A triple merger by TAP Air Portugal, TAM Brazil and Angola’s Transportes Aereos Angolenhos (TAAG) is being considered as a possible option to alleviate sky-high fuel costs, TAP President Fernando Pinto told Europa Press last week. Together, the three carriers generate about $854 million annual revenues, employ 30,000 workers and operate 170 aircraft. Pinto described TAP’s current financial position as “dramatic” and added the company had lost $158 million so far this year, almost doubling losses recorded in the same five months in 2007.
TIMCO Aviation Services tapped President and Chief Operating Officer Ron Utecht and CFO Kevin Carter to jointly assume responsibility for the Office of the Chief Executive, following the resignation of CEO and Chairman John Cawthron. Cawthron is leaving to pursue other interests.
Delta is tacking on a fuel surcharge for SkyMiles frequent flyer tickets on flights out of the U.S. and Canada. Effective Aug. 15, the carrier will charge $25 for SkyMiles flights between the U.S. and Canada, while the rate will be $50 between the U.S. and Canada to all international destinations.
Genesis Lease Limited named Pierrre McNamara VP-technical with responsibility for technical matters relating to the acquisition and oversight of the company’s aircraft portfolio.
The threat level will remain at orange for the foreseeable future, says Mo McGowan, assistant administrator for security operations for the Transportation Security Administration. “Threats have happened in the past three summers and threats are still out there,” he warns. “As we go through the summer travel season, we always evaluate at what point we may go back to yellow. But that is not now.”
Aeromexico wants a quick nod from the U.S. Transportation Dept. for new service between Mexico City and San Francisco it intends to launch in August. The daily service would fly with Boeing 737-700 aircraft. Aeromexico is asking the department for an expedited decision, given the short amount of lead time it has to market the services [DOT-OST-2008-0197]. The carrier is also looking to swap some service with its low-cost unit, Aerolitoral.
European and Asian airlines may focus more flying on North American cities as a Eurasian capacity glut takes place starting in 2011, says Mike Tretheway, executive VP for InterVistas Consulting. “Rising deployment capacity will put severe pressure on these carriers and induce them to look for more opportunities to deploy these aircraft elsewhere, especially since U.S. carriers don’t have enough aircraft on order to handle this increased traffic,” he adds.
Northwest’s decision to suspend its Minneapolis/St. Paul-Paris service for the winter was the “inevitable result” of the devalued dollar and historic increases in fuel prices, a Minneapolis/St. Paul Airport spokesman said June 27. Although Northwest did not share load factor information with the airport, the spokesman noted, “The U.S. dollar has fallen substantially against the euro, making it more expensive for Americans to travel to Europe and softening demand.”
China’s Xi’an Aircraft, at press time Friday, was set to roll out the 50- to 60-seat MA600 regional turboprop on Sunday. The MA600 is an improved version of the MA60 with lighter structure, Rockwell Collins Pro Line 21 integrated flight deck, upgraded interior and an airstair door. First flight is expected in September, with first delivery set for 2009.
Handing out EUR4.8 million (US$7.5 million) of taxpayer money to Olympic Airways as compensation for lost business due to the terrorist attacks of Sept. 11, 2001, on the U.S. was entirely legitimate, ruled the European Union Court of First Instance last week in Luxembourg.
A group representing air traffic control providers is concerned about the role defined for Eurocontrol under the latest Single European Sky legislative package, and it will push for changes to the agency’s new job description.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) JULY 1-4 — Russia & Commonwealth of Independent States Aviation Outlook Summit, Hotel Baltschung Kemplinski, Moscow, +44 (20) 7827-4156, www.terrapinn.com/2008 JULY 3-4 — University of Westminster Aviation Seminar, Regional & Low-Cost Air Transport, London, +44 (20) 7911-5000 ext. 3344, www.westminster.ac.uk/transport
A new compromise emissions trading plan reached by the European Parliament and the departing Slovenian presidency of the European Council has the airline industry up in arms. The compromise softens the proposals the Parliament had first put forward. It now would include all flights within and to and from the European Union in the emissions trading scheme (ETS) from 2012, rather than 2011, which the Parliament earlier proposed. The proposal goes before Parliament's plenary session for a vote on July 9.
Members of the Clear registered traveler program are looking at an increase in the current $128 yearly price tag. “This fall, Clear’s price will increase. It’s a price that reflects the rapidly expanding value (and cost to us) of the Clear network,” said CEO Steven Brill in a letter to members. “However, we do not want current Clear members like you, who supported us from the beginning, to have to bear the brunt of these costs.” The letter gives current members the chance to renew their current rates for the next three years.
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) SEPT. 23 — Green Aviation, Madrid, Spain SEPT. 24-25 — MRO Europe, Madrid Spain OCT. 15-16 — MRO Asia, Singapore NOV. 18-19 — Aerospace & Defense Finance, New York, N.Y.
DOT Secretary Mary Peters and Sen. Byron Dorgan (D-N.D.) have been confirmed as speakers at the energy summit being held by the American Association of Airport Executives (AAAE) July 10 in Washington. Speaking on the Airline/Energy Analyst Panel are John Heimlich, chief economist for the Air Transport Association; Tom Berry, principal economics and business analyst for the MITRE Corp.; and Cyriel Kronenburg of IATA.
Elliot Aviation tapped Jamie Luster to become regional sales manager-Southwest region, named Tom Welch regional sales manager-Great Lakes region and promoted Chris Shaffer to service manager at the company’s headquarters at Quad Cities Airport in Moline, Ill.
The industry will not see any more airline merger announcements as the price of a barrel of oil continuing to rise, says AirTran Chairman and CEO Robert Fornaro. “As airline losses mount, carriers are more concerned about their cash positions and just surviving,” he adds.
Aer Lingus hired Sean Coyle away from Ryanair to become its CFO, leading Ryanair to take some verbal shots at its cross-town, low-cost rival. Aer Lingus said Coyle, 35, will bring “proven experience” to Aer Lingus. Coyle, who joined Ryanair in 1998, oversaw its route selection, network strategy and capacity allocation as the airline’s director of scheduled revenue. In joining Aer Lingus, he praised the carrier for having “a clear strategy for growth” and “one of the strongest capital structures in the industry.”
Travelers coming to the U.S. from Mexico and Canada are increasingly getting here via connecting roadways instead of by airline flights, data from the U.S. Commerce Dept. suggest. Canadian travel was up 26.4% year over year in March, mostly due to a 36% jump in land arrivals and a 13% increase in air arrivals, reports Commerce’s Office of Travel and Tourism Industries (OTTI). Travel from Mexico, meanwhile, was up 31%. As with Canada, arrivals via land grew faster than air arrivals, 38% to 16%.
Transportation Security Administration (TSA) Chief Kip Hawley says he’s ready to leave the agency, no matter who wins the White House in November. On Jan. 20, 2009, Hawley says he will depart the TSA, which he has headed for three years – longer than any of his three predecessors. “It’s time for some new blood of whatever [political] denomination. This is long enough,” he says.
Congress has another three months to figure out a way to reauthorize the FAA before Fiscal 2008 ends. By unanimous consent, the Senate approved another short extension of the agency’s regulatory and fee charging authority last week. The House passed its extension earlier in the week.
