AIRLINE NEWS
Saturday, May 31, 2008
End of an era for paper airline tickets
The paper airline ticket comes to the end of its life on Sunday when 240 carriers belonging to the world association IATA switch to all electronic ticketing, much of it through internet booking.
news.theage.com.au
news.theage.com.au
Silverjet grounded as funding falls through
Silverjet on Friday became the third business-class-only airline in just six months to cease operations, unable to cope with rising fuel costs or attract new financing.
The British airline, which was one of four independent carriers that focused on flying business travelers across the Atlantic, suspended its service after just 18 months in business. Its last flight touched down at the Luton airport of London Friday afternoon.
iht.com
The British airline, which was one of four independent carriers that focused on flying business travelers across the Atlantic, suspended its service after just 18 months in business. Its last flight touched down at the Luton airport of London Friday afternoon.
iht.com
Thursday, May 29, 2008
American Airlines to end New York-Stansted flights
American Airlines said Wednesday it will stop flying between New York's John F. Kennedy International Airport and London's Stansted Airport less than a year after launching the route.
The move, which takes effect July 2, is part of the leading U.S. carrier's plan to cut costs and shed capacity by 11 percent to 12 percent in the face of rapidly rising fuel prices. Flights to London's Heathrow Airport are not affected by the change.
Fort Worth, Texas-based American launched service to Stansted in October, hoping to gain a larger share of the lucrative trans-Atlantic business travel market. Its entry was seen as partially responsible for the failures of all-business class carriers MAXjet Airways and Eos Airlines Inc., which quit flying from the airport in recent months.
On Tuesday, American said it will discontinue its Chicago-Buenos Aires service and Boston-San Diego service on Sept. 3, and Chicago-Honolulu service on Jan. 5. It will also restructure American and American Eagle operations at San Juan, Puerto Rico, beginning in September.
Source: money.cnn.com
The move, which takes effect July 2, is part of the leading U.S. carrier's plan to cut costs and shed capacity by 11 percent to 12 percent in the face of rapidly rising fuel prices. Flights to London's Heathrow Airport are not affected by the change.
Fort Worth, Texas-based American launched service to Stansted in October, hoping to gain a larger share of the lucrative trans-Atlantic business travel market. Its entry was seen as partially responsible for the failures of all-business class carriers MAXjet Airways and Eos Airlines Inc., which quit flying from the airport in recent months.
On Tuesday, American said it will discontinue its Chicago-Buenos Aires service and Boston-San Diego service on Sept. 3, and Chicago-Honolulu service on Jan. 5. It will also restructure American and American Eagle operations at San Juan, Puerto Rico, beginning in September.
Source: money.cnn.com
Labels: american airlines, New York, stansted
Qantas tightens seat belts and cuts capacity by 5% as fuel price continue to fly sky-high
Qantas will slash hundreds of jobs, freeze executive pay, ground aircraft and shut down some routes - and those of its offshoot Jetstar - because of the steep rise in fuel prices.
There will be reduced Jetstar operations at Avalon airport by August and the Melbourne to Uluru and Sydney to Gold Coast routes flown by Qantas would be dropped altogether. In total the moves will cut capacity by 5%.
theage.com.au
There will be reduced Jetstar operations at Avalon airport by August and the Melbourne to Uluru and Sydney to Gold Coast routes flown by Qantas would be dropped altogether. In total the moves will cut capacity by 5%.
theage.com.au
Tuesday, May 27, 2008
Port Authority steps up planning for 2 new terminals at JFK
The days may be numbered for the two oldest passenger terminals at John F. Kennedy International Airport.
The Port Authority of New York and New Jersey took a first step Thursday in planning the replacement of Terminals 2 and 3, which were state-of-the-art buildings when they opened in the early 1960s but are now overcrowded and obsolete.
The authority, which operates JFK, said it would spend $20 million planning for a new mega-terminal that would have modern security features, space for new amenities and many more gates.
Both existing terminals are now operated by Delta Air Lines Inc., which is part way through a major expansion at JFK.
The airline, which would be a partner in the construction of the replacement terminal, has projected that it will be flying 18 million passengers through JFK by 2017, about double the number it served last year and well more than triple the 5 million it handled in 2002, Port Authority officials said.
Port Authority Aviation Director William DeCota said the reconstruction would be a "huge undertaking," but a necessary one if the airport is to accommodate planned growth in air travel.
"They were built in a different era," he said of the aging structures.
Terminal 2 opened in 1962 and was initially used by Northeast Airlines, Northwest Airlines and Braniff.
Terminal 3, built for Pan American, was slightly more storied. When it opened in 1960, the circular building's most striking design was its huge, flying-saucer-like roof. The building had a 114-foot overhang intended to shelter passengers from rain as they boarded parked aircraft - a feature rendered obsolete by the development of the jetway.
The terminal was renamed the "Worldport" when it expanded in the early 1970s to accommodate the Boeing 747.
The plans for demolishing and rebuilding the terminals are being made at a time when JFK is undergoing several major operational changes as a result of its growth spurt.
After near-record flight delays last year, federal authorities capped the number of hourly flights allowed at the airport, saying the airlines had scheduled too many takeoffs and landings.
The FAA followed that up with an announcement that it intended to ration those flight slots by auctioning them to the highest bidder - a procedure that could, potentially, make it somewhat risky for an airline to invest in new terminal facilities.
Though the specifics of the auction plan have yet to be worked out, airlines have complained that they could spend millions of dollars building gates and lounges, only to see their flight slots auctioned off to some other airline.
"The reality is, this creates a great deal of uncertainty," DeCota said. The Port Authority has opposed both the flight caps and the auction plan, saying the airport can accommodate many more flights than the FAA currently allows.
DeCota added, though, that concerns over flight rationing aren't yet severe enough to stall the plans for the terminals, which would be the final stage in a $9 billion-plus overhaul of the airport's facilities that began in the 1990s.
Delta spokeswoman Betsy Talton said the renovations will help the airline lower costs, reduce taxi times and streamline its baggage handling system.
There is no estimated cost of the new terminal yet, she said. Coming up with a price tag and construction timeline will be part of the planning study.
Source: newsday.com
The Port Authority of New York and New Jersey took a first step Thursday in planning the replacement of Terminals 2 and 3, which were state-of-the-art buildings when they opened in the early 1960s but are now overcrowded and obsolete.
The authority, which operates JFK, said it would spend $20 million planning for a new mega-terminal that would have modern security features, space for new amenities and many more gates.
Both existing terminals are now operated by Delta Air Lines Inc., which is part way through a major expansion at JFK.
The airline, which would be a partner in the construction of the replacement terminal, has projected that it will be flying 18 million passengers through JFK by 2017, about double the number it served last year and well more than triple the 5 million it handled in 2002, Port Authority officials said.
Port Authority Aviation Director William DeCota said the reconstruction would be a "huge undertaking," but a necessary one if the airport is to accommodate planned growth in air travel.
"They were built in a different era," he said of the aging structures.
Terminal 2 opened in 1962 and was initially used by Northeast Airlines, Northwest Airlines and Braniff.
Terminal 3, built for Pan American, was slightly more storied. When it opened in 1960, the circular building's most striking design was its huge, flying-saucer-like roof. The building had a 114-foot overhang intended to shelter passengers from rain as they boarded parked aircraft - a feature rendered obsolete by the development of the jetway.
The terminal was renamed the "Worldport" when it expanded in the early 1970s to accommodate the Boeing 747.
The plans for demolishing and rebuilding the terminals are being made at a time when JFK is undergoing several major operational changes as a result of its growth spurt.
After near-record flight delays last year, federal authorities capped the number of hourly flights allowed at the airport, saying the airlines had scheduled too many takeoffs and landings.
The FAA followed that up with an announcement that it intended to ration those flight slots by auctioning them to the highest bidder - a procedure that could, potentially, make it somewhat risky for an airline to invest in new terminal facilities.
Though the specifics of the auction plan have yet to be worked out, airlines have complained that they could spend millions of dollars building gates and lounges, only to see their flight slots auctioned off to some other airline.
"The reality is, this creates a great deal of uncertainty," DeCota said. The Port Authority has opposed both the flight caps and the auction plan, saying the airport can accommodate many more flights than the FAA currently allows.
DeCota added, though, that concerns over flight rationing aren't yet severe enough to stall the plans for the terminals, which would be the final stage in a $9 billion-plus overhaul of the airport's facilities that began in the 1990s.
Delta spokeswoman Betsy Talton said the renovations will help the airline lower costs, reduce taxi times and streamline its baggage handling system.
There is no estimated cost of the new terminal yet, she said. Coming up with a price tag and construction timeline will be part of the planning study.
Source: newsday.com
Monday, May 26, 2008
United, US Airways delay China launch
Two airlines that only months ago won federal approval to begin highly coveted routes to China are postponing the launch of the new services because of high fuel costs.
The requests come at a time of growing strain on the airline industry, which is anticipating multibillion dollar losses this year as it scrambles to cope with runaway oil prices and a slumping U.S. economy.
United Airlines (UAUA, Fortune 500) has sought and US Airways (LCC, Fortune 500) plans to ask for one-year delays in launching the new routes, representatives from the carriers said Thursday. United won final approval and US Airways received the tentative go-ahead to launch the routes from the U.S. Department of Transportation in September.
Since then, oil prices have shot up more than 60%. Benchmark prices surged past $135 a barrel Thursday before settling at $130.81, down $2.36 on the New York Mercantile Exchange.
The routes in question affect planned United service between San Francisco to Guangzhou, and US Airways flights between Philadelphia and Beijing.
Access to routes between the U.S. and China is highly competitive because air service between the two countries is restricted by bilateral agreements. A July agreement between the two countries was intended to double the number of daily flights allowed between the two nations over the next five years.
United's request for a delay was approved April 25, while the request from US Airways has not yet been received, Transportation Department spokesman Bill Mosley said.
United, a division of UAL Corp., was scheduled to start its new flights in early June, but now plans to postpone the launch until June 2009. Spokeswoman Robin Urbanski said the Chicago-based carrier is scaling back plans for one new international route, San Francisco to Guangzhou, where there aren't "strong enough economics" to offset higher fuel costs.
United received final approval for its route in September, the same time Delta Air Lines Inc. (DAL, Fortune 500) won the opportunity to launch its first flights to China with a daily route between Shanghai and Atlanta. Delta's flights began March 31.
US Airways has begun sending letters to members of Congress and its employees saying it would seek to delay the launch of the new Philadelphia-Beijing route, noting that the cost for fuel would be more than $90 million a year - $40 million more than the original estimate of about $50 million.
"We're optimistic that economic conditions will be on the upswing in 2010, giving us a better chance of success with our first route to China," Scott Kirby, the president of Phoenix based US Airways Group Inc., said in a letter to workers.
Sen. Bob Casey, D-Pa., said in a statement that the China route is a priority for the Philadelphia region, and that the delay was another example of how high fuel prices are hurting the economy.
"I hope this delay is only temporary because this route has the potential to be an economic boon to Philadelphia and good business for US Airways," Casey said.
Before it began the process of delaying the launch, US Airways had planned to start its new route in 2009.
US Airways received final approval for the route in December. At the same time, AMR Corp.'s (AMR, Fortune 500) American Airlines, Continental Airlines Inc. (CAL, Fortune 500) and Northwest Airlines Corp. (NWA, Fortune 500) each won awards to add a new daily flight to their existing service beginning next year.
Representatives for American, Continental and Northwest said they are not making any changes to their plans for new China passenger routes next year.
However, Northwest has applied for a waiver to suspend seven weekly roundtrip cargo flights a week between Tokyo and Guangzhou, China, spokeswoman Tammy Lee said.
Source: money.cnn.com
The requests come at a time of growing strain on the airline industry, which is anticipating multibillion dollar losses this year as it scrambles to cope with runaway oil prices and a slumping U.S. economy.
United Airlines (UAUA, Fortune 500) has sought and US Airways (LCC, Fortune 500) plans to ask for one-year delays in launching the new routes, representatives from the carriers said Thursday. United won final approval and US Airways received the tentative go-ahead to launch the routes from the U.S. Department of Transportation in September.
Since then, oil prices have shot up more than 60%. Benchmark prices surged past $135 a barrel Thursday before settling at $130.81, down $2.36 on the New York Mercantile Exchange.
The routes in question affect planned United service between San Francisco to Guangzhou, and US Airways flights between Philadelphia and Beijing.
Access to routes between the U.S. and China is highly competitive because air service between the two countries is restricted by bilateral agreements. A July agreement between the two countries was intended to double the number of daily flights allowed between the two nations over the next five years.
United's request for a delay was approved April 25, while the request from US Airways has not yet been received, Transportation Department spokesman Bill Mosley said.
United, a division of UAL Corp., was scheduled to start its new flights in early June, but now plans to postpone the launch until June 2009. Spokeswoman Robin Urbanski said the Chicago-based carrier is scaling back plans for one new international route, San Francisco to Guangzhou, where there aren't "strong enough economics" to offset higher fuel costs.
United received final approval for its route in September, the same time Delta Air Lines Inc. (DAL, Fortune 500) won the opportunity to launch its first flights to China with a daily route between Shanghai and Atlanta. Delta's flights began March 31.
US Airways has begun sending letters to members of Congress and its employees saying it would seek to delay the launch of the new Philadelphia-Beijing route, noting that the cost for fuel would be more than $90 million a year - $40 million more than the original estimate of about $50 million.
"We're optimistic that economic conditions will be on the upswing in 2010, giving us a better chance of success with our first route to China," Scott Kirby, the president of Phoenix based US Airways Group Inc., said in a letter to workers.
Sen. Bob Casey, D-Pa., said in a statement that the China route is a priority for the Philadelphia region, and that the delay was another example of how high fuel prices are hurting the economy.
"I hope this delay is only temporary because this route has the potential to be an economic boon to Philadelphia and good business for US Airways," Casey said.
Before it began the process of delaying the launch, US Airways had planned to start its new route in 2009.
US Airways received final approval for the route in December. At the same time, AMR Corp.'s (AMR, Fortune 500) American Airlines, Continental Airlines Inc. (CAL, Fortune 500) and Northwest Airlines Corp. (NWA, Fortune 500) each won awards to add a new daily flight to their existing service beginning next year.
Representatives for American, Continental and Northwest said they are not making any changes to their plans for new China passenger routes next year.
However, Northwest has applied for a waiver to suspend seven weekly roundtrip cargo flights a week between Tokyo and Guangzhou, China, spokeswoman Tammy Lee said.
Source: money.cnn.com
Labels: China, United Airlines, US Airways
Jet crashes, breaks in two on take-off
A large cargo plane crashed and broke apart while trying to abort a take-off at Brussels airport on Sunday, authorities said.
The Boeing 747-200 skidded to a halt in a field at the end of a runway about 1.30pm (2130 AEST).
Four of the five crew members on board the plane, operated by US-based cargo carrier Kalitta Air, were slightly injured and were hospitalised, said Jan Van der Cruysse, spokesman at Brussels Airport.
smh.com.au
The Boeing 747-200 skidded to a halt in a field at the end of a runway about 1.30pm (2130 AEST).
Four of the five crew members on board the plane, operated by US-based cargo carrier Kalitta Air, were slightly injured and were hospitalised, said Jan Van der Cruysse, spokesman at Brussels Airport.
smh.com.au
Labels: Brussels Airport, crash, kalitta air
Sunday, May 25, 2008
Silverjet shares suspended on AIM
Shares in the loss-making business class airline Silverjet have been suspended after it failed to get money vital to the company's survival.
Silverjet said it had agreed a new loan agreement worth £8.4m earlier this month, and had then asked for £5m to be transferred to its bank accounts.
However, it has yet to receive the cash and as a result asked the London Stock Exchange to suspend its shares.
Despite the problems, Silverjet said it would continue services as scheduled.
Urgent matter
The UK airline, which flies from London's Luton Airport to New York and Dubai, is having to deal with high fuel prices and tight credit conditions.
A number of other airlines have also had problems, prompting many of them to raise fuel surcharges and start charging for services such as checking in bags.
Airlines only offering business class services have been hit particularly hard, with Eos and Maxjet already having ceased operations.
"Silverjet's working capital reserves are limited and advances under the loan facility are required as a matter of urgency," the company said.
"In the circumstances, Silverjet has requested, and the London Stock Exchange has confirmed, an immediate suspension in the trading of the ordinary shares of the company on the AIM market," it added.
"Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company.
Silverjet started services in January 2007 and operates three aircraft.
Source: news.bbc.co.uk
Silverjet said it had agreed a new loan agreement worth £8.4m earlier this month, and had then asked for £5m to be transferred to its bank accounts.
However, it has yet to receive the cash and as a result asked the London Stock Exchange to suspend its shares.
Despite the problems, Silverjet said it would continue services as scheduled.
Urgent matter
The UK airline, which flies from London's Luton Airport to New York and Dubai, is having to deal with high fuel prices and tight credit conditions.
A number of other airlines have also had problems, prompting many of them to raise fuel surcharges and start charging for services such as checking in bags.
Airlines only offering business class services have been hit particularly hard, with Eos and Maxjet already having ceased operations.
"Silverjet's working capital reserves are limited and advances under the loan facility are required as a matter of urgency," the company said.
"In the circumstances, Silverjet has requested, and the London Stock Exchange has confirmed, an immediate suspension in the trading of the ordinary shares of the company on the AIM market," it added.
"Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company.
Silverjet started services in January 2007 and operates three aircraft.
Source: news.bbc.co.uk
Labels: Silverjet
Saturday, May 24, 2008
BA's Paris-New York service opens for business
British Airways risks further undermining its relationship with pilots today as it starts selling tickets for its transatlantic OpenSkies airline.
The Paris-to-New York service will begin flying on June 19 with the threat of crippling industrial action still hanging over its owner.
BA pilots voted overwhelmingly to strike over the new carrier, which they claim is a stalking horse for imposing worse terms and conditions. The British Airline Pilots' Association (Balpa) had appealed to the high court to rule on whether any industrial action was legal - but today dropped the claim. A lawyer for Balpa said it would be "out of its mind" to pursue industrial action.
The airline is BA's riposte to the competitive threat posed by a treaty liberalising transatlantic air travel, also called Open Skies, which allows any EU-based carrier to fly to the US and vice-versa.
OpenSkies officially opened for business this morning by offering tickets on the first Paris Orly to New York JFK flights. It will offer business class flatbed seats at $1,700 (£862) for a one-way journey, with premium economy costing $700 and economy costing $500.
Robert Boyle, BA's commercial director, said OpenSkies, which will fly one plane decorated with BA livery, is a genuine departure from other BA services, starting with the fact that under the old transatlantic flight agreements BA was barred from operating US flights from continental Europe.
The 82-seater Boeing 757 plane will also have a new cabin layout, with the long-term possibility of turning the subsidiary into a business class-only carrier to rival the likes of Silverjet, which operates a first class-only service from Luton airport.
"Our real aim is that we are targeting the premium end of the market," said Boyle, who confirmed that BA will operate the service in tandem with L'Avion, a French business class-only carrier.
BA also warned that negotiations on a second stage of the Open Skies treaty have been a damp squib so far. The European commission wants to build on the first agreement with the lifting of ownership restrictions for EU and US carriers. Currently, an EU carrier can own no more than 25% of a US airline, while a US airline's shareholding in a European counterpart is limited to 49%.
John Wood, BA's negotiator in the Open Skies talks, said: "The US team does not necessarily subscribe to the ambition of a full open aviation area." He added that the first stage of the treaty gave the US carriers everything they wanted, including access to Heathrow airport, and very little to EU airlines.
"We were disappointed that the EU did not get a better deal and we did not find it edifying that both sides are celebrating a 'magnificent' achievement," he said. However, Wood said he was "optimistic" that a deal can be done on ownership following the establishment of the Transatlantic Economic Council, a joint EU-US body that is expected to put pressure on the US to loosen shareholding guidelines.
Source: guardian.co.uk
The Paris-to-New York service will begin flying on June 19 with the threat of crippling industrial action still hanging over its owner.
BA pilots voted overwhelmingly to strike over the new carrier, which they claim is a stalking horse for imposing worse terms and conditions. The British Airline Pilots' Association (Balpa) had appealed to the high court to rule on whether any industrial action was legal - but today dropped the claim. A lawyer for Balpa said it would be "out of its mind" to pursue industrial action.
The airline is BA's riposte to the competitive threat posed by a treaty liberalising transatlantic air travel, also called Open Skies, which allows any EU-based carrier to fly to the US and vice-versa.
OpenSkies officially opened for business this morning by offering tickets on the first Paris Orly to New York JFK flights. It will offer business class flatbed seats at $1,700 (£862) for a one-way journey, with premium economy costing $700 and economy costing $500.
Robert Boyle, BA's commercial director, said OpenSkies, which will fly one plane decorated with BA livery, is a genuine departure from other BA services, starting with the fact that under the old transatlantic flight agreements BA was barred from operating US flights from continental Europe.
The 82-seater Boeing 757 plane will also have a new cabin layout, with the long-term possibility of turning the subsidiary into a business class-only carrier to rival the likes of Silverjet, which operates a first class-only service from Luton airport.
"Our real aim is that we are targeting the premium end of the market," said Boyle, who confirmed that BA will operate the service in tandem with L'Avion, a French business class-only carrier.
BA also warned that negotiations on a second stage of the Open Skies treaty have been a damp squib so far. The European commission wants to build on the first agreement with the lifting of ownership restrictions for EU and US carriers. Currently, an EU carrier can own no more than 25% of a US airline, while a US airline's shareholding in a European counterpart is limited to 49%.
John Wood, BA's negotiator in the Open Skies talks, said: "The US team does not necessarily subscribe to the ambition of a full open aviation area." He added that the first stage of the treaty gave the US carriers everything they wanted, including access to Heathrow airport, and very little to EU airlines.
"We were disappointed that the EU did not get a better deal and we did not find it edifying that both sides are celebrating a 'magnificent' achievement," he said. However, Wood said he was "optimistic" that a deal can be done on ownership following the establishment of the Transatlantic Economic Council, a joint EU-US body that is expected to put pressure on the US to loosen shareholding guidelines.
Source: guardian.co.uk
Labels: British Airways, l'avion, open skies deal, OpenSkies
Friday, May 23, 2008
Passenger planes on go-slow over fuel
Qantas and Jetstar planes have slowed their flying speed in a bid to beat soaring jet fuel costs.
Jetstar has been flying more slowly since last month to conserve fuel, adding several minutes to flights, News Ltd reported on Friday.
A spokesman for Qantas, which owns Jetstar, confirmed its planes had been using variable speed to cut fuel consumption for the past two years.
A Virgin Blue spokeswoman said while it had not altered cruising speeds it was considering slowing its planes during descent.
Jetstar spokesman Simon Westaway said fuel prices had risen by 68 per cent in the past 12 months.
"The challenge for airlines is that fuel costs are at record levels," he told News Ltd.
"We have been conducting a trial where aircraft flights are taking a bit longer and burning less fuel.
"Early indications are that we are seeing positive savings in terms of fuel."
The practice, already used in the US, is expected to save airlines millions of dollars and reduce the upward pressure on airfares.
Qantas on Thursday announced it would increase its international fares by four per cent and domestic fares by three per cent from June 4 on the back of soaring world oil prices, which also forced petrol prices beyond $1.60 this week.
Source: au.news.yahoo.com
Jetstar has been flying more slowly since last month to conserve fuel, adding several minutes to flights, News Ltd reported on Friday.
A spokesman for Qantas, which owns Jetstar, confirmed its planes had been using variable speed to cut fuel consumption for the past two years.
A Virgin Blue spokeswoman said while it had not altered cruising speeds it was considering slowing its planes during descent.
Jetstar spokesman Simon Westaway said fuel prices had risen by 68 per cent in the past 12 months.
"The challenge for airlines is that fuel costs are at record levels," he told News Ltd.
"We have been conducting a trial where aircraft flights are taking a bit longer and burning less fuel.
"Early indications are that we are seeing positive savings in terms of fuel."
The practice, already used in the US, is expected to save airlines millions of dollars and reduce the upward pressure on airfares.
Qantas on Thursday announced it would increase its international fares by four per cent and domestic fares by three per cent from June 4 on the back of soaring world oil prices, which also forced petrol prices beyond $1.60 this week.
Source: au.news.yahoo.com
Flight delays cost $41B in 2007 - study
Domestic flight delays cost the industry and passengers $40.7 billion in 2007, according to the Joint Economic Committee from the House and Senate, which released a report Thursday.
As part of this overall cost from the delays, passengers lost an estimated $12 billion worth of time that would otherwise have been spent on business and play, said the committee report.
These late flights cost airlines $19.1 billion in extra staffing, fuel and maintenance costs - mainly from planes idling at the gate but also from taxiing delays and from circling airports in holding patterns, according to the report.
The cost to airlines includes $1.6 billion in fuel costs, as idling planes wasted 740 million gallons of jet fuel, the report said, releasing more than seven million metric tons of carbon dioxide into the air. This was based on the 2007 average wholesale fuel cost of $2.15 per gallon.
The committee also said that delays caused $9.6 billion in "spillover costs" to other industries that rely on air traffic, like restaurants, hotels, retailers and public transportation.
The calculations from the Air Transport Association, a trade group that represents the airline industry, are significantly different. ATA spokesman David Castelveter said that delays cost the industry $8.1 billion last year, which is less than half of the $19 billion estimate from the Joint Economic Committee. Castelveter said the industry cost is expected to rise to $10 billion this year. He said that he doesn't exactly know how the committee arrived at its calculation, so he doesn't know why the number is different.
The committee study, based on an analysis of 10 million domestic flights, said more than 20% of all flight time last year was wasted on delays. It said most delays were caused by other flights arriving late.
While some delays are "unavoidable" because of weather and mechanical problems, "the staggering levels of delays experienced in 2007 and the significant costs these delays had on the U.S. economy are troublesome," read a statement from the bipartisan committee, chaired by Sen. Charles Schumer, D-NY.
The report is the latest bit of bad news for a battered industry, whose top players include Delta Air Lines (DAL, Fortune 500), United Airlines (UAL) and American Airlines (AMR, Fortune 500). Carriers have have been raising ticket prices and attaching fees to basic services to try and minimize losses, and Delta and Northwest Airlines (NWA, Fortune 500) are working on a potential $3.1 billion merger.
Some of the nation's busiest airports caused the biggest drag on air travel, said the committee, with Atlanta Hartsfield-Jackson International accounting for nearly 19 million delayed passenger hours, with nearly 18 million hours for Chicago O'Hare International and more than 12 million hours for Dallas-Fort Worth International.
From a passenger perspective, the worst offender was the comparatively tiny New Castle County Airport in Delaware, which averaged 55 minutes of delay per passenger in 2007, compared to 16 minutes per passenger at the Atlanta airport. By this measure, the best airport was Honolulu International, with an average of five minutes delay for passenger.
The committee said traffic will only get more crowded, putting further strains on the industry. The report said that flight volume is up 43% since 1998, and is projected to keep increasing 2.7% annually, from 689 million passengers currently, to more than 1.1 billion in 2025.
The report blamed "seven long years of laissez-faire government policies," including a failure to convert the nationwide radar system for aviation tracking to a system based on satellites. The committee said that congestion could be alleviated by opening military air space off the eastern seaboard for commercial traffic.
"Opening up a portion of this underutilized space would allow commercial airlines to avoid congested areas over New York City, Washington, Atlanta and Florida or bypass bad weather when it arises on the east coast, thus significantly reducing delays," said the report.
But if anyone's to blame for delays, it's Congress, according to Michael Derchin, an airline industry analyst for FTN Midwest Securities Corp.
"They've not funded the [Federal Aviation Administration] and the air traffic control system, which is using 1960s technology," he said. "The fix is to get the air traffic control system fixed. It's now at a point where it's a crisis, and now Congress is blaming everyone else, and they're the ones who started it to begin with."
Castelveter, the ATA spokesman, said the Department of Defense agreed to open some military airspace to relieve congestion in the New York and New Jersey region for the Memorial Day weekend. But for the long term, he said the government must update the air traffic control system from radar to satellite to cut down on delays.
"It's the equivalent of using an electric typewriter, when others are using computers, Treos and Blackberries," he said.
Source: money.cnn.com
As part of this overall cost from the delays, passengers lost an estimated $12 billion worth of time that would otherwise have been spent on business and play, said the committee report.
These late flights cost airlines $19.1 billion in extra staffing, fuel and maintenance costs - mainly from planes idling at the gate but also from taxiing delays and from circling airports in holding patterns, according to the report.
The cost to airlines includes $1.6 billion in fuel costs, as idling planes wasted 740 million gallons of jet fuel, the report said, releasing more than seven million metric tons of carbon dioxide into the air. This was based on the 2007 average wholesale fuel cost of $2.15 per gallon.
The committee also said that delays caused $9.6 billion in "spillover costs" to other industries that rely on air traffic, like restaurants, hotels, retailers and public transportation.
The calculations from the Air Transport Association, a trade group that represents the airline industry, are significantly different. ATA spokesman David Castelveter said that delays cost the industry $8.1 billion last year, which is less than half of the $19 billion estimate from the Joint Economic Committee. Castelveter said the industry cost is expected to rise to $10 billion this year. He said that he doesn't exactly know how the committee arrived at its calculation, so he doesn't know why the number is different.
The committee study, based on an analysis of 10 million domestic flights, said more than 20% of all flight time last year was wasted on delays. It said most delays were caused by other flights arriving late.
While some delays are "unavoidable" because of weather and mechanical problems, "the staggering levels of delays experienced in 2007 and the significant costs these delays had on the U.S. economy are troublesome," read a statement from the bipartisan committee, chaired by Sen. Charles Schumer, D-NY.
The report is the latest bit of bad news for a battered industry, whose top players include Delta Air Lines (DAL, Fortune 500), United Airlines (UAL) and American Airlines (AMR, Fortune 500). Carriers have have been raising ticket prices and attaching fees to basic services to try and minimize losses, and Delta and Northwest Airlines (NWA, Fortune 500) are working on a potential $3.1 billion merger.
Some of the nation's busiest airports caused the biggest drag on air travel, said the committee, with Atlanta Hartsfield-Jackson International accounting for nearly 19 million delayed passenger hours, with nearly 18 million hours for Chicago O'Hare International and more than 12 million hours for Dallas-Fort Worth International.
From a passenger perspective, the worst offender was the comparatively tiny New Castle County Airport in Delaware, which averaged 55 minutes of delay per passenger in 2007, compared to 16 minutes per passenger at the Atlanta airport. By this measure, the best airport was Honolulu International, with an average of five minutes delay for passenger.
The committee said traffic will only get more crowded, putting further strains on the industry. The report said that flight volume is up 43% since 1998, and is projected to keep increasing 2.7% annually, from 689 million passengers currently, to more than 1.1 billion in 2025.
The report blamed "seven long years of laissez-faire government policies," including a failure to convert the nationwide radar system for aviation tracking to a system based on satellites. The committee said that congestion could be alleviated by opening military air space off the eastern seaboard for commercial traffic.
"Opening up a portion of this underutilized space would allow commercial airlines to avoid congested areas over New York City, Washington, Atlanta and Florida or bypass bad weather when it arises on the east coast, thus significantly reducing delays," said the report.
But if anyone's to blame for delays, it's Congress, according to Michael Derchin, an airline industry analyst for FTN Midwest Securities Corp.
"They've not funded the [Federal Aviation Administration] and the air traffic control system, which is using 1960s technology," he said. "The fix is to get the air traffic control system fixed. It's now at a point where it's a crisis, and now Congress is blaming everyone else, and they're the ones who started it to begin with."
Castelveter, the ATA spokesman, said the Department of Defense agreed to open some military airspace to relieve congestion in the New York and New Jersey region for the Memorial Day weekend. But for the long term, he said the government must update the air traffic control system from radar to satellite to cut down on delays.
"It's the equivalent of using an electric typewriter, when others are using computers, Treos and Blackberries," he said.
Source: money.cnn.com
Labels: delayed flights, US
Air France feels pinch as oil prices hit home
Air France-KLM said Thursday it expects the coming year to be "challenging" amid sharply higher oil prices and a sluggish global economy which contributed to a net loss in its fourth quarter.
Europe's largest airline said in a statement it lost $853.81 million in the three months ending March 31.
CEO Jean-Cyril Spinetta said the group expected operating profit for the coming fiscal year to fall as skyrocketing fuel costs clouded the outlook for the industry.
Oil prices were setting new records nearly every day, and on Thursday hit a record above $135 a barrel before falling back.
For the full year, Air France-KLM reported a 16 percent drop in net profit to $1.2 billion.
Shares fell 10.2 percent to $26.37 in Paris morning trade. ABN Amro said the full year net profit was "well below" its forecasts.
The airline group booked an exceptional charge in the quarter of $834 million to cover possible penalties arising from an anti-trust probe into airline cargo activities.
Air France-KLM said it had an operating loss -- a measure of earnings from ongoing operations -- of $72.46 million in the quarter. In the full year, operating profit rose 13.3 percent to $2.21 billion.
The Franco-Dutch group said was targeting an operating profit of $1.58 billion in the coming year.
Spinetta said the soaring cost of fuel meant the industry was in for a "profound transformation," predicting capacity reductions, the acceleration of mergers and the exit of some players from the market.
Given its young fleet of fuel-efficient aircraft, a hedging policy which softens the impact of higher oil prices, and synergies from the merger of Air France and KLM, he said the airline group was well-placed to weather the storm.
"We have strong qualities to come out of this reinforced," he said at a Paris news conference.
To compensate for higher oil prices, some airlines raised ticket prices again last week. Air France, which operates separately from its Dutch partner KLM, announced its 17th oil price linked hike, bringing the total fuel surcharge for passengers to $156 for a one way long haul flight.
Airlines paying about 82 percent more for jet fuel than they did a year ago have preferred to cope by raising fares and charging for extra bags and other amenities.
American Airlines on Wednesday announced drastic measures to cope with record high fuel prices including layoffs.
Air France-KLM recently broke off merger talks with struggling Italian airline Alitalia, and CFO Philippe Calavia said the Italian carrier's situation "is much more difficult today than it was two months ago."
Air France-KLM said its yearly fuel bill rose 7.4 percent to $7.2 billion. In the coming fiscal year, Calavia said he expected the fuel bill to rise by an extra $1.89 billion.
Source: cnn.com
Europe's largest airline said in a statement it lost $853.81 million in the three months ending March 31.
CEO Jean-Cyril Spinetta said the group expected operating profit for the coming fiscal year to fall as skyrocketing fuel costs clouded the outlook for the industry.
Oil prices were setting new records nearly every day, and on Thursday hit a record above $135 a barrel before falling back.
For the full year, Air France-KLM reported a 16 percent drop in net profit to $1.2 billion.
Shares fell 10.2 percent to $26.37 in Paris morning trade. ABN Amro said the full year net profit was "well below" its forecasts.
The airline group booked an exceptional charge in the quarter of $834 million to cover possible penalties arising from an anti-trust probe into airline cargo activities.
Air France-KLM said it had an operating loss -- a measure of earnings from ongoing operations -- of $72.46 million in the quarter. In the full year, operating profit rose 13.3 percent to $2.21 billion.
The Franco-Dutch group said was targeting an operating profit of $1.58 billion in the coming year.
Spinetta said the soaring cost of fuel meant the industry was in for a "profound transformation," predicting capacity reductions, the acceleration of mergers and the exit of some players from the market.
Given its young fleet of fuel-efficient aircraft, a hedging policy which softens the impact of higher oil prices, and synergies from the merger of Air France and KLM, he said the airline group was well-placed to weather the storm.
"We have strong qualities to come out of this reinforced," he said at a Paris news conference.
To compensate for higher oil prices, some airlines raised ticket prices again last week. Air France, which operates separately from its Dutch partner KLM, announced its 17th oil price linked hike, bringing the total fuel surcharge for passengers to $156 for a one way long haul flight.
Airlines paying about 82 percent more for jet fuel than they did a year ago have preferred to cope by raising fares and charging for extra bags and other amenities.
American Airlines on Wednesday announced drastic measures to cope with record high fuel prices including layoffs.
Air France-KLM recently broke off merger talks with struggling Italian airline Alitalia, and CFO Philippe Calavia said the Italian carrier's situation "is much more difficult today than it was two months ago."
Air France-KLM said its yearly fuel bill rose 7.4 percent to $7.2 billion. In the coming fiscal year, Calavia said he expected the fuel bill to rise by an extra $1.89 billion.
Source: cnn.com
Labels: Air France-KLM, fuel
Thursday, May 22, 2008
American Airlines to cut flights, jobs as oil prices spike
American Airlines says it will cut domestic flights significantly, shed workers and raise some fees charged to passengers as it battles to offset rocketing crude oil prices.
The largest US carrier said today it planned to slash its domestic flight capacity by up to 12% during the fourth quarter of the year and to retire at least 75 aircraft in the face of rising jet fuel costs.
theage.com.au
The largest US carrier said today it planned to slash its domestic flight capacity by up to 12% during the fourth quarter of the year and to retire at least 75 aircraft in the face of rising jet fuel costs.
theage.com.au
Labels: american airlines
Tuesday, May 20, 2008
Jet, Air Deccan, JetLite likely to fly Dubai soon
Currently, only Air India operates between India and Dubai.
New Delhi, May 18 The proposal of Jet Airways, JetLite and Air Deccan to operate flights to Dubai is likely to get the official nod soon.
Official sources told Business Line that with an increase in the number of seats on offer between India and Dubai, the requests of all the airlines for rights to operate are likely to be cleared.
Bilateral rights between the two countries were recently exchanged in sufficient numbers, paving the way for all the private airlines seeking to operate on this route.
Currently, only Air India operates between India and Dubai.
The airlines are likely to be permitted to fly to Dubai as per the schedules they had filed.
Hence, some flights will start almost immediately while others will follow during the winter schedule this October, followed by increase in frequency during the summer schedule in March next year.
Await final nod
The final clearance is pending with the “highest competent” authority, sources added.
It is only after the Ministry of Civil Aviation gives the final clearance that the airlines would be allowed to operate.
The airlines will, however, have to meet the operational requirements laid down by the Directorate General of Civil Aviation (DGCA) before receiving clearance to fly to Dubai.
Flight plans
While Jet Airways has sought permission to operate 56 weekly services including a daily service from Delhi, Mumbai and Chennai by July this year, it also sought permission to increase the frequency of the Mumbai flight to two times a day daily from October next year.
It also plans to start a daily flight from Thiruvananthapuram, Kochi and Bangalore from October next year.
The low-cost airline Air Deccan, which plans to operate 70 weekly flights to Dubai, has sought permission to launch a twice-a-day flight from Mumbai from summer this year.
In addition, it plans a daily service from Delhi, Bangalore, Hyderabad and Kochi.
The airline also plans a daily flight from Chennai, Goa, Mangalore and Pune during the winter schedule 2008.
JetLite has sought permission to operate 28 weekly flightsfrom Jaipur, Amritsar, Hyderabad and Nagpur.
Source: thehindubusinessline.com
New Delhi, May 18 The proposal of Jet Airways, JetLite and Air Deccan to operate flights to Dubai is likely to get the official nod soon.
Official sources told Business Line that with an increase in the number of seats on offer between India and Dubai, the requests of all the airlines for rights to operate are likely to be cleared.
Bilateral rights between the two countries were recently exchanged in sufficient numbers, paving the way for all the private airlines seeking to operate on this route.
Currently, only Air India operates between India and Dubai.
The airlines are likely to be permitted to fly to Dubai as per the schedules they had filed.
Hence, some flights will start almost immediately while others will follow during the winter schedule this October, followed by increase in frequency during the summer schedule in March next year.
Await final nod
The final clearance is pending with the “highest competent” authority, sources added.
It is only after the Ministry of Civil Aviation gives the final clearance that the airlines would be allowed to operate.
The airlines will, however, have to meet the operational requirements laid down by the Directorate General of Civil Aviation (DGCA) before receiving clearance to fly to Dubai.
Flight plans
While Jet Airways has sought permission to operate 56 weekly services including a daily service from Delhi, Mumbai and Chennai by July this year, it also sought permission to increase the frequency of the Mumbai flight to two times a day daily from October next year.
It also plans to start a daily flight from Thiruvananthapuram, Kochi and Bangalore from October next year.
The low-cost airline Air Deccan, which plans to operate 70 weekly flights to Dubai, has sought permission to launch a twice-a-day flight from Mumbai from summer this year.
In addition, it plans a daily service from Delhi, Bangalore, Hyderabad and Kochi.
The airline also plans a daily flight from Chennai, Goa, Mangalore and Pune during the winter schedule 2008.
JetLite has sought permission to operate 28 weekly flightsfrom Jaipur, Amritsar, Hyderabad and Nagpur.
Source: thehindubusinessline.com
Labels: Air Deccan, dubai, India, Jet Airways, jetlite
Monday, May 19, 2008
British Airways will ground part of its fleet over rising fuel cost
British Airways plans to ground part of its fleet from October to cut costs and stem potential losses caused by the crippling price of fuel.
Confirmation of the move, from chief executive Willie Walsh, comes as analysts warn BA may only break even or worse for the next two years, despite having reported one of its best year's trading last week.
The sudden reversal has been caused by rapidly rising fuel prices - jet fuel went through the $1,300 a tonne mark last week - and sluggish demand.
BA has already selectively slashed fares across the Atlantic, offering returns to New York for £249, a base fare of £30 once taxes and fuel surcharges are stripped out. "It is a bloodbath," said one industry executive.
Scheduled airlines rarely ground aircraft, preferring to keep their expensive fleets in the air, although Ryanair has kept planes on the ground during slack periods. Walsh said: "You should certainly expect us to do that this winter."
The airline would park its oldest, least fuel-efficient aircraft. Walsh said this would be likely to include its older Boeing 747s, 767s and 737s.
BA last week reported strong annual results for 2007-8, hitting its long-held goal of a 10% profit margin, paying staff £35m in bonuses and the first dividend in seven years.
Walsh did not take his £700,000 bonus, saying it was not appropriate in the wake of the chaotic opening of Heathrow's terminal 5.
The fall-out from the T5 debacle will dent BA's figures this year. The company has guided analysts to expect a hit of a further £40m-£50m on top of the £18m in the last financial year.
Half of the hit would be in extra costs, half in lost revenue. Walsh told analysts that T5 was working smoothly, although the moves of additional flights to the terminal would still be later than first planned.
Fuel will be the biggest headache for BA. If oil continues at $120 a barrel, BA's profits could be wiped out this year. Chris Avery, analyst at JP Morgan, said that if oil remained above $110 a barrel, "investors need to be very conscious that BA could make a loss for one or both of the next two years".
BA is hoping tough times will help it take the lead in industry consolidation. Walsh said that he had resumed negotiations with American Airlines and Continental Airlines of the US with the aim of creating a transatlantic alliance.
Previous attempts have been rebuffed by American regulators, but Walsh said he was hopeful the difficult trading environment would clear the way for a deal. Pilots begin a legal challenge to BA's plans to start an "airline within an airline" tomorrow. The company wants to start flights between Paris and New York next month with a new subsidiary called Open Skies.
The British Airline Pilots Association does not oppose the services, but is against the planned use of flight crews from outside the main BA pilot group.
Pilots voted in favour of striking over the issue earlier this year, but they have put the action on hold pending this week's High Court challenge.
Confirmation of the move, from chief executive Willie Walsh, comes as analysts warn BA may only break even or worse for the next two years, despite having reported one of its best year's trading last week.
The sudden reversal has been caused by rapidly rising fuel prices - jet fuel went through the $1,300 a tonne mark last week - and sluggish demand.
BA has already selectively slashed fares across the Atlantic, offering returns to New York for £249, a base fare of £30 once taxes and fuel surcharges are stripped out. "It is a bloodbath," said one industry executive.
Scheduled airlines rarely ground aircraft, preferring to keep their expensive fleets in the air, although Ryanair has kept planes on the ground during slack periods. Walsh said: "You should certainly expect us to do that this winter."
The airline would park its oldest, least fuel-efficient aircraft. Walsh said this would be likely to include its older Boeing 747s, 767s and 737s.
BA last week reported strong annual results for 2007-8, hitting its long-held goal of a 10% profit margin, paying staff £35m in bonuses and the first dividend in seven years.
Walsh did not take his £700,000 bonus, saying it was not appropriate in the wake of the chaotic opening of Heathrow's terminal 5.
The fall-out from the T5 debacle will dent BA's figures this year. The company has guided analysts to expect a hit of a further £40m-£50m on top of the £18m in the last financial year.
Half of the hit would be in extra costs, half in lost revenue. Walsh told analysts that T5 was working smoothly, although the moves of additional flights to the terminal would still be later than first planned.
Fuel will be the biggest headache for BA. If oil continues at $120 a barrel, BA's profits could be wiped out this year. Chris Avery, analyst at JP Morgan, said that if oil remained above $110 a barrel, "investors need to be very conscious that BA could make a loss for one or both of the next two years".
BA is hoping tough times will help it take the lead in industry consolidation. Walsh said that he had resumed negotiations with American Airlines and Continental Airlines of the US with the aim of creating a transatlantic alliance.
Previous attempts have been rebuffed by American regulators, but Walsh said he was hopeful the difficult trading environment would clear the way for a deal. Pilots begin a legal challenge to BA's plans to start an "airline within an airline" tomorrow. The company wants to start flights between Paris and New York next month with a new subsidiary called Open Skies.
The British Airline Pilots Association does not oppose the services, but is against the planned use of flight crews from outside the main BA pilot group.
Pilots voted in favour of striking over the issue earlier this year, but they have put the action on hold pending this week's High Court challenge.
Labels: British Airways, fuel
Ethiopian Airlines says profits may hit record high
Ethiopian Airlines net profits for the first nine months of 2007/08 reached 484 million birr, the airline said in a statement late on Friday.
The state-owned carrier posted net profits of 129 million birr in 2006/07. The statement predicted that, based on the first nine months of 2007/08, the airline would achieve a record net profits and revenues.
Expenses for the same period rose by 21 percent, the brunt of which Chief Executive Girma Wake said was spent on fuel.
"Fuel price remains of concern to the industry as a whole and Ethiopian believes that costs will continue to escalate into the next quarter given the present trend in price of fuel," Wake said.
Revenues for the period rose 29 percent to 6.6 million birr, he said. The airline transported 1.9 million passengers, a 19 percent increase on last year.
Wake said the improvements in revenue and traffic were due to increased frequency of flights, the introduction of new routes and an increase in cargo revenue.
Source: africa.reuters.com
The state-owned carrier posted net profits of 129 million birr in 2006/07. The statement predicted that, based on the first nine months of 2007/08, the airline would achieve a record net profits and revenues.
Expenses for the same period rose by 21 percent, the brunt of which Chief Executive Girma Wake said was spent on fuel.
"Fuel price remains of concern to the industry as a whole and Ethiopian believes that costs will continue to escalate into the next quarter given the present trend in price of fuel," Wake said.
Revenues for the period rose 29 percent to 6.6 million birr, he said. The airline transported 1.9 million passengers, a 19 percent increase on last year.
Wake said the improvements in revenue and traffic were due to increased frequency of flights, the introduction of new routes and an increase in cargo revenue.
Source: africa.reuters.com
Labels: ethiopian airlines, fuel, profit
Sunday, May 18, 2008
New York airport slots to be auctioned
Slots for taking off and landing at New York-area airports will be auctioned to increase competition and reduce air travel delays that ripple through the country, the Transportation Department said Friday.
Airlines quickly opposed the planned auctions, calling them an experiment with dubious legal authority that will raise prices for passengers while doing nothing to ease congestion.
The changes are likely to affect airlines with large operations at JFK such as Atlanta-based Delta and New York's JetBlue, which frequently flies to Florida.
The Transportation Department also said airlines and the government must do better when dealing with maintenance and safety to avoid disruptions.
Last month, wiring inspections grounded MD-80 planes from American Airlines and other carriers, stranding hundreds of thousands of travelers.
The department also said it will require airlines and travel agents to disclose fees for checking a second bag before people buy tickets. Airlines, financially battered by rising fuel costs, have been raising fares and adding fees.
The auctions involve some slots at John F. Kennedy International Airport and Newark Liberty International Airport in New Jersey. Similar changes were announced last month for New York's LaGuardia Airport.
The three airports had the worst on-time records last year and are the source of much of the nation's snarled air traffic.
In December, the Bush administration announced flight caps for the airports, forcing airlines to cut back during the busiest hours.
Transportation Secretary Mary Peters said Friday that the slot auction proposals are meant to "ensure that airport caps do not become an economic drain on the region or the rest of the country."
"We need a way to keep aviation competition alive," Peters said. "Our plan strikes a sound balance between protecting investments by incumbent carriers, ensuring that all airlines have the opportunity to fly to Newark and JFK, and improving service, choice and fares for travelers."
The Air Transport Association, representing the biggest U.S. airlines, called the auctions "ill-conceived and unlawful proposals" that won't reduce delays.
"This experiment will penalize the public," ATA President James May said. "Instead of focusing on modernizing and expanding the airspace infrastructure as the traveling and shipping public expects, the government seeks to curb that demand by making it more costly to fly."
Steve Gorman, Delta operations vice president, agreed, saying that enacting "costly and untested schemes like slot auctions fails to recognize substantial investments by U.S. carriers."
"Confiscating slots from U.S. carriers to award them to the highest bidder is likely to result in handing over significant service to financially stronger foreign flag carriers," he said.
The government proposal, expected to be final in 60 days after a comment period, calls for airlines at Newark and JFK to get up to 20 slots a day for the 10-year life of the rule.
At JFK, there are two options that could lead to up to 179 slots of the airport's 1,245 being auctioned over 10 years.
For five years, 10 percent of an airline's slots above the 20 slots a day would be auctioned, with the proceeds invested to improve regional capacity and reduce congestion. Alternately, airlines would auction 20 percent above the baseline and keep the proceeds.
At Newark, the government would auction 10 percent of slots above the baseline annually for the first five years and, unlike one JFK option, airlines could bid on their own slots. Over a decade, the auctions would involve 96 out of 1,219 slots.
Sen. Charles Schumer (D-N.Y.) called the auctions "nothing short of insanity."
Source: ajc.com
Airlines quickly opposed the planned auctions, calling them an experiment with dubious legal authority that will raise prices for passengers while doing nothing to ease congestion.
The changes are likely to affect airlines with large operations at JFK such as Atlanta-based Delta and New York's JetBlue, which frequently flies to Florida.
The Transportation Department also said airlines and the government must do better when dealing with maintenance and safety to avoid disruptions.
Last month, wiring inspections grounded MD-80 planes from American Airlines and other carriers, stranding hundreds of thousands of travelers.
The department also said it will require airlines and travel agents to disclose fees for checking a second bag before people buy tickets. Airlines, financially battered by rising fuel costs, have been raising fares and adding fees.
The auctions involve some slots at John F. Kennedy International Airport and Newark Liberty International Airport in New Jersey. Similar changes were announced last month for New York's LaGuardia Airport.
The three airports had the worst on-time records last year and are the source of much of the nation's snarled air traffic.
In December, the Bush administration announced flight caps for the airports, forcing airlines to cut back during the busiest hours.
Transportation Secretary Mary Peters said Friday that the slot auction proposals are meant to "ensure that airport caps do not become an economic drain on the region or the rest of the country."
"We need a way to keep aviation competition alive," Peters said. "Our plan strikes a sound balance between protecting investments by incumbent carriers, ensuring that all airlines have the opportunity to fly to Newark and JFK, and improving service, choice and fares for travelers."
The Air Transport Association, representing the biggest U.S. airlines, called the auctions "ill-conceived and unlawful proposals" that won't reduce delays.
"This experiment will penalize the public," ATA President James May said. "Instead of focusing on modernizing and expanding the airspace infrastructure as the traveling and shipping public expects, the government seeks to curb that demand by making it more costly to fly."
Steve Gorman, Delta operations vice president, agreed, saying that enacting "costly and untested schemes like slot auctions fails to recognize substantial investments by U.S. carriers."
"Confiscating slots from U.S. carriers to award them to the highest bidder is likely to result in handing over significant service to financially stronger foreign flag carriers," he said.
The government proposal, expected to be final in 60 days after a comment period, calls for airlines at Newark and JFK to get up to 20 slots a day for the 10-year life of the rule.
At JFK, there are two options that could lead to up to 179 slots of the airport's 1,245 being auctioned over 10 years.
For five years, 10 percent of an airline's slots above the 20 slots a day would be auctioned, with the proceeds invested to improve regional capacity and reduce congestion. Alternately, airlines would auction 20 percent above the baseline and keep the proceeds.
At Newark, the government would auction 10 percent of slots above the baseline annually for the first five years and, unlike one JFK option, airlines could bid on their own slots. Over a decade, the auctions would involve 96 out of 1,219 slots.
Sen. Charles Schumer (D-N.Y.) called the auctions "nothing short of insanity."
Source: ajc.com
Labels: New York
New 'OpenSkies' carrier cleared for takeoff
OpenSkies, a new transatlantic airline created by British Airways, said Friday it won approval from US regulators to launch flights between New York and Paris starting in June.
The carrier, which calls itself a "premium" airline and offers codesharing with French-based L'Avion, said it received approval from the US Department of Transportation (DOT).
It claims to be the first airline created on the basis of the US-European Union open-skies pact that allows carriers increased access to each other's markets.
"We are delighted to receive approval for take-off and sincerely appreciate the DOT's efficiency and careful consideration in reviewing our application," said Dale Moss, managing director of OpenSkies.
"As the first airline to be created as a result of the Open Skies agreement, this is a huge step forward as we work to make history and set a new industry standard across the Atlantic. We look forward to bringing travelers an intimate, personalized and premium travel experience between Paris and New York starting in just a few weeks."
The company said it will start taking bookings next week via its website www.flyopenskies.com or by phone, and through travel agents.
OpenSkies will use a Boeing 757 aircraft that is configured to allow the seats to fold into full beds in business class.
It plans to serve additional routes from European cities including Amsterdam, Brussels, Frankfurt and Milan to New York.
Source: afp.google.com
The carrier, which calls itself a "premium" airline and offers codesharing with French-based L'Avion, said it received approval from the US Department of Transportation (DOT).
It claims to be the first airline created on the basis of the US-European Union open-skies pact that allows carriers increased access to each other's markets.
"We are delighted to receive approval for take-off and sincerely appreciate the DOT's efficiency and careful consideration in reviewing our application," said Dale Moss, managing director of OpenSkies.
"As the first airline to be created as a result of the Open Skies agreement, this is a huge step forward as we work to make history and set a new industry standard across the Atlantic. We look forward to bringing travelers an intimate, personalized and premium travel experience between Paris and New York starting in just a few weeks."
The company said it will start taking bookings next week via its website www.flyopenskies.com or by phone, and through travel agents.
OpenSkies will use a Boeing 757 aircraft that is configured to allow the seats to fold into full beds in business class.
It plans to serve additional routes from European cities including Amsterdam, Brussels, Frankfurt and Milan to New York.
Source: afp.google.com
Labels: British Airways, New York, OpenSkies, Paris
Saturday, May 17, 2008
AirAsia claims unfair competition by Malaysian Airlines
Malaysia's transport minister says he will try to resolve a airfare war between the national carrier and budget airline AirAsia.
On Wednesday, Malaysian Airlines said it would give away fares weekly to 20 Asian destinations.
It prompted claims of unfair competition from AirAsia since the government subsidises some of the national carrier's international flights.
radioaustralia.net.au
On Wednesday, Malaysian Airlines said it would give away fares weekly to 20 Asian destinations.
It prompted claims of unfair competition from AirAsia since the government subsidises some of the national carrier's international flights.
radioaustralia.net.au
Labels: AirAsia, Malaysia, malaysia airlines
Antitrust review is the next step for Delta and NWA
In a Capitol Hill hearing Wednesday, friends and foes of a Delta-Northwest merger continued to press their cases. Experts say the Justice Department is unlikely to block the deal.
startribune.com
startribune.com
Labels: Delta, merger, Northwest Airlines
United Air Accidentally Drops $130 Fuel Surcharge
United Airlines said it accidentally dropped fuel surcharges of as much as $130 round trip on all of its domestic routes around midday today.
"It was a clerical error", spokeswoman Robin Urbanski said in a phone interview.
United won't be able to fix the glitch until the next fare distribution occurs at about 8 p.m. New York time, she said.
bloomberg.com
"It was a clerical error", spokeswoman Robin Urbanski said in a phone interview.
United won't be able to fix the glitch until the next fare distribution occurs at about 8 p.m. New York time, she said.
bloomberg.com
Labels: United Airlines
Wednesday, May 14, 2008
More superjumbo delays at Airbus
Aviation giant EADS has pushed back its delivery schedule for the Airbus A380 superjumbo after a review found it would take more time and resources than first thought to ramp up production, the European group said on Tuesday.
business.theage.com.au
business.theage.com.au
Labels: A380
Berlusconi vows to save Alitalia
Italian prime minister Silvio Berlusconi has insisted the country's national airline, Alitalia, will pull through its financial crisis.
news.bbc.co.uk
news.bbc.co.uk
Labels: Alitalia
Sunday, May 11, 2008
Silverjet plans new hub in UAE
Silverjet, the British business-class-only airline, said it is considering setting up a new hub in either Dubai or Abu Dhabi after receiving a $100 million cash injection from a UAE-based investor.
gulfnews.com
gulfnews.com
OpenSkies gets OK to launch from Paris Orly-New York JFK
OpenSkies, the new BA subsidiary which plans to operate flights from Europe direct to the US, has received clearance from Britain’s Civil Aviation Authority to take to the skies.
travel.timesonline.co.uk
travel.timesonline.co.uk
Labels: British Airways, New York, OpenSkies, Paris
Saturday, May 10, 2008
EuroManx goes into receivership
A Manx-based airline has gone into receivership following a rise in fuel prices and a fall in passenger numbers.
EuroManx, which was set up in 2002, claims a number of factors have proved to be "insurmountable obstacles" and as such, the firm has stopped all flights.
news.bbc.co.uk
EuroManx, which was set up in 2002, claims a number of factors have proved to be "insurmountable obstacles" and as such, the firm has stopped all flights.
news.bbc.co.uk
Labels: euromanx, receivership
Friday, May 09, 2008
Plane Flew to Paris With Missing Panel
American Airlines says the Federal Aviation Administration has asked for a report on a flight that flew from Dallas to Paris last month after a panel fell off the underside of the plane during takeoff.
abcnews.go.com
abcnews.go.com
Labels: american airlines, Paris
Wednesday, May 07, 2008
Lufthansa Would Look at Austrian Airlines If Offered
Deutsche Lufthansa AG, Europe's second biggest airline, said it would consider buying a stake in Austrian Airlines Group in the event an opportunity arises, though the carriers aren't in talks.
bloomberg.com
bloomberg.com
Labels: austrian airlines, lufthansa
