Aviation Daily

Staff
United said signs of flexibility by Japanese authorities warrant the approval of extra service by Japan Airlines to Kona, warning in a DOT filing against sanctions that might abort productive negotiations between the U.S. and Japan. Northwest, which filed a complaint against Japan last year after the denial of beyond rights from Tokyo, urges measured sanctions. Informal bilateral talks are to take place in Washington early next month; an earlier round in Tokyo produced little more than an airing of views and agreement to meet again.

Staff
Airbus and Fokker Aircraft Operating Costs Third Quarter 1996 Dollars Per Block Hours A320-100/200 American Northwest United Average Crew Cost $331 $574 $574 $516 Fuel&Oil 546 540 539 541 Rentals 741 360 606 525 Insurance 18 15 12 15

Staff
Peninsula Airways of Anchorage has taken delivery of the first of two Saab 340Bs with a newly certified gravel kit and larger cargo hold. Saab said the 340B is the "first aircraft of its kind to operate in Alaska."

Staff
The Clinton administration's proposal for $300 million in user fees to help fund the fiscal 1998 FAA budget prejudges the outcome of the process set up by Congress to determine FAA financial needs and the best way to met those needs, general aviation groups said last week. "This administration is determined to impose destructive new fees on the aviation industry before finding any evidence that they are needed," said Aircraft Owners and Pilots Association President Phil Boyer.

Staff
Preliminary plans by FAA to modify the Washington-Baltimore Class B airspace would "compress airspace available for transiting aircraft, forcing them even closer to urbanizing communities and adjacent waters," according to the Aircraft Owners and Pilots Association. The Class B airspace surrounds Washington National, Baltimore-Washington and Dulles airports.

Staff
Cathay Pacific Airways completed the first stage of its nine-year, $9 billion spending spree on new aircraft begun in 1994. This week, the carrier takes delivery of an A340-300, bringing the fleet to 60 aircraft, all widebodies. Cathay will spend $6 billion through 1999 for the delivery of seven 777-300s, one A330-300 and six A340-300s. The carrier, with an average fleet age of six years, has options to buy another 29 aircraft. Cathay said it carried 10.99 million passengers in 1996, up 5.8% and another record.

Staff
United's Air Line Pilots Association leaders will hold a special meeting tomorrow to update members on the union's strategy to deal further with management over mid-term wage adjustments in the employee stock ownership plan. Portions of the meeting will be closed to non-members. United's labor problems mounted last week as its negotiations with the Association of Flight Attendants ended after only four of the scheduled five days.

Staff
Delta says its revamped spring schedule, effective April 6, will build on the strength of its major hubs. It will offer nonstop service to 111 destinations from its Atlanta Hartsfield base with 587 daily flights, plus 216 daily departures with nonstop flights to 71 destinations at its second largest hub, Cincinnati. At Atlanta, Delta will add nonstop service to San Jose and frequencies to Baltimore, Cincinnati, Dallas/Fort Worth, Miami, Orange County, Salt Lake City and San Francisco.

Staff
National Transportation Safety Board yesterday spread the blame for the wheels-up landing last Feb. 19 of a Continental DC-9 at Houston Intercontinental Airport. The aircraft slid 6,850 feet before coming to rest in grass, and no serious injuries occurred.

Staff
McDonnell Douglas DC-10 Systemwide Aircraft Utilization Per Day Third Quarter 1996 DC-10-10 American United Total Number of Aircraft Operated 15 26 41 Total Fleet Operations Departures 36 75 111 Block Hours 158 224 382

Staff
Machinists union members have elected Thomas Buffenbarger, general VP, to replace George Kourpias as international president when he retires July 1. Don Wharton was re-elected general secretary treasurer, and seven general VPs were elected.

Staff
International Aviation Club plans to hold its monthly luncheon Feb. 18 at The University Club, 1800 K St., N.W. in Washington. Guest speaker is Jean-Claude Baumgarten, Air France chief executive officer, industry affairs. Lunch will be served at 12:30 p.m.

Staff
United is improving employee attendance through its PRIDE program - program of recognition and incentives for dependable employees. Employees achieved a 4.8% improvement in dependability - refraining from taking sick leave - in December over December 1995. The fourth PRIDE period runs from Sept. 1, 1996, through Feb. 28, 1997. For the first four months of that period, dependability gained 6.2%. If the improvement stays above 5% for the entire six months, one employee with a perfect attendance record will win $25,000 and 35 will receive $5,000 each.

Staff
Goa will impose an entry tax of 300 rupees (about US$8.50) on foreign nationals entering the state through its airports. The Indian coastal state, a former Portuguese colony that depends heavily on tourism for its revenues, is the first Indian state to levy such a tax.

Staff
Swissair will set up Charter-Leisure AG, a 100%-owned long-haul charter subsidiary, in the second half of 1997. Charter-Leisure will employ 200 people and operate two of Swissair's A310 aircraft, which the parent will replace in 1998 with A330-200s. Swissair and its pilot union, Aeropers, agreed on a plan to cut cockpit staff costs: the subsidiary will recruit pilots from Swissair, pay them less but advance them to the rank of captain in fewer years of service.

Staff
Struggling Vanguard Airlines is "a financial Vietnam" for investment firm Hambrecht&Quist, according to Mike Boyd, president of Aviation Systems Research. "The bottom line for both companies is that the airline has to learn how to fly people for a profit."

Staff
FAA, in a change of mind, will not require display of the certificate holder's name on the outside of Part 135 aircraft, according to a proposed amendment published in The Federal Register. The change follows a petition filed by the National Air Transportation Association signed by more than 50 charter firms.

Staff
Now that Boeing has put 747 derivatives on the shelf, Kawasaki Heavy Industries may take itself out of its 6%, risk-sharing participation in Rolls-Royce's Trent 900 engine program. The Japanese company was to have sent engineers to Derby this month to work on the engine but will not do so. In cooperation with Rolls, it is studying whether the investment is worthwhile now that the Airbus Industrie A3XX program is the engine's only near-term prospect.

Staff
Atlantic Southeast Airlines reported a 3.2% gain in January revenue passenger miles to 62.4 million. Available seat miles rose 1.6% to 142 million, for a load factor increase of 0.6 points to 43.9%. The regional carrier transported 258,744 passengers in January, up 1.9% from January 1995.

Staff
Delta Connection carrier Comair's January traffic increased 15.7% over January 1996 to 116 million revenue passenger miles. Capacity rose at a faster rate - 20.9% - to 240.3 million available seat miles, creating a load factor shortfall of 2.1 percentage points to 48.3%. Comair carried 355,473 passengers during the month, a 9.5% rise from the year-ago period.

Staff
Japan Airlines said yesterday it is launching a new effort to reduce cost and increase competition by conducting purchasing initiatives via the Internet. JAL has 1,200 different categories of expendable inflight supplies, such as paper cups and plastic serving trays, that cost $50 million annually. The carrier is exploring Internet bidding for inflight goods, as well as cargo and maintenance items procured from suppliers.

Staff
Alaska Airlines will begin service May 10 to its fifth Russian Far East destination - Yuzhno-Sakhalinsk - if approved by the Russian government. The carrier will operate one weekly roundtrip to Seattle via Anchorage. Yuzhno-Sakhalinsk is the regional capital of the island of Sakhalin, north of the Japanese island of Hokkaido.

Staff
The Allied Pilots Association complained yesterday afternoon, in the second day of supermediation with American, that the company has yet to respond to the contract settlement proposal the union submitted one month ago. Parties were considered likely to continue negotiations into the night - they lasted Monday until nearly 11 p.m. American and the APA are negotiating from separate rooms through federal mediators who shuttle comments back and forth.

Staff
The general public still would rather use a travel agent than try new online travel services, according to a survey conducted by the Travel Industry Association of America. The survey asked respondents to choose among travel agents, computer online services such as Prodigy, America Online and CompuServe, and the Internet to determine the best source for obtaining travel information. More than 50% selected agents in five of seven information categories.

Staff
Eastwind Airlines will begin serving Tampa Feb. 27 from Trenton, N.J., connecting at Greensboro, N.C. It is offering introductory fares of $89 each way from Trenton and $79 from Greensboro. Eastwind operates 737-200s.