Aviation Daily

Staff
Mesaba Airlines, which operates as a Northwest Airlink affiliate, and Northwest have agreed to amend their regional jet agreement to increase from 18 to 36 the number of Avro RJ85s Mesaba will fly for Northwest. The tentative schedule for phasing the next 18 aircraft into service is between January 1999 and August 2000.

Staff
European Union competition authorities have approved Snecma's takeover of Messier Dowty and its acquisition of the landing gear overhaul business of Messier's owner, IT Group of the U.K. The EU said the French state-owned engine company's purchase of Messier poses no threat to competitive conditions in Europe's landing gear industry, because airlines have significant buying power in the sector. Messier Dowty has a 35% share of the world market for landing gear.

Staff
A dispute between the U.S. and Cuba concerning the right of Cuban aircraft to overfly the U.S. on flights to and from Canada has been settled, the International Civil Aviation Organization said. ICAO Council President Assad Kotaite mediated a settlement that effectively terminates proceedings on overflight rights started by the Cuban government. Under the settlement, Cuba agreed to the recognition of applicable principles of international law and ICAO resolutions related to the safety of international civil aviation, ICAO said.

Staff
Fine Air, Polar Air Cargo and UPS filed answers to their applications and Arrow Air's for one available U.S.-Colombia all-cargo designation. Arrow, among the six U.S. carriers already designated in the market, did not file an answer. Fine said its proposal "surpasses" the others in frequency, arrival/departure times, capacity, experience in Latin America, aircraft- use flexibility and hub location at Miami.

Staff
Mechanics at Atlantic Coast Airlines, the Washington Dulles-based United Express carrier, approved a four-year contract yesterday by a 62-26 vote after four years of negotiations. Atlantic Coast spokeswoman Jennifer Heronema said the contract solidifies earlier work rules and provides an industry-average pay scale. She said the contract will enable the company to find the best mechanics for its new $10 million maintenance facility. The mechanics are represented by the Aircraft Mechanics Fraternal Association (AMFA).

Staff
Aviation liberalization in Europe has fostered the growth of low-cost airlines serving smaller, less congested airports in the U.K., but airport congestion threatens growth in international service, the Civil Aviation Authority reported.

Staff
The Thai government will allow increased private holdings in Thai Airways International in the first stage of an effort to reduce government ownership to 49%. The government currently owns 93% of the carrier's equity and hopes eventually to sell 44%. Last week, the government reduced its requirement for federal holding to 51% from the current 70%. Deputy government spokesman Sakorn Prompakdi said he believes Thailand will find domestic investors to take only 15% of equity, and that the country will sell 30% to foreign investors.

Staff
Airport-based enhanced vision technologies would be put through a feasibility study under a House aviation subcommittee amendment to the FAA reauthorization. Proposed by Rep. James Traficant (D-Ohio), the study would examine laser landing guidance and cold-cathode runway and taxiway lighting. Traficant drafted members of the Transportation Committee to witness a demonstration of such systems at an airport in Manassas, Va.

Staff
Slipping the Surly Bonds: Great Quotations on Flight, by Dave English, is a collection of memorable thoughts on flight. McGraw-Hill $14.95. To order call 800-722-4726.

Staff
European Union transport ministers voted last week to ban acquisition of hushkitted Chapter II aircraft by EU airlines after April 1, 1999, modify the EU's computer reservations system (CRS) code of conduct, and authorize the European Commission to negotiate for institutional membership - and a stronger voting position - in Eurocontrol. The actions came during the Luxembourg meeting at which the ministers approved formation of a European Aviation Safety Agency (DAILY, June 19).

Staff
Pilots of All Nippon Airways have notified the airline they will resume limited strikes tomorrow. As in the 15-day strike that began two months ago (DAILY, April 6), the new action will involve only union pilots flying 747-400s. ANA plans to cancel six of 46 international scheduled flights on Wednesday - Tokyo-Washington, Tokyo-Jakarta-Denpasar and Osaka-Frankfurt plus the return flights, affecting 1,210 passengers and comprising 1% of total daily departures. On Thursday, service from Tokyo to Singapore and Osaka-Moscow-Rome, plus return flights, will be axed.

Staff
Mesa appointed Donna Lisle senior director of inflight services. Mexicana appointed Mary Kelly sales and service manager, New York. Turkish Airlines appointed Bruno Scaldaferri marketing manager USA and Canada. TWA named Norma Kaehler managing director of government affairs. World Airways elected Russell Ray chairman.

Staff
Confirming an order it announced in February, Iberia signed a contract Friday with Airbus for as many as 76 narrowbody aircraft, the largest order placed with the consortium by a European carrier (DAILY, Feb. 4). Firm orders total 50 - 31 A320s and 19 A321s - and the 26 options could include A319s, according to the pact signed in Toulouse by Xabier de Irala, president of Iberia, and Noel Forgeard, managing director of Airbus.

Staff
DOT approved requests by FedEx, Polar Air Cargo and Northwest to extend until Dec. 31 the deadline for operating all-cargo services between the U.S. and Thailand. The action lengthens earlier extensions, granted until June 30, due to Thailand's "troubled economy." FedEx continues the suspension of its sixth frequency, last operated Nov. 15, 1997, and received exemption from dormancy requirements. Polar received exemption from the startup deadline and dormancy conditions concerning its second U.S.-Thailand frequency.

Staff
China Southern Airlines and its six subsidiary carriers posted a net profit of 1.14 billion renminbi (US$138 million) and passenger revenue was RMB11.48 billion ($1.4 billion) in 1997, according to an annual filing with the U.S. Securities and Exchange Commission (SEC). The China Southern Group carried 15.25 million passengers last year, putting it close to Air France in size, but the passenger count was just 0.2% higher than the year before. The group ranks first in China in passenger volume, weekly flights, block hours and fleet size.

Staff
New information from U.K. airport operator BAA plc makes it more likely that London Heathrow slots for airlines that want to compete with the American-British Airways alliance will have to come from existing slotholders rather than growth, the Justice Department told DOT Friday. In its original comments filed with DOT, Justice said that from a competitive standpoint the source of slots is irrelevant as long as enough are made available, but it was skeptical that other airlines could acquire them soon through capacity growth or buy-sell procedures.

Staff
Air Canada said it will spend $18 million to install enhanced ground proximity warning systems in its fleet, receiving first deliveries this year. The systems will be required on U.S. carriers' aircraft by 2003, but Canada does not have a similar requirement.

Staff
Qantas is expected to slice service to Tokyo and Fukuoka after a falloff in traffic. The move would follow All Nippon's withdrawal from Tokyo-Sydney. In its place, Qantas is considering adding frequencies to Los Angeles.

Staff
Boeing 747 Aircraft Operating Costs Fourth Quarter 1997 Dollars Per Block Hour B747-100 TWA United Average Crew Cost $869 $1,721 $1,485 Fuel&Oil 2,278 2,200 2,221 Rentals 831 -- 230 Insurance 3 4 4

Staff
Air Line Pilots Association will host a meeting July 1 in Washington to discuss alliances. Representatives of pilots from all major carriers involved in potential accords - including non-ALPA unions - are expected to attend.

Staff
A study by the Flight Safety Foundation shows "marked growth" in fatal approach and landing accidents between 1980 and 1996. There was an average of 12.1 accidents per year in the first eight years of the study and 16.6 per year in the last eight years, FSI said. "If this growth continued, one could expect 23 fatal accidents (with 495 fatalities) to Western-built and Western-operated jets and turboprops, including business jets, annually by 2010."

Staff
Midwest Express elected former Wisconsin Commissioner of Securities Ulice Payne Jr. to its board. Payne is president of the Wisconsin World Trade Center.

Staff
Newark-based Kiwi International Airlines will increase service to Puerto Rico by adding flights between Newark and San Juan on July 1 and Orlando and San Juan on July 7. Kiwi also will serve San Juan and Aguadilla year- round, giving it 28 weekly flights. The carrier will offer the Newark-San Juan nonstops on Wednesdays, Saturdays and Sundays with one-way fares beginning at $139. Friday flights will begin this week. Kiwi serves Newark-Aguadilla with daily nonstops.

Staff
In IATA's 1997 rankings of airlines by passenger volume, the only carrier among the top 10 that advanced its position was Lufthansa, whose 35.3 million passengers moved it ahead of British Airways into eighth place. Delta was first. Air France jumped to 11th place from 17th and Finnair moved to 44th from 51st. The biggest drop was Indian Airlines, to 42nd from 34th.

Staff
Rep. William Lipinski (D-Ill.) "was not really persuaded by the testimony" from United and Delta urging him at a July 22 hearing to increase the limit in his carry-on baggage bill from one bag to two, a spokeswoman told The DAILY. When Lipinski reintroduces the bill in the next Congress it will specify the size of the single carry-on because "one bag has the potential to be abused," the spokeswoman said.