News Briefs

World Airline News, July 27, 2001

* Spanish government corporation SEPI has extended a deadline that it set for its decision on the future of Argentinian airline Aerolineas.

SEPI had earlier stated that it would withdraw funding for Aerolineas on July 23, which would have meant liquidation for the airline if a suitable purchaser could not be found (WAN, July 13).

In announcing the postponement of the deadline, SEPI said that it is considering seven offers for a 92 percent share of the airline.

* There was not much progress towards an Open Skies agreement between the U.S. and Hong Kong following a recent visit by U.S. negotiators.

A U.S. government source told World Airline News that although the discussions were cordial and informative, a "difference in approach" still exists. The U.S. wants to establish an Open Skies treaty, but Hong Kong is still committed to gradual liberalization.

At press time, Open Skies talks were expected to be held with Japan on July 25-26.

* The latest version of the U.S. Federal Aviation Administration's Spring/Summer plan has resulted in delay reductions since it began in February, according to the a statement from the Department of Transportation (DOT). In the last three months, delays were down by 11 percent compared to the same period last year, and ground stop delays were reduced by 24 percent, the DOT claims.

* The Air Transport Association (ATA) released new data indicating that average airfares declined 8.3 percent in June. Coach fares were down 8.4 percent and first-class fares dropped 7.3 percent.

"Airline ticket prices declined in June, wrapping up a challenging second quarter for the airline industry," said ATA Chief Economist David Swierenga.

Swierenga predicted in May that because of continuing soft demand, airlines would find it difficult to raise prices to compensate for increasing costs fueled by record labor contracts.

Domestic Airfare Report, ATA Member Airlines (Excluding Southwest)
-         First class
         Average one-way      Yield            Annual price
         fare ($)             (cents)          change (%)
2000
June       253.17              25.32             --
Jan-June   253.89              25.39             --
2001
June       234.79              23.48            -7.3
Jan-June   249.95              25               -1.6

-           Coach
-           Average one-way    Yield (cents)    Annual price
            fare ($)                            change (%)
2000
June        130.97              13.1              --
Jan-June    131.91              13.19             --
2001
June        119.93              11.99             -8.4
Jan-June    127.72              12.77             -3.2

-           Average
-           Average one-way    Yield(cents)      Annual price
            fare ($)                             change (%)
2000
June        143.58               14.36               3
Jan-June    145.4                14.54               2.5
2001
June         131.62               13.16             -8.3
Jan-June     141.05               14.1              -3
Data based on 1,000 mile trip, not including aviation taxes.
Source: ATA