Aviation Daily

Staff
U.K.-based Jersey European Airways ordered a few of every regional aircraft Bombardier makes in an unusual 15-plane deal this week. The order includes three 37-seat Dash 8-Q200s, four 50-seat Q300s, four 78-seat Q400s and four 50-seat Canadair Regional Jets. The carrier currently operates five Fokker F27s and three Shorts 360s, which the new aircraft will replace. It also operates 15 BAe 146 quadjets. Barry Perrott, the airline's CEO, said the ATR turboprops also were evaluated, but the Q400 filled the role for a larger aircraft on shorter routes.

Staff
Big Sky Airlines last month moved its Dallas/Fort Worth ground operations into Terminal E, where customer service and ramp operations are handled by Delta personnel with dedicated ticket, gate, ramp and office space for Big Sky, the regional said. Big Sky before Feb. 21 shared space in Terminal B. Big Sky last year was named to take over essential air service previously conducted by Aspen Mountain Air in several Texas, Arkansas, Missouri and Oklahoma markets.

Staff
Merpati Nusantara, which was grounded last August due to the regional financial crisis, has resumed operations. Operating four F28s and two MD90s, it is offering domestic services to seven major cities and regional flights to Kuala Lumpur, Penang, Johor Baru and Kaohsiung, abandoned last year by Garuda Indonesia. Merpati has recalled 1,500 staff members who were stranded when the airline suspended operations.

Staff
Varig will announce in the next few days that it will cut service to several international points because of the economic crisis in Brazil and the subsequent weakening of traffic from the country. Service to Washington, Atlanta, Orlando, Zurich and Porto, Portugal, will be suspended. Washington was served via Atlanta and Orlando via a tag flight from Miami. "Clearly it's driven by the economic crisis," said Varig spokesman Jeff Kriendler. There has been an increase in travel from the U.S. to Brazil but not enough to offset the lower Brazil-originating traffic.

Staff
Propelled by growth in FedEx's most profitable businesses, FDX yesterday reported net income of $78 million in its third fiscal quarter, which ended Feb. 28, and declared a two-for-one stock split. The company said results were held down by $81 million it paid out during the quarter - $52 million in domestic and $29 million in international operations - for contingency measures it took last year when FedEx pilots threatened to strike.

Staff
BAX Global unveiled BAXMart, an Internet-based system for ordering, managing distribution and delivering seafood. The company is testing the system with selected suppliers and distributors and expects to make it available widely late in the spring.

Staff
British Airways franchise partner CityFlyer Express is adding another ATR 72 to its fleet in April. With the arrival of two more British Aerospace Avro RJ100s from August and its five ATR 42s, the carrier will operate a total of 18 aircraft on its European route network this summer.

Staff
Embraer CEO Mauricio Botelho says the Canadians are "throwing fireworks in the sky, making a big noise," over the Brazilian ProEx interest-rate equalization program that was last week deemed unacceptable by the World Trade Organization. The WTO also found two Canadian programs unacceptable - the Technology Partnerships Canada (TPC) program, used for product development, and the Canada Account, used in some financing schemes. "I think they are very much exaggerating their position," Botelho said.

Staff
Raytheon has completed a successful bench test of its new Distributed Flight Data Acquisition Unit (DFDAU) flight data recording system at a Raytheon Aircraft facility in Wichita, the company said. Following ground and flight testing, the company expects FAA certification of the system by yearend. Raytheon Aircraft plans to install the system in its Beech 1900D 19-passenger regional aircraft.

Staff
Last month's pilot sickout will reduce American's first quarter pretax profits by more than $200 million, up from the airline's earlier estimate of $150 million. Business travelers have been slower to return than expected, American said. The cost of the labor dispute will outweigh the reason for it. American paid $124 million for Reno Air in December, and the quickly finished transaction set off concern among pilots that American would run Reno as a separate low-fare airline.

Staff
Mongolia and Korea have signed an agreement for a route between the two capitals, Ulan Bator and Seoul.

Staff
Jersey European Airways will end what is probably the world's shortest jet route this fall when it begins taking delivery of four new 78-seat Bombardier Dash 8-Q400 turboprops. The carrier currently operates a BAe 146 quadjet between Birmingham and the Channel Islands of Guernsey and Jersey. The Guernsey-Jersey segment is 23 miles with a scheduled block time of 15 minutes. Actual flight time is considerably less. The flights will be replaced by Q400s operating from Birmingham to each island independently (story below).

Staff
Fairchild Dornier 328JET will come out 1,740 pounds lighter than originally planned in terms of maximum gross takeoff weight (33,510 pounds) when certificated this summer. It was to have been a 35,250-pound MGTW airplane, which proved impractical due to airframe changes and the need to stick to the development schedule. The company will proceed with a 34,510-pound MGTW airplane, however, giving it an 890-pound improvement in payload with no increase in fuel.

Staff
DOT Secretary Rodney Slater indicated to a House subcommittee yesterday that Year 2000 computer compliance in European air traffic control is moving along, but some problems exist in China and smaller countries. Asked at a House Appropriations transportation subcommittee hearing whether DOT will publish a list of foreign countries prepared for Y2K computer changes, Slater replied, "We will definitely be meeting our responsibility in that regard." He said in the countries where U.S.

Staff
The House Transportation Committee has not decided what action to take on the 60-day Senate extension of the FAA authorization, a committee source said yesterday.The source said the committee still is focusing on the House Budget Committee's fiscal 2000 budget resolution, which will be on the House floor, and its implications for taking the aviation trust funds off budget, as Transportation Chairman Bud Shuster (R-Pa.) has proposed in his committee-approved five-year reauthorization bill.

Staff
Britten-Norman plans to re-enter the U.S. market with its Islander line of twin-engine piston- and turbine-powered utility and commuter aircraft. Until recently, the U.K.-based manufacturer was owned by Pilatus of Switzerland and focused its marketing efforts on the military and utility markets. The eight-passenger aircraft was popular in the early 1970s, particularly for short-range scheduled service in the Caribbean and related markets. Wings Airways of suburban Blue Bell, Pa., long served Philadelphia Airport with frequent flights, overflying traffic gridlock.

Staff
Used Regional Aircraft Transactions, December 1998 Carrier No. Type Engines Previous Operator Aerocaribe 4 Jetstream 32 TPE331-12UAR-701H BAeAMT Africair 1 Cessna 208B PT6A-114A Thunder Airlines Air Caraibes 1 Do 228-202 TPE331-5-252D Air Vendee Air Cargo 1 Shorts 330 PT6A-45R Corporate Carriers Air Europa 1 BAe ATP PW126 BAe AMT

Staff
FlightSafety Boeing broke ground on its $100 million Miami Training Hub, beginning demolition of a warehouse on a 5.5-acre site adjacent to Miami Airport. The 134,000-square-foot facility is sized to train about 7,000 pilots and 3,000 maintenance technicians per year, and the company plans to move into it next March.

Staff
TWA's new chief executive, Bill Compton, has made profitability his number one priority, pledging to keep his eyes glued to the airline's cost structure and unit revenue growth, and he is not ruling out alliances if that's what will free the carrier from its 10 straight years of losses. "We're starting to get some wind in our sails," he said in an interview. Two days into his job, he told The DAILY that TWA is a healthier airline than many in the industry believe.

Staff
San Antonio-based Fairchild Aerospace has appointed aerospace industry veteran Robert Stangarone VP-corporate affairs. Also this week, the corporation announced the appointment of Daniel Kirkpatrick as VP-technical support.

Staff
Osaka Kansai, opened in September 1994, is facing financial difficulty, possibly as a result of its high landing charges, generally considered to be one of three highest in the world. In October 1998, British Airways, Mongolian Airlines and Royal Brunei Airlines stopped flying into the airport, and at the start of this year, South African Airways and Brazil's VASP also dropped out.

Staff
U.S. government proposals to implement more rules in the airline business would not solve any problems, could have an adverse effect on safety and could cost airlines more than $6 billion in lost revenue, according to a study by the Economic Strategy Institute (ESI). Passenger Bill of Rights legislation could result in "higher air travel fares, lower efficiency in the industry, poorer customer service, reduced profitability and incentives that may come in conflict with safety objectives," said study co-author Scott Gibson.

Staff
Ozark Air Lines, a startup carrier headquartered in Columbia, Mo., applied at DOT for a certificate authorizing scheduled and charter combination service. The carrier, not connected with the Ozark Air Lines that became part of TWA in 1986, plans to offer service from Columbia Regional Airport to markets in "the Mid-United States," and it is seeking initial approval to provide scheduled service from Columbia to Dallas and Chicago with two 32-seat Dornier 328 jets, not yet certificated.

Staff
TWA's flight attendants, represented by the Teamsters, says Gerald Gitner's resignation as chief executive in favor of Bill Compton is "an executive shuffle that will not work," and the union wants TWA's board to remove Gitner and reject Compton's appointment. The union also blames the pair for what it considers an impasse in contract talks. Union Chair Sherry Cooper and President and General Chairman William O'Driscoll said TWA's board "must reject this manipulative shuffle.

Staff
China Airlines, TransAsia Airways and Far Eastern Air Transport Service have entered a joint venture to form Kaohsiung Airport Catering Services Ltd. A CAL spokesman said the new company will be capitalized at NT$270 million (US$8.2 million), with CAL and TransAsia each holding a 45% stake and Far Eastern the remaining 10%. The new company is expected to gain a 75% share of the market in the southern Taiwan region and is projected to generate revenues of $12.2 million annually, with a yearly profit of nearly $1 million.