_Aerospace Daily

Staff
FAA safety and inspection oversight top the DOT Inspector General's list of the department's most significant management problems, IG Mary Schiavo told the House Appropriations transportation subcommittee yesterday. Second is the growing cost of the air traffic control system. Other problem areas within FAA are acquisition and procurement integrity, grants management, logistics management and environmental compliance.

Staff
Great Lakes Aviation, a United Express affiliate, flew 18.9 million revenue passenger miles in December, an 11.5% increase from December 1993. Capacity increased 13.8% to nearly 41 million available seat miles from 36 million; load factor dropped one percentage point to 46.1% from 47.1%, and passenger enplanements rose 8.1% to 59.1 million from 54.7 million.

Staff
The New Congress Note: The following listing combines data released in recent weeks about membership of committees of the new Congress of interest to the aerospace and defense communities. Membership of subcommittees of the Senate Armed Services panel was expected to be released soon. House National Security Committee (202-225-4151) Republicans Democrats ----------- --------- Floyd Spence (S.C.), chairman Ronald Dellums (Calif.),

Staff
DIAGNOSTIC/RETRIEVAL SYSTEMS INC., Oakland, N.J., said its Technology Applications and Service Co. (TAS) has received a U.S. Navy contract with a ceiling value of $9.8 million for additional field engineering, integrated logistics support and depot repair services for the AN/SPS-40 series air search radars. It said initial funding on the contract should be released in 60 days. TAS has provided technical services for these radar systems since 1983.

Staff
Fitch put AAR Corp.'s senior debt and commercial paper on FitchAlert with negative implications because of weakening cash flows and reduced debtholder protection measures. The action affects $65 million of BBB rated 9.5% senior notes due in 2001; $50 million of BBB rated 7.25% senior notes due 2003, and the F-2 rated commercial paper program. No commercial paper is outstanding at this time.

Staff
SITA has completed the implementation of the Interactive Sell functionality in its Gabriel airline reservations system and said Luxair's use of the capability is a "significant milestone" in Gabriel's evolution. Interactive Sell, available to 95 Gabriel-hosted airlines, provides real- time system updates to seat inventory and passenger name records, both in Gabriel and in the Amadeus computer reservations system, at the time of sale.

Staff
The U.S. Air Force "ought to buy" Non-Development Airlift Aircraft (NDAA) to flesh out its mobility capability while at the same time avoiding re-engineering and other infrastructure costs, AF Chief of Staff Gen. Ronald Fogleman said yesterday. The AF recently finished a mobility requirements study, which revalidated the need for 120 "C-17 equivalent" aircraft, and is expected to release a second draft request for proposals for NDAA within the next two weeks, according to service sources.

Staff
The EuroFLAG consortium working on the Future Large Airlifter has set up a special subcommittee to press members' governments for an early launch decision and the money to pay for it. An Air Vice-Marshal will be Britain's delegate to the committee, which will include a top-level defense official from each partner country. The prize is access to a market for up to 700 FLAs in a 30-year production cycle worth more than $20 billion to the U.K. alone.

Staff
Swissair and parent Swissair Group will report small profits for 1994 despite "sizable reductions" in revenue caused by adverse currency exchange rate movements, the company's management said yesterday. The announcement, which came just days after Swissair revised downward a September prediction that its 1994 earnings would be considerably better than 1993's profit of 59 million francs, ended weeks of speculation that Swissair actually lost money last year.

Staff
Disagreeing with the General Accounting Office, top Pentagon commanders concluded this week that U.S. force levels and capabilities are "sufficient" to support the President's national security strategy and the two-multiple regional contingencies (MRC) strategy of the Bottom-Up Review. The commanders-in-chief of the unified commands and the Joint Chiefs of Staff, meeting this week in Washington, said their decision is supported by a variety of analyses, computer-driven modeling efforts, and seminar war games.

Staff
The U.S. Air Force is looking for a "son of TSSAM" to replace the canceled AGM-137 Tri-Service Stand-off Attack Missile in the mid-to-long term, AF Chief of Staff Gen. Ronald Fogleman said yesterday. The TSSAM replacement "may come from many things," Fogleman told an American Defense Preparedness Association audience in Arlington, Va. He noted that a recent U.K. competition for the Conventionally Armed Stand-off Missile (CASOM) "has motivated" industry to come up with innovative solutions for stand-off, precision-guided weapons.

Staff
Universal Pilot Application Service (UPAS) said four companies have agreed to become new subscribers to its database for hiring pilots. TWA, World Airways, Flight Safety International and the International Air Services Company will use the UPAS system, a database of pilot applications that can be updated by applicants or accessed by subscribers through the CompuServe network. TWA and World Airways are advising pilot applicants not to contact them but to go directly to UPAS. The service is a wholly owned subsidiary of the Air Line Pilots Association.

Staff
Former Secretary of State Henry A. Kissinger told the Senate Armed Services Committee yesterday that U.S. troops should be used abroad only if there is "a demonstrable threat to American security almost immediately" or in the future. By this standard, he testified, the U.S. should not have become involved in Haiti or Somalia, but was justified in going to war with Iraq. Failure to resist Iraq's invasion of Kuwait would have "meant a bigger threat down the road," he said.

Staff
House Appropriations Committee Chairman Robert L. Livingston (R-La.) yesterday indicated the Clinton Administration's fiscal 1996 defense request will call for $258.7 billion in budget authority and $260.7 billion in outlays.

Staff
FAA Administrator David Hinson, convinced that it is crucial for FAA to retain its leadership status among the world's aviation agencies, is working with the International Civil Aviation Organization to become the world's database.As a data repository of sorts, FAA would be used by other countries in a reciprocal fashion, he told the American Bar Association yesterday.

Staff
Delta Connection carriers are boosting operations across the country in shorter-haul markets that will be vacated by Delta, or in some cases, complementing Delta's service as the major partner realigns its system and focuses on longer-haul flying (DAILY, Feb. 2). Atlantic Southeast, Business Express, Comair and SkyWest will implement some of their new schedules May 1, with the most notable changes coming from greatly expanded SkyWest service at Salt Lake City, and replacement of Delta by Comair in Orlando, Fla., markets.

Staff
U.S. National Carriers Advertising Expenses Third Quarter 1994 % Of Total Passenger Systemwide Revenue Alaska $ 2,698,000 1.01 Aloha 1,693,984 3.39 American Trans Air 1,729,430 2.89 Carnival 595,474 1.73

Staff
Air Operations of Europe AB is seeking authority to operate charter service between one or more points in Sweden, Denmark, and Norway and the U.S. The carrier, based in Sweden, plans to begin two weekly roundtrip flights to the U.S. from Oslo, Norway, using L-1011 aircraft. The initial destinations would be Miami and Orlando. (Dockets 50102&50103)

Staff
Sabena flew 7.5 billion revenue passenger kilometers in 1994, an increase of 15.6% over 1993. The airline's passenger volume rose 16.7% to 4.26 million. Cargo traffic was up 5.3% to 422.1 million freight ton kilometers. In December, Sabena's passenger traffic increased 23.2% from the previous year to 616.5 million RPKs, and its passenger enplanements grew 18.9% to 333,486. Cargo traffic for the month increased 9.1% to 37.6 million FTKs.

Staff
Skyways of Sweden is shopping for Fokker 50 or ATR-72 aircraft rather than exchanging two to four of its Saab 340s for Saab 2000s, which it considers too expensive. Skyways, whose traffic on some of its routes is rising, is seeking higher-capacity aircraft - at least 50 seats - more than its 340s, which seat 35. Skyways Managing Director Jan Palmer said the 56-seat 2000 model, which was offered by Saab in a trade-up arrangement for the 340s, could not be operated profitably on its routes.

Staff
Honolulu-based Mahalo Air Feb. 1 increased its inter-Hawaiian island service 50% to sixty-six daily flights. The ATR-42 operator, which began operations Nov. 1 on its own certificate between Honolulu and Kahului, has since started service to Kona, Molokai, Lihue and Lanai. The regional, which earlier had performed some operations under a bulk sales arrangement with Empire Airlines, now operates six ATR-42s.

Staff
Naval Research Laboratory is looking for partners for 67 research projects whose funding may range from $100,000 to $2 million. NRL, Washington, D.C., said this week that the projects are included in its fiscal year 1995 "broad agency announcement" (BAA), and that it welcomes proposals from a variety of sources. Proposals will be accepted until Nov. 30, 1995. It said, however, that "early submission of proposals is highly recommended." In fiscal '94, NRL awarded over $85 million under BAA procedures.

Staff
"Service Excellence Training," a workshop-style training program covering passenger service procedures and interpersonal development, will be added to Executive Jet Aviation flightcrew training by the developer of the program, FlightSafety International. FSI will conduct the course initially at Cessna Citation/Wichita, Toledo and Wilmington, Del., and will expand it to all of its centers. Executive Jet Aviation has more than 60 aircraft and operates the NetJets shared-ownership program.

Staff
A string of deferrals and cancellations last week will force Boeing to cut jetliner production to 16.5 aircraft-total-per month by December, a move that will leave 7,000 Boeing employees without jobs by the end of 1995. Production rates on 737s and 767s will fall, while 747 rates will rise by next year. Some 6,500 workers in Washington state will lose their jobs, along with 500 in Wichita, Kan., and 800 in Philadelphia. But the company will actually add 800 jobs elsewhere in the company, thanks to its new role as Space Station prime contractor.

Staff
USAir Express affiliate CCAIR's capacity rose 18.4% in January to 25.8 million available seat miles from 21.8 million. Traffic increased 3.9% to 9.8 million revenue passenger miles. January 1995 January 1994 Rev. Passenger Miles 9,815,450 9,443,300 Available Seat Miles 25,766,280 21,759,267 Load Factor (%) 38.1 43.4 Passengers 56,967 55,649