North American carriers curb ops as int'l rights restricted ch-aviation PRO exclusive

US carrier executives are expected to meet with the Department of Transportation (DOT) to discuss a possible consolidation of routes in order to cut losses across the sector, CNBC has reported.

The US government has already approved a USD50 billion aid package for the airlines, mandating them to retain employment for six months and maintaining flights wherever feasible. However, given a decrease in demand, many routes are not sustainable for competing airlines, although they could be if operated by only one of them.

"It may make more sense to maintain service to that city, but put all passengers on one plane," an unnamed executive said.

The idea has yet to be officially presented to the DOT as airlines have yet to discuss details such as revenue sharing and scheduling.

In Australia, the Australian Competition and Consumer Commission recently allowed Rex - Regional Express (ZL, Wagga Wagga), Qantas (QF, Sydney Kingsford Smith), and Virgin Australia (VA, Brisbane Int'l) to consolidate and coordinate operations on a number of domestic routes to maintain...

The Canadian Competition Bureau issued a report on March 27 warning that the proposed sale of Transat A.T. Inc., the parent firm of Air Transat (TS, Montréal Trudeau), to Air Canada (AC, Montréal Trudeau) would probably result in a substantial reduction or prevention of competition in the sale of air travel and holiday packages.

Eliminating the rivalry between Air Canada and Air Transat in the CAD720 million (USD508 million) deal “would result in increased prices, less choice, decreases in service, and a significant reduction in travel by Canadians on a variety of routes where their existing networks overlap,” the regulator said.

The report, delivered to the Minister of Transport, includes analysis on 83 routes, 49 of which are overlapping routes between Canada and Europe and the remaining 34 are overlapping routes between Canada and “sun destinations” in Florida, Mexico, Central America, and the Caribbean.

The transaction also represents a merger of the only two carriers offering non-stop service on 22 of these routes, it added.

The assessment is based on forward-looking analysis...

The US Federal Aviation Administration (FAA) says it is planning to fine Colorado's MayaAir Charter (Telluride) USD55,000 for allegedly using its Hawker 400XP to conduct commercial operations despite lacking the necessary certification to do so.

The FAA alleges that between July 28, 2014 and August 3, 2014, MayaAir used N432MA (cn RK-370) to ferry paying customers on five flights in Colorado, Ohio, New Hampshire, Wisconsin and Wyoming.

MayaAir has been in communication with the FAA about the case.

Founded in 2003, the Telluride-based charter specialist also operates an E500.