Aviation Daily

Staff
Prestige Airways asked DOT to register Prestige Airways Inc. as its new corporate name and reissue under its new name the certificates it received under its former name, NavCom Aviation II. The company registered Prestige Airways as a trade name in 1995. (Docket OST-97-3004)

Staff
Irish discount carrier Ryanair, stepping up competition with Aer Lingus and Sabena, plans to add a third daily flight Nov. 3 from Brussels South Charleroi Airport to Dublin. Ryanair, which began the service in May with two daily flights, wants to lure business travelers away from Sabena and Aer Lingus at Brussels Airport International.

Staff
Spencer, Iowa-based United Express affiliate Great Lakes Aviation posted a 4.4-percentage-point increase in its passenger load factor to 48.6% last month, as revenue passenger miles dropped 34.7% to 16.2 million and capacity dropped 40.6% to 33.5 million available seat miles. The carrier pointed out that September traffic figures reflect the elimination of Midway Connection flying in the Southeast and termination of service in Arizona and Sonora, Mexico. Sept. 1997 Sept. 1996 9 Mths 1997 9 Mths 1996

Staff
Domestic air cargo grew 1% in August but international air cargo increased 8.7%, Air Transport Association reported. Overall air cargo growth was 4.3% for the month and 10.1% for the first eight months of 1997. ATA President Carol Hallett said the slowdown in August was "very likely due to industry labor disputes. The industry hopes that growth will return back to the double-digit figures it had been experiencing in previous months."

Staff
Traffic, as measured by revenue passenger miles, increased 12.5% on average for 15 of the nation's largest regional airlines during September. That compared to an increase in capacity, as measured by available seat miles, of 4.3%. Northwest Airlink Mesaba was in front with a 94.4% jump in traffic versus a 77.5% increase in capacity. It continues to take delivery of new Avro RJ85 quadjets and Saab 340B turboprops, but it also counts the Minneapolis traffic of Airlink carrier Express Airlines I, which now operates only at Northwest's Memphis hub.

Staff
U.S. Regional Airline Industry Passenger Traffic Activity - Six Months 1997 Six Months Six Months Percent 1997 1996 Change 48 STATES/HAWAII/PUERTO RICO/VIRGIN ISLANDS Revenue Passenger Miles 7,158,959,239 6,947,333,132 3.0 Available Seat Miles 13,337,682,364 12,995,998,096 2.6 Passengers Enplaned 31,006,525 30,242,248 2.5

Staff
Cargolux selected Rolls-Royce RB211-524 G/H-T turbofan engines for the five firm and two option 747-400s it ordered this month. It said the order has a potential value of $255 million. Deliveries begin in October 1998.

Staff
International corporate charter broker Air London said sales of executive charters jumped 50% to #1.5 million (US$2.39 million) in September, the highest monthly total in the company's 30-year history. Chairman Tony Mack said, "Turnover for executive flying during the last quarter, which included the traditionally quieter months of July and August, saw tremendous growth over previous years.

Staff
Following this summer's House Transportation aviation subcommittee delegation visit to Europe, 25 members of the House wrote to European Union Competition Commissioner Karel Van Miert, urging him to show "flexibility" on the proposed American-British Airways alliance. The letter, written last week and paralleled by similar letters to U.S. and U.K. authorities, said the alliance is "not anti-competitive. [It] is the tool that the U.S., the U.K. and the European Union can use to increase competition...by opening the skies. The U.S.-U.K.

Staff
Continental Airlines and its Express pilots have reached a tentative agreement on flow-through hiring practices that will move about 165 Express pilots into higher-paying mainline positions within a year, according to the Independent Association of Continental Pilots. Continental said the agreement calls for the airline to hire one Express pilot to fly the company's mainline jets for every two pilots hired from outside.

Staff
..MAX gained substantially more independence from Westpac, which owns 57% of the carrier, as a result of the bankruptcy court hearing. Westpac will pay a flat $200,000 per week for 14 daily MAX shuttle flights between Denver and Colorado Springs and MAX will collect the tickets and deal directly with the Clearing House on its other code-share routes. In addition, it is free to code-share with other carriers - initially Frontier and TWA.

Staff
SkyWest Airlines posted a 4.2% increase in traffic and a 5.5% increase in capacity during September, reducing its load factor 0.6 percentage points. Revenue passenger miles totaled 59.5 million, compared with 57.1 million a year earlier, while capacity rose to 123.5 million available seat miles from 117.1 million. For the first nine months, RPMs rose 5.8% and ASMs 8.9%, resulting in a 1.4-point drop in the load factor.

Staff
Carnival Air Lines flew 95.4 million revenue passenger miles in September, down from 110.9 million in September 1996. Capacity also dropped, from 196.2 million available seat miles in 1996 to 171.4 million.

Staff
Lufthansa has exercised options for two 747-400s valued at $330 million, Boeing said this week.

Staff
BMW Rolls-Royce said the BR715 engine, which will power the Boeing MD-95 100-seater twinjet, successfully completed its 150-hour endurance testing. International certification is scheduled in September 1998. First flight is scheduled in the second quarter 1998 with entry into service in mid- 1999.

Staff
Code shares and alliances are producing "pleasantly surprising" benefits for Delta, but their development remains in its early stages, according to Scott Yohe, senior VP-government affairs. "We are in an embryonic stage when it comes to alliances," he told The DAILY, adding the industry still is learning why they are necessary and how best to exploit them.

Staff
Cathay Pacific Airways has selected Lucent Technologies to provide the communications infrastructure for its new headquarters at Hong Kong Chek Lap Kok Airport. The contract will be serviced by Hong Kong Telecom, Lucent's value-added reseller.

Staff
Regional-jet service between Phoenix and Aspen will become turboprop service this ski season. Mesa Air Group, operating as America West Express, had planned to launch the jet service Dec. 17 with one of its new 50-seat Canadair RJs, but determined the aircraft would not meet second- segment-climb restrictions with full payload at the mountain airport. Mesa instead will serve the 491-mile route with a 37-seat de Havilland Dash 8- 200. The carrier will offer three daily flights to Aspen and two returns to Phoenix with a block time of one hour, 45 minutes.

DOT

Staff
DOT has called for proposals from carriers interested in providing Essential Air Service at Fergus Falls, Minn. (Docket OST-97-3018 (47458))

Staff
British Airways and Finnair are considering a long-term, "comprehensive" relationship to cover marketing, network planning and customer services. A key objective is increasing their ability to compete against other airline groupings such as the Star Alliance of United, Lufthansa, SAS, Air Canada, Thai and Varig. The BA-Finnair deal would not involve an equity exchange or additional investments by either partner. A primary objective is speeding up connections between Finnair flights and BA operations out of London Heathrow and Gatwick airports.

Staff
The Raytheon Aircraft unit of Raytheon posted an 85% increase in operating income to $61 million for its fiscal third quarter, on sales that jumped 19% to $594 million. The company attributed the increases to "substantially increased" general aviation aircraft shipments. Raytheon manufactures the 19-passenger Beech 1900D turboprop.

Staff
Largest Passenger-Carrying U.S. Regional Airlines - Six Months 1997 Revenue Passengers Percent Passenger Percent Rank Airline Enplaned of Total Miles (000s) of Total 1 Simmons Airlines 2,923,256 9.3 641,512 8.9 2 Comair 2,515,466 8.0 836,197 11.6 3 Continental Express 2,212,755 7.0 507,587 7.0

Staff
Group V2, a consortium led by Luis Ignacio Mendoza, former Viasa president and former IATA president, has formed to pursue the acquisition of the former Venezuelan flag carrier's traffic rights. The consortium has been talking to several potential strategic partners, including KLM and Brazil's Vasp, according to DAILY affiliate Aviation-Latin America&Caribbean.

Staff
Continental, buoyed by revenue growth outpacing its own capacity growth, yesterday reported $207 million in third quarter operating income, up 169% over the year-earlier period. Net profit was $110 million and pre-tax income $186 million, the latter setting a company record for the 10th consecutive quarter. Continental also posted a highest-ever quarterly load factor of 73.7%. Operating profits rose despite the absence of the 10% ticket tax in last year's results and its return this year.

Staff
Mountain Air Express (MAX) averted a shutdown Wednesday when it took senior partner Western Pacific to court to force it to honor an earlier agreement and pay some $332,000 in salaries, fuel and aircraft insurance costs. MAX missed last Friday's payroll and the insurance is due Monday, according to MAX President Tom McClain. Westpac is under Chapter 11 bankruptcy protection from creditors, of which Max is one. MAX said it had only $12,000 in cash and would have to close down if the WestPac funds were not forthcoming...