Aviation Daily

Staff
Indianapolis-based Chautauqua Airlines reported an 11.3% rise in traffic on 3.3% more capacity for October 1998 over October last year, which pushed the load factor up 3.9 percentage points to 54.6%. The carrier flew 16 million revenue passenger miles and 29.3 million available seat miles. Passengers boarded grew 11.8% to 73,335. Year-to-date RPMs increased 8.7% on 2.1% fewer ASMs, causing a 5.3-point gain in load factor. Passengers boarded grew 6.8%.

Staff
An audit by the DOT Office of Inspector General (OIG) concludes that FAA could do a better job of reacting to complaints received via the hotlines of the OIG and the FAA administrator. If it does not improve, the OIG said, allegations of fraud, waste or abuse might not be properly investigated. "We found deficiencies in FAA's reviews, or inadequate corrective actions for six, or 12%, of the 52 hotline referrals selected for review," the OIG said. "In addition, three of the six referrals exhibited more than one deficiency."

Staff
Amakusa Airlines of Kumamoto, Japan, barely one month old, has placed an order with Bombardier for one 39-seat Dash 8Q100, with delivery scheduled in October 1999 and revenue service planned for the spring of 2000, Bombardier announced. Amakusa Airlines, formed Oct. 9, is held 80% by local municipal governments, with the largest shareholder the government of Kumamoto Prefecture. The carrier plans to use the Q100 to fly two daily roundtrips between the tourist resort town of Amakusa and Fukuoka, as well as two daily roundtrips between Amakusa and Kumamoto.

Staff
Teamsters union promises to challenge Federal Express's right to call itself an airline under the Railway Labor Act if the company makes good on its plan to become more dependent on ground transport if its pilots strike. Two years ago, FedEx won dispensation from Congress to classify itself an airline and thus fall under the jurisdiction of the Railway Labor Act (RLA) rather than the National Labor Relations Act (NLRA).Unionizing under RLA is more complicated and demanding than under NLRA.

Staff
Northwest pilots, in their recent contract, have agreed to allow Northwest Airlink affiliates to acquire up to 50 50-seat regional jets. Although details were not immediately available, the new scope clause would tie future acquisitions to the number of new narrowbodies added to the mainline fleet. The agreement also would grandfather the number of Avro RJ85s operated by Airlink carrier Mesaba. The regional affiliate has on order 36 RJ85s, which are limited to 69 seats under the previous scope clause. Northwest has been evaluating both the CRJ and the ERJ-145.

Staff
Sen. Harry Reid (D-Nev.), a member of the Senate Appropriations transportation subcommittee, yesterday was declared the winner of last Tuesday's Senate race in Nevada by 401 votes. A recount of absentee ballots in one county shaved 58 votes off his election day margin of 459 votes. After announcement of the results yesterday, a Reid aide said, "It's complete. The Senator won by 401 votes. That's the final count." An aide to Rep.

Staff
The Canadian government has told the World Trade Organization that ProEx export subsidies granted Embraer regional jets are prohibited under Article 3 of the Agreement on Subsidies and Countervailing Measures (SCM) and must be withdrawn.

Staff
Grupo TACA Chief Executive Federico Bloch was elected chairman of the 26- member ITAL, the association of Latin American airlines, at the group's annual meeting in Lima. The outspoken Bloch replaces SAETA Chief Executive Robert Dunn Barriero, who has led the group for the past two years.

Staff
Summary of U.S. National Carriers Systemwide Traffic April 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change AirTran Airlines 525 47.88 593 311,744 46.28

Staff
TWA has donated five million frequent flyer miles to the Salvation Army. A Salvation Army spokesman said the miles will enable the organization to help victims in disaster areas. The Salvation Army sent 75 volunteers on TWA flights to the Caribbean to help victims of Hurricane Georges.

Staff
United Airlines Cargo has signed an integrated marketing contract with Wunderman Cato Johnson Chicago, which has been working on initiatives for United Cargo through 1998 and currently is planning for next year.

Staff
Northwest is taking a new approach to trying to lure back strike-bitten business travelers. The airline is offering a free unrestricted trip to people who buy two full-fare tickets by Dec. 18. Northwest also is giving away double miles on business-fare tickets through Nov. 30.

Staff
Changes in air service agreements between nations, open-skies policies and the availability of economically efficient twinjets may increase point-to- point operations between North America and Asia and lead to North Pacific extended-range twin-engine operations rivaling the current level in the North Atlantic, according to Boeing Co. In its latest Aero publication for the aviation industry, Boeing noted that ETOPS routes are flown worldwide but "dominate traffic in the North Atlantic market." The company reported increasing interest in ETOPS by U.S.

Staff
Frontier Airlines reported a 22.9% rise in traffic and 15.3% more capacity in October, compared with the same month last year. The carrier flew 109.5 million revenue passenger miles and 203.1 million available seat miles, which pushed the load factor up 3.3 percentage points to 53.9%..Passengers boarded grew 11.9% to 115,759. Year-to-date, Frontier's RPMs jumped 35.9% on 32.2% more ASMs, boosting the load factor 1.6 points. Passengers were up 13.9%.

Staff
The language of the fiscal 1999 FAA appropriations conference report on overflight user fees amounts to a vote of no confidence that the agency will come up with a fee schedule anytime soon, congressional aviation sources agree. Approving a $5.563 billion FAA operating expenses budget, in addition to the mandatory appropriation of user fees, the conferees said that due to agency delays in addressing legal concerns over the proposed fees, the agency is not expected to realize any income from overflight fees in fiscal 1999, which began Oct. 1.

Staff
Airborne Freight board declared a quarterly dividend of four cents per share payable Dec. 8.

Staff
Southwest will offer Saturday-only nonstops from Reno to Austin, Houston Hobby and San Antonio, starting Jan. 16, charging one-way fares of $89. Joyce Rogge, VP-marketing, said the aircraft used for the flights normally would sit on the ground as part of the carrier's reduced Saturday schedule. In April, Southwest introduced Saturday-only nonstops from Las Vegas to Spokane, New Orleans and Tulsa, and from St. Louis to Fort Lauderdale.

Staff
United VP-government and international affairs Cyril Murphy, a key figure in development of the carrier's alliance strategy, yesterday was named VP- international network development. Murphy, a native Californian, will be based at the carrier's Western Regiona l office in Los Angeles and report to senior VP-international Stuart Oran, and will work on expanding United's alliances in Asia with an initial focus on China.

Staff
British Airways has retired the first 747-100 to join its fleet. The aircraft, purchased in May 1970, clocked 102,000 hours on nearly 21,000 flights. BA, which just took delivery of its 50th 747-400, will retire all 15 of its 747-100s by 2000. It sold them to AAR Corp. and European Aviation Ltd.

Staff
A pilo ts strike at Federal Express would have little impact on the U.S. economy and would shut most of the cargo carrier's operations down despite the company's plans to keep going, airline industry consultants and economists say. On Tuesday, FedEx announced a three-pronged approach to keep flying through a strike - reconfiguring its domestic air system, expanding its ground network and operating the international portion of its air network through contract airlift (DAILY, Nov. 11).

Staff
Finnair is buying three used ATR 72 turboprops as part of its fleet renewal effort. At the same time the airline will sell two of its Saab SF340s.

Staff
Air France has signed a five-year commercial accord with Air Mauritius that will begin this winter. The airlines together offer 12 weekly flights on the Paris-Mauritius route, with two stopping on the neighboring French island of Reunion. Air France flies five of the 12 flights with two-class 747s, while Air Mauritius offers the remaining seven using three-class A340s.

Staff
City of Dallas told DOT it does not support the Dallas/Fort Worth Airport board's motion for DOT to mediate in the legal and political moras s surrounding use of Dallas Love Field.

Staff
Japan's customs agency ordered two Vivid Technologies detection systems to screen incoming baggage for drugs at Tokyo Narita Airport. The sale is Vivid's first in Japan and its first for automated inspection of inbound baggage. Vivid said it also received orders for its explosives detection systems from Teesside Airport, U.K., and Amsterdam Schiphol. These systems will be used to inspect baggage prior to loading.

Staff
UPS yesterday said revenue for the September quarter grew 28% to $6.2 billion from $4.8 billion the same period last year, when there was a 15- day strike against the company. Net income rose to $449 million from a loss of $10 million. For the first nine months, revenues jumped 11% to $18.1 billion from $16.3 billion and net income surged 126% to $1.3 billion from $558 million. Domestic revenues for the first nine months totaled $15.8 billion, up 11.2% from $14.2 billion, and international revenues amounted to $2.3 billion, up 10.1% from $2.1 billion.