Continental warned that advance bookings are running slightly behind the levels seen a year ago, although the airline still expects small load factor and yield improvements in the third quarter. The airline's guidance update "paints a somewhat discouraging near-term demand picture," said JP Morgan analyst Jamie Baker. "It is becoming increasingly apparent that the industry is experiencing demand weakness, which we attribute primarily to heightened security measures and [the] resulting sluggish start to the business travel season," Baker said.
Five months into the relaunch of BA Connect, the carrier's head says he is pleased with the airline's progress in slashing costs and achieving its goal of returning to profitability within two years. British Airways detailed its plans in January to remake BA CitiExpress as BA Connect, which launched in March. At the time, carrier executives said that through the new structure BA Connect would cut costs by GBP35 million or 10%.
Peru's Aerocondor is investing in 120-seat Boeing 737NGs in preparation of the launch of scheduled international services in 2007, said founder and President Luis Palacin. The carrier, which saw its revenues grow 46% this year, initially will fly from Lima to Buenos Aires, Santiago (Chile) and Miami. Aerocondor's niche network saw the carrier pioneering flights to out-of-the-way and exotic destinations in Peru and charters to popular resort areas abroad.
Mexican low-cost carrier Avolar last week introduced a promotional fare to celebrate its first year in the market, but some analysts warned the move could spark a fare war. The airline is selling one-way travel between any of its 16 domestic destinations for a promotional fare of $46, plus taxes and services charges.
Lufthansa yesterday reached a deal that will see the airline pay $85 million to settle U.S. class action lawsuits resulting from a wide-ranging, cargo price-fixing inquiry earlier this year.
Leaders of the FedEx pilots union on Friday approved the tentative contract deal reached by the airline and union negotiators. The FedEx Master Executive Council of the Air Line Pilots Association voted unanimously to recommend that pilots ratify the agreement. Pilot voting will begin Sept. 18 and will close Oct. 17. ALPA said the deal includes industry-leading pay, as well as improved retirement benefits.
Tired of trying to fix BWIA West Indies Airways after years of losses, the government of the Republic of Trinidad and Tobago decided late last week to shutter the 66-year old airline and start from scratch by forming a new carrier to serve the islands.
Former Delta CEO Ron Allen yesterday joined the board of Interstate Hotels & Resorts, one of the largest independent hotel management companies in the U.S. Allen retired from Delta in July 1997 and serves on other boards, including The Coca-Cola Company, Aaron Rents, Inc., and Aircastle.
The recent U.K. aviation security scare -- and the resulting passenger restrictions -- could contribute to softening passenger demand, says a new report by Standard & Poor's analyst Philip Baggaley. The strong summer demand is already falling due to the traditional seasonal drop-off and a slowing U.S. economy, which will make it hard to determine how much of the reduction is due to security concerns, S&P says.
Named Craig Estep VP-Citation/Caravan operations; Rod Holter VP and general manager for Cessna-Independence, Kan.; Brad Thress VP-component operations, and Cub Marion VP-quality.
Passenger traffic worldwide rose 2.6% to 226.6 million in July 2006, compared with July 2005, according to statistics released by Airports Council International. International traffic rose 5% to 109.7 million year over year in July, while domestic traffic was flat, rising a slight 0.5% to 104.9 million. The Middle East region posted the highest growth year over year, rising 9.3% to 4.1 million passengers in July. Latin America reported the biggest drop in passenger traffic in July, down 6.3% to 7.1 million.
Eclipse Aviation, which won provisional FAA type certification for its Eclipse 500 Very Light Jet in July, now hopes to receive full type certification approval this month. FAA is still testing the Avio avionics systems from Avidyne, which had experienced software development delays, says CEO Vern Raburn. Eclipse also had to win approval for wingtip fuel tanks, which were added after the original design was issued.
Resignations and aircraft trouble are forcing Scenic Airlines to implement contingency plans on essential air service routes to comply with a U.S. Transportation Dept. order to maintain service on the routes until Air Midwest takes over the flying (DAILY, Sept. 5).
A plan to privatize transportation security officers at Key West Airport would help fund screeners at Marathon Airport if the Transportation Security Administration approves the measure.
To list an event, send information in calendar format to Ingrid Lee at [email protected] SEPT. 12 -- European Aviation Club luncheon featuring Wolfgang Mayrhuber, chairman and CEO, Lufthansa and AEA chairman for 2006, Hotel Bristol Stephanie, Brussels, 32 2 373 09 13, email: [email protected]. SEPT. 14 -- RBS Greenwich Capital Markets 1st Annual Aviation Symposium "Investing in Airlines and Airplanes," Mandarin Oriental Hotel, Columbus Circle, New York City, email: [email protected]
You can now register online for AVIATION WEEK events. Go to www.aviationweek.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) SEPT. 19-21 -- MRO Asia, Xiamen, China OCT. 24-26 -- MRO Europe, Amsterdam NOV. 13-15 -- Aerospace & Defense Programs, Phoenix
The European Commission is confident the European Union and the U.S. will reach a new agreement on the transfer of EU passenger name records by Sept. 30, in line with last May's EU court ruling. The court decided to scrap the existing accord on a technicality, ruling that its legal base was inadequate (DAILY, May 31). The court case was launched by the European Parliament, which claims the PNR accord violates EU privacy rules.
The European Union is still threatening to block Russia's accession to the World Trade Organization (DAILY, March 28) if no agreement is found to reform the system of Siberian overflight charges, which the Europeans consider excessive. European Union Transport Commissioner Jacques Barrot said he hoped the EU and Russia could find "the basis for an agreement" on the charges in time for the EU/Russia summit in November this year.
