Friday, May 18, 2007
BA Takes Charge for Price Fixing
According to a story today by the Times (London), British Airways admitted it engaged in price fixing regarding fuel price surcharges. The company is taking a charge of 350 million pounds, which is approximately one-half of British Airways' yearly pre-tax profits.
Benefits of U.S.-EU Open Skies Deal Questioned
In an article in today's Aviation Daily, a U.S. aviation consultant questioned whether or not the EU's projections of 80,000 new jobs and a 50% increase in transatlantic business are attainable. The consultant points to congested large European hubs and air traffic control infrastructure problems as possible impediments to capacity growth. Secondary airports and low-cost carriers may become the real "engine of transatlantic growth" but increased competition may result in lower yields for all airlines. Finally, the consultant predicts that airlines may eventually want to engage in true transatlantic mergers leading them to press for changes in foreign ownership rules in the second stage of talks. An additional document where the consultant expands upon his predictions for what will happen when U.S.-EU open skies takes effect can be accessed by clicking here.
DOT ALJ Finds In Favor of Airlines In LAX Fee Dispute
A strongly worded recommended decision by a U.S. DOT administrative law judge on Tuesday found that Los Angeles International Airport unjustly charged two dozen airlines millions in new annual fees and other costs. The full decision of the administrative law judge can be accessed by clicking here and a Los Angeles Times article discussing the decision can be accessed by clicking here. A final decision must be issued by DOT officials by June 15th.