Aviation Daily

Staff
Northwest traffic, which dropped 6.8% in January and 3% in February year over year, increased 0.8% in March. Capacity declined 0.5% and the load factor was 76.7%, up 1.0 percentage point. Domestic traffic rose 2.2% on 1.3% more capacity, which lifted the load factor 0.7 points to 73.5%. International traffic declined 1.3% on 3.3% less capacity, and the load factor increased 1.6 points to 82%. Cargo traffic grew 0.5% to 186 million ton miles, but domestic cargo was down 17.7% in March.

Staff
Iberia is demanding 4 billion pesetas (US$26 million) in damages from its pilots' union, Sindicato Espanol de Pilotos de Lineas Aereas (SEPLA), the Spanish carrier said yesterday in Madrid. Iberia argues that the staggered strikes of March 26, 27, 29 and 31 and April 1, 2, 4 and 5 caused an "abusive and disproportionate prejudice," and that the union did not act "in good faith" as required by Spanish law. The airline said the strike led to a 12% reduction in reservations, a loss of 100,000 passengers, during the Semana Santa holiday week before Easter.

Staff
The Fedex Pilots Association still is waiting to sign the contract its members ratified early this year (DAILY, Feb. 5).The contract kicks in May 31, and the union says that although FedEx has made no effort to delay the signing, it doesn't have a date. FPA continues to plan for the FedEx acquisition or merger it's convinced may be just around the corner. "We do not know what plans the company has in this regard, but the rumors are certainly prevalent," FPA VP Wally Huggins said this week in a recorded message to pilots.

Staff
Airlines operating small airplanes will get little help from manufacturers in developing the engineering-based inspection system mandated under a newly proposed FAA rule, and it is "unrealistic" to expect them to be able to do it on their own, the National Air Transportation Association said. The proposal, part of FAA's aging aircraft initiative, would apply to aircraft older than 14 years (DAILY, April 5). NATA said large and regional carriers that operate transport-category aircraft will get "strong support" from manufacturers in complying with the rule.

Staff
Delta's proposed U.S.-Russia third-country code share is intended to "restrain competition...and pre-empt Continental's code share with Air France," and American's would do no more than add capacity on a route already served by nonstops, Continental told DOT. American, Continental and Delta have applied for two U.S.-Russia designations available Jan. 22, 2000. Arguing that its proposal is the only one that will "expand competition between airline networks and add new hub gateways for on-line U.S.-flag service between the U.S.

Staff
Boeing expects to announce a buyer during the second quarter for its Boeing Information Services (BIS) subsidiary, which provides information and systems integration services to the federal government, the company said yesterday.

Staff
Percentage Non-Hub Flying by Regional Jets Percent of Percent to Flights to/from Non-Hubs Orlando 1994 2.1% 0% 1995 7.6% 79% 1996 6.5% 94% 1997 4.8% 33% 1998 2.1% 38% 1999 4.1% 46% Based on scheduled service.

By Michael Miller, [email protected]
Former American Chairman Bob Crandall was the highest paid executive in the company last year, even though he retired May 20. This and other facts were revealed in recent days in filings with the Securities and Exchange Commission. Leaders of Continental, US Airways and American received sizable pay increases and bonuses in 1998, while United's executives received smaller raises and maintained pay rates lower than competing carriers.

Staff
TWA's traffic for March rose 4.7% on 2.4% more capacity, which raised the load factor 1.7 points to 77.2% and enabled the carrier to post its best boarding total for a March since 1978. The February load factor also was a record. Domestic traffic rose 7.9% on 4.8% more capacity, which boosted the load factor 2.2 points to 75.9%. International traffic dropped 10.6% on 11.1% less capacity, resulting in a load factor of 85.4%, up 0.5 points. TWA boarded 2.3 million passengers last month, up 7.5%.

Staff
Growth Cities and City Pairs Served By Regional Jets Cities City Pairs Served Served 1992 0 0 1993 15 14 1994 48 48 1995 84 95 1996 92 110 1997 116 150 1998 151 284 1999 159 354

Staff
United's traffic increased 6.1% in March on 4.6% more capacity, which forced the load factor up 1.0 percentage point to 71.6%. Domestic traffic grew 4.7% on 5.9% more capacity, which lowered the load factor 0.9 points to 70.6%. Pacific traffic rose 2.4% on 5.7% less capacity year-over-year, resulting in a load factor increase of 5.8 points to 73.0%. March was the ninth straight month the Pacific load factor grew. Atlantic traffic jumped 22.6% on 19.3% more capacity, pushing the load factor up 2.2 points to 81.4%. "Demand for travel between the U.S.

Staff
Market Profile of U.S. Regional Jet Operations Total Cities Served 159 (Includes Markets in Canada Mexico and the Caribbean with service to the U.S.) City Pairs Served 354 Average Daily Regional Roundtrips 2.6 Average Stage Length (Miles) 412 Average One Way O&D Passengers Per Day 84

Staff
Minneapolis/St. Paul-based Sun Country Airlines and the Metropolitan Airports Commission have agreed to make Sun Country the anchor tenant at a new $53 million, 300,000-square-foot terminal opening in April 2001 near the Hubert H. Humprhey Terminal, where Sun Country currently operates. Sun Country will occupy four of the first eight gates at the new facility, which will provide for expansion of up to 18 gates to accommodate Sun Country's growth. The carrier will remain at HHH terminal for 24 months, until the new facility is built.

Staff
Southwest traffic grew 14.1% in March after a 17.2% increase during February. Last month, capacity increased 11% and the load factor rose 1.9 percentage points to 69.9%. During the first quarter, traffic has gained 16.6% on 10% more capacity, raising the load factor 3.7 points to 64.9%. The airline carried 4.9 million passengers in March, up 9%. In the first quarter, Southwest carried 12.9 million passengers, 1.1 million more than in the first quarter of 1998.

Staff
American is offering 10,000 bonus frequent flyer miles to customers who book vacation packages featuring participating hotels in Oahu and Maui. The deals are available on packages booked and purchased through May 31 for travel between April 7 and Dec. 16.

Staff
American and the Allied Pilots Association recessed mediated talks Tuesday and plan to continue discussions in hopes of reaching a deal on their dispute over American's acquisition of Reno Air. American issued a statement quoting Mediator George Nicolau as saying talks will resume soon at his call. Both sides have agreed to a media blackout on negotiation details until talks are concluded. So far, the two sides have met for a total of five days. APA is scheduled to return Monday to the U.S.

Staff
Top executives from two airlines that often battle on policy issues have written DOT, Justice and State Department officials hoping to fend off a development they fear could threaten exclusive code-share agreements among airlines.

Staff
AirTran's traffic grew 10.5% in March on 4.4% more capacity, boosting the load factor 3.6 percentage points to 66.1%. The carrier flew 313.6 million revenue passenger miles on 474.3 million available seat miles. Passenger volume jumped 25% to 581,318. Year-to-date RPMs climbed 14.8% and ASMs 9%, increasing the load factor 3.1 points. Passengers flown rose 20.1%.

Staff
United is overhauling its web site to make it easier to use.Among \capabilities the carrier expects to introduce soon is a frequent flyer section that allows members to check balances and select awards. United is selling 2,500 tickets each day via the Internet, 3%-4% of its total.

Staff
The Community of Sioux City, Iowa, and businesses and other municipalities in Iowa, Nebraska and South Dakota applied at DOT for an exemption for four slots at Chicago O'Hare Airport for two daily nonstop roundtrips. Noting DOT's award of slots to Savannah, Ga./Hilton Head, S.C., and Greenville/Spartanburg, S.C.

Staff
U.S.-Pacific airline capacity will grow faster than any other U.S.-based world market, according to an analysis by Salomon Smith Barney. Forecasting 10% growth in the first quarter and 13% during the first nine months, excluding Hawaii, the company attributed much of the increase to Asian carriers, including China Airlines, All Nippon Airways and Cathay Pacific. But adjustments may trim the forecast.

Staff
United Express will introduce service between Denver and Amarillo, Texas, through affiliates Great Lakes Aviation and Air Wisconsin. Beginning May 18, Great Lakes will offer three daily roundtrip flights in the market using 19-seat Beechcraft 1900 turboprop aircraft, and beginning June 10, Air Wisconsin will operate two daily roundtrips using 32-seat Dornier 328 turboprops.

Staff
The American Society of Travel Agents (ASTA) told DOT Secretary Rodney Slater it opposes the DOT Inspector General's proposed regulation of travel agent override commissions as potential anticompetitive. In a letter to Slater, ASTA said DOT should "concentrate on real issues," such as air traveler rights and providing comparative schedule and fare information to consumers.

Staff
Continental will begin daily nonstop 737-700 service between Cleveland and San Juan Dec. 16. The airline currently serves the route once a week, on Saturdays. Cleveland service complements Continental's daily nonstops to San Juan from its Newark and Houston hubs.

By Charles Rabb, [email protected]
House and Senate budget negotiators were deadlocked yesterday over whether House conferees will accept sense-of-the-Senate language saying no additional funding firewalls should be enacted for transportation activities, congressional sources said.