The FAA has denied exemptions for their 3-Hour Rule at NYC area airports.  They replied:

“Passengers on flights delayed on the tarmac have a right to know they will not be held aboard a plane indefinitely,” U.S. Transportation Secretary Ray LaHood said in the department’s announcement. “This is an important consumer protection, and we believe it should take effect as planned.”

 

” In denying the requests, the Department concluded that airlines could minimize tarmac delays by rerouting or rescheduling flights at JFK to allow the airport’s other three runways to absorb the extra traffic.”

 

“The Department also noted that it has the ability to take into account the impact of the runway closure and the harm to consumers when deciding whether to pursue enforcement action for failure to comply with the rule and the amount of a fine, if any, to seek as a result of non-compliance.” *

And that is really what I both expected and hoped for as a reply.  I am certain the war of words is not over, however.

*  These quotes are from the Dallas Morning News Aviation Blog entry which can be read HERE.

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Airtran has expressed how happy it is that they did not win their fight to acquire Midwest Airlines a fwe years ago and notes that they are the dominant player in Milwaukee now.  My feelings as well.  It is sometimes difficult to grow a business because of the capital requirements but it’s also very, very hard to integrate two airlines and it rarely realizes the expected benefits often touted during merger talks. 

Bob Fornaro, CEO of Airtran, has also expressed interest in what might be happening with industry consolidation through purchases and mergers and says they want to play a part.  However, it isn’t the role you think.  Airtran sees those developments as opportunities to pick up assets such as aircraft, slots and routes that may have to be divested as a result of a merger between two entities. 

I’m pretty sure that Gary Kelly (CEO of Southwest) would add a “hell yes!” to that. 

The airline industry has seen a lot of growth among the LCC carriers (and whatever you think, US Airways is *not* an LCC carrier despites its stock exchange identifier) and virtually all of that growth has been organic.  These airlines do the work of identifying good business targets and building the business of the route properly.  Each route between two cities is rally a “mini” business of the airline.  To build that business requires investment, time and good analytical skills.  Maintaining that business requires good analytical skills and agility. 

Legacy carriers shun executives from LCC carriers.  If I were to take over as CEO of a legacy carrier, I would head hunt avidly among the LCC carriers.  Those are the industry executives with the talent and skills to run an airline today.  Unfortunately, legacy carriers tend to promote within and stick with their legacy management corps.

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