Aviation Daily

Staff
DOT affirmed an earlier staff decision removing exclusivity provisions as a condition to approve the Northwest/Air China and United/All Nippon Airways code-share agreements. The provision would have prohibited each airline from code sharing with another carrier in the partner's country. DOT said it wanted to maximize competition in limited-entry markets and will consider separately whether to impose similar conditions on other code shares, including American/China Eastern, which recently applied for renewal.

Staff
The TWA Flight 800 disaster investigation, which by statute was to be run by the National Transportation Safety Board, "was commandeered" by the FBI and was "a model of failure, not success," Sen. Charles Grassley (R-Iowa) charged yesterday. Grassley, who chairs the Senate Judiciary subcommittee, made the assertion at the panel's hearing into the FBI's direction of the investigation, including charges that the bureau pushed the now-discredited missile or bomb theory and suppressed evidence.

Staff
Boeing 737 Aircraft Operating Costs, Fourth Quarter 1997, Dollars Per Block Hour, B737-300, B737-4/500 Boeing 737 Aircraft Operating Costs Fourth Quarter 1997 Dollars Per Block Hour B737-300 America West Continental Delta Southwest Crew Cost $338 $715 $815 $356

Staff
Moody's Investors Service assigned an "a3" rating to British Airways' 300 million Euro perpetual preferred securities, the first Moody rating of this class of security for BA.

Staff
Port Authority of New York and New Jersey is crediting a foam arrestor bed with halting the runway overrun of an American Eagle Saab 340 over the weekend at New York Kennedy.The incident, a real-world test of the arrestor bed concept, caused little damage to the aircraft and one minor passenger injury. Without the foam, the aircraft could have ended up in Jamaica Bay.

Staff
International travel and tourism is the U.S.'s leading services export, creating a trade surplus of nearly $19 billion and injecting $91 billion into the economy in 1998, according to the Commerce Department. Western European visitors spent a record $30.2 billion in the U.S. last year, with the U.K., France and Italy each setting records for arrivals. Despite economic turmoil in Asia, particularly in Japan, the No. 1 source of tourists to the U.S., expenditures remained relatively stable, dropping 3% between 1997 and 1998, for a total of $91.1 billion.

Staff
Malaysia Airlines pilots for more than two years have been under orders to carry minimal fuel when weather conditions are favorable to save on costs, a senior MAS flight operations official told The DAILY in Kuala Lumpur. An MAS 747-400 on a flight from Kuala Lumpur landed in London Heathrow Airport Terminal 2 two weeks ago with fuel reserves below the safety minimum of 4.5 tons, as required by U.K. regulations, an event the official called "nothing new. It is just too bad that someone decided to report the matter to the Confidential Human Factors Program (CHFP).

Staff
Olympic Airways has signed a contract with Bavaria International Aircraft Leasing for two 717-200s, making the Greek carrier the European launch airline when the aircraft are delivered this year. Olympic plans to use the 717s on routes connecting Greece to the Balkans and Europe, said Petros Stefanou, chief executive. "This was a strategic decision for us and one which we studied very hard. Our market is tough." Another leasing company, AB Airlines, Stansted, plans to acquire 717s for wet-lease (DAILY, May 10).

Staff
Nav Canada has introduced a Notam Processing System (NPS) that replaces a previously leased service from AT&T Canada. The state-of-the-art system was provided by Bell Canada and Frequentis Network System (FNS) and is Year 2000-compliant, Nav Canada said. It handles Notams in formats required by the International Civil Aviation Organization and the Canadian government.

Staff
The Indonesia National Air Carriers Association (INACA) wants the government to speed up the formation of a national airline company. This involves pooling the resources of the five carriers authorized to operate scheduled services - Garuda Indonesia, Merpati Nusantara, Bouraq Airways, Mandala Air and Pelita Air Services. Sempati, which grounded all its aircraft in late 1997 because of the economic crisis, operates only code-share services with SIA's subsidiary, Silk Air, on Singapore-Indonesia routes.

Staff
Despite government sentiment against overly close cooperation among alliance partners, Northwest, KLM and Alitalia yesterday announced plans to seek antitrust immunity from DOT for their tripartite Atlantic joint venture. Although British Airways and American still are awaiting antitrust approval three years after applying and the European Commission is threatening to disband existing alliances, the three airlines are confident that the joint venture will go forward.

Staff
Boeing 737 Systemwide Aircraft Utilization Per Day, Fourth Quarter 1997, B737-300, B737-4/500 Boeing 737 Systemwide Aircraft Utilization Per Day Fourth Quarter 1997 B737-200 America West Continental Delta Southwest Number of Aircraft Operated 46 92 21 207

Staff
Some 350 representatives of International Civil Aviation Organization contracting states and major international aviation groups are meeting in Montreal to modernize and consolidate the Warsaw System, comprising the Warsaw Convention, plus amendments and supplements. ICAO Council President Assad Kotaite said, "Our objective should be to provide the world with a modernized legal framework that can respond to the varied needs of states, the traveling public, air carriers and the air transport industry in the third millennium."

Staff
Delta is offering low fares to 184 selected markets starting at $37 each way. The sale fares do not require a Saturday night stay. Sample one-way tariffs are $77 Atlanta-Boston, $85 Dallas/Fort Worth-Tampa and $75 Fort Lauderdale-Washington Dulles. Fares are good for travel through Sept. 30.

Staff
Air Mauritius has asked India's civil aviation ministry for rights to operate one daily flight between India and Port Louis, Mauritius, with an additional point in southern India - Hyderabad or Chennai - ministry officials said yesterday. At present, the carrier, in which Air-India holds a minority share, operates three flights per week to Mumbai and one to New Delhi. The proposed package would benefit tourists from Europe and South Africa who visit Mauritius, as well as Mauritius citizens of Indian origin, who constitute a majority of the country's population.

Staff
Emery Worldwide has launched a sea-air program from Asia to Latin America. The new service is available from Hong Kong, Kellung, Pusan, Singapore and Bangkok to Santiago, Buenos Aires and Sao Paulo.

Staff
American and Japan Airlines yesterday began the initial phase of their code-share agreement, expected to cover 147 flights by yearend. JAL's "JL" code appears on American's flights to Tokyo from San Jose, Dallas/Fort Worth, Chicago and Seattle; DFW-Osaka service, and some segments in the U.S. on and American Eagle. The "AA" code appears on JAL's flights from Tokyo to DFW, Chicago, Los Angeles, New York and San Francisco; Osaka-Chicago/Los Angeles service, and some JAL domestic flights.

Staff
Carol Carmody, former U.S. representative to the International Civil Aviation Organization and current consultant to the Air Transport Association, will be guest speaker at the monthly meeting of the Women's Transportation Seminar May 19 at the National Press Club in Washington. For more information, call 202-962-3292 or e-mail [email protected].

Staff
United traffic for April rose 2.2% on 2.8% more capacity, which forced load factor down 0.4 percentage points to 68.8%. While the domestic load factor dropped, loads across both the Atlantic and Pacific were up, signaling that the airline's capacity strategy to fill in the Atlantic has been successful. Domestic traffic rose 2.5% and capacity 5.4%, which pushed the load factor down 1.9 points to 69.3%. Atlantic traffic grew 20.7% on 18% more capacity, causing a load factor increase of 1.7 points to 79.2%.

Staff
Denver-based Frontier will add a fourth Denver-San Francisco nonstop June 14 and start service to Portland, its 12th city.

Staff
H.R.1679 introduced May 4 by Rep. Sweeney - to amend Title 49, U.S. Code, to provide assistance and slots with respect to air carrier service between high-density airports and certain small and non-hub airports that have unreasonably high air fares, to improve jet aircraft service to markets that have unreasonably high air fares, and for other purposes. Transportation and Infrastructure.

Staff
Boeing 727 and 737 Aircraft Operating Costs, Fourth Quarter 1998, Dollars Per Block Hour, B727-200, B737-1/200 B727-200 American Continental Delta Crew Cost 995 838 720 Fuel&Oil 638 628 656 Rentals -- 146 23

Staff
Delta's Air Line Pilots Association unit Master Executive Council will meet with management Tuesday to continue discussions on new Boeing 777 flight pay, rules and working condition. The union has sent ballots to membership to vote on a plan that would permit pilots to ground the aircraft six months after they go into operation if the two sides have no agreement. Ballots will be counted early in June. The union also has a grievance pending against Delta because of MD-11 crew rest facility complaints.

AAR

Staff
AAR promoted Michael Sharp to VP and controller and elected him an officer of the company, and appointed Roberta McQuade VP-human resources.

Staff
Mercury Air Group said revenue for the quarter ended March 31 increased to $53.6 million from $52.7 million. Net income was $1.1 million, down from $1.4 million. For the first nine months, revenues declined to $162.9 million from $190.5 million. Net income for nine months was $4.4 million compared to $1.2 million last year.