Aviation Daily

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.

Staff
United will add a second daily Washington-Paris service as part of a late- night bank of flights that expands service at the airport from 61 to 69 daily flights. The 9:30 p.m. bank will enable new domestic service to connect with transatlantic flights to Paris and Frankfurt. "This gives eastbound travelers the option of extending their business day and allows business people in Europe to work a full day, then leave Paris or Frankfurt at the more desired time of 5 or 6 p.m. and arrive in Washington between 7 p.m.

Staff
Ananth Kumar was sworn in as India's new civil aviation minister in New Delhi as part of the 22-member council of ministers under Prime Minister Atal Behari Vajpaye. Aviation industry analysts said the choice of a hardcore veteran from the ruling Hindu fundamentalist Bharatiya Janata Party over a representative from one of BJP's allies in the coalition government for the ministerial post - which has been elevated to a senior position for the first time in nearly seven years - indicates the importance the new government attaches to civil aviation matters.

Staff
Association of European Airlines Traffic December, 12 Months 1997 December 1997 Passenger Data % % Pts. RPKs Change ASKs Change Load Change (Mil) 97/96 (Mil) 97/96 Factor 97/96 EUROPE 8,002.0 11.0 14,115.5 7.0 56.7 2.0

Staff
TWA yesterday unveiled Aviators, its new frequent flyer program, which will become effective May 1. Aviators will offer fare and mileage awards that reward members for the fare they pay as well as the miles and transatlantic segments they fly - one bonus Aviator mile for every U.S. dollar spent on full fares.

Staff
EVA Airways will launch direct 747-400 flights between Kaohsiung and Los Angeles on June 11, the first transpacific service from Kaohsiung by a Taiwan-based airline. EVA also will begin service between Taipei and Osaka on April 1. The daily service will increase the number of flights EVA operates between Taiwan and Japan to 34 per week. EVA will operate the new Taipei-Osaka service under a code share basis with All Nippon Airways.

Staff
Lufthansa CityLine has ordered three more 50-seat Canadair Regional Jet 100s. The conversion of options will bring its CRJ fleet to 34 aircraft. Deliveries are expected to be completed in the first quarter 1999.

Staff
China Airlines has agreed to increase the compensation it will pay to relatives of the 202 people who died in the Feb. 16 crash of an Airbus A300-600R at Taiwan's Chiang Kai-shek International Airport to NT$9.9 million (US$302,000) for each victim. CAL originally offered to pay NT$8.2 million per victim but offered the higher compensation after lengthy negotiations with family members of 23 victims, who demanded that the airline increase the amount classified as a special condolence payment.

Staff
Asiana of South Korea did not let economic turmoil in the region stop it from taking delivery of its first Airbus, an A321, configured for 12 business- and 183 coach-class seats. The carrier has ordered 12 A321s and six A330s.

Staff
House Appropriations Committee voted 33-26 along party lines yesterday to approve a package of budget offsets to a supplemental appropriations bill providing disaster assistance relief to Bosnia, resulting in a $275 million reduction in fiscal 1998 Airport Improvement Program obligations, cutting the total for the current fiscal year from $1.7 billion to $1.425 billion.

Staff
Boeing Commercial President Ron Woodard expressed concern about the MD-11 program yesterday, but Boeing officials rejected criticism that the company is pulling out of California having completed its merger with McDonnell Douglas. Woodard said Boeing is marketing the MD-11 "aggressively" and has sold some freighter versions, but "our concern is whether we will have the sustained orders to keep the program viable." Woodard said he does not believe the economic situation in Asia has had any impact on the MD-11 program.

Staff
Varig posted a 6.3% traffic increase in February, to 4.35 million revenue passenger kilometers. The load factor was 66.3% on international flights and 56.8% on domestic service. The airline carried 771,533 passengers, up 6.5%.