Last week's European Union/U.S. agreement on the liberalization of transatlantic air services is expected to have a substantial effect on Ireland's travel and tourism industry: No fewer than 22 U.S. cities have expressed an interest in the launch of direct services to Ireland, confirmed the spokeswoman of Irish Transport Minister Martin Cullen. The Irish Hotels Federation estimates that liberalization will bring 1 million additional U.S. visitors to Ireland every year, generating EUR1 billion (US$1.3 billion) in extra income for the Irish economy.
The March 21 issue of The DAILY included United in a list of carriers that opposed Virgin America's launch. United has not supplied any comments to the U.S. Transportation Dept. regarding Virgin America.
JAL has selected Goodrich Corp. to provide wheels and electrically-actuated braking systems for the 30 Boeing 787 aircraft the carrier has ordered. Goodrich will also supply a traditional braking system for the 737-800s JAL has ordered.
The situation remains tenuous for Lloyd Aereo Boliviano, which is surviving by changing flight schedules to avoid cancellations and postponing months of salaries owed to workers while facing new bills for taxes.
Canadian low-cost airline WestJet has signed a partnership with Wal-Mart Stores to become the company's preferred airline, a move that foreshadows more corporations moving away from Air Canada, according to the Business Travel Coalition (BTC).
Brazilian carrier TAM reported a net income for the fourth quarter 2006 of BRL1.34 million (US$646,843), a 57% improvement from its fourth-quarter 2005 results. Operational income was BRL19.28 million (US$9.2 million), a 6.3% decrease from fourth quarter 2005. Gross operating revenue was up 22.9% to BRL2 million (US$965,437), compared with BRL1.66 million (US$801,312) in the previous fourth quarter. The airline's revenues were buoyed by international passenger revenue, which jumped 59.8% to BRL467 million (US$22.5 million).
Indonesian conglomerate PT Bhakti Investama expressed interest in acquiring local low-fare airline Adam Air, which is being investigated for breach of safety and maintenance requirements. Bhakti President Hary Djaja said the company is ready to talk business with Adam Air, but he declined further comment. Bhakti holds 35% in Indonesian Air Transport, a listed airline that provides charter services for oil and gas companies.
Virgin Blue signed an order with Boeing for six 777-300ERs and took options on another six for its yet-to-be-named new long-haul carrier. The Australian low-fare airline also committed itself to International Lease Finance Corp. for a seventh 777-300ER, taking the total aircraft order cost to A$2.6 billion (US$2.1 billion).
US Airways' prospective $1.6 billion refinancing (DAILY, March 1) will reduce the carrier's debt maturities -- and increase its cash, other things being equal -- through 2011, according to company data presented Wednesday at a JPMorgan financial conference. The deal, targeted for completion this week, would shift maturities from a peak in 2011 past 2013. It would add about $1.5 billion to US Airways' cash balance from 2011 through 2013, before coming due.
Stewart Airport will get a strong development plan that will allow it to grow after the Port Authority of New York and New Jersey takes over the remaining 93 years of its lease in October, says a key executive.
While US Airways has generally thrown its support behind FAA's proposed plan to overhaul aviation funding, the carrier has some concerns about nuances of the funding formula that could result in small communities bearing a disproportionate amount of financial burden. FAA's user fee formula has three main elements, US Airways Senior VP of Public Affairs C.A. Howlett explained. Fees are charged for en route and oceanic miles, of which the last component is a terminal fee.
Ten U.S. airports have been chosen to run a Dept. of Homeland Security pilot that will test 10-fingerprint scanner technology under the US-VISIT program. Airports that will test the new technology are Boston Logan; Chicago O'Hare; Detroit Metro; Atlanta Hartsfield-Jackson; Houston Intercontinental; Miami; New York Kennedy; Orlando; San Francisco; and Washington Dulles. Under the pilot, visitors from other countries coming to the U. S. will be required to submit 10 fingerprints, rather than the two currently required (DAILY, Jan. 12).
U.S. government officials say they will revisit the controversial issue of foreign ownership of U.S. airlines with renewed commitment, now that the European Union and the U.S. have signed what is being called a breakthrough open-skies draft accord.
With Boeing on pace to easily achieve its initial order estimate for its popular 787 program, a leading aerospace analyst believes the company is correct in anticipating no slowdown in demand. When Boeing launched the 787 in 2004, it projected that the aircraft would capture as many as 500 orders by the time of the first flight -- scheduled around the end of August. The company already has 460 orders for the 787, and this week program head Mike Bair predicted it will soon surpass the 500-order milestone (DAILY, March 20).
AirTran management would consider upping its offer for Midwest Airlines if Midwest executives agree to talk with AirTran's leaders. Earlier this month, AirTran extended its $13.25 tender offer to Midwest's shareholders from March 8 to April 11. AirTran CFO Stan Gadek told attendees earlier this week at the JP Morgan Aviation & Transportation Conference that the feedback that AirTran has gotten "candidly" from Midwest shareholders is that the offer does not adequately reflect the future value of the company.
House aviation leaders are signaling they will change existing legislation that allows FAA to impose contracts on unionized workers if negotiations reach impasse. House aviation Subcommittee Chairman Jerry Costello (D-Ill.) says he is "committed to fixing this grossly unfair process" through the FAA reauthorization bill. House Transportation and Infrastructure Chairman James Oberstar (D-Minn.) also opposes the current impasse rule that led to the imposition of a contract on controllers last year.
The European Union, in its first oral statement before a World Trade Organization panel, rebutted U.S. claims that member states provided illegal subsidies to Airbus; it also offered the first written submission in its case against the U.S., alleging that Boeing benefited from illegal subsidies for the Defense Dept. and NASA.
European Union transport ministers endorsed an ultimatum set by EU Transport Commissioner Jacques Barrot (DAILY, March 22) that obliges the eight members of the private consortium in charge of deploying European satellite navigation system Galileo to create the operating company for the program's development and to agree on its budget and management by May 10.
Flights at Midwest subsidiary Skyway are back to normal after crew shortages this month triggered about 53 canceled flights in 12 days. Part of the shortage came because the lone Fairchild Dornier 328Jet simulator in the U.S. was out of commission, a Midwest spokeswoman explained. Skyway flies 12 328Jets and seven Beech 1900s. The other challenge was that a number of Skyway pilots left the carrier on short notice. Midwest's spokeswoman said the problems are now corrected, "so we do not expect to experience this level of cancellations again." -LR
