Aviation Daily

Staff
CIT Group has leased a 737-200 to AirTran Airways of Orlando. The aircraft was operated by Taesa Airlines.

Staff
Delta says Sky, its inflight magazine, is more popular with advertisers than any other, with $33.5 million annually in advertising revenue. United's Hemisphere and American's American Way bring in $31.2 million and $29.1 million, respectively, according to Delta.

Staff
Major airports in the Eastern U.S. opened for business yesterday after closing for two straight days, enabling airlines to begin a limited resumption of operations starting around noon. Major carriers were expecting near-normal operations by mid-day today as Baltimore, Boston, New York LaGuardia and Kennedy, Newark, Richmond, Hartford, Philadelphia and Washington National and Dulles resumed operations.

Staff
Malaysia Airlines, as expected, selected Boeing for an air transport order - 15 777-200s and -300s and 10 747-400s, valued at $4 billion (DAILY, Dec. 22). The carrier took options on three more 747s and two more 777s. Deliveries are to begin next year and continue through 2001. The 777s will be powered by Rolls-Royce engines and the 747s by Pratt&Whitney turbofans. The selection followed what Boeing Commercial President Ron Woodard called "several months of intense evaluation." Malaysia now operates 15 747s and 50 737s.

Staff
National Air Transportation Association President James Coyne asked FAA administrator David Hinson to extend beyond March 19 the public comment period on the agency's proposed rulemaking on flight and duty time for airline pilots. "It took the FAA significant time to develop the notice, and the industry should be given similar courtesy by extending the comment period by at least another 90 days," Coyne said.

Staff
Western Pacific Airlines flew 18.9% more traffic in the fourth quarter of 1995 than in the third quarter, 257.1 million revenue passenger miles compared with 216.2 million. Available seat miles increased 33.6% in the fourth quarter, however, to 428.1 million from 320.5 million, so the load factor dipped to 60.1% from 67.5%. WestPac carried 333,397 passengers in the fourth quarter, up from 287,728 in the third. Tom DeNardin, VP-sales and marketing, said the carrier is pleased with the results, particularly given that its service was new in 1995.

Staff
United Airlines said yesterday it ordered two 747-400s for delivery in 1997 as part of a plan announced last April to replace older aircraft that have higher operating costs. Douglas Hacker, the airline's senior VP- finance, said the new order will increase the number of 747-400s in its fleet to 28 - the carrier operates 24 of them now, two more are scheduled for delivery this year. United is scheduled to take delivery this year of eight 777- 200s, seven A320-200s, four 757s and the two 747s, for a total of 21 aircraft.

Staff
Delta's systemwide traffic slipped 0.9% last month compared with December 1994 on 1.1% less capacity. The carrier flew 3.2% more domestic revenue passenger miles for the month on 2.5% more capacity, but international RPMs fell 14.4% on 13.4% less capacity. Systemwide load factor for the month was 63.5%, up 0.1 points. For the year 1995, Delta's systemwide traffic was off 1.4% on a 0.1% decline in capacity. RPMs were down 0.4% on domestic routes and 4.2% on international. Domestic capacity for the year was up 1.9% while international capacity was down 6.1%.

Staff
TWA's December traffic increased 1.2% last month over that of December 1994 despite a 1.1% falloff in capacity. Domestic traffic rose 1.7% while international traffic fell 0.7%. Domestic capacity was up 1.1% and international capacity fell 8.4%. Overall load factor was up 1.4 points, to 62.2%. For the year, TWA's traffic was flat compared with 1994's. A 2% rise in domestic revenue passenger miles was offset by a 4.9% drop in international RPMs.

Staff
Reno Air reported a 24% traffic increase in the fourth quarter over the same period in 1994, flying 521.4 million revenue passenger miles, up from 421 million. Available seat miles rose 11%, to 828.7 million from 745.6 million, for a load factor of 63%, up from 56.5%. Reno flew 962,151 passengers during the quarter. For the month of December, Reno flew 183 million RPMs, up from 156.8 million in December 1994, and 287 million ASMs, up from 270.7 million. The load factor was 63.8%, an increase of 5.9 points.

Staff
Summary of U.S. Major Carriers International Traffic Second Quarter 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 3,547 10.47 2,195 7,785,460 Atlantic 954 8.37 4,131 3,940,690 Latin 2,502 11.68 1,337 3,346,435

Staff
China is likely to decide in March which Western airframe manufacturer to invite to join the Chinese- Korean small regional jetliner development program. Chinese aviation officials hinted recently in the official press about making a choice - presumed to be between Boeing and Airbus Industrie - by that time. Last week, Boeing Commercial President Ron Woodard commented that "the last input I have says it is possible this winter that they will do that [make the selection]."

Staff
Rapidly expanding Western Pacific Airlines is considering establishing a Colorado Springs-based commuter operation to serve nearby ski resorts and other feeder markets.WestPac says commuter service should begin by midyear, and it will solicit proposals soon for management of the commuter operations.A spokeswoman said WestPac has made no commitments at this time with another carrier to be a feeder.

Staff
United's traffic grew 1.3% last month compared to December 1994, on 2.2% more capacity. Load factor fell 0.6 points for the month to 67.4%, while the carrier flew 0.4% more passengers. For the year, United's traffic was up 3.3% on 4.2% more capacity. Load factor fell 0.6 points to 70.5%. The airline boarded 6.2% more passengers last year than in 1994. Dec 95 Dec 94 12 Mths 95 12 Mths 94 RPMs 8,954,881,000 8,837,192,000 111,538,412,000 108,018,173,000

Staff
TWA has hired George Aste as staff VP-international affairs in its Washington Government Affairs Office, effective today. Aste will represent TWA in bilateral aviation negotiations. He has been executive VP of consulting firm FPC/Experts Abroad since leaving United, where he headed the International Affairs Department and represented that carrier in bilateral discussions.

Staff
Kiwi International Air Lines founder and former Chief Executive Robert Iverson is back in the business as president of a new consulting group, Turn Key Aviation, which will draw on other former Kiwi executives as well. The Sussex, N.J.-based firm intends to provide a range of services to new- entrant scheduled, charter and cargo carriers, including financing, help in obtaining FAA and DOT certificates, training, operations and maintenance manuals, aircraft leasing, marketing and public relations, flight operations, accounting and system control.

Staff
New owners of Capitol Air Express, which moved from New York to Charlottesville, have applied to DOT to resume operations in March, flying 727s from Charlottesville to Roanoke and Newark.But the application perplexes some at DOT.Listed as president and chief operating officer of Capitol Aviation Group Inc. is Robert Iverson, former Kiwi chief executive, who said Friday he has formed an airline consulting company of a different name and may eventually become involved in yet another airline, this one flying charters (See story on Page 34 of the hard copy of this issue.)

Staff
Continental's traffic fell 9.8% last month, compared with December 1994, on 17% less capacity. The sharp capacity drop helped push the carrier's load factor up 5.1 percentage points to 63.9%, the company's highest December load factor since 1991. Cargo carried was down 30.3%, to 37.5 million revenue ton miles, from 53.9 million revenue ton miles the year before. For the full year, traffic was down 3.8% on 7.4% less capacity. The load factor for 1995 was 65.6%, up from 63.1% in 1994 and an all-time high for Continental.

Staff
Air Canada will eliminate service to Berlin and Vienna next week. "With the recent startup of new services such as Hong Kong, Calgary-Frankfurt and Brussels later this year, we had to re-evaluate the deployment of our aircraft for the summer schedule," said Marcel Forget, manager- international product.

Staff
British Airways has embarked on a two-year, $150 million advertising campaign designed by M&C Saatchi. The premier commercial, the first for BA from its new agency, was broadcast Sunday and will be shown in 133 countries through terrestrial channels and eight satellite stations, including CNN. The campaign also includes print and posters, and it will be carried in movie theaters and on BA's Internet site, which will be unveiled officially this month.

Staff
USAir has appointed Jim Hultquist controller for the airline and USAir Group, pending confirmation by the board, as part of its Resource Management and Reengineering Initiative to restructure financial operations. Hultquist was senior director-taxes, insurance and pension investments. Peter Breiling leads the RMRI project, which has top priority for the finance department this year. He most recently was the divisional controller for corporate and marketing departments.

by Avery Vise
Assuming user funding of FAA eventually resumes, redistribution of that responsibility is shaping up as the most important legislative conflict within the aviation industry this year. Simultaneously, airports may wage a contentious battle over a diminishing pot of federal money, while also fighting for statutory changes that could provide more funds for airports.

Staff
Preliminary data from five Airbus A340 transports flying with ozone, water vapor and temperature measuring equipment suggest that ozone is not being destroyed at the altitudes at which airliners cruise. The aircraft have made more than 2,200 flights, most of them long-haul operations that generate some 200,000 measurements, Airbus says.

Staff
Air Express International said Friday it has added Guam and Saipan to its network and will serve the Pacific islands through an agency agreement with the Clipper Cargo Corp. Clipper is a leading Guam forwarder and, with AEI, will offer services such as air and sea freight, customs clearance, container unpacking, warehousing and distribution.

Staff
United stopped using the automated baggage system at Denver International Airport Dec. 22 except for outbound baggage, United spokesman Tony Molinaro said. During pre-Christmas testing, the entire system was lost because of a software problem, he said. No timeline has been set with BAE Automated Systems, manufacturer of the trouble-prone device, to get the full system up and running, Molinaro said. "We just want to get all the systems working together," Molinaro said. "Each one works on its own, but when you put them together, that's where we have the problems."