Aviation Daily

Staff
A list of code-sharing partnerships, beginning with Delta Airlines and its affiliates, is printed on the facing page. Alaska Airlines, American, America West and Continental and their affiliates were listed last week (DAILY, July 7).

Staff
American will put its designator code on British Midland flights between London Heathrow and Edinburgh, Belfast, Leeds/Bradford and Teesside Aug. 9 in an expansion of its code-sharing arrangement with the U.K. carrier. The two airlines currently code share between London and Amsterdam, Brussels, Glasgow and Frankfurt. Members of American's AAdvantage frequent flyer program will be able to redeem miles for economy-class PlanAAhead travel on British Midland, effective Aug. 1. Awards are available for as few as 10,000 miles.

Staff
Atlantic Coast Airlines flew 11.1% fewer revenue passenger miles last month than in June 1994 on 20.3% less capacity. June 1995 June 1994 6 Mths 1995 6 Mths 1994 RPMs 32,527,000 36,600,000 163,045,000 184,722,000 ASMs 61,113,000 76,661,000 352,198,000 449,479,000 LF (%) 53.2 47.7 46.3 41.1 Pass. 132,563 144,082 661,147 734,406

Staff
Western Pacific Airlines, which began flying April 28, had a passenger load factor of 60.7% in June. During the month, the Colorado Springs-based startup carried 68,058 passengers on 834 flights, flying 50.2 million revenue passenger miles on 82.7 million available seat miles. "We expanded service by 69% and still maintained our 60.7% load factor," said Tom DeNardin, VP-sales and marketing. "We are extremely pleased with these results for our second full month of service.

Staff
The best way to solve the imbalance of service between the New York area and London Heathrow would be to assign Heathrow route authority to Continental at Newark, according to the Regional Business Partnership, a non-profit business organization advocating the economic growth and development of northeastern New Jersey. Slated to resume next week, U.S.- U.K. aviation negotiations "must include additional service between Newark and Heathrow by a U.S.

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Mesa Air Group flew 109.8 million revenue passenger miles in June, a 24.8% increase from June 1994. Capacity increased 24.7%. June 1995 June 1994 6 Mths 1995 6 Mths 1994 RPMs 109,811,000 87,967,000 565,442,000 478,301,000 ASMs 197,357,000 158,231,000 1,132,876,000 934,064,000 LF (%) 55.6 55.6 49.9 51.2 Pass. 558,702 478,086 2,987,794 2,518,086

Staff
Iberia has relocated its North American reservations operations to its headquarters facility in Miami. Salvador Humbert, VP and general manager for the USA and Canada, said the move will reinforce Iberia's position and economic growth in South Florida. Iberia offers nonstop service to Spain from New York and Miami, plus direct service from Los Angeles via a code- sharing arrangement with Carnival Airlines. From Canada, Iberia operates six flights a week from Montreal and Toronto.

Staff
Airline Industry Stock Trends Closed Closed Exchange 6/30/95 5/31/95 Majors AMR NYSE $ 74.625 $ 68.000 America West (Class B)1 NYSE 12.125 9.625 Continental (Class B) NYSE 25.125 16.750 Delta NYSE 73.750 66.125 Northwest OTC 35.325 28.375

Staff
American Trans Air plans to eliminate its 21 weekly scheduled flights from St. Louis on Aug. 26 because of poor load factors, reallocating the aircraft to better-performing markets. Competing with TWA at St. Louis, American Trans Air serves St. Petersburg, Fort Myers, Fort Lauderdale and Orlando, but "basically, the load factors weren't where we wanted them to be," a company spokeswoman said yesterday.

Staff
Mesaba Aviation, flew 29.4 million revenue passenger miles last month, a 1.9% rise from June 1994. Capacity dropped 4% to 59.4 million available seat miles.

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Aero International Regional (AIR), the new ATR/British Aerospace joint venture, will name Jeff Marsh its top sales and marketing executive, The DAILY has confirmed. Marsh currently heads sales and marketing activities for BAe unit Avro Aerospace and formerly ran sales and marketing for Saab Aircraft AB. Bill Black, the head of Jetstream Aircraft customer support and engineering, will be named to run customer support for the joint venture, and Joel Lebreton, who formerly was president of ATR Marketing in the U.S., will head contracts and sales finance...

Staff
United Express affiliate Great Lakes aviation projected it will suffer a loss of between six and 11 cents per share for its second quarter ending June 30 - "below the expectations of the analysts following the company," Great Lakes said this week. A definitive financial report will be issued during the week of Aug. 8.

Staff
Continental Express could be spun off to stockholders as early as this fall, making it a public company with significantly more operational latitude, including code-sharing arrangements with other major carriers. The company expects to make more than $10 million in pre-tax earnings this quarter and, according to one source, is "extremely profitable." Mesa Air Group in early June rejected an offer to buy Continental Express for $90 million, and Continental subsequently rejected a $100 million offer by Express President Jonathan Ornstein to acquire the regional.

Staff
America West will begin installing first-class cabins soon on the 39 aircraft in its 91-airplane fleet that are currently configured for a single class of service, and it plans to refurbish the interiors of all its aircraft by the end of 1996, the airline said yesterday. America West, which declined to say how much the changes will cost, thinks first-class service systemwide will make its frequent flyer program more attractive - it will be able to offer upgrades to all destinations - and improve its traffic mix with more higher-revenue passengers.

Staff
Grand Holdings Inc., a charter carrier, has registered with DOT the trade name Champion Air. DOT said the name is connected with a pending acquisition that will give the carrier a new market identity, said DOT.

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General Aviation Parts Association (GAPA), being formed to represent the interests of distributors and dealers who supply aircraft parts to the general aviation market, held its first meeting July 7 in Wichita. About 50 people attended, discussing potential FAA regulation of parts distributors, proposed accreditation programs that would include third- party audits of quality procedures, stricter "tagging" requirements for parts, and paperwork and traceability issues.

Staff
India's two state-owned carriers, Air India and Indian Airlines, will be able to operate a total of 700 more seats each week to Kuwait and fly between Sharjah and Kuwait, India's civil aviation ministry officials said. India's bilateral aviation agreement with Kuwait, renewed last week, grants Kuwait Airways the same increase in capacity and authority to fly to Trivandrum as well as its current Indian destinations, Bombay and New Delhi. The new pact allows for a maximum of 3,500 weekly seats, compared with the present 2,800.

Staff
AIR may think in terms of a 70-passenger-class regional jet - one that is more economical to operate than current 50- to 70-passenger jet - rather than a large high-speed turboprop in its new product mix. The question being assessed is not only what the market wants, but what the market will be allowed to have. The recent American scope clause with its pilots would place a 70-passenger, 75,000-pound limit on any jets operated by AMR Eagle carriers, which would eliminate the Avro RJ70 and the Fokker 70 - 84,000 and 88,000 pounds, respectively.

Staff
Code-Sharing Regional Carrier Schedules Announced or Implemented - June 1995; (Delta, Midwest Express, Northwest, TWA, United and USAir) Domestic City-Pairs ------------------------------------ Carriers Added Dropped New Shared Delta Air Lines Business Express Albany-Roches- - -

Staff
SkyWest Airlines offered 107.2 million available seat miles in June, 27.1% more than in June 1994. Traffic rose 15.7% to 53.3 million revenue passenger miles from 46 million. June 1995 June 1994 6 Mths 1995 6 Mths 1994 RPMs 53,270,896 46,046,740 246,085,998 218,172,839 ASMs 107,202,414 84,332,939 530,745,840 434,207,240 LF(%) 49.7 54.6 46.4 50.2

Staff
Southwest will make its first foray into Florida early in 1996, putting pressure on incumbent carriers and possibly testing consumers' patience with no-frills service on relatively longer-haul flights. The airline's Florida expansion is targeted initially at Tampa and will be expanded to Orlando in April. Southwest also plans intra-Florida service between Fort Lauderdale and both Tampa and Orlando. The carrier expects to operate 26 daily flights to, from and within Florida by the end of the first quarter of 1996 and 52 a day by the end of the second quarter.

Staff
The U.S. is redoubling its efforts to develop a stable aviation bilateral with Hong Kong, according to an administration official, who said DOT Secretary Federico Pena spent "a good deal of time" with Hong Kong's transport minister in June at the Asia-Pacific Economic Cooperation transport ministers' meeting in Washington. With control of Hong Kong slated to revert to China in 1997, there is "barely enough time" for the U.S. to get a new agreement, the official warned.

Staff
America West Airlines has become a shareholder in the Airlines Reporting Corp. Air Transport Association member airlines that operate scheduled passenger service are eligible to become shareholders. America West has been represented on ARC's board since 1985.