Delta is close to announcing a Connection Carrier to fly the remaining 15 CRJ-900s of a 30 aircraft order placed this year. The airline recently awarded Mesa half the aircraft, which should start flights in September, most likely from Delta's Atlanta and Cincinnati hubs (DAILY, April 16).
Boeing has signed a contract with Spirit AeroSystems in Wichita, Kan., to provide component repair and overhaul services on engine nacelles for 777 and Next-Generation 737 aircraft. Boeing said the Boeing Component Repair and Leasing Services Network Service Center program is "part of a continuing strategy to reduce maintenance costs and provide faster repair and overhaul solutions of key rotable components for Boeing customers around the world." For Spirit, it furthers its desire to gain more work and expand its MRO business (DAILY, April 19).
The Association of Flight Attendants-CWA on April 19 submitted last-minute arguments against awarding Virgin America an operating certificate. "Nothing about how the Virgin Group structured Virgin America's affairs has changed so drastically to warrant this turnabout," AFA-CWA told the U.S. Transportation Dept. "There have been no 'sweeping changes' that go to the core of the requirement to demonstrate U.S. citizenship, just a little cosmetic surgery around the edges."
Argentina-based SOL Airlines will soon join Uruguay's Pluna and Aerolineas Argentinas on the profitable Montevideo-Buenos Aires shuttle. The carrier will operate two daily frequencies that were unused in the Uruguay-Argentina bilateral accord. SOL will use SAAB turboprops on the route.
Mexicana's new Torreon-Las Vegas service could launch soon, thanks to quick nods from the U.S. Transportation Dept. and the Mexican civil aviation authorities. Mexico designated the airline to operate the route earlier this month. The airline told DOT it would launch the service "immediately" after winning the necessary authority from the department, which awarded Mexican the exemption on April 17.
Bookings for Japan's "Golden Week" vacation period - from April 27-May 6 - are stronger than last year's, particularly for international Asian destinations, JAL says. Domestic bookings in this 10-day period are up 2.9%, and international bookings are 1.2% higher. Reservations are 11.9% higher for China, 13.6% for Guam, and 14% for South Korea. Load factor for the holiday period is running at just under 70%.
The Urumqi International Airport in the oil- and gas-rich Xinjiang Uygur Autonomous Region in northwest China is being expanded at a cost of CNY2.8 billion (US$363 million). This is the first major upgrade of the facility, which was built in 1931. General Administration Civil Aviation of China, China Southern Airlines and the Xinjiang regional government are financing the project.
Malaysian Airlines budget subsidiary Firefly may soon take over Sarawak's rural air services operated by Air Asia-owned Fly Asian Xpress (FAX). This follows the inability of FAX to effectively serve the tourism industry through disrupted services, insufficient flights, delays and rescheduling. The rural service had been given to FAX by MAS under its national air route rationalization program last August.
Northwest has named a new 12-member board of directors, to become effective upon completion of its reorganization plan, expected to be in June. Gary Wilson, chairman of the board, will be succeeded by Roy Bostock, a board member since 2005. The rest of the board will comprise existing and new members. Wilson says, "I am leaving the board because I believe in term limits and because my other business interests do not allow me sufficient time to continue leading the board."
The European Commission will postpone the implementation of the European Union's maximum cabin baggage size restriction by 12 months - instead of six as suggested in March (DAILY, March 19). An October 2006 regulation stated cabin baggage larger than the IATA standard 56x45x24cm would be prohibited as of May 6 in the EU, Switzerland, Norway and Iceland.
CheapAir.com, based in new York, has hired Werner Kunz as its new chief strategy officer not only to set the strategic direction of the company, but also to develop and launch new brands. Werner will be in charge of generating new revenue streams by negotiating new and existing supplier agreements, the company said. "He will develop strategic alliances with major online publications, media and news outlets, as well as securing new investor acquisitions."
Southwest's coffers are $20 million richer in the first quarter because of the lifting of the Wright Amendment, which allows the carrier to greatly increase one-stop flights from Love Field. It added about $11 million in the fourth quarter 2006. The airline boosted its Love Field flying on March 11. Southwest is also enjoying a successful code-sharing partnership with ATA, which added $8 million to revenues in the first quarter.
Boeing added seven new aircraft orders to its backlog in the past week -- including five from leasing company CIT - but it also reduced its 737 backlog by four aircraft. The CIT order is for 737-700s, and brings its 737 order total to 10. The company also has five 787 on order. CIT said the latest order helps meet the strong demand it is seeing from its clients for the 737. List price for the five aircraft is about $295 million.
Aeromexico may soon launch nonstop flights between Guadalajara and New York Kennedy Airport, a service that could best both its U.S. and Mexican rivals, which offer one-stop service between the cities. Using an exemption from the U.S. Transportation Dept., Aeromexico would fly Boeing 737-700s three times weekly on the route, with service beginning on May 7 [OST-2007-27999].
The CEO of Brazilian civil aviation regulator ANAC said he supports abolishing bilateral agreements among countries in the region in favor of a more multilateral approach.
Travel agents and corporate department sales tracked by the Airlines Reporting Corp. hit record levels in March, rising 4% from March 2006 for a total of $8.7 billion. ARC processes transactions for 154 airlines and three railroads. The $8.7 billion in total sales represents the largest five-week month since 2000. During the month, domestic fare revenues fell 3% to $4 billion, and international fares rose 11% to $3.5 billion.
Singapore Airlines -- the largest carrier serving Australia in passenger numbers -- is extending its relationship with the country following an MOU with the government of the state of Victoria for a two-year US$66,000 (S$1million) tourism promotion to market the state to China, Japan, India and Singapore. The agreement complements an existing understanding with Tourism Australia for strategic cooperation to promote Australia.
Croatia Airlines, a Star Alliance regional member, will replace its legacy IT system with the Star Alliance Common IT Platform (CITP). The airline has signed an agreement to use the next-generation platform with Amadeus, the IT provider. Star Alliance VP of IT Aman Khan said the decision demonstrates that "this solution is suitable for carriers of all sizes within our alliance." It enhances customer service functions, such as sales, as well as airport systems functions such as ticketing, check-in, inventory, fare quoting and schedules.
The U.S. Transportation Dept. has started to move its headquarters from L'Enfant Plaza to Southeast Washington, a process that has some federal workers worried about a slight lag in reports as data and computers are shipped. The move will reduce 25% of its rental costs and will take until June to complete. The Pipeline and Hazardous Materials Safety Administration is the first to go. Neither FAA nor the Surface Transportation Board is moving. All DOT phone numbers remain the same. The new address for DOT headquarters eventually will be 1200 New Jersey Ave.
GOL last week reported its first-quarter profit slid by 35%, with the company attributing much of this drop to the wave of cancellations it was forced to make due to air traffic controller labor problems in Brazil. The cancellations "suppressed demand" in the quarter, which led to lower-than-expected yields and load factors, GOL executives said. The airline is expecting strong second-quarter growth thanks to the addition of new aircraft and the absorption of the Varig fleet.
Airlines and industry observers praise the Transportation Security Administration's enhanced airport employee screening effort unveiled April 18, but a Congresswoman advocating for 100% screening thinks the plan doesn't go far enough. TSA partnered with the American Association of Airport Executives, Airports Council International-North America and the National Air Transportation Association to develop standards to increase the tools available for screening without actually screening all workers.
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) OCT. 17-18 -- MRO Asia 2007 Conference & Exhibition, Shanghai, China NOV. 7-8 -- MRO Europe 2007 Conference & Exhibition, Fiera Milano Congressi, Milan, Italy NOV. 28-29 -- A&D Finance Conference, New York, NY
