Aviation Daily

Staff
Lufthansa Technik AG has developed what it said is the first system for transporting the seriously ill that can supply oxygen reliably on very- long-range flights. The system includes a breathing apparatus with an oxygen capacity of 13,000 liters. The solution to aviation authorities' rules against carrying large quantities of oxygen in aircraft cabins was a central link to the aircraft's exterior, securing the system's four oxygen flasks against leakage into the cabin.

Staff
Delta's systemwide passenger traffic rose 2.7% in January from the same month a year ago on 0.5% more capacity, boosting its load factor 1.3 percentage points. The number of passengers boarded systemwide increased 3.4%. Delta's domestic traffic was up 3.2% on a like amount of additional capacity, and its international traffic rose 1.3% despite an 8% decline in capacity. "The new year has started out positive for us with an increase in terms of passenger boardings and load factor over a very strong January last year," said Delta Senior VP-Marketing Robert Coggin.

Staff
Comair Holdings has reached an agreement with the Canadair Group of Bombardier to exercise options on five Regional Jets, and it placed a conditional order for 10 aircraft with options on 25 more. Comair Holdings valued the 15 aircraft at about $260 million and said the deal is subject to financing arrangements. The aircraft would be delivered next year, and the 25 on option would be delivered in 1997 and 1998.

Staff
AlliedSignal yesterday reported record sales and net income in 1994. Earnings increased 16% from the previous year to $759 million, while sales grew 8% to $12.8 billion. Earnings also rose 16% in the fourth quarter to a record $205 million, while sales were up by the same percentage to $3.5 billion, also a record. AlliedSignal Aerospace reported its first sales increase since 1990. Full-year sales were up 2% to $4.6 billion and income increased 14% to $260 million.

Staff
Air New Zealand plans to increase its operations from Los Angeles July 1 with two more weekly nonstops to Sydney, for a total of five, plus an eighth to Auckland and a fourth to London Heathrow. To accommodate the additional service, Air New Zealand will add a 747-400 from International Lease Finance Corp. to its fleet later this year. With the additional service, Air New Zealand will operate 27 flights a week from Terminal 2 at Los Angeles.

Staff
FAA has notified bidders of a one-month delay in awarding its $500 million wide area augmentation system contract because of uncertainty over whether the Defense Department will require encryption of signals from its Global Positioning System satellites (DAILY, Jan. 30).Until FAA knows what DOD intends - and its position appears to be hardening - it cannot evaluate the bids fully. Contract award was planned in March or April.

Staff
Southwest has deployed 15% to 20% of its total capacity in new markets, far more than usual.The airline, which acquired Morris Air at the end of 1993 and spent much of last year integrating its operations, historically puts only about 5% of its capacity in new markets.

Staff
Southwest's January passenger traffic rose 3.7% from last year on 13.3% more capacity, causing the airline's load factor to drop 5.3 percentage points to 57.3%. The number of passengers carried increased 4.4%. The carrier's load factor performance is likely the result of the addition of new markets last year, particularly the launch of service to Salt Lake City, Tucson and Boise in the fourth quarter. January 1995 January 1994 Rev. Passenger Miles 1,663,423,562 1,603,750,449

Staff
Skyways of Sweden is still considering a purchase of Saab 2000 aircraft, contrary to a report in The DAILY Feb. 3.

Staff
KLM's overall traffic - passenger, cargo and mail - increased 12% to 599.8 million revenue ton kilometers last month on 7% more capacity, increasing the load factor 3.1 percentage points to 71.5%. The airline's passenger traffic rose 10% to 3.5 billion revenue passenger kilometers on 4% more capacity, boosting the load factor four points to 73.9%. KLM reported significant load factor increases on flights to the U.S. and Africa. Business-class traffic rose 9% and coach class increased 11% for the month.

Staff
All Nippon Airways has relocated its West Coast offices to Gramercy Plaza, 2050 W. 190th St., Torrance, Calif. The new offices, where about 60 people are employed, consolidate space the company occupied in the AT&T building in downtown Los Angeles and the Herbalife building near Los Angeles Airport. ANA signed a 10-year, $4.2 million lease on the new property.

Staff
El Al will emerge from receivership on Feb. 14 after 13 years, and Israel's privatization committee will appoint a board of directors for the carrier, the government said Sunday. The committee also approved the government's retention of a golden share in the airline to safeguard national interests once the airline is privatized, Reuter reported. The government expects to retain about a 49% interest in the airline.

Staff
Ladeco and five other Chilean companies are spearheading a "Destination Chile" program in North America this year. A number of companies are expected to join the program soon, Ladeco said. As part of the program, the Chilean airline has added six daytime flights a week to its regular daily nonstop schedule between Miami and Santiago. The promotional program is being supported by Sernatur, the Chilean National Tourist Board, and the Corporacion de Turismo.

Staff
Thrifty Car Rental has formed a marketing partnership with Gulfstream International Airlines that enables the car-rental agency to tap into business bound for Florida and the Bahamas. Gulfstream, based in Miami Springs, is a regional feeder for United. The partnership permits Gulfstream to sell Thrifty services to customers booking flights.

Staff
DOT has apologized to United Express/Atlantic Coast Airlines for issuing a statement saying the carrier had been cited for misleading advertising, said Mark Bisnow, ACA's general counsel. The airline was named as one of three using deceptive advertising during the recent holiday season. In a letter to Bisnow, DOT said it had not characterized the ads - which said $3 passenger facility changes "may" instead of "will" apply to certain fares - as misleading.

Staff
U.S. carriers squared off over the value of DOT's code share study, issued late in December. Conducted by Gellman Research Associates for DOT, the study drew critical responses from American, TWA and USAir and praise from the rest of the majors. "It would be a serious mistake to allow the flawed Gellman study to end the debate on code sharing," said American.

Staff
Carnival Air Lines has opened a city ticket office in the Little Haiti area of Miami, to be staffed by agents fluent in English and Creole. It launched daily nonstop service recently between Miami and Port-au-Prince.

Staff
Southwest frequent flyer program members can now earn miles by making long- distance telephone calls using MCI. For every $150 spent on calls, Company Club members earn one bonus segment, and new MCI customers will receive four bonus segments for enrolling in the program. MCI offers similar programs with Northwest, American and Continental.

Staff
USAir yesterday received a proposal from its Air Line Pilots Association, Machinists and Transport Workers units for wage and benefit concessions. The offer came one week after the carrier announced massive 1994 losses and a plan to become a company with "fewer planes and people." The proposal, which will be discussed this week with management, includes a concessions package, together with projected returns and changes to corporate governance.

Staff
Regional Airline Association, not waiting for likely FAA regulation, has scheduled a crew resource management (CRM) conference and workshop Feb. 28- March 2 at the American Airlines Training Center, Dallas/Fort Worth Airport. The objective is to help carriers expand CRM training and make more effective use of it. FAA recently proposed such training for airline flight crews and dispatchers.

Staff
Alaska Airlines' January passenger traffic increased 20.2% over the same month last year on 25.9% more capacity, producing a load factor decline of 2.5 percentage points. The number of passengers boarded rose 19.7%. January 1995 January 1994 Rev. Passenger Miles 588,000,000 489,000,000 Available Seat Miles 1,089,000,000 865,000,000 Load Factor (%) 54.0 56.5 Passengers 682,800 570,600

Staff
Leisure Air, 12 days after filing for Chapter 11 bankruptcy protection, has suspended all operations. The carrier, based in McLean, Va., initially said it had no plans to cut back its schedule. On Jan. 29, two days before shutting down, a company spokesman told The DAILY the airline would operate on a reduced schedule (DAILY, Jan. 30). Leisure Air could not be reached yesterday for comment.

Staff
DOT Secretary Federico Pena unveiled the department's fiscal 1996 budget proposal yesterday, calling for a cut of about 5% in outlays and a sweeping restructuring of the way DOT funds programs. DOT is proposing $36.9 billion overall, about $2 billion less than the $38.9 billion enacted by Congress for the current fiscal year. The proposal reflects a continued reduction in employees, program cutbacks and the elimination of programs, such as the Essential Air Service.

Staff
Sabreliner Corp. will sell its general aviation fueling facility at St. Louis Lambert Airport to comply with a Justice Department determination that the company cannot operate monopoly fueling services by owning both Sabreliner and Midcoast Aviation. Sabreliner, which bought Midcoast last November, said it does not believe the facts justify the Justice decision, because market forces in an area beyond Lambert Airport affect fuel prices.

Staff
American's summer schedule, announced last week as part of an effort to concentrate on more profitable markets, includes new flights to Europe and Latin America from six U.S. gateways (DAILY, Feb. 3). The carrier is planning a second Boston-London Heathrow flight, beginning May 1, and is reinstating a sixth daily flight between New York Kennedy and Heathrow April 2, which will increase to seven May 25. New York Kennedy-Manchester service will start June 1.