Open Skies Over Jacksonville

[Ocklawaha]

From the EU the following report... OPEN SKIES. No more regulation of flights with "Gateway Cities" such as NY or MIA. It's going to get crazy, then I would imagine shake out to a few carriers. So far protection is in place to prevent an EU takeover of US airlines, but this may be dropped. Continental opened the morning with a huge new influx to London. Air France non-stops out of Los Angeles. Is Jacksonville in this game? The local media has slept through this one, even as the jets are overhead at this moment.

News Releases



No. 26/08
March 28, 2008

EU-US OPEN SKIES: A NEW ERA IN TRANSATLANTIC AVIATION STARTS ON SUNDAY

The new EU-US Air Transport Agreement will take effect on Sunday, March 30. For the first time, European airlines can fly without restrictions from any point in the EU to any point in the United States. "This marks the start of a new era in transatlantic aviation," said Jacques Barrot, Vice President of the European Commission in charge of Transport. "This Agreement will bring more competition and cheaper flights to the US." This agreement is the most ambitious air services deal ever negotiated. The two biggest aviation markets, encompassing 60 percent of world traffic, will cooperate closer in all fields of aviation policy. In May 2008, the European Commission will engage in second-stage negotiations with the US. "A fully Open Aviation Area between the EU and the US must remain our objective," added Vice President Barrot.

All EU airlines are now able to operate direct flights to the US from anywhere in Europe and not just from their home country. The Agreement removes all restrictions on routes, prices, or the number of weekly flights. Many airlines will increase the number of flights and destinations on Sunday. Flights between London-Heathrow and the US, for example, will increase about 20 percent compared to April 2007.

With about 50 million annual passengers between the EU and the US, the agreement covers by far the biggest international air transport market. The removal of all market access restrictions will stimulate competition. Prices for transatlantic flights are expected to fall. The benefits for consumers could reach up to 12 billion euros over the first five years. The Agreement could lead to the creation of 80,000 jobs on both sides of the Atlantic.

For the first time, this agreement establishes closer cooperation between the EU and the US to tackle new challenges, such as security or the environment. This will facilitate the operations for airlines and airports and reduce hassle for passengers.

This cooperation is already delivering tangible results, for example in the field of environment: the Atlantic Interoperability Initiative to Reduce Emissions (AIRE) is a joint project to reduce the environmental impact of transatlantic flights. Greener transatlantic flights will reduce emissions per flight.

Building on the success of the European internal aviation market, this agreement is an important first step towards the normalization of the international aviation industry. The ultimate objective of the European Union is to create a transatlantic Open Aviation Area: a single air transport market between the EU and the US with free flows of investment and no restrictions on air services, including access to the domestic markets of both parties. Therefore, the agreement taking effect on March 30 contains a strong mechanism for second-stage negotiations with a clear timetable, starting already in mid-May 2008.

The Agreement was signed on April 30, 2007 at the EU-US Transatlantic Summit in Washington. It replaces 21 bilateral agreements between Member States and the United States with their nationality restrictions. Until now, EU airlines could not operate flights to the US from outside their home country.

For further information, please visit:
http://www.eurunion.org/newsweb/HotTopics/OpenSkies.htm .

Have we already grounded ourselves?

Ocklawaha

[Duke]

I hope we haven't grounded ourselves.  It would be a shame for Jacksonville not to try to lure some of these flights here, especially while our airport is in expansion mode and can make adjustments for some of these new international airlines that may come our way.  Geez, I would kill for a direct flight to Europe from JIA. 

[JeffreyS]

JIA ran out of money on the terminal expansion so the new concourses will be roughly the same size as the ones they are replacing. So do not tear the old concourses down and we could still have increased capacity. 

Becoming a hub for a transatlantic carrier or two would be a nice get.

Mr. Mayor as you read this try to consider how you can make this happen.

[gradco2004]

My pocket is happy, but my brain is worried. With U.S. skies already overcrowded, how are we going to takle air safety, as well as take-off & departure delays? Not to mention security? I guess I'll have to kick my feet up and see how this show plays out. I see alot of kinks in the short term.

[Ocklawaha]

The sudden announcement that Aloha Airlines of Hawaii calls it quits, is ugly on the heals of the new Open Skies rule. While it does not call for Open Skies over Asia, one has to question the timing. Will Air France, British Airways and others suddenly crank up the flights to Hawaii? Non-Stops from hell? Considering Hawaii's location as the "Atlanta or Chicago of the Pacific," the announcement is a tad scary. This will require some watching.

Aloha Airlines shutting down passenger operations By Mark McSherry
Mon Mar 31, 10:06 AM ET



NEW YORK (Reuters) - Aloha Airlines is shutting down its passenger operations less than two weeks after the Honolulu-based company filed for bankruptcy protection as a court seeks buyers for its remaining units.

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Aloha has said its demise stemmed from "predatory pricing" from Mesa Air Group's (MESA.O) low-cost go! airline. Mesa, whose shares rose 3 percent, was not immediately available to answer those claims on Monday.

Aloha said late on Sunday that Monday would be the last day for its passenger operations. The shutdown will affect about 1,900 employees.

"We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," Chief Executive David Banmiller said. "We had no choice but to take this action."

Aloha said code-share partner United Airlines (UAUA.O) and other carriers were prepared to accommodate its passengers.

Passengers who do not want to use other airlines should contact their travel agent or credit card company to request a refund, Aloha said.

The company said its air cargo and aviation services units would continue to operate while the U.S. Bankruptcy Court seeks bids from potential buyers.

On Thursday, Saltchuk Resources Inc said it intended to buy Aloha's air cargo business, according to the airline.

'PREDATORY PRICING'

In its bankruptcy filing, Aloha said it was unable to generate enough revenue from its inter-island passenger business because of go!'s pricing.

Aloha said it was forced to match go!'s "below-cost fares" at a time when the airline industry is facing unprecedented increases in the cost of jet fuel.

On Monday, Mesa said go! would increase the number of daily flights it operates from an average of 54 to 94, beginning on Tuesday.

Mesa said go! would operate between 11 and 13 round trips a day from Honolulu to Maui, Lihue, Hilo and Kona, offering all seats at $49 through April 7.

The fuel price spike, coupled with a steadily weakening U.S. economy, has stalled the airline industry's modest recovery from the 2001-2006 downturn. Oil prices, which are directly related to jet fuel costs, remain above $100 a barrel.

Big airlines are beginning to shrink to cope with much tougher operating conditions. On March 18, Delta Air Lines Inc (DAL.N) unveiled plans to cut 2,000 jobs and scale back flights.

The previous downturn in the airline industry resulted in bankruptcies and unprecedented out-of-court restructurings.

However, analysts say that this time around, major U.S. carriers appear leaner and in better shape to weather the oncoming turbulence.

Mesa shares were up 7 cents at $2.44 in morning Nasdaq trade

Ocklawaha

[Ocklawaha]

 


All we would gain would be confusion, the new and old conmcourses are just too close together to make any difference.

Ocklawaha

[Ocklawaha]

LATIN AMERICA TOO? Hey I love this!

The worldwide leader in scandalously-named fare sales, Spirit Airlines, just locked down an interesting new route. The LCC will now get to operate seven flights a week between Ft. Lauderdale and Bogotá, Colombia, which is rapidly becoming 2008's It destination.

Spirit had to get Department of Transportation approval for the routes because they're regulated by a bilateral treaty. When the US and Colombia decided to up the number of flights between the two countries last year, a heap of airlines clamored to get in on the action. Delta, JetBlue and Continental will join Spirit in the newly-open skies.

American Airlines--which had a near monopoly on the route--still offers the most frequencies of any carrier. But when the low cost players start flying in April, it's almost a sure-thing that fares will fall. The only thing in doubt is what kind of off-color marketing campaign Spirit will use to hype the new flights.

Ocklawaha

[JeffreyS]

The trick will be only use the side of the old concouses that face the parking lot so that the area between the old and the new will just be used by the new. In the future when we elevate usage we finish the new concourses.