Aviation Daily

Staff
Federal Aviation Authority of Russia chief Gennady Zaitsev has asked FAA to help the authority stage a joint Russian-U.S. aviation conference this spring in the Washington area. The likely time is May 19-21, the likely location Annapolis, Md., and the likely focus regulatory, air traffic control and airport issues.

Staff
Taiwan's Committee for Aviation and Space Industry Development plans to sponsor an international aviation exhibition in 1999, Taipei's Commercial Times reported. The event, to be modeled after the Paris and Singapore air shows, most likely would take place at Ching Chuan Kang Air Base, located near Taichung and the site of Taiwan's largest military runway. Officials from CASID and the External Trade Development Council, which has agreed to cosponsor the show, toured the air base recently and reported that it meets all requirements for the five-day event.

Staff
Asiana Airlines succeeded in its aim to divorce itself from disputes among the Korean and U.S. governments, World Airways and Korean Airlines, securing oral approval of new Korea-Chicago service. World, which has been denied what it and U.S. authorities say are bilaterally authorized beyond- Seoul services, had opposed route applications by Asiana and Korean Airlines. But Asiana said it received no benefit from World's route denials, and pledged to provide what aid it could to the U.S. carrier ; World then withdrew its objections.

Staff
TWA's attempts to improve on-time performance and its accelerated maintenance program are paying off. The carrier had its best few days of operating performance in a year last weekend. From Friday through Tuesday, its completion rate exceeded 99% every day, and on-time was 93.5% on Monday, higher than 80% Tuesday and 90.9% on Wednesday. Revenue results were not stellar, however - extra bookings from the threat of an American strike were equalized by cheap fares flooding into markets.

Staff
Viasa stockholders met yesterday in Caracas, Venezuela, to decide the fate of the carrier, which stopped operating late January in the face of mounting losses. Spanish flag carrier Iberia holds 45% of the airline, state-owned investment firm FIV 40%, and Caracas-based Provincial Bank 15%. Liquidation of Viasa is a likely outcome.

Staff
Boeing asked the European Commission formally this week to approve its planned acquisition of McDonnell Douglas. The EC has 30 days to decide whether to investigate the deal, and press reports said the European Association of Aerospace Industries asked it to conduct a full investigation.

Staff
U.S. National Carriers Traffic January 1997 January January % 1997 1996 Change American Trans Air Revenue Passenger Miles (000) 651,651 750,297 -13.1 Available Seat Miles (000) 909,645 1,100,974 -17.4 Load Factor (%) 71.6 68.1 Passengers 401,620 492,882 -18.5 Atlantic Coast

Staff
Bilateral teams formed working groups yesterday to continue examining computer reservations system and ground-handling issues, sources said, breaking little new ground (DAILY, Feb 19). Negotiators continue to make few advances on the 35-page text that serves as the target open skies agreement. A session is likely to be held today, with concluding meetings of the working groups and a final plenary session. Earlier in the week, U.K.

Staff
Reno Air intends to trade off rapid growth for higher income in the immediate future after finishing a money-losing fourth quarter and a barely profitable 1996. One strategic move to improve traffic in 1997 will be cooperation with a major partner that flies across the Pacific, to feed its West Coast flights. The airline is actively discussing that possibility with another carrier, President and Chief Executive Robert Reding said yesterday, but he declined to identify it. Reno currently code shares with American and Hawaiian Airlines.

Staff
Summary of U.S. Major Carriers International Traffic August 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 49 36.94 1,054 51,471 Latin 49 36.94 1,054 51,471 American 1,458 0.02 2,082 3,035,676

Staff
Correction: The Association of Professional Flight Attendants filed a grievance over whether American could put members on emergency leave if the pilots went out on strike. The wrong union was identified in The DAILY, Feb. 14.

Staff
Foreign aircraft suspected of being unsafe would be systematically checked at European Union airports - and grounded if necessary - under regulations proposed by EU Transport Commissioner Neil Kinnock. The legislation, which would take effect in July 1998, is likely to be confirmed as soon as December by the Council of Transport Ministers, which called for EU-wide rules on ramp checks at an informal meeting Feb. 1 in Amsterdam. The EU examined the U.S.

Staff
Pacific Southwest Airlines Inc. - not affiliated with the former Pacific Southwest Airlines (PSA) bought by USAir - will open a $20 million private placement stock offering, possibly tomorrow, to raise capital for the expansion of its cargo business to passenger operations. The carrier, which operates cargo flights and holds a Part 121 certificate, said it intends to use the money for working capital, DOT and FAA certification of passenger flight operations and aircraft lease deposits.

Staff
British Airways is guaranteeing that business travelers not satisfied with its new Club World product will receive a free U.S. domestic ticket on a flight by one of its partners or 25,000 Executive Club miles. It describes the offer as a "no questions asked" deal, but customers taking advantage of it must explain their dissatisfaction in a letter and provide the original boarding pass and Executive Club membership number. The guarantee applies to flights through May 15.

Staff
Though Varig declines comment on who its next U.S. code-share partner will be, jilted Delta is betting on United. "The facts will speak for themselves," Delta said in its most recent filing in the voluminous Brazil combination case (see story on Page 299 of the hard copy of this issue). "Varig has existing relationships with Lufthansa and Thai Airways, and both have existing relationships with United - an incumbent that has broad U.S.- Brazil authority."

Staff
United said American's opposition to modifications in the United-Lufthansa code-share agreement is simply another phase in its "harassment" of the code share, which began in 1993. United and Lufthansa want the authority to substitute certain points on the system at will, rather than having to apply for every substitution (DAILY, Jan. 28). The carriers say the substitutions are permitted under the U.S.-German open skies treaty.

Staff
Summary of U.S. National Carriers Systemwide Traffic August 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) American Trans Air 536 25.38 1,946 1,043,092 Carnival 232 11.48 1,200 278,226 Hawaiian 586 31.67 621 364,405

Staff
U.S. diplomats are encountering the same old questions from allies as they attempt to explain Clinton administration policy making Global Positioning System satellite navigation signals available in undegraded form worldwide for commercial and civil use, according to the top U.S. State Department official involved in the consultations.

Staff
A day after questioning which party terminated the Varig-Delta code-share agreement, Tower Air joined Continental in calling for Delta's removal from the U.S.-Brazil combination flag carrier proceeding (DAILY, Feb. 18). Increasingly heated exchanges on this docket point to the growing importance of South American traffic.

Staff
The Air Line Pilots Association believes President Clinton should have allowed American and the Allied Pilots Association to let the negotiating process run its course rather than stepping in before the APA strike was even an hour old and appointing a Presidential Emergency Board (PEB).

Staff
A Taiwan delegation plans to travel to Moscow about March 2 to discuss a formal agreement implementing the informal 1993 accord authorizing direct air links. Negotiations have stalled since then over service issues and rights beyond Moscow and Taipei. Opposition by China and uncertain profitability also have contributed to the delay. Wang Wei-chieh, director of West Asian affairs under Taiwan's Ministry of Foreign Affairs, said China Airlines of Taiwan and TransAero of Russia will be designated to serve routes established by the agreement.

Staff
A federal judge has upheld for the first time the right of an airline to withhold information collected through safety partnerships with employees, according to an attorney representing the Air Transport Association. In a suit arising from the December 1995 American 757 crash near Cali, Colombia, in which 159 people died, U.S.

Staff
Atlas Air yesterday reported a record net profit of $13.4 million for the quarter ended Dec. 31, up from $8.4 million. Net income for the year increased 112% to $37.8 million. Revenues for the quarter rose 87% to $104.7 million. Operating income was up 85% to $29.9 million. Revenues for the year jumped 84% to $315.7 million. Operating profit more than doubled to $88.1 million.

Staff
Hawaiian Airlines consolidated its interisland, mainland and South Pacific operations into a single terminal at Honolulu Airport yesterday. The carrier's operations now are all in Terminal 2, previously known as the interisland terminal. Hawaiian doubled the capacity of its existing interisland passenger check-in and baggage service facilities in Terminal 2 and made improvements costing about $2 million. The terminal will serve about 12,000 people a day while saving the carrier $1 million in annual operating costs, Hawaiian said.

Staff
American Trans Air parent Amtran Inc. reported a $14.1 million net loss for the fourth quarter of 1996, for a $1.22 per share loss. The loss compares with a $3.8 million deficit in the same 1995 quarter. Amtran reported a $19.5 million operating loss in the 1996 quarter, $148.6 million in operating revenues and $168.1 million in operating expenses. During the period, American Trans Air completed a reduction of scheduled service, started in August, to focus on its more profitable charter business.