In-flight Internet provider Gogo took the rare step of cancelling a bond sale days after it agreed to terms, saying it was in negotiations with an airline it didn’t identify about serving a large portion of its fleet. Lawyers involved with the US$525m bond offering advised that “we should pull the bond deal until this negotiation is complete,” Varvara Alva, VP of investor relations and treasurer with Gogo, said Thursday. The company would likely try to resell the bonds at a later date once the negotiation is complete, a person familiar with the matter said. Some investors speculated the potential airline deal would improve the company’s finances and could help Gogo lower its interest rate when it tries to sell the debt again. Gogo has cautioned there was no guarantee an agreement with the airline would be reached. <br/>
general
Security screening wait times at Chicago airports have improved significantly from earlier this month, according to the Chicago Department of Aviation (CDA) and the TSA. Chicago O’Hare (ORD) and Midway (MDW) airports were the epicentre of extremely long checkpoint lines and recent measures by TSA appear to have reduced wait times, at least temporarily. But TSA administrator Peter Neffenger continues to warn that overall airport screener staffing levels in the US are too low. “I do think we are at a lower staffing level than we need to be to meet peak demand at peak periods,” Neffenger told the US House of Representatives Homeland Security Committee during May 25 testimony. But Neffenger and CDA managing deputy commissioner-security Lydia Beairsto said checkpoint lines at ORD, which had consistently exceeded 1 hour earlier this month, are now down to about 15 minutes. <br/>
A4E said it is “astonished” that Norway’s govt is pressing ahead with a new airline passenger tax despite evidence that such levies depress demand and weaken both airlines and airports. A4E said the Norwegian govt’s plans to introduce the NOK80 (US$9.65) tax on both departing domestic and international passengers this summer will harm Norway’s airline sector and the wider economy. “According to IATA analysis, the tax risks reducing the overall demand for air transport by 5%, which equals roughly 1.2m passengers per year,” A4E said Thursday. “In addition, the tax would lead to a reduction in the direct and indirect output of the aviation sector by an estimated NOK 1.4b.” Since its creation in January, A4E has taken aim at what it says is a rising tide of aviation-related taxes. <br/>
Don Mueang and Phuket airports are among those in Asia-Pacific and the Middle East that showed the biggest gains in passenger traffic in Q1 of this year. Don Mueang in Bangkok increased its passenger volume by 23.1% to record 8.85m, according to figures compiled by AoT. Phuket increased its passenger throughput by 18.7% to 4.26m. Expansion at Don Mueang is expected to take its capacity to 40m passengers a year by 2012. Other top performers monitored by Airports Council International were South Korea's Busan with 26% passenger growth, Kaohsiung in Taiwan (21%) and Doha in Qatar (20.4%). The growth rates registered at both Thai airports mirrored strong travel demand through the cities they serve as well as congestion that has forced them to operate beyond their capacities. <br/>