Aviation Daily

Staff
Three Taiwanese carriers - China Airlines, Trans Asia Airways (TAA) and Far Eastern Air Transport (FEAT) - have formed a joint venture to build a new flight kitchen at Kaohsiung airport in southern Taiwan. The company is called Kaohsiung Airport Catering Services and the 5,400-square-meter facility will turn out 4,000 meals a day for domestic services. It has a daily capacity of 12,000 meals. CAL and TAA each will hold a 45% stake, while FEAT will have the remaining 10%. Operations will start in October with first-year revenue estimated at US$31 million.

Staff
A DOT report issued yesterday said Northwest's poor internal communications and lack of emergency plan contributed to passengers' being stranded in aircraft for more than eight hours when a snowstorm hit the airline's hub at Detroit Metropolitan Airport Jan. 2-3. But DOT said FAA found neither Northwest nor the airport violated federal regulations during the incident. The report was written at the request of Rep.

Staff
Bombardier Aerospace will invest $30 million to reorganize its pre-flight and delivery facility and to build a new hangar adjacent to its aircraft manufacturing operation at Montreal Dorval Airport.

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The chances for a new U.S.-U.K. aviation bilateral are "better than they've been in the last three years," said David Marchick, U.S. deputy assistant secretary of state. But "chances still are not very good for an agreement," he cautioned. Marchick confirmed that U.S. and U.K. negotiators are planning to meet June 14, but that date is not set in stone. The U.S. is willing to provide full and unlimited access to its market in return for the same, he said, but the "speed and quality" of that access need to be worked out. The U.S. will continue its open-market push.

Staff
Australia has succumbed to pressure from Middle East carrier Emirates in approving another 14 services between Dubai and Australia. The airline will have a total of 21 weekly flights. Emirates, which currently operates a daily flight to Melbourne via Singapore, will use the additional rights to offer daily flights to Sydney, add four weekly flights to Perth and three to Brisbane. According to Emirates' Group Chairman Sheikh Ahmed Saeed Al Maktoum, the airline also has received the green light from U.S. authorities to fly to Chicago, New York and Los Angeles.

Staff
Air Canada will begin Canadair Regional Jet nonstop service every business day Aug. 3 between Ottawa and Washington Reagan Airport, the carrier's 50th new route under its open transborder agreement with the U.S. United will offer code-share flights on the route. The new service will complement Air Canada's service between Ottawa and Washington Dulles, which it said is the only nonstop business-day flight in the market.

Staff
FAA and Raytheon officials said yesterday that the software of the controversial Standard Terminal Automation Replacement System (STARS) has successfully completed stringent tests that bring its operational deployment "closer." STARS is slated to replace the computer and display systems in 172 FAA terminal radar approach control facilities and as many as 199 Defense Department facilities.

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Air France posted a net profit of 1.636 billion French francs ($261 million) for the fiscal year ended March 31, down by 10.9% compared with the previous year, the French airline said yesterday in Paris. The Group's revenues increased by 1.5% to FRF59.7 billion ($9.5 billion). French analysts were expecting a much sharper decrease in profits for 1998-99 - a year that was affected by harsh competition and a 10-day strike in the spring of 1998.

Staff
Lockheed Martin Air Traffic Management announced a Y2K-compliant backup system for air traffic control automation. The product uses the company's SkyLine air traffic management system to give ATM service providers a worldwide network that can be used in conjunction with, or as a backup for, existing systems that may not be compliant, the company said. The system includes four radars and two controller work positions that can be expanded up to 14 positions without software changes.

Staff
Summary of U.S. National Carriers Systemwide Traffic December 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change AirTran Airlines 467 38.29 544 254,180 21.78

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TWA has made its "final and best offer" to employees represented by the International Association of Machinists (IAM), according to Chief Executive Bill Compton. But the two sides agreed to continue negotiations beyond the potential midnight June 9 strike deadline, lowering the chances of a work stoppage at the nation's eighth largest carrier. Details of the offer were mailed to employees yesterday, and a vote is expected within three weeks.

Staff
Delta yesterday began nonstop shuttle service between Washington Reagan and Boston Logan, with flights departing every other hour during business days. Due to slot limits at Reagan National, new service was launched with two dedicated 727s and one Comair regional jet. Future hourly service will be operated by Delta Shuttle aircraft.

Staff
For the first time, Japan Airlines began publishing on the Internet information on flight irregularities that occurred in its domestic and international services. Like all airlines, JAL did not previously publish the information for fear of causing unnecessary anxiety and misunderstanding regarding air safety. Despite strong opposition to the move inside the company, JAL's management said it believes that the days of concealing incident information are over and that openness will lead passengers to understand carriers better.

Staff
Flight trials are under way to test the Airbus Corporate Jetliner's (ACJ) extra fuel tanks in the cargo hold and operations at a cruise altitude of 41,000 feet. The trials began with a five-hour 55-minute flight May 31 during which normal functioning of the six extra tanks was verified. Airbus said the ACJ achieved a typical cruise speed of Mach 0.8 and a maximum altitude of 41,000 feet. This test aircraft was powered by IAE V2500 engines.

Staff
National Air Transportation Association said it has objected to a new Joint Aviation Authority rule that would make converting an FAA-issued license "nearly impossible because it mandates flight training to be performed in a JAA-registered aircraft." The new rule, effective July 1, applies to U.S. flight schools that train European students. NATA said any pilot able to meet JAA conversion standards in a specific country still faces difficulty because no other JAA member would be obligated to recognize a converted license.

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Airbus Industrie yesterday confirmed reports in Europe that an unidentified customer has ordered 57 of its A320 family of aircraft. Airbus said that while the delivery order and numbers are expected out tomorrow, the buyer has requested not to be identified. Before this latest order - for 30 A318s, 15 A319s, two A320s and 10 A321s - Airbus had sold 93 aircraft this year. There has been speculation that the buyer will be announced at the June 13-20 Paris Air Show.

Staff
Cathay Pacific is canceling flights and has stopped taking near-term bookings as unrest among its pilots escalates. More than 30% of flights were canceled in recent days and more are expected this week. Pilots voted yesterday to consider a strike motion if the airline carries through with a threat to terminate anyone not accepting a new salary structure by June 11. The airline and its pilots union are trying to come to an agreement after Cathay proposed cutting pilot wages.

Staff
DOT granted Continental a new certificate to serve the U.S.-Romania market with scheduled combination service under code share with third country carriers beginning Nov. 1. The carrier plans to serve Bucharest via Paris with Air France and via Prague with Czech Airlines (CSA). Continental was selected for the Nov. 1 opportunity under the same order in which DOT selected Delta, Northwest and United for service beginning April 1.

Staff
DOT awarded to United for an indefinite period two weekly U.S.-Philippines frequencies to provide scheduled all-cargo service between Los Angeles and Anchorage and Manila, via Osaka, Japan. The dormancy period begins July 1 for one frequency and Sept. 7 for the other - the dates when United plans to begin the service, using DC-10-30 aircraft. The carrier, which operates three weekly U.S.-Philippines cargo roundtrips, told DOT it will operate the new service on the same schedule.

Staff
North American Airlines took delivery of a 757. The carrier, established in 1989 by former Civil Aeronautics Board Chairman Dan McKinnon, operates two 757s and two 737-800s on worldwide charters and U.S. feeder service for El Al.

Staff
The Philippine Civil Aeronautics Board (CAB) has told private carrier Air Philippines (AP) to start its international flights by Dec. 30 or forfeit the rights. Last week, AP President and Chief Executive Sherwin Gatchalian told the CAB that it will not be able to start international services today, as planned, because it has not been able to acquire the necessary aircraft. AP is looking to lease four Boeing 747-200/300s on the open market.

Staff
Summary of U.S. Major Carriers International Traffic December 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 89 29.45 1,158 102,523 30.82

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AeroMexico yesterday named Arturo Barahona chief executive, replacing Alfonso Pasquel, who will remain chairman and president.

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All Nippon Airways will shrink during the next two years, begin a new low-

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As part of its restructuring plans, Japan Air System (JAS) will reduce the number of board members to 10 from the current 28. It also will freeze pilot hiring through March 31, 2000. A JAS official said reducing the size of its board will speed up making decisions. "In the past, decisions, including that on operational matters, were held up due to too many board members wanting to have a say. Bureaucracy will be a thing of the past," the official added.