Last year at this time, the FAA was predicting that 1 billion passengers would board U.S. airlines in fiscal 2021, two years sooner than it had predicted just one year earlier. The reasons: airline traffic strengthened more than expected in the latter part of 2010, and the economic forecast for the next few years had improved in terms of economic expansion and the decline in unemployment. U.S. airline traffic as measured by revenue passenger miles would more than double from 2011 to 2031, the FAA predicted.
The FCC is extending to March 16 the comment period on a recent notice that LightSquared has not met the conditions set by the agency to begin operational deployment of a high-powered terrestrial 4G voice and data network in the L band. Citing concerns that the network will pose aviation safety risks by interfering with GPS units, the FCC last month indefinitely suspended LightSquared’s conditional waiver to operate the network in bands adjacent to those used by GPS.
The U.S. government is retreating from the free market principles that guided it during the first three decades of airline deregulation and is trying instead to “micromanage” the industry, International Air Transport Association (IATA) Director General and CEO Tony Tyler complained yesterday in Washington. Speaking at the FAA’s Aviation Forecast Conference, Tyler bashed the Transportation Department (DOT) for new and proposed regulations and the Obama administration for proposing new or increased aviation taxes and fees in its 2013 budget.
Click here to view the pdf Fuel Watch: Global Jet Fuel Prices (midpoint) As of March 7, 2012• compared with previous week and previous year cts/gal prev. week prev.
Air France-KLM expects its financial performance in the first half of 2012 to deteriorate further, although the carrier’s leadership expects to see the first effects of its recently launched 2015 transformation program. The company posted a €353 million operating loss and a €809 million net loss in its financial year 2011. Sales were up 4.5% ($468 million) to €24.3 billion. Chairman Jean-Cyril Spinetta says that 2011 was a “tough year” for the group, given the high fuel price and political unrest in many of its key markets.
Canada’s labor minister, as expected, has blocked planned work stoppages at Air Canada after the carrier was hit with a strike warning by its mechanics, baggage handlers and cargo agents and the collapse of talks with its pilots union. The minister, Lisa Raitt, has referred the two issues to the Canada Industrial Relations Board, a move employed last year during previous employee disputes at the airline to stop or suspend industrial action.
Malaysia Airlines (MAS) expects to start Airbus A380 passenger operations on July 1, initially focusing on London Heathrow International Airport service. The first two A380s will serve Kuala Lumpur-London Heathrow—the second is expected to join the fleet in late August—before service expands to Sydney with the third aircraft. MAS is acquiring six A380s and will become the eighth operator of the aircraft type this year. The London service begins with three A380 flights per week, but will shift to daily service once the second aircraft is fielded.
The Bahamas government in the next few days expects to finalize a deal that will expand state-owned Bahamasair’s network by five U.S. destinations. If the accord is successful, Bahamasair will assume responsibility for five routes currently contracted to Vision Airlines, a U.S. charter carrier that last year launched scheduled operations. That contract, however, has drastically underperformed since it started in early November, with traffic barely filling a third of the available seats.
Orient Thai Airlines has decided against moving back to Bangkok Don Mueang Airport. The carrier on its website says that domestic operations will remain at Bangkok Suvarnabhumi Airport, where they moved last October, when the airline was forced to vacate Don Mueang due to flooding.
US Airways is attempting to entrench its already commanding position at Ronald Reagan Washington National Airport by converting temporary rights on two daily flights to Jackson, Miss., into permanent slot allocations.
AviancaTaca, which is soon to become a full member of Star Alliance, and SkyTeam founding member Aeromexico have unveiled a commercial agreement that signals a major defensive move against Oneworld as it prepares to add a Latin American giant to its roster.
Following a spate of orders for CFM56- and Leap-powered Airbus and Boeing aircraft, CFM International now predicts combined production of current and next-generation engines will soar to 1,800 per year by 2018.
Air Canada’s worsening relationship with its unionized workers has prompted yet more scheduled strikes—this time by the carrier's mechanics, baggage handlers and cargo agents—but the federal government has again indicated it will intervene to stop any service disruptions.
Saab Sensis has won a contract to supply a wide-area multilateration (WAM) system to provide surveillance around one of the world’s tallest towers, under construction in Seoul.
Leading aerospace manufacturers are preparing to bid for a major air traffic control overhaul being planned by Australian civil and military aviation officials. The program is unusual in that it will replace the backbone ATC systems, both terminal and en route, for Airservices Australia and the Royal Australian Air Force (RAAF). This will enable harmonization across the country’s main ATC automation platforms. The contract is expected to be worth more than $300 million, according to industry sources.
Thales expects a negative book-to-bill ratio this year, due to a decrease in defense orders and insufficient growth in commercial aerospace to make up for the shortfall. There are “many uncertainties,” with continued turmoil in the Middle East and Europe’s economic crisis showing no signs of letting up, says Chairman and CEO Luc Vigneron. Last year, order intake in France mitigated cuts in other parts of Europe, but this year’s presidential election in France will add variables, he notes.
Cobham is evaluating several acquisition possibilities with an eye on businesses that could strengthen its commercial operations. “We have been very, very active on two or three acquisition possibilities,” CFO Warren Tucker says in releasing 2011 results. The deals are more likely to be in the commercial sector, although strengthening the aerospace and defense company's security and surveillance portfolio also is in the cards, he adds.
The World Trade Organization’s report on DS 353, the EU’s case against the U.S. on large-aircraft subsidies, is expected to be made public on March 12, at which point both companies involved—Boeing and Airbus—will evaluate its contents. The body’s ruling was transmitted to the two governments on Feb. 29. Industry sources had expected the public release of the report by the end of March. If history is a guide, there will be elements of the report that both sides will claim as victory. After the report is made public, the U.S.
AMR Corp. yesterday shifted tactics on the defined benefit pension plans held by its American Airlines staff, proposing to freeze, rather than terminate, most of its obligations with unionized employees.
