Low Cost Airline News.

Edited by Aram Gesar, [e-mail] For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/order_formsubs.htm Sep 18, 2006

Other than Interjet, four more startups have entered or are preparing to enter the market, but at least one has been delayed--yesterday, Gol CFO Richard Lark confirmed that his airline, which partnered to launch a Mexican LCC, has put the project on hold. He said Gol decided to delay the launch in order to focus on the Brazilian market. Sep 14, 2006

Gol

Gol announced the withdrawal of the May registration statement filed in Brazil and the US for a secondary and primary preferred share offering totaling 14.4 million nonvoting shares. The carrier did not give a reason for the move, but Bloomberg News reported that prospects for the sale, worth approximately BRL1 billion ($463.5 million), were hurt by a 13% drop in the Bovespa index since May. Sep 11, 2006

Gol

Gol launched daily Sao Paulo Guarulhos-Ilheus flights. Sep 11, 2006

Interjet

Mexican low-fare startup Interjet has captured 8% of total domestic traffic and 14% of traffic in city-pairs in which it competes in just seven months, according to CEO Jose Luis Graza Alvarez, who spoke at the World Low Cost Airlines Conference in London earlier this week. Launched last December after a 12-month planning period, Interjet operates a point-to-point network from Toluca Airport, located some 50 km. outside Mexico City. Alvarez said the carrier avoided Mexico City International Airport because it is far too congested for the quick-turn, high-utilization operation he wanted to create. As it is, Interjet achieves 25-min. turns and averages 11 hr. of daily aircraft utilization, operating 14 routes to 13 destinations. Monthly boardings have tripled in its first eight months of operation to 150,000 in July, and it achieved "above breakeven" load factors in June and July. Interjet[sup.1]s eats are assigned, which Alvarez called "a must or else the whole female sector will not participate." It serves complimentary snacks and beverages provided free by vendors in exchange for advertising opportunities in the cabin. The carrier is owned by Miguel Aleman, who launched it with a $60 million investment, and it is debt free, Alvarez said. Sep 14, 2006

Qantas

Qantas has been given the green light by Australia's competition regulator to work closely with its offshore low-cost subsidaries based in Singapore. The Australian Competition and Consumer Commission issued a ruling authorizing Qantas to enter into a cooperation agreement with Orangestar Investment Holdings, the holding company for Jetstar Asia and Valuair. The decision follows preliminary approval granted in May. Both Jetstar Asia and Valuair, which Jetstar took over last year, have been struggling to compete with Tiger Airways, which opposed the linkup, suggesting it would reduce competition. Qantas and Orangestar will be allowed to coordinate flying operations and activities, including network and scheduling decisions, sales and marketing initiatives, price and inventory decisions and the sharing of expertise. It is expected that cooperation will be extended when Jetstar International is launched in November. Sep 15, 2006