US' Federal Communications Commission (FCC) chairman Tom Wheeler stated (21-Nov-2013) the agency is considering an increase in passengers' access to mobile broadband while on-board, stating: "Modern technologies can deliver mobile services in the air safely and reliably, and the time is right to review our outdated and restrictive rules." Association of Flight Attendants-CWA (AFA) stated the FCC "should not proceed with this proposal" with concerns aviation safety and the air cabin environment could be jeopardised. JetBlue Airways spokesman Morgan Johnston said customer feedback indicates passengers may not welcome the FCC proposal, although the carrier would ensure the cabin was welcoming for both those using mobile services and those wanting "peace and quiet" (Associated Press, 22-Nov-2013). The FCC will work closely with the FAA and the aviation industry reviewing the new mobile opportunities. [more - original PR - FCC] [more - original PR - AFA]
US Federal Communications Commission to consider increasing on-board mobile access
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CAPA Americas Aviation Summit – navigating uncertainty in the era of Trump and changing tides
Aviation industry leaders and stakeholders will debate the shape of aviation in the Americas in a post Trump world. There is only one event in North America this year offering great insights into new trends and challenges emerging from the new US presidential administration and the churning global aviation markets. This takes place at the annual CAPA Americas Aviation Summit, to be held in Orlando, Florida on 4/5-April-2017.
The next few years for aviation in the Americas are filled with uncertainties, ranging from potential fallout from President Trump’s trade and travel policies to Brexit and the future shape and direction of US-China aviation relations.
“Information is the resolution of uncertainty” - Claude Shannon. Don’t miss this opportunity to gather crucial intelligence necessary for shaping the Americas aviation industry during the next decade.
Highlights from the comprehensive summit include:
jetBlue Airways reluctant to cut capacity despite uncertain revenue performance outlook
jetBlue Airways had a tough start to 2017, projecting a unit revenue decline of 8% to 9% for the first month of the year. The airline’s Jan-2017 unit revenue performance sets the stage for an overall negative performance in 1Q2017, and the company is offering little visibility into its outlook for 2Q2017.
The airline has outlined various factors for the surprising unit revenue decline for Jan-2017, including timing of YE2016 holidays, its new service to Cuba, and additional service from Newark Liberty International. After the less than stellar results for Jan-2017, investors were looking for jetBlue to offer remedies for the weak performance, but for the moment the company is keeping its 2017 capacity projections intact. The back and forth is a classic example of markets demanding immediate action when airlines aim to take a more measured approach in adjusting their strategies.
Investors are already concerned about the overall financial performance of US airlines in 2017 as unit costs are rising faster than unit revenues. jetBlue is facing its own cost inflation during 2017, and its rocky start will result in its revenue performance being closely scrutinised, with the potential calls for capacity cuts growing louder.