Aviation Daily

Staff
Delta has expanded electronic ticketing to include flights to and from Hawaii, making the service available in all 50 states.

Staff
Sabena inaugurated nonstop service yesterday from Brussels to Cincinnati, a code-shared flight with partner Delta. The service, using an Airbus A340, will be offered daily except Tuesday and Saturday. Sabena expects the service eventually to hike its transatlantic sales by 50%.

Staff
Air New Zealand and United began code share flights yesterday between New Zealand, Australia and the U.S. The collaboration covers some 130 flights per week operated by the two airlines. ANZ Managing Director Jim McCrea said the code sharing is important to New Zealand tourism. "This alliance brings benefits for both airlines but, as importantly, it enhances tourism opportunities for this country," he said. Air New Zealand will offer its first service to San Francisco and Chicago under the code share.

Staff
FAA proposed this week a $285,000 fine against Aerolineas Nacionales del Ecuador (ANDES) for its alleged failure to adhere to maximum allowable weight limits in the operation of a DC-8-53F. The alleged violations occurred between July 17 and Aug. 19, 1996, and were discovered by FAA inspectors.

Staff
Gulfstream International flew 39.9 million revenue passenger miles in the first four months of the year, 15.3% more than the January-April 1996 period. In April, the carrier posted a 7% increase in RPMs to 10.3 million, as capacity rose 12% to 19.4 million available seat miles. April 1997 April 1996 4 Mths 1997 4 Mths 1996 ---------------------------------------------------------- RPMs 10,250,000 9,577,000 39,879,000 34,587,000

Staff
ValuJet said passengers who purchase a regular-fare ticket and travel by June 2 will receive a free one-way companion trip credit. Each one-way fare purchase earns a one-way companion trip. Travelers can use the credit when buying another regular-fare ticket between June 3 and Nov. 19.

Staff
Fairchild Dornier is switching suppliers for the Do-328 and 328JET fuselage from Dae Woo of Korea to Portuguese manufacturer OGMA. Fairchild Dornier signed a letter of agreement with OGMA late last week after it failed to come to terms with Dae Woo on contract value, said Earl Robinson, VP-programs aircraft development, who added the decision was based on economics. Tooling transfer from Dae Woo to OGMA could begin in the next couple of weeks, and the first OGMA-produced fuselage is expected to be on a production 328 by the end of 1998.

Staff
Evergreen International Aviation Inc. announced completion of $400 million in financing - $370 million in term loans and a $30 million revolving credit facility - to replace secured debt and a senior note issue with a face value of $125 million. Participating financial institutions were led by Chase Manhattan Corp. as adviser, arranger and administrative agent for Evergreen.

Staff
Great Lakes Aviation's capacity declined 2.4% in April to just over 55 million available seat miles as traffic fell 7.9% to 23.4 million revenue passenger miles. As a result, the load factor was down 2.5 percentage points to 42.5%. April 1997 April 1996 4 Mths 1997 4 Mths 1996 ---------------------------------------------------------- RPMs 23,367,000 25,369,000 87,716,000 91,307,000 ASMs 55,007,000 56,380,000 210,045,000 208,328,000

Staff
Lufthansa Technik has retrofitted the first 747-200 with FANS (Future Air Navigation System) technology and is marketing the retrofit to other airlines operating 747s. The digital systems were fully integrated into the 747's analog cockpit, a process that took LHT six weeks. The company said that more direct routing using FANS can save $500,000 per aircraft per year, depending on the airline and aircraft. "FANS makes flying more efficient," said Siegmar Gomille, head of avionics development for LHT.

Staff
The Air Line Pilots Association at American Eagle has reached an agreement in principle with American on a single contract that would merge the seniority rosters of all four Eagle carriers into a single list. The agreement would cover 1,900 pilots at Executive, Simmons, Flagship and Wings West. The contract also grants an annual wage adjustment while "establishing an innovative framework for negotiating subsequent contracts," a joint statement said.

Staff
Regional Airline Association set record numbers in attendance and exhibitors at its convention in Reno, Nev., this week. The records come as the association increased its membership to 76 airlines and 363 associate members. More than 1,100 people attended this year's convention, up from the 950 that visited the 1996 meeting in Orlando, Fla. The number of exhibitors increased 12% to 159 occupying 178 booths. "The industry's interest in this convention exhibits the exciting growth and potential of today's regional airlines," said RAA President Walt Coleman.

Staff
Dutch-owned TNT's plan to open European headquarters at Bierset, the municipal airport of Lige, Belgium, has sparked an overwhelming response from job seekers in the Lige region, where the unemployment rate is 13%. TNT is switching its European headquarters from Cologne to Lige. So far, some 13,000 people have applied for the 600 new technical and administrative positions TNT will create when it opens the center next year. The courier said virtually none of its current employees in Germany will move with the company.

Staff
Pratt&Whitney Canada named Carol Sharpe VP-communications.

Staff
United, acting on research data indicating that U.S. airline customer service has fallen short of passenger expectations, has developed a program to raise its standards. Its customer satisfaction philosophy (CSP) focuses on six elements it says will "revolutionize air travel in the next five to 10 years." United will unveil the CSP, and a domestic and international advertising campaign May 22.

Staff
McDonnell Douglas, which received orders for just two commercial aircraft in the first quarter, has formed a task force with Delta that may be determining the most economical method of canceling the carrier's remaining 15 MD-90s on order. "Even though McDonnell Douglas has an enforceable firm contract, the companies are forming a joint task force to seek a business resolution to these firm orders," McDonnell Douglas said in a 10-Q filing with the Securities and Exchange Commission.

Staff
FAA plans to resurrect the controversial flight-and-duty-time rulemaking it shelved nearly a year ago after receiving more than 2,000 comments - mostly negative. RAA President Walt Coleman this week called the NPRM "one of the most disappointing rulemakings ever to come out of FAA." It would have imposed more stringent flight-and-duty-time limits on the industry as a whole, but at the same time would have had the most severe impact on regional airlines and other seasonally sensitive operators. The new NPRM is expected within the next few months.

Staff
FAA said it will issue a notice of proposed rulemaking within weeks - by late spring - requiring fire detection and suppression systems for Class D cargo holds within three years rather than the five years the Air Transport Association estimates for the job. FAA will "make every effort" to issue a final rule by the end of the year, Acting Administrator Barry Valentine told the House Transportation aviation subcommittee yesterday at a hearing on fire protection and hazardous materials.

Staff
A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit yesterday heard DOT defend the distinction it made in the final airport rates and charges policy between airfield and non-airfield aeronautical facilities. Airlines and airports both argue that no distinction should be made, but the former would have all aeronautical assets subject to historic cost valuation, while the latter believe that FAA should not mandate historic cost for any aeronautical facilities.

Staff
A key Democratic senator and a United security official have objected to the House Appropriations Committee's direction that $40 million in the House version of the supplemental funding bill (H.R.1469) be used to keep production lines open for the one FAA-certified explosives detection system, InVision Technology's CTX 5000.

Staff
Massachusetts Port Authority for a third time is considering peak-hour pricing schemes for Boston Logan Airport. Two previous efforts failed, one at the U.S. Supreme Court level. Massport is said to be in early deliberations on a plan that would impose surcharges of up to $150 per takeoff or landing between 2 p.m. and 8 p.m. The authority is looking at a "revenue-neutral" formula based on aircraft weight that could quadruple costs for regional airlines while reducing costs for the major carriers, according to RAA.

Staff
Air South said it will add service to several cities starting June 10, including from Chicago Midway to Myrtle Beach, Charleston, Columbia and Norfolk/Virginia Beach. The airline also is increasing service from Charleston to Columbia and Atlanta, and from Columbia to Myrtle Beach.

Staff
TWA is trying to improve customer service by asking passengers to help it inspire its employees.The carrier is giving frequent travelers certificates of recognition under the "something good" program. The passengers give the certificates to TWA employees who provide exceptional service, and the employees turn them in for prizes. TWA's goal is to finish in the top half of DOT rankings this year for on-time operations, customer complaints and baggage handling.

Staff
Aero International (Regional) has signed a contract to sell five ATR 72-210A aircraft to China Xinjiang Airlines and the China Aerospace Supply Corporation. Another five aircraft are on option. Value of the firm orders was placed at about $80 million. The first aircraft will be delivered in late July with subsequent deliveries continuing through 1998. AI(R) also announced that Alenia Aerospazio, a member of the AI(R) consortium, had signed a contract with the Xian Aircraft factory for manufacture of ATR 72 rear fuselages in China.

Staff
Aeroflot is urging DOT to grant its request for Shannon-Miami service without delay despite United's objection. Aeroflot wants to start the charter service Saturday. United has been unable to code share with Lufthansa due to the Russian government's finding that the Russia-Germany bilateral does not permit the proposed service. Aeroflot wants DOT to take into account bilateral progress on other fronts, including Russia's grant to Alaska Airlines of service to Petropavlovsk.