Aviation Daily

Staff
FAA's aging, unreliable air traffic control system stumbled again yesterday when another center - this time, Oakland - lost power completely for more than an hour, causing widespread traffic disruptions that lasted into the evening. The oceanic control system, which monitors air traffic over the Pacific Ocean, was not restored to power fully for several hours. The agency has had repeated problems recently at its traffic control centers, either with power supply or aging computers.

Staff
Polish Air Traffic Agency has purchased its first Category 3 instrument landing system, a Wilcox Mark 10, for the Warsaw Okecie Airport. Wilcox said the equipment is scheduled for delivery in October and installation by yearend.

Staff
Xiamen Airlines has leased two new Boeing 737-500s from International Lease Finance Corp. (ILFC). The aircraft, equipped with CFM56-3C-1 engines, are scheduled for delivery in May and September 1996 on initial lease terms of seven to eight years. Xiamen's current fleet comprises 757-200s, 737-500s, 737-300s and Y-7s. One of its 737-500s is on lease from ILFC.

Staff
Greenwich Air Services said net sales rose 71% to $50.9 million for the quarter ended June 30. Operating income jumped 75% to $4.9 million, and net income increased 110% to $1.8 million.

Staff
America West has proposed to serve Puerto Vallarta and Manzanillo from three U.S. points beginning Oct. 29, subject to government approval. It plans to offer daily nonstops to Puerto Vallarta and direct service four times a week to Manzanillo. Fares would be as low as $272 roundtrip to Puerto Vallarta and $324 to Manzanillo from Phoenix. America West said its fare from Salt Lake City to Manzanillo would be 51% less than the lowest fare now offered, and from Albuquerque it would be 30% less.

Staff
KLM's combined traffic - passengers, freight and mail - increased 12% in July to 729.4 million revenue ton kilometers, but its load factor slipped 2.2 percentage points to 75% because overall capacity increased 15%. The Dutch carrier's passenger traffic rose 7% from July a year ago to 4.4 billion revenue passenger kilometers, on a like increase of 7% more capacity, and the load factor crept up 0.1 points to 81.2%. Freight and mail traffic for the month rose 19% on 24% more capacity.

Staff
Islands of the Bahamas escaped major damage to commercial, residential or tourist properties from Hurricane Erin, according to the Bahamas Ministry of Tourism. The only damage was to crops.

Staff
The Senate Appropriations Committee has proposed no fiscal 1996 funding for airport movement area safety system (AMASS) procurement, while its House counterpart recommended $20 million more than the Clinton administration's $11.3 million budget request for the program (DAILY, July 6). The Senate panel also eliminated $8 million proposed by the House for development of low-cost airport surface detection equipment and $2 million for development of inductive loop technology for surface detection.

Staff
Stephen Crable has become chief of staff of the National Mediation Board, a position created as part of the board's year-long reorganization. Crable, sworn in by NMB Chairwoman Maggie Jacobsen, is a private arbitrator/mediator and lawyer with 20 years of experience in labor/management relations. As chief of staff, he is the top career- management official responsible for integrated labor/management dispute resolution under the Railway Labor Act.

Staff
New York City will join the two traditional sites - Washington, D.C., and Chicago - for the Destinations Showcase trade shows in 1996 sponsored by the International Association of Convention&Visitor Bureaus (IACVB). Exhibitors are exclusively from convention and visitor bureaus and their convention centers. The show brings together meeting professionals and representatives of destinations around the world. The Washington show will be held Feb. 8 at the Sheraton Washington Hotel, the Chicago show Sept.

Staff
South African Airways, in an effort to promote tourism in East and South Africa, will present 19 half-day workshops for travel professionals in 15 U.S. and Canadian cities this October. The presentation is limited to 50 travel agents per event. Focusing on major tourist destinations, the workshops will detail special techniques for selling long-haul trips to Africa. SAA Senior Manager-Americas Joos Engelbrecht said, "Southern Africa is quickly becoming one of the most sought-after tourist destinations and emerging business markets in the world."

Staff
Northwest is upgrading equipment flying its Detroit-London Gatwick route to increase capacity by about 25%. Operating the route since April, the carrier will switch five of its seven weekly flights from a 267-seat DC-10 to a 360-seat 747-200, effective Oct. 29. From Dec. 15 through April 6, it will operate nine weekly flights in the market, with two daily departures on Fridays and Sundays, all using DC-10s. Demand for World Business Class seats has been strong, the carrier said, and load factors in the city-pair have been high.

Staff
Midway Airlines has signed a marketing agreement with Great Lakes Aviation by which the regional carrier will provide feed to Midway's Raleigh/Durham base. Great Lakes will operate under the name Midway Connection beginning Oct. 1. Points to be served will be announced next week. The Minneapolis- based regional will operate 30-passenger Embraer Brasilias and 19-passenger Beech 1900s in Midway livery. Passengers on Midway Connection will receive American's AAdvantage frequent flyer miles.

Staff
American appointed Craig Kreeger VP-pricing, yield management and distribution planning. Kreeger has worked for American for 10 years, previously as managing director-yield management operations.

Staff
Indianapolis has come through in offering enough incentives to American Trans Air to stay in the city instead of yielding to the beckoning of Orlando and St. Petersburg to move south (DAILY, July 10). The state of Indiana has committed to $18.7 million in incentives from the Economic Development for a Growing Economy (EDGE) program, which provides credits against state corporate tax to be paid by newly created jobs.

Staff
Boosted by higher fares and lower costs, the 10 largest U.S. passenger airline companies posted combined second quarter 1995 net earnings of $993.4 million on total operating revenues of $19.44 billion. In the second quarter last year, the same 10 carriers - the nine majors and Alaska Air Group - managed net earnings of just $24.3 million on revenues of $18.32 billion. Their second quarter 1995 operating profit soared to $1.99 billion from $679.2 million.

Staff
More U.S. Residents Travel Abroad In 1994; U.K. Still Top Attraction

Staff
Laker Airways has asked DOT for authority to provide scheduled service between Freeport, Bahamas, and the co-terminal points of Greenville/Spartanburg, S.C, and Detroit. The Bahamas-based carrier also asks to serve the two U.S. destinations as co-terminal points on its currently authorized Freeport-U.S. service. Laker operates 727-200 aircraft to the U.S. (Docket 48288&OST-95-378)

Staff
U.S. Major and National Carriers Financial Second Quarter 1995 2nd Quarter 2nd Quarter % 1995 1994 Change Alaska Air Group Operating Revenues (000) $ 362,192 $ 330,475 9.60 Operating Expenses (000) 337,723 305,984 10.37 Operating Profit/Loss (000) 24,469 24,491

Staff
Second Annual Interactive Travel Marketing conference, sponsored by AIC Conferences, will be held Oct. 19-20 at the Hotel Nikko, San Francisco. The conference will focus on selling travel products and services through alternate distribution channels - electronic media. Invited speakers include top executives from America Online, Sabre, Southwest Airlines, Apollo Travel Services, Holiday Inn, Amadeus/System One and Worldspan. Registration costs $1,095 if made before Aug. 15. For more information, call 212-952-1899 or 800-409-4AIC.

Staff
Rosenbluth International, one of the world's largest travel management companies, is eyeing the Asia/Pacific region for significant future growth. Rosenbluth said the region accounts for 1%-2% of its $2.5 billion in business annually, a percentage it expects to grow to 15%-20% in five years.

Staff
DOT has revoked Sky King's operating certificate after determining that the carrier does not appear to have any plans in the near term to operate service authorized to it. Initially granted its certificate Nov. 26, 1993, the Sacramento, Calif.-based carrier had planned to fly charter operations for sports and entertainment tours and corporations (DAILY, Sept. 20, 1993). (Docket 49129)

Staff
Airlines Reporting Corp. has terminated its agreement with Servicios Aereos Rutas Oriente (SARO) of Monterrey, Mexico. ARC will cease processing SARO- validated transactions in travel agents' sales reports Aug. 13.

Staff
FAA takes seriously the concerns of industry, Congress and the news media about unapproved aircraft parts, even though it has had "differences of opinion" with them about how serious a safety risk such parts present, Peggy Gilligan, the agency's deputy associate administrator for regulation and certification, said as FAA established a task force to review the problem (DAILY, Aug. 9).

Staff
FAA ordered heightened security by all airports and air carriers in the U.S., saying information provided by law enforcement and intelligence agencies makes the step necessary. There was speculation that the tighter security is linked to a U.S. visit next month by Pope John Paul II and other events, including the recent arrest of an alleged Islamic terrorist. Airlines clearly were unhappy with the new round of security measures, following by less than two months the alert imposed at California airports because of bomb threats.