Language added to appropriations legislation by House lawmakers sends a strong signal that Congress is concerned about the U.S. Transportation Dept.'s proposed rule on airline foreign ownership, but it appears that DOT will still press ahead with the rule.
The U.S. Transportation Dept. finalized its award of blanket route integration certificates to 24 U.S. airlines, part of moves by the department to simplify licensing procedures (DAILY, Dec. 20, 2005). The blanket certificates will eliminate the need for airlines to file for route integration authority when they win new routes or renew exemptions. The certificates are good for five years, effective March 6, and are subject to the department's standard certificate and route integration authority conditions [OST-2005-22228]. -ARS
Qantas yesterday granted a temporary reprieve on the outsourcing of its heavy maintenance operation but said it will still have to close its Boeing 747 heavy maintenance base in Sydney. The Sydney closure will mean the loss of about 480 jobs, although about 140 will be redeployed elsewhere in the company. The 747 work will be transferred to Avalon, Victoria, and the 767 heavy maintenance will continue at Brisbane. The future of narrowbody maintenance in Melbourne is under review.
Northwest is today scheduled to restart its daily nonstop service between Minneapolis/St. Paul and London after it canceled the service during the winter season due to high fuel prices. The carrier said it plans to "offer the service year-round" in the future.
Air Canada plans to boost its transborder network this summer with two new long-haul routes from Toronto. Effective June 2, the carrier will start daily nonstop service to Salt Lake City, using 75-seat Bombardier CRJ-705s operated by Air Canada Jazz. The carrier on July 1 also plans new service from Toronto to San Diego, using 120-seat Airbus A319s. With the addition of the two new routes, the airline plans to operate more than 236 flights per day to and from Toronto and 43 destinations in the U.S.
Southwest is pushing the city councils of Dallas and Fort Worth to vote against creating a congressional moratorium that would delay acting on proposed Wright Amendment changes until Oct. 1.
Emirates later this year plans to launch a second daily flight from Dubai to Zurich thanks to growing demand on the route. The second daily flight will launch Oct. 29 with an Airbus A330-200 configured for three classes. The carrier reported month-to-month growth of passengers in both directions on the single daily flight.
United recently closed a deal to move its Washington Dulles Express operation into Concourse A by May 1, taking over the former Independence Air gates. Concourse A previously served as a United Express facility before Atlantic Coast went independent and changed its name. When Independence Air launched, Express airlines were forced to move into remote Concourse G, which was built quickly to accommodate the carriers' operations.
United recently became the latest U.S. airline to sign a deal with XM Satellite Radio to use the company's music programming as part of the inflight entertainment system. Unlike AirTran, which has live XM broadcasts on its flights, United will use prepackaged programming. United will offer up to 19 channels as part of the IFE system.
UPS on June 2 will launch service from Louisville to Chihuahua and Juarez in Mexico. The carrier will use its Boeing 757 freighters, and will co-terminalize the services in Mexico [OST-2006-24113].
Xtra Airways won from the U.S. Transportation Dept. two-year exemptions to offer service between the U.S. and the Dominican Republic and Costa Rica, and for the Memphis/Atlanta/Orlando-Cancun routes (DAILY, Jan. 23). Though Xtra intends to operate services on a point-to-point roundtrip basis, it also won the authority to serve the points on a co-terminal basis [OST-2006-23666]. -ARS
JetBlue plans to place Embraer 190s on the majority of its new destinations this year, eyeing cities with high-priced regional jet service and markets to feed its growing network. The airline has already introduced service with the planes to Boston, Austin and Richmond. Airline VP-Route Planning Dave Ulmer told The DAILY that JetBlue would probably add about six to eight more Embraer 190 cities and a couple of Airbus 320 destinations, "which will give us synergy at JFK."
Air Berlin confirmed yesterday it is preparing an initial public offering to fund its rapid growth. The airline, alleged to be considering the step for months, ended speculation at the International Tourism Exchange in Berlin. CEO Joachim Hunold did not offer much information about the planned listing, saying the airline's current owners plan to retain their stakes in part, but he declined to reveal anything more on the timing and size of the placement.
The European Commission cleared EUR25 million in rescue aid for insolvent Italian carrier Volare, whose sale to Alitalia is currently held up by a complex legal battle. The EC authorized a EUR25 million (US$29.8 million) loan guarantee from the Italian government, scheduled to run out at the latest on Sept. 8, 2006. "The jobs of 720 persons directly employed by the firm and 200 indirectly employed by it depend on the firm's future," the EC said. Also, the EU's "one time, last time" rule will apply to Volare's state aid.
Most of the aircraft of Indonesian regional carrier Merpati Nusantara Airlines fleet are parked at airports across the country, grounded as they await repairs or heavy maintenance. The fleet has dwindled in size since last year, reflecting Merpati's financial problems. Of a total 57 aircraft, only 38 are in service. The cash-strapped, state-owned airline also moved its base from Jakarta's Soekarno-Hatta International Airport to the older Halim Perdana Kusuma Airport, enticed by lower landing and parking fees.
Ryanair plans to cut flights from Cork because of rising costs at the airport. The airline said prices rose for 38 various services, including a "300% increase in the rental charge of check-in and ticket desks." Airport officials weren't available to confirm those estimates. Ryanair's service from Cork to Liverpool will drop from seven weekly flights to four, three of which will operate from Kerry Airport.
Splitting ATA's business between military and charters and an ever-growing relationship with Southwest, CEO John Dennison predicts a breakeven year for the airline now that it has cleared bankruptcy and has $100 million in financing. The airline officially left Chapter 11 behind late last month, emerging with a business plan resting strongly on military and charter flights and a Southwest code share underpinning its scheduled service.
Trans States Airlines must continue to operate its American Connection essential air service from Joplin, Mo., to St. Louis until the U.S. Transportation Dept. can find another carrier interested in offering the service. Trans States last month sent the department a notice of intent to suspend service on the route on May 11, almost two and a half months before its two-year term for the subsidized flying was set to expire. DOT prohibited Trans States from quitting the route because its departure would leave Joplin without air service.
American yesterday reported warned that a new agreement between Sabre and Amadeus IT Group to share content may violate the contracts the airline has with the global distribution systems.
Cathay Pacific yesterday posted a sharp 25% drop in 2005 profits to HK$3.3 billion (US$425 million) as even record revenues failed to offset high fuel prices. Revenues jumped 19.1% to a record HK$50.9 billion (US$6.5 billion), but fuel expenses for the year increased 67.2% to HK$15.6 billion (US$2 billion). Passenger and cargo fuel surcharges only partly offset the additional cost, the airline said. Cathay's unit cost excluding fuel fell 1.9% thanks to productivity improvements and overhead cost cuts.
