In the News...
| LAWA to launch ad campaign to draw travelers to ONT |
June 5, 2013 |
Liset Marquez, Staff Writerdailybulletin.com
http://www.dailybulletin.com
ONTARIO -- A Los Angeles World Airports official on Tuesday declined to comment on a lawsuit filed Monday by Ontario, but instead said her agency is gearing up to launch a new advertising campaign to attract travelers to LA/Ontario International Airport.
Ontario filed a lawsuit Monday alleging that LAWA has neglected and mismanaged the airport, and seeking to regain control of ONT. The 25-page complaint aims to dissolve the 1967 agreement that gave control of the airport to Los Angeles.
On Tuesday, LAWA officials said they haven't reviewed the lawsuit and would not be able to discuss its contents.
"It has been our hope that instead of a divisive relationship, we would have a partnership with the city of Ontario, to the benefit of all," said Maria Tesoro-Fermin, spokeswoman for LAWA.
Her agency is working on a new advertising campaign with the slogan, "Together, the sky's the limit. Fly ONT!" she said.
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| Garcetti should restart negotiations over ONT transfer: Opinion |
June 4, 2013 |
Los Angeles News Group opinion staffdailynews.com
http://www.dailynews.com
Eric Garcetti, the incoming Los Angeles mayor, should step in quickly once his term begins to restart negotiations over L.A./Ontario International Airport.
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| After bump, passenger numbers slide back at Bob Hope Airport |
June 4, 2013 |
By Daniel Siegal, daniel.siegal@latimes.com
http://www.burbankleader.com
A month after a surprising uptick in the number of passengers traveling through Bob Hope Airport, the tally in April dipped by roughly 2.4%.
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| Editorial: SB County Has Sued Enough Public Agencies |
May 16, 2013 |
Inland Valley Daily Bulletin
http://www.dailybulletin.com/
It's difficult to get enthused about the County of San Bernardino joining any legal action against any fellow public agency. Even if it is in the cause of local control for the Ontario airport.
Local control of L.A./Ontario International Airport is the way to save the facility - which is so important to the Inland Empire's economy - from oblivion. Los Angeles World Airports, the agency of the city of Los Angeles that runs LAX and ONT, has let the local airport's fortunes decline so far and so fast that it looks almost deliberate - negligent, at the least.
Still, the prospect of this particular county taking legal action against yet another city is not a happy one. San Bernardino County has blown far too many taxpayer dollars on legal actions against cities and other taxpayer-funded entities. County residents are sick of transferring their hard-earned dollars to lawyers.
And the aim of this legal action is questionable in any case.
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| ONTARIO: MIT Study doesn’t Bode Well for Inland Airport |
May 15, 2013 |
Press Enterprise
http://blog.pe.com/
A new study from the Massachusetts Institute of Technology has bad news for Ontario International Airport.
Airlines are consolidating their service at major hubs and cutting back at small- and medium-sized airports like ONT, the MIT International Center for Air Transportation study says.
Pushed by rising fuel prices, airlines are focused on “capacity discipline”: flying fewer flights and making sure the planes are full.
Instead of adding flights to capture passengers from competitors, airlines are ratcheting down, said William Swelbar, one of the study’s authors.
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| Mid-size airports suffer biggest cuts in airline service |
May 13, 2013 |
| Mid-size airports lost an average of 26.2% of their flights from 2007 to 2012 because of airline mergers, a deep recession and surging fuel prices, study says. Airline departures dropped 24.8% from 2007 to 2012 at Bob Hope Airport in Burbank. |
By Hugo Martín, Los Angeles Times
http://www.latimes.com/business/la-fi-travel-briefcase-20130513,0,42.story
Airline mergers, a deep recession and surging fuel prices have led to sharp cuts in airline service around the country. Hardest hit: medium-size airports.
Bob Hope Airport in Burbank, John Wayne Airport in Santa Ana, LA/Ontario International Airport and other mid-size airports lost an average of 26.2% of their flights from 2007to 2012, according to a new study by Massachusetts Institute of Technology's International Center for Air Transportation.
The cuts are a result of airlines eliminating less-profitable routes and focusing on more popular, high-profit routes, the report said. Many airlines have also replaced multiple flights of small, 50-seat planes with one or two flights using larger, 76-seat planes, the report noted.
"The past six years have been challenging ones for domestic air service in the United States," according to the report by researchers Michael D. Wittman and William S. Swelbar. "Most airports have seen a reduction in scheduled domestic flights."
Large airports such as Los Angeles International Airport have lost 8.8% of their flights, while small airports such as Long Beach and Santa Barbara municipal airports lost 18.2% in the six-year period, the study found.
The biggest drop has been at mid-size airports such as Bob Hope Airport, where airline departures dropped 24.8% in the six-year period.
Bob Hope officials say they are trying to reverse the trend by holding down the cost for airlines to fly out of the airport. Those costs include landing fees and rental and leasing rates for airport facilities, said airport spokesman Victor Gill.
The airport also launched an incentive program in November to waive landing fees for all new flights to cities previously not served by the airport.
To draw more passengers, the airport is increasing its marketing efforts. For example, Gill said the airport recently signed a deal to make Bob Hope the official airport of the Rose Bowl for the next three years.
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| Smaller airports have fewer departures, seats as airlines shift focus toward profits |
May 10, 2013 |
The Massachusetts Institute of Technology study By Curtis Tate
http://www.miamiherald.com/2013/05/10/3391437/smaller-airports-have-fewer-departures.html
WASHINGTON -- Medium and small hub airports across the country have fewer flights and fewer seats than they did five years ago, according to a study released this week, but it wasn’t a struggling economy that caused it, according to aviation experts.
The declines were mainly the result of higher fuel prices, industry consolidation and a new focus on profitability over market share, experts said. And though cities of all sizes consider their airports engines of economic growth, many will find it hard to keep the service they have, much less attract new airlines.
Debby McElroy, executive vice president of policy at the Airports Council International-North America, an industry group, said airlines have become risk-averse. Most major carriers have been through bankruptcy. They endured a major terrorist attack and a major recession. In recent years, they’ve begun to enjoy stability and profits. “Airlines are not adding a lot of new aircraft or new services,” she said. “That strategy has proved successful for them.”
According to the Massachusetts Institute of Technology study, departures at medium hub airports declined 26 percent from 2007 to 2012, and the number of seats declined 21 percent. Small hubs fared only slightly better; departures declined 18 percent and seats declined 13.5 percent.
The trend coincides with the deepest economic downturn in decades, a real estate-fueled crisis that pushed millions of Americans out of work and out of their homes. Air travel declined 9 percent from 2007 to 2009, according to the Bureau of Transportation Statistics. Though it’s rebounded since, airlines cut their domestic flights 13 percent from 2007 to 2012, according to the Department of Transportation’s inspector general.
One reason is the cost of fuel, which accounted for just 10 percent of airlines’ expenses in 2001, according to the department, but rose to 35 percent a decade later. “It’s not so much the economic downturn that caused this,” said Tom Reich, director of air service development at AvPORTS, a Dulles, Va., firm that owns, leases and manages airports and airport infrastructure. “It’s the price of fuel that’s made these shorter flights less economical.”
Shorter flights that served communities such as Fresno, Calif., saw a 25 percent decline in departures over the five-year period covered by the MIT study. Or Wichita, Kan., which saw a 26 percent drop, and Columbia, S.C., 27 percent. Boise, Idaho, lost almost 40 percent of its departures and Sarastota-Bradenton, Fla., 37 percent. “Those decreases in departures and seats are from regional jet retirements,” Reich said. “Airlines used to be more in love with the 50-seat (regional jet).”
Airlines still serve those communities with fewer planes, though at higher ticket prices that mostly business travelers are willing to pay. Leisure travelers and bargain seekers now drive to the nearest bigger hub, Reich said.
“The first leg that used to be the regional jet is now in a car,” he said.
Another factor for the decline has been industry consolidation. In the past five years, Delta and Northwest have merged, as have United and Continental. American and US Airways are awaiting approval for their merger. And even traditional low-cost carrier Southwest is integrating the operations of onetime rival AirTran. The result? The big carriers are more focused on their big hubs and especially on their international business.
Indeed, the MIT study showed growth in some of the bigger hubs. Departures in Charlotte, N.C., a hub for US Airways, increased almost 10 percent from 2007 to 2012, while the number of seats rose 12.5 percent. Miami, an international gateway for American, posted a 1 percent bump in departures and a nearly 6 percent increase in seats. “I have fewer aircraft, and I want to put those aircraft where they can make the most money,” McElroy said.
Airports see declines since 2007
A Massachusetts Institute of Technology study found that the number of flights and seats available declined at U.S. airports from 2007 to 2012, particularly at medium and small hubs. Aviation experts say the declines were the result of higher fuel prices, industry consolidation and a struggling economy. Below, the changes at 16 U.S. airports.
Show: Total departures Available seats
Airport
|
|
Departures
|
Available seats
|
2007
|
2012
|
Change
|
2007
|
2012
|
Change
|
Size
|
Charlotte-Douglas International
|
CTL
|
222,248
|
243,814
|
+9.7%
|
20,750,436
|
23,350,859
|
+12.5%
|
large
|
Dallas/Fort Worth International
|
DFW
|
307,489
|
288,002
|
-6.3%
|
33,738,465
|
31,944,332
|
-5.3%
|
large
|
Miami International
|
MIA
|
80,157
|
81,031
|
+1.1%
|
10,678,342
|
11,302,646
|
+5.8%
|
large
|
All large hubs
|
|
5,398,392
|
4,922,130
|
-8.8%
|
589,139,232
|
546,587,032
|
-7.2%
|
|
Anchorage International
|
ANC
|
47,575
|
42,019
|
-11.7%
|
3,450,620
|
3,017,946
|
-12.5%
|
medium
|
Kansas City International
|
MCI
|
87,976
|
61,421
|
-30.2%
|
8,558,752
|
6,455,148
|
-24.6%
|
medium
|
Raleigh-Durham International
|
RDU
|
80,351
|
61,658
|
-23.3%
|
6,800,283
|
5,708,550
|
-16.1%
|
medium
|
Sacramento International
|
SMF
|
60,860
|
46,131
|
-24.2%
|
7,307,364
|
5,575,029
|
-23.7%
|
medium
|
All medium hubs
|
|
2,143,964
|
1,581,479
|
-26.2%
|
209,703,705
|
164,793,240
|
-21.4%
|
|
Bellingham Municipal International
|
BLI
|
4,134
|
4,976
|
20.4%
|
284,925
|
592,569
|
108%
|
small
|
Boise Air Terminal / Gowen Field
|
BOI
|
29,062
|
17,476
|
-39.9%
|
2,503,566
|
1,656,923
|
-33.8%
|
small
|
Columbia Metropolitan
|
CAE
|
16,569
|
11,977
|
-27.7%
|
891,579
|
684,202
|
-23.3%
|
small
|
Fresno Yosemite International
|
FAT
|
17,070
|
12,780
|
-25.1%
|
878,888
|
730,189
|
-16.9%
|
small
|
Gulfport-Biloxi International
|
GPT
|
8,330
|
6,287
|
-24.5%
|
588,088
|
412,286
|
-29.9%
|
small
|
Wichita Mid-Continent
|
ICT
|
16,366
|
12,107
|
-26.0%
|
1,169,547
|
961,353
|
-17.8%
|
small
|
Lexington Blue Grass
|
LEX
|
14,348
|
11,692
|
-18.5%
|
722,070
|
690,657
|
-4.4%
|
small
|
Myrtle Beach International
|
MYR
|
10,822
|
9,236
|
-14.7%
|
1,044,309
|
948,383
|
-9.2%
|
small
|
Sarasota-Bradenton International
|
SRQ
|
9,617
|
5,973
|
-37.9%
|
986,412
|
748,575
|
-24.1%
|
small
|
All small hubs
|
|
1,188,891
|
972,766
|
-18.2%
|
89,298,020
|
77,235,010
|
-13.5%
|
|
Source: Massachusetts Institute of Technology
|
| Leaner Airlines Mean Fewer Routes, Study Shows |
May 7, 2013 |
By Susan Carey & Jack Nicas - Wall Street Journal
Link to MIT Study, click here.
If you're having trouble finding flights to Memphis, Pittsburgh or a host of other cities, you're not alone.
A decade of restructuring in the U.S. airline industry has produced a sharp reduction in air service that is curtailing traveler choice and some local economies even as it improves the industry's health, new research shows.
The study, by Massachusetts Institute of Technology, shows that from 2007 through last year, U.S. airlines cut the number of scheduled domestic flights by 14%. The number of seats offered fell by slightly less, as airlines pushed passengers onto bigger planes, says the study, which was prepared by MIT's International Center for Air Transportation and is expected to be made public Wednesday.
Among the hardest hit were the nation's 35 midsize airports, as defined by the government, where carriers cut 26% of their scheduled flights in the five-year period.
The cuts affected airports such as Palm Beach, Fla., Cleveland, Kansas City, Mo., and Oakland, Calif. Some are offering financial incentives—reduced landing fees, lower gate rentals and revenue guarantees—to attract new flights.
About two dozen very small airports, meanwhile, have lost all commercial flights since 2007, including Bluefield, W.Va., and St. Augustine, Fla.
Even the nation's busiest 29 airports lost nearly 9% of their scheduled domestic flights as the major airlines focused on weeding out unprofitable flights and reducing their use of gas-guzzling small jets.
Remaining flights also have become more crowded, with the percentage of seats filled—known as the load factor— soaring to a record of nearly 83% in 2012, from not quite 80% in 2007.
U.S. airlines cut the number of domestic flights by 14% since 2007.
Industry executives say that the changes have helped reduce overcapacity and revive the fortunes of the industry after years of losses and bankruptcies, which they say benefits travelers.
But the changes have also affected convenience and cost for fliers. Overall, average domestic round-trip fares have inched up 4% to $374 in 2012 from 2007, adjusted for inflation. Competition on busy routes between big cities and new flights from discount carriers have held some fares down.
But at some midsize and smaller airports, the recent service cuts have reduced competition and caused fares to shoot up.
In Boise, Idaho, where the nearest big airport is a five-hour drive south in Salt Lake City, airlines cut 40% of the flights over the study period, including nonstop service to Atlanta.
Boise also has fewer airlines flying to Seattle, Los Angeles and Portland, Ore., helping to lift the average inflation-adjusted fare there by 18% since 2007.
That has stifled efforts of the city's burgeoning technology industry to attract new workers. "We have a real problem here in Boise of not having enough local talent," said Tom LaJoie, president of eTripTrader Inc., a local tech company, noting that potential recruits often are turned off by the lack of flights. "You can get here," he said, "but when you want to go somewhere else, it's very expensive and you have limited options."
Mergers between Delta Air Lines Inc. and Northwest Airlines, United Airlines and Continental Airlines, and Southwest Airlines Co. and AirTran Airways have led the combined carriers to rethink their route maps.
The planned merger of AMR Corp.'s American Airlines and US Airways Group Inc. is expected to lead to more route restructuring. The deal would leave the four big airlines with control of 85% of domestic capacity.
Airlines also have been responding to soaring fuel prices, the sluggish economy and falling travel demand. The cutbacks also reflect the failures of some smaller airlines, according to industry experts.
Some of the cuts have been softened by new service from small, turboprop airlines or discounters like Spirit Airlines Inc. and Allegiant Travel Co. —although those carriers offer travelers far fewer connecting opportunities.
Even with fewer flights, airlines spent $47.3 billion on fuel last year, up from $38.6 billion in 2007—though down from the peak of $55 billion in 2008. Bob Jordan, Southwest's chief commercial officer, said airlines' efforts to increase fares to compensate for pricier fuel "put a general damper on traffic," which in turn drove airlines to reduce flights.
Overall U.S. airlines carried 4.2% fewer passengers last year than in 2007, when traffic peaked at 767 million.
But fuel wasn't the only factor. Discount king Southwest, known for its frequent service to midsize airports, is behaving more like the larger network airlines, exacerbating the downward trend, according to the MIT study. Southwest expanded by 6% at the busiest airports while cutting nearly 10% of its flights from smaller airports from 2007 through 2012, according to the MIT researchers.
Over the study period, Southwest entered Boston while slashing flights from nearby Providence, R.I., and Manchester, N.H., by 40%. The Providence and Manchester flights "were very successful, but at some point we needed to enter Boston proper," Mr. Jordan said in an interview. The same thing happened at the airport on Long Island in Islip, N.Y., after Southwest entered LaGuardia and Newark, two leading New York-area airports.
Newport News/Williamsburg Airport in Virginia lost nine daily flights in March 2012 when Southwest withdrew AirTran flights there, said Ken Spirito, the airport's executive director. Southwest already flies to Norfolk, 24 miles away, and AirTran serves Richmond, 80 miles away.
Mr. Spirito said the region lost more than 400,000 passengers in the year after AirTran departed, as well as nonstop service to New York and Boston. Industry mergers mean "there are fewer choices of airlines for us to go seek service from," he said, adding that fares on remaining flights have risen dramatically.
Delta and United Continental Holdings Inc. both have trimmed their smallest hubs, which tended to be served by 50-seat regional jets that are uneconomical to operate at today's oil prices.
At Delta's Cincinnati hub, the number of flights has declined by nearly two thirds since 2007. Produce company Chiquita Brands International Inc. in late 2011 moved its headquarters and 300 employees from Cincinnati to Charlotte, N.C., citing better air service as a primary reason.
Cincinnati's airport in 2010 was responsible directly and indirectly for 16,000 jobs and contributed $3.6 billion to the area's economy, according to a University of Cincinnati study, compared with 56,000 jobs and $4.5 billion estimated for 2003 in an earlier study by the university.
Delta is doing the same in Memphis, Tenn., where flights are down 41%, according to MIT researchers Bill Swelbar and Michael Wittman. A few years ago, Delta's merger partner Northwest alone operated 300 daily flights out of Memphis.
This summer, according to Larry Cox, chief executive of the Memphis-Shelby County Airport Authority, the airport will be down to 91 total daily passenger flights. But all hope isn't lost, Mr. Cox said. AirTran intends to add flights from Memphis to three destinations in August, and by November Southwest will replace AirTran in the Memphis market and fly to five cities.
Bob Cortelyou, Delta's senior vice president for network planning, said fuel prices forced his company to make tough decisions at smaller hubs like Cincinnati and Memphis. "We want an airline industry that is stable and profitable. That is good for everybody," Mr. Cortelyou said. "I don't think you necessarily want to go back to the way it was."
Cleveland, the smallest domestic hub of United, has lost 26% of its flights in the past five years. United made pledges to city officials to retain the Cleveland hub. But Brian Znotins, United's vice president of network, said when passenger demand dips it is better to route passengers through the largest hubs, which generate more traffic by virtue of their local passengers.
For example, a flight from Pittsburgh to Oklahoma City is more efficient if routed through Chicago than Cleveland, he said. Flights from larger cities such as Chicago tend to fill more quickly and at higher fares.
In some cases, the impact on fliers is limited because airlines are merely consolidating traffic within a cluster of nearby airports. Oakland and San Jose, Calif., for example, are losing flights while nearby San Francisco International, a hub for United and the home base of discounter Virgin America, has boosted flights by 21% since 2007, the top increase among the 29 large airports.
Smaller airports that are in close proximity to larger hubs also are getting bypassed. Toledo Express Airport in Ohio, which is only 53 miles from Delta's hub in Detroit, has lost 75% of its flights since 2007, the study shows.
But for some smaller communities, the stakes are higher. The Lake Havasu City, Ariz., airport has been without commercial flights since 2007, when the 19-seat prop planes that served the community became unprofitable, said Steve Johnston, the airport's manager. The city's 53,000 residents now have to drive 2½ hours to Las Vegas or more than three hours to Phoenix to catch flights.
Mr. Johnston said those options are so unappealing that he now drives 10 hours to visit his family near San Jose, Calif. "Some people have gotten their own airplanes," he said. "It's a different way of life."
Click here to expand/collapse.
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| Economic Decline Hurts El Paso Airport |
April 29, 2013 |
By Evan Mohl - El Paso Times, Texas
http://www.aviationpros.com/news/10930042/economic-decline-hurts-el-paso-airport
The El Paso International Airport is facing a decline in passenger traffic and additional cancellations of flights -- something that is causing growing concern among city leaders.
Tight economic times and ongoing challenges of airline companies have caused city officials and leaders to search for ways to maintain and increase the airport's flights and passenger traffic.
The airline industry's struggles with profitability, increasing fuel costs and mergers have drastically affected small and midsize airports that depend on airlines for business, said Brent Bowen, professor and head of aviation technology at Purdue University.
The El Paso airport, with a taxpayer-funded budget of about $48 million, is not immune.
The airport's traffic is down 15 percent since 2010, said Monica Lombrana, the city's director of aviation. Lombrana also said Southwest Airlines, which operates more than half of El Paso's daily flights, plans to stop its direct flight to San Diego in the near future.
The announcement comes a few months after the airline stopped its two nonstop flights to Albuquerque.
"It's a pretty stark situation for medium-sized airports," Bowen said. "And it has pretty much everything to do with the airline industry, which those airports have little or no control over."
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| L.A. official says legal claim undermines Ontario airport talks |
April 11, 2013 |
By Dan Weikel - LA Times
http://www.latimes.com/local/lanow/la-me-ln-ontario-reaction-20130411,0,5447586.story
Los Angeles City Administrative Officer Miguel A. Santana said Thursday he was shocked by a legal claim filed by an Inland Empire group attempting to gain control of L.A./Ontario International Airport.
Santana, who has been moderating talks over a possible airport transfer, said he thought the parties were having productive discussions. The legal action, he said, could undermine further efforts to reach a deal.
“It violates the spirit of the negotiations,” Santana said. “We’ve spent a lot of time and resources to set up a fair process. I am not sure what is next given the legal claim. It’s hard to have meaningful discussions. They are essentially walking away from the table.”
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| 2012 Air Cargo Excellence Survey: Emirates, Southwest Among Repeat Winners |
April 3, 2013 |
By Adina Solomon
http://www.aircargoworld.com/
Emirates, SkyCargo, Thai Airways and Southwest Airlines won Diamond Awards at Air Cargo World’s Air Cargo Excellence (ACE) awards ceremony held on March 14 at the Sheraton Hotel in Doha, Qatar. The three airlines won the top awards in their respective tonnage categories at the 9th annual ceremony.
In North America and Europe, the airports were divided by region and ranked in three size categories: airports with up to 399,999 tonnes of airfreight, airports with between 400,000 and 999,999 tonnes and airports with more than 1 million tonnes.
In North America going from least to most tonnes, LA/Ontario International Airport in Los Angeles, Toronto Pearson International Airport and Ted Stevens Anchorage International each won Diamond.
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| Where Have All the Business Travelers Gone? |
April 3, 2013 |
By Mike Fuentes/Bloomberg
http://www.bizjournals.com/
The business-travel world is shrinking. Literally. And not only because airlines are squeezing us into smaller and smaller seats.
Fewer of us are traveling than anyone once imagined, there are fewer flights than ever before and government-compiled statistics for the state of the commercial airline system in 2012 indicate that substantial growth isn't coming anytime soon.
According to the Bureau of Transportation Statistics, which does a remarkably good job of delivering travel numbers in palatable bites, U.S. airlines carried 736.6 million passengers last year. Not only was that essentially flat compared to 2011—nationwide traffic increased just 0.8 percent—it's a far cry from the rosy predictions issued in 2000.
Experts then insisted that the nation would vault the one-billion-flyer mark by 2011. And they pegged annual growth rates between 3.6 and 5.5 percent. Or as a contemporaneous Reuters dispatch from March, 2000, called: "U.S. sees uninterrupted growth in air travel."
What's happened in the intervening baker's dozen of years to sour us on flying? Oil prices are a major factor.
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| United CEO says mergers made airlines profitable |
March 28, 2013 |
By Scott Mayerowitz - AP Airlines Writer
http://seattletimes.com/html/businesstechnology/2020659555_apusunitedairlinesceo.html
WASHINGTON — United Airlines CEO Jeff Smisek thinks the airline business is transforming into a profitable industry, thanks to fewer flights and higher fares.
Mergers have helped bring rationality to the market, Smisek told an aviation conference Thursday. For far too long, he said, too many airlines were chasing too few passengers.
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| Upland Bone Marrow Donor Meets Iowa Recipient for First Time |
March 27, 2013 |
By Sandra Emerson
http://www.dailybulletin.com/news/ci_22884441/upland-bone-marrow-donor-meets-iowa-recipient
UPLAND -- When 22-year old Alex Fishburn found out he was a bone marrow match for an anonymous Leukemia patient, he did not realize the two would later become friends.
Fishburn and Grant Vietor, the 47-year-old Sioux Center Iowa high school teacher and coach who receive the much needed cells, met for the first time Wednesday at the Ontario International Airport.
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Red Ink Flows at Bob Hope Airport
Facility's Problems Continue in Face of Fewer Flights, Difficult Economy |
March 5, 2013 |
Daniel Siegal
http://www.burbankleader.com/news/story
Halfway through its fiscal year, Bob Hope Airport's operating revenues are running more than $150,000 in the red due to declining numbers of passengers and weak parking revenues, according to a recent financial report.
Parking fees, which make up about 40% of the airport's revenues, were budgeted to bring in $9.5 million but only produced $8.9 million, according to the report released to the Burbank-Glendale-Pasadena Airport Authority on Monday.
Passenger levels for the first half of the fiscal year — July to December 2012 — declined almost 6.8% compared to the same period in the last fiscal year.
“At this time, we continue to be vulnerable to the economic uncertainty and the associated unfavorable impacts of the sluggish economy on passenger demand,” the report states.
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| Airline Profit Outlook Raised 63% by IATA on Capacity Cut |
December 13, 2012 |
By Robert Wall - Bloomberg
http://www.bloomberg.com/news/2012-12-13/airline-profit-outlook-raised-63-by-iata-on-capacity-cut.html
Airline earnings this year are likely to be 63 percent higher than previously forecast as capacity cuts and mergers prompted by the economic slump take hold, the International Air Transport Association said.
Industry-wide net income should reach $6.7 billion, versus a forecast of $4.1 billion in October, IATA said. Profit next year may increase to $8.4 billion, $900 million more than last predicted though still short of the $8.8 billion return in 2011.
Sluggish growth and fuel costs have weighed on earnings for the past two years, triggering efforts to reduce capacity, cut costs and accelerate consolidation. The biggest improvement has been in Europe, where airlines that were forecast to lose $1.2 billion will break even in the wake of job cuts and takeovers.
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| U.S. airlines' average fuel price rose in October |
December 11, 2012 |
Tess Stynes Wall Street Journal
http://www.marketwatch.com/story/us-airlines-average-fuel-price-rose-in-october-2012-12-11
U.S. airlines' average fuel cost per gallon for scheduled flights increased 9.7% in October from a year earlier and was up 3.4% from September, according to the Department of Transportation.
The DOT's Bureau of Transportation Statistics said airlines spent $3.06 a gallon on fuel in October.
High fuel costs pose a challenge for airlines, and many of them have scaled back on capacity to help keep costs under control and maintain pricing power. A number of them are upgrading their fleets to more fuel-efficient models. Earlier this year, Delta Air Lines Inc. (DAL) bought a refinery in a effort to lower its jet-fuel costs.
The agency also said total fuel consumption on scheduled flights was 1.29 billion gallons in October, down 3.9% from a year earlier and 1.9% from September.
The average fuel price for international service rose 5.7% from September, while it grew 1.6% for domestic service.
|
| Midsize Markets Suffer Airline Neglect |
October 22, 2012 |
BY JOE SHARKEY New York Times
http://www.nytimes.com/2012/10/23/business/airlines-neglect-midsize-markets.html
“YOU can’t get there from here” is an old joke. But after my experience trying to get from Tucson to Houston on short notice over the weekend, I’m not laughing.
Last Wednesday, I learned that I had to be in Houston for business before 3 p.m. on Sunday. Hey, no problem, I thought as I went online to look for flights.
Big problem, as it turned out. I knew, in theory, that business travelers flying to and from medium-size markets like Tucson were regularly confronting the realities of today’s domestic air travel system. Focusing more on big hubs and on ever-closer partnerships with international alliances, airlines have greatly reduced service at midsize and smaller regional airports. Those airports, on average, have lost about 25 percent of their seats in the last two years, according to Boyd Group International, the airline forecasting company.
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| New talks could decide fate of L.A./Ontario International Airport |
October 10, 2012 |
LA Times
http://latimesblogs.latimes.com/lanow/2012/10/the-los-angeles-city-council-on-wednesday-cleared-the-way-for-talks-that-could-determine-whether-control-of-struggling-laont.html"
The Los Angeles City Council on Wednesday cleared the way for talks that could determine whether control of struggling L.A./Ontario International Airport should be transferred to the Inland Empire.
Council members also rejected a December 2011 offer by Ontario to take over the facility because the deal called for payments of $50 million to Los Angeles instead of to Los Angeles World Airports, the operator of Ontario, Los Angeles International and Van Nuys airports. Federal law requires that all airport-related revenue must be used for airport purposes.
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AIRPORT: LA council OKs talks but won’t ‘give it away’
Ontario gets an OK from the Los Angeles City Council to begin negotiating the purchase of the beleaguered airport |
October 10, 2012 |
BY KIMBERLY PIERCEALL The Press Enterprise STAFF WRITER
http://www.pe.com/local-news/local-news-headlines/20121010-airport-la-council-oks-talks-but-wont-give-it-away.ece"
Negotiations for the sale and control of Ontario International Airport got an official OK from Los Angeles council members Wednesday, Oct. 10, but only after some admonitions that the airport should not be allowed to compete with LAX.
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| L.A. council gives go-ahead to discuss ONT transfer |
October 10, 2012 |
Liset Marquez, LA Daily News
http://www.dailynews.com/ci_21741411/la-council-gives-go-ahead-discuss-transfer-ont
LA/Ontario International Airport (Daily Bulletin file photo)The Los Angeles City Council on Wednesday gave final approval on a plan for the city to enter into negotiations for the possible transfer of LA/Ontario International Airport to a new regional authority, despite opposition from two council members. A report on the negotiations, which aims to determine the fair value of ONT, is expected in 90 days.
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| Economist's claims about Ontario airport disputed |
September 30, 2012 |
Liset Marquez, Staff Writerdailybulletin.com
http://www.dailybulletin.com/ci_21662460/economists-claims-about-ontario-airport-disputed
Airlines across the nation are still adjusting to a tumultuous four-year period in the aviation industry that has forced many to adopt a new business model, according to an aviation industry performance report released by the Department of Transportation.
The report looked at a time frame almost identical to L.A./Ontario International Airport's period of decline, from 2008 to 2011.
In it, the inspector general has found that rising fuel costs have complicated efforts to keep ticket costs low and as a result airlines have had to reduce their flights and increase their fares.
The national trend is what airlines have been doing at ONT.
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| Airlines have cut short-haul routes, service to small cities |
September 30, 2012 |
Hugo Martin, LA Times
http://www.latimes.com/business/money/la-fi-mo-airlines-short-routes-20120927,0,1140710.story
If you’re having a hard time finding short-haul flights to small and medium-size cities, it’s not your imagination.
A new study by the Office of Inspector General of the U.S. Department of Transportation concluded that the elimination of thousands of flights of less than 500 miles is one result of the airline industry’s efforts to prosper in the face of higher fuel costs and economic turbulence in the last few years.
Another tactic airlines have used to rebound from the dismal financial times that followed the Sept. 11 terrorist attacks and the Great Recession: Packing more passengers in bigger planes so that the chances of stretching out to an adjacent empty seat are almost nil.
The good news is that airlines have seen profits grow in the last few years, the report said. It noted that the nation’s largest airlines earned about $5 billion in profits in 2011, up from 2002 when the industry lost a combined total of $9.2 billion. In addition, the airlines have improved on-time performance and cut the number of canceled flights.
But the bad news for passengers is that five airlines now serve 85% of the market in the U.S., compared with 2000 when 10 airlines served more than 90% of the market. In addition, airlines have eliminated thousands of flights, especially short-haul flights using smaller planes.
Of the 457 airports in the country, 61 have lost half or more of the carriers serving their communities over the last five years. Meanwhile, the number of flights of less than 500 miles have been cut by 3,000 a day in that same period, according to the report.
The hardest-hit cities have been Cincinnati, with a 63% cut in scheduled flights; Pittsburgh, with 40% fewer flights; and Memphis, with 35.5% fewer flights, according to the report.
“The industry’s strategies of consolidating airlines, cutting flights and raising fares have produced positive financial results,” the report concluded.
A spokeswoman for Airlines for America, a trade group that represents the nation’s airlines, said the industry has cut many domestic flights and reduced seating but only to better match demand.
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| Inspector General report lauds U.S. airlines' survival skills |
September 28, 2012 |
By Kate Rice
http://www.travelweekly.com/Travel-News/Government/Inspector-General-report-lauds-US-airlines-survival-skills/
A new Department of Transportation Inspector General's report outlines the way high fuel prices and a stubborn recession are changing the fundamentals of the airline industry, and that these changes mark the industry's ability to adapt and survive.
And that's a good thing, because the airline industry is one of the most important in the U.S. economy, says the report.
The report said that to survive, the airline industry has had to adapt by charging fees for services once included in the cost of an airline ticket and by introducing new services and amenities and charging for them, as well.
They're reducing the number of scheduled flights, and filling vacant seats. And the industry is rapidly consolidating, reducing the number of airlines serving the bulk of the domestic passenger market from 10 in 2000 to 5 in 2012.
Airlines have become more aggressive in adjusting fares and flight schedules in response to what's happening to fuel prices and passenger demand. The result is good news and bad news for travelers.
The good news: a "significant" drop in flight delays and cancellations, according to the report.
The bad news: less service at some hub airports and for short-haul flights of 500 miles or less. That limits consumer choice.
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| Gov’t report: More fees, less choice ahead for passengers as airline industry trends continue |
September 25, 2012 |
By Associated Press
http://www.washingtonpost.com/politics/govt-report-more-fees-less-choice-ahead-for-passengers-as-airline-industry-trends-continue/2012/09/25/8fc38902-073b-11e2-9eea-333857f6a7bd_story.html
WASHINGTON — Airline passengers can expect fewer carriers to choose from, fewer flights to smaller cities and more baggage and other fees as the industry continues to grapple with high fuel prices and a weak economy, according to a government report released Tuesday.
The airline industry is still in transition after a tumultuous decade in which bankruptcies and mergers cut the number of airlines accounting for the bulk of domestic flights in half, to just five: American, Delta, Southwest, United and US Airways, the report by the Department of Transportation’s inspector general said. If US Airways and American — which are in merger discussions — were to combine, that would drop to four.
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| AIRPORT: LA committee OKs negotiation to sell Ontario |
September 25, 2012 |
KIM PIERCEALL, The Press Enterprise
http://www.pe.com/local-news/local-news-headlines/20120925-airport-la-committee-oks-negotiation-to-sell-ontario.ece
Negotiations between the city of Los Angeles and a newly formed Ontario International Airport Authority that could return the Inland airport to local control got an official go-ahead Tuesday.
The first update on the talks is due in 90 days.
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| L.A. council committee backs plan for negotiations with Ontario over airport |
September 25, 2012 |
Liset Marquez, Staff Writerdailybulletin.com
http://www.dailybulletin.com/ci_21628151/developing-value-ont-still-needs-be-determined-say
LOS ANGELES - A Los Angeles City Council subcommittee has agreed with a recommendation from its top city administrator on opening up discussions for transferring control of L.A./Ontario International Airport.
City Administrative Officer Miguel Santana spoke at a special Trade Commerce and Tourism meeting on Tuesday about his recent report said the airport's value still needs to be determined.
"Ultimately, the future value of the airport will be determined through negotiations," Santana said at Tuesday's meeting in Los Angeles City Hall.
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| AIRPORT: Southwest departures dropped 37 percent at Ontario |
September 24, 2012 |
KIMBERLY PIERCEALL , The Press Enterprise
http://www.pe.com/local-news/local-news-headlines/20120924-airport-southwest-departures-dropped-37-percent-at-ontario.ece
Southwest Airlines, the company ferrying the majority of passengers at Ontario International Airport, cut its daily departures there from an average of 53 in 2007 to 33 this year.
The airline also trimmed flights at LAX and Bob Hope Airport in Burbank, but the steepest drop was at Ontario, according to data obtained from statistics firm UBM Aviation. The airline added flights at nearby John Wayne Airport in Orange County.
Southwest’s shrinking schedule of flights accounts for at least part of the plummeting number of passengers at Ontario in the past five years.
The 37.7 percent drop in Southwest flights is almost identical to the 37 percent decline in overall passenger traffic.
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| Report urges L.A./Ontario Airport negotiations to continue |
September 23, 2012 |
By Dan Weikel, Los Angeles Times
http://www.latimes.com/news/local/la-me-adv-ontario-report-20120925,0,273760.story
The city of Los Angeles should continue negotiating with government officials from the Inland Empire to determine if there is a way to transfer control of L.A./Ontario International Airport to them, a new report recommended Friday.
The report by Miguel Santana, the chief administrative officer for Los Angeles, also concluded that a December 2011 proposal by Ontario municipal officials to take over the struggling airport should be declined.
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| Plenty of potential for LA/ONT, reports says |
September 22, 2012 |
Liset Marquez and Andrew Edwards, Staff Writersdailybulletin.com
http://www.sbsun.com/ci_21612767/plenty-potential-la-ont-reports-says#ixzz27Pk6l9L8
L.A./Ontario International Airport could become the busiest midsized airport in its region, a top Los Angeles official wrote in a report that contemplates serious talks between his city and Ontario that could lead to the airport changing hands. Los Angeles released the report late Friday.
Previously expected to be released in early summer, the report also outlines Los Angeles' response to Ontario's late 2011 offer to take back control of the airport for considerations of nearly $250million.
Miguel Santana, Los Angeles' top administrator, says his city should say "no" to Ontario's offer but begin negotiations with Ontario officials for the potential transfer of ONT.
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| AIRPORT: Negotiate for Ontario’s control, report says |
September 21, 2012 |
By Kimberly Pierceall The Press Enterprise
http://www.pe.com/local-news/local-news-headlines/20120921-airport-negotiate-for-ontarios-control-report-says.ece
Los Angeles should explore the possibility of selling Ontario International Airport to the city of Ontario or a newly formed regional authority, according to a recommendation in a report from Los Angeles’ chief financial adviser.
The prospect of a serious negotiation was considered a noteworthy step in the years-long effort by the city of Ontario to regain control of the airport that Inland leaders have said was neglected in favor of LAX.
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| Small airports struggle as major carriers pull back |
September 22, 2012 |
Houston Chronicle
http://www.chron.com/business/article/Small-airports-struggle-as-major-carriers-pull-3885302.php
Persistently high oil prices have forced airlines to cut and downsize smaller domestic routes with less demand, while placing bigger, newer and more fuel-efficient planes on more profitable ones. Those routes tend to fly from major hubs in big cities, meaning many smaller cities are losing all or most commercial air service for the first time.
"This is happening all over the country," said Robert Herbst, an independent airline industry consultant, noting that the price of jet fuel has increased some 350 percent in the last eight years, becoming the single largest cost for airlines.
Independent airline consultant Darryl Jenkins, chairman of the American Aviation Institute, said "every decision that is made in the airline industry today on routes is driven by the price of jet fuel."
"They use up a lot of fuel, these regional jets," Jenkins said. "So, at a certain point, given the fare levels that you can get and how many people you can get to fly, it's just not economic to play these markets."
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| CENSUS: Inland Residents Out of Work, on Food Stamps Rises |
September 19, 2012 |
David Olson
http://www.pe.com/local-news/local-news-headlines/20120919-census-inland-residents-out-of-work-on-food-stamps-rises.ece
Inland families’ income tumbled for the fourth year in a row in 2011, and more people fell into poverty as the economic downturn continued to devastate the region, newly released U.S. Census Bureau data shows.
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| I.E. Struggles Hamper ONT |
September 17, 2012 |
Liset Marquez, Inland Valley Daily Bulletin
http://www.dailybulletin.com/ci_21565056/airlines-express-concern-about-ont-incentives
The average household income in the Inland Empire - not the economy, or rising jet fuel costs - has been the main challenge in attracting new service to LA/Ontario International Airport, according to research provided by a consultant for Los Angeles World Airports.
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| LAWA Releases Report on ONT's Value |
September 17, 2012 |
Liset Marquez, Inland Valley Daily Bulletin
http://www.sgvtribune.com/news/ci_21564047/report-la-ontario-international-airport-worth-128-million
ONTARIO - How much is L.A./Ontario International Airport worth?
A report released Monday by Los Angeles World Airports detailed the value of the Ontario airport ranged from $243 million to $605 million, based on several factors.
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| ONTARIO: Report Examines Airport's Worth |
September 17, 2012 |
by Kimberly Pierceall The Press Enterprise
http://www.pe.com/local-news/local-news-headlines/20120917-ontario-report-examines-airports-worth.ece
How much is Ontario International Airport worth?
A consultant hired by the airport’s owner and manager – Los Angeles World Airports – has released a 60-page report that examines that question.
Anyone seeking a precise answer, however, will have to keep looking.
The airport could be worth anywhere between $243 million and $605 million, based on cash flow for the next 50 years, the report says. The estimates take into account revenue and expense forecasts and assumptions about traffic and potential buyers, among other factors.
In contrast, the city of Ontario has offered to pay Los Angeles up to $50 million in cash and assume $75 million worth of debt in exchange for control of the Inland airport.
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| United Airlines cuts more 2012 flying |
September 05, 2012 |
Liset Marquez, Staff Writerdailybulletin.com
http://www.businessweek.com/ap/2012-09-05/united-airlines-cuts-more-2012-flying
YORK (AP) — United Airlines will reduce flying more than expected during the rest of this year because of higher fuel prices and a sluggish economy.
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| Regional airlines face closings, bankruptcy |
August 20, 2012 |
By Charisse Jones, USA TODAY
http://travel.usatoday.com/flights/story/2012-08-20/Regional-airlines-face-closings-bankruptcy/57169432/1
Passengers hopscotching across the U.S. may book their trip on one of the major airlines such as United, but it's often smaller, regional carriers with such names as Colgan Air that do the flying.
Regional airlines operate half the nation's scheduled flights and are often the link between smaller communities and the national air service network.
But now, several of those carriers are being closed or are in bankruptcy court protection. They face significant challenges, as the big airlines they often fly for are phasing out smaller and costlier regional jets and cutting some low-traffic regional routes to focus on those that are more lucrative.
As a result, many smaller communities may lose some or all of their air service, and their residents will have to take longer drives to find a flight.
"We're going to see some airports go dark," says William Swelbar, research engineer for MIT's International Center for Air Transportation. "The highway is going to be the connection to the air network system."
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| ONT air carriers reviewing proposed incentive plan |
August 20, 2012 |
Liset Marquez, Staff Writerdailybulletin.com
http://www.dailybulletin.com/ci_21357931/ont-air-carriers-reviewing-proposed-incentive-plan
ONTARIO - Carriers at LA/Ontario International Airport are expected to weigh in by next month whether they are in are in favor of proposed incentives at the struggling small-hub facility.
Speaking to Los Angeles World Airports' governing body on Monday, Jess Romo, general manager at ONT, said he sent the airlines a letter in early August about the proposed incentives.
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| AIRPORT: Ontario manager floats incentive proposal |
August 20, 2012 |
BY KIMBERLY PIERCEALL The Press Enterprise
http://www.pe.com/business/business-headlines/20120820-airport-ontario-manager-floats-incentive-proposal.ece
The agency that owns and manages Ontario International Airport has developed a plan to offer incentives to airlines to increase traffic there.
Jess Romo, the airport’s manager, told the Los Angeles World Airports’ board of airport commissioners on Aug. 20 that a plan had been circulated among the airport’s existing carriers. Any incentive program would require the approval of the airport’s carriers, who cover the cost to operate the airport after all other revenue is taken in. The carriers were told to respond by Sept. 7.
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| As Airlines Do the Shuffle, Passengers Try to Follow |
July 30, 2012 |
By Joe Sharkey, New York Times
http://www.nytimes.com/2012/07/31/business/airlines-adjust-their-fleets-and-passengers-often-suffer-on-the-road.html?_r=1&adxnnl=1&adxnnlx=1343743383-49EfX3JuSnAOiUlKiaBRIg
That’s a tiny slice of the new reality in domestic air travel, with airplanes flying more full than ever, and airlines shuffling their fleets to eliminate smaller jets and focus more on flying bigger planes in major markets that provide the most revenue.
In that process, the cramped 50-seat regional jets that were the backbone of service for midsize and smaller markets are disappearing. In some markets, that means service is being eliminated. In others, though, it means reduced schedules on fewer routes, served by slightly bigger planes like the Bombardier CRJ-700, which is a stretched version of the older 50-seat CRJ-200.
A new era has dawned in domestic flying, as airlines cut routes and capacity and fly planes more full than ever. United Airlines, for example, reported that its domestic load factor, the proportion of seats occupied by paying passengers, was 86.5 percent in the second quarter, which is around the industry average. By comparison, domestic carriers were reporting load factors of only about 78 percent at the same time five years ago, before the recession.
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| Fresno airfares highest among California's large airports |
July 26, 2012 |
By Tim Sheehan - The Fresno Bee
Fresno Yosemite International is the most expensive airport to fly from among the state's busiest airports.
Rhonda Jorn, marketing director for FYI, said Fresno is handcuffed by a lack of airlines serving the city, as well as by a limited number of flights and seats provided by those airlines.
"The deal is capacity," Jorn said. "These other airports have more airlines. They have more low-cost carriers, more choices. ... We don't have 10 flights a day to Dallas, for example. We only have a couple."
Jorn said airport officials are constantly trying to attract new airlines to Fresno and to convince existing carriers to add more flights to serve more people. But, she added, that's a difficult chore when airlines are cutting back on service to smaller airports and focusing on major service hubs.
http://www.fresnobee.com/2012/07/26/2923819/fresno-air-fares-highest-among.html#storylink=cpy
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| Domestic air fares hit all-time high in the first quarter of 2012 |
July 26, 2012 |
By Jim Barnett, CNN
Washington (CNN) -- It cost passengers more to fly on U.S. planes during the first three months of this year than ever before.
The average price of a domestic ticket rose to $373 in the first quarter of 2012, according to the Transportation Department's Bureau of Transportation Statistics. That's a 4.8% jump from the average fare of $356 in the first quarter of 2011.
http://www.cnn.com/2012/07/26/travel/high-air-fares/index.html
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| Airline Index Slide Is Longest Since 2010 on United Miss |
July 26, 2012 |
By Mary Schlangenstein on July 26, 2012
Today’s decline in the airline index matched the longest such skid for the gauge of 10 carriers since June 2010, according to data compiled by Bloomberg. JetBlue Airways Corp. (JBLU) (JBLU) dropped 1.1 percent to $5.20, and Delta fell 0.6 percent to $9.41. US Airways rose 0.4 percent to $11.19 today, its second increase in the past trading nine days.
Limiting the supply of available seats helps airlines retain pricing power.
http://www.businessweek.com/news/2012-07-26/united-continental-profit-trails-on-higher-fuel
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| More turbulence ahead for airlines, Goldman says |
July 12, 2012 |
By Arti Patel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Goldman Sachs initiated coverage Thursday on the U.S. airline sector, cautioning investors the best of the bunch deserve only a neutral rating and slapping a sell recommendation on the nation’s two biggest carriers.
With negative near and long-term expectations for the sector, Goldman analysts led by Tom Kim told investors the industry remains “structurally challenged by the constant threat of new entrants, high operating and capital costs and elastic demand in prices.”
http://articles.marketwatch.com/2012-07-12/markets/32643651_1_airline-sector-nyse-arca-airline-index-japan-airlines
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| San Bernardino Bankruptcy: Third CA City In Less Than Two Weeks To Seek Bankruptcy Protection |
July 11, 2012 |
Huffington Post
SAN BERNARDINO, Calif. -- The City Council in San Bernardino voted Tuesday night to seek Chapter 9 bankruptcy protection, making it the third California city in less than two weeks to make the rare move.
The Southern California city of about 210,000 people will also become the second largest in the nation ever to file for bankruptcy. Stockton, the Northern California city of nearly 300,000, became the biggest when it filed for Chapter 9 on June 28.
The City Council directed the city attorney to make the move during a meeting where administrators explained the dire fiscal circumstances and urged them to choose the bankruptcy option.
http://www.huffingtonpost.com/2012/07/11/san-bernardino-bankruptcy_n_1663940.html
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| San Bernardino bankruptcy: Only $150,000 left in bank accounts |
July 11, 2012 |
Los Angeles Times
The San Bernardino City Council's decision to file for municipal bankruptcy came days after the city learned it had just $150,000 in its bank accounts, barely enough to make payroll June 15, city officials said.
Shortly before the council's vote Tuesday night, City Atty. James Penman warned the city would "shut down," including public safety agencies, if it didn't have enough money to pay its employees.
"People are not going to work if they do not get paid,'' Penman said.
http://latimesblogs.latimes.com/lanow/2012/07/san-bernardino-bankruptcy-only-150k-bank-accounts.html
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| As They Lose Traffic, Once Bustling Airports Have Space to Rent |
July 9, 2012 |
By Jane L. Levere, New York Times
The fate of Lambert-St. Louis International Airport may be a portent for other airports serving smaller cities around the United States.
Once the main hub of Trans World Airlines, the airport offered as many as 475 departures a day. But now, there are just 256 daily departures, leaving half the concourses at the older of its two terminals vacant and the airport scrambling to find new, revenue-generating uses for the space.
Already, airports in Pittsburgh (a former hub for US Airways), Cincinnati (a much-downsized Delta Air Lines hub) and Oakland, Calif., have lost a significant amount of their business as airlines concentrate more of their flights on bigger-city airports.
As airlines continue to consolidate and cut back on their use of smaller, regional jets, more airports will be in the same difficult position — looking for new uses for unoccupied terminals, hangars and other specialized buildings.
http://www.nytimes.com/2012/07/10/business/secondary-airports-losing-traffic-have-space-to-rent.html?_r=3&ref=business
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| The Planning Report |
June 29, 2012 |
From the July, 2012 issue
Ontario vs LAWA: Is Local Control of Airport the Answer?
While Ontario International Airport serves millions of passengers a year, its passenger volume has declined steadily in recent years. Owned and operated by the Los Angeles World Airports, and thus the City of LA, the airport is a local asset over which the City of Ontario holds no authority. TPR presents the following excerpts from a panel about the airport, its importance, and its future, at the Four Corners Economic Summit, moderated by TPR editor-in-chief David Abel and featuring, among many participants, Denny Schneider (President, ARSAC), Alan Wapner (Councilmember, City of Ontario), Mayor Ron Loveridge (City of Riverside), Michael Armstrong (SCAG), and Gina Marie Lindsey (Executive Director, LAWA).
http://www.planningreport.com/2012/06/29/ontario-vs-lawa-local-control-airport-answer
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| Airport Complexity |
Jun 5, 2012 |
Daily Bulletin
Has anyone noticed that in the dispute between Ontario and Los Angeles about control of Ontario International Airport nobody is getting any comments from the airlines?
Could it be that each airline has the right to decide which airport and cities it wants to serve, what the schedule will be and what fares to charge? You bet it is. That won’t change no matter who runs the airport.
A recent case in point is the bankruptcy of American Airlines (AMR) a couple of months ago. While they’re going through a court bankruptcy procedure, they canceled all flights in and out of Burbank Airport and laid off some people at Ontario.
Also, about this average fare cost at Ontario and “surrounding” airports.
Check this out: The L.A. Times Sunday Travel section publishes a chart every week comparing air fares between Southern California airports: Orange County, Long Beach, LAX, and Burbank and destination cities Chicago, Phoenix, etc. Guess what, over the last six months Ontario is not always the highest and LAX is not the lowest. It varies all over the place, even with computer ticketing.
Right now — and for the last few years — the highest cost to operating an airline is jet fuel. You think gas prices have gone up? Jet fuel prices have doubled in the last three years.
Passenger fees? What are they and what do they pay for? For one thing, they pay for the federally mandated people who work for the TSA, the federal Transportation Security Administration; you know, the people in blue gloves who pat you down before you get to the boarding gates.
Loss of jobs because Ontario airport airline passenger count is down? How come no mention of UPS? Ontario International is the western hub for UPS and employs about 3,000 people.
The recession has reduced UPS business, I think, so I may be wrong about employees, but those jobs are connected to air cargo, not passengers. Oh, FedEx too has an Ontario airport operation.
Yes folks, operating an airport is complex, no matter who does it, so changing management of Ontario International Airport from the city of Los Angeles, which has been doing it for more than 40 years, to the city of Ontario may not be such a good idea.
TODD F. KAWAKAMI
Chino
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| Uneven Economy Keeps Many Travelers Grounded, Spending Less |
May 15, 2012 |
By Laura Bly, USA Today
No, the dreaded "staycation" hasn't made a comeback.
But according to three surveys released this week, Americans remain fiscally cautious about their summer travel plans. While several new surveys show more Americans are planning summer vacations to New York City and other destinations this year than last, frugality still rules.
In a new PhoCusWright poll of more than 2,000 U.S. travelers, nearly four in 10 Americans (38%) didn't buy a vacation trip within the past year. Particularly hard hit were early boomers (ages 45-54), whose average trip expenditure dropped by more than 10%.
http://travel.usatoday.com/destinations/dispatches/post/2012/05/uneven-economy-keeps-many-travelers-grounded-spending-less/693711/1
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| It's not just Memphis That's Being Squeezed by Airline Consolidation |
May 3, 2012 |
By Jad Mouawad of the New York Times
The major airlines have been paring service for much of the last decade. But their cutbacks accelerated three years ago as carriers merged, fuel prices spiked and the recession reduced demand for seats. Even after the economy started to recover and passengers came back, the big airlines did not restore many of their flights, particularly on routes to small airports, as they sought to bolster their profits.
http://www.commercialappeal.com/news/2012/may/03/its-not-just-memphis-s-being-squeezed-airline-cons/
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| U.S. airlines seen posting Q1 loss, 2012 profit |
Apr 16, 2012 |
By Karen Jacobs
(Reuters) - Rising fuel prices pushed major U.S. airlines into the red for the first quarter and could pressure results during the peak travel season, but most carriers are likely to be profitable this year, analysts said. While grappling with high fuel costs, carriers have merged, trimmed money-losing routes, raised ticket prices, and added charges for luggage and food to revive profits after the 2008-09 downturn. A rebound in corporate travel has bolstered the recovery.
http://www.reuters.com/article/2012/04/16/us-airlines-preview-idUSBRE83F15520120416
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| In California, Economic Gap of East vs. West |
Apr 13, 2012 |
By Jennifer Medina, The New York Times
SAN BERNARDINO, Calif. — For decades, California has been seen nationally and by its own residents as a state divided into north and south, urbane tree-huggers versus car-obsessed beach hoppers. But the more meaningful division, it turns out, may be between east and west.
http://www.nytimes.com/2012/04/14/us/californias-economic-split-pits-west-against-east.html?_r=1
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| Aviation DataFlash |
Apr 09, 2012 |
By BoydGroup International, Inc.
http://www.aviationplanning.com/HotFlash.htm
(Excerpt from: Apple Airline: The Only Way To Fly
http://www.examiner.com/investing-in-phoenix/apple-airline-the-only-way-to-fly
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| United to Pull Out of Oakland Airport in June |
Apr 09, 2012 |
By Matthias Gafni and Rick Hurd, Contra Costa Timesmercurynews.com
OAKLAND -- United Airlines will terminate its operations at Oakland International airport on June 4, an airport representative said Saturday night.
"The financial performance of the flights has made the losses too great to allow us to maintain the service," United spokeswoman Mary Clark told a USA Today blog.
http://www.mercurynews.com/news/ci_20350695/united-pull-out-oakland-airport-june?source=rss
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| Airlines Looking for Gains Amid Higher Fuel Prices |
Apr 08, 2012 |
By Ann Schrader, The Denver Postdenverpost.com
Jet-fuel prices have shot up about a quarter per gallon since January, leaving airlines to scramble to cover the cost by raising fares and finding ways to cut expenses.
Fuel is the lifeblood of airlines, representing more than 35 percent of their operating expenses. That's up from 30 percent in 2010, said Steve Lott, spokesman for the trade group Airlines for America.
http://www.denverpost.com/business/ci_20345729/airlines-looking-gains-amid-higher-fuel-prices
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| Airfares Climb, Routes Disappear as Fuel Prices Rise |
Mar 08, 2012 |
Hugo Martín, Los Angeles Times
Airfares are rising, planes are packed, and carriers are abandoning less-profitable routes. What's to blame? Climbing fuel prices.
And there will be no relief in the immediate future, according to an analysis released by the Federal Aviation Administration.
http://www.latimes.com/business/la-fi-gas-airlines-20120309,0,7781469.story
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| Villaraigosa Says LA Has No Plans To Sell Ontario Airport |
Mar 1, 2012 |
LOS ANGELES (CBS)
Mayor Antonio Villaraigosa says the city of Los Angeles has no plans to sell Ontario Airport. Villaraigosa told a group of Inland Empire officials and business leaders that the city will not sell the airport, which has seen a sharp drop in travelers.
Ontario officials, who claim travelers are being driven to Los Angeles International Airport at their city’s expense, want to gain control of the airport. Officials with Los Angeles World Airports, which oversees Ontario Airport, say the decline in travel is due to the struggling economy
http://www.flightglobal.com/news/articles/us-airlines-call-for-national-policy-reforms-after-2011-profit-squeeze-368901/
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| US airlines call for national policy reforms after 2011 profit squeeze |
Feb 29, 2012 |
Stephen Trimble, Washington DC
A US airline lobbying group has unveiled a broad agenda to improve the domestic industry's competitiveness by overhauling the regulations and taxes imposed on the industry from the government. The Airlines for America (A4A) plan was revealed as the organisation reported that 11 US airlines barely broke even in 2011 even though sales improved by 12.6% compared to the previous year.
http://www.flightglobal.com/news/articles/us-airlines-call-for-national-policy-reforms-after-2011-profit-squeeze-368901/
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| Facing costly fuel, airlines push fares higher |
Feb 29, 2012 |
(AP) DALLAS — Airfares are up and headed higher this summer.
Airlines blame soaring fuel prices which could cost them billions more than last year. That means fares, which normally rise as the summer travel season nears, could increase faster than normal.
http://www.newsday.com/news/facing-costly-fuel-airlines-push-fares-higher-1.3566746
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Southwest Takes a Breather
With Fuel Costs Up, AirTran Purchase to Digest, Airline Holds Off on Expansion |
Feb 27, 2012 |
SUSAN CAREY AND DOUG CAMERON
With fuel prices on the march again, Southwest Airlines Co. is taking a pause after a 41-year expansion that has taken it to the brink of the global industry's top 10 by traffic.
http://online.wsj.com/article/SB10001424052970204778604577243563762138048.html
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| Airlines raise fares again, point to higher fuel costs |
Feb 26, 2012 |
Hugo Martin, Los Angeles Times
For the third time this year, several of the nation’s major airlines hiked air fares last week, with United and Continental airlines initiating a $4 to $10 increase in round-trip ticket prices.
Industry executives say the increases aren't surprising considering the rising cost of running an airline. They point to several statistics outlined in an economic report released this month by Airlines for America, the trade group for the nation’s largest airlines.
http://www.latimes.com/business/la-fi-travel-briefcase-20120227,0,7475748.story
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| Airport needs boost |
Feb 25, 2012 |
The Ontario International Airport (ONT) has been a resource of extreme value to the entire region. It has been a major selling point for boosters of Chino Valley, because of the accessibility to nationwide air travel for people deciding to locate their businesses here.
It has been of major benefit as well to local residents who are saved agonizing freeway miles and hours to Los Angeles International (LAX) to either fly out or meet incoming passengers.
http://www.championnewspapers.com/articles/2012/02/25/opinion/doc4f47fc5768741001445116.txt
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| Surging Oil Prices Slap Airlines (and Travelers) |
Feb 22, 2012 |
Joe Brancatelli
Remember the dark days of 2008, when the airline industry shuddered from record oil prices? Well, those unhappy days are here again. Airlines spend at least 35 percent of their operating budgets on energy costs.
Here's something you probably need to be reminded about: Surging oil prices will cause you real pain at the airport too, because airlines are disproportionately affected by energy prices. They'll raise fares on business travelers, and you'll stop flying because prices have gotten too high. Then they'll drop routes that are no longer profitable and mount counterintuitive fare sales in a desperate bid to lure discretionary travelers back onto the planes. Some airlines will die.
http://www.portfolio.com/business-travel/2012/02/22/surging-oil-prices-to-cause-price-pain-at-airports#ixzz1n7ZdwOKV
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| Request Looks for ONT Money Answer |
Feb 22, 2012 |
Liset Marquez, Staff Writer dailybulletin.com
ONTARIO - It was a figure that turned many heads - $250 million - which was what Ontario was willing to offer in hopes of gaining autonomy of LA/Ontario International Airport. Most of the multi-million package would be paid back from revenues received once the city had ownership of the airport. But there was still the $50 million offer to dissolve the Joint Powers Authority between the city of Ontario and Los Angeles World Airports.
Just where would that money be coming from? One city official was not ready to specify. Cory Briggs, an attorney for the Ontario Mountain Village Association, is asking that same question - in the form of a California Public Records Request. "The public is entitled to know where the city is hiding $50 million," Briggs said.
http://www.dailybulletin.com/ci_20023286
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| LAWA Official Addresses Friends of ONT |
Feb 17, 2012 |
Liset Marquez, Staff Writer dailybulletin.com
ONTARIO - Friends of Ontario Airport is a nonprofit organization founded more than 40 years ago by local community and business leaders seeking to maintain the success of LA/Ontario International Airport.
http://www.dailybulletin.com/ci_19990892
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| Gas Prices and the Global Airlines Industry |
Feb 16, 2012 |
Economists have begun to voice concerns that the price of gasoline, which is usually high, could damage the U.S. recovery and make the recession in Europe worse. That is probably true. An American who drives 20,000 miles a year faces paying $1,000 more for gas this year than last, based on AAA data, if he has a car that gets average gas mileage. In a state like California, where the price of a gallon of regular gas is nearly $4 a gallon, the number could be closer to $1,300. That is a lot of money for the average U.S. household with an income of slightly over $50,000 a year before taxes.
The consumer’s gas price is only part of the problem. The costs to companies is nearly as bad. That is not evident anyplace more than in the airline industry.
The International Air Transport Association, which is as close to a formal organization as the airlines have as a spokesman, forecast that:
Improving business confidence and encouraging news from the US economy are heartening developments. But it is far too early to start predicting a soft landing for 2012. The euro zone crisis is far from over. Failure to achieve a durable solution will have dire consequences for economies around the world. And it would most certainly tip the airline industry into the red.
http://247wallst.com/2012/02/16/gas-prices-and-the-global-airlines-industry/
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| Lake Elsinore Ducks From Ontario International Airport Turbulence |
Feb 15, 2012 |
Toni McAllister
Lake Elsinore is not standing with the City of Ontario in its effort to gain local control of the international airport located there.
During its regularly scheduled meeting Tuesday night, Lake Elsinore City Council members voted 3-2 against a resolution that would have supported the northern city’s move to take control of Ontario International Airport away from Los Angeles.
http://lakeelsinore-wildomar.patch.com/articles/lake-elsinore-ducks-from-ontario-international-airport-turbulence
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| Flights by U.S. Airlines Hit 10-Year Low |
Feb 15, 2012 |
Reuters
U.S. airlines in 2011 operated the fewest number of flights since the hijack attacks on New York and Washington depressed air travel and accelerated the industry's worst-ever financial downturn, government figures on Tuesday showed.
The overall number of flights by U.S. airlines have steadily declined since 2008 when the recession dampened travel demand. Most recently, stubbornly high fuel prices have prompted airlines to further cut capacity to reduce costs and maintain higher fares.
http://www.reuters.com/article/2012/02/15/uk-usa-airlines-departures-idUSLNE81E00U20120215
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| LA Airports Launches Website To Calm Ontario Dispute |
Feb 14, 2012 |
Dominic Welling
Los Angeles World Airports (LAWA) has launched a new page on its website in a bid to “provide accurate data and facts” about the company’s ownership and management of LA/Ontario International Airport (ONT).
http://www.airport-world.com/news-articles/item/1382-la-airports-launches-website-to-calm-ontario-dispute
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| LAWA Strikes Back In PR War, Promises New Marketing of ONT |
Feb 14, 2012 |
Liset Márquez, Inland Valley Daily Bulletin
Los Angeles World Airports says it wants to set the record straight about its management of the struggling LA/Ontario International Airport.
http://www.contracostatimes.com/california/ci_19957429
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| Debate Over Airport's Future Ramped Up |
Feb 14, 2012 |
LAWA has launched a page on its website that it says will provide accurate data and facts about the underlying reasons for a continuing decline in passenger volume.
http://www.inlandnewstoday.com/story.php?s=22805
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| Online Tug of War is Over Ownership of Ontario Airport |
Feb 13, 2012 |
Art Marroquin
Dubbed "LA/Ontario - The Facts," the page provides links to the Inland Empire airport's financial reports dating back to 2001, along with images and photos of the mid-size hub located about 40 miles east of downtown Los Angeles.
http://www.dailybreeze.com/news/ci_19956148
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| Airlines That Fill 86% of Seats and Still Lose Money on Domestic Flights |
Feb 8, 2012 |
Scott McCartney
On the whole, the cost advantage value carriers have over network airlines is shrinking, as is the revenue advantage network carriers have over the “value’’ group. The two models of airlines are converging in domestic service. Travelers feel that all the time –- cost-cutting at many airlines has led to service declines and tight squeezes in cabins; revenue gains have made flying low-fare airlines more expensive.
http://blogs.wsj.com/middleseat/2012/02/08/airlines-that-fill-86-of-seats-and-still-lose-money-on-domestic-flights/
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Inland Empire Adds Jobs in Sign of Tenuous Economic Recovery
Expert Sees More Construction Hiring on the Horizon |
Feb 7, 2012 |
Economists say a sustainable Inland Empire recovery presents a significant challenge given that the region's job losses were the most severe among the 10 largest California metro areas from 2008 through 2010.
http://www.mydesert.com/article/20120207/BUSINESS05/202070313/Inland-Empire-economy-Southern-California-add-jobs-tenuous-recovery?odyssey=tab%7Ctopnews%7Ctext%7CFrontpage
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| Turbulent Times Continue For Major Airlines |
Updated Feb 03, 2012 |
Adam Harvey
"Fuel is back up to the nasty levels of 2008," he said.
"The other big issue is that air cargo is down significantly, and this is sort of a portent of things to come as far as the world economy is concerned because air cargo is really the barometer of the health of the world's economy." West Australian newspaper aviation editor Geoffrey Thomas
http://www.abc.net.au/news/2012-02-03/aviation-industry-hits-turbulence/3809944/?site=newcastle
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| Airline Passenger Traffic Up Nearly 6 Per Cent In 2011: IATA |
Feb 2, 2012 |
AFP
GENEVA: Global airline passenger traffic rose 5.9 per cent last year despite weak conditions, the International Air Transport Association said today, with 2012 likely to be difficult for the industry.
http://articles.economictimes.indiatimes.com/2012-02-02/news/31017477_1_iata-passenger-traffic-international-air-transport-association
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NASDAQ
US Airways Profit Drops on Fuel Costs, Yet Tops View; Shares Surge |
Jan 31, 2012 |
Airline operator US Airways Group Inc. (LCC), Wednesday reported a decline in fourth-quarter profit, as rising fuel costs offset higher demand and fares.
http://www.nasdaq.com/article/us-airways-profit-drops-on-fuel-costs-yet-tops-view-shares-surge-20120125-01109
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| New York Times: Leaner Operations Give U.S. Airlines a Profitable Year |
Jan 26, 2012 |
Jad Mauawad
Despite everything that has been working against them, from a dismal global economy to rising fuel prices, the nation’s top airlines — United Continental Holdings, Delta Air Lines, US Airways, and Southwest Airlines — all turned a profit last year.
The big airlines all turned a profit in 2011 as they reduced seats and combined higher ticket prices with more fees. Their recipe for success has been straightforward: fewer airlines, fewer planes and fewer seats combined with higher ticket prices and more fees.
http://www.nytimes.com/2012/01/27/business/merger-costs-weigh-on-united-continental.html?_r=2
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| John Wayne Airport Posts December 2011 Statistics |
Jan 26, 2012 |
SANTA ANA, Calif. - Airline passenger traffic at John Wayne Airport decreased in 2011 as compared to 2010. In 2011, the Airport served 697,512 passengers, a decrease of 2.9% when compared to the 718,571 passenger traffic count of 2010.
http://www.ocair.com/NewsRoom/News/2012/NR-2012-01-26.aspx
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| Airwise News: JetBlue Posts Stronger Quarterly Profit |
Jan 26, 2012 |
The industry is in recovery mode after a decade-long downturn that saw several major airlines fall into bankruptcy. But capacity cuts and mergers have helped to trim costs and drive up ticket prices, giving the embattled companies a much-needed toehold on stability.
Despite the renewed industry stability, airlines face high fuel costs and economic troubles that could still disrupt the industry recovery, given their potential ripple effects on travel demand from businesses and consumers.
http://news.airwise.com/story/view/1327612352.html
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| Airwise News: United Continental Q4 Loss Narrows |
Jan 26, 2012 |
United Continental said it had paid USD$3.1 billion for fuel in the quarter, up 26.3 percent from a year earlier.
http://news.airwise.com/story/view/1327611934.html
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| Delta Q4 Profit Soars On Higher Fares |
Jan 26, 2012 |
Joshua Freed, AP
Delta Air Lines' quarterly profit soared as higher fares offset a bigger fuel bill. Like other carriers, Delta was able to raise fares by cutting the amount of flying it did in the fourth quarter. The money it made flying a passenger a single mile rose 12%. Delta's strategy of reducing flying to match demand will continue. The carrier said Wednesday that it will cut flying capacity 3% to 5% during the first quarter of 2012.
http://travel.usatoday.com/flights/story/2012-01-25/Delta-Q4-profit-soars-on-higher-fares-demand/52791112/1
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Bloomberg
Alaska Air Falls as Profit Misses Estimates: Seattle Mover |
Jan 26, 2012 |
Mary Schlangenstein
The Seattle-based airline is the only one of the six biggest U.S. carriers reporting earnings that didn’t top analysts’ forecasts for the quarter.
http://www.bloomberg.com/news/2012-01-26/alaska-air-falls-as-profit-misses-estimates-seattle-mover.html
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| Delta, US Airways Reduce Flying and Raise Fares: Post 2 Straight Years of Annual Profits |
Jan 25, 2012 |
Washington Post, Associated Press
Airlines executives have been saying explicitly that they aim for profits in good times and bad. That’s a change from previous years, when they accepted losses during bad times and hoped to make up for it in boom years, said S&P Capital IQ stock analyst Jim Corridore. Part of that meant adding flights whether or not there was enough demand, just to grab business from competitors.
Now, “they’re looking to make money first, before gaining market share,” Corridore says. That means cutting flying even though demand is up. “That’s going to lead to higher fares,” Corridore says. “It’s a complete change in airline industry executive philosophies.”
http://www.washingtonpost.com/business/industries/delta-us-airways-reduce-flying-and-raise-fares-post-2-straight-years-of-annual-profits/2012/01/25/gIQAeMcGRQ_story.html
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| Fox Business: Delta, U.S. Airways 4Q Profits Fly Past Street Despite Expensive Fuel |
Jan 25, 2012 |
Jennifer Booton
Carriers have been forced to cut down on their flights and increase fees to improve efficiencies in an economic environment that has kept costs high and demand low. For the first-quarter of 2012, the company expects to lower capacity another 3% to 5%.
http://www.foxbusiness.com/industries/2012/01/25/deltas-4q-profit-rises-despite-20-jump-in-fuel-prices/
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| Control of Airport |
Jan 20, 2012 |
My father, Hugh West, in the 1950s was a member of the Ontario Airport Planning Commission as well as an Ontario City Councilman. He and others through their tireless efforts were able to not only save the Ontario Airport but worked to ensure that the facility had a chance to develop ... to move beyond being a small-aircraft, semi-abandoned, former Army Air Corps training field.
At the time Ontario made its deals for Los Angeles to operate the airport, Ontario did not have the money or ability to operate the facility. If it was not for Los Angeles, ONT would not exist as it does.
Whatever Ontario attempts with regard to its interests in "their" airport it should be remembered that there would not be much to fight over if Los Angeles had not taken over the burden of operation for these past 60-odd years. During World War II my mother (Pauline West) worked as a civilian secretary for the U.S Army at the Ontario field. Her stories included seeing the crash of several of the trainer P-38 Lightning fighters and having her Carlton Street home almost hit by an accidentally dropped P-38 fuel tank. At the time my father was fighting through France and Germany with the 94th Cavalry of the 14th Armored Division, not returning home to Ontario to resume his life as a teacher until 1946.
There is a great deal of history as to why Los Angeles has control of "Ontario's airport." I’d like to think that Ontario has grown up some since I turned my back on the city in 2006.
ALAN WEST
Cairo, Neb.
http://www.sbsun.com/ci_19789918?IADID=Search-www.sbsun.com-www.sbsun.com
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| Logan Expects To Set a Record |
Jan 1, 2012 |
Katie Johnston
Debby McElroy, Executive Vice President of the Airports Council International-North America.
“As the economy declined and fuel prices increased, the airlines took a hard look at their system, and in the markets where they had the least profitability, they reduced or eliminated service,’’ she said. “In 2011, almost 500 airports had fewer flights than the previous year, and none of those were large hubs.’’
http://articles.boston.com/2012-01-01/business/30573481_1_logan-officials-passenger-declines-manchester-projects
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| The City Maven: Mayor: Economy to Blame for Problems at Ontario Airport |
Oct 31, 2011 |
"They’re trying to get us to sell our airport for a pittance and I won’t do it. I won’t do it because it’s an asset to the city of Los Angeles and to the region. We believe in that asset and we’re ready to invest in that asset when the economy turns around, but we’re not throwing good money after bad. The fact is right now, let’s be clear, the economy is what has hurt Ontario Airport, not the city of Los Angeles.”
http://www.thecitymaven.com/2011/10/31/mayor-economy-to-blame-for-problems-at-ontario-airport/
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| The Denver Post: Airlines Cut Flights as Jet-Fuel costs Climb |
Sep 24, 2011 |
Ann Schrader
Delta Air Lines said last week that it will reduce flying next year by 2 percent to 3 percent. At American Airlines, flights are being reduced by 4 percent in the fourth quarter in part because of concern about the weak economy.
www.denverpost.com/business/ci_18966311
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| Los Angeles Times: 10 Years After 9/11, The Airline Industry Is Looking Up |
Sep 10, 2011 |
Hugo Martin
"The terrorist attacks that shocked the nation 10 years ago today devastated few industries as much as the airline business. In the decade that followed, U.S. air carriers have been battered by a sharp drop in demand, soaring fuel prices, wars, an outbreak of the deadly SARS virus and a stinging recession — forces that have led to billions of dollars in industry losses.
http://articles.latimes.com/2011/sep/10/business/la-fi-911-cover-sept11-airlines-20110911
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| The Sacramento Bee: Money Matters |
Aug 19, 2011 |
Economic downturn puts a tight squeeze on fliers.
It's not your imagination: The airplane is more crowded than usual.
Responding to the economic downturn, airlines at Sacramento International Airport have cut flights and are packing more passengers onto fewer planes.
http://www.sacbee.com/2011/08/19/3847687/public-eye-elk-grove-and-the-brown.html
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| Business Insider: 2000-2010: The Decline of the U.S. Airline Industry |
Jul 4, 2011 |
Philip Greenspun
Passenger traffic in the U.S. peaked in 2007 and the current traffic levels are about 6 percent below the peak.
http://articles.businessinsider.com/2011-07-04/home/29986242_1_airline-industry-passenger-traffic-pilots
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| USA Today Travel: US Airways Q4 Income Falls as Fuel Prices Climb |
Jan 25, 2011 |
Samantha Bomkamp, AP Airlines Writer
It's just the continuation of a "transformation" to a more stable industry where fare sales are less common, tickets are more expensive and rapid addition of flights is rare.”
US Airways CEO Doug Parker.
http://travel.usatoday.com/flights/story/2012-01-25/US-Airways-Q4-income-falls-as-fuel-prices-climb/52791114/1
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| San Francisco Chronicle: Airline Industry Profit to Decline 40% in 2011 |
Dec 15, 2010 |
Number of the day
40%
That's how much the airline industry's profit is projected to shrink next year, crimped by slower economic growth, higher fuel costs and austerity measures in Europe.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/14/BU921GQJMT.DTL
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| CNN Money: 2009 Airline Revenue: Worst Drop Ever |
Jan 10, 2010 |
Ben Rooney
"The global recession, accompanied by high levels of unemployment, hit air travel demand especially hard in 2009," said James May, ATA chief executive and president, in a statement.
http://money.cnn.com/2010/01/20/news/economy/air_traffic_2009/index.htm
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| New York Times: Airlines Predict $9 Billion Global Loss |
Jun 8, 2009 |
Bettina Wassener
Number of the day
40%
The global airline industry on Monday nearly doubled its forecast for losses this year to $9 billion and warned that the economic problems would continue for some time.
http://www.nytimes.com/2009/06/09/business/global/09air.html
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| Business Insider: Continental (CAL) Confirms: Airline Biz Headed Into Toilet |
Dec 2, 2008 |
Joe Weisenthal
"The airlines can't catch a break. Back when the economy was strong, insanely high oil prices kept them from turning a steady profit. And now oil's low again, but the economy isn't cooperating.
http://articles.businessinsider.com/2008-12-02/wall_street/30028910_1_rasm-continental-load-factor
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