Aviation Daily

By Bradley Perrett
The Pacific Blue unit of Australia's Virgin Blue started New Zealand domestic services last week, flying a triangular route between Auckland, Wellington and Christchurch. The initial Pacific Blue domestic schedule comprises a total of 10 daily roundtrips among those cities. Its competitors in this market are Air New Zealand and Qantas.

Staff
Tapped Kevin Brady to become senior technical consultant, effective Nov. 5.

Staff
The Travel Industry Association of America is today expected to release results of a survey of 1,200 voters in South Carolina and Florida that finds they would vote for a presidential candidate who addresses travel industry issues. The survey polled both Republicans and Democrats.

Staff
Growth in Mexico's air transport industry has outstripped increases in the country's GDP since 2002, and this growth is expected to continue, an IATA economics report shows. Export earnings from the air transport sector fueled the Mexican economy to the tune of $9.38 billion last year, and IATA expects the country's growing connectivity to the global air transport system to yield even further GDP gains.

Benet Wilson
The rising cost of fuel will force change on the airline industry and boost talk of consolidation, predicted new AirTran CEO Robert Fornaro in a speech before the BWI Business Partnership yesterday. Most legacy carriers will see their hedges end next year, said Fornaro. "As fuel costs rise, we'll see fares go up, capacity cut, fewer customers and higher prices," he warned.

Staff
Hainan Airlines has taken delivery of its first Airbus A330, which is quickly becoming a standard workhorse type among the carrier's three larger local competitors. Hainan's first A330, an A330-200 fitted with 222 seats in two classes, has been leased from CIT Aerospace. Like all other A330s in mainland China and Hong Kong, it is powered by Rolls-Royce Trent 700s.

By Adrian Schofield
Delta CEO Richard Anderson last week promised lawmakers the carrier will ensure staffing and equipment are available to ensure a smooth operation over the holiday period.

UPS

Staff
Named Rudy Markham, the recently retired chief financial officer of Unilever, to its board of directors.

The City of New York

Staff
Japan Airlines will raise its fuel surcharge from Jan. 1, with most routes seeing a 20-30% increase. The surcharge will rise to $141 per person from $108 for flights between Japan and the U.S. Supporting the move, the airline cites an average Singapore jet kerosene price of $90.65 per barrel in the three months to August. The surcharge will be cut if the price of fuel falls and will be canceled altogether if the price goes as low as $45 per barrel.

Staff
Named CFO Marcus Hedblom to take over as CEO of Spanair, as Lars Nygaard left the company to assume a new position outside the SAS Group.

Staff
TSA is revisiting the list of items banned from passenger carry-on bags. Administrator Kip Hawley says the agency will coordinate with authorities in Canada, the European Union and elsewhere "so that we can have a common framework." Noting TSA has already eliminated small scissors and tools and cigarette lighters from the list, Hawley says he wants to get away from a checklist mentality. "We need to look for the person who's bringing a novel threat," he says.

House

Staff
Senior VP and Chief Information Officer Shirley Bridges was named the 2007 Georgia CIO of the Year by the Georgia CIO Leadership Association.

Benet Wilson
Some elements of the European Parliament's plan to cut greenhouse gases in half by 2050 have come under fire by Airports Council International-Europe (ACI-E). The Parliament last week voted to make the rules governing aviation's inclusion in the emissions trading scheme (ETS) more stringent (DAILY, Nov. 14).

Staff
Hired RiechesBaird, a business/ brand consulting group, to provide business strategy, brand development, integrated marketing, creative development, design and production services for the company.

Staff
Appointed Senior VP-Finance and Principal Accounting Officer Ed Barnes as interim chief financial officer, in the wake of Executive VP-Corporate Services and CFO John Harvey's resignation from the airline.

Benet Wilson
Airports operator BAA saw its operating profit drop 18% in the first nine months of 2007 to GBP544 million (US$1.1 billion). BAA blamed the drop on a GBP34 million loss due to currency rates on its sale of Budapest Airport, along with costs associated with the new Terminal 5 and depreciation on Terminals 1 and 2.

Benet Wilson
U.K. Transport Minister Ruth Kelly has agreed to lift the one carry-on bag limit currently in place at airports from Jan. 7, 2008 -- but only if facilities submit plans to show that they have the equipment in place to detect dangerous items.

Staff
To list an event, send information in calendar format to Ingrid Lee at [email protected] NOV. 20 -- European Aviation Club luncheon featuring Leo Van Wijk, Vice-chairman Air France-KLM, Hotel Bristol Stephanie, Brussels, e-mail: [email protected] NOV. 27-28 -- AVIATION WEEK Forums: VLJ West, San Diego, 212-904-2997, e-mail: [email protected]

Lori Ranson
Copa Airlines management has no concerns about the slide in domestic market share of its Columbian subsidiary AeroRepublica, opting instead to build the airline's international presence. During a call with analysts yesterday COPA CEO Pedro Helibron acknowledged a reduction in AeroRepublica's domestic market share. He said the carrier's main competitor had been increasing capacity. Helibron explained that AeroRepublica fits well into Copa's network and the Columbian airline was "never intended to dominate the domestic market."

Jennifer Michels
US Airways has been banned from selling alcohol to passengers in the air or on the ground in New Mexico by the state's Regulation and Licensing Department.

Annette Santiago
The latest figures from the U.S. Transportation Dept.'s Bureau of Transportation Statistics show the country's airlines are on track to carry a record number of passengers this year if growth continues at its current rate.

Oliver Wyman

Staff
Americans are buying more travel insurance, and airlines are taking a small but growing slice of those profits, according to the US Travel Insurance Association. In 2006, $1.3 billion was spent on insurance in the U.S., with online sales by agents, airlines and brokers doubling from 2004 to 2006. Travelers to the Caribbean were most likely to purchase insurance.