Aviation Daily

Staff
Taiwan, Singapore, Malaysia and Brunei have agreed to formal negotiations toward open skies aviation agreements, a milestone in U.S. efforts to launch liberalization in the region. Talks will begin Jan. 21 in Washington with a delegation from Singapore. Discussions with Malaysia and Taiwan will follow in Washington during the next two months; Brunei negotiations will take place at the U.S. embassy overseas.

Staff
China Airlines has restructured itself in what it described as an attempt to consolidate resources and improve internal communications and efficiency. Reducing the number of VPs from five to three, the Taiwan carrier named Chang Liang Shih VP-administration, responsible for finance, human resources, information management, general affairs and diversified business. Sandy Liu, appointed VP commercial, will oversee passenger and cargo sales, corporate and market planning, inflight and ground services and other marketing-related business.

Staff
Industry and government representatives meeting in Washington have agreed on a timetable for critical local area augmentation system (LAAS) standards and specifications, including a commitment to minimum aviation system performance standards by the end of this year (DAILY, Dec. 20), RTCA reported yesterday. The representatives also agreed on establishing minimum operational performance standards and ground subsystems specifications by the end of June 1998.

Staff
Korean airlines, responding forcefully to objections filed by World Airways and United against new route requests, accuse their U.S. counterparts of dragging irrelevant issues into routine bilateral proceedings, unnecessarily jeopardizing a U.S.-Korea open skies agreement.

Staff
Airline leaders used an aviation safety conference yesterday in Washington to campaign for privatizing air traffic control and restructuring the ticket tax. "It is time for the U.S. to move in the direction of other nations and privatize air traffic control," John Dasburg, Northwest chief executive, said at the International Conference on Aviation Safety and Security. Dasburg suggested that the U.S. use Nav Canada's ongoing ATC privatization as a model. Robert Crandall, American chief executive, said "no one knows" how much the U.S.

Staff
Illinois Gov. Jim Edgar asked DOT Secretary-designate Rodney Slater yesterday to launch a "thorough examination" of the proposed American- British Airways alliance as soon as possible, "in advance of negotiations with the British on this issue."Citing Chicago-based United's call for an investigation, Edgar said an unrestricted alliance would "create a government-protected monopoly that will squeeze out competition and inflate fares."

Staff
Fortis Aviation, marketing agent for TAP Air Portugal, reported delivery of the first of two L-1011-500s to Air Transat of Canada. Fortis said it has two more such aircraft for sale on behalf of TAP, which is phasing in Airbus A340-300s.

Staff
The Allied Pilots Association (APA) tomorrow will present to American a settlement offer in the ongoing contract dispute that led members to reject a tentative agreement last week. The National Mediation Board offered binding interest arbitration Friday, which American accepted, but only if the APA also accepts the offer by 9 a.m. tomorrow.

Staff
Singapore Airlines increased fares 3% systemwide recently, citing a general increase in costs. The hike was not done casually - SIA is one of the most profitable carriers in the world, and the last time it increased fares systemwide was nearly six years ago, in February 1991.

Staff
U.S. Major Carriers Change In RPMs, ASMs and Load Factor, Third Quarter 1996 Third Quarter 1996 Load Factor (%) Carriers 1996 1995 Pts. Change Alaska 70.6 70.7 -0.2 America West 71.8 71.4 0.4 American 71.1 68.9 2.2 Continental 70.2 70.7 -0.5 Delta 73.9 68.1 5.7

Staff
TWA management is moving swiftly to review its operation for ways to improve reliability and streamline functions.The carrier told employees to expect a preliminary report at the end of January, a final report by the end of February and implementation of recommendations by the end of March. The goal is "dramatic" operational improvements by the second quarter. Immediate actions to improve ontime performance are expected in a few days. The carrier says it will announce changes soon, including "positive" changes, in its aircraft acquisition schedule.

Staff
Canadian Air Line Pilots Association members Friday voted 89% in favor of merging with the Air Line Pilots Association. ALPA's board approved the move in October, followed by CALPA's Convention Assembly in November. Still pending is ALPA's Executive Council formal approval, expected this week. Once the groups are merged, ALPA will represent 46,000 pilots at 48 airlines.

DOT

Staff
Approved orally a Space System/Loral charter using a HeavyLift Volga Dnepr An-124-100 to carry 55,000 pounds of satellite equipment on an Oakland- Cayenne routing Jan. 20-22...Approved an Air Charter Service/Scientific Atlanta charter using a Volga-Dnepr An-124-100 to carry 70,000 kilograms of communications equipment on a San Bernadino Atlanta-Prestwick-Moscow routing Jan. 7-9... Approved an Apple Vacations West charter using a Transportes Aereos Ejecutivos 737-300 for 12 roundtrips between Orlando

Staff
SabreTech President Steve Townes said Friday the company is "working to find ways to preserve as many jobs as possible for our employees and to provide continuing opportunities in the Miami area." Townes made the statement following reports that SabreTech is looking for a buyer for the facility. He said that "in light of the withering effect of continuing adverse publicity and unprecedented investigations stemming from the tragic accident of ValuJet 592, we simply have been unable to sustain a viable presence in Miami."

Staff
A commercial court confirmed British Airways' takeover of Air Liberte last week in Creteil, near Paris. The U.K. airline has proposed a 10-year plan for the continuation of the private French carrier, which went into receivership Sept. 26, 1996. BA, owner of French regional carrier TAT, plans to invest 440 million French francs in Air Liberte, while its French partner, Banque Rivaud, will inject FF250 million. Air Liberte's staff will be cut to 1,249 workers, a loss of 173 jobs.

Staff
Twenty-five announced mergers announced among top aerospace, defense and aircraft companies totaled about $38 billion in 1996, according to Houlihan Lokey Howard&Zukin. "This is an extraordinary level of activity in terms of numbers of deals and dollar values compared with recent historical levels," said R. Jerry Grossman, a director in the investment banking firm's Washington office. Topping the announced mergers were those of Boeing and McDonnell Douglas, valued at $13.3 billion, and Lockheed Martin with Loral, $7 billion.

Staff
As U.S. airlines continue to expand electronic distribution systems and develop new marketing methods via the Internet and e-mail, the Air Transport Association's Electronic Marketplace Committee issued recommendations last week intended to aid travel-related electronic consumer transactions. Under one recommendation, Airlines Reporting Corp.

Staff
Airbus Industrie has an employee newspaper of its own. Stung by Boeing's criticism that its forecast for very large aircraft is much too optimistic, the consortium said that 518 large aircraft "lost by Boeing forecasters between March and September...have been found by Airbus Industrie." The aircraft were "arbitrarily shifted" into smaller aircraft categories. "This suggests a significant increase in the price of Boeing aircraft."

Staff
Bechtel named Lynne Haraway VP-aviation market sector for Bechtel Civil Co.. BFGoodrich elected Les Vinney VP and treasurer. Blatt, Hammesfahr&Eaton named Kenneth Ross and John Harrington partners. They will co-chair the firm's aviation and construction practices group. Condon&Forsyth named Andrew Houghton, Chris Christensen and Steve Rickman partners in the New York office and Jennifer Johnston a partner in the Los Angeles office.

Staff
Midwest Express, rated the best U.S. airline for the sixth consecutive year by Consumer Reports, is working on seven major objectives to do a better job. To use technology better and improve productivity, the carrier said it will make changes in its reservations system within 90 days, evaluate "our airport front-end," and upgrade Sabre and its revenue accounting system. It will use one of three new airplanes to start service to Orlando in March. The second, to be delivered in April, will go to new service to be revealed by monthend. The third is due in July.

Staff
America West has appointed Gregory Garger VP-labor relations. He comes from the Chicago law firm of Winston&Strawn, where he was a partner specializing in labor relations negotiations.

Staff
Northwest Cargo said it will impose a fuel surcharge for freight and VIP shipments within the U.S., beginning Feb. 1. The surcharge for general freight is two cents a pound. For VIP shipments, the surcharge is applied to each piece by weight break at $3 up to 50 pounds, $4 to 70 pounds and $6 to 100 pounds. The action follows recent initiatives by UPS, FedEx and other carriers taking effect in early February.

Staff
Atlas Air said it purchased a 747-200 with GE engines, currently being operated by Philippine Airlines. Atlas plans to convert the aircraft for cargo service.

Staff
General aviation industry officials have expressed concern that a little- known Joint Aviation Authorities proposal to impose a 120-minute ETOPS (extended-range twin-engine operations) limit on twin-engine business aircraft would seriously degrade the utility of this class of aircraft. New generation, ultra-long-range business aircraft are now being delivered or are in flight test, and restricting their range would be disastrous, GA officials believe.

FAA

Staff
- In Federal Register dated Jan. 2...Superseded an airworthiness directive on Piper PA 24 through PA 39 series aircraft concerning the main gear sidebrace studs...Issued an AD on Boeing 737 aircraft concerning control during uncommanded yaw or roll. - In FR dated Jan. 3...Issued an AD on Boeing 747 aircraft requiring inspections of the fuse pins on all engine pylons on Boeing 747-400 aircraft...Issued an AD on certain Boeing 747 aircraft requiring