Aviation Daily

Staff
American, told by the City of Dallas to halt plans to operate from Love Field's East Concourse until the city has completed a master plan of the airport, is hoping for a waiver to let it fly from gates now under construction. American has been building gates in the airport's East Concourse, but the lease prohibits its use as a passenger terminal.

Staff
FAA Administrator Jane Garvey met this week yesterday with Air Transport Association President Carol Hallett and Air Line Pilots Association President Duane Woerth on issues involving land-and-hold-short operations (DAILY, May 16). FAA said Garvey was "optimistic about reaching industry-wide agreement soon regarding" the program.

Staff
U.S. Industry Traffic Market Share (000) April 2000 RPMs Share (%) 1. United 10,712,251 18.54 2. American 9,850,623 17.05 3. Delta 9,098,975 15.75 4. Northwest 6,499,119 11.25 5. Continental 5,272,732 9.13 6. US Airways 3,860,150 6.68

Staff
Air Canada and Canadian Airlines pilots, facing tough integration on some issues, have agreed to consider finding a mechanism to resolve disputes, most likely in the form of a conciliator, as the two groups become one. The unions have set up committees to work through the inevitable merger of Canadian and Air Canada and its pilot work force. The airline merger has not affected pilots in the same way as other groups that work directly together, such as ground-handling crews, said Air Canada Pilots Association (ACPA) spokesman Peter Foster.

Staff
AOPA reports that membership has reached an all-time high of more than 360,000, up from 300,000 10 years ago. Membership broke the quarter-million mark in 1985.

Staff
Alliances would continue to drive international aviation even if and when common aviation areas (CAAs) come into being, Paul Matsen, Delta senior VP-alliance strategy and development, said last week at the International Aviation Symposium in Phoenix. Airline alliances are the "lever creating liberalization and the engine making it work," he said. "They create market flow." The physical assets of hubs are inimical to the success of a network and the behind and beyond benefits that accrue to alliance members, he said.

Staff
GAMA President Ed Bolen yesterday urged Congress to continue NASA's involvement in general aviation research. Bolen told the House subcommittee on aviation that "we must continually invest in breakthrough technologies" if the U.S. is to remain the "undisputed world leader in general aviation manufacturing and keep the high-skill jobs that come with that title." GA companies now spend as much as 20% of their sales revenue on research and development, he said.

Staff
The House Appropriations Committee yesterday gave voice vote approval to a fiscal 2001 transportation bill that provides $12 billion in FAA funding while cutting the Wide Area Augmentation System (WAAS) and Free Flight Phase 2 and increasing funds for the Local Area Augmentation System (LAAS).

Staff
Airbus yesterday appeared close to landing Singapore Airlines as an A3XX customer. An order from the airline could prove influential in the consortium's attempts to line up enough customers to launch the 400-seat aircraft. Airbus said it is in talks with Singapore for an initial purchase of up to 16 aircraft, including 10 firm orders, for delivery beginning late in 2005.

Staff
U.S. National Carriers Traffic April, 4 Months 2000 (000) April April % 2000 1999 Change Air Wisconsin Revenue Passenger Miles (000) 96,036 86,169 11.5 Available Seat Miles (000) 166,902 137,990 21.0 Load Factor (%) 57.5 62.4

Staff
Borge Boeskov, president of Boeing Business Jets, told attendees at the recent National Air Transportation Association convention that BBJ "is working with several people" in the early stages of an supersonic business jet program assessment. To be successful, an SSBJ would have to be able to cross the Pacific and fly at supersonic speeds over land (at least 1.2-1.3 Mach), Boeskov said. It will be at least nine or 10 years before SSBJs will appear on the ramp, Boeskov said, noting that environmental problems remain.

Staff
Chinese carriers are up in arms against the Civil Aviation Administration of China's directive to 25 of the 34 airlines that they must pool and share their revenues on 100 domestic and regional routes. Three airlines interviewed by The DAILY, said the latest development is a step backward and will hinder operations and affect profitability.

Staff
Sen. James Jeffords (R-Vt.) has introduced a bill in the Senate that would cover airline accidents under the Emergency Assistance Act and provide for more uniform and speedier reimbursement for affected communities. At present, the process for reimbursing states and localities is an ad hoc one, Sen. Jeffords pointed out in remarks made in the Senate last Thursday, when he introduced the bill. At present, he noted, the Senate considered at least three special line item appropriations for areas affected by the recent ValuJet, TWA and Comair accidents.

Staff
United next week will launch a new international advertising campaign that aims to capture global business travelers. The new television and print advertisements will appear in unidentified "key" international markets United serves and "showcase steps the airline has taken to enhance the international travel experience." The theme of the campaign is "Life is a journey. Travel it well." The new ads, produced by New York-based Young&Rubicam, claim to focus on direct selling points that help differentiate United.

Staff
Italian regional Air Dolomiti has signed a firm order with Bombardier for three Canadair Regional Jet 200 Series Long Range jets. Air Dolomiti has bases in Trieste and Verona, and will become the 12th European airline and the first in Italy to operate the CRJ. Air Dolomiti currently operates 17 turboprops to 14 different Italian cities.

Staff
First Security Bank of New York has concluded an extension for a 767-300ER on lease to SAS through November 2003. The transaction was arranged by Sigma Aircraft Management, which manages a portfolio of 27 aircraft.

Staff
FAA plans to increase security at about 1,000 sites across the nation, including its own headquarters and the Aeronautical Center in Oklahoma and the Technical Center in New Jersey. FAA yesterday issued requests for industry to review and comment by June 5 on a draft of the proposed security effort, including a proposed list of security systems. FAA may award contracts to multiple contractors for the program, estimated to take up to five years and cost between $5 million and $10 million a year. Contract award is scheduled in August or September.

Staff
U.S. carriers yesterday raised air fares between $5 and $15 one way, based on stronger passenger demand. It was the third fare increase this year. All U.S. major airlines followed Continental's lead in hiking fares on a mileage basis for leisure and business markets. "Consumers responded to the first two increases by traveling more," said PaineWebber analyst Sam Buttrick. "Higher fares have not curbed consumer desire to travel any more than interest rate hikes have curbed economic growth." As usual, markets shared with Southwest were carved out of the increase.

Staff
A transcript of the air traffic control tape associated with the EgyptAir 990 accident, issued yesterday by FAA, does not appear to contain any clue as to the cause. The transcript shows that New York controllers involved other ATC centers within minutes of losing radar contact. FAA did not comment on the transcript since the National Transportation Safety Board still is investigating the accident.

Staff
US Airways said yesterday it will consolidate European reservations into a new center in Liverpool, U.K., in September. It will employ 90 initially, with hopes of growing to 150 in five years. The airline's Paris and Frankfurt offices will remain open for now but "ultimately will be consolidated" into the Liverpool facility, a spokesman said.

Staff
FAA said yesterday that it has completed a major milestone in the modernization of the national airspace system with the deployment of the final Air Route Surveillance Radar, which provides aircraft position information to FAA, the Air Force, Navy and Customs Service.

Staff
Rolls-Royce received an order valued at $120 million from International Lease Finance Corp. for Trent 500 engines to power three Airbus A340-600 aircraft.

Staff
Singapore Airlines posted an 8.1% increase in March passenger traffic on 8.7% more capacity, which dropped the load factor 0.4 percentage points to 75.2%. SIA carried 1.2 million passengers, up 7.9% from the year-earlier period. The airline's departures and arrivals were 84.9% and 80.2% on time, respectively.

Staff
Airline consolidation is the next major move for European carriers but only if the "maze" of government regulation is reduced, according to Jeffrey Katz, CEO of Swissair. Speaking at the International Aviation Club in Washington yesterday, Katz said, "We are truly ready for the next step of consolidation." European aviation is "fragmented to a point where the average carrier has a sub-optimal size," he said. "At this time, no European airline is completely satisfied, on its own, with its capabilities.

Staff
LanChile's April traffic grew 4.3% year-over-year on 6.6% less capacity, raising load factor 6.8 percentage points to 65.2%. The airline experienced 7.5% growth in international traffic, while domestic traffic dropped 15.4%. Cargo volume grew 18.0% to 170.6 million freight ton kilometers.