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JetBlue reviewing expansion

15 June 2007

The new day-to-day leadership at JetBlue Airways Corp. is beginning to make itself felt, revealing to analysts that the low-cost carrier intends to take a new and a hard look at its expansion plans over the next two months in an effort to make a turnaround.

At a Merrill Lynch conference in Manhattan on Wednesday, JetBlue’s new chief executive, David Barger, told analysts that the Forest Hills-based carrier will evaluate the need for the airplanes it has already ordered and the 16 new markets it added last year. The company is aiming to create the best match it can between expansion and profitability, he said.

JetBlue posted a $22 million loss in the first quarter. The airline is expected next week to disclose preliminary information about its second quarter financial results.

Like all other airlines, JetBlue has been grappling with higher fuel costs. But JetBlue also is facing increased competition from legacy carriers who have shaped up their balance sheets and otherwise trimmed costs. Delta Air Lines, for example, a major JetBlue competitor on the heavily traveled East Coast routes, has recently emerged from Chapter 11 bankruptcy protection and is adding flights at Kennedy, JetBlue’s home base.


AirAsia targets India in 2008

14 June 2007

Malaysia’s home-grown budget carrier AirAsia Bhd plans to launch its first flight to India towards end of 2008 and its first destination is likely to be Amritsar in Punjab. “I am really limited by the planes and the earliest we can look at is the third quarter of 2008.

“‘I like Amritsar, many Sikhs have written to me but I need to know more about India. I only know about their music and cricket,'” AirAsia chief executive officer Datuk Tony Fernandes told reporters after speaking at the one-day Low Cost Airline Symposium in Mumbai here Wednesday.

AirAisa X, the long haul budget carrier of AirAsia, is being prepared to do longer destinations and the huge Indian aviation market, growing at 38 percent annually, appears to be on the company’s route.


Jet Airways to start service to Toronto, Newark

14 June 2007

Jet Airways is starting operations between Totonto and New Delhi via Brussels from Sep 5, and will fly to this city five times a week, the airline’s founder and chairman Naresh Goyal said.

The airline has also firmed up plans to start a service to Newark in New Jersey from Aug 5, Goyal said, adding that the fares to both these sectors would be competitive without compromising on the service.

”Canada was on our radar the minute we were allowed to fly internationally in January 2005. Canada-India trade is growing every day and so is travel between our two countries,” he said.


EasyJet’s green vision for the skies

14 June 2007

Budget airline easyJet say they have a new aircraft design which would emit half the carbon dioxide of today’s planes.

At the moment it’s only a model – but the budget airline easyJet claims that a revolutionary eco-friendly plane design could take to the skies in just eight years time.

source: Channel 4


Southwest CEO sees summer pricing under pressure

13 June 2007

Southwest Airlines Co. expects fare prices to be under pressure in the traditionally strong travel months of June and July, the low-cost carrier’s chief executive said on Wednesday.

“‘At this point, we’re experiencing the effects of the slowing economy and the softening demand for air travel,'” Gary Kelly said, speaking at a Merrill Lynch investor conference.

source: Reuters


Ryanair carries more international passengers than any other airline

13 June 2007

No-frills airline Ryanair Holdings carried more international passengers than any other airline last year, according to official figures.

Ryanair said the International Air Transport Association’s (IATA) world airline passenger statistics for 2006 showed 40,532,000 cross-border passengers flew with it during the year, nearly 2,300,000 more than its nearest rival, Deutsche Lufthansa AG, which carried 38,236,000 passengers.

source: Forbes


Southwest Airlines still competitive

11 June 2007

Never afraid to spurn conventional wisdom, Southwest Airlines is doing it again. While other airlines are reducing domestic seats in response to softening demand, the low-cost carrier is doing the opposite, expanding routes and flights in pursuit of a decades-long growth plan.

Already, the number of passengers on each Southwest aircraft has fallen. The jets are about 69 percent full on average this year, compared with 71 percent during the corresponding period in 2006.

Southwest has pursued a policy of adding flights, seats and planes to gain market share, even in tough times. While other carriers were reeling from a major economic downturn and slashing their fleets, Southwest has added 120 planes since 2002, bringing the total to 494. It also increased the number of flights by 15 percent and its available seat miles, an industry measure of capacity, by 35 percent from 2002 through the end of last year.

Southwest is considering getting into a code-sharing agreement with an international carrier or offering its own overseas flights.

source: Home & Away


Flyforbeans has 12 destinations on its radar

11 June 2007

FlyForBeans, the new budget airline to be based at Cardiff International Airport, plans to launch cut-price flights from the city to 12 European destinations.

The airline, which is based in the Vale of Glamorgan, predicts it will get nearly three quarters of a million passengers for the service which it hopes to launch out of Cardiff International this autumn.

source: icWales


Ryanair guarantees no fuel surcharges ever

11 June 2007

Ryanair, Europe’s largest low fares airline, has criticised British Airways for increasing its fuel surcharge to £43 – its 9th increase since May 2004. Ryanair continues to guarantee no fuel surcharges ever.

Speaking today Ryanair’s Head of Communications, Peter Sherrard said:

“‘This is British Airways’ 9th fuel surcharge since May 2004. In that time the price of oil has doubled but British Airways’ fuel surcharge has increased 17 fold’.

“‘Ryanair guarantees the lowest fares and will never apply a fuel surcharge, not now, not ever'”.

source: Easier


Continental partners with Gol to sell tickets in Brazil and South America

11 June 2007

Brazilian Airline Gol has just announced an agreement with US-based Continental Airlines whereby passengers flying with Continental will be able to purchase tickets on all routes served by Gol for connections in Brazil and South America. While the partnership covers all routes served by both airlines, only Continental will be able to sell tickets on Gol flights.

source: Brazzil Mag