Aviation Daily

Neelam Mathews
The rush to Southeast Asia is on -- overbookings are up nearly 20% and the winter vacation season barely started -- and Singapore Airlines, Thai International Airways and Korean Air are hoping India will give them additional frequencies to fill the gap between supply and demand for seats. Passenger traffic between Singapore and India grew 17.5% between January and August this year, compared with the previous year, Changi International Airport said.

Staff
Volga-Dnepr has received its first Boeing 747-400ERF freighter. AirBridgeCargo will operate the aircraft that are taken on lease from GE Commercial Aviation Services. The initial service is between Russia and Hong Kong. Plans call for AirBridgeCargo to operate two more 747-400ERFs; the company also flies four 747-200Fs and one 747-300F. Moreover, five 747-8s are on order for delivery between 2010 and 2013. The second -400ERF is to arrive in February, for operations to North America and Europe. The U.S.

Luis Zalamea
Volaris CEO Enrique Beltranena believes the combination of a growing market and lower fares is preventing consolidation and cost adjustment at many carriers, and said Mexico's airline industry, the second-largest in Latin America, may lose almost US$500 million in 2007. "The main challenge for the sector is becoming profitable," he told El Universal.

The City of New York

Neelam Mathews
Jet Airways would begin code sharing with American on Jan. 16, subject to regulatory approvals. Jet Airways will place its 9W designator code on certain American domestic flights out of New York Kennedy Airport. The two carriers are terminal-mates at JFK, and Jet operates daily flights between India and JFK via its Brussels hub.

Staff
The U.S. Transportation Dept. yesterday assessed a fine of $115,000 against Delta relating to the provision of on-time arrival performance data. Hawaiian and JetBlue have received similar penalties this year.

Staff
Vietnam Airlines on Friday made final an order for 12 Boeing 787-800s, with the airline buying four and the newly formed Vietnam Aircraft Leasing Co. taking the other eight. The airline originally signed a firm agreement for four 787s in June 2005. The first of those four will be delivered by late 2009. The airline intends to operate 20 787s by 2015 and 28 by 2020 (DAILY, Oct. 2).

AeroQuest USA

Annette Santiago
Caribbean Star operated its final flight last Thursday, but sister airline Caribbean Sun still flies on, with plans to pursue a new business model and use a different aircraft type.

Robert Wall
Aer Lingus has formally asked the European Union's legal system to again step in and force a sale of its shares by rival Ryanair. The Irish low-fare carrier holds almost 30% of Aer Lingus as part of its so-far failed effort to take over the network carrier. The EU initially said it had no jurisdiction over the matter, but Aer Lingus is taking an appeal to the EU Court of First Instance.

Seabury Airline Planning Group

Jennifer Michels
The three global airline alliances -- Star Alliance, SkyTeam and oneworld -- are courting more partners as consolidation looms and aviation growth in China, India and the Persian Gulf regions drives demand for global coverage.

Staff
FAA's recent notice that it will use military airspace to help relieve holiday air traffic congestion is not a new approach. A search through the agency's press release archive shows FAA turned to East Coast military airspace twice before. On March 10, 2000, under a severe weather plan, FAA said it would "make better use of military airspace off the East Coast...allowing alternative north-south routings." And in May 2002, FAA said it would make "more and better" use of military-controlled Virginia Capes airspace as part of a summer air traffic initiative.

Robert Wall
The SAS Group has named Lars Lindgren the new executive chairman of its Spanair unit and Lars Sandahl Sorensen to replace Lindgren as CEO of SAS International, effective Nov. 26. Former Spanair boss Lars Nygaard was named the new CEO of Vueling last week. [email protected]

Staff
Saudi Arabian low-fare carrier Sama has begun international operations. The first destinations are to Abu-Dhabi and Sharjah in the United Arab Emirates.

Oliver Wyman

By Bradley Perrett
South Korean turboprop operator Jeju Air plans to introduce 15 Boeing 737-800s, setting itself up as a competitor to the franchisee budget airline that Tiger Airways hopes to establish in the country. The 737-800s, some of which will be leased, will support international services, says Jeju. Two leased aircraft will arrive in April, with the full fleet to be in service by 2013. Jeju, which now operates four Bombardier Q400s domestically, already describes itself as a budget airline.

Staff
Swiss International Air Lines is moving its operations at New York Kennedy Airport to Terminal 4 from Terminal 1. Service from the new facility will start Dec. 20.

By Bradley Perrett
Qantas is renewing its drive to cut labor costs, setting up a subsidiary that could bypass union agreements in hiring new cabin staff, potentially from overseas. Such a move would introduce the low-cost staffing arrangements of budget subsidiary Jetstar into the mainline carrier's operation.

By Jens Flottau
The Jordanian government is privatizing the country's national carrier, Royal Jordanian. A 71% stake in the airline is to be sold to international and local investors, the government said in a statement yesterday. Shares are offered at JOD2.75 to JOD3.40 (US$3.88-US$4.80). If the top price in the range is achieved, the government would receive about US$288 million for the majority stake in the airline.

By Adrian Schofield
The National Air Traffic Controllers Association is highlighting two operational errors within four days at its Chicago center, although FAA argues against accusations that understaffing is causing problems. On Nov. 17, two private aircraft violated separation standards in Chicago center airspace, and four days earlier two commercial jets were involved in a similar conflict due to a controller error, NATCA said. According to the union, there were four serious controller errors in the first six weeks of the current fiscal year, compared with one in FY2007.

Jennifer Michels
The Travel Industry Association of America (TIA), the National Tour Association (NTA) and the Travel Business Roundtable found that travel is critical to voters in four separate surveys of Republicans and Democrats in Florida and South Carolina who want presidential candidates to address travel issues. The TIA reports that 70% of those surveyed believe it is possible to reduce wait times in airports and still maintain a high level of security.

Robert Wall
The new board of Spain's low-fare carrier Vueling has named Lars Nygaard to become the new CEO. The appointment is the latest in a series of personnel changes for the struggling airline, which faces a major shareholder meeting Nov. 26 to determine its future. The new board, which has already been named, also is to be approved at that time. Nygaard previously worked at SAS and later at its Spanair unit. The Dane became Spanair's CEO in 2005 after serving as commercial and financial director. Nygaard will take up his post at Vueling on Jan. 1.

Neelam Mathews
Pakistan's Airblue has signed a firm order for eight Airbus A320 aircraft, bringing the airline's total order for A320s to 14; in late November 2006, Airblue signed firm contracts for six Airbus A320s. "This is the largest ever order for outright purchase of brand-new aircraft by any Pakistani private sector carrier," Airblue's CEO Shahid Khaqan Abbasi said.