Aviation Daily

Staff
Dassault Industries Group and the Taiwan Ministry of Economic Affairs have signed a strategic alliance agreement that reportedly provides for the ministry to help the company promote investment and cooperation projects through Taiwan's Committee for Aviation and Space Industry Development. Neither party would describe the pact. It was signed by Serge Dassault, president of Dassault Aviation, and Yang Shihchien, vice minister of economic affairs.

Staff
LOT Polish Airlines' passenger volume during the first six months of 1995 increased 21% from last year's first half, to 812,000, and the airline expects the total to reach 1.8 million this year, an increase of 20% over 1994. LOT attributed much of the growth to a surge in domestic travel within Poland and its increased frequency of service between the U.S. and Poland. "Our strong showing on the domestic front is encouraging," said Marek Sidor, LOT's general director, North America. "And by adding three flights a week between the U.S.

Staff
FAA will implement nighttime jet aircraft procedures Friday in a response to noise complaints involving the new Denver Airport. DOT Secretary Federico Pena told Denver Mayor Wellington Webb that FAA will institute the measures on a test basis for both operational and environmental evaluation. Earlier this year, Webb asked for assurances by FAA that the airport would be operated in accordance with its environmental impact statement (EIS).

Staff
Delta is considering leasing A310 pilot crews to Air Jamaica for New York Kennedy-Kingston service and is interested in other profitable "insourcing" opportunities, but some significant issues remain, according to Delta's employee newsline.The carrier announced earlier it was phasing out its A310s by the end of 1995.

Staff
United filed a petition yesterday at the U.S. Court of Appeals for the District of Columbia Circuit to get DOT to reconsider its order granting American authority to provide scheduled combination service in the Los Angeles-Guadalajara market. In its final decision reached earlier this month, the department reversed a tentative decision awarding the route to United (DAILY, Aug. 3).

Staff
U.S. National Carriers Operating Revenues and Expenses First Quarter 1995 Operating Operating Revenues Expenses (000) (000) First Quarter 1995 Alaska $ 238,363 $ 252,564 Aloha 53,390 54,682 American Trans Air 182,618 171,999

Staff
DOT has instituted the 1996 U.S.-Italy Service Proceeding to select an additional primary and backup carrier to provide scheduled combination service in the market. To be available April 1, 1996, the new route opportunity was included in the terms of the 1990 U.S.-Italy agreement, amended in December 1991. The agreement allows for a fifth carrier to operate between any point in the U.S., except New York/Newark and Chicago, and co-terminal points Milan and Rome.

Staff
Canada, which plans to begin charging airlines for overflights Nov. 1, may be copied by the U.S. as part of an FAA reform package. Canada's plan for overflight charges - in advance of next April's transfer of air traffic control to a corporation - will cost foreign airlines C$165 million on an annual basis, according to the International Air Transport Association. IATA Director General Pierre Jeanniot has scheduled a news conference today in Montreal to discuss the concerns of member airlines.

Staff
The government of The Netherlands reportedly has banned Amsterdam Schiphol Airport police from testing security by placing explosives or other devices in passengers' baggage. The action follows an incident Friday in which police planted several ounces of "explosive materials" - with no detonator or fuse - in the suitcase of an American traveling to Florida, the Associated Press reported. Upon arriving, the passenger complained to Northwest Airlines that his suitcase had been torn.

Staff
Continental and Alitalia are urging DOT to dismiss industry opposition and approve a renewal of their code-share arrangement, as well as a proposed amendment permitting Continental to operate the flights as its own, rather than as wet-leases to Alitalia. The proposal encountered stiff opposition from Delta, American, United and TWA (DAILY, Aug. 11).

Staff
Airmax, a leading cargo management company serving international airlines, said yesterday it has reached an interline agreement with Korean Air Lines (KAL) to create a cargo hub in the midwestern U.S. Under the accord, Airmax will provide handling, road feeder service and cargo management systems from Chicago O'Hare Airport, enabling Korean Air to deliver cargo to more than 100 cities within a 1,000-mile radius of Chicago. The cargo will be managed at Airmax's new 68,000-square-foot Chicago warehouse.

Staff
Draft airport privatization legislation made public Monday in Australia would limit cross-ownership of some combinations of airports in addition to capping charges for five years (DAILY, Aug. 22). The legislation, expected to be introduced next month in Australia's Parliament, provides for the long-term lease of Sydney Kingsford Smith, Sydney West (Badgery's Creek), Melbourne, Brisbane and Perth airports by the end of 1996. The remaining airports among the 22 now operated by the Federal Airports Corporation (FAC) would be privatized during 1997 and 1998.

Staff
Senate aviation leaders drafting bipartisan FAA reform legislation are considering a phase-in of dedicated user fees to replace current aviation excise taxes, implementing several fees almost immediately and allowing more time to develop air traffic control user fees (DAILY, Aug. 11). Senate leaders are aiming for Senate Commerce Committee approval early in September - before a House-Senate conference on the DOT appropriations bill (H.R.2002), which includes provisions exempting FAA personnel and procurement rules from a number of federal laws and regulations.

Staff
TWA is to emerge today from its brief, pre-packaged trip through Chapter 11. The carrier went into bankruptcy - its second in less than four years - in late June as a way to implement a complicated debt-for-equity financial restructuring that will slice $500 million off its debt burden.It still will be more than $1 billion in debt as it comes out of Chapter 11, however.

Staff
McDonnell Douglas Corp. and Taiwan-based Air Asia Co. Ltd. have signed a licensing agreement that makes Air Asia the U.S. manufacturer's authorized maintenance contractor in Asia. The agreement, signed by Richard Jones, MDC regional VP, and Jack Sun, Air Asia chairman, provides for Air Asia to carry out warranty repairs, retrofitting, performance upgrading, maintenance work to comply with airworthiness directives and service bulletins, component overhaul and repair, and parts replacement for operators of MDC aircraft.

Staff
IATA projects in its new European Air Transport Forecast that international scheduled traffic to, from and within Europe will grow on average 5.1% a year to 2010. The forecast's average annual growth rate for total passenger traffic on all services in Europe, including international scheduled, domestic scheduled and charters, is 4.5%. France, Germany, Spain and the U.K. accounted for 69% of European domestic traffic growth in 1993, but IATA believes their share will shrink to 58% in 2010.

Staff
Airport Systems International said it was selected to provide an instrument landing system for Capital Airport, Springfield, Ill. The company said Springfield is the second city, after Concord, N.C., to select recently a commercial, off-the-shelf ILS over comparable equipment developed under FAA's facilities and equipment program. ASI and Wilcox Electric produce commercial systems that are certified by FAA and cost about 40% less than the FAA's F&E alternative, according to Mike Warner, VP of ASI.

Staff
Polar Air Cargo has asked DOT to amend its operating certificate to enable it to expand its scheduled all-cargo service and integrate the proposed new points with its existing service destinations. The carrier has asked for permission to operate between the U.S. and points in Egypt, Fiji, Ireland, Pakistan, Panama, Paraguay, Saudi Arabia, Sri Lanka, Turkey, Uruguay and Venezuela, using Boeing 747F aircraft. By September 1995, Polar Air will be serving nine countries on a scheduled basis and four on a regular charter basis.

Staff
Scandinavian Airlines System is seeking broad new operating authority to expand its service to the U.S. and beyond. Submitted yesterday under terms of June 16 open skies agreements between the U.S. and Denmark, Norway, and Sweden, SAS asked DOT for authority to operate between a point or points in the three Scandinavian countries, via intermediate points, to a point or points in the U.S. and beyond. The carrier said it is considering the launch of a number of services before Jan.

Staff
Alaska Airlines will tap into Northwest's worldwide network under a marketing and code-sharing agreement, announced yesterday as one of the largest such arrangements ever between two major U.S. airlines. The agreement covers 280 flights a day to 37 cities, connecting Alaska's stronghold in the Pacific Northwest with Northwest's flights to the Pacific and its code-share service with KLM to Europe and beyond.

Staff
A Lockheed L-1011-200 aircraft converted to a freighter, said to be the first of its kind, has arrived at American International Airways in Ypsilanti, Mich., from Marshall Aerospace in Cambridge, England. Conrad Kalitta, AIA president, said the aircraft can carry up to 125,000 pounds of cargo as much as 5,300 miles. AIA purchased three L-10lls from British Airways for conversion last fall, with options for five more. The options have since been converted to firm orders, he said.

Staff
Airline Industry Stock Trends Closed Closed Exchange 7/31/95 6/30/95 Majors AMR NYSE $ 75.000 $ 74.625 America West (Class B) NYSE 14.000 12.125 Continental (Class B) NYSE 27.250 25.125 Delta NYSE 79.250 73.750 Northwest OTC 38.375 35.325

Staff
Singapore Airlines will offer double mileage to American's AAdvantage members and Delta's SkyMiles members traveling in first or business class on all segments of its new San Francisco-Seoul-Singapore route. The carrier launched the service July 11, and the promotion is effective Aug. 20-Dec. 31.

Staff
AeroNAFTA conference, sponsored by the Fort Worth Chamber of Commerce, Bell Helicopter Textron and Lockheed Martin Tactical Aircraft Systems, will be held Oct. 5-6 at Fort Worth Alliance Airport. The conference will explore opportunities for the aviation and aerospace industries created by the North American Free Trade Agreement. Speakers include Rep. Pete Geren (D- Texas); Carlos Ruiz Sacristan, Mexico's secretary of communications and transport; and Edmundo del Valle Soria, Argentina's secretary of transportation.

Staff
Draft legislation to privatize major Australian airports would cap airport charges for five years and allow the Prices Surveillance Authority to monitor the charges.Non-Australian interests would be limited to 49% stakes in the long-term leases, and airlines would be limited to 5%. Leases would run 50 years and could be renewed for another 49.