JetBlue this week got the go-ahead for its seasonal Boston-Bermuda service as the U.S. Transportation Dept. awarded the carrier exemption authority for the route. JetBlue plans to launch the service in May. The carrier also serves Bermuda from New York [OST-2007-27481].
The head of one of the leading aircraft lessors says it is presumptuous to think that Boeing and Airbus will still be the two dominant aircraft manufacturers in 20-25 years. International Lease Finance Corp. Chairman and CEO Steven Udvar-Hazy said during a panel discussion this week at the Istat conference in Phoenix that China, Japan and Russia all have aircraft manufacturing ambitions. "What makes you think Boeing and Airbus will be the only players?" Hazy queried.
British Airways plans to significantly expand its presence at London's City airport through its wholly owned subsidiary BA CityFlyer. The unit -- to be launched later this month -- will operate 250 flights a week from the airport, compared with 144 of the previous BA regional operation. CityFlyer will use 10 Avro RJ100s on six routes -- Frankfurt, Madrid, Milan, Zurich, Glasgow and Edinburgh, with Zurich and Glasgow as new destinations. -JF
The Scandinavian carrier SAS is offering its passengers the possibility to offset carbon dioxide emissions arising from air travel by paying a voluntary contribution used to finance sustainable development projects. "A typical return flight between Scandinavia and Europe generates approximately 300 kilos of carbon dioxide and costs approximately EUR4.50," suggests SAS. SAS said the projects funded by passengers will be identified by its partner The CarbonNeutral Company, "whose carbon management system is assured by leading accounting firm KPMG".
MTU Aero Engines' CEO Udo Stark will leave his post by the end of the year, the company confirmed yesterday. Stark cited personal reasons for the decision and said that he would take on other mandates next year, albeit to a reduced degree. However, industry sources say that he had lost the backing of part of MTU's supervisory board. Particularly employee representatives argued that he did not pursue expansion aggressively enough and did not have the necessary industry insight.
Mesa and Republic Airways Holdings restructured their deals with Delta, with Mesa capturing some of Delta's CRJ-900 flying. The Phoenix-based regional carrier will fly 14 CRJ-900s leased for a "nominal" amount from Delta, starting in September. Delta recently won the nod from the bankruptcy court to order 30 CRJ-900s. Recently Mesa CEO Jonathan Ornstein said the carrier was competing to win some of the CRJ-900 business (DAILY, Feb. 20).
A House oversight hearing yesterday proved once again what a tough task FAA faces in convincing lawmakers to approve a new aviation funding system -- and also demonstrated the strength of the general aviation lobby on Capitol Hill. Several members of the House aviation subcommittee told FAA Administrator Marion Blakey they are concerned that the new funding system will increase GA costs too much. These lawmakers also focused on another complaint by GA industry groups, that collecting user fees will create new bureaucratic costs.
The LAN Airlines group recently reported its February load factor climbed by five points to 80.5%, with international loads showing the largest increase. Systemwide traffic jumped 27.6% for the month on a 19.7% capacity increase. International traffic -- which comprised 87% of total passenger traffic -- increased 31.3%, compared with a 23% capacity increase. This resulted in international load factor growth of 5.2 points to 82.1%. Domestic traffic in Chile was up 7.3% on a capacity hike of 3.8%, for a load factor rise of 2.3 points to 71%.
Lufthansa pilots will continue to retire at age 60, following a ruling by a Frankfurt court yesterday. The court rejected claims by three pilots who wanted to have their work life extended to age 65 based on a new federal law on equal and non-discriminatory treatment. The court said that it was fair and reasonable that pilots retire at age 60 to ensure the safety of passengers. Lufthansa argues retirement at 60 is part of its collective bargaining agreement with pilot union Vereinigung Cockpit (VC).
Russell Chew, former FAA chief operating officer, will receive a $300,000 annual salary and substantial bonuses in his new job as chief operating officer of JetBlue, the carrier said Tuesday in an SEC filing. Beyond his salary, Chew will receive a $200,000 signing bonus; housing and annual real estate tax expenses; eligibility for annual incentive bonuses, guaranteed for two years at 75% of his base salary; and participation in JetBlue's equity award plans, including an initial award of 50,000 restricted stock units and annual awards of 10,000 RSUs. -DB
House Transportation and Infrastructure Chairman James Oberstar (D-Minn.) is urging appropriators to ignore the administration's request to cut airport funding to help pay for other priorities -- including the Iraq emergency spending bill. According to Oberstar's letter to Appropriations Chair David Obey (D-Wis.), the White House wants to reduce the Fiscal 2007 obligation limit for the Airport Improvement Program from $3.5 billion to $3.4 billion. The administration also proposes rescinding $284 million in AIP contract authority.
Continental estimates that its mainline unit costs will increase more than 2% in the first quarter of 2007, reversing a year-earlier decline and putting a squeeze on its profitability.
In a letter to Transportation Secretary Mary Peters, Rep. James Oberstar (D.-Minn.) and Jerry Costello (D.-Ill.) threatened to beef up existing U.S. ownership rules if the draft open-skies agreement with the European Union is ratified.
Hong Kong Aircraft Engineering Company (HAECO) is forming a joint venture with Middle Eastern low-cost carrier Air Arabia called HAECO Sharjah Aircraft Maintenance Co. Air Arabia is based in Sharjah. HAECO is taking a 49% stake, with Air Arabia having the majority 51% ownership in the joint venture. HAECO will help manage a hangar currently under construction and assist in setting up maintenance, repair and overhaul operations specializing in Airbus A320s -- the aircraft flown by Air Arabia. -LR
Orlando Airport is estimating it will spend at least $5 million on its new program to screen 100% of airport employees with access to secure areas in the wake of the arrest last week of Comair employees who smuggled weapons and drugs past security. "Most of that will be for equipment, construction and personnel. We expect that our operating costs will be less," said spokesperson Carolyn Fennell. "But we don't have any hard numbers now because we're still working it out."
Rome Airport (ADR) earnings for the year ended Dec. 31, 2006, fell 1.7% to EUR256.7 million (US$339.3 million) in results announced by parent company Macquarie Airports (MAp). Revenue fell 2.5% year over year to EUR572.2 million (US$756.3 million), while operating costs dropped 3.2% to EUR315.6 million (US$417.1 million).
Italy's Ocean Airlines and Venezuela's Sundance Airlines both won exemptions that will enable the carriers to offer cargo service to the U.S. Ocean Air plans to operate twice-weekly Boeing 747-200F service between Milan Malpensa and Washington Dulles. The airline, which filed the application last August, hoped to get the service up and running by October 2006 [OST-2006-25731].
RegionsAir's grounding forced the U.S. Transportation Dept. to immediately re-bid Essential Air Service for Decatur, Ill., a community that under AIR-21 legislation must have dual-hub service to both Chicago and St. Louis. FAA issued a consent order last week grounding the Tennessee-based carrier over wording in the airline's training manual for line-check airmen (DAILY, March 13). Regions' suspension leaves Decatur without service to St. Louis -- flights to Chicago, which also serve Marion, are operated by Mesa subsidiary Air Midwest.
US Airways has sent a request for proposal to both Airbus and Boeing to replace its Boeing 737-300/400 aircraft and hopes to make a selection by the end of the month, said company CFO Derek Kerr. The RFP covers 60 aircraft, and US Airways is considering the Airbus A320 family and Boeing 737 next generation. Although slots for those aircraft are essentially sold out, Kerr said he has delivery positions with the airframers at the moment, but if the carrier doesn't make a decision soon, they'll be given away if someone buys aircraft.
Canadian carrier Zoom Airlines plans to launch scheduled flights from Halifax to Paris and Belfast on June 12 and June 8. The flights end in October. Ottawa-based Zoom offers scheduled flights to the U.K. and France and scheduled and charter flights to the Caribbean and the U.S.
Aer Lingus posted a net loss of EUR69 million (US$91 million) in 2006, as the airline was facing the costs of its initial public offering and defense of the Ryanair hostile takeover bid. Sales were up 11% to EUR1.11 billion (US$1.45 billion).
Adrian Schofield, Aaron Taylor When it comes to airline capacity, not all world regions are equal. But while there is often enormous disparity between population and capacity share, there is a much closer correlation between GDP and capacity. Combined in different ways, these indicators can all give important clues about untapped demand.
