Aviation Daily

Staff
American is stepping up pressure for a proceeding on renewal of Northwest- KLM antitrust immunity, criticizing Northwest for failing to take into account its proposed partnership with Continental and making a faulty comparison between commuter cases and this one.

Staff
Summary of U.S. Major Carriers Domestic Traffic September 1997 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles % Carriers (000) Change (Miles) (000) Change Alaska 930 (1.37) 826 768,858 (0.31) America West 1,312 (8.86) 880 1,155,125 (4.83)

Staff
Despite a challenge by the Transport Workers Union, the Association of Flight Attendants is gaining ground in its campaign to organize Delta flight attendants. Phones at the new AFA Atlanta headquarters have been "ringing off the hook" with flight attendants supporting the union since the organizing campaign was announced last week, AFA General Counsel David Borer said.

Staff
The Directors General of Eurocontrol and the Romania Civil Aviation Authority signed a formal agreement last week in Maastricht, The Netherlands, to continue the upgrade of air traffic control facilities in the Eastern European country.

Staff
Polar Air Cargo asked DOT for a seventh exemption from the deadline to start scheduled U.S.-Philippines cargo service. While the carrier hopes to begin service March 29 to coincide with the start of its summer schedule, it requested an additional 60-day extension, until May 5, due to delays in reaching agreement with the Philippine Air Transport Office. (Docket OST- 97-2265)

Staff
Taipei and Seoul have agreed in principle to restore direct air links, cut when Seoul switched diplomatic recognition to Beijing in 1992, according to an aide to President-elect Kim Dae-jung. Legislator Sohn Sai-il said he and another Kim aide, Sul Hoon, reached the agreement last week during a visit to Taipei. During their stay in Taipei, the two officials met with Taiwan President Lee Teng-hui and a number of other high ranking government officials.

Staff
FAA's briefing on its Local Area Augmentation System development method and acquisition program will take place April 3. The DAILY Feb. 19 gave an incorrect date.

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%.