Aviation Daily

Staff
U.S. airlines involved in the so-called T2 web portal are expected to unveil a brand name and further details during the first week of June.The venture is on track to go live this summer and continues to add participating carriers. An executive with Boston Consulting Group, the company managing the site, said the brand announcement has been delayed because Boston could not acquire a web address matching the name the members chose.

Staff
Delta this month will begin DC-9 code sharing with AeroMexico between Mexico City and Campeche, and has applied for code sharing this summer from Los Angeles to Durango and from Atlanta to Merida.

Staff
All Nippon Airways plans to introduce Boeing 777-200ERs to its daily service between Tokyo and Chicago on May 16. The aircraft will be configured with three-classes seating 233. The 777s will replace the 747-400s ANA has operated since it opened the route in April 1999. ANA is receiving three 777-200ER aircraft this year, two of which will be put on Chicago-Tokyo. It is ANA's first 777 service to the U.S. ANA currently operates 18 777-200s and -300s, mainly on domestic and regional routes.

Staff
Eleven major European airlines crossed alliance borders yesterday to form the first European, multi-airline online travel portal. The unnamed booking site is scheduled for launch later this year. Similar to the so-called T2 site in development by several major U.S. airlines, the European site is expected to attract "a significant proportion of total online travel sales in Europe within the next two years," the airlines said jointly.

Staff
Costs of the Essential Air Service program of subsidized air service to small localities without enough passengers to make it profitable have increased from $26 million to $50 million in 1998, according to a General Accounting Office report. "There is widespread support in Congress for ensuring that small communities have access to the national air transportation system," said House aviation subcommittee Chairman John Duncan (R-Tenn.), who released the report on Wednesday.

Staff
Airbus yesterday said that International Lease Finance Corp. has signed a contract for 50 firm aircraft orders, with 40 coming from its A320 family, seven A330-200s and three of the new, high-capacity A340-600s. The aircraft will be delivered from 2001 through 2008. This is a repeat order by ILFC for all these aircraft types, including the A340-600, which will enter into service in 2002. John Plueger, executive VP of the leasing company, said it has retained the flexibility to adjust types to market demand within the respective families of aircraft.

Staff
The European Union is ready to talk about a transatlantic common aviation area (TCAA) as a "first step" toward opening a global aviation market, Rene Fennes, EU principal administrator, said Wednesday at this week's International Aviation Symposium in Phoenix. While praising the efforts of the U.S. and its "courage" in establishing bilateral open-skies regimes, Fennes said bilateral pacts are now antiquated, urging a movement beyond open skies. TCAA is "exactly what the industry needs" to meet the requirements of a consumer-driven market supported by the EU.

Staff
U.S. National Carriers Financial Results Fourth Quarter 1999 Fourth Quarter 1999 Operating Operating Revenues Expenses (000) (000) AirTran Airlines $ 120,097 104,376 Aloha 56,038 63,146 American Trans Air 226,351 226,694 Frontier 73,974 69,880

Staff
Cathay Pacific does not expect low-cost carriers to appear in Asia soon, Director of Corporate Development Tony Tyler told The DAILY. Three factors will keep the low-fare sector away -- high airport fees, long stage lengths and the difficulties of turning aircraft around quickly. Tyler also doubts that potential new competitors would be able to offer cheaper seats than current established discount coach fares.

Staff
TRAFFIC DATA FOR APRIL 2000 RPMs Change ASMs Change In From In From Load Airline Millions 4/99 Millions 4/99 Factor Great Lakes 19.8 +2.7% 42.8 +0.4% 46.3% Frontier 199.2 +26.4% 329.1 +28.4% 60.5% Atl. Southeast 169.7 +57.0% 250.4 +34.9% 67.8%

Staff
Corporate Airlines, Smyrna, Tenn., will add five Jetstream 32EPs to fly under the TWA Express banner on routes that were flown by Trans States Airlines. Corporate specializes in 19-seat aircraft on short-haul routes. Corporate has 15 J32EPs, including nine in Raleigh/Durham for its Midway Airlines code-share partnership.

Staff
Financially troubled Tahoe Air, which earlier this year spun off Tahoe Express, has filed for bankruptcy. The airline in November suspended operations and said it was looking for a financial infusion of $5-6 million. With insufficient support from the South Lake Tahoe business community, the airline had been negotiating with another charter carrier and looking to obtain aircraft and a Part 121 certificate (DAILY, Nov. 29). Tahoe Air CEO Bruce Wetsel told Tahoe, Nev., media that debts were more than $500,000 and there are reserve funds on hold.

Staff
SAS posted a first-quarter pretax loss of 297 million Swedish kronor (US$33 million), due to higher fuel prices and "intense" competition. It was far worse than its year-earlier SK11 million loss. SAS revenue grew 6.2% and total traffic climbed 5.9%. Business-class traffic accounted for 30.9% of total revenue passenger kilometers. The passenger growth and higher load factor could not compensate for a 74% hike in fuel expenses.

Staff
United will begin offering McDonald's salads in a cup next month in what the airline says responds to passenger requests for "tasty, fresh lunch options." The airline test includes the Grilled Chicken Caesar McSalad Shaker on flights from Chicago O'Hare through June 7.

Staff
U.S. Major Carriers Financial Results Fourth Quarter 1999 Fourth Quarter 1999 Operating Operating Revenues Expenses (000) (000) Alaska 409,657 390,873 America West 557,058 520,954 American 4,135,043 3,891,019 Continental 1,987,432 2,010,045

Staff
European Commission cleared the creation of the European Aeronautic, Space and Defence Company (EADS) yesterday in Brussels. As expected, the European Union's competition watchdog obliged the companies involved to sell off some of their satellite equipment business. The EC also said "the operation will not affect the conditions of competition, since BAE Systems, which owns the remaining 20% in Airbus, maintains its veto rights on all strategic decisions," and "since the proposed transaction has no impact on the work share distribution between the Airbus partners."

Staff
LTU has leased six A330-200s from International Lease Finance Corp. for 10 years in a deal valued at $540 million. Deliveries of the Pratt&Whitney-powered aircraft will occur November 2001 and through summer 2002. ILFC purchased and leased back to LTU one A330-300 and four 767-300ERs until the six new ILFC A330-200s are delivered.

Staff
United's pilots, represented by the Air Line Pilots Association, say they have been warning the company for at least six months that they are understaffed and that it can anticipate a crew shortage. The airline, which has had to cancel about 100 flights, said yesterday that some pilots have refused to fly overtime, making it tough to cover non-routine situations. "The company is managing this situation by fine-tuning its flight schedule of 2,400 daily flights," United said.

Staff
U.S. and U.K. officials are preparing for the resumption of formal negotiations June 12, Brad Mims, DOT deputy assistant secretary, said at this week's International Aviation Symposium in Phoenix. Mims anticipates an agreement by yearend and is committed to "keep plugging" until a new bilateral is achieved.

Staff
FAA Administrator Jane Garvey said yesterday that John Thornton will direct Free Flight Phase 2. Thornton, who joined FAA in 1973 as an air traffic control specialist, has been communications manager in the Free Flight Phase 1 program since its inception in July 1998. In his new position, he will oversee expansion of Phase 1 elements, including Traffic Management Advisor, passive Final Approach Spacing Tool, User Request Evaluation Tool, Surface Movement Advisor and Collaborative Decision Making.

Staff
American plans to launch daily nonstop Dallas/Fort Worth and Kahului, Maui, service Nov. 22 with Boeing 767-300s. American currently flies two daily DFW-Honolulu nonstops.

Staff
KLM firmly denied a Dutch newspaper report about negotiations with British Airways yesterday in Amstelveen. "There are no talks," said KLM spokeswoman Sandra Maas, who called the report "nonsense." Dutch daily De Telegraaf reported that negotiations between KLM and BA on a partnership had been going on for several months and were becoming more serious since KLM broke off its alliance with Alitalia. The possible alliance between BA and KLM "is a rumor," said Maas.

Staff
Alaska Airlines is turning over to a grand jury the maintenance records of the MD-80 that crashed Jan. 31 off the California coast. The grand jury is investigating the carrier's maintenance operations. Chairman John Kelley said Alaska will comply with the grand jury request, its first for a specific aircraft. Alaska has provided about 45,000 pages of documents to the U.S. attorney's office since maintenance investigations began in late 1998.

Staff
Bombardier Aerospace said its new Q400 airliner established time-to-climb records in three flights from David Airfield in Muskogee, Okla. The records were claimed in three weight categories. "It has the winning combination of most of the capabilities of a jet aircraft with the thrifty economics of a turboprop," the company said.

Staff
Balkan Airline's pilot ended their nine-day old strike yesterday and plan resume all service today after reaching agreement with the carrier's management. Details of the agreement were unavailable, but management of the Bulgarian carrier previously rejected union demands for higher wages, according to the Associated Press. The strike began May 2, when the airline angered pilots by rejecting their demands, cutting several routes and closing overseas offices. By Thursday, Balkan Air canceled a total of 80 flights to and from Bulgaria, AP reported.