Aviation Daily

Staff
Delta Connection carrier Comair upgraded Sunday to jet service from turboprop flights on existing service between its Cincinnati hub and Dayton, South Bend, Evansville and Columbia. The jet flights are operated with the Canadair Regional Jet.

Staff
American and its fleet service clerks and baggage handlers represented by the Transport Workers Union (TWU) have reached a new tentative contract agreement, replacing one rejected recently by the employees (DAILY, Sept. 28). The new agreement will be put to a membership vote, and results are expected by the end of the month, a union spokesman told The DAILY yesterday.

Staff
In a stunning announcement that caught Wall Street and much of the airline industry by surprise, USAir confirmed late yesterday that it has had preliminary discussions with American and United about possible strategic relationships, "up to and including acquisition of USAir." United confirmed that it is conducting an evaluation of USAir to determine whether United should submit a bid to acquire USAir's business and operations. American parent AMR Corp.

Staff
Japanese carriers are pressing Japan's Ministry of Transport to gain a stand-alone agreement with Hong Kong before the Crown colony reverts to Chinese control in 1997. The Japanese airlines that serve Hong Kong - Japan Airlines, All Nippon Airways, Japan Asia Airways and Nippon Cargo Airlines - have petitioned the MOT to accelerate bilateral negotiations with the Hong Kong government, expected to begin this month, to fix their future programs.

Staff
Pemco World Air Services has received FAA certification to modify a 727-200 to a fully convertible combi configuration for First Air of Ottawa. A company official said Pemco is the first to accomplish a conversion that incorporates both a multi-position, Class C combi/cargo compartment and a variable smoke detection and fire suppression system.

Staff
Summary of U.S. National Carriers Systemwide Traffic February 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 636 12.47 858 545,920 Aloha 376 (5.89) 136 51,253

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Research and development investment, which averages between 3% and 4% of sales among aerospace companies, is running "two to three times that amount" in the once-languishing general aviation industry, according to Edward Stimpson, president of the General Aviation Manufacturers Association.

Staff
U.S. airlines pledged yesterday to cooperate with FAA as the agency ratchets airport security measures ever tighter, but they asked for more of a role in the federal government's anti-terrorism planning and policymaking.

Staff
About the only market larger than that of the 100-seat jetliner market is the 150-seat category, according to Aaron Hollander, managing director and co-founder of First Equity Development Inc. But the 100-seat market "needs a whole new aircraft," he said. "It needs something more efficient than using more modern manufacturing techniques." Boeing is "probably the most logical player in this market," he said, adding that there has been a "great deal of interest by a lot of people" in it.

Staff
USAir reduced fares yesterday in nearly 650 markets for travel through Nov. 12. Sales prices vary by market, offering as much as $50 off current, roundtrip, advance-purchase excursion fares. Buyers can save $10 more by traveling on specific night flights. Passengers must travel on Tuesday, Wednesday or Saturday, purchase tickets at least seven days prior to departure and stay over at least one Saturday night.

Staff
First round of talks between the U.S. and Japan last week was an "amicable" meeting, but "nobody got very specific," said a U.S. government official. No date has been set for the next talks, but it is conceivable they will take place next month, the official said.

Staff
Summary of U.S. Major Carriers International Traffic February 1995 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American 994 8.28 1,975 1,961,918 Atlantic 181 5.50 4,165 754,600 Latin 789 9.48 1,369 1,080,716

Staff
Alitalia has begun installing totally digital video-on-demand inflight entertainment system on one of its MD-11s for a 90-day test, according to system developer Interactive Flight Technologies Inc. Installation of the system will take seven to 10 days, and the system is expected to be fully operational next week. If the test successful, the system will be installed on seven more Alitalia airplanes during a period of three months. The system enables passengers to choose among as many as 30 digitized movies for viewing at any time during a flight.

Staff
Shuttle by United, one year old, got a new president Friday. Amos Kazzaz, who has been United's director-onboard crew resources and manager-financial analysis, will succeed Sky Magary, who joined the carrier a year ago and is returning to his business, Magary Consulting Services Inc. United President John Edwardson said the carrier regrets Magary's departure but understands it as a reflection of his "entrepreneurial spirit."

Staff
Freight forwarder Stevens Air Transport, Inglewood, Calif., has opened its second Florida office in Miami. The new Miami facility has 10,000 square feet of warehouse space, and is located about five minutes from Miami Airport.

Staff
Delta Senior VP-Technical Operations Russell Heil, a 28-year veteran of the airline, will retire Nov. 1, Chairman Ronald Allen said in a memo to employees. Heil has led the Technical Operations Division since 1991. Previously, he was executive VP-operations and personnel. Ray Valeika, VP- technical operations, will assume Heil's duties.

Staff
The U.S., pursuing its goal to open Asian markets, agreed with Hong Kong on a memorandum of understanding (MOU) last week and conducted talks with Japan as DOT prepared for Secretary Federico Pena's Asian tour in November. Hammered out late last Thursday, the agreement stabilizes the U.S.-Hong Kong relationship before the British Crown colony reverts to Chinese control in 1997, and makes cargo operations feasible, said a U.S. government official. Previously governed by the U.S.-U.K.

Staff
FAA has tested a digital satellite data link installed on prototype controller workstations in Alaska and the Russian Far East as part of a project to automate transfer of air traffic control information. The agency says the digital data link will increase dramatically the safety, capacity and efficiency of international routes over the Russian territory.

Staff
Airbus Industrie says airlines have expressed interest in modular lower- deck facilities on its A340. The European consortium says it can offer four lavatories and extra passenger space in the rear cargo hold, opening up space in the economy cabin for more seats or additional amenities. Another option - the four lavatories and six cabin crew beds. The A340 has full headroom throughout the lower deck, Airbus says.

Staff
Air cargo growth will continue to surpass passenger traffic increases through 2013, according to the latest McDonnell Douglas cargo forecast. With global economic growth projected at 3.5% a year, worldwide air cargo traffic, including scheduled and non-scheduled service, will expand by 7.3% annually, compared with 5.7% for passenger traffic, MDC said. Trade accords, such as the North American Free Trade Agreement and the General Agreement on Tariffs and Trade, should stimulate trade further, the forecast said.

Staff
Port Authority of New York and New Jersey will receive private-sector proposals to redevelop 170 acres at Kennedy and Newark airports as air cargo facilities. The project, estimated to cost $150 million, covers 110 acres at Kennedy and 60 at Newark. "At the completion of this program, we will have doubled the square footage of multi-tenant cargo-handling infrastructure at our two international airports," port authority Executive Director George Marlin said.

Staff
Canadian Airlines International, in which American has a significant minority stake, front-loaded too much debt when it restructured a few years ago, according to AMR Chairman Robert Crandall. Canadian's debt has an average duration of 5.5 years compared with American's 13 years, Crandall noted last week. Much of Canadian's debt is due this year and next, but once the carrier gets through 1996, "their cash requirements fall off a cliff," he said.

Staff
Delta says that in the year ended June 30, its fiscal 1994-95, about 60% of its domestic origin-and-destination revenue passenger miles were flown in markets also served by low-cost, low-fare carriers. Two years ago, it flew only 32% of its domestic RPMs in such markets.

Staff
Elrey Jeppesen, founder of Jeppesen Co., which publishes the Jeppesen Airway Manual, last week received the International Civil Aviation Organization's highest honor, the Edward Warner Award, for contributions to the development of international civil aviation, particularly of air navigation.

Staff
Gulfstream hopes to identify by yearend the steps needed to develop an enhanced vision system for the head-up display on its aircraft, making Cat 3 landing performance possible at Cat 1 facilities. This would enable its aircraft to land at thousands of airports that cannot support all-weather operations.