Continental last week reported a unit revenue increase of 2%-3% for January, which analysts translate as revenue growth of nearly 10% for the month. January mainline unit revenue grew by 3.5%-4.5%, the airline said. JP Morgan's Jamie Baker described these results as "nicely ahead" of expectations. Yield growth of 3.4% was also higher than predicted, he said. Baker forecasts a first-quarter consolidated unit revenue increase of 1.3%.
Southwest Airlines is running a trial of power outlet stations for passengers at two gates at Dallas Love Field. "For several years, we've heard feedback from our customers regarding the lack of power outlets for the growing number of chargeable electronic tools," said spokeswoman Brandy King. "Our mar- keting department decided to offer this to our customers in the gate areas. We are currently testing two prototypes at Dallas Love Field and if the testing is successful, we plan to continue the installation across our 63 airports."
New Mexican low-cost carrier Viva Aerobus has started the process to gain FAA's approval to launch flights to the U.S., in hopes of starting the service in July or August. The carrier, formed and owned by Mexican bus company IAMSA and the Ryan family, launched flights in November 2006 with two Boeing 737-300s, formerly part of US Airways' fleet.
The Fast Lane Option (FLO) Alliance has become the latest operator to meet the Transportation Security Administration's minimum participation requirements to offer Registered Traveler services. The FLO Alliance partners include Saflink Corp., Microsoft, JPMorgan Chase, Johnson Controls, Smiths Detection and ID Technology Partners. TSA's blessing puts FLO one step closer to sign up airports for its RT program.
FAA plans to hire 1,300-1,400 controllers in Fiscal Year 2007, keeping the hiring total a couple of hundred higher than expected retirements, says agency Chief Operating Officer Russell Chew. Earlier estimates called for just over 1,100 hires in this fiscal year, but FAA adjusted the hiring plan to reflect higher-than-expected retirements.
AirAsia's passenger numbers could grow to more than 50 million by 2013, says carrier CEO Tony Fernandez. He explains the extra 32 seats on the 180-seat Airbus A320s joining the airline's fleet are "phenomenally cash-positive for us."
Chile's LAN extended New Varig a loan for $17.1 million with the option of converting it into shares in the Brazilian carrier for a minority position, local press reported.
Venezuela's Civil Aviation Institute last week issued operational certificates to five startups: Linea Aerea de Servicio Ejecutivo (Laser), Linea Aerea Aereotuy, Empresa Comercial de Aviacion C.A. (Comeravia), and Aserca Airlines C.A. INAC welcomed the new carriers and hailed their contribution to the growth, efficiency and profitability of the sector, as well as their support of the nation's business interests, including tourism. -LZ
Nigerian carrier Bellview plans to launch flights to the U.S. in late April, taking on North American in the New York-Lagos market. Bellview will use a wet-leased Boeing 767-200 to fly nonstop between Lagos and Newark. North American, meanwhile, offers nonstop service to Lagos from New York Kennedy. The African carrier asked for expeditious processing of its foreign air carrier permit, so it can "provide badly needed competitive service in the U.S.-Nigeria market" [OST-2007-27184]. -ARS
The amount of passenger name record data collected by the U.S. is not the main obstacle to reaching an agreement; rather, the European Union is pushing to ensure that the data collected are "accurate" and "effective," a senior EU official told The DAILY. The U.S. collects 34 pieces of PNR data per passenger under the deal, but the Dept. of Homeland Security wants to increase the amount, according to published reports. The current interim deal expires in July, although it can be extended if the negotiations are still underway (DAILY, Oct. 9, 2006).
Deputy Transportation Secretary Maria Cino plans to leave DOT March 2 after almost two years in the post. Cino was nominated April 6, 2005, and confirmed about a month later. She served as acting DOT secretary from July 7-Oct. 4 last year, following the resignation of Secretary Norman Mineta.
Sabre executive Gianni Marostica is moving to ITA Software to become the company's chief executive officer. Most recently, Marostica was Sabre's president of airline passenger solutions after serving in several roles at the company, including VP of airlines based in Europe.
American last week reached a deal with Expedia that will see the web site resume listing the airline's international and premium fares. Last month, American decided to withdraw international and premium fares from Expedia, although the site continued to sell domestic coach tickets. At the time, the airline portrayed the move as a cost-cutting measure (DAILY, Jan. 16).
Two Chinese companies are moving to develop businesses in aircraft leasing, a market that industry executives see as ripe for development in the country. China Aviation Industry Corp. I (AVIC I) is setting up a leasing business in cooperation with other aviation firms with a view to promoting sales of its ARJ21 regional jet.
Santa Barbara on Feb. 1 became the first Venezuelan airline to operate to the U.S. with an aircraft and a flight crew licensed by Venezuela and under the carrier's sole control.
China will invest CNY26 billion (US$3.35 billion) this year to build and expand 33 regional airports in the country to cope with growth of the local airline industry and the anticipated surge in passenger traffic. Most of the new airports will be built in the western region. Expansion of the Beijing, Shanghai (Pudong), Shenyang, Shandong, Qinhuangdao, Tianjin, Qingdao airports, already in progress, is expected to be completed by the end of the year. The work is being financed by separate funds.
ExpressJet CEO Jim Ream continues to dismiss comparisons between the airline's branded flying and the now defunct Independence Air. The only similarity is aircraft size. FLYi operated high-density service patterns to metro areas, he says, and that was "a hard strategy to pull off." ExpressJet, however, is giving its 44 RJs the same task they'd have in a network, about 10 departures per gate, Ream says.
Unified Aircraft Co. (OAK), the aircraft contractor formed last year out of a number of smaller companies, says it wants to buy EADS's 10% holding in Irkut, one of its constituent units, unless EADS trades this stock for shares in OAK. Trading in the stock would require new investment, and EADS has not indicated whether it will do so. Its decision likely will ride on discussions to sell OAK a stake in the Airbus A350XWB program, and the intentions of Russian bank VTB as to a purchase last year of 7% of EADS's stock.
The long-awaited commercial agreement between LIAT and Caribbean Star Airlines began Thursday, combining both carriers' flight operations for the first time within new schedules (DAILY, Jan. 19). "This is a significant day for our two companies. Teams from both have been working feverishly over the past few weeks to ensure smooth transition. We're looking forward to the benefits of this alliance for our customers, staff and shareholders," said LIAT CEO Mark Darby.
Qantas has exercised options on two Bombardier Q400s to increase its fleet of the 72-seat turboprop to nine . The first of the additional pair will arrive in January of next year. The airline has options on another 12 Q400s.
