Air Transport Association of America (ATA) announced (01-Sep-2010) Hurricane Earl is now a category 3 hurricane and is expected to hit the US East Coast on 02-Sep-2010 and 03-Sep-2010. AirTran, Frontier Airlines, Continental Airlines and Delta Air Lines released statements concerning services affected by the hurricane. [more - ATA] [more - AirTran] [more - Frontier] [more - Continental] [more - Delta]
ATA issues Hurricane Earl travel advisories
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US airlines and the Cuba route awards Part 1: The US DoT slices up many pieces of the Havana pie
US regulators have decided to spread Havana award rights among eight operators – a mix of global full service airlines, medium frills low cost carriers and ULCCs. Unsurprisingly, given the concentration of Cuban Americans residing in the region, South Florida features prominently in the tentative award approvals.
In theory, the DoT’s proposed route structure ensures that customers travelling to Havana have access to a wider range of fare prices and product offerings. In many respects the agency had little choice but to accommodate as many airlines as possible for service to Havana – in order to ensure that consumers had an array of service providers as scheduled air service resumes between the US and Cuba.
There may be some quibbles regarding the tentative route awards to Havana, but the route composition proposed by the DoT is not likely to change drastically. The agency’s route dispersal reflects certain expectations that the agency would institute a certain level of competitive diversity on new services to Havana.
(This is Part 1 in a series examining US-Cuba route awards. Part 2 will examine markets other than Havana)
Allegiant Air weathers the prickly dynamics of a low fuel environment. Expects steady growth ahead
Although Allegiant Air has tweaked its unique business model during the last couple of years to capitalise on vacancies in medium-sized markets, opportunities remain for the airline in the more typical small markets that it links to its large leisure destinations. Its growth strategy is to operate a mix of those smaller routes and continue to add medium-sized markets when the opportunity arises.
The company may find increasing competition from US ULCCs that contemplate entering larger markets, but Allegiant believes that it can continue to grow in markets that Spirit and Frontier do not find attractive, and also that it has other structural advantages over those airlines.
Allegiant has not escaped the unit revenue pressure plaguing US airlines, but similarly to those airlines the company believes that it can achieve improvement in that metric during 2016. As it has previously noted, some of the revenue weakness is driven by Allegiant’s own growth which, the company stresses, is earnings accretive.