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.
Qatar Airways is expanding its North American service with connections to Houston, its third U.S. city, starting in November. The carrier plans to use Boeing 777-200LRs on the Doha-Houston route, which will begin Nov. 10 with three weekly flights. Daily flights will follow in December. Boeing promises to deliver the first 777-200LR to Qatar in November.
ExpressJet posted a $31.7 million loss for the fourth quarter and a $70.2 million loss for the full year 2007 but the airline is confident its real-time outlook and re-tooling capability will result in improved results for 2008.
Alaska Airlines saw a healthy load factor gain of 2.6 points to 73.3% in February. The 13.5% traffic increase outweighed a 9.4% capacity hike. Meanwhile, Horizon Air saw traffic climb 4.7% on a 1.3% Capacity increase, resulting in load factor improving 2.3 points to 71.1%.
Expedia continues expansion into Asia with a new co-branded Web site in India. The company wants to increase its international revenue to half of its total revenue this year; in 2007, international revenue accounted for 32% of worldwide revenue. Expedia.co.in has been set up to allow for payment in Indian rupees, and comes with in-country customer care. It currently can book only hotels and attractions, but flights are coming soon.
Allegiant showed no signs of slowing down in February, as the airline posted improved traffic and loads in the month. Scheduled service revenue passenger miles jumped 54.8% year over year to 301 million. Capacity offer was up 45% from February 2007 to 348.7 million available seat miles. Load factor increased 5.5 percentage points to 86.4%.
Southwest Airlines has no plans to close any cities in 2008 despite a significant pruning of its schedules, said CEO Gary Kelly. There is a chance for new cities in 2008, “but not a good chance,” he said. “We’re becoming more aggressive and using cuts to grow opportunities like Denver or San Francisco.”
Atlantic Southeast Airlines named Lisa Walker VP-operational support division, Terry Vais VP-customer care and Kevin Wade VP-administration and resources.
ALPA’s Executive Council is taking corrective action to stop US Airways’ Philadelphia Local Council 41 -- its second-largest crew base -- from supporting a rival union by placing it into emergency trusteeship. ALPA believes this is only the second time in union history that this has happened. Three local ALPA officers were ousted by national President John Prater for helping the US Airways Pilots Association recruit. The latter union has secured the right to hold an election to bump out ALPA, and ballots will be counted on April 17.
A “twofold breakdown” – at Southwest and FAA – led to the agency’s $10.2 million civil penalty against the carrier, and FAA is undertaking damage control to make sure the lapses do not compromise voluntary disclosure programs, says FAA (DAILY, March 7).
