Southwest returns to SFO
Southwest Airlines will resume services to San Francisco this autumn, six years after leaving. When it shifted its Bay Area focus in 2001 to the Oakland and San Jose international airports, Southwest said costs at San Francisco were excessive. But the airport has improved "operationally and is more cost-efficient". The move puts Southwest deeper into another United hub following its entry into Denver and Washington Dulles.
United refinances loan
United Airlines parent UAL has refinanced $2 billion of a $3 billion loan it had used to support its exit from bankruptcy last year. The carrier has refinanced the remaining $988 million of the debt at lower interest rates that should save it $70 million annually. UAL says the new loan releases some $2.5 billion of collateral, including 101 aircraft and spare parts inventory
Minneapolis gives incentives
Minneapolis/St Paul International Airport (MSP) has launched a 15-year $279 million incentive plan to give rebates to and share revenue with airlines. Northwest Airlines expects to save $239 million under the plan in return for a vow to keep its headquarters and a hub in the Twin Cities. The plan also includes lower rents for all carriers.
Stewart Airport's new owner
The owner of the three major New York City area airports, the Port Authority of New York and New Jersey, will take over Stewart Airport, some 60 miles north of Manhattan. The agency plans to position the relatively underused Stewart to alleviate congestion at LaGuardia, JFK and Newark airports. In May Delta Connection will become the sixth carrier serving Stewart.
Spirit introduces bag charge
Spirit Airlines became the first US carrier to charge passengers to check a second bag. While a first suitcase is free, a second bag will cost $10 to check in. US carriers made $426 million in excess baggage fees last year.
Iberia adds Boston
Boston Logan will enjoy nonstop flights to Madrid for the first time in 22 years when Iberia inaugurates five weekly nonstop frequencies in May.
Source: Airline Business
