Aviation Daily

Staff
The Epilepsy Foundation of America is a new partner of Northwest's AirCares program. The airline will promote the foundation through June, encouraging passengers to donate cash or WorldPerks certificates to the organization. AirCares works with a different non-profit organization every quarter in a public awareness and fund-raising campaign. Northwest offers 500 bonus miles to anyone donating $50 or more, or a Fly-Write certificate.

CIT

Staff
CIT said it has leased a DC-10-30 aircraft formerly operated by Aeromexico to Skyjet on an operating lease basis for 24 months.

Staff
Honeywell Air Transport Systems, Phoenix, Ariz., reported completion of testing and documentation for initial certification of the airplane information management system (AIMS) it developed for the Boeing 777 transport. The system is the largest commercial avionics design project the company has ever undertaken, involving more than 620,000 lines of software code.

Staff
Airline Industry Stock Trends Closed Closed Exchange 3/31/95 2/28/95 Majors AMR NYSE $ 64.750 61.125 America West (Class B)* NYSE 8.625 8.750 Continental (Class B) NYSE 11.125 8.750 Delta NYSE 62.750 58.000

Staff
State governments intend to spend $399 million in fiscal 1994-1995 for travel and tourism development and promotion, 7% more than the previous year and twice the rate of inflation, the Travel Industry Association of America said. Hawaii is projected to have the highest state travel office budget, at $34 million, followed by Illinois, $30.5 million, and Texas, $20.8 million. TIA said the fastest-growing tourism budgets are those of Mississippi, up 70% to $12.2 million, and West Virginia, up 56% to $6.3 million. The average is $8.1 million.

Staff
The market value of U.S. airline company stocks tracked by The DAILY rose sharply in March, bolstered by expectations of industry profits this summer and increasing confidence that carriers will restrain capacity growth. The combined value of the U.S. stocks increased 6.5% in March to $24.95 billion from $23.42 billion at the end of February. During the same period, the Dow Jones Industrial Average was up 3.7%, closing the month at 4,157.69, and the three transportation indices also increased.

Staff
DOT Secretary Federico Pena leaves today on a westward trip that will take him to Minneapolis/St. Paul and Seattle to tour Northwest facilities and participate in the debut of the Boeing 777. Today, Pena is scheduled to visit Northwest's facilities in Minneapolis/St. Paul with Chief Executive Officer John Dasburg. He will meet with mechanics at the carrier's maintenance facility and then discuss airline safety issues at the pilot training and crew resource management center - Northwest Aerospace Training Corporation, in Eagen, Minn.

Staff
The U.S. Court of Appeals dismissed complaints from Delta Friday and upheld DOT's 1993 award of two transatlantic routes to American. The suit grew out of the department's choice of American for routes to London from Nashville and Raleigh-Durham over Delta's proposed Salt Lake City-London service. In its complaint, Delta charged the route award violated established DOT policy, as well as administrative procedures designed to insulate such rulings from political influence (DAILY, Jan. 7, 1994).

Staff
Boeing completed its final certification tests on the No. 2 777 transport last week and reported that the aircraft is on track to attain joint certification this month from FAA and Europe's Joint Aviation Authorities. The second 777's production-configured information management system, thrust management system, flight management computer and electronic engine controls were tested last week, Boeing reported, and the six 777s in flight testing had completed 1,626 flights and 3,045 hours by April 12, nearly twice the testing conducted on the 767. The No.

Staff
The GPA Group plc of Ireland has filed a suit in the Bombay High Court seeking the return of two aircraft it had leased to the private Indian domestic carrier East West Airlines, according to EWA officials. GPA also wants a decree against EWA for a total of $1,256,903, covering lease rent, supplemental rent and default interest. Pending court proceedings, GPA has written to India's Directorate-General of Civil Aviation, asking it to ensure that no permit is issued to EWA to operate the leased aircraft.

Staff
American Trans Air's consolidated March traffic - both charter and scheduled - increased 38.8% on 37% more capacity, nudging its load factor up one percentage point to 76.7%. The number of passengers carried rose 29.2%. Through the first three months of this year, American Trans Air's consolidated passenger traffic rose 33.5% on 37.8% more capacity, resulting in a load factor decline of 2.3 percentage points. The number of passengers boarded rose 25.4%.

Staff
Anchorage-based MarkAir, which entered bankruptcy in 1992 and emerged last year, filed for Chapter 11 protection again late Friday in the face of threats by GPA to repossess aircraft. An Alaskan state agency turned down a $40 million loan guarantee in mid-March, resulting in employee layoffs and route cuts. The carrier then turned to its creditors and was near agreement with all lessors except GPA on restructuring its leases, said Tom Medland, director-U.S. sales and marketing.

Staff
In its second acquisition in the past few weeks, Eva Airways purchased a 20% stake in Taiwanese domestic carrier Great China Airlines. Earlier this month, Eva acquired a 21% stake in domestic carrier Makung Airlines (DAILY, April 7). An Eva spokesman said the international carrier paid Great China chairman and founder Tang Cheng about NT$15 million for 22 million shares of his airline's stock. Tang remains Great China's largest single shareholder, with 24.4% of the company. Great China operates domestic service with a fleet of nine Dash 8 aircraft.

Staff
FAA unveiled yesterday its action plan to address runway incursions amid charges that the agency has delayed development and deployment of the system. The Runway Incursion Action Plan includes a timetable for new technologies, with plans to launch the Airport Movement Area Safety System in San Francisco in May 1996 and apply it systemwide by 1997, and FAA Administrator David Hinson said the agency hopes to install it in 37 airports by 1999.

Staff
Citing its inability to operate to Saudi Arabia, Northwest is urging DOT to turn down Saudi Arabian Airlines' application for renewal of its authority to operate scheduled cargo and passenger service between Saudi Arabia and points in the U.S. Northwest said it has been unable to gain approval from the government of Saudi Arabia to begin service to the country despite receiving U.S. authority early in 1994 to serve Jeddah and Dahran via Amsterdam under it code-share arrangement with KLM.

Staff
USAir, whose auditors last week publicly questioned the carrier's ability to continue as a going concern, expects to end 1995 with more than $400 million in cash on hand - barring unforeseen circumstances.

Staff
Lone Star Airlines has hired David Rescino as VP-planning and corporate development. Rescino has worked for the past six years at Continental Express and has held positions at Chicago Airlines and Midway Airlines. He will evaluate the profitability of Lone Star's existing markets, make changes in service levels and analyze new markets.

Staff
Las Vegas McCarran Airport will host the third annual Las Vegas International Air Cargo Symposium May 10-11. Featured speakers are Bill Boesch, president of American Airlines Cargo, who will talk about air cargo and the global community, and Jan Meurer, VP and manager-cargo for KLM, who will address issues related to cargo and the 21st century. The Las Vegas International Air Cargo Center will open a 38,500-square-foot facility in May.

Staff
Franco-Italian turboprop manufacturer ATR signed a contract to sell Comair of Johannesburg, South Africa, two 48-seat ATR-42-320s as replacements for the carrier's Fokker 27 aircraft. The aircraft are scheduled to enter service next month and in June.

Staff
Air Pacific has launched weekly nonstop service between Fiji and Wellington using a Boeing 737-500 configured to accommodate eight passengers in business class and 100 in coach. "This new service provides the first direct flight to link Fiji with the capitol of New Zealand," said Nicholas Panza, director of the Americas and Europe for the airline.

Staff
Aerospace restructuring charges turned first quarter net earnings into a net loss at Sundstrand Corp., but Chairman and Chief Executive Officer Don O'Hare predicted "accelerated recovery in commercial aerospace sales" and increased the company's forecast of full-year earnings. O'Hare said Sundstrand still thinks its 1995 aerospace operating profit margin will be about 13% on flat sales, but "we anticipate that our operating margins will improve in 1996 and then return to historical levels as the benefits from the current restructuring take effect."

Staff
Subcontracting accounts for one-seventh of the European aerospace industry's total turnover, according to Eurostat, the European Union's statistics agency, but aerospace subcontractors employ more than one-third of the industry's work force. At 66%, France has the highest ratio of subcontracting to overall business among the 15 EU countries, the agency said.

FAA

Staff
- In Federal Register dated April 10...Issued an airworthiness directive on Jetstream 4101 aircraft requiring new case drain pipes...Issued an AD on certain Jetstream 4101 aircraft requiring modification of the spoiler system...Issued an AD on Airbus A300-600 aircraft requiring inspection for cracks in the bolt holes of Rib 9...Issued an AD on British Aerospace BAC- 111 aircraft requiring inspections of the bearings of the aileron control system.

DOT

Staff
Granted orally an exemption to Air New Zealand to perform scheduled combination service between New Zealand and the co-terminal points Los Angeles and Honolulu via intermediate points in Australia...Granted orally an exemption to United Parcel Service renewing its authority to perform all-cargo service between Louisville, Ky., and Mexico City, and between San Antonio, Texas, and Monterrey, Mexico...Granted orally an exemption to America West renewing its authority to perform scheduled combination service between Phoenix, Ariz., and Mexico City...Granted orally an exemptio

Staff
Japan Airlines, All Nippon Airways and Japan Air System are studying a plan to set up a joint cargo container handling company to save money. The company would buy, control and repair containers and other cargo-handling tools, leasing the containers to the airlines. The new company, which might be formed this year, would control more than 10,000 cargo containers, saving each airline upwards of 70 million yen per year.