The outlook for world airport credit ratings is stable to positive, while U.S. airports should see their credit quality improve modestly through this year, a Fitch Ratings report says. Airports in emerging markets in 2006 were hamstrung by budget and fiscal constraints that prevented necessary investment in infrastructure to keep up with growing demand for air service, but low interest rates and increased liquidity have eased these problems, according to Fitch's "State of the World's Airports."
Russian carrier Uran Airlines struck a power-by-the-hour engine maintenance deal with Snecma Services covering the CFM International CFM56-5A engines powering the carrier's Airbus A320s. Ural plans to add 12 more CFM-powered Airbus A320s to its fleet by 2010. Snecma also has maintenance agreements with two other Russian airlines -- Aeroflot and S7. -LR
Azerbaijan Airlines yesterday placed an order for six ATR turboprops. The airline will take delivery of two ATR 42-500s and four ATR 72-500s this year and in 2008. The deal is valued at $100 million, according to ATR.
Slovak Airlines was grounded this week by its majority shareholder Austrian Airlines after the Slovak government failed to take over debt owed by the previously state-owned company. The two aircraft -- one Boeing 737-300 and one Fokker 100 -- were flown to Vienna because they are owned by the Austrian Airlines Group. Austrian said that without the government sticking to its commitment, there was no way of turning around the unprofitable carrier.
JetBlue's market growth could reach the double digits in 2007, with CEO David Neeleman noting that as many as 10 new cities could pop up on the carrier's route map this year. Neeleman made those comments to analysts yesterday, pointing out JetBlue would add more destinations on top of the already announced markets of Chicago, San Francisco and White Plains. The carrier is also considering selling more planes in 2007 after selling five Airbus A320s in 2006, exist, said CFO John Harvey.
UPS yesterday reported a fourth-quarter net profit of $1.13 billion and a 10% earnings increase, although predictions of 6%-10% earnings growth for 2007 were lower than analyst expectations.
Former DOT Secretary Samuel Skinner is now the vice chairman of Virgin America's board. At the same time, the carrier filed documentation to support its revised corporate structure. Virgin said it has given everyone complete transparency "down to the minute detail," to show its seriousness to get its application approved.
Competition for the two available within-perimeter slot exemptions at Washington National Airport will be fierce, as AirTran, ATA, Comair, Midwest and US Airways each filed applications with the U.S. Transportation Dept. for them.
By: Lori Ranson, Aviation Daily Aircraft ownership costs of network carriers dipped below those of their low-cost rivals in the second and third quarters of 2006, bolstering the trend that cost gaps between U.S. network and low-cost airlines are shrinking. Factors such as average age, size and a carrier's credit make it difficult to analyze ownership costs, but, nonetheless, macro trends show network airlines have clearly made strides in cutting equipment expenses. (See related chart below.)
The Italian government is pleased: The fact that 11 suitors expressed an interest in acquiring the state's holding in Alitalia is "a demonstration of the quality of the [privatization] process," said Italian Transport Minister Alessandro Bianchi. This "liberates [us] from the background noise insinuating that the company was in such a bad state that no one would reply" to the call for tender, Bianchi added.
House lawmakers are proposing to fund FAA's operations budget at levels requested by the agency, meaning FAA would not have to furlough employees to meet a government-wide funding freeze. Democratic lawmakers yesterday submitted a joint resolution that would -- as expected -- extend a continuing resolution for most government departments through Sept. 30. This would effectively keep most spending at fiscal 2006 levels.
US Airways CEO Doug Parker yesterday ruled out -- virtually -- a Delta takeover after Delta exits Chapter 11 bankruptcy protection, and he told Delta's maverick creditors not to bother trying to block Delta's stand-alone plans. Members of Delta's official creditors committee "know exactly what they have to do" by Feb. 1, the deadline for accepting US Airways' merger offer, Parker told securities analysts and media in a conference call. "And they know that if they don't do it, we're gone."
The Canadian Air Transport Security Authority has selected Labcal Technologies' Be.U Mobile fingerprint matching system to authenticate Restricted Area Identification Cards for airport employees at 29 facilities. CATSA announced the RAIC program in November 2006 (DAILY, Nov. 14). RAIC is similar to the U.S.'s Transportation Worker Identification Credential program.
Virgin Atlantic has become the latest carrier to sign a deal to offer Verified Identity Pass's Clear Registered Traveler (RT) program card to its passengers. Virgin will launch Clear at the airline's Terminal B at Newark Liberty Airport by mid-March. Online enrollment is already available, and airport enrollment will be available starting in February. Verified ID will also have a mobile enrollment unit in the lobby of New York's Hyatt Regency Grand Central on Feb. 19. -BW
BAA unveiled a plan that will cut the development costs of a second runway at London Stansted Airport by 17.5% or GBP1.4 billion (US$2.7 billion) from original projections released in December 2005. The plan also notes that the land needed for the new runway has dropped 22%. The new runway and terminal, with an initial capacity of 10 million passengers a year, are planned to open in 2015, said BAA. Stansted's full development will not be completed until 2030, when the airport will handle 68 million passengers a year, it added.
GOL plans to introduce cost-cutting measures in 2007 to combat a fourth-quarter 2006 earnings slide primarily caused operational challenges spurred by air traffic control in Brazil. The company, however, is sticking to capacity guidance for the first quarter, claiming demand in the country is still promising.
The European Commission's Directorate General for Transport and the General Civil Aviation Authority of the United Arab Emirates signed a new "horizontal" air agreement, in an effort to remove the illegal nationality clauses embedded in the existing 23 bilateral accords between European Union countries and the UAE.
FAA intends to lift the mandatory retirement age for airline pilots from 60 to 65, although the rule will not be finished until next year, agency Administrator Marion Blakey said yesterday.
Boeing says its 787 customers have accepted the manufacturer's decision to abandon plans for a wireless inflight entertainment system in the new jet. "Customers are receiving that solution well, and are not unhappy with it," a spokeswoman says. By opting for a wired IFE system, Boeing can save about 150 lbs. in weight. The airline is holding to its prediction of a May 2008 delivery date for the 787, and is expected to discuss the schedule for the first flight during today's earnings call.
The European Union Council of Ministers this week is debating a draft proposal to present to the U.S. to lay the groundwork before the interim agreement on passenger name record data transfer expires on July 31, a senior EU official told The DAILY. In order to meet the July 31 deadline, a high-level contact group of senior Dept. of Homeland Security and EU officials is expected to meet next month in Washington. The group's mandate is to determine common ground in data protection, with an eye to eventually creating a mutually acceptable standard.
