The global airline industry could lose anywhere from $2.3 billion to $6.1 billion this year, depending on the cost of oil, new data from IATA show. Capacity cuts in the U.S. market will not “do more than limit the losses in the U.S.,” and domestic carriers are not expected to return to profitability until 2010 at the earliest, the forecast says.
Rep. Steve Cohen (D-Tenn.), learning of Delta’s plan to cancel the flying contract of Memphis-based Pinnacle, tells fellow House members that a merger between Delta and Northwest could possibly result in the cancellation of the remaining portion of Pinnacle’s Northwest Airlink flying.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) JUNE 19 — European Aviation Club one day conference: Europe’s global solution to fight emissions: are aviation and the environment really on a collision course?; Hotel Bristol Stephanie, Brussels, e-mail: [email protected] JUNE 25-26 — Unmanned Aircraft System Payloads Conference, Westin Alexandria, Va., 310-563-1223, www.ttcus.com
If oil prices don't come down soon, several large and small airlines could go bankrupt, costing the U.S. economy tens of thousands of jobs and leaving airline travel the preserve of the wealthy, according to a new study by the Business Travel Coalition. BTC released the study the same day the Air Transport Association urged Congress to take steps to "address the distorted energy commodities market." ATA teamed with a coalition of airline and transport groups in a letter to congressional leadership.
AirTran, American, Delta, Northwest, United and US Airways are asking FAA to waive the minimum slot usage requirement at Washington National, Chicago O’Hare and the three major New York area airports for the upcoming winter season. The waiver, which would suspend the “use or lose” conditions on slots at those airports, mirrors a similar request on international operating authority currently pending before the U.S. Transportation Dept.
Pemco World Air Services, Inc. promoted Cargo Conversion Division President Kevin Casey to president of Pemco, tapped Patrick Stewart to become CFO and moved Dennis Johnson from VP-commercial operations in Dothan, Ala., to VP-commercial operations in Tampa. Shane King, newly appointed director of production at Dothan, will assume many of Johnson’s duties in Dothan.
UAE’s Air Arabia is planning to launch its second Iranian nonstop service on June 25. The four-times-weekly service from its base in Sharjah to Shiraz in western Iran will be the carrier’s 41st destination. “The opening of our newest destination in Shiraz reflects the importance of the Iranian market as a whole to Middle East travel,” said Head of Commercial Dept. AK Nizar.
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.
Continental amended an agreement with its domestic bank-issued credit card processor in a way that should reduce its risk of increased collateral or holdbacks. Credit card processor collateral and holdback issues were the final straw that drove Frontier into Chapter 11 bankruptcy protection in mid-April, and industry analysts have been keeping a close watch on the potential for similar issues with other carriers ever since.
30 Years Ago June 16, 1978 – A federal judge in Lake Charles, La., this week fined Texas International Airlines $100K after the company pleaded no contest to charges that it conspired to keep Southwest out of the Texas air markets. Similar charges still remain against Braniff, which has pleaded innocent. 20 Years Ago
Canadian manufacturer Mechtronix Systems has unveiled its first Airbus A320 full-flight simulator. The A320 FFS X is the latest simulator to be added to the company’s portfolio, which also includes a 737 Next Generation FFS and several general aviation applications. “We are very pleased to finally unveil the latest technology in the A320 simulation market and appreciate the collaborative support we have received from the OEM, our customers and the other people who supported this initiative,” said Mechtronix President Xavier Herve in a statement.
Singapore Transport Minister Raymond Lim says prospects remain bright for air travel in the Asia/Pacific region despite the current high price of fuel, which is making for one of the most challenging periods in airline history.
Pinnacle subsidiary Colgan posted a triple-digit increase in traffic and a double-digit gain in loads for May, while traffic at Pinnacle improved and load factors were relatively unchanged.
Look for other airlines to follow Continental’s lead in getting cash infusions from co-branding deal extensions and advance mileage sales with credit card company partners. Continental took in more than $400 million from Chase Bank USA last week, and JP Morgan analysts Jamie Baker and Mark Streeter noted that the affinity relationships of Delta and Northwest are up for renewal.
Included in the Amtrak reauthorization bill passed by the House of Representatives June 11 is a measure that would develop high-speed rail connections between Washington and New York. The measure would solicit bids from private companies to build the rail link, first between the two East Coast cities, and then elsewhere in the U.S. The Amtrak reauthorization bill passed by 311 to 104 in the House.
The number of aircraft engines being washed is climbing in parallel with escalating fuel prices and growing concern for the environment. Both United and Southwest announced deals with Pratt & Whitney on June 11 to use its EcoPower engine wash, which is a closed-loop system that is designed to remove dirt and grime from powerplants, so they burn less fuel and operate at better exhaust gas temperature margins.
Continental yesterday revealed new details of its capacity cuts — including significant reductions at its major hubs — while new financial information is boosting Wall St. optimism regarding liquidity.
The Ethiopian Airports Enterprise (EAE) has asked the Ministry of Finance and Economic Development to clear a budget for an upgrade of Jimma Airport, according to Addis Fortune weekly. State-owned Transport Construction Design S.C was awarded the design in January 2008.
EgyptAir will formally become the 21st member of the Star Alliance on July 11, furthering the group’s plan to extend Star into Asia and the Middle East. Star’s latest addition will add nine new airports to the alliance’s current network. The DAILY also learned an Airbus A330 in Star livery is already scheduled to join EgyptAir’s fleet.
Baltimore-Washington International Airport has issued a request for proposal to install a registered traveler program. BWI has been studying the effort for the past few months, said spokesman Jonathan Dean. “We’re seeking to introduce a Registered Traveler product to simplify and enhance the customer experience, and to expedite the passenger screening process,” he said. The airport joins Washington National and Dulles in having RT, but that did not drive the decision, said Dean.
United and US Airways said June 12 they will begin charging domestic economy-class customers $15 for the first checked bag, becoming the first major U.S. carriers to essentially match American. The US Airways fee also will apply to some international travelers, and both carriers are applying it to more coach customers than American.
Aerolineas Argentinas raised the eyebrows of Latin analysts recently with news of troubles out of Rome. Passengers on a flight from Rome Fiumicino Airport to Buenos Aires Ezeiza became restless after a six-hour departure delay and airport police were called in to calm the crowd. The passengers were later ticketed on a flight to Madrid to catch a connection to Buenos Aires but ran into further delays in the Spanish capital. Analysts suggest AR may be continuing to experience equipment and labor problems, which are resulting in chronic and lengthy delays.
