Aviation Daily

Staff
Continental is launching "Work Hard. Fly Right," an advertising campaign that will debut in 27 countries across three continents. The N.W. Ayer&Partners campaign, intended to build brand awareness and reflect the carrier's success, will comprise print and outdoor ads and television and radio spots.

Staff
Aviation Group has formed a fourth operating division - Component Overhaul&Service - and acquired Aero Design, a manufacturer of aircraft batteries, as part of the division. Battery Shop, a sister company, also was included in the sale. Rick Congdon, former division manager for Aviall, will head the new division.

Staff
Passenger Travel To/From Major U.S. Regions Southeast Region Year Ended Third Quarter 1997 O&D Average Averag Average Passengers Fare Yield Trip Length (Cents) Miles Total Southeast 146,089,860 $141.33 14.79 956 Within Southeast 37,218,860 $117.11 25.07 467

Staff
A recent wave of orders for Embraer ERJ145 jets has prompted FlightSafety International to order two more ERJ145 full-flight simulators, with delivery scheduled approximately six months apart in 1999. FlightSafety's Simulation Systems Division will manufacture the two Level "D" simulators in Tulsa. FlightSafety has two Level D 145 simulators in service at Tulsa and Houston, being used by Continental Express and American. FlightSafety said European airlines such as Luxair will start ERJ145 training soon.

Staff
Formosa Airlines, which lost a Saab 340 in a sea crash off Northern Taiwan March 18, has had seven Dornier 228 "hull losses" since mid-1990. Three were fatal, claiming 28 lives. Six were in the initial approach to the landing phase of flight, and the seventh lost control during taxiing and "ran into a ditch" with six passenger fatalities. In the most recent accident, last October, the aircraft abandoned the approach in high winds and rain and struck treetops and a water tower before crashing and exploding, killing all 16 aboard.

Staff
Spanair is selling tickets to seven destinations in Spain for $358 roundtrip from Washington Dulles. For travel through May 31, the price applies to Madrid, Barcelona, Bilbao, Mahon, Palma, Malaga or Santiago de Compostela.

Staff
American Eagle has selected Pratt&Whitney Canada to maintain its PW100 fleet engines, Pratt&Whitney Canada reported. The agreement includes overhaul, repair, hot section inspection, component repair development, accessory repair, spare engines and Quick Engine Change support, P&WC said. The manufacturer said, "In an effort to greatly expand" the P&WC/Eagle partnership, "P&WC has placed an on-site Power Plant Engineer at American Eagle in Dallas."

Staff
Local and congressional officials, including Florida Sens. Connie Mack (R) and Bob Graham (D), wrote DOT Secretary Rodney Slater this week urging him to grant final approval of the American-TACA code share. DOT's initial decision includes some limitations, but the action is opposed by competing carriers and sharply questioned by the Justice Department. Carriers objecting to the decision told DOT the public would not benefit from an ever more dominant hub for American at Miami, and some have recommended carving out Miami from the code share.

Staff
Delta, which begins its first major expansion into Latin America next week, will promote Atlanta and New York Kennedy as launching points in an attempt to steal passengers who currently connect through American's Miami hub. Roughly 55% of passengers using Miami Airport are connecting to and from other points. "They are the passengers we want to pursue," said Rudy Forster, general manager-Latin America. Most of Delta's six-country expansion will occur from Atlanta. "No other expansion within Delta this year will compare," he said.

Staff
AlliedSignal Electronic&Avionics Systems said it has successfully flight- tested on a Boeing 777 two safety systems that help protect aircraft from severe weather and terrain - the enhanced ground proximity warning system (EGPWS) and the RDR-4B forward-looking wind shear radar.

Staff
FAA said its new policy permitting certification of some aircraft without full-scale emergency evacuation testing is the result of a lengthy process (DAILY, March 26).

Staff
Starting May 1, Cape Air will offer service between Providence and Martha's Vineyard, the carrier said. The carrier already serves Nantucket from Providence. Cape Air plans as many as 12 daily nonstop flights in the Providence- Martha's Vineyard market, and "with a flight time of only 20 minutes, taking Cape Air to the Vineyard makes perfect sense for vacationers who may be interested in a day trip or for those who are looking to make connections through Providence," Cape Air President Dan Wolf said.

Staff
Delta has named Warren Jenson executive VP and chief financial officer. Jenson will assume his duties in late April. He is currently senior VP- finance and CFO for the National Broadcasting Company. Delta President and Chief Executive Leo Mullin praised Jenson's "extraordinarily successful record as an accomplished financial executive at one of America's most admired companies." He said Jenson's experience is "perfect" for Delta, and he will bring creativity and discipline to improving revenue and cost performances.

Staff
International Airline Support Group said it has purchased an Airbus A300-B4 which it will disassemble for its parts sales operations. President Lex Dyer said the company's diversification into Airbus aircraft broadens its product lines. "In this case, we identified a market for the Airbus product and moved to fill it." He said "cargo airlines have historically been strong customers of IASG. The A300 model is undergoing a freighter conversion led by Daimler-Benz Aerospace, Airbus, Pinnacle Aircraft Leasing and Bristol Associates.

Staff
House passed H.R. 2843, requiring FAA to re-evaluate the equipment carried in medical kits on commercial airlines, and to decide whether automatic external defribrillators should be carried as part of the kits.

Staff
Intertechnique, Paris-based manufacturer of aircraft and fuel system components, and DRS Inc., an FAA repair station based in Milwaukee, are forming a joint venture company in the U.S. called IDC Aerospace. IDC also will be located in Milwaukee and will focus on providing repair, overhaul, manufacturing and parts distribution services for aircraft.

Staff
Delta and Continental-Micronesia amended their U.S.-Japan service applications in proposals that would boost operations from Hawaii well in advance of Hawaiian Airlines' Jan 1, 2000, startup, the earliest possible date under Hawaiian's designation as the fifth U.S. flag to Japan. American asked to increase its San Jose, Calif.-Tokyo frequencies from six a week to seven. The amendments would add to services awarded in DOT's tentative decision on rights starting in 1998 (DAILY, March 17, 18), and yesterday was the deadline for replies to the order.

Staff
Air New Zealand, Thai Airways and Varig agreed yesterday to link their frequent flyer programs as of March 29, enabling passengers to earn and redeem mileage in any of the three plans. The move brings Air New Zealand, a code-share partner of United, Air Canada and SAS, closer to membership in the Star Alliance.

Staff
Continental and Brazil's VASP will code share on flights between the U.S. and Brazil pending government approval. The agreement would kick in this summer, covering Continental's service between Newark and Sao Paulo and Rio de Janeiro, as well as VASP's flights between Sao Paulo and Miami and Los Angeles. VASP would access another 20 cities beyond Newark in the U.S. and Canada, while Continental would feed passengers to 14 Brazilian cities in VASP's network.

Staff
American Eagle's initial Chicago O'Hare schedule for the Embraer RJ145 indicates a strategy aimed at chief competitor United rather than the most efficient use of the airplane. The carrier May 15 will launch ERJ145 service from O'Hare to Cleveland, Cincinnati and Milwaukee with an average stage length of 216 miles. The new service replaces ATR s, the last turboprops on the Cleveland and Cincinnati routes, where the only competition is large jets. Initially, only one daily jet trip is planned for the 67-mile Milwaukee segment against Air Wisconsin BAe 146s.

Staff
Savannah, Ga., and Hilton Head, S.C., want DOT to award them eight weekly slots to Chicago O'Hare but regional jet operator Atlantic Coast Airlines told the department it should invite carriers to compete for the service instead.

Staff
As Facilities and Equipment and Research, Engineering and Development funding for aviation security increases in the aftermath of TWA Flight 800, it will take "another three to five years...to get the equipment out there that is needed," Tony Fainberg, FAA director of civil aviation security policy and planning, said yesterday at an Air Traffic Control Association conference in Arlington, Va.

Staff
House aviation leaders wrote yesterday to Speaker Newt Gingrich (R-Ga.) protesting the House Appropriations Committee's vote to rescind Airport Improvement Program spending this year.

Staff
Canadian Airlines posted a 3.4% decline in February traffic on 3.1% more capacity, which resulted in a load factor of 63.4%, down 4.2 percentage points. Domestic traffic dropped 9%, in line with the airline's 8.4% domestic capacity reduction. International and charter traffic fell 0.6% on 8.8% more capacity, which forced the load factor down 6.0 points to 63.6%. "We are satisfied with February's results, particularly given that February was affected by a weather event beyond our control," said Doug Carty, chief financial officer.

Staff
Air Transport Association Senior VP Edward Merlis warned yesterday against using Tuesday's House Appropriations Committee Airport Improvement Program fiscal 1998 spending rescission to justify raising the $3 limit on passenger facility charges. He said the suggestion of some airport advocates to remove primary commercial airports from AIP is "untenable, unreasonable and unpardonable." Both actions would exert upward pressure on PFC levels as airports seek funding denied elsewhere.