Electronics ban for select countries and airlines
March 31, 2017
The United States Government has announced new requirements for select airlines and countries regarding the carriage of electronic devices into the United States. The change affects eight Middle Eastern countries including Turkey, Egypt and the UAE and instructs certain airlines of these nations that electronic devices larger than a smartphone such as laptops and tablets may not be carried on board and must be placed in the checked baggage hold. The move comes after US intelligence agencies cited that terrorist groups continue to target commercial aviation and may attempt to smuggle explosives on board using these types of devices.
SPOTLIGHT REVIEW: PenAir
March 31, 2017
PenAir (Also known as Peninsula Airways) is small regional operator, servicing destinations throughout Alaksa and North America, utilising a fleet of Saab turboprop aircraft. The airline was founded in 1955 as Peninsula Airways and has gradually expanded both its fleet and route network. The airline now services destinations in Colorado and Kansas through its extensive code share agreement with Alaska Airlines.
The airline began operations in 1955 and has since acquired a number of new aircraft, whilst concurrently removing ageing models from its operational fleet. Furthermore, throughout its history the airline has steadily expanded both its route network and scope of operations to incorporate both cargo and charter flight services. This constant fleet renewal coupled with the gradual growth of overall operations indicates that the airline likely has access to a sufficient level of financial resources. In 2012, PenAir began performing a number of Essential Air Service (EAS) routes which provides air transport for the public in remote areas. In early 2017, PenAir operated a fleet of Saab turboprop aircraft with an average over just over 26 years. However, it important to note that having a high average fleet age is not uncommon for Alaskan and Canadian regional operators.
Only a limited insight could be established into the airline’s maintenance and training arrangements. Furthermore, the airline’s overall fleet age is in excess of 25 years and is classified as very old. Due to the ageing fleet, low level of annual flight hours and aircraft cycles and limited operational capability, PenAir has been categorised as mid risk within the ARC, with a score of 5.42.
Alaska Airlines closes on its deal to acquire Virgin America
February 24, 2017
The Alaska Air Group officially closed on its deal to acquire Virgin America in late 2016 and has now commenced the integration process. Whilst the new owner has not confirmed the exact operational arrangements of the acquisition, it is likely that flight routes and airport slots will be amalgamated into Alaska Airlines’ mainline operations. Alaska Air Group had initially planned to retire the Virgin brand completely. However, this rebranding will reportedly be delayed until thorough market research is conducted to ensure a smooth transition and a positive consumer reaction.
Reports of the buyout first emerged in 2016, with the Alaska Air Group expressing its interest in a merger with Virgin America. In July 2016, the United States Department of Justice granted approval for the acquisition of Virgin America for USD $2.6 Billion, plus USD $1.4 billion in assumed debt. In addition to a number of regulatory requirements, code-sharing limitations were also implemented to satisfy fair competition legislation. Most notably, due to American Airlines and Alaska Airlines current market share, both carriers are prohibited from code sharing with one another on over 50 routes.
Alaska Airlines has already transitioned Virgin America’s flights codes to its own. Alaska Airlines’ has reportedly announced that Virgin America’s entire fleet may be discarded, to allow for the continuation of a single model fleet consisting of Boeing 737 aircraft.