Airports win LAX battle
A law judge at the US Department of Transportation has concluded that Los Angeles International Airport "unjustly discriminated" in imposing higher fees on 29 domestic and international airlines. In a tentative ruling, the judge called the airport's financial reasoning "flawed" and ordered the fees to be returned with interest.
Midwest joins Northwest
Midwest Airlines signed in May a strategic codesharing pact with Northwest Airlines, its major rival at its Milwaukee base. Midwest is trying to fend off a $389 million hostile bid by AirTran Airways, which argues that it is vulnerable to competition at Milwaukee. AirTran in mid-May claimed its bid has secured support from 57% of Midwest shareholders.
Delta contracts Pinnacle
Delta Air Lines has enlisted Pinnacle Airlines and ExpressJet as new feeder partners. Pinnacle will fly 16 Bombardier CRJ900 regional jets that the Memphis-based carrier is buying as it moves away from its reliance on long-time partner Northwest Airlines. The deal with ExpressJet, which now operates mainly for Continental and in April launched its own scheduled unit, includes 18 Embraer ERJ-145s. Meanwhile, Delta decided to terminate from August the turboprop feeder service operated by Mesa Air Group at its New York JFK hub.
Skybus nears launch
US start-up Skybus Airlines planned to launch services by the end of May. It secured final US FAA certification in mid-May and will initially serve Burbank, California Kansas City, Missouri and Portsmouth, New Hampshire from its hub in Columbus, Ohio.
Maxjet plans IPO
New York-based all-premium carrier Maxjet Airways in May unveiled plans to float on the London Stock Exchange. Maxjet also unveiled plans to launch flights from London Stansted to Los Angeles in August as it expands its Boeing 767 fleet to seven aircraft. It already links Stansted with New York, Las Vegas and Washington. Maxjet will use the proceeds from the public offering to fund its expansion plans and retire certain debt obligations.
Pilots demand pay hike
Allied Pilots Association members at American Airlines requested in early May a 30.5% pay increase and a one-time bonus for signing a new contract. The union claims the airline can afford the pay hikes, pointing to the executive compensation awards it failed to persuade shareholders to jettison.
Source: Airline Business
