Aviation Daily

Staff
Revised U.S. Major Carriers Traffic October, 10 Months 1996 (000) October October % 1996 1995 Change Alaska Revenue Passenger Miles 766,000 683,000 12.2 Available Seat Miles 1,196,000 1,120,000 6.8 Load Factor (%) 64.0 61.0 America West

Staff
Eastwind Airlines, a niche 737 operator based at Trenton-Mercer Airport outside Trenton and Philadelphia, plans a threefold service expansion: it will add a third daily Boston flight to accommodate business travelers, inaugurate flights on Tuesdays, when it previously had no passenger operations, and expand existing Saturday service throughout its system. Eastwind serves Orlando; Atlanta Hartsfield; Boston Logan; Richmond, Va., and Piedmont Triad in Greensboro, N.C.

Staff
The National Transportation Safety Board ended a week of hearings into the May 11 ValuJet crash with testimony suggesting that FAA flight standards officials in Washington withheld from the agency's Flight Standards District Office in Atlanta a report critical of FAA's surveillance of ValuJet.

Staff
DAC International added Russ Smith to its sales and support team.

Staff
Atlanta Hartsfield Airport Aviation General Manager Angela Gittens was selected by Governing magazine as a 1996 Public Official of the Year.

Staff
Airlines Reporting Corporation said total travel agent sales processed in October reached $5.220 billion, up 2% from last October. Sales for the first 10 months of the year were up 4% to $54.332 billion. Domestic fares increased 9% during the period and international fares 8%. Domestic commissions have risen 2% so far this year, totaling $3.253 billion, while international commissions grew 3% to $2.270 billion. ARC has 149 participating carriers, including three railroads, and 47,564 accredited travel agency locations.

Staff
Arrow Air named Amanda Penaranda account manager, based at the carrier's new sales and service office in Houston.

Staff
U.S. National Carriers Traffic October, 10 Months 1996 October October % 1996 1995 Change American Trans Air Revenue Passenger Miles (000) 573,821 622,053 -7.8 Available Seat Miles (000) 872,494 927,344 -5.9 Load Factor (%) 65.8 67.1 Passengers 347,175 377,721 -8.1

Staff
Pratt&Whitney named Louis Chenevert executive VP-operations, succeeding Mark Coran, who will retire early next year.

Staff
Korea is regarded as one of the five likeliest prospects for an Asia/Pacific open skies agreement, but DOT is "concerned" that it is blocking what World Airways considers routine changes of its routes beyond Seoul, according to Gerchick. "We hope we can have a more positive response and better communication with Korea on this issue," he said. The current U.S.-Korea bilateral is "quite open," he said.

Staff
The board of directors of Western Pacific Airlines has named former TWA chief financial officer Robert Peiser as president and chief executive of the Colorado Springs-based airline. Founder Edward Beauvais will retain his duties as chairman while handing over daily operations to Peiser. Beauvais said if Westpac is to remain competitive, "we need the kind of leadership a top executive like Bob Peiser can provide." The carrier said Peiser is often referred to as a "turnaround" specialist.

Staff
FAA last week extended until Dec. 2 the deadline for the City of Los Angeles to return $31.1 million to Los Angeles Airport, giving the City Council a chance to act on the issue at a meeting tomorrow. Susan Kurland, FAA associate administrator of airports, originally requested that the funds be returned in 10 days (DAILY, Nov. 15), but Los Angeles Councilman Nate Holden subsequently asked for a delay so that the City Council could consider his motion to direct that the funds be returned to the airport account.

Staff
If DOT grants new route authority and code-share renewal to Polynesian Limited, it should make clear that all authority will be terminated if it catches the airline carrying cabotage traffic again, according to Hawaiian Airlines. "The history of Polynesian's efforts to establish, continue and then re-establish its service between Apia and the United States, especially Honolulu and Los Angeles, has been well documented in various pleadings," Hawaiian said in a DOT filing.

Staff
Japan's five airframe manufacturers expect to sign a memorandum of understanding soon with Boeing providing for about 18% participation in the U.S. company's 747 upgrade programs, the 747-500X and -600X. Japan's Ministry of International Trade and Industry is asking the Ministry of Finance for a $5.4 million subsidy for the manufacturers - Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, ShinMaywa Industry and Nihon Aircraft Manufacturing Co.

Staff
Latin America has an emerging class of "entrepreneur owner-managers" running airlines such as TACA, LanChile and LAPA, according to Tom Gallagher, managing director of CIBC Wood Gundy. Prospering carriers are building domestic and regional empires, he said, knowing that down the road this will be their bargaining chip for linking with global airline alliances.

Staff
FAA last week issued a screening information request (SIR) for participation in a competitive procurement for security equipment integration and installation services. The agency seeks reponses, including a technical proposal, past performance and relevant experience, by 2 p.m. Dec. 2. The SIR is available on the Internet at http ://www.faa.gov/asu/cd/cdco.htm. For more information, contact Mary McGrath at e-mail [email protected] or telephone 202-267-7538.

DOT

Staff
Orally approved an exemption renewal for Oasis International Airlines S.A. for foreign combination charter service between Spain and the U.S....Orally renewed Sky Service's exemption to provide combination charter service between Canada and the U.S...Granted a joint application of Continental, Continental Express and Alitalia-Linee Italiane S.p.A.

Staff
Million Air named Melinda Glau aviation manager at its Houston Hobby Airport facility.

Staff
House Republicans voted last week to retain Bob Livingston (R-La.) as chairman of the Appropriations Committee in the 105th Congress, even though the senior Republican, Joseph McDade (R-Pa.), has been acquitted of bribery charges.

Staff
Regulations, safety and air traffic control will head the Air Transport Association's list of target issues in the coming year. ATA President Carol Hallett told The DAILY Friday that revamping the ATC system probably is the single biggest concern ATA will deal with. Past ATA positions have included establishing an independent FAA and taking the aviation trust fund off budget, but Hallett could not predict which policy recommendations will emerge this time.

Staff
FAA is developing a certification team that will focus specifically on new certificates, according to William White, deputy director of flight standards. The agency also is implementing a surveillance improvement program, he said.

Staff
Kitty Hawk, air freight charterer, said revenues increased 38.4% to $35.3 million for the quarter that ended Aug. 31. Net income rose to $2.3 million from $762,000. For its fiscal year, revenues increased 37.3% to $142.4 million, and net income was up to $7.7 million from $5.2 million.

Staff
Skymark Airlines, the new Japanese carrier being formed by travel agent H.I.S. and other investors, will seek a business license from the Ministry of Transport next spring and hopes to launch service within two years, according to its president, Jun-ichi Ohkawara, and chairman, Hideo Sawada. Speaking with reporters, the executives said the airline plans to operate with three 767 aircraft leased from a Japanese leasing company, flown by foreign cockpit crews trained by an existing airline and cabin crew personnel working on short-term contracts.

Staff
Lufthansa will end its three-times-weekly service between Frankfurt and Kathmandu next May. The German airline, the only European carrier still operating direct scheduled services from Europe to Nepal, said it lost 7 million Deutschmarks on the route last year, up from DM4 million in 1994.

Staff
Air France's $158 million first half profit will help the carrier through the current fiscal year, but quiet, more substantive changes in its balance sheet will aid it long-term. The airline reduced net debt 33% in six months, to $2.54 billion as of Sept. 30 from $3.78 billion on March 31.