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While BAA agrees with the U.K Competition Commission that the current regulatory system is outdated and needs reform, it feels it is in passengers’ best interest to allow it to keep control of its U.K. airports.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).
Southwest, already set for a big expansion in its service from Denver in May, will further increase its presence there by adding twice-daily nonstops to Portland and Indianapolis June 4, the airline said Monday; it will also begin offering an eighth daily flight to Las Vegas June 4, and will add a second daily flight to San Antonio Aug. 23.
Corsairfly, the second-largest scheduled and charter airline in France, recently inaugurated weekly Boeing 747-400 service from Paris to Havana and beyond to Mexico’s Cancun. Corsairfly now plans to expand operations to other resort destinations in Cuba through a three-year marketing agreement with the Cuban ministry of tourism, Cubana de Aviacion and major French tour operator Nouvelles Frontieres, which is handling promotion and sales of the island’s tourist attractions and facilities through some 3,000 agents and other sales outlets in France and Europe.
China’s civil aviation administration has withdrawn a range of service rights held by China Eastern Airlines as punishment for bad management of a labor dispute that culminated in pilots turning back flights last month.
Delays in 787 production and its disputed loss of the U.S. Air Force KC-45 tanker competition haven’t dimmed Boeing’s outlook for 2008 or hurt its first-quarter performance, the company said Wednesday.
Airbus Americas Chairman Allan McArtor yesterday in Washington stressed the need for aerospace companies to collaborate on environmental plans to prevent the industry from being demonized in the U.S. as it has been in Europe. McArtor made this argument on the same day — Earth Day — that Airbus and Boeing announced a new agreement to work together on air traffic management programs to make aviation more environmentally friendly. The two companies are planning to help governments synchronize ATM programs to mitigate emissions.
Airbus is raising list prices across its commercial aircraft portfolio. Prices are up 2.74% from their 2007 levels to reflect inflation. Additionally, Airbus A320 family aircraft will be US$2 million more expensive, while the price tag for widebodies, including the A380, is upped by US$4 million per unit. Airbus says the increases reflect the weak dollar and higher costs for metal.
United yesterday announced plans to cut its fourth-quarter capacity even further in an effort to reverse its worsening financial losses; the carrier will also reduce employee numbers by about 1,100 this year. During its fourth-quarter earnings call, the airline said it will eliminate 30 aircraft from its domestic mainline fleet after the summer travel season. It is still deciding exactly which aircraft to remove from its fleet, but they will be predominantly its oldest and least fuel-efficient Boeing 737s.
Aeroports de Paris traffic rose 2.2% to 7.2 million passengers year over year in March fueled by a hike in European and international routes at Paris Charles de Gaulle Airport. CDG traffic was up 3.3% to 5 million passengers, while Paris Orly fell 0.1% to 2.2 million passengers. Orly also posted a 7.3% decrease in domestic traffic due to a drop on the Strasbourg route.
