Energy analysts at Raymond James predict a gradual increase in crude oil prices throughout 2007 to about $70 per barrel. West Texas Intermediate (WTI) price estimates for each quarter are $63 for the first, $66 for the second, $69 for the third and $70 for the fourth. Those same analysts also estimate $70B crude prices for 2008.
The eight largest U.S. airlines are expected to post a $39 million pretax loss for the fourth quarter, according to predictions from Merrill Lynch. "While the loss is a bit of a setback from where estimates were at the start of the quarter, it still represents meaningful improvement from last year's pretax loss of $1.9 billion," says analyst Michael Linenberg. The culprits for the downward revision in estimates were higher fuel prices and more modest revenue growth.
Aerolineas del Sur (ADS), a Marsans/Aerolineas Argentinas subsidiary that operates domestically in Chile, aims to increase market share from its current 14% to 25% by yearend through low-fare strategies. As part of a promotion featuring the tagline, "Fly anywhere in Chile for $38," ADS offers low fares for the summer season in the Southern Hemisphere, valid from January through June and subject to advance sales. The program has so far exceeded the company's expectations, ADS reports. -LZ
To list an event, send information in calendar format to Ingrid Lee at [email protected] JAN. 21-24 -- NBAA Schedulers and Dispatchers Conference, Phoenix, Ariz., www.nbaa.org JAN. 27 -- Airline Pilot Job Fair hosted by AIR, Inc., Dallas, Texas Sheraton Grand Hotel @ DFW., 1-800-JET-JOBS (538-5627), www.jet-jobs.com, email: Customer Service at [email protected]. JAN. 29-30 -- SMi: Future MRO in Civil Aviation, London, +44 (0) 20 7827 6000, fax: +44 (0) 20 7827 6001, email: [email protected]
FAA last week proposed new security requirements that manufacturers must meet when designing new aircraft, increasing cockpit protection and making it harder to hide explosives in cabin areas.
International and domestic travelers -- some 708,000 in total -- accounted for a record 9.8% jump in traffic in Chile's skies last November, compared with the same 2005 period, the civil aviation board reported. LAN carried 54.1% of international passengers, followed by American (5.1%), Aerolineas Argentinas (4.6%) and Iberia (3.9%). Domestic traffic percentages by airlines were: Lan Express (63.4%), Sky Airlines (17.9%), LanChile (10.4%) and Aerolineas del Sur (7.5%). -LZ
Alaska Air and its pilots' union plan to start formal contract negotiations today in advance of the May 1 amendable date. The carrier and the Air Line Pilots Association unit have already developed a protocol for negotiations and exchanged openers on Nov. 15. Both sides talked about several non-economic sections of the contract in preliminary meetings.
Germany's air traffic controllers will announce today if they are going ahead with their planned strike (DAILY, Jan. 3). The Gewerkschaft der Flugsicherung (GdF) union said it has reviewed a pay proposal put on the table by air traffic control provider Deutsche Flugsicherung (DFS) without saying what decision it has made. A strike could happen as early as Saturday, with the union forced to giving 24 hours' notice.
And President-UPS Airlines John Beystehner stepped down from his positions in the company and on the board of directors, effective Jan. 2. UPS also elected CFO Scott Davis to the additional position of vice chairman.
Global passenger traffic growth rebounded in November, following six months of low growth rates, IATA said last week. Traffic increased 6.7% from November 2005, which was the highest monthly growth rate since May. This lifted the traffic growth for the year through November to 5.8%. The picture was not so bright for freight traffic, however, which saw a sluggish 3.1% rise in November.
Bedek Aviation Group won FAA's approval to repair and overhaul CFM International CFM56-7Bs that power Boeing 737-600s/700s/800s/ 900s. Bedek noted the certification brings the company closer to servicing all CFM56 engine types. Its goal is to win the nod to offer maintenance for CFM56-5s by yearend.
Northwest said it has reached a deal with Mesaba management and its unsecured creditors regarding the sale of Mesaba to its sole major airline partner. A meeting with Northwest's board is scheduled this week to consider the deal, which includes $145 million for Mesaba's creditors. Mesaba parent MAIR Holdings is one of the airline's creditors. The deal calls for Mesaba to submit its reorganization plan to the bankruptcy court Jan. 15, while Northwest plans to submit its outline to the court overseeing its Chapter 11 case Jan. 16.
Selected Robert Chiaradio to become general manager for operational plans and programs and named Kathleen Petrowsky acting federal security director for Chicago O'Hare International Airport.
FAA officials hope a new live report they're supplying to the Weather Channel will help educate the public about how prevailing weather conditions affect the aviation system nationwide. The two-minute report discusses weather and traffic management strategies and is conducted via telephone from the command center in Herndon, Va., on weekday mornings.
World Airways recently said it will operate cargo service between Addis Ababa and Brussels for Ethiopian Airlines. Under the $6.8 million contract, World will operate two DC-10-30Fs, one for five months and the other for three months. The flights are being introduced "primarily to transport perishables," World said.
Boeing may have only just squeaked past its previous record for overall aircraft deliveries in 2006, but it absolutely pulverized the existing record for freighter deliveries.
