The regional airlines became an economic safety net of sorts after September 11, when the majors quickly realized they could not survive flying large airplanes nearly empty. The options–cut flights and market presence entirely or replace mainline jets with smaller aircraft–presented airlines with a clear course of action. Code-sharing regional airliners quickly delivered cost-effective solutions.
Economy of the United States
The September 11 terrorist attacks on the World Trade Center and Pentagon set the stage for an upheaval in the U.S. airline industry unseen since the dawn of deregulation. But while virtually no one besides the enemies of America welcomed the negative economic effects, some airlines may very well emerge from the crisis in a stronger competitive position.
The sagging market valuations of airlines across the U.S. since September 11 have prompted Continental Airlines to reconsider plans to spin off its wholly owned regional subsidiary into an independent entity. As a result, the airline has postponed its planned initial public stock offering of ExpressJet from parent company Continental Airlines until market conditions warrant renewed consideration of such a move.
Less than six months after Shuttle America filed for Chapter 11 bankruptcy protection, the Windsor Locks, Conn.-based de Havilland Dash 8 operator signed a new code-share agreement with US Airways covering new service from Boston Hanscom Field to Philadelphia and Trenton, N.J.
Benjamin Murray has a vision for the future of Executive Jet Management (Booth No. 1023). As the newly appointed president and CEO, he would like to see the fleet size double to more than 200 airplanes over the next two years and expand the company to include a high-end boutique Part 91 aircraft management business.
To celebrate its 25th anniversary, CRS Jet Spares is giving 15 finalists a chance to win a 2007 Ford Mustang GT convertible.
Pilot attrition proved the bane of the U.S. regional airline business during the first half of the year, forcing flight cancellations that cost carriers not only passenger revenue and goodwill, but performance penalties under the terms of their mainline code-share contracts. Judging by the sentiments airline CEOs expressed recently, better recruiting and training efforts have stopped the proverbial bleeding.
Kevin O’Donnell has been appointed president of Crownair Aviation. He previously served as CEO and CFO.
EADS Socata has appointed Jean-Michel Leonard chairman and CEO. He succeeds Stephane Mayer, who was appointed CEO of turboprop airliner manufacturer ATR.
Making its first appearance at a global aerospace exhibition since being acquired by Boeing last September, equipment and parts distributor Aviall (Hall 5 Stand A17) is promoting key elements of its range of general aviation, airline and military product lines. Exhibits here include Goodyear aircraft tires, Keddeg and PTI filtration products, Otto Instruments turbine engine wiring harnesses and batteries from Teledyne Battery Products.
The Brotherhood of Teamsters, Local 1108, which represents pilots for fractional provider Flight Options, claimed last month that some pilots were fired for their inability to receive Canpass authorization. According to the union, Flight Options management recently fired or otherwise forced out about half a dozen pilots over what
it said amounted to simple traffic violations.