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Monday, September 8, 2008

Market Watch – Delta, Horizon, Embraer, Porter, ATR



Delta Exits CVG Concourse C
After announcing it was cutting capacity at Cincinnati by 25 percent this fall, the latest in years of similar cuts, Delta is now abandoning its Concourse C operations in favor of 58 gates in concourses A and B. Putting a positive spin on it, the airline said that is will eliminate the nuisance of shuttle rides from Concourse C. Both Delta and Delta Connection Comair said the change would have little impact on staffing. After the announcement came a statement hub from Don Bornhorst, senior vice president of Delta Connection, saying the airline is still committed to the airport, according to the Cincinnati Enquirer. The newspaper pointed out that the hub is the third largest hub in the Midwest trailing Chicago and Northwest hub Detroit. Bornhorst denied that the elimination of Concourse C activity had any connection to Delta’s pending acquisition of Northwest. The airline also said that the hub retains direct service to 80 percent of O’Hare’s destinations. Delta will also retain 298 flights to 93 destinations, cutting by more than a quarter, the 406 flights to 115 destinations it had last year.

Horizon Links Biz Centers, Capitals

Horizon Air’s new flight schedule is filling a major gap by adding the only links between vital business centers and state capitals in California and Montana. In California, Horizon is operating a once-daily nonstop flight between Sacramento and San Jose, one of the state’s most important business centers and home to Silicon Valley. Northbound, the flight continues from Sacramento to another state capital, Boise, Idaho. The flights are operated with the Bombardier Q400.
In Montana, Horizon is operating a once-daily nonstop flight between Helena and Billings, the state’s largest city. “Our business is all about creating connections, in this case between state
capital decision makers and their constituents in these major business centers,” said Dan Russo, Horizon’s vice president of marketing and communications. “People who used to take to the road to travel between these cities found that freeway congestion and driving distances made for very long days. Now, with our new service, they can skip the expensive gas station, spend a productive business day in the capital and be home in time for dinner.”

Kunpeng Takes ERJ 190
Last week Embraer delivered the first of five ERJ 190 jets to China's Kunpeng Airlines Co. Ltd., in which Mesa Airlines is trying to sell its share to partner Shenzhen Airlines since the new Chinese airline no longer needs the ERJ 145s it planned to place there. Related Story Kunpeng was launched a year ago and has established more than 20 routes to date. The aircraft is configured to accommodate 98 passengers in a dual-class layout, and will enhance significantly Kunpeng's operational capability.
Embraer and Kunpeng also signed a five-year service contract known as the Embraer Collaborative Investory Parts (ECIP) covering 1,900 part numbers at seven maintenance bases covered by the program which monitors parts usage. It also replenishes stocks automatically and shortens parts delivery times. The program is designed to help carriers better manage maintenance costs.

Porter Exercises More Q400 Options
Porter Airlines exercised two more options that remain outstanding bringing its Q400 fleet to 16 when the two new aircraft are delivered next year. In July it converted two other options to firm orders. Porter’s initial 10-firm, 10-option, Q400 order is valued at over $500 million. Six aircraft are delivered and currently in service. The fleet will double to 12 aircraft by next summer. Porter Airlines currently serves seven destinations in Eastern Canada and the U.S. and stated that its plan is to increase the number of markets to at least 17.

ATRs Delivered to Malaysia Airlines
Malaysia Airlines’ subsidiaries, MASwings and Firefly, took delivery of the first ATR 72-500s of MASwings and the second ATR 72-500 of Firefly in a joint ceremony held at the ATR Final Assembly Line in Toulouse.
Earlier in August, Firefly took delivery of its first ATR aircraft, which made its inaugural flight on August 19th. The MASwings and Firefly aircraft are the first ATRs to operate in Malaysia. The aircraft will play a critical role in developing tourism and business routes and will replace Fokker 50s. The partnership includes the establishment with Malaysia Airlines of a joint ATR Training Center at the Kuala Lumpur Subang airport along with a new MRO Center dedicated to ATR aircraft.
Since the beginning of the program, ATR sold 958 aircraft (419 ATR 42s and 539 ATR 72s) and has delivered 788 (401 ATR 42s and 387 ATR 72s), thus posting a current backlog of 170 aircraft.