Aviation Daily

Staff
FAA said yesterday it plans to change noise certification standards for jet aircraft as part of an agreement with the European Joint Aviation Authorities to harmonize regulations. The changes, proposed in the July 11 Federal Register, will "provide nearly uniform noise certification standards for airplanes certificated in the United States and in the JAA countries," FAA said. "The harmonization of the noise certification standards would simplify airworthiness approvals for import and export purposes." The FAA asked for comments by Oct.

Staff
DOT granted BWIA an exemption for expanded U.S.-Caribbean service, which it plans to operate under reciprocal code share with United. BWIA gained rights for Trinidad and Tobago-Chicago/Denver service, via intermediate points Antigua, Barbados, Grenada, St. Kitts and St. Lucia. The carrier may co-terminalize Chicago/Denver with its other U.S. gateways.

Staff
Swissair raised selected fares 3% yesterday to compensate for higher fuel prices. The carrier said fuel costs are roughly double those of a year ago and account for about 15% of total operating costs. The 3% fuel surcharge is for flights from Switzerland to "various" European destinations and also applies to most business-class tickets to all destinations. Fares not subject to the surcharge include those in the "lower price segment" and those featured in current sales.

Staff
DOT Inspector General plans to evaluate how well FAA is managing two key weather systems -- the Weather and Radar Processor and the Integrated Terminal Weather Systems -- with respect to cost, schedule and performance.The OIG also will examine how FAA will use the systems to improve the flow of air traffic and lessen the impact of adverse weather on flight operations.

Staff
SAirGroup concluded negotiations yesterday between Volare and Air Europe to merge the two Italian carriers into a single parent company to expand their networks and develop further links with the Qualiflyer Group.

Staff
TRAFFIC DATA - JUNE 2000 Airline RPMs Change ASMs Change (In Billions) (From 6/99) (In Billions) (From 6/99) Alaska 1.07 +0.1% 1.41 -5.8% American West 1.75 +11.4% 2.27 +4.8% ATA* 0.75 +10.6% 0.88 +7.6% Delta 10.74 +8.3% 13.10 +2.0%

Staff
Boeing yesterday reported delivery of 167 commercial jet transports in the second quarter, some of which had been delayed due to the strike by its engineers. CEO Phil Condit said that, "as promised, by the end of the second quarter, we have essentially recovered from the strike." Condit said Boeing delivered 242 commercial jets in the first six months. The company had earlier announced that the production rate on its next-generation 737s will increase from the current 24 per month to 28 per month, with deliveries in the third quarter of 2001.

Staff
US Airways will launch service Nov. 12 from its Charlotte hub to St. Thomas in the U.S. Virgin Islands, the eighth Caribbean point served from Charlotte. The carrier previously announced plans to start additional nonstop flights from Philadelphia and Charlotte to St. Maarten, also beginning Nov. 12 (DAILY, May 24). The airline's Philadelphia Saturday and Sunday-only flights will become daily service, and its Saturday-only flight between Charlotte and St. Maarten will operate both Saturday and Sunday.

Staff
TRAFFIC DATA - JUNE 2000 Airline RPMs Change ASMs Change (In Millions) (From 6/99) (In Millions) (From 6/99) Frontier 246.3 +31.9% 343.2 +20.5% Great Lakes 24.2 +4.1% 45.2 +3.6% Midwest Express 183.0 +3.0% 260.3 +0.4% Skyway 10.7 +39.3% 21.2 +51.0% SkyWest 115.1 +8.9% 190.8 +7.7%

Staff
Overall Percentages Of Reported Domestic Arriving On Time By Carrier, May 2000 Quarterly 2nd Q 1999 3rd Q 1999 4th Q 1999 1st Q 2000 % (Rank) % (Rank) % (Rank) % (Rank) Alaska 72.5 (7) 72.0 (8) 69.7 (9) 66.5 (9) America West 72.3 (8) 62.7 (10) 69.2 (10) 64.7 (10)

Staff
The nominations of Aircraft Owners and Pilots Association President Phil Boyer and Dallas attorney Deborah Branson to serve on the new Federal Aviation Management Advisory Council could come up for consideration at today's Senate Commerce Committee hearing, congressional sources said. Reconsideration of Boyer's nomination would be surprising since Senate Commerce Committee Chairman John McCain (R-Ariz.) has made no secret of his contention that Boyer "misrepresented [his] position" on user fees to the AOPA membership.

Staff
New Regional Aircraft Deliveries, March 2000 Last 12 Carrier # Type Engine Months Delivery Adria Airways 1 Canadair RJ200 CF34-3B1 0 Air Dolomiti 1 AA ATR-42-500 PW127E 1 Alsair 1 Beech 1900D PT6A-67D 0 American Eagle 1 Emb ERJ135 AE3007A1 11

Staff
Air New Zealand CEO Jim McCrea resigned Friday just as the carrier begins to merge with Ansett Holdings and plans to work more closely with Singapore Airlines. ANZ Chairman Selwyn Cushing has taken over the day-to-day operations, but analysts suggest the suddenness of McCrea's departure suggests that a successor already may have been chosen. "It's time for me to look for a fresh new challenge and to let whoever succeeds me have the opportunity to shape the new executive team to lead the group through the next phase of its development," McCrea said.

Staff
Shares of the European Aeronautic Defence and Space Company (EADS) began trading yesterday with simultaneous initial public offerings in Frankfurt, Paris and Madrid. Shares opened at 19 euros, and the trading price initially rose but quickly fell to 17.9 euros. The market's reaction was somewhat of a disappointment, since the price was set deliberately low to lure investors. EADS is issuing 144.8 million shares and it raised $1.7 billion at offering, compared with the $3.1 billion forecast.

Staff
SAS's June traffic was up 4% year-over-year, while load factor gained 3.7 percentage points to 74.7%, the highest this year. Passenger boardings rose 2% to 2.2 million, and freight volume dropped 4%.

Staff
AirTran Holdings' common stock will begin trading on the American Stock Exchange on Friday under the symbol "AAI." The carrier currently trades on NASDAQ as "AAIR." AirTran is expected to report a second quarter profit when earnings are released Wednesday.

Staff
JMC Airlines signed a seven-year deal with Orlando Sanford Airport last week for terminal use and ground handling. The charter carrier is the third U.K.-based airline in the past 12 months to sign a long-term agreement with Orlando Sanford. Air 2000 and Airtours International Airways both signed similar agreements last October. JMC was created out of the integration of Caledonian Airways and Flying Colours Airlines began service in March.

Staff
TRAFFIC DATA - JUNE 2000 Airline RPMs Change ASMs Change (In Millions) (From 6/99) (In Millions) (From 6/99) AirTran 380.2 +19.1% 488.1 +6.3% Air Wisconsin 111.3 +8.3% 116.0 +14.2% Atlantic Coast 109.4 +11.5% 167.7 +6.8% American Eagle 337.0 +11.5% 518.0 +9.4%

Staff
Summary of U.S. Major Carriers Domestic Traffic, Fourth Quarter 1999 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 3,040 2.53 833 2,532,769 2.67 America West 4,731 11.47 942 4,455,886 13.11

Staff
Cathay Pacific's traffic soared 11% for the first five months of the year, compared with 1999, far outpacing the capacity increase of only 0.2%. As a result, the airline's load factor jumped 7.3 percentage points to 75.3% for the January to May period. During May alone, Cathay Pacific operated 2,034 flights, up from 1,988 flights in April as the airline added frequencies across its network. For the first five months, Cathay operated 3% more flights than in the same period in 1999.

Staff
TWA is one of the groups interested in bidding for the assets of bankrupt Mexican carrier Taesa, according to sources in Mexico City. The other potential bidder is Mexico's Consorcio Hispanoamericano de Aviacion.

Staff
Northwest will make several changes to its Priority Pet Program, effective after July 18, and increase fees for pets traveling as checked baggage. Enhancements include the addition of 18 dedicated Priority Pet staff positions at its Minneapolis/St. Paul, Detroit and Memphis hubs, three new air-conditioned vans to transport pets and a dedicated Priority Pet Center and toll-free number for assisting pet owners with handling policies and documentation requirements.

Staff
Virgin Atlantic plans to launch Virgin Blue -- its low-cost Australian airline -- on Aug. 3, serving the Brisbane-Sydney route. Chairman Richard Branson said the carrier will start operations with daily service on the high-volume route and expects to start Sydney-Melbourne flights this fall. Virgin Blue starts with two Boeing 737-400s but plans to have a fleet of five aircraft by yearend. Despite its name, Virgin Blue's aircraft livery features a red fuselage with a white tail.

Staff
BAA last week obtained the retail and catering contract at Boston Logan Airport for its two main terminals. The 10-year contract starts in January 2002. The U.K.-based airport company will develop and manage retail concessions covering more than 83,000 square feet. BAA's existing U.S. operations comprise airport management contracts at Indianapolis, Ind., and Harrisburg, Pa.; the concessions operation at Pittsburgh's midfield terminal, and the concessions at Newark Terminals A and B.

Staff
FAA's extensive safety audits of United, America West and Continental next week will be followed by six more audits.Delta, Northwest and TWA will be audited July 25-Aug. 1, while American and Southwest will receive inspections Aug. 8-15. US Airways will be visited Aug. 15-22. Airline sources expect some negatives to come from each audit.