Aviation Daily

Staff
AMR Eagle is talking with Dallas/Fort Worth Airport about a new 34-gate terminal building in position 1E, north of American Airlines' existing Terminals 2E and 3E. The new terminal would have loading bridges, but buses still would have to take passengers from the north end of 2E to their airplanes. The new site would enable passengers to board aircraft out of the elements.

Staff
DOT's schedule for the American-LanChile antitrust immunity proceeding (DAILY, Feb. 23) requires parties to file comments on the application by March 16 and replies to comments by March 25. The department is consolidating into this proceeding LanChile's accompanying application for exemption authority to U.S. points and the American-LanChile authorization for reciprocal code-share service.

Staff
American and Japan Airlines may sign a code share agreement as early as tomorrow, according to sources and press reports, though neither carrier was willing to confirm this. JAL Chairman Susumu Yanaji and American Chairman Robert Crandall will speak tomorrow at a news conference in Tokyo, Reuters reported. The airlines have had a cargo sales and frequent flyer linkage since 1995 but have been forbidden until recently to consider code sharing. The new U.S.-Japan aviation pact allows Japanese carriers to code share with U.S. carriers for the first time.

Staff
Michael Korens, former majority counsel to the Senate aviation subcommittee and recently a managing director with GKMG Consulting Services, is joining the public affairs firm APCO Associates as VP-aviation services under Mark Gerchick, former DOT deputy assistant secretary, who recently joined the company.

Staff
Air China has become an Airlines Reporting Corp. participating carrier, effective with sales on or after March 15.

Staff
When US Airways' bid for Philadelphia-Tokyo service still was active, the State of Hawaii expressed annoyance at the City of Philadelphia's comment that Japan-Hawaii is a "niche" market. Hawaii told DOT its annual passenger count, 4.5 million, is three times larger than Philadelphia's population. "Hawaii is skeptical that Japanese tourists would seriously prefer to bypass Hawaii's tropical paradise and travel some 3,000 miles further to enjoy the pleasures of the 'numerous beach resorts along the Jersey shore,'" Hawaii said, quoting Philadelphia.

Staff
Taiwan Premier Vincent Siew has ordered the complete privatization of China Airlines. At present, 71% of CAL's outstanding stock is controlled by the China Aviation Development Foundation, a state-directed body. Siew said that, once the price of CAL's stock has stabilized, China Aviation will be required to sell the bulk of its holdings. Share price of CAL stock has fallen by more than 10% since the crash of a CAL A300-600R on Feb. 16. In addition, Siew has promised that most or all of China Aviation's current directors will be replaced.

Staff
A federal judge in Miami granted partial summary judgment last week to Dade County, Fla., in the lawsuit filed by five airlines against the financing and construction of the new $1.2 billion, 47-gate A/D Concourse for American at Miami Airport. U.S. District Judge Joan Lenard ruled that majority-in-interest approval of the project by Miami carriers is not required. Airline plaintiffs in the lawsuit are Air Canada, Delta, TWA, United and US Airways. (Air Canada et al. vs. Dade County and American; Case No. 95-2037-CIV).

Staff
Saab Aircraft received a contract from Aerospatiale, France's industry partner in the Airbus consortium, to supply an integrated structural floor assembly for Airbus's newly launched family of large aircraft, the A340- 500/600. The company said the order is worth about $75 million and will entail a first delivery during the second half of 1999. The work will be carried out by Saab's business unit, Collaborative Programs, which signed a memorandum of understanding with Airbus last year.

Staff
The last bilateral market controls in the U.S.-Canada open transborder agreement are eliminated starting today, and DOT Secretary Rodney Slater praised the pact for creating new jobs and stimulating a 37% increase in air travel. The average traffic growth rate has been more than 11% since the agreement was signed, compared with 4.3% during the three years before the agreement. Annual passenger traffic has risen to an estimated 16.2 million annually. Canadian carriers received rights to serve any U.S. point three years ago, and U.S.

Staff
In the face of a massive layoff, Mesa Air Group subsidiary WestAir allegedly has requested that SkyWest not hire WestAir pilots looking for new jobs, sources close to WestAir told The DAILY yesterday. WestAir, which recently lost its code share with United, will lay off 1,100 employees by June. Its president, Rolly Bergeson, sent a memo to employees telling them they will lose their jobs within two weeks after the end of the United code share on April 22.

Staff
As much as 47% of Air France's capital could be in private hands "in the course of 1999," once a partial privatization has been completed, the French flag carrier said yesterday in Paris. The French government plans to float as much as 20% of the capital of Air France on the Paris stock exchange, according to French Economy and Finance Minister Dominique Strauss-Kahn, a Socialist. The float will give Air France "the financial means indispensable for its recovery and development," said Transport Minister Jean-Claude Gayssot, a Communist.

Staff
British Airways plans to acquire about 100 short-haul jets to re-equip its European subsidiaries, the airline said yesterday, and its initial order could be worth between $655 million and $983 million. BA wants to replace seven aircraft types operated by BA Regional, Air Liberte, Deutsche BA and EuroGatwick with a single family type from Airbus or Boeing. Candidate aircraft include the Airbus A320 and Boeing 737 series, both currently in the fleet. The engine competition will be between CFM International and International Aero Engines.

Staff
Hawaiian Airlines filed a motion Friday asking DOT to establish a minimum number of frequencies that will be allocated to the fifth non-incumbent U.S. carrier designated to serve Japan, and to stay the selection of that carrier. Others, including the City of Chicago, Dallas/Fort Worth and TWA, argued for dividing U.S.-Japan frequency and carrier selections into phases rather than deciding all issues at once.

Staff
Northrop Grumman said it delivered the first tail section of the new 757- 300.

Staff
US Airways Shuttle will discontinue voluntarily its Airlines Reporting Corp. participation after completion of processing for the sales period ending March 8, ARC reported. Travel agents ticketing on US Airways Shuttle have been validating transactions on US Airways as part of a cooperative marketing agreement between the two carriers. This practice will continue as a result of US Airways' acquisition of the Shuttle.

Staff
The Business Travel Coalition, the lobbying arm of the defunct Business Travel Contractors Corporation, has received funding from several major corporations to continue its airline competition advocacy work, said Chairman Kevin Mitchell. Mitchell declined Friday to identify contributors but said he will do so when the list grows.

Staff
More than 36,000 British Airways staff have elected to buy shares in the airline. What BA calls the largest-ever global employee investment program signed up about 70% of U.K. staff, 33,000 people, and 60% of U.S. staff. Overall participation by overseas workers is a less impressive 25%.

Staff
British Midland urged DOT to permit U.S. carriers to code share to any destinations in France with the partners of their choice if the U.S. decides to approve an Air Liberte exemption for code sharing with American from Paris Orly.

Staff
Northwest and Kenya Airways applied jointly at DOT for an initial one-year exemption and authority to code share on scheduled combination service on certain flights between the U.S. and Kenya and beyond. Kenya Airways, which serves markets in Africa, Europe, India and the Middle East and has a "cooperative working arrangement" with Northwest partner KLM, does not hold a U.S. permit or plan to operate its own aircraft to the U.S. The carrier, privatized in 1996, is 26% owned by KLM.

Staff
Polar Air Cargo applied at DOT for a two-year exemption to conduct scheduled cargo service between any point in the U.S. and two points in Japan, and beyond each of the Japan points to one point, with full traffic rights between all points on the route. Pursuing the new authority under the recent U.S.-Japan memorandum of consultations (MOC), Polar asked to integrate the requested authority with its other operations under an amended certificate.

Staff
AAR Cooper Aviation named J.P. Hoyer VP-finance and administration. Ametek promoted Richard Patterson to VP and general manager of the Aerospace Division. Associated Global Systems appointed John Murray director- administration. Avatar Alliance named Zaheer Faruqi director-international sales. British Aerospace Asset Management-Jets appointed Rory Fisher general manager. FlightSafetyBoeing Training International appointed David Smukowski president.

Staff
Robert Reding, who helped structure Reno Air since 1994 and put it on the map, resigned after the board of directors determined that the airline "would benefit from a change in leadership." Former United executive Joe O'Gorman was named chairman, chief executive and president, and former chairman Lee Hydeman will be chairman of the Executive Committee, which comprises outside directors. Reno made the changes the same day it posted a $12.37 million net loss for the fourth quarter of 1997.

Staff
New Jet Aircraft Deliveries October 1997 Last 12 Months Carrier # Type Engines Delivery Air Canada 3 A319 CFM56-5A5 16 Air China 1 A340-300X CFM56-5C4 2 Air Mauritius 1 A340-300X CFM56-5C4 1 Air New Zealand 1 767-300ER CF6-80C2B6F 1

Staff
Airline passenger Franz Soni is pursuing his complaint against Continental, asking DOT to launch a formal investigation on his charge that the carrier violated his rights as a handicapped passenger on four occasions last year. One typical experience involved an Aug. 2, 1997, trip on which pre-boarding equipment was unavailable until after pre-boarding and baggage filled up the closet that should have been available for his wheelchair. On other trips, he said he was injured and humiliated by airline personnel transferring him to his seat.