Kuwait-based, low-fare airline Jazeera Airways plans to convert its options for six Airbus A320s to firm orders this year. The options were part of an order for 10 A320s placed in 2005. Delivery, which started Jan. 29 with one aircraft, will continue until 2009. Jazeera Airways currently operates five A320s on routes to 14 destinations in the Middle East, North Africa and the Indian sub-continent. Chairman Marwan Boodai said the carrier plans to add one destination a month this year to its network, with expansion focused on the three markets.
Lexington Blue Grass Airport will be one of the first in the country to add 100% cargo screening to its existing inline baggage screening system when it starts March 1, according to Executive Director Michael Gobb.
Former Air Sahara and United President Rono Dutta is working with AAR as a senior adviser to develop its business in India. AAR CEO David Storch noted Dutta would help the maintenance, repair and overhaul company establish a position in the country by helping AAR strengthen ties to customers and potential business partners. -JF
Midwest CEO Tim Hoeksema told The DAILY yesterday he did not expect AirTran's proposal to replace members of Midwest's board in its quest to acquire Midwest. In addition, AirTran said it was extending its $13.25 share offer by one month to March 8 from Feb. 8. Hoeksema pointed out that Midwest' board was doing a good job and that AirTran's effort to bring in three individuals to tilt the interest toward a transaction that is not in Midwest's best interest is surprising.
El Al plans to boost its direct service to Los Angeles and Miami, although the carrier is cutting its direct flight to Chicago. Beginning March 25, El Al will increase the frequency of the Miami flights from twice to three times a week. Los Angeles flights will be increased from three to four times a week during the summer months, from June 25 through Aug. 27.
SR Technics opened a sales office in Mumbai after the maintenance, repair and overhaul company's sale late last year to a consortium based in the United Arab Emirates. Last month, SR Technics opted not to take a stake in Rome, N.Y.-based Empire Aero Center, a subsidy of Israeli Aircraft Industries.
JAL is making major adjustments to its domestic route network for fiscal 2007, dropping unprofitable routes while adding others. The airline described the changes as the biggest review of domestic operations since 2002. The plan is part of JAL's efforts to "build a business structure that generates stable income...and increases profitability," the airline said. JAL's fiscal 2007 will begin April 1.
Fresno-Yosemite International Airport is hoping that a new domestic incentive program will help boost service to cities currently not served from the region. The new program, approved by the city council Jan. 25, focuses exclusively on new air service to cities not currently served out of Fresno, said spokeswoman Patti Miller. "The airport requires that the service be provided in at least 50-passenger aircraft, those aircraft must be jet powered, and the service must be at least five days per week," she said.
Lufthansa is adding more routes to its "betterfly" low-fare service by the end of March. The airline will also offer the EUR99 roundtrip fares on routes from Hamburg to Bergen, Bastia, Valencia and Balaton, said Lufthansa Executive VP-Non-Hub Services Christoph Klingenberg. Betterfly fares will be available on a total of 33 routes and 3,000 seats daily. The carrier stationed 15 Boeing 737s in Hamburg and separated the sub-fleet from the remainder of its short-haul planes to gain further efficiencies. -JF
An unusually high number of heavy airframe C-checks and unscheduled engine events contributed to increasing Allegiant Travel Company's non-fuel expenses 12% in the fourth quarter. Operating unit cost ex-fuel at company's subsidiary Allegiant Air jumped from 3.87 cents in the fourth quarter of 2005 to 4.34 cents for the same time period last year. Direct maintenance expenses rose from close to $2 million to $5.2 million.
Bombardier supplied little information about its C-Series plan after previously proclaiming the aircraft's fate would become clearer by the company's fiscal yearend of Jan. 31. The airframer set the deadline late last year (DAILY, Nov. 30), but yesterday said it would not supply another update until March.
FAA fares surprisingly well in the fiscal 2007 continuing appropriations resolution proposed by Democratic leaders. While other agencies will have to tighten their belts, FAA is actually allocated more money in the CR than the agency requested -- $14.5 billion instead of $13.7 billion. The biggest boost comes in Airport Improvement Program funding, with the CR granting $3.5 billion, compared with the budget request of $2.75 billion.
US Airways gave up yesterday in its drive to acquire Delta, bowing to a final rebuff from the Chapter 11 carrier's official unsecured creditors committee.
Boeing executives yesterday reassured market analysts that the crucial 787 program is on track, and they're making good progress in addressing earlier concerns regarding weight and component suppliers. The manufacturer still plans to meet the major 787 milestones it has targeted for this year, CEO Jim McNerney said. These include testing the 787 engines and receiving major assemblies at Everett, Wash., in the first quarter, final assembly in the second quarter, and roll-out in July.
Air China ordered the CFM56-5B engine to power its new fleet of 24 Airbus A321s, to be delivered between 2008 and 2012. The contract includes 48 engines and five spares worth $345 million at list prices (US$6.5 million per engine). CFM's contract actually will climb because the companies also announced that Air China plans to sign a 15-year maintenance agreement with CFM for the repair and overhaul of its new engines, along with a 15-year material agreement that will provide Air China with new, used and repaired material.
Cincinnati/Northern Kentucky International Airport would remain a hub in a post-Delta merger with US Airways or Northwest, but only if the surviving entity creates a four-hub route network, says a new study published by the University of Cincinnati.
Changi Airports International will spend US$138 million to buy a 29% stake in China's Nanjing Lukou Airport. The deal includes a strategic alliance that will let Changi introduce airport best practices at Nanjing, located in China's Jiangsu Province on the country's East Coast. In 2006, Nanjing Airport served a record 6.2 million passengers, up 16.4% from 2005. The airport ranks in the top five, by international cargo volume, in China. Changi earlier signed management deals with Moscow Sheremetyevo Airport and Abu Dhabi Airport. -BW
Korean's fourth-quarter net profit soared by more than 150% to KRW75.7 billion (US$80.8 million) on the back of a healthy 6.7% revenue increase and good cost control. Despite a 4.5% increase in fuel costs, total operating costs rose only 0.8%. Overall, the fourth quarter saw operating profit climb dramatically -- by 455% -- to KRW143.4.
Virgin America is continuing its push to persuade the U.S. Transportation Dept. to reverse an earlier tentative decision denying the carrier's application to launch operations, saying the latest information it submitted would dispel claims that the Virgin Group has an "iron grip" on the airline. The iron grip reference stemmed from comments Continental previously made in its argument that DOT should reject Virgin America's application.
