Mexico’s air transport officials and antitrust regulators are rethinking their policies on consolidation and mergers, said Transport Secretary Luis Tellez. Tellez told local press that regulators are beginning to see consolidation as a possible means to offset skyrocketing fuel prices and other critical problems. “While regulators cannot tell airline A to merge with Z, consolidation among carriers is growing worldwide and Mexico should not dismiss this trend as one of several options out of the present crisis,” he noted.
The Association of Corporate Travel Executives send out a worldwide warning to its members Thursday to limit proprietary information and personal data on laptop computers, citing a U.S. federal appeals court decision April 21 that gives U.S. customs officers the authority to examine, copy and seize travelers’ laptops “without reasonable suspicion.”
IATA and the Board of Airline Representatives in the U.K. (BAR UK) is calling on the U.K. Treasury to rescind a proposed aviation duty, designed to replace the air passenger duty (APD) in November 2009. The chancellor has released a request for comment over its proposal.
GE Aviation’s engine parts scrap reclamation program has several new commercial and military customers, including Atlantic Southeast Airlines and China Airlines, and “we have had success in working to increase the number of parts that we will recycle,” says Larry Dening, GE Aviation Reclamation and Recycling Program leader. “My goal right now is to recycle at least 60%-70% of the engine, and I think by the end of the year, we should make that target.”
Volaris’ prospects took a 180 degree turn last week — after recently announcing a long-haul route spanning Mexico from north to south (DAILY, April 21), record-breaking fuel costs, the subprime crisis and potential U.S. recession and its effect on world economy forced the carrier to review traffic forecasts and consider ways the carrier can save money.
Qantas is reaffirming its forecast of 40% growth in pre-tax profit for its 2008 fiscal year — compared with an A$1 billion (US$932 million) profit in 2006/2007 — although it admits domestic market conditions are getting tougher. Domestic yields are under pressure from heightened sale activity, which results from increased capacity.
The Aloha pilots union voted last week to authorize a strike against the bankrupt airline’s ongoing cargo service “if and when it becomes absolutely necessary.” The union contends Aloha is not complying with the contract’s seniority and benefit provisions (DAILY, April 22). The union said it would “exhaust every opportunity — negotiating with management, using federal mediators, going through bankruptcy court facilitation — to avoid calling a strike.”
The first low-fare carrier in Ukraine, Wizz Air Ukraine, said it plans to start service on July 11. The startup will begin operations with a network of seven domestic routes and use Kiev’s Boryspil Airport as its base. The carrier will fly Airbus A320s in a 180-seat configuration. The highest frequency will be on the Kiev-Simferopol route, with 10 flights per week. It connects the capital with the popular Crimean tourist town. That route is followed by seven flights per week on the Kiev-Odessa connection.
The Italian government’s decision to extend a EUR300 million (US$480 million) loan to Alitalia is raising the ire of other European airlines, from network to low-fare carriers. “The loan is yet another link in a chain of subsidies that has been going on for years whereby the Italian government, against the [European Union’s] explicit forbiddance, pumps money in to an ailing national airline,” Finnair President and CEO Jukka Hienonen said late last week.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) APRIL 28-30 — Airport Economics & Finance Conference, Omni Interlocken Resort, Denver, Colo., 888-444-6664, http://www.aci-na.org APRIL 28–30 — Business Information Technologies Conference, Omni Interlocken Resort, Denver, Colo., 888-444-6664, http://www.aci-na.org APRIL 29–30 — NATA: Advanced Line Service Supervisor Training, Dulles, Va., 703-845-9000, www.nata.aero
A federal bankruptcy judge Thursday approved the sale of Aloha’s contract services division to Pacific Air Cargo for $2.05 million, and Aloha said it expects the deal to close May 5. Pacific Air Cargo just edged out Evergreen Aviation Ground Logistics Enterprises, which bid $2 million. The contract services division employs about 1,100 workers who provide ground- handling services for domestic and international airlines serving Hawaii’s airports.
Air Wisconsin and United expanded their ground-handling agreement, which added some 700 employees to Air Wisconsin’s ranks and increased from 23 to 27 the number of cities where the regional provides ground handling for United Express flights.
World-class airlines may choose to bypass Mexico City unless a new project to replace the aging Mexico City International Airport (AICM) is launched, one Mexican aviation official believes. Agustin Arellano, CEO of Seneam, which regulates air space navigation in Mexico, warned the hemisphere’s largest metropolitan airport might be bypassed by world-class airlines, among them Cathay Pacific, Qantas and Virgin Atlantic, unless the project goes forward. Current projections have AICM being totally saturated by 2015 (DAILY, Feb. 4).
30 Years Ago April 27, 1978 — Concern over recent DC-10 accidents caused by tire blowouts has prompted FAA to begin next week an investigation into the original certification of the McDonnell Douglas widebody. 20 Years Ago April 27, 1988 — DOT Secretary Jim Burnley said he was “disturbed” by the prospect that safety was being used as a tool in labor-management disputes. FAA has received 1,300 complaints from Eastern employees about the carrier’s safety practices, but only six could be substantiated. 10 Years Ago
Executive jet operators Jet Aviation of Switzerland and Elite Jets of Dubai will create a strategic parnership to develop business aviation services in the fast-growing Middle East bizjet market. Elite, founded in 2004, will provide charter services in the region for Jet Aviation customers using its fleet of Challenger 604/605, Hawker 850 XP and Cessna CJ3 aircraft. Jet Aviation will provide line and scheduled maintenance, technical assistance and training services, and allow Elite to benefit from pooled purchasing of insurance, fuel and other items.
French transatlantic all-business-class airline L’Avion says it’s seeing results that are beating its expectations despite the global economic headwind. The carrier that operates twice-daily 757-200 service between Paris Orly and Newark says load factor has grown to 71% in the first quarter and even reached 78% last month. Passenger volume is up heavily from last year’s first quarter, although that’s partly distorted by the fact that L’Avion was still in its startup phase at the time.
South Korea will loosen restrictions on budget airlines that bar them from flying internationally in their first two years of operations. The move will open opportunities for the many budget airlines that hope to begin flying in South Korea in the next year: Busan Air, Air Korea, Incheon Tiger Airways, Yeongnam Air and PurpleAir. The first three in that list are affiliates of Asiana, Korean Air and Singapore’s Tiger Airlines, respectively.
Visiting Washington to lobby for their merger proposal, the CEOs of Delta and Northwest this week reiterated their views that their networks won’t contract due to the link-up and that having different aircraft types can be an advantage, rather than a problem.
China Southern subsidiary Xiamen Airlines will set up a base at Changsha, a city of 6 million people in the south-central province Hunan. Following common Chinese practice, it has formed a joint company with the provincial government to run the base, and the province says it will offer favorable policies in return. China Southern, which owns 60% of Xiamen Airlines, already has a base at Changsha Huanghua Airport.
