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Friday, August 10, 2007

Market Watch


Topics: Bombardier/ALMA, Embraer/AirFrance/KLM, Midwest, Allegiant, Porter, ERA, Alpine Air Express, Mesa, NY Pax Rights

ALMA Takes Two More CRJs
AeroLíneas MesoAmericanas “ALMA de México” will be adding two more Bombardier (BBD) CRJ 900 NextGen jets to its fleet with its most recent order valued at $74.4 million. Founded in June 2006, it now operates 15 CRJ200 aircraft, serving 25 destinations in Mexico.
“Passenger traffic on routes developed by the CRJ200 aircraft has increased to the point where we require higher capacity aircraft,” said Guillermo Heredia, President and Founder of ALMA. “Family commonality between the CRJ200 and CRJ900 NextGen regional jets made the CRJ900 NextGen product the logical choice.”
The manufacturer has booked 78 orders for the CRJ 900 and CRJ 900 NextGen since January 1 with options and purchase rights taken on an additional 60. As of April 30, 2007, Bombardier had delivered 1,423 CRJ Series regional jets, including 100 CRJ900 aircraft to operators.

Air France/KLM Group Take more ERJs
In another order from legacy carriers, Embraer (ERJ) placed 20 ERJ 190s and 170s with the Air France/KLM group to be operating by Régional and KLM Cityhopper. The deal, valued at $657 million calls for four 190s and six 170s for Régional and 10 190s for KLM Cityhopper, beginning a process to replace its Fokker 100s to enhance their existing networks and for route expansion. The deal also includes options for another three 190s for Cityhopper which means the deal could reach $1.245 billion. The first aircraft will be delivered in November 2008 to KLM Cityhopper. Both Régional/Air France and KLM Cityhopper ERJ 190s will be configured in a single class layout, seating up to 100 passengers. Régional/Air France’s ERJs will seat up to 76 passengers in a single class layout.
Régional/Air France already has three ERJ 190s in operation and will receive its first ERJ 170 in August 2008. The airline is the largest operator of Embraer jets in Europe, with a fleet of 39 aircraft (three ERJ 190s, 27 ERJ 145s and nine ERJ 135s), and also operates nine EMB 120 Brasilia.
“We have two reasons to celebrate today’s deal: one is the confidence reinstated by our distinguished and loyal customer, Régional/Air France and the other is the welcoming of an important new member into the quickly-expanding E-Jets operators family, KLM Cityhopper.”
Régional was created in March 2001 from the merger of Flandre Air, Proteus Airlines and Régional Airlines. The airline serves about 46 cities: 20 in France and 26 in other European countries. Régional headquarters are located in Nantes, in the West of France. The airline has two maintenance centers, one in Clermont-Ferrand and other in Lille. Regional’s fleet consists of 53 aircraft, including 48 Embraer airplanes. Régional is a 100 percent subsidiary of Air France.
KLM Cityhopper is a wholly owned subsidiary of KLM. The airline runs a large part of KLM’s European and its fleet currently consists of 55 aircraft, including 20 Fokker 100, 21 Fokker 70 and 14 Fokker 50 aircraft. Within the KLM framework, KLM Cityhopper runs 270 flights a day to 45 destinations.

Midwest Airlines Engages Four Parties to Stave Off AirTran
Midwest Air Group, Inc. (MEH) entered into confidentiality agreements with four unidentified parties, following the formation of a committee of the airline holding company's board of directors to explore strategic and financial alternatives that would serve to enhance value for the company's shareholders. The agreements enable the parties to conduct due diligence investigations. Related Story

Rockford-Mesa and FLL on Allegiant
Allegiant Air said it will be serving the Chicago area through Rockford, Ill. with the first new route served out of its new bases at Phoenix/Mesa and Fort Lauderdale. With the addition of the Phoenix-Mesa and Fort Lauderdale routes, Allegiant will serve five destinations from Rockford. The airline is based in Mesa’s (MESA) backyard at the Mesa airport.

Porter Airlines to Continue Halifax Flights
After announcing its new Toronto-Halifax service would be seasonal, ending September 4, Porter Airlines said its Halifax service would become part of its year-round schedule. The extended schedule features weekend flights between Halifax and Ottawa with continuing service to Toronto City Center Airport (TCCA). There will be one TCCA-Ottawa-Halifax flight Friday evening, with a return flight Saturday morning. Sunday features one round trip. Additional flight frequency for Halifax will also be considered during peak travel periods such as the Christmas and March breaks.
“We could see early on that Halifax had great potential for Porter as a destination beyond the summer and it was simply a matter of finding a schedule that works for everyone,” said Robert Deluce, president and CEO of Porter Airlines.

Era Adds Additional Anchorage and Fairbanks-Bethel Service
Era Aviation is adding its own branded service when it begins scheduled service to Bethel and Fairbanks from Anchorage on September 4. The airline is currently an Alaska Airlines (ALK) PartnerShips carrier serving Cordova, Homer, Kenai, Kodiak, and Valdez from Anchorage.
The Fairbanks service will be flown with 37-seat de Havilland Dash 8s on three flights daily while the two flights daily Bethel service will be flown with 19-seat Beech 1900Ds.
“The addition of these two markets will strengthen Era’s intra-state route system and provide convenient service to our valued customers that have been asking Era to serve these markets for some time now” said Era’s President and CEO Steve Jackson. “We believe these communities are a good fit for Era based on the aircraft we operate and most importantly, based on input from our customers.”

Alpine Air Express Closes Financing Deal
Alpine Air Express Inc. (APNX) completed a $6 million dollar financing package, increasing the company’s monthly cash flow by nearly $30,000. The financing package to Alpine Aviation, an operating subsidiary, was from Salt Lake city-based Marquette Equipment Financing Group and is intended to retire existing debt and for general administrative purposes.
“This funding allows us to spread our nominal debt over a much longer term, and dramatically improves our position as we contemplate acquisitions, which will complement Alpine’s strategic growth and profitability,” said Gene Mallette, CEO of Alpine Air.
Founded in 1975, Alpine Air, a wholly owned subsidiary of Alpine Air Express Inc., and provides scheduled air cargo flights throughout the western and southwestern United States.

NY Passes First Airline Passenger Rights Law
Ever the fighter for the beleaguered, NY Governor Eliot Spitzer passed the nation’s first passenger-bill-of-rights law. It calls for airlines to provide drinking water and snacks, fresh air and honey buckets for waste removal for passengers stranded on aircraft after leaving the gate. The law becomes effective January 1. The industry will no doubt seek to challenge the law on federal pre-emption grounds.

Mesa, Freedom Receive FAA's Diamond Certificate
Mesa Airlines and Freedom Airlines, both subsidiaries of Mesa Air Group, Inc.(MESA), received the Federal Aviation Administration (FAA) Diamond Certificate of Excellence Award for meeting training goals set by the FAA, marking the seventh consecutive annual award for Mesa Airlines and the fifth for Freedom Airlines.
On an annual basis, the FAA awards individual Aircraft Maintenance Technicians (AMT's) for meeting training goals based on hours of training received. The company employing these technicians is awarded based on the number of technicians that receive an individual award. The Diamond award is received by the company when 50 percent of the AMT's have received an individual award. For 2007, the FAA has increased the company award requirements. Now, 100 percent of the AMT's will need to obtain an individual award in order for the company to receive the coveted Diamond Certificate of Excellence.