Fare increases not only boosted LAN Airlines’ first-quarter yields, they also covered the entire rise in fuel costs, the operator’s top executives say. The yields, which grew 9.5% at LAN’s passenger operation and 11.7% at its cargo unit, also lifted revenue 31.9% to $1.4 billion, with income from passenger services growing 32% to $977.8 million and from cargo 30.2% to $346.4 million.
Major U.S. aviation industry groups are urging lawmakers to continue to support the FAA contract tower program as they begin work on the fiscal 2012 budget. In a letter to House and Senate appropriators, the nine groups ask that the program be fully funded in the Transportation Department’s (DOT) fiscal 2012 budget. Full funding, as requested by the Obama administration, would allocate $121.8 million for the FAA contract tower program and $10 million for the contract tower cost-sharing program.
The African Airlines Association (AFRAA) is calling on local governments to “address the serious safety oversight deficiencies” on the continent, and engage with the European Union to “find a mutually acceptable and agreed approach to jointly addressing safety issues.”
European low-cost carriers are seeing a significant traffic drop in their German networks since the beginning of the year. DLR, Germany’s aerospace research center, says low-cost airline traffic on domestic routes declined 8% in the first three months of 2011. The likely reason, DLR says, is the introduction of the air passenger tax in January. Germany charges an €8 ($11.85) tax for every departure at a German airport, so that domestic roundtrips are taxed twice, whereas European journeys are counted only once.
Norwegian Air Shuttle suffered a wider loss in the first quarter as the airline was hit by higher fuel costs while investing significantly in new market segments. The quarterly deficit totaled NOK293 million ($55.2 million), up from NOK199 million a year earlier. CEO Bjorn Kjos says the company spent NOK140 million more on fuel than a year ago and had extraordinary startup costs of another NOK100 million.
Guangzhou Aircraft Maintenance & Engineering Co. (Gameco) has opened its first maintenance base outside of its Guangzhou headquarters and will provide line maintenance for ChongQing Airlines there. Gameco, which received Civil Aviation Administration of China maintenance approval for this new facility in ChongQing, also is hiring ChongQing Airline’s engineering staff at this location, who, along with key Gameco management personnel, will provide out-station support, component maintenance, ground support and consumable material supply for the airline.
Administrator Randy Babbitt believes that while the administration is open to a public-private partnership to help finance the NextGen air traffic control modernization program, putting the structure in place is no simple undertaking, he told the U.S. Chamber of Commerce on April 27.
Air Astana is about to move into the aircraft heavy maintenance business, starting with C checks on its own Airbus A320-family aircraft. The carrier hopes to receive European Aviation Safety Agency certification in time to do the first C check toward year-end, Air Astana CEO Peter Foster tells Aviation Week in Almaty, Kazakhstan. Air Astana also recently established its own wheel, brake and battery overhaul shop, he adds.
Kansas City Aviation Department has unveiled a redesigned website, found at FlyKCI, and a new mobile site to accommodate changing consumer habits at Kansas City International Airport.
The FAA has named Christa Fornarotto, a former staff member of the House aviation subcommittee, associate administrator for airports. She will oversee the $3.5 billion airport grants program and collection of passenger facility charges. Fornarotto previously was deputy assistant secretary for aviation and international affairs at the Transportation Department and has served as legislative director for Rep. Jerry Costello (D.-Ill.).
The second Boeing 747-8 passenger variant (RC021) made its first flight on April 26, bolstering the flight test effort that aims to culminate in certification and initial delivery by year-end. Flown by Keith Otsuka and Ron Johnston, RC021 took off at 9:26 a.m. Pacific time from Paine Field in Everett, Wash., and completed a 3 hr., 20 min. flight before returning to Paine Field. During the flight, the 747-8 reached an altitude of 28,000 ft. and a top airspeed of 275 knots, or about 316 mph.
Uruguay’s Pluna Lineas Aereas has signed a follow-on order for three Bombardier CRJ900 twinjets in a deal worth $129 million at list price. The airline, which currently operates 10 CRJ900s previously ordered from the Canadian manufacturer, says the new 90-seat aircraft will be used to increase frequencies and expand into new markets.
Manchester Airport’s airport city concept is envisioned as a competitor to similar developments under way at Barcelona, Milan, Duesseldorf and Amsterdam. But the Manchester version will be “a uniquely different proposition to anything else that exists in the U.K.,” says John Atkins, managing director of Manchester Airport’s commercial property business, MAG Developments. The Manchester City Council recently approved an area near the airport as one of the first of 21 enterprise zones proposed in the U.K., signaling that the project will proceed.
FAA Administrator Randy Babbitt is dismissing calls to allow controllers to sleep during shifts to mitigate the effects of fatigue. The agency is currently reviewing 12 recommendations to offset fatigue proposed by the National Air Traffic Controllers Association that include breaks of up to 2.5 hours, reduced work hours on certain rotations and increased training on the effects of sleep deprivation and disorders.
Operating income at UPS’s international package operations increased 4% year-on-year in the first quarter to $446 million on a 10% rise in revenue to $2.9 billion, although the logistics firm did post a slight dip in the segment’s operating margin to 15.4% as fuel surcharges and rate increases were “offset somewhat” by currency fluctuations. UPS also recorded gains in its domestic air service. These divisions contributed to a total revenue increase of 7.2% to $12.6 billion and a 37.5% growth in operating income to $1.4 billion.
U.S. low-cost carrier Vision Airlines, which largely is following the Allegiant Air business model for its new scheduled service, is on the verge of signing contracts with Travelocity, Priceline, Expedia and Kayak to further expand its distribution, which already is done on some smaller websites and in Sabre and Worldspan, CEO David Meers says. That is a markedly different strategy than Allegiant’s, which strives to drive almost all bookings to its website, but Meers says his philosophy is that “the more distribution you have, the more consumers can find the product.”
An article about plans to add Brussels Airlines to the group of Lufthansa-controlled carriers granted antitrust immunity by the U.S. Transportation Department should have clarified that while all the applicants are members of Star Alliance, the global partnership is not involved in the proceedings. The A++ joint venture mentioned in the story currently includes Air Canada, Lufthansa and United Continental (Aviation Daily, April 26).
