Aviation Daily

DOT

Staff
DOT will take no action to prevent WestAir Commuter Airlines, operating as United Express, from suspending its service at Stockton, Calif., May 27.

Staff
Collins says it is advancing toward a goal of delivering to FAA in December 1999 a TCAS IV (traffic alert and collision avoidance system) prototype that will give pilots advisories on horizontal as well as vertical maneuvers. A limited installation program is scheduled to begin in December, 2000. TCAS IV will take advantage of differential Global Positioning System technology to determine exact aircraft positions. For passive surveillance, it will incorporate automatic dependent surveillance in addition to existing Mode C and Mode S capabilities.

Staff
Delta Connection affiliate Business Express flew 30.2 million revenue passenger miles in April, a slight - 0.6% - increase from the nearly 30 million RPMs logged in April 1994. Capacity grew 6% to 71.9 million available seat miles from 67.8 million in the prior-year month. Load factor fell 2.3 percentage points to nearly 42% from 44.2%, and enplanements dropped 5.5% to 126,928 from 134,305 in April 1994.

Staff
Mesa Air Group is essentially replacing its labor-troubled WestAir unit in the Pacific Northwest with assets and crews from its Columbus, Ohio, Mountain West/America West hub. United Express WestAir - its pilot contract currently in federal mediation - found it uneconomical to serve its Seattle and Portland spokes with its Jetstream 31s, so Mountain West will move in five Beech 1900Ds to operate under contract to United. Two additional 1900Ds will expand service in four Los Angeles markets, also under contract with United (DAILY, May 5, 1995).

Staff
Regional airlines within the European Community pay 18% of their total operating costs in various forms of user charges - double those of many major airlines, according to the European Regional Airline Association (ERA). Further, European regionals do not have direct control over 50% of their operating costs. Airport costs alone, including landing, terminal navigation, passenger, security and parking fees, increased an average of 8% over the past five years. ERA charges that these "external costs" could jeopardize vital air service to peripheral regions.

Staff
European Regional Airlines Association (ERA) members last year paid more than $1.3 billion in Eurocontrol user charges in 1994, the association reported. Of that sum, just over $1 billion was in airport charges and $305.9 million in en route air traffic control fees. It was the equivalent of $867 per flight, or $31 per individual passenger. The question begs, could Europe be the model for fees charged by a privatized U.S. ATC system?

Staff
Gulfstream International continued to record huge traffic increases last month, logging nearly 5 million revenue passenger miles - up 135.2% from the same month one year ago. Capacity for the United Express affiliate rose 62.8% to 8.6 million available seat miles from 5.3 million ASMs. Enplanements increased 82% to 28,377 from 15,588. Load factor rose to 57.8% from 40% in April 1994.

Staff
Atlantic Coast named Michael Davis senior VP-customer service. Davis formerly was VP-customer service at Business Express and has had extensive major airline experience with USAir.

Staff
Alaska Air Group affiliate Horizon Air logged 65 million revenue passenger miles last month, up 29% from the 50 million flown a year earlier. The regional's capacity gain outstripped that figure, however, up 33% to 115 million available seat miles from April 1994's 87 million. Load factor dropped nearly two points to 56.1% from 58%, as enplanements rose 21.7% to 296,500 from 243,600. April 1995 April 1994 4 Mths 1995 4 Mths 1994 RPMs 65,000,000 50,000,000 251,000,000 194,000,000

Staff
Mercury Air Group's net earnings rose to more than $1 million, or 19 cents per share, in the March quarter, up from $819,000, or 16 cents per share, a year earlier. Its sales and revenues increased to $50 million from $26.6 million in the March quarter last year. Through the first nine months of Mercury Air's fiscal year, the company had net earnings of $3.2 million, or 62 cents per share, on sales and revenues of $134.7 million. After nine months last year, it posted earnings of nearly $2.2 million, or 48 cents per share, on sales and revenues of $78.3 million.

Staff
United's Machinists unit has asked its members to contact Illinois legislators and register opposition to a measure that would limit expansion at Chicago O'Hare Airport and support a new facility at Peotone, Ill. The legislature is slated to take up the issue during the next two weeks.

Staff
SAS and Lufthansa yesterday signed a comprehensive strategic alliance agreement to link their route networks, launch a joint venture operation in the Scandinavia-Germany market, cooperate in marketing and sales, and eventually merge their frequent flyer programs (DAILY, May 10). The airlines are basing their cooperation on "long-term commercial and operational relationships" but do not intend to take equity stakes in each other - not surprising, given opposition to such transactions expressed previously by the heads of both. The alliance will take effect Jan.

Staff
The Indianapolis Airport Authority (IAA) said yesterday it plans to negotiate a 10-year management contract for Indianapolis Airport with BAA USA Inc., the U.S. subsidiary of U.K. airport operator BAA plc. If negotiations are successful, Indianapolis would be the largest privately managed U.S. airport in terms of passenger traffic. The contract would not mean a change in ownership, and the IAA board would continue to set policy, enforce agreements and control rates and charges.

Staff
Federal Express said average daily volume increased 16% in April compared with the same month last year, to 47.3 million. International air freight rose to 43.6 million pounds from 43.1 million.

Staff
As the third set U.S.-U.K. talks got under way in London yesterday, political pressure once again began to build for and against a proposed "mini-deal," or interim agreement, between the two countries. A letter from Sens. John McCain (R-Ariz.) and Wendell Ford (D-Ky.) Wednesday recommending rejection of the mini-deal (DAILY, May 11) was followed yesterday by a letter from 15 senators to President Clinton urging acceptance of the incremental agreement.

Staff
DOT has issued a show cause order on the application of Merlin Express, Inc., to conduct commuter operations. A subsidiary of Fairchild Aircraft, Inc., Merlin Express since it was organized in 1983 has provided cargo feeder service to United Parcel Service using a fleet of Fairchild Expediter aircraft, the cargo version of the Metro III. Currently, it also provides cargo feeder service to other small parcel express companies, including FedEx and DHL, using a fleet of 32 aircraft. Merlin provides these services both within the U.S.

Staff
Bloomington, Minn.-based Great Lakes Aviation, a United Express affiliate, flew 17.5 million revenue passenger miles last month, up 7.4% from the same month one year ago. Capacity increased 11.4% to 41.3 million from 37.1 million, as load factor fell 1.6 percentage points to 42.4% from 44%. Enplanements rose 10% to 56,682 from 51,508. For the year to date, traffic increased 7.2% to 67.7 million; capacity gained 12.4% to 162.9 million; passenger boardings rose 8.6% to 215,534, and the load factor dipped two points to 41.6%.

DOT

Staff
DOT yesterday dismissed the rates and charges complaint against the Puerto Rico Ports Authority, affirming DOT Administrative Law Judge Ronnie Yoder's recommended decision (DAILY, May 5). Dismissal of the Puerto Rico case, which was settled by the parties, leaves the complaint against Los Angeles as the only open rates and charges proceeding.

Staff
DOT is requiring CCAIR, operating as USAir Express, to maintain essential air service at Danville, Va. through May 29, or until a carrier of capable of providing reliable replacement service begins flying, whichever is first. CCAIR filed a notice in June last year of its intention to suspend service at Danville by Aug. 30, 1994, but DOT has extended CCAIR's service obligation a number of times, while it sought proposals from carriers interested in providing replacement service. CCAIR is providing three roundtrips between Danville and Charlotte, N.C.

Staff
Summary of National Carriers Systemwide Expense Indicators, Fourth Quarter 1994, (000) Labor Fuel/Oil Rentals Alaska 75,582 (1) 35,035 (1) 41,132 (1) Aloha 16,496 (4) 5,975 (10) 9,463 (5) American Trans Air 22,543 (3) 26,578 (2) 13,883 (2) Carnival 6,371 (11) 6,947 (8) 6,711 (7) Hawaiian 22,730 (2) 13,515 (4) 6,471 (8)

Staff
The Justice Department said yesterday it will examine the proposed travel agent commission cap settlement reached this week between TWA and the American Society of Travel Agents (DAILY, May 11) because of concerns about a provision that ties future TWA commissions to nationwide sales of TWA tickets. "An agreement between all travel agents and an airline to increase that airline's sales at the expense of other carriers raises serious competitive concerns," said Anne Bingaman, assistant attorney general in charge of the Antitrust Division.

Staff
French regional Air Littoral took delivery of the first of five Fokker 70s it ordered in February 1994. The regional also had ordered one F100, which was delivered in March. Air Littoral, using a 79-seat configuration in a single-class layout, will use its first F70 aircraft on behalf of Air France on routes between Strasbourg and London, and Strasbourg, Marseille and Rome.

Staff
The European Union needs to overhaul its industrial policy radically to promote the growth of pan-European aeronautics companies, according to Manfred Bischoff, soon to be the chief executive officer ofGermany's largest aerospace group. Both civilian and military aerospace production is riddled with overcapacity and wasting limited national resources, he said, and Europe's aeronautics sector faces a growing disadvantage against its main competition, the United States, unless it is restructured.

Staff
Delta Connection affiliate Comair logged 92.3 million revenue passenger miles in April, a 24.5% increase from April 1994. Capacity grew more slowly - 23% to 183.9 million available seat miles from 149.6 million. Passenger enplanements rose 13.6% to 301,696 from 265,603, and the load factor increased 0.6 percentage points to 50.2% from 49.6%.

Staff
FAA said it has commissioned a new air traffic control tower at Pensacola Regional Airport. The tower was constructed by the city and is leased to the agency. The opening is "another step in the modernization of the Pensacola Regional Airport," said Michael Wheeler, acting manager of the tower, which has an integrated communications switching system and D-Brite radar. This display provides controllers in the tower cab with a video depiction of the radar screen that controllers in the terminal radar approach control use to track aircraft.