Aviation Daily

Staff
Mexicana asked DOT for an initial one-year exemption to provide scheduled combination service between Zacatecas, Mexico, and Oakland, Calif. The carrier, designated by Mexico to serve the route, said it plans to launch service soon after DOT approval with 727 or A320 aircraft configured for 156 passengers. (Docket OST-98-3571)

Staff
Avfuel Corp. said it acquired the Aviation Fuel Sales Division of PS Trading for more than $10 million. PST, the fuel trading and supply department for the former Pacific Southwest Airlines, currently supplies fuel to airlines nationwide. It is a subsidiary of PS Group, which deals primarily in aircraft leasing and wants to refocus on its core business.

Staff
FAA's air traffic control computer software will be modified successfully well before the year 2000, Administrator Jane Garvey told skeptical members of the House Transportation aviation subcommittee yesterday. Officials from the General Accounting Office and the DOT Inspector General, also testifying, said that despite cost overruns and schedule delays on a few major programs, FAA appears to have resolved many of the problems that led to such disasters as the Advanced Automation System program.

Staff
Star Alliance members have begun flying the liveries of all six members on their aircraft.SAS debuted a "Star" 767-300 recently, complete with all liveries and a black tail with the silver five-pointed star logo of the alliance. The 767 can be viewed at http://home.kamp.net/home.michaelbogensperger/index.html.

Staff
DOT Inspector General-FAA report on the status of recommendations by the 90-day safety review task force is published today available at http://www.dot.gov/oig.

Staff
Continental will begin daily nonstop service from Houston Bush Airport to Chicago Midway on June 12, using 104-seat 737-500s. Fares will start at $149 each way based on roundtrip purchase. The carrier also will add a third daily flight from Midway to its Newark hub. A spokeswoman said the carrier used to fly the Houston-Midway route but gave it up "a long time ago." The Midway expansion will give the carrier access to its Latin American network from Chicago, she said. Continental operates five daily flights from Cleveland to Midway.

Staff
United Parcel Service said this week it selected Louisville, Ky., as the site for "Hub 2000," an automated sorting facility expected to cost $860 million. The facility will be built at Louisville Airport to replace UPS's main express hub, also located there. It will nearly double current capacity and create as many as 6,000 new full- and part-time jobs, said Tom Weidemeyer, president. He said high-speed conveyers and "smart labels" read by overhead scanners will enable the facility to process 300,000 packages and documents per hour when it is completed in 2001.

Staff
French aerospace companies set a sales record in 1997 - 130.2 billion French francs (US$21.4 billion), 19.4% more than in 1996 - according to their industry association, Groupement Industriel Francais Aeronautique et Spatial (GIFAS). Orders jumped 33.5% to FF157.9 billion ($26 billion), so GIFAS expects another strong sales increase in 1998. Last year's surge was largely due to growth in the air transport market. French commercial aircraft industry sales increased 18.5% to FF78.3 billion ($12.9 billion).

Staff
Bombardier's Belfast unit Shorts said it "warmly welcomed" a Maersk Air announcement that it will operate the Canadair Regional Jet from Northern Ireland, on a Belfast-Birmingham, U.K., route. Shorts designs and manufactures the center fuselage, engine nacelles and wing-mounted control surfaces for the 50-seat jet. The Canadair RJ is now in service or on order with 18 airlines. Bombardier had received 577 orders and options for the aircraft as of March 2.

Staff
Fairlines, the French business-class-only regional carrier, launched two daily services this week from Paris Charles de Gaulle Airport to Milan Malpensa, as well as daily service between Nice and Milan. The company started Paris-Nice operations in January, using MD-81 aircraft in a 72-seat configuration.

Staff
Delta Connection Comair will increase its Canadair Regional Jet Service from Boston to Toronto and Montreal, Canada, April 6, adding two morning jet flights from Boston to Toronto and one afternoon jet flight from Boston to Montreal - giving it a total of six daily roundtrips in each market. Separately, Delta announced that June 1 it will discontinue service from Newburgh, N.Y., to Atlanta and Cincinnati, but Comair said it will launch three daily RJ flights to Newburgh from Cincinnati.

Staff
The Sabre Group announced it has reached $4 million in sales for two consecutive weeks, beginning Feb. 2, through its consumer direct online travel products, including Travelocity.

Staff
A U.S. district court judge in Cleveland ordered FAA to cancel its contract tower program in a suit brought by the National Air Traffic Controllers Association. Judge Ann Aldrich agreed with the union's claim that FAA failed to comply with Office of Management and Budget requirements that federal agencies determine whether services are inherently governmental functions before contracting out. FAA said it is "still studying" the decision. "We do believe the program saves taxpayers a significant amount of money without adverse effect on safety," a spokesman said.

Staff
Cathay Pacific will double its daily service from Hong Kong to Sydney but will cut other routes and change some nonstops to direct service. The carrier will serve Jakarta from Hong Kong via Singapore and serve Penang, Malaysia, through Kuala Lumpur. The carrier will begin twice-weekly service to Istanbul on Aug. 8. It will increase Hong Kong-Los Angeles service, build up Amsterdam-Manchester service to five flights per week and add daily frequencies from Hong Kong to Taipei on Oct. 1 and Hong Kong to Singapore Aug. 6.

Staff
Summary of U.S. Major Carriers Domestic Traffic, Third Quarter 1997 Summary of U.S. Major Carriers Domestic Traffic Third Quarter 1997 Total Operating % Passenger Freight Revenues Change Revenues Revenues American Trans Air 201,489,716 4.51 101,407,481 -- Carnival 63,298,630 (2.40) 49,949,689 245,075

Staff
DeCrane Aircraft Holdings posted revenues of $28 million in the fourth quarter 1997, up from $22 million in the same 1996 period. Operating profit was $3.4 million, up $2.2 million. For the year, revenues rose to $108.9 million from $65.1 million, while operating profit grew to $12 million from $4.2 million.

Staff
Politicians and State Department officials agree that the visa waiver pilot program should be made permanent, but some believe current criteria for deciding who gets a visa are not objective and affect which countries are allowed to participate. John Caulfield, State Department director of policy and public affairs, said State is "serious about keeping the bad guys out" and letting the "right guys in." But Thomas Wanley, legislative director for Rep. Neil Abercrombie (D-Hawaii), said criteria used to decide who participates are too subjective.

Staff
United has placed firm orders for 30 narrowbody aircraft from Airbus as part of a strategic plan that eventually will add 68 aircraft to its fleet, Chairman Gerald Greenwald said yesterday. The order, 20 A320s and 10 A319s for delivery in 2000 and 2001, will bring United's Airbus narrowbody fleet to 111 aircraft. The total fleet will grow from 571 aircraft at yearend to 639. Greenwald said United has made "great progress" in the first of four phases in its strategic plan, "which is to strengthen our balance sheet.

Staff
The Kuwaiti parliament has approved the formation of a leasing firm that will respect Islamic doctrine and share ownership with nearby Qatar, Bahrain and Saudi Arabia. The new firm, which has not been named, will be funded with $50 million and will honor Islamic rules that forbid the earning of interest. The Saudi Islamic Development Bank will hold a stake in the firm, as will the Qatar International Bank and Al-Ahli Commercial Bank in Bahrain. Kuwait's International Investment Group will hold a stake as well.

Staff
Ryanair has hired its 1000th employee. From near-bankruptcy and 200 employees five years ago, the Irish carrier has become Europe's largest low-fare airline, carrying 5 million passengers per year. It plans to increase employment by 100 in the coming months.

Staff
Alaska Airlines' traffic for February increased 4.8% on 5.4% more capacity, resulting in a 64.9% load factor, down slightly. The load factor for the first two months of 1998 rose 0.5 percentage points to 63%. Subsidiary Horizon Air's traffic grew 14.1% to 73 million revenue passenger miles on 13.3% more capacity. The load factor was 60%, up from 59.6%. February 1998 February 1997 2 Months 1998 2 Months 1997 RPMs 762,000,000 727,000,000 1,529,000,000 1,449,000,000

Staff
Jouve Data Management said it was awarded data conversion projects in recent weeks by Air Canada, American, Delta and FedEx. The carriers are expanding the scope of their digital data programs to add out-of-production aircraft documentation by subcontracting to Jouve the conversion of paper manuals to Air Transport Association standard format, the company said.

Staff
Hawaiian Airlines and the Bank of Hawaii have been given the green light to sell Hawaiian Airlines interisland coupons via automated teller machines. Hawaiian spokesman Keoni Wagner said the carrier is "moving ahead" with the project and anticipates startup "later this month" (DAILY, Jan. 16).

Staff
An RTCA task force co-chaired by Tony Broderick and Edward Stimpson will look at FAA's certification process. Broderick is former associate FAA administrator for regulation and certification and Stimpson is chairman of the General Aviation Manufacturers Association. FAA Administrator Jane Garvey said the task force will review the way FAA departments work and use its findings to define acceptable performance standards for operational systems and suggest improvements.

Staff
Senate Commerce Committee postponed indefinitely its hearing on National Civil Aviation Review Commission outcomes. The hearing was scheduled March 11, but the committee is awaiting DOT legislative proposals based on NCARC recommendations.