Southwest Airlines Pilots' Association (SWAPA) applauded (13-Jun-2011) Southwest Airlines' recognition of their collective bargaining agreement with the pilots and the contract's prohibition of domestic codeshare. The codeshare agreement with SkyWest is a contract violation and the pilots of Southwest are pleased that the company chose to honor the negotiated agreement in a timely fashion. The termination of the SkyWest codeshare with AirTran allows both SWAPA and Southwest Airlines to concentrate and devote their collective energies on the tasks at hand. [more]
Southwest pilots applaud termination of SkyWest codeshare
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Norwegian Air's NAI at last gets final approval of US rights in a boost to long haul growth
On 2-Dec-2016 the US Department of Transportation (DoT) served an order granting Norwegian Air International (NAI) a foreign air carrier permit, as required by the EU-US open skies agreement, to which Norway is a party. Almost three years after NAI's application it seems that the EU's 30-Nov-2016 filing for arbitration finally panicked the DoT into finalising its tentative approval given eight months ago.
Since launching long haul operations in summer 2013 Norwegian has grown its long haul network to 37 routes operated in 2016. In spite of the delay in receiving the US permit for NAI, 34 of these routes are between cities in Europe and the US. The only Asian destination is Bangkok, linked to the three Scandinavian capitals.
The DoT's final decision means Norwegian can now use its Irish-registered subsidiary NAI to fly long haul routes from Europe to destinations both east and west with the same operating airline, and with EU traffic rights in both directions. This should increase its operational flexibility and cost efficiency and allow lower fares on a greater number of routes. Norwegian already has ambitious long haul growth plans. Expect these now to accelerate further, and not only to the US.
Alaska Air Group: locked in limbo until the government renders a decision on Virgin America merger
Alaska Air Group remains in limbo as it waits for the US Department of Justice (DoJ) to complete a review of the proposed Alaska-Virgin America merger. Alaska had originally hoped to gain government approval and close the deal in early 4Q2016, but the regulatory review unsurprisingly is taking longer than expected. However, Alaska remains confident of finalising the arrangement before the end of 2016, and is taking the proper financial steps to finance its acquisition of Virgin America.
In the short term Alaska is experiencing slightly improving trends in the US marketplace, and its unit revenue improved on a sequential basis from 2Q2016 to 3Q2016. Another positive development for Alaska is a slowing of competitive capacity growth in its markets in 4Q2016 and in early 2017. The tempering of growth is reflective of most US airlines planning to lower capacity expansion in 2017 as higher oil prices heighten the importance of returning to positive unit revenue.
Alaska also plans slower capacity growth of 7% in 2017, versus 8.5% in 2016. Approximately 3ppt of the increase is driven by longer stage lengths and the annualisation of nearly 10 new routes launched in 2016 – a mix of smaller and larger markets with varying levels of competition.