Aviation Daily

Staff
Fokker Services, the surviving maintenance unit of the bankrupt Dutch aircraft manufacturer, signed a memorandum of understanding with Merpati Nusantara Airlines to look into the creation of a company in Indonesia to maintain Merpati's Fokker fleet. Fokker Services said it is holding talks aimed at reaching similar agreements with other airlines in Asia and the Americas. Merpati operates 46 Dutch aircraft, mainly Fokker 27s and Fokker 28s.

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British Airways named Elizabeth Weisser manager-Executive Club and partnerships.

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As airlines forge more international alliances, so do the airline's unions. The Air Line Pilots Association unit at United has signed a letter of understanding that calls for closer cooperation with its counterparts at Lufthansa.

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Eurowings, Germany's major regional airline, announced record net profits following two years of losses after it was formed in the merger of RFG and NFD. The airline recorded net profits of 2.1 million Deutschmarks - about US$1.38 million - for the year ended Dec. 31, 1995, as revenues increased 30% to DM410 million - about $269 million. The results represent a turnaround of almost DM10 million, following losses of DM7.7 million in 1994.

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AMR Eagle is eyeing development of up to 15 or 16 loading bridges at Chicago O'Hare's Concourse G designed for its ATR 42/72 turboprops. Passengers currently must use stairwells for access. Responding to passenger gripes, Eagle already has developed adapters for existing loading bridges throughout its system to provide direct access to the ATRs. The approximately $11 million Chicago project will give turboprop passengers, for the first time, loading bridge access to aircraft at both ends of the trip. The project could begin this fall.

Staff
FAA said it fined Delta $650,000 for operating a Boeing 757 on 476 scheduled flights without conducting an engine thrust reverser inspection mandated after the Lauda Air accident, in which the thrust reversers deployed in flight. The agency said its airworthiness directive required a modification of the thrust reversers by installing an additional locking feature, plus inspections after every 1,000 flight hours. The locking features prevent the thrust reversers from deploying in flight.

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...Robinson, who is receiving "a piece of the company" for his efforts, said the 30-passenger 328 is a good product, but that the current work force of 2,600 at Oberpfaffenhofen, near Munich, must be reduced by at least 1,000 as "the first piece of business." The second is the planned stretch of the aircraft to 50 passengers, a commitment made to customers by Carl Albert, chairman of Fairchild and Dornier. In addition, the stand-up cabin 19- passenger Metro likely will be developed at Dornier, where engineering is a strong point.

Staff
British Midland appointed Rick Cooper director-international marketing, USA.

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National Business Aircraft Association has selected Ralph Michalka, of Parmcia Upjohn, to receive its 1996 Maintenance Technician of the Year and Flight Instructor of the Year awards.

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U.S. and France agreed to meet again in the fall after completing two days of exploratory talks last Wednesday. The U.S. is scheduled to meet early in August for negotiations with Pakistan, in which the two sides are expected to consider modernizing the current agreement but stop well short of open skies.

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Lufthansa announced a pre-tax profit of 100 million Deutschmarks for the first half of 1996, down 47% from DM189 million in the same period in 1995. "Our transport volumes and results fell well short of our expectations," said Chairman Jurgen Weber. Lufthansa blamed the losses on discounting by government-subsidized carriers, such as Air France, and the impact of an April fire at Dusseldorf. The carrier said it has cut prices to match competitors since June and imposed a ceiling on hiring.

Staff
After a five-year absence from the market, British Airways has resumed service between London and San Diego. The daily flights operate via Phoenix with a DC-10 aircraft to London Gatwick Airport, where BA has been adding flights in recent months.

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Air France has signed a contract to charter the Concorde to Concorde Spirit Tours for a special flight on New Year's Eve in 1999. The group will offer a trip enabling passengers to celebrate the new millennium in four different spots on Earth.

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Cincinnati-based Comair this week launched jet service between Roanoke and Cincinnati with Canadair Jets and upgraded a second Cincinnati-Cedar Rapids flight to jet service. Comair, which has served Roanoke since 1984, upgraded one of its four daily flights in the market to the CRJ aircraft, effective July 1. On the same date, it upgraded a second of three daily flights to the CRJ service in the Cedar Rapids market. The first jet upgrade was made June 1.

Staff
Mesa Air Group flew 115.8 million revenue passenger miles in June, a 5.4% increase from June 1995, as capacity declined 0.8% to 195.7 million available seat miles from 197.4 million. Passenger boardings rose 0.6% to 562,071 from 558,702 in the prior period. For the first six months of the year, RPMs climbed 20.2% to 679.9 million from 565.4 million; ASMs rose 6.9% to 1.21 billion from 1.13 billion, and load factor rose 6.2 points to 56.1%. Enplanements increased 7% to 3,196,657.

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The Senate is scheduled to begin consideration Monday of the small- business tax relief bill (H.R.3448), which includes reinstatement of aviation excise taxes through Dec. 31 (DAILY, June 14). In its report (Senate 104-281) on the bill, the Senate Finance Committee said a short- term extension of the excise taxes will provide needed revenues "while allowing a more complete review of the bases on which the excise taxes are calculated" once FAA completes a cost allocation study. The bill would reinstate the taxes seven days after enactment.

Staff
Telecommunications Act of 1996 will promote the proliferation of hazardous tall towers, primarily transmission and relay towers for cellular telephone and direct broadcast TV systems, by making it difficult for state and local governments to control their construction and location, according to Frank Jensen, president of Helicopter Association International. "Towers hundreds of feet tall can appear by the thousands, unannounced, within the next few years," Jensen said.

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Summary of National Carriers Systemwide Expense Indicators First Quarter 1996 (000) Labor Fuel/Oil Maintenance American Trans Air 26,817 (2) 31,891 (1) 21,773 (1) Carnival 9,850 (8) 12,358 (5) 12,208 (4) Hawaiian 26,966 (1) 16,995 (3) 20,055 (2) Kiwi 10,396 (6) 10,197 (6) 5,635 (8)

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Boeing President Phil Condit said yesterday the company will try to broaden its market base by offering a long-range business version of its new 737-700 in a joint venture with General Electric. GE Chairman John Welch said his company is the launch customer, with an order for two aircraft to be delivered in late 1998. While financial terms of joint venture were not disclosed, GE will be a minority participant. The Seattle-based joint venture will be led by Borge Boeskov, currently VP- product strategy for Boeing Commercial.

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The European Tripartite Group (ETG) signed leases June 27 for the first two navigation transponders that will be used to broadcast European Geostationary Navigation Overlay Service (EGNOS) signals to users. ETG, which comprises the European Space Agency, the European Commission and the European Organization for the Safety of Air Navigation (Eurocontrol), said the project will provide civil GPS or Glonass users on land, at sea or in the air with improved signal accuracy, integrity and availability.

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America West has added Alamo Rent A Car to its Flight Fund frequent flyer program. Flight Fund members can earn 500 miles when they rent from Alamo in the U.S. or Europe.

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British Airways this week began airing television ads that tout its new international first-class product. The 30-second TV spots, which run through July 7 during Wimbledon tennis coverage on NBC, highlight BA's unique sleeping modules that provide passengers with a private compartment and a seat that folds into a bed.

Staff
The 247 to 159 vote in the House last week to block funding for a study of the Age 60 rule (DAILY, July 1) is the final word "on what had evolved into a referendum on the mandatory retirement age for pilots," the Air Line Pilots Association said. "We view the House's overwhelming support as a tremendous victory and as closure on this issue," said ALPA President Randolph Babbitt. He commended Reps. Mac Collins (R-Ga.) and James Oberstar (D-Minn.) for shepherding the amendment through the House.

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Western Pacific will begin service to Orlando, Fla., Sept. 6 from its Colorado Springs base, and to Ontario, Calif., Sept. 5. The introductory one-way fare to Orlando will be $99, to Ontario $59, and one-way coast-to- coast connecting fares will be $119. The tariffs are valid for travel Sept. 5-19. Orlando and Ontario bring to 22 the number of cities served by the low-fare carrier from Colorado Springs.