Aviation Daily

Staff
McDonnell Douglas DC-9 and MD-80 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 DC-9-30 Continental Northwest TWA Number of Aircraft Operated 31 77 35 Total Fleet Operations Departures 207 390 190 Block Hours 278 630 304

Staff
AeroCorp and Air France have signed an agreement to market AvAero 737 hushkits in Europe, Africa and the Middle East. Air France also will install the kits on its 737 fleet "when required," according to Whitehall Corp., parent of AeroCorp. Air France Industries is a major airline and third-party maintenance provider in Europe.

Staff
It is widely believed that the proposed rule change is based only on the political whims of DOT Secretary Federico Pea and that, as Raytheon Aircraft commented, "The only justification that can be ascertained from the NPRM and related meetings and publicity is...because of public perception and political reasons." In a letter this week to President Clinton, Metro Credit President Jim Walker said, "In the face of media frenzy, your administration has effectively offered up the 19-passenger commuter industry as the sacrificial lamb."

Staff
Bombardier selected Dowty Aerospace Propellers of Gloucester, England, to supply the propeller system for the new de Havilland Dash 8 Series 400 aircraft, Bombardier Aerospace Group - North America announced. The company formally launched the 70-passenger, 350-knot aircraft on June 12.

Staff
House Committee on Small Business will conduct a hearing on the effects of the airline commission cap on travel agents at 10 a.m. July 12 in 2359 Rayburn. Three of the six witnesses will be members of the American Society of Travel Agents, ASTA said, including ASTA President Jeanne Epping.

Staff
Alaska Air Group subsidiary Horizon Air today will begin jet service between Seattle and Calgary, Canada, becoming the first carrier serving the Seattle/ Tacoma Airport to start new service to Canada since the new liberalized U.S.-Canada agreement was signed, the airline said. The carrier will operate three daily roundtrips - early morning, midday and afternoon/early evening - using 62-seat Fokker F-28 twin-engine jets. Travel time is one hour, 25 minutes. Ceremonies noting the occasion are scheduled at Seattle/Tacoma Airport today.

Staff
The European Commission is continuing its analysis of the Swissair/Sabena investment deal as the Belgian carrier and its employees approach a break point in their negotiations on contract changes needed for the company cost-cutting plans. The investment agreement, by which Swissair would purchase 49.5% of Sabena, took months of negotiations involving the two airlines and the Belgian government, and it was submitted to the commission for clearance on May 12.

Staff
USAir Shuttle is offering a two-for-one special for weekend travel between tomorrow and Sept. 4. Passengers traveling together will pay a total of $163 roundtrip instead of the normal $72 one-way, per-person fare on Saturdays and Sundays. The Shuttle operates from Boston Logan and Washington National to New York LaGuardia.

Staff
Final rules issued by the Pension Benefit Guaranty Corp. require 4 million workers and retirees to receive notices from employers about the funding levels of underfunded pension plans. The Retirement Protection Act, which became law in December, requires companies with plans less than 90% funded to provide an annual explanation of their plans and limits to PBGC's guarantees. About 1,500 companies with large plans will have to send out the information this year, PBGC said. The pension reform law also accelerates funding for underfunded plans.

Staff
Credit-watcher Moody's Investor's Service assigned cautious but acceptable counterparty ratings to American, Delta and United yesterday, suggesting that while all three carriers are exposed to risk from dealing in derivatives, they also have adequate controls in place to police their use. American was rated Baa2 for how it handles its dealings in derivatives, while Delta garnered a Ba1 rating and United a Baa3.

Staff
Southwest Airlines Chairman Herb Kelleher this week squashed rampant speculation that he is considering moving into expensive Denver Airport. Southwest has no intention of beginning service to Denver, and the rumor probably grew out of a recent visit by Denver Aviation Manager Jim DeLong, who was in Dallas for another purpose, Kelleher said Tuesday in Dallas at Southwest's first media day. Southwest will focus on broadening its presence in the Midwest, however.

Staff
FAA Administrator David Hinson today will commission the first Voice Switching and Control System for operational use. The commissioning will take place at the Auburn, Wash., air route traffic control center.

Staff
Northern Star (Midway Connection) and Empire Airlines are withdrawing from participation in the Airlines Reporting Corp., ARC said this week. ARC said it has been advised of Empire's intent to voluntarily cease scheduled passenger service after today. The cessation affects only scheduled service. Northern Star also intends to cease scheduled operations today. ARC will continue processing Empire transactions through July 16 and Northern Star transactions through July 23.

Staff
Kiwi International Air Lines launched a new ad campaign this week, built on the theme "It's A Wonderful Flight," on television, radio and in the print media. Randy Greenburg, VP-sales and marketing, said the commercials are not the "pompous puff" heard from the major carriers. "They're confident and aggressive and use a comedic twist to underscore Kiwi's benefits and value to the customer." The commercials were created by Gianettino&Meredith, Short Hills, N.J.

Staff
Economic impact on 19-passenger-aircraft operators of raising Part 135 aircraft and operations to Part 121 levels was "grossly" underestimated, according to comments on Notice of Proposed Rulemaking 95-5 submitted by Fairchild Aircraft. FAA estimated in the rulemaking that the total cost to the regional-airline industry would be $275 million over the next 10 years. Its own analysis, Fairchild said, shows that the cost to the Metro fleet alone would be nearly $264.6 million during the same period.

Staff
New Regional Aircraft Orders And Options April 1995 Firm Orders Options Carrier No. Type No. Type Engines Mesa Air Group 25 DHC-8-200 - - PW123 Nordeste 2 Fokker 50 - - PW125B Rio-Sul 1 Fokker 50 - - PW125B Orders - Last 12 Months - Options

Staff
Guatemalan carrier Lineas Aereas Mayas (LAMSA) is seeking renewal of its authority to operate non-scheduled cargo service between Guatemala City and Miami. The carrier currently operates three roundtrips a week using wet-leased aircraft from Millon Air. LAMSA also operates all-cargo service between Guatemala and the co-terminal points Fort Lauderdale and Brownsville and Houston, Texas. (Docket 50416)

Staff
Rep. Jim Lightfoot (R-Iowa) said yesterday he plans to join with House Transportation aviation subcommittee Chairman John Duncan (R-Tenn.) to introduce FAA reform legislation that would restore FAA to independent agency status. Lightfoot currently is sponsoring an FAA reform bill (S.1392), and Duncan has been considering legislation similar in many respects to Lightfoot's bill (DAILY, June 14).

Staff
Frontier Airlines will launch service from Denver to Chicago Midway, Kansas City, Phoenix and Salt Lake City in August. The new flights, part of Frontier's efforts to fill gaps left by the termination of Continental service, will be operated with 108-seat 737-200s. President Sam Addoms said Frontier will add service to other high-density markets as it takes on additional aircraft. Startup dates and fares will be announced in the future.

Staff
Air Transport Association, in cooperation with the American Association of Airport Executives, has produced 30-second television ads on the impact of the federal aviation fuel tax and the airline industry's celebration of flying 10 billion passengers. The videos are running this month on the CNN Airport Network. Airlines were exempted from the 4.3-cents-per-gallon tax during its first two years but will have to pay it Oct. 1 unless Congress approves further relief.

Staff
Alaska Airlines has appointed Dennis Hamel staff VP-employee services, as of July 1, in charge of recruitment, training, employee benefits and employee relations. He replaces Timothy Metcalf, who is leaving the company as the carrier continues to realign responsibilities in the division to focus on employee services.

Staff
Helicopter Association International said it has available a free time- savings parts inventory module that interfaces automatically with its maintenance malfunction information reporting system. The inventory module, programmed in Microsoft FoxPro for Windows, maintains a "complete computerized record of an operations' parts inventory," HAI said.

Staff
Continental and its pilots, which have operated without a contract since 1983, reached a tentative agreement on a new contract yesterday, ending a two-year battle over wage increases. National Mediation Board Chairman Ernie DuBester announced the settlement, which is subject to ratification by union members. Mark Benton, secretary-treasurer of the Independent Association of Continental Pilots, said it would take effect July 1 and last two years, and it appears to provide a 20% wage increase over the two years.

Staff
America West will invest $5 million in the Arizona Diamondbacks major league baseball team, taking a 5% equity stake in the AZPB Limited Partnership, the owner of the baseball franchise. The airline has signed a 10-year marketing agreement under which it will become the team's official airline, providing all charter services when the club starts playing in 1998, other travel purchases, aircraft advertising and exclusive airline sponsorship in all media. America West said each party is expected to reap $20 million from the joint venture.

Staff
Consumer advocates and industry observers are pressing DOT to reconsider its proposed rulemaking to exclude mechanical delays and cancellations from on-time data in its Air Travel Consumer Report.