There is no short-term fix for the high price of oil, concluded panelists at the Air Service Energy Summit, held on July 10 in Washington, D.C.
For years major airline executives have recognized their regional affiliates’ potential to take a more active role in serving markets that until recently occupied the exclusive domain of mainline operations. But limited labor resources and influential pilot unions curbed efforts to penetrate the artificial barrier between mainline and regional flying.
George Bagley, president and CEO of Horizon Air since 1995, has accepted the position of executive vice president of operations at Alaska Airlines, leaving the top post at Horizon to the airline’s former v-p of customer services, Jeff Pinneo. Bagley, 56, will report directly to Alaska Airlines president William Ayer, who recently became CEO as part of Alaska Air Group’s recent “comprehensive executive succession plan.”
American Eagle has begun cutting capacity among its Saab 340 and ATR turboprop fleets to comply with a clause in the American Airlines pilot contract that requires the company to freeze its regional subsidiary’s ASMs. The reductions in turboprop capacity come as the airline introduces its new fleet of 70-seat Bombardier CRJ700s, the first of which entered service January 31 on routes between Dallas and Oklahoma City and Houston.
There’s that old saying, “It’s an ill wind that blows nobody any good.” And if ever there was an ill wind, it’s the one that has been generated by the price of oil and its effect on the airlines. But that same wind is bringing new opportunities to business aviation, with the prospect of expanded operations and the likelihood of added airplanes to the industry’s fleet.
A private equity investment and advisory firm has been founded by William Koch. Sutherland Companies, based in Dallas, will specialize in investments in aviation-related companies through its Sutherland Ventures group.
The development of a composite and metal bond component repair station is in progress in the Asia-Pacific region as a joint venture between Spirit AeroSystems and several major aviation companies.
Spirit will partner with Hong Kong Aircraft Engineering Company and its subsidiary, TAECO, along with Oklahoma-based First Wave MRO, to establish a regional service center near TAECO’s facility in Xiamen, China.
Some $10.1 million in direct government aid allowed Midway Airlines to reopen for business December 19, but its days as a regional/national hybrid operating Bombardier CRJs alongside its mainline jets appear to be over.
As Chautauqua Airlines took delivery of its first four 44-seat Embraer ERJ-140s on December 1, the Air Line Pilots Association prepared to intensify efforts to bar the Indianapolis-based airline–or any carrier other than American Eagle–from providing feed for American Airlines under the American Connection marketing identity.
American Eagle last month announced plans to launch regional jet service from Los Angeles International Airport (LAX) beginning next month, with service to Albuquerque, N.M., Phoenix and Oakland, Calif. A long-time turboprop operator at LAX, American Eagle plans to provide the service with new 44-seat Embraer ERJ-140s.