Japanese Transport Minister Seiji Maehara moved to calm nerves over the fate of Japan Airlines, saying at a news conference that he believes JAL can revive itself on its own but that "the government is ready to step in" and offer its support for the loss-making carrier. He told reporters he wanted to quell "excessive anxiety" about the airline, which is restructuring under government supervision after receiving a state-backed loan ( ATWOnline, Sept. 29).
British Airways CEO Willie Walsh described the carrier's new all-business-class A318 New York JFK-London City service, launched Tuesday, as a "vote of confidence in the future." He told ATWOnline, "It's a bold step. We are putting down a marker that we are confident about the future." He said the service will be profitable if it achieves a 70% load factor.
The worst economy in at least 40 years remains the biggest challenge for US airports and they are doing all they can to retain air service as airlines cut back on flights, says Airports Council International-North America President Greg Principato. "Airports are cutting their budgets to make it possible for airlines to serve their communities," he tells ATW's Airports Today, adding that they have been forced to furlough or lay off employees as carriers have reduced service.
Amsterdam Schiphol fees will remain stable through April 1, 2010, despite the current economic downturn. "By keeping charges at the current level, AMS aims to help airlines maintain and expand their network of destinations to and from AMS," a spokesperson explained. In doing so, Schiphol will accept a lower return on aviation activities than is permitted based on its Aviation Act. The decision not to increase charges at this moment is based on a commercial consideration, which is feasible from a financial point of view.
By year end the City of New Orleans plans to issue a request for qualifications from organizations interested in leasing its Louis Armstrong International Airport and downtown heliport. It expects to ask for bids next spring and send a final application for privatization to FAA by the fall of 2010, a spokesperson for Armstrong International tells this newsletter.
Greater Toronto Airports Authority announced that landing fees and terminal charges at Toronto Pearson will each be reduced by 10% effective Jan. 1. GTAA said landing fees have been cumulatively lowered by 13.1% since 2007 while terminal fees have been cut by 15% over the same period. "This fee reduction is welcome because it helps us control costs in this challenging economic environment," Air Canada Executive VP and COO Duncan Dee said in a statement.
Almost half the passengers at Frankfurt International Airport are there to change flights, making it the leading connecting airport in Europe, Fraport AG CEO Stefan Schulte told ATW's Airports Today. "Compared to airports like Paris CDG or London Heathrow which have a big city behind [to generate traffic], FRA has developed itself to be a transfer airport," he said.
Airports have to focus on customer service along with revenue diversification and future growth if they hope to remain competitive at a time when airlines are reducing capacity, Airports Council International DG Angela Gittens told representatives at the Airport Business and Trinity Forum in Macau in late September.
The unbundled fare is the airlines' new best friend, enabling them to boost revenues through fees for checked bags, seat assignments and other items that used to be included in the fare. And while the airlines know that the fees can be a lifeline -- the industry collected $669.6 million in baggage fees in the second quarter, according to the Bureau of Transportation Statistics -- they have difficulty pinpointing which flights are ancillary revenue generators.
Amadeus told its German subscribers it will begin partially compensating them for payments they make to Lufthansa under the carrier's Preferred Fares program on Jan. 1. Lufthansa's PFP, which went into effect in July 2008, imposes a €4.90 per-segment surcharge for Germany-originating flights booked through Amadeus. Lufthansa reached agreements for lower distribution costs with Sabre and Travelport that exempt their subscribers from the surcharge, but Amadeus, the largest GDS player in the German market, did not.
No small irony attaches to the fact that as the World Trade Organization was releasing its preliminary findings on its investigation into European state aid for Airbus, China was unveiling detailed plans for its proposed C919, the state-developed 150-seat transport with which it hopes to challenge Airbus and Boeing by the middle of the next decade.
Dubai Airports is projecting a 13.6% growth in passengers in 2010. Total passengers are expected to reach 40.5 million by the end of 2009 and top 46 million in 2010. An improving economy, strong expansion by Emirates Airline, the emergence of LCC flydubai and open skies policies are driving the growth, according to Dubai Airports CEO Paul Griffiths.
Hanoi's Noi Ban International will get two new runways and other new facilities and its existing space will be renovated to handle 25 million annual passengers and 260,000 tons of cargo by 2020, the Vietnamese government said. The airport will be upgraded to A380 standards. Tan Son Nhut International in Ho Chi Min City will be expanded and improved to handle 23.5 million passengers and 600,000 tons of cargo a year by 2015. Improvements also will be made to the airports serving Cam Rahn, Chu Lai, Cat Bi, Danang and Phu Bai.
Vietnam Airlines expressed concern about 787 production delays and is considering cancelling some of its 16 orders. VN has eight 787s on order while its leasing affiliate, Vietnam Aircraft Leasing Co., has an additional eight. President Pham Ngoc Minh told Reuters that the airline is "not happy about the constant delays. We expected to get our planes in 2009, then 2010, and now nobody can confirm to us which is the exact delivery date. I can be patient but it gives us a lot of headaches."
The European Commission won't formally announce a baseline aviation sector CO2 emissions standard until mid-2010, postponing the announcement for the second time, Bloomberg reported.
Allegiant Air will launch twice-weekly service between Wichita and Phoenix Mesa Nov. 20 aboard a 150-seat MD-80. Air Astana will launch weekly service between Almaty and Kuala Lumpur Oct. 31 aboard a 767.
New production issues related to wiring present yet another challenge to the 787 program and threaten further delivery delays, according to a new report from Bernstein Research, which also claimed that the early stage of the A350 program is behind schedule. According to the analysts, Boeing is moving to a new model for wiring beginning with the 13th 787, while airplanes 7 through 12 are being rewired. ATWOnline confirmed the new wiring standard with a Boeing source. Dubbed "Net Change 5," it is aimed at reducing weight and improving maintainability.
