Aviation Daily

Staff
Summary of U.S. Major Carriers Domestic Traffic March 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 998 3.78 839 837,713 5.00

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KLM won an injunction yesterday against its pilots, who wanted to strike on transatlantic service to support pilots at alliance partner Northwest if the Northwest pilots go out on strike. A Dutch court ruled that strikes showing solidarity with other unions are illegal in The Netherlands. The pilots in KLM's VNV pilot's union have no official ties to Northwest's pilots, although the two carriers signed a 10-year alliance agreement last year. KLM had no comment on the decision and said it will continue to operate its full schedule.

Staff
National Air Traffic Services Ltd. (NATS) of the U.K. has received the Hunt Trophy, awarded annually by the Guild of Air Traffic Control Officers for "the most outstanding contribution to air traffic control during the preceding year." In NATS's winning document, "Human Factors Guidelines For Air Traffic Management Systems," human factors specialists treat the subject as a combination of modern technology, anatomy, physiology and psychology. Topics include the design of ATC workstations, presentation of data on computer screens and how individuals communicate.

Staff
Varig's traffic increased 7.1% in July to 2.54 billion revenue passenger kilometers. In the first seven months of 1998, traffic has grown 8.4% to 15.5 billion RPKs. Varig carried 1.1 million passengers in July, 16.5% more than in the year-earlier month. Freight volume fell 3.6% in July but is up 4.8% year-to-date. The load factor was 69.6% in domestic service and 69.9% on international routes.

Staff
Taiwan's Civil Aeronautics Administration hopes to forge new aviation agreements with several countries in South Asia, Latin America and southern Europe, a CAA spokesman said. The spokesman declined to identify the target countries but said agreements with nations in South Asia are more likely to be reached quickly because of economic considerations. Taiwan's location makes it more difficult for airlines in Latin America or Europe than for Taiwan carriers to benefit commercially from service between the regions, the spokesman said.

Staff
Lufthansa Group yesterday proved that European aviation is just as strong as the U.S. market as it posted a 134% increase in pre-tax profits for the first half of 1998, excluding a windfall from sale of stock. The company reported pre-tax income of 928 million Deutschmarks (US$516 million). The sale of its stake in charter carrier Hapag-Lloyd added DM377 million ($210 million), producing total pre-tax profits of DM1.3 billion ($726 million).

Staff
In anticipation of a walkout by pilots at midnight Friday, Northwest yesterday canceled 170 flights on Friday and 230 Saturday, affecting about 25,000 passengers. Spokesman Jon Austin said the bulk of Friday's cancellations are scheduled at the end of the day. Northwest also canceled all its Friday evening international flights - Detroit-Paris, Detroit- London Gatwick, Minneapolis/St. Paul-Gatwick, Honolulu-Tokyo, Honolulu-

Staff
DOT granted an Air Transport Association (ATA) request to extend a discussion period on elements of three passenger liability agreements that revise the Warsaw Convention. Probably the most important item is the antitrust immunity DOT is granting to permit discussion of passenger notice provisions, ATA's Jim Casey told The DAILY. The European Union is scheduled to require non-EU countries to provide passenger notice in a specific form starting Oct. 17, but various parties have not been able to agree on the language of the notice.

Staff
Summary of U.S. Major Carriers Domestic Traffic February 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 818 3.27 832 681,164 5.36

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Norway's newest airline, Color Air, which started operations this month, set a first for the industry. Its first customer made the reservation via the Internet using Color Air's web site at www.colorair.no site. The airline serves four cities from Oslo.

Staff
About 80% of Star Alliance passengers were satisfied with their trips, according to the first Star Alliance Customer Satisfaction report of all six carriers - United, Lufthansa, SAS, Varig, Air Canada and Thai International. The carriers are distributing the surveys every month on board various flights, and some details were sent this week to United employees. "In most categories, United performed on par with Star Alliance average," Alex Maggi, United's senior staff analyst-marketing, said in a communique to employees.

Staff
British Airways' orders yesterday for a new fleet of Airbus narrowbodies and the extended range version of the Boeing 777-200 give the airline new operating flexibility that will change the way it serves some markets. The Airbus buy will put the European consortium's products in BA's fleet for the first time and equip divisions Deutsche BA and Air Liberte as well, giving BA fleet commonality, cost and maintenance efficiencies across its European operation.

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Air Transport Association (ATA) is responsible for increasing government scrutiny into airline competition practices and is risking the benefits of deregulation through its continuing opposition to DOT's competition policy, Kevin Mitchell, president of Business Travel Coalition, charged Monday.

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Northwest Chief Executive John Dasburg was elected to alliance partner KLM's Supervisory Board. The move came as a result of the 10-year agreement signed last year. KLM President Leo van Wijk is a member of the Northwest board.

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Inland Aviation Services told DOT that an engine teardown observed by an FAA maintenance inspector "resulted in the finding that the No. 2 main bearing failed, leading to a broken crankshaft," which the inspector said "could not have been detected in routine and required operator maintenance." Inland earlier reported to DOT on an en route engine failure it experienced June 19 with a Cessna 172 (DAILY, July 23). The inspector's report is being submitted to the National Transportation Safety Board, which has kept the investigation open.

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DOT yesterday opened a proceeding on airline service from Dallas Love Field, saying a ruling should eliminate much litigation. Love Field operations by larger aircraft had been limited by the Wright Amendment to contiguous states, but those restrictions were eased slightly by the Shelby Amendment, allowing service by aircraft with 56 seats or more to Kansas, Mississippi and Alabama.

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Norfolk, Neb., airport authority signed last week's letter urging DOT to prevent unfair competition by major airlines (DAILY, Aug. 21). The authority's base was misidentified as Norfolk, Va., due to a clerical error by the group distributing the list.

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American pressed its case for "equal treatment," telling DOT whatever conditions the European Commission tries to impose on American-British Airways should be applied equally to United-Lufthansa-SAS. Its statements were made as a reply to comments on United's attack on the EC's proposed alliance conditions, lodged as an International Air Transportation Fair Competitive Practices Act complaint. American has made the point before but took issue with Delta's criticism of the EC's conditions as a "one-size-fits-all" approach.

Staff
Summary of U.S. Major Carriers International Traffic February 1998 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (Miles) (000) Change Alaska 72 (0.86) 1,130 81,093 0.96

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United told DOT it should deny the application by Russia Airlines for an exemption to operate scheduled combination service between Moscow and New York (DAILY, Aug. 13) and defer action until the U.S. and the Russian Federation "satisfactorily resolve pending bilateral issues." At the heart of United's opposition is the Russian government's refusal to renew the carrier's "bilateral right to offer code-share services between the U.S.

Staff
As the deadline for a strike at Northwest nears, Kansas City, Mo.-based Vanguard Airlines already has sold out its lowest fares on nonstops from Minneapolis/St. Paul to Kansas City and Chicago Midway, the two nonstop routes on which it competes with Northwest. Vanguard is the only carrier besides Northwest to offer nonstop service in those markets. VP-Marketing and Planning Russell Winter said Vanguard may add a sixth daily segment on its Minneapolis-Chicago service if the Northwest strike begins.

Staff
Allied Pilots Association is offering space on American's jumpseats to Northwest pilots who go out on strike, according to a letter from APA President Richard LaVoy to Northwest Air Line Pilots Association Master Executive Council Chairman Steve Zoller. LaVoy also is encouraging APA rank and file to join Northwest ALPA's picket line - wearing their American uniforms and APA pins - to show solidarity if Northwest pilots strike.

Staff
Air Canada Pilots Association set a strike deadline of midnight, Sept. 1, after Canada's Federal Minister of Labour released the union and Air Canada from conciliation talks. Both sides requested the action.

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Delta applied at DOT for an exemption to provide scheduled combination service between any points in the U.S. and any points in Japan under arrangements with its third-country code-share partners. The carrier asked for route integration authority to combine the requested exemption with its existing certificates and exemptions. It wants the exemption for an indefinite period, or at least two years. Delta said it will use the exemption for code-share service to points in Japan for which it does not hold underlying authority.

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Swissair parent SAirGroup posted a 20% rise in pre-tax profits for the first six months of 1998. Earnings before interest and taxes reached 302 million Swiss francs (US$201 million), while net profit increased 16.5% to CHF127 million ($85 million). Cash flow from operations rose 23% to CHF639 million ($429 million). The results were not broken down by division. The company cited "still buoyant" economies in Europe and the U.S. as reasons for the improved earnings despite several divisions experiencing a hit from the Asian economic crisis.