Three key European transport ministers have agreed to coordinate their agendas for the next 18 months, in the hope of bringing about important changes for the EU’s agenda.
With competition on the rise, Colombia’s air carriers are using a combination of fleet, fares and routes to help win new passengers. Although airlines vary in size, none is ready to yield space to the next. While Avianca now covers all of Colombia through a strategic alliance with state-owned Satena, others, like AeroRepublica, Aires, EasyFly, Aerolineas de Antioquia and Satena, are eager to get a piece of the pie, which last year amounted to nearly 8 million passengers, an increase of 5.5% from 2006.
Airbus analysts believe network carriers will still account for most of the new aircraft orders in the U.S. over the next 10 years, although low-cost carriers will see much more rapid growth. Airbus sees the U.S. LCC sector growing at an average of about 6% a year for the next 10 years, compared to domestic growth of just 0.2% for network carriers. However, 60% of the demand for new aircraft in the U.S. will be from network carriers, which are faced with replacing a significant portion of their fleets.
International passenger traffic growth slowed markedly in January, which the International Air Transport Association believes could be the first sign of an industry slowdown which has IATA seriously considering another downgrade in its profit predictions. Traffic was up 4.3% for the month, down significantly from the 6.7% growth in December and the 7.4% for full-year 2007. However, capacity growth was held to 4.2%, which meant load factors improved slightly to 75.1%.
AAR Corp. yesterday said it has signed an agreement to acquire Miami-based Avborne Heavy Maintenance, Inc., in a deal that will give AAR a fourth major airframe overhaul facility, add new customers to its roster and expand the breadth of its capabilities. Financial details were not released, but AAR expects the deal to close well before the end of its current fiscal year on May 31. AAR plans to retain Avborne’s current management.
AirTran yesterday announced it will begin flying to San Antonio this summer, in the process fulfilling its vow to introduce at least three new destinations to its network this year.
The U.K.’s Office of Fair Trading is asking for input on the proposed takeover of VLM Airlines by CityJet, the Air France-KLM regional adjunct. Air France-KLM agreed to buy the Belgian regional airline from Netherlands-based Panta Holdings in December, in large part to strengthen its presence at London City Airport. Air France-KLM outmaneuvered British Airways, which was also interested in the carrier.
The European Union and Jordan yesterday signed an aviation agreement that allows airlines to fly between the Middle Eastern country and any EU member state. The deal does not, however, replace any existing bilateral aviation agreements between member states and Jordan. Instead, it is what the EU calls a “horizontal agreement,” which removes nationality restrictions from existing bilateral agreements. Doing so brings existing bilaterals in line with European law. Removing nationality restrictions has been a tenet of EU aviation negotiations.
Cargo volume for Gollog, the cargo transport service for Brazil’s GOL and Varig (VRG), shot up 37.1% from 2006 to 2007 to 56,500 tons, the cargo unit reported. Gross revenue for the year stood at BRL172 million (US$101 million), up 36.4% year over year.
The International Association of Machinists and Aerospace Workers said it has joined with the Coalition for an Airline Passengers Bill of Rights (CAPBOR) to oppose “ill-advised” mergers. Without naming any airlines, IAM General VP Robert Roach said airline employees and their customers have the right to be concerned about the negative impact of consolidation. Kate Hanni, founder of CAPBOR, said, “Combining two major airlines with diverse corporate cultures is a recipe for disaster.”
American and its pilots union next week will move into a new phase in their contract negotiations, with the two parties beginning a series of meetings facilitated by the National Mediation Board. In a compromise deal, American and the Allied Pilots Association asked the NMB for five weeks of facilitated meetings, beginning March 10. The NMB agreed, and has assigned a facilitator. American intends to hold a preliminary session with the facilitator Feb. 28. This is still one step short of formal mediation controlled by the NMB.
Air Caraibes has selected Pratt & Whitney PW4000-100 engines to power three new Airbus A330-300s. The deal, which also includes a 10-year fleet management program, is worth US$180 million, Pratt said. Air Caraibes already has PW4000-powered A330s in its fleet.
The National Transportation Safety Board, following up on the FAA’s investigation into Go Airlines’ Feb. 13 overflight of its destination airport, found that there were no mechanical problems with the Bombardier CRJ-200 used in the service.
Mexican airport operator Grupo Aeroportuario del Sur (ASUR) registered a MXN190.84 million loss (US$17.7 million) for the fourth quarter as a result of changes in Mexico’s tax law. Net income for the full year 2007 fell 4.67% from 2006 to MXN548 million (US$51 million).
Pratt & Whitney on Feb. 20 signed a memorandum of understanding to maintain Jetstar Asia Airways’ fleet of IAE V2500-A5 engines on an exclusive basis for three years.
Traffic in Alitalia’s cargo and passenger operations dipped 8% and 3.8%, respectively, in January 2008. The airline attributed the declines to “a change in a marketing strategy, which aims to increase profitability rather than preserve volumes.” Alitalia said the change has resulted in increased yield levels, but it did not release those figures.
The U.S. Transportation Dept. fined tour operator Ritz Tours $55,000 for failing to disclose additional fuel surcharges and other taxes and fees on its printed brochures and mailers that appeared on its Web site and in direct e-mail ad campaigns during 2005, 2006 and 2007. Half of the fine is due March 1, while the remainder will be suspended for one year [DOT-OST-2008-0031].
FAA is turning its attention to reducing aviation emissions in Asia, Acting Administrator Robert Sturgell announced last week at the Singapore Air Show. The agency is launching the Asia and South Pacific Initiative to Reduce Emissions (ASPIRE) program, which aims to reduce fuel burn and increase efficiency in the region. “We will aspire to fly green,” Sturgell said in a speech at the show.
