Airlines

In a dramatic turnaround from last year, Continental Airlines was named the best carrier of the nine industry majors by frequent U.S. domestic travelers for flights of more than 500 miles, according to survey results released Tuesday. Northwest Airlines heads the list for shorter flights. The annual survey by marketing information firm J.D.

Trans World Airlines Inc., which came out of bankruptcy six months ago, said Monday that it will acquire 20 new Boeing 757-200 aircraft in a $1-billion deal. The order is the latest sign of a turnaround at TWA, which has been through two bankruptcies this decade. Last week, TWA said it planned to hire a total of 2,100 pilots, reservation sales agents and flight attendants this year.

President Clinton is flying to Japan next week to discuss, among other things, how often U.S. airlines can fly to Japan--and his visit already has spawned one of the most heated disputes within the airline industry in recent years. At issue is whether Clinton, who meets with Japanese Prime Minister Ryutaro Hashimoto on Tuesday, should try to reopen a 44-year-old aviation pact between the countries. The agreement restricts how often U.S.

For a second consecutive New Year's Day, the 10% federal tax on commercial airline tickets is lapsing. Unlike last year, though, travelers won't benefit. The carriers, led by Continental Airlines, already have announced fare increases equal to the anticipated tax cut on 14- and 21-day advanced-purchase tickets. "It's pretty clear they're going to keep the selling price the same and pocket what used to be the tax," said Ed Perkins, editor of the San Francisco-based Consumer Reports Travel Letter.

America West Airlines plans to install an overnight maintenance operation at Orange County's John Wayne Airport to help boost the carrier's efficiency, an airline official said Friday. The Phoenix-based carrier plans to station six or seven mechanics and a supervisor in Orange County to perform regular maintenance on three America West planes that routinely sit overnight at John Wayne, which has an 11 p.m. curfew.

A pair of computer problems in a two-hour span at a regional air traffic control center in Jacksonville, Fla., grounded jets along the East Coast, delaying some flights by nearly an hour. The center was without radar about an hour because technicians failed to restart the flight data computers after routine maintenance, said Bob Ropelewski, a Federal Aviation Administration spokesman. The radar loss caused delays in Tampa and Orlando.

Secretary of Transportation Federico Pena urged Congress on Tuesday to extend the 10% airline ticket tax to save losses of $1 billion from the Federal Aviation Administration's trust fund. The tax is to expire on Dec. 31. Pena said the loss in tax revenue will cripple airport safety and development programs. He said the nation urgently needs to renew the tax and establish a long-term system to finance the agency in "this time of dynamic aviation growth."

Passengers on Swissair's long-haul jets later this year will get a chance to do some casino-style gambling during their flights. Las Vegas-based Interactive Flight Technologies has completed a contract with Swissair for the installation of its In-Flight Entertainment Network on all of the airline's long-haul jets. The first plane is scheduled to be equipped with the system, which will cost between $70 million and $80 million, in October and to be in flight by November.

Commercial airlines operating out of John Wayne Airport may soon be paying lower terminal rents. In a request submitted to the Orange County Board of Supervisors, airport Director O.B. Schooley has asked that rental rates for some portions of the terminal be reduced as much as 13.2% to reflect greater operating efficiencies at the airport, as well as savings from the early retirement of $3.8 million in debt. "We're passing cost savings along to the tenants," said John Wayne spokeswoman Pat Ware.

A federal judge has cleared the way for a jury to decide whether the city can impose higher landing fees at Los Angeles International Airport. Seventeen airlines, which sued the Department of Airports over the $8.7 million the city has charged in fees and transferred to its general account, wanted federal Judge William Keller to rule in their behalf without a trial. Keller found Thursday that $2.