Aviation Daily

Staff
Following the breakup of its partnership with Swissair, Delta plans to begin daily, nonstop service between New York Kennedy and Zurich March 26. Delta will use Boeing 767-300ER equipment in a two-class configuration, featuring its BusinessElite service. The planned JFK-Zurich service will be in addition to Delta's daily, nonstop service from Atlanta and Cincinnati. The flight will depart JFK at 10 p.m., arriving in Zurich at noon the next day.

Staff
The management of national carrier Air-India has selected four out of the 52 contenders for the global adviser post to manage the sale of AI's equity stake in its subsidiary Hotel Corp of India, AI officials said. The shortlisted firms are Jardine Fleming, JM-Morgan Stanley, HSBC-HVS and DSP Merrill-SBI Caps. The final selection is expected in about a month. The sale of hospitality holdings would yield at least 11 billion Indian rupees (US$275 million), and AI sources say management wants government approval to use the funds for restructuring the airline.

Staff
An "alarming increase" in air traffic management (ATM) delays was the No. 1 topic of representatives of airlines from across the world meeting this week in Washington. Although the issue is hottest in the U.S. and Europe, associations representing airlines from Latin America, Africa, the Middle East and the Asia/Pacific region called on governments and aviation authorities to rapidly modernize ATM systems around the globe.

Staff
Mexico's Taesa "is virtually bankrupt because the authorities refuse to let it renew operations and have canceled its license," spokesman Eduardo Cacho said this week in Mexico City. The airline has been grounded since November after one of its DC-9's crashed, killing 18 people (DAILY, Feb. 7).

Staff
The electronic market for aviation products is continuing to expand swiftly and to become more competitive with two more ventures announced this week by SITA and AAR Corp. and by United Technologies, Honeywell and 12 Technologies. SITA and AAR agreed to form aerospan.com and build what they called the "most comprehensive and all-inclusive e-marketplace for the $80-$100 billion air transport industry," which will expand into the broader $500 billion world aerospace market.

Staff
Ryanair has launched eight new routes from London Stansted. The carrier is offering two daily roundtrips to Hamburg Lubeck, two to Malmo, two to Nimes, one to Perpignan, two to Brescia, one to Lamezi and one to Sardinia. Ryanair also will offer one daily roundtrip from Glasgow Prestwick to Frankfurt Hahn, beginning Feb. 26. Lowest midweek economy fares start at 69 pounds, compared to a comparable low fare of 356 pounds on British Airways and other majors, Ryanair said.

Staff
Nav Canada said it will go ahead with an expansion of its Ottawa air traffic control operation, a move the Canadian Air Traffic Control Association called unsafe. The company denied the allegation, saying that it has provided "extensive classroom and simulation training to prepare for this change." The union said there was not enough training and it had concerns about the radar equipment technology used to control the airspace. It also criticized Transport Minister David Collenette for "turning a blind eye" by not requiring Nav Canada to follow legislation.

Staff
Air Canada will begin daily nonstop Denver-Montreal service April 3 and a daily Denver-Vancouver nonstop Jan. 5. Service on both routes will be operated with Airbus A319 aircraft. With the new flight, Air Canada and regional AirBC will serve five major Canadian cities from Denver -- Toronto, Montreal, Vancouver, Edmonton and Winnipeg.

Staff
United yesterday spelled out plans to swap aircraft on several city-pair markets to better match capacity with demand. United jets will replace United Express aircraft in four growing Denver markets -- Boise, Cedar Rapids, Memphis and Wichita. United Express will replace United in five other markets. The four Denver markets are growing rapidly. The changes involve four daily flights to Boise, two to Cedar Rapids, two to Memphis and three to Wichita using Boeing 737-300 and 727-200 aircraft on June 8.

Staff
Honeywell successfully flight-tested its new AS900 turbofan for the regional and business aircraft markets, "the two fastest-growing segments in the aerospace industry," the company said. The new engine is expected to be certified in the first quarter of 2001 and to enter service on the Avro RJX regional aircraft in the fall of that year. It also is expected to go into service in 2002 on the Bombardier Continental Business Jet. The engine is designed as an integrated powerplant system for aircraft manufacturers wishing to purchase a complete system from Honeywell.

Staff
Bearing Inspection Inc. (BII), the world's largest independent provider of bearing inspection and overhaul services, launched the first phase of its web site Monday. The site claims to offer instant access to information about BII and all FAA- and JAA-approved services, as well as products it offers to companies in the aviation industry. Bearing Inspection's ability "to recondition bearings at nearly 50% cost savings over new OEM part prices, and to do it quickly, has made our services increasingly popular," said VP Jim Pape.

Staff
Clinton administration has asked for $18 million for the National Transportation Safety Board to cover costs of the EgyptAir 990 crash investigation. The request was made in a fiscal 2000 supplemental package, which the House Appropriations Committee is scheduled to mark up the first week in March, congressional sources said yesterday.

Staff
The Civil Aviation Administration of China (CAAC) has denied that it has agreed to allow China's registered airlines to fix their own fares, a liberty they enjoyed previously. In responding to questions from The DAILY regarding CAAC's bowing to pressure from Chinese carriers to relax the ruling, following industry reports that discounts are about to be offered again, CAAC Deputy Director Shen Yuankang said any underselling is irrational competition and will eventually hurt the airline industry.

Staff
America West plans to begin new service from its Phoenix hub to New Orleans May 3 with Boeing 737-300 equipment. "As we continue to offer our customers more options for nonstop nationwide service, America West is moving closer to its goal of 10% growth in 2000," said Bernie Han, senior VP-planning. On March 6, America West will begin flying to Boise, Idaho, followed by Spokane, Wash., March 7. The carrier will start Phoenix-Hartford service April 1.

Staff
Continental this week distributed profit-sharing checks for the fifth year in a row to its 51,500 employees, representing approximately 4.3% of employees' eligible annual wages. Since 1996, Continental has paid more than $447 million in profit sharing. "Profit sharing has become a tradition at Continental," said Chief Executive Gordon Bethune. Continental's profit-sharing plan pays 15% of pre-tax net income (excluding special gains and charges) and is divided among eligible employees based on their eligible wages.

Staff
British Airways plans to launch its e-commerce initiatives Feb. 23 but may disclose some details in the next few days. Commercial Director Carl Michel told The DAILY that the project will include the development of a new unit within the airline. BA also is expected to join a group of about 10 carriers, including Air France, Lufthansa and KLM, that are developing a joint European Internet travel portal.

Staff
Sun Country this week initiated service from Milwaukee to Los Angeles and Seattle, offering daily flights to Los Angeles and Monday-through-Saturday service to Seattle.

Staff
American Aircarriers Support has formed AAS Aircraft Services to provide heavy maintenance. The company entered a long-term lease with the San Bernardino Airport Authority to lease portions of the former Norton Air Force Base to house the unit's operations. President Joseph Civiletto said the new company "allows us to move into markets that we believe are underserved in the industry and complements our existing landing gear, flight control and engine overhaul maintenance business."

Staff
Lockheed Martin Flight Information Systems will enter the commercial aviation airline flight training market with a center adjacent to Orlando Airport. The facility, scheduled to open in the second quarter, will contain two full-flight simulators, classrooms and customer offices. Initial training will be for the Boeing 737-300 and Airbus A320. The facility can be expanded to accommodate six simulators.

Staff
FAA Administrator Jane Garvey yesterday briefed the Air Transport Association on the status of the troubled Wide Area Augmentation System, which the agency earlier said may not meet its planned initial operating capability date of this September following technical problems that showed up in stability tests recently (DAILY, Jan. 31). Garvey is trying to keep up industry support for the program, but an ATA official said, "We absolutely want something this year." Robert Frenzel, ATA senior VP-operations and safety, said, "We are still looking for something this year.

Staff
U.S. Major Carriers Traffic Market Share (000) January 2000 RPMs Share (%) 1. United 9,185,288 20.448 2. American 8,483,094 18.884 3. Delta 7,367,215 16.400 4. Northwest 5,448,135 12.128 5. Continental 4,702,197 10.468 6. US Airways 2,846,131 6.336 7. Southwest 2,836,756 6.315

Staff
KLM yesterday became the latest airline to pass higher fuel prices on to the consumer, pledging to raise fares worldwide after earlier this week increasing fares across the Atlantic 3%. Since Feb. 12, KLM has raised prices for tickets to Mexico and India and, effective Feb. 25, prices for flights to all other destinations except Canada will rise 3%. Tickets to Canada will receive the 3% hike on March 13. Tour operators will be charged an additional 50 guilders per ticket for intercontinental packages and 15 guilders for European packages.

Staff
KLM and Northwest are "in talks" with Thai Airways regarding its possible integration in the Wings alliance, Northwest Chairman John Dasburg confirmed yesterday in an interview published by Dutch newspaper De Telegraaf. Thai currently is partnered with Star Alliance carriers United and Lufthansa, which are Northwest and KLM rivals. Northwest and KLM are seeking "to strengthen the position of [their] alliance in the Far East," Dasburg said.

Staff
America West and its Air Line Pilots Association unit have entered contract negotiations three months early. The current contract becomes amendable May 1. First negotiations took place Feb. 7-11.

Staff
TWA is offering travel agents who book in the airline's Trans World One Premium class a $150 commission bonus through March 30, and an additional $50 for all coach-class tickets to Paris, Lisbon, Milan and Cairo through the same period. TWA said the bonus is part of a series of initiatives it will announce this week to promote its domestic and international premium services to frequent business travelers. Trans World One, available on all transatlantic destinations, offers "roomy seating, gourmet meals, fine wines and in-seat videos," the carrier said.