FAA Administrator Marion Blakey thinks Congress needs to consider the agency's proposal for future funding of the agency this year, to ensure a framework is established before current funds expire next year. The White House wants an overhaul of how FAA is funded (DAILY, March 9), and FAA's proposal is currently resting with the Office of Management and Budget.
SkyWest is offering 4 million shares at a price of $26.05 to net proceeds of about $99.3 million. The airline plans to use funds from the offering -- excluding overallotments -- to repay short-term debt and cut debt in a revolving credit facility and for working capital and general corporate purposes.
Eurocontrol has just completed a six-week simulation of gate-to-gate air traffic management concepts that the agency hopes will provide new ways to handle expected traffic increases. The simulation was carried out at the Eurocontrol Experimental Center in Bretigny, France. Detailed results of the simulation will be released publicly this fall, and the project will establish an operational and technical baseline to which improvements can be added later. Gate-to-gate concepts are aimed at making traffic flows more efficient through ATM improvements.
Shares of Spanish airline Iberia dropped by 1.5% after Spanish daily el Mundo reported CEO Angel Mullor may step down in June. The newspaper quoted sources on Iberia's board of directors and cited difficulties in moving to Terminal 2 at Madrid Barajas airport as a possible reason. Iberia did not confirm the report.
Aloha Airlines and Mesa Air Group are opposing a move by Hawaii's DOT to relocate new interisland carrier go! The DOT has moved go! from the commuter terminal to the Neighbor Island terminal. The Neighbor Island terminal does not have jetbridges for loading passengers. Both the Hawaii DOT and Mesa say they are negotiating to resolve the situation.
Emirates plans to launch a third daily flight to New York Kennedy on Oct. 29, The DAILY has learned, which will represent the fastest the airline has grown capacity to single airport. The route will be operated with a Boeing 777-300ER and will be equipped with a new business-class product to be unveiled later this year. The service will operate with a stop in Hamburg, airline sources said, but the other two flights will remain nonstop flights to Dubai.
Alitalia this week signed a $2.5 million deal with Sabre Airline Solutions to use a new revenue management system. The airline also will use the Sabre consulting services "to stem millions of dollars of revenue leakage each year," Sabre said. Alitalia will use two components of the SabreSonic Passenger Solutions packed to reduce revenue leakage. The GDS Analysis tool gives Alitalia the ability to evaluate fares and availability data on each global distribution system "to ensure these reflect accurately the actual fares in its reservations system." -SL
Aeromar will be allowed to carry Aeromexico's code on its charter flights from both Monterrey to Corpus Christi (DAILY, Feb. 3) after winning an exemption and statement of authorization from the U.S. Transportation Dept. DOT did not act on the portion of the joint application seeking similar rights for Reynosa-Corpus Christi, as the Transportation Security Administration has not yet reviewed the Mexican airport as part of its Foreign Airports Assessment Program [OST-2006-23702]. -ARS
Airbus head Gustav Humbert says the manufacturer is considering airline calls for changes to the A350 design, but he warned that Airbus will not make a knee-jerk reaction.
Boeing shares jumped about 1.5% yesterday on news that Chinese officials were poised to sign orders for more of the 150 Boeing 737s that China committed to last year. Chinese airlines have already placed firm orders for 70 of the 150 737s, and the manufacturer has been negotiating orders for the remaining 80. Yesterday, China Eastern confirmed an order for 16 737s, to be delivered in 2009 and 2010.
Delta will seasonally swap its mainline service with Delta Connection carrier Atlantic Southeast Airlines on the Atlanta-Merida, Mexico, route, starting Aug. 1. Delta will also use the Connection carrier to supplement its mainline service on Atlanta-Cozumel during the peak season, but ASA would fly solo in the off-season, effective Sept. 1.
The National Air Traffic Controllers Association this week plans to launch a national "multi-million-dollar" television advertising campaign to publicize its opposition to the FAA's contract proposal. The 30-second ad highlights NATCA's argument that pay cuts will encourage more controllers to retire. The ad also calls for public support for congressional bills that would prevent FAA from imposing a contract.
The Air Transport Association yesterday repeated calls for air traffic management improvements to help reduce the industry's fuel bill. ATA noted that crude oil prices are expected to average nearly $70 per barrel this summer, and this will "hamper the industry's widespread efforts to reverse the losses that have plagued the airlines in recent years." Benchmark crude oil averaged $63.27 in the first quarter -- a 27% increase from last year -- and the average price of jet fuel rose about 40 cents per gallon to $1.85, said ATA.
As St. Louis Lambert Airport prepares to open its new runway April 13, its airport director is deflecting criticism that the additional capacity is no longer needed. When the decision was made to add the runway in 1998, TWA was still operating a large hub at the airport.
America West won from the U.S. Transportation Dept. exemptions to serve Sweden and Portugal, authority the carrier needed for new service US Airways expects to launch this summer (DAILY, Feb. 10). America West, which will continue to operate with its own certificates and authorities until it is merged with US Airways into a single certificate, will offer the service initially under a code share with US Airways. The exemptions, however, also give America West authority to operate the flights with its own aircraft, if necessary [OST-2006-24060].
Air Berlin recorded a EUR115.9 million (US$140.6 million) net loss in 2005, reported airline CFO Ulf Huettmeyer, a figure much higher than was expected by most observers. The airline attributed the loss to high fuel prices and a lack of hedging. Germany's second-largest carrier never before revealed financial results other than revenues but has been forced to release more information on its financial performance in preparation for its planned initial public offering (DAILY, March 9).
Delta can now carry China Southern's code on flights from Los Angeles to Cincinnati, Fort Lauderdale, Hartford, Orlando, Salt Lake City and Tampa, under newly won authority from the U.S. Transportation Dept. [OST-1997-2653]. The carriers last winter applied to amend their code-share authority, so that Delta could put the CZ code on its flights between China Southern's approved U.S. gateways and points within the U.S., and China Southern could carry Delta's code on U.S.-China flights and intra-China flights operated from Delta's Chinese gateways.
Air Canada yesterday hiked its fares as much as C$10 per flight to offset rising record high fuel prices. The increase is effective immediately and it applies to most fare types, including published, web and other special fares for travel on Air Canada and Air Canada Jazz within Canada and between Canada and the U.S. Base fares for flights within Canada each way rose by C$6 on short-haul flights up to 300 miles, C$8 on medium-haul flights of 301-1,000 miles, and C$10 on long-haul flights of 1,001 miles and more.
Amira Air, based in Vienna, wants an exemption and foreign carrier permit to provide on-demand executive charters between points in Austria, third countries and the U.S. Amira Air flies ad hoc charters within Europe, as well as to Eastern Europe and Asia/Pacific locales. The carrier operates a Challenger 604, Challenger 300 and one Learjet 60 and expects to add a second Learjet 60 and Global Express jet to its fleet soon. Amira Air will also operate a second Challenger 300 by the end of 2006 [OST-2006-245355].
