Aviation Daily

Staff
Mountain Air Express (MAX), being formed by the principals of Western Pacific Airlines, expects to begin regional airline service in November from WestPac's Colorado Springs hub with four 30-passenger-plus turboprops. Although it will be formed as an independent company, like its progenitor, MAX will be a low-fare airline, initially feeding WestPac from Aspen, Gunnison, Steamboat Springs, Telluride and Vail. Prime competitive target is Mesa unit United Express, which has held a monopoly in many markets since Continental Express pulled out of Denver.

Staff
FAA's impending changes in flight and duty time rules for airline pilots are expected to increase the U.S. business of SBS International, particularly in the regional airline sector, according to Mark Hornby, president of the company. SBS, which describes itself as the "world's largest provider of crew management systems to the airline industry," now does about 80% of its business with foreign carriers. One of its new U.S. customers is the Air Line Pilots Association, Hornby told The DAILY in an interview.

Staff
FAA Administrator David Hinson boosted the U.S. edge in the integration of information technology in a speech to the American Bar Association's Forum on Air&Space yesterday. "There is no better example than the new generation of cockpit with its digital flight management system," he said. "The Boeing 777, with its 187 computers and 7.5 million lines of software code, stands at the beginning of what is certain to be a long line of evolutionary development as system integration becomes more and more complex," he said.

Staff
Unisys Corp. announced creation of the Women in Freight Association, formed to address concerns of female professionals in transportation and freight management. The initial meeting was convened by Gail Jones, Unisys VP- freight management. Its next meeting will be held Oct. 20 in Dubai at the International Air Cargo Association. Interested parties should contact M. Drozd at Unisys, 215-986-2052.

Staff
Hawaiian Airlines and Mahalo Air have signed an agreement to code share on Mahalo's flights between Honolulu and West Maui Airport, beginning July 1. Mahalo operates seven daily flights in the market with 46-seat ATR 42s. The two carriers linked up on service to Molokai last month. Hawaiian is offering frequent flyer members double miles on July 1-3 to promote the service.

Staff
Eastwind Airlines has launched daily service to Atlanta from its Trenton, N.J., base. The carrier is offering two daily flights with 737-200s.

Staff
The House Transportation Committee approved yesterday the FAA reauthorization bill (H.R.3539) adopting amendments that in effect strike measures to renew the aviation excise taxes through 1999 and restore the airline industry's exemption from the 4.3 cents-per-gallon transportation fuels tax. The committee also approved the pilot records transfer bill (H.R.3536) and the child pilot safety bill (H.R.3267).

Staff
United Express affiliate Atlantic Coast Airlines made 67.1 million seat miles available for sale last month, a 12.3% increase from 59.7 million in May 1995. Traffic increased 7.8% to 33.1 million revenue passenger miles from 30.7 million in the 1995 period, depressing the load factor two percentage points to 49.3% from 51.3%. Passenger boardings were up 9% to 135,209 from 124,059.

RAA

Staff
RAA board of directors voted Thursday to support a modified version of the interim user-fee proposal of the seven largest U.S. airlines, which would substantially reduce the fees paid by regional carriers, compared with the 10% ticket tax. The RAA proposal calls for $1 per seat for regionals ($2 for large jets), $4.50 per passenger and 0.5 cents per passenger per nonstop O&D mile.

Staff
TWA's May traffic increased 15.2% to 2.31 billion revenue passenger miles from 2 billion. Available seat miles were up 11.1% to 3.42 billion from 3.08 billion in May, and the load factor improved to 67.4% from 65%. For the first five months, RPMs rose 10.4% to 10.297 billion RPMs and ASMs 6.9% to 15.845 billion. May 96 May 95 5 Mths 96 5 Mths 95 RPMs 2,305,900,000 2,001,500,000 10,297,500,000 9,329,000,000 ASMs 3,420,200,000 3,077,300,000 15,845,200,000 14,819,500,000

Staff
Charlotte, N.C.-based CCAIR last month set an all-time monthly record for traffic, logging 14.3 million revenue passenger miles, a 16.5% increase from May 1995. The previous record was two years ago, when traffic was stimulated by low fares initiated by Continental Lite, CCAIR said.

Staff
China Airlines reports that sales rose 4.97% in April from the same month last year to NT$3.97 billion (US$144.4 million). The company's sales for the first four months of the year grew 6.3% from year-earlier levels to NT$15.2 billion (US$552.7 million).

Staff
The average price per share for nine regional airline stocks rose $1.05 to $13.20 during May, with seven issues in positive territory and only two declining. The stellar performer was Delta Connection SkyWest, whose stock price increased by $4.25, from $14.88 at the April close to $19.13 on May 31.

Staff
Delta Connection affiliate Atlantic Southeast flew 82.8 million revenue passenger miles last month, a 22.5% increase from May 1995's 67.6 million. Capacity grew 7.3% to 154.7 million available seat miles from 144.2 million, however. As a result, the load factor increased 6.6 percentage points to 53.4% from 46.9% in the prior period. Passenger boardings rose 25.4%. May 1996 May 1995 5 Mths 1996 5 Mths 1995 RPMs 82,822,005 67,607,940 360,033,455 301,077,522

Staff
French regional Brit Air launched Paris-Southampton, England, service June 1 under a fran-chise contract with Air France, an unusual arrangement in French air transport. Brit Air has a second agreement, with Air France Europe, to operate service between Paris and Rennes, and this "should foreshadow more" franchise deals, Air France said. Franchising is considered a consequence of the liberalization of air transport in France and in Europe, as Air France does not own smaller regional aircraft and does not plan to buy any.

Staff
Mesa Air Group flew 114.3 million revenue passenger miles in May, a 13.4% increase from May 1995. Capacity failed to keep pace, rising 3.2% to 203.2 million available seat miles from 196.9 million in the prior May. As a result, the load factor jumped 5.1 percentage points to 56.3% from 51.2%. Passenger enplanements were up 2.6% to 552,412 from 538,270. Mesa Air Group comprises six different airline divisions flying to 166 cities in 31 states with 174 aircraft. May 1996 May 1995 5 Mths 1996 5 Mths 1995

Staff
Southwest flew 2.28 billion revenue passenger miles in May, a 15.3% increase from May 1995. Available seat miles rose 12.9% to 3.45 billion, and the load factor was up 1.3 percentage points to 66% from 64.7%. May 96 May 95 5 Mths 96 5 Mths 95 RPMs 2,276,617,608 1,974,989,182 19,772,501,000 17,632,055,000 ASMs 3,448,215,490 3,054,009,504 16,399,031,291 14,455,000,968 LoadFtr% 66.0 64.7 62.5 62.8

Staff
Overall Percentages Of Reported Domestic Flights Arriving On Time By Carrier April 1996 20 2nd Q 1995 3rd Q 1995 4th Q 1995 % (Rank) % (Rank) % (Rank) Alaska 79.9 (5) 74.3 (10) 77.2 (5) America West 78.3 (6) 80.8 (5) 76.1 (6) American 77.1 (8) 81.9 (4) 78.0 (4) Continental 75.5 (9) 84.5 (2) 80.7 (1)

Staff
Fuel Cost and Consumption U.S. Majors, Nationals and Large Regionals May 1995 - April 1996 Total Total Cost Gallons (Dollars) 1995 May Domestic 1,049,428,697 571,715,017 International 365,774,207 221,487,650 System Total 1,415,202,904 793,202,667

Staff
After years of study, Southwest is making its move into the Northeast and has decided on Providence, R.I., as its second Eastern Seaboard destination. The carrier will offer its low-fare, short-hop flights Oct. 27 from T.F. Green Airport to yet-to-be-named destinations. Southwest declined yesterday to say where or to how many points it will fly or how many aircraft it will put into the market, but did say six aircraft will be available for new service. It will have one gate and occasionally will use a second in the new terminal at T.F.

Staff
San Antonio, Texas-based Fairchild Aircraft has completed a transaction giving it a four-fifths share of Dornier Luftfahrt GmbH, with Daimler-Benz Aerospace retaining the other one-fifth of the Do 228 and 328 aircraft manufacturer, Fairchild announced (DAILY, May 31). A Daimler-Benz Aerospace official said management of Dornier Luftfahrt was transferred to Fairchild Wednesday. No price was announced, the official told The DAILY.

Staff
Continental's traffic rose 4.2% in May to 3.5 billion revenue passenger miles from 3.3 billion in May 1995, while capacity rose 1% to 5.1 billion available seat miles. The load factor rose 2.1 points to 67.9%, its highest May load factor ever. For the year to date, traffic was up 2.3%, ASMs fell 6.1% and the load factor was up 5.6 points. May 96 May 95 5 Mths 96 5 Mths 95 RPMs 3,459,293,000 3,320,178,000 16,660,445,000 16,283,362,000

Staff
Alaska Airlines' May traffic shot up 22.3% to 825 million revenue passenger miles from 675 million RPMs in May 1995, and capacity grew 12.4% to 1.27 billion available seat miles. The load factor was 65%, a 5.3 percentage point increase from May 1995 levels. The airline flew 995,000 passengers last month, 26.1% more than in May last year. For the first five months, traffic roe 19.2% on 10.4% more capacity, boosting the load factor 4.6 points to 62.5%. The airline carried 4.52 million passengers during the period, up 23.4%.

Staff
Pan Am-The New Airline has chosen New York-based Dom Camera Associates to place its advertising. Pan Am, anticipating a July startup to New York, Los Angeles, San Francisco and Miami, has an estimated initial advertising budget of $5 million. The original Pan Am was one of the company's first major accounts.

Staff
Dornier Luftfahrt shareholder tally to move 80% of the company into a joint-venture company called Fairchild Aircraft Holding was approved by a vote of 968,601 to 1.5, according to European press reports (related story, P. RA3). By taking the joint-venture route instead of an outright sale to Fairchild Aircraft, Daimler-Benz Aerospace (DASA) sidestepped a veto by some members of the Dornier family on a technicality.