Aviation Daily

Staff
American Bar Association's Air&Space Law Forum said Sen. Larry Pressler (R-S.D.), chairman of the Senate Commerce Committee, will speak at its annual meeting and conference June 22 in Washington. Edward Beauvais, chairman, president and chief executive of Western Pacific Airlines, will be the luncheon speaker. The meeting, to be held June 22-23 at the J.W. Marriott Hotel, will include discussions on airport rates and charges, ticketless travel, global alliances and antitrust law. For more information, call 312-988-5658.

Staff
American's rapid expansion into Latin America, a frequent target of criticism from Latin carriers and governments, has benefited not only American, but also the Latin carriers with which it competes, American Chairman Robert Crandall said yesterday in Miami. Speaking to an audience composed largely of top Latin American and Caribbean airline executives and managers at the Third Annual International Airline CEO Conference, Crandall said there are many misconceptions in the market about American's past activities and future aspirations.

Staff
National Transportation Safety Board yesterday called for a national standard for all air tour operators and for a database on air tour operations, saying that lack of such a database "precludes effective evaluation of the accident rate...on the traditional basis of flight hours, cycles and passengers carried." These recommendations were among 10 the board advocated following a special investigation of the air tour industry last year.

Staff
FFV AvioComp Netherlands BV took over responsibility for maintaining the KLM Cityhopper (KLC) Saab 340B fleet yesterday. FFV, which also maintains aircraft for Air UK and Air France at Amsterdam Schiphol Airport, is replacing KLM subsidiary KLM ERA Helicopters in conducting routine maintenance activities on the 340s, which KLC uses for short-haul regional service. The spinoff of the maintenance is part of KLM's plans to transfer all the activities of its helicopter subsidiary to other parties, according to KLM.

Staff
FAA has scheduled two more public meetings this month on the agency's proposed rule to upgrade commuter operations and certification standards. A meeting will be held at 9 a.m. June 14 at McCormick Place, East Building, 2301 South Lake Shore Drive in Chicago. Another will be held at 9 a.m. June 21 at the Hacienda Hotel, 3950 Las Vegas Blvd. South in Las Vegas, Nev. Direct requests to present a statement or questions regarding logistics to Linda Williams, FAA Office of Rulemaking, telephone 202-267- 9685, fax 202-267-5075.

Staff
Demand for Mexico-Europe service and a lack of aircraft by Aeromexico has prompted Delta and Aeromexico to sign an agreement for third-country code sharing to Madrid and Paris through the U.S. The service will begin July 1, assuming it is approved by the U.S., French and Spanish governments, and will consist of Aeromexico flights from Mexico City to New York and Atlanta that connect to Delta flights to Madrid and Paris. France and Spain, however, have resisted that type of code sharing in the past.

Staff
DOT has tentatively selected Great Lakes Aviation, operating as United Express, to continue to provide essential air service at Devils Lake and Jamestown, N.D. The carrier will operate three nonstop or one-stop roundtrips each weekday and weekend period between both Devils Lake and Jamestown and Minneapolis/St. Paul, Minn., using 19 seat Beech 1900 aircraft.

Staff
Mesa Air Group directors today will consider a proposal from Continental Airlines to acquire wholly owned subsidiary Continental Express in exchange for a 33% stake in Mesa Air Group. The deal would involve the issuance of 16 million shares of Mesa stock while giving Continental effective control of the regional airline holding company, Mesa Chairman Larry Risley said in an interview with The DAILY.

Staff
Officials at the Air Force's Arnold Engineering Development Center, where all FAA altitude certification for the Pratt&Whitney engine on the Boeing 777 took place, say the center, due to the decline of defense budgets, has begun to align itself more closely with commercial manufacturers. Sharing technology strengthens the nation's industrial base and also helps the Defense Department retain critical test capabilities, says Col. Mike Holquist, director of propulsion testing.

Staff
Air Transport Association's annual report, including airline balance sheet and income statements, fleet size, leading markets and employment, is available for $10 by calling 301-490-7951 ext. 950 from Virginia, Washington, Maryland and outside the U.S. All other calls should be directed to 1-800-497-3326.

Staff
New Regional Aircraft Deliveries, March 1995 Last 12 Months Carrier No. Type Engines Delivery Air Atlantic 1 Jetstream 41 TPE331-14GR-807H - Air UK Ltd 1 Fokker 50 PW127B 4 Airlink Airlines 2 Jetstream 41 TPE331-14GR-801H - Atlantic Coast 1 Jetstream 41 TPE331-14GR-801H 9

Staff
DOT has dismissed Royal Air Lines application to start up service as a regional carrier in the northeast on U.S. Despite repeated requests for pertinent information between September 1994 and April 1995, the department said the Royal's "application remains materially deficient." One key area lacking in the material furnished by Royal was "the company's plans for financing the operations proposed in its application," said DOT.

Staff
Gulfstream International of Florida, which has a marketing relationship with United, is not a United Express affiliate, as reported last week (DAILY, May 26).

Staff
Japan Airlines Chairman Susumu Yamaji and Air France Chairman Christian Blanc signed an agreement in Tokyo yesterday continuing the cooperative efforts of their carriers. Under the agreement, the two airlines will link their frequent flyer programs on Nov. 1. On the same day, JAL will move its current Tokyo-Paris flights from Terminal 1 to Terminal 2, the Air France international hub at Paris Charles de Gaulle Airport. The two carriers already operate twice-daily code-share Osaka-Paris service from Terminal 2.

Staff
Port Authority of New York and New Jersey will not continue plans to connect LaGuardia and Kennedy airports, a port authority source told The DAILY. Although the authority has abandoned the idea of connecting the two airports, it will continue to study connections from each airport to other modes of transportation in the region, as well as a line from Manhattan to LaGuardia. The port authority applied earlier this year for the right to collect $663 million in passenger facility charges to pay for the project, drawing fierce opposition from the airlines (DAILY, May 26).

Staff
Cathay Pacific Airways and Air Canada plan to launch a joint, twice-weekly 747-400 freighter service between Toronto and Hong Kong on July 27. The code-shared flights are subject to government approval and will be operated by Cathay Pacific. Both airlines will market the services in Canada and Hong Kong. Air Canada will provide the ground-handling in Toronto, and Cathay Pacific's agent will do so in Hong Kong. Air Canada said the joint venture will allow it to enter the Hong Kong market in advance of the scheduled Dec.

Staff
U.S. District Court of Appeals has denied a petition for review requested by Sun Country Airlines of FAA's flight attendant duty-time rules. The rules to limit duty time were scheduled to go into effect March 1, but were stayed by the court in February pending a decision on the petition (DAILY, Feb. 21). Sun Country, a charter operator, petitioned the court, saying FAA's rules were not based on a cost/benefit analysis, and the duty-time limits would hurt the carrier financially.

Staff
SAS was continuing negotiations with its pilots until late yesterday to avoid a 24-hour strike threatened to begin today and a second scheduled June 9. Swedish, Danish and Norwegian pilots for SAS are protesting for higher wages. The pilots said the action will affect the operation of non- nordic flights, and an SAS spokesman said if the strike happens, 306 flights will be canceled, while 640 will continue to operate. Flights would be disrupted to 50 of its 120 destinations. The negotiations involve some 650 pilots, he said.

Staff
United Express carrier Atlantic Coast Airlines will expand service at its and United's busiest East Coast cities in July. ACA plans to begin service between Boston Logan and New York Kennedy July 1, and will inaugurate new service July 16 from Washington Dulles to Reading, Pa., and Elmira, N.Y. It will operate five roundtrips every weekday between Boston and New York, and offer weekend flights, with British Aerospace J41s. As of July 1, ACA will be operating 23 flights from Boston to four markets - Washington Dulles, New York Kennedy, Portland, and Newburgh, N.Y.

Staff
China Airlines and Garuda Indonesia have started weekly, all-cargo flights between Taipei, Taiwan, and Jakarta. CAL is operating the service with a 747-200 freighter.

Staff
The U.S.-U.K. talks got off to a rocky start yesterday with U.K. officials refusing to give a timeline for the conclusion of Phase 2 of the negotiations, industry officials said. Slated to meet until tomorrow, the two sides are expected to wrap up the Phase 1 agreement - the so-called mini-deal, which includes Chicago-London Heathrow service for United.

Staff
U.S. Major Carriers Productivity In Revenues and Expenses Per Employee Fourth Quarter 1994, In Dollars Total Total Operating Operating Revenues Expenses Airline (000) (000) America West 344,078 313,544 American 3,675,604 3,711,781 Continental 1,177,538 1,233,714

Staff
British Airways is offering special promotional fares from its 19 U.S. gateway cities to 58 destinations in Europe and the Middle East that include a free stopover in London. The fares, based on the lowest transatlantic peak season excursion price, will be sold through June 14 and are good for travel during the month with no advance purchase requirement. BA also will offer "stopover" fares for travel in July or August to most destinations at a slightly higher price.

Staff
Low-cost carrier ValuJet could soon see an increase in labor costs now that its flight attendants have voted to unionize. Of 230 eligible voters, 133 voted for representation by the Association of Flight Attendants, according to ballots counted yesterday by the National Mediation Board. The flight attendants say they are among the lowest paid in the industry and lack many benefits, such as paid vacations. The NMB also will count ballots June 20 from ValuJet's mechanics and related workers for representation by the Teamsters union.

UPS

Staff
UPS said yesterday it has named Edwin Reitman president of UPS-Europe, and it plans to spend more than $1 billion in the next five years to upgrade its operations there. The plan calls for $300 million for new ground vehicles, $300 million in buildings and facilities, $200 million in information technology and more than $300 million in aircraft support. Reitman also will be in charge of the Middle East and Africa from his London headquarters.