Topics: ExpressJet/Delta, FAA/SkyWest, Lufthansa/Bombardier, Embraer/Mandarin/Egyptair, Pinnacle, Cessna
XJT’s Delta Op Includes DEN, PHX & BOI
Delta Air Lines (DAL) will add 21 new daily flights at Los Angeles International Airport, which it plans to turn into a future hub for service to Asia and Latin America. Beginning with the July 1 expansion, Delta will have up to 100 daily departures to 48 cities from Los Angeles. Express Jet (XJT) will connect Los Angeles to Denver, Phoenix and Boise using its 50-seat ERJ 145s. The regional operator is responsible for pricing and revenue management on the flights and maintenance of the planes. The arrangement limits Delta's risks on the new routes. XJT said it was working on such a deal during its recent first quarter investor’s call. Related Story

FAA Investigates Latest LAX Runway Incursion
A Virgin Atlantic Airways jumbo jet missed a SkyWest (SKYW) Brasilia by as little as 50 feet in the latest runway incursion at Los Angeles, the site of many other such incidents. Runway incursions remain a major problem for regionals. Related Story  The incident occurred on Sunday, May 13 and, according to press reports, the fault may lie with SkyWest which purportedly made a wrong turn, violating a safety zone separating the outer runway from taxiways on the north side of the airport. A recreation of the incident revealed the arriving jet’s wing may have come as close as 21 feet from the arriving turboprop. SkyWest is part of the investigation.
The Brasilia landed on the outer runway failed to follow ATC instructions to turn left on taxiway Zulu. Thirty-three mile and hour winds slowed the actions of the Brasilia which was being repositioned from Redding. Only the crew was aboard. ATC instructed the aircraft to go faster but watched it turn onto taxiway Yankee instead of Zulu. Following corrective instructions from ATC, the SkyWest crew was exiting the safety zone when the Virgin Atlantic A340 rumbled by.

Lufthansa Confirms BBD Order
After announcing an order for 15 Bombardier (BBD) CRJ900 regional jets and 30 Embraer (ERJ) 190s in April, Lufthansa’s Supervisory Board signed a contract for the $584 million Bombardier order last week, which included taking purchase rights on an additional 15 aircraft. Related story  The order increases to 109 the number of firm orders placed by Lufthansa and its regional partners for Bombardier CRJ aircraft. These orders include 62 50-seat CRJ100 and CRJ200, 20 70-seat CRJ700 and 27 90-seat CRJ900 aircraft. One hundred and ninety-six CRJ900 aircraft have now been ordered by, or are in service with

First Embraer 190 Jet Is Delivered to Mandarin Airlines
Embraer (ERJ) delivered its first ERJ 190 jet to Taipei-based Mandarin Airlines. The company has acquired eight E-Jets as the core aircraft of its fleet, especially for domestic and short-haul intra-regional markets. Mandarin's E-Jets will be operated under leases with GE Commercial Aviation Services (GECAS) and will come from the existing GECAS backlog. The total order includes deliveries of another seven in both 190 and ERJ 195 configurations. The first 190 delivered was in a single-class configuration consisting of 104 seats with a 31-inch pitch (79 cm). In addition to replacing its older fleet of jets, the carrier will use the new-generation E-Jets to develop markets throughout Asia.
Along with its increasing Asia-Pacific sales, Embraer is significantly expanding its local product support network by establishing a spare parts logistics center and a full flight simulator in the region. Plans include new trade agreements and the involvement of industry service providers, which will allow the company to offer outstanding training and replacement parts for the growing number of customers.

First Embraer 170 Jet Is Delivered to EgyptAir Express
Embraer delivered the first of six ERJ 170s to EgyptAir Express, the new subsidiary of the Egyptian flag carrier, EgyptAir. This aircraft is the first E-Jet to operate in that country. EgyptAir selected the ERJ 170 last September and optioned an addition six. The E-Jets will serve as the backbone of the EgyptAir Express fleet, flying to primary and secondary destinations within its domestic and regional markets.
Embraer and EgyptAir are studying the possibility of establishing an authorized service center for the E-Jets in the region, to be run by EgyptAir M&E.
On March 31, 2007, the E-Jets family order book had logged 630 firm orders and 558 options, totaling 1,118 aircraft to 32 customers in 22 countries.

Pinnacle Airlines Corp. Announces $30 Million Share Repurchase Program
Pinnacle Airlines Corp. (PNCL) initiated a new share repurchase program to acquire up to $30 million of the company's outstanding common stock. Based on that day's market closing price of $16.72, this represents approximately 1.8 million shares of common stock.
"A share repurchase program will complement Pinnacle's recently announced growth initiatives," said Phil Trenary, Pinnacle's President and Chief Executive Officer. "Our strong balance sheet and liquidity provide us the opportunity to invest in our new partnerships with Continental Airlines (CAL) and Delta Air Lines (DAL), while also pursuing repurchases of our common stock. The combination of earnings growth and the commitment to return excess capital to shareholders provides a strong foundation for increasing shareholder value over the long-term."
Pinnacle has approximately 22.2 million shares of common stock outstanding.
Pinnacle holds $42.5 million face amount of unsecured claims against Northwest Airlines (NWACQ), and is evaluating options to monetize this non-core asset. Pinnacle's board of directors may increase the amount authorized under the share repurchase program in future periods, depending on the company's working capital needs and its ability to monetize its remaining unsecured claims against Northwest.

Pinnacle Appoints Three
Pinnacle named Lawrence Grant to the position of vice president, purchasing and contract management; David Hinton as vice president and controller and Ron Kay as vice president, finance and treasurer.
In this new capacity, Grant will be responsible for coordinating major asset purchases and assisting each of Pinnacle's operating subsidiaries in purchase contract negotiations. Grant has been a key member of Pinnacle's management team since 2003. Prior to joining Pinnacle, Grant held a number of management positions at Northwest Airlines, including senior manager, contracts and materials.
Hinton will be responsible for all aspects of accounting and financial reporting for the corporation and its subsidiaries. Hinton has held a number of positions in the accounting department since joining Pinnacle in 2002. Before joining Pinnacle, Hinton worked for PricewaterhouseCoopers, LLP. Hinton is a Certified Public Accountant.
Kay will be responsible for corporate development, financial analysis, cash management, corporate finance, and other treasury functions. Kay has served as Pinnacle's treasury director for the past two years. Prior to joining Pinnacle, Kay served in various positions of increasing responsibility at Continental Airlines, Inc. Kay is a Certified Public Accountant and Chartered Financial Analyst.

Cessna Announces ProTech Support for Citation Mustang Customers
Cessna Aircraft Company launched ProTech – a comprehensive maintenance program for the Citation Mustang. Under the program, customers have the option to pay a monthly fee that covers all labor costs for regular maintenance based on an annual average amount. If labor exceeds the projected amount, ProTech covers any additional costs. The ProTech program works in conjunction with Cessna’s ProParts program, both part of the company’s comprehensive Citation ProAdvantage program, which offers customers a wide range of support and maintenance options.
Cessna also recently launched Team Mustang, the company’s customer support program for the Mustang, similar to programs for other Citation models. Team Mustang brings together experts from various disciplines within Customer Service for a more focused, immediate response to customer maintenance issues.
The customers can select one of three operational tiers based on projected use of the aircraft. Maintenance can be conducted at any of the 10 Cessna-owned Citation Service Centers or participating authorized facilities around the world.
“This new program aids our customers in planning and budgeting for maintenance costs,” said Senior Vice President of Customer Service Mark Paolucci. “Adding ProTech to an existing ProParts programs also increases the resale value for the aircraft as the program is transferable.”