Aviation Daily

Staff
Pilots looking for work had another good month in June, according to Atlanta-based AIR, Inc. Major carriers hired 305 pilots, nationals 389, jet operators 235 and non-jet operators 214. Seventy-three percent of airlines reporting to AIR, Inc. hired pilots during the month. The number of furloughed pilots decreased to 314 - there were 423 in February - and US Airways is the only major with pilots still on furlough. So far this year, 7,603 pilots have been hired, 1,996 by the majors.

Staff
Aero International (Regional) appointed Antoine Bouvier president and chief executive of ATR. APCO Associates named Steven Mirmina senior associate for aviation services. Lufthansa Technik named Andreas Kaden head of maintenance, replacing Bernhard Conrad. Saab Aircraft of America promoted Marlin Schultz to president. Signature Flight Support named Paul Shira general manager at Signature-Chicago O'Hare.

Staff
An amendment to the Senate Commerce Committee's FAA reauthorization, proposed by Byron Dorgan (D-N.D.), would authorize DOT to require a major airline to enter into a joint-fares and interline agreement with another carrier serving an underserved market. If the DOT secretary found it necessary to facilitate service to small communities or encourage airline competition, DOT would be able to force a major with hub operations to sign such a pact. The committee's markup of aviation and other legislation resumes tomorrow.

Staff
American Aircarriers Support Inc., Fort Mill, S.C., opened an office in Singapore to support its airframe and engine spare parts sales and purchasing. The company said it has begun receiving the parts of two former United 737-200s that were disassembled outside London.

Staff
A Regional Airline Association table of top regional carriers, prepared by AvStat Associates of Washington, D.C., appears above.

Staff
DOT issued an order selecting Scenic Airlines to provide Essential Air Service at Ely, Nev., at an annual subsidy rate of $1,087,340 and tentatively selecting Redtail Aviation to provide EAS at Moab, Utah, at an annual subsidy rate of $595,373, beginning with each carrier's inauguration of service through Sept. 30, 2000. Scenic and Redtail filed proposals after DOT tentatively reselected incumbent carrier Alpine to continue subsidized EAS for two years and asked for competing proposals, including alternate hubs, to Alpine's Salt Lake City service.

Staff
U.S. Carriers Labor Expense, First Quarter 1998 Major Carriers % Of Total Systemwide Operating Expenses Alaska $ 108,523,000 33.46 America West 101,847,315 23.89 American 1,144,765,000 32.02 Continental 386,295,000 24.92 Delta 1,050,439,000 33.90

Staff
Airport supporters lost their battle to raise the cap on passenger facility charges by $1 at yesterday's truncated Senate Commerce Committee markup, which will resume next Tuesday. Aviation legislation and other matters at the markup will remain unresolved until the markup is completed, but the PFC proposal, forwarded by aviation subcommittee Chairman Slade Gorton (R-

Staff
Indianapolis-based US Airways Express Chautauqua flew 13.3 million revenue passenger miles in June, a 14.3% increase from the same year-ago month. Capacity declined 0.7% to 26.7 million available seat miles, allowing the load factor to jump 7.6 percentage points to 57.4%. Enplanements were up 10.9% to 68,484. Chautauqua operates 29 aircraft - 12 Saab 340s and 17 Jetstream 31s - on 211 daily flights in the Midwest and Northeast. June 1998 June 1997 6 Months 1998 6 Months 1997

Staff
The BR715 engine for the new Boeing 717 has successfully completed its full engine fan-blade-off test, the last major test before international certification, scheduled this September, BMW Rolls-Royce said this week.

Staff
Taking the public fight over DOT proposed competition policy outside the Washington Beltway, Air Transport Association President Carol Hallett said recently in Los Angeles that if the proposal is adopted, "all the economic and social benefits of deregulation we take for granted will be at risk." In a Town Hall speech, Hallett cautioned listeners not to believe assertions that guidelines will simply ensure airline competition. "I'm here to tell you that is absolutely not the case. The guidelines would be destructive of competition wherever they are applied.

Staff
SAS Commuter this week ordered another two de Havilland Dash 8Q Series 400 aircraft, boosting its firm orders for the 350-knot, 70- to 78-seat turboprop aircraft to 17. Deliveries are scheduled in the July 1999-September 2000 time frame. SAS Commuter holds options on 18 additional Dash 8s. Value of this week's transaction was placed at $US45 million.

Staff
Corporations are strong-arming regional carriers serving Fayetteville, Ark., to move to the new Northwest Arkansas Regional Airport when it opens in October, some in the industry charge. The area is home to Wal-Mart, Tyson Foods and J.B. Hunt trucking. Carriers are furious with costs at the controversial new airport - a 60% increase in terminal costs, a seven-

Staff
Midwest Express Holdings has ordered five Fairchild Aerospace 328JETS, to be operated by its subsidiary Astral Aviation (which operates as Skyway Airlines), and took options for 10 aircraft, Fairchild Dornier and Midwest Express announced. The firm-ordered aircraft are expected to be delivered beginning in spring 1999 with "several" anticipated to be in use by mid-

Staff
Continental yesterday was served with a temporary injunction that prohibits subsidiary Continental Express from operating regional jet service from Dallas Love Field to Cleveland. The move, which followed a temporary restraining order issued against the airline earlier, delays Cleveland operations for several more months. Continental Express had planned to start the service July 1. Last week, Judge Bob McCoy heard arguments for an injunction from the Dallas/Fort Worth Airport board and city officials from Fort Worth.

Staff
Atlantic Coast Airlines, a United Express carrier, flew 68.5 million revenue passenger miles in June, an increase of 78.4% from June 1997. Capacity was up 58.4% to 113.1 million available seat miles, allowing the load factor to rise 6.8 percentage points to 60.5%. Passenger boardings were up 43.7% to 221,629.

Staff
US Airways traffic for June fell 2% on 5.4% less capacity, which boosted the load factor 2.6 percentage points to 77.8%, a record for any month in the airline's history. June is the 19th consecutive month the airline has set a load factor record. Like American, US Airways has boosted international routes while reducing domestic capacity. Domestic traffic fell 4% on 6.9% less capacity, while international traffic increased 14.8% on 10.1% more capacity. In the first half of 1998, traffic fell 2.5% on 5.2% less capacity, and the load factor was 73%, up 2 points.

Staff
Hong Kong's Cathay Pacific will try to use the opening of Hong Kong's new international airport to launch a true hub operation and alter its corporate culture by consolidating 19 offices into one large center called Cathay Pacific City, on site at Chek Lap Kok. Antony Tyler, director of corporate development, said last week in Hong Kong he hopes that bringing all 3,500 staff together in a single, congenial facility will improve and ease communication between employees now isolated from each other.

Staff
..."Huge in-fighting" is the way one source described the Arkansas battle, and "very political. The manner in which they want us to move is extraordinary." Another said the airlines have been told by the airport's major corporate sponsors that they and their suppliers will not support them if they do not move. They concede that the Fayetteville airport is antiquated and has a tricky ILS approach, but that they are "not willing to pay." From Fayetteville, Eagle and ASA serve Dallas/Fort Worth, Trans States flies to St.

Staff
Largest Passenger-Carrying U.S. Regional Airlines - First Quarter 1998 Revenue Passengers Percent Passenger Percent Of Rank Airline Enplaned of Total Miles (000s) Total 1 Simmons 1,393,185 9.1 303,279 8.3 2 Comair 1,319,490 8.6 432,168 11.8 3 Continental 1,136,061 7.4 296,147 8.1

Staff
DOT tentatively reselected Colgan Air d/b/a Continental Connection to provide Essential Air Service at Beckley and Bluefield/Princeton, W.Va., for two years beginning Aug. 1. Colgan will continue providing 23 roundtrips weekly from Washington Dulles with 19-seat Beech 1900 aircraft, at an annual subsidy rate of $1,255,024, up from the $1,236,034 for the previous one-year period. Colgan may operate one roundtrip each day to Charlotte, N.C., rather than Dulles to accommodate military traffic.

Staff
...Fairchild Aerospace is betting on corporate aviation to provide a big boost to its 328JET, 428JET and 728JET programs. That bet should receive a further push from new European airspace requirements, including GPS, 8.33 kHz spacing, BRNAV, TCAS II and reduced vertical separation minima (RVSM) to take effect in November 2001. The European Business Aviation Association estimates that up to 60% of Europe's business-jet fleet may not be able to conform to the 1,000-foot spacing. That could trigger a large replacement market.

Staff
FedEx Pilots Association's new negotiating committee, elected this week, is preparing to return to the bargaining table in search of the union's first-ever contract.The association's 2,879 pilots voted down a tentative agreement in March.

Staff
Italy and the European Commission are exchanging what officials on both sides termed "angry" or "polite but firm" letters this week regarding traffic distribution within Milan's airport system. "Nine European airlines - all the significant carriers except KLM - have lodged a complaint with us," said a spokeswoman for European Union Transport Commissioner Neil Kinnock. Italian authorities plan to relocate airlines with fewer than 2 million passengers per year from Milan Linate Airport to Malpensa Airport on Oct. 26.

Staff
The opening of Kuala Lumpur Airport last month in Sepang is expected to reduce passenger loads for Malaysia Airlines on domestic and Singapore flights. The reason is the facility's 50-mile distance, the high taxi fare and passengers' fear of being caught in traffic jams. Flights to East Malaysia - the states of Sabah and Sarawak - will not be affected as they are accessible only by air. MAS Chairman Tajudin Ramli told The DAILY that he expects more people to use the expressways to reduce cost and cut down on traveling time.