Aviation Daily

Staff
Senate Commerce, Science and Transportation Committee Chairman Larry Pressler (R-S.D.) has not canceled plans to conduct an aviation safety hearing this week (DAILY, Jan. 9). Scheduled Thursday afternoon, the hearing will focus on the working relationship between FAA and National Transportation Safety Board, with General Accounting Office testimony.

Staff
Southwest's December traffic increased 11% over the same month in 1993 on 15.8% more capacity, decreasing the load factor to 62.1% from 64.8%. The traffic data include former operations of Morris Air, which was absorbed by Southwest.

Staff
Continental's systemwide passenger traffic declined 1.68% in 1994 on 1.64% less capacity, resulting in a load factor decline of 0.1 percentage points. The carrier's domestic traffic, including its unprofitable Continental Lite operation, increased 0.7% on 0.2% more capacity, increasing its load factor 0.4 points to 62.5%. International traffic fell 8% on 6.8% less capacity, however, producing a load factor decline of 0.8 points to 65.2%. Continental does not report passenger boarding figures.

Staff
Health groups and smokers rights advocates are squaring off over an eight-airline initiative to ban smoking on some international service. The eight carriers - American, British Airways, Continental, KLM, Northwest, TWA, United and USAir - have asked for antitrust immunity so they can come together to discuss a voluntary smoking ban on transatlantic flights. The Coalition on Smoking OR Health, composed of the American Cancer Society, American Heart Association, American Lung Association, is supporting the request.

Staff
Two provisions of the July 1992 agreement between the U.S. and the European Union to limit government support for manufacturers of large civil aircraft have caused "ongoing disagreement" and "contributed to a contentious relationship," leaving the long-term viability of the deal "uncertain," according to the General Accounting Office. In a report to Congress, GAO said the U.S.

Staff
National Transportation Safety Board called on FAA Friday to ground Robinson R44 and R22 helicopters following four recent fatal accidents involving inflight breakups. The board recommended in 1992 that FAA suspend the airworthiness certificate of the R22 following a fatal accident. It said it is aware of 339 R22 accidents that have occurred in the U.S. There are about 855 R22s now registered in the U.S.

Staff
Sino-Swearingen, a joint venture of Swearingen Aircraft and Sino Aerospace Investment Corp. of Taiwan, will assemble the SJ30, a new eight- place business jet, in Martinsburg, W.Va. Investment in Sino-Swearingen will exceed $150 million, including $48 million from Taiwan.

Staff
TWA and its former chairman, Carl Icahn, are nearing an agreement that would remove another hurdle from the airline's continuing financial restructuring effort. The $190 million TWA owes Karabu Corp., an Icahn- controlled company, was due Sunday, but the maturation date of the two outstanding loans passed without apparent effort by Icahn to force payment. TWA wants either to push out the maturity date at least two years or refinance the loans through another lender.

Staff
TransBrasil Airlines has joined the LatinPass frequent flyer program. "We view LatinPass as an extraordinary opportunity for TransBrasil to substantially increase the number of our U.S.- and Latin America-based frequent business travelers," said Carlos Augstroze, VP-international sales and marketing. "As LatinPass gains further momentum and expands into a global operation, TransBrasil will generate far more frequent flyer business than we would ever have been able to do through our own sales and marketing programs," he said.

Staff
Vanguard Airlines, new-entrant carrier at Kansas City, is offering a "take a friend for free" promotion during January on its flights from Kansas City to Denver and Salt Lake City. The purchaser must fly roundtrip on the same flights as the companion, and an overnight stay is required.

Staff
AT&T has awarded Emery Worldwide a three-year contract for international freight and ocean shipments. The telecommunications company signed an agreement with Emery early last year for domestic air freight.

Staff
Continental and America West, in a significant expansion of their alliance, will add 30 airports to the network served by their code-shared flights to cut costs and increase revenues. The two began code sharing Oct. 1 to 29 airports. Code-sharing activity also will increase at six airports - Columbus, Newark, Houston, Las Vegas, Phoenix and Seattle. Of the 30 new points, both carriers will serve 13 and Continental 17, Continental said.

Staff
Amadeus Global Travel Distribution and Estonian Air have created Amadeus Estonia, a national marketing company (NMC) that will market the Amadeus computer reservations and distribution system to travel agents in that market. Amadeus Finland, the CRS company's NMC in Finland, also is a shareholder in Amadeus Estonia. The company is based in Tallinn.

Staff
Douglas Aircraft selected EDS Management Consulting Services to streamline its buyer-furnished equipment (BFE) operations. BFE, equipment supplied by airliner customers for aircraft manufacturers to install on their aircraft, includes seats, galleys, avionics and other cabin and flight deck selections. Douglas and EDS plan to provide customers and suppliers with on-line access to BFE information. EDS said the current process is subject to delays due to multiple data entries, inconsistent reports and "literally hundreds of pounds" of paperwork.

Staff
Northwest's passenger traffic declined 0.3% in 1994 on 2.4% fewer available seat miles, producing a load factor gain of 1.4 percentage points. The airline does not issue data on passenger boardings with traffic reports, although figures will be available in a few weeks when it publishes its financial results. In December, traffic increased 3.5% despite a 2.1% decline in capacity, boosting the load factor 3.5 points. "Northwest finished the year on a strong note," said John Dasburg, president of the airline.

Staff
China Airlines is seeking authority to operate scheduled all-cargo service between Taipei, Taiwan, and Miami. Presuming approval, CAL would start the service March 1 with three weekly flights, using 747-200Fs. (Docket 49999)

Staff
Kuwait Airways could have the software capability to operate its own frequent flyer program as early as March, now that it has licensed Sabre Decision Technologies' Reward product. If Kuwait launches its own program, other Middle Eastern carriers may have to follow suit in order to remain competitive.

Staff
A measure to slap a freeze on new regulations, sponsored by Rep. Thomas DeLay (R-Texas), should not affect current aviation safety rulemaking, such as the effort to stiffen safety rules for commuter carriers. Expected to be introduced in the House today or Tuesday, the legislation will exempt health and safety rules, a spokeswoman for DeLay said.

Staff
Aerolineas Argentinas has expanded its service to Brazil with twice-weekly 727 service from Buenos Aires to tourist destinations Salvador and Maceio. The new flights complement Aerolineas Argentinas's service to Rio de Janeiro, Sao Paulo, Florianopolis and Porto Alegre. Aerolineas Argentinas also has increased the frequency of its service to Asuncion, the capital of Paraguay, to nine flights per week, to meet growing traffic demand. Separately, Aerolineas Argentinas has joined TWA's frequent flyer program.

Staff
ValuJet flew 113.1 million revenue passenger miles and boarded 243,038 passengers in December. The new-entrant carrier, which began flight operations in October 1993, passed the two-million-passenger milestone during the month. "When comparing the year-over-year traffic numbers, it is important to remember that ValuJet profitably achieved tremendous growth during our first year of operation, and today we are a different company than we were a year ago," said Robert Priddy, chairman. Dec 94 Dec 93 12 Mths 94 12 Mths 93

Staff
KLM's overall traffic - passengers, freight and mail - increased 11% last month from a year ago to 626.2 million revenue ton kilometers on 6% more capacity, pushing the Dutch airline's load factor up 3.9 percentage points to 74.3%. Passenger traffic increased 11% to 3.29 billion revenue passenger kilometers on 2% more capacity, increasing the load factor 5.2 points. The airline said its business-class traffic grew 10%, largely because of 18% growth on Far Eastern routes. Passenger growth was particularly strong on North Atlantic and African routes, KLM said.

Staff
A group of TWA creditors that has come out against the carrier's proposed financial restructuring plan says the airline's management is being too optimistic about the potential value of the carrier's stock. The Unofficial Committee of TWA's 10% Senior Secured Notes came out against TWA's restructuring proposal last week and urged the airline's noteholders to vote against the plan (DAILY, Jan. 6).

Staff
Airline Industry Stock Trends Closed Closed Exchange 1/3/95 11/30/94 Majors American NYSE $ 54.875 $ 50.750 America West (Class B) NYSE 7.750 9.000 Continental (Class B) NYSE 9.250 14.875 Delta NYSE 51.250 50.125 Northwest OTC 17.000 16.625

Staff
By the end of June, Aer Lingus must provide the European Commission with balance sheet information and other evidence that its TEAM Aer Lingus overhaul and maintenance subsidiary is viable and is not pulling down the entire company. At stake is the third tranche of state money earmarked for the airline.

Staff
FAA expects more than 1,000 airline and other aviation officials to attend its aviation safety conference today and tomorrow in Washington. It looks like the press will be attracted, too - last week, FAA Public Affairs handled more than 50 requests for credentials. Because of the conference, Sen. Larry Pressler (R-S.D.), chairman of the Senate Commerce, Science and Transportation Committee, dropped plans to conduct safety hearings this week.