Aviation Daily

Staff
Hong Kong International Airport's second operational runway will open May 26, giving Hong Kong a two-runway airport for the first time. Initially, the north runway will open during the 10 a.m.-4 p.m. peak period and during a few other periods as navigation instruments are calibrated and additional maintenance is performed. Despite the new capacity, the airport will continue to operate at the limited maximum of 37 movements per hour. By October, the figure will rise to 40 per hour and the new runway will be rated Category III, allowing operations in zero visibility.

Staff
Organizers of a high-level international aviation conference this fall hope to focus the world's attention on the barriers to growth in aviation, chiefly from lack of infrastructure development. The "Global Summit on International Aviation Infrastructure," Oct. 31-Nov. 3 in Washington, is being organized by George Washington University's Darryl Jenkins, executive director of the school's Aviation Institute. The co-chair is Norman Mineta, former House aviation subcommittee chairman and former chairman of the 1997 National Civil Aviation Review Commission.

Staff
Airbus Industrie yesterday delivered its 2,000th aircraft since the consortium was established 30 years ago. The aircraft, an A340-300, was delivered to Lufthansa. "Airbus Industrie's goal is to maintain half of the market share for commercial airliners in terms of value," said Noel Forgeard, chief executive. He said Airbus delivered less than 1% of commercial jetliners in 1974, but that share of deliveries grew to 30% in 1998 and will reach 40% in 2000.

Staff
Overcapacity in China and a drop in domestic travel has prompted Chinese carriers to explore wet-leasing aircraft to other airlines. China Southern Airlines (CSA) will lease two Boeing 777-200s to Biman Airlines of Bangladesh. The aircraft will be used for the Hadj pilgrimage to Mecca, starting in July. CSA flight services official Zhang Wu said the airline was advised against wet-leases by its maintenance subsidiary because the interior is always damaged by passengers who have never traveled in an aircraft before.

Staff
Consumer uncertainty over booking in Year 2000 could cost the top eight airlines $400 million in lost revenues mainly because of "declining credibility of the FAA's efforts to address the Y2K problem," according to a recent study by Denver-based airline industry consultants The Boyd Group. The study, "The Y2K Threat to Air Traffic Control - Airline Shareholders, Airports&Consumers At Risk," says the public is concerned because FAA has been consistently late with major projects. FAA says its safety-related systems will be Y2K-compliant this year.

Staff
Senate Judiciary antitrust subcommittee Chairman Mike DeWine (R-Ohio) said yesterday that the panel will decide "in the next few days" whether its planned hearing into anticompetitive practices in the airline industry will focus on American, subject of a Justice Department antitrust lawsuit, or will cover industry-wide practices. The subcommittee wants to hold the hearings next month.

Staff
FAA this week issued five short-term recommendations to encourage compatible use of land around airports. The guidelines, part of the agency's Land Use Initiative, aim to explain federal policies and clarify other land-use and noise issues. Airports have become quieter with the approach of FAA's Jan. 1 deadline for converting carrier fleets to Stage 3.

Staff
McDonnell Douglas DC-10 Aircraft Operating Costs, Fourth Quarter 1998, Dollars Per Block Hour DC-10-10 American United Average Crew Cost $1,259 $1,259 $1,160 Fuel&Oil 1,101 1,166 1,138 Rentals -- 16 9

Staff
Akron-Canton, Ohio, wants DOT to reallocate slots used by Trans States to the community. Telling DOT that Trans States' Chicago O'Hare service is "substandard" in terms of on-time performance, Akron-Canton asked DOT to withdraw the six slots used by the United Express carrier and "temporarily" reallocate them to the community if the carrier does not exceed a 90% on-time performance for one calendar month within 120 days from June 1. Such an action by DOT would be more effective than assessment of civil penalties, Akron-Canton said.

Staff
Air Lanka's revenue passenger kilometers for April jumped 26% and 25.8% year-to-date is up 25.8%. Freight volume was down 6.9% last month. Air Lanka carried 118,680 passengers in April, up 21.6%.

Staff
American, stung by a Justice Department lawsuit May 13, anticipated the action for several months. The airline's suit-specific web site to respond to the charges, www.aadoj.com, was registered on March 31.

Staff
Pratt&Whitney named Larry Knauer president-space propulsion.

Staff
LanChile announced Friday it will join the oneworld alliance, a move expected after the carrier received antitrust immunity for its pact with oneworld partner American. LanChile becomes the eighth member of oneworld, joining British Airways, Cathay Pacific, Canadian Airlines and Qantas as well as newly announced members Finnair and Iberia. LanChile will join next year, linking its frequent flyer program, customer service and computer systems with all other partner carriers. The airline operates 120 daily flights with 46 aircraft and has been flying since 1929.

Staff
British Airways and Iberia will begin code sharing June 17 on 27 routes. Tickets went on sale worldwide last Friday. All code-share services will be non-smoking, in line with BA policy. BA announced it plans to buy a 9% stake in Iberia on Feb. 12.

Staff
Bombardier Global Express has received type approval from the European Joint Aviation Authorities, the last major milestone in the program before deliveries begin to customers.

DOT

Staff
Approved an Airline Brokers Co. charter using a Mexicana 727-200 for 13 roundtrips carrying 150 passengers on a Miami-Holguin, Cuba-Miami routing June 7-Aug.

Staff
Air New Zealand appointed Erwin Jurgensen manager-Latin America.

Staff
Nav Canada will reduce its air navigation service fees by $90 million a year, beginning Sept. 1.About 98% of the fees are charged to air carriers. Nav Canada says its fees, which replace the air transportation tax, already have saved airlines 27%. The 33% reduction in September will give airlines a total savings of $255 million per year.

FAA

Staff
-- In Federal Register dated May 7...Issued an airworthiness directive on Boeing 767 aircraft requiring inspection inside the forward trunnion joint of the main landing gear...Revised a proposed AD on Saab 2000 aircraft concerning inspection of the aileron control cables...Proposed an AD on Embraer EMB-145 aircraft to require inspection of the main landing gear.

Staff
Indianapolis-based American Trans Air last month posted a record scheduled service load factor of 79.4%, a carrier spokesman said. Amtran's scheduled revenue passenger miles jumped 14.6% to 537.9 million, compared with April 1998, as scheduled capacity gained 14.1% to 677.3 million available seat miles. Scheduled boardings swelled 18.2% to 419,085.

Staff
Delta's Air Line Pilots Association unit negotiating committee still is trying to reach agreement on flying the Boeing 777, but the two sides have not concurred on pay rates. The union proposes $318.96 per flight hour for pilots and Delta wants $238.66. The two sides will meet May 18. Delta needs a ratified agreement by July 31 and is threatening to cancel the remaining 777s on order without one. Pilot ballots on the issue are due May 29.

Staff
McDonnell Douglas DC-9-30 and MD-80 Systemwide Aircraft Utilization Per Day Fourth Quarter 1998 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 21 116 34 Total Fleet Operations Departures 108 523 173

Staff
Although not a part of an agreement to extend FAA budget authorization through Aug. 6, House Transportation Chairman Bud Shuster was assured by House leadership that it would permit a vote on his AIR-21 the week of June 14. The FAA extension agreement was the third this fiscal year. Shuster would support the extension only if assured of a House vote on his bill.

Staff
McDonnell Douglas DC-9-30 and MD-80 Aircraft Operating Costs Fourth Quarter 1998 Dollars Per Block Hour DC-9-30 Continental Northwest TWA Crew Cost $664 $485 $311 Fuel&Oil 378 416 347 Rentals 196 28 307

Staff
Singapore Airlines, not immune to Asia's economic downturn, posted operating profits of S$549 million (US$324 million) for fiscal 1998-99 on Friday, down 27.3% from the prior year. Pre-tax profits fell 14.5% to S$882 million ($520 million). Like several other Asia/Pacific airlines, SIA deferred aircraft deliveries, saw its yields decline and experienced stagnant year-over-year revenues. SIA's fleet became even newer than it was, as the carrier took delivery of 11 new aircraft during the fiscal year ended March 31, including four medium-range Boeing 777-300s.