Continental and American yesterday asked the U.S. Transportation Dept. to suspend its evaluation of Virgin America until the carrier provides more details about its ownership structure and the amount of foreign control.
American is axing plans to introduce flights from New York Kennedy Airport to Newcastle, U.K., because higher fuel prices, in particular, made the new route less attractive. American announced the route in June and was scheduled to begin flying it with Boeing 757s in May 2006. It would have been the first nonstop from New York to Newcastle, which is a major center for the U.K.'s Northeast region. Passengers that have already booked this flight will be refunded.
The U.S. Dept. of Transportation awarded 25 U.S. carriers blanket route authority covering all of each carrier's current and prospective international route authorities, as part of moves to make regulatory procedures more efficient. Previously, carriers had to file for route integration authority each time they applied for new exemptions. The certificates will be effective for five years and are open to renewal [OST-2005-22228]. -ARS
Baltimore-Washington International is installing a $7 million wireless communication system linking the airport to area first responders. BWI will install the Motorola trunked radio system in early 2006, connecting state transportation, airport police and fire and rescue teams, according to the company. The three-year contract will provide radios and maintenance for Motorola's Astro 25 simulcast system for more than 700 users. -KJ
Worldwide passenger traffic jumped 7.5% in 2005, compared with last year, according to the latest ICAO estimates, which is ahead of the capacity increase for the year.
BAA has signed a definitive agreement to acquire Budapest Airport (DAILY, Dec. 9) "for a total cash consideration of GBP1.255 billion" (US$2.2 billion), the Britsh airport operator confirmed. The deal will grant BAA a stake of 75%, minus 1 share of Budapest Airport Rt, as well as a 75-year asset management contract for the airport. BAA expects the transaction to be completed by Dec. 23.
FAA must decide whether to limit the type of maintenance performed at non-certificated airline maintenance facilities that operate without the same regulatory requirements as certificated repair stations and at the very least perform stricter oversight and control, according to a recent report by the DOT Inspector General.
The SAS Group last week signed a deal to sell a 67% stake in SAS Component Group (SASC) to ST Aerospace parent Singapore Technologies Engineering for about EUR80 million (US$95.7 million) as part of a plan to grow the company's European presence.
The Air Transport Association predicts that 35 million passengers will travel on U.S. airlines during the 16-day winter holiday period from Dec. 18-Jan. 2, about the same number as last year. ATA expects growth in international air travel, offsetting a modest decline in domestic passengers during this period.
Named Olof Persson, currently president of Bombardier's Mainline and Metro division for trains and subways, to replace Fred Bolin as president upon Bolin's retirement at the end of 2006.
With best wishes and good cheer, we present this year's Aviation Dilly, a satirical holiday tradition with the staff of Aviation Daily dating back to the 1950s. We sincerely hope you enjoy our goodnatured poke at the happenings and institutions, large and small, that make up this besieged business we all love. It's been a tough year, and times promise to stay tough for a little while longer, but we
Etihad plans to launch its first U.S.-bound service next June, using Airbus A340-500s seating 240 for nonstop flights to Newark from Abu Dhabi. The airline applied to the U.S. Transportation Dept. for exemptions to operate scheduled and charter flights from points behind its base in the United Arab Emirates, via its home country and other intermediate points, to a point or points in the U.S. and beyond.
ACE Holdings is not planning to launch an initial public offering for Air Canada Technical Services until the end of 2006, says CEO Robert Milton. "The market is there," he says, but the division needs about a year to collect and release independent financial statements. Aeroplan has already gone public and Jazz is ready to hold an offering early next year.
The Senate is taking up the fight to keep the U.S. Transporation Dept. from making a final decision on how foreign interests can invest in U.S. airlines. Sen. Daniel Inouye (D-Hawaii), was expected to introduce legislation Friday or Saturday that addresses issues raised in a bill introduced in the House on Thursday by House Transportation ranking democrat Rep. James Oberstar of Minnesota and Rep. Frank LoBiondo, a Republican from New Jersey (DAILY, Dec. 16).
Aloha Airlines did not exit Chapter 11 bankruptcy protection as planned last week, but the carrier averted disaster when a U.S. District Court judge rejected a last-minute objection by the Pension Benefit Guaranty Corp.
The European Commission sent a "reasoned opinion" -- the last step before a formal complaint to the European Union Court of Justice -- to Greece for failing to create a supervisory authority for air navigation services as directed under the EU's "Single European Sky" initiative. The agency would be tasked with the certification of navigation service providers and on-going compliance oversight.
Pinnacle's cost per available seat mile through September has fallen 21% since 2002 from 16.5 cents to 13 cents, executives report. The airline is responding to a request for proposal from Northwest for planes with no more than 76 seats.
United's 10.3-cent yields on flights from Washington Dulles to San Francisco during the second quarter were more than double Independence Air's 4.6-cent yield, data from the US Transportation Dept. show. Independence started two daily flights between Dulles and San Francisco May 1 and ended the service Dec. 1. United has several daily flights between the two destinations.
United parent UAL last week received about 55 objections to its reorganization plan, including one that questions an incentive plan that would give a 15% stake in the company to top management, but executives don't believe the objections will delay its bankruptcy exit past February.
