Aviation Daily

Staff
Cargo traffic jumped 11% in October, compared with a 3.6% gain for the year-to-date gain, the Air Transport Association reported. ATA President Carol Hallett said October results were encouraging "after the figures we have seen so far this year." Domestic cargo growth through October averaged 2.8% but jumped to 10.2% for that month. International growth, which has been strong throughout the year, grew 11.9% in October.

Staff
America West traffic rose 14.3% in November to 1.2 billion revenue passenger miles, while capacity rose 16.6%. Available seat miles increased to 1.9 billion from 1.6 billion, which dropped the load factor to 65.1% from 66.4%. For the first 11 months of the year, RPMs were up 13.9% to 13.9 billion and ASMs 10.6% to 19.7 billion, lifting the load factor two percentage points to 70.8%. Nov 96 Nov 95 11 Mths 96 11 Mths 95 RPMs 1,221,679,000 1,068,633,000 13,934,946,000 12,235,371,000

Staff
China Aviation Supplies Export and Import Corp. and two Chinese airlines, China Northern, and China Eastern, signed a contract last week to buy 20 MD-90 aircraft worth more than $1 billion from McDonnell Douglas Corp.

Staff
Richard Branson's Belgium-based Virgin Express gave up its plans to take over the bankrupt French regional carrier Air Liberte, leaving the bid tabled by British Airways virtually unrivaled. The British airline and its French ally, Groupe Rivaud, plan to inject 790 million French francs into Air Liberte. Their "continuation plan" was vetted in November by a French commercial court, which gave them 40 days to come to terms with Air Liberte's creditors. The court said it still was open in the interval for rival proposals.

Staff
The Shanghai branch of China Industry and Commerce Bank signed a cooperation agreement with China Eastern Airlines by which the bank will provide $130 million to help the airline buy equipment and carry out technical renovation and infrastructure construction. In return, the airline appointed the bank one of its main business banks and will give it priority in handling some lines of business.

Staff
U.S. airlines held their positions in light of U.K. Board of Trade President Ian Lang's decision to impose conditions on the American-British Airways alliance if the partners want to avoid Monopolies and Mergers Commission scrutiny (DAILY, Dec. 9). In addition to United's belief that the ruling was a good start and Delta's statements opposing the deal on virtually any basis, USAir noted Lang's comments on its relationship with BA.

Staff
U. K. High Court yesterday delayed the imposition of new, more stringent aircraft noise limits at London airports pending a judicial review. It set no date for the review. The stay of the new limits - scheduled to take effect Jan. 1 - had been requested by the International Air Transport Association, and the U.K. Department of Transport said it will "contest the IATA challenge." The new limits, set by the ministry of aviation and shipping, were to be 94 dBA Lmax during daytime and 87 dBA Lmax at night.

Staff
China Aviation Supplies Export and Import Corp. and China General Aviation Corp. signed a contract with General Electric Capital Aviation Services of the U.S. to lease three Boeing 737-300 transport. This lease of Boeing aircraft is the first for CGAC, which will configure them for 148 seats and take delivery in May, June and July.

Staff
Delta Air Lines and Austrian Airlines applied for third-country code share authority into Jordan, service made possible by the recent signing of an open skies agreement between Jordan and the U.S. (DAILY, Nov. 14). Jordan is the first Middle East country with such an agreement, and other nations in the region are interested in exploring the concept. Delta wants to list its DL code on Austrian's three weekly MD-80 flights between Austria and Amman. The route would connect with Delta service to Vienna. The airlines seek approval by Dec.

Staff
China Eastern Airlines opened a $600,000 cargo facility recently at Hongqiao Airport, Shanghai. The building, with 17,000 square meters, contains cargo-handling areas for Chinese and foreign airlines, customs and a training facility. It is equipped with advanced communications systems.

Staff
Reno Air traffic increased 50.7% to 252 million revenue passenger miles in November on 41.8% greater capacity, which pushed the load factor up 3.9 percentage points. The load factor reached 66.9% in November and averaged 67.5% for the first 11 months of the year. Reno Air operates 200 daily departures with 29 MD-80s and MD-90s. Nov 96 Nov 95 11 Mths 96 11 Mths 95 RPMs 251,736,000 167,018,000 2,776,786,000 1,906,965,000

Staff
Southwest reported a 13.7% surge in revenue passenger miles for November on a 9.3% capacity gain, which pushed the load factor up 2.5 percentage points to 64%. Revenue per available seat mile fell below year-ago levels, the airline said, because of strong demand for leisure fares as well as increased passenger trip lengths. Average length of a passenger trip was 539 miles, up 7.2%. Nov 96 Nov 95 11 Mths 96 11 Mths 95 RPMs 2,170,453,403 1,908,894,327 24,707,782,851 21,303,457,147

Staff
A seven-member team from FAA has conducted its second assessment of Taiwan's civil aviation management system, according to officials of Taiwan's Civil Aeronautics Administration. Although the results have not been revealed, a CAA official said the organization believes FAA inspectors will report that at least five of seven defects noted during the first inspection, carried out in October, have been corrected.

Staff
Boeing's board yesterday elected Phil Condit, president and chief executive, as chairman, effective Feb. 1. Condit's new title will be chairman and chief executive. Frank Shrontz, current chairman, will be 65 on Dec. 14. He will retire Jan. 31. Shrontz was named chairman emeritus, and he will continue on the board. The board declared a dividend of 28 cents a share payable March 7 to holders of record Feb. 14.

Staff
Summary of National Carriers Systemwide Expense Indicators Third Quarter 1996 (000) Labor/Rank Fuel/Oil/Rank Maintnce/Rank American Trans Air 32,495 1 45,438 1 27,603 1 Carnival 9,637 7 12,242 6 14,451 5 Hawaiian 24,766 2 19,373 3 22,551 3 Midwest Express 16,434 5 9,245 7 6,222 7

Staff
Southwest expects fourth quarter earnings "substantially" less than last year's record, the airline said, because of "strong demand" for lower leisure fares. Last week, Southwest stimulated that demand with another round of fare sales, offering $29 trips to many destinations.

Staff
EVA Airways of Taiwan will purchase 82 General Electric CF6-80 series engines, valued at $750 million, plus spares, for new aircraft to be defined in the future, GE said yesterday. Delivery of the aircraft is to begin in 1997. EVA has in service six MD-11s, eight 767s and 12 747s, all powered by CF6-80C2 engines.

Staff
Delta posted a 10.2% climb in November traffic as domestic and international flying showed gains, 10.6% and 8.6%, respectively. Capacity grew 8.7% internationally and 0.1% domestically. For 11 months, international capacity fell 7.6%. The systemwide load factor was 66.1% in November, up 2.1 percentage points. Nov 96 Nov 95 11 Mths 96 11 Mths 95 RPMs 7,294,874,000 6,622,308,000 85,976,565,000 78,321,653,000 ASMs 11,043,323,000 10,343,174,000 122,155,376,000 119,421,899,000

Staff
Delta, Northwest and United have applied for additional third-country code shares gradually becoming available in Poland. Fourteen roundtrip frequencies will be available next November, bringing the total to 35. Although only two U.S. carriers - Northwest and United - currently have code-share authority, a third can be designated for service starting next April, which Delta has applied for. Delta plans to code share with partner Austrian Airlines for seven weekly trips to Warsaw from Vienna.

Staff
United posted a 1.1% increase in revenue passenger miles, buoyed by a 9% rise in Latin American traffic at a time when capacity in the region's grew only 2.7%. The Atlantic division also was a big gainer, as RPMs rose 8.6% and capacity 8.6%. North American traffic fell 0.8%, and loads were down 3.3 percentage points to 64.1%. The systemwide load factor was 66.4%, down 2.2 points. The carrier believes that because the post-Thanksgiving travel period ended in December, this month will have higher passenger loads. United set a single-day boarding record Dec.

Staff
Japan Airlines and Malaysia Airlines will begin joint 747-200 freighter service Jan. 14 between Penang and Narita and Kansai, using a MAS aircraft. One flight a week will operate from each of the two major Japanese gateways to Penang. Penang becomes the fifth Asian point served by scheduled JAL cargo flights. The others are Hong Kong, Singapore, Kuala Lumpur and Bangkok.

Staff
AOPA promotes Tom Chapman to senior VP of government and technical affairs Aircraft Owners and Pilots Association promoted Tom Chapman to senior VP of government and technical affairs, replacing Steven Brown, recently named president of the National Aeronautic Association. Chapman, a 15-year veteran of AOPA, was VP for AOPA's Washington operations.

Staff
DOT Deputy Secretary Mortimer Downey last week announced a 13-year, $138 million commitment of FAA funds for improvements at Chicago Midway Airport. Chicago said FAA's pledge, from discretionary Airport Improvement Program funds, is the first new multiyear airport commitment from the federal government since 1992. The grants will help finance the six-year, $722 million Midway Terminal Development Program, which includes a new terminal building, expanded concourses and aircraft ramps and a new heating and cooling plant.

Staff
A Taiwan aviation weather delegation visited the Civil Aviation Administration of China's Beijing Meteorology Center recently for discussions of academic exchange programs as relations develop between Taiwan and the mainland. After touring Beijing's automatic weather observation system, Doppler radar and meteorological database system, the Taiwan visitors invited their counterparts to attend a Taiwan Civil Aviation Administration Doppler radar training class.

Staff
There are "serious doubts" within the European Commission about whether the planned alliance between American Airlines and British Airways is compatible with Articles 85 and 86 of the European Union Treaty, an EU source said yesterday in Brussels.The articles prohibit the abuse of dominant positions and the formation of alliances that restrict competition.