LAN plans low-cost carrier
Latin American airline group LAN plans to launch a new low-cost airline by the end of this year. A major catalyst for this move is GOL’s plan to start low-cost flights in September from Brazil to Santiago. LAN is also motivated by the expected launch of flights to Argentina by domestic rival Sky Airlines in October. LAN’s low-cost unit is likely to be an international variant of LAN Express, which operates within Chile.
Regional jets discouraged
The FAA plans to replace the slot system at New York City’s LaGuardia Airport with a scheme of “operating authorisations” that carriers would keep only if they gradually use larger aircraft. Attempting to discourage regional jets, which FAA says “under-utilise” the airport, the agency wants eventually to use auctions or congestion pricing at LaGuardia.
CanJet drops out
Halifax-based CanJet ended all scheduled services in September. With only 2% of the domestic market, CanJet had been falling farther behind its two rivals. Earlier this year it warned that its growth would slow due to high fuel costs and the decision by its flight crews to join unions, but it blames its collapse solely on capacity dumping by Air Canada and WestJet.
Delta & Northwest recalls
Delta Air Lines and Northwest Airlines have announced recalls of furloughed union members just a year after they filed for bankruptcy protection. Northwest says it needs all 1,131 of its laid-off flight attendants while Delta is bringing back some 200 flight attendants and 65 pilots, having recalled a similar number of pilots in June as it added routes. Each carrier has posted recent operating profits despite high reorganisation costs.
New base for Allegiant
US leisure carrier Allegiant Air has named St Petersburg-Clearwater as its third focus city after Las Vegas and Orlando Sanford. Allegiant, whose parent is planning a $100 million initial public offering, will base two Boeing MD-80s at St Petersburg from mid-November and initially operate low-frequency scheduled services to 12 small US cities.
Source: Airline Business
