Aviation Daily

Staff
Aviation groups are supporting a proposal backed by Rep. Tom DeLay (R- Texas) to reallocate $100 million in big-city transit operating assistance to the Airport Improvement Program, bringing the House AIP recommendation to $1.7 billion.DeLay is expected to offer the amendment today during Appropriations Committee consideration.

Staff
Three Alaskan carriers have joined forces to oppose Alaska Island Air's (AIA) bid for an exemption from the 45 day review period to restart service after having its Part 135 certificate suspended by FAA. The agency had suspended the carrier's certificate for violating Federal Aviation Regulations.

Staff
Boeing 747 Aircraft Operating Costs Fourth Quarter 1994 Dollars Per Block Hour B747-100 Continental Northwest TWA Crew Cost $578 $1,073 $890 Fuel&Oil 2,129 2,256 2,387 Rentals 620 595 202 Insurance 7 25 3

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Cathay Pacific Airways wants the air services agreement between Hong Kong and Australia to be limited to operations within that market, avoiding the "unnecessary complications" of fifth-freedom issues.

Staff
Boeing 747 Systemwide Aircraft Utilization Per Day Fourth Quarter 1994 B747-100 Continental Northwest TWA Number of Aircraft Operated 2 23 9 Total Fleet Operations Departures 2 38 13 Block Hours 18 272 88

Staff
Taiwan's Civil Aeronautics Administration, ignoring complaints from the island's domestic airlines, says it will implement a system of special landing fees at nearly all Taiwan airports on Aug. 1. The fee, varying according to the size of the aircraft, will be about US$368 for a Boeing 747. A CAA spokesman said the more than US$19.5 million the new tax is expected to generate every year will be used to combat noise pollution near the airports.

Staff
European Commission will investigate whether the joint venture formed by British Aerospace, Aerospatiale of France and Alenia of Italy - aimed at cooperation in marketing, sales and support of regional aircraft - will satisfy European Union competition rules.The decision represents a setback to the joint venture, which envisions eventual development of a new aircraft.

Staff
ValuJet plans to suspend its newly launched Washington Dulles-Montreal service July 11 for lack of traffic. "Whether we were affected by cultural, currency or language differences, we clearly were not able to generate enough business to operate profitably in this market," President Lewis Jordan said yesterday. ValuJet flies two daily roundtrips, and customers holding confirmed reservations after July 11 can receive a refund or fly on Air Canada or USAir, which serve Montreal from Washington National.

Staff
Nielsen AIR, a joint effort launched this year by Nielsen Media Research and AIR Marketing Services, Inc., will soon make available to airports, advertisers and airlines the results of a passenger survey on airport and inflight advertising. The company surveyed 3,000 passengers and visitors at Chicago O'Hare, Dallas/Fort Worth, Newark, Minneapolis/St. Paul, Portland and 14 other major U.S. airports.

Staff
FAA, under political pressure, failed to do its homework last winter when it rushed to issue a proposed rule within 100 days to bring safety requirements for smaller turboprop aircraft up to the standards of larger air transports, according to industry comments filed this week with the agency.

Staff
British Airways estimates that its 747 fleet will use 50,000 fewer metric tons of fuel a year, saving $12.1 million, through use of the Automatic Dependence Surveillance (ADS) system, otherwise known as the Future Air Navigation System. With other associated benefits, the carrier believes it can save $32.23 million a year with ADS.

Staff
Air Canada is offering an introductory fare of US$99 roundtrip to publicize the launch of its daily Montreal-Atlanta service Tuesday, July 4. The coach fare, which is available until July 17 with a three-day advance purchase, is good for travel until Sept. 30. The fare requires a minimum stay of one Saturday night and allows a stay of 30 days. Members of Air Canada's Aeroplan frequent flyer program and partner Continental's OnePass program will receive triple mileage on Air Canada flights in the Montreal- Atlanta market until Aug. 31.

Staff
Sabre Travel Information Network has expanded its Bargain Finder Plus product to process international as well as domestic itineraries. The product had been available only for U.S. and Canadian city-pairs. Bargain Finder Plus automates the search for lower airfares, increasing agent productivity by reducing time in locating a lower fare. The product, which is available to Sabre subscribers in the U.S., Canada, Puerto Rico, the U.S. Virgin Islands, Bermuda, the Bahamas and countries in the Caribbean, is host-based and does not require additional software.

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
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
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
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.

Staff
Aeromexpress has applied for renewal its authority to operate charter cargo service between Mexico and the U.S.

Staff
TWA's creditors have accepted the struggling airline's proposed capital restructuring plan, all but guaranteeing its second Chapter 11 bankruptcy filing in less than three and a half years. TWA said yesterday that, subject to final tabulation, it received the votes needed from its creditors to implement its proposed restructuring through the filing of a prepackaged plan of reorganization.

Staff
After reviewing the Illinois Department of Transportation's (IDOT) roadway and airport access plan for the proposed Peotone Airport, the Air Transport Association has asked the state to answer a series of questions on the project, not all of them related to roadways and access. "How does the state plan to fund the proposed $1.9 million airport, in light of the position of 22 airlines that carry more than 95% of the nation's passengers and freight, that they do not intend to serve - or fund - the proposed Peotone Airport?" ATA asked.

Staff
DOT has tentatively approved the transfer of Evergreen International Airlines' U.S.-China all-cargo authority to Federal Express. Agreeing in February to acquire the authority, including scheduled service to Beijing, Shanghai and other points in China (DAILY, Feb. 27), FedEx plans service that maximizes all-cargo opportunities available under the U.S.-China aviation agreement, from small-package, door-to-door operations to general services for consolidated shipments using 747 freighter aircraft.

Staff
American yesterday offered - and other carriers were expected to follow its lead - to waive any reticketing service charge for passengers traveling to, from or within California who want to cancel or delay travel because of a threat attributed to the "Unabomber" targeting airlines flying from Los Angeles Airport. American said that because of security concerns, the waiver will be available to any passenger holding confirmed reservations until midnight July 7.