Aviation Daily

Staff
Mesa Air Group's traffic dropped 4.2% in September to 104.5 million revenue passenger miles from 109.1 million RPMs in September 1995 as capacity declined 7.9% to 192.5 million available seat miles from nearly 209 million. The load factor, as a result, rose 2.1 percentage points to 54.3% from 52.2%. Passenger boardings dipped 3% to 510,647 from 526,188.

Staff
FAA has established new rules of practice for filing and adjudicating most compliance issues involving federally assisted airports that are "intended to expedite substantially" the handling of complaints. The new Part 16 regulations, to be published in the Oct. 16 Federal Register, would be used in place of Part 13 regulations for certain proceedings. Disputes between airlines and airport operators over the reasonableness of airport fees still would be adjudicated under the expedited procedures adopted by DOT last year.

Staff
Delta Connection carriers Atlantic Southeast and Comair continued to record high profit margins through the June quarter. ASA's margin remained double-digit through the past nine quarters while averaging what is probably an industry high of 24.9%. Comair's operating margin dipped below two digits in only one of the last nine quarters but averaged 17.7%.

Staff
Frontier Airlines' traffic climbed 112% in September on 127% more capacity, for a total of 54.9 million revenue passenger miles. Available seat miles totaled 112.3 million, and the load factor fell from 52.1% to 48.9%. The load factor was much improved in the first nine months of the year, rising from 47.8% to 60.9%. RPMs during the period rose 160.5% from 228.4 million to 594.9 million, and ASMs were up 104.3% from 476.8 million to 973.9 million.

Staff
As expected, American Eagle passengers at Chicago O'Hare Airport beginning next month will be able to board aircraft using the first of 20 planned passenger loading bridges (DAILY, July 8). The specially designed bridges are a component in Eagle's $12 million hub renovation project . The program will turn Concourse "G" into "the first regional airline hub facility in the world to offer covered boarding on such a large scale," Eagle said in announcing the program formally this week.

Staff
U.S. airlines are beginning to take notice of a push by environmentalists worldwide to reduce air pollutants, which could lead the United Nations to set new standards or implement taxes to reduce engine emission levels. The U.N. Framework Convention on Climate Change could attempt to make binding the voluntary commitments made by world leaders in 1992 during an Earth Day summit. Leaders at the Rio de Janeiro meeting promised to reduce gases that cause the greenhouse effect, such as carbon dioxide and nitrogen oxide (NOx). The U.N.

Staff
MCI and InsideFlyer Magazine are accepting responses from travelers for the ninth annual Freddie Awards for excellence in frequent travel programs of the airlines, hotels and credit card companies. A new category of "best Web site" has been added to this year's contest. Travelers have four ways to cast a ballot: America Online subscribers can vote by using the keyword "insideflyer;" Internet users can access http://www.webflyer.com; the ballot is in the October issue of the magazine, and travelers can call 719-597-8889. The deadline for ballots is Nov. 29.

Staff
Alaska Air Group subsidiary Horizon Air posted a 2.2% increase in traffic to 72 million revenue passenger miles from 71 million in September 1995. But capacity gained 7% to 126 million available seat miles from 118 million, pushing the load factor down 2.6 percentage points to 57.5% from 60.1%. The number of passenger boardings was off 1.8% to 308,800 from 314,400 in the prior period. Sept. 1996 Sept. 1995 9 Mths 1996 9 Mths 1995 ---------------------------------------------------------------------

Staff
Midwest Express's Skyway Airlines unit flew 6.2 million revenue passenger miles last month, a 5.9% increase from 5.8 million in September 1995. Capacity increased just 0.9% to 13.8 million available seat miles from 13.6 million a year earlier, permitting the load factor to rise 2.1 percentage points to 45%, a record for the carrier.

Staff
LOT Polish Airlines this week ordered two 737-800s in an order that Boeing valued at $102 million. The aircraft will add to LOT's 737 fleet, which stood at 11 -300/400/500 models as of July. The two -800s, which can carry 168-189 passengers, will be delivered in the middle of 1998. The airline also operates four 767s.

Staff
FAA granted yesterday extended-range, twin-engine operations approval to 777 transports powered by Rolls-Royce Trent 800 engines, Boeing announced. The approval enables the twin-engine aircraft to fly up to 180 minutes from primary and alternate airports. Boeing said the latter part of the 1,000- flight validation program consisted to 90 flights totaling about 400 hours operated in conjunction with Cathay Pacific ground and flight personnel.

Staff
USAir's bid for Heathrow services has gained solid support from government and industry leaders in its hub areas. Proposing service to London from both Philadelphia and Pittsburgh hubs, the carrier has picked up backing from the Pennsylvania's congressional delegation, two Senators and governor. Boosting the service, Philadelphia Mayor Ed Rendell called the routes "essential building blocks both for competition in the U.S.-UK market and for Philadelphia's future." Pittsburgh Mayor Tom Murphy also supports the service.

Staff
DOT has issued a show cause order tentatively granting Golden West Airlines a certificate to operate commuter service. Golden West plans one roundtrip each weekday between French Valley, Calif., and Ontario, Calif. using one five-seat Cessna C-201L aircraft. Depending on the demand, the carrier said it may expand the services at a later date. Between 1979 and 1990, Norman Mclnnis, the carrier's president, was president of Royale Airlines, general manager of Precision Airlines, president of Britt Airways and president and CEO of L'Express.

Staff
AAR Corp. said yesterday it has signed a multi-year contract with American Eagle to refinish its S340 and ATR 42/72 aircraft exteriors - up to 100 aircraft. Work is scheduled to begin this month and continue over the next 24 to 36 months.

Staff
Fearing competition from American Eagle, Continental Express and the Delta Connection carriers, all of which now or soon likely will operate regional jets, United is pressing its pilots on the issue. The carrier's new scope clause in its pilot contract "constrains" United Express carriers from operating jets of any size. The one exception is Air Wisconsin, which is grand-fathered to operate up to 15 BAe 146s.

Staff
Lufthansa yesterday devalued its stock in order to make the airline and the stock more attractive to foreign investors, and to ensure that following total privatization, the majority of investors are Germans. The carrier will reduce the face value of all shares from 50 Deutschmarks to DM5. All preferred shares are being converted to ordinary shares, a move that will improve the airline's stock structure and enable the German government to proceed with plans to sell its remaining stake - DM1.7 billion in shares of the airline.

Staff
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals September 1995 - August 1996 Total Total Cost Gallons (Dollars) 1995 September Domestic 1,036,896,325 578,050,320 International 392,835,106 235,852,438 System Total 1,429,731,431 813,902,758 October Domestic 1,079,673,756 608,345,453

Staff
USAir received approval yesterday from the Massachusetts Port Authority board for a two-year, $35 million project at Boston Logan Airport that will significantly expand its passenger services space and enable it to use its 16 gates more effectively. The Terminal B expansion plan entails pushing out the walls and completely renovating the interior by May 1998.

Staff
Wilcox Electric plans to take several days to decide whether to appeal FAA's denial of its protest of the agency's sole-source Wide Area Augmentation System (WAAS) contract award to Hughes Aircraft Company. Wilcox held the contract originally, but FAA canceled it. Director of Business Development Wayne Dolhman told DAILY affiliate ATC Market Report, "We haven't decided yet, either internally or in conjunction with Thomson- CSF [Wilcox's parent company ], what if any action we might take with regard to an appeal."

Staff
Travel Industry Association will issue its 1997 forecast and 1996 estimates for business and pleasure travel Oct. 17 during its National Outlook Forum in Alexandria, Va. The statistics will be presented by Suzanne Cook, senior VP-research, who will also speak on new research on consumers' use of technology to book travel.

Staff
United's traffic increased 2.9% in September to 9.854 billion revenue passenger miles on strong domestic demand and increases in the Pacific and Latin America. Transatlantic traffic fell off 11.8% on 13.4% less capacity. Available seat miles overall rose 2% to 13.736 billion, and the load factor inched up to 71.7%. "Our passenger load factor for domestic markets was 68.9%, which was two points better than we achieved last year and about four points ahead of the industry average," said President and Chief Operating Officer John Edwardson.

Staff
American pilot salaries for the Canadair Regional Jet would start at $129.02 per flight hour for a two-year captain, according to an estimate being circulated among Allied Pilots Association members. The first officer would receive $47.74 per hour. The rates would increase to $139.48 and $94.85 for 12-year captains and F/Os. The rates are based on Green Book scales and may not be totally realistic, the author said. SkyWest RJ captains receive less than $70 per hour and Air Canada RJ captains, when that operation started, received about $58 U.S. and the F/Os $35.

Staff
Airport and Airway Trust Fund - Income Statement October 1, 1995 - July 31, 1996 Current Month RECEIPTS (Revenues) Revenues: Excise Taxes (Transferred from General Fund): Liquid Fuel other than Gas $ (270,422,000.00) Transportation by Air, Seats, Berths, etc. 271,041,000.00 Use of International Travel Facilities 15,606,000.00 Transportation of Property and Cargo 9,089,000.00

Staff
European business travelers have not caught on as quickly to electronic ticketing and do not like the idea as much as U.S. travelers, concludes a new survey by Air Travel Card. The company found that only 28% of business travelers in three key European countries - England, France and Germany - use electronic ticketing.

Staff
Midwest Express reported its third month of double-digit growth in traffic and capacity in September. Revenue passenger miles rose 15.3% to 101 million from 87.6 million while available seat miles increased 22.5% to 170.5 million from 139.1 million. The load factor fell 3.7 percentage points to 59.3%. For the first nine months of the year, the carrier flew 5.8% more RPMs for a total of 931.7 million. ASMs increased 6.5% to 1.447 billion, pushing the load factor down 0.4 points to 64.4%.