Aviation Daily

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Aviation Distributors and Manufacturers Association named Ronald Chapman, VP of Cessna, president and presented the Janice Dyer Aviation Education Award to Aviation High School, Long Island City, N.Y.

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While Delta And Continental battle to become the new U.S. flag carrier on scheduled U.S.-Brazil routes (DAILY, Nov. 26), American, one of the current designees, wants more frequencies so it can start flying to Manaus, operating seven flights a week from Miami. No U.S. flags currently serve the point, although other carriers comment that American, the dominant U.S. carrier to Brazil, could use frequencies it already has to serve the point.

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UPS said it plans to strengthen its Philippines operations by forming a joint venture with Delbros Inc., one of that nation's largest transportation companies and a UPS agent since 1988. The plan follows recent award to UPS of new air rights allowing it to operate six flights a week to Manila. UPS in the last six months has made several moves to increase its Asia/Pacific presence. Last month, it started phasing in operations of a regional hub in Taiwan, core of a $400 million investment in its regional network.

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DOT has not issued a security alert on Ethiopia's airport at Addis Ababa, capital of that country and departure point for the Ethiopian Airlines 767 that crashed after being taken over by three hijackers. With no direct nonstop service between the U.S. and Ethiopia, the 1985 act requiring such notification would not demand FAA monitoring of the airport, a DOT spokesman said. A small number of Americans were reported on board and at least one died. The Nov.

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Summary of U.S. Major Carriers Domestic Revenues and Expenses Second Quarter 1996 (In Dollars) Total Operating % Passenger Carrier Revenues Change Revenues Alaska 321,384,000 14.93 272,648,000 America West 456,471,359 14.71 426,669,712 American 2,704,427,000 (3.21) 2,494,745,000

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British Aerospace Asset Management-Jets (AMJ) said it plans to certify satellite-based navigation systems to retrofit a large part of its fleet of BAe 146 jetliners because of the gradual phase-out of the worldwide network of VLF Omega ground stations. AMJ has selected the AlliedSignal-XLS for the first phase of the navigation upgrade, which covers a program to fit 90 aircraft with electromechanical flight decks.

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International Logistics said it has reached an agreement with LEP International Worldwide, a U.K.-based freight forwarder, to acquire LEP North American and to take a "significant minority interest" in LEP International Worldwide, with an option to increase it holdings over the next three years, leading to possible ultimate ownership. LEP North American consists of LEP Profit International, Atlanta, and LEP International, Toronto.

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Los Angeles City Council reportedly has voted to stand by the recommendations of two council committees to put the $31.1 million transferred to the city from Los Angeles Airport in escrow while the city conducts a study of whether the reimbursement was valid. In closed session yesterday, the City Council rejected FAA's call for return of the funds to the airport by Dec. 2, sources said.

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America West has launched daily service between Phoenix and Acapulco with 737-300 aircraft. Introductory fares are $198 roundtrip.

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ValuJet has launched a "beat the holiday rush" fare sale. Tickets for three-day advance purchase fares will start at $39 for reservations made by Dec. 4 and are good for travel Dec. 3-18 and Jan. 6-Feb. 13. The carrier expects to be back up to 128 daily departures to 20 cities Dec. 19, when it resumes flights to three more cities - Dallas/Fort Worth, West Palm Beach and Fort Myers (DAILY, Nov. 26). The new service, announced Monday, will use five DC-9s ValuJet is bringing back into the fleet.

Staff
The City of New York cannot count passenger facility charges as revenue in calculating rental rates at New York's LaGuardia and Kennedy airports, FAA last week told the Port Authority of New York and New Jersey. FAA Chief Counsel Nicholas Garaufis responded to a request for "information and advice" from the port authority after New York Mayor Rudolph Giuliani said he would seek about $220 million in back rent he claimed was due the city from the airports.

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Air Transport Association said revenue passenger miles for ATA carriers rose 7.5% in October to 46.9 billion from 43.6 billion last October. Domestic travel continues to outpace international growth - domestic RPMs increased 8.7% to 34 billion, while international RPMs were up 4.6% to 12.9 billion. Total available seat miles grew 3.2% to 67 billion from 64.9 billion. The average load factor rose to 70% from 67.1% in October 1995.

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Summary of U.S. Major Carriers International Traffic Second Quarter 1996 Revenue Average Revenue Passengers Length of Passenger Enplaned % Travel Miles Carriers (000) Change (Miles) (000) Alaska 190 29.98 1,042 198,526 Latin 190 29.98 1,042 198,526 American 3,595 1.36 2,187 7,862,742

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Nav Canada, owner and operator of the Canadian air navigation system (ANS), will establish a user fee system to fund air traffic control over the next 10 months, with plans to put the system in place once the Canadian transportation tax is abolished Oct. 31, 1998. Nav Canada currently operates the ANS with tax money, which it considers a transition payment as it moves to a privatized system, said Nav Canada Chairman John Crichton yesterday at an AeroClub of Washington luncheon.

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Carnival Air Lines will begin offering ticketless travel on its flights from Newark to Palm Beach and Tampa Dec. 15, calling the program ElecTik.

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Greenwich Air Services reported that net sales for the September quarter increased 188.7% to $179.7 million, while net income rose 129.5% to $4.7 million. For the year ended Sept. 30, net sales were up 102.7% to $397.9 million and net income jumped 90.2% to $11.8 million.

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Continental has promoted current officers to four executive VP and five senior VP positions because they have "proven themselves as the best management team in the airline industry," Chairman and Chief Executive Gordon Bethune said. The move does not constitute a reorganization or add to the management layers, Bethune said. Ben Baldanza was named executive VP-marketing; Lawrence Kellner, executive VP and chief financial officer; C.D. McLean, executive VP-operations, and Jeffery Smisek, executive VP and general counsel. All formerly were senior VPs.

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ICTS International of The Netherlands said it has sold its 20% equity interest in the Israeli company Maman Cargo Terminal&Handling, which it acquired earlier this month. ICTS said it decided to sell after receiving an offer from an Israel company that became a stockholder in Maman after ICTS acquired its position. ICTS said the sale of its equity resulted in a net profit of about $5 million.

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British Airways yesterday said it is in talks "with a number of interested parties" to sell its Ground Fleet Services division as part of the company's "Business Efficiency Programme" to reduce costs by 1 billion pounds over the next three years. The division, which employs 380 at Heathrow and 90 at Gatwick, provides ground equipment and vehicle leasing services and maintains 7,300 vehicles at both airports. "A firm decision on the long- term future of Ground Fleet Services is expected in the new year," BA said.

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Atlantic Coast Airlines is offering $49 one-way fares for nonstop flights to and from Washington Dulles Airport Nov. 28 through Nov. 30. The United Express carrier will donate $20 of each ticket to the American Red Cross.

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Growing interest in serving the U.S.-Latin America market is emerging in requests by Continental and Delta for newly authorized service to Brazil. A recent bilateral revision expands the number of authorized U.S. flag carriers from three to four and increases total available frequencies from 84 to 98. American wants more frequencies, and Delta and Continental have asked for designation as the new U.S. flag. In filings at DOT, Continental staked its claim as the only totally new entrant, citing Delta's code shares with Varig.

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The U.S. Court of Appeals for the Seventh Circuit last week upheld an earlier district court decision by dismissing a State of Illinois plea to keep Chicago's Meigs Field open.

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San Francisco Board of Supervisors Monday approved an agreement between San Francisco Airport and Bay Area Rapid Transit committing up to $200 million in airport funds toward a BART station at the airport. BART and San Mateo County Transit plan soon to award the first contract for the airport extension, which is slated to open in 2000.

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World Airways applied at DOT to amend its long-term wet-lease authority on behalf of Philippine Airlines to expand the service. World currently has authority to perform wet-lease operations for PAL between Manila and Honolulu. Now the carriers want to use World MD-11s to fly between Manila and Los Angeles via Seoul, up to four times a week, configured for two classes seating as many as 322 passengers.

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FAA's plan to reduce vertical separation minimums next March for aircraft crossing the North Atlantic drew criticism yesterday from National Air Transportation Association President James Coyne as a "total capitulation" to the International Civil Aviation Organization. Coyne said FAA will "completely shut out corporate and charter air traffic in the most heavily used altitudes crossing the Atlantic Ocean" when the minimums are reduced, beginning March 27.