NewsRepublic Airways To Sell Frontier For USD$145 Mln.Republic Airways Holdings said on Tuesday it would sell Frontier Airlines to private equity firm Indigo Partners in a deal valued at about USD$145 million. The agreement ends a two-year-long search by Indianapolis-based Republic to unload Frontier, which it bought out of bankruptcy in 2009. Phoenix-based Indigo will pay USD$36 million in cash for the equity of Frontier Holdings and assume Frontier's debt.
LinkAir France-KLM May Help Alitalia - ReportAir France-KLM said it was open to merging with Alitalia in a move seen as the best solution for turning round the loss-making Italian airline. But both sides said any tie-up would depend on certain conditions being met first, as time runs out for indebted Alitalia. Italy's government and Alitalia shareholders have been betting on Air France-KLM raising its stake from 25 percent and possibly even taking control of the company. But there are disagreements over financial commitments and a possible business strategy for the Italian group should a merger go ahead, sources familiar with the matter said.
LinkNorwegian's Grounded 787 May Fly Again This WeekNorwegian Air Shuttle said its grounded Boeing 787 Dreamliner could return to short haul service later this week and is so confident in the aircraft it will probably order more. Norwegian chief executive Bjorn Kjos said the 787 was a better aircraft than advertised but Boeing was unprepared to cope with its teething problems. Other budget airlines will flock to it once the jet's reliability is improved because it has performed so well the business case for long haul flights is better than expected, he said. Norwegian, Europe's third biggest budget airline, grounded one of its two 787s on Saturday, a month after delivery, calling in Boeing to fix the plane after a string of hydraulic and electrical issues left passengers stuck at long-haul destinations including New York and Bangkok.
LinkLimited Air Travel Impact From Government ShutdownAir travel in the United States should not see a big impact from the government shutdown, since passport inspectors, security officers and air traffic controllers will all continue to work as usual. The Department of Homeland Security said that most employees of the Transportation and Security Administration (TSA) and Customs and Border Protection are exempt from furloughs that will be put in place as a result of the shutdown. As a result, screening of passengers at airport screening checkpoints will continue as usual. On the other end of the flight, agents will still be staffing passport controls at US borders and points of entry into the United States. Visas for foreigners who want to travel to the United States will still be processed and issued.
LinkANA To Get More Slots In Haneda Allocation - ReportThe Japanese government plans to award ANA more than half of 20 new international arrival and departure slots at Tokyo's Haneda Airport, more than twice what it will give rival Japan Airlines, two sources with knowledge of the decision said on Tuesday. The allocation, which could be announced as early as Wednesday, concludes a politically charged battle over landing rights that has threatened to embroil foreign carriers. The slots, which airlines normally retain as long as they stay in business, can be worth around USD$20 million a year each in operating profit, industry analysts told Reuters news agency. ANA lobbied hard for a big share of the landing rights, arguing that it had been put at a competitive disadvantage by JAL's USD$3.5 billion taxpayer funded bailout in 2010.
LinkAmerican-US Airways case moves ahead despite US govt shutdownThe US Department of Justice’s (DOJ) challenge of American Airlines and US Airways’ proposed merger is moving forward, with a district court judge setting additional hearing dates ahead of the 25 November trial. Judge Colleen Kollar-Kotelly set dates for various pre-trial motions and status updates in the case during a hearing at the US District Court for the District of Columbia today. She did not comment on a DOJ request to delay the trial while the US government remains shutdown. The agency requests that all deadlines be extended “day-for-day with the duration of the lapse in appropriations”, in a court filing today. It is funded by the US federal budget, which expired on 30 September with no new budget passed by the US congress.
LinkTwo air forces eyeing Block 60 Kfirs, says IAI Israel Aerospace Industries is in "very advanced negotiations" with at least two air forces that want to purchase the company's upgraded Kfir fighter in its Block 60 configuration. "We are capable of delivering the Block 60 within a year, and we have indications that in two to three years two squadrons will be sold," an IAI source says. The Kfir Block 60 is the latest upgrade for the Israeli-made fighter, which has been flying now for 40 years. The variant is offered with a General Electric-designed J79 engine with zero hours after a total overhaul, and will need another one after 1,600 flight hours.
LinkIsrael to seek second F-35 squadronThe "new situation" between the USA and Iran may result in some immediate procurement decisions by Israel, including the purchase of additional Lockheed Martin F-35s. Israel is worried about a so-called "smiles campaign" recently initiated by Tehran, which according to Israeli sources has all but removed the option of any future US military action in response to Iran's nuclear program. According to Israeli sources, the nation will follow an initial deal for 19 conventional take-off and landing F-35As with a request for at least another 20 of the stealthy combat aircraft, in a move which would give it sufficient volume to equip two squadrons. They add that they believe the US administration will take some steps to facilitate the additional procurement.
LinkShutdown not expected to affect flight operationsAirlines for America Senior Vice President Jean Medina said the Federal Aviation Administration, the Transportation Security Administration and Customs and Border Protection have all advised the U.S. airlines that a government shutdown should not affect air travel, as their key front-line employees, such as air traffic controllers and security screeners, will remain on the job. "At this point, we do not expect airline operations to be impacted," Medina said.
LinkGAO comments on long-standing challenges for biometric exit systemA biometric system to track exiting travelers still faces many hurdles. One of the challenges is because of funding. Rebecca Gambler, the director of Homeland Security and Justice issues at the Government Accountability Office, said that developing the system has been a "long-standing challenge for DHS."
LinkFAA to delay aircraft certification, including for 787 Boeing Co. (BA)’s new, bigger 787 Dreamliner and other aircraft ready to be delivered to airline customers may face certification delays because of a looming U.S. government shutdown. The Federal Aviation Administration will delay “all aircraft certification” depending on the length of the shutdown, the agency said today in an e-mailed statement. A lengthy government paralysis could eventually affect aircraft development programs like Boeing’s 787-9, a stretched version of its marquee Dreamliner, said John Dern, a spokesman for Chicago-based Boeing.
LinkConstruction begins on Hobby international terminalHouston Mayor Annise Parker joined other officials in a groundbreaking ceremony for an international terminal at the Hobby Airport on Monday. The $156 million terminal will allow Southwest Airlines to begin international service once it's completed in 2015.
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