Frontier, impatient to start U.S.-Mexico service next year, pushed the U.S. Dept. of Transportation to make final its tentative decision earlier this month to award primary authority to serve the St. Louis-Cancun market. "Frontier is anxious to begin service as soon as possible in the STL-CUN market," the airline said, adding it needs DOT approval "in the next few days" in order to prepare to launch service by the end of February (OST-2004-18692). -AK
United parent UAL Corp. posted deep $188 million loss in November, but the airline still managed to meet its debtor-in-possession loan covenants for the month because of the money it made from the sale of its Orbitz shares.
GE Transportation subsidiary Unison Industries signed a deal to buy privately owned Aircraft Parts Corp. (APC). The new York based company builds and repairs aircraft electrical systems, including starter-generators and generator control units for helicopters and business, commuter and military jets. APC also has a service center in Wichita, Kan. The companies expect to complete the sale in the first quarter of 2005. -LR
The U.S. Dept. of Homeland Security (DHS) is warning travelers and airlines that Port-au-Prince airport in Haiti does not meet minimum security standards set by ICAO. DHS said yesterday it sent a team of security experts from the Transportation Security Administration (TSA) that assessed the airport and found a variety of "security deficiencies."
Continental will likely steer clear of bankruptcy and complete labor cost cuts next year, but it will still face some headaches from low cash flow and weak yields, a leading airline analyst says. Calyon Securities analyst Ray Neidl raised his earnings estimates slightly to reflect Continental's plan to cut $500 million in annual labor costs. Neidl said he is still cautious on Continental, however, "because of the company's low cash levels going into the winter months."
Airbus yesterday announced its third A320 order this week as Kuwait's Jazeera Airways said it ordered four planes and took options for four additional aircraft; deliveries start in October 2005. Jazeera's order follows announcements by two Indian carriers -- Kingfisher and Air Deccan -- to order a total of 20 A320s. Jazeera plans to start flights in February with two leased A320s to Dubai, Bahrain, Amman, Damascus, Beirut and Egypt, and plans further expansion into the Indian subcontinent. -LR
U.S. airlines' passenger unit revenue in November sank 1.2%, according to the latest data from the Air Transport Association; the drop I smaller than the one reported in October, but yields were still weak.
Atlanta Hartsfield Airport executives predict that more than 1.9 million travelers will pass through the airport during the eight-day holiday travel season, which starts Dec. 19 and ends Dec. 26.
Air Berlin and Niki Luftfahrt picked CFM International CFM56-Bs to power 70 Airbus A320 the partners ordered last month. The carriers also plan to use CFM engines if they choose to exercise options for 40 additional planes. CFM said the deal was worth about $1.5 billion at list price. Deliveries of the planes start in September 2005. -LR
German low-fare airline DBA plans to order 24 aircraft in January to replace its existing fleet of Boeing 737-300s, The DAILY has learned. Airbus and Boeing negotiators yesterday visited DBA's Munich headquarters to submit their second proposals. The airline plans to decide between the Airbus A319 and the Boeing 737-700. The first of the new aircraft is expected to be delivered in January of 2006 and further deliveries will follow at a rate of one per month.
The U.S. Department of Commerce recently unveiled a new advertising campaign that aims to promote the U.S. as a travel destination from the U.K. The campaign, which focuses on the U.S. through American film and television, will launch in national television advertising and London area posters as part of a $4 million media buy in the U.K. market. The "integrated campaign" includes public relations and advertising inviting British travelers "to see and experience the real America they know and love from some of their favorite films."-SL
FAA has commissioned a new instrument landing system (ILS) at Salina Airport, Kan., a popular cross-country refueling location known as "America's Fuel Stop." The $550,000 dual-transmitter ILS was installed for the 12,300-foot Runway 35 as part of FAA's national ILS sustainment program. It was funded through the agency's Airways Facilities Division. -LR
A plan to sell the assets of Mexico's public sector holding company Cintra is in doubt (DAILY, Oct. 29), and many see the demotion of the plan's sponsor as a sign that the scheme might not continue. Cintra shareholders last week confirmed Andres Conesa as board chairman while retaining former chairman Rogelio Gasca Neri as a consultant. Gilberto Perez Alonso was also appointed CEO at AeroMexico.
Northwest this week unveiled plans to start nonstop service between Minneapolis/St. Paul and El Paso, Texas, on April 4. The airline will offer two daily flights that will be operated with 50-seat CRJs flown by Pinnacle Airlines. Including El Paso, Northwest has announced or started service to 13 new destinations from Minneapolis this year, growing its nonstop service to a total of 168 destinations.
The world's passenger traffic jumped 14% in 2004, compared with last year, based on preliminary data released yesterday by ICAO. The increase is based on statistics submitted by ICAO's 188 "contracting states." The 14% increase represents the combined jump for domestic and international traffic, and ICAO also estimates that traffic rose 15% just for international flights compared to 2003. During 2004, capacity also increased but at a somewhat slower pace, resulting in an average passenger load factor of 73%, up about two points from 2003.
Canadian air traffic increased more than 5% from last year's levels, but Nav Canada says traffic is still running slightly below pre-Sept. 11, 2001, levels. Nav Canada said its en route, oceanic and terminal traffic grew 5.2% in September and 5.1% in October, compared with 2003. Traffic was 1.9% below 2000 levels in September and 2.9% lower in October. Nav Canada's fiscal year began in September.
KLM on April 1 plans to start new daily service between Rotterdam and London City Airport. Flights will operate Monday to Friday on a "day-return" basis, letting business travelers leave Rotterdam in the morning and return the same evening. The service will be flown with a Fokker 50. "As a result of growing interest in the business market," KLM will also boost the frequency of its Amsterdam-London City flights, starting April 1.
Boeing strengthened its already deep ties in Japan yesterday with Japan Airlines (JAL) declaring plans to order 30 Boeing 7E7s, giving the airframer a boost as the industry waits to see if additional orders surface before the yearend. The airframer said it has proposals for 200 aircraft with "money down," a Boeing spokeswoman said. Of those, 56 have transitioned into firm orders. Primaris, Blue Panorama, First Choice and now JAL have committed to firming up orders for 112 planes.
Hawaiian Airlines posted a $2.9 million net loss in November, the third straight month of negative results, because of high fuel prices and labor costs. The airline also reported a $3 million operating loss on $58.6 million in revenue. "The fact that Hawaiian has now had three consecutive months of operating losses after recording 17 straight months of operating profits shows just how much the industry is changing and how we need to adjust accordingly," said Trustee Joshua Gotbaum.
The online travel market took another twist yesterday when Expedia and Hotwire parent IAC/InterActiveCorp decided to spin off its travel-related subsidiaries in an attempt to change the perception among investors and Wall Street that IAC is mainly a travel company.
Bogota Eldorado Airport last week opened its state-of-the-art "VIP Colombia" lounge, which will cater to passengers qualified for access by their respective carriers. Among unique facilities, the lounge provides a business center with wireless Internet links, so that passengers may use a Wi-Fi card to access the Web via their own laptops or PDAs. The lounge also offers fax, cable TV, an updated library of business publications and local phone calls. -LZ
