JetBlue may be riding high after its IPO, but UBS Warburg analyst Sam Buttrick notes that not many carriers have translated that into long-term success. In the last 20 years, "27 jet carriers made it to the IPO stage, but only eight are still alive today." More than half went bankrupt. "We believe that JetBlue is the exception -- we also know that it's an airline," he said.
A proposal by House lawmakers to give airports additional money for security modifications will probably cover the initial cost of installing explosives detection (EDS) systems to meet a Dec. 31 deadline, Airports Council International-North America President David Plavin told The DAILY yesterday. However, Plavin warns that the long-term cost of remodeling airports to function efficiently with the new baggage security system will be many times higher.
UPS will install a system that combines traffic collision avoidance system (TCAS) data and Automatic Dependent Surveillance-Broadcast (ADS-B) information to create a cockpit display that the system's manufacturer said will improve pilot situational awareness, especially at and around airports.
Early clues uncovered in the probe of Tuesday's China Northern MD-82 accident suggest there was a raging fire onboard Flight 6163 as it plunged into the sea near Dalian (DAILY, May 8). China's Xinhua news agency reported that some debris from inside the cabin, including a beverage cart, were badly burned. All 103 passengers and nine crewmembers on the flight are presumed dead.
A trade mission from Canada now visiting Peru includes airline and tour operator Air Transat, which has shown interest in exploring new routes to carry Canadian vacationers to Peru's myriad tourist attractions in talks with potential partners in Lima.
FLS Aerospace recently won a contract to do "A" checks and line maintenance on Volare Airlines' six Airbus A330s. As part of the deal to support the Verona, Italy-based carrier, FLS will set up a line maintenance station at Milan Malpensa Airport.
Two FlightSafety Boeing Training International's Boeing 717-200 simulators have received FAA Level "D" certification. One of the simulators is at FSB's Atlanta center and the other at the Miami facility. Both simulators were certified with the new "flight test update," which incorporates the latest aircraft data package, FSB said.
The Bush administration will soon have to seek a new deputy administrator for FAA as well as a new administrator, as long-serving Acting Deputy Administrator Monte Belger has announced he will retire July 31. He has not given a reason for his retirement decision, but Belger will be leaving four days before Administrator Jane Garvey's scheduled departure date. The Bush administration has not named a successor for either position. Belger has worked for FAA for more than 30 years. He joined the agency in 1972 as a security inspector in Tampa.
Although Vienna Airport has not been as badly affected by traffic reductions as other European airports, it has been forced to review its expansion program and delay some projects. The airport's Senior Executive VP for Finance Siegfried Gangl said that 11.4 million passengers are expected to use the airport this year, down 4% from last year's total. However, Gangl said traffic should recover fully by the end of this year or early 2003.
Alaska Air reported this week that it had $647 million in cash and short-term investments on hand as of April 30. The amount is up slightly from its March 31 cash balance of $620 million. Separately, the airline reported in a securities filing that its capacity would be up 5.7% in the quarter and increase 9% for the full year. Unit costs are estimated to rise 3.8% in the quarter to 8.6 cents.
Turkish Airlines announced that it had signed a letter of intent to sell seven Airbus A310/A300 aircraft for $144.6 million, but refrained from unveiling the buyers' identity yesterday. The airline indicated that the deal was subject to approval from Turkey's privatization administration. The sale is in line with the company's policy of leasing planes to update its fleet rather than resort to purchases.
British low-cost airline EasyJet plans to take over British Airways' subsidiary carrier Deutsche BA in an effort to become Europe's largest player in the no-frills sector. The company signed an agreement with BA that gives EasyJet the option to buy DBA at any time until March 31, 2003. Depending on the timing, EasyJet will have to pay EUR35-44 million for DBA. In addition, EasyJet could finalize a separate deal to take over rival Go -- a former BA unit -- tomorrow.
The International Association of Machinists held a nationwide rally yesterday to stress the role that its members are playing in making airports safer. Union leadership also said more needs to be done to involve labor groups in the development of new security strategies.
ILFC later this month will deliver a Boeing 767-300ER to Zurich-based Hotelplan International Travel, the lessor reported. Terms were not disclosed. Belair will operate the Pratt & Whitney PW4060-equipped plane, Serial No. 27600. The 767 will come from Air Europe and will be replaced at that airline by an ILFC-owned Airbus A330-200.
US Airways next week plans to start circulating a first draft of its restructuring plan with its union leadership and other stakeholders, according to CEO David Siegel. These groups have been invited to meet with Siegel and his team and provide feedback on the draft. In a message to employees, Siegel said the recent effort to draft the plan has been a "monumental task" partly because of its complexity and the time pressures involved.
KLM reported a net loss of EUR156 million in the fiscal year that ended March 31, compared with a net profit of EUR77 million in the previous year, the Dutch airline said yesterday. Group operating revenues decreased 6% to EUR6.5 billion. "The fiscal year 2001/02 was a difficult year for the entire airline industry," KLM said, adding that it slashed capacity 8% at the beginning of the winter season and started restoring it as traffic levels recovered.
Since airlines have cut base commissions, many large online and offline travel agencies have boosted efforts to sign pay-for-performance deals to move market share in designated routes and regions, according to a new report. Darryl Jenkins, director of the Aviation Institute at The George Washington University, has authored a study "Buyer Beware: Online Travel Displays For Sale," that focuses on the premise that the tactics to drive market share to one competitor over another has stayed the same despite the dramatic shift in distributing airline tickets.
Aero Continente Dominicana applied at DOT for U.S.-Dominican Republic service, intending to offer scheduled operations between points in the Dominican Republic and co-terminal points Miami and New York. The carrier, a "newly formed airline," plans to fly a daily roundtrip between Santo Domingo and Miami and a daily roundtrip between Santo Domingo and New York, using two leased Boeing 767-200ER aircraft.
Israel Aircraft Industries posted net profits of $15 million on revenues of $509 million in the first quarter. Profits fell 25% from the $20.1 million earned in the first quarter of 2001, while revenues rose about 2%, from $499 million.
Air Holland will lease a Boeing 767-300ER from ILFC for six years, the lessor said. The CF6-80C2-equipped plane (MSN 27136) will be delivered this month.
Washington National Airport may reopen to general aviation flights and charter operations that could begin by the end of May under an interim final rule, DOT Assistant Secretary for Aviation and International Affairs Read Van de Water told the House Government Reform Committee's District of Columbia Subcommittee yesterday. Comments on the rules provisions could be submitted before a final rule would be issued.
Spirit Airlines in Detroit today will unveil new branding that will include a two-color scheme that will replace its decade-old original logo, which was developed by founder Ned Homfeld on his Macintosh computer, according to Tom Anderson, chief marketing officer. One of Spirit's MD-80s has been painted in the new livery.
