FAA predicts traffic surge
The FAA predicts that US carriers, already fighting delays that slow 20% of all flights, will confront a 31% surge in passenger traffic within eight years. Enplanements will grow by 4% this year to 768.4 million and pass 1 billion by 2015, the agency predicted at its annual forecast conference in mid-March. Warning that delays are likely to increase this year, FAA Administrator Marion Blakey insisted a new charging system is needed to handle growth.
WestJet ponders long haul
WestJet is looking at acquiring Boeing 787s. Sean Durfy, WestJet's president, predicts by 2010 WestJet will reach the limits of its potential growth with the Boeing 737s it now operates, meaning further growth will require longer-range jets and routes.
Zoom in UK-US spat
The dual citizenship of Zoom's principle owner is at the heart of a dispute over plans by start-up Zoom UK to launch scheduled flights between London Gatwick and New York JFK. Delta Air Lines is challenging whether Zoom UK is a UK-owned airline. Hugh Boyle, who holds dual Canadian-UK citizenship and chairs Ottawa-based Zoom, formed Zoom UK as a separate entity.
ACE gives up control of Jazz
In a big symbolic step toward its own dissolution, Air Canada's holding company ACE has surrendered majority control of regional carrier Jazz and Air Canada's loyalty plan by distributing shares in both to its own shareholders. As a result, ACE's stakes in Jazz and AeroPlan have dropped below 50%.
Midwest expands
Midwest Airlines is continuing an aggressive expansion with new and enhanced services to both the east and west coasts from its Milwaukee hub and its Kansas City mini-hub. The carrier is trying to fend off an unsolicited $345 million takeover bid by AirTran Airways, which has extended the deadline for its hostile buyout until mid-April.
LAN boosts Argentina stake
LAN now owns 70% of LAN Argentina following several capital contributions in which the Argentine shareholders did not participate. The increased capitalisation diluted their stakes in LAN Argentina from 51% to 30%. LAN's ability to take control of its affiliate follows relaxation by the Argentina government of foreign ownership caps on local airlines.
VivaAerobus looks north
Mexican low-cost carrier VivaAerobus aims to launch transborder services from several cities in Mexico to Texas. The carrier, which launched domestic services late last year, is currently negotiating with at least two airports in Texas and plans to select one soon. Airports in the southwest US expect several low-cost carriers to enter the transborder market, including Mexican start-ups and potentially Southwest Airlines, which has studied expansion south of the border. The market is now dominated by legacy carriers.
Source: Airline Business
