Sky Talk

DFW Airport will raise parking rates in October

With fewer people using Dallas-Fort Worth Airport's parking lots, the airport has decided to raise parking rates starting in October.

The airport's board, which met on Friday to approve the fiscal year 2010 operating budget, agreed to boost some parking rates from $1 to $3 depending on the type of parking.

The board also approved a fifty-cent increase in taxicab, limousine, bus and courtesy vehicle access charges.

The parking fee changes include:

-Terminal 2 to 3 hours increasing to $4, up from $3

-Terminal 3 to 6 hours increasing to $6, up from $5

-Expressed Covered increasing to $12, up from $11.

-Remote Parking increasing to $8, up from $7

-Eliminating Infield parking, which was $14 and charging the same $17 rate as Terminal Covered Parking.

The remaining parking rates, such as the $2 pass-thru rate, were unchanged.

-Andrea Ahles

Southwest bids $113.6 million for bankrupt Frontier

Dallas-based carrier Southwest Airlines announced today it has submitted a non-binding $113.6 million bid for bankrupt Frontier Airlines.

The bid is more than $108 million agreement Frontier currently has with Republic Airways. As part of its deal with Republic, Frontier is able to conduct an auction and entertain other bidders.

"We are excited about the opportunity to submit a bid," said Southwest's chief executive Gary Kelly. "We see a strong fit between our Company cultures, a mutual commitment to high quality Customer Service, and similar entrepreneurial roots."

Frontier, which is based in Denver, filed for bankruptcy protection in April, 2008. The carrier said it expects to emerge from bankruptcy this fall.

Under the auction procedures, bidders have until Aug. 3 to submit an initial proposal and then a final proposal by Aug. 10. The company and its advisors expects to conduct the auction if necessary on August 11.

To read more about Southwest's bid, look here and here.

-Andrea Ahles

AA plane makes emergency landing in St. Louis after bird strike.

An American Airlines plane made an emergency landing in St. Louis after its right engine was struck by a bird.

Flight 449, carrying 140 passengers and 5 crew members, was heading to Los Angeles when the bird strike occurred shortly after taking off from St. Louis’ Lambert Airport around 2 p.m.

American Airlines spokesman Tim Smith said the pilot of the MD-80 never lost power on the struck engine and was able to make a normal landing. The passengers were put on another plane and the damaged aircraft was taken out of service, he added.

-Andrea Ahles

Average flight cost $315 in the first quarter, BTS says

Airfare prices continued to drop throughout the spring, according to data released by the Bureau of Transportation Statistics.

Compared to the fourth quarter of 2008, airfares declined 9.1 percent to an average flight cost of $315. That number, however, does not include additional fees that airlines charge at the airport for checked baggage and other in-flight services. When compared to the first quarter of 2008, fares have decreased 5.9 percent.

Huntsville, Ala. airport had the highest average fare while Long Beach, Calif. airport had the lowest average fare.

Dallas-Love Field had the fourth lowest average fare, according to the BTS. But the airport also had the largest increase in domestic average fares, up 10 percent compared to the same period last year.

The full press release is here.

-Andrea Ahles

One Million Miles

American Airlines is giving away... "One Million Miles." (insert Dr. Evil laugh here...)

Trying to promote its one-way flex awards and advanced booking tool on the Web, American Airlines launched a contest today that will award 10 winners 100,000 miles each.

To enter customers can register for the promo at www.aa.com/promo by 11 a.m. CDT on Sept. 30. Customers will have to watch a short video - about three minutes - that shows three fake AAdvantage members using the awards to take them to Hollywood, Argentina and Japan/London. (I'm keeping my comments on the cheese factor to myself.)

Like most contests, there is no purchase required for entry, however American is limiting the number of entries per person to two. And you must have an AAdvantage number to enter, although the web site does have a place where you can become a member so you can enter the contest.

And in related AAdvantage news, the company is offering double miles to its fliers out of the Greater New York area for flights made now until the end of the year.

-Andrea Ahles

Bell gets new CEO

Textron Inc. on Tuesday named John Garrison Jr. — head of the company’s industrial unit — to be Bell Helicopter’s new chief executive.

Garrison will replace Richard "Dick" Millman, who Textron said is retiring effective Saturday after 43 years with the company.

Garrison, who joined Textron in 2002, will become the fifth chief executive in eight years at Fort Worth-based Bell. He served as president of Textron’s industrial segment since November 2007, where Textron said he led operating improvements and new product introductions in the EZ-GO golf cart, Jacobsen turf maintenance equipment, Greenlee tools, and Kautex fuel systems and components businesses.

Read the full story here.

-Scott Nishimura

Delta/Northwest fare sale launched

Delta/Northwest launched a late summer and fall travel sale last night with price drops of over $100 roundtrip on thousands of city pairs, according to FareCompare.com.

In an e-mail blast, FareCompare chief executive Rick Seaney, said "this sale is likely to be widely matched...by both legacy and low cost airlines providing procrastinating consumers a last crack at late summer travel."

The sale is good until August 14 and is available for travel starting on August 18 through November 19.

Seaney continues, "While it is not unusual to see fall airfare discounts, this sale underscores the volatility of airline ticket pricing in a weak business demand environment."

We'll see if American and Southwest match the fare sale today.

-Andrea Ahles

American Airlines sells $276.4 million in debt offering

In an effort to continue building its cash reserves, American Airline sold $276.4 million in a debt offering, according to a Bloomberg News article.

Bloomberg reports that the sale was 20 percent smaller than the $344.1 million the Fort Worth-based carrier had hoped to raise.

The article continues:

"The 13 percent pass-through certificates due in 2016 pay a higher interest rate than a $520.1 million sale American completed last month, according to data compiled by Bloomberg. That 10-year debt, the airline's first such deal since 2005, was priced at 10.375 percent and backed by newer jets."

American spokesman Andy Backover declined to comment beyond the company's previous filings.

To read the story, click here.

-Andrea Ahles

New Eagle flights added

American Eagle announced it will add three new flights on November 19. The city pairs the Fort Worth-based regional carrier announced are:

Dallas-Fort Worth to Santa Fe (which is a second flight on this route.)

Charleston, S.C. to Miami (new service)

Knoxville, Tenn. to Miami. (new service)

The full release is here.

-Andrea Ahles

Monday headlines

A look at some of the news in the industry from this weekend.

-A Southwest flight heading from Connecticut to Orlando is grounded by coffee grinds. An electrical smell that had filled the cabin came from the coffee pot in the galley.

http://www.reuters.com/article/marketsNews/idUSN2754349920090727

-An American Airlines flight that made an emergency landing in Nova Scotia last month because of fire in the cabin is being looked at by federal arson investigators, reports the Wall Street Journal. The flight was on its way from Zurich to New York when flight attendants had to use fire extinguishers to put out a fire in the lavatory.

http://online.wsj.com/article/SB124864732403082173.html

-Aviation Week takes a look at Wi-Fi on airlines and how many customers want the connectivity during flights but don't necessarily want to pay for it.

http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news/aw072709p3.xml&headline=Airlines%20Face%20Dilemma%20of%20Passenger%20Inflight%20Wi-Fi%20Connectivity

-Andrea Ahles