Lima Airport Partners (LAP), a consortium that holds a 30-year government concession for the development and management of Lima Jorge Chavez Airport, plans to issue $110 million in long-term bonds to finance expansion facilities. The sum would complete the $180 million in investments required by 2004 under the concession agreement. The remaining $70 million would come from the group's own resources.
Continental Express plans to offer daily nonstop service this summer between Houston and two destinations in Colorado, using Embraer ERJ-145s. Service to Montrose, Colo., starts May 22 and ends Oct. 5. Flights from Houston to Gunnison, Colo., run from June 12 through Sept. 10. Continental said it would start mainline Boeing 737-700 service from Houston to Jackson Hole, Wyo., June 12 through Sept. 3. -LR
AeroMexico and Mexicana's unilateral decision to cut travel agency commissions from 5% to 1% is now on the agenda of the committee of the national chamber of representatives in charge of tourism. The heads of holding company Cintra, which controls both carriers, and Ipab, Mexico's antitrust regulator, have been summoned to public hearings next week to explain this step. Travel agents say the move "jeopardizes the income of some 30,000 families" and also violates contractual commitments with relevant operators, thus threatening the welfare of the sector.
BWIA West Indies laid off 617 employees shortly after taking delivery of its seventh Boeing 737-700 (DAILY, Jan. 27). The carrier said the cuts were part of its restructuring as a low-fare airline. BWIA plans to outsource all of its ramp and duty-free operations and part of is maintenance department. Routine checks will continue at the airline's maintenance facility in Piarco, Trinidad. Annual heavy checks will be outsourced. -LR
Swiss will be able to fly to Tokyo daily and Japanese carriers will obtain increased landing rights in Switzerland, in a deal complementing the existing air transport agreement between the two countries. So far, Swiss was allowed to serve Tokyo five times daily in the summer and six times daily in the winter.
Qantas plans to launch its Cityflyer service from Sydney to Canberra with 24 flights per week. The service will start Feb. 3 and will be in addition to Cityflyer routes to Sydney, Melbourne, Brisbane, Adelaide and Perth. The Canberra service will operate at least every half-hour in peak business travel periods. The airline is working with the airport to "significantly upgrade" its existing facilities, including the Qantas Club and check-in area, improve baggage reclaim facilities and provide new carpet and refurbished seating. -SL
For executives and high-end leisure travelers looking for an alternative to traditional charter flights or fractional aircraft ownership, a new business model is emerging that could create new opportunity for entrepreneurs who want to tap into the idea of selling specific routes instead of hours on business jets.
US Airways Express Carrier Piedmont Airlines plans to start daily service from Newport News, Va., and New York LaGuardia Airport on April 6, using 37-seat Dash 8 turboprops. The carrier also offers daily service from Newport News to Charlotte, N.C., and Philadelphia. -LR
Argentina's LAPA and Bolivia's AeroSur will join together to operate regional routes in South America under the name Alianza del Sur (Southern Alliance), the carriers announced last week. The new alliance's immediate goal is to increase current flights by 50%, but later plans will expand operations to Miami and Madrid. The fleet will be expanded to 17 aircraft over the next few months, with 15 of them assigned to regional markets. Long-haul equipment will be leased for services to Miami and Madrid.
Alitalia acquired 2% of Air France's capital for EUR 53.9 million (US$58.2 million), the Italian company's board of directors confirmed this week. The acquisition stems from the alliance between both carriers announced in November last year.
Highway access to Boston Logan Airport improved last weekend with the opening of a new I-90 access ramp. Motorists driving from the south of Boston can now use the new Ted Williams Tunnel -- part of the city's "Big Dig" project -- to reach the airport. With the new access, the previous 45-minute drive time from downtown has been cut in half. Motorists driving south from the airport can still use the Sumner Tunnel to I-93S. -SL
With the major airlines spending close to $250 million since the Sept. 11 terror attacks to reinforce cockpit doors, Capitol Hill lawmakers worry that progress has been slow and the money promised to reimburse airlines is only trickling in. The deadline for reinforcing all cockpit doors on commercial aircraft is April 9.
Air Lib's air operating certificate (AOC), due to expire today, received an indefinite extension yesterday, when a French government source said the date was no longer "decisive."
Boeing yesterday lowered its aircraft delivery and revenue forecasts for this year but predicted the overall picture for its commercial aircraft division will begin brightening in 2004. The commercial aircraft delivery forecast for 2003 was reduced from 275-285 aircraft to about 280. Deliveries will remain flat in 2004, at about 275-300, but orders will go up for a corresponding rise in deliveries in 2005. Revenue guidance for 2003 was cut from about $50 billion to about $49 billion, and for 2004 is $52 billion-54 billion.
BMI British Midland will introduce two new routes from London Heathrow Airport in April. The airline will start daily services to Alicante/Spain and Venice, using Airbus A320s. -JF
Delta last year sold 26% of its total tickets through all online travel agencies, including its own site, a significant jump from the 20% sold online through 2001.The airline reported 13%, or about 5.3 million tickets, of sales were through delta.com in 2002, totaling $1.3 billion.
Goodrich Corp. plans to sell its Avionics Systems business to L-3 Communications for $188 million, the company reported yesterday. Both companies' boards approved the sale, scheduled to close late in the first quarter. Goodrich expects to get $134 million for the unit after taxes. Proceeds will be used to pay off the balance of a $1.5 billion bridge loan Goodrich used to buy TRW Aeronautical Systems in October. -LR
GE Engine Services (GEES) signed a 12-year maintenance cost-per-hour support contract with Frontier Airlines worth $230 million. GEES will maintain Frontier's CFM International CFM56-5B engines powering Airbus A318s and A319s. GEES will perform the work at the GE Strother Field facility near Arkansas City, Kan.
Britain's no-frills carrier easyJet will submit a tentative agreement on working conditions to pilots by the end of this week, a company spokesman said. The carrier just reached the deal with pilot union representatives, though the package does not address pay issues. -MT
China Southern Airlines took delivery of its sixth Next-Generation Boeing 737-800. The aircraft is part of an order for 20 planes China Southern placed in October 2001, replacing current 737 series aircraft.
Wayne, Pa.-based Triumph Group Inc., which recently bought Boeing's Spokane spare parts plant, warned profits for its third quarter ending Dec. 31, 2002, would miss Wall Street estimates. CEO Richard Ill said reduced shipments to original equipment manufacturers during the quarter's last month and weak airline demand contributed to the slide. Ill added a strong military market couldn't offset soft commercial results. -LR
America West this week launched a new airport "Hub Club" membership product for its passengers. Hub Club members have access to all five club locations -- three in Phoenix, one in Las Vegas and one in Columbus, Ohio. A one-year membership costs $300, compared with $400 for a Standard Club membership. Either club product can be purchased for one-year or three-year terms. FlightFund Elite members can save $75 on the one-year individual rates.
Lufthansa has made a new pay offer to ver.di, the transport and service union representing ground and cabin staff, the airline reported. Talks resumed following a warning strike on Jan. 16, which grounded about 40 flights. -MT
United's pilots hinted they will fight any attempt by the airline to create a low-cost subsidiary. "We will oppose management's break-up plans by every lawful means available to us," Paul Whiteford, chairman of the Air Line Pilots Association's United unit, pledged yesterday. The airline is scheduled to unveil a detailed business plan today.
