Aviation Daily

Staff
In response to growing demand, China Airlines has added a second weekly all-cargo flight between Taipei and Kaohsiung. The 747-200 flights provide the only scheduled all-cargo service between the island's northern and southern sectors.

Staff
Continental is urging DOT to turn down American's bid to operate code- share services with the TACA Group of carriers. American and the TACA Group - Aviateca, Compania Panamena de Aviacion, Lineas Aereas Costarricenses, Nicaraguense de Aviacion, TACA de Honduras S.A., and TACA International Airlines - signed an alliance agreement last month proposing to launch code-share services between the U.S. and Central America and other cooperative programs, beginning Nov. 1 (DAILY, June 28). "Not content with operating 68% of the U.S.

Staff
Continental Express revenue passenger miles increased 11.7% last month to 78.3 million, compared with 70.1 million in June 1995. Capacity rose 9.4% to 143.5 million available seat miles from 131.2 million. The load factor climbed 1.1 percentage points to 54.6% from 53.5%.

Staff
Emery Worldwide Airlines is seeking a one-year renewal of its authority to wet-lease DC-8-73 aircraft to Turkish Airlines for two weekly scheduled roundtrip flights between New York and Istanbul, with a technical stop at Shannon.

Staff
Cape Smythe Air Service, Barrow, Alaska, acquired its fourth Piper T- 1040, a used aircraft, from Meridian Jet Prop, Inc., Meridian said. The aircraft had previously been operated by Canadian airline Air Labrador of Goose Bay, Newfoundland. Meridian remarkets used turboprops, including de Havilland Dash 7s and Twin Otters, Embraer Brasilias and Bandeirantes and Fairchild Metro IIIs.

Staff
Alaska Air Group, Inc., generated $18 million in second quarter profits, or $0.88 per share on a fully diluted basis. The profit, a record for the carrier in the period, compares with $7 million, or $0.48 per share, in the same 1995 quarter. The company's operating income rose 15.05% to $416.7 million, while its operating income grew 62.04% to $39.7 million. By contrast, operating expenses rose only 11.6% to $377 million.

Staff
Kiwi's traffic jumped 34% in June to 120.9 million revenue passenger miles from 90 million in June of last year on 12% more capacity. The load factor rose 10 percentage points to 58%, with available seat miles totaling 208.1 million. Traffic for the second quarter rose 41% to 406.5 million RPMs on 21% more capacity, or 668.1 million ASMs. The load factor rose nine points to 61%. Kiwi carried 174,400 passengers in June and 581,400 in the second quarter.

Staff
American Eagle's four regional carriers logged an 0.2% increase in traffic last month, flying 228.6 million revenue passenger miles, compared with 228.3 million in June 1995. The traffic increase was recorded despite a 23.3% decline in Flagship Airlines' RPMs to 55.4 million. System capacity dropped 5.3% to 364.5 million available seat miles from 384.9 million. The load factor increased 3.4 percentage points to 62.7% from 59.3%, and enplanements were up 0.5% to nearly 1.09 million.

Staff
The state of Hawaii is urging DOT to renew Continental Micronesia's U.S.-Philippines service authority. Currently providing two weekly Honolulu-Guam-Manila roundtrip flights and five weekly Guam-Manila flights, the carrier has requested allocation of three additional combination frequencies that are available as of Oct. 1 for service to the Philippines via Honolulu, Guam and Saipan. These services provide important benefits to the traveling and shipping public, as well as Hawaii, said the state.

Staff
Travel Industry Association has selected Oklahoma Travel and Tourism Division Director Kathleen Marks as its 1996 state travel director of the year. The award is based on votes by fellow state travel directors. While Marks was state travel director, Oklahoma adopted a new theme, "Oklahoma. Native America," which became the guiding principle of a tourism campaign. A poll of out-of-state residents showed that before the campaign, 98% of respondents had no image of Oklahoma, which improved by 42% afterward .

Staff
WestJet Airlines of Canada ordered two 737 hushkits, which will enable it to operate the aircraft under Canadian noise rules, said Avaero, the Safety Harbor, Fla.-based manufacturer.

Staff
British Airways will move its Latin American operations from London Heathrow to Gatwick next spring. The switch is the latest in a series of systematic shifts of lower-yield, long-haul services to Gatwick, which is less crowded, so BA can add flights to Heathrow later. A spokesman for the carrier said the moves, planned for a year, are in no way tied to the proposed BA-American alliance. The carrier's East and Central African flights were transferred to Gatwick in March.

Staff
Air China Chairman Yin Wenlong's current week-long visit to Taiwan is fueling speculation that the Taiwan government will permit direct flights between Taiwan and China before Hong Kong reverts to Chinese control next July. Yin's agenda in Taipei includes talks with officials of the island's airlines on technical issues, including ticketing and coordinating transit flights.

Staff
Netherlands industrial firm Stork N.V. said yesterday it will acquire Fokker Aviation, the surviving services and components businesses of Fokker Aircraft, for 302.5 million guilders (about US$178.5 million). Terming the acquisition a "logical extension" of its businesses, Stork said its takeover agreement requires it to "provide the maximum possible support in the event of any decision to recommence Fokker aircraft production," something it would do anyway for the sake of the service business it is acquiring.

Staff
TWA turned in a strong second quarter financial performance with net income of $25.3 million, up from $5.17 million in second quarter 1995, on a 12.35% increase in revenues to $966.8 million. "Our fundamentals are quite strong and we continue to be on plan," said TWA President Jeffrey Erickson, who commented that the jump in profits was propelled by increased traffic as well as revenue. He said he is "a little bit disappointed," however, by an increase in unit costs to 8.71 cents per available seat mile from 8.2 cents a year ago.

Staff
Tracor Flight Systems Inc. will join MD-95 wing halves under an initial $30 million contract from the developer of the aircraft, Douglas Aircraft Co. The Tracor Inc. subsidiary's Aircraft Systems Div., based in Mojave, Calif., said it expects the contract to create more than 100 new jobs in the Palmdale-Lancaster area. Prospects for the MD-95 became less certain in May and June when Douglas's only customer to date, ValuJet, sustained the Flight 592 crash and suspended operations.

Staff
American Society of Travel Agents and MasterCard International will hold an Internet training seminar in Huntington Beach, Calif., Aug. 23. The seminar is free for ASTA members and costs $79 for non-members. In addition, ASTA said the Interactive Travel Agent Seminar, also sponsored by MasterCard, will be held at the Seattle Airport Hilton Oct. 30 and at the Boston Back Bay Hilton Nov. 21.

Staff
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals June 1995 - May 1996 Total Total Cost Gallons (Dollars) 1995 June Domestic 1,064,472,450 568,783,693 International 379,558,526 228,409,020 System Total 1,444,030,976 797,192,713 July

Staff
FedEx formally launched FedEx interNetShip(SM) this week as "the first automated shipping transaction available on the Internet." U.S. customers with a FedEx account number can now use any personal computer connected to the Internet and a laser printer to complete their entire shipping function directly from the company's home page (http:www.fedex.com). Billing information is uploaded automatically at the end of the shipping process. FedEx plans to offer the service internationally in the future, FedEx said. The company will add a U.S.

Staff
A bill (H.R.969) that would ban smoking on all flights into and out of the country threatens U.S. carriers "because it raises the possibility of reciprocal assertions by other nations for retaliatory or other reasons," an attorney for the International Airline Coalition on the Rule of Law told the House Transportation aviation subcommittee this week. Introduced by Rep. James Oberstar (D-Minn.) in February, the bill would require DOT to issue regulations requiring U.S. and foreign air carriers to prohibit smoking on flights between U.S. and foreign points.

Staff
Vanguard Airlines, calling itself the airline that is "liberating the Midwest" from high fares, plans to begin service from Wichita to Chicago Midway and add a fourth daily flight to Dallas/Fort Worth from Wichita Aug. 9. Fares to DFW start at $39 one way, and to Chicago $49. Vanguard operates 737s.

Staff
American Trans Air's revenue passenger miles increased in June to 770.3 million, 7.1% more than in the same month last year, on 16.9% more capacity. An increase to 1.2 billion available seat miles forced load factor down 5.9 percentage points to 65.4%, however. The airline carried 474,939 passengers during the month. For the first six months of 1996, RPMs increased 9.9% to 4.8 billion and ASMs 12.2% to 6.9 billion, but the load factor fell 1.5 points to 69%.

Staff
Shangri-La Hotels&Resorts has opened the Rasa Ria Resort, set in 400 acres of Borneo jungle. The resort, together with the Dalit Bay Golf and Country Club, constitute a $60 million development. Seasonal activities include white water rafting, cycling, horseback riding and hiking. The resort is bordered by the Tambalang and Mengkabong rivers, and 64 acres of the grounds are reserved as a sanctuary for wildlife, including orangutans. The resort is 37 miles north of Kota Kinabalu in Sabah, Malaysia, which receives air service from Hong Kong and Singapore.

Staff
America West named Nancy Gore senior director of investor relations. Gore, who came from Magellan Health Services in Atlanta, worked previously in investor relations positions at USAir and Rolls-Royce.

Staff
The former DOT inspector general said yesterday that concern expressed by her office last February about the safety of ValuJet was leaked to the carrier, and she was "astonished" when questioned by a top aide to the DOT secretary about the IG's interest in the carrier. Former IG Mary Schiavo told the Senate Commerce Committee that she suspects someone in FAA "leaked" to the airline that her office was "snooping around." Schiavo said she then was questioned by Ann Bormolini, former chief of staff to DOT Secretary Federico Pena.