Lynx launches
Frontier Airlines in December finally won FAA approval to launch Lynx, its turboprop feeder unit. Lynx, which Frontier hoped to start last summer, is now operating from Denver to several secondary cities including Billings, Montana Wichita, Kansas Sioux City, Iowa and Rapid City, South Dakota.
UAL pays down debt
United Airlines parent UAL in December moved to clean up its balance sheet by paying down $500 million in debt. This is on top of the $2.7 billion in total net debt it has reduced since coming out of bankruptcy. The company will also make a special distribution of $250 million to its shareholders in early 2008. United officials said a strong operating cash flow made the payment possible, but union leaders denounced the move as short sighted.
Government To raise stake in Aerolineas
Just before its option expired, Argentina's government announced in late November it will boost its stake in Aerolineas Argentinas from 5% to 20%. The government and Spain's Grupo Marsans still must agree on a price, but the announcement sends a positive signal that may reverse what has been seen as a flagging interest in the Argentine carrier by its majority owner, Grupo Marsans.
US Pilot retirement age to increase
Congress has passed a measure to raise the mandatory retirement age for commercial airline pilots from 60 to 65. If the president signs the measure, pilots over 60 can fly for another five years but will face additional proficiency and medical tests.
Source: Airline Business
