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Spirit is using an increase in checked bag fees as a way to pass off fuel cost increases without raising fares. The carrier is doubling its checked bag fee to $10 per piece if pre-reserved on its Web site and $20 if requested at the airport. Spirit said the new baggage policy “gives passengers the option to avoid the increased cost of travel due to rising fuel costs by packing lighter…less baggage means less weight, which translates to lower fuel burn,” the airline said.
The Joint Planning and Development Office — the multi-agency body tasked with creating a U.S. ATM roadmap — expects to release the latest version of its System Integrated Work Plan on Feb. 15. An industry review and comment period will finish March 28. The first version of another important document, the Avionics Road Map, is slated to be completed by JPDO in September. More work will be done on this plan into 2009 and 2010.
Virgin America’s new national campaign aims to convey elements of the carrier’s cabin design through advertising in traditional and non-traditional media. The carrier aims to tout its “stylish” cabin crew and interior design in its ads. “We wanted an experimental campaign that told that story with a wink and a smile,” Virgin America Marketing President Porter Gale said in a statement. “Our inflight teams are our best assets and look right at home in our stylish, mood-lit planes, so it seemed natural to create a campaign with them front and center,” he said.
Europe should still push for the second stage of an open-skies agreement with the U.S. and not be put off by presidential and congressional election campaigning in Washington, argues British Airways CEO Willie Walsh.
The premiums airlines are having to pay for jet-fuel were expected to dissipate at decade’s end when additional refining capacity is coming on line, but that may not happen, warns Shell VP-Aviation Fuel Sjoerd Post.
The European Commission “will address secondary trading (of airport slots) in a communication that will clarify the issue,” the European Union’s competition watchdog promised in the aftermath of a stakeholder hearing held last week in Brussels that included participants from European airlines, airports, business aviation and air traffic control authorities, as well as U.S. and Japanse airline delegates.
Record flight delays and drops in on-time performance spotlight the crisis in the U.S. air traffic control system and the lack of progress in developing new airport infrastructure in the United States, according to a new report from the Centre for Pacific Aviation. The report noted that delayed flights in the U.S. rose to their highest level last year since 2000, with 26.6% of flights delayed. “In 2000, 27.4% of flights were delayed. On-time performance dropped from 75.4% in 2006 to 73.4% in 2007,” it added.
Allegiant’s scheduled traffic in January jumped 55.9% on 47.3% more capacity, resulting in a 4.6 percentage-point gain in load factor to 82.4%. The airline carried some 302,000 passengers on its services, 58.7% more than flew on the airline in January 2007, and departures were up 45.8% to 2,504. Average stage length was down 0.2% to 906 miles, in line with plans to continue to reduce stage lengths in 2008.
Finnair ended 2007 in the black, with the focus this year on smoothing network operations and also fully recognizing savings from a long-term cost-reduction plan. The operating profit for the past year was EUR141.5 million, verus a EUR10 million operating loss in 2006, with revenues up almost 10% on a 6.6% hike in passenger volume. But discounts offered in new routes also caused unit revenue to fall 1.9%. The decline in unit revenue abated toward yearend.
Fly540 will get two further ATR 72-500s under a deal between the turboprop-maker and African investment company Lonrho. The purchase comes on top of last month’s order for eight aircraft of the type, all to be operated by Fly540. The expanding airline plans to service eight countries in Africa early this year. The carrier already has two ATRs in its fleet.
Frontier saw strong unit revenue growth in January, based on a load factor increase of 7.3 points. Traffic increased 18.3% for the month, far exceeding the 6.4% capacity growth. Passenger unit revenue climbed 11.7%, compared with last year, with yields increasing by just 0.3%. Enplanements were up 12.5%.
SAS sees a need to expand its Strategy 2011 (S11) restructuring program to combat the effects of an expected economic downturn and identifies other challenges ahead. The overhaul plan, although only launched last year, is no longer seen as sufficient, SAS management signalled in announcing 2007 results, which saw operating revenue increase 4.7%, to SKR54 billion, on a 2.9% rise in traffic to 31.2 million passengers. Net income of SKR636 million was recorded.
Athens International Airport has signed a consulting deal to help Beijing Capital International Airport (BCIA) and the Beijing Olympic Committee prepare to handle participants and travelers attending the 2008 Olympic and Paralympic games.
The Transportation Security Administration has unveiled details for an airport employee screening pilots at six of seven airports that will start this spring. Boston Logan and Jacksonville airports will run the 100% physical screening part of the pilot, the DAILY has learned. But Stewart Airport, also tapped to test 100% screening, declined to participate, citing its recent acquisition by the port authority and the need to look at its operations during the transition.
The Indonesian police’s arrest of a Garuda Indonesia Airways captain on manslaughter charges has reignited industry protests against accident criminalization.
IATA is asking FAA for a 30-day extension of the comment period on the U.S. Transportation Dept.’s recent congestion pricing proposal. The changes to the Policy Regarding Airport Rates and Charges is a “highly litigated area,” IATA says, so the association is asking for an extension until April 2 to consult with its member carriers and to study what effect the proposed changes could have on U.S. bilateral aviation agreements.
Korean Air blamed a 97% drop in 2007 net income — to US$11.6 billion — on weakness in its currency and skyrocketing fuel prices. The carrier’s operating revenue in the fourth quarter was up 8.9% to US$2.4 billion, while it ended the year at US$9.3 billion, up 9.1%, driven by growth in international passenger and cargo revenue.
Chinese airport charges will fall 5% under a new table of prices to take effect on March 1. Charges for Chinese airlines’ international services will rise, however. The Civil Aviation Administration plans to create a uniform system of charges in the coming five years.
The U.S. Transportation Dept. Bureau of Transportation Statistics reports that flight delays, mishandled bags and customer complaints were all up in 2007 from 2006. BTS reports that an average of 73.4% of flights arrived on time last year, compared with 75.4% in 2006. The 20 carriers that file with BTS also reported 7.03 mishandled bags per 1,000 passengers, up from 6.73 in 2006. BTS further reports that consumer complaints to the DOT were up 58.2% last year, reaching 13,168 complaints, compared with 2006’s 8,325.
Airports will see more advanced X-ray machines deployed under the Transportation Security Administration’s $6 billion FY2009 budget submitted by the Bush Administration. The budget includes $1.2 billion to speed up the installation of inline baggage-screening systems. TSA plans to help fund that effort by requesting a temporary, four-year hike of 50 cents in the passenger security fee, currently set at $2.50 per airline segment.
