Travel alerts for the week of January 2

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FAA/SECURITY

DOT hands a setback to Virgin America's launch

Just before Christmas, executives at San Francisco-based Virgin America - a low-cost start-up carrier affiliated with the U.K.s Virgin Group - happily announced that the airline had passed a series of test flights for the Federal Aviation Administration "with flying colors." But the week after Christmas, the U.S. Department of Transportation handed Virgin America a big setback by tentatively denying the company's application for an operating certificate. The DOT decision was a win for major U.S. carriers, led by Continental, who had vigorously opposed Virgin America's plans. The major carriers had argued that Virgin America wasn't really controlled by U.S. citizens as the company claimed, but was effectively dominated by Virgin Group and its British chief, Sir Richard Branson. And DOT agreed. "Virgin America would have to revise its ownership, corporate structure and associated agreements to be 75 percent owned and actually controlled by U.S. citizens before it can receive an operating certificate," a DOT spokesman said. In reviewing the case, DOT said it had determined that most of the voting equity in Virgin America is "held by companies that are majority-owned by non-U.S. citizens." It also said that the U.K.'s Virgin Group and its executives had a "pervasive involvement" in the creation of the airline and its financing, and had an "ability to influence decisions of the carrier's board." Before the DOT ruling, Virgin America had been planning to start flying in the spring of 2007.

AIRLINES

Delta plans expansion at Boston, American at St. Louis

Delta Air Lines plans to expand short-haul connections for its growing Boston operation this spring, and American Airlines said it will add capacity at St. Louis to meet rising demand from business travelers.

Delta said it has signed a deal with Big Sky Airlines to provide feeder service on short-haul routes into its Terminal A facility at Boston Logan starting in the second quarter of 2007. Big Sky will dedicate eight 19-seat Beechcraft 1900D aircraft to the operation, Delta said, giving it an overall increase of 18 percent in Boston departures when the service is up and running. "Specific routes and frequencies will be announced later this winter," a spokesman said.

Meanwhile, American said it plans to expand capacity at St. Louis in April by shifting more of its flights there from regional jets to full-sized aircraft. American said the increased capacity will affect routes from St. Louis to Austin, Raleigh/Durham, San Antonio and Boston.

Midwest will add new regional jet operation in April

Midwest Airlines has signed a deal with SkyWest Airlines calling on the latter to provide regional jet feeder service for Midwest starting in April. SkyWest will devote 15 to 25 Canadair Regional Jets to the new service, which operate under the Midwest Connect brand name. Midwest's existing regional partner, Skyway Airlines, will also keep flying as Midwest Connect, using its fleet of 32-seat Fairchild 328 jets and 19-seat Beechcraft turboprops. The company said the addition of the SkyWest regional jets "will allow Midwest to add new destinations, frequency on existing routes, and to upgrade several regional routes to all-jet service." It added that the new regional jet operation will also provide leather seats, buy-on-board food, and Midwest's signature chocolate chip cookies. Midwest, which flies mostly from Milwaukee and Kansas City, said it expects to increase its overall capacity by 15 percent in 2007.

Northwest re-signs with Pinnacle, may buy Mesaba

Northwest Airlines has firmed up its Northwest Airlink regional network by signing a 10-year extension of its existing partnership with Pinnacle Airlines, and also confirmed that it is in negotiations to acquire its other regional partner, bankrupt Mesaba Airlines. Under the first deal, Northwest will reduce its payments to Memphis-based Pinnacle for operating 124 Northwest-owned regional jets under the Northwest Airlink brand, but it will free up the smaller company to fly for other carriers as well. In addition, Northwest agreed to provide Pinnacle with a number of 76-seat regional jets if the latter company can reach a new contract agreement with its pilots in the first quarter. Meanwhile, Northwest also said it is in talks to buy out troubled Mesaba Airlines, which - like Northwest - is operating under Chapter 11 bankruptcy and has suffered ongoing problems with labor unrest. Currently, Northwest holds a 28 percent stake in the company that owns Mesaba, MAIR Holdings Inc. of Minneapolis, which also owns Big Sky Airlines of Montana.

INTERNATIONAL

New passport rules take effect this month

The Air Transport Association - the trade organization of U.S. airlines - is reminding travelers that the U.S. government is changing its document requirements for international travel effective January 23. On that date, all airline travelers entering or re-entering the U.S. from Canada, Mexico, Central and South America, the Caribbean (except Puerto Rico and the U.S. Virgin Islands) and Bermuda will be required to show a passport. Currently, other forms of personal ID such as a driver's license are generally sufficient for travel from those countries and regions. For additional information, go to http://www.dhs.gov or http://travel.state.gov.


See also ...

• Alerts Archive