Aviation Daily

Staff
United Express affiliate Atlantic Coast Airlines is relocating its headquarters within Loudoun County, Va., effective Feb. 15, consolidating its various units under one roof. Atlantic Coast currently operates in about 28,500 square feet spread over two buildings in Sterling, by Washington Dulles Airport. The new, 45,000-square-foot facility, at 515-A Shaw Road, will house the executive offices, administrative personnel and training center.

Staff
Continental reported the highest January load factor in its history - 64.5%, up 1.7 percentage points - as traffic jumped 15.5%. International traffic surged 19.9%. Capacity increased 13.3%, with domestic available seat miles up 11.8% and international ASMs up 17.1%. Continental Express traffic rose 16.7%, but capacity was up more, 22.4%, pushing the load factor down 2.1 points to 43.1%. Cargo revenue ton miles totaled 20.8%. January 1997 January 1996 RPMs 3,491,307,000 2,995,624,000

Staff
Northwest contracted with Ad Opt Technologies for a crewmember scheduling system after tests produced operating savings of several hundred thousand dollars a month. Other Ad Opt customers include Air Canada, Air Transit, Delta, FAA and Eurocontrol.

Staff
New Regional Aircraft Orders And Options November 1996 Firm Orders Options Carrier No. Type No. Type Engines ----------------------------------------------------------------------- Mesa Airlines 16 Canadair RJ 16 Canadair RJ CF34-3B1 Piedmont Airlines 3 DHC-8-200 - - PW123C Orders - Last 12 Months - Options Carrier Delivery Dates No. Type No. Type

Staff
..MAX carried 15,000 passengers during its first seven weeks in operation, serving Aspen, Durango, Gunnison, Hayden and Montrose, Colo., from its Colorado Springs hub with six, three, five, four and five roundtrips daily. President Tom McClain tells The DAILY that the carrier was able to start up in 91 days with a Part 121 certificate and four new airplanes. About 200 passengers were affected by the drift-down restriction, which had what McClain described as an "emotionally intense impact." Load factors were 45% in December and 42.5% in January.

Staff
InVision Technologies said yesterday its CTX 5000 SP explosives detection systems have been installed at Chicago O'Hare and New York Kennedy airports. The devices are the first of 54 CTX 5000s that will be shipped to U.S. airports this year under a $522 million FAA contract awarded last December. The O'Hare system will scan checked baggage for international flights at Terminal 1. It has been installed directly behind United's international check-in counter in a stand-alone configuration. Once baggage clears the CTX 5000, it is fed into United's baggage system.

Staff
FAA's proposal to allow the use of single-engine aircraft in commercial Part 135 operations under instrument flight rules (SEIFR) has been lauded by operators and the National Transportation Safety Board as a positive safety initiative, but reaction from manufacturers and the Air Line Pilots Association has been mixed. FAA last week extended the comment period on the proposal until March 3.

Staff
Delta set a passenger boarding record at its second-largest hub, Salt Lake City, in January, when it boarded 581,891 passengers, beating the old record set in January 1996 by 67,169 passengers. January was the 36th month that Delta has broken records at Salt Lake City for month-over-same- month boardings.

Staff
Air Canada has taken delivery of two additional Canadair Regional Jets with a new mission in mind. The aircraft "will be pressed into immediate service, providing the benefit of jet comfort to markets traditionally served by turboprop aircraft," the carrier said. The two CRJs had been tagged for another carrier, leading some Canadian sources to suggest the move is a shot across the bow of striking Air Canada Connector pilots, who normally fly those turboprops. Air Canada already had 24 CRJs, but they are used on mainline transborder "hub-buster" routes.

Staff
Vanguard Airlines board members Kenneth Wagnon and Sharol Rasberry have resigned due to time constraints and other business obligations, the carrier said. The board is considering whether to fill the vacancies. Wagnon, who has been on the board since it was formed, said, "I continue to be an ardent supporter of Vanguard and will be available to offer any assistance the company may require."

Staff
Eight regional airline stocks started off the year on a slightly negative note with the average price per share dipping by 15 cents to $12.09. The average ranged from a high of $13.06 on Jan. 20 to a low of $12.01 on the 29th after closing out 1996 at $12.24. United Express Atlantic Coast stock rose $3.81 to close the month at $16.06. Delta Connection Atlantic Southeast increased 63 cents to $22.50, while United Express Great Lakes Aviation issues rose a quarter to $2.75. Delta Connection Comair's stock price dropped $3.63 per share.

Staff
Frank Kruesi, DOT assistant secretary for transportation policy, has asked that his name be withdrawn from consideration as FAA administrator, sources said yesterday.

Staff
FAA this week proposed to provide relief to operators in Alaska from certain dispatch requirements called for in the "Commuter Rule" that takes effect March 20. The proposal would create a new Special Federal Aviation Regulation (SFAR) that would address requirements to show that a two-way air/ground communications system is available at all points. FAA said "the lack of infrastructure or appropriate technology" prevents operators from having continuous communications. FAA proposed to require two-way air/ground communications "to the maximum extent feasible."

Staff
Reno Air has "shared some thoughts" with DOT on predatory pricing, an airline spokesman said, but it has not filed a formal complaint with the department. In addition to handling Frontier Airlines' complaint against United, DOT has been collecting data from several airlines, which it declines to identify. ValuJet says it is one of them (DAILY, Jan. 30).

Staff
Commercial users would pay $4.9 billion and the general aviation community nearly $800 million per year for air traffic services if FAA shifts to a system of user fees to finance its operations, according to estimates in the draft of a study conducted for top FAA policymakers by Gellman Research Associates. According to the study - The GRA Inc. FAA FY 1995 Cost Allocation Study, a portion of which was obtained by DAILY affiliate ATC Market Report - it costs FAA $6.307 billion per year in fiscal 1995 dollars to provide air traffic services.

Staff
International Transport Workers Federation will launch a campaign against sex discrimination in civil aviation March 8, International Women's Day. According to ITF News, the drive will last all year, focus on issues raised by trade unions with the support of women's groups, and distribute information to passengers. Airlines around the world will be graded, and examples of good and bad treatment of female employees will be publicized at the end of the year.

Staff
DOT plans to issue proposed changes to the essential air service (EAS) program in the next several months in light of last year's legislation giving EAS up to $50 million a year, beginning in fiscal 1998, which starts in October. The department is expected to focus on enhanced service to existing EAS markets rather than adding new communities to the program. The program was funded at $25.9 million in fiscal 1997. In the future, any portion of the $50 million not spent on EAS would go for safety-related grants to rural airports.

Staff
McDonnell Douglas issued Tracor Flight Systems a 10-year, $27 million contract to produce the y-barrel assembly for the MD-95. The agreement provides for Tracor to build more than 400 assemblies, which house the main landing gear and fuel, hydraulic and electrical lines in the lower part of the fuselage.

Staff
Dewi Rowlands has been appointed VP-sales and marketing for British Aerospace Asset Management Inc.-Turboprops. Rowlands was first employed at British Aerospace in 1961 as a sales engineer.

Staff
United's January traffic rose 7.6% on 6.8% more capacity, which pushed load factor up 0.5 percentage points to 67%. Domestic traffic increased 7.1% "even though yields were higher," said John Edwardson, president and chief operating officer. Hawaii led domestic statistics, as revenue passenger miles were up 20% after the carrier added 14% more capacity, producing an 85% load factor. The Pacific load factor was 75.1%.

Staff
Gulfstream reported yearend revenues of $1.06 billion, up from $1.04 billion, and net income of a record $47 million, up 63% from $28.9 million.

Staff
Mountain Air Express (MAX), the new regional subsidiary of Western Pacific, found itself at a competitive disadvantage out of the starting gate. The Part 121 carrier was subject to drift-down charts - terrain clearance requirements with one engine inoperative and engine anti-ice on - that limited the 30-seat Dornier 328 to as few as 18 passengers. Part 135 (until March) carrier Lone Star (d.b.a. Aspen Mountain Air) 328s had no such restrictions and could fly direct routings.

Staff
In what was called a "historic action," a federal judge in Tucson has ordered FAA to explain under oath where the agency gets its authority for license penalty to suspend a license or certificate or impose a civil penalty. If the plaintiff prevails, FAA's entire enforcement authority could be in question. U.S.

Staff
Sen. Slade Gorton, chairman of the Senate aviation subcommittee, will discuss reinstatement of the aviation excise taxes, his panel's legislative agenda and the President's budget for FY 1998. The program will air on this week's Aviation News Today on Washington's NewsChannel 8 Sunday from 12:30 a.m.-1 a.m. and from 1:30 p.m.-2 p.m.

Staff
TWA reported a 4.8% increase in revenue passenger miles flown in January on 0.6% less capacity. The load factor rose 3.2 percentage points to 62.1%. International RPMs were up 1.4% even though international capacity dropped 6.3%. TWA recently substituted 767s for 747s on many transatlantic routes. International capacity made up 19.7% of TWA's systemwide capacity in January. The international load factor rose 5.2 points to 68.7%, while the domestic load factor increased 2.8 points to 60.4%. January 1997 January 1996