Aviation Daily

Staff
The jet-versus-turboprop debate has taken a new twist. Wayfarer Aviation, a White Plains, N.Y., aircraft management firm, advised companies considering fractional ownership in a Wall Street Journal ad Tuesday, "Don't waste your money on a jet." It said that for travel within 1,000 miles of Midtown Manhattan, the Wayfarer StarShares fractional ownership program, using Beech King Air turboprops, "wins hands down." The cost is far less and it provides direct access to a lot more airports.

Staff
United yesterday said it will initiate nonstop daily service Oct. 31 between Chicago O'Hare and Delhi, India. The route will be among the longest operated by United or other airlines, the company said. Stuart Oran, senior VP-international, said India "is a dynamic and fast-growing country which has been underserved from the U.S. These new flights will provide tremendous opportunities for both local and connecting customers." United will use a 747-400 with enhanced Phase Three Pratt&Whitney engines and expects the 7,484-mile trip to take about 15 hours.

Staff
FAA, alarmed by a series of NTSB decisions, yesterday issued an "interpretive rule" saying pilots are required "by regulation to comply with the clearances and instructions of air traffic controllers except in very narrow circumstances." In a Federal Register notice signed by Administrator Jane Garvey, the agency expressed concern that "a series of recent NTSB enforcement decisions has raised a question regarding the regulatory responsibility of pilots to hear and to comply with air traffic control clearances and instructions."

Staff
Atlantic Coast Airlines says in an SEC filing that if, by Jan. 2, 2001, United has not given the express carrier permission to operate regional jets of 44 seats or less in addition to its 50-seat CRJs, it may terminate the code-sharing agreement as of March 31, 2004. The carrier wants to retire its fleet of 28 19-seat Jetstream 32 turboprops by the end of 2001 and has been looking closely at replacing them with a fleet of around 50 Fairchild Dornier 328/428JETS. It has received 15 of 28 CRJs on firm order and has 27 options.

Staff
FAA does not have an implementation schedule yet for the Standard Terminal Automation Replacement System (STARS) but expects to announce one soon, an FAA spokesman said yesterday.

Staff
DOT said all parts of the department except FAA, the Coast Guard and the Bureau of Transportation Statistics have made their computer systems fully compliant with requirements for the Year 2000 date change.

Staff
Eight regional-airline stocks, on average, lost $1.23 per share during March. Total market value of the eight issues slipped by $301.8 million to slightly more than $5 billion. Only two of the eight ended the month Wednesday in positive territory and not by much. US Airways Express CCAIR, soon to be acquired by Mesa Air Group, was up 13 cents to $3.38 per share. Delta Connection Atlantic Southeast, which is being acquired by Delta, was up six cents to $33.63. United Express Atlantic Coast led all decliners, losing $3.88 to $28.13 per share.

Staff
SkyMark Airlines of Japan is reducing fares dramatically on two of its domestic routes, starting April 24. One-way prices on the seven-month-old carrier's heavily traveled Osaka-Sapporo service will be US$175, 31% below current fares. Osaka-Fukuoka will be discounted 36% this month to $83 each way. The Shinkansen bullet train to Fukuoka costs about $125. SkyMark also operates its original route of Tokyo-Fukuoka, one of the highest-volume routes in the world.

Staff
Mesa Air Group is offering employees a cash bonus of $150 for perfect attendance over a four-month period. Employees then are eligible to trade in part of their bonus for chances to win a 1999 Jeep Wrangler. It is similar to a scheme CEO Jonathan Ornstein launched several years ago while president of Continental Express, where the vehicle was an Eddy Bauer edition of the Ford Explorer. It proved so successful that mainline Continental adopted it and continues it today. "Perfect attendance goes a long way towards running an on-time airline," Ornstein said.

Staff
United Express affiliate Atlantic Coast Airlines May 4 will launch a schedule of 16 daily flights between Washington Dulles and Norfolk. Currently, ACA operates nine daily flights. The new schedule calls for a first flight between 6 and 7 a.m., continuing hourly until after 9 p.m. each evening. Flights to Washington from Norfolk will depart at 45 minutes past the hour, with flights from Washington to Norfolk scheduled at twenty minutes past the hour.

Staff
DOT made final its selection of Delta, Northwest and United for three U.S.-Romania third-country code-share opportunities that became available yesterday, and it affirmed its award of a fourth, available Nov. 1, to Continental. The department said it made its award to the airlines offering the most gateways. Continental objected, saying that an award based on this premise "would perpetuate the dominance of the largest airlines and the largest alliances and inhibit the immediate entry of a new competitor (Continental) between the U.S.

Staff
America West, gaining more from American's labor troubles than it lost from its own, said the net result will be positive and the company will post record first quarter profits. Earnings per share will reach $0.60 for the quarter, versus $0.53 in last year's record first quarter. America West said passengers have booked away from it due to last month's threat of a flight attendant job action. The airline cited a strong economy, stable pricing, improved revenue management and operational reliability for the expected record profits.

Staff
Cape Air, Hyannis, Mass., has begun service between Norfolk, Va., and Manteo (Dare County Regional Airport) in the Outer Banks of North Carolina. Cape Air, which uses Cessna 402s, will operate the three roundtrips per day year-round.

Staff
British Regional Air Lines Group plc announced record turnover, profits and passenger volume for 1998, its first full year since its introduction to the London Stock Exchange. Turnover was up 14.4% to #5,165 million and profit up 33.9% to #189 million, and earnings per share increased 35.6% to 8 pence. Chairman Michael Bishop said the carrier's Embraer ERJ-145 regional jet fleet buildup "is significantly changing the operational profile of the group with its route network expansion into Europe.

Staff
Amadeus is launching Amadeus Impact Program, its first collaboration with specific airlines and cruise, hotel and tour providers, in an attempt to help travel agents capitalize on the U.S. leisure travel market. The Impact Program creates incentives exclusively for Amadeus agents using leisure travel products such as Amadeus Air, TourSource and CruiseMatch 2000. The first Impact program runs through June 15 and features Alaska Airlines, Royal Caribbean Cruise Lines, Funjet Vacations and GOGO Worldwide Vacations.

Staff
American's Allied Pilots Association leadership is angry over a letter from VP-Flight Cecil Ewell telling pilots involved in the February sickout that attorneys for passengers in at least one consumer class action suit intend to subpoena the carrier's pilot attendance records.

Staff
Vnukovo Airlines, the second-largest carrier in Russia, reported that its traffic declined by 6% in 1998. The carrier did better than overall results for the sector - down 10% - but may have paid a price in profitability in doing so. Late in the year it tried to counteract the downturn in passenger volume, first by fixing its prices in depreciating rubles and then, in November and December, reducing prices in ruble terms.

Staff
Airports in the U.K. would have to establish "challenging short- and long-term targets" for increasing the percentage of trips to and from the airport made on public transit under draft guidance published this week by the Department of the Environment, Transport and the Regions. The guidance also would require airports to come up with "a set of performance indicators which can be used to monitor whether the strategy is delivering its targets and stated objectives," DETR said.

Staff
U.S. Major Carriers Domestic Share of Service Fourth Quarter 1998 Total Revenue Departures Alaska 39,385 America West 50,378 American 167,280 Continental 101,553 Delta 229,841 Northwest 136,455 Southwest 204,586 TWA 68,162

Staff
Global alliances will play a role in Asian economic recovery, Shelley Longmuir, United senior VP for international, regulatory and governmental affairs, told the American Chamber of Commerce yesterday in Japan. Asia is "in the midst of becoming one of the world's most open regional markets for aviations," she said, paving the way for efficiencies that flow from growing alliances in a deregulated international market.

Staff
London City Airport has announced the "welcome return start for a much-requested route" - Jersey - with the Flemish airline VLM. The Jersey service will begin April 26 and will be operated daily Monday through Friday. According to VLM's marketing and sales manager U.K., Titus Johnson, the timings are specifically targeted to enable a two-way flow between the island and Europe, with London City at the hub of a network of services which also includes Antwerp, Rotterdam, Luxembourg and Dusseldorf-Express-MGB.

Staff
InVision Technologies received an $18.9 million FAA contract for 21 CTX 5500 DS explosives detection systems, the company said. "This order represents the first purchase of EDS made by the FAA using funds allocated to improve aviation security as part of the...fiscal 1999 budget," the company said. InVision expects to complete shipments by Sept. 30. The order brings FAA's CT 5000 series purchases to 90 systems during the past four years.

Staff
Boeing's 717 transport is exceeding fuel burn performance targets by as much as 5% in flight tests, the company said yesterday. Jim Phillips, VP and program manager, attributed the performance to more efficient engine operations and reduced airframe drag. The improved performance could mean savings equivalent to 5% at cruise and 2.5% during climb, he said. This would yield abut 3% fuel savings on a flight of 300 to 500 nautical miles and a saving of 4% at 1,000 nautical miles, he said. The 717 is powered by two BMW Rolls-Royce engines.

Staff
Allan McArtor, president and chief executive officer of Legend Airlines, discusses airline competition in a speech featured on this week's Aviation News Today, to be broadcast Sunday at 12:30 a.m. and 1:30 p.m. on Washington's News Channel 8.

Staff
US Airways Shuttle pilots, represented by their own unit of the Air Line Pilots Association, have ratified an interim agreement that will increase pay and benefits while Shuttle and mainline pilots complete the integration process. Shuttle pilots will receive higher pay as they work their way up toward parity with mainline pilots, and they will receive no-furlough protection and improved retirement benefits.