Aviation Daily

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.

Staff
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.

Staff
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).

Staff
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.

Staff
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.

Staff
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.

Staff
FAA this week directed the Monroe County, N.Y., Airport Authority and Greater Rochester Airport to respond by early May to the Part 16 complaint filed by nine regional airlines over an airport facility use fee the airlines claim is unreasonable and discriminatory. In a recent filing, the Regional Airline Association and the nine carriers contended that the new fee, which took effect Jan. 1, violates the Anti-Head Tax Act, the county's grant assurances and the DOT/FAA policy on airport rates and charges.

Staff
Atlantic Coast Airlines, on the threshold of Chapter 11 bankruptcy in 1994, has seen its stock soar in recent days to a 52-week high at midday Thursday of $61.13. That is up 399% from its 52-week low of only $12.25 per share on April 30 a year ago, or in absolute terms, from a market value of nearly $103.9 million to $466.7 million. The stock has nearly doubled from a yearend mark of $31.75 per share and is up from $21 and change when it began operating its expanding fleet of Canadair Regional Jets in November.

Staff
DOT renewed for one year Air Comet's exemption to conduct charter combination service between the U.S. and Spain, and other charters. DOT noted that the request is granted under comity and reciprocity, as the U.S.-Spain bilateral does not provide for operation of charter services between the two countries.

Staff
RTCA's Free Flight Steering Committee recommended yesterday that FAA adopt the Free Flight Phase One program to implement six technologies at selected FAA en route air traffic control centers through 2002 under a core capability limited deployment process. The technologies are Traffic Management Advisor, Passive Final Approach Spacing Tool, User Request Evaluation Tool, Collaborative Decision Making, Controller-Pilot Datalink Communications (Build-One) and Surface Movement Advisor.

Staff
Continental reported record first quarter pre-tax income of $137 million, an 11% improvement over first quarter 1997 and the 12th consecutive quarter the airline has reported record earnings. Income after taxes was $81 million, up from $74 million. Continental's performance represented the payoff from a successful expansion effort, both in aircraft and hub development, although the carrier reported declines as great as 2% in passenger revenue and total revenue per available seat mile, and average yield per revenue passenger mile.

Staff
Comair is heating up the regional-jet wars. The Delta Connection carrier said yesterday it will start the first service July 1 between its Cincinnati hub and Houston's Bush International Airport, the home of Continental Express and its rapidly growing fleet of ERJ-145 ExpressJets. Delta operates three jet trips to Houston Hobby. Comair's CRJs already do battle with ExpressJets between Cincinnati and Continental's Newark hub and serve Continental's Cleveland hub as well, although Continental Express operates Beech 1900Ds on the latter route.

Staff
Wideroe of Norway has ordered two Dash 8Q Series 300 aircraft and placed a conditional order for a third, Bombardier announced. Value of the transaction - firm orders only - was placed at US$27 million. The two aircraft are scheduled to enter service in September.

Staff
Hawaiian Airlines flew 369 million revenue passenger miles last month, up 0.4% from the same 1997 period, on 0.5% less capacity, resulting in a load factor gain of 0.7 percentage points to 76.2%. Passenger boardings were down 3.6%. For the first quarter, the carrier's RPMs fell 0.1%, while available seat miles grew 1.3%, producing a 1-point decrease in the average systemwide load factor. Passenger boardings fell 3.5%. March 1998 March 1997 3 Months 1998 3 Months 1997