Can You Hear Me Now?: Wireless Companies Agree to Delay
Both AT&T and Verizon agreed to an 11th hour delay of the rollout of their new 5G wireless network at the behest of the airline industry after the FCC and DOT were unable to play nicely together in the federal government sandbox and come up with a solution.
The new 5G networks were supposed to go live tomorrow, January 5, but both companies acquiesced to the pleas from the airlines and DOT to hold off so the FAA could further determine which airports could see interference from the new network. Without the delay, airlines warned that delays could worsen around the country while new guidelines were issued and tested for airlines and pilots.
A letter from transportation secretary Pete Buttigieg to the wireless companies drew the ire of FCC commissioner Brendan Carr who said that Buttigieg had no standing to slow down or obfuscate FCC business – only he, Carr, has the right to use his position to slow things down and promote general government red tape.
Allegiant Goes on Post-Christmas Shopping Spree
Allegiant is close to securing an order with Boeing for 50 B737 MAX aircraft that total about $5 billion if purchased at the list price, which it most definitely will not be doing. The carrier took advantage of having $89 in Boeing credit after returning a model airplane it was given for Christmas from Sun Country, which is why it went on to the Boeing website in the first place.
The order is a chance for Boeing to stop the bleeding somewhat, after the manufacturer lost out on two big orders last month from both KLM and Qantas. We imagine the purchase price is impossibly low, so Allegiant is ready to strike while the iron is hot. The deal comes about a month after Allegiant announced its commercial alliance with Viva Aerobus – the Mexican LCC is, like Allegiant, exclusively an Airbus airline.
Currently, Allegiant operates 122 aircraft – all of which are A319s or A320s. The new planes would replace retiring Airbuses in the fleet, and would be stored in Las Vegas’s Allegiant Stadium when the Raiders are out of town.
Pacific Coastal Airlines Calls it a Day (or Two)
Vancouver-based Pacific Coastal Airlines, a regional carrier that operates scheduled passenger operations, charters, and cargo flights throughout British Columbia temporarily suspended all service as the carrier dealt with a COVID-19 outbreak.
The carrier shut itself down this past Sunday and Monday, hoping the two-day break would allow it to catch up and return to regular service today, January 4. The airline possesses a fleet of nine airplanes, all Saab 340s, with six of them in service (except for the last two days).
The outbreak was primarily at the carrier’s Operational Control Center and left it short of enough staff to oversee its flights and operations. Passengers who were scheduled to fly on January 2 or 3 can contact the carrier (in theory) for a refund or rebooking on a future date.
- Air Madagascar is on the hunt for new investors. Interested parties should contact the Malagasy government.
- Air Serbia launched twice-weekly new service between Niš (INI) and Istanbul.
- Canada Jetlines took delivery of its first aircraft, an A320-200, as part of its plan to relaunch this spring. The carrier found it much easier to convince potential customers it was a real airline with an airplane, rather than without.
- Delta added nonstop flights from three cities to Indianapolis prior to the College Football Playoff National Championship. The carrier added nonstops from Birmingham, Huntsville, and Savannah, scheduled to depart on Saturday January 8 and return on Monday, January 11.
- Etihad secured a €700m revolving credit facility.
- German Airways finally knocked EGO Airways down a notch or two when it repossessed an E190 from the carrier after “several months of differing views on the interpretation of the contract.”
- Kuwait Airways suspended all service to Sri Lanka because Sri Lankan sales agents and local airline offices have been stiffing the carrier on payments. The carrier was forced to take the drastic move after sending its fixers Bennie and Tony to try and collect, but they came back empty-handed.
- Philippines AirAsia reopened its Clark (CRK) hub.
- Qantas resumed 3x-weekly service to Johannesburg over the weekend.
- United took delivery of its 15th and final aircraft as part of a lease order with CDB Aviation. The order consisted of two B787-9 Dreamliners and 13 B737 MAX 8s.
Why do lawyers always get buried under 30 feet of dirt?
Because deep down they’re really good people.