Aviation Daily

Staff
Virgin Express disputed Belgian union claims the airline was disrupted by a brief walkout Feb. 17, when 100% of flights departed and none was canceled. The unannounced pilots strike lasted 2.5 hours last Tuesday and delayed one flight, said Paul Skellon, director-corporate affairs and a pilot for the airline. About 83% of flights departed on time, normal for the carrier. Belgian flight crews, which comprise 30% of the total, had complained about when their duty day actually began and ended.

Staff
Sabena Technics will supply Rolls-Royce with test cowlings for the Trent 500, in development for Airbus's A340-500 and A340-600 derivatives. The Belgian carrier's maintenance and technical services unit will produce four test cowlings under the first phase of its contract. If the development program is successful, Rolls will buy two more test cowlings for the production program. The total value of the contract is estimated at 220 million Belgian francs (US$5.8 million).

Staff
Faced with resistance from its Air Line Pilots Association unit, US Airways has told DOT it is withdrawing its application for code-share service to Japan with American and United. The carrier also is withdrawing its bid for Philadelphia-Tokyo service operated with its own flights on or before 2000. US Airways said it is not feasible at this time to pursue a code share to Japan. Under the US Airways-ALPA contract, the company is not allowed to code share on an international route with a domestic carrier (DAILY, Feb. 18).

Staff
Industry consolidation will continue this year, particularly among third- and fourth-tier companies, according to Aerospace Industries Association President Don Fuqua. "But the big thing will be acquisition reform in the international arena and changing the philosophy of our government about economic sanctions every time we disagree with someone," said Fuqua, who retires later this year.

Staff
U.S. and U.K. authorities are considering a mini-deal that would give Virgin Atlantic daily Heathrow-Las Vegas authority in exchange for another daily Chicago-Heathrow flight for United, all in advance of an open-skies agreement or American-British Airways alliance approval, sources said Friday. DOT Deputy Assistant Secretary Patrick Murphy declined comment.

Staff
FAA has requested comments on its proposal to requir child restraint seats and its rule upgrading the fire safety standards for cargo or baggage compartments in transport category airplanes (DAILY, Feb. 13). The fire safety rule eliminates Class D compartments as an option for future type certification. Compartments that can no longer be designated Class D must meet the standards for Class C or E compartments. The effective date of the rule is March 19. Comments must be received by June 17.

Staff
American has entered a reciprocal frequent-flyer agreement with TAM of Brazil, effective immediately. American's AAdvantage members can earn credit for TAM flights within Brazil and to many cities in Latin America. The frequent-flyer pact is part of a broader alliance in which the carriers intend to code share on selected flights .

Staff
Wexford Management is not a household word in commercial aviation circles. It will be. Through its Wexford Aviation subsidiary, the Greenwich, Conn., company is acquiring US Airways Express Chautauqua Airlines (DAILY, Feb. 17). Wexford also has 40 Embraer regional jets on firm order and recently made a large investment in Frontier. "We are acquisitive," said Wexford Aviation Executive VP Ed Wegel, noting that there are many Express markets for the jets and there "will be room for both" Chautauqua and Mesa Airlines RJs in the US Airways system.

Staff
The Environmental Protection Agency last week sought comments by April 13 on a petition for rulemaking filed last year by several environmental advocacy and wildlife protection groups to add Standard Industrial Code 45, Transportation by Air, including airports, to the list of facilities required to report releases of toxic chemicals listed on the Toxic Release Inventory.

Staff
Pilots at American do not support an American-US Airways code-share agreement for Japan service because it violates the US Airways' pilot contract. Gregg Overman, spokesman for American's Allied Pilots Association, said a statement by American spokesman Tim Smith that American's pilots are "perfectly comfortable" with the agreement (DAILY, Feb. 18) is not true.

Staff
Boeing intends to announce today a plan to establish a logistics and support center for large commercial and military aircraft at Kelly AFB, Texas, under a 20-year lease. Kelly was targeted for closure by the Base Realignment and Closure Commission in 1995.

Staff
British Airways will increase capacity 8% with its summer schedule, growing transatlantic service and adding frequencies to nine Latin American destinations. The carrier will begin double-daily service to Newark May 1 and increase flights to Seattle, Orlando and Tampa. Altogether, BA adds 13 weekly frequencies to the U.S. and increases U.S.-U.K. service to 333 flights per week, including 87 to New York and Newark. It will upgrade capacity on London-Phoenix and London-San Diego March 29, replacing DC-10s with 747-400s.

Staff
Slovenian national carrier Adria Airways is launching new service between Brussels and Ljubljana on March 4, to be operated three times weekly with 48-seat Canadair Regional Jets.

Staff
The European Regions Airline Association says there should be the "earliest practical establishment" of the European Aviation Safety Authority (EASA). According to ERA, the body should: -- have authority for safety-related matters only; -- include EU and non-EU countries; -- promulgate and enforce binding regulations; -- ensure cost-effective regulation by relying on cost-benefit analyses and avoiding duplication of functions by individual member states.

Staff
EuroLOT, the regional subsidiary of LOT Polish Airlines, has placed a $30 million firm order for five ATR 42-300 turboprop aircraft and took options on three more. The first three aircraft will be delivered in June and July.

Staff
Aircraft Owners and Pilots Association is pointing to the House Budget Committee's majority caucus report on the Clinton administration's fiscal 1999 funding proposal to support its objections to aviation tax increases. AOPA and others also have raised questions over the proposed Transportation Fund For America, which they described as "either a 'slush fund' for non- aviation projects or a new way to play an old game - using a trust fund 'surplus' to mask deficit spending elsewhere."

Staff
U.S. Industry Traffic Market Share (000) January 1998 RPMs Share (%) 1. United 9,276,407 20.11 2. American 8,506,095 18.44 3. Delta 7,498,230 16.25 4. Northwest 5,403,270 11.71 5. Continental 3,853,981 8.35 6. US Airways 2,925,146 6.34 7. Southwest 2,069,555 4.49

Staff
American and Continental oppose Delta's bid to avoid a DOT proceeding to allocate new U.S.-Japan frequencies that would be exercised this year, a proposal Delta made after concluding that all own-plane 1998 startup proposals can be awarded immediately with frequencies to spare.

Staff
Air Canada said 1997 was the best year in its history with record operating and net income. Net profits tripled to C$427 million (US$299 million) from C$149 million ($104 million) a year ago. Part of the gain, C$201 million, came from investments, including the sale of stock in Continental. Air Canada's Star Alliance membership contributed "somewhere north of C$100 million" ($70 million-plus) in revenue last year, said Chief Executive Lamar Durrett, adding that the figure should grow 50% in 1998.

Staff
New Regional Aircraft Deliveries, November 1997 Last 12 Months Carrier No. Type Engines Delivery Air Caledonie 1 AA ATR-42-300 PW121 - Air Georgian 1 Beech 1900D PT6A-67D - Air Littoral 1 Canadair RJ CF34-3B1 6 Air Tahiti 1 AA ATR 72-200A PW127E -

Staff
Negotiators from the U.S. and Uzbekistan signed an open-skies agreement in Washington last week. Soon to be adopted formally, the pact is a standard open-skies accord with added seventh-freedom all-cargo rights.

Staff
The Master Executive Council of the US Airways Air Line Pilots Association unit is asking management to apply to DOT to fly its own airplanes to Japan rather than code share with American or United. The MEC met Wednesday evening to discuss US Airways' Japan code-share applications because an international code share with a U.S. carrier violates the scope clause of the pilots' new contract (DAILY, Feb. 18).

Staff
Air Transport Association Cargo Traffic November 1997 Revenue Ton Miles (000) November November % 1997 1996 Change Domestic Freight 771,726 748,097 3.2 Mail 162,926 159,227 2.3 Total 934,652 907,324 3.0 International

Staff
United will launch newly authorized Chicago-Osaka service July 8 using 747- 400 aircraft. The daily nonstop, an early result of capacity expansion under the U.S.-Japan framework agreement, adds to previously announced Japan service upgrades, which include more than doubling Chicago-Tokyo service on April 5. United operates nonstop service between Osaka and San Francisco, Los Angeles and Honolulu.

Staff
Air Wisconsin rescued Mountain Air Express from Chapter 7 liquidation last Friday; the bankruptcy judge in Denver was about to slam the gavel on MAX. It will cost United Express Air Wis $1.5 million and additional payroll costs. The case, to be decided today, raises questions. Air Wis would acquire six Dornier 328 turboprops for a total of 10, but will those 32- seaters profitably serve the 19-seat markets in which incumbent United Express carrier Mesa is losing money?