Aviation Daily

Staff
Raisbeck Commercial Air Group said FAA granted it a supplemental type certificate for a Stage 3 noise reduction system designed for the heaviest Boeing 727 takeoff weight, more than 200,000 pounds. Raisbeck said the STC completes its Stage 3 offerings for all takeoff weights, providing Stage 3 certification noise levels at takeoff, sideline and approach that are "well below" hushkitted airplanes of the same weight.

Staff
FAA yesterday ordered a one-time inspection of the center fuel tank wiring and an electrical bonding test of tank components on 248 Boeing 747s. The agency overrode Boeing objections that the requirement to inspect the center fuel tank wiring and components was initiated as a voluntary inspection to collect data necessary to assess the in-service condition of the fleet.

Staff
Boeing is offering a new main-gear wheel and carbon brake designed for the 767-200/300 by French manufacturer Messier-Bugatti, the U.S. company said yesterday. "Our airline customers told us they wanted a second option for 767 brakes," said Dan Mooney, Boeing's 767 chief project engineer. He said the Messier-Bugatti brakes are equivalent in performance to AlliedSignal brakes introduced last year. Either suppliers' wheel and brake system can be installed on any carbon-brake-equipped 767.

Staff
PS Group Holdings said US Airways exercised lease termination rights by purchasing and then reselling five of six BAe 146 aircraft to PS Group Inc. The airline "continues to indicate that it might exercise its lease termination rights on the last remaining BAe 146 aircraft leased from PSG, perhaps as early as the third quarter," said the company.

Staff
Atlas Air said yesterday it has placed $543 million in Enhanced Equipment Trust Certificates as permanent, long-term financing for four new 747-400 freighters scheduled for delivery this year and a fifth freighter to be delivered next year. The funds will be held in escrow until the aircraft are delivered to Atlas, said Steven Nevin, chief financial officer. Placement agents were Morgan Stanley Dean Witter, BT Alex. Brown, CIBC Oppenheimer and ING Barings.

Staff
Regional Jet Aircraft Systemwide Aircraft Utilization Per Day, Year Ended Third Quarter 1998 Canadair RJ145-200 Atlantic Southeast Midway Total Number of Aircraft Operated 3 6 10 Total Fleet Operations Departures 22 15 38

Staff
Moody's Investor Service yesterday revised its long-term outlook for TWA to negative, saying the airline's lack of profitability, limited access to liquidity and highly leveraged financial picture make it "particularly vulnerable" to an economic downturn or fuel price increase. Although the airline has sought to improve yields and lower costs, Moody's noted that the company's cost structure is "relatively high compared to the U.S.

Staff
Regional Jet Aircraft Operating Costs Year Ended Third Quarter 1998 Dollars Per Block Hour Canadair RJ145-200 Atlantic Southeast Midway Average Crew Cost $373 $391 $380 Fuel&Oil 552 541 547

Staff
Vanguard Airlines will increase Atlanta-Kansas City service from three roundtrips per day to five, starting June 1.

By Denise Marois, [email protected]
Spirit Airlines, which announced recently it will offer daily nonstop roundtrip Detroit-Los Angeles service and is eyeing Central America and Caribbean routes later this year, is expanding carefully and with an eye toward profit. The L.A. service, which starts June 17, is an example of how Spirit maximizes efficiencies - it takes advantage of the change in time zones by flying on an evening schedule that allows the aircraft to be in service the next day. "Our costs to develop the service are very, very low," said President, Chief Executive and founder Ned Homfeld.

Staff
Tower Air flew 299 million revenue passenger miles in March, 24.1% more than the same month last year, on 390 million available seat miles, up 22.6%, increasing the load factor 0.9 percentage points to 76.7%. Total block hours flown declined 5.6% to 4,016 and passengers carried grew 36.4% to 120,000. Year-to-date RPMs and ASMs each gained 13.1% and the load factor was unchanged. Passengers carried grew 26.8% while block hours dropped 8.4%.

By James Baumgarner, [email protected]
FAA will announce shortly decisions on a revised schedule for the Standard Terminal Automation Replacement System (STARS) and on which color display will be selected for the 173 Tracons and 190 military facilities that will be equipped with the system, the agency said yesterday. Competing for the color display are Raytheon's early display configuration (EDC), which is part of the original STARS program, and Lockheed Martin's common automated radar terminal system (ARTS).

Staff
FAA has approved Kitty Hawk's floor modification kit for Pemco and AEI 727-200 aircraft converted for cargo operations, the company said yesterday. Tom Christopher, chairman, said the kit terminates an airworthiness directive on the cargo floor strength of converted aircraft and upgrades the average weight to 6,000 pounds per cargo position.

Staff
Emirates and Air Lanka have agreed to code share on Emirates' twice-weekly Colombo-Singapore and Colombo-Jakarta flights. Air Lanka already operates five weekly flights to Singapore, and the code share will enable it to offer daily service. Jakarta is a new destination for Air Lanka. In addition, Emirates is starting new daily flights from Dubai to Zurich via Istanbul, using A310-300s, and adding frequencies to Hong Kong.

Staff
Pemco World Air Services delivered a 737-800 to International Lease Finance Corp. following an avionics upgrade and interior modifications. ILFC will lease the aircraft to China Hainan Airlines.

Staff
A House Transportation Committee source yesterday called the fiscal 1999 FAA funding formula set by appropriations conferees - 15% from general revenues and 85% from the aviation trust funds - an "aberration" that was done "without our consultation." The source said the committee will try in this year's FAA reauthorization conference to restore the 30-70 split that prevailed in fiscal 1998.

Staff
Summary of U.S. Regional Jet Operators Scheduled Services as of Second Quarter 1999 Code Share Active In Aircraft Carrier Partners Aircraft Fleet Orders Air Canada Canadair 24 0 Air Wisconsin UA Canadair 4 5 American Eagle AA Embraer 25 102

Staff
Ansett Australia is doubling its Melbourne-Bali service to twice weekly due to growing demand.

Staff
Royal Nepal Airlines (RNA) canceled its 58 daily flights, 52 domestic and six international, as a strike by its pilots entered a second week. Captain Bijaya Giri, president of the Nepal Airline Pilots Association (NAPA), said the strikers are protesting RNA's one-year wet-lease contract with China Southwest Airlines for a 757-200 aircraft. The pilots say they will stay out on strike until Royal Nepal terminates the wet-lease and returns the aircraft. The wet-lease took effect March 10, and NAPA served notice for the strike a week later.

Staff
Eagle USA Airfreight believes it will report better-than-expected financial results for the second quarter of its 1999 fiscal year, the company said yesterday. It forecast net income of $5.2-$5.6 million, or $.27-$.29 per share versus a First Call estimate of $.24, on sales of $131-$133 million. In the year-earlier quarter, the company earned $4 million on $90.5 million in sales.

Staff
All Nippon Airways will reduce its board from 31 members to 19 in June, at the time of its annual meeting, and will carry out a reorganization in the meantime in an attempt to streamline decisionmaking and reduce costs. Kichisaburo Nomura, president and chief executive officer, said reform is necesary because of Japan's airline deregulation and "intense pricing competition," new accounting and financial systems and "the potential for a protracted economic recession." Among principal initiatives will be formation of:

Staff
U.S. Major Carriers Atlantic Share of Service Fourth Quarter 1998 Total Revenue Departures American 6,192 Continental 3,284 Delta 6,445 Northwest 2,324 TWA 1,621 United 4,806 US Airways 1,756 Total 26,428 Average Number of

Staff
Alaska Airlines traffic in March mirrored its February increase, up 9.1% on 7.2% more capacity. The load factor rose 1.2 percentage points to 69%. The airline carried 1.15 million passengers last month, up from 1.08 million in March 1998. First quarter traffic was up 9.9% on 8.4% more capacity. Subsidiary Horizon Air's traffic grew 32.8% on 29.2% more capacity, forcing the load factor up 1.7 points to 61.8%. Horizon carried 421,800 passengers last month, up 24% from 289,000 in the year-earlier period.

Staff
DOT granted one-year renewals for Consorcio Aviacsa to continue to conduct scheduled combination service between Houston and two points in Mexico, Monterrey and Mexico City. (Dockets OST-98-3512, 99-5441)

Staff
Continental flight tested the Aircraft Communications Addressing and Reporting System (ACARS) of a 737 for Year 2000 date change capability during what the carrier termed the first flight in a simulated Y2K environment by a commercial airline. Last week, United reported an ACARS Y2K demonstration using a 747-400 that did not leave the ground (DAILY, March 31). Continental set the flight management computer and other date-related systems of a 737-700 for the last hour of 1999 and flew the aircraft for one hour at Houston while the systems advanced into Jan. 1, 2000.