Aviation Daily

Staff
Horizon Air has asked DOT to renew its authority to operate large aircraft on its scheduled service between Seattle and Vancouver. The carrier, which has been operating 37-passenger Dash 8s on the route, initially received permission Feb. 3, 1994, from the department to operate Fokker F28 aircraft on the route. At that time, the carrier agreed to "rope off" two seats to reduce aircraft capacity to 60 passengers to comply with the restrictions of the Regional Notes, governing U.S.-Canada operations.

Staff
Atlantic Southeast flew 60 million revenue passenger miles in December, a 0.3% decline from the 60.2 million logged in December 1993. Capacity dropped 4.5% to 130.8 million available seat miles from just under 137 million. As a result, the load factor rose two percentage points to 45.9%. Enplanements dipped 1.9% to 238,207 from 242,944. Dec. 94 Dec. 93 12 Mths 94 12 Mths 93 RPMs 60,001,903 60,184,092 780,227,698 641,474,997

Staff
The Regional Airline Association is exploring ways to publicize the commuter airline safety record. After the DOT Aviation Safety Conference in Washington this week, RAA introduced a brochure concentrating on distinguishing facts from fiction about the system's safety record. The group also is looking using its sales agents to get the safety message out, and may produce a video that can be used by the airline at public events, such as speaking engagement.

Staff
Northwest will make four transatlantic flights smoke-free, beginning March 1. Flights from Detroit to Frankfurt and Paris, and to London from Minneapolis/St. Paul and Boston, will be non-smoking flights, as will be Detroit-London flights once Northwest completes the $1.6 million acquisition of that route from Delta. After the changes, all of Northwest's transatlantic service will be smoke-free except for code-sharing flights with KLM to Amsterdam.

Staff
David Stempler, the ubiquitous president of the International Airline Passengers Association, called to chide The DAILY for referring to his "association" as an insurance broker. IAPA, he said, merely buys air travel coverage from insurance companies and then sells it to its members - at a profit, which apparently is not be misconstrued as a commission. On another front, Stempler refused to discuss his stand that IAPA members should not fly on ATR aircraft despite the FAA's lifting of icing restrictions. "I'll catch up with you later," he said.

Staff
United Chairman Gerald Greenwald has put his carrier's safety expertise at the disposal of the government in its effort to achieve zero accidents, and he pledged to work "closely with the agencies [FAA and DOT] to establish specific timelines for implementation of new safety standards that make good economic sense." James Coyne, president of the National Air Transportation Association (NATA), called for a rollback of aviation taxes to help carriers pay for new safety standards.

Staff
Appleton, Wisconsin-based Air Wisconsin's traffic increased 32.4% to 30.9 million revenue passenger miles in December compared with 23.3 million RPMs in December 1993. Capacity increased 12.7% to 57.5 million available seat miles from 51 million, pushing the load factor up 7.9 percentage points to 53.7% from 45.8%. Passenger boardings rose 29.5% to 151,263 from 116,790. Comparisons are for jet operations only; Air Wisconsin no longer has a turboprop operation. Dec. 94 Dec. 93 12 Mths 94 12 Mths 93

Staff
CASA has reportedly officially canceled its proposed 70-passenger CASA 3000 high-speed turboprop, although The DAILY was unable to confirm the report independently. The Spanish manufacturer has been unable to secure a joint venture for the project, which was considered a prerequisite. Avions de Transport Regional, meanwhile, has turned its attention back to its proposed joint venture with Jetstream Aircraft Ltd., after its attention had been diverted to the ATR icing issue. CASA had been considered a potential partner in that arrangement.

Staff
TWA expects to achieve net earnings of $50 million this year, $104 million in 1996 and $149.4 million in 1997 if its out-of-court financial restructuring succeeds, according to the airline's management and details contained in the amended S-4 registration statement the company filed with the Securities and Exchange Commission. The carrier was more bullish in its original S-4, filed last October, when it forecast net earnings of $67.4 million in 1995, $112 million in 1996 and $155.9 million in 1997.

Staff
Japan Airlines, which projected positive financial results this week, outlined plans for fleet and service increases in its business plan for fiscal 1995 (DAILY, Jan. 11). The carrier plans to introduce eight new aircraft to its fleet during the year: three MD-11s, two Boeing 777s, one 767-300 and two 737-400s. It also will wet-lease two 737-400s from subsidiary Transocean Airlines and retire one 747. Subject to government approval, JAL plans to bolster service to Europe and Hawaii.

Staff
Testing of a portion of the $52.9 million alternate baggage system at Denver Airport went off without a hitch Tuesday, the City of Denver said. Public Works Department spokeswoman Amy Lingg said the portion tested will serve United's outbound baggage, which accounts for about 50% of the system. The alternate system, although fully built, is in different stages of testing for each airline, Lingg said. In scheduling tests, Denver is trying to make each section of the system available to airlines for training by Jan. 31. The airport still hopes to open Feb. 28.

Staff
USAir affiliate CCAIR saw its December load factor decline 5.3 percentage points to 45% from 50.3% in the same 1993 month. Revenue passenger miles declined 0.9% to 11.2 million from 11.3 million, but capacity jumped 10.9% to nearly 25 million available seat miles from 22.5 million. Dec. 94 Dec. 93 12 Mths 94 12 Mths 93 RPMs 11,222,308 11,328,279 147,103,145 142,614,783 ASMs 24,965,564 22,517,337 290,553,572 289,070,946

Staff
AirTrain is petitioning DOT for a three-month exemption from dormancy rules so that it can have more time to gain FAA certification. The would-be carrier was slated to begin scheduled and charter service from its Pittsburgh base by Jan. 24. The critical problems have been a delay in aircraft inspection and "bridging" the aircraft to maintenance, said J. Elliot Black, president and chief executive officer of AirTrain.

Staff
Massachusetts Port Authority is objecting strongly to Northwest's decision to move its seven weekly summer Frankfurt frequencies from Boston to Detroit. Northwest told DOT last week of its intention to move the service, which is allocated to it on a "grandfather" basis (DAILY, Jan. 6). Calling the Boston-Frankfurt route "a critical part of Boston's international service," Massport is urging DOT to withhold the seven frequencies from Northwest and assign them to a replacement Boston- Frankfurt airline.

Staff
USAir is offering $69 and $79 one-way fares from Washington National Airport to Orlando, Tampa, Fort Lauderdale, West Palm Beach, Miami and Fort Myers. The fares apply to travel on Tuesdays and Wednesdays, and tickets must be purchased by Jan. 22 for travel completed by Feb. 15. Low-fare carrier ValuJet recently announced expanded service from Washington Dulles to Fort Lauderdale, Orlando and West Palm Beach (DAILY, Jan. 5).

Staff
FAA's recent actions on aviation safety are "laudable," but the agency "must overcome a number of long-standing problems if this proactive posture is to be effective in the long term," the General Accounting Office said yesterday. At a Senate Commerce Committee oversight hearing, Kenneth Mead, GAO director-transportation issues, said FAA continues to have training problems in two critical areas, certification of advanced technologies and aircraft inspection.

Staff
Status Report - U.S.-Canada Regional/Local Commuter Service Applications City Pair Carrier Status (A) By Canadian Carriers For Automatic Approval Pemberton, British Col- Voyageur Airways Sent to Agency for umbia-Seattle d/b/a Prime Air carrier selection Fredericton, New Bruns- Air Nova Sent to Agency for wick-Boston carrier selection Moncton, New Brunswick-Boston

Staff
State of negotiations between USAir and its pilots over wage and work rule concessions has led the pilots negotiating committee to meet this week, as an extension of special meetings conducted last week, to discuss strategies and contingency plans. The pilots-flight attendants-dispatchers-mechanics labor coalition that met for a status briefing Jan. 10 plans to meet again Jan. 19. The pilots say they are "maintaining contact" with this week with mediator Gerald Baliles.

Staff
Atlantic Coast Airlines, a United Express carrier, has ordered 20 Jetstream 41 aircraft valued at $140 million. The carrier, the North American launch customer, now operates 15 of the aircraft. Delivery is to begin this month and be completed in mid-1997. The carrier also announced that it had signed definitive documentation and closed on the funding of a previously announced $20 million recapitalization transaction with British Aerospace affiliate JSX Capital Corporation. The transaction is subject to regulatory review.

Staff
Northwest and Japan Air System, Japan's third-largest carrier, are in negotiations that could lead to operational and marketing cooperation. Northwest confirmed yesterday that discussions are under way, but it declined to elaborate and said no agreement has been reached. News reports from Japan quoted a JAS spokesman as saying an agreement may link JAS' domestic operations with Northwest's international flights at the new Kansai Airport near Osaka.

Staff
Airline Industry Stock Trends, By Month The Year 1994 Closed Closed Exchange 1/31/94 2/28/94 Majors American NYSE $ 71.750 $ 63.250 America West (Class B)* NYSE 1.594 2.375 Continental (Class B) NYSE 24.875 22.375 Delta NYSE 55.875 49.625

Staff
FAA's proposal for "direct final rulemaking" on non-controversial, consensual rules may "violate federal law requiring public notice and opportunity to comment," according to John Yodice, general counsel of the Aircraft Owners and Pilots Association. The proposed procedures "may well contravene the intent, if not the letter, of the Administrative Procedures Act," Yodice said. The law established minimum procedural requirements to balance the broad administrative powers of federal agencies, he said.

Staff
Air Transport Association said John Meenan, elected recently to the newly established position of VP-administration, will oversee security, passenger and cargo facilitation issues and environmental affairs for the association. He will coordinate those issues with airports, continue to handle special projects for the ATA president, and remain general counsel for the Air Travel Card. Meenan has been with ATA since 1985, serving as assistant general counsel before his recent promotion.

Staff
U.S. Transportation Systems has completed its acquisition of Suncoast Transportation, which it helped establish in 1993 as a joint venture.

Staff
Delta and United have applied for new Canadian routes opened up by the U.S- Canada framework accord signed late last year. Delta wants authority to operate two daily roundtrips between Atlanta and Toronto, using 757s. It also seeks twice-daily roundtrip service between Salt Lake City and Vancouver, and between Atlanta and Montreal, using 727s. United has applied for twice-daily flights between San Francisco and Vancouver. Signed by both countries Dec. 22, the framework agreement permits the U.S.