Source : AP, March 09, 2010
United is seeing passenger revenue rise faster than the rest of the airline industry, with business travel and other high-end fares picking up. The carrier said Tuesday that January passenger revenue for each mile it flew rose 10.5%. That gain is three times bigger than the airline industry as a whole. CFO Kathryn Mikells says revenue from corporate travellers rose 13% in February. And sales of premium seats on international flights jumped 25% that month. Still, Mikells says it may take another year for demand to return to pre-recession levels. More

Source : AP, March 09, 2010
Continental plans to cancel flights rather than risk stiff fines under new federal rules designed to punish carriers for delaying passengers. CEO Jeff Smisek said Tuesday the result will be that passengers will have more trouble getting to their destinations. A spokesman for the US DoT said airlines can avoid fines by doing a better job of scheduling flights and crews. Under a rule taking effect next month, airlines can be fined up to US$27,500 per passenger if planes are delayed three hours and passengers can't get off. Smisek said that long delays are rare, and mostly caused by an outdated air traffic control system that the govt has failed to upgrade. Smisek said many passengers on delayed flights 'really want to go to LA or Mumbai, but the government by God says, 'We're going to fine you $27,500.' Here's what we're going to do: We're going to cancel the flight.' More

Source : Bloomberg, March 09, 2010
Continental, after calling off a merger with United two years ago, would resume consolidation efforts to remain competitive, CEO Jeff Smisek said. Continental will keep monitoring the progress of Delta following its 2008 merger with Northwest, he said Tuesday. Continental’s decision to avoid joining UAL Corp.’s United in April 2008 was correct at the time, he said. “We’ll continue to watch competitive dynamics,” Smisek said. “If we think it’s in our best interest to bulk up defensively, we’ll do so. But I think it’s premature to make that decision at this time.” “Continental is a prize that anybody would want, and it would be a very good fit for United,” said Ray Neidl, independent airline analyst. More

Source : Globe and Mail, March 09, 2010
After hearing about the United Arab Emirates' threat against a Canadian military base in the Persian Gulf, Calin Rovinescu decided he had finally had enough. The CEO of Air Canada unleashed a blistering verbal assault on Emirates Airline in Vancouver Tuesday, lambasting his rival's recent assertion that more flights to Canada from Dubai will spark C$480m of annual economic activity and 2,800 new jobs. In a speech, he called the numbers “the stuff of fairy tales” and “subterfuge.” Rovinescu said he was “troubled” that the UAE is trying to link more access for the Emirates Airline into Canadian airports to the extension of the lease on the Canadian military's Camp Mirage logistics base in the UAE. Rovinescu argued that while more competition looks good for customers, the long-term result would be “devastating” for the Canadian airline industry. He warned of fewer jobs, fewer cities served by direct connections to international destinations, and less economic activity. More

Source : AP, March 09, 2010
Delta, still smarting from its failed bid to lure JAL into a partnership, is talking to other carriers about expanding its global alliances, a senior executive said Tuesday without giving specifics. President Ed Bastian said that Delta still believes it can increase its international presence without JAL in its fold. 'While we were not the victor in the JAL sweepstakes, we are undeterred,' Bastian said. New York is a key focus for Delta as it seeks to expand domestically and internationally. Delta has a deal with US Airways to swap takeoff and landing slots at LaGuardia Airport, and it is encouraging officials to upgrade the facilities at JFK airport for its international flights. More

Source : AP, March 10, 2010
American Airlines' CFO admits his company and its pilots' union are 'far apart' on a new labour contract. American argues that its labour costs are higher than for its rivals. CFO Thomas Horton said Tuesday his company wants pilot costs to be 'competitive' with other airlines. 'It's fair to say we are far apart with the pilots' union,' Horton said. The pilots' union at one point proposed pay raises of more than 50% to restore their purchasing power to 1992 levels. The company rejected that proposal, and the two sides are currently in negotiations overseen by a federal mediator. American is also in mediator-led talks with its flight attendants and ground workers. More

Source : Gulf News Report, March 09, 2010
Emirates Monday said it will hire 2,000 more cabin crew to support its growth and operations this year. The airline has added 14 aircraft to its fleet since March last year, raising the number from 131 to 145. 'Around 660 cabin crew and more than 60 pilots have been recruited by the carrier since March 2009. It is expected that a further 2,000 cabin crew will be hired this year,' the airline said. The airline also said it has invested more than Dh266m in airport lounges. From 981 departures per week in March 2009, the airline is now despatching 1,107 passenger flights per week out of Dubai, supporting the new routes and additional frequencies on existing routes such as Johannesburg, Athens, Rome, Amman, Male, Trivandrum, Bangkok, Kuala Lumpur and Sydney. Overall seat capacity has risen by around 16%. More

Source : Financial Times, March 09, 2010
Aer Lingus announced Tuesday that it intends to make 230 compulsory redundancies among cabin crew after they rejected a E97m (GBP88m) cost-cutting plan. The airline said its latest plans included new working conditions and salary levels. CE Christoph Mueller said there would be no “sweetheart deals for cabin crew”. He indicated that the company would press ahead with the implementation of its restructuring plan for the four other union groups, all of which agreed to the airline’s proposal. Cabin crew, who are represented by the Impact union, rejected the restructuring plan in a ballot, while craft workers, pilots and clerical staff voted in favour. The plan envisaged 600 voluntary redundancies at the airline and 10% pay cuts across the board. More

Source : KITV.com, March 09, 2010
Hawaiian Airlines announced the purchase of an additional Airbus A330-200 scheduled for delivery in Q2 2011 to expand its service in Asia and other markets. “Good financial performance has positioned us well to seize the opportunities to grow our business. The A330 is the right aircraft for our customers and our bottom line and acquiring this additional aircraft will allow us to better capitalize on improving demand as the economic recovery gets underway,' said Hawaiian's president and CEO, Mark Dunkerly. The new aircraft will carry more passengers, fly farther, and be more fuel-efficient than the company’s existing wide-body fleet of B767s. More

Source : AP, March 09, 2010
US airlines had their best January in four years when it comes to arriving on time. The US DoT said Tuesday that the airlines averaged a 78.7% on-time arrival rate in January. Hawaiian Airlines, largely isolated from the sort of bad weather that plagues carriers on the mainland, held its usual spot atop the on-time rankings. Among the biggest airlines, United had the best record, with 84.4% of its flights arriving on-time, which the govt defines as being within 15 minutes of their scheduled arrival. The worst at arriving on time were regional carriers American Eagle, Comair and Pinnacle, all barely above 70%. The DoT also ranked Hawaiian best at baggage handling, with about two reports of lost, delayed or missing bags for every 1,000 passengers. Continental was tops among the largest six airlines. More

Source : Reuters, March 09, 2010
Demand for air travel among business customers is rising and major US airlines said Tuesday they would consider charging additional fees while cutting costs to increase their profits. Delta said business trends were improving. Unit revenue in March would be up 16%, the company said. United is 'clearly seeing signs of economic recovery and premium and corporate travellers returning,' UAL CFO Kathryn Mikells said. Traffic reports for the first two months of 2010 signal that demand is improving at major US airlines. Load factors were higher for the top six US carriers last month. American expects unit revenue to be up 6.5% to 7.5% in Q1. Southwest said March bookings were 'very strong' while rival AirTran cited 'rapid' improvement in yield trends. More

Source : Reuters, March 09, 2010
The Obama administration is weighing help for US airlines to meet the costs of modernising the air traffic control system, Transportation Secretary Ray LaHood said Tuesday. Airlines are pressuring the government not to saddle them with the bulk of expenses for the planned multibillion-dollar upgrade of the air traffic system to one relying on satellites rather than ground-based radar. LaHood told the annual FAA industry forecast conference that the White House was looking into the matter and should have something to say to them soon. 'The administration wants to be helpful to the airline industry,' LaHood said. LaHood did not offer any details, including how much the government might be willing to cover or defer, or how any assistance would be achieved. More

Source : AP, March 09, 2010
A lovesick graduate student from China who slipped under a rope barrier at Newark Liberty International Airport to say goodbye to his girlfriend, prompting a security breach and leading to worldwide flight delays, pleaded guilty to a misdemeanor charge Monday and apologised publicly for the first time. 'I want to deeply apologise to those (affected) for my breach,' Haisong Jiang said outside of court. 'I just wanted to spend more time with my girlfriend. I made a big mistake, and I also learned a big lesson.' Jiang, a 28-year-old doctoral student, admitted to a municipal judge that he passed under a rope and entered a restricted area at the airport on January 3 to spend about 20 extra minutes with his girlfriend, who was leaving for California after visiting him in New Jersey. As part of a plea agreement for the defiant trespassing charge, Jiang agreed to pay a $US500 ($A547) fine, plus additional court costs, and perform 100 hours of community service. More

Source : USA Today, March 09, 2010
Some steep discounts are available to air travellers in the next two days in what one industry analyst calls 'the first big summer fare sale' of the year. AirTran sparked the sale this week, with US Airways, United, Delta and American among the airlines following close behind, says Tom Parsons, founder of Bestfares.com. But travellers will have to act fast. Tickets have to be purchased by midnight Thursday for travel through Nov. 16. There are blackout dates around Memorial Day and other holidays. And travellers may have to do some digging to find the lowest fares, particularly in July, or when flying cross-country, Parsons says. 'We haven't had a 200-day sale in a long, long time,' he says, noting that the deals allow travel every day except Fridays and Sundays. 'It's Christmas in March as far as I'm concerned. And you'd better take the gift while you can.' More

Source : AP/NZ Herald, March 10, 2010
Boeing is putting its new 787 through an aggressive flight-testing schedule, with the fourth plane set to begin test flights Sunday. Boeing is aiming to deliver the plane to its first customer by the end of this year. By midyear it is aiming to fly six planes a total of 90 hours per week, Jim Albaugh, CE of Boeing's commercial airplane division, told analysts Tuesday. Albaugh said the testing so far has included more than 100 stalls, some practice with an engine off, and a dive that brought it to Mach .97, close to the speed of sound. He said the testing program got off to a slow start after the plane first flew in December. But there is one month to six weeks extra built into the testing schedule in case of other delays, he said. More