Aviation Daily

Staff
Pilots at Delta Connection carrier Atlantic Southeast overwhelmingly rejected a tentative contract agreement with the company. The pilots, represented by the Air Line Pilots Association, voted 413-43 against the contract, which was negotiated over two and a half years. Ninety-three percent of eligible union members voted. The Master Executive Council will ask pilots why they voted the contract down and schedule more negotiations with ASA and the National Mediation Board.

Staff
Dennis deGaetano has been named acting FAA associate administrator for research and acquisition. He succeeds George Donohue, who told The DAILY he recommended that deGaetano be named to the position before testifying to Congress this week. DeGaetano, who has been Donohue's deputy, also is acting acquisition executive for FAA. Donohue is now special adviser- technology to Administrator Jane Garvey.

Staff
US Airways Express will add Canadair Regional Jet service to 10 cities beginning May 1. Mesa will move five RJs that had been attached to its Fort Worth operations into the US Airways Express System. Mesa this month decided to discontinue its independent RJ operations at Fort Worth and Colorado Springs.

Staff
As many international carriers curtail service to Asia, Air France believes there are opportunities for it to expand in China. The airline will launch service to Shanghai from Paris May 11 with two weekly nonstops. In September, Shanghai service will expand further to three flights. Air France also will increase Paris-Beijing service to five weekly flights from four. The Shanghai service will operate with Airbus A340-300s, equipped with six seats in first class, 42 in business and 204 in economy.

Staff
Horizon Air has cut fares on flights from Klamath Falls, North Bend and Pendleton, Ore., by as much as 48% to Portland, Boise, Seattle and Spokane. The reductions "are designed to fill seats aboard Horizon's 37- passenger Dash 8 aircraft that recently replaced 18-seat Metroliners serving the three communities," the carrier said. Horizon provides four daily flights to Portland from North Bend/Coos Bay, Klamath Falls and Pendleton, and serves 37 cities in toto throughout the Northwest.

Staff
Iberia asked DOT for an exemption from high-density airport slot restrictions to allow it to operate Chicago O'Hare-Madrid service from Aug. 1 until the end of the 1998 summer season. The Spanish carrier is seeking slot approval from DOT Secretary Rodney Slater, who has authority to grant slots for foreign carriers, because FAA turned down its request for lack of slots. Iberia wants to offer daily nonstop roundtrips on the route, which currently has no nonstop or single-plane service, using A340-300 aircraft.

Staff
Continental traffic for February rose 12.2% on 10.7% more capacity, which raised the load factor 1.0 percentage point to a record 68.1%. Domestic traffic increased 5.1% on 2.8% more capacity, raising the load factor 1.5 points to 67.7%. International traffic jumped 28.5% on 29.7% more capacity, lowering the load factor 0.6 points to 68.8%. Continental Express traffic increased 36.8% on 23.8% more capacity, resulting in a 52.6% load factor, up 5.0 points. February 1998 February 1997 2 Months 1998 2 Months 1997

Staff
Malaysia Airlines will offer a free business-class upgrade to North American passengers purchasing a full-fare economy ticket to Asia. In turn, anyone buying a full-fare, business-class ticket will receive a free upgrade to first class. The offer is valid on tickets bought through Nov. 30.

Staff
Lufthansa has placed orders for three more Canadair Regional Jets to be used by subsidiary Lufthansa CityLine when deliveries begin in the first quarter of next year. The jets will expand the Lufthansa CityLine RJ fleet to 34.

Staff
Civil Aviation Administration of China will increase Chinese carriers' international service to 124 routes from 106 by July. Air China launched Beijing-Hiroshima service recently. China had 5.05 million travelers from overseas last year, up 14.7%.

Staff
...Route transfers by major carriers to their regional affiliates will diminish considerably in 2000 and beyond, FAA said. Thus, the future rate of growth in enplanements will be lower than previously experienced. "Also contributing to the slower growth...is the fact that the large commercial carriers are operating at relatively high load factors. This tends to diminish the value of additional feed traffic.

Staff
Southwest Airlines Quarterly Financial Results Fourth Quarter 1997 4th Quarter 4th Quarter % 1997 1996 Change Southwest Airlines Operating Revenues (000) 975,593 831,841 17.28 Operating Expenses (000) 846,737 783,539 8.07 Operating Profit/Loss (000) 128,856 48,302

Staff
TWA Quarterly Financial Results Fourth Quarter 1997 4th Quarter 4th Quarter % 1997 1996 Change TWA Operating Revenues (000) 812,823 803,299 1.19 Operating Expenses (000) 812,286 1,035,682 -21.57 Operating Profit/Loss (000) 537 (232,383)

Staff
DOT Secretary Rodney Slater said yesterday he is "ready to meet with the United Kingdom" on an open-skies agreement, and DOT is launching more open- skies efforts this month in Africa. U.S.-U.K. negotiations currently are suspended with no schedule to resume, and an open-skies deal is a U.S. precondition for immunity from antitrust laws for the proposed American- British Airways alliance. Results from the European Commission's current review of American-BA and other alliances are widely expected to establish a framework for American-BA action by both countries.

Staff
Frontier reported a 48.3% jump in traffic and a 51.7% leap in capacity last month from February 1997, which depressed the load factor 1.4 percentage points. It flew 103.9 million revenue passenger miles and 180.3 million available seat miles, producing a 57.6% load factor. Passenger enplanements rose 17.0% to 117,396.

Staff
TWA described Vanguard as a questionable candidate for slot exemptions, telling DOT it was a money-losing operation whose failure to provide operating statistics further undermines its bid for service from New York Kennedy to Kansas City and Pittsburgh, markets with "ample" nonstop service.

Staff
Comair will expand facilities at its Cincinnati/Northern Kentucky Airport hub if the Kentucky legislature cooperates by capping the annual sales tax liability on jet fuel for air-related industries and if the regional can reach agreement with the local airport authority, Comair said. The planned expansion, the cost of which Comair pegged at $25 million, will include maintenance and training facilities as well as office space. The carrier estimated the project could create as many as 900 jobs over the next 10 years. Comair currently employs 3,500 systemwide.

Staff
Aer Lingus is conducting a web site auction of four pairs of tickets from Newark to Shannon or Dublin as a promotion to celebrate year-round service to Newark. The two-week auction ends March 22, and tickets may be bid via the airline's web site, http://www.aerlingus.ie.

Staff
Rep. Joel Hefley (R-Colo.) drafted a provision that would permit reliever airport owners and operators to deny access to public charter operators. The amendment stems from an effort by an Arapahoe County, Colo., resident to block a scheduled charter operator, using Jetstream aircraft, from beginning service at Denver Centennial Airport.

Staff
Reno Air is reducing its fleet from 30 aircraft to 28 and cutting back service in an attempt to rationalize its schedule, reduce costs and restore profitability. The moves will eliminate 150 to 200 jobs, some of them unfilled. The carrier will drop Reno-Ontario, Calif., and Las Vegas- Albuquerque service April 1 and Reno-Detroit May 4. Reno lost $12.3 million last year.

Staff
New Regional Aircraft Orders And Options December 1997 Firm Orders Options Carrier No. Type No. Type Engines Aeromar 2 AA ATR 42-500 4 AA ATR 42-500 PW127 Air Georgian 2 Beech 1900D - - PT6A-67D Proteus 10 Beech 1900D - - PT6A-67D

Staff
Washington Consulting Group has lost its protest of the award of the NAS Implementation Support Contract (NISC II) to Lockheed Martin Services Inc. Judge Stephen Daniels, the General Services Administration special master for the case, recommended to FAA that the protest be denied, and Administrator Jane Garvey accepted the recommendation. Daniels concluded that there was no basis for the protest, sources said yesterday.

Staff
Regional-airline enplanements, which totaled 61.9 million in 1997, are projected to increase 7.8% to 66.7 million in 1998 and another 5.3% to 70.2 million in 1999, according to FAA Aviation Forecasts, fiscal 1998-2009, issued this week. Enplanements are expected to increase at an average rate of 5.5% annually over the forecast period, reaching 117 million in 2009, the agency said.

Staff
The U.S. Supreme Court will hear oral arguments March 23 in a case that involves how the Air Line Pilots Association uses fees that non-union pilots must pay. The case, ALPA v. Miller, was brought by 150 nonunion Delta pilots who contend they had to pay fees that ALPA used for political and other purposes unrelated to collective bargaining. They contend that such fees cannot finance activity that is not germaine to collective bargaining.

Staff
Worries that CEO Jonathan Ornstein and CFO Jim Swigart might return to the U.S. to run Mesa Air Group have, in part, been a drag on the stock of Brussels-based Virgin Express, according to Salomon Smith Barney. Ornstein and Swigart recently acquired a stake in Mesa and now sit on its board. Although the share price of low-fare Virgin is up 30% from its initial public offering in November, it is 15% off its $23 high in early January.