Aviation Daily

Staff
Rep. Peter DeFazio (D-Ore.) will discuss the recently announced alliances and upcoming FAA reauthorization legislation, including PFCs, on Aviation News Today to be broadcast Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.

Staff
Developing countries have proposed the creation of an International Aviation Monetary Fund that would assist them in financing the implementation of advanced air traffic management systems. The concept was formally proposed at the International Civil Aviation Organization Communication, Navigation and Surveillance/Air Traffic Management Implementation conference this week in Rio de Janeiro by 53 African contracting states of ICAO. The proposal caught the wide attention of delegates, with a large number of poorer countries expressing support.

Staff
Wingspan: Air&Space Channel and McGraw-Hill's Aviation Week magazine have formed a partnership to produce news, educational and entertainment programs on aviation and space subjects. Kenneth Gazzola, Aviation Week Group executive VP, said, "Aviation Week's expansion into multimedia products has enabled us to introduce aviation to new audiences.

Staff
Delta is expanding its Delta Express operation by adding five 737-200 aircraft, to be delivered between June and the end of the year. The aircraft, to be added June 1, Sept. 4, Nov. 1, Nov. 15 and Dec. 15, will bring to 33 the number in Delta Express's fleet. The carrier is expanding daily service from Boston, Islip, and Hartford to Florida to accommodate increased seasonal travel. Delta also is offering an introductory $280 roundtrip fare and double frequent flyer mile bonus on its new nonstop Newark-Salt Lake City route, which begins June 1.

Staff
Fifteen of the larger U.S. regional airlines saw their average revenue passenger miles jump 19.2% in April, versus an increase of only 9.9% in available seat miles. United Express Atlantic Coast Airlines topped the group in traffic growth, its growing fleet of Canadair Regional Jets and relatively long stage lengths moving traffic up 107.2%, a 45.8-percentage- point spread over a capacity increase of only 61.4%. Northwest Airlink, which has been sharing the lead with ACA, reported a 97.6% increase in RPMs versus an 86.2% hike in ASMs.

Staff
Continental will buy a 49% stake in COPA, Panama's largest carrier, and the two carriers will enter a code-share and marketing alliance. The move, subject to government approval, would result in Continental code sharing on COPA's daily flights between Miami and Panama City, with COPA's code appearing on Continental's service from Newark and Houston to Panama City. The alliance would include frequent flyer programs, through check-in and joint airport lounge use.

Staff
Lufthansa CityLine has implemented an on-line communications system that automatically manages check-in procedures of its crew members. The Airline Information and Request System (AIRlink) connects more than 1,000, or 90%, of the regional carrier's cockpit and cabin crew personnel to CityLine's crew-roster planning center in Cologne via nine stations.

Staff
Pilot hirings continue to be strong, with 1,244 new jobs opening up in April, said AIR Inc., which projects the current rate of hiring will mean about 4,000 new jobs at the majors and more than 4,800 at the nationals this year. AIR Inc., which tracks pilot hirings, projects more than 12,500 new cockpit jobs in 1998. In April, major carriers hired 332 pilots and nationals 358.

Staff
FLS Aerospace has closed a five-year agreement with Go for the maintenance of the Boeing 737 fleet of British Airways' low-cost, regional subsidiary, Danish parent company FLS Industries said this week in Copenhagen. The value of the contract was not disclosed. FLS Aerospace, like Go, is based at London Stansted Airport.

Staff
Opponents to the American-British Airways alliance this week filed in support of a TWA motion for in camera review of more court documents stemming from US Airways' breach-of-contract suit against BA, and BA moved to exclude two items from the antitrust case.

Staff
Raytheon Systems U.K., a unit of Raytheon Co., UND Aerospace at the University of North Dakota and Oxford Air Training School have formed a team that will provide what they described as a "complete range of pilot training services for customers anywhere in the world." The team has four training facilities - the Oxford Aviation Training School near Oxford, U.K., UND facilities in Grand Forks, N.D., and in Mesa, Ariz., and the Raytheon Flight Training Center at London Gatwick Airport. The team expects 300 to 500 pilot graduates a year.

Staff
National Air Transportation Association praised the full implementation of a rule permitting commercial single-engine operations (SEIFR) under instrument flight rules, which FAA issued this week along with a rule clarifying power requirements in aircraft used for SEIFR operations. NATA said the clarification rule provides the information necessary for operators to begin converting aircraft to conform to the regulations.

Staff
Mesa Air Group applied at DOT to request designation for service between Phoenix and Guaymas and Hermosillo, Mexico. It also announced the first sweep of management changes since Jonathan Ornstein took over as chief executive May 1.

Staff
Lufthansa President Fred Reid yesterday called on U.S. and foreign governments to eliminate or loosen the rules on foreign ownership of airlines, saying current - and controversial - international alliances are the result of restrictions on transnational ownership. "Open skies without ownership liberalization...is unsustainable over the long term," he said in a speech at the Economic Strategies Institute in Washington.

Staff
Airlines rated below average by the J.D. Power and Associates/Frequent Flyer Magazine customer service survey dismissed their rankings yesterday. Several questioned the survey's methodology and pointed to discrepancies between the results of the Power survey and The 1997 Airline Quality Rating Study conducted by Wichita State University and the University of Nebraska at Omaha Aviation Institute (DAILY, April 22). Southwest ranked tops in that survey, while the Power survey placed it below average for long-haul flights.

Staff
All Nippon Airways and Japan Airlines are banning smoking on all domestic flights this year. The JAL ban begins Sept. 1 and ANA's Oct. 1. The ban covers more than 500 daily flights for ANA, which carries more than 50% of Japanese domestic travelers. For JAL's 240 domestic flights, the ban replaces a rule the did not allow smoking on flights of less than two hours. The ban is supported by both carriers' customers. ANA and JAL permit smoking on international flights.

Staff
A U.S. decision to impose sweeping economic sanctions on India in response to New Delhi's nuclear tests this week could have an impact on commercial aviation programs, industry analysts said yesterday. They cited Air- India's plan to buy widebody aircraft, noting that the sanctions could restrict financing. Wolfgang Demisch of BT Securities said that if any impact is felt it would be in the commercial aviation business.

Staff
American's decision to launch service from Dallas Love Field is "a shot over the bow at Legend" Airlines, said consultant Mike Boyd, president of The Boyd Group. "American is so determined to keep its price monopoly at DFW, they're willing to make a move like this that will surely raise red flags in Washington."

Staff
Northwest has acquired two British Aerospace RJ85s, to be operated by Airlink partner Mesaba. NWA is acquiring the aircraft via a $42 million, 19-year, U.S. leveraged lease from Sumitomo Bank Leasing and Finance.

Staff
America West wants DOT to reconsider its rejection of slot exemptions for the carrier at New York LaGuardia, claiming new domestic alliances make its role as a competitor even more important and DOT made an arbitrary decision in capping the number of new slots at LaGuardia. When DOT awarded slot exemptions at LaGuardia in April, it found competitive benefits in America West's proposal but could not accommodate it, limiting new services at 30 a day, or 15 new daily roundtrips. Spirit and American Trans Air received slots in that decision.

Staff
U.S. Major Carriers Financial Results Fourth Quarter 1997 Fourth Quarter 1997 Operating Operating Revenues Expenses (000) (000) Alaska 352,156 328,656 America West 476,047 434,503 American 3,969,383 3,634,571 Continental 1,656,188 1,518,810

Staff
Implementation of a worldwide system for communication, navigation and surveillance/air traffic management will depend on "global institutional issues and financing," Assad Kotaite, president of the International Civil Aviation Council, said this week at ICAO's CNS/ATM Modernization conference in Rio de Janeiro. He told The DAILY later that the financial community appears ready to invest. ICAO member states must now address the problem of how they will repay the funds.

Staff
Leisure International Airways ordered two A330-200s for delivery in early 2000. The British charter carrier aircraft will have Pratt&Whitney powerplants.

Staff
Nav Canada said yesterday it will return to the bargaining table with the Canadian Air Traffic Control Association. John Crichton, Nav Canada president, expressed disappointment that union members had rejected a previous offer, which he described as "well in line with the terms and conditions of air traffic controllers in comparable countries around the world." The offer proposed a 36.5-hour work week and two days off per week that he said is the "norm" in the U.S. The current scheduled work week for controllers is, on average, 34 hours.

Staff
Amadeus has signed a joint venture agreement with Arabic Computer Systems in Saudi Arabia to establish Amadeus Middle East, which will market the Amadeus computer reservations system to travel agencies in the region. Amadeus Middle East will begin operations in Saudi Arabia and expand into Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Yemen. The company will be headed by Alaa Sharabasi. The new marketing company will offer travel agents a range of PC-based products designed to increase productivity and enhance service to corporate and leisure clients.