Brazil’s airport regulator Infraero, hoping to maintain stability in the local sector after a year of safety crises, will take preventive action to nip trouble in the bud that could see the regulator getting involved in the nitty-gritty of airline operations.
American once again cut its domestic capacity in February, but overall capacity increased due to a boost in international flying. Consolidated capacity was up 2%, with traffic rising 2.5% and load factor improving by 0.3 points to 76.9%. Domestic traffic fell 0.5% on a 0.2% capacity cut, resulting in load factor dropping 0.3 points to 78.8%. International traffic was up 8.4%, with capacity increasing 6%. International loads gained 1.6 points to 73.6%. American Eagle, meanwhile, saw February traffic drop 2.4% and capacity 1.9%. Load factor sank 0.4 points to 69%.
Brazilian sister carriers GOL and VRG (Varig) together increased systemwide capacity some 64.2% from February 2007 to February 2008 but saw their loads fall as traffic failed to keep pace with the additional seats. Systemwide revenue passenger kilometers jumped 35.6% year over year to 2.12 billion, while available seat kilometers in the month stood at 3.55 billion. Load factor plunged 12.6 percentage points to 59.7%. Domestic traffic was up 17% on 37.9% more seat offer, resulting in an 11.1 percentage point decline in loads to 61.7%.
Gulf Air will expand its 56 frequencies a week in India to 68, starting this summer. The carrier was granted additional capacity following a bilateral agreement giving Gulf Air operating rights to Hyderabad on a daily basis. The airline has also been given additional rights for daily services to Kochi and Kolkata and increasing flights to Delhi to 10 a week, Gulf Air General Manager for India Rajeev Nambiar told The DAILY.
A consortium of six Colombian companies and their strategic partner, Chinese state-owned Capital Airport Holding Co.(CAH), won a concession to upgrade, develop, maintain and manage six airports in Western Colombia.
The first U.S. built Airbus A330-200F freighter is slated to roll off the planned Mobile, Ala., final assembly line in 2011, along with five KC-45A tankers for the U.S. Air Force. The assembly facility is being built as part of the Northrop Grumman/EADS win last week of the USAF KC-X program. The loser, Boeing, will be debriefed today on the reasons for its defeat, which could still spur a legal challenge of the award.
Canadian pension plan executives say they will continue their partial takeover bid for Auckland Airport despite New Zealand government policy change which make it tougher for the takeover to succeed.
Bogota’s Eldorado Airport recently drew attention recently because of the Osain concession (DAILY, Feb. 11), but one local paper says faulty radars should be more of a concern.
SAS is planning a 20% cut in carbon emissions from 2007 levels by 2020, even as it predicts 4% annual passenger growth rate. In the near term, the carrier plans to achieve this reduction by focusing on ground operations, including switching to more fuel-efficient company cars. Longer-term, SAS says it will shift its attention to fleet upgrades to more efficient aircraft and engines as well as pushing for the Single European Sky process to reach completion.
The Senate Commerce Committee plans to explore the state of the airline industry in a hearing next week. Air carriers continue to face significant challenges despite earning an estimated net profit of roughly $3.5 billion last year, committee staff said. Among those challenges: high fuel prices, growing competition, and severe congestion and delays. No witnesses have been announced yet for the March 13 hearing.
John Byerly, deputy assistant secretary of state for transportation affairs, and Daniel Calleja, director, Air Transport Directorate of the European Commission, are the winners of this year’s Aviation Week Laureate in the commercial air transport category. Byerly and Calleja were recognized for their work leading the negotiating teams that crafted a historic aviation liberalization agreement last April. Byerly was on hand March 4 to accept the award on their behalf in Washington, D.C., at the 51st Annual Laureate Awards ceremony.
Strong yield growth helped offset cost increases for Cathay last year, and the increase was instrumental in boosting 2007 profits by 72%. Premium passenger demand was strong throughout 2007, and yields were up 11.1%, Cathay said. The annual profit rose to a record HK$7 billion (US$898 million), compared to HK$4.1 billion in 2006. Group executives noted the group is beginning to see the benefits of the addition of Dragonair.
The European Union remains firm in its position that all 27 member states should be included in the U.S. Visa Waiver Program, the Council of the EU said yesterday. Furthermore, the EU reiterated its belief that any negotiations on visa policy should be conducted at the EU level. Member states should not negotiate with the U.S. on a bilateral basis.
Southwest Airlines is in discussions with Boeing to build a 737-700 “plus” as the manufacturer develops the next generation of aircraft to replace the 737, CEO Gary Kelly told The DAILY.
While Airports Council International-North America (ACI-NA) agrees with FAA that additional capacity will be needed to meet future traffic demand, the agency’s notice of proposed rulemaking does not adequately identify the specific benefits of Automatic Dependence Surveillance-Broadcast (ADS-B)/Out technology.
Bolivia’s privately owned startup Aerolineas Sudamaricanas (AS) last week launched domestic services in Bolivia after obtaining its long-awaited operating license. Unfortunately, Los Tiempos reported a fissure on a cabin window on an inaugural flight by its only aircraft, leading to the cancellation of two Santa Cruz-La Paz flights while it was repaired. The airline was later slapped on the wrist for this incident by Transport Superintendent Abdon Porcel, who urged the fledgling carrier to watch passenger safety.
FAA yesterday said it will attempt to collect a $10.2 million fine from Southwest for failing to inspect 46 737s for fuselage cracks, and the airline is also being slammed on this issue by prominent lawmakers.
ATA yesterday said it will drop its remaining Chicago Midway scheduled service, which also means the airline will lose its two Mexican routes. The Midway operation “just wasn’t feasible anymore,” an ATA spokesman told The DAILY. ATA’s Midway operation was down to just one gate and the equivalent of two aircraft and five daily departures, after the carrier dropped East Coast routes last year and at the start of this year. The bulk of ATA’s scheduled flying is devoted to its West Coast-Hawaii flights.
A coalition of 35 transportation and business organizations is pressing the U.S. Senate to make reauthorization of the FAA a legislative priority this session. Congress has been continuing FAA reauthorization through a series of extensions, the latest passed in mid-February, since the agency’s authorization ran out last year. Congress has until June 30 to adopt a long-term reauthorization bill.
KLM has become the newest member of the airline carbon offset club, offering the new CO2ZERO program. The Dutch carrier used the recent international Dialogue Event to unveil the program, in which passengers can make up for their flight-related carbon dioxide emissions. KLM is integrating the program into its booking and online check-in process
The cost of airline insurance per passenger has been dropping steadily since reaching a record level after spiking in 2001 due to the attacks of 9/11, and it is expected to continue its slow erosion this year if current trends continue.
Sun Country Airlines yesterday named Stan Gadek as its new CEO and president, effective March 10. Gadek was formerly the CFO and senior VP of finance at AirTran. He announced in February that he was leaving that company, but originally planned to stay on until April 30. Because of this offer, he and AirTran agreed to speed up his departure.
