Aviation Daily

Staff
Rep. Toby Roth (R-Wis.), chairman of the Travel and Tourism Caucus, has pledged to back a public/private partnership, envisioned by the White House Conference on Travel and Tourism as a replacement for the U.S. Travel and Tourism Administration. Roth said Tuesday he would champion legislation to create the entity to promote the U.S. tourism industry, which he called not only an economic powerhouse but an up-and-coming political powerhouse.

Staff
Canadian Airlines International's pilots have ratified a new 38-month contract that will reduce their salaries 5% but give the pilot group a seat on the airline's board. The airline, which previously said it expects to save C$41 million a year as a result of the contract, said the agreement, when fully implemented, will reduce pilot costs by 24%. According to Canadian, the accord produces significant cost savings.

Staff
KLM denied yesterday it is seeking control of partner Northwest, in which it already holds a 21.5% voting stake. KLM's comment came in response to published reports, including one in The DAILY, which said the Dutch carrier has threatened to sue Northwest over the adoption by the U.S. carrier's board of a proposed shareholder rights plan or poison pill (DAILY, Nov. 1). KLM said its problem with the poison pill proposal, adoption of which will be considered by the Northwest board at its Nov.

Staff
Pleasant Hawaiian Holidays has lowered the age for eligibility in its Makua Club for seniors from 60 to 55 for 1996 travel programs. Benefits include discounts at 45 hotels and condominiums in Hawaii and complimentary room and rental car upgrades.

Staff
Wicat said Jostens Inc., has signed an agreement to transfer ownership of its wholly owned subsidiary, Wicat Systems Inc., to a private investment group headed by Frank Pritt, primary shareholder and chairman of Attachemate Corp. Rohit Patel, president of Wicat, continues in that position, and no changes in current operations are planned, the company said. The agreement also includes the acquisition of Denver-based TTI Inc., a privately held company involved in distance learning technology.

Staff
The split between Boeing and its largest union over the company's policy of awarding production contracts to foreign companies as a strategy for gaining aircraft orders from overseas airlines and governments should have been addressed 20 years ago, according to a banker who specializes in the aerospace and aviation industries. "Boeing has room to negotiate on wages but not on offsets," said Aaron Hollander, managing partner, First Equity Development Inc.

Staff
DOT instituted yesterday a proceeding for the second year of U.S.-Toronto service and made final its selection of Delta and USAir for first-year service. For the second year, the department will select two primary and two backup carriers to operate two daily scheduled combination frequencies each. The service will be available in February 1996. The 1995 U.S.- Canada air agreement provides that new service to Toronto will be phased over a three-year period. During each of the first two years, the U.S.

Staff
Aviation Capital Group said a subsidiary leased a 737-200 formerly operated by Air New Zealand to Ladeco Chilean Airlines, and leases on two DC-9s to TWA were extended. The company said it now owns or manages 32 commercial jet aircraft.

Staff
Colombia's civil aviation authority, Aeronautica Civil, said FAA has given it 120 days to comply with International Civil Aviation Organization safety standards, after which its carriers could be banned from serving U.S. markets. After an audit last summer, FAA found deficiencies in enough areas to downgrade Colombia's oversight of air safety standards from Category 1 to Category 2, the CAA said. The demotion means Colombia's carriers cannot increase their operations to the U.S. during the busy holiday season.

Staff
GE Aircraft Engines confirmed yesterday it has begun testing on schedule the GE90-92B and will continue into next year, with FAA certification expected in mid-1996 (DAILY, Oct. 31). The engine will be rated at 92,000 pounds takeoff thrust, compared with the 84,700 pounds of the baseline GE90-85 engine. The first higher-thrust engine will go into service on the Boeing 777 late next year with an operating range of 7,200 nautical miles.

Staff
FAA commissioned the 100th small-tower voice switch (STVS) at the San Carlos, Calif., air traffic control tower. Administrator David Hinson said the STVS is the 20th major new system, including radars, navigation and communications, to be installed this year, and to date the agency has commissioned more than 2,700 new ATC systems as part of its modernization program.

Staff
The House Transportation Committee yesterday approved by voice vote legislation (H.R.2276) to make FAA independent, and to reform the agency's funding and personnel and procurement systems. The panel approved several minor amendments to the version adopted last week by the aviation subcommittee (DAILY, Oct. 27), including one from Chairman Bud Shuster (R- Pa.) making a number of small changes in the bill, several of them clarifying or conforming the bill to existing law. The committee approved an amendment sponsored by Rep.

Staff
Israel's port/resort on the Red Sea, Eilat, will become the newest cruise terminal in the world Nov. 11. Uzi Michaeli, Israel's commissioner for tourism in North America, said a new series of cruises from Israel to Jordan and Egypt is the latest tourism development emerging from the Mideast peace process. Eilat is the site of the planned Red Sea Riviera, a 14-mile continuous promenade that will link the Egyptian resort Taba to Eilat's shoreline and to the Jordanian resort Aqaba.

Staff
Malaysia Airlines System will obtain additional slots at Paris and boost its service there, the carrier said at the IATA annual meeting in Kuala Lumpur. MAS, which operates two weekly frequencies to Paris Charles de Gaulle Airport, wants to launch daily service and make Paris its European hub. It threatened recently to boycott Airbus Industrie products if France did not approve more slots. French authorities have yet to announce a formal decision.

Staff
USAir will resume service to St. Maarten, Netherlands Antilles, from Baltimore/Washington Airport Nov. 4, initially offering only one flight on Saturdays. It intends to add a flight on Sundays Nov. 18. The carrier suspended the service Sept. 5 because of the destruction caused by Hurricane Luis. David Jehn, USAir manager-airline planning, said yesterday, "Today, the government officially re-opened the island. We are excited to play a part in helping to re-establish tourism."

Staff
Shuttle America said it expects to have about 200 employees when it begins service. The new entrant wants to operate between Long Beach, Calif., and Chicago Midway, using MD-80s (DAILY, June 5).

Staff
British Airways will replace its cabin workshops at London Heathrow and Gatwick with a new, 52,000-square-foot facility at Hawtin Park, Blackwood, in South Wales. British Airways Interiors Engineering Ltd., a wholly owned subsidiary of BA, will start business in the spring following local recruitment of refurbishers. The airline expects the move to create up to 90 jobs in South Wales, and the 90 workers employed at the two existing workshops will be offered alternative employment in engineering. The cabin workshop is BA's third major investment in South Wales.

Staff
The DAILY reported Oct. 31 that Civil Reserve Air Fleet carriers flew 35% of all Defense Department long-range international cargo during fiscal 1995, and that they received more than $1.5 billion in revenue. The $1.5 billion was the CRAF carriers' revenue from all services provided to the Pentagon and the General Services Administration during the fiscal year, not from long-range international cargo operations alone.

Staff
Sabre Travel Information Network (STIN) has signed a two-year computer reservations system agreement with the Management Information System arm of the Civil Aviation Administration of China (MIS/CAAC). The agreement, announced only a week after MIS/CAAC signed a deal with the Singapore-based CRS company Abacus, provides for expanded CRS services to Sabre subscribers and sharing of technology between Sabre and CAAC, STIN said (DAILY, Oct. 25). The agreement also paves the way for further joint development efforts, according to STIN.

Staff
The National Tourism Strategy, encompassing a comprehensive plan to boost the U.S. travel and tourism industry, create jobs and enhance the travel experience, was ratified by 1,700 delegates attending this week's White House Conference on Travel and Tourism. Next on the agenda is the formation of a committee to answer the one question that stumped the delegates - how to fund a proposed national tourism office, to be called Visit USA Inc. The tourism office, to be managed by the private sector, would focus on marketing the U.S. as a destination.

Staff
Reno Air is adding a third daily nonstop flight in the Chicago O'Hare- Reno/Tahoe market with continuing service to Palm Springs Dec. 21. On Jan. 25, it intends to add a second daily flight from San Diego to Reno/Tahoe. Reno operates a fleet of 22 MD-80s.

Staff
Business Express Airlines and Hewins Travel Consultants have introduced a vacation product, Best of New England Vacations. The program of all- inclusive ski vacations in Maine, Vermont, New Hampshire and Quebec includes roundtrip air fare on Business Express, rental car, lodging and lift tickets. Warren Wilkinson, director of marketing and sales for Business Express, said, "The airline has historically experienced seasonal drops in passenger traffic during the winter months.

Staff
U.S. National Carriers Operating and Net Profit Second Quarter 1995 Operating Net Profit/Loss Profit/Loss (000) (000) Second Quarter 1995 Alaska $ 23,539 $ 8,591 Aloha (4,076) (2,485) American Trans Air 5,653 2,872 Carnival 1,117 841

Staff
Cathay Pacific Airways is opposed to the China National Aviation Corp. (CNAC) getting approval to set up a scheduled carrier in Hong Kong because, the incumbent says, such a move would violate the Joint Declaration, which is designed to protect the Hong Kong way of life once the territory is returned to China in mid-1997. The Joint Declaration and the Basic Law establish a one-country, two-systems policy for 50 years after China resumes control.

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United is urging DOT to reject Volga-Dnepr J.S. Cargo Airlines' application for expanded U.S. operating rights and place a 179-day limit on renewal of the Russian carrier's existing authority. Volga-Dnepr proposes new all- cargo scheduled service between New York and the co-terminal points Ulanovsk and Moscow, Russia, but United cited Russia's recent refusal to renew United's code-share service to Moscow, "an operating right that is clearly available to United under the U.S.-Russia bilateral." The U.S.