Aviation Daily

Staff
Rankings of U.S. Carriers Consumer Reports November 1994 Complaints per 100,000 Rank Airline Passengers Complaints Passengers Majors 1 Southwest 0.15 6 3,946,415 2 USAir 0.61 30 4,895,986 3 American 0.63 42 6,707,071

Staff
United's systemwide passenger traffic rose 7% in 1994 on 1% more capacity, causing its average load factor to increase 4 percentage points to 71.1%. Traffic increased throughout United's system in 1994 despite declines in capacity in the North American and Latin American markets. North American traffic rose 6.5% on 0.6% less capacity, and Latin traffic rose 8.3% on 3.1% fewer available seat miles. Pacific traffic increased 9.2% on 6.4% more ASMs, and Atlantic traffic increased 4.3% on 2.1% more capacity.

Staff
AECTRA Refining and Marketing, a distributor of aviation fuel based in Houston, Texas, is urging DOT to deny TNT Sava any future authority to operate cargo flights between Brazil and the U.S. AECTRA said in repeated letters to DOT that Sava and its principal officer, Juvenal D'Oliveira, "are demonstrably unfit to enjoy any rights or privileges from the DOT." AECTRA said D'Oliveira also owns most of Coex Air Inc., for which he ordered and received $1.3 million worth of fuel, using Sava's permit.

Staff
Although the Republicans are now in charge, the membership of the Senate Commerce Committee, which oversees aviation, has changed little. There are only two new members of the panel, new Sens. Olympia Snow (R-Maine) and John Ashcroft (R-Mo.). Three committee members from the 103rd Congress are gone - Sens. John Danforth (R-Mo.) and Harlan Mathews (D-Tenn.) are no longer in Congress, and Sen. Charles Robb (D-Va.), apparently left the committee because of the reduction in the Democratic membership.

Staff
FAA has awarded an $800,000 technology development grant to American Science and Engineering Inc., of Atlantic City, N.J., to apply its patented X-Ray forwardscatter technology to the problem of automated explosives detection in baggage. The grant will fund the integration of forwardscatter and backscatter technologies into "a new-generation automatic detection system for airport deployment," said AS&E President Ralph Sheridan. "Forwardscatter measures the scattering of X-rays from organic materials, such as plastic explosives, in the forward direction," he said.

Staff
In its first meeting of the 104th Congress, the House Transportation and Infrastructure Committee yesterday approved new committee rules and ratified subcommittee membership. Chairman Bud Shuster (R-Pa.) outlined broadly the panel's agenda for the year, including "a major battle but a battle worth fighting" - a planned effort to take the transportation trust funds out of the unified federal budget. Shuster commended DOT's restructuring proposals as "a good start." Shuster selected freshmen Republican members to serve as vice chairmen of the subcommittees. Rep.

Staff
Regional Airline Association, in conjunction with FAA's imminent safety conference, will hold a press conference to discuss the results of the meeting. The RAA session is scheduled for Tuesday, Jan. 10, at 1:30 p.m. in the Zenger Room of the National Press Club at the conclusion of the FAA meeting, "Zero Accidents - The Challenge." RAA representatives will discuss the regional airline industry response to initiatives developed at the meeting.

Staff
John Sandford has returned as president and chief executive of Rolls-Royce in the U.S., a position he held between 1991 and 1993. In between, he was managing director of Rolls-Royce Aerospace Group in Derby, England. He succeeds George Davis, who is retiring.

Staff
Delta's systemwide traffic increased 4.1% in 1994 despite a 2% decline in capacity, boosting the airline's load factor four percentage points, to 66.3%.

DOT

Staff
DOT has extended the service obligation of CCAIR d/b/a USAir Express at Danville, Va., for an additional 30-day period through Jan. 27, or until a carrier capable of providing replacement service begins service, whichever is first. (Docket 49587)

Staff
Northwest has reached an agreement with Delta to purchase its Detroit- London route authority for the bargain price of $1.6 million after coveting the route for nearly four years. Delta is dropping the route as part of its plan to sell or trade any transatlantic service that is unprofitable despite reasonable marketing efforts. It declined to say how much money it lost in the market. The transaction is subject to government approval.

Staff
Two-term National Transportation Safety Board veteran John Lauber is joining Delta in a newly created position, VP-corporate safety and compliance. The appointment is in line with recent FAA moves to make sure airlines have a senior officer to oversee safety-related issues. Delta Chairman Ronald Allen said Lauber will be in charge of consolidating all flight and ground safety and compliance requirements, and he will work with Delta Connection carriers and other code-sharing partners.

Staff
Transportation Secretary Federico Pena's two-day "Zero Accidents-The Challenge" conference in Washington, D.C., is mostly a display of political grandstanding, according to industry observers. It follows sweeping declarations at two recent crash sites and schmoozing with passengers at airline ticket counters over Christmas. Airline executives had only 10 days' warning for their command appearances - three from each carrier plus FAA principal operations and maintenance inspectors - and not even FAA Flight Standards people had advance notification, The DAILY is told...

Staff
The Unofficial Committee of TWA's 10% Senior Secured Notes has rejected TWA's amended restructuring proposal as "inadequate and coercive" and yesterday urged holders of the notes to vote against the proposal and TWA's prepackaged reorganization plan. The rejection is a blow to TWA's restructuring efforts, but the severity of the damage was not clear late yesterday.

Staff
CFM International said yesterday its CFM56 family of engines was selected for more than half of all large commercial aircraft ordered in 1994. The company, owned jointly by General Electric of the U.S. and Snecma of France, rounded out the year with an International Lease Finance Corp. order for engines to power 23 firm and nine option Airbus A319, A320 and A321 aircraft. There are more than 2,300 CFM56 engines in service with more than 10,000 flight hours.

Staff
General Accounting Office, after studying the 1992 U.S.-European Union agreement aimed at reducing government support to manufacturers of large aircraft, says the deal gives both sides "reasonably strong incentives...to stay in the agreement."This outweighs provisions that produce "ongoing disagreement."

Staff
BE Aerospace took a $23.7 million pre-tax charge in the November quarter, the third in its fiscal year, leaving it with a net loss for the period of $18.76 million, or 90 cents per share, on sales of $57.3 million. In the same quarter last year, the company logged net earnings of $565,000, or three cents per share.

Staff
Despite widespread voluntary acceptance and use of Crew Resource Management (CRM) training among airlines, a National Transportation Safety Board survey of 21 commuter carriers suggests that their practices in incorporating the training vary widely. NTSB has implicated poor crew resource management in a series of recent fatal accidents, including an Oct. 28, 1989, Aloha IslandAir Twin Otter accident in Maui, Hawaii, a GP Express C-99 crash June 8, 1992, at Anniston, Ala., the Dec. 1, 1993, crash at Hibbing, Minn., of a Mesaba Jetstream 31, and the Jan.

Staff
American Eagle resumed commuter service at Chicago Wednesday as planned with Saab 340s replacing ATRs that have been relocated to warmer climates. Service also was increased at New York, where Eagle had reduced but not completely suspended flights. American Eagle grounded the ATRs at Chicago in mid-December, and reduced operations at New York because of FAA's decision to ban the operation of the aircraft in icing conditions (DAILY, Dec. 19).

Staff
U.S. negotiators will get off to a fast start in 1995, with no fewer than four rounds of bilateral talks planned this month. A new round of talks with Ukraine, beginning Jan. 9 (DAILY, Jan. 3), will be followed by the first two rounds of U.S.-Canada bilateral negotiations, which are slated for Jan. 16-17 in Ottawa and Jan. 23-27 in Washington, according to an industry official. While the two sides resolved some of their most difficult problems in the "framework" agreement signed late last month (DAILY, Dec.

Staff
GP Express, d/b/a Continental Connection, is expected to begin Continental feeder service at the senior partner's Greensboro, N.C., hub in March, possibly replacing some CALite jet operations. The carrier would operate some of the 15 Beech 1900Cs it took over from Continental Express at Denver when the wholly owned subsidiary closed its Denver hub last year. With Continental's Denver presence sharply diminished, however, GP Express has no one to feed. Some 1900s have been operating recently at Cleveland, replacing ATR-42s.

Staff
Teamsters union, which lost a close vote last month, seeks a new election to represent America West mechanics and related workers. The union charges threats and coercion by the airline and a faulty ballot count by the National Mediation Board.

Staff
American, once the largest U.S. airline, shrank in 1994, as planned. Its systemwide capacity fell 5.1% from 1993, but its traffic increased 1.8%, driving its load factor up 4.4 percentage points to 64.8%. American parent AMR Corp. is downsizing the airline in an effort to cut costs and has said it will continue on that course until it can secure wage concessions from its employees. American's domestic traffic rose 0.3% on 6.1% fewer available seat miles during the year, and international traffic rose 5.3% on 2.7% less capacity.

Staff
Cold weather followed Continental Express' ATR turboprops south for the winter this week, grounding most Houston departures Wednesday and Thursday. Freezing temperatures canceled nearly 100 ATR flights Wednesday and virtually the entire schedule Thursday.

Staff
Carnival Air Lines is offering $149 one-way fares between Los Angeles and southern Florida through Feb. 15 for travel on Sundays, Mondays or Thursdays. The fare, the lowest the carrier ever has offered from Los Angeles, does not require an advance purchase or minimum stay. Carnival operates daily nonstops to Miami and said it will add Los Angeles-Fort Lauderdale service Jan. 19 with the only nonstops in the market.