Aviation Daily

Staff
Negotiating positions appear to have moved little after two days of talks in Tokyo. Japanese Transport Minister Makoto Koga said at a news conference yesterday that after signs of progress via informal channels, the U.S. and Japan appear to have returned "to the starting point." His comments suggest negotiators have maintained fixed positions after initial restatements of aviation policy, widely regarded by industry veterans as normal posturing.

Staff
TransAsia Airways introduced service between Taichung and Taitung Aug. 1, becoming the second carrier to serve the route, which connects central and eastern Taiwan. The 74-seat ATR-72s used on the route are the largest aircraft serving Taichung Shuinan Airport. Separately, a program aimed at expanding the airport's runway capacity for jet aircraft has been scaled back.

Staff
A Korean Air Lines 747-300 crashed on approach to Agana International Airport in Guam Aug. 6 about 2:35 a.m. local time. National Transportation Safety Board Chairman Jim Hall quoted initial reports that 245 people were on board Flight 801, a scheduled operation from Seoul to Guam. A Korean Air Lines official said as many as 13 Americans may have been on board, and local news organizations said 29 survivors were found soon after the crash.

Staff
President Clinton signed into law yesterday the Taxpayer Relief Act of 1997 (H.R.2014), which increases international airline taxes and restructures domestic airline taxes, effective Oct. 1. All taxes, including the existing air cargo waybill and general aviation fuel taxes, are imposed through Sept. 30, 2007. The new law converts the current 10% ad valorem tax on domestic passenger tickets into a combination ad valorem/flight segment tax. From Oct. 1, 1997, to Sept. 30, 1998, the tax is 9% of the fare plus $1 per domestic flight segment; from Oct. 1, 1998, to Sept.

Staff
Carnival Air Lines has completed its agreement with NationsBank for $25 million in bridge financing, with guarantees of $12.5 million each by Micky Arison, Carnival's principal shareholder, and Pan Am Corp. Pan Am expects to acquire Carnival this month. Each credit bridge facility matures in one year.

Staff
Boeing 747 Aircraft Operating Costs First Quarter 1997 Dollars Per Block Hours B747-100 TWA United Average Crew Cost $1,145 $1,332 $1,285 Fuel&Oil 2,628 2,664 2,655 Rentals 711 -- 178 Insurance 16 -- 4

Staff
Southwest is providing a 24-hour link to emergency-room physicians on all flights using MedAire Inc.'s MedLink service. "Customer illness is the No. 1 reason why Southwest planes make emergency landings," said Paul Sterbenz, VP-flight operations. Southwest said it is one of five major carriers using MedLink and the only one making the service accessible from any inflight telephone. Other airlines communicate with doctors through the cockpit.

Staff
As the Teamsters strike at UPS continued yesterday, the Independent Pilots Association (IPA) at the company continued to pay for food and lodging for 293 crewmembers in 54 cities. The company cut off UPS pilots from hotel privileges at noon Monday. But the IPA said pilots must remain in the outbound duty stations to get airplanes back in the air as soon as the strike ends. The union decided to spend up to $150,000 to keep the pilots in the field until yesterday.

Staff
The National Civil Aviation Review Commission may steer clear of a controversy that helped torpedo previous air traffic control restructuring efforts - the question of how much control each industry segment should have over the operation of ATC.

Staff
Interactive Flight Technologies reports that Qantas has decided not to install a new interactive inflight entertainment system in its long-haul fleet. IFT had been selected to supply systems to the carrier. Michael Itkis, chief executive of IFT, said, "Going forward, the sales and marketing staff of IFT will continue its ongoing sales efforts toward airlines that operate long-haul, widebody aircraft on international routes."

Staff
Boeing 747 Systemwide Aircraft Utilization Per Day First Quarter 1997 B747-100 TWA United Total Number of Aircraft Operated 5 14 19 Total Fleet Operations Departures 7 24 31 Block Hours 44 130 174

Staff
International Lease Finance Corp. will lease a new A340-300 to Virgin Atlantic for four years. Delivery is scheduled for next March. Virgin currently leases four 747-400s and two A340-300s from ILFC.

Staff
Seven South Asian countries, led by India, plan to create a joint aviation authority to streamline and regulate safety practices and establish personnel standards, particularly for pilots and flight engineers, Indian civil aviation ministry officials said yesterday. The JAA will be set up under the auspices of the South Asian Association for Regional Cooperation (SAARC), with headquarters in New Delhi. SAARC's members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Staff
Increased traffic, improving yields and soaring load factors enabled KLM to post a surge in quarterly operating income to 244 million Dutch guilders (US$116 million) from NLG 80 million ($38 million). Revenue rose to NLG 3.26 billion ($1.55 billion) from NLG 2.45 billion ($1.17 billion), partly due to completion April 1 of its purchase of - and consolidating operations with - British regional Air UK. Total passenger revenue jumped 34%, 12 percentage points of which was attributable to Air UK gains. Expenses gained 27%, 12 points from Air UK.

Staff
India's civil aviation ministry has set up a committee to revamp its 63- year-old Aircraft Act, enabling the country's regulatory authorities to impose stricter penalties on errant airlines, and expand the jurisdiction of the act to include matters concerning foreign-registered aircraft, ministry officials said this week. Headed by Anil Baijal, joint secretary of the ministry, the committee includes representatives of the federal law ministry and various sections of the aviation industry.

Staff
Jane Garvey was sworn in by Vice President Gore Aug. 4 as the 14th FAA administrator.

Staff
Midway will start operating four roundtrip flights a day Sept. 30 between Atlanta Hartsfield and Raleigh/Durham, using Fokker 100s that have leather seats and extra leg room. Midway's regional partner Corporate Express will add service from Wilmington, N.C., to Raleigh/Durham Sept. 29. Corporate Express operates 19-seat Jetstream 32 aircraft.

Staff
DOT has requested information from Florida West International Airways (FWIA) on its ownership, financial and operational status in response to Fine Air's challenge to its renewal application (DAILY, July 24). FWIA must report to DOT any changes in its ownership and any lease agreements with LAN Chile, Fast Air or Ladeco. The department also questioned a discrepancy in ownership reporting, asking whether majority shareholder Mansour Rasnavad owns his FWIA stock directly or through Equipment Power, his holding company.

Staff
Arrow Air, filing to renew two weekly scheduled all-cargo frequencies between the U.S. and Peru, argued to consolidate awards while asking for an amendment giving it two additional frequencies on the route. Arrow is trying to seize an opportunity in which five authorized frequencies are unused as a result of DOT policy and the grounding of Millon Air. DOT should not dilute true competitiveness by dividing the frequencies equally among carriers, according to Arrow.

Staff
United will reduce fares 60%-80% below 21-day advance purchase prices on domestic tickets for travel between Aug. 29 and Sept. 2. Discounts include Shuttle by United service. Examples of reduced roundtrip fares are Denver- San Francisco, usually $687 and now $138 for the Labor Day weekend period, and Chicago-New York, usually $492 and now $138. Shuttle sale fares are $88 roundtrip between Los Angeles and San Francisco and Phoenix, and $138 for Los Angeles-Portland.

Staff
July 97 July 96 7 Mths 97 7 Mths 96 RPMs 1,032,000,000 996,000,000 5,995,000,000 5,627,000,000 ASMs 1,449,000,000 1,433,000,000 8,860,000,000 8,743,000,000 LoadFtr% 71.2 69.5 67.7 64.4 Psgrs 1,198,400 1,169,900 7,082,400 6,750,400

Staff
Continental has begun daily Houston-Honolulu service with continuing service to Guam, using 280-seat DC-10-30 aircraft. The carrier is offering Hawaiian regional cuisine on the eight-hour flight.

Staff
Air Line Pilots Association has averted a strike in its own ranks that had the potential of disrupting other airline contract negotiations. Its clerical workers, represented by the Union of ALPA Professional and Administrative Employees, Unit 2, ratified Friday an agreement reached before dawn that day after six months of negotiations. ALPA declined to comment on the economics of the contract.

Staff
National Air Transportation Association has praised FAA's new final rule permitting piston- and turbine-powered, single-engine aircraft operations under Part 135. Kathy Hakala, acting division manager for flight standards at FAA, was singled out for particular recognition. The rule is a result of years of effort by NATA and industry working groups to address an increase in accidents involving visual flight rule flying into instrument flight rule (IFR) conditions. The new rule enables single-engine aircraft to operate in IFR conditions with passengers.

Staff
Mercury Air Group said it has acquired Stevens Aviation's fixed-base operation at Nashville Airport. The Los Angeles-based Mercury now operates 13 FBOs nationwide under Mercury Air Centers. A new FBO is scheduled to open April at Charleston Airport, S.C.