Aviation Daily

Staff
The Air Transport Association (ATA) board has endorsed a combination of FAA reforms and off-budget status for the aviation trust fund as its program for Congress's "Year of Aviation," Southwest Chairman, President and Chief Executive Herbert Kelleher said yesterday. Speaking at the Wings Club in New York, Kelleher laid out an ATA position that combines elements of the administration's FAA plan (DAILY, Feb. 4, 9), the trust fund proposals of Reps. Bud Shuster (R-Pa.) and James Oberstar (D-Minn.) (DAILY, Jan. 7), and recommendations from study groups of recent years.

Staff
Southwest has signed a three-year contract with Todays Staffing, a subsidiary of CDI Corp., to provide managed staffing support. Todays Staffing will open an on-site managed staffing office at Southwest's Dallas headquarters March 1 to provide clerical, legal and financial support.

Staff
TWA lost money in 1998 for its 10th consecutive year, posting a net annual deficit of $120.5 million yesterday and a worse fourth quarter. The loss compares with a $110.8 million deficit in 1997. During the fourth quarter, losses of $79.1 million more than doubled the $31.2 million in red ink for the fourth quarter 1997. The losses came despite a 22.6% drop in the cost TWA paid for a gallon of jet fuel, which lowered fuel expenses more than $136 million during 1998.

Staff
A new study shows that sitting for more than four hours on a long trip, whether by plane, train or car, can raise one's risk of post-travel blood clots, a phenomenon that in rare cases can lead to the clot breaking off and blocking key blood vessels in the lungs.

Staff
Sabena will match other carriers and lower travel agent commissions in the U.S., beginning March 1. For U.S.-issued tickets, commissions will be 8%, with a maximum of $100 roundtrip and $50 one way.

Staff
A Kiwi International 727 stepped in a tarmac pothole during the weekend at Newark Airport. The jet, loaded with 162 passengers bound for Cancun, sank on pushback into a hole up to five feet wide and the wing nearly hit the ground. Four flight attendants sustained minor injuries. The Port Authority of New York and New Jersey claims no responsibility for the sinkhole.

Staff
Kitty Hawk and Hamilton Aviation said yesterday FAA has approved their alternative means of compliance with an order to modify the floors of 727s converted to cargo aircraft. Kitty Hawk said its modification will allow an aircraft to operate using all effective payload for the life of the airframe. Kitty Hawk said it plans to market its modification package to other cargo operators. Hamilton Aviation And Wagner Aeronautical said their approval will allow 8,000-pound loads to be carried in pallet positions two through six and nine through 11.

Staff
Ansett Australia has sold its majority stake of 68.2% in Diners Club Ltd., the Australian firm that operates as a franchise of parent Diners Club International, to raise funds to invest in expansion. Ansett Executive Chairman Rod Eddington said the carrier intends to concentrate on its core business and is evaluating the sale of all other non-airline business to help it embark on a fleet renewal program. All funds derived from the sales will go toward paying for new fuel-efficient, modern-technology aircraft.

Staff
McDonnell Douglas DC-9-30 and MD-80 Aircraft Operating Costs Third Quarter 1998 Dollars Per Block Hour DC-9-30 Continental Northwest TWA Crew Cost $578 $683 $319 Fuel&Oil 384 435 363 Rentals 205 36 303

Staff
British Aerospace yesterday resurrected its BAe146/Avro RJ as the Avro RJX, its offering in the already crowded market for large regional jets. BAe is offering the aircraft with four new AS977 engines from AlliedSignal. Alan Stiley, VP sales and marketing, told aviation reporters in Washington that BAe has authority from its board to offer the RJX conditionally in 70-seat, 85-seat and 100-seat variants.

Staff
Malaysia Airlines is offering a free upgrade to business class for North American passengers who purchase a full-fare economy ticket to Asia. Full-fare business-class passengers get the same automatic upgrade to first class, and both premium cabin passengers can receive complimentary chauffeur service to and from the airport. The offer is valid through Nov. 30.

Staff
TWA is offering Elite and Elite 1 members of its Aviators program unlimited domestic upgrades, beginning March 1. Platinum-level members already are entitled to the upgrades. The new policy eliminates the need for Elite and Elite 1 members to earn, purchase or carry upgrade certificates.

Staff
Denver-based Frontier reported a 38% gain in traffic on 31.7% more capacity for January, compared with the same 1998 month, which boosted the load factor 2.6 percentage points to 55.9%. Frontier flew 143.1 million revenue passenger miles and 255.9 million available seat miles. Boardings grew 44.1% to 166,322.

Staff
AirTran and Beau Rivage Resort have entered a joint marketing partnership to provide daily nonstops from Gulfport/Biloxi Airport to Dallas/Fort Worth, Houston, Nashville, Fort Lauderdale, Tampa and Atlanta. The new service will start March 15 and increase daily flights at Gulfport/Biloxi from 21 to 29.

Staff
American and its Allied Pilots Association resumed talks over the Reno merger Monday and yesterday, and American reported it is returning to normal operations. Today, the two sides are headed back to court, where American will report to Dallas District Court Judge Joe Kendall the amount of revenue lost as a result of the 10-day pilot sickout. American spokesman Tim Smith said yesterday that the list of pilots calling in sick continued to shrink.

Staff
Tension is in the air as Singapore Airlines pilots and management negotiate salaries as part of a new collective bargaining agreement. Management has offered a 2% pay increase, plus a bonus of three months' basic wages if the company makes a profit of S$1.4 billion (US$848 million), according to SIA Pilots Association (SIAPA). A profit of S$1 billion would bring one month's bonus and S$500 million one week's extra salary. SIAPA has asked for a 3.5% increase retroactive to Nov. 1, 1998, plus a bonus of three months' pay regardless of the company's profit level.

Staff
McDonnell Douglas DC-9-30 and MD-80 Systemwide Aircraft Utilization Per Day Third Quarter 1998 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 23 116 34 Total Fleet Operations Departures 115 419 178

Staff
Malaysian and Indian transport authorities will meet in April in New Delhi to work out a new air services agreement. They intend to pave the way for airlines of both countries to increase frequency and capacity in view of high demand for seats from both sides which has developed since the two governments relaxed visa requirements for tourists. The new agreement will also include more destinations for Malaysia Airlines in India and for Air-India and Indian Airlines in Malaysia.

Staff
France has completed the consolidation of its aerospace and defense industry with the partial privatization of Aerospatiale and its merger with private defense electronics group Matra Hautes Technologies, government officials announced Monday. In exchange for the merger, the group of French tycoon Jean-Luc Lagardere, which controls Matra, will hold 33% of the new entity and will be its largest private shareholder.

Staff
SkyMall and its subsidiary Durham&Co. have entered an agreement to provide merchandise to United. SkyMall and Durham will offer Durham's logo merchandise and SkyMall products and services at United's corporate store at its world headquarters outside Chicago, which serves United employees and visitors.

Staff
Aloha Airlines has introduced a package of new frequent flyer incentives that will enable members of the AlohaPass program to earn credits on Aloha and United frequent flyer programs simultaneously. Aloha also doubled the number of Mileage Plus miles earned on each of its flight segments from 250 to 500. The "double dipping" offer applies to flight credits earned for travel on Aloha or Island Air, and the increased Mileage Plus miles per flight segment are effective Feb. 19-Dec. 31.

Staff
General Electric Aircraft Engines yesterday denied reports that it has made an offer to Boeing to produce a higher-thrust GE90 engine for the 777-200X/300X in return for an exclusive on those aircraft. GEAC said it has continued pre-development work on such an engine but has not made an offer to Boeing. Sources say Boeing needs to produce the 777-200X or lose the super long-range market by default to the Airbus A340-500.

Staff
Southwest told Wall Street analysts yesterday its bookings for soon-to-start Islip, N.Y., service are running ahead of its startups at Providence and Manchester, two wildly successful East Coast expansion sites.Southwest, which expects to grow East Coast capacity roughly 30% this year, will take delivery of 32 737-700s and is kicking the tires of four used 737-300s.

Staff
The European Union's attempt to impose ramp checks on foreign aircraft suspected of non-compliance with international safety regulations was declared "null and void" yesterday because of a British-Spanish dispute dating back to the Treaty of Utrecht (1713). The proposed legislation, drafted after a 1996 crash off the coast of Dominican Republic that killed 176 European passengers, was opposed by Spain last December.

Staff
The last of 44 ARSR-4 air route surveillance radar systems for FAA and the Defense Department is being installed at Ajo, Ariz., Northrop Grumman's Electronic Sensors and Systems Sector said yesterday. The ARSR-4, designated AN/FPS-130 by the U.S. Air Force, is the only joint-use, three-dimensional long-range surveillance radar system of its kind, the company said. It is being used by FAA for en route air traffic control surveillance and by the Air Force for peacetime air sovereignty and drug interdiction.