Aviation Daily

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U.S. Major Carriers Operating and Net Profit Second Quarter 1995 Operating Net Profit/Loss Profit/Loss (000) (000) Second Quarter 1995 America West $ 52,957 $ 20,872 American 455,816 191,208 Continental 70,876 101,992 Delta 448,403 250,900

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Royal Tongan Airlines has asked DOT to renew its authority to operate scheduled combination service between Tangatapu, Tonga, and the co-terminal points Honolulu and Los Angeles. The carrier said it plans to resume on Dec. 12 service to Honolulu, which it suspended in August 1994. It offered the previous service under a wet-lease agreement with Polynesian Airlines, which withdrew from the Honolulu and Los Angeles markets.

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Canadian Airlines International has launched scheduled service from four points in Western Canada to Las Vegas. The flights were operated as charter service. Now, the airline is offering four flights a week from Vancouver, two from Winnipeg, two from Edmonton and two from Calgary/Banff. Canadian said it increased transborder service to 833 flights per week from 105 since the U.S.-Canada open skies agreement came into effect this year.

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Japan Airlines and rival All Nippon Airways were profitable in the first half of fiscal 1995, which ended Sept. 30, 1996, but while ANA's net earnings rose, JAL's declined. JAL posted net earnings of $95.2 million, down nearly 21% from the first half of last year.

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Vice President Gore promised the travel industry yesterday that by this time next year, "you will see a spectacular difference" in passenger processing by Customs and the Immigration and Naturalization Service. With smart card technology and advance passenger lists from airlines, Customs can beat the 45-minute standard for processing international passengers and strengthen security at the same time, Gore said.

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BAE Automated Systems, builder of United's automated baggage system at Denver Airport, said yesterday it will meet its Nov. 15 deadline to "substantially complete all phases of the system." A spokesman for the company said the outbound portion of the system was completed in time for the airport's opening last February, and BAE has since worked on the transfer and inbound portions.

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Boeing is removing provisions for retiree benefits from its final contract proposal because of union refusal to bargain, said Larry McKean, senior VP- human resources. "Any decision about changes to health care benefits for current hourly retirees will be made solely at the company's discretion," he said. The company proposal for current employees represented by the union - the striking International Association of Machinists - who may retire over the next three years remains unchanged, said McKean.

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Delta is offering a $129 roundtrip weekend fare from Salt Lake City to Edmonton, home of a mall with the world's largest indoor wave pool, an amusement park, ice skating rink and 800 stores. The fare is available until Jan. 28 for travel beginning Nov. 3. Delta operates three daily flights in the market.

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United Airline's 777 fleet, after the first three months of revenue service, has experienced a "cumulative schedule reliability" of 97.7%, Dean Muncey, director of 777 service engineering for Boeing, told the first 777 All Operators Flight Operations Symposium in Seattle. Muncey said that is a "dramatic improvement" over the introductions of the 767 and 747, which achieved that level at 18 months and 38 months. Sixteen 777 customers, other airlines and major suppliers attended the symposium.

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SAS has ordered six more 737-600 aircraft valued at $210 million, Boeing said yesterday. SAS launched the 737-600 program with an order for 35 earlier this year. The first deliveries of the 95- to 128-passenger aircraft are scheduled for the second half of 1998. Boeing said total 737- 600/700/800 series aircraft stand at 206 since launch in early 1994.

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U.S. Major Carriers Unit Revenues and Expenses By Region Second Quarter 1995 Operating Operating Revenues Expenses per ASM per ASM Carrier (cents) (cents) America West 8.28 7.18 Domestic 8.28 7.18 American 10.27 9.10 Domestic 10.28 9.14

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DOT Secretary Federico Pena said that if the House FAA reform bill (H.R. 2276) is not changed, he will recommend that the President veto it. In a letter dated yesterday to Rep.

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SAS launched service this week from Copenhagen to Poznan, its third destination in Poland after Warsaw and Gdansk. It will operate the new route three days a week with 46-passenger Fokker 50s. The Scandinavian carrier also introduced a nonstop flight between Stockholm and Warsaw, to be flown six days a week, and added a second three-times-weekly service in the Copenhagen-Gdansk market.

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USAir Express carrier PSA will begin service between Columbia, S.C., and Pittsburgh Dec. 16, operating three daily flights with 32-seat Dornier 328s.

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Delta plans by Jan 1 to recall 56 mechanics in 14 cities who were among the 650 it laid off as part of Leadership 7.5 cost-cutting efforts. A review of the re-engineering efforts concludes that the recall will reduce flight delays.

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KLM's pre-tax earnings, boosted in part by the revaluation of the Northwest preferred stock it had previously written down, increased 10.2% in the September quarter to 398 million guilders ($251.9 million) as its gain from holdings in other companies rose to 83 million guilders from 24 million guilders in the same 1994 period. KLM's operating profit declined 12.6% to 333 million guilders (US$210.8 million), and its net earnings, impacted by a 95 million guilder tax charge, declined 14.7% to 302 million guilders (US$191.1 million).

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Tom Schick, senior VP-airplane support at Boeing Commercial, has been named executive VP and deputy to President Tom Woodard, Boeing Commercial announced yesterday. He will share responsibility with Woodard on internal day-to-day management, and Woodard will continue to concentrate on external requirements. Dan Heidte, VP and general manager of the Wichita Division, was named to the new position of senior VP-airplane components. He will be responsible for buying and producing parts and components used in all Boeing airplanes.

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After concentrating for a year on liberalizing U.S.-Europe aviation relations, DOT Secretary Federico Pena yesterday announced a shift in focus to Asia on the eve of his 17-day trip to eight Asian countries. "Now, while our work with Europe continues, I have turned our sights on Asia, the fastest growing aviation market in the world," Pena said in a speech to the International Law Section of the District of Columbia Bar Association and the Federal Bar Association's Transportation Law Section. Unlike the European initiative in which the U.S.

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Atlanta-based The Network Connection has signed an agreement with Kollsman, Merrimack, N.H., to establish the TNCI AirView system as the "inflight entertainment standard" for airlines. The Network Connection produces the Cheetah Video Server multimedia delivery system, which has been adapted for inflight use.

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Senate Commerce Committee is scheduled to hold confirmation hearings 9:30 a.m. Friday for Charles Hunnicutt as assistant secretary for aviation and international affairs and Nancy McFadden as DOT general counsel.

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Lufthansa has amended the terms of its Miles&More frequent flyer program, giving members three years instead of two to claim awards. The new rule applies to all miles credited to members since Jan. 1, 1993, the airline said. Frequent flyers also can earn extra miles in special campaigns.

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Air South is selling $24 "real last chance saver fares" until Jan. 31 good for travel on Tuesdays, Wednesdays and Saturdays. The price is good up to the day before departure. The fares are good for one-way flights between any two cities Air South serves. They will be sold until Jan. 7.

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American and Qantas will begin code sharing on Qantas flights from Los Angeles to Auckland and Melbourne on Nov. 15, their anniversary of trans- Pacific code sharing. The carriers code share on 24 weekly Qantas flights between Sydney and Los Angeles, and on American flights from Los Angeles to Boston, Chicago, New York and Washington Dulles.

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U.S. Customs Service has been awarded Hammer Awards for excellence in passenger operations, carrier security and automated entry. The awards, part of Vice President Al Gore's National Performance Review, are intended to replace the proverbial $600 government-issue hammer.

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Northwest will begin Detroit-Colorado Springs service March 2 with two daily nonstop flights. The carrier already offers three daily flights from its Minneapolis hub to the Colorado city. It will use 146-seat 727s in the market.