Aviation Daily

Staff
Indian Airlines has floated a global tender to sell three more-than-20- year-old Airbus A300 aircraft, IA officials said this week. "The sale is aimed at killing two birds with a single stone," said a senior IA official. First, selling the aircraft is in keeping with the recommendation of a government-appointed committee to enhance the airline's resources, including taking on commercial debt, refinancing assets and selling old aircraft. The measures could enrich the carrier by as much as 3.65 billion rupees (US$104.2 million) over the next two years.

Staff
Dragonair will build its new headquarters at Chek Lap Kok Airport, after signing an agreement with the airport authority. Dragonair and the China National Aviation Corp. jointly will develop two six-story office towers at the eastern point of the island airport. Each tower will be owned separately. Dragonair intends to spend HK$900 million (US$115 million) initially.

Staff
McDonnell Douglas DC-9/MD-80 Aircraft Operating Costs First Quarter 1997 Dollars Per Block Hours DC-9-30 Continental Northwest TWA Crew Cost $487 $462 $377 Fuel&Oil 561 558 540 Rentals 195 29 289 Insurance 2 1 5

Staff
DOT issued an amended foreign air carrier permit to Condor Flugdienst GmbH to conduct scheduled and charter combination service from points beyond Germany via Germany and intermediate points to points in the U.S. and beyond, consistent with the U.S.-Germany open-skies aviation pact. The agreement took effect in May 1996, and Germany designated Condor for scheduled combination service between the U.S. and Germany in a diplomatic note last Oct. 2. The German carrier, a wholly owned subsidiary of Lufthansa, applied Nov. 26, 1996, to amend its permit.

Staff
Bombardier Aerospace said it expects its new Learjet 45 to receive FAA certification within the next several weeks. FAA pilots have been flying the aircraft regularly and European Joint Airworthiness Authority test pilots were in Wichita to conduct initial certification flights.

Staff
DOT has made final its proposal to require large U.S. airlines participating in code-share arrangements to report both the ticketing and the operating airline in their quarterly passenger origin-destination survey reports, effective Jan. 1, 1998. The rule, published in yesterday's Federal Register, also makes technical changes in O&D survey report formats. The notice of proposed rulemaking was issued in June 1996 (DAILY, June 24, 1996).

Staff
Hokkaido International Airlines, a new carrier launched by Japanese investors on Hokkaido island, has selected the nickname "Air Do." The name is pronounced like the last two letters of Hokkaido.

Staff
Signatory carriers at Orlando Airport have approved a fourth satellite airside terminal, a new control tower and initial work on a new south terminal complex. The expansion program, to cost an estimated $965 million, follows $240 million in near-term construction approved by the carriers earlier this year. That program involves a near-doubling of automobile parking, improvements in ground traffic circulation and construction of group check-in facilities. Work on the newly approved projects is to begin this fall and be completed early in the next century.

Staff
Spencer Dickerson, executive VP of the American Association of Airport Executives, was named executive director of the affiliated International Association of Airport Executives. Will James, AAAE's director- accreditation and training, was named IAAE managing director-Canadian affairs. Dickerson and James retain their current positions with AAAE.

Staff
Atlantic Aviation, whose revenues of $73 million in 1996 made it one of the largest fully integrated aviation service companies in the U.S., said yesterday it has signed a definitive deal to be purchased by Legg Mason Merchant Banking. Atlantic Chairman Ben Waide said the acquisition "will support our growth objectives and help us to capitalize on the expansion and consolidation that the aviation service industry is currently experiencing."

Staff
Nav Canada said yesterday it has submitted a revised proposal to the transport minister on user fees it plans for en route and terminal air navigation services and increases in overflight fees. Kenneth Copeland, Nav Canada president, said the revisions include a number of suggestions from users and other stakeholders. The revisions include several deferrals to Nov. 1, 1998, including an exemption from fees for aircraft weighing eight tons or less, an increase in the weight cut-off from 5.7 tons.

Staff
EG&G Astrophysics said its new FAA contract calls for 10 dual-view, automatic Z-Scan systems to be used for the first time in the U.S. as an in-line checked-baggage screening system at Category X airports (DAILY, Aug. 11). The systems will screen checked luggage and automatically alert operators of suspect threat objects, the company said. Delivery is scheduled from October through February.

Staff
Independent Pilots Association (IPA), which represents flightcrews at UPS, yesterday asked the pilots of UPS subcontractors to honor the Teamsters strike, now in its second week. UPS at the same time announced that for the second night in a row, it processed more than half a million air express packages Tuesday at its Louisville hub, and that the number of union workers reporting to work continues to increase.

Staff
State-owned domestic carrier Indian Airlines and nearly a dozen private airlines operating in the country have formed a lobbying group to press their demands with the federal civil aviation ministry, IA officials said. At its first meeting last week in New Delhi, the group resolved to raise a common voice over domestic aviation issues, particularly with regard to infrastructure and the pricing of fuel.

Staff
Continental's independent pilots union, pressing its case for wage parity with other carriers, points out that Continental's stock price increased 691% between January 1995 and March 1997, compared with 67% growth in the Standard&Poor's 500 average. Three other airlines also outperformed the market - US Airways, up 388%; United, up 190%, and Northwest, up 114%.

Staff
McDonnell Douglas DC-9 and MD-80 Systemwide Aircraft Utilization Per Day First Quarter 1997 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 30 108 35 Total Fleet Operations Departures 158 519 170

Staff
Japanese computer reservations system Infini has become the first CRS to take Reed Travel Group's OAG Direct schedule-change service. The system could save the world's airlines $500 million-$1 billion per year if it were adopted globally, Reed said. Infini has almost 9,300 users in 6,300 agency locations.

Staff
Millon Air filed to renew its scheduled all-cargo frequencies between the U.S. and Peru, hoping to prevent an outcome similar to that of its Ecuador authority, which was withdrawn by DOT as the carrier works to regain certification as a fit carrier.

Staff
The Sabre Group has licensed its airline profitability model to Swissair. The model, used to evaluate the economics of flight schedules, enables an airline to generate all possible itineraries to determine profitability and forecast future traffic. "Our contract with Swissair reflects a trend toward airlines investing in proven technology to maximize equipment resources and increase their competitive advantage," said Steve Clampett, senior VP of Sabre Technology Solutions.

Staff
Louise Stoll, DOT assistant secretary for budget and programs and chief financial officer, resigned effective Sept. 30 to join Dames&Moore Group, a Los Angeles-based engineering firm. Stoll will work in the company's Bethesda, Md., office as senior VP-director of major transportation programs.

Staff
Frontier Airlines took delivery of its 12th aircraft, a new 737-300 leased from Boullioun Aviation Services. It has five 737-300s and seven 737-200s in its fleet.

Staff
American's July traffic increased 1.5% on 0.1% less capacity, which lifted the load factor 1.2 percentage points to 75.2%. Domestic traffic was up 2.1% on 1% more capacity, while international traffic rose 0.3% on 2.5% less capacity. Atlantic traffic fell 2.9% on 7.3% less capacity, raising the Atlantic load factor 3.9 points to 85.4%. Latin America traffic gained 3.4% on 1% more capacity. During the first seven months of 1997, Pacific traffic fell 3.9% on 2% less capacity, reducing the load factor 1.4 points to 73.6%.

Staff
Aeromexico will begin twice-weekly nonstop flights between Los Angeles and Ixtapa/Zihuatanejo on Sept. 4. The service complements Aeromexico's resort service from Los Angeles to Acapulco and Puerto Vallarta.

Staff
ValuJet has leased DC-9s to Express One, not Midwest Express as reported in the Aug. 12 DAILY.

Staff
Boeing Commercial and Taikoo Aircraft Engineering Co. (TAECO) announced yesterday that Boeing has joined the Asian partnership to provide aircraft maintenance and modification services to airlines. The International Association of Machinists and Aerospace Workers denounced the deal, saying it threatens union jobs in Wichita and violates an understanding the union reached with the company in its 1995 strike - that moves affecting IAM jobs would follow consultations.