US Airways executive vice president Steve Johnson last month
said he was hopeful the carrier's slot-swap proposal with Delta Air Lines could
be resolved early next year. The carriers in July appealed U.S. Department of
Transportation conditions on a proposal to trade some of US Airways' New York
LaGuardia Airport slots for some of Delta's at Ronald Reagan Washington
National Airport. "That process is working its way through the court
system," said Johnson, noting that he expects the carriers to present oral
arguments before the circuit court "sometime before early next year,"
after which the court would likely rule on the case "in three or four
months' time." Encouraged by discussions with DOT, Johnson said recent
developments change the complexion of the slot-swap deal, including Southwest
Airlines' pending acquisition of AirTran Airways, a JetBlue Airways-American
Airlines slot swap between Washington National and New York John F. Kennedy
International Airport and the merger between United Airlines and Continental
Airlines, through which Southwest gained slots at Newark Liberty International
Airport. "As a result of those deals, slots have continued to evolve into
the hands of the low-cost carriers, and both greater New York and greater
Washington have gotten less concentrated and a lot more competitive,"
Johnson said, noting he was confident Delta and US Airways would be able to
complete the deal without forfeiting slots.
DOT Allocates More
High-Speed Rail Funding
Fifty-four high-speed rail projects in 23 states would "share
in $2.4 billion to continue developing America's first nationwide program of
high-speed intercity passenger rail service," the U.S. Department of
Transportation announced last month. DOT allocated much of the money to
California and Florida, $901 million and $800 million, respectively. As part of
the American Recovery and Reinvestment Act, an initial down payment of $8
billion was set aside for high-speed rail. Applicants during the first round of
awards last fall submitted project proposals totaling $55 billion. This time,
the Federal Railroad Administration received 132 applications from 32 states
totaling $8.8 billion, surpassing not only the $2.4 billion made available in
the first round, but also the entire allocated amount for nationwide
development. "Demand for high-speed rail dollars is intense and it
demonstrates just how important this historic initiative is," according to
a statement from DOT Secretary Ray LaHood. "States understand that
high-speed rail represents a unique opportunity to create jobs, revitalize our
manufacturing base, spur economic development and provide people with an
environmentally friendly transportation option." Others that received a
portion of the $2.4 billion are Iowa ($230 million) and Michigan ($161
million).
Lufthansa Boosts
Capacity For The Winter
Lufthansa provided further evidence that some airlines are
abandoning their cautious capacity strategies from the recession by announcing
that its winter 2010/11 schedule will offer 9.1 percent more seats than last
year. The significant expansion results from a combination of 3.5 percent more
weekly flights, providing 12,218 seats, and the introduction of larger
aircraft, including four Airbus A380s, to its long-haul and regional fleets.
Figures from airline schedule publisher OAG indicated that seat numbers
globally were up 11 percent in September from 2009 levels, but the relentless
expansion of Middle Eastern carriers and the Asian market created much of the
growth. Airline analyst Chris Tarry said that large increases in capacity,
especially through bigger aircraft, could bring fares down. "Broadly
speaking, if you switch to a larger aircraft and are flying it with the same
crew, then it is not going to cost the airline any more, so it ought to be able
to offer cheaper seats," he said. Germany's flag carrier added three
routes to its network for the winter schedule, which started on Oct. 31:
Frankfurt-Bogotá, Munich-Luxembourg and one between Frankfurt and Pointe Noire
of the Republic of the Congo, which will be operated in a two-class
configuration by Privatair. It also converted some summer-only routes, such as
Munich-Montreal, to year-round schedules. Lufthansa will serve 191 destinations
in 85 countries.
GSA To Roll Out
Telepresence Systems In 11 Offices
The U.S. General Services Administration last month
announced plans to install telepresence systems in 11 regional headquarters
offices. Aimed at reducing greenhouse gas emissions, the centers will be
operational in early 2011 for use by all federal agencies, according to GSA.
AT&T will develop and manage the virtual network for an estimated $18
million, while Cisco Systems will provide the telepresence equipment, according
to an official.
This report appears in
the Nov. 8 issue of Business Travel News.