Aviation Daily

Staff
FAA last week issued a screening information request (SIR) for participation in a competitive procurement for security equipment integration and installation services. The agency seeks reponses, including a technical proposal, past performance and relevant experience, by 2 p.m. Dec. 2. The SIR is available on the Internet at http ://www.faa.gov/asu/cd/cdco.htm. For more information, contact Mary McGrath at e-mail [email protected] or telephone 202-267-7538.

DOT

Staff
Orally approved an exemption renewal for Oasis International Airlines S.A. for foreign combination charter service between Spain and the U.S....Orally renewed Sky Service's exemption to provide combination charter service between Canada and the U.S...Granted a joint application of Continental, Continental Express and Alitalia-Linee Italiane S.p.A.

Staff
Million Air named Melinda Glau aviation manager at its Houston Hobby Airport facility.

Staff
House Republicans voted last week to retain Bob Livingston (R-La.) as chairman of the Appropriations Committee in the 105th Congress, even though the senior Republican, Joseph McDade (R-Pa.), has been acquitted of bribery charges.

Staff
Regulations, safety and air traffic control will head the Air Transport Association's list of target issues in the coming year. ATA President Carol Hallett told The DAILY Friday that revamping the ATC system probably is the single biggest concern ATA will deal with. Past ATA positions have included establishing an independent FAA and taking the aviation trust fund off budget, but Hallett could not predict which policy recommendations will emerge this time.

Staff
FAA is developing a certification team that will focus specifically on new certificates, according to William White, deputy director of flight standards. The agency also is implementing a surveillance improvement program, he said.

Staff
Kitty Hawk, air freight charterer, said revenues increased 38.4% to $35.3 million for the quarter that ended Aug. 31. Net income rose to $2.3 million from $762,000. For its fiscal year, revenues increased 37.3% to $142.4 million, and net income was up to $7.7 million from $5.2 million.

Staff
Skymark Airlines, the new Japanese carrier being formed by travel agent H.I.S. and other investors, will seek a business license from the Ministry of Transport next spring and hopes to launch service within two years, according to its president, Jun-ichi Ohkawara, and chairman, Hideo Sawada. Speaking with reporters, the executives said the airline plans to operate with three 767 aircraft leased from a Japanese leasing company, flown by foreign cockpit crews trained by an existing airline and cabin crew personnel working on short-term contracts.

Staff
Lufthansa will end its three-times-weekly service between Frankfurt and Kathmandu next May. The German airline, the only European carrier still operating direct scheduled services from Europe to Nepal, said it lost 7 million Deutschmarks on the route last year, up from DM4 million in 1994.

Staff
Air France's $158 million first half profit will help the carrier through the current fiscal year, but quiet, more substantive changes in its balance sheet will aid it long-term. The airline reduced net debt 33% in six months, to $2.54 billion as of Sept. 30 from $3.78 billion on March 31.

Staff
American placed a firm order yesterday for 103 aircraft of four Boeing twinjet types and placed "purchase rights" on 527 more, in a deal that commits the airline to Boeing through 2018 and may change the way commercial aircraft are marketed and purchased. Experts valued the innovative purchase agreement at $4.7-$5 billion, or as much as 25% off the list price of $6.3 billion. The contract is contingent on ratification by American's 9,150 pilots of an agreement approved 10-8 this week by the Allied Pilots Association board.

Staff
Major U.S. airlines are attempting to quash competition by painting small carriers as unsafe because of their low-cost structure, and the government is letting them get away with it, according to Tower Air Chairman, President and Chief Executive Morris Nachtomi. Since the ValuJet accident in May, major airlines have undertaken "a concerted campaign to cast small carriers as unsafe," Nachtomi told Aviation Week Group editors.

Staff
U.S. Major Carriers Traffic Market Share (000) October 1996 RPMs Share (%) 1. United 10,041,141 21.837 2. American 8,708,023 18.938 3. Delta 8,158,151 17.742 4. Northwest 5,207,933 11.326 5. Continental 3,498,281 7.608 6. USAir 3,474,427 7.556 7. Southwest 2,557,378 5.562

Staff
American's fleet replacement plan, worth at least $800 million in firm orders alone to GE Aircraft Engines and the GE-Snecma CFM International joint venture, also sets the stage for yet another contest to power a Boeing 777 fleet. Engines for most of the 103 firm-order aircraft are determined - the 75 737s are CFM-powered, and GE won the order to power four 767s with CF6s. Rolls-Royce, which holds the worldwide 757 market share lead, will supply RB211-535s for American's 12 firm and as many as 38 potential 757s.

Staff
Panamanian carrier DHL Aero Expreso filed for an emergency exemption to route its Panama-U.S. flights through Costa Rica as an air traffic control strike proceeds in Panama. The carrier started flying between Panama and Miami on Nov. 7, and the strike, which began Nov. 28, disrupted nighttime operations "essential for its overnight services," DHL Aero said. Asking for a 90-day exemption, the carrier said that "it now appears the strike may continue for an indefinite period" but probably will be settled within 90 days.

Staff
Atlantic Southeast is again on the hunt for a regional jet - of the 50- passenger variety. The Atlanta-based Delta Connection carrier is not happy with the reliability of its eight BAe 146 quadjets, and is looking at both the Embraer EMB-145 and the Canadair Regional Jet. The carrier is a large fleet operator of the Embraer EMB-120 Brasilia, which could be a factor in the outcome.

Staff
American Eagle's closing its Nashville hub earlier this year continued to show in the regional system's latest traffic figures - revenue passenger miles dropped 6.3% in October to 213.4 million as capacity declined 8.5% to 368.9 million available seat miles. The load factor, as a result, rose 1.3 percentage points to 57.8%. American Eagle this year has retired 54 aircraft and closed 26 stations nationwide. The carrier said that excluding 1995 operating results at Nashville, system traffic was up 6% on a 3.2% capacity increase.

Staff
Ayres Corporation, the Albany, Ga., manufacturer of the Turbo Thrush Ag aircraft, last week unveiled plans to build a new cargo/utility aircraft after receiving a letter of intent from Federal Express Corp. to purchase 50 of the aircraft with options for 200 more. The 69-foot Loadmaster LM200 aircraft, designed in consultation with Federal Express, will be capable of carrying four eight-foot-by-eight-foot cargo containers and a 7,500-pound payload for use in Part 135 operations. Certification and delivery are expected in late 1999.

Staff
Taiwan's Civil Aeronautics Administration has announced the names of nine companies that will receive licenses to conduct commercial helicopter operations. A CAA spokesman said three of the nine companies already own helicopters and will be able to begin flying as soon as they pass security checks and complete flight tests. Any company that does not begin flight operations within one year will have its license revoked.

Staff
Portland-Seattle regained its role as the nation's top regional airline market in 1995, replacing Seattle-Spokane, which had replaced it a year earlier, according to a report by AvSTAT Associates of Washington, D.C., for DAILY affiliate Business&Commercial Aviation. Both are highly competitive markets with Horizon Air and United Express Mesa dividing 584,871 Portland-Seattle passengers last year on 45 weekday roundtrips. Horizon carried 532,944 Seattle-Spokane passengers in 1995, in competition with senior partner Alaska Air and Southwest Airlines...

Staff
Mark Gerchick, DOT deputy assistant secretary for aviation and international affairs, will be the keynote speaker for the Airports Council International-North America 8th annual International Air Service Seminar, to be held Dec. 5 at the J.W. Marriott Hotel in Washington. Aviation analyst Bob Booth, Continental's Tom Anderson and Varig's Carlos Muzzio will discuss the Latin America/Caribbean market. For more information, call the ACI-NA conference department at 202-293-8500.

Staff
BE Aerospace has registered with the Securities and Exchange Commission to sell four million shares of common stock. The $58 million in net proceeds raised by the Wellington, Florida-based aircraft interiors company will be used to pay long-term debt.

Staff
No, Comair did not close the Kingston, Jamaica, airport for 24 hours. The Associated Press reported last week that "a DC-8 belonging to Cincinnati- based Delta Connection Comair blocked the runway, its nosewheel sunk in mud..." Turns out that the plane could not be moved until its cargo was unloaded, which took nearly 24 hours. Only problem is, Comair does not operate DC-8s. It does operate some Learjets in charter service under the name of Comair Jet Express, which has confused some folks regarding the new low-fare Delta Express. Oh well, a name is...a name.

Staff
Taiwan's state-run Aerospace Industry Development Corp. (AIDC) has been invited to work with Europe's Aero International Regional Group (AIR) in a US$900 million project to develop a new generation of twin-engine, 70- seat passenger jets. The joint venture was proposed by a high-profile AIR delegation at the end of a fact-finding visit to Taipei. During the visit, the delegation met with ROC officials in charge of aerospace affairs and toured AIDC, Taiwan's only aircraft manufacturer.

Staff
FAA said this week it will consider waivers needed to grant limited third- class airman medical certificates. FAA regulations prohibit insulin- treated diabetics from qualifying for medical certificates. The regulations will remain in place, but under a policy published in yesterday's Federal Register, FAA will allow waivers if the individuals are at a low risk for hypoglycemia.