Aviation Daily

Staff
USAir intends to install onboard telephones in "virtually" its entire fleet. The new phones will replace equipment installed on 80 aircraft by Inflight Phone Corp. The two companies are in a legal battle over the entertainment and communications system provided by IFPC, which the carrier said was unreliable (DAILY, April 11). The carrier has not yet selected a new vendor. The phone installation coincides with a review of all aircraft for total refurbishment (DAILY, April 26).

Staff
DOT has dismissed Clipper Air Cargo's application for a certificate to operate charter all-cargo service. The department cited the carrier's continued inability to obtain the financing needed to operate the service. Applying for the certificate last spring, Clipper proposed operating between New York Stewart Airport and the Far East, using two Boeing 747- 100SF aircraft it intended to purchase or lease (DAILY, April 6, 1995). (Docket 50243)

Staff
DOT Secretary Federico Pena and Rep. Richard Gephardt (D-Mo.) were in St. Louis yesterday as TWA launched St. Louis-Toronto service. The carrier will operate twice-daily nonstop roundtrips on the route, with single-plane service to New Orleans and San Diego. It expects to carry more than 116,000 passengers in the first year of service and register a $7.8 million operating profit.

Staff
Southwest today begins offering a ticketing option that enables computer users to purchase travel over the Internet (DAILY, April 29). The only other large U.S. carrier that offers online booking is Alaska Airlines, but because of savings associated with the technology, other major carriers are expected to offer similar services after they begin allowing their passengers to fly without paper tickets. The Southwest system, which can be reached at the carrier's home page at http://www.iflyswa.com, enables a computer user with Netscape 1.22 and a modem to purchase a ticket.

Staff
FAA is providing $1.9 million of the $2.1 million cost to renovate the airport at Independence, Kan., which was selected by Cessna Aircraft as the production site for new general aviation aircraft. Linda Daschle, deputy administrator, said that an instrument landing system was commissioned and that, under an AIP grant, the airport will be able to repave its runway and install medium-intensity runway lighting and a precision approach path indicator. The center taxiway will be repaved and additional signage will be installed.

Staff
U.S.-France relations are less than smooth despite the recent agreement on summer operations. The French have yet to give American the slots at Orly it needs to launch Boston-Paris as planned on Wednesday. There were no indications during the U.S.-France talks of any problems with a U.S. carrier serving Orly, said a U.S. official, who noted that American's proposal to serve Orly rather than Charles de Gaulle was a key reason it was granted the service.

Staff
U.S. and European Commission transport officials held exploratory talks last week in Washington about possible European Union-U.S. aviation negotiations. The talks remained very preliminary - the commission wants but does not have authority to negotiate formally with the U.S. on behalf of all its member nations. Observers are looking forward to a meeting of European transport ministers at the end of May in Budapest for a real indication of the potential of EU-U.S. talks.

Staff
McDonnell Douglas shareholders approved Friday an increase in common stock from 200 million to 400 million shares, clearing the way for the two-for- one stock split approved by the board Jan. 26. On May 31, shareholders will receive a stock dividend of one share of common stock for each share held at the close of business on May 10. The board also declared a quarterly cash dividend of 24 cents per share, on a pre-split basis, payable July 1 to holders of record June 7.

Staff
Kiwi International Air Lines says it will be the first airline to offer passengers EarPlanes - pressure-regulated earplugs to reduce discomfort while flying. Kiwi will pass out the earplugs on flights between New York and Chicago for one week, beginning May 5. The device was developed by Cirrus Air Technologies in conjunction with the House Ear Institute in Los Angeles, and has been tested by U.S. Navy aviators. A Cirrus spokesman said a major U.S. airline is interested in selling the product inflight, for about $5.

Staff
Issued an AD on certain Boeing 747-400s requiring modification of the engine fuel feed system. Issued an AD on certain Saab 340 aircraft requiring inspections for cracks of the nose rib of the rudder. Proposed an AD on certain Embraer EMB-120 aircraft to require inspecting for cracks in the wing rib-to-skin support brackets. Proposed to supersede an AD on certain de Havilland Dash 8-300 aircraft concerning modification of the airspeed limits placard.

Staff
Proposed an airworthiness directive on certain Airbus A320 aircraft to require inspection for cracks of fittings of the pressurized floor at Frame 36. Proposed an AD on certain McDonnell Douglas MD-11 aircraft to require replacing or modifying the inboard and outboard flap actuators. Proposed an AD on McDonnell Douglas DC-10 and MD-11 aircraft to require inspections for corrosion or failure of the steel Hi-Lok fasteners at the inboard flap inboard track.

Staff
Vanguard Airlines intends to increase flights between Kansas City and Denver May 22. It will offer three flights a day on weekdays and two on Saturdays and Sundays. Prices range from $59 to $119 one way and do not include roundtrip purchase or minimum stay requirements.

Staff
Issued an AD on certain Mooney M20 aircraft requiring inspection of the alternate air door assembly.

Staff
Alaska, United and Southwest were named last week in a class action suit in San Francisco by at least three travelers who alleged the carriers failed to refund excise taxes withheld by them but not collected by the federal government. Southwest and United denied the charges, saying they have been reimbursing their passengers. Alaska was not available for comment.

Staff
Lufthansa will become the first Western airline to fly to three new destinations in Eastern Europe - Nizhniy Novgorod and Samarra in Russia and Ashgabat in Turkmenistan. The carrier will operate to each destination twice a week from its Frankfurt hub. It has opened a site on the World Wide Web at http:\\www.lufthansa.com.

Staff
Swissair moved its advertising account from Graf Bertel, its agency of 20 years, to Advico Young&Rubicam, with which it has started using international television advertising in addition to print. Its new slogan is, "Swissair - World's Most Refreshing Airline." Wunderman Cato Johnson, a wholly owned subsidiary of Rubican, will handle Swissair's local advertising and direct marketing.

Staff
KLM named Robert Hougee VP-cargo operations and Jan Meurer senior VP and area manager for KLM passenger sales and services in North America and Mexico.

Staff
Air Canada launched a contest in which eight of its customers will be given use of CL-65 aircraft to fly 39 friends to the Olympic Games in Atlanta. Air Canada is spending $8 million on television sponsorship of the summer games this year and the winter games in 1998.

Staff
Northwest and Air China have signed a memorandum of understanding laying the foundation for an operational and marketing alliance between the two carriers - the first such alliance between major airlines of the two countries. "We are pleased to form this alliance, which will expand Northwest's presence in what is projected to become one of the largest travel markets in the world," Northwest Co-Chairman Gary Wilson said Friday at the carrier's annual meeting in New York.

Staff
Citing recent air traffic control equipment failures at Boston and Pittsburgh, a union official says the ATC system can expect more of the same. Jack Johnson, president of the Professional Airways System Specialists, says "the frequency and the severity of the outages will only increase" unless FAA "hires enough technicians to ensure that all watches are fully covered."

Staff
Aircraft Owners and Pilots Association Air Safety Foundation received two $10,000 grants, one from the Michigan Bureau of Aeronautics and the other from the Ford Motor Company, to conduct aviation seminars in Michigan. American Society of Travel Agents' National Officer Nominating Committee has chosen candidates for president: Pat Gagnon, Aquarius Travel, Cambridge, Mass.; Bernice Rosmarin, Stratton Travel, Franklin Lakes, N.J., and Mike Spinelli, Merrimac Travel Service, Lowell, Mass.

Staff
Moody's Investors Service raised its ratings on Delta Friday, one day after Standard&Poor's took the same action. Moody's move affects about $8.1 billion worth of debt, while S&P covered $7.4 billion. Moody's cited better fundamentals in the airline industry and concessions granted Delta in the labor agreement ratified last week by its pilots union (DAILY, April 24). The changes will help Delta reduce costs, pay down debt and improve profitability, Moody's said.

Staff
Mesa Air Group is planning to acquire eight jets within 12 months but is no longer considering the Fokker 70 because of the manufacturer's bankruptcy status. Mesa is looking at the Canadair RJ, the EMB-145 and AI(R) regional jets, or possibly used Fokker 100s.

Staff
Nations Air intends to inject more low-fare service in the already saturated Northeast-Orlando market by beginning operations June 14 from Boston, Pittsburgh and Philadelphia. Nations Air said it will offer $69 one-way fares that do not require a Saturday night stay or advance purchase. The carrier is using a newly acquired 173-seat 727-200 for the service.

Staff
Aerospatiale has opened a regional office in Kuala Lumpur headed by Franois Jouenne to further develop ties with Malaysian industry and clients, and to serve the neighboring Philippines, Indonesia and Brunei. It said the Asia/Pacific region represents more than 20% of its export sales of $7 billion. Aerospatiale also has offices in Hong Kong, Beijing, Tokyo, Singapore, Seoul and Bangkok.