Aviation Daily

Staff
Challenge Air Cargo is asking DOT for one additional all-cargo frequency between the U.S. and Argentina. Currently holding two weekly narrowbody frequencies in the market, Challenge wants the department to reallocate to it Florida West Airlines's one weekly frequency.

Staff
Polyken Technologies said it has engineered a new line of fiberglass cloth tapes for aircraft cargo pits that meet FAA rules on smoke and flame penetration. "Right now, Polyken tape #297 is the only high-performance FAR-compliant product for seam sealing cargo pits available," said Charles Bronner, product manager. He said the new tape will help reduce a shortfall for a FAR-approved product. The tapes are available in 36-yard rolls in two and three-inch widths, he said.

Staff
Robert Buckhorn, 68, who retired May 3, 1994, after 10 years as FAA deputy assistant administrator for public affairs, died Sunday of a heart attack. Buckhorn worked at the National Transportation Safety Board before joining FAA.

Staff
Atlantic Coast Airlines has won court confirmation that it has the right to impose work rule changes on its mechanics after they have elected a union to represent them but before the company and the union have signed an initial contract. The Aircraft Mechanics Fraternal Association, which is in mediation over its initial contract, sued the airline in November in a New York court, which upheld the carrier's right to make unilateral work rule changes. AMFA filed an appeal with the U.S.

Staff
DHL co-founder Larry Hillblom died during the weekend when a small airplane in which he was a passenger went down in the Pacific Ocean near Saipan, UPI reported. Hillblom, 52, helped organize DHL in 1962. He left day-to-day operations of the company nearly 10 years ago but retained stock in it.

Staff
DOT refused yesterday to confirm or deny that U.S. and Japanese officials will meet today in Washington to explore resumption of aviation talks. Relations between the two sides have deteriorated since Japan announced earlier this year that it would refuse to allow any new services by U.S. carriers - even those permitted under existing agreements - until it begins talks with the U.S. The two countries last held bilateral negotiations in August 1993.

Staff
AlliedSignal said it received FAA certification of its TFE731-60 engine, which will power the Falcon 900EX business jet.

Staff
National Air Traffic Controllers Association President Barry Krasner denied a Chicago radio station's report that his members planned a job action in response to last week's equipment failure at Chicago's air route traffic control center, (DAILY, May 18). "While no job action has been planned, controllers continue to have grave concerns about the deteriorating state of air traffic control equipment and severe staffing shortages nationwide," Krasner said.

Staff
FAA said a videotape package describing its alcohol misuse prevention and breath testing regulations is available from the National Technical Information Service. The two-hour video package includes copies of the outline used for the presentation, questions and answers, and alcohol rule language. The package costs $95.95, and the video or written materials cost $54 each if ordered separately. To order the Overview of Alcohol Misuse Prevention Program for the Aviation Industry (#AVA19706VNB1), call 703-487-4650 or telefax 703-321-8547.

Staff
ALM Antillean Airlines has applied for renewal of its authority to operate scheduled combination service between Curacao and Bonaire, Netherlands Antilles, and Atlanta via Aruba. The carrier currently operates one weekly MD-80 flight between Atlanta and Curacao via Bonaire. (Docket 47444)

Staff
The board of Mercury Air Group Inc. has declared a 10% dividend on its common stock, to be paid June 16 to shareholders of record on May 30. Cash will be paid for fractional shares, the company said. Mercury has about five million shares of common stock outstanding. "This stock dividend is the latest signal of the board of director's confidence in Mercury's continued dynamic growth," said Seymour Kahn, chairman. Earlier this year, the board adopted a regular quarterly cash dividend program, the first in Mercury Air Group's 14-year history as a public company.

Staff
Air South is extending two summer fare promotions - $20 segment fares and $55/55 young-seniors fares - until Aug. 31. The $20 segment fares are available on nonstop segments Tuesdays, Wednesdays and Saturdays, and the $55 roundtrip fares, for travelers 55 or older, are available between any two cities it serves, also on Tuesdays, Wednesdays and Saturdays. Air South continues to offer double credit to frequent fliers.

Staff
Jeppesen said it has begun supplying a new "briefing strip" approach chart format to selected U.S. and international airlines. The new strip format provides a number of crew resource management and human factors elements. It includes key approach information arranged in the chart heading; critical navigation information in larger, bold type; common placement of procedural notes in the heading, and symbolic depiction of approach lights for the landing runway.

Staff
More airlines will turn to alliances with other carriers as they try to expand their global reach in economically realistic ways, Northwest Chief Executive John Dasburg said last week. In a speech to the Foreign Correspondents Club of Japan in Tokyo, Dasburg said the trend toward alliances is being fueled by the realization that it is too costly - in terms of capital needed and the potential for overcapacity - for airlines to create their own global airline systems individually. But the success of alliances does not depend totally on economic factors.

Staff
President Clinton apparently is not as inflexible as top officials at DOT about allowing airlines to retain their exemption from the transportation fuel tax. In March, Clinton wrote M.G. Braatas, chairman of the Rochester, Minn., Airport Commission, that he would not oppose extending the airlines' tax exemption beyond Sept. 30, its scheduled expiration, under certain conditions. "As you may know, my administration decided not to request an extension of the airlines' fuel tax exemption in the proposed fiscal 1996 budget," Clinton wrote Braatas.

Staff
British Airways yesterday reported record earnings for the fiscal year ended March 31, but also said it has written down by half the value of its $400 million investment in USAir. Citing USAir's suspension of dividend payments and a change in U.S. accounting rules, BA announced the action just days after USAir reached a tentative agreement with its flight attendants that brings it a step closer to the $2.5 billion in concessions management seeks from its employees during the next five years.

Staff
Arrow Air is pushing ahead with management changes as it works with FAA to restart its service. The cargo carrier, grounded since March 17, said yesterday that Jon Batchelor, its current president and chief executive, has been elected chairman. Arrow has named to the board Todd Cole, managing director of SH&E, the aviation consultancy; Patrick O'Neill, president of the South Florida Center for Theological Studies in Miami, and Charles Simons, retired executive VP and vice chairman of Eastern.

Staff
Duff&Phelps Credit Rating Co. has established an initial senior debt rating of A+ for EDS. The rating applies to EDS's proposed offering of $500 million in notes, to be sold under Rule 144A of the Securities Act. Duff&Phelps said the rating is based on the success of EDS's business strategy and strong cash flows.

Staff
The Metropolitan Topeka, Kansas, Airport Authority is urging DOT to prohibit Air Midwest from dropping its essential air service at Topeka. The carrier, operating as USAir Express, said it intends to end its Beech 1900 service between Topeka and Kansas City, Mo., on July 11 (DAILY, May 11).

Staff
Singapore Airlines parent SIA Group posted higher net and operating profits for the year ended March 31 as economic recovery in major markets and lower fuel prices offset declining yields at SIA and weak results at other group subsidiaries. SIA Group's operating profit rose 13.6% to S$931 million (US$657 million) and the company's pre-tax profit increased 9.9% to S$958 million (US$676 million). Net profit rose 14.5% to S$918 million (US$648 million) on total revenues of S$6.56 billion (US$4.63 billion).

Staff
U.S. Major Carriers Operating and Net Profit The Year 1994 Operating Net Profit/Loss Profit/Loss (000) (000) The Year 1994 America West $ 146,376 $ 62,239 American 911,583 268,493 Continental (86,262) (613,342) Delta (215,110) (159,687)

Staff
U.S. Major Carriers Operating and Net Profit Fourth Quarter 1994 Operating Net Profit/Loss Profit/Loss (000) (000) Fourth Quarter 1994 America West $ 30,534 $ 6,627 American (36,177) (120,400) Continental (56,176) (523,427)

Staff
Southwest's board declared a quarterly dividend of one cent per share on all shares of its stock currently issued and outstanding. The dividend, the airline company's 75th consecutive, will be paid on June 27 to shareholders of record at the close of business June 2, the company said.

Staff
USAir will launch nonstop service June 11 from New York LaGuardia to Portland, Maine, for the summer and fall seasons. It will operate one daily flight with a DC-9-30.

Staff
House Speaker Newt Gingrich's transportation task force probably will agree on a way to increase infrastructure investment, but not necessarily on House Transportation Committee Chairman Bud Shuster's proposal to take transportation trust funds off budget, Jack Schenendorf, Shuster's committee chief of staff, said yesterday at the American Association of Airport Executives annual conference in Boston.