Aviation Daily

Staff
DOT dismissed complaints against the government of Indonesia following separate motions by Northwest and United to withdraw their complaints. The carriers accused Indonesia in July of violating the U.S.-Indonesia air transport agreement by refusing to grant them the necessary authorities to operate their U.S.-Osaka-Jakarta services. Subsequently, Northwest and United said they received the necessary authority from Indonesia. (Docket OST-96-1547)

Staff
The State of Minnesota is boosting Northwest's bid for new Toronto service. One of five carriers to file applications in the U.S.- Toronto Third Year Service Proceeding begun in July, Northwest is seeking twice-daily nonstop service between Minneapolis/St. Paul and Toronto. "Improved service between Toronto and Minneapolis/St. Paul...will strengthen trade with Canada and clearly benefit Minnesotans," said the state.

Staff
National Transportation Safety Board recommended yesterday that FAA evaluate the effects of automatically stowing the speedbrakes on aircraft when high power is commanded, and that it determine whether it would be desirable to incorporate automatic speedbrake retraction on aircraft for windshear and terrain escape maneuvers. The recommendations, made with the concurrence of the Aeronautica Civil of Colombia, follow an investigation into the fatal crash Dec. 20 of an American 757 near Cali, Colombia. Aeronautica Civil blamed the cockpit crew for the crash (DAILY, Sept.

Staff
Air South President and Chief Executive John Tague has assumed the added role of chairman of the Columbia, S.C.-based airline, succeeding Clif Haley, who will remain on the board. When Tague joined Air South in July, the company announced he would be moving into the chairman's seat in September. Air South said the carrier is beginning to see the results of changes Tague has made in management, scheduling and pricing. It achieved a record load factor in August and a 98% reliability rating.

Staff
DOT Secretary Federico Pena will be at Dallas/Fort Worth Airport to take part in the official opening of DFW's seventh runway. Under construction since 1993, the new runway will enable the airport to accommodate three precision instrument approaches simultaneously. Denver International Airport is the only other airport to have this capability.

Staff
Continental yesterday elected Gordon Bethune, chief executive, to be chairman, succeeding David Bonderman. Chief Operating Officer Greg Brenneman, credited with many of the carrier's recent improvements, was elected president, succeeding Bethune in that post. Bonderman remains chairman of Continental's executive committee and board member. Bonderman's Air Partners investment firm is the carrier's largest shareholder.

Staff
China Airlines' engineering and maintenance division has been awarded ISO- 9002 certification, making CAL the first Taiwanese airline to reach this milestone. The division, established more than 30 years ago, conducts maintenance and repairs for fleets belonging to CAL, subsidiary Mandarin Airlines and more than 20 foreign carriers serving Taiwan's two international airports.

Staff
Philippine Airlines is seeking renewal of its exemption authority to serve Saipan as an additional point on scheduled combination services between Manila and Guam. (Docket OST-95-487)

Staff
Over the next 20 years, airlines will need nearly 13,600 new aircraft, valued at $1.1 trillion, according to a new forecast issued yesterday by McDonnell Douglas. This amounts to about 680 new airplanes a year, said Don Black, VP-general manager of sales and marketing for Douglas Aircraft. The forecast includes all 457 scheduled and non-scheduled airlines that operate jet aircraft, he said. Airlines in the former Soviet Union are not included.

Staff
SatoTravel is opening a corporate call center in Seattle near Seattle- Tacoma Airport. The company's original call center in Sterling, Va., is operating at capacity with more than 340 travel counselors and other employees. The Seattle center, which will employ 250 workers, is expected to open in January.

Staff
Four former military airfields have been selected to participate in the FAA Military Airport Program (MAP). Designed to help convert the facilities to civilian commercial use, MAP will give $5.7 million to former Air Force pilot training base Williams Gateway Airport, Phoenix; $5 million to the former Bergstrom Air Force Base, now Austin Bergstrom Airport, Austin, Texas; and $1 million to the former naval station Millington Municipal Airport, Memphis, Tenn.

Staff
With U.K. and Japan negotiations at a standstill, U.S. hopes for European Union talks took a hit this week as both sides took steps to scuttle any potential for progress. Planned discussions about aviation talks with the U.S. were dropped from the EU's Council of Transportation agenda for their meeting in Luxembourg beginning today. "I don't think that the issue can be properly addressed until after the U.S. presidential elections," said a top EU official, adding that "the atmosphere has become pretty tense" in the wake of the recent breakdown of U.S.-U.K. talks.

Staff
The world's airports reported passenger traffic gains of 6.6% for the first six months of 1996, compared with the same period in 1995, according to the Airports Council International. Cargo volume rose 4.8%, while aircraft movements were up slightly at 1.7%. ACI said passenger traffic in June increased 5%, cargo 9% and aircraft movements 1%, based on traffic reports from 458 airports worldwide.

Staff
Rio Air Express, operating as Skyjet Brasil, applied for renewal of its exemption to operate charter passenger service between a point or points in Brazil and a points or points in the U.S. (Docket OST-96-1578)

Staff
Federal Express Corp.'s board yesterday announced a stock split that will double the number of shares. The split, a dividend of one share for each share outstanding, "should result in improved trading liquidity and a broader investor base over time," Chairman Fred Smith said.

Staff
The National Transportation Safety Board yesterday began consideration of a new round of recommendations that would upgrade the safety of older model Boeing 737s. Boeing is uncomfortable with several of the measures, and details provided at yesterday's NTSB public hearing reveal sweeping moves that could affect the operation of all 737s and should influence Boeing's current and future designs of the aircraft. The board delayed voting because 10 of the 19 proposed recommendations were altered during the hearing. The vote is expected during the board's Oct.

Staff
USAir applied to DOT for an exemption to continue operating scheduled service between Charlotte and Montego Bay, Jamaica. With exemption authority for this service, which expired Aug. 3, USAir wants permission to operate daily service in the market for two years, using 737-400 aircraft. (Docket OST-96-1775)

Staff
Northwest said it will host a meeting of customer service representatives from 60 airlines Oct. 1-4 in connection with the 50th anniversary conference of the Worldwide Airlines Customer Relations Association (WACRA). The conference, in Bloomington, Minn., will include speakers from several government agencies, and topics will include customer expectations, legal issues, corporate culture and the role of the Internet in customer service.

Staff
Air Canada will add a fifth daily nonstop from Boston to Montreal on Oct. 27.

Staff
Alaska Airlines is offering state residents a permanent fund dividend Special - four roundtrip tickets from Alaska to any domestic destination it serves, except Prudhoe Bay, for the amount of a resident's permanent fund dividend check, issued annually by the state. The offer, beginning Oct. 9 and continuing through Nov. 15, and is good for travel Jan. 1 through Dec. 15, 1997.

Staff
DOT once again extended the deadline - now through Oct. 31 - for taking action on the complaint of Northwest against the government of Japan. In July, Northwest filed its complaint, asserting that Japan has refused to authorize its proposed Seattle-Osaka-Jakarta service in violation of the U.S.-Japan Air Transport Agreement (DAILY, July 8).

Staff
World Airways, which retrenched from scheduled passenger service during the summer, said yesterday it expects its third quarter earnings to exceed analysts' expectations. The carrier expects net earnings of $2.8-$3 million, or $0.23-$0.25 per share, for the three-month period that ended Sept. 30. Analysts expected per-share earnings $0-$0.20, World said. World President and Chief Executive Chuck Pollard said the airline's wet- leasing operation "continues to perform well."

Staff
Reynolds Metals Co. said it has increased aluminum-lithium capacity by 100% with the startup of a $5 million, state-of-the-art casting complex at its McCook, Ill., sheet and plate plant.

Staff
U.S. Major and National Carriers Advertising Expenses Second Quarter 1996 % Of Total Passenger Systemwide Revenues Alaska $ 3,784,000 1.29 Domestic 3,529,000 1.29 Latin 255,000 1.30 America West 10,375,694 2.38