U.S. and Caribbean Airline News Brief

Bad news from Air Jamaica - Will they continue flying to Barbados?

Air Jamaica is suspending its current three flight weekly service to the island of St. Lucia, effective April 1. Paul Pennicook, Air Jamaica’s Senior Vice President of Marketing and Sales, explained that the carrier was forced to make the difficult decision because of its corporate restructuring, which entails streamlining and route rationalization.

Spirit Airlines Looks to Long Island, NY For Caribbean Routes

I knew it would only be a matter of time before the budget airlines would fly to the Caribbean - mark my words, this is just the start . . . Linda
Spirit Airlines is in discussions with the Town of Islip on Long Island, NY, to add flights out of MacArthur Airport to Caribbean destinations such as Puerto Rico.

A representative of Spirit says the airline could strike a deal within two weeks. “Spirit looks at a lot of places when planning routes,” the source told Travel Agent. “We’re studying Islip just like we study many places.”

Here’s another start of what’s to come . . . Foreign Airline Competition!

New “Open Skies” treaty between the U.S. and the European Union. The new treaty allows airlines from both continents to fly wherever they please.
The United States and Australia have signed an aviation agreement allowing all Australian and U.S. airlines to freely select routes, destinations and frequency of services between the two countries and to other nations.

Qantas Airways Ltd. and United Airlines are currently the only airlines flying nonstop between Australia and the continental U.S. Currently Hawaiian Airlines flies between Honolulu and Sydney.

Look for Virgin Blue, Australia’s second-largest airline by revenue, to begin flying to the west coast of the U.S. And Virgin Blue has been given the all-clear to launch ten weekly flights to North America by November,

British Airlines has launced an entire new airline called “Open Skies” to compete in the American market. And Lufthansa of Germany is buying a 19% stake in budget airline carrier JetBlue - US law prohibits foreign airlines from owning more than 25% of a U.S. airline’s voting stock.

U.S. Airline Merger Games Are On - And it’s anyone’s guess how the players will pair up!

Northwest has an agreement with Continental which states that Continental cannot merge with anyone unless Northwest agrees. Now rumor is that Northwest and Delta are looking at a possible merger, but at the end of last year Delta was going to make a bid for United.

Since Continental and United are co-shares, this could end up being a four airline merger - or not. So what’s US Airways and American to do? At any rate, they all better get ready for the foreign airline invasion.

Speaking of U.S. Airways . . . A little trouble over fuel in London

US Airways may launch legal action against BAA, the owner of Heathrow airport, over its inability to secure fuel supplies for a new service it plans to launch next month from the world’s busiest airport.