Aviation Daily

Staff
Association of European Airlines Top 30 Intra-European Markets The Year 1997 1997 1996 % Rank Market* Passengers Passengers Change 1 London - Paris 2,334,918 2,343,277 -0.4% 2 Dublin - London 1,901,945 1,728,840 10.0% 3 Amsterdam - London 1,871,556 1,722,254 8.7%

Staff
AirTran will discontinue service to Mobile, Ala., effective May 31. "Despite the diligent and supportive efforts of the Mobile Airport Authority during the past 18 months, the consistently poor performance in Mobile leaves us with no choice but to reallocate...resources," said Ponder Harrison, senior VP-sales and marketing. In its former life as ValuJet, AirTran began serving Mobile in May 1996 and announced it would pull out of the market in January 1997, but was persuaded to stay by community leaders offering increased revenue guarantees (DAILY, Jan. 15, 1997).

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The DOT Inspector General's office will issue a report today on FAA's failed Advanced Automation System, written at the request of the Senate Appropriations transportation subcommittee. With programs such as STARS and WAAS under way, a government source said, the report on actions that led to wasting more than $1 billion "illustrates how not to do it."

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U.S. Major Carriers Financial Indicators Fourth Quarter 1997 Actual Load Factor Breakeven Load Factor (%) (%) Fourth Quarter 12 Months Fourth Quarter 12 Months 1997 Ended 4Q97 1997 Ended 4Q97 Alaska 64.7 67.3 59.7 60.2

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FAA and the National Air Traffic Controllers Association (NATCA) have agreed to the original date of June 1 for initial operating capability (IOC) of the Display System Replacement (DSR) at the Seattle air route traffic control center (ARTCC). The union balked at the date until FAA agreed that it will not proceed beyond Phase 2 of the program at Seattle or any other site until pending solutions to "deployment critical deficiencies" are in place, said Randy Schwitz, NATCA executive VP.

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LanChile and American have finalized a frequent flyer link in anticipation of code-share approval. Reciprocal frequent flyer privileges began April 15.

Staff
Embraer will roll out its new 37-passenger ERJ-135 May 12 in Sao Jose dos Campos, Brazil, three months ahead of the original schedule. First flight is set for July, breaking a company tradition of flying new aircraft on the day of the "official" rollout. Certification will follow one year later with first delivery to launch customer Flandre Air of France. Flandre Air has ordered eight of the truncated ERJ-145s with 12 options.

Staff
The Global Pilot Alliance, comprising pilots from Delta, Swissair, Sabena, Austrian and Finnair, will meet next week in Montreal to forge agreements on key issues. The five carriers all have code-share agreements, and pilots are concerned about possible management tactics in the event of a strike. The pilot alliance, which formed last August, will meet in Brussels this August and in Helsinki in December.

Staff
Embraer has chosen the Flight Dynamics head-Up Guidance System for the ERJ-145 regional jet, Flight Dynamics announced. Embraer VP-Industrial Satoshi Yokota said the Flight Dynamics HGS "offers the best technical solution and least risk option for Category IIIa capability on our new ERJ- 145 aircraft."

Staff
United will suspend daily nonstop service between San Francisco and Seoul May 5 and Osaka-Seoul July 8, reflecting a decline in Asian traffic following financial crises in the region. United told its employees yesterday it will continue daily service between Seoul and Narita, which will serve as a connecting point between the U.S. and Korea. Senior VP- International Chris Bowers said Korea had been particularly hard-hit by the financial crisis and the carrier had been unable to achieve sustained profitability on the routes.

Staff
US Airways' financial outlook is now positive, according to Standard&Poor's, which removed US Airways Group and US Airways Inc. from its CreditWatch list. S&P said the company has sharply improved operating performance and future prospects with the launch of its low-cost MetroJet system and a new pilot contract that reduces operating expenses.

Staff
Gulfstream International, which on April 6 celebrated its first anniversary as a Continental Connection affiliate, carried a record 60,684 passengers last month and posted a 61.4% load factor. Gulfstream said as a Continental Connection it had achieved "great success" providing on-time services throughout Florida and the Bahamas. Gulfstream operates more than 200 daily flights to 15 destinations throughout Florida and the Bahamas. It will launch Fort Myers service May 1 (DAILY, March 20).

Staff
TWA and Air New Zealand have received approval from their respective governments to conduct a cargo code share from several points in the U.S. to New Zealand.

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Gulfstream Aerospace reported first quarter revenues of $503.4 million, up 34%, and net income of $40.5 million, up 54%. It delivered 13 aircraft in the quarter, compared with 11 during the same quarter last year.

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Delta is offering frequent flyer miles to its customers who finance or refinance a mortgage through North American Mortgage Company. The new HouseMiles program enables frequent flyers to earn 1,000 miles for every $10,000 they borrow. Members also can earn 2,500 miles by taking out a home equity line of credit with North American, with no limit on miles earned.

Staff
United's Boeing order this week is part of a four-step strategic plan to strengthen the balance sheet, retire and replace older aircraft, grow the fleet to take advantage of opportunities, and return cash to shareholders. United will grow capacity 3% annually and eventually add 68 aircraft, increasing the fleet to 639 in 2001.

Staff
FAA said yesterday it plans to order changes to the fuel tank wiring on 737 aircraft to prevent possible ignition sources of fuel tank vapors. Tom McSweeny, director, Aircraft Certification Service, said the proposed airworthiness directive is aimed at protecting the fuel quantity indication system against transient electrical voltage spikes or short circuits. It would require suppression components and/or shielding and separation of fuel system wiring that is routed to the fuel tanks from adjacent wiring.

Staff
American received a two-year renewal of its exemption to provide scheduled foreign combination service between Boston and Paris. The carrier operates seven weekly nonstops using A300 aircraft. DOT dismissed the portion of American's application requesting that the authority be renewed for an indefinite duration. DOT also granted American's request to renew for two years its exemption to operate service between co-terminal points Chicago and New York and terminal point Warsaw under code share with Polish carrier LOT (DAILY, Jan. 28).

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Northwest will expand electronic ticketing to cover service between the U.S. and Canada and Osaka and Tokyo. Transpacific travelers on those routes between May 18 and July 31 will receive 1,000 bonus frequent flyer miles for booking with e-ticket. The airline said 40% of customers in the U.S. use e-ticketing.

Staff
Vice President Al Gore's recent speech at Washington Reagan Airport announcing the administration's safer skies initiative will be the subject of Aviation News Today, to air Sunday on Washington's NewsChannel 8 at 12:30 a.m. and 1:30 p.m.

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The European Commission wants to promote cooperation with U.S. regulators, an EC official told aviation industry experts Wednesday in Phoenix. Speaking at the Seventh Annual International Aviation Symposium, Ben Van Houtte said he believes the sticking point in full regulatory cooperation between the EC and the U.S. is the U.S. position on traffic rights. Van Houtte, member of a symposium panel on how the aviation industry will look in 2000, said the EC has a mandate to develop a mechanism for regulatory cooperation, but because of U.S.

Staff
AMR Corp.'s Sabre Group reported first-quarter record revenues of $554 million, up 25.8% from the same period last year. Net earnings were up 7.7% to $72 million, and operating income grew 5.5% to $114 million, up from $108 million. The increases came despite the introduction of the new non-billable booking code in February and lower-than-expected growth in domestic airline enplanements, Michael Durham, president and chief executive, said. Durham said the results were consistent with expectations.

Staff
Atlantic Coast Airlines yesterday began service between Worcester, Mass., and Washington Dulles, operating four daily roundtrips with 29-seat Jetstream 41 aircraft. The United Express carrier is offering a $79 one- way introductory fare on the route. The introductory fare must be purchased by April 30 for travel on or before May 31. ACA's current fleet comprises 67 aircraft - seven 50-passenger Canadar RJs, 32 Jetstream 41s and 28 Jetstream 32s.

Staff
Air Canada said it will require passengers to "remain buckled in" whenever they are seated, effective immediately. U.S. carriers American and United have instituted a similar policy. Air Canada is implementing the new seat belt rule, a first for a Canadian carrier, to reduce the chance of injuries resulting from clear-air turbulence. The carrier's rule goes beyond Transport Canada's requirement that passengers have their seat belts fastened during takeoff and landing and whenever the seat belt sign is turned on.

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It is "reasonable to expect" Don Carty to be "a tough, bottom-line-oriented CEO" when he succeeds Robert Crandall as chairman and chief executive at American May 20, Allied Pilots Association President Richard LaVoy said after Crandall announced his retirement (DAILY, April 16). Carty and Crandall differ in style, LaVoy commented, but they worked together closely for years and the bottom line "is his [Carty's] job." One effect of Crandall's toughness "has been the transformation [of APA] into a more capable organization," LaVoy said. "Mr.