Aviation Daily

Staff
DOT granted a joint request by Mexicana and Aeroperu to allow Aeroperu to display Mexicana's code on Mexico City-Los Angeles flights as part of Aeroperu's Lima service. In approving the authority for 60 days and deferring action on operations beyond then, DOT noted that the U.S. has been "moving towards a more positive aviation relationship with Peru" and is pursuing an open-skies agreement. Talks with Peru continue this week in Washington (DAILY, March 4).

Staff
DOT's Research and Special Programs Administration has scheduled public meetings to discuss compliance with a final rule on intrastate transportation of hazardous materials. The new rule requires those who ship hazardous materials within a state to comply with the same safety standards as those shipping such materials across state lines. The meetings, from 9 a.m.

Staff
Delta is opposing Northwest-Continental's bid for same-country code shares between the U.S. and Japan, describing the application as "outrageous" given Northwest's dominant position in Japan and its "persistent obstructionist tactics" during U.S.-Japan bilateral talks.

Staff
Summary of U.S. Major Carriers International Traffic Third Quarter 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % (000) Change (miles) (000) Change Alaska 124 (4.82) 1,072 133,508 (3.34)

Staff
A majority of Air France pilots oppose swapping a salary cut for shares of Air France Group capital, according to the results of a poll unveiled yesterday in Paris by employee representatives.

Staff
Emery Worldwide has begun daytime cargo operations for the first time in its history. The carrier provides a guaranteed "Gold Priority Daylight" service to 29 metropolitan areas in the U.S. with dedicated DC-8 and 727 cargo aircraft. Douglas Foster, VP-sales, said the new service "allows us to provide a unique heavyweight premium service that no other competitors offer." He said it is the only heavyweight service in the industry for cargo that needs to be delivered faster than "next day." The service is available Tuesday through Sunday.

Staff
DOT Secretary Rodney Slater assured the House Appropriations transportation subcommittee yesterday that FAA is working to make all mission-critical computer systems compliant with Year 2000 standards by Jan. 1, 1999, giving the agency a full year to validate them. Rep. Frank Wolf (R-Va.), chairman of the subcommittee, expressed deep skepticism about FAA's ability to do so given its track record. So did other members of the subcommittee, which was examining the Clinton administration's fiscal 1999 transportation budget proposal.

Staff
Garuda Indonesia has begun to sell all assets outside its core airline business, plus as many as 19 aircraft in its fleet of about 70, Reuters reported. The company will sell hotels, travel agencies, aircraft engines and surplus spare parts. It also will sell Airbus A300B4s, DC-10s and 747- 200s, leaving it with about 47 737s, MD-11s, A330s and 747-400s. Garuda has not said what it intends to do with the 18 aircraft it has on order. Boeing said this week Garuda has six 777s and 12 737s on order.

Staff
Korean Air has received the Mercury Award from the International Flight Catering Association at a convention in Seville, Spain, for the carrier's Pibimbap inflight meal service. A panel of 13 expert judges chose the traditional Korean dish over 61 competing entries.

Staff
Japan Airlines, which has moved slowly toward outsourcing airport work at its U.S. gateways, said yesterday it will eliminate 200 positions as it finds other companies to take over passenger and cargo tasks at four U.S. cities. The airline will restructure services at Los Angeles, New York Kennedy, San Francisco and Honolulu in a move affecting 300 workers. One-

Staff
Tower Air improved its financial results for 1997, posting an operating profit of $7.5 million last year. But the airline reported a net loss of $3.9 million, compared with a $20.9 million loss a year earlier. For the fourth quarter, Tower lost $10.5 million, also an improvement over the $14.1 million loss in the fourth quarter of 1996. Quarterly revenues increased 57% to $108.7 million and annual revenues grew 10.5% to $461.5 million. The load factor increased to 74.2% from 70.5%.

Staff
United asked DOT to amend several exemptions so it can serve the points involved from the U.S. via other points it is authorized to serve in addition to points in Germany, and code share with partners other than Lufthansa. It wants to code share on Manchester-London Heathrow flights that British Midland will start March 29.

Staff
US Airways' Air Line Pilots Association unit has asked to meet with management in an effort to halt the downslide of union-management relations in the wake of the carrier's decision to pull its application for code- share service to Japan with United and American. ALPA extended the olive branch yesterday following management's letter to pilots last week criticizing the union for failing to waive a contract provision that precluded US Airways from serving Japan through a domestic code-share arrangement (DAILY, March 3).

Staff
Aviation Industry Stock Performance February 1998 Closed Closed Monthly Change Symbol 2/27/98 1/30/98 ($) (%) Alaska Air Group ALK 55.063 48.563 6.500 13.4 America West (Class B) AWA 24.875 21.813 3.062 14.0 AMR AMR 126.563 126.500 0.063 0.0

Staff
Avteam, which supplies aftermarket aircraft engines, engine parts and airframe components, reported that net income increased by 69% in the fourth quarter ended Dec. 31 to $1.5 million. Record revenues increased 73% to $20.7 million. For the year, revenue rose to $52.9 million from $31.7 million while net income increased by 66% to $3.9 million.

Staff
Pan Am Chief Executive David Banmiller continues to shuttle between companies interested in backing the airline's restart.As of yesterday, Pan Am is negotiating with four separate groups, including Rothschild Recovery Fund and investor Carl Icahn (see story, Page 363).

Staff
TWA this week will launch TWQ, its premium service for business travelers and other frequent customers. The product offers time-saving amenities such as close-in, consistently located gates, laptop work desks, first flight out-last flight back service, priority boarding, premium seating and complimentary newspapers. Other perks include first-priority boarding for elite-level frequent travelers, designated TWQ customer service agents at each gate and electronic ticketing at the gate. TWQ will be available initially on flights from St.

Staff
Pan Am filed a notice with DOT of its intent to resume certificated operations "immediately" and asked for a waiver of the 45-day advance notice requirement to restart service. The carrier said when it filed for Chapter 11 bankruptcy protection on Feb. 26, it properly notified DOT and FAA, triggering the advance notice requirement. On Feb.

Staff
America West will introduce nonstop service May 20 from Phoenix to Ixtapa/Zihuatanejo, Mexico, using 737-300 aircraft with eight first-class and 124 coach seats. The carrier will operate two weekly roundtrips throughout the year. On May 5, the carrier will add a second nonstop flight from Columbus, Ohio, to Los Angeles.

Staff
Continental's pilots union is urging members to vote yes in their strike authorization ballots, even though the union has reached a tentative contract agreement with the carrier. The Independent Association of Continental Pilots wants to keep up pressure on management in the event that members do not ratify the deal.

Staff
Passengers aboard Delta will be allowed two carry-on bags, a handbag, food for onboard consumption and assistive devices for disabled passengers under the carrier's new carry-on baggage policy, effective April 15. Laptop computers and other items, such as duty-free purchases, are no longer considered carry-on exceptions and if taken on board will be counted in the two-bag limit. All carry-on bags must be able to fit inside Delta's "Size Wise" units, located at curbside, ticket counter and gate.

Staff
South African Airways has opened a first-class lounge at Johannesburg Airport. The 88-seat facility offers showers and a business center, including e-mail and Internet connections. The original lounge was converted for business-class passengers and seats 205.

Staff
Airlines should implement automated ticket stock and ticket scanning systems that track, identify and confiscate stolen tickets, according to the American Society of Travel Agents. If a travel agency is found liable for a theft, it should not be forced to pay beyond the value of stolen tickets that actually are used, and airlines should be fair and reasonable in assessing the amount of loss, ASTA VP-Government Affairs John Bennison wrote Chairman John Duncan (R-Tenn.) of the House Transportation subcommittee on aviation last week.

Staff
Canada has picked Kelowna Flightcraft International Air Cargo to provide all-cargo scheduled service to China under rights obtained during bilateral negotiations last October. The company will have a year to begin the service or face replacement. Additional all-cargo rights to Beijing or Shanghai will be available Jan. 1, 2000, said Foreign Affairs Minister Lloyd Axworthy on behalf of Transport Minister David Collenette. Kelowna will serve the Chinese market from Winnipeg.

Staff
Senate Judiciary antitrust subcommittee hearing to examine international aviation agreements and antitrust immunity will take place March 19. An incorrect date was reported March 2 in The DAILY. Time and place remain the same - 2 p.m., Room 226, Dirksen.