Aviation Daily

Staff
Boeing has chosen United to provide maintenance service for 757s used by the Air Force to transport the vice president, cabinet members, members of Congress and foreign dignitaries. The Air Force will receive the first two of four new 757s (C-32As) early next year, replacing aging 707s. The aircraft are based at Andrews Air Force Base. United, with nearly 100 757s, has more than eight years' operational experience with the twinjets. Its maintenance technicians will be on site at Andrews to provide logistics and technical support.

Staff
Malaysia Airlines has become the first Asian customer for a Boeing Business Jet (BBJ). The order is one of 29 total announced orders for the BBJ. A green BBJ costs $33.8 million and a fully equipped aircraft at delivery $40 million. Rollout of the first BBJ is mid-1998.

Staff
Northwest, complying with a request by the Office of International Aviation, formally asked for and received a new docket number for its renewal of China authority to undo confusion when it appeared separate segments were consolidated into one filing. Northwest is renewing Segment 1 of an Experimental Certificate for Route 378, filed in Docket OST-95-969 on Nov. 21. That filing was assigned its own docket, OST-97-3177.

Staff
Asiana leased two Pratt-powered 777-200s from International Lease Finance Corp. for delivery in October 1999 and May 2000. The carrier currently leases four 737-400s, six 767-300s and has contracted for a 747-400 freighter to be delivered in April 1999 from ILFC.

Staff
A recently released report from the President's Commission On Critical Infrastructure Protection casts doubt on the DOT policy of using the Global Positioning System (GPS) as the sole source of navigation. While vulnerabilities of the information and communications infrastructure affect every aspect of the transportation industry, the "most significant projected vulnerabilities are those associated with the modernization of the National Airspace System (NAS) and the plan to adopt the GPS as the sole basis for radionavigation in the U.S. by 2010," the report says.

Staff
U.S. District Court for the Southern District of Florida dismissed a suit by Laker Airways against British Airways that charged the carrier with violations of federal antitrust law and Florida statutes. Laker said BA controlled almost half of the London Gatwick departure slots that were available at viable times during the 1997 summer vacation season, and that BA unfairly used its influence with the slot allocation authority effectively to bar competition by Laker between London and Miami.

Staff
Pilots at Skyway Airlines, a subsidiary of Midwest Express, voted by 96% to ask its leadership to strike if no tentative contract agreement is reached by the end of the 30-day cooling-off period Dec. 20. Skyway pilots, represented by the Air Line Pilots Association, have been trying to reach an agreement on their first contract for nearly two years. The National Mediation Board released Skyway and its 125 pilots into a cooling-off period after 11 months of negotiations under NMB.

Staff
DOT granted requests by Polar Air Cargo and Air Micronesia to delay until June 30, 1998, startup of U.S.-Thailand all-cargo frequencies due to economic conditions in Thailand. Polar, which operates one of its two weekly frequencies, told DOT its market survey finds that "a startup during the first or second quarter of 1998 will be more economically feasible." Air Micronesia sought a third extension to begin operation of five weekly frequencies allocated for initial startup by April 1, 1997.

Staff
Air Transport Association members posted a 2.8% increase in October traffic on 3.2% more capacity, which lowered the load factor 0.3 percentage points to 69.7%. Domestic U.S. traffic grew 1.9% on 2.4% more capacity, while international traffic increased 5% on 5.5% more capacity.

Staff
British Airways will increase its U.K.-U.S. capacity by 11% this winter, with more frequencies and larger aircraft on routes where demand warrants. Chief Executive Bob Ayling noted that the U.S. continues to be the most important of all world markets.

Staff
A group of America West flight attendants, represented by the Association of Flight Attendants, are angry over a tentative contract agreement up for ratification vote this month. In November when AFA took the agreement to a road show in Tempe, Ariz., flight attendants expressed disappointment over the proposed five-year contract and support for voting it down, according to published reports. Many wore stickers that said, "A five-year contract?

Staff
DOT orally approved three separate exemption requests by Japanese carriers for service to the U.S. Two of the applications received a supporting answer and none was opposed, although two of them - for service operated by Japan Airlines - are granted under the terms of a 1989 Memorandum of Understanding that has been the focus of other disputes between U.S. and Japanese parties.

Staff
American Trans Air agreed to a consent order assessing a $25,000 fine for a series of advertisements that violated regulations barring unfair and deceptive practices. Newspaper and television ads in August 1996 promoted one-way, off-peak fares between Milwaukee and various points. DOT said a check of the Sabre computer reservations system on Aug. 15 showed flights from Milwaukee to Phoenix, Los Angeles and San Diego covered by the ad did not have seats available for sale, and the carrier never filed the sale fare for the Milwaukee-Phoenix flights in the CRS.

Staff
Hughes Aircraft UK Ltd.'s training division has won an $8 million contract to supply advanced air traffic control training systems to Denmark's civil aviation administration. Hughes's "FIRSTplus" integrated training system will be installed at the CAA's academy at Cophenhagen Airport, which trains civil and military controllers. The equipment includes 34 radar simulator work stations, five aerodrome trainers and one advanced ATC visual tower simulator.

Staff
DOT today adopts two final rules on computer reservations systems concerning online/interline comparisons and how to govern the use of elapsed time and single-plane service. The rules, published in today's Federal Register, are separate from the larger review of CRS rules, which has a comment period ending Dec. 9 and answers due Jan. 23. The action does not adopt another rule DOT proposed - requiring that any display "be based on criteria rationally related to consumer preferences." That proposal is being considered in the overall review.

Staff
Northwest asked DOT for quick approval of its application for code-share operations with KLM on Northwest-operated Philadelphia-Amsterdam flights so KLM can start marketing the planned daily nonstop service. Northwest wants to begin the flights May 1, using DC-10 aircraft.

Staff
The City of Dusseldorf has requested a modification of the 323 million Deutschmark (US$194 million) contract under which a consortium of Hochtief and Irish airport operator Aer Rianta is purchasing 50% of Dusseldorf Airport from the German state of North Rhine Westphalia. The city, which holds the other 50%, is concerned that the new statutes of the airport will reduce its influence over the airport's management. On Thursday, Hochtief announced that it would refuse to change the acquisition contract, even though approval by the municipal authorities is indispensable.

Staff
Continental's flight attendants are represented by the International Association of Machinists. The union was identified incorrectly as the Teamsters Dec. 1 in The DAILY.

Staff
Air New Zealand has lowered its standard travel agent commissions to 8% from 10%, effective Jan. 1. The rate applies only to tickets purchased in the U.S. and Canada for travel on ANZ to international destinations.

Staff
Frontier Airlines and Wexford Management yesterday completed a previously announced financing agreement that will lend the airline up to $15 million. Yesterday's $5 million infusion will be used for general working capital, with the balance provided when further agreements are concluded. "We now have the financial ability to acquire a number of additional aircraft with the related benefits of increasing our service and further decreasing our costs," said Chief Executive Sam Addoms.

Staff
Pilots at Midwest Express Airlines have voted for representation by the Air Line Pilots Association, the airline said yesterday. The National Mediation Board conducted the balloting. Of 239 eligible voters, 121 voted for union representation. Twenty-four voted for the Teamsters and 97 voted for ALPA. Midwest Express Chairman and Chief Executive Timothy Hoeksema was disappointed by the outcome. "It is my belief - one shared by many employees - that union representation is incompatible with the team atmosphere at Midwest Express.

Staff
Denver bankruptcy court judge today is due to decide Western Pacific's fate in a ruling that could alter travel in the Rocky Mountain region. Under competing proposals, rival Frontier could take over Westpac or an outside funding source could bankroll Westpac as a separate entity.

Staff
Using new slots granted by DOT, Frontier Airlines will operate its first scheduled flight to New York LaGuardia today from Denver International Airport's central terminal. Initially, Frontier will operate two daily nonstop flights with fares starting at $151 each way. It will add a third daily roundtrip in early 1998. The 737-300 will land at LaGuardia displaying 21-foot high-photo decals of western wildlife on its tail. DOT recently awarded slots to Frontier at LaGuardia to spark competition in a market that has been dominated by United.

Staff
Bombardier reported third quarter revenues of C$2.1 billion, up from $2 billion. Net income rose to $98.3 million from $91.8 million. For nine months, revenues were up to $5.7 billion from $5.5 billion and net income to $269.6 million from $258.9 million.