Canadian low-fare carrier Jetsgo unveiled plans to start service this spring to Calgary and Edmonton, plus weekly nonstop service from Montreal to Vancouver and Calgary. The expansion of Jetsgo's network will be made possible with the addition of its eighth Boeing MD-80. "Jetsgo's core national network is now complete with the addition of Calgary and Edmonton as destinations," said President Michel Leblanc. Daily service between Calgary and Toronto begins weekdays on April 16, with Sunday and Saturday flights beginning May 4 and 24, respectively.
United yesterday reported that its recent business fare cuts have boosted revenues of $20-$25 million per month, after a chorus of competitors and analysts said the move would hurt industry revenues. "Contrary to some reports in the media, the increase in passenger volume has more than offset the lower fares," said Doug Hacker, executive VP-strategy. The new fares were unveiled Jan. 6 and apply to travel in markets to and from Chicago and Denver and beyond to more than 11,500 connecting markets.
America West plans to start daily, nonstop service between Phoenix and Cancun, Mexico, on June 1. The airline will operate the flight with an Airbus A319 in a two-class configuration. The airline operates flights to several cities on Mexico's Pacific Coast including Guaymas, Mazatlan, Los Cabos, Puerto Vallarta, Manzanillo, Ixtapa/Zihuatanejo and Acapulco, as well as Hermosillo, Guadalajara and Mexico City.
Delta, Northwest and Continental, who threatened weeks ago to go ahead with their planned alliance despite DOT objections, yesterday backed from their tough talk and submitted new language for their alliance deal that regulators plan to review within the next 30 days.
Most U.S. carriers say they'll meet the April 9 deadline to install reinforced cockpit doors in their fleets, even though design certifications for some aircraft haven't won FAA approval.
Lufthansa Technik has become the 150th customer of aeromanager.com, an e-business portal run by Rolls-Royce specializing in engine aftermarket services. The portal was launched in 2001, and Rolls E-Business Manager Paul Leedham said the company is working with another 50 potential customers. Rolls and Lufthansa Technik recently announced a joint venture, N3, to provide overhaul of three types of Rolls engines (DAILY, Feb.21). -LR
Delta Connection Carrier Atlantic Southeast Airlines is replacing Embraer Brasilia turboprops with regional jets on service from Atlanta to Louisiana. ASA plans to start two daily nonstop RJ flights from Atlanta to the Louisiana cities of Alexandria and Lafayette May 4. Those flights are replacing a one-stop Embraer Brasilia turboprop trip.
TSA last week awarded a $12.8 million contract to Lockheed Martin to develop the Computer Assisted Passenger Pre-Screening System, known as CAPPS II. The automated passenger screening system is activated by reservations information. Under the terms of the competitively awarded contract, Lockheed will help TSA develop the CAPPS II technology infrastructure and administer it for TSA for five years. The passenger risk assessment will be conducted by TSA. -AS
US Airways has a better chance of meeting its goal of emerging from Chapter 11 bankruptcy protection by the end of March after it won a judge's approval on Saturday to terminate the existing pension plan for its pilots. After a four-day hearing, Judge Stephen Mitchell ruled the airline met the "financial standards for a distress termination" of the plan. The ruling set in motion an approval process for the Pension Benefit Guaranty Corp. to terminate the plan formally by March 31, the same day US Airways hopes to emerge from bankruptcy protection.
U.S. major airlines could boost deployment of regional jets by 59% from the end of 2002 to yearend 2005, projects investment bank Raymond James & Associates Inc.
Carlos Bonilla, special assistant to the President for economic policy, last week left the administration to become a senior VP at The Washington Group, a government affairs and lobbying group.
US Airways will completely eliminate bonuses and other payments through at least 2004, according to new management compensation exhibit filed last week with the bankruptcy court. Separately, in an SEC filing the airline reported a $101 million January operating loss, which translated into a negative 21% operating margin and a net loss of $98.7 million. At the end of the month, US Airways had $513 million of unrestricted cash and roughly another $500 million in restricted cash. At yearend 2002, the airline's unrestricted cash was $633 million.
House Transportation aviation subcommittee chair Rep. John Mica (R-Fla.) hopes to focus on streamlining efforts to get airport projects underway during a hearing Thursday on FAA reauthorization of airport programs. In the last Congress the House passed a streamlining bill, but it died in the Senate. The Senate Commerce aviation panel held a similar hearing last week at which the General Accounting Office, FAA and airport lobbyists testified that airport redevelopment faces a $3 billion annual shortfall over the next several years (DAILY, Feb. 26). -DM
Airbus expects to sign at least one more A380 deal this year and is in talks with three airlines in Korea and Japan, believed to be Japan Airlines, All Nippon Airlines and Korean Air. CEO Noel Forgeard told reporters in Toulouse he was confident the A380 would fly for a Chinese airline in time for the Beijing Olympic Games in 2008. Emirates also suggested it might add to its existing A380 order in the coming months.
Qatar Airways starting this spring plans to start flying to Rome, Manchester, Kochi and Islamabad, extending its route network to 42 global destinations. The airline on April 2 will start service to Manchester with Airbus A300s, bringing its total U.K. schedule to 15 flights per week. It already serves London Heathrow, and will operate flights to Manchester four days per week.
Lan-Chile starts service in March between its base in Santiago and Rosario, the third largest city in Argentina, an important agricultural and business center in the northeast part of the country. The route will be operated via Cordoba.
Standard & Poor's on Friday lowered its ratings for American and its parent AMR Corp. due to its deep losses and shrinking liquidity and suggested there is the "potential" for a bankruptcy filing by midyear if it can't gain labor concessions.
The Mesa-United code share deal should produce $35 million to $40 million in annual revenue when fully operational, says analyst Jim Parker of Raymond James. Operated on a capacity buy/fixed fee contract, the deal should generate 7%-8% margins. Mesa will likely sign short-term leases to let it return the aircraft if United liquidates, Parker said.
