Both in terms of actual cost structures and customer perception, the line between low-cost carriers (LCCs) and so-called legacy airlines has blurred, according to a new report from accountancy group KPMG. The company’s 2013 Airline Disclosures Handbook, published on March 12, showed that the cost gap between LCCs and legacy operators dropped by more than 30 percent between 2006 and 2011, falling from 3.6 U.S. cents to 2.5 cents per available seat kilometer (ASK).
Economics of regulation
In what the Aeronautical Repair Station Association (Arsa) is calling a major victory for the aviation industry, the FAA withdrew its “faulty legal interpretation” of maintenance duty time limitations prescribed in FAR 121.377. Specifically, the agency reversed course on its May 18, 2010 legal interpretation meant to clarify the application of the rest provisions and equivalency standards under the regulation.