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Airport Report Today, October 31, 2011

April 10, 2012
Airlines Collect $1.5 Billion In Fees
U.S. airlines collected $1.5 billion from baggage fees and reservation change fees in the second quarter of this year, according to DOT.
 
The airlines received $887 million from baggage fees and $612 million from reservation change fees during the period. DOT said that these are the only fees paid by passengers that it can identify separately. All other fees paid by passengers are combined in larger categories with other types of revenue.
 
In July, DOT issued a notice of proposed rulemaking to require airlines to report 16 additional categories of fee revenue to provide more pricing information to consumers and airline analysts.

 
Carriers Post Third-Quarter Profits
United Continental Holdings, US Airways and JetBlue last week all reported third-quarter profits despite sizeable increases in the price paid for fuel during the period.
 
United Continental posted a $773 million profit, excluding $120 million of net special items consisting primarily of merger-related costs. Company President and CEO Jeff Smisek noted that the merger “is going well as we approach two significant milestones: our single operating certificate, which we expect to achieve by the end of this year, and our single passenger service system, which we expect to implement by the end of the first quarter of next year.”
 
US Airways reported a net profit of $76 million for the quarter, which compares with the third-quarter 2010 net profit of $240 million. Carrier Chairman and CEO Doug Parker stated, “Looking forward, we see continued strong demand in the fourth quarter.”
 
JetBlue recorded a $38 million profit for the quarter, excluding a one-time item, which compares with the company’s third-quarter 2010 profit of $59 million. Carrier President and CEO Dave Barger said the company generated record revenues “despite challenging economic conditions and severe weather.”

 
Testing Begins On Portland’s Deicing System
Following two years of construction, testing is now underway on Portland (Ore.) International’s newly expanded deicing stormwater collection system, the airport said.
 
The expanded system increases the existing storage capacity for concentrated and dilute runoff, and allows treatment of a portion of the runoff prior to discharge to the Columbia River or the sanitary sewer system in compliance with permit requirements, the airport said.
 
The expansion includes a new 3-million-gallon concentrated runoff storage tank, two 6.5-million-gallon dilute runoff storage tanks, and three pump stations. Also included is a new treatment facility, more than six miles of underground piping, and an outfall to the Columbia River.

 
Lambert St. Louis Continues Terminal Repairs
New windows are being installed on the south side of Lambert St. Louis International’s Terminal 1 as the airport continues restoration of facilities that were damaged in April’s tornado.
 
According the airport, more than 15,500 square feet of new glass will be installed within the original floor-to-ceiling window framing of the terminal. The new windows were designed to fit into the existing curtain wall framing, which has reduced costs and preserved the historic façade of the terminal. The $900,000 window project is scheduled to be completed by the end of November.

 
Boeing Commercial Airplanes Has Profitable Quarter
Boeing Commercial Airplanes announced that it achieved a 9 percent increase in third-quarter revenue due to higher deliveries and an improved mix of aircraft.
 
During the period, the 787-8 and 747-8 Freighter completed flight testing activities and achieved FAA certification. In September, the first 787 Dreamliner was delivered to launch customer ANA, and in October the first 747-8 freighter was delivered to Cargolux.  
 
The commercial unit of Boeing booked 255 net orders during the quarter and 426 during the first nine months of 2011, according to the announcement.

 
Commerce Adjusts Visitor Arrival Forecast
International visitor arrivals to the U.S. are expected to increase by 5 percent-6 percent annually over the next five years, according to a new forecast released by the U.S. Department of Commerce.
 
This report updates an earlier forecast released in May. That report predicted international arrivals to grow by 6 percent-8 percent annually through 2016. Commerce said that the revision “reflects a downward reassessment of key arrival markets.”
 
Year-to-date, the travel and tourism trade surplus has increased 31 percent from 2010, putting it on track to set a record trade surplus of $41 billion, according to the department.
 
Commerce also projected that a record 64 million international travelers will spend $152 billion during their U.S. visits this year, an increase in spending of 13 percent from 2010.

 
DOT Fines Carriers For Advertising, Baggage Violations
DOT has fined two foreign-flag airlines for violations of U.S. rules that protect air travelers.
 
The department fined Caribbean Airlines, a carrier based in Trinidad and Tobago, $60,000 for limiting reimbursements for lost, damaged and delayed baggage to less than consumers were entitled.
 
In a second case, DOT fined Chile’s LAN Airlines $50,000 for violating rules that prohibit deceptive price advertising in air travel. DOT rules require any advertising that includes a price for air transportation to state the full price to be paid by the consumer, including all carrier-imposed surcharges. For a period of time this year, LAN used a program on its website that allowed consumers to search for flights by exact dates or by flexible dates.
 
When passengers made searches, LAN provided air fare quotes along with a note that the fares did not include taxes or fees. However, the page containing the quotes did not indicate either the type or amount of the fees, and there was no link that took consumers to information about the additional charges, DOT said.

 
American, Transport Workers Union Reach Accord
American said it has reached a tentative contract with the Transport Workers Union covering the airline’s fleet service and ground service employees.
 
The carrier said that the accord provides the employees with increased compensation and other benefits such as additional holidays, sick leave and vacation. Further, American said that the agreement gives the company additional productivity and better aligns its work rules with all other airlines through outsourcing some work. The employees currently performing these jobs will be reassigned to other duties.

 
FAA Creates Website For Laser Reports
FAA has created a new website to make it easier for pilots and the public to report incidents of lasers directed at aircraft.
 
The website, which can be found athttp://www.faa.gov/aircraft/safety/report/laserinfo/, collects a wide range of laser information into one location. It includes links for reporting laser incidents, laser statistics, FAA press releases, and FAA research on the dangers lasers can pose to pilots, as well as downloadable videos.

 
American Signs Code Share With Air Pacific
American and Fiji-based Air Pacific have signed a codeshare agreement that will give American’s customers more travel options throughout the South Pacific and Air Pacific customers easier access to major business centers in the U.S.
 
Pending U.S. government approval, expected within the next 30 to 60 days, American will place its code on Air Pacific flights in the following markets: Los Angeles-Nadi, Honolulu-Nadi and Nadi-Suva, while Air Pacific will place its code on nearly 20 new destinations to cities flown from American’s Los Angeles hub.

 
ANTN Digicast Program Highlights
Check out ANTN Digicast for all your training needs. Log in this week to watch Segment 4 of Update on the Americans with Disabilities Act, a six-segment series on human resource issues for airport management. Not yet a Digicast subscriber? Contact Trina Hadden at (703) 824-0
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