Aviation Daily

Staff
Gulfstream International Airlines will expand its service at three cities in Florida early next month, the regional said. On Aug. 6, the company will begin service between St. Petersburg/Clearwater and Tallahassee, operating three daily nonstops. The carrier also will double its daily flights between St. Petersburg/Clearwater and Miami, with connecting flights to Tallahassee. The regional will offer introductory roundtrip fare to Tallahasssee of $69 from St. Petersburg/Clearwater and $138 from Miami for tickets purchased on or before Aug. 15.

Staff
Establishment of a new association to represent operators of general aviation airports will be discussed at an organizational meeting scheduled Aug. 18. The effort is led by Michael Stephens, who has worked previously for the Airports Council International-North America and the Aircraft Owners and Pilots Association. "General aviation airports have unique needs that differ greatly from air carrier airports," Stephens said. "Their dealings with the community are different.

Staff
ATR has received an order for seven 66-passenger ATR 72-210 aircraft from Air New Zealand's Mount Cook Airline, ATR said. The aircraft will progressively replace the 44-passenger Hawker Siddeley HS748s currently operated by Mount Cook Airline. Deliveries will begin in September and be completed by the end of this year or the beginning of 1996. The transaction was announced against a backdrop of simmering controversy over renewed French nuclear testing in the South Pacific. ATR is a partnership composed of French firm Aerospatiale and Italian company Alenia.

Staff
U.S. Industry Traffic Market Share (000) June 1995 RPMs Share (%) 1. United 10,122,065 21.370 2. American 9,125,287 19.266 3. Delta 7,678,316 16.211 4. Northwest 5,748,026 12.135 5. Continental 3,542,688 7.479 6. USAir 3,296,355 6.959

Staff
Legislators urged the administration to stand strong in talks with Japan and industry officials pressed for more effective guidelines for future international negotiations yesterday during a hearing on U.S.-Japan aviation relations before the House Transportation and Infrastructure aviation subcommittee.

Staff
Formosa Airlines of Taiwan has ordered two Fokker 50 turboprops and two Fokker 100 jets - the company's first jets, Fokker said. The carrier brought two Fokker 50s into its fleet at the beginning of this year. The two additional F50s will be configured with 56 seats and delivered in September and October. They will go into service on routes out of Taichung to various destinations within Taiwan.

Staff
Council of Better Business Bureaus Foundation, observing the fifth anniversary of the Americans with Disabilities Act, has released an ADA compliance guide for travel and tour agencies. The guide summarizes the public accommodations section of the law, which affects nearly all businesses, and suggests ways to remove barriers for customers with disabilities. The travel guide complements summaries published for other industries. Copies are available for $2.50 from CBBBF, Suite 800, 4200 Wilson Blvd., Arlington, Va. 22203.

Staff
NASA engineers plan to gather a wide range of data on supersonic transport flight dynamics next year in a series of 35 instrumented test flights by a Russian Tu-144 SST, according to the head of the agency's High Speed Research program. Louis J. Williams told The DAILY work is on schedule for a February start of test flights from Tupolev Design Bureau facilities near Moscow, with modifications of the 1982-vintage Tu-144 testbed NASA will instrument already well under way.

Staff
DOT has found a wide disparity in the method of listing fees and charges in advertisements by airlines and travel agents for air tour packages, and it has issued guidance to U.S. and larger foreign carriers and the larger travel agencies. A letter from Samuel Podberesky, DOT assistant general counsel for aviation enforcement and proceedings, generally calls for more specific language on the price of hotel, cruise, tour, car rental and other services when bundled with air fare.

Staff
GE90-powered 777 flight tests resumed Sunday after a hiatus of nearly two months, caused by a fan imbalance problem and ground testing of a fix.The aircraft accumulated eight hours of new flight time by yesterday, prompting hopes that Boeing can deliver the first GE-powered 777 to British Airways on schedule, in September.

Staff
Duff&Phelps Credit Rating Co. said yesterday it has established a commercial paper rating of D-2 for McDonnell Douglas Finance Corp., the wholly owned McDonnell Douglas subsidiary that finances aircraft purchases and leases equipment. The agency cited improved earnings quality in MDFC's $2 billion portfolio, which as of March 31 was allocated 68% to aircraft finance, 19% to commercial equipment leasing, and 13% to non-core and other business.

Staff
America West filed a registration statement with the Securities and Exchange Commission regarding its plan to prepay with existing cash $48 million of its $123 million in 11.25% senior unsecured notes, and to exchange the $75 million in notes for new notes with a lower coupon and longer maturity. The prepayment would give it an opportunity to improve its balance sheet and should reduce debt by about 10%, said William Franke, chairman and chief executive.

Staff
Korean Air will begin July 26 operating three weekly flights between Washington Dulles Airport and Seoul. Leaving Dulles every Wednesday, Friday and Sunday, a KAL 747 will stop in New York and go on to Seoul. With the addition of Dulles, the carrier has boosted the number of its North American gateways from seven to 11 during 1995, including recently launched service at San Francisco, Atlanta and Dallas/Fort Worth. "We are now the only Asian carrier to offer such extensive service from North America," said T.J. Kim, KAL's senior VP-American region.

Staff
South Africa is permitting Air Express International and three other forwarders to be ground-handling agents for imports in a three-month trial at Johannesburg Airport, AEI reported. The pilot program allows AEI to de- consolidate containers and loose cargo, clear the shipments through Customs, carry them to its warehouse and release them to local importers. Until the volume of imports caused Customs to loosen restrictions, South African Airways was the import-handling agent for about 75% of airlines serving the country, AEI said.

Staff
A senior U.S government official said yesterday he was hopeful - but not optimistic - that today's meeting in Los Angeles between DOT Secretary Federico Pena and Japan Transport Minister Shizuka Kamei will produce a breakthrough in the aviation dispute between the two countries. Commenting that optimism was "too strong" a term to describe his outlook, the official noted that this week's talks have been trimmed to one day from two, beginning at the vice ministerial level before Pena and Kamei meet, and broadened to involve more than the immediate needs of Federal Express.

Staff
Kiwi International Air Lines turned a profit of $1.7 million in the second quarter on revenues of $43.9 million, a significant turnaround, which changed leadership for the third time last week. The second quarter results enabled it to overcome first quarter losses and post a net income of $151,000 for the first six months on operating revenues of $80.9 million. New Chairman Russell Thayer said profitability resulted mainly from improvements in managing yield. Revenues for the second quarter were 80% higher, while passenger volume grew 77% to 420,000.

Staff
AMR Corp. yesterday reported second quarter net earnings of $178 million after preferred stock dividends, or $2.31 per common share, including an extraordinary loss of $13 million for the repurchase and retirement of outstanding debt, and despite the adverse impact on revenues and costs of a hailstorm that temporarily shut down 10% of its fleet. The storm, which reduced American's schedule for the entire month of May, and residual effects of American Eagle ATR relocations begun last winter, reduced net earnings by about $23 million.

Staff
Society of Travel Agents in Government will hold its annual Education Conference Sept. 11-13 at the Radisson Plaza Hotel at Mark Center in Alexandria, Va. Scheduled workshops include reinventing the way airlines, travel agencies and clients work together, and overviews of the government travel contracting process and government travel operations and financial management.

Staff
New Jet Aircraft Deliveries April 1995 Last 12 Months Carrier # Type Engines Delivery Air Afrique 1 A300B4-600R CF6-80C2A2 0 Air China 1 737-300 CFM56-3B1 3

Staff
Aeromexico has applied for authority to operate scheduled combination service between San Jose del Cabo, Mexico, and San Diego. It plans to begin daily or five-days-a-week service in the fall, using MD-80s. Noting that the route is now served only by Alaska Airlines, Aeromexico is proposing the first competitive nonstop service. "Thus, the proposed service clearly will result in significant service benefits to U.S.-Mexico passengers and is pro-competitive." (Docket OST-95-327)

Staff
Delta has begun a 30-day test at five city ticket offices in Cincinnati of a toll-free express telephone line that, if successful, will be expanded to all CTOs in North America. The CTOs are directing customers to use the line to make their reservations, and tickets can be picked up at a will- call window or sent by overnight delivery. In a taped message, Delta said frequent travelers that use CTOs will get faster, more efficient service with the express line.

Staff
The European Commission authorized Swissair yesterday to complete the deal, negotiated during the spring, to buy 49.5% of Sabena, but it is requiring Switzerland and Belgium to amend their bilateral aviation pact to make room for competition. The airlines said they will form working groups immediately to establish "specific customer service improvements, a strong presence of both partners in primary markets, and policies to improve financial results." They said they expect to start implementing the working groups' initial recommendations in November.

Staff
The Greater San Diego Chamber of Commerce has rounded up big names to attract business leaders to its Insights '95 symposium, aimed at positioning the San Diego-Baja region to take advantage of an expanding global economy. With the theme "Visions of the Global Community," the Aug. 4 event has sold 5,000 tickets at $295 apiece. Speakers include Gen. Colin Powell, Henry Kissinger, scientist Carl Sagan, Red Cross leader and former DOT Secretary Elizabeth Dole, CNN President Tom Johnson and former governors Mario Cuomo of New York and Ann Richards of Texas.

Staff
The National Air Transportation Association is asking Congress to repeal the upcoming commercial aviation fuel tax and expand pending repeal legislation (S.304, H.R.752) to cover aviation gasoline used by commercial operators. In a letter to Senate Finance Committee Chairman Bob Packwood (R-Ore.), NATA President James Coyne said the commercial avgas portion of the tax would only generate about $500,000 a year "but would cause irreparable damage to what are entirely small businesses."

Staff
Transportation Systems Inc. that specializes in transportation to major sporting events in the U.S., has received letters of intent worth an estimated $3.2 million from the official tour operators of Russia, France and Holland for travel services related to the 1996 Olympic Games in Atlanta. The agreements cover hotel accommodations, transportation and miscellaneous services. U.S. Transportation Systems Chairman and Chief Executive Michael Margolies said the company is working with 23 other international tour operators in an attempt to secure similar contracts.