American Eagle plans to start daily service from Dallas to San Luis Potosi, Mexico, on Jan. 5, using 44-seat Embraer ERJ-140s. The single daily flight expands Eagle's Mexican flights to six destinations. The carrier already flies to Aguascalientes, Leon, Guadalajara, Monterrey and Torreon.
The U.S. Transportation Dept. (DOT) fined Alaska and its sister carrier Horizon $30,000 for an each-way fare advertisement that did not adequately display a restriction that the fares are valid only for roundtrip purchases. In Alaska and Horizon ads that ran April 15-21 in The Tri-City Herald in Eastern Washington and other newspapers, the airlines failed to disclose "prominently and proximately to the fare," the roundtrip condition of the "Daylight Savings" promotion, DOT's Enforcement Office said.
Lockheed Martin said the Transportation Security Administration (TSA) chose the Bethesda, Md.-based company to lead a $5.3 million research project to improve the technology of explosives detection systems (EDS). Funded by a cooperative agreement grant from TSA under its Phoenix Project, Lockheed Martin will focus on designing and developing technology "to increase machine throughput, improving efficiency and enhancing current EDS threat detection capabilities," the company said.
High jet fuel prices blamed for ransacking airline profits may soon begin chipping away at airport revenues, Fitch Ratings said yesterday. Since October 2003, oil prices have increased from $30 a barrel to the current $50 per barrel. Jet fuel prices, however, have surged about 90% in the same period, Fitch said.
Tuesday's elections will usher in a change in aviation leadership across the board in both the House and Senate, throwing the future of pending legislation into uncertainty.
Indonesian private carrier PT Star Air on Nov. 8 will introduce daily flights between Jakarta and Kuala Lumpur, using MD-83 aircraft. The carrier hopes to tap the growing Indonesian labor traffic on the route.
The U.S. ratified the Cape Town Convention last week, becoming the fifth country to approve the international legal framework to facilitate financing and leasing of large commercial aircraft and engines.
Orbitz, which will be acquired by Cendant Corp. in the coming weeks, reported a 30% jump in third-quarter profits to $5.1 million thanks to strong growth in hotel bookings. Revenue in the quarter grew 20% to $77.5 million. The profit includes $1.4 million of non-cash compensation charges relating to an April 2002 restructuring of outstanding stock options and $4.2 million in expenses related to the Cendant acquisition. Excluding these items, adjusted pre-tax net profit would have been $9.7 million, up from $3.9 million last year.
Delta reported that its proposed public debt exchange had been oversubscribed for one class of short-term bonds but that the response has so far has been much lower for the other two classes of bonds. Delta said the value of bonds in the two other closes "is substantially below" the minimum tender conditions. If the short-term bonds are the only ones exchanged, the airline may be able to defer the $235 million in debt due next year by issuing the same amount of new notes due in 2008. The exchange offer will end on Nov. 18, unless it is extended. -SL
Several major U.S. airlines are participating in a simulated slot lottery this week to see if this could be an effective way to allocate valuable landing times at congested airports. The simulation is being organized by FAA and a research coalition led by George Mason University. Another test of demand management procedures will be held in February.
Independence Air expects to resume proving runs soon for its Airbus A319, originally scheduled to debut on Florida routes yesterday, and disputes any claims that it has failed those runs.
Hoping to quell the fears of industry and tourism leaders, the CEO of DGAC, Peru's civil aviation department, said domestic traffic carried by the now-grounded Nuevo Continente (DAILY, Nov. 1) could be comfortably handled by other airlines, currently operating at an average 65% load factor. To bolster his argument, DGAC CEO Roberto Rodriguez-Galloso added that Magenta Air, Tans, Aerocondor and Star Up are acquiring new aircraft to meet expected traffic. So far, the new lineup has increased airfares only nominally.
Atlantic Coast Airlines moved to persuade the U.S. Transportation Dept. to reissue its certificate in the name of Independence Air, effective Nov. 5, as the carrier concludes this week the last of its regional flights for Delta.
Brazil pledged to renegotiate Varig's debts, and the Rubem Berta Foundation (FRB) agreed to give up part of its equity and exercise less shareholder control as part of the carrier's rescue. The concessions go toward fulfilling a new set of guidelines drawn up by the parties involved and aimed at reinvigorating the struggling carrier. Minister of Defense Jose Viegas, who has been coordinating the joint industry-government effort, has submitted the plan to the executive branch.
French railway company, Societe Nationale des Chemins de Fer, "does not receive any subsidy for the TGV" high-speed trains, Louis Gallois, chairman of SNCF, told Agence France Presse.
News that Mexico's Cintra intends to restructure its airline assets into two groups for a 2005 sale (DAILY, Oct. 29) raised such an expectation in the sector that Mexican antitrust regulator, the federal commission on competition (CFC), clarified that it had only approved, but not authorized, Cintra's plan.
America West plans to offer new mainline jet service between Las Vegas and Albuquerque, N.M., starting March 1, 2005. The airline also said it would add new frequencies in Burbank, Oakland and Ontario, Calif., in December and February. America West Express, operated by Mesa Airlines, will operate the new flights with 86-seat Canadair Regional Jets. Also this week, America West started nonstop service between Las Vegas and Puerto Vallarta, Mexico, one day after beginning service between Las Vegas and Los Cabos, Mexico.
Emirates yesterday unveiled plans to start passenger service to three new cities next year, expanding its network in Europe and Asia. Starting May 1, the airline will offer daily flights from Dubai to Seoul Incheon with an Airbus A340-300 in a three-class configuration. Flight duration will be eight and one-half hours from Dubai to Seoul and nine hours 55 minutes from Seoul to Dubai. Emirates currently has about 200 Korean cabin crewmembers and plans to hire about 20 new staff members for its town and airport offices in Korea.
Milwaukee General Mitchell Airport posted record passenger numbers in September, the eighth consecutive month when more than 500,000 passengers passed through the facility. For the year-to-date, the airport tallied more than 5 million passengers, a more than 12% increase from 2003 figures.
Ryanair yesterday surprised financial markets with better-than- expected profits for the first half of its fiscal year as it kept a tight lid on costs. The airline's shares surged by as much as 11% in midday trading, reflecting the reaction on what has become a rare occurrence in the European airline sector: good news. Ryanair revenues were up 21% to EUR721 million (US$916 million), and the profit improved 15% to EUR201 million (US$255 million). The number of passengers flown rose 24% to 14 million.
