Aviation Daily

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.

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.