Virgin America has named David Cush as its new CEO, effective. Dec. 10, replacing Fred Reid, who was required by the U.S. Transportation Dept. to leave the airline for competition reasons in order to receive its operating certificate. Cush is a former senior VP-global sales for American Airlines, and during his 20 years there also served as VP of the St. Louis hub and VP-international planning and global alliances. He also has served as chief operating officer of Aerolineas Argentinas.
Korean Air will start a budget airline in May with an unconventional fleet of three Airbus A300s and two Boeing 737s and plans to turn it into Asia's largest no-frills carrier. The new company is the third South Korean budget airline to be announced in a month, following the Nov. 5 statement by Singapore's Tiger Airways that it would start a franchisee in the country and barely a week after local turboprop operator Jeju Air said it planned to step up to 737 no-frills operations.
The Air France-KLM Group's first-half operating income reached a new high, driven by strong growth across its passenger segment, including positive financial performance on its Asian network.
Consorcio Aeromexico, now controlled by new investors that include Banamex, is capitalizing on new synergies to recover former market share and finish 2007 with 14%; it projects 7.1% growth for next year, according to local reports.
U.K. carrier BMI is not the source of the London Heathrow slot that its alliance partner US Airways obtained for its proposed Philadelphia flights, a spokeswoman for BMI says. US Airways is still deciding whether the Heathrow flight will replace one of its two existing seasonal flights between London Gatwick and Philadelphia.
Barring any unforeseen calamities, ratings agency Standard & Poor's sees no near-term ratings changes for airlines despite ever-escalating fuel costs. Profits remain healthy in the sector due to "other, more favorable industry conditions," S&P said. (S&P, like The DAILY, is a unit of The McGraw-Hill Companies).
Indonesia's Sriwijaya Airlines plans to fly to Singapore and Malaysia from Medan, Surabaya and Makassar. The company expects to receive two Boeing 737-300s and two 737-400s from lessor AWAS next month.
The European Parliament is at odds with a council representing member states on who should pay for key measures of aircraft security, and during a conciliation session last week, failed to reach a compromise. Members of the European Parliament (MEPs) continued stressing that member states should bear the costs of air travel security and should shoulder the costs if security costs increase. Furthermore, MEPs said the cost of security measures should be more clearly indicated on passengers' tickets.
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]
Hong Kong International Airport saw passenger and cargo volumes rise more than 7% year over year in October. Passenger traffic reached 4.1 million, up 7.1% from October 2006. Cargo throughput and air traffic movements grew 7.6% and 5.8%, respectively, to 353,000 tons and 25,830 movements during the month, reported HKIA. For the 12 months ended Oct. 31, 2007, the airport handled 47.1 million passengers, up 7.4%. The airport handled 3.7 million tons of cargo and 292,740 air traffic movements, up 4.4% and 5% from last year, respectively.
Virgin America is attracting criticism from airline industry groups after the airline urged FAA to give special treatment to new-entrant carriers during proposed capacity regulation at New York Kennedy Airport.
The U.K. Dept. for Transport's list of companies certified as approved security providers by Transport Security is being updated in preparation for airports being given the green light to lift current one-bag carry-on limits, effective Jan. 7, 2008. Transec's list of 28 approved providers includes British Airways and SAS.
30 Years Ago Nov. 25, 1977 -- Most carriers continue to oppose the imposition of mandatory on-time arrival standard -- 75% as the minimum rate -- as proposed by the Aviation Consumer Action Project, and have also severely criticized a CAB bureau's plan to inform passengers of flights that are "subject to frequent delay." 20 Years Ago
Aeroports de Paris posted a slim 0.8% increase in passenger numbers, to 7.1 million, in October year over year. Paris Charles de Gaulle Airport's traffic was up 1.4% to 5 million passengers, while Paris Orly Airport was down 0.7% at 2.1 million passengers. For the first 10 months, traffic increased 4.8%. An Air France flight attendants strike had a limited effect on traffic at -0.3%, for the first 10 months of the year. Despite this, ADP raised its 2007 forecast of passenger traffic 4.8%-5%.
Spanish bank Caja Madrid has increased its shareholding in take-over target Iberia, sharpening battle lines between it and a TPG/British Airways-led consortium. After buying 7% of the public float of Iberia from BBVA, it now has also exercised its option to buy more than 6% of the airline's shares that were being sold by distribution company Logista. In total, Caja Madrid now holds more than 23% in Iberia. Caja Madrid, which is owned by the local government, says it plans to hold on to its holding but hasn't signaled if it is looking to buy more shares.
Pacific Wings hit back at Mokulele Airlines, alleging that Mokulele's attempt to get the U.S. Transportation Dept. to reopen Essential Air Service carrier selection in Hawaii (DAILY, Nov. 1) is more about ensuring its own survival than about Pacific Wings' service.
BAE Systems believes there is strong potential for regional jet sales in Africa -- nearly half the total African airline fleet comprises regional aircraft, but only 10% of the total are regional jets. The regional jet share increased from just 3% of the fleet in the space of 12 months, BAE says.
FAA is accepting industry's request to allow more time for commenting on its automatic dependent surveillance-broadcast rule. The new comment deadline is March 3, 2008 -- two months later than the original deadline. Several industry groups asked for the extension because they need more time assess the cost burden of the rule.
Nashville International Airport and John Tune Airport have an economic effect of $3.7 billion a year, according to a new study by Wilbur Smith Associates. The study found that one out of 20 jobs in the Nashville economic area can be tied directly to Nashville and Tune airports. "With more than 5,600 on-airport jobs, Nashville is the 10th-largest workplace in the region, and its total economic impact comprises 6.2% of the gross regional product of Middle Tennessee," it said.
Atlantic Southeast Airlines last week named Bradford Holt president and chief operating officer, replacing Bryan LaBrecque, who announced his retirement in early November as president, and former COO Anthony DiNota, who resigned in October. Separately, the Air Line Pilots Association unit at ASA ratified a new thee-year contract that gives them pay increases, work rule and benefit improvements and a signing bonus for active pilots.
