Network carriers were the only carrier group to report improved profit margins in the second quarter of 2007, figures from the U.S. Transportation Dept's Bureau of Statistics show. Profit margins for network carriers stood at 9.2% in the quarter, the highest since 2000. The LCC group reported an 8.1% margin and regional carriers reported a 5.7% margin, down 2.7 percentage points and 2.4 percentage points, respectively, from the same quarter last year.
The Transportation Security Administration (TSA) has begun a new program that allows part-time screeners to pay the same health care premiums as their full-time counterparts.
The Air Passenger Duty (APD) system in the U.K. should be scrapped and replaced with a tax favoring new, fuel-efficient aircraft, EasyJet proposes in a report it tabled this week in London. In a report labeled "The Surprising Truth About Flying and the Environment," the airline recommends "the scrapping of APD and replacing it with a tax based upon aircraft types and distance traveled." This would mean "for the first time, all U.K. aviation would be included and airlines would be incentivized to operate the most environmentally-efficient aircraft."
U.S. carrier Ryan International Airlines was slapped with a $20,000 fine for conducting wet-lease operations as part of a long-term agreement with Bolivian carrier AeroSur that was not approved by the U.S. Transportation Dept.
The board of Williams-Gateway Airport has voted unanimously to change the facility's name to Phoenix-Mesa Gateway Airport. The board announced the name change back in July (DAILY, July 24). The proposal to change the name was made to better reflect the airport's location in the Phoenix metropolitan area. It will take the airport until the end of January 2008 to create a new web design and until July 2008 to change the facility's signage. A new logo will be unveiled Oct. 15.
The House Ways & Means Committee yesterday approved an aviation financing package increasing fuel taxes for general aviation, although lawmakers on the panel said they would still like to see more radical changes considered later in the legislative process.
U.S. scheduled carriers employed 2.6% more workers in July 2007 than in the same month last year, the sixth consecutive month of growth in full-time equivalent employee (FTE) levels, reports the U.S. Transportation Dept.'s Bureau of Transportation Statistics.
Lloyd Aereo Boliviano now has one more entity to which it owes payment: the U.S. Transportation Dept., which fined the airline $10,000 for failing to file its disability-related complaint reports for 2004, 2005 and 2006 by their due dates. The carrier offered no excuse for the slip-up in mitigations, instead telling DOT of the turbulent times it has faced since February 2006. LAB noted it is trying to restructure its operations but that it's still unclear when the airline will be able to resume operations.
Austrian Airlines Group is seeing short- and medium-haul traffic increases all but make up for the draw-down in long-haul flying it implemented earlier this year.
Jakarta's Commercial Court declared Indonesian state-owned aircraft manufacturer PT Dirgantara bankrupt for failing to pay a total of IDR200 billion (US$21 million) in compensation to 6,500 former employees who were laid off in 2003. The company failed to adhere to a directive issued by the Ministry of Manpower and Transmigration on Oct. 30, 2004, to make the payment within 30 days. The lack of follow-up by authorities prompted the 6,500 workers to institute legal proceedings against PT Dirgantara last July.
DOT granted Virgin America's request to extend Fred Reid's time as CEO while the board looks for a suitable replacement. Previously, DOT said Reid had to step down in November, six months after Virgin America's launch, but he could remain as a consultant for three additional months.
Airport industry lobbyists are preparing for a battle in the House this week over attempts by some lawmakers to reverse the passenger facility charge increases included in FAA reauthorization legislation. Reps. Nick Lampson (D-Tex.) and Ted Poe (R-Tex.) claim the proposed PFC increase could add up to $2.2 billion in charges for passengers. The reauthorization bill -- expected to be debated as early as Thursday -- would increase the PFC cap from $4.50 to $7.
Timken struck a deal to buy The Purdy Corporation for $200 million. Purdy designs, tests, and overhauls and repairs transmissions, gears, rotor-head systems and other components for helicopters and fixed-wing aircraft. The company, based in Manchester, Conn., had sales of close to $87 million in 2006. Timken expects the deal to close in the fourth quarter.
The Allegheny County Airport Authority Board has tapped Bradley Penrod as its new executive director. Penrod, currently the authority's COO, is replacing Kent George, who is leaving to take a similar position at Fort Lauderdale-Hollywood airport (DAILY, Sept. 11). He has spent his entire 24-year career at the authority, which also oversees Pittsburgh airport.
International fares continue to rise, boosting overall ticket sales in August to $6.6 billion, according to the Airlines Reporting Corporation (ARC). August sales figures were up 6.9% from July, but down from the record set in March of $8.7 billion. Revenues from international fares in August rose 14% to $2.6 billion. Domestic fares were nearly flat at $3.1 billion. Taxes and fees made up the remaining $804 million.
A One-Two-GO Airlines MD-82 aircraft on Sunday evening skidded on the runway at Phuket International Airport in pelting rain and burst into flames before coming to rest against some trees. Eighty-nine of the 130 people on board flight 269 from Bangkok's Don Maung Airport to Phuket, including the commander of the flight and his first officer, perished in the disaster. Fifty-five of the dead were foreigners while the rest were Thais. Forty-one people survived, some with severe burns.
Aer Lingus has rejected a second call by Ryanair for an extraordinary general meeting (EGM). Ryanair tweaked its appeal for a meeting, but the change was not significant enough to change anything, contends Aer Lingus. Ryanair, the largest shareholder in Aer Lingus, is calling for the meeting to block its Irish rival's move to set up a base in Belfast and shift its London Heathrow flights there from Shannon. Aer Lingus argues an EGM would violate anti-trust rules. Moreover, it notes granting Ryanair's plans would harm Aer Lingus's business.
DOT Secretary Krakowski Named As Next FAA Chief Operating Officer yesterday confirmed widespread rumors by naming United executive Henry Krakowski as the FAA's new chief operating officer, effective Oct. 1. Industry sources told The DAILY as early as last week that Krakowski was the likely candidate (DAILY, Aug. 24). Peters labeled Krakowski as "the right person to help implement the next generation of aviation technology." In his 30-year career at United, Krakowski was VP-flight operations and VP-corporate safety, security and quality assurance.
Lufthansa and Swiss struck a partnership with myclimate.org to offer their passengers the chance to make donations to the environmental group. The web site has an emissions calculator and outlines guidelines for customer contributions. Lufthansa said donations will fund climate protection projects that focus on cutting greenhouse gas emissions.
This year's profit outlook for the global airline industry has improved slightly compared to earlier estimates, but there is a much larger downward swing in the 2008 profit forecast due to higher costs and the potential effect of U.S. credit market problems, the International Air Transport Association says.
The Association of Flight Attendants-CWA was the lone group to file in opposition to a request by Virgin America to extend Fred Reid's tenure as CEO. The U.S. Transportation Dept. gave parties until yesterday to respond to the carrier's request. Virgin America wants DOT approval to have Reid stay on in his current role rather than step down and consult with the carrier for three months. Originally, DOT said Reid had to step down in November, six months after Virgin America's launch.
Negotiators for US Airways pilots have withdrawn from contract talks with management and former America West pilots and will not attend a scheduled Sept. 24 session unless the East group crewmen receive pay parity with their America West colleagues.
