Aviation Daily

Staff
Rolls-Royce/Snecma Olympus 593 engines, which power the Concorde supersonic transport, have amassed 750,000 flying hours, 480,000 of them at greater than the speed of sound. The aircraft made its first flight in 1969 and was put in commercial service in 1976 by British Airways and Air France. Its fastest recorded crossings are three hours from Paris to New York and two hours 57 minutes from London to New York.

Staff
In a $30 million tribute to the state of California, Southwest designated a new 737 California One last week. The aircraft, painted white with a red star and giant bear, did a fly-by for spectators during a ceremony at Sacramento. Southwest, which began serving three California cities in 1982, now has 532 departures a day from nine cities.

Staff
United is offering its new round-the-world service at fares of $2,750 for economy class, $3,618 for Connoisseur Class and $5,019 for First Class. The carrier will inaugurate the eastbound flights Dec. 14, flying from Los Angeles to New York, London, New Delhi, Hong Kong and back to Los Angeles.

Staff
U.S. Trade and Development Agency, in cooperation with FAA, the American Association of Airport Executives and the Airport Consultants Council, is sponoring a workshop Oct. 15-17 in Warsaw, Poland, on airport development, finance and new technology for Central and Eastern Europe and the Newly Independent States (NIS). Top airport and airline officials from 20 countries in the region have been invited by TDA to participate. For information on registration and trade show/sponsorship, call AAAE at 703- 824-0504.

Staff
FAA Administrator David Hinson, calling for a new "mental, attitudinal outlook" toward aviation safety, said yesterday the agency in the near future will issue a "concept paper" asking for ideas on how to achieve a goal of zero accidents in commercial aviation. Christopher Hart, assistant administrator for system safety, said his office will issue the concept paper probably within the next four to five weeks in an attempt to "reach the Rands and the TRWs and the thinkers out there and get them motivated" to help reach the goal of zero accidents.

Staff
SAS increased its firm order for McDonnell Douglas MD-90 twinjets from six to eight, bringing the total value of the purchase to about $320 million. The aircraft, configured for 143 passengers in five-abreast seating and powered by IAE V2500 engines, are scheduled for delivery during the second half of 1996 and the first quarter of 1997.

Staff
Northwest Territorial Airways (NWT Air) has applied for authority to operate scheduled combination service between any point or points in the U.S. and any point or points in Canada. The carrier also requests permission to code share with Air Canada between points in Canada and the U.S. Wholly owned by American, NWT Air provides scheduled service primarily between Calgary, Edmonton and Winnipeg and points in Canada's Northwest Territories, using three 737-200 aircraft. (Docket OST-95-384)

Staff
Federal Express will not have to pay any additional excise taxes under an agreement with the Internal Revenue Service resolving an IRS claim that the carrier owed as much as $159 million. The dispute covered a seven-year period that ended March 31, 1991. FedEx gave up its claim for a $70 million refund for that period.

Staff
BAA Plc reported a 14.4% increase in pre-tax profits for the quarter that ended June 30, the first of its financial year. Profits increased to 127 million, with a pre-tax profit figure before exceptional items of 121 million. The group's seven airports handled 23.8 million passengers in the period, an increase of 8%. Gross revenue from retailing was up 10.9% to 138.7 million, producing net retail income of 98.2 million, an increase of 11.5%. Property income rose 6.8% to 51.0 million.

Staff
Legislation (H.R.752) to repeal the commercial jet fuel tax entered the August congressional recess with 280 co-sponsors, 62 more than a majority of the House. Through Aug. 8, the Senate legislation (S.304) had 34 co- sponsors.

Staff
Latin American flag carriers, meeting Friday in Cartagena, accused FAA of basing its "tough stance on safety oversight" on favoritism toward U.S. carriers serving Latin nations. Members of the Association of Latin American Airlines, meeting at the request of Gustavo Lenis, chief executive of Avianca, agreed unanimously that FAA is discriminating against small Latin airlines, a spokesman said yesterday. Civil aviation authorities from several nations also attended and expressed their agreement, he said.

Staff
SunGard Financial Systems awarded its entire $2.1 million travel program to Rosenbluth International. Rosenbluth's reservations center in Atlanta has handled SunGard's travel, and now its centers in Eagan, Mich., Boston and El Segundo also will be used.

Staff
America West has prepaid $48 million of its $123 million of 11.25% senior unsecured notes due Sept. 1, 2001, and has exchanged the remaining $75 million for new notes with a lower coupon and longer maturity. Chairman William Franke said that less than one year out of Chapter 11 bankruptcy protection, America West is performing much better than expected. It announced record earnings in the second quarter, when it had a cash balance of $300 million, enabling it to improve its balance sheet.

Staff
America West announced a fare sale for travel between Aug. 21 and Dec. 15 in many markets throughout its system in an attempt to boost leisure travel during the fall slack period. Savings range from $50 to $217 for roundtrip tickets, which are available until Aug. 21. Fares for night flights are lowest, and minimum stay, blackout dates and other restrictions may apply. Reduced fares are available for most of America West's international destinations, including Puerto Vallarta and Manzanillo, to which service begins Oct. 29.

Staff
American, in the past three days, reached a tentative agreement with its Transport Workers Union (TWU) unit, received a decision pending for three years on whether its Eagle carriers constitute a single transportation system and presented a proposal to its pilot negotiators to assuage their concerns over code sharing.

Staff
Finnair and Transwede have entered a code-sharing agreement on service between London Gatwick and Helsinki. The service will be operated initially by Transwede Fokker 100 aircraft using Transwede crews, but it is expected to gain Finnair equipment when required. Finnair already operates 20 weekly flights from London Heathrow to Helsinki and daily flights from Manchester to Helsinki and Stockholm.

Staff
Northwest is seeking authority to operate scheduled combination service between Detroit and Rome. If approved, the carrier plans to operate five weekly roundtrip flights on the route, using DC-10-30 aircraft. Northwest said it is prepared to begin the service April 1, 1996, when the U.S. will be allowed to designate a fifth U.S. carrier in the market under terms of the 1990 Memorandum of Understanding with Italy. In its request, the carrier noted that it is one of the few U.S.

Staff
Taiwan's Ministry of Economic Affairs tentatively approved a proposal by Mitsubishi of Japan to form a company to develop and produce the J650 jet transport in Taiwan. The ministry is willing to help Mitsubishi find investors and will review any application for subsidy, an official said.

Staff
Orange County, Calif., could raise $250 million without violating federal airport-grants law through contract management and the sale or lease of a future airport at Marine Base El Toro, the Reason Foundation said last week. In a report, "How To Privatize Orange County's Airport", the firm said using the two different modes of privatization would offer the revenue solution the bankrupt county is looking for.

Staff
The U.S. may look to advance key concerns - including relations with Japan and Hong Kong - during the new round of Asia-Pacific Economic Cooperation working group meetings on aviation competition issues. U.S. and Hong Kong principals have exchanged notes, but no talks are scheduled.

Staff
New airline operated by the National Fisheries Corporation in Micronesia has begun service to transport fresh fish to Guam, from which it is shipped on widebody aircraft to Japan. The startup carrier operates a modified 727-200 freighter purchased from Intrepid Aviation. The airline has contracted with RyanAir to provide flight crews. Continental will provide maintenance in Guam. Roberts, Roach&Associates helped establish the air cargo network.

Staff
An Air France Concorde, dubbed the Coors Light Concorde for the occasion, will try to set a new eastbound round-the-world record of 32 hours 44 minutes elapsed time this week. The current eastbound record, set by a Gulfstream IV business jet in February 1988, is 36 hours, eight minutes, 34 seconds, and the current westbound record, held by the Concorde, is 32 hours, 49 minutes and three seconds. The special flight will take off at noon tomorrow from New York Kennedy and is scheduled to return to JFK at 8:44 p.m. EDT Thursday.

Staff
Consolidators International said it now offers air wholesaling services to key cities in Europe. Julian Keeling, president, said midsize and smaller forwarders "now can be assured of having cargo of all sizes and weights delivered to European destinations in as little as 48 hours, and at fully competitive rates." He said forwarders with "loose" or uncontainerized cargo destined for Europe often are at a disadvantage in dealing with airlines.

Staff
Shuttle by United will expand to Reno Dec. 15, replacing United Express service with daily nonstop flights from San Francisco, using 737 aircraft. The Shuttle also will increase its service Oct. 4 from San Francisco to five cities - Las Vegas, Phoenix, Portland, San Diego and Seattle - and discontinue its nonstop flights between San Diego and Sacramento. Shuttle President Sky Magary said customers have "continually asked for" San Francisco-Reno nonstop service. The Shuttle currently accounts for 4% of United's capacity. As of Dec.

Staff
The National Mediation Board settled Friday a long-standing dispute over the representation of United's mechanics, ruling that the results of an election in which the incumbent Machinists union beat out a challenger were not tainted by company or union interference. In a vote count last Dec. 15, the Machinists received 6,482 ballots and the Aircraft Mechanics Fraternal Association (AMFA) received 5,923. AMFA filed a complaint alleging that the laboratory conditions of the vote were disrupted (DAILY, March 23).