JetBlue says that it is capturing more passengers and revenue from its tie-ups with Galileo, Sabre and Worldspan than predicted and that the GDS business also contributes to an upward revision of its margins for the fourth quarter. The airline started listing its inventory with the three GDS companies during the third quarter.
The four SkyTeam alliance carriers serving Sao Paulo recently moved together to operate from a new, single facility. Aeromexico, Air France, Alitalia and KLM are now operating from the new facility, located in Terminal 1 Wing A of GRU. The facility is also the first SkyTeam-centric co-location in the group's network that features participating carriers "equally," the alliance said.
Construction crews broke ground yesterday at Shanghai Pudong Airport on the first foreign-controlled maintenance, repair and overhaul joint-venture facility in China that will let Boeing tap into the booming Chinese MRO market.
TSA yesterday issued an interim final rule (IFR) proposing the extension of compliance dates for some air cargo security requirements, from three to six months.
Oasis Hong Kong Airlines yesterday was forced to delay indefinitely the launch of its first flights because it hasn't won overflight approvals from Russia.
Virgin Blue plans to detail plans to add more initiatives over the next 12-15 months to complement the introduction of a loyalty program, lounges and interlining to capture business outside the leisure traveler market. The carrier unveiled those plans last February, and since then Toll Holdings has become its major shareholder.
Boeing yesterday revealed it may have to spend more than expected on research and development for both the 787 and 747-8, and while the increase is portrayed mainly as a contingency, the manufacturer admits it is still working to reduce weight on the 787 and has been forced to change some supplier arrangements. The new R&D forecast is $3.2 billion for this year, and $3.4 billion in 2007, compared with previous estimates of $3 billion in each year. This is the second consecutive quarter that Boeing has lifted R&D forecasts.
Continental today plans to revive the fortune cookie war in an attempt to win U.S.-China frequencies, using a tactic tried by United and American six years ago in a previous China route case. Continental employees today in Washington will hand out cookies on Capitol Hill and at the Transportation Dept. with messages saying that the proposed 2007 Newark-Shanghai flight is "the right route for the most people." Another says "UA & NW: Too Many Routes, Too Few People."
LAN is applying a new business model on short-haul domestic routes to generate additional profits and transfer them to users as upgraded, simpler and quicker operations, and lower fares.
Midwest Air Group yesterday boosted the number of directors on its board from eight to nine, and elected James Boris to the new position. Boris is chairman of JB Capital Management, LLC, a private investment firm. He serves on the boards of directors of Peoples Energy Corp., Smurfit-Stone Container Corp. and the Chicago Board Options Exchange. "His expertise and experience will be a welcome addition in our efforts to provide shareholders with a rewarding invest- ment experience despite the challenging industry environment," said Chairman and CEO Tim Hoeksema.
The passenger departure tax at Disdado Macapagal International Airport in Clark, Philippines, increased from PHP150 to PHP500 pesos (US$3 to US$10) for international flights. The increase comes as a surprise. In February, the operator of the facility, Clark International Airport Authority (CIAA), said that it would not raise departure tax for international flights for the next two years as it plans to develop the airport into a hub for low-fare airlines. An official at CIAA said the increase was inevitable due to rising labor costs.
Mesaba's executives said they're available to meet with mediators as the Oct. 26 deadline approaches for the company to impose contract changes on pilots, flight attendants and mechanics. Earlier this week, the bankruptcy court granted Mesaba's strike injunction request, which prohibits its labor groups from striking. -LR
JetBlue claims even though it is cutting capacity targets for 2007, it's 14%-17% range is still above industry averages of 3%-5%, and the slower growth will actually strengthen its balance sheet. Previous estimates of 2007 capacity growth were 18%-20%. CEO David Neeleman noted JetBlue's been examining cash flows and its balance sheet since April when it opted to sell five Airbus A320s and defer 12 deliveries from 2007-2009 and move them down the line.
Europe's fourth-largest, low-fare carrier, Copenhagen-based Sterling Airlines, is putting in place a five-year growth plan, marking the end of a tumultuous period that saw heavy losses. The current Sterling Airlines was created a year ago by the merger of two money-losing carriers, Sterling and Maersk Air. The combined airline has remained in the red, and just keeping it operating was a struggle at times, say company representatives. Losses last year surpassed $150 million and even in the first half of the year were still around $31.5 million.
Korean Air as early as next month will boost capacity from Seoul to Beijing and Shanghai. The carrier has already won rights from the Chinese government and is working to secure landing slots at both airports, reports President Jong Hee Lee in Seoul. The carrier now has eight weekly flights to Beijing and 11 to Shanghai, but Lee says the demand to both cities is high enough to support the new capacity.
German low-fare airline Germanwings plans to operate 40 Airbus A319s in 2009, says CEO Thomas Winkelmann; the airline currently has 24 aircraft but will take delivery of five A319s in 2007, seven in 2008 and four in 2009. Winkelmann expects the airline to increase revenues from EUR400 million in 2005 to EUR560 million (US$702 million) this year. The airline plans to carry 10 million passengers in 2008, up from an estimated 8.5 million this year.
American yesterday unveiled a tender to buy back up to $338 million in debt securities, more than double the amount of debt the airline has repurchased so far this year.
German Federal President Horst Koehler yesterday stopped the privatization of air traffic control provider DFS by refusing to sign a parliamentary bill that would have approved the selloff planned later this year. Koehler stated that the plan was unconstitutional, but he pointed out that parliament was free to make the necessary changes to the constitution. Members of both coalition parties CDU and SPD said they were willing to make the amendments and they have also gained support for the plans by the largest opposition party, FDP.
ICAO next month will introduce its new pilot license standard specifically for co-pilots, but pilot unions say they are concerned the new license will degrade safety. The multi-crew pilot license (MPL) will be recognized by ICAO from Nov. 23, and must also be recognized by ICAO member states even if they choose not to adopt the MPL themselves. The license "provides the aviation community with an opportunity to train pilots directly for co-pilot duties," according to ICAO.
