Aviation Daily

Staff
China Airlines and Taiwan's Ambassador Hotels have agreed to a year-long program in which CAL's Taipei-Kaohsiung passengers can receive a 60% room discount at the Kaohsiung Ambassador Hotel by presenting their boarding pass.

Staff
Mesaba Airlines, effective Monday, will begin regional jet service between Northwest's Memphis hub and Huntsville, Ala.; Fayetteville, Ark.; Cincinnati, Ohio, and Wichita, Kan., Mesaba and senior partner Northwest announced. Mesaba will use the 69-passenger Avro RJ85 for the service.

Staff
The first AirTran Airways 717-200 made its initial flight this week from Long Beach Municipal Airport and will join the flight test and certification program, Boeing said. AirTran has ordered 50 of the 100-seat twinjets and holds options for 50 more. It is scheduled to get its first 717 at the end of the summer and seven more by yearend. AirTran is to receive 12 in 2000, 12 in 2001 and 18 in 2002. In AirTran configuration, the 717s will seat 117 passengers in mixed class. This airplane joins three others in the certification program.

Staff
Used Jet Aircraft Deliveries November 1998 Carrier # Type Engines Previous Operator AAR 3 737-200 ADV JT8D-9A Southwest AASI 1 727-200(F) JT8D-7B DHL Airways AeroPeru 1 737-200 ADV JT8D-15A British Airways Aeropostale 2 A320-200 V2527-A5 Transaer

Staff
South Korea is ready to negotiate with Taiwan on resuming Taiwan-South Korea flights, which were suspended in 1992 after Korea recognized the Chinese government in Beijing. Lee Tae Woo, deputy director for air operations at the Ministry of Transport, told The DAILY Seoul will invite Taipei during the second quarter of 1999 to begin talks by the end of the year. A 1996 approach by Korea drew a blank, he said. Korea is prepared to meet in Taipei, Seoul or a neutral venue and is very much in favor of resuming service.

Staff
Philippine Airlines creditors have approved a revised operating plan that forces the carrier to trim its fleet and become more efficient. The new plan was presented to the Export-Import Bank of the U.S. and European credit agencies at a recent meeting in Washington. PAL will be forced to rationalize its fleet from the present five types to four, with a total of 22 aircraft. Aircraft utilization is targeted for a 10%-20% improvement and sales outlets will be trimmed to cut costs, especially in foreign markets.

Staff
Iberworld, a subsidiary of Spanish tour operator Grupo Viajes Iberia, ordered two A320s plus two options. It already operates a fleet of four leased A320s.

Staff
World Trade Organization apparently has targeted both Bombardier of Canada and Embraer of Brazil for citations regarding illegal export subsidies. In confidential preliminary reports to both governments last week, details of which were leaked to the press, WTO faulted Brazil for its ProEx interest-rate equalization program that aids sales of the ERJ family of regional jets. Canada was cited for its Technology Partnerships Canada, a research-and-development fund that helped finance the Canadair Regional Jet.

Staff
New Aircraft Orders And Options November 1998 Firm Orders Options Carrier # Type # Type Engines Del. Dates Air Aruba 1 MD-90-30 - V2525 Nov98 ANZ 1 737-300 - CFM56-3C1 Apr00 ANZ - - - - Britannia 2 737-800 2 737-800 CFM56-7B Feb-May00

Staff
National Transportation Safety Board investigators yesterday were trying to determine whether flight control anomalies experienced Tuesday by a MetroJet 737-200 are related to two unexplained crashes of 737s. The MetroJet 737 crew declared an emergency and landed at Baltimore/Washington International. No one was injured. The aircraft, en route from Orlando, Fla., to Hartford, Conn., was cruising about 260 knots at 33,000 feet when it experienced an unintended wheel deflection while on autopilot, the safety board said.

Staff
The U.S. Navy is using an NKC-135 "Big Crow," a tanker aircraft modified for electronic warfare, to conduct aerial jamming of Global Positioning System signals this week along the East Coast during a joint exercise with NATO.The military is calling the exercise a "navigation warfare demonstration" to establish a "baseline on interference issues" (DAILY, Feb. 22).

Staff
Vanguard Airlines, which teetered on the edge of bankruptcy only a year and a half ago, reported its first-ever annual operating profit of $1.5 million for 1998, up from an operating loss of $25.4 million in 1997. In the fourth quarter of 1998, the operating profit was $100,000 and the airline had a net loss of $600,000. Last year's revenue grew 28% to $104.3 million. By crossing the $100 million mark, Vanguard now will be classified as a "national" carrier under DOT guidelines. It began flying in December 1994.

Staff
American has opened the annex at the C.R. Smith Aviation Museum. The $1.9 million structure houses the DC-3 Flagship Knoxville operated by American in the 1940s. Apollo astronaut Buzz Aldrin was guest speaker.

Staff
DOT denied United's motion that it reallocate Reno Air's five Chicago O'Hare Airport slots but said it will monitor Reno's continuing operations and reconsider the issue if circumstances change. The department agreed with United that American's acquisition of Reno means Reno would not qualify today to obtain the slots as a new entrant, as it did in 1994. But it disagreed that the merger has the effect of transferring the slots to American via trading in exempt slots.

Staff
BFGoodrich said it has formed an "independent safety and compliance team to conduct a top-to-bottom review of its Everett facility." The move came after stories appeared in Seattle newspapers that an FAA inspector found conditions were "ripe for setting up a catastrophic air carrier accident" at the aircraft maintenance facility.

Staff
DOT approved requests by seven foreign carriers - all that applied - for exemption from slot restrictions at Chicago O'Hare for the summer season. The department issued four orders granting proposals by Japan Airlines and All Nippon Airways; Mexicana and Iberia; Lufthansa and SAS, and Air France. JAL may operate five weekly Chicago-Osaka Kansai roundtrips, which it will begin about May 1, replacing service on the route discontinued last October by United. ANA may operate a daily Chicago-Tokyo Narita roundtrip.

Staff
American says its web site at www.AA.com has grown in popularity since its redesign about five months ago. More than one million members of the airline's frequent flyer program have visited the address since it was upgraded. The number represents more than 10% of active AAdvantage members. Traffic on the site currently tops one million visits each week, with numbers in excess of 300,000 on peak days. Year-over-year booked revenue has increased threefold.

Staff
Air Canada is offering electronic ticketing to Bermuda. VP-Sales and Product Distribution Marc Rosenberg said the new service continues the airline's expansion of e-ticketing into its international markets.

Staff
Horizon Air and Alaska Airlines have reduced fares by up to 48% through June 14 on flights from western Canada to cities in California, Arizona, Washington, Oregon, Idaho and Montana. The reductions apply to flights to Vancouver, Victoria and Kelowna, B.C., and to Calgary and Edmonton, Alberta. Tickets must be purchased by March 5.

Staff
Flights passing through French and Swiss airspace are expected to experience delays when restructuring of high-altitude flight routing begins today. French and Swiss air traffic control authorities said that while the restructuring will result in "substantial and permanent expansion of capacity," the changeover to the new routing system will involve a temporary reduction of capacity that may delay flights. Full capacity is expected to be restored "within four weeks," authorities said.

Staff
Delta named Rick Nixon its senior VP-cargo. He most recently was VP-Latin America for FedEx.

Staff
Despite more than $2.3 billion in airline investment, some elements of the aviation infrastructure will not be able to handle Year 2000 computer system changeover issues, according to IATA Director General Pierre Jeanniot. Some major systems will have completed upgrades and testing as early as next month, and Jeanniot is "quite confident" that most major air routes will have no Y2K disruptions. "But airline action alone cannot ensure business continuity," he said yesterday at an International Aviation Club luncheon in Washington.

Staff
DOT approved for one year a joint request by Air Canada and Mexicana for authority to code share between Chicago and named points in each carrier's homeland. Air Canada may display Mexicana's code on flights between Chicago and coterminal points Toronto, Montreal, Ottawa and Winnipeg, and Mexicana may carry Air Canada's code on flights between Chicago and Mexico City. In each case, authority is limited to traffic moving between Canada and Mexico. United supported the application.

Staff
Boeing executives told financial analysts and reporters yesterday that each of the company's programs will undergo scrutiny on a continuing basis and that any program that does not add value will be turned around, sold or dropped. Phil Condit, chairman, and Deborah Hopkins, chief financial officer, said Boeing will adopt three principles in an attempt to prop up the sagging value of its shares.

Staff
Air Transport Association said air fares fell for the fifth consecutive month in January. The average one-way fare dropped 3% and coach-class fares were down 4.9%. First-class fares rose 4.4%. ATA Chief Economist David Swierenga said, "The airline market continues to be highly charged and extremely competitive," causing air fares to decline.