Aviation Daily

Staff
U.S. Major Carriers Traffic August, 8 Months 1997 (000) August August % 1997 1996 Change Alaska Revenue Passenger Miles 1,096,000 1,087,000 0.8 Available Seat Miles 1,467,000 1,437,000 2.1 Load Factor (%) 74.7 75.6 America West

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Jet Support Services appointed Michael Scarfe technical manager- Europe; Dennis Schuller, manager-technical services, Midwest; Eric DiNicola, technical manager associate, and Beverly Atton, manager-accounts payable.

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Delta named Arty Jochmann station manager for Long Island MacArthur Airport.

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Associated Global Systems named Nicholas Sumner Memphis district manager.

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France and Germany are expected to allow Airbus Industrie to transition into a joint stock company by Jan. 1, 1999. At a Franco-German summit Friday in Weimar, the leaders of both nations reportedly agreed to push the four-nation consortium toward greater autonomy and a separate corporate- type status. Neither the French and German governments nor Airbus North America would confirm that a deal had been finalized, however.

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Canadian Airlines' traffic fell 3.9% in August on 2.2% less capacity, which resulted in a load factor of 81.2%, down 1.4 percentage points. Domestic traffic dropped 6.4%. on 4.4% less capacity, reducing the load factor 1.6 points to 80%. The domestic traffic shortfall came from the airline's decision to switch several 737s from Eastern Shuttle service to transborder routes. Eastern Shuttle is served mainly by Canadian Regional's Fokker 28s. International and charter traffic declined 3.9% on 1.3% less capacity, reducing the load factor 2.2 points to 84%.

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German transport and environment ministers Matthias Wissmann and Angela Merkel unveiled a set of proposals aimed at limiting air and noise pollution caused by air transport. Introducing a document titled Concept for Air Transport and Environment, a German transport official said, "The fact that it is called a concept means that it does not contain legal measures, but it lays out our strategy." The 21 measures envisioned by Germany include a fuel tax and further differentiation of landing charges according to noise and gaseous emissions.

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DOT this week tentatively decided to select Mesa to provide essential air service at the Upstate New York communities of Massena, Ogdensburg and Watertown for a two-year term. Mesa would be operating as USAir Express. Mesa had been serving the points since 1994, but because of legislatively mandates, Mesa has operated a reduced service pattern - 10 roundtrips per week rather than 18 -in the markets for the past two years.

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The text of the National Civil Aviation Review Commission's preliminary report on aviation financing, submitted to DOT for assessment and comment (DAILY, Sept. 11), is available at Aviation DAILY's World Wide Web site, http://www.awgnews.com.

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...Embraer Chief Executive Mauricio Botelho conceded that the company is in discussions with AI(R) concerning the 70-seater and has been for some time, "but just superficially," he told The DAILY Wednesday. Reiterating remarks made at the Paris Air Show, he questioned whether there is room for more than two manufacturers. "Does it make sense? We are going on with our studies but do not see a market for three or four guys. And it is too close to the big guys." He noted Boeing comments this week that it may offer a 70-passenger MD-95. "See?"

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House Transportation aviation subcommittee Chairman John Duncan (R-Tenn.) is backing a bill, the Foreign Air Carrier Family Support Act, that would require foreign carriers operating to U.S. points to file family assistance plans. Since April, all U.S. airlines are mandated to outline how they will handle family notification and survivor assistance in an aviation disaster. The bill has been proposed by Del. Robert Underwood (D-Guam). Korean Air Flight 801 crashed on Guam this summer, prompting Underwood's action.

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U.S. and Romanian negotiators made "very good progress" toward signing an open-skies pact that would be phased in "along the lines of the U.S.-Czech agreement," a U.S. government official said yesterday. The parties agreed to meet again in Bucharest Dec. 4-5.

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American intends to start Los Angeles-Paris flights March 2, becoming the first U.S. carrier in the market since September 1994. Air France serves the route currently. American will operate the nonstop service, subject to French government approval, with 767-300s in three-class configuration. American currently serves Paris from Boston, New York Kennedy, Dallas/Fort Worth, Chicago and Miami.

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Lufthansa is offering Internet booking to credit-card customers at its World Wide Web site, http://www. lufthansa.com. Customers can obtain a user registration by clicking the "New User" access button on the InfoFlyway Homepage. The customer is asked to enter personal details, such as name, e-mail address, a user name and password. With registration completed, the online-booking service is available at any time.

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EasyJet ordered 12 737-300 aircraft for delivery in 1998 and 1999, Boeing said. The low-cost U.K. carrier, making its first direct purchase from Boeing, will use the aircraft to expand service from London to continental Europe.

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Millon Air defended its claim for all-cargo exemption to Colombia, calling attention to its 12 years of successful operations there before the crash of one of its 707s in Ecuador brought operations to a halt. The carrier still is seeking recertification of fitness from DOT. Millon is recapitalizing and restructuring management, including the effective removal of Juan Millon from day-to-day oversight of the carrier (DAILY, Sept.3).

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U.S. Carriers Rental Expense Second Quarter 1997 % Of Total Major Carriers Rental Operating Expenses Alaska $ 43,563,000 13.37 America West 75,241,259 17.49 American 265,267,000 7.40 Continental 164,187,000 12.05

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Daimler-Benz Aerospace Airbus (DA-Airbus) and Sogerma Maintenance Group have agreed to convert at least 10 A300-B4 aircraft into freighters with associated maintenance checks. The first aircraft is undergoing conversion for delivery in mid-February. DA Airbus said the agreement increases its conversion capacity under a supplemental type certificate to 18 aircraft a year, including 12 conversions at its Dresden facility. The possibility of opening a second production line in Sogerma facilities is under study.

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DOT tentatively selected Northwest and United to serve Johannesburg and Cape Town, South Africa. The show-cause order dismisses the application by Continental for service with Air France via Paris and denies the application by Delta for service with Swissair via Zurich. Each of the four applicants proposed service via an intermediate European point with a third-country carrier. Under the U.S.-South Africa air transport agreement, the U.S. may designate two U.S. carriers to serve South Africa under third-country code-share arrangements, effective Nov. 1.

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Days before bilateral talks resume in Tokyo, efforts to shape policy continue on both sides of the issue. Sen. Jesse Helms (R.-N.C.), chairman of the Foreign Relations Committee, wrote another letter to the administration supporting open skies and was joined this time by Sen. Ted Stevens (R-Alaska), chairman of the Appropriations Committee. This brings to three the number of key Senate committee chairmen insisting on open skies, including a similar communication from Sen. William Roth (R.-Del.), Finance Committee chairman.

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Rohr said its fiscal year 1997 results were affected by a loss of $84.5 million from its participation in the McDonnell Douglas MD-90 program. The company contracted in 1990 to produce nacelles for the MD-90, agreeing to recover its preproduction and "higher-than-average" production costs associated with early contract shipments over a specified number of deliveries. "In light of the wide market acceptance of the MD-80 series, which was the predecessor aircraft, the company believed sufficient MD-90 aircraft would be sold to allow it to recover its costs," Rohr said.

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Austin Express, a new regional being formed by the management of the former Conquest Airlines, expects to be up and running shortly after mid-October, according to President Jim Echols. The carrier, which is looking for a minimum of $3 million in either debt or equity financing, will begin with one Fairchild Metro, building to five by yearend, plus two Brasilias after the first of the year. Initial service will be from Austin to Beaumont and Tyler, service later to other Texas points. The Conquest certificate was bought out and management was fired (DAILY, Aug.

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Condor and NUR, the second-largest German tour operator, are planning to merge Nov. 1, the two groups said yesterday in Frankfurt. Each company will hold 50% of the merged company, to be called C and N Condor Neckermann Touristik. C and N expects a joint turnover of 7 billion Deutschmarks ($3.95 billion) in 1997. TUI, German market leader and largest European tour operator, had sales of DM7.7 billion ($4.3 billion) in the fiscal year ended Oct. 31, 1996.

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Launch customer for the new 37-passenger Embraer EMB-135 regional jet will be announced by the end of the year, according to Mauricio Botelho, the Brazilian manufacturer's president and chief executive (DAILY, Sept. 17). That customer is expected to be Continental Express - launch customer for the 50- passenger EMB-145 - although he would not confirm the fact to The DAILY. "We are still fighting [with COEx]," he said, "and we are talking with several airlines." One knowledgeable source said there may be dual launch customers.

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Half of the roughly 800 747 passenger aircraft in service worldwide fly between only 12 airports, Airbus Industrie of North America chief Jack Schofield told the Wings Club in New York. Making the case for a larger aircraft - such as Airbus's prospective A3XX - Schofield said 15 major city-pairs currently consume the capacity of 130 747s and will need 250 A3XX-size aircraft by 2016, assuming 5.2% annual traffic growth and constant load factors. Despite concentration of airlines, airports and routes, Boeing has sold 1,260 747s.