By Steve Lott Eclat Analyst: Aaron Taylor The end of the deficit tunnel may be closer for some U.S. airlines than many think, as the recent, small improvement in yields and moderate drop in fuel prices make operating profits in 2006 more likely.
Mexican airport operator ASUR this week reported that passenger traffic across its nine airports sank 28.4% in December largely due to a drop in Cancun and Cozumel traffic following Hurricane Wilma. Transit and general aviation passengers are excluded from the report. International traffic to Cancun and Cozumel was down 46% and 85.5%, respectively, in December.
Precision Conversions won nods from U.S. and Chinese authorities for conversion of Boeing 757-200s powered by Pratt & Whitney engines. The company converted an aircraft owned by International Lease Finance Corp. that Shanghai Airlines will fly, and plans to convert another plane for ILFC-Shanghai. The 757-200PCF offered by Precision Conversions includes 15 full pallets, payloads of 62,000-72,000 pounds and 6,600 cubic feet of cargo space on the main deck. -LR
The European Court of Justice yesterday rejected the airlines' complaint against the European Union's new rules on compensation payments for denied boarding, delays and flight cancellations. The court confirmed the opinion voiced last year by the advocate general (DAILY, Sept. 9, 2005) in reaction to the legal challenges presented by IATA and the European Low Fares Airline Association.
Pemco this week started maintenance work on its first Southwest Boeing 737 as part of a deal the companies reached late last year. The maintenance, repair and overhaul company also reached a major agreement last year with Alaska Airlines to convert seven 737-400s from passenger to freighter and combo aircraft.
Capacity outpaced revenue passenger kilometers for member carriers of the Association of Asia Pacific Airlines in November. Available seat kilometres reached 59 million, while RPKs toaled 43 million, a 2.9% and 2.1% increase year over year, respectively. Load factors fell slightly, from 72.9% to 72.3%. AAPA has 17 airline members, including flag carriers from most Asian countries, Australia and New Zealand. -LR
The Transportation Security Administration promoted Paul Armes to Federal Security Director at Phoenix Sky Harbor Airport. Armes has been deputy FDS at Sky Harbor since December 2002, served at TSA headquarters in Washington and helped federalize Myrtle Beach Airport before assuming his TSA duties in Phoenix. Armes is also a retired U.S. Marine Corps Colonel. Douglas Hofsass is the new FSD at LaGuardia and will also oversee TSA operations at Westchester, White Plains, Long Island, Ronkonkoma and heliports in New York City.
FedEx joined American (DAILY, Jan. 9) in challenging Virgin Nigeria's bid to win an exemption to operate scheduled flights to the U.S., arguing that ownership and control of the airline are in doubt.
Aviall Services reached a new revenue-sharing deal with GE to become the exclusive supplier of aftermarket parts for the CF6 engine program, including the CF6-80C2 that is still being built. The company plans to manage 11 of GE's vendors and upgrade its quality standard from ISO 9001:2000 to AS9120 as part of the implementation. Company CEO Dan Komnenovich noted that Aviall's list of service will now include "the direct management of an OEM's manufacturing supply base." -LR
Following a record 2005 with 4.5% traffic growth, Europe will see a slightly slower average traffic growth rate of 3% this year, Eurocontrol said yesterday. Average daily passenger totals will top 2.5 million passengers this summer, compared with about 2 million a day in 2005. "While higher ticket prices may depress demand, [the traffic increase] will be driven by growth of low-cost carriers, expansion of the Turkish market and the development of the East European economy," said Eurocontrol.
FlyBe boosted its passenger count 27% year over year in December to 352,915, driven mainly by strong holiday sales on its newer regional routes. The Leeds-Bradford market had the largest growth at 71%. The airline added a single aircraft to its fleet between December 2004 and the same month last year, bringing the total to 30. -LR
EADS officials are applauding U.S. lawmakers for not including a clause in a defense appropriations bill that would have barred the Pentagon from buying a tanker from a company seen as receiving subsidies, a charge the U.S. has leveled against EADS affiliate Airbus. EADS Co-CEO Noel Forgeard said this a positive step, but he acknowledged the company, which has teamed with Northrop Grumman to bid on the tanker program, believes no contractual decision will be made until at least next year.
Northwest's pilot leadership warned management yesterday that the union is prepared to strike if the carrier moves ahead with a plan to create a Newco subsidiary that would operate more than 100 jets with 76-100 seats.
The court overseeing Mesaba's bankruptcy should rule during a hearing scheduled today on a request by the carrier to reject leases on 11 Saab 340Bs it leases from fellow Northwest Airlink carrier Pinnacle Airlines.
Civil aviation authorities in Chile and Colombia reported improved traffic in November 2005 in both the domestic and international sectors. Chile's international passenger traffic grew 10.2% to 3,667,246 passengers from January through November, compared with the same period in 2004. Domestic traffic increased 9.0% to 311,013. International cargo volume was up in November for the fourth consecutive month by 5.2% to 22,399 tons. Domestic cargo volume grew 4.3% in the same period, especially on long-hauls.
Air France-KLM posted a December jump in load factor thanks to strong traffic growth. Capacity rose 9% in the month, but traffic increased 11.9%, leading to 2.1-percentage-point load factor improvement to nearly 80%. The number of passenger carried rose 8% to 5.6 million. The Americas posted a significant increase, with traffic rising 16.3% on 13.7% higher capacity. Transatlantic loads reached 85.2%, up 1.9 points.
Austrian Airlines (AUA) will be the first European to relaunch scheduled operations into Iraq when its initiates twice-weekly Airbus A319 service from Vienna to Erbil, in northern Iraq, on March 9. "The city of Erbil in Kurdistan is a safe gateway into Iraq," explained AUA, which will add a third frequency in May.
The U.S. today in Washington will hold an informal government-to-government meeting with El Salvador representatives to talk about pricing issues. The U.S. signed an open-skies agreement with El Salvador in 1997.
World Airways pilots say that although no new negotiations have been scheduled, they are still willing to talk to management about a contract deal after the parties were officially released from mediation. The pilots, represented by the Teamsters union, and the airline were released by the National Mediation Board on Dec. 28, which triggered a 30-day, cooling-off period. The Teamsters said they are "ready and willing" to talk, but said the carrier "must come to the table to truly negotiate, not with a take-it-or-leave-it attitude."
Continental selected Swedish company Carmen Systems to provide its preferential bidding system to the airline to organize pilot scheduling. Continental said it has been interested in adopting PBS technology for some time, and the carrier believes it can improve its scheduling efficiency and save money. Carmen said it now provides PBS and crew management systems for three of the five largest U.S. carriers. The Continental contract is for five years. -AS
Alaska Airlines' ground services company Menzies Aviation yesterday launched 90-day review of its Seattle operation and unveiled a plan to improve the safety of its ramp services after several aircraft were damaged in recent weeks.
