Aviation Daily

Staff
KLM made an "urgent" appeal to its pilots Friday to abandon their plan to strike today, and instead accept mediation without preconditions (DAILY, May 26). The Dutch pilots union, VNV, called a strike for 10 a.m.- 4 p.m. today to protest contract changes being pushed by KLM, including an increase in the retirement age for new hires to 60 years of age from the current 55. The strike will ground all Amsterdam Schiphol Airport departures and may delay flights scheduled to land at the KLM hub during the strike period.

Staff
U.S. National Carriers Operating and Net Profit Fourth Quarter 1994 Operating Net Profit/Loss Profit/Loss (000) (000) Fourth Quarter 1994 Alaska $ 833 $ (3,872) Aloha (2,119) (709) American Trans Air (7,205) (5,255)

Staff
Southwest Chairman Herb Kelleher says Southwest can support the FAA reform legislation (H.R.1392) sponsored by Rep. Jim Lightfoot (R-Iowa)."We really like that bill; we can support that bill," Kelleher said at a recent Texas Airport Operators Conference. He argued that FAA independence and off-budget status for the aviation trust fund have a chance in Congress this year, but neither privatization nor corporatization of air traffic control does.

Staff
DOT Administrative Law Judge John Mathias suggested that airlines won something of a pyrrhic victory in their successful claim that Los Angeles failed to adjust fiscal 1994-95 landing fees to reflect actual expenses in the previous year. "Indeed, in view of the proposed upward adjustment of the landing fee in the preliminary reconciliation, it appears the airlines have been better off with the maintenance of the status quo." Briefs on the judge's recommended decision are due today, and DOT must decide on the reasonableness of the landing fee by June 30.

Staff
Sabre computer reservations system subscribers will be able to accommodate the Airlines Reporting Corp.'s (ARC) Service Fee Processing program scheduled for release on June 5, Sabre Travel Information Network said yesterday. Sabre's product development team has completed the necessary coding and testing to allow its subscribers to include a service fee category on a customer invoice.

Staff
Mexicana Airlines had net earnings of 124.8 million new pesos (US$20.5 million) and an operating profit of 28.3 million new pesos (US$4.7 million) for the first four months of 1995, the first time since 1989 that it has been profitable in the January-April period. Mexicana was in the black during the first quarter of 1995, but detailed results were not available.

Staff
United's more than 1,0000 employees in Japan have agreed to invest in the carrier in exchange for stock. United negotiated deals with U.K. employees in April and its Vancouver-based workers in March (DAILY, April 5).

Staff
Alitalia appointed Bruno Scaldaferri manager-sales and marketing, North America. Aloha promoted Henry Arii to VP-safety. Swissair appointed Stephan Egli VP-product development and distribution.

Staff
Continental will launch non-smoking flights to the U.K. with its July 19 inauguration of New York-Manchester service. The carrier also will offer passengers a choice of smoking or non-smoking flights when it adds a seasonal second daily Newark-Frankfurt flight. Continental Senior VP Barry Simon said the demand for smoking seats has "greatly decreased" between the U.S. and London recently. "In light of this trend and feedback we have received from our customers and employees, we will provide non-smoking service on 52 of our 122 weekly departures between the U.S.

DOT

Staff
- Granted orally an exemption to Gulf Air Company to renew its authority to offer scheduled service from Abu Dhabi, Bahrain, Oman and Qatar via Cyprus to New York until Feb. 8...Approved an IATA agreement to increase children's fares for excursion and group inclusive tour travel within Africa from 50% to 67% of the adult fare...Approved an IATA agreement to revise Hong Kong-Japan first-class fares to meet market requirements by increasing roundtrip fares from Hong Kong to Japan by 10% and setting the one-way levels at 52.5% of the increased roundtrip levels.

Staff
On the plus side: The captain of a United 767ER called maintenance at New York Kennedy to report a fuel filter failure during pre-flight. When the work was done in 32 minutes instead of the usual hour and a half, the pilot thanked the maintenance crew. "We own 20% of this airline now," came the reply, "so we'd better make it work."

Staff
On the minus side: United's Association of Flight Attendants unit, trying to make the case that the carrier's development of foreign domiciles is a slap in the face, is distributing a pamphlet that pictures a female flight attendant being backhanded by a white-shirted male. The flight attendants, who stayed out of the employee buyout because of the foreign bases, are using the slogan, "We just work here."

Staff
U.S. National Carriers Operating and Net Profit The Year 1994 Operating Net Profit/Loss Profit/Loss (000) (000) The Year 1994 Alaska $ 62,118 $ 22,571 Aloha (475) 560 American Trans Air 8,851 3,486

Staff
Air Transport Association President Carol Hallett encouraged airport associations last week to fight airport revenue diversion actively on behalf of individual airport executives, who may be politically constrained from doing so.

Staff
FAA Technical Center, near Atlantic City, N.J., observed its 15th anniversary May 29 as a leader in research, development, test and evaluation in air traffic control, communications, navigation, airports, aircraft safety and security. The center, which also manages FAA's technology transfer and aviation research grants, operates a fleet of specially equipped aircraft to test new airborne equipment, operational procedures, navigation aids and guidance systems.

Staff
In what may be the final piece of its global alliance puzzle, Lufthansa signed a memorandum of understanding late last week to develop a marketing and operational alliance with South African Airways.

Staff
General Aviation Manufacturers Association (GAMA) elected Edward Bolen senior VP/general counsel. National Business Aircraft Association (NBAA) named William Wagner of Townsend Engineering as treasurer.

Staff
Bauer Aerospace named Lou Auletta general manager of Woodward Governor test equipment business. Diefenbach Elkins promoted Robert Kahn to senior VP in charge of the firm's airline practice. O'Brien-Kreitzberg promoted Clay Baldwin to executive VP. Precision Standard named Carsten Birkebaek managing director of Pemco World Air Services Unit in Copenhagen. TNT Express Worldwide appointed George Wilton president of TNT Mailfast.

Staff
British Airways is talking to its labor unions in the U.K. about doing away with national contract negotiations and using a system of localized bargaining. BA wants to give its managers flexibility to negotiate wages and work rules that reflect local conditions more closely.

Staff
National Mediation Board, back to a full complement with the recent swearing-in of Kenneth Hipp, is expected to rule shortly on the AMR Eagle single-transportation-system case. The NMB is expected to find that the four wholly owned Eagle carriers - Executive, Flagship, Simmons and Wings West, which are represented by three pilot unions - constitute a single system, based on common control as well as integrated operations, management, marketing, labor relations and other criteria used in previous findings.

Staff
Senate adopted by voice vote yesterday a measure expressing the "sense of the Senate" that the essential air service program receive a sufficient level of funding to continue to provide air service to small rural communities that qualify for assistance. The resolution, adopted as an amendment to the budget resolution (S.Con.Res.13), has no legal effect, although it does put the Senate on record as supporting EAS. In fact, the budget resolution still technically assumes that EAS will be terminated as part of a package of cuts within transportation.

Staff
KLM will be forced to cancel 20 intra-European flights and one intercontinental service if pilots strike Tuesday, as threatened, but the airline believes it will be able to accommodate on alternative KLM flights more than 5,000 of the 7,000 passengers booked to depart during the six- hour strike period (DAILY, May 24). KLM has prepared a rescheduled flight plan in anticipation of the strike, expected May 30 from 10 a.m. to 4 p.m. local time.

Staff
FAA said it will rule by July 9 on an application from the Port Authority of New York and New Jersey to collect $663 million in passenger facility charges for planning, design and construction of rail projects at New York Kennedy and LaGuardia and Newark airports. The application also seeks to withdraw certain previously approved roadway projects. The largest single project is construction, with $325 million in PFCs, of the remainder of the on-airport portion of the automated guideway transit (AGT) system at Kennedy.

Staff
The chairman and ranking Democrat of the House Government Reform and Oversight Committee told DOT Secretary Federico Pena this week that they find "troubling" their understanding that DOT agreed to end the April round of aviation negotiations with the U.K. "in the face of limited opposition," and agreed not to pursue closure on a mini-deal until the Senate Commerce aviation subcommittee could conduct a hearing on the negotiations. The May 23 letter, from Reps.

Staff
Facing a tight schedule and difficult issues, Sabena's management and unions are meeting to develop a business plan austere enough to return the carrier to profitability as Swissair takes 49.5% ownership of it. Major sacrifices will be required of the work force to meet Sabena's objectives, and the deadline for signing the Swissair-Sabena investment deal is July 31.