Aviation Daily

Staff
National Transportation Safety Board documents show that but for a series of "ifs," there might not have been a fatal crash of a Korean Air 747-300 trying to land at Guam. The board is holding three days of hearings in Honolulu on the crash, which killed 228. Of the more than 20 survivors, two flight attendants said there was no warning to prepare for a crash landing on Aug. 6, 1997. At the time of the accident, the glideslope associated with the ILS to the runway was out of service, although the localizer was working.

Staff
Delta, Northwest and Continental have discounted ticket prices for travel this spring and summer. Delta is offering introductory fares from Atlanta and Cincinnati to Mexico City, while Northwest and Continental are cutting children's and adult tariffs in selected markets for summer travel. Delta's Mexico City fares are $278 roundtrip from Atlanta and $318 roundtrip from Cincinnati. Tickets must be bought April 5-7 and travel taken between April 5 and May 31.

Staff
Turkish Park Holding, a conglomerate with interests in textiles, mining, financial services and airport ground services, is establishing an airline company, Park Express, that will fly only to domestic destinations in Turkey. The airline aims to serve destinations that are receiving poor service from state-owned Turkish Airlines (THY). The new airline company recently named Atilla Celebi chairman. Celebi, 68, was president and chief executive of THY until last year.

Staff
The European Commission authorized yesterday a #200 million (US$340 million) U.K. government loan to Rolls-Royce to help finance development of new-generation high-thrust Trent engines, estimated to total #736 million. The government loan will be granted over four years, from 1998 to 2001.

Staff
Tower Air and Federal Express have settled a lawsuit brought by Tower for alleged contract and antitrust violations. In another action, the New York State court issued a verdict in Tower's favor in a September 1995 Pacific Harbor Capital action over a leasing agreement.

Staff
Senate Commerce Aviation Subcommittee Chairman Slade Gorton (R-Wash.) said his answer to the question whether the $3 ceiling on passenger facility charges will be raised is a "resounding 'I don't know,'" and urged a "meeting of minds" between airline and airport advocates on the issue. But Gorton, speaking Tuesday at the Airports Council International-North America/American Association of Airport Executives Washington conference, said he sees no consensus at this time.

Staff
International Aero Engines said yesterday it is offering a 20,000-pounds- thrust version of its V2500 turbofan for Airbus's prospective new 100-seat jetliner, the A319-M5. Barry Eccleston, IAE president, said if the aircraft enters production, "I believe the best solution is to continue offering the existing family of engines and allow current customers to maintain fleet commonality." The V2520-A5 proposed for the A319-M5 is a derated version of the powerplants on current A319 and Corporate Jetliner models.

Staff
Air Canada will suspend its Indian operations between June 1 and Sept. 30 citing low yields, airline sources said. It presently operates four Airbus A330 flights every week between Toronto and New Delhi, via London. This is the second year in succession that Air Canada has resorted to a temporary flight suspension for the Indian sector. Aviation industry analysts say it might be significant that Air Canada began suspending its flights to India soon after Air-India began its additional North American flight to Chicago last year.

Staff
Continental, growing the fastest among large airlines, boarded nearly 36 million passengers in 1997 and bumped 360, garnering the lowest denied boarding rate for the year, 0.10 per 10,000 passengers.Delta, whose 1.53 rate was 15 times higher, boarded more than 100 million passengers and bumped 15,297, nearly as many as Continental, United, Northwest, American and US Airways combined.

Staff
Ansett Australia has cut the price of its Jakarta-Sydney roundtrip fare to US$400 from $700. Ansett Marketing Manager Yuliana Subarli said the move was needed because of a fare war among airlines in Indonesia.

Staff
Southwest, which is buying or leasing four 737-300s formerly operated by Western Pacific, is accelerating recruitment of flight attendants as a result. With the addition of the Westpac aircraft, Southwest's 737 fleet will total 263.

Staff
Northrop Grumman's Commercial Aircraft Division signed an agreement with Boeing Commercial extending through 2006 its contract for producing the center wing box section of the 767 jetliner at current production levels. The company has been producing the 16x24-foot center wing box since the program began in 1979.

Staff
Legend Airlines has hired six key executives and elected a new board member. Thomas Plaskett, former chairman and chief executive officer of Pan Am Corp. and former president and CEO of Continental, was elected vice chairman of the board. Lois Oller was named senior VP-customer service, Ron Holley VP-maintenance, Matt Fajack chief financial officer, Joel Fisher VP-flight operations, Ken Lantz chief pilot and Vince Hasson director of quality control and quality assurance. Legend is set to begin operations during the fourth quarter of 1998.

Staff
Japanese Transport Minister Takao Fujii last week again rejected domestic airline calls for lower landing fees at Tokyo Narita to help the country's struggling carriers. It now costs about 1 million yen ($7,700) to land a 747 in Tokyo.

Staff
U.S. Transportation Command, facing transport pilot retention problems despite improved bonuses, is developing with airlines a career transition program intended to entice its pilots to stay, Air Force Gen. Walter Kross said yesterday at the Aero Club of Washington. Twenty-year Air Force pilots will get help toward the end of their military careers on applying for airline jobs.

Staff
Taiwan Premier Vincent Siew will request the resignation of Minister of Transportation and Communications Tsay Jaw-yang, leading Taipei dailies reported yesterday. Siew has come under increasing pressure to demand that Tsay resign to accept responsibility for a recent series of accidents in Taiwan's aviation sector. With a growing number of legislators calling for Tsay's removal, reports have been circulating that the legislature would call for a "no confidence" vote if Siew refused to act.

Staff
Willis Lease Finance Corp. said yesterday it has committed to purchase 12 747-100s and spare engines from United. "We plan to disassemble the Boeing 747s into their component parts for sale or lease," said Charles Willis, president. The aircraft are powered by Pratt&Whitney JT9D-7A engines and "we expect some of these engines will be suitable for our operating lease portfolio," he said.

Staff
After more then two years of negotiations, Sun Country's pilot leadership and management today will sign their first labor agreement, giving the charter carrier's 220 pilots a 7% increase in total compensation. Sun Country and the leaders of its Air Line Pilots Association unit will sign the 30-month contract at 10:30 a.m. at the Hubert H. Humphrey Charter Terminal in Minneapolis. Sun Country's ALPA unit and management, negotiating since October 1995, reached an agreement in February and it was ratified by the membership March 5.

Staff
As a result of the crash of a Formosa Airlines Saab 340, following by only a month Taiwan's deadliest air disaster, the crash of a China Airlines Airbus A300-600R at Chiang Kai-shek International Airport, in which 202 people died, the number of passengers flying on Taiwan's domestic airlines has plunged by more than 20%. On some routes, traffic is off by 40%. Public perception of air safety, already devastated by the two commercial accidents, has been further battered by a series of military aircraft losses in recent weeks.

Staff
Air France will increase frequencies to Los Angeles and two dozen other cities worldwide as part of its summer schedule, May-September. On its Paris-Los Angeles service, rising to 12 weekly flights, it will introduce three 777s configured for 12 first-, 56 business- and 202 economy-class seats. Long-haul capacity will rise 13% this summer. Paris-New York will convert to 777 service and Sao Paulo/Rio de Janeiro will be flown with a 777 as of June 18.

Staff
Brussels-based Virgin Express said yesterday it will begin operations this week from Nice under the Virgin Express France name using Air Provence Charter, a little-known French carrier it acquired in 1996 when it bought EuroBelgian Airlines, later renamed Virgin Express. Air Provence Charter, which suspended operations temporarily last November, described itself to World Aviation Directory as a subsidiary of Virgin Express with a fleet of two yet-to-be-delivered 737-800s.

Staff
The Borough of Queens and a Detroit community group have filed in opposition to Pro Air's bid for a slot exemption at New York LaGuardia Airport, while the City of Detroit strongly supports it. The carrier, which serves five markets from Detroit, wants to serve LaGuardia with nonstops from Detroit City Airport.

Staff
An open-skies agreement with the U.K. "would be meaningless" if the U.S. does not obtain, in advance of consideration of the application by American and British Airways for approval of their alliance, "bilateral assurances" for U.S. carrier access to "adequate slots and facilities at London's airports," Delta said. The carrier filed in response to US Airways' charge that the U.K. violated the bilateral agreement by denying it access to "commercially viable slots" at London Gatwick for daily nonstops from Charlotte, N.C.

Staff
Airport and Airway Trust Fund -- Income Statement October 1, 1997 - December 31, 1997 RECEIPTS (Revenues) Current Month CY To Date Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas 1,422,780.00 23,606,780.00 Transportation by Air, Seats, Berths, etc. 663,172,000.00 2,434,615,000.00 Use of International

Staff
The Senate will "move pretty fast" on airline competition once it establishes a consensus on what to do, Senate Commerce Committee staffer Charles Chambers said yesterday at the Airports Council International-North America/American Association of Airport Executives conference in Washington. Chambers said he expects "pretty solid proposals on competition bills" within a month.