Aviation Daily

Staff
Horizon Air will inaugurate nonstop flights between Seattle and Medford, Ore., Aug. 3 and start a shuttle schedule to Vancouver, British Columbia, from Seattle. The carrier also will increase nonstops to Redmond/Bend, Ore., from Seattle to three a day. It will operate the Seattle-Medford service twice a day with 37-seat Dash 8 aircraft. It will operate 16 flights a day in the Seattle-Vancouver market, departing on the hour from Vancouver and the half-hour from Seattle.

Staff
Northwest is offering discounts of up to 50% on summer travel in the 48 contiguous U.S. states, and reduced rates to Alaska, Hawaii and Canada. Fares are on sale through May 30 for travel through Oct. 8.

Staff
Cathay Pacific Airways and Hong Kong Dragon Airlines (Dragonair) voluntarily grounded their 15 A330-300s powered by Rolls-Royce Trent 700 engines last Saturday, after recurrent engine gear box problems raised larger safety concerns in Hong Kong. Cathay's 11 A330s experienced two inflight shutdowns within three days. Dragonair grounded its four A330 twinjets. The Hong Kong Civil Aviation Department recommended that Garuda Indonesia, the only other airline operating Trent-powered A330s, follow the Cathay/Dragonair stand-down decision.

Staff
Air Transport Association will propose during the next several months a way to finance airport infrastructure that takes into account the needs of all interests, including the small airports that depend on the Airport Improvement Program, Ed Merlis, ATA senior VP for government affairs, told the Aero Club of Washington yesterday.

Staff
Hughes Aircraft's air traffic division has completed integration acceptance tests on a new flight and radar data processing system and workstations at Jarkarta's Area Control Center. The tests, which were finished May 7, one month ahead of schedule, will be followed by a demonstration of the system's operational readiness in June. The equipment is part of a wider automated air traffic control system that Hughes is installing in the Jakarta region, including 70 workstations and computers, radar systems, communications towers and meteorological equipment.

Staff
TWA told DOT it wants broader access to confidential documents in the American-British Airways alliance case, including some it maintains are clearly in the public domain. The latter include schedule and traffic information, "the essence of merger cases." If all such data are reviewed under confidentiality procedures, designated parties can examine the materials only at DOT or at American and BA offices and will be unable to make copies. TWA wants the department to clarify exactly what will be covered by confidentiality.

Staff
Boeing 767, Systemwide Aircraft Utilization Per Day, Fourth Quarter 1996, B767-200, B767-300 Boeing 767 Systemwide Aircraft Utilization Per Day Fourth Quarter 1996 B767-200 American Delta TWA Number of Aircraft Operated 30 15 11 Total Fleet Operations Departures 51 65 26 Block Hours 337 164 146

Staff
Pilot unions at Air France and its regional unit, Air France Europe (AFE), terminated their strike Friday evening, when they agreed to reopen talks with management. AFE pilot unions "suspended" action, which started a month ago, while their Air France colleagues concluded a four-day strike initiated by the new, hard-line leaders of Syndicat National des Pilotes de Ligne (SNPL), the French flag carrier's dominant pilot union. SNPL's radical bureau, confirmed on Friday by a vote of confidence, does not rule out further action, however.

Staff
Arrow Air said yesterday it has agreed to sell its authority to operate two weekly scheduled all-cargo flights between the U.S. and Argentina to FedEx, contingent on approval by DOT and the companies' boards. Jon Batchelor, Arrow president, said the sale "fits within Arrow's long-term growth plans and has no impact whatsoever upon our ability to operate charter services to Argentina."

Staff
DOT and the State Department said yesterday they have not yet responded to Japan's proposal for a new round of formal bilateral talks. Transport Minister Makoto Koga said Friday it was time to cut a deal (DAILY, May 27).

Staff
Denver-based Maverick Airways suspended all scheduled service yesterday for financial reasons, and President and Founder Cody Dickroeger was asked by the board to resign. He also will relinquish his seat on the board. VP-Operations Alan Willis has been named interim president of the airline, which has been operating since January. A Maverick spokesman said the suspension of operations was based solely on traffic and revenues being lower than expected.

Staff
German airport company Flughafen Frankfurt AG plans to purchase 50% of Dusseldorf Airport in an attempt to bar foreign competitors and as a first step toward setting up a German airport system. Frankfurt Chairman Wilhelm Bender said last week his company will make an offer before the June 4 deadline. Frankfurt's supervisory board, scheduled to meet June 2, will discuss the purchase of the stake in Dusseldorf held by the North Rhine Westphalia state government. The other half of the airport is owned by the City of Dusseldorf.

Staff
Autonomous airport authorities and a cooperative approach to airspace management are among recommendations from a May 12-23 International Civil Aviation Organization meeting on problems of safety, regularity and efficiency of flights in African airspace. The meeting, conducted in Nigeria, was attended by 350 people from 55 states from the Africa-Indian Ocean region and elsewhere.

Staff
Teledyne Controls said it has completed the design requirements for the next generation of air-to-ground communication systems. The company said it will deliver a communications management unit (CMU) for certification and first installations to Boeing and McDonnell Douglas for Saudi-ordered 747-400s and MD-90/MD-11 aircraft in late 1997 and for Braathens 737- 600/700 aircraft in the first quarter of 1998.

Staff
U.S. and New Zealand are holding open skies talks in Washington today and Thursday.U.S. officials have long planned to include New Zealand in its Asian open skies initiative but have waited for a new government there to prepare for the deal.

Staff
Indamer Co. Pvt. Ltd., Mumbai-based regional distributor of Raytheon Aircraft Co., has filed a lawsuit in the supreme court at Colombo, Sri Lanka, against the Sri Lankan government for reneging on an aircraft purchase deal, Indamer sources said last week.

Staff
Midway Airlines Corp. and Corporate Express Airlines will begin offering code-sharing services June 1 from Midway's Raleigh/Durham base. Nashville-based Corporate Express will operate code-sharing flights to Raleigh/Durham from Nashville and Jacksonville, with connections to Midway's flights to 12 destinations. Corporate Express uses BAe Super Jetstream 32 aircraft and Midway operates F100s and A320s.

Staff
TAP Air Portugal, after three months of talks, signed a wage agreement last week with 10 unions representing 5,500 ground workers. TAP, which employs 7,500 people, granted its ground staff a 3.5% raise. All ground staff unions signed the deal, "which has not happened since May 1993," the airline said.

Staff
Returns from United's survey of employee attitudes and perceptions about the company are in, and the verdict is that more employees distrust senior management now than in 1995. The finding is likely to influence upcoming local meetings between management and employees intended to find ways to improve employee satisfaction and, in the process, customer satisfaction. Reacting to the survey results, United promised to "redouble" its efforts to change the corporate culture.

Staff
Allied Pilots Association President James Sovich narrowly lost re- election, and his successor will be determined in a runoff election between two other American captains - past president Rich LaVoy from New York and Chuck Griffin from Chicago. Sovich received 1,811 votes, LaVoy 1,824 and Griffin 1,831. Sovich led the APA through tumultuous contract negotiations with American that culminated in a brief strike Feb. 15.

Staff
Banner Aerospace posted earnings of $7.5 million for fiscal year 1997, an increase of 375% from net income of $1.6 million the previous year. Fourth quarter net income was $2.9 million, up from $49,000. Net sales for the year increased 35% to a record $389.1 million, while sales for the March quarter were up 28% to a record $113.7 million. The company attributed the results to the health of the airline industry.

Staff
Poland's largest aeronautics group, PZL Mielec S.A. of Lublin, has won an $80 million contract to provide 24 small transport aircraft to the Venezuelan army. Delivery of the Skytruck airplanes will take place by the end of 1998. Venezuela will use the aircraft, which can carry either cargo or 18 passengers, to combat drug trafficking.

Staff
Boeing notified airlines last week that it plans to issue a service bulletin calling for inspection of 747 center wing tanks. The National Transportation Safety Board has issued four recommendations on transport aircraft fuel tanks, and Boeing said it "has been determined that the center wing tank was involved" in the crash last summer of TWA Flight 800, a 747. The company said "no definitive conclusion has been drawn about the cause of the explosion," however.

DOT

Staff
Orally renewed an exemption for Lineas Aereas Allegro to fly scheduled combination service between San Jose del Cabo, Mexico, and San Francisco, and Cancun and Orlando, and to conduct passenger charters between Mexico and the U.S through May 16, 1998...Received an application to permit Air Atlanta to operate five roundtrip U.K.-Florida flights using a 747-200 for Airtours International Airways...Dismissed at request of applicant a Virgin Atlantic charter to be flown by Air Foyle/Antonov Design Bureau, carrying a replacement CF6 engine and tools, plus ancillary equipment, u

Staff
Qantas has finalized plans to spend A$550 million (US$430 million) during the next three years to refurbish the interiors of all 99 of its aircraft. Qantas will put new, high-technology seating in first, business and economy class and all seats will have personal interactive video systems. The domestic fleet will be reconfigured starting in October, and international upgrades will debut next April.