Aviation Daily

Staff
AirTran Airways intends to begin nonstop flights to Bloomington-Normal, Ill., from Orlando on Dec. 18, operating one daily 737 flight for fares starting at $99 one way. AirTran said it will be the first airline to offer scheduled passenger jet service from Central Illinois Regional Airport. "New service to Bloomington-Normal reflects our commitment to serving mid-sized markets that lack the convenience of nonstop, low-fare service to Florida," said Gus Carbonell, VP-planning.

Staff
USAir Express affiliate CCAIR managed to earn a net profit of $95,755, or one cent per share, for the fiscal year ended June 30, despite posting a fourth-quarter net loss of $391,226, or five cents per share. For the previous fiscal year, the carrier reported a net loss of $362,123, or five cents per share. 3 Mths 1996 3 Mths 1995 FY 1996 FY 1995 ---------------------------------------------------------------------- Oper. Revenues $18,168,113 $17,074,071 $66,233,701 $63,038,700

Staff
Casino Jet Express, the new in-house tour division formed by Nations Air Express and tour operators World Technology Systems and AIRFAIR, has come up with an easy-to-remember phone number for reservations - 800-WIN-LOOT.

Staff
Alitalia's losses plunged to 310 billion lire in the first six months of 1996, compared with LIT197 billion in the same period last year. Revenues rose to LIT3.77 trillion, up 6.1%, as passenger volume increased 10.8%. The first-half deficit dropped Alitalia's equity into the red - the airline now has negative capital of LIT38 billion - increasing the urgency of recapitalization proposals before the European Commission.

Staff
Citing serious problems in methodology, a DOT report challenges the accuracy of four privately sponsored studies of the U.S.-Japan market. The report, prepared by the DOT Office of Aviation International Economics, points to weaknesses in the approaches and assumptions used in the studies (DAILY, Oct. 3). The U.S. industry battle this year over the future shape of the U.S.-Japan relationship spawned a series of studies. Three of the studies, sponsored by United, Northwest and Access U.S.-Japan, drew conclusions supporting their sponsors' respective positions.

Staff
Lockheed Martin's Oceanic Radar and Sensor Systems Division has proposed a plan to help Venezuela upgrade its air traffic control systems. The Syracuse, N.Y.-based division already has a contract with the country for ocean vessel traffic work and hopes to expand to the aviation sector. Venezuela is one of the largest potential markets in Latin America requiring ATC modernization, according to a report issued at last week's Americas Conference on Aviation in Miami.

Staff
The Senate adopted yesterday 92-2 the FAA reauthorization bill (H.R.3539), ending nearly a week in which the legislation was tied up by a controversial labor provision involving Federal Express. Sen. Wendell Ford (D-Ky.), ranking Democrat on the Senate aviation subcommittee, said passage culminates two years of effort to reform FAA, and Chairman John McCain (R- Ariz.) said it may be the session's most significant piece of aviation legislation.

Staff
SAS will launch reduced-fare service Oct. 22 for business and leisure passengers between Stockholm and Oslo, offering 14 "SAS Express" roundtrips per day, ticketless travel and individualized food and beverages.

Staff
Nine regional-airline stocks dipped an average of 98 cents during September to $10.64 per share. Total market value of the nine issues was down $133.7 million to nearly $2.4 billion. Only one of the nine stocks was on the up side during the month. Northwest Airlink Mesaba Holdings increased 13 cents to $10.88 per share. Decliners were led by Delta Connection SkyWest, which was off $2.88 to $14.24 per share, followed by United Express Atlantic Coast, down $2.77 to $11.75 per share.

Staff
Pan American said yesterday it is leasing two Airbus A300s for five years from C-S Aviation Services, bringing its fleet to five A300s, all with General Electric engines. The aircraft, originally flown by Lufthansa, will be delivered by mid-November. Pan Am, which began daily scheduled service between New York Kennedy and Miami and Los Angeles last week, said Mobile Aerospace, Mobile, Ala., has begun work to bring the aircraft to "zero time." Its aircraft are configured with 24 first-class and 230 coach seats.

Staff
An Aeroperu 757 crashed into the Pacific Ocean yesterday shortly after takeoff from Lima. The crew reported technical problems shortly before the crash.

Staff
Alaska Airlines was named "Best U.S. Airline" by Travel&Leisure magazine, which plans to give the award annually. The October issue, which ranks airlines based on a survey of 6,400 readers, assigned second place to United, followed by Delta, American, Hawaiian, Northwest, Aloha, TWA, America West and Southwest. Alaska will receive the award Oct. 19 aboard the QE2 during Travel&Leisure's 25th anniversary celebration in New York.

Staff
Uzbekistan Airways selected Pratt&Whitney to provide a 10-year engine fleet management program for its PW4000 and PW2000 engines. The contract is valued at about $60 million. The carrier operates two Airbus A310s and late this year will acquire two new 767s and a 757 VIP aircraft, all powered by Pratt engines.

Staff
Airlines serving U.S. airports are well ahead of deadlines for switching to quieter aircraft, Transportation Secretary Federico Pena said yesterday. Carriers have until 2000 to assemble fleets that comply with the Stage 3 noise rule. In a report submitted to Congress, Pena said more than 200 of the noisiest jetliners were retired in the past year "under our aggressive effort to phase out these aircraft.

Staff
GTE Airfone is offering a $24.95 calling card good for unlimited calls while flying throughout the month of December. GTE said the card covers every Airfone service - domestic, international and satellite calls, three- way calling and data connections. Orders must be placed by Nov. 15.

Staff
DOT made final with one minor modification its allocation of combination frequencies in the U.S.-Russia market. The department allotted three weekly frequencies to Alaska Airlines, 19 to Delta, 8.5 to Northwest, seven to TWA and seven to United. Five weekly frequencies are being reserved for Baltia Air Lines in the event it starts proposed U.S.-Russia services as authorized by DOT. The other 4.5 weekly frequencies will remain available for allocation.

Staff
U.S. Major Carrier Financial Indicators Second Quarter 1996 Actual Load Factor Breakeven Load Factor (%) (%) 2nd Qtr 12 Months 2nd Qtr 12 Months 1996 Ended 2Q/96 1996 Ended 2Q/96 Alaska 65.8 63.9 57.3 58.0 America West 71.9 70.2 61.7 62.5

Staff
The air traffic control facility responsible for the "busiest airspace in the world just moved into the 21st century," according to members of the National Air Traffic Controllers Association who staff the Chicago O'Hare Tracon. In a letter to President Clinton, local union leaders said the new tracon will be dedicated Oct.

Staff
Singapore Aircraft Lease Enterprise ordered eight A320s and four A321s and took options on 12 aircraft of any type from the A320 family. Deliveries of the firm-order aircraft begin in January 1998, and Airbus Industrie said they will be Singapore's first single-aisle types. The company is jointly owned by Singapore Airlines and Boullioun Aviation Services. An engine choice has not been made.

Staff
DOT should insist that Magadan Airlines drop its code-share arrangement with Aeroflot in exchange for new U.S. service authority, Alaska Airlines said in a filing to the department. Operating as Mavial, Magadan has requested an exemption to provide scheduled combination service between points in Russia and co-terminal points Anchorage and Seattle, via intermediate points (DAILY, Sept 18).

Staff
Janitors are striking at Washington National Airport, claiming unfair labor practices by PRIEM, a joint venture partner of their employer, P&R Enterprises. The janitors are asking the Metropolitan Washington Airports Authority to put pressure on PRIEM, a subcontractor at National. MWAA told the janitors Sept. 25 that it would be inappropriate for the authority to intervene in the labor affairs of a subcontractor.

Staff
DOT warned U.S. carriers not to transfer foreign charter allocations to other carriers and threatened civil penalties in future transfer cases. Noting that government-to-government agreements limit the number of charters U.S. carriers may operate in several markets, such as Japan and Brazil, DOT said it learned that, "contrary to the intention of the department, some trading or selling of these slots has occurred between airlines." The department said its Enforcement Office "has recently taken enforcement action regarding the use of several U.S.

Staff
Finnair applied for renewal of its exemption to operate scheduled combination service between Helsinki and San Francisco. Saying it intends to continue providing three roundtrip flights per week on the route using MD-11 aircraft during the summer, the carrier said it would adjust the flight schedule as market conditions warrant. It said the application is consistent with the public interest and it is within the scope of the U.S.- Finland open skies agreement. (Docket OST-96-1831)

Staff
Jet startups in most of the U.S. - not just Kiwi, which filed this week for Chapter 11 bankruptcy protection - have been stung throughout the summer from negative publicity surrounding ValuJet's May 11 crash, its flaws in maintenance management and the debate about whether it should start up again. "It is a problem, but it's not a serious problem," said Ed Beauvais, chairman and chief executive of Western Pacific Airlines.

Staff
Seven U.S. airlines have outlined to the State Department procedures for exchanging passenger information after aviation disasters that happen outside the U.S. and involve U.S. citizens, the Air Transport Association said yesterday. The airlines - American, Continental, Delta, Northwest, TWA, United and USAir - account for most international traffic from the U.S., and other carriers also may follow the procedures, ATA President Carol Hallett said.