Aviation Daily

Staff
Air Canada will inaugurate nonstop service to code-sharing partner United's Denver hub from Toronto and Vancouver Oct. 29. Air Canada will operate two daily flights in both markets with A320 aircraft configured for economy- class and business-class service. The flights, the only nonstops on both routes, go on sale June 7. Under the expanded code-share alliance between the carriers announced earlier this week, Air Canada's code also will appear on United flights from Denver to Calgary (DAILY, June 1).

Staff
Demand for Mexico-Europe service and a lack of aircraft by Aeromexico has prompted Delta and Aeromexico to sign an agreement for third-country code sharing to Madrid and Paris through the U.S. The service will begin July 1, assuming it is approved by the U.S., French and Spanish governments, and will consist of Aeromexico flights from Mexico City to New York and Atlanta that connect to Delta flights to Madrid and Paris. France and Spain, however, have resisted that type of code sharing in the past.

Staff
FFV AvioComp Netherlands BV took over responsibility for maintaining the KLM Cityhopper (KLC) Saab 340B fleet yesterday. FFV, which also maintains aircraft for Air UK and Air France at Amsterdam Schiphol Airport, is replacing KLM subsidiary KLM ERA Helicopters in conducting routine maintenance activities on the 340s, which KLC uses for short-haul regional service. The spinoff of the maintenance is part of KLM's plans to transfer all the activities of its helicopter subsidiary to other parties, according to KLM.

Staff
The Senate ultimately approved a modified version of the "sense of the Senate" resolution on essential air service, effectively gutting the measure (DAILY, May 26). The original proposed amendment to the budget resolution, sponsored by Sen. Max Baucus (D-Mont.), stated the sense of the Senate that essential air service program receive a sufficient level of funding to continue to provide air service to small rural communities that qualify for assistance.

Staff
U.S. District Court of Appeals has denied a petition for review requested by Sun Country Airlines of FAA's flight attendant duty-time rules. The rules to limit duty time were scheduled to go into effect March 1, but were stayed by the court in February pending a decision on the petition (DAILY, Feb. 21). Sun Country, a charter operator, petitioned the court, saying FAA's rules were not based on a cost/benefit analysis, and the duty-time limits would hurt the carrier financially.

Staff
FAA, ordered by Congress to in the 1978 Airline Deregulation Act to make sure safety was not compromised after the former Civil Aeronautics Board was abolished, again has postponed a proposed rulemaking to codify certification and operations specifications for commercial aviation. The agency will extend until June 1, 1996, a special federal aviation regulation (SFAR) it first issued May 28, 1985, which established the requirements. FAA intends to fold SFAR 38-2 into a new Part 119.

Staff
British Airways is offering special promotional fares from its 19 U.S. gateway cities to 58 destinations in Europe and the Middle East that include a free stopover in London. The fares, based on the lowest transatlantic peak season excursion price, will be sold through June 14 and are good for travel during the month with no advance purchase requirement. BA also will offer "stopover" fares for travel in July or August to most destinations at a slightly higher price.

Staff
The U.S.-U.K. talks got off to a rocky start yesterday with U.K. officials refusing to give a timeline for the conclusion of Phase 2 of the negotiations, industry officials said. Slated to meet until tomorrow, the two sides are expected to wrap up the Phase 1 agreement - the so-called mini-deal, which includes Chicago-London Heathrow service for United.

Staff
Cargo traffic carried by U.S. airlines grew by 7.4% in April from the same month last year, the Air Transport Association said. ATA considers the increase disappointing, given recent double-digit increases. Total cargo traffic - mail and freight - was up 16.7% in January, 11.1% in February and 9.1% in March.

Staff
DOT has dismissed Royal Air Lines application to start up service as a regional carrier in the northeast on U.S. Despite repeated requests for pertinent information between September 1994 and April 1995, the department said the Royal's "application remains materially deficient." One key area lacking in the material furnished by Royal was "the company's plans for financing the operations proposed in its application," said DOT.

Staff
FAA has scheduled two more public meetings this month on the agency's proposed rule to upgrade commuter operations and certification standards. A meeting will be held at 9 a.m. June 14 at McCormick Place, East Building, 2301 South Lake Shore Drive in Chicago. Another will be held at 9 a.m. June 21 at the Hacienda Hotel, 3950 Las Vegas Blvd. South in Las Vegas, Nev. Direct requests to present a statement or questions regarding logistics to Linda Williams, FAA Office of Rulemaking, telephone 202-267- 9685, fax 202-267-5075.

Staff
U.S. Major Carriers Productivity In RPMs And ASMs Per Employee Fourth Quarter 1994 Revenue Available Passenger Seat Miles Miles Airline (000) (000) America West 2,872,281 4,621,311 American 25,034,788 38,236,441 Continental 9,596,794 15,813,914

Staff
Port Authority of New York and New Jersey will not continue plans to connect LaGuardia and Kennedy airports, a port authority source told The DAILY. Although the authority has abandoned the idea of connecting the two airports, it will continue to study connections from each airport to other modes of transportation in the region, as well as a line from Manhattan to LaGuardia. The port authority applied earlier this year for the right to collect $663 million in passenger facility charges to pay for the project, drawing fierce opposition from the airlines (DAILY, May 26).

Staff
United Express carrier Atlantic Coast Airlines will expand service at its and United's busiest East Coast cities in July. ACA plans to begin service between Boston Logan and New York Kennedy July 1, and will inaugurate new service July 16 from Washington Dulles to Reading, Pa., and Elmira, N.Y. It will operate five roundtrips every weekday between Boston and New York, and offer weekend flights, with British Aerospace J41s. As of July 1, ACA will be operating 23 flights from Boston to four markets - Washington Dulles, New York Kennedy, Portland, and Newburgh, N.Y.

Staff
Gulfstream International of Florida, which has a marketing relationship with United, is not a United Express affiliate, as reported last week (DAILY, May 26).

Staff
China Airlines and Garuda Indonesia have started weekly, all-cargo flights between Taipei, Taiwan, and Jakarta. CAL is operating the service with a 747-200 freighter.

Staff
DOT issued a proposal yesterday to exclude mechanical delays and cancellations from on-time data in its Air Travel Consumer Report. At the same time, the department issued delayed reports for the first three months of the year. In those reports, which include mechanical delays, the average on-time performance for all reporting carriers was 77.3%, with Delta ranking first in January with 78.9%, Northwest in February with 82% and Continental in March at 83.1%.

Staff
Defense Department should retain control of the Global Positioning System for national security reasons but it should drop its current ability, called Selective Availability (SA), by which it can degrade the accuracy of GPS signals to civil users, according to a congressionally mandated report issued yesterday. The U.S. also should offer basic GPS free for all users to forestall foreign competition in a marketplace for GPS products that is "exploding," the report said.

Staff
The European Commission has asked international consulting firm Coopers&Lybrand to assess airport slot allocation policies in the European Union, according to a report in DAILY affiliate Aviation Europe. The company will review the degrees of implementation of EU slot allocation rules and their effectiveness in achieving the EU objective of increased competition. The consultant also will consider the need to modify or improve the basis on which slots are allocated. The study is expected to be completed in September.

Staff
Midway Airlines will begin offering nonstop flights between Bradley Airport in Connecticut and its Raleigh/Durham base June 15, operating three daily flights with Fokker 100 aircraft. On the same day, it will introduce first class on all flights. Midway, the only airline with restrooms exclusively for women, said it offers extra wide leather seats with generous legroom, and hot towels on every flight. Midway serves Orlando, Tampa, West Palm Beach and Fort Lauderdale from Raleigh/Durham.

Staff
Airlines challenging the landing fees at Los Angeles Airport told DOT this week that carriers are entitled to a refund of at least 27 cents of the $1.56 landing fee, plus interest. In a brief to the DOT decisionmaker, the original complaining airlines and the Air Transport Association said that a refund of 27 cents of the fee is based on acceptance of DOT Administrative Law Judge John Mathias's ruling and that the figure would be higher if DOT ultimately agrees with airlines' exceptions to the recommended decision (DAILY, May 25).

Staff
U.S. National Carriers Operating Revenues and Expenses The Year 1994 Operating Operating Revenues Expenses (000) (000) The Year 1994 Alaska $ 1,079,318 $ 1,017,200 Aloha 229,822 230,297 American Trans Air 581,177 572,326

Staff
Western Pacific Airlines today begins service to Chicago Midway, Dallas/Fort Worth and Seattle from Colorado Springs, Colo. The carrier started operations April 28 with nonstop flights to Los Angeles, Las Vegas, Phoenix, Kansas City and Oklahoma City. On May 8, it inaugurated flights to San Francisco. WestPAC, which operates five 737-300s, said more service and aircraft are planned for this summer. As it acquires aircraft, it intends to expand to New York, Houston, Indianapolis, Omaha, Orange County, Portland, San Diego, St. Louis, San Jose and Wichita.

Staff
Ecuadoran carrier SAETA is seeking authority to serve Panama City as an intermediate point on its service to the U.S. SAETA also wants to serve Miami and New York as co-terminal points on its existing U.S. service. The carrier currently operates service between Ecuador and Miami. (Docket 50374)

Staff
Delta is expected to announce, possibly today, that it is expanding its code-share arrangement with Aeromexico beyond U.S.-Mexico service to include a few points in Europe.