The U.K.’s Civil Aviation Authority (CAA) will allow price caps at London Heathrow and Stansted airports to rise by 23.5% and 21%, respectively, despite opposition from the top five airlines serving both facilities. The agency was under pressure from airports operator BAA to allow the price cap hike to fund future development. But the top five airlines serving the airports — British Airways, Virgin Atlantic, BMI, Ryanair and EasyJet — claim that the increased prices exceed what is needed to spend to upgrade facilities.
Sharjah-based budget Air Arabia is adding its 11th destination in India and 39th globally to New Delhi, beginning March 31, four times a week, and daily starting May Air Arabia runs the largest destination network in India of any Middle East-based carrier. “New Delhi is one of the most vital financial centers in the South Asia region.…Air Arabia demonstrates its unmatched commitment to India, especially on behalf of the significant Indian expatriate population in the UAE and wider Gulf region. AK Nizar, Head of Commercial Dept., Air Arabia.
The European commission has formally ordered the Italian government to recoup a total of EUR450 million in interest-free loans to Italian aerospace manufacturers in support of 17 R&D programs.
Jet Airways “will join an alliance,” the carrier’s chairman, Naresh Goyal, says. The decision, however, is not due anytime soon — Goyal is looking at merger activity in the U.S. first before making a decision, he told The DAILY at the ITB travel fair in Berlin. Goyal did not rule out joining the Star Alliance, which has invited Air India as a new member (DAILY, Dec. 14). Goyal supports the merger of Air India and Indian Airlines, which he describes as “a very good thing. I believe in consolidation which brings some sense in pricing.”
Four more airlines will move into the new Terminal 3 at Singapore Changi Airport on March 28. Joining Singapore Airlines in the terminal will be China Eastern Airlines, Jet Airways, Qatar Airways and United Airlines. The airport is currently conducting trials at the new terminal to prepare carriers for the move.
Frontier saw its yield drop in February, but unit revenue still climbed 5.6% during the month, based on a solid load factor gain. Mainline traffic was up 18.1% on a 7.5% capacity hike, resulting in load factor growing seven points to 77.8%. Yields dropped 3.9%. Subsidiary Lynx reported a load factor of 58.2% for February.
Pemco World Air Services on Monday said it is offering Boeing 767 passenger to freighter conversions and that it has acquired Wagner Aeronautical, Inc., a California-based conversion engineering firm, as part its strategy.
Marked growth in the Midwest Connect operation helped to offset a dip in passenger traffic at Midwest Airlines, figures from Midwest Air Group show. Connect traffic was up 165.7% year over year to 46,121 revenue passenger kilometers in February 2008. Scheduled service available seat miles rose 184.5% from February 2007 to 79,322. Load factor, however, dipped 4.2 points to 58.1%. At Midwest Airlines, traffic was down 2.5% to 284,462 RPMs, while capacity gained 0.6% to 403,993 ASMs. Load factor fell 2.3 points to 70.4%.
The German transport ministry has issued new regulations permitting the limited use of cell phones and wireless internet services in flight. Transport Minister Wolfgang Tiefensee points out that the enabling regulation also leaves the final decision on whether to implement cell phone operations on board rests with the airlines.
SAS will buy 27 Bombardier regional jets and turboprops as part of a settlement between the airline and aircraft maker over problems that occurred last year with the carrier’s fleet of Q400s. After three accidents, SAS removed from service its entire Q400 fleet. The carrier has since been in a dispute with Bombardier and landing-gear maker Goodrich. Exact details of the financial settlement are not being disclosed, although SAS says the value tops $164 million, including credits for new aircraft.
Great Lakes’ traffic was up 16.7% on 18.9% more capacity in February. The airline generated 12.26 million revenue passenger miles and 27.12 million available seat miles in February. Load factor fell 0.9 percentage points to 45.21%, and preliminary revenue per available seat miles was up 6.2% to 30.17 cents. Great Lakes carried 45,517 passengers in February, up 16.4% from February 2007.
Worsening market conditions have prompted FAA to scale back airline growth predictions for the short term, which has also dampened the 20-year outlook. In its annual aerospace forecast, which this year extends through 2025, FAA estimates Fiscal Year 2008 will see traffic growth of 2.9%. In last year’s forecast, FAA projected FY2008 traffic would be up 4.2%. Near-term projections have been hit by higher-than-expected oil prices and the slowing of the U.S. economy, FAA Policy and Plans Director Nan Shellabarger said.
Qatar Airways is looking at developing a larger narrowbody portion in its fleet. “Fifteen percent of our future fleet will be narrow-bodies,” CEO Akbar al-Bakr told The DAILY at the ITB travel fair in Berlin. Qatar is considering an order for up to 20 Bombardier C Series (including options) or a similar number of Embraer 190 family jets. But al-Bakr says the “aeroplane (C Series) is not yet defined.” The airline also anticipates that it will be one of the early customers of a Boeing 737 or Airbus A320 family replacement.
The U.S. Transportation Dept. yesterday issued a rule capping peak-time flights at Newark Airport at 83 an hour, a rate DOT believes is optimal for Newark but well below scheduled flight levels seen last summer. DOT has already held discussions with airlines about the cap, and reached agreement on the 83 rate, Transportation Secretary Mary Peters said at the FAA Aerospace Forecast Conference yesterday. The proposed rule will be open for comment for two weeks, then will be in force 30 days later. It will be in effect for two years.
Southwest is already talking to potential candidates for international code-share service as the carrier works to make its own systems able to handle such a link by 2009, Southwest CEO Gary Kelly says.
Pinnacle will assume ASA’s Delta Connection flights between Atlanta and Providenciales, Turks & Caicos, this summer. The Pinnacle flights represent a slight capacity boost, as the airline would use its 76-seat CRJ-900s for the flights. ASA currently uses 70-seat CRJ-700s. The carrier would begin operating the year-round, six-times-weekly service on June 9, supplementing the Saturday service operated by the mainline carrier, Pinnacle told the U.S. Transportation Dept. The airline needs an exemption to operate the services. [DOT-OST-2008-0086].
Miami Airport will be the location for this year’s trials of tailored arrivals on transatlantic flights, according to FAA and U.s. Transporttion Dept. officials. DOT plans to make Florida the main “test-bed” for next-generation ATC systems and procedures. As well as tailored arrivals — otherwise known as continuous descent approaches — at Miami, Daytona Beach Airport will see other NextGen technology, and automatic dependent surveillance-broadcast will be introduced along Florida’s Gulf Coast.
The U.S. Transportation Dept. last week revoked the interstate certificate authority belonging to Alaska’s Baker Aviation Inc. The company, which flew cargo and charter services, conducted its last flight on Dec. 31, 2005 [DOT-OST-2008-0084].
US Airways’ consolidated traffic increased 2.4% from February 2007 to February 2008, as growth in the airline’s Atlantic and Latin market offset declines in the Express operation. The airline generated 4.62 billion revenue passenger miles in the month, while consolidated capacity was up 1.8% year over year to 6.02 billion available seat miles. As a result, consolidated load factor gained 0.4 points to 76.7%. Consolidated passenger revenue per available seat miles was up 2%-4%, US Air President Scott Kirby said.
Alaska Air Group said it managed to repurchase about 10% of the company’s outstanding stock during its $100 million buyback program. The company bought 4,113,782 shares at an average price of $24.31 per share.
Austrian Airlines’s main shareholder ÖIAG cleared the entry of Mohammed bin Issa al-Jaber as a new investor for the airline. Al-Jaber proposed to take a 20% stake in the airline earlier this year in a capital increase. The move still needs to be approved by Austrian’s board of directors and the annual shareholder meeting. ÖIAG holds a 42% stake in the carrier.
