The Boeing 757 wing panel fastening system is under close scrutiny in the NTSB’s continuing probe of a March 22 inflight panel separation on U.S. Airways Flight 1250.
Republic Airways Holdings in May will begin to draw down the Embraer 170 aircraft it flies for Frontier, as the Denver-based carrier elected to terminate its airline services agreement with Republic.
BMI Chairman Michael Bishop, in remarks at the Aviation Club yesterday, blasted BAA over its stewardship at London Heathrow, accusing the airports operator of treating airlines like second-class citizens after “being charged through the nose” for Terminal 5. “The 30-minute notice given of delays to the long-planned moves of airlines around the airport was the latest chapter in a sorry tale of reputational disaster for the world’s largest international airport,” said Bishop.
Despite a significant cutback in capacity, Austrian Airlines’ first-quarter loss multiplied on higher fuel and operating costs. The airline recorded a net loss of EUR60.4 million (US$96 million), compared with a deficit of EUR16 million a year earlier. Austrian CEO Alfred Oetsch also warned that the airline will not be able to reach last year’s level of profitability. He added that Austrian will find it a “challenge” to pay a dividend as planned in 2009.
Key House and Senate lawmakers yesterday argued that the Delta-Northwest merger must be examined in the context of what the airline industry could look like if Delta-Northwest triggered a wave of industry consolidation.
Republic Airways Holdings yesterday reported a $20.2 million profit for the first quarter, nearly $3 million more than in 2007, and chairman, president and CEO Bryan Bedford said the carrier could accelerate its ongoing shift to larger regional jets in the face of $115 oil. Nearly half of Republic’s 226-aircraft fleet already is comprised of 70-to-86-seat Embraer E-Jets.
Japan Airlines will begin new daily “charter” flights between Tokyo Haneda Airport and Hong Kong in July, as the convenient downtown airport introduces more international services. All Nippon Airways has been flying the same route since April 1.
US Airways will pursue alternate forms of revenue, reduce capacity and modify its fare structure going forward to offset the effect of fuel costs that contributed to its $236 million net loss in the first quarter.
Alex Wilcox, a founding member of JetBlue and the first president of India’s Kingfisher Airlines, this week unveiled his latest project: JetSuite, a very light jet (VLJ) operator that will pay aircraft owners a monthly income in return for rights to charter their aircraft.
Airbus, which forecasts that Mexico will require new 500 passenger aircraft worth US$35 billion over the next two decades, thinks consolidation may be a positive for the local industry.
Low-cost carrier Alma de Mexico is changing to its plan for U.S. service (DAILY, Jan. 4), adding the Culiacan-Las Vegas route to its pending application for exemption authority. The carrier would launch the three weekly Culiacan-Las Vegas flights in July, to be followed in August by Guadalajara-San Antonio, Texas, service and, subject to regulatory approval, by a Guadalajara-Las Vegas flight [DOT-OST-2007-0124].
Asia/Pacific airlines should not see too much pain from the looming industry downturn if wider economic forecasts are accurate, says the Center for Asia Pacific Aviation. The Asian Development Bank sees solid economic growth in 2008, and the IMF is also upbeat about the region. However, CAPA notes that these assessments could be too optimistic, as load factors in the region are starting to ease.
While BAA agrees with the U.K Competition Commission that the current regulatory system is outdated and needs reform, it feels it is in passengers’ best interest to allow it to keep control of its U.K. airports. But IATA agreed with the commission, saying that BAA’s ownership of seven U.K. airports is not in the best interests of passengers and that the system of economic regulation applied by the Civil Aviation Authority (CAA) may adversely affect competition.
Lloyd Aereo Boliviano’s attempt to renew its operating license was stymied once again, as Bolivia’s transport superintendent and airline regulator DGAC put the brakes on reissuing such the permit due to continuing concerns about the airline’s safety. Only recently did labor leader and LAB director Gustavo Viscarra say he was confident the airline would have its operating license renewed in “one week” (DAILY, April 15).
The European Commission will review the EUR300 million (US$480 million) emergency loan to Alitalia with “the necessary urgency,” said the European Union’s competition watchdog.
Air fares will undoubtedly be affected by record-high fuel prices, but they won’t rise in a way that will alienate the market, Avianca President Fabio Villegas told local press. “The prospects are indeed complex,” he noted. “With oil reaching US$110 a barrel, and accounting for 40% of our costs, no one can deny this will have an impact on airfares. But these will not increase proportionally, or literally ‘shoot up’, so carriers have time to adjust costs to meet the crisis. We cannot just increase prices without alienating the market.”
Northwest — like Delta — recorded a staggering first-quarter net loss yesterday, but in both cases the loss was magnified dramatically by a one-time “goodwill” write-down. Northwest’s net loss was $4.1 billion, although excluding special items the loss was just $191 million. This was still worse than the $73 million profit — minus special items — that Northwest achieved in the same period last year, but was more comparable to the losses posted by its legacy peers during the first quarter of 2008.
Finnair Aircraft Finance has sold six MD-80s to Allegiant Air, but the aircraft, for now, will remain with FlyNordic. FlyNordic, sold to Norwegian Air Shuttle by Finnair last year, will continue using the aircraft until next year, when lease terms expire. Allegiant Air will then take over the MD-80 operations.
The Travel Industry Association yesterday launched a Web site, poweroftravel.org, that aims to disseminate hard data on the economic benefits of travel. Travel is one of the U.S.'s largest exports, but "it is surprising how many policymakers are not fully aware of the power of travel in their own districts" said Roger Dow, TIA president.
The European Commission plans to negotiate visa policy with the U.S., but member states will be allowed to negotiate bilaterally on some issues, EC Vice President Jacques Barrot told the European Parliament yesterday. The "two-track" strategy will allow member states to hammer out bilateral agreements with the U.S. on some issues — particularly those relating to national security, Barrot said. But Barrot reiterated that visa policy is something the European Union will negotiate with the U.S.
Delta has joined the rest of the industry by announcing more capacity cuts, blaming a continued rise in fuel prices for the move. The Atlanta-based carrier originally announced fleet retirements as part of its capacity cut effort at a JP Morgan conference March 18, when Delta President and CFO Ed Bastian announced plans to cut 15-20 mainline and 20-25 regional jets (DAILY, March 19).
