Aviation Daily

Staff
Reserve Bank of India said foreign airlines will no longer be required to obtain prior approval from the bank to conduct business in India through local agents. They still must obtain permission from India's director general of civil aviation for online operations, however. The policy, which takes effect immediately, applies only to carriers whose offline service headquarters are in countries that have air agreements with India, RBI officials added.

Staff
An IBM study of 119 world airlines found that 36% favor outsourcing all information technology (IT) and 86% consider outsourcing IT in line with their business strategies. In addition, airlines are using IT increasingly as a way to boost market share, improve customer service and loyalty, and strengthen alliance ties. Results of the study, conducted independently by IDL last year, were issued by IBM in Singapore, where several IT advances have been put into practice at Singapore Airlines.

Staff
Federal Express asked DOT for an exemption to operate scheduled all-cargo service between the U.S. and the Dominican Republic, offering flights between Aguadilla, Puerto Rico, and Santo Domingo and Santiago, Dominican Republic. (Docket OST-99-5575)

Staff
Delta's decision to use Comair aircraft and pilots to launch its Washington-Boston Delta Shuttle service June 1 is an act of "bad faith" and violates the status quo under which pilots agreed to let Delta start the Shuttle, according to a lawsuit brought by Delta's Air Line Pilots Association unit. The suit, filed in the U.S. District Court of New York, seeks an injunction and declaratory judgment under the Railway Labor Act, saying ALPA agreed to accommodate Delta's plans for Shuttle in 1991 with the understanding that it would be operated exclusively by Delta pilots.

Staff
Airbus Industrie is considering development of several derivatives after it introduces the basic 550-seat A3XX-100 to the market, Jack Schofield, chairman, Airbus Industrie of North American, told the Aero Club of Washington yesterday. Derivatives under consideration include the A3XX-200 with 656 seats and a 7,650-nautical-mile range, the A3XX-50 with 480 seats and a 7,650-nm range, and combi and freighter variants, Schofield said.

Staff
The Allied Pilots Association will appear before Judge Joe Kendall today in U.S. District Court to file a brief on how to divide liability for the $45 million fine Kendall imposed on the union because of the February pilot sickout against American. Kendall gave the union until today to post its second $10 million installment toward damages. American claims the 10-day sickout cost it more than $50 million. APA spokesman Greg Overman said the union has not filed its appeal yet because it has not seen Kendall's written ruling on the fine and finding of contempt.

Staff
The Korean Air MD-11 that crashed April 15 near Shanghai appeared to strike the ground nearly wings level in a 35- to 45-degree angle of descent, the U.S. National Transportation Safety Board said yesterday. The board was quoting information issued by the Civil Aviation Administration of China, which is investigating the accident. The aircraft crashed shortly after takeoff from Shanghai, killing two pilots and one mechanic on board and five persons on the ground. NTSB and the Korean Civil Aviation Bureau are assisting in the investigation. The findings thus far:

Staff
Philippine Airlines, facing threats from creditors who want to scuttle its rehabilitation plan after majority shareholder Lucio Tan took back control, has resumed services to Xiamen, China. After a nine-month suspension, PAL is offering four weekly Xiamen flights, using A320 aircraft instead of aging A300B4s. PAL now operates to 12 international destinations in seven countries. The others are Los Angeles, San Francisco, Tokyo, Taipei, Singapore, Seoul, Fukuoka, Hong Kong, Singapore, Dhahran and Riyadh. Bangkok and Shanghai will come on line in July.

Staff
Thai Airways International aims to reap additional revenue of 1.28 billion baht (US$33.7 million) in the 1999-2000 fiscal year by raising fares 10-15% on 34 domestic routes, effective May 1. Thai expects the increase to bring in a profit of US$1.32 million. According to a TG official, the airline will lose US$45.82 million if it stays with current fares. TG has a monopoly on domestic routes, and apart from startup Angel Airlines, domestic private carriers are prohibited from competing with the national carrier.

Staff
All Nippon Airways will be linked July 1 with Air New Zealand, Ansett Australia and Varig, as part its entry into the Star Alliance. The ANA Mileage Club has 3.5 million members, and the Japanese carrier already has operating agreements with Ansett and Varig.

Staff
Canada Transport Minister David Collenette this week announced proposals to tighten up security measures for airlines and airports. The proposals will consolidate rules dating from 1987 to create new Canadian Aviation Security Regulations, Collenette said in Ottawa. Amendments would strengthen the rules against false bombs, weapon threats and misuse of keys and restricted-area passes. They cover combination codes and personal identification codes and would impose tougher provisions for incident reporting. Interested parties have until June 23 to comment.

Staff
BFGoodrich said commitments from two private, Middle East-based operators to re-engine their 727-200s to Super 27 configuration bring contracts from private operators to 18 aircraft. The program involved installing new nacelles and new engines. To date 53 Super 27s, including 22 from Valsan, have been sold.

Staff
A memorial service for Arnold Lewis, former editor of The Weekly of Business Aviation and a contributing editor of Business&Commercial Aviation and The DAILY's Regional Aviation supplement, who died April 21, will be held May 20 at 11 a.m. at St. George's Episcopal Church, 900 Princess Anne Street, Fredericksburg, Va.

Staff
Air Transport Association reported that air fares declined in March for the seventh month in a row. Average one-way fares dropped 1.2%. Coach-class fares were down 1.6% and first-class fares 1%.

Staff
Travelocity.com has introduced a best fare finder feature that interprets complicated fare rules and takes the consumer directly from the fare to the flight by displaying an interactive calendar showing the days on which the lowest fare is available. Consumers select preferred travel dates by clicking on the calendar. The feature is accessible through FareWatcher Email, a free electronic mail service, where members can monitor up to five different destinations. Travelocity.com e-mails a notice each time the fare changes by $25.

Staff
Northwest is offering a 1,000-mile discount to WorldPerks members who book awards travel through the Frequent Flyer Center at www.nwa.com by July 31.

Staff
Mexicana ended service to Lima on April 20, not AeroMexico (DAILY, April 26). AeroMexico's service to Lima is unchanged.

Staff
Air Namibia ordered a 747-400 Combi which will be delivered in October, Boeing said yesterday. The aircraft will be powered by General Electric. Boeing said it will provide customer support, such as staff, flight crew and maintenance training, technical assistance and local field service.

Staff
Airlines Reporting Corp. reported a 2% rise in total travel agent sales processed in March 1999, compared with the same month last year, to $7.9 billion, a record for a five-week month. Domestic fares, up 5% to $5 billion, also set a record. International fares were down 2% to $2.3 billion. Domestic commissions climbed 1% to $324.7 million, while international commissions declined 9% to $289.8 million. Average weekly sales per agency location were $34,784, down 6%.

Staff
A Boeing Business Jets 737 equipped with a PATS Inc. auxiliary fuel system flew for 13 hours, 51 minutes, traveling 6,252 nautical miles at an average speed of 451 knots. PATS has a contract with Boeing to engineer, build, install and certify the auxiliary fuel system on the BBJ.

Staff
U.S. Carriers Landing Fees Fourth Quarter 1998 Major Carriers Cost Landing Fees Per Landing Alaska 6,345,000 151.37 America West 8,409,860 163.35 American 53,656,000 271.15 Continental 33,553,000 288.97 Delta 55,348,000 229.75

Staff
FAA, the National Air Traffic Controllers Association and the Professional Airways Systems Specialists yesterday announced agreement on a revised plan to implement the Standard Terminal Automation Replacement System (STARS). FAA Administrator Jane Garvey said the new plan will focus on developing the full STARS as soon as possible while meeting short-term requirements for controller displays at a small number of facilities.

Staff
AT&T said it has obtained a three-year, multi-million-dollar contract from Delta to provide an integrated portfolio of global data and voice services to integrate and manage the carrier's company-wide network. The agreement provides voice and data services, AT&T Wireless Services, AT&T Local Services, frame relay and dedicated digital private-line services and teleconferencing.

Staff
DOT granted Mexicana an initial one-year exemption to provide scheduled service between Chihuahua, Mexico, and El Paso, Texas, which the carrier requested for at least two years. It plans to code share on the route on flights operated by Aerolitoral, using Metro III/Merlin aircraft. (Docket OST-99-5537)

Staff
Allied Pilots Association is gearing up for a long legal battle over the $45 million it was fined for disobeying a temporary restraining order during the February sickout against American.APA, which met last week to talk about its appeal strategy and the Reno Air acquisition that triggered the union-management confrontation, sees the fine as just the first phase of a lengthy legal process. APA has been regularly posting messages on its hotline and web site reminding members to comply with the TRO.