Aviation Daily

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U.S. National Carriers Traffic, November, 11 Months 1997 November November % 1997 1996 Change AirTran Airlines Revenue Passenger Miles (000) 196,411 N/A ? Available Seat Miles (000) 355,766 N/A ? Load Factor (%) 55.2 Passengers 309,167 N/A ?

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U.S. Regional Airline Industry Passenger Traffic Activity - Third Quarter 1997 48 STATES/HAWAII/PUERTO RICO/VIRGIN ISLANDS Third Third Percent Qtr 1996 Qtr 1997 Change Revenue Passenger Miles 3,680,779,295 4,109,145,140 11.6 Available Seat Miles 6,863,325,525 7,082,804,679 3.2 Passengers Enplaned 15,807,789 17,428,006 10.2

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Members of Switzerland's national Alpine skiing team will no longer look like large chunks of cheese next year. Swissair will be their main sponsor, succeeding the Swiss cheese commercial union, which provides them with outfits simulating Emmenthal or Gruyere cheese. Swissair signed a four-year contract that begins in 1998.

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Washington Consulting Group's protest of FAA's National Airspace System Implementation Support Contract (NISC II) to Lockheed Martin (DAILY, Dec.

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Icelandair has begun selling tickets as low as $298 roundtrip for service from Boston, New York, Baltimore/Washington, Orlando and Fort Lauderdale to Europe. The fare is for travel between Jan. 7 and Feb. 28.

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Formal U.S.-Japan aviation talks ended in Tokyo yesterday amid signs that the two sides are on track to an agreement that might be concluded during the next round in Washington, expected to start Jan. 20. Informal contacts may continue today. The compromise involving diversion of FedEx slots at Tokyo Narita Airport appears to be "the only way out," a source familiar with the talks said, and most major international U.S. carriers are comfortable with the proposal. Negotiators are trying to iron out details on a temporary loan of unused FedEx slots to other U.S.

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A Kuwaiti conglomerate has become the first announced customer for an Airbus corporate jetliner. Mohamed Abdulmohsin Al Kharafi signed a contract for an A319CJ powered by IAE V2500 engines. The aircraft will seat as many as 30 passengers. Airbus said it has seven other commitments from customers in Europe, North America and Asia.

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Delta, Austrian Airlines, Sabena, and Swissair "wish to retain" their code- sharing authorizations and to incorporate by reference specifics on service to the markets as granted by DOT, Delta told DOT in a filing. The department on April 30 approved three applications for blanket statements of authorization that Delta had filed jointly with the three European airlines.

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DOT Inspector General Kenneth Mead is launching an investigation into whether FAA managers are siphoning funds from one program to finance another in a practice known as "assessment." According to Rep.

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The Port of Oakland, Calif., Board of Port Commissioners this week certified the environmental impact report on expansion of Oakland Airport and approved a development program that will allow the airport to accommodate about 13.8 million passengers and 1 million tons of cargo by 2000. In 1996, the airport handled 9.7 million passengers and 615,000 tons of cargo. Development program projects include a consolidated two-level terminal building, a two-level terminal roadway, 12 new aircraft gates, a 6,000-space parking garage and a new six-lane access highway.

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President Clinton signed into law legislation (H.R.2626) that provides relief to carriers from provisions in the Pilot Records Improvement Act (PRIA) (DAILY, Nov. 17). The legislation, which passed Congress last month, will allow carriers to hire and begin training of pilots while collecting the background information required under PRIA. This bill also provides further relief for on-demand carriers.

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A Japan Ministry of Transport (MOT) official speaking to The DAILY this week in Tokyo declined specific comment on the prospective FedEx Narita slot diversion compromise but said both sides are "working in a practical manner" to solve the access problem. The slot question and all others can be resolved, he said. One issue concerns the details of the "safety net," assurances the U.S. wants on further liberalization once the four-year pact, currently being negotiated, runs its course. "The safety net is a U.S. idea," he said.

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Mexicana has started nonstop service from Mexico City to Denver twice per week. The airline said the new service responds to a request from Denver city officials for nonstop service to Mexico City.

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New Regional Aircraft Deliveries, September 1997 Last 12 Months Carrier No. Type Engines Delivery AMR Eagle 1 AA ATR 72 PW124 2 Atlantic Coast 1 Canadair RJ200 CF34-3B1 2 Atlantic Southeast 1 Canadair RJ200 CF34-3B1 1 British World 1 BAe ATP PW126 -

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Japan Air System took delivery in Long Beach of three MD-90s. The carrier now has 14 MD-90s with two more on firm order. The aircraft seat 166 passengers and are powered by IAE V2500 engines. Boeing said the MD-90 has a 99% dispatch reliability record.

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United will invest $33 million to expand and consolidate its facilities at Boston Logan Airport. "In the past four years, our operation has grown from 21 daily departures to 38," Boston City Manager Sean Donohue said in an internal communique, "and we expect to grow further in the next several years." United Express service has increased from 10 to 30 flights, adding to the strain. United will begin work early in 1998 and aim for completion by mid- to late-1999.

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Largest Passenger Carrying U.S. Regional Airlines - Third Quarter 1997 Passengers % Of RPMs % Of Rank Airline Enplaned Total (000s) Total 1 Simmons Airlines 1,595,900 8.9 348,361 8.4 2 Continental Express 1,404,031 7.9 349,193 8.4 3 Comair 1,397,144 7.8 471,169 11.3 4 Mesa Airlines 1,210,583 6.8 286,998 6.9

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Southwest tells passengers they have too much carry-on baggage if other customers ask, "So where are you moving?" Southwest allows two carry-ons.

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U.S. Regional Carriers Traffic, November, 11 Months 1997 November November % 1997 1996 Change Air Wisconsin Revenue Passenger Miles (000) 42,833 39,199 9.3 Available Seat Miles (000) 78,172 73,067 7.0 Load Factor (%) 54.8 53.6 Passengers 136,666 128,779 6.1

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Atlantic Coast Airlines (ACA) applied yesterday at DOT for 36 slots at Chicago O'Hare Airport. The carrier, operating from Washington Dulles as United Express, wants to operate three daily roundtrips each between Chicago and Charleston, W.Va.; Duluth, Minn.; Fayetteville, Ark.; Montgomery Ala.; Shreveport, La., and Wilkes Barre/Scranton, Pa. ACA asked the department to consolidate its application with the Simmons' 60-slot O'Hare request for its American Eagle operations.

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Joint Resources Council members have been informed that a meeting scheduled tomorrow on the wide and local area augmentation systems was postponed abruptly until late January, reportedly by George Donohue, FAA associate administrator for research and acquisition. Since WAAS funding was tied to support from the FAA-industry JRC, the program's supporters now may find it difficult to meet a Feb. 15 congressional appropriations conference committee deadline for a "detailed funding profile and schedule" (DAILY, Oct. 9).

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America West has secured a five-year $100 million revolving credit facility, arranged by the Industrial Bank of Japan and syndicated to five additional banks.

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New planes, new routes and a new business class are among Western Pacific's plans as it seeks to emerge from Chapter 11 in the coming year, President Robert Peiser told The DAILY. Although it will concentrate on high- frequency service in existing markets, Westpac plans to add five to six airplanes, growing its fleet by 25%, and several as yet undisclosed cities to its routes. The carrier also is in discussions with several major airlines to establish frequent flyer links next year. Growth will depend on aircraft availability, Peiser said.

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FAA selected Anthony Palladino, an attorney, to head its Office of Dispute Resolution. Palladino has litigated cases involving the Buy American Act, the Davis-Bacon Act, the Equal Access to Justice Act and the Federal Acquisition Regulations.

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American and Aero California began reciprocal code sharing yesterday between the U.S. and Mexico. Aero California, headquartered in La Paz on the Baja California peninsula, initially will carry American's "AA" designator code on its service between Los Angeles and Calliacan, Durango, Hermosillo, La Paz and Torreon, and between Tucson and Hermosillo. With U.S. and Mexican governments' approval, code sharing will expand to additional Aero California services between the U.S. and Mexico. The code share will enable American to offer service to 26 destinations in Mexico.