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Robert L. Crandall has departed American Airlines after many years as chief executive officer, but the airline will maintain many of his strategies under his successor, Donald J. Carty. Carty worked under Crandall for 18 years and is very familiar with his management style.

The possibility of the six major U.S. airlines forming alliances has legislators, business groups, middle-sized cities, and smaller airlines worried over the competitive consequences. Critics see the alliances as threats to competition created by deregulation.

The multirole combat aircraft program flight testing is nearing completion for the Swedish JAS 39 Gripen. P11 software being used gives the pilot greater control of the aircraft, eliminating lag time and improving the flight envelope.

The Eurofighter 2000 has entered the prototype testing stage, but the four European partners of the program are debating the number of aircraft that will be built and their cost. Testing will take 4,500 hours and involve seven prototypes and five production-standard versions.

Development of the European Fighter Aircraft (EFA) has reached a snag because Germany has refused to allocate any more production funds. The British, Italian, and Spanish partners want to go ahead with the original plan, but Germany wants to produce a less expensive EFA.

Several airlines have declined to enter long-term partnerships, preferring instead to form short-term alliances to fulfill strategic goals. These goals include adjacent gates for interconnecting flights, joint marketing and frequent flier compatibility.

Airline partnerships are being examined by smaller carriers, European Union regulators and consumer groups. They view the partnerships as possibly anti-competitive, promoting fare hikes, doubled annual profits, and traffic reduction for non-partnered carriers.

Reno Air has grown from the regional airline that started operations in 1992 with a single aircraft into a carrier that operates 30 aircraft and offers 208 flights a day to 24 cities. The airline has kept fares down while offering passengers some full-service perks.

Managers of Emirates, the airline of the United Arab Emirates, plan to slow their rapid expansion and consolidate their network. Growth has been double digit for a number of years, but for 1997 new destinations will just number a couple and the fleet will grow by two.

Emirates new maintenance facility will allow the airlines to solicit third party maintenance contracts for the first time. The new facility, still under construction at Dubai International Airport, United Arab Emirates, will accomodate three widebody aircraft in air conditioned hangers.

Efforts are underway by regional carriers and the airports that they serve to improve facilities and amenities offered to their passengers. The regionals plan to introduce such things as weatherproof walkways for passengers boarding turboprop aircraft.

Regional airlines are increasing the number of jets they are acquiring to complement their current fleet of turboprop aircraft. The shift to small jets is response to their greater range, higher speeds and customer preference.

The number of passengers carried by regional airlines in 1996 rose by 4.7 million over 1995 to 61.9 million. This growth have prompted many regionals to expand their routes and buy new aircraft as they compete with the major airlines to provide vital air cervices to several US cities.

The spate of airline accidents has shifted the focus of the aviation industry on safety. With over 12,000 commercial aircraft throughout the world operating some 15.4 million flights in 1995, flying had become safer. However, such accidents as the ValuJet and Delta Air Lines crashes have prompted the industry to find new ways to improve safety further.

Embraer S.A. announced at the 1996 Farnborough Air Show a $375-million order by Continental Express Inc. for 25 EMB-145 regional twin jet transports. Also, Bombardier Regional Aircraft Div. reported a three-plane order from Brit Air and Aero International Regional discussed AIR-70 development plans.

The redesign at the Washington National Airport in Washington, DC, will be better not bigger. There will be the same amount of gates but the airport will be more passenger-friendly as well as an artistic accomplishment.

British Airways has been able to become one of the most profitable airlines in the world through a simplemindedness attention to cut costs, as well as products renewal and a continued investment in new aircraft. The airline also has implemented aggressive marketing and pursued careful expansion and in the process, shed its old image as unprofitable, inefficient and not consumer-friendly. British Airways, unlike most of its European competitors, has been consistently profitable since FY 1981-82.

The domestic airline industry is expected to post over $2 billion in net earnings during 1995, marking the best yearly performance the industry has ever experienced collectively. The achievement marks a departure from the $13 billion the airlines lost between 1990 and 1994, and is more than the previous $1.7 billion record the industry posted in 1988. The remarkable turnaround has been attributed to the trimming of unprofitable routes, stable fares and better cost controls.

Production has begun on Bombardier's 70-seat Dash 8-400 turboprop transport, for which the Canadian aircraft maker has firm orders from Great China Airlines and Air Canada. A 70-seat version of the Canadair Regional Jet is in the works for 1996.

Airbus Industrie predicts that Europe will represent 26% of the world aircraft market between 1994 and 2011, with jet aircraft orders totalling around 3,093. Aircraft in the 100-210 seat category will account for about 2/3 of expected orders.

UK government support of competition has lead the industry to be the most competitive in the European Community. British Airways still carries over 75% of international passengers from the UK, but the number of airlines has grown.

Rolls-Royce is working on a 90,000-lb-thrust version of its Trent 800 engine for Boeing 777 aircraft. The basic 800 series will be available in ratings up to 84,000 lb thrust and will be flight-tested beginning in May, 1995.

European airlines should be fewer and more privatized by the end of the decade as the industry struggles to get through the recession. There should be significant cost cutting as deregulation and liberalization will force them to be more competitive.

British Aerospace and Taiwan Aerospace are planning a joint venture to run British Aerospace's regional aircraft program, which has been suffering losses from a shrinking market. The move will eliminate about 3,000 jobs.

The recession of the early 1990's and the decline in defense budgets because of the end of the Cold War have forced many aerospace industry firms to scale back their exhibition plans at the 1992 Farnborough show. Competition will be keen for the contracts under programs that survive budget cuts.

A Saab 2000 prototype underwent three successful test flights under varying conditions. Three prototypes will be used during the test program, which is expected to result in certification in the US and Europe by the second quarter of 1993.

Flight testing is underway for British Aerospace's (BA) new Jetstream 41 aircraft. The 29-seat turboprop is intended as a low-cost entry into the regional transport market.

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