This Summer May Be Worst Ever for Air Industry
Fuel Prices May Drive EU Budget Carriers Out of Business
NTSB Finds Cracked Wing Fasteners on US Airways Jets
Frontier Reorganizing Under Chapter 11
“Happiest Place on Earth” Heads to War Zone
THIS SUMMER MAY BE WORST EVER FOR AIR INDUSTRY - Associated Press
As evidenced by already frightening quarterly losses, multiple bankruptcy announcements, delays, rising fares, and route cancellations, this summer could be one of the worst on record for the airline industry—and its travelers. One expert predicts that this summer is “going to be one where you’ve got to plan another day into your travel schedule” simply to allow for unexpected delays and frustrations. With crude oil prices rising drastically, airlines have already responded by raising their ticket prices eight times this year. Delta Airlines CEO Richard Anderson has said that domestic carriers will have to raise fares by 15 to 20 percent “just to break even.” Bottom line: Things may get ugly this summer.
Link: Associated Press
FUEL PRICES MAY DRIVE EU BUDGET CARRIERS OUT OF BUSINESS - Reuters
Rising oil prices will drive most of Europe’s low-cost airlines out of business, the head of EasyJet’s French subsidiary said Wednesday. Francois Bacchetta, managing director of EasyJet France, pointed out in a news conference that there are about “50 low-cost carriers in the European market – that’s absurd.” He said that in just a few years there will be no more than about three or four budget carriers remaining in Europe, including “the most competitive companies” such as EasyJet and Ryanair.
Link: Reuters
NTSB FINDS CRACKED WING FASTENERS ON US AIRWAYS FLEET - CNN
The National Transportation Safety Board (NTSB) announced yesterday that federal investigators found cracked wing fasteners on the US Airways plane that recently lost a wing over Maryland. Additionally, inspectors found cracked wing clips on seven of US Airways’ 18 older Boeing 757s. Though the NTSB says that all the parts have been repaired, they are checking whether or not other aircraft have been affected. Apparently, because the March 22 lost-wing “accident” did not injure any passengers or crew, the NTSB appears to be undermining the severity of the scare, calling it an “incident.” Nonetheless, the NTSB continues to investigate all aspects of the failed parts on the 757s.
Link: CNN
FRONTIER RE-ORGANIZING UNDER CHAPTER 11 - USA Today
Denver-based Frontier Airlines is in the midst of some “re-organizing,” and, according to an announcement made today, is ending a regional jet pact with Indianapolis-based Republic Airways, in addition to canceling service to five cities. Frontier flights to a sixth city have been shelved. As if Frontier didn’t have enough of a financial burden, the airline will be issued a $260 million-damage claim for early-termination of the 11-year contract with Republic, which began in January 2007. Republic CEO Bryan Bedford sympathizes with Frontiers’ woes, conceding, “It’s unfortunate that despite their many efforts to reorganize their business outside of Chapter 11, factors beyond their control conspired to force a deeper reorganization.”
Link: USA Today
“HAPPIEST PLACE ON EARTH” HEADS TO WAR ZONE – The Times (UK)
A 50-acre permutation of Disneyland is heading to downtown Baghdad, taking the place of the now war-torn Baghdad zoo. Llewellyn Werner, chairman of C3—a Los Angeles-based holding company for private equity firms, will help get the Baghdad Zoo and Entertainment Experience up and running. Costing $500 million, the Experience will include a skateboard park, rides, concert theater and a museum. Commenting on the social implications of the park, Werner explains that, “The people of Iraq need this kind of positive influence. It’s going to have a huge psychological impact,” Mr Werner said.
Link: The Times (UK)
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