Aviation Daily

Staff
Emirates will launch service from Dubai to Kuala Lumpur, Malaysia, and Sanaa, Yemen, on Oct. 27 and 28, respectively. The carrier will operate three times weekly to Kuala Lumpur with A300-600Rs via Dhaka, Bangladesh, and twice weekly to Sanaa, also with Airbus aircraft. With the new service, Emirates will fly to 35 countries.

Staff
Worldspan's U.S.-based subscribers are being offered electronic ticketing on Northwest in its domestic markets and on flights to Canada, for travel after the end of this month. The initiative makes Worldspan the first computer reservations system to offer electronic ticketing outside the U.S. Northwest intends to expand electronic ticketing to other international routes next year. Ticketless travel also is available for all markets served by Northwest Airlink.

Staff
American is offering travel agents who book its Fly AAway Vacations on the Internet the same 1% bonus commission they earn when booking through a computer reservations system. As an introduction to booking on the Internet, the American vacation division and Turnaround Computing will give agencies $50 per traveled booking for an agent's first 10 bookings until Dec. 31. Turnaround Computing offers connections between agencies and the Internet via a special access system.

Staff
Las Vegas-based Eagle Canyon Airlines will begin two daily roundtrip flights to Cedar City, Utah, Dec. 12 as part of its expansion plans from Las Vegas. It currently flies only to the Grand Canyon and Laughlin, Nev., operating air tour service with 44-seat Fokker 27 jetprops. The scheduled service to Cedar City responds to requests from skiers for flights to nearby Brian Head Resort.

Staff
President Clinton yesterday signed into law the FAA reauthorization bill (H.R.3539), extending for two years funding authority for FAA capital programs and making statutory changes affecting airports, airlines and other industry segments. Two aspects of the bill - aviation security and assistance for families of air disaster victims - were the sole focus of a bill-signing ceremony yesterday.

Staff
Reno Air posted record traffic in September, when it flew 240.8 million revenue passenger miles, 34% more than in September 1995. Capacity rose 41%, resulting in a load factor decline of 3.1 percentage points to 60.9%. President Robert Reding said, "Our load factor for September was negatively impacted by a $25 fare sale, which we matched on a restricted basis, the reimposition of the ticket tax in late August, and our 41% expansion of seat capacity." Sept 1996 Sept 1995 9 Months 1996 9 Months 1995

Staff
Air New Zealand asked DOT to renew its authority to display the designator code of Polynesian Airlines on ANZ's scheduled services between Apia, Western Samoa, and Honolulu. The carrier has been operating weekly service between Auckland and Honolulu via Apia, but beginning Oct. 6, it will extend the service to Los Angeles using Boeing 767 aircraft. ANZ plans to continue to block seats for Polynesian and carry Polynesian's designator code between Apia and Honolulu.

Staff
Several speakers at an aviation safety seminar this week in Orlando opposed Congress's selection of the National Transportation Safety Board for the task of providing support to families whose loved ones are killed in air crashes. Lee Dickenson, a former board member, observed that the board was set up as a "watchdog to investigate" transportation accidents.

Staff
U.S. National Carriers Operating/Net Profit/Loss (6 Months 1996) Operating Net Profit/Loss Profit/Loss (000) (000) Six Months 1996 American Trans Air $ 1,074 $ (2,193) Carnival 2,438 1,229 Hawaiian 3,513 956 Kiwi n/a n/a

Staff
Pan Am will increase daily flights in the New York-Miami market from one to three Oct. 27, one month after the airline inaugurated service with A300s. It also flies in the New York-Los Angeles market. The carrier signed a five-year renewable lease last week for two more A300s, adding to its current three, and expects to expand service further in December. As a result, the carrier said it is looking for more pilots and flight attendants. President Martin Shugrue said, "We have been very encouraged by the public's response to our launch.

Staff
The European Commission has launched an investigation of the planned 3.135 trillion lire capital injection for national carrier Alitalia by Istituto di Ricostruzione Industriale, Italy's state-owned holding company. Announcing the injection in July, IRI said the plan reflects market- oriented principles of investment, but Brussels considers that it has all the characteristics of a subsidy. The EC said it is "not convinced" by arguments that IRI is acting as any private market investor would under the same circumstances.

Staff
House Ways and Means Chairman Rep. Bill Archer (R-Texas) is again urging the Internal Revenue Service to reverse moves that effectively eliminate easy deductibility of millions of dollars worth of aircraft engine overhauls, after IRS Chief Counsel Stuart Brown, in a reply to a September letter from Archer (DAILY, Oct. 7), contended the agency's stance applied only to an individual airline in a specific case. Along with 31 other lawmakers, Archer called on U.S.

Staff
South African charter service Allegis has chosen InterGame to provide interactive gaming programs on its 727-200 Advanced Executive jet. Allegis is spending about $22.3 million to customize the 60-seat jet. The luxury charter will offer four private compartments seating 16 people that can be converted to bedrooms, a cocktail lounge for 12 and first-class sleeper seats throughout the cabin. It will operate within South Africa and to major European points.

Staff
United and American filed objections to the application by Continental and Alitalia to expand their codes-share services. Seeking two-year renewal of their authority to perform Newark-Rome/Milan, Houston-Rome and other cooperative services, the carriers also requested permission for Continental to wet-lease as many as three aircraft to Alitalia to operate up to two daily Newark-Rome flights and one daily Newark-Milan flight (DAILY, Sept. 25). Under current authority, Continental is allowed to wet- lease one aircraft for one daily Newark-Rome flight.

Staff
Jet Airways, considered by aviation analysts to be the most successful among nearly a dozen private domestic carriers in India, is firming up plans to induct 10 new aircraft into its fleet. The carrier currently operates 11 leased Boeing aircraft, and last month it received government clearance to lease four more aircraft by the end of the year. The carrier's aircraft acquisition plan, budgeted at 16 billion rupees (about $450 million), envisions a choice among three mid-size passenger aircraft, the Boeing 737-400 and 737-800, and Airbus Industrie's A321.

Staff
U.S. National Carriers Operating Revenues and Expenses (2Q96/95) Operating Operating Revenues Expenses (000) (000) Six Months 1996 American Trans Air $ 393,032 $ 391,958 Carnival 142,140 139,702 Hawaiian 190,071 186,558 Kiwi n/a n/a

Staff
World Airways' board authorized the buyback of up to one million shares of common stock via open market repurchases. World stock traded at $8.50 per share yesterday, so the company will spend about $8.5 million on the buyback. Last week, World said it anticipated third quarter earnings of $2.8-$3 million, higher than analysts' expectations.

Staff
United urged DOT yesterday to launch a formal investigation of the proposed British Airways-American alliance. In its filing to the department, United charged that U.S. interests are being shortchanged in reviews being carried out in the U.K. and the European Union. There is no forum for different views of the arrangement in the U.S., noted Cyril Murphy, United VP-international affairs. "A formal investigation would allow the U.S. to develop an informed policy on the alliance rather than reacting to conclusions made by regulators investigating it for the U.K.

Staff
America West posted a 17.5% surge in September revenue passenger miles on 12.2% greater capacity. The airline's load factor rose three percentage points to a September record of 67.6%. For the third quarter, traffic increased 11.5% and capacity 10.9%, pushing the load factor up 0.4 points to 71.8%. Sept 1996 Sept. 1995 9 Months 1996 9 Months 1995 RPMs 1,237,433,000 1,053,480,000 11,339,851,000 10,035,497,000 ASMs 1,829,982,000 1,630,649,000 15,862,839,000 14,502,686,000

Staff
U.S. National Carriers Operating/Net Profit/Loss (2Q96) Operating Net Profit/Loss Profit/Loss (000) (000) Second Quarter 1996 American Trans Air $ (4,143) $ (4,546) Carnival (713) (826) Hawaiian 3,140 1,537 Kiwi n/a n/a

Staff
Overseas travel was up across the board this year compared with 1995, according to 67.7% of travel agents polled in the American Society of Travel Agents annual Hot Spots Forecast. The agents also said they believe Americans will spend more on travel in 1997 than in 1996. Survey results were issued this week at ASTA's 66th annual World Travel Congress in Bangkok, which reported 4,100 participants. Travel agents again picked London as the international destination expected to be the most popular and Orlando as the most favored domestic destination.

Staff
Southwest boosted its September load factor and managed its capacity growth better than in past months, realizing a 29.4% increase in revenue passenger miles (DAILY, Oct. 8). With the large boost in travelers and capacity gains of only 11.9%, Southwest's load factor vaulted up 9.5 percentage points in September to 70.6%. The carrier's average length of haul climbed 9.1% to 565 miles from 518 miles in September 1995. Sept 1996 Sept. 1995 9 Months 1996 9 Months 1995

Staff
U.S. National Carriers Operating Revenues and Expenses (2Q96) Operating Operating Revenues Expenses (000) (000) Second Quarter 1996 American Trans Air $ 185,897 $ 190,040 Carnival 63,834 64,547 Hawaiian 96,009 92,869 Kiwi n/a n/a

Staff
Continental has the greatest opportunity to increase traffic at its three hubs and Northwest is controlling hubs the best, according to a major-carrier hub analysis from Lehman Brothers. The investment house found, however, that United leads the top eight U.S. airlines in gate utilization, the best efficiency method for analyzing a hub. "Continental has the greatest potential to grow local and connecting traffic," said Brian Harris, study leader and VP of Lehman Brothers.

Staff
Rosenbluth International will unveil "The Continuum" - the future of travel through partnerships with companies from diverse industries - today in Philadelphia. Senior executives from Rosenbluth, Visa, Lucent Technologies and AT&T will highlight emerging technologies that help cut costs in the travel industry and other businesses.