Brighter Days for the Carriers

John F. Infanger
Created: November 21, 2006

Boyd's bottom line: 2007 should be a turnaround year for U.S. airline industry.

Neither Boyd nor Knudsen see the VLJs having a significant impact on the air traffic control system, contrary to assertions by the Air Transport Association. Knudsen says that even if 2,000 VLJs were to enter the marketplace by 2010, he sees "minimal impact" on the system.

Boyd sees limited air taxi applications for the VLJ but a huge market for replacement business aircraft. And, like fractionals, VLJs could attract a new customer base, growing the GA market, he says.

Conference Outtakes

Some of the other high points from this year's Boyd Group annual conference ...

Jeff Potter, president/CEO, Frontier Airlines: Carrier currently has 55 A320s and A319s in its fleet, which is expected to grow to 70 units by 2011. Ten percent of Frontier's business is in Mexico. Company has ten Q400s, Bombardier's new turboprop, on order.
Loren Aandahl, managing director/international planning, Northwest Airlines: Carrier expects to turn a profit for the second half of 2006 and to exit bankruptcy protection next year. Northwest is upgrading its regional fleet with 76-seat RJs, and is the launch U.S. carrier for Boeing's 787, which Aandahl says will play a big role in the carriers growth to Asia.
Ed Bastian, CFO, Delta Air Lines: "We believe we're truly reinventing Delta," says Bastian. A top priority is reducing debt - Delta had $20 billion in debt when it filed for bankruptcy protection. Central to the carrier's future is international - Delta has added routes to 20 cities in 17 countries.

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