A "big drop" in air fares has led to an 8% decline in the cost of leisure travel, according to the American Automobile Association, a finding that conflicts with consumer complaints over higher air fares spurred largely by the increase in jet fuel. AAA's monthly report indicates roundtrip leisure fares decreased nearly 14% in April to an average $227.60, down $35.97 from March.
Passenger traffic to Orlando Airport increased 8.63% from last year as Copa started flights from Panama, Continental increased service to Newark and AeroMexico reduced operations from Mexico City.
DOT yesterday set the required schedule of "short deadlines" for processing the British Airways/Virgin Atlantic complaint against Newark Airport and the Port Authority of New York and New Jersey on short-notice fee hikes. Complaints by other carriers are due May 1, with answers and petitions to intervene due May 8. Replies are due May 15, and DOT will determine whether the dispute is significant by May 24. (Docket OST-00-7285)
Carrier Profile - Northwest Airlines Top 20 City-Pair Markets Nonstop Daily Daily Rank Market Miles Passengers Revenue 1 Detroit - New York/Newark 492 985 $114,676 2 Chicago - Minneapolis/St Paul 342 844 $134,101 3 Chicago - Detroit 237 744 $50,745
Grupo TACA will add a fourth weekly roundtrip frequency to its high-yield San Salvador/Havana/Toronto route, using Boeing 737s configured for 111 passengers. Connections to and from Central and South America are available in San Salvador. In March, Grupo TACA broke all previous load factor records for the month to reach 68.5%, 0.5 points above last year's figure
Continental remains in "productive discussions" with Northwest about the acquisition of 14% of the stock shares Northwest gained in a 1998 deal. "We stand behind our proposal to buy back the Northwest shares," said Chief Executive Gordon Bethune at Aviation Week's aerospace conference in New York. "However, they have many issues needing resolution." The pace of discussions appears to have slowed as Bethune noted that the two airlines are "exploring various ways" of reaching a mutual agreement that suits both parties.
BWIA West Indies Airways expects to make $23 million profit this year despite substantial charter competition that has created "free-for-all" situation in the Caribbean, according to Conrad Aleong, BWIA president. Speaking at the delivery ceremony for the carrier's second Boeing 737-800 New Generation, Aleong said BWIA hopes to acquire six more of the 154-passenger aircraft, which would make BWIA's fleet the youngest in the area.
Unit costs for the U.S. major airlines in the first quarter increased 6%, according to Merrill Lynch research, but excluding fuel expenses, unit costs were virtually flat, rising 0.6%.Analyst Candace Browning said most carriers showed "cost discipline" in the distribution area but all are taking delivery of new aircraft, which will lead to cost pressure from higher depreciation and rental expenses during the year.
Assailants shot and killed Yugoslavia's state airline director Zika Petrovic near his home on Tuesday night. According to the Associated Press, Petrovic was an ally of President Slobodan Milosevic and the assignation was the latest in a series of attacks against prominent political figures. Petrovic was director of JAT Yugoslav Airlines and a member of the neo-Communist party of Milosevic's wife Mira Markovic. He was not well known for his role in the party but was known as a family friend of the Milosevics, the AP reported.
United Parcel Service said it filed a statement of claim against Canada for "breaching NAFTA responsibilities as they pertain to Canada Post and its non-monopoly courier business." UPS Canada has been "significantly harmed as a result of these violations and is seeking financial damages" of more than US$160 million.
The Civil Aeronautics Administration (CAA) in Taipei expects the dispute between the Philippines and Taiwan to continue as long as the present equity structure of Philippine Airlines does not change and the current Philippine administration is in power. A CAA official told The DAILY a resolution is not possible in the near future because PAL Executive Chairman and majority shareholder Lucio Tan has the solid backing of the government and the restrictions put on Taiwanese carriers would not be lifted.
Midwest Express asked DOT for broad U.S.-Canada rights, requesting rights for service between any points in the two countries. The carrier wants to begin serving the transborder market May 24 under its code-share agreement with American Eagle. (Docket OST-00-7287)
Vancouver-based Canada 3000 will start Vancouver-Brisbane service May 7 with Airbus A330 aircraft. Spokeswoman Angela Saclamacis said the flights will operate once a week on Sunday. The company said the Queensland government tourism office and Canada 3000 will spend about A$250,000 to market the route, the first service between Canada and Brisbane. Canada 3000 operates about 70% scheduled service and since the restructuring of the Canadian airline industry has been able to add more international routes.
Cyprus Turkish Airlines has taken delivery of two Boeing 737-800s leased from Sunrock Aircraft Corp. The aircraft will be used on routes from Cyprus to Israel, the U.K., Germany and other European points.
Peru's Airport Management Corporation will inaugurate three major expansion and modernization projects in May. With an investment of $2.5 million, the company has added four access passenger ramps to the terminal at Cusco, where runways also have been repaired and fire-fighting and other emergency equipment moved to a new location. At Pucallpa and Tarapoto, it upgraded passenger terminal facilities at a cost of $1.5 million each.
Varig, Brazil's largest airline, has created an in-house tour division -- Varig Travel Vacations -- offering a range of economy tour packages. The inaugural five-night packages to Rio de Janeiro start at $569 from New York and Miami and at $689 from Los Angeles. According to Carlos Muzzio, Varig's director for North America, the in-house operation will ensure better quality control and product access ability, and will use the latest e-commerce technology "to make booking and distribution of our product most convenient for our travel agent partners."
Colombian cargo carrier TAMPA, fresh from expanding its scheduled cargo services from Colombia to Sao Paulo and Mexico City, soon will inaugurate operations to Guadalajara, Mexico, and Santa Cruz, Bolivia, and strengthen its bases in Caracas and Valencia, Venezuela. To support the expansion, TAMPA will renew its fleet this year and in 2001: Existing DC-8-71s are being replaced with a leased DC-10-30, and several Boeing 767s are being converted from passenger service to cargo, increasing capacity 20%. TAMPA charters have carried live ostriches from the U.S.
Canadian technology conglomerate Bombardier hopes to more than double revenues within five years, and acquisitions probably will play a big role in those plans. Eyeing Europe's on-again off-again aerospace industry consolidation, Bombardier President and Chief Executive Robert Brown said yesterday, "We must make a move, and the move will be very aggressive, especially in Germany and Belgium." Brown told the Aviation Week aerospace conference in New York that there is overcapacity in Europe and that he expects a rationalization soon.
Sebastian Pinera, a prominent Chilean entrepreneur and a director of LanChile, has asked his country's Foreign Office and the Ministries of Transportation and Public Works to take steps toward early implementation of open-skies agreements with other countries in the area, a move that has been well received in those official circles, sources in Santiago and Buenos Aires report. "We are deeply committed to open skies in Latin America," Pinera said.
The Kaskol group said it has acquired 16% of the stock of the Russian cargo airline Volga-Dnepr. The carrier, established in 1990, is described as a market leader in the transport of superheavy -- up to 120 tons -- and outsize cargoes on its Antonov An-124-100 freighters. Alexey Isaikin, Volga-Dnepr's director general, said the move "aims at substantially improving the Volga-Dnepr operation, raising its competitiveness and ensuring its effective functioning in every part of the world." Annual sales volume last year was more than $100 million.
SAirGroup is poised to increase its stake in Sabena to 85% -- up from 49.5% -- following an agreement with the Belgian government, Belgian Minister for Public Enterprises and Participations Rik Daems announced yesterday in Brussels. The accord, which leaves the Belgian state with 15% of Sabena, is subject to scrutiny by the European Commission. The deal is expected to be confirmed in the first half of next year.
Sun Country requested six Chicago O'Hare slots for three daily Minneapolis/St. Paul-Chicago roundtrips. The carrier wants to start service Sept. 3 using Boeing 727-200 aircraft configured for 170 seats.
Richard Branson, founder and chairman of Virgin Atlantic Airways, was named the recipient of the 2000 Tony Jannus Award, which recognizes outstanding contributions within the commercial aviation industry. Branson will accept the award Oct. 12 in St. Petersburg, Fla.
