Aviation Daily

Steven Lott
Seattle-Tacoma Airport this week ended the shuttle bus between Concourse C and the South Satellite terminal to cut costs. Alaska Airlines, Horizon Air and Northwest jointly operated the bus to ferry customers and employees between the two terminals. According to the airlines, there is less of a need for the shuttle following the opening of the new central terminal and connector train.

William Dennis
A controversial award of contracts to modernize the airports at Delhi and Mumbai in India -- a sign that the government will proceed with privatization efforts -- prompted strike threats from workers who fear they could lose their jobs. Workers at the airports threatened to strike unless the government withdraws its decision.

Staff
Dominican Republic-based startup Aerolinea Dominicana will launch operations this year, reports DAILY affiliate AvNews Latin America & Caribbean. The airline, funded by local and international partners including U.S.-based Global Aviation Enabling, will serve Europe and regional markets.

Staff
The Senate Commerce Committee on March 28 plans to hold the first of a series of hearings to review the FAA budget and the future of the aviation trust fund, says Chairman Sen. Ted Stevens (R-Alaska). Stevens also told an American Bar Association aviation conference he is developing legislative proposals for bonds to raise money to upgrade the air traffic control system.

Lori Ranson
Frontier won approval from its board of directors to create a Delaware holding company, under which Frontier Airlines will become a subsidiary of Frontier Airlines Holdings. Current airline shareholders would become stockholders in the new company. A special shareholders meeting is tentatively scheduled on March 27 to approve the plan. In a Securities and Exch- ange Commission filing, Frontier said the holding company will give it the flexibility to acquire other businesses or enter joint ventures, although it has no immediate plans.

Annette Santiago
An anonymous individual sent the U.S. Transportation Dept. a copy of a news story that may arouse concerns about the ownership of niche carrier Xtra Airways, which is trying to win DOT exemptions to launch international flights (DAILY, Jan. 23). The story, which appeared on the Caribbean Travel News web site on Oct. 21, 2005, tells of nonstop Boston-Barbados flights offered by TNT Vacations. "Xtra Airways, owned by Avion Group -- a large international aviation corporation" -- however, would provide the Sunday-only flights.

Annette Santiago
Delta will continue to offer daily service between Los Angeles and Guadalajara, ASA told the U.S. Transportation Dept. as it withdrew its application to win Delta's exemption for the market. Delta, one of two carriers designated for the city-pair, said it would give up its designation "if and only if" ASA won its exemption, which would let ASA launch Delta Connection service on the route (DAILY, Nov. 30, 2005).

Staff
Continental and Alitalia in one month will begin code sharing on Alitalia's flights from Milan to Mumbai. Continental's code will also appear on Alitalia Express flights from Milan to Belgrade but only after FAA approves Continental's audit of the Alitalia subsidiary [OST-2004-19210].

By Adrian Schofield
Boeing this week recorded its first orders of 2006, with AeroMexico ordering six 737s for its fleet modernization plan.

Luis Zalamea
Nearly one month after a bridge collapse cut off the convenient link to Venezuela's Simon Bolivar Airport in Maiquetia, government officials are beginning to calculate the cost of the incident for non-aviation businesses and predict that the country's inflation rate will rise to 16% this year as a result. The federal government granted a relief subsidy of $1.5 billion to businesses and workers in the state of Vargas, where Maiquetia and the major seaport of LaGuaira are located. It also subsidized the airline sector with a 20% cut in fuel prices.

Steven Lott
British Airways signed a significant deal with Rockwell Collins to upgrade its inflight entertainment system with audio/video on demand, daily news and audio jukebox capabilities.

Staff
Iberia's European fares are in line with low-cost carriers, Chief Operating Officer Angel Mullor said this week. The airline is getting average unit revenue of about EUR70 (US$84) on flights to several locations, which means "we are very close to what in the end has to be paid with these other carriers, except, naturally, special offers that they make," Mullor said.

Steven Lott
US Airways yesterday became the latest U.S. carrier to renew its full-content agreement with Sabre by signing a five-year deal as the airline sees the channel as an important link to business travelers.

Luis Zalamea
Varig will extend to Oct. 28 daylight flights between Sao Paulo Guarulhas Airport and New York that the airline usually only operates during the Christmas/New Year holiday season to generate cash flow. The company, which is in midst of restructuring, extended the offer to meet unprecedented demand, which has produced an 80% load factor on the service. Varig also continues to operate daily night flights between the two points. -LZ

Eclat Consulting

Staff
Aeromar and Aeromexico will code share on the Mexican charter carrier's flights from Monterrery to Reynosa and Corpus Christi, starting Feb. 13. The two carriers applied to the U.S. Dept. of Transportation for the necessary exemptions and authorizations. Mexico's civil aviation department previously approved the plans [OST-2006-23702].

Staff
The U.S. is filing a complaint with the World Trade Organization about additional European subsidies to Airbus, granted this time by the Welsh authorities in the U.K. U.S. Trade Representative Rob Portman is filing a so-called "additional consultation request" to the continuing WTO case, following a decision by the Welsh Assembly to grant GBP5.2 million (US$9.25 million) in support for worker training related to the Airbus A350 program. The move will ensure the new subsidies' inclusion in the current case.

Staff
The U.S. Transportation Dept. yesterday announced $56.5 million in new grants for Los Angeles Airport's South Airfield project. Of the total, $29.5 million will be used to help pay for the relocation of one of the airport's new runways and the building of a new taxiway. This brings the total allocated to this part of the project to $68.3 million, with this total expected to eventually top $100 million. The rest of the new grants -- $27 million -- will be used to soundproof more than 500 homes.

Staff
Engine Lease Finance Corp. and DVB Bank struck a deal to co-invest in 13 engines acquired from the ELF portfolio through a new venture -- Deucalion Engine Leasing (Ireland) Ltd. Engines covered under the agreement include three GE CF6-80s, three CFM International CFM56s, three IAE V2500s, one Rolls-Royce AE3007, two JT8D-200s and one Pratt & Whitney PW4000.

Seabury Airline Planning Group

Annette Santiago
America West and Qantas will code share on the U.S. carrier's flights from San Francisco to Phoenix and Las Vegas [OST-2004-19252], following approval by the U.S. Transportation Dept. The carriers also code share on America West's flights from Los Angeles to Phoenix and Edmonton, Canada [OST-2004-19252]. America West also won exemptions for operations from Charlotte and Philadelphia to the Cayman Islands, which it will use to code share on sister carrier US Airways' flights [OST-2005-23148]. -ARS

Annette Santiago
Thai Airways won exemptions from the U.S. Transportation Dept. to operate scheduled direct, third-country passenger and cargo flights and charters to the U.S. (DAILY, Jan. 25). The authority was made possible by the open-skies agreement between the U.S. and Thailand and will remain in effect until Jan. 31, 2008 [OST-2006-23693]. -ARS

Steven Lott
South African Airways, fed up with the limitations on its London flights caused by the fuel rationing at London Heathrow Airport, formed a team to find alternatives and lobby for changes.