Aviation Daily

Staff
Nashville, Tenn.-based Corporate Express Airlines will be the launch customer for the Jetstream 32EP program, designed for service from short fields and hot-and-high elevation airports with increased payload and range. Corporate Express recently took delivery of its first Jetstream 32EP, developed by British Aerospace Asset Management-Turboprops (BAe-AMT).

Staff
Air Liberte and TAT will offer 2,000 weekly regional flights in France, up from 1,200, following their commercial agreements with five French regional airlines, the French subsidiaries of British Airways said yesterday in Deauville. The companies are Air Toulouse, Flandre Air, Air Normandie, Air Littoral and Regional Airlines. The pacts with Air Toulouse and Air Normandie already are operational, and the others will start Oct. 27. Marc Rochet, chairman of Air Liberte and TAT, also announced that the companies will have a single code - IJ - starting Oct. 25.

Staff
Fairchild Dornier has boosted the cruise speed of its new 32-seat 328JET from 375 to 400 knots. The U.S./German manufacturer said the new speed has been confirmed in high-speed wind-tunnel tests. The new speed matches that of the proposed enhancement of the 50-seat Saab 2000 high-speed turboprop that the engine and airframe manufacturers say is possible. The 328JET is scheduled for rollout in December with first flight in January. The sticker price for the new airplane is pegged at $10.9 million - up from the original $10.15 million, or 7.4%.

Staff
Vanguard Airlines has signed a letter of intent to acquire its ninth and 10th 737-200s, on lease from MIMI Leasing Corp. They will be delivered in December after being equipped with hushkits.

Staff
CAE Electronics of Montreal has contracted to build an Embraer EMB-145 simulator for American Eagle. The unit will be delivered in December 1998. It is the fourth CAE simulator ordered by American Airlines in recent weeks as well as being the first device built for an Embraer product. American Eagle ordered 42 of the 50-passenger regional jet at the Paris Air Show in June plus 25 options, the first to be delivered in February. The carrier also placed an order in June for 25 70-seat Canadair Regional Jet Series 700 aircraft, plus 25 options.

Staff
Canadian Regional Airlines plans to add a third daily roundtrip Nov. 2 between Toronto and Raleigh/Durham.

Staff
Mesa Air Group's airlines stand to carry about 28% of passengers who will benefit, beginning Oct. 1, from reduced ticket taxes due to the special treatment afforded flights to and from certain regional airports. Earlier this week, DOT's Office of Airline Information (OAI) published a list of nearly 500 airports that OAI and the Internal Revenue Service have determined qualify for a ticket tax reduction to 7.5% and an exemption from the new segment fees (DAILY, Sept. 24).

Staff
The European Commission sees "clusters" of companies, encompassing the continent's entire aerospace industry or in specific sectors of it, as the way to compete with the U.S. aerospace giants. The commission dismissed the Airbus Industrie "partial integration scenario" as a long-term solution to the competitiveness problem (DAILY, Sept. 25), saying it "could run the risk of isolating a number of European companies and would not guarantee sufficient synergies, e.g.

Staff
U.S. Carriers Interest Expense Second Quarter 1997 % Of Total Interest Operating Expenses Alaska $ 5,731,000 1.76 America West 12,058,989 2.80 American 63,301,000 1.77 Continental 26,813,000 1.97

Staff
Peter Blute, chief executive and president of the Massachusetts Port Authority, will discuss modernization of Boston Logan Airport, the federal government's support of aviation programs and the need to provide adequate levels of funding for airport capital improvement projects on Aviation News Today, to be broadcast on Washington's NewsChannel 8, Sunday at 12:30 a.m. and at 1:30 p.m.

Staff
American signed a code-share agreement with French airlines Air Liberte and TAT for beyond-Paris service. Air Liberte is 67% owned by British Airways and TAT is 100% BA-owned, and BA is merging their operations. They are listed in the current joint TAT/Air Liberte timetable as serving 24 cities in France, several French island territories, Milan and three cities in Morocco. Both carriers are based at Paris Orly, and the code share will take effect as soon as government authorities approve it. The U.S.

Staff
DOT has tentatively decided to award Austin, Texas-based Austin Express a certificate. The carrier initially plans service from Austin to Beaumont/Port Arthur, Corpus Christi and Tyler, Texas, using four leased 19-seat Metro III aircraft (DAILY, Sept. 19). By the end of its first six months, the company wants to have added to its fleet two leased 30-seat Embraer Brasilias and launched service to other small- and medium-sized cities in the region.

Staff
TWA and Royal Jordanian will begin their code share on U.S.-Middle East routes Nov. 1, with seats available for sale tomorrow. The core route is New York Kennedy to Amsterdam, and beyond to Amman, which Royal Jordanian serves five times weekly. The new service marks TWA's re-entry into Amsterdam and its first service into Amman. The Jordanian carrier will feed passengers via TWA throughout its U.S. system, with initial code-share routes from JFK to Los Angeles and Detroit.

Staff
US Airways' Air Line Pilots Association unit will conduct informational picketing today at Pittsburgh Airport between 3 p.m. and 7 p.m. ALPA has been in negotiations with management this week as the airline approaches a Sept. 30 deadline to finalize its Airbus Industrie order.

Staff
Baltia has asked DOT to deny a dormancy waiver request by Delta for U.S.- Moscow service that is facing delays in gaining Russian approval. Delta wants a waiver of the 90-day dormancy provision for 9.25 combination frequencies. Baltia, preparing for startup, earlier urged DOT to deny Delta's request for temporary allocation of frequencies long reserved for Baltia's use (DAILY, Aug. 18); however, DOT granted Delta use, for one year, of 1.5 frequencies that will revert to Baltia if the carrier inaugurates service within six months (DAILY, Sept. 16).

Staff
American West will begin daily nonstop service today between Phoenix and Baltimore. Flights will depart Phoenix at 2:55 p.m. and arrive in Baltimore at 10:13 p.m., and leave Baltimore at 8:05 a.m. arriving in Phoenix at 9:53 a.m.

Staff
Continental will introduce twice-weekly nonstop service between Houston and Aruba on May 10, 1998. Flights will operate Sundays and Wednesdays from Houston and Sundays and Thursdays from Aruba. The schedule is designed to enable travelers to book a four-day stay in the Caribbean with departure in the beginning or middle of the week.

Staff
Eastwind Airlines is resisting the trend of major airlines by raising its commission to travel agents from 10% to 12% for all fare classes, providing a minimum guaranteed commission of $10.68 per booking. The airline receives about 30% of bookings through travel agents, said VP-Passenger Services Deborah McKeever. Western Pacific, Kiwi International Air Lines and Vanguard will continue to pay 10%.

Staff
Standard&Poor's raised the corporate credit and senior debt ratings of Delta to triple-B-minus from double-B-plus, resulting in an overall outlook of stable. About $5.6 billion in debt was affected. S&P said the ratings upgrade was based on strong earnings and cash flow and debt reduction.

Staff
Atlantic Coast Airlines said Thursday it had successfully completed placement of $111.6 million (aggregate principal amount) of enhanced equipment pass-through trust certificates (EETCs) under Rule 144A of the Securities Act of 1933. The net proceeds will be used to provide debt financing for leveraged-lease transactions for the first six of 12 new Canadair Regional Jets. A portion of the proceeds also will be used to finance leveraged leases for four used Jetstream 41 turboprops and the purchase of three used and one new J41.

Staff
U.S. and Russian companies working on the Tu-144LL supersonic flying laboratory have agreed to reduce the number of test flight to 18 from 32, according to sources close to this week's Gore-Chernomyrdin Commission meetings in Moscow. The first eight flights have been completed, and the aircraft is currently in a stand-down for engine work and other modifications involving aircraft and instrument experiments. The last two flights are being reserved in case it is determined that earlier tests need to be repeated.

Staff
Southwest is offering Internet users discount fares on nonstop flights to and from Houston. Fares as low as $30 one way based on roundtrip purchase will be available through Sunday for travel from Oct. 6 through Dec. 18, with Nov. 25-26 and Nov. 29-30 blackouts. Travelers can access Southwest's web page at http://www.iflyswa.com and click on "Internet Specials." Rapid Rewards members who purchase discount tickets through the Internet will receive double flight credits through Dec. 31.

Staff
Northwest's June announcement for acquiring Airbus aircraft specified 50 firm and approximately 100 options. Wednesday's order virtually mirrored the earlier statement and did not double the June order, as reported in The DAILY Sept. 25.

FAA

Staff
FAA has proposed to require replacement of the anti-skid control unit of the Dornier 328-100 aircraft braking system with an improved unit. The move is intended to prevent disconnect of the anti-skid control unit and reversion to manual braking during operation on runways contaminated by standing water, slush or wet snow.

Staff
Unhappy Pan Am shareholders are expected to propose today to oust Chief Executive Martin Shugrue because of the carrier's poor financial performance. The shareholders' meeting, in Miami, is Pan Am's first.