Aviation Daily

Staff
Summary of U.S. Cargo Carriers Systemwide Expense Indicators Fourth Quarter 1997 (000) Labor Maintenance Rentals Arrow Air 3,374 (7) 13,896 (7) 6,103 (6) Atlas 19 (8) 47 (8) 13 (8) DHL 56,129 (3) 29,701 (3) 23,784 (3) Emery 16,150 (4) 25,192 (4) 6,709 (5)

Staff
Europe's regional airlines saw substantial gains last year, according to the European Regions Airline Association (ERA). Passenger traffic for ERA's 72 member airlines grew 13% in 1997 and nearly 50% of member airlines experienced 20% growth. Aircraft movements increased by 9.9%. Though ERA's average passenger load factor of 57.5% was one percentage point higher than in 1996, the percentage remains low compared with load factors for the bulk of Europe's air transport sector served by major airlines.

Staff
Reno Air has upgraded to the Direct Connect Sell connectivity level in the Sabre computer reservations system. Travel agents selling seats on Reno will receive fast confirmation of booking transactions. The process mirrors selling directly from the airline's internal reservations system. Agents will be able to secure clients' seating with a real-time seat map. Reno intends to confirm or deny booking requests instantly, improve control over its inventory at the time of sale, manage yield better and minimize oversales.

Staff
Alitalia Managing Director Domenico Cempella starts his privatization road show today in Milan and intends to appear in London and New York. Cempella told shareholders yesterday the airline made a profit in the January-April period for the first time. (See story to follow.)

Staff
Southwest said Gary Barron will relinquish his position as executive VP- chief operations officer Dec. 31 but remain an executive VP at least through Dec. 31, 2000, focusing on labor relations. James Wimberly, VP- ground operations, will transition under Barron and replace him on Jan. 1, 1999. David Ridley will become VP-ground operations May 1. On the same date, Joyce Rogge will become VP-marketing and Donna Conover VP-inflight service and provisioning, replacing William Miller, who is retiring as head of inflight.

Staff
Pro Air will introduce nonstop 737-400 passenger service between Philadelphia and Detroit on May 28. The carrier will offer two daily roundtrips on weekdays and one on Saturdays and Sundays. One-way unrestricted coach fare will be $89 and first class will cost $139. Pro Air will operate flights between Philadelphia and Indianapolis via Detroit for $109 coach and $159 first class. It added a second daily nonstop to Indianapolis from Detroit on May 1.

Staff
Planet Airways has purchased its first aircraft, a 727-100 from S-C Aviation Services, and plans to launch charter operations in the U.S. and to foreign points after it receives FAA and DOT approvals. Peter Garrambone, president of the Orlando carrier, said it also plans to enter agreements with charter companies for ad hoc charters to the Caribbean and Latin America.

Staff
Senate Appropriations transportation subcommittee holds a hearing today at 9 a.m. in Room 192 Dirksen on aviation competition, focusing on ticketing practices and antitrust enforcement. Senate Commerce aviation subcommittee scheduled a hearing Thursday in Room 253 Russell on S. 1089, a bill to terminate certain amendments to FAA's foreign repair station rules.

Staff
America West capped travel agent commissions last week at $50 per roundtrip and $25 one way on tickets issued in the U.S. and Canada. It is paying online vendors that sell America West travel a 5% commission for a maximum $10 payment. The American Society of Travel Agents, whose computer reservations system cost-reduction task force to reduce passive bookings has worked with America West, said it was disappointed with the commission cap.

Staff
Hydro-Aire appointed Dennis Hutton director of supply management.

Staff
The Environmental Protection Agency is not planning new rules on jet engine emission reductions, as has been reported, but is about to solicit industry opinions on a voluntary program that might accomplish similar goals, an EPA official said Friday. "What we have talked about is a voluntary program to retrofit older aircraft" with kits that would reduce emissions, said an EPA official, speaking on condition of anonymity.

Staff
Finnair named Bo Long area VP for the Americas, promoted Jean-Pierre Vinkel to general manager Latin America, named Ilkka Mitro area VP-Western Europe, appointed Ali Sadik-Ogli passenger sales manager-USA, promoted Antero Palo to director of business travel, appointed Ramon Biarnes marketing manager The Americas and promoted Philip Perry to regional manager Northeast USA. Jyrki Eriksson remains as general manager, Canada.

Staff
Alaska named John Fowler executive VP-technical operations and system control.

Staff
SAirGroup cargo subsidiary Swisscargo chose Ludwig Bertsch president and chief executive officer.

Staff
Dobbs International Services' VP of marketing and sales, George Alvord, was named 1998 Distinguished Executive of the Year by Fogelman College of Business and Economics at the University of Memphis. Envirotainer named Kay Sauldsberry operations/sales representative.

FAA

Staff
- In Federal Register dated April 24...Issued an airworthiness directive on certain Aerospatiale ATR 72 aircraft requiring inspection for cracking of the lower fuselage structure...Issued an AD on certain British Aerospace ATP aircraft requiring inspections for corrosion of the brake hydraulic accumulators...Issued an AD on Saab 340 aircraft requiring an inspection of the fire extinguisher in the forward lavatory...Issued an AD on certain Fokker F27 aircraft requiring modification of certain fuselage stations...Issued an AD on certain Airbus A310 and A300-600 aircraft r

Staff
Fairchild Dornier appointed Joe Vreemen senior VP-customer support.

Staff
An IATA Americas survey due to be published this month will reveal that Chile shows the strongest traffic growth. The 50-country survey will show continued strength in Caribbean-Europe traffic but stagnation in Bahamas travel.

Staff
Avatar Alliance promoted Michael Mayer to senior VP-sales, marketing and procurement, and Edward Randall to senior VP-finance and administration, and named Charles Postel VP-sales and material support.

Staff
MacNeal-Schwendler named Larry Barels and Donald Glickman to the board.

Staff
FAA staffers have completed a report on the benefits of Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) advances in reducing aircraft engine emissions into the atmosphere. The report, prepared for the ICAO CNS/ATM Implementation Conference May 11 in Rio de Janeiro, is awaiting final approval before it is sent to ICAO.

Staff
KLM and Northwest will extend their smoke-free policy to cover all flights worldwide as of Aug. 1. The extension prohibits smoking on flights to and from Japan, the country many airlines still exempt from their smoking restrictions.

Staff
CCAIR named Al Beamon VP-maintenance.

Staff
The Internet has revolutionized the airline business "more than anything else," Salomon Smith Barney's Julius Maldutis said last week at the International Airline CEO Conference. Internet selling could enable airlines to save $3.1 billion of the $12.5 billion they spend on distribution, he said. A Singapore Airlines online auction brought in $75,000 extra for a single transpacific flight.

Staff
Aircraft Owners and Pilots Association wants FAA to "redesign" the Flight 2000 program and "establish clear objectives...to test air traffic control modernization." Phil Boyer, president, said Flight 2000 as currently structured will not accomplish the goal of evaluating the operational and technical risks associated with airspace system modernization. Boyer wrote FAA Administrator Jane Garvey that this effort should be undertaken as soon as possible.