Aviation Daily

Staff
FAA and the German Transport Ministry are signing a memorandum of cooperation for air navigation services, Transport Minister Matthias Wissmann said. (See related story to follow.) The agencies will intensify cooperation by exchanging personnel, and coordinating R&D programs and policy positions on international air traffic control bodies, he said.

Staff
DOT sent letters to a number of foreign carriers clarifying their obligations under Family Support Act provisions requiring foreign airlines operating to the U.S. to file family assistance plans in the event of accidents. DOT said all-cargo operators must file plans, as must operators with economic authority to fly to the U.S. who are not using it. Foreign carriers without authority that either overfly the U.S. or make technical stops in it do not. The deadline for filing plans is June 15.

Staff
Sen. John Chafee (R-R.I.) proposed an amendment to the Universal Tobacco Settlement Act that would bar passenger smoking on all scheduled international flights to or from U.S. points, on both foreign and domestic operators. Chafee proposes the same ban on domestic flights, where smoking already is banned with rare exceptions.

Staff
DOT granted an exemption for Air Nostrum and Aviaco, in conjunction with a code share with American (DAILY, May 6), allowing the Iberia regional affiliates to display American's designator code on flights between Madrid and Barcelona, Malaga and Palma de Mallorca. While the code-share approval, granted earlier, includes authority to display American's code on flights to markets in Spain, "the Spanish markets were inadvertently omitted" from the Spanish carriers' exemption request. (Dockets OST-98- 3640, 97-2965, 98-3626)

Staff
Boeing 737 Aircraft Operating Costs Fourth Quarter 1997 Dollars Per Block Hour B737-300 America West Continental Delta Southwest Crew Cost $331 $615 $558 $354 Fuel&Oil 455 488 453 477 Rentals 419 471 501 202 Insurance 6 7 3 5

Staff
British Regional Air Lines Group - Manx Airlines and the British Airways franchisee, British Regional Airlines - has published its prospectus for flotation on the London stock market. The flotation, sponsored by Dresdner Kleinwort Benson, follows from the group's decision last year to reverse its merger with British Midland. The group provides scheduled services on low-volume routes principally for the business market. The network comprises 70 routes covering the British isles and a number of mainland European destinations.

Staff
DOT invited carriers to apply for 17 new U.S.-France frequencies available in 1998 and 1999. The department has allocated 11 of the 21 new frequencies available immediately, and said the 10 remaining 1998 rights would be awarded at the same time as the seven more frequencies that open in April 1999. Deadline for filing is June 5, answers are due June 15 and replies to answers June 22.

Staff
Ryanair has renewed its call for the Irish government to break the monopoly of state-owned airport operator Aer Rianta at Dublin Airport. Ryanair publicly launched its opposition to Aer Rianta last month when its chief executive, Michael O'Leary, told Ireland's business leaders there had to be a review of the airport operator's legal status, leading to deregulation of the country's airport management and ground-handling sectors.

Staff
Airlines operating in the Asia/Pacific region are lowering traffic growth estimates due to economic turmoil. They see annual growth rates declining from the previously forecast 7.7% to 4.4%, with cargo growth falling to 6.5% from 9% between 1997 and 2001, according to a CEO survey by the Air Transport Action Group (ATAG). The changes imply 30 million fewer passengers in 2001 than forecast.

Staff
Munich Airport (FMG) and Lufthansa have agreed in a new memorandum of understanding to co-finance and operate the airport's future Terminal 2, nailing down Lufthansa's participation in the airport's development. Lufthansa and partner airlines SAS and United will have exclusive use of the terminal. FMG and Lufthansa will form a company to run the terminal along commercial principles. The terminal, slated for completion by 2003, will have a capacity of 15 million passengers a year and cost 1.3 billion Deutschmarks (US$780 million).

Staff
Southwest has established a legal office in Washington, D.C., headed by Robert Kneisley, who was named associate general counsel for federal affairs. Kneisley previously represented Southwest in private practice.

Staff
Cathay Pacific Airways last week took delivery of its first Boeing 777-300. Cathay, which operates four 777-200s, has six of the 777-300s on order. The Rolls-Royce-powered aircraft, at 73.8 meters, is longer than a 747-400.

Staff
Moody's Investors Service has lowered the senior unsecured long-term debt rating for Japan Airlines. Moody's also lowered JAL's shelf registration and counterparty ratings. The move affects $500 million in commercial paper.

Staff
Boeing 737 Systemwide Aircraft Utilization Per Day Fourth Quarter 1997 B737-300 America West Continental Delta Southwest Number of Aircraft Operated 42 65 13 183 Total Fleet Operations Departures 260 260 68 1,553 Block Hours 525 670 128 2,086

Staff
India has entered into preliminary negotiations with Brazilian aircraft maker Embraer to set up a joint-venture company with state-owned Hindustan Aeronautics Ltd. to manufacture small aircraft, civil aviation ministry officials said Friday. "We're looking at making 19-seater, 30-seater and 50-seater aircraft for use as air taxis over relatively short distances," a senior ministry official said, adding that until the joint venture is under way, India would consider buying the aircraft from Embraer.

DOT

Staff
Approved an exemption renewal, with route integration authority, for Southern Air Transport, for one year or until 90 days after DOT takes final action on the carrier's certificate application, to provide scheduled cargo service between points in the U.S.

Staff
American pilots filed dozens of form letters at DOT objecting to its proposed airline competition rules intended to combat predatory activity. "As an American Airlines pilot," the letter said, "I am writing to you to express my opposition to any effort to reregulate the airline industry." Pilots and many other unionized employees, it said, made financial sacrifices when the industry adjusted to reregulation. One pilot added that "the economic suffering was part of the story.

Staff
Taiwan has told China Airlines that is cannot buy or lease any more aircraft until its safety standards improve. The airline has had two crashes in the last four years. Fifteen aircraft scheduled for delivery this year and next will not be affected, but the carrier wanted to expand from 43 aircraft to 67 by 2003.

Staff
Mesa Air Group will fly 1,000 daily departures with 114 aircraft after it ends United Express service May 31. The number is down from 192 aircraft and 1,500 daily departures in March. Despite the downturn, Mesa still will serve 110 cities in 28 states and Canada.

Staff
Emirates, the airline of the United Arab Emirates, is boosting Boeing 777 services at London Gatwick from two to three daily flights, starting June 11, to meet annual holiday demand. Emirates serves 44 destinations in the Middle East, Europe, Africa, the Indian Ocean, Asia, Australia and the Commonwealth of Independent States.

FAA

Staff
- In Federal Register dated May 15...Superseded an airworthiness directive on Lockheed L-1011-300 aircraft concerning inspections for fatigue cracking of the rear spar caps...Issued an AD on Dornier 328 aircraft requiring modification of the aft avionic fan...Proposed an AD on General Electric CF6-6 engines to require removing from service low-pressure turbine disks...Revised a proposed AD on Pratt&Whitney JT8D engines concerning inspection of certain low-pressure compressor disks.

Staff
Airbus Industrie has converted 35 A310-200 aircraft into freighters since 1993 and delivered them to final customers, the group announced during the Berlin Air Show. To date, a total of 92 freighter conversions and 42 series-production freighters have been ordered from Airbus. The average period needed for Airbus to convert its larger aircraft is four months, it said.

Staff
The economic and trade sanctions, imposed on India by the Clinton administration in the wake of India's nuclear tests conducted last week, are likely to affect the delivery of aircraft from Boeing to India's private domestic carrier Jet Airways, aviation industry analysts said last week. Boeing officials in Mumbai said that scenario is "probable" if the U.S. Eximbank - acting at the behest of the U.S. government - refuses to guarantee the financing for the aircraft.

Staff
Northwest is launching a summer fare sale for travel May 28-Sept. 8. Sample one-way tariffs include Nashville-Detroit, $69; Boston-Detroit, $109, and Hartford, Conn.-Denver, $189. Fares are based on roundtrip purchase and require a minimum Saturday night stay and 14-day advance purchase.

Staff
Justice Department wants eight new daily roundtrips by American-BA competitors on New York-Heathrow to combat the two carriers' frequent daily service and strong brand identity in the market. Particularly troubling to Justice is the dominance of American-BA in hub-to-hub markets, which appears to be the chief reason it recommended carving out Chicago and Dallas from antitrust immunity (DAILY, May 22).