Austin-Bergstrom International Airport
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- United States of America
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- 3733m x 46m
2743m x 46m
- Airlines currently operating to this airport with scheduled services
- ABX Air
Delta Air Lines
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Austin-Bergstrom International Airport serves the city of Austin, Texas, USA. The airport ranks among the largest in Texas, with direct links to major cities across the country. Southwest Airlines is a major operator at Austin, as are the regional subsidiaries of the US majors.
Location of Austin-Bergstrom International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Austin-Bergstrom International Airport
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33 total articles
A likely major focus for the US ULCC Frontier Airlines in 2017 is forging collective bargaining agreements with two of its largest employee groups – pilots and flight attendants. Although the airline’s transition to the ULCC business model is complete, Frontier’s employees weathered several challenges prior to the strategy change, including a bankruptcy during 2008 in which the company was sold. Now employees believe they should share in Frontier’s newfound profitability. When the company reaches new collective bargaining agreements with its pilots and flight attendants Frontier will face the challenge of offsetting the cost inflation generated by those new labour deals with higher revenue generation.
Frontier’s financial turnaround has spurred speculation during 2016 that the airline’s majority owner Indigo Partners was preparing the company for an initial public offering. Nothing has materialised in 2016 but Indigo has expressed interest in investing in other regions, so an IPO could become a more distinct possibility in the not too distant future.
As a privately held company Frontier does not offer forward-looking guidance on capacity growth or network plans, but it appears the airline should post double-digit increases in seat expansion for 2016, and with a steady stream of Airbus deliveries planned for 2017 Frontier’s growth for the year is likely to remain similar to 2016 levels.
Although Allegiant Air’s niche model differs from those of the majority of US airlines, the company has not been immune from the weaker pricing environment that has engulfed the US industry during the past year. Similarly to many US airlines Allegiant is beginning to see improving trends in the US market, and believes it can attain positive total unit revenues by mid-2017 as its own capacity growth slows and certain routes within its network mature.
Allegiant is facing pressure on its 4Q2016 unit revenues driven by effects from operational disruptions that were triggered by Hurricane Matthew and the timing of the Christmas holiday. But if the company reaches the lower end of its quarterly unit revenue guidance, Allegiant’s sequential improvement in unit revenues during 2016 will continue for the final three months of the year.
A new pilot agreement and other items are creating pressure for Allegiant in its unit cost performance in 4Q2016 that could continue into 2017. One cost area where Allegiant should see relief is in its maintenance expense, as the phase-out of its older MD-80 aircraft begins in full force.
Mexico’s largest airline, Aeromexico, plans slightly higher capacity growth in 2016, mostly driven by added frequencies to its long haul markets in Asia and Europe. Its preliminary guidance shows an ASK increase in the low single digits versus 8% growth in 2016. Similarly to 2016, much of Aeromexico’s capacity should be deployed to international markets as the airline sheds three Boeing 777 widebodies and adds five 787-9s to its fleet.
Aeromexico and Delta continue to believe US regulators will approve their immunised cross-border joint venture by YE2016, and are planning to increase their combined daily flights between the two countries by 43% during the next two years. The joint venture is a major pillar of Aeromexico’s transborder strategy going forward as Delta prepares to exert more influence over Aeromexico’s strategy. Some of Aeromexico’s and Delta’s rivals are lobbying for the two airlines to relinquish more slots at Mexico City Juarez, which could become a factor in the government’s final decision.
In the near term Aeromexico’s outlook is relatively stable, despite continuing challenges from the depreciation of Mexico’s currency. The airline’s revenue generation for the 9M ending Sep-2016 was favourable, driven by increases in yields and load factors.
NOTE: This report was prepared before the DoT issued its decision in the Aeromexico-Delta joint venture
The US has been a key market for the Mexican low cost airline Volaris since the company launched transborder service in 2009, reflected in the more than 23 US markets the airline presently serves. For many years Volaris’ transborder push originated in other bases outside Mexico City, given slots constraints at Juarez International airport and previous caps on the number of airlines serving transborder routes from Mexico City.
But in 2017 Volaris is entering more contested markets, taking advantage of a new US-Mexico bilateral that lifts restrictions on the number of airlines operating on some routes between the two countries. It is upping competition with its Mexican rivals Aeromexico and Interjet on services from Mexico City, as well as with the large US global network airlines.
It is not clear if the routes will absorb the additional capacity added by Volaris, but the airline will be the only ULCC operating on those routes, betting it can stimulate traffic with its ultra-low cost model in the already crowded markets.
Frontier Airlines began 2016 making meaningful strides in its on-time performance, besting its closest US ULCC rival Spirit Airlines. But its performance in the busy summer months of Jun-2016 and Jul-2016 slipped, due largely to challenges in ground handling. Now Frontier faces the task of restoring its OTP to consistently higher levels.
Frontier’s network composition is slightly different from those of the two other US ULCCs, Allegiant and Spirit. Its average weekly frequencies fall between those offered by its ULCC counterparts and, in some ways, Frontier’s network changes seem more rapid than those of other ultra-low cost airlines as it works to tailor the ULCC model to its specific strategy.
As a privately held company, Frontier does not discuss its growth prospects as freely as Allegiant and Spirit. But the airline has an ample pipeline of Airbus deliveries that will drive its growth over the medium to long term. During the past year the prospect of an IPO to fund Frontier’s growth has surfaced and quietened down; but at some point in the not-too-distant future the company’s investors will seek rewards for their endeavours.
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.