The devaluation of the peso, higher fuel prices and a serious recession may deepen the ongoing airline crisis in Argentina, according to Patricio Sepulveda, IATA's regional director for Latin America. At the FIDAE air show in Santiago last weekend, he said, "This doesn't mean real domestic airfare increases because right now it's difficult to transfer them to the traveling public." Instead, carriers have opted to eliminate fares discounted for advance sale, which resulted in hidden increases ranging from 20% to 48% since the beginning of this month.
Venezuela's Central Bank said domestic airfares went up as much as 40% in March, one of the highest increases ever recorded. This is blamed on the devaluation of the local currency, the bolivar. While fuel deliveries were delayed at airports due to strikes, the country's major airport in Caracas has a fuel reserve and ensures immediate deliveries for aircraft and airport service vehicles.
AeroMexico plans to add a fourth nonstop from Miami to Mexico City on April 12. The airline also serves Cancun and Merida nonstop from Miami. The new Mexico City flight will operate Friday, Saturday and Sunday.
New Orleans Lakefront Airport took a step toward entering FAA's pilot privatization program, a move some say could save the city as much as $34 million over the term of a 50-year lease to a private operator. Only one airport, Newburgh, N.Y., Stewart International, has started privatized operations. On March 22, the Orleans Levee District approved American Airport Corp. (AAC) to hold a 50-year lease as operator and developer. Airport officials sought the FAA pilot privatization program after years of operating at a loss.
A German regional court has ruled that Lufthansa cannot reduce fares to the level of low-fare competitor Germania on the Frankfurt-Berlin route. According to the ruling, Lufthansa's cheapest one-way fares must be EUR30.5 above Germania's. The ruling, effective imminently, could have severe consequences for Lufthansa if applied similarly in other cases. The airline would not be able to react if other low-fare competitors, such as Ryanair, opened new services.
United CEO Jack Creighton said the carrier is protecting "one of our strongest assets -- our route network" -- by adding 127 flights back into its system in recent days.In a message to employees, he said United "has long been known as the carrier with the best network across the world and, with competition as fierce as it is, we're working hard to maintain that advantage."
United CEO Jack Creighton said the carrier is protecting "one of our strongest assets -- our route network" -- by adding 127 flights back into its system in recent days. In a message to employees, he said United "has long been known as the carrier with the best network across the world and, with competition as fierce as it is, we're working hard to maintain that advantage."
Poland is interested in buying an Embraer Legacy executive jet following an order from LOT Polish Airlines for 16 Embraer 50-seat EMB-145 aircraft. Poland's PZL-Mielec, which makes agricultural aircraft, is exploring a partnership with Embraer.
The motion by GE Capital Aviation Services in a Sao Paulo court that grounded Transbrasil is declared bankrupt was postponed yesterday for the third time. On Monday, GECAS repossessed an engine of the carrier's last operational Boeing 767-200. The other two 767s have no engines.
A National Air Traffic Services (NATS) computer broke down yesterday morning, causing large delays for flights in Southern England. A computer at the West Draydon air traffic control center was down for 16 minutes at 6:00 a.m. A similar incident happened only a month ago. NATS has been in financial difficulties as a result of the ongoing crisis in international air travel.
Atlantic Coast Airlines and SkyWest are unlikely to face material changes in their fixed-fee agreements with major partners, Merrill Lynch analyst Michael Linenberg said, noting that both companies remain healthy investments despite recent reductions in share prices that reflect concerns about possible changes in fixed-fee deals. Linenberg and James Parker, of Raymond James, noted that neither carrier is likely to see major alterations in the way they do business with their partners.
An American Boeing 767 aircraft parked outside a hangar at Los Angeles International Airport yesterday rolled into a nearby fence and overhead power lines. No one was on the aircraft and no one on the ground was injured. Damage to the aircraft was not immediately known.
CCAIR pilot leadership yesterday voted down a contract offered by airline management. The future of the airline is uncertain following a recent announcement by management that the airline could cease operation by July 1.
The traffic of SAS Group companies fell 6.2% in March 2002, compared with the same 2001 period, said Scandinavian Group, which includes SAS Airline, Spanair, Wideroe, Air Botnia and Braathens. Spanair halted all long-haul services, while Norway's Braathens cut capacity 34% on domestic routes, SAS said. In February, the Group's traffic fell 5.4%. SAS's high-yield business-class traffic dropped 24.2% year over year in March. The plunge was partly due to the timing of the Easter holidays, which came in March this year, rather than April.
Continental will begin nonstop Newark-Montego Bay, Jamaica, service with continuing service to Kingston on Dec. 12. Flights will be operated with 155-seat Boeing 737-800 aircraft.
The traffic of SAS Group companies fell 6.2% in March 2002, compared with the same 2001 period, said Scandinavian Group, which includes SAS Airline, Spanair, Wideroe, Air Botnia and Braathens. Spanair halted all long-haul services, while Norway's Braathens cut capacity 34% on domestic routes, SAS said. In February, the Group's traffic fell 5.4%. SAS's high-yield business-class traffic dropped 24.2% year over year in March. The plunge was partly due to the timing of the Easter holidays, which came in March this year, rather than April.
Air Canada Jazz, the company's regional division, has launched daily nonstop regional jet service between Halifax and Boston. The twice-daily service is provided with 77-seat British Aerospace 146-BAe aircraft. The airline also flies Boston-Halifax with Dash 8s.
Delta will add flights from Atlanta to Tallahassee, Fla., on June 1. With the new schedule, Delta and its Delta Connection carrier will offer eight daily flights on the route. Delta will add two MD-88 flights for a total of five Delta flights, and Delta Connection will operate three daily flights with Canadair Regional Jet aircraft.
Air Canada Jazz, the company's regional division, has launched daily nonstop regional jet service between Halifax and Boston. The twice-daily service is provided with 77-seat British Aerospace 146-BAe aircraft. The airline also flies Boston-Halifax with Dash 8s.
Boeing plans to market its 717 jet to airlines that will need to replace DC-9s and 737s when the industry returns, according to Nicole Piasecki, VP-bu siness strategy and marketing.Piasecki told The DAILY there are customers in Australia that have expressed interest in the 717, which has faced weak sales.
Fairchild Dornier's insolvency administrator Eberhard Braun still wants to sell the company as a whole. Braun told The DAILY yesterday that the schedule to achieve his "strategic goal" is very tight, however. Braun has two and a half months left to find a buyer for the company. He is allowing spending only where it is absolutely necessary, and he defended the move to lay off virtually all sales staff except three Oberpfaffenhofen, Germany-based employees.
Raytheon's Standard Terminal Automation Replacement System (STARS) Early Display Configuration (EDC) entered initial operational capability (IOC) at Bradley International Airport in late March, achieving the goal seven weeks ahead of schedule. Bradley joins Memphis, El Paso and Syracuse as airports where controllers are using the EDC for controlling air traffic.
Note To Readers: We welcome Adrian Schofield as The DAILY's newest reporter. He primarily will tackle the FAA and labor relations, along with some general aviation duties. Adrian joins us from Phillips Publishing, where he was in charge of Commuter/Regional Airline News and World Airline News. Prior to that, he was in charge of Inside FAA at Inside Washington Publishers. We're thrilled to have him aboard and he can be reached at [email protected]. --Michael Miller, Editor-in-Chief
