The U.S. Transportation Dept. yesterday asked for industry comment on four alternatives for revising its airline ticket advertising rules, and two of the alternatives would grant airlines' wish to list a fuel surcharge as a separate fee.
Airlines are misguided in thinking they would benefit from the introduction of user fees to pay for the U.S. air traffic control system, a new study commissioned by the National Air Traffic Controllers union finds.
United can use 3.5 of the four available weekly U.S.-Ukraine frequencies for a third-country code share with Lufthansa until June 1, when Delta will take all of the frequencies for its nonstop New York Kennedy-Kiev flights, the U.S. Dept. of Transportation said. Delta will offer the service five times weekly by combining the four frequencies with one of 3.5 its uses for code sharing with Air France. The carrier will use Boeing 767s for the flight [OST-2005-22195, -22450]. -ARS
SAS's Spanish subsidiary Spanair has given up plans to launch services to Latin America, the airline's new CEO, Lars Nygaard, told Spanish business daily Gaceta de los Negocios. "After a one-and-one-half-year review, SAS has come to the clear conclusion that the plan is neither advisable nor profitable for Spanair," Nygaard said. Instead, Spanair will consider expanding into North African routes, which can be operated with the company's existing fleet, he added. -MT
IATA yesterday narrowed its estimate for this year's airline industry loss to $6 billion -- down from its September forecast of $7.4 billion -- and predicted the industry will return to the black in 2007. Next year's loss estimate is $4.3 billion, but IATA analysts note breakeven is possible if oil prices drop to $50 a barrel. Passenger traffic growth is expected to slow next year, mirroring the drop that has already hit cargo traffic.
FAA this week reinstated the 11 New York controllers it fired in August for failing to report medical conditions as required. Under an agreement reached with the aid of a federal arbitrator, the agency had to rehire 10 of the controllers, and the other will return to work after serving a 30-day suspension. The controllers will have a letter of reprimand put in their records for nine months and will receive back pay for the period they were fired, minus five days.
Brazil's Docas Investments is prepared to pay $100 million for a 25% stake in the non-profit Rubem Berta Foundation, the majority shareholder and controller of Varig. For an additional $12 million, Docas would "lease" 42% of FRB for 10 years to gain majority control of Varig. Docas, a conglomerate controlled by multimillionaire Nelson Tanure, also revealed a separate bid to acquire Varig's profitable cargo and maintenance subsidiaries VarigLog and VEM for $139 million.
Senate Commerce Chair Sen. Ted Stevens (R-Alaska), frustrated by what he perceived as a lack of logic on the part of the Transportation Security Administration's recent reversal on allowing some sharp objects on board aircraft, said he intends to hold a hearing in February on carry-on bags and may consider legislation limiting passengers to one carry-on bag; he also plans a Feb. 9 hearing on Registered Traveler, new screener technology and Secure Flight.
Independence Air is cutting its daily departures by 19% to 170, starting in January, and dropping four markets -- Chicago, Jacksonville, Manchester and Buffalo. The latest cuts follow a 35% reduction in the airline's December schedule (DAILY, Sept. 27). In addition, Independence is planning "selected day of week cuts," an Independence spokesman said, noting the carrier would do a "lot less" flying on Tuesday, Wednesday, Saturday nights and Sunday mornings.
Qatar Airways next year plans to boost its service to Manchester with the launch of daily flights. The airline currently operates four scheduled flights a week between Doha and Manchester. Capacity is being increased to a fifth weekly flight on Feb. 11, rising to daily service on March 26. The airline will continue operating an Airbus A330-200 on the route in a two-class configuration. The carrier also has two daily flights to London Heathrow and one to London Gatwick.
Rep. James Oberstar (D-Minn.) today plans to announce legislation aimed at slowing down the U.S. Transportation Dept.'s notice of proposed rulemaking that would change the way foreign entities can invest in U.S. domestic carriers.
The European Commission may scrap the code of conduct that governs the display of flights and fares on computer reservations systems in the European Union. The move is part of a greater plan to simplify, update or scrap some 1,400 European Union regulations in various fields. The repeal of the code could be formally proposed in the coming weeks, Brussels sources say. Travel industry representatives and competitors of Amadeus, the leading global travel distribution system in Europe, all vehemently oppose the plan.
Qantas yesterday opted for Boeing over Airbus to fulfill its fleet renewal program, announcing plans to buy up to 115 Boeing 787s for its mainline operations and low-fare subsidiary Jetstar.
By Steve Lott Eclat Analyst: Aaron Taylor It's no surprise that low-cost carriers of all sizes are eager to boost their respective networks, secure in the knowledge that consistent, aggressive network growth can widen their cost advantage over their legacy rivals.
Air Canada took delivery of its first Embraer 190 this week, becoming the first carrier to fly two models of Embraer's larger-jet family. It also has 13 175s. Air Canada plans to fly its 190s with nine seats in executive class and 84 in hospitality. Deliveries of 45 190s are scheduled through 2007.
Nigeria President Olusegun Obasanjo yesterday grounded two private Nigerian airlines after several accidents killed 224 people in seven weeks. He also announced that ICAO would help review all aircraft flying in Nigeria, according to the Associated Press. One of the grounded carriers, Sosoliso Airlines, operated the DC-9 that crashed Saturday in the southern city of Port Harcourt, killing 107 people. The second grounded airline, Chanchangi Airlines, operated a plane that skidded off the runway in Lagos earlier this year. Both airlines operated only within Nigeria.
Northwest is seeking bids from regional carriers to fly planes with up to 76 seats, but JP Morgan reasons few carriers outside of Northwest's current partners will likely emerge as competitors for the major airline's business. Regional carriers received Northwest's request for proposal late last week, Northwest partner Pinnacle said, adding that it is not clear what Northwest's intentions are for its Airlink network and for "Pinnacle in particular."
Air Canada decided to cut more than 40% of its interline partnerships with other carriers, as the revenue to keep the links active does not offset the related interlining costs.
Air Canada is planning an aggressive expansion of its new pass products in 2006, which CEO Montie Brewer calls a "new frontier in pricing." The carrier has flexible passes for travel within Canada as well as transborder to Florida and throughout North America. Brewer recently told reporters in Montreal that the carrier will soon launch a pass for business travelers and a pass for international travel.
Goodrich expects its 2006 sales figures to reach $5.6 billion-$5.7 billion, while it continues to find ways to shield its profits from pension and exchange rate expenses.
