What we’re reading: SWA’s Kelly touts LCC evolution, Russia may banish Austrian Airlines, JAL likely to choose Delta

by Stephanus Surjaputra on December 21, 2009

austrian
Southwest’s Kelly touts LCC’s evolution ‘to something more’ than no-frills

Southwest Airlines Chairman, President, and CEO Gary Kelly says that one percent of travelers are moving towards Southwest.

In a speech to the Wings Club in New York available via webcast, Kelly said that while 2009 has been “very, very challenging on multiple fronts,” forcing SWA to shrink capacity on an annual basis for the first time, the LCC is reaping the benefits of a transformation process that began in 2007. He explained, “We were a no-frills, low-tech, all-domestic, point-to-point operator, [but new technology and initiatives to attract business passengers] are enabling us to evolve to something more than that.”


Russia toughening stance on airline nationality

Russia’s Ministry of Transport could ban Austrian Airlines from its airspace by January 31 because it was taken over by Lufthansa, thus it is no longer considered a domestic carrier.

“This is no surprise. But this is not only about Austria. This also affects Switzerland and the UK,” IATA DG and CEO Giovanni Bisignani told ATWOnline at this week’s press event in Geneva, referring to LH subsidiaries Swiss International Air Lines and bmi. He said he believes a solution could be ready “within the first six months of 2010, but the Russians will want something in return,” such as more slots at EU airports.

JAL likely to choose Delta over American – report

Japan’s Asahi newspaper reported that Japan Airlines may choose Delta over American, ending its ties with the carrier and the Oneworld alliance. However, the airline is denying the report.

JAL, Asia’s largest carrier by revenue, strongly denied the report and said it was planning to make a decision early next month on whether to stick with American Airlines or defect to Delta and the rival SkyTeam airline group.

“It is absolutely wrong to say that we are leaning either way on the alliance decision at this moment,” said JAL spokesman Kojiro Waki.

(Photo: caribb/Flickr Creative Commons)

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