Aviation Daily

Oliver Wyman
Click here to view the pdf Association of Asia Pacific Airlines Traffic, June 2011 June June % 2011 2010 Change Change

Andrew Compart
Vision Airlines is dramatically scaling back its services to Northwest Florida Regional Airport, at least for this fall and winter, including five routes it is ending on less than two weeks’ notice. “Based upon travel trends, we have decided to make these changes sooner than anticipated and focus on markets where demand for travel will be stronger,” says David Meers, the low-cost carrier’s COO.

Madhu Unnikrishnan
Capacity discipline that helped keep world airlines results aloft in 2010 may be eroding in 2011, particularly in the powerhouse Asia-Pacific region, Association of Asia-Pacific Airlines (AAPA) data suggest.

By Adrian Schofield
The Qantas engineers’ union revealed that the airline plans to cut the number of pre-flight checks conducted by its licensed-engineer members, one of many new work rules the union opposes as contract talks continue. In a message to members, the Australian Licensed Aircraft Engineers Association (ALAEA) says Qantas is proposing that for Boeing 737-800s and Airbus A330s, engineers would only do checks before the first flight of the day and any ETOPS flights.

James Ott
A Georgia Public Policy Foundation report on the value of privatizing Briscoe Field near Atlanta has energized both proponents and opponents, says study author Benita M. Dodd, foundation VP. The report projects the pending move for the 600-acre field as “an enormous economic boost” for Gwinnett County and region. Dodd describes Propeller Airports Briscoe Field, Inc., as the likely successful bidder to privatize Briscoe under the FAA’s pilot privatization program.

Darren Shannon
Mexico’s VivaAerobus in November intends to add two Florida destinations to its network with the launch of non-stop services to Miami and Orlando from its Monterrey hub. The year-round Miami service is first, with flights scheduled to begin Nov. 11. The Orlando non-stop, which will be operated “during high seasons,” will be launched eight days later. “Just a few years ago we had the vision to become a player with routes to the U.S.

Leithen Francis
The Malaysian government’s investment arm, Khazanah Holdings, and AirAsia’s two most influential shareholders, co-founders Tony Fernandes and Kamarudin Meranun, have agreed to align AirAsia and Malaysia Airlines (MAS) as part of a share-swap deal. The two men have been appointed to the MAS board, which is undergoing a shake-up. Several board directors are being replaced, along with MAS’s managing director Tengku Azmil Aziz. An executive committee that includes Fernandes will run the new airline until a new managing director is appointed, says AirAsia.

Andrew Compart
Fourteen U.S. airline flights exceeded the Transportation Department’s three-hour limit on tarmac delays in June, the DOT reported Tuesday. The DOT says it is investigating all 14, but noted that five of the delays occurred at Chicago’s O’Hare International Airport and three at Washington Dulles International Airport on stormy days. Under the tarmac-delay rule that took effect in late April 2010, U.S.

Harrell Associates
Introducing the Aero 100 Airfare Benchmark Index Designed for anyone with risk on the future level of airfares—for example Airlines, Banks/Credit Card Companies, Corporate Travel Managers, etc. The Aero 100 Airfare Benchmark Index tracks daily airfares within the domestic airline market. The Aero 100 delivers financial risk mitigation and protection against constant fluctuation of airline ticket prices by providing the price settling mechanism for Commodity Futures Contracts.

By Jen DiMascio
After an agonizing two-week partial shutdown of the FAA, lawmakers are now turning their attention to negotiations on a long-term reauthorization bill.

Oliver Wyman
Click here to view the pdf ALTA (Asociacion Latinoamericana de Transporte Aereo) Monthly Traffic, June 2011 June June % YTD YTD % 2011 2010 Change

By Adrian Schofield
Australian regulators are expected within a matter of days to decide if grounded Tiger Airways Australia can resume operations, and all indications are that the suspension will be lifted. The Civil Aviation Safety Authority (CASA) cited serious safety concerns in several areas, from pilot training to maintenance control, when it suspended operations at the carrier, a unit of Singapore-based Tiger Airways, on July 2. Since then the carrier has been working with CASA to resolve its concerns.

Darren Shannon
U.S investment firm J.P. Morgan has provided Biman Bangladesh Airlines with a US$277 million financing facility to support the government-owned carrier’s fleet expansion. The investment will be used to buy two Boeing aircraft from the carrier’s 2008 orders for two 737-800s, four 777-300ERs and four 787-8s, all of which are scheduled for delivery over the next eight years. It is unclear which aircraft the J.P. Morgan facility will cover. Repayment details, though, are being discussed, with Biman scheduled to pay the 12-year loan quarterly.

Robert Wall
With Garuda’s Indonesia deal for 25 A320 narrowbodies now firm, Airbus has reached the 1,000-aircraft order mark for 2011. Garuda’s plans to acquire 15 A320s and 10 A320NEO (New Engine Option) airliners for its Citilink low-fare operation was announced in June but is now firm. The deal—along with Cebu Pacific’s confirmed plan to buy 30 A321NEO airliners and Lufthansa’s recent announcement that its 30 A320/A321NEO deal is firm—brings Airbus to the 1,000-order level.

Oliver Wyman
Click here to view the pdf

Andrew Compart
A U.S. Transportation Dept. (DOT) court filing defending the legality and constitutionality of its second round of passenger rights rules may also set the stage for the third-round passenger rights rulemaking it plans to initiate early next year, and the battle that is likely to ensue.

Oliver Wyman
Click here to view the pdf

Oliver Wyman
Click here to view the pdf Summary of U.S.

Darren Shannon
United Continental Holdings’ passenger unit revenue continued to grow in July albeit at a rates lower than in most of the year’s preceding months. The 7.5-8.5% growth in both consolidated and mainline passenger revenue per available seat mile in July, however, is judged against a banner 2010, when Continental Airlines and United Airlines both posted PRASM growth above 20%.

James Ott
Overall freight traffic moving through European airports in June fell 4.6% year-over-year, raising questions about the future, as cargo movements typically reflect the state of the economy. “The sudden dip in freight traffic is a worrying development,” says Olivier Jankovec, director general of Airports Council International-Europe. He attributes the decline to higher fuel costs and company destocking in many sectors. Compounding the effect of these developments is weakening business activity in Europe and the U.S.

Greg Principato
By Greg Principato, President, Airports Council International-North America

By Jens Flottau
German ATC provider DFS is asking a local court to block a strike by controllers scheduled for Aug. 9. DFS says the walkout is illegal because some union demands touch on agreements that are not up for negotiation. DFS was successful with a similar move last week, but the GdF union has since dropped two demands that were the basis for the court’s decision. GdF called for a six-hr. walkout that would start at 6 a.m. local time. DFS could still avoid the strike by calling for arbitration.

Andrew Compart
The Boeing 717 aircraft now in the Southwest Airlines fleet because of its AirTran Airways acquisition will begin to come off lease in 2018, Southwest says. The timing is significant because Southwest Chairman, President and CEO Gary Kelly revealed last week that the low-cost carrier does not plan to keep the 717s in its fleet after the leases expire (Aviation Daily, Aug. 5). Southwest has 88 of the 717s in its 694-aircraft fleet, which otherwise consists solely of Boeing 737s, and 80 of those 717s are on lease. The last of the 717 leases expires in 2024.

Oliver Wyman
Click here to view the pdf Summary of U.S.

By Jay Menon
A global tender for operating helicopter services in the hilly terrain of an Indian state will soon be floated. The landlocked northeastern state of Arunachal Pradesh, which has seen a spate of recent helicopter crashes, has decided to invite proposals from airline companies in India and abroad to reintroduce helicopter services, which were suspended in May. The state government will take appropriate measures to ensure that only helicopters with advanced technology and good flying records operate in the state, Chief Minister Jarbom Gamlin says.