SkyWest likely will launch United Express service at Denver in the next three to six months, according to Merrill Lynch's Mike Linenberg. Four of the six RJs SkyWest has on order for United service likely will be based in Denver, not the West Coast.Linenberg also foresees the Denver RJs supported by a subfleet of up to 15 Brasilia turboprops. SkyWest's 11 RJs are all dedicated to Delta flying now, but United could see 100 SkyWest RJs flying in the next 10 years.
US Airways yesterday launched its Airbus A330-300 service from its Philadelphia hub to Paris Charles de Gaulle Airport. "This aircraft gives us the flexibility to add both an enhanced level of service and the ability to increase our transatlantic service pattern," said Chief Executive Rakesh Gangwal.
Singapore Airlines may have to give up its hopes of raising its stake in Air New Zealand from the current 25% to 40%. New Zealand Prime Minister Helen Clark said at a breakfast talk organized by the New Zealand Business Council in Singapore that it is the government's concern that ANZ must be effectively controlled by New Zealand, failing which, the bilateral air rights secured after much effort could be hurt. On April 25, SIA agreed to buy 16.7% of ANZ's shares from Brierley Investments for US$139 million. It earlier acquired 8.3% on the open market.
Brazilian airline VASP this week returned four leased MD-11s to Boeing and will suspend all international flights to the U.S. and Europe, effective May 15. The airline concluded negotiations with Boeing without reaching a new agreement with lower payments. "The terms Boeing offered were not compatible with the market reality we have in Brazil," Special Assistant to the President Elias Gedeon told The DAILY. While the country's economy is improving, VASP still is experiencing low yields and intense competition. The airline also remains in significant debt.
DOT granted AeroMexico an initial one-year exemption for Atlanta-Merida service. Delta applied in Docket OST-00-7292 to code share on AeroMexico flights in the market. (Docket OST-00-7230)
AirTran yesterday signed an agreement with Houston-based PROS Revenue Management to provide the airline with a new revenue management system. AirTran will use the prosRM 5 Revenue Optimization system to forecast, manage and optimize the allocation of seat inventory at different fare levels across its network. "When we concluded that our revenue management needs would be better served by a new system, PROS demonstrated they could provide the ideal system, and do so quickly," said Kevin Healy, AirTran's VP-planning.
Following Angel Air's failure as Thailand's second designated national airline, the Thai government is willing to consider granting an operating certificate to another local private carrier for a similar function. Angel suspended flights on its regional routes last month after two of its Boeing 737-400s leased from Malaysia Airlines were repossessed for failure to make payments.
Bulgaria's national airline canceled flights to and from several European cities this week after its pilots walked out demanding higher wages. According to the Associated Press, the strike at Balkan Airlines started late Tuesday, and no end to the action has been announced. Pilots have threatened to strike until their demands are met. The action could force officials to liquidate parts of the financially ailing carrier, AP reported. Under pressure to reduce debt ever since it took over, Balkan's new management team has rejected demands for higher salaries.
In one of the most creative aircraft purchases in recent years, American Trans Air yesterday ordered 47 Boeing aircraft while simultaneously committing Boeing, ILFC and GE Capital to invest in the carrier. ATA finalized an expected order for 47 twinjets -- 10 firm 757-300s and 37 firm 737-800s that will renew most of the airline's fleet by early 2003. ATA did consider buying Airbus A320s, officials said, but chose Boeing's "unprecedented package of equipment, service and financing." The innovative deal was structured by the Boeing Capital Corp.
In what aviation industry analysts believe is one of the most aggressive policy moves in the country in recent times, India's federal civil aviation ministry signed bilateral air traffic rights agreements with its counterparts in 10 countries -- U.K., Austria, Oman, Qatar, Turkmenistan, Uzbekistan, Syria, Mauritius, Sri Lanka and Thailand, ministry sources said this week. The pacts allow for a total increase in air seat entitlement of 9,680 seats per week in each direction or nearly one million seats per year in both directions, sources added.
An Air Force report on the Digital Airport Surveillance Radar concludes that the radar is not interoperable with current FAA or Defense Department automation systems. DASR is a digital radar system designed to increase the terminal Air Traffic Control capabilities while reducing the workload on air traffic controllers and providing increased availability and maintainability.
Regional airlines in the U.S. are expected to board 104 million passengers and fly 31 billion revenue passenger miles annually by 2005, SkyWest Chairman Jerry Atkin told the Regional Airline Association Convention this week. Atkin, who also is RAA chairman, said the size of the regional fleet is expected to grow to 2,800 units. Regionals currently account for 49% of weekly U.S. departures and passengers boarded have grown to 78.1 million in 1999 total from 11.3 million in 1978. Fifty-five percent of airports in the U.S.
SAS yesterday took delivery of its first Boeing 737-800, which will become the "backbone" of its domestic system. The aircraft is the first of 15 737-800s SAS has ordered. SAS was the launch customer for the 737-600 and has been a 737 operator since taking delivery of its first -600 in 1998. "The 737-800 represents a great improvement to SAS domestic operations," said Anders Ehrling, VP-domestic routes.
U.S. National, Regional and Cargo Carriers Advertising Expense Fourth Quarter 1999 National Carriers % Of Total Advertising Operating Expenses AirTran Airlines 2,524,141 2.42 Aloha 2,367,649 3.75 American Trans Air 3,745,264 1.65 Frontier 812,757 1.16
TRAFFIC DATA FOR APRIL 2000 RPMs Change ASMs Change In From In From Load Airline Millions 4/99 Millions 4/99 Factor AirTran 0.33 +4.9% 0.48 +2.8% 69.1% Alaska 0.99 +1.7% 1.40 +1.1% 70.3% America West 1.58 +10.5% 2.25 +5.7% 70.2%
Clarification: European Union's complete ban of hushkitted aircraft in 2002 will apply to all aircraft operating in the EU except those flown by EU carriers. The DAILY May 4 implied the ban was universal.
Delta will expand its BusinessElite U.S. transcontinental business class service to the carrier's new route between Boston and Los Angeles beginning July 1. Delta's new service was launched Monday on transcontinental flights between New York Kennedy and Los Angeles, San Francisco and San Diego. Delta will offer BusinessElite U.S. on its two new daily nonstop flights between Boston and Los Angeles, using Boeing 767-300s.
Onex Corp. signed on as a major partner in Skyfish.com, the business-to-business trading hub and vertical aerospace portal. Skyfish.com received $4 million in venture capital from Onex's Internet and technology investment subsidiary, @Onex.
U.S. Carriers Landing Fees Fourth Quarter 1999 Major Carriers Cost Landing Fees Per Landing Alaska 5,852,000 138.46 America West 8,639,733 161.88 American 62,232,000 286.97 Continental 40,540,000 349.40 Delta 56,567,000 235.05
Air Canada reported a first quarter operating loss of C$5 million (US$3.4 million) yesterday, a C$12 million improvement from its 1999 loss, on higher traffic and cost control. The result was achieved despite an C$80 million (US$54 million) increase in fuel expenses year over year. Net loss for the quarter widened to C$34 million (US$23 million) from C$6 million in 1999, which included non-recurring after-tax gains of C$39 million.
The top 10 U.S. carriers canceled 2.1% of scheduled domestic flights in March, the second month for which DOT reported cancellations in its Air Travel Consumer Report. This level was down from 3.4% in February. Alaska canceled the most flights, 4.9%, while Continental had the least, 0.9%. There were 10,237 flights canceled among the 10 majors, and United had the most, 2,196. On-time arrivals in March averaged 77.0%, better than February's 74.8% but lower than the 78.1% posted in March 1999. Northwest had the best on-time rate, 83.2%.
Edward Bolen, chief executive of the General Aviation Manufacturers Association, was nominated by the Clinton administration to a two-year term on the FAA Management Advisory Council. The Senate Commerce Committee will hold a hearing Thursday on Bolen and seven other nominees to the MAC.
The number of regional airlines in the U.S. probably will shrink to fewer than 50 in 2010, and turboprops will remain the core of regional fleets, although the number of regional jets will continue to grow, BACK Aviation Solutions VP-Business Development Tulinda Larsen predicted this week. Speaking at the Regional Airline Association Convention in San Antonio, Larsen also said there would be more consolidation and declining yields as RJs continue entering fleets.
