Sabre Airline Solutions has found that fuel, customer loyalty and government regulations top the list of airlines' concerns in 2007, with fuel far outweighing the rest. Of 197 respondents from 101 airlines surveyed by the unit of Sabre Holdings, fuel costs were the top challenge to profitability, cited by 94%. Second was government regulations (79%), followed by customer loyalty (75%), security concerns (58%), labor contracts (55%), alliances (50%), new entrants (42%), airline mergers (34%), and airline bankruptcies 34%.
Alcoa executives responsible for the company's $3 billion per year aerospace business say they agree with Morgan Stanley analysts that the upturn in the commercial jet market is likely to extend until 2010 or 2011. This prediction is more positive than its original prediction that the upturn will end in 2008 or 2009, partly due to a growing economic rationale for fleet replacement -- the need for greater fuel efficiency.
The consortium attempting to take over Qantas says it is considering a second push to gain the ownership stake it needs, after its first effort fell short of the required threshold.
LAN and Lan Express continue to lead all rivals for market share in Chile, but more interesting movements are happening elsewhere in the ranks -- Aerolineas del Sur (ADS) is gaining on Chilean-owned Sky on domestic routes on which they compete. First-quarter statistics published by Chile's civil aviation board (JAC) show the Marsans Group and Aerolineas Argentinas affiliate grabbing 15.8% of market share on routes served only by the two carriers, while Sky's share fell from 20% to 18.9%. ADS picked up the difference.
The Metropolitan Washington Airports Authority hopes to have a registered traveler program in place at Dulles and National airports by early fall, said Rochelle Cameron, manager of MWAA's administration department at the American Association of Airport Executives' RT conference yesterday. The authority is in the middle of a request for proposal for an RT service provider.
India signed an agreement with MITRE Corp. for consultancy on the design of area navigation routes over Mumbai and Delhi. MITRE is offering its design tool TARGETS (Terminal Area Route Generation, Evaluation, and Traffic Simulation), which is used across the U.S to design new arrival and departure routes and procedures. It offers a unique combination of capabilities for RNAV procedure design, flyability assessment and ATC service provision, and operator evaluation and familiarization of these procedures through simulation.
The Transportation Security Administration needs to move quickly to make technology available that will speed the registered traveler process, said Reggie Baumgardner, airport security manager at Indianapolis International Airport at the American Association of Airport Executives' RT conference yesterday. "Airports need that technology so that passengers can get their money's worth, and part of that is getting the technology out there," he said. "From our standpoint, that technology is mired in government gobblygook, stuck in a test facility in Atlantic City."
Emirates yesterday placed an order for four more Airbus A380s and reaffirmed its previous commitment as a launch customer. The deal takes Emirates' total order for A380s to 47 aircraft. The agreement is a welcome boost of confidence for the program that has slipped by two years.
American yesterday said it is sending out recall notices to 200 furloughed flight attendants. The recalls are intended to meet expected attrition through the remainder of this year.
Rising fuel prices and the higher public profile of environmental concerns have prompted CFM International to take another look at some promising technology first tried two decades ago -- the unducted fan. Rechristened "open-rotor" technology, the initiative has resumed within the past year as part of the GE-Snecma combine's two-year-old LEAP56 technology effort, aimed at a new class of more fuel-efficient and environmentally friendly 18,000-32,000 lb. thrust engines for Airbus and Boeing when they replace the A320 and 737 families.
American Express Business Travel, which has expanded its online technology and data management for corporations to manage their business travel, reports that it has brought in $1 billion in new business in the first 100 days of 2007.
ATA Airlines reported an increase of 6.4 percentage points in its scheduled-service load factor for April, to 87.1%, drawing on a 6.8% increase in traffic despite a 1.1% reduction in capacity. In its traffic gain, the carrier overcame a 3.4% decrease in enplaned passengers with 10.6% growth in its average trip length. In charter service, which accounted for nearly 19% of ATA's total capacity in April, traffic and capacity decreased 3.5% and 1.4%, respectively.
Air Midwest on Aug. 1 will end essential air service to five East Coast communities, in one instance almost two years before the airline's obligation was due to end.
AirTran's capacity outstripped revenue passenger miles in April, posting 21.5% growth compared to 18.5% RPM growth year-over-year. Load factors fell two percentage points from 78.8% to 76.8%. Year-to-date, load factors at AirTran have dipped about one 1.1 percentage points from 72.9% to 71.8%.
In what has become an annual tradition, Senate lawmakers have once again signaled that they are not prepared to accept the administration's proposal for cutting FAA's airport spending.
To list an event, send information in calendar format to Ingrid Lee at [email protected] MAY 7 -- Greater Washington Aviation Open, GWAO, Lansdowne Resort, Leesburg, Va., [email protected] MAY 8-10 -- ATCA/FAA/NASA/JPDO Technical Symposium, Atlantic City, N.J., 703-299-2430, fax: 703-299-2437, [email protected] MAY 8-10 -- 52nd Annual Corporate Aviation Safety Seminar, Tucson, Ariz., 703-739-6700, fax: 703-739-6708.
The coalition attempting to take over Qantas appears to have failed to meet a crucial share purchase deadline, terminating the bid. The Airline Partners Australia coalition had to buy enough shares to gain 50% of Qantas' voting rights by Friday evening. An exact tally was not available Friday, but coalition spokesmen said the 50% milestone was not achieved. While APA set a 70% ownership threshold for the buyout to succeed, the coalition had to reach the 50% mark to trigger a two-week extension.
Named board member and Extra Space Storage CEO Kenneth Woolley chairman, replacing Richard Sharp. The airline named John Severson CFO, George Paul chief operations officer and Ceciley Bachnik VP-people services.
