POGO Jets is back on track to launch its point-to-point "air limo" service as early as June 2008 and expects to turn a profit by early 2010 as it works to ramp up its fleet of very light jets. Six months ago, former AMR Corp. Chairman and POGO CEO Robert Crandall said in Washington that he didn't expect to start until 2009 at the earliest because he didn't believe the VLJs being built fit his model (DAILY, May 26). At the time, he said none of the proposed aircraft were going to be "cheap to buy, cheap to run and very reliable."
Airports of Thailand (AOT) will not bow to pressure from any quarters to abandon its plan to raise charges at Bangkok's Suvarnabhumi Airport by 15% on April 1, and an AOT official confirmed the agency will go ahead with the increase to help offset higher operating costs. Speaking to The DAILY in a telephone interview from Bangkok, the official said the proposed hike is justified as AOT needs to recoup part of the investment it forked out to build the airport.
Weekly revenues from domestic and international ticket sales have reached $1 million per week, Lloyd Aereo Boliviano CEO Franklin Taendler told reporters last week.
FedEx has significantly increased the extent of its U.K. domestic operation with the purchase of express ground company ANC for GBP120 million (US$234 million). The transaction will allow FedEx to "directly serve the entire U.K. domestic market" as well as broadening its service options, FedEx said. ANC has annual revenues of GBP145 million with about 4,500 employees. The company operates a fleet of 2,200 vehicles from 80 locations. FedEx said the takeover allows it to be a single provider for domestic and international shipping in the U.K.
Flight operations at Alaska Airlines and Horizon Air got back to normal during the weekend after a damaging windstorm slammed into the Pacific Northwest, cutting off power to thousands of businesses and more than 1 million homes.
Mexican startup Volaris recently joined ALTA, the Latin American Air Transport Association, and the group also added a new affiliate member, Accenture.
30 Years Ago Dec. 23, 1976 -- An Dec. 12 article in The New York Times describing how a reporter purchased a roundtrip ticket to Europe in the 'grey' market for $350 has resulted in a boom in the underground industry. Those active in the field, many of whom have been subpoenaed by CAB, say 'It's like the middle of summer. There is hardly a seat available." 20 Years Ago
With 2007 approaching quickly, the U.S. Transportation Dept. began accepting proposals from carriers interested in providing essential air service to Altoona and Johnstown, Pa., for the two-year period beginning June 1. Colgan Air holds the current contract, flying as US Airways Express, and has received a total $1,358,551 in annual subsidy since June 2005 to fly 18 weekly nonstops between Altoona and Washington Dulles and 25 weekly trips between Johnstown and Pittsburgh [OST-2002-11451, -11446].
LAN's systemwide passenger traffic jumped 25% in November, outpacing the 20.2% capacity growth, most of which came from increases in international markets.
Alaska Airlines has no plans to pursue a merger with other carriers, says CEO Bill Ayer, amid the flurry of consolidation talk. "We think remaining relatively small and independent is the right approach," he tells the Wings Club in New York. Alaska has plans to grow on the West Coast, and "hopefully, we'll become even a little bit bigger in cities like New York and Washington."
Spanish international low-cost carrier Air Madrid Friday suspended operations and laid the blame on Spain's Civil Aviation Authority (AC), which threatened to suspend the carrier's license.
The consortium launching a takeover of Qantas is offering airline CEO Geoff Dixon an incentive plan worth up to A$60 million ($47 million), as well as his existing salary and bonus plans. Dixon says he will donate the entire incentive amount to a charitable trust. The incentive would be worth A$30 million if Qantas stock produces a 15% annual return over five years, and A$60 million at a 25% return.
The International Air Transport Association (IATA) last week unveiled plans to hold a pilot test next year of its electronic freight program, which aims to reduce the amount of paper now used in the air cargo business.
Singapore Airlines recently signed a deal with Amadeus to have the distribution company do an evaluation and create a plan for the carrier. If the evaluation is successful, the airline would become the first Asian carrier to switch its current legacy passenger service systems to Amadeus Altea Customer Management Solution, the company said. Neither company said how long it will take to conduct the evaluation and come up with a plan.
Raleigh-Durham International Airport will spend an extra $140 million to tear down Terminal C and build an entirely new structure, scheduled to open in 2008. The Raleigh-Durham Airport Authority originally approved building a new $430 million north concourse on the original terminal, which would have added ticketing, security checkpoints and baggage claims. The plan now is to build a brand-new facility with north and south concourses costing $570 million, said spokeswoman Mindy Hamlin.
Named Mark Haught director of transport security for the Eastern area, Gerald Chapman director of the Central area, David Beecroft as transport security director for the Western area and Mike Golden as assistant administrator-operational process and technology.
Number of modern jets parked in the desert this month decreased 3.5% to 557 from 577 last month, according to the Ascend fleet database. Most of the decline "related to aircraft returning to service after heavy maintenance or operator/owner transfers," says Merrill Lynch analyst Ron Epstein. "We expect additional aircraft to enter service as we enter the holiday season."
Appointed Greg Taylor to senior VP-corporate planning and strategy, Kevin Knight to senior VP-planning, Mike Dingboom to VP-finance for United Services, William Yantiss to head of safety and security and promoted Michael Whitaker to senior VP-alliances, international and regulatory affairs.
British Airways last week appeared to be making progress toward an agreement with its unions on pension rule changes, although a separate labor dispute with cabin crew threatens to escalate.
Flyglobespan's exemption for U.S. operations was changed by DOT to give the carrier authority to serve the Liverpool-New York and Glasgow-Boston/-New York routes via Knock, Ireland.
FAA's plans to increase controller hiring appear to be under threat from congressional foot-dragging on fiscal 2007 spending bills. Democratic leaders have proposed extending fiscal 2006 funding levels through the end of the current fiscal year for most non-defense departments. FAA's Air Traffic Organization spelled out some of the consequences in a staff memo last week, including a hiring freeze for administrative positions. FAA will also consider freezing controller and technician hiring after March 31 (DAILY, Dec. 15).
