Airlines are beginning to study alternative forms of payment as the shift from using travel agencies -- and in some cases GDSs -- toward more online sales is increasing operating costs because of rising credit card merchant fees.
Air China reported on the weekend that its net profit for the first quarter increased to RMB403 million (US$52.3 million), driven partly by strong increases in international traffic and higher fares.
Delta emerged from Chapter 11 bankruptcy 19 months after entering restructured as a lower-cost carrier, a more diverse international network, a new brand and a stronger focus on customer service. "Before we went into Ch. 11, Delta didn't have a good balance sheet, had high costs and too much focus on domestic, short-haul markets," said CEO Jerry Grinstein. "But Delta is now a fierce competitor in a tough industry, and we are confident that we will reclaim our rightful place as an industry leader."
Palm Springs Aviation Director Richard Walsh was terminated from his position on April 24 by City Manager David Ready, who cited "different" management styles in local press reports. Ready has made Craig Toms, who currently oversees operations, the acting airport manager. The situation appears to have come to a head over Ready's decision to hire a city-level executive director to oversee the airport and ostensibly be Walsh's new boss.
The latest round of aviation talks between Chinese and U.S. government officials did not yield the open-skies breakthrough the U.S. was hoping for, although there is still hope that a new agreement can be reached before this month's Strategic Economic Dialogue in Washington.
The new Delta board will have its first meeting in May, and choosing a new CEO is at the top of the agenda, says current CEO Jerry Grinstein. "It's hard to speculate, but I hope they can choose someone within 60 days," he told The DAILY.
International passenger traffic jumped 7.8% in March from March 2006, the largest monthly increase in a year, IATA reports. For the first quarter, international passenger traffic was up 7%. "The story of passenger traffic is based on strong economies driving the demand to travel for both business and leisure markets," said IATA Director General and CEO Giovanni Bisignani.
Pinnacle continues to add partners to its cadre after winning new business from Delta to fly 16 CRJ-900s as a Connection carrier. The Delta deal follows an agreement Pinnacle Airlines Corp. struck with Continental earlier this year for its newly acquired Colgan subsidiary to fly Q400s from Newark, starting in early 2008.
Aeromexico on April 26 won authority from the U.S. Transportation Dept. to serve the Guadalajara-New York (Kennedy) route with three weekly nonstop flights. The service is expected to launch on May 7 (DAILY, April 23).
The Dept. of Homeland Security needs to develop a risk-based security strategy for inbound air cargo arriving from overseas, a congressional watchdog report recommended yesterday. The Government Accountability Office also said two DHS agencies with responsibilities for securing air cargo need to communicate with each other better and analyze the security practices of the air cargo industry and foreign governments to see if any procedures are applicable to the U.S.
Plans to integrate operations and finances at Medellin's downtown Olaya Herrera Airport with those of Jose Maria Cordoba International in Rionegro seemed ready for implementation, after months of off-and-on negotiations between Colombian bureaucrats, politicians and lobbyists.
Qantas is buying a 30% stake in Vietnam's second-largest carrier, Pacific Airlines, under an investment agreement signed with the State Capital Investment Corp. Qantas intends to help develop a new business plan for the carrier, which operates a fleet of single-class Boeing 737-400s within Vietnam and to Taiwan. The Australian press reported the purchase is worth about $41.5 million. "We will be actively involved in the ongoing management of the company through board representation and key management appointments," says Qantas CFO Peter Gregg.
The U.S. and the European Union are hammering out an accord for "green transatlantic flights," with the hopes that this deal can be made public in mid-June, top EU officials said.
The sale of 75% of Uruguay's Pluna to the Leadgate Group is back on track and should be confirmed next month, DAILY affiliate Latin America & Caribbean reports.
Miami International Airport has partnered with the Disney Institute to provide customer service training to 300 employees under its new Concierge MIA program. Aviation Director Jose Abreu made management changes in October 2006 that included putting customer service under operations, said Dickie Davis, the airport's terminal operations director. "Jose then met with me and asked me to put together a holistic approach to improve customer service," she said.
FAA last week awarded production certification to Eclipse Aviation for the company's Eclipse 500 jet, which should let the company increase production rates. The Eclipse 500 received its type certification last fall, allowing production to begin. The production certificate, however, will allow Eclipse to build the aircraft with a reduced level of FAA oversight, according to an agency official. -AS
TAP Air Portugal and Brazil's TAM have signed a memorandum of understanding to code share and partner on their frequent flyer programs. TAM will sell flights on TAP in Portugal, and TAP will sell flights on TAM in Brazil. The two will expand the code share to include international flights upon government approval.
Airbus still hasn't decided about pushing its A320 narrowbody production rate to 40 aircraft per month, reasoning any uptick needs to be sustainable for about 24 months. Rates reached 32 per month in January and are on schedule to rise to 34 a month in March 2008 and 36 per month in December of that year. The airframer continues to say that pushing the build rate to 38-40 per month is under consideration.
Cape Air was reselected by the U.S. Transportation Dept. to operate essential air service for an additional two years at Mayaguez and Ponce in Puerto Rico. The airline will connect both communities to San Juan with five weekly nonstop roundtrips during the peak season and three weekly nonstop roundtrips during the off-peak season. Cape Air will use nine-seat Cessna 402s on both routes.
Airbus is expected to bring an A380 to Indian cities Mumbai and New Delhi from May 7 to 10 for Kingfisher Airlines' second anniversary celebrations. Kingfisher is owned by United Breweries Group, and has ordered five A380s with an option for five more. Mumbai airport "is perfectly capable of handling the A380 now ... and by the time the aircraft are delivered and begin flying to India, we will have a new terminal with special facilities for parking and handling the large number of passengers," an airport spokesman said.
Singapore Airlines' future growth in Canada is being hurt by a bilateral agreement that only allows it to operate three flights a week out of Vancouver, says Campbell Wilson, the carrier's VP-Canada. "We operate out of Vancouver with 90%-plus capacity, but Singapore and Canadian airports lose when passengers have to transfer to the country via U.S. airports like San Francisco and Los Angeles," Wilson says.
