Rising jet fuel prices will dampen Delta’s fourth-quarter results, along with those of the rest of the industry, said president and CFO Ed Bastian at the Calyon Securities U.S. Airline Conference yesterday.
Continental said it is not yet seeing any sign of the downturn that is worrying the U.S. aviation industry, although the carrier still reduced capacity growth forecast for next year due to higher fuel prices.
Southwest yesterday reduced its capacity growth plans for next year, due to higher oil prices and concerns about an economic slowdown, and revealed its intent to speed up retirement of older Boeing 737s.
After 15 months of making superhuman efforts and forfeiting wages and benefits to keep the airline alive, workers in control of Lloyd Aereo Boliviano (DAILY, Nov. 13, 14, 15 ) were caught in a fast-closing maze of lawsuits, unfulfilled commitments, and zero resources.
United has not been dissuaded by union groups opposed to selling off or disaggregating its non-core businesses, and says the top priorities of executives is to focus on the core business.
Emirates plans to add two more markets in the U.S. in its next calendar year, said chairman and CEO, Sheikh Ahmed Bid Saeed Al-Maktoum in remarks commemorating the beginning of service between Houston and Dubai Dec. 3.
Ryanair will write down the value of its stake in Aer Lingus in the “not too distant future,” CFO Howard Millar said yesterday. The airline bought a 29% stake in its rival at EUR2.50 a share, but the value has recently been down to below EUR2. Ryanair has been trying to buy Aer Lingus in a hostile takeover bid, but was blocked by Aer Lingus shareholders and the European Commission. Ryanair has appealed the decision.
LAN this month launched Business Express Class on flights between Peru and Quito, Bogota and Caracas and plans to expand the offering to regional flights within South America next year. Similar to the model used by European carriers to cater to the special needs of business travelers on flights less than four hours long, LAN’s version will include express check-in at separate counters and through the Internet, access to VIP lounges, preferential boarding and priority deplaning, baggage delivery and other time-saving provisions.
Delta’s combination of increased international flying and domestic capacity cuts have helped make it the fastest-growing and most profitable network carrier, said President and CFO Ed Bastian at the Calyon Securities U.S. Airline Conference yesterday.
The four Latin American airlines that have gone public were all profitable in the third quarter and the year to date, reports DAILY affiliate AvNews Latin America & Caribbean . Panama’s Copa had the highest operating margin of the foursome in both the third quarter and for nine months at 17.7% and 19.8%, among the industry’s best. Chile’s LAN also recorded double-digit operating margins of 11.6% and 11.4%, respectively. TAM and GOL were both profitable, but margins were down significantly from 2006.
Four U.S. carriers are in the top 10 worldwide airlines that have implemented interline electronic ticketing, IATA data show. Northwest leads the pack with 118 IET agreements; Singapore ranked second with 109, followed by British Airways (108), Delta (103), Continental (102), Korean (94), Swiss (90), KLM (89), American (87) with Air Canada rounding at the top 10 with 83. IATA says it is on track to meet its June 1 deadline for 100% e-ticketing (DAILY, 10/1). [email protected]
The International Brotherhood of Teamsters (IBT) have filed a petition with the National Mediation Board seeking to represent mechanics at United, an employee group currently represented by the American Mechanics Fraternal Association (AMFA). The Teamsters said yesterday they are seeking a vote to represent United's mechanics and that the vote is expected in six weeks.
More routes are being opened in North America with Kingfisher Airlines now planning to operate the first nonstop Delhi-Vancouver flight in late 2008, The DAILY has learned. The announcement followed British Columbia Premier Gordon Campbell's mission to India in Delhi. "I look forward to the boost this new service will give to tourism and business in both B.C. and in India, and to offering British Columbian travelers the excellent service and comfort that Kingfisher provides," said Kingfisher Chairman Vijay Mallya.
Venezuela is "inexplicably restricting" the bilateral agreement that provides total and reciprocal air access by airlines from both countries, Colombian civil aviation department (Aerocivil) CEO Fernando Sanclemente complained.
FAA is testing a new system at Las Vegas Airport designed to improve the detection of dangerous "microburst" winds in dry climates. The system is called light detection and ranging, or LIDAR. According to an FAA employee newsletter, the latest phase of LIDAR tests finished Nov. 30, during which more than half of all possible types of windshear were detected. In the dry microburst category, LIDAR detected 91% of incidents.
The Regional Airline Association elected Republic Airways Holdings CEO and President Bryan Bedford chairman for the 2007-2008 board of directors. Trans States Holdings Rick Leach was named vice chairman, SkyWest's Chip Childs treasurer and Cape Air's Dan Wolf secretary. Also elected were American Eagle's Peter Bowler, Piedmont's Steve Farrow, Gulfstream International's Dave Hackett, Empire Airlines' Tim Komberec, Air Canada Jazz's Joseph Randall, Jim Ranking of Air Wisconsin, Skyway's David Reeve and Doug Voss of Great Lakes.
Ruag Aerospace is relaunching the Dornier Do 228 regional and utility turboprop, which has been out of production since 1998, and plans to deliver the first Do 228 new generation in early 2010.
Jeffrey Shane, U.S. Transportation Dept. undersecretary for transportation, has notified DOT Secretary Mary Peters and President Bush of his intention to leave the department, The DAILY has learned. President Bush appointed Shane to this position in March 2003, and from 2001, he served the department as associate deputy secretary of transportation. Shane has served in both DOT and the State Dept. in prior administrations.
The Air Travelers Association yesterday filed a formal complaint with the U.S. Transportation Dept. for DOT's denial of all of the association's proposals to ease New York airspace congestion. The New York Aviation Rulemaking Committee, chaired by DOT and involving industry representatives, has been meeting to consider ways to reduce the region's airline delays.
