As the tragic events of September 11 unfolded in New York City and Washington, D.C., the potential effect on the regional airline industry’s bottom line paled in significance to the loss of life and the implications to global peace. But as the days wore on and the initial shock of the tragedy subsided, the recognition of the profound changes in store for the entire air transport business became painfully apparent.
UAE low-fare carrier Air Arabia yesterday ordered 34 Airbus A320 single-aisle airliners, with delivery to begin in 2012, and took options on an additional 15. Delivery of the aircraft will eventually more than triple the carrier’s current fleet of 10 leased A320s. Chief executive Adel Abdullah Ali, said Air Arabia’s fleet will double by 2010 and grow to 50 by 2015.
Saudi Arabian Airlines has signed a MoU for 22 A320 narrowbodies, heralding the eventual signing of the first order by the Kingdom’s flag carrier for Airbus airplanes in some two decades, Airbus announced here yesterday. The agreement allows the flag carrier to increase the order by eight aircraft of the same type.
The FAA now doesn’t expect domestic commercial air travel to return to pre-9/11 levels until 2006, and its earlier forecasts that U.S. airlines would be enplaning one billion passengers a year by 2010 have been pushed back to at least 2014.
The bankruptcy administrators in charge of the operations of Ansett Airlines subsidiary Kendall Airlines and independent Ansett affiliate Hazelton Airlines have accepted a A$500,000 ($275,000) deposit from Australiawide Airlines as part of a tentative purchase agreement for both carriers.
As the air transport industry slowly recovers from a sagging global economy and persistent geopolitical unrest, regional airlines have recast themselves as agents
for change in a business often criticized for its inflexibility and lack of fiscal discipline.
UK regional carrier British European Airlines hopes to marshal more active support ofairframe manufacturers as it considers a larger, longer-range replacement for its BAe 146s.
Local politics–not economic necessity or distance from commercial centers–might influence the administration of Europe’s public-service obligation (PSO) air service contracts more than any single factor, according to an academic report for Scotland’s Highlands and Islands (H&I) regional authority.
Following recent restructuring, British Airways wholly owned regional subsidiary BA CitiExpress (BACE) “is on track to stop the bleeding,” but will need at least another year to meet profitability targets, company officials predict. The airline has made
Some charter companies are reporting new interest and bookings as a result of last month’s terrorist attacks. Demand is reportedly up in response to more time-consuming airline check-in security requirements, as well as the perception that charter will provide better security. One wire story said a charter service in Southern California reported a 110-percent increase in customer calls.