Aviation Daily

Staff
The civil aircraft recovery that began slowly last year is picking up steam, and Boeing is the biggest beneficiary, data issued yesterday by Aerospace Industries Association indicate. All three major aircraft manufacturers were better off at mid-1995 than when 1994 ended. Boeing's 133 net new orders through the second quarter outpaced 1994's full-year total by more than 96%. At 48 aircraft, Airbus Industrie is two-thirds of the way to its 1994 total.

Staff
Air Canada hopes to wrest Canada-Italy authority from rival Canadian Airlines International by invoking the use-it-or-lose-it clause in Canada's new international aviation policy. Yesterday, Air Canada said it plans to apply to Transport Minister Doug Young for authority to fly to Italy from Montreal and Toronto using Boeing 767s because Canadian's service has dipped or soon will dip below mandated levels.

Staff
U.S. Major and National Carriers Rental Expenses First Quarter 1995 % Of Total Operating Systemwide Expenses America West $ 61,034,406 18.89 American 275,017,000 8.02 Continental 159,606,000 13.68 Delta 281,297,000 9.66

Staff
Aerovias de Mexico d/b/a Aeromexico has successfully completed its financial restructuring through the issuance of new five-year Euronotes and US$530 million recapitalization by existing shareholders and creditors, the company said this week. The new Euronotes are being exchanged for US$137.5 million in outstanding Euronotes and Euro-commercial paper.

Staff
U.S. Major and National Carriers Commission Expenses First Quarter 1995 % Of Total Passenger Systemwide Revenues America West $ 28,893,856 8.99 American 303,841,000 9.68 Continental 94,442,000 9.24 Delta 285,578,000 10.65

Staff
Mesaba Aviation flew 29.3 million revenue passenger miles in July, a 3.1% decline from the July 1994 level of 30.2 million. Capacity dropped more quickly - 4.3% to 61.4 million available seat miles from 64.1 million in July 1994. The load factor rose 0.6 percentage points to 47.7% from 47.1%. Passenger boardings decreased 2.1% to 132,495 from 135,326. Mesaba, which operates as Northwest Airlink, serves 55 airports in 16 states and one Canadian province. July 1995 July 1994

Staff
Delta Connection affiliate Comair logged 105 million revenue passenger miles last month, a 26.6% increase from the 82.9 million recorded in July 1994. Capacity did not keep pace, rising 19.6% to 197.1 million available seat miles from 164.8 million. As a result, load factor enjoyed a a three- percentage-point increase to 53.3% from 50.3%. Passenger enplanements were up 18% to 328,742 from 278,528.

Staff
Northwestern Business Travel, one of the largest travel management firms in the U.S., has completed a company-wide transition to Worldspan's World Ledger 4000 with Windows accounting and information system. Two IBM AS/400 computers are the hardware platform for the newly installed system. Northwestern also plans to explore the use of Worldspan's TechXChange products, the computer reservations system company said.

Staff
The Senate Appropriations Committee last Friday and the full Senate this week modified DOT appropriations bill language three times to allow continued subsidized air service for certain communities. A fourth effort to preserve essential air service subsidies for two New England points was dropped. The House and Senate now go to conference on EAS measures that are quite different. The House approved $15 million for the program, providing for a 50% local match. The Senate EAS funding level is more than $10 million higher without a local match requirement.

Staff
Eastern Australia Airlines, a Qantas subsidiary, has placed an order with Bombardier for one de Havilland Dash 8 Series 200 and secured options on another three aircraft, Bombardier said. The initial Series 200 delivery, scheduled January 1996, will be the first delivery of Bombardier's newest production Dash 8 model in that country, the manufacturer said. The Series 200 has 37 passenger seats and boasts excellent "hot-and-high" performance characteristics.

Staff
Miami-based Gulfstream International Airlines reported record boardings of 31,526 passengers in July, a 59.8% increase from July one year ago. Revenue passenger miles rose 58.9% to 5.8 million from 3.7 million, as capacity increased 40.9% to 10.2 million available seat miles from 7.3 million. Load factor rose 6.4 percentage points to 56.7% from 50.3%. President and Chief Executive Thomas Cooper said, "We are encouraged by our steady growth," adding that the carrier believed "that the trend will continue" in the latter portion of the year.

Staff
The Aviation Rulemaking Advisory Committee (ARAC) is looking at adding some parameters to the flight data recorders of 737s that would track rudder performance, Thomas McSweeny, FAA director of Aircraft Certification Service, said yesterday. The committee also is considering the "feasibility and time frame" of retrofitting the aircraft with newer recorders, as recommended by the National Transportation Safety Board, McSweeny said.

Staff
Unisys Corp. and Mexicana have signed a five-year agreement under which Unisys will maintain and support Mexicana's USAS software and renew its software licenses. The renewals cover USAS passenger processing solutions, as well as operating system software and AIR/net communications software. The maintenance and support contract covers the software and the Open 2200 enterprise servers on which it runs.

Staff
DOT is requiring Air Midwest, operating as USAir Express, to continue operating essential air service at Topeka, Kan., through Sept. 15, or until a carrier capable of providing the EAS begins the service, whichever occurs first.

Staff
Chicago Express Airlines is celebrating its second birthday today by holding drawings at Midway Airport for free tickets. Any passenger whose birthday is today, and is traveling on Chicago Express will receive free unlimited travel for the rest of the year. The airline, which operates Jetstream 31s, flies to Grand Rapids, Green Bay, Des Moines, Cedar Rapids and Evansville.

Staff
Reductions in essential air service funding are being chipped away by exceptions, and criteria for the program are beginning to resemble tax legislation, which is notorious for site-specific loopholes. Late last week, the Senate Appropriations Committee modified the criteria so the program will fund two points in Montana. This week, the Senate exempted Hawaii from the criteria and, much like tax legislation, exempted a single airport in Arkansas that was inexplicably described, but not named. (See related story on Page RA3 of the hard copy of this issue.)

Staff
The power outage at Oakland knocked out both the primary system and the backup direct access radar channel (DARC) (DAILY, Aug. 10). Dropped words made it appear that DARC is the primary system.

Staff
IPTN of Indonesia flew the new Allison-powered N-250 for the first time Thursday, but the project continues to swirl in controversy. The program already has absorbed $400 million of a projected $650 million, which critics say is too expensive for an outdated aircraft in a shrinking market. The World Bank calls it a waste of money, and one Indonesian academic said the world's fourth most populous country, where a large percentage of the 190 million people live in poverty, cannot afford it. Next on the drawing board is a $2 billion, 130-passenger regional-jet program.

Staff
Horizon Air Industries has elected Thomas Gerharter to senior VP-operations and Daniel Scott VP-flight operations. Gerharter has 12 years with the company, and for the past three he served as VP-flight operations. Scott, also with the company for 12 years, will succeed Gerharter. Scott most recently was director-flight operations. Gerharter will assume responsibility for flight operations and the maintenance divisions, and Scott will be in charge of managing flight crews, pilot training and related activities.

Staff
ALM Antillean has asked DOT for renewal of its authority to operate scheduled combination service to Puerto Plata, Dominican Republic, as an intermediate point on its Netherlands Antilles-Miami service. The carrier also wants renewal of its right to display United's designator code on flights between Miami and Netherlands Antilles, via Santo Domingo and Puerto Plata, under its code-share agreement with United. ALM noted that the Dominican Republic has not yet approved the code-share services. (Docket 49611&OST-95-377)

Staff
America West has proposed to serve Puerto Vallarta and Manzanillo from three U.S. points beginning Oct. 29, subject to government approval. It plans to offer daily nonstops to Puerto Vallarta and direct service four times a week to Manzanillo. Fares would be as low as $272 roundtrip to Puerto Vallarta and $324 to Manzanillo from Phoenix. America West said its fare from Salt Lake City to Manzanillo would be 51% less than the lowest fare now offered, and from Albuquerque it would be 30% less.

Staff
Cunard will participate in Sabre's Cruise Director reservations and information system, giving travel agents immediate access to its availability, pricing, cabin/category inventory and pre-/post-cruise packages.

Staff
American is studying whether to postpone the retirement of up to 22 Boeing 727s.The airline has mothballed seven of the aircraft this year but is considering whether to retain 16 more that are scheduled to leave the fleet this year and six tagged for retirement in 1996.

Staff
Boosted by higher fares and lower costs, the 10 largest U.S. passenger airline companies posted combined second quarter 1995 net earnings of $993.4 million on total operating revenues of $19.44 billion. In the second quarter last year, the same 10 carriers - the nine majors and Alaska Air Group - managed net earnings of just $24.3 million on revenues of $18.32 billion. Their second quarter 1995 operating profit soared to $1.99 billion from $679.2 million.

Staff
DOT has agreed to defer action for 30 more days, until Sept. 8, on Fine Airlines' complaint against the government of Ecuador and Aeroservicios Ecuatorianos (AECA). The extension is the second granted to Fine as it continues its battle to gain greater access to the South American country (DAILY, July 11). Fine complained initially against Ecuador in January, saying it would not permit Fine to conduct charter services authorized under the U.S.-Ecuador aviation agreement.