of China (CAAC) to restructure domestic air fares as the current rates are considered too high for local consumers.

Staff
Bringing total integration one step closer, Air Canada and Canadian Airlines last week announced their new, integrated schedule for the winter that also answers the challenge by Royal Airlines which plans to bring low-fare service on Air Canada's routes.

Staff
Iberia is one of the first major European airlines to admit openly that it is hiking passenger fares in reaction to high fuel prices. "Our domestic fares have gone up by a weighted average of 4.5%", an Iberia spokeswoman said last week in, confirming a report published by Spanish newspaper La Vanguardia. Iberia said last month that its fuel bill would increase by 29 billion pesetas (US$156.6 million) in 2000.

Staff
TWA yesterday launched its redesigned Internet site, featuring a new look and added services. The new Twa.com is a product of TWA's six-month-old agreement with GetThere and the expansion of TWA's e-commerce department. The site features an interactive seat map that enables passengers to select seats and order meals in advance. The site also provides access to hotels and car rental agencies.

Staff
SkyWest unveiled a new public offering of about 2.6 million shares of common stock at a price of $44.50 per share. Of the shares being offered, 2.5 million shares were offered by the company and 136,100 shares were offered by selling stockholders. The carrier intends to use its $105 million of estimated net proceeds of the offering for expansion, including the acquisition of additional aircraft and related spare parts and support equipment. The airline's shares traded at about $49 yesterday, just shy of its 52-week high of $51.25.

Staff
The American Society of Travel Agents (ASTA) last week asked DOT and FAA to talk about ways to alleviate delays and cancellations and to consider ASTA's proposed amendments to the Federal Aviation Act that would subject airlines to the same state general laws and consumer protection rules as other industries. ASTA Senior VP-Legal and Industry Affairs Paul Ruden said the legislation would ensure that travelers get the truth in advertised prices and timely, complete and truthful information about service disruptions and equipment changes.