With Air Midwest's subsidized flights to Charlotte slated to end May 30, the U.S. Dept. of Transportation is seeking proposals for carriers interested in providing ssential air service to Athens, Ga. The Mesa subsidiary received $392,108 annually to provide 12 weekly nonstop flights to Charlotte with Beech 1900D aircraft. Interested carriers would be expected to launch the service on June 1, offering 12 to 14 roundtrips a week from Athens to Charlotte on aircraft with at least 12 seats [OST-2002-11348].
Delta will be "the world's largest airline across the Atlantic" topping British Airways with the most seats, flights and destinations in 2006, claims Chief Operating Officer Jim Whitehurst. The airline plans to boost international capacity by 25% by summer. Some of that growth will be in New York, where Delta will soon launch new billboard advertising to promote several new destinations. "Make no mistake, Delta is a big New York airline," he told the Wings Club.
U.S. leisure fares fell 1% to $103 for the week of Dec. 12, compared with the week before, and business fares were flat at $443. Northwest's leisure fares from Chicago to Minneapolis rose 20% to $59 each way, but American's fare from Los Angeles to New York sank 29% to $99 each way.
Colombian regional carrier Aerolineas de Antioquia (ADA) plans to launch international service from Apartado to Panama City or Colon, both in Panama, pending government approval. ADA's regional network in Colombia now includes 25 destinations, mostly small cities. The carrier expects to fly 150,000 passengers in 2005, while net profits for this year are estimated at $400,000.
Florida West, Capital Cargo, Centurion Air Cargo and Kitty Hawk will see increased action in their all-cargo U.S-Mexico operations, thanks new exemptions made possible through amendments to the existing bilateral between the countries (DAILY, Sept. 22). The carriers were each seeking the designation that became available after Atlas Air gave up its U.S.-Mexico authority in June (DAILY, June 10). But the formal signing of the amended bilateral earlier this week gave the U.S. Dept. of Transportation more flexibility to award routes to all the carriers.
China and Singapore signed a new air services agreement that paves the way for the two countries' airlines to operate unlimited passenger and cargo flights with no restriction on capacity or aircraft type. Singapore Airlines, SilkAir, China Eastern Airlines, Air China and China Southern Airlines last year carried 1.87 million passengers on several routes between Singapore and China. A total of 170 weekly passenger and 17 cargo flights are currently operated between Singapore and China by seven Chinese airlines, SIA and SilkAir. -WD
Alaska Airlines yesterday resumed regularly scheduled service from Los Angeles to Cancun after it suspended the flights following Hurricane Wilma. The carrier on Oct. 19 temporarily ceased its one daily flight and said it would restart the flight mid-December. "Tourism in this region is rebounding," said Gregg Saretsky, executive VP of marketing and planning. The flights are operated with Boeing 737-700s.
Aerolineas Argentinas (AR) officially asked the Argentine government to approve its plan to increase airfares. Arguing that fares have remained frozen for the past four years while the airline's costs increased significantly, AR considers that such an adjustment is the only way to boost revenues. Sources in Buenos Aires, however, report that the government, while considering the industry's long-range picture, has no intention of approving fare increases in the immediate future.
UPS this week confirmed an earlier tentative order for 10 Airbus A380s, although the carrier has yet to name an engine supplier. The A380s are scheduled for delivery between 2009 and 2012.
Southwest continues to use its ATA code share strategically, tapping the relationship to offer its passengers flights from Dallas/Fort Worth to Chicago Midway. The DFW code-share news comes a day after a bankruptcy court gave its nod, subject to creditor approval, to ATA's reorganization plan. An expanded, seven-year agreement with Southwest is a pillar of ATA's plan to emerge from Chapter 11 by the end of February.
House lawmakers yesterday introduced legislation that would give Congress oversight of DOT's Notice of Proposed Rulemaking on foreign investments in domestic airlines, with sponsors saying changes in the investment formula would affect aircraft purchases, maintenance, labor, route choices and the industry's economics (DAILY, Dec. 15).
The rapid increase in air travel demand appears to have passed its peak, and the airline industry must prepare for a deterioration of revenue growth, IATA Chief Economist Brian Pearce said this week. Yields are up industry-wide, but in Pearce's view the increases "are relatively small in comparison to what we have seen in the past." IATA expects international passenger traffic will increase 7.1% this year, but only 4.5% in 2006.
Delta's Song unit posted weak revenues partly because it does not have a first-class cabin, says Chief Operating Officer Jim Whitehurst. Song was successful in keeping costs low, but he also told the Wings Club in New York that it did not have strong loads and that running two separate brands was a bit of challenge.
Airlines using London Heathrow are facing fuel rationing and are having to tanker in extra fuel because of supply disruptions after the huge oil depot fire north of London this week. About one-third of the Heathrow fuel supplies are drawn from the Buncefield depot, which was destroyed by explosions early Sunday and fires that raged until Wednesday. No other London airports were affected by the supply disruption. There have been no flight cancellations or "significant delays" caused by the fuel problems, a spokesman for airport operator BAA told The DAILY.
A proposal to limit the number of bags passengers can carry on airlines isn't getting a warm across-the-board reception despite support from Senate Commerce leadership.
TAG UK won approval from the U.S. Dept. of Transportation for charter flights between points in the U.S. and points in the U.K, except London Heathrow Airport.
Two business court judges in Rio, acting on the motion of state prosecutors, handed down an injunction to stop the sale of a controlling stake in Varig through its parent comptroller, the Rubem Berta Foundation, to Nelson Tanure's Docas Investimentos S.A. (DAILY, Dec. 15). Prosecutors alleged procedural faults in the way the sale was being conducted because Varig's creditors must first approve the deal at their meeting on Dec. 19. If they approve it, the injunction could be reversed on appeal.
