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September 2012 |
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Ranking the Regional Airline industry by the numbers
Did you know regional airlines served 681 communities across the US in 2011, and in 70% of them, regionals provided the onlyscheduled passenger flights? These facts and other industry stats on traffic, aircraft size and service trends are collected in the RAA 2012 Annual Report (available later this month), proving despite industry challenges the regional airline is adapting to a stagnant global economy.
While the Essential Air Service (EAS) program was preserved by Congress with an estimated $214 million annual budget, questions remain about the future of EAS. How airlines and airports can best work together to serve small communities is the topic of a 90-minute AAAE Webinar on Wednesday, September 26 from 2:00-3:30 pm EST.
Listen to RAA Senior Vice President-Government Affairs Faye Malarkey Black's perspective by joining this upcoming session. (Click here for more information)
This workshop is not open to press participation.
Headlines
RAA Convention News
2013 RAA Annual Convention Website Launch
Industry News
Regional Airlines Face Industry Challenges
Republic and SkyWest Move Aggressively to Avert the Fate of Their Fellow US Regional Carriers
Silver Airways Veep: Atlanta Flights on Schedule
ATRs Anchor Rebirth of Hawaii’s Island Air
Hawaii Island Air Completes First Step of Corporate Refinancing
Delta, SkyWest Reach New RJ Arrangement
Industry Urges DHS To Honor Repair Station Rule
SkyWest Board Oks Buyback of up to 5M More Shares
The Self-Service Airport
Colgan Air Winds Down at Newark Liberty International Airport
Flight Attendants for US Airways Express Authorize Strike
RAA Convention News
2013 RAA Annual Convention Website Launch
Information on the 38th RAA Annual Convention in Montreal, May 6-9, 2013 will be available on the RAA website later this month.
Bookmark: www.raa.org/AnnualConvention and join the conversation and start your planning!
Industry News
Regional Airlines Face Industry Challenges
USA Today (08/20/12) Jones, Charisse
Regional airlines operate half the nation's scheduled flights and are often the link between smaller communities and the national air service network. However, several of those carriers are being closed or are in bankruptcy court protection. They face significant challenges, as the big airlines they often fly for are phasing out smaller and costlier regional jets and cutting some low-traffic regional routes to focus on those that are more lucrative. The flurry of airline mergers in recent years also is affecting the regional flight map, says Roger Cohen, president of the Regional Airline Association. Airlines that have joined forces and no longer compete with each other can shed less profitable routes and funnel fliers from smaller communities through hubs, Cohen says.
Republic and SkyWest Move Aggressively to Avert the Fate of Their Fellow US Regional Carriers
Centre for Aviation (08/17/2012)
Republic Airways Holdings and SkyWest are working to maintain a reversal of fortunes in order to avoid the fate of their peers American Eagle, Comair and Pinnacle. As both work to slim down their cost structures to remain competitive, the companies are also looking for ways to make the remaining 50-seat jets in their fleets viable platforms for their partners. Both Republic and SkyWest produced favorable financial results during the second quarter of 2012, which reflected some cost cutting schemes initiated by the companies. Additionally, both airlines in the short term seem to have coined deals and internal overhauls that have helped each company return to profitability.
Silver Airways Veep: Atlanta Flights on Schedule
Times Daily (AL) (08/23/12) Corey, Russ
Mickey Bowman, the vice president of Silver Airways, said the new airline is on schedule to begin providing commuter air service to Atlanta from Muscle Shoals, Ala., by Oct. 1. The new route experienced a delay in getting online ticket sales rolling, but Bowman said that service should be available by Sept. 1. Bowman said the airline wants to work closely with local tourism officials and the local airport board to market local air service.
ATRs Anchor Rebirth of Hawaii’s Island Air
AIN Online (08/13/2012) Polek, Gregory
Hawaii’s Island Air is entering a whole new phase of life this summer with the roll-out of a complete image and brand overhaul. Meanwhile, airframe maker ATR is adding another regional carrier to its growing list of turboprop operators. The long-time de Havilland Dash 8 operator officially begins the process of trading equipment allegiances with delivery of its first ex-American Eagle ATR 72-212, now undergoing a C-Check at Premier Aviation in Trois Rivieres, Quebec. Island Air CEO Leslie Kaneshiro expects the first aircraft to start service in late October, and the airline expects to take delivery of the second machine–also formerly operated by American Eagle–by year-end, followed by another five or six 46-seat ATR 42-320s by the end of next year. The expansion plans come some six years after a fare war involving Mesa Air Group’s go! subsidiary forced Island Air to retrench into what Kaneshiro called its core niche markets and slash the size of the airline virtually in half. Now, plans call for the fleet overhaul to more than double the airline’s total capacity, allowing it to grow beyond its peak size.
Hawaii Island Air Completes First Step of Corporate Refinancing
Pacific Business News (08/24/12)
Island Air has completed the first step of the its corporate refinancing with Kahala Aviation of Dublin, Ireland, though details of the transaction were not disclosed. "The transaction with Kahala Aviation marks the beginning of new capital coming into the company," Charles Willis IV, chairman of Island Air parent Gavarnie Holding, said. "Later this fall, we will bring more capital into the company facilitating the re-fleeting of the airline, all part of the [new business plan]. "
Delta, SkyWest Reach New RJ Arrangement
AIN Online (08/02/2012) Polek, Gregory
SkyWest has signed a memorandum of understanding with Delta Air Lines under which SkyWest will add 34 more dual-class Bombardier 65- to 76-seat jets to its fleet while grounding 66 50-seat Bombardier CRJs. The additional aircraft include five Bombardier CRJ700s and 29 CRJ900s, which SkyWest expects to have secured by June 2013. The contract stipulates that all 66 CRJ200s must be removed from Delta Connection service by December 2015, and Delta financed 41 of the 66 50-seaters, which SkyWest can return "without obligation." SkyWest is responsible for the replacement of the remaining 25 CRJ200s, since it financed them.
Industry Urges DHS To Honor Repair Station Rule
Aviation International News (08/22/12) Lombardo, David A.
A letter signed by the Regional Airline Association and eleven other aviation associations urges U.S. Department of Homeland Security (DHS) Secretary Janet Napolitano to publish regulations for repair station security before the fourth quarter of this year. Congress passed a mandate in 2003 for the rules to be created, but “it has now turned into one of the longest, ongoing policy sagas in aviation,” said Pete Bunce, CEO of the General Aviation Manufacturers Association. The delays are a hindrance to the aviation industry’s competitiveness in emerging markets, he said. The letter states that the rule was completed by The Transportation Security Administration (TSA) and sent to DHS for review, and urges regulators to finalize it by the fourth quarter, which is the target date laid out by TSA. National Air Transportation Association CEO James Coyne says politics is holding up the rule, adding that unions are very opposed to it. “This is an issue of circumventing the checks and balances of our government,” he said. “Congress passed the law but the executive branch is dragging its feet pandering to their constituencies who oppose it.”
SkyWest Board Oks Buyback of up to 5M More Shares
Associated Press (08/28/12)
SkyWest's board has approved the repurchase of up to an additional 5 million shares of the company's stock. That is in addition to the remaining 1.51 million shares already authorized under SkyWest's existing stock repurchase program, bringing the total number of shares authorized to 6.51 million.
The Self-Service Airport
Wall Street Journal (08/27/12) Nicas, Jack; Michaels, Daniel
Airlines are developing the foundation for an expedited, completely self-service airport experience for travelers through advanced technologies, with Alaska Airlines' Ben Minicucci noting that at the airport of the near future, "your first interaction could be with a flight attendant." Alaska Air Group recently rolled out self-tagging of baggage in San Diego and Seattle, and deployments at eight additional airports are planned for this year. Airlines say the innovative technology will speed up the airport experience for veteran fliers while giving airline employees more freedom to concentrate on travelers with questions. The International Air Transport Association estimates that self-tagging and self-boarding have each been deployed in 115 instances worldwide, while a recent SITA poll found self-boarding to be appealing to 70 percent of fliers and nearly the same percentage of passengers want to tag their own baggage.
Colgan Air Winds Down at Newark Liberty International Airport
NJ.com (08/06/12) De Poto, Tom
Colgan Air has begun winding down operations at Newark Liberty International Airport, with its last flights schedule for Sept. 4. The airline averages 27 flights a day out of Newark but has been gradually reducing that number. ExpressJet Airlines will take over Colgan’s United Express flights from Newark.
Flight Attendants for US Airways Express Authorize Strike
Charlotte Business Journal (08/21/12) Wilson, Jen
Piedmont Airlines is struggling to reach an agreement with its flight attendants. The flight attendants, represented by the Association of Flight Attendants-CWA, authorized a strike if the airline's management is unable to negotiate a deal.
Abstract News © Copyright 2012 INFORMATION, INC.
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About RAA
With safety as its highest priority, RAA represents North American regional airlines, and the manufacturers of products and services supporting the regional airline industry, before the Congress, DOT, FAA and other federal agencies.
With more than 13,000 regional airline flights every day, regional airlines operate more than half of the nation’s scheduled flights with nearly 75% of US airports relying on regional airlines exclusively.
Founded in 1975, Washington, DC-based RAA also provides a wide array of technical, government relations and public relations services for regional airlines. The association's 28 member airlines and nearly 200 associate members represent the key decision makers of this vital sector of the commercial aviation industry.
For more information on Regional Horizons e-NEWS contact:
Regional Airline Association | 2025 M Street, NW | Suite 800 | Washington, DC 20036-3309
Tel: 202/367-1170 | raa@raa.org
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