Aviation Daily

Staff
American Airlines Cargo said it flew 505.6 million cargo ton miles in the third quarter, surpassing the previous record of 504.2 million CTMs in the third quarter 1994. Despite increased passenger loads and a slight drop in capacity, cargo revenue was up 2.6% year over year, said AA Cargo President Dave Brooks. He credited strong traffic in Pacific, Caribbean and Latin American markets.

Staff
U.S. Regional Carriers Traffic September, 9 Months 1997 September September % 1997 1996 Change Air Wisconsin Revenue Passenger Miles (000) 50,117 44,167 13.5 Available Seat Miles (000) 78,354 74,986 4.5 Load Factor (%) 64.0 58.9 Passengers 154,340 140,771 9.6

Staff
Continental Express will have the industry's first all-jet regional fleet within five years, Continental Chief Executive Gordon Bethune said yesterday. Continental has a firm commitment to lease 50 Embraer aircraft and leasing rates are "locked in" for up to 200 more, Bethune told securities analysts in New York City. The plans grew out of Continental's original Embraer deal in September 1996 - an order for 25 EMB-145 regional jets valued at $375 million and options for 175 more over the next 12 years (DAILY, Sept. 4, 1996).

Staff
Bavarian regional carrier Augsburg Airways is expanding its TeamLufthansa services within Germany, has acquired new aircraft and will open a base at Hamburg Airport in January. The airline has selected the de Havilland Dash 8-Q200 and -Q300 aircraft and is seeking more Dash 8-qualified flight crew and maintenance staff. It expects to add about 90 jobs to its work force of 229 as it increases cooperation with Lufthansa. It will serve 15 domestic and two European routes this winter.

Staff
FAA plans to fine Reuters America $100,000 for shipping undeclared hazardous materials, citing the New York company for "knowingly offering hazardous materials for transportation by air when the materials were not properly classed, described, packaged, marked and labeled." When a FedEx employee at the carrier's Indianapolis sort center found a fiberboard box that was leaking, FAA determined that the outer box contained three inner boxes, each containing Fuji color bleach replenisher, which is classified as corrosive liquid.

Staff
United has urged DOT to reject a bid by American and Canadian Airlines International to code-share beyond the U.S. to South America and the Caribbean. Its own Canadian partner, Air Canada, is barred from a similar agreement by the Canadian government, United said. "Whatever may be the motivation for Canada's protectionist attitude toward CAI, the U.S.

Staff
Aviall reported net earnings of $7 million in the third quarter, compared with a loss of $2.4 million during the same quarter last year. Sales for the quarter rose 9.9% to $100.3 million, which Aviall attributed to growth in its airline and general aviation markets. Eric Anderson, president, predicted continue improvement in results.

Staff
Europe's duty-free sales industry is sharpening its attacks on European Union policymakers in its attempt to avoid the end of such sales for intra- EU travelers next June.

Staff
Transbrasil told DOT that it and TWA "have agreed not to pursue a code- share alliance" and asked that its applications for exemption authority be dismissed. (Dockets OST-96-1591, 1658)

Staff
FAA Associate Administrator Guy Gardner announced the appointment of Tom Kraft and Robert Eastin to the agency's national resource specialist team, which provides experts to advise industry, government agencies and international aviation authorities. Kraft, who worked for Boeing, will be responsible for aeronautical communications, and Eastin, who worked for McDonnell Douglas, will advise on fracture mechanics, fatigue and damage tolerance.

Staff
FedEx may have to purchase seven additional MD-11 aircraft for delivery beginning no later than 2000 under an option agreement, the carrier told the Securities and Exchange Commission. The company is committed to 12 Airbus A300s, four A310s, one DC-10, seven MD-11s and 50 Ayers ALM 200s to be delivered through 2002. Agreements with American and United require FedEx to acquire 53 DC-10s through 2001 and the carriers may exercise options requiring FedEx to buy up to 29 more.

Staff
Internet bookings pose a new threat to airlines trying to control distribution costs, America West said in its petition for rules barring abusive practices (DAILY, Oct. 15, 16). "Virtually all" Internet booking sites merely provide a gateway to established CRS systems - for example, Travelocity is linked to AMR Corp.'s Sabre. Instead of reducing CRS use as predicted, this magnifies abusive practices, the carrier said. It believes many consumers make reservations for the same trip on multiple sites, running up transaction charges for carriers.

Staff
Kellstrom Industries named John Gleason president of subsidiary KELLCAD and promoted Michael Wallace to chief financial officer.

Staff
Swiss regional carrier Air Engiadina is adding a new service to Vienna from London City Airport for its winter schedule, which begins Oct. 27. The three-times-weekly flight via Berne to Vienna will be offered at London City on Mondays, Thursdays and Fridays.

Staff
Reno Air Lines promoted Annette Murphy to senior VP-customer services.

Staff
American and Asiana are forming a code-share and marketing alliance that both airlines intend to implement within 30 days, pending government approval. Under the agreement, American will place its code on all Asiana flights between the U.S. and Seoul, effective Nov. 20. The two airlines, which signaled their intention to bond earlier this month (DAILY, Oct. 8), will integrate frequent flyer programs as well. Asiana serves Los Angeles, New York, San Francisco, Seattle and Honolulu. The link is American's sixth in the Asia/Pacific region.

Staff
Finnair is offering new flights from regional points in Finland to Russia and from the Finnish capital to Madrid as part of its winter schedule, beginning Oct. 26. It will operate new Helsinki-Madrid flights via Barcelona on Thursdays and Sundays, and return on Fridays and Mondays. Flights from Lappenranta, in eastern Finland, to St. Petersburg will be offered daily during the week with a Saab 340. Flights from Lappenranta will connect with Helsinki, while flights from St. Petersburg will head for Lappenranta.

Staff
Creation of general aviation security areas would make it easier to meet FAA's goal of protecting air carrier operations, according to Andrew Cebula, VP of the National Air Transportation Association. Speaking at a public meeting on FAA proposals to change security rules for airports and air carriers, Cebula said creating GA security areas would help airport operators, FAA security inspectors and aviation businesses "understand the intent of the FAA rule" and focus GA resources on preventing unauthorized access to airline areas.

Staff
Qantas will code share with Emirates on three weekly flights from Melbourne to Dubai. In an unrelated move, Moody's Investors Service raised the Qantas long-term debt rating one notch to Baa1, affecting $450 million of debt securities. Moody's said the action reflects the carrier's success in reducing costs and improving its debt picture.

Staff
Recent decisions by the Dutch transport ministry to reduce night-time noise levels at Amsterdam Schiphol Airport will reduce KLM operations by as many as 40 flights a day and substantially lower operating income, the carrier said. Complying with the new rules, announced earlier this month, will cost the Dutch carrier between NLG687 million (US$530 million) and NLG1.2 billion ($612 million) in lost revenue, KLM said. The carrier estimates it will have to eliminate between 20 and 40 European flights each day. Northwest, KLM's U.S.

Staff
U.S. Major Carriers Traffic Market Share (000) September 1997 RPMs Share (%) 1. United 10,377,124 22.5 2. American 8,445,755 18.3 3. Delta 7,900,712 17.2 4. Northwest 6,053,646 13.1 5. Continental 3,834,932 8.3 6. US Airways 3,164,226 6.9 7. Southwest 2,307,094 5.0

Staff
Dassault Falcon Jet appointed Roy Pickens general manager at Falcon Jet Little Rock, promoted James Hurley to regional sales manager for seven states in the Eastern Region and named Larry Burns field service representative-northeastern U.S. and John Taylor field service representative-eastern Midwest.

Staff
TAP Air Portugal posted a 6.6% rise in August traffic. TAP flew 469,000 passengers and a freight volume of 18 million ton kilometers. For the first eight months of 1997, its traffic was up 11.7% and freight volume 14%.

FAA

Staff
- In Federal Register dated Oct. 10...Issued an airworthiness directive on several types of Teledyne Continental Motors reciprocating engines concerning side loading of the pistons. - In FR dated Oct. 14...Proposed to supersede an AD on Airbus A310 aircraft concerning the interior control handle of emergency exits...Proposed to revise an AD on certain British Aerospace 4101 aircraft concerning the thickness of the intercostal of the third crew member seat.

Staff
Passenger fatalities caused by civil aviation accidents in the former Soviet Union dropped by two-thirds in the first nine months of this year, compared with the same period in 1996, according to the Interstate Aviation Committee (MAK). From January through September, 76 people died in civil air crashes in the Commonwealth of Independent States, down from 224. The CIS reported 10 crashes this year, down from 12. Of the 10, nine occurred in Russia.