Aviation Daily

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.

Staff
United supported DOT's plan to develop Alaska's international aviation service by waiving designation or frequency limits for operations via Alaska in future bilateral negotiations, but it told DOT it cannot support unilateral foreign carrier access for the sake of "benefits that may accrue to the state of Alaska." DOT is setting an "unacceptably low standard" when it bases its proposed expanded extrabilateral authority for foreign carriers to serve additional U.S.

Staff
Delta said yesterday it will acquire ASA Holdings, parent company of longtime Delta Connection code-share partner Atlantic Southeast, for about $700 million in cash. Delta said there will be no integration of pilot groups or seniority lists and the carriers will continue as separate entities. The deal is subject to regulatory approval, and Delta officials emphasized that it is not a merger. Under the agreement, a Delta subsidiary will make a tender offer to purchase all outstanding shares of ASA Holdings common stock for $34 per share in cash.

Staff
Pressing its complaint against prospective European Union hushkitting rules, Northwest told DOT it should take "should take firm and immediate steps to preserve the integrity of the ICAO [International Civil Aviation Organization] standard" on hushkitted aircraft. The U.S. aviation industry is united against the non-addition rule, which Northwest says is targeted at U.S. aircraft (DAILY, Feb. 9).

Staff
DOT Secretary Rodney Slater and Mexican Secretary of Communications and Transport Carlos Ruiz Sacristan signed an agreement on Monday expanding U.S.-Mexico aviation services under terms negotiated Jan. 25-26 in Zihuatanejo, Mexico (DAILY, Feb. 1). The signing was timed to coincide with President Clinton's meeting in Merida, Mexico, with Mexican President Ernesto Zedillo.

Staff
Midwest Express reported a 19.5% gain in traffic on 11.8% more capacity for January, compared with January a year ago, growing the load factor 3.7 percentage points to 57.4%. Midwest Express flew 124.5 million revenue passenger miles and 216.7 million available seat miles. Passengers enplaned increased 16.5% to 137,496. Skyway RPMs grew 8.9% to 5.3 million while ASMs dropped 5.5% to 12.2 million, boosting the load factor 5.7 points to 43.5%. Passengers flown increased 11.3% to 24,513.

Staff
House Transportation Committee sources are confident they can avoid a replay of last year's inability to go to conference on a full-year FAA authorization, settling for a six-month compromise written into the end-of-the-session omnibus appropriations bill.Sources say the problem last year was then-Speaker Newt Gingrich's accommodation of House Judiciary Chairman Henry Hyde, who opposed the Senate's bid to increase slots at Chicago O'Hare Airport, in his district.

Staff
US Airways Shuttle pilots conducted informational picketing at Washington Dulles and Washington Reagan National last week to protest lack of progress in achieving pay parity. Shuttle pilots say they receive pay on average 28% less than their peers who perform similar work.

Staff
The House Transportation Committee late Thursday approved unanimously a bill prohibiting flights of the British-French supersonic Concorde in the U.S. if the aircraft does not comply with Stage 3 noise limits. The prohibition would go into force if the European Union adopts noise regulations that could prohibit some U.S. hushkitted and re-engined commercial aircraft from operating in European airspace. The Concorde bill was introduced in the House by Rep.

Staff
Airline expansion and global coverage by a multitude of carriers has made flight frequency the most important criterion for travelers, according to BT Alex Brown analyst Susan Donofrio. "The carrier with the most flight service to the most cities should win the most customer loyalty" and wind up with a higher revenue share in those cities, she said.

Staff
US Airways Air Line Pilots Association Master Executive Council last week refused management's request to declare February a critical crew shortage month for DC-9 captains at Boston, Washington Reagan and Pittsburgh, and DC-9 first officers at Boston. By contract, the question goes before the union because the request is the fifth in 12 months. US Airways declined to comment.

Staff
Gulfstream Aerospace named Rich Cliffe VP-human resources and Eric Hinson senior VP-Gulfstream Financial Services Corp.

Staff
United will add a second daily flight between San Francisco and Hong Kong from June 10 until Sept. 7 to handle an increase in seasonal traffic. The flight will operate with a Boeing 747-400. While traffic has been affected by Asia's recession, United said demand during the summer months is an exception. "Past travel trends during this period show that customer demand in this market is continually strong for United," said Don Curran, VP-Pacific South, in an internal communique.

Staff
-- S.379 - introduced Feb. 4 by Sen. John Rockefeller IV (D-W.Va.) - a bill to authorize the DOT secretary to implement a pilot program to improve small-community access to the national transportation system. Referred to the Committee on Commerce, Science and Transportation. -- H.R. 603 - introduced Feb. 4 by Rep. Don Sherwood (R-Pa.) - to clarify the application of the Act popularly known as the "Death on the High Seas Act" to aviation incidents. Transportation and Infrastructure Committee.