Spirit has not yet decided whether to cut any jobs or capacity, and its board is not scheduled to meet next week to talk about it, airline CEO Ben Baldanza told The DAILY.
United Airlines will rely more on regional partners to support domestic services under a capacity initiative that cuts 100 aircraft from the Chicago-based carrier’s mainline fleet. In a plan announced yesterday, United detailed a 10% to 11% increase in its Express capacity by the end of 2009. At the same time, United is cutting up to 18% of its North American mainline ASMs and between 4% and 5% of its international capacity (DAILY, June 4).
Italy’s Air One is placing firm orders for 12 Airbus A350-800 twinjets and 12 253-seat A330-200s, with options on a further 12 A350s and eight A330s. Air One has already ordered up to 90 A320s, of which 65 are firm.
Seven network carriers together asked the U.S. Transportation Dept. to waive dormancy conditions on international exemptions and frequency allocations, citing an “urgent need for flexibility” in the face of high fuel prices and a shaky economy. The last time U.S. airlines banded together on such a request was in the months following the Sept. 11, 2001, terrorist attacks.
Certain U.K. airlines will start to value all of their landing slots as assets on their balance sheet annual results, claims a new report from Deloitte & Touche LLP. “With such high demand for landing slots, many airlines have realized the slots they hold are very valuable. For the most part, these are not included as assets on an airline’s balance sheet,” said Graham Pickett, an aviation partner at Deloitte. “It is important that this value is fairly recognized so that airlines have the potential to use them as security against borrowings.”
Los Angeles World Airports (LAWA) won approval for its FY 2008-09 $3.2 billion budget from the board of Airport Commissioners, a 22% year-over-year rise that includes a $50 million reserve fund. LAWA’s $664.1 million operating budget covers expenses for its four airports — Los Angeles International, Ontario, Palmdale and Van Nuys — represents a 4.9% increase year over year. Almost 85% of the revenues will be generated by LAX, at $639.2 million.
Fourteen non-Cuban airlines recently were presented awards in Havana from Cuba’s tourism ministry and the civil aviation institute, which acknowledged their “meaningful operational and logistic support of the island’s tourism industry.” Europa Press reports the list includes Spanish carriers Iberia and Air Europa, Copa Airlines, Mexicana, Click Mexicana and Taca’s Costa Rican unit Lacsa.
Grupo Taca and Volaris signed a deal on code- and information-sharing, plus better mutual use of distribution channels. The long-term objective is to cut costs in tough economic times and to offer additional, less expensive options to stimulate seat demand. The Mexican low-cost carrier will add to its destinations with Taca’s vast Americas route network while El Salvador-based Taca will do likewise domestically in Mexico.
FAA Acting Administrator Robert Sturgell warned employees in an e-mail that the agency could once again be threatened with furloughs if Congress does not extend its funding past June 30. Congress in February granted FAA a temporary extension of the excise taxes that fund the Airport and Airway Trust Fund through June. Before the temporary extension, Sturgell had warned that as many as 4,000 FAA employees could be furloughed (DAILY, Feb. 15).
American will scuttle the no-tip policy it enacted at Boston Logan airport, as part of deal with skycaps at Boston Logan airport that will keep both sides out of Massachusetts courtrooms. The policy lifts on June 15 and new signs will go up at the airport telling travelers they can tip skycaps “at their discretion.” The $2 per bag fee for curbside check-in will also be ended systemwide.
Detroit Metro Airport has become the 13th airport to take delivery of FAA’s ASDE-X advanced radar system. Four more airports will get ASDE-X in 2008, said FAA spokesman Paul Takemoto. Each system costs $14.5 million, which includes equipment, installation engineering, system optimization and training, he added. “We prioritize where ASDE-X will be deployed based on where it will deliver the most immediate safety benefits,” said Takemoto. “We look at factors including traffic level and complexity and the risk of runway incursions.”
The European Commission cleared Poland to grant a EUR84.1 million state aid package (US$129.95 million) backing the building of a new airport near Lublin, which lies some 160 kilometers southeast of Warsaw.
Spanish startup Andalus Airlines, financed entirely by Andalusian investors and headquartered in Malaga, told participants at Euroal 2008 Fair in Torremolinos (Spain) it is busy planning strategies and assembling a fleet, mostly long-range Boeing 767s, to operate priority routes from Malaga to major destinations in Latin America and the Caribbean in 2009. Market research indicates Andalus could fill a niche and see potentially heavy year-round vacation traffic at both ends, the airline said.
The Czech government approved a plan to sell its 100% stake in Prague’s Ruzyne airport for a price likely to exceed CZK100 billion (US$6.2 billion), Czech Premier Mirek Topolanek said earlier this week. The privatization is scheduled to be completed in the second half of 2009.
The Italian stock exchange authority, Consob, suspended Alitalia shares’ trading indefinitely yesterday after a report in the Italian press indicated the European Commission would block the EUR300 million in state aid that is currently keeping the airline alive. An EC spokesman denied that a decision had been made already. The EC is considering additional information it received on May 30 on the state support, “in line with the usual procedure,” the spokesman said. “That information is being thoroughly analyzed” by the commission.
Brazil’s TAM said it is converting its entire fleet to 156-seat Airbus A320s and retiring its Fokker 100s, as part of fleet upgrade the carrier said will save fuel and improve passenger services aloft and on the ground. The carrier also streamlined its South American route network, with schedule changes that will limit operations to Bolivia to Santa Cruz. TAM said the changes will offer faster and easier connections. Jornal do Brasil reports the move also will apply to subsidiary Paraguay-based Tam Mercosur.
The three New York area airports are a step closer to getting inline baggage screening systems, thanks to a $400 million grant from the Transportation Security Administration (TSA). The Port Authority of New York and New Jersey is working on schedules right now in consultation with the airlines on final installation dates, said spokesman Marc LaVorgna.
FAA denied the Air Transport Association's request to extend the comment period for the congestion management proposals for the New York airports, and the association shot back, arguing the government is trying to railroad the measure through before the Bush Administration leaves office.
New York state for the sixth consecutive year was the top destination for international travelers to the U.S. in 2007, the U.S. Commerce Dept. said in its 2007 profile of international visitors. New York City was the top draw, as 32% of the almost 23.9 million travelers to the U.S. visited the city. California was the destination of choice for 22% of international visitors while Florida was the destination visited by 20% of those passengers.
Lufthansa and Swiss have restarted talks with Amadeus after reaching a new agreement with Travelport GDS that will let Galileo and Worldspan-connected travel agents in Germany, Austria, Switzerland and Lichtenstein avoid the fees they would have been forced to pay as of July 1 for access to all of the airlines’ fares.
The Flight Safety and AviAssist foundations unveiled a partnership June 2 aimed at enhancing aviation safety in the 22 states of ICAO’s East and Southern African region. Tourism and international business are growing rapidly in the region — yet it is “one of the least safe in the world,” says AviAssist Director Tom Kok.
Europe’s leading low-fare airline, Ryanair, will not make a profit with fuel prices around $130 per barrel, and industry observers warn a shakeout looms in the European continent’s low-fare sector. Because fuel represents a much higher percentage of operating costs for low-fare airlines than for network carriers, International Air Transport Association Director General Giovanni Bisignani warns a wave of consolidation looms for the LCCs. He projects three or four carriers will consolidate.
