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DECEMBER 2015 / JANUARY 2016 AviationPros.com 5 BUSINESS BUZZ American Airlines To Decrease Fares in Competition With Low-Cost Carriers American Airlines plans to lower fare pric- es in order to compete with ultra-low-cost carriers like Spirit Airlines and Frontier Airlines. American Airlines Group Inc. President Scott Kirby announced the fare plan during a recent earnings report con- ference call in which he also announced American's $1.7 billion of net income for the third quarter, an 80% increase over the same period last year. Fuel Leak Suspected in Dy- namic International Fire Aviation authorities initially said a Dynamic International Airways Boeing 767 suffered a fuel leak while on a taxiway at Fort Lau- derdale-Hollywood International Airport on Thursday based on the large puddle of jet fuel around the accident, billows of black smoke and the size of the blaze. The National Transportation Safety Board, how- ever, hasn't confrmed the initial cause as fuel or another source that spread to the fuel system. E-cigarettes Banned From Checked Bags The U.S. Department of Transportation published a ruling last week that prohib- its any battery-powered portable electronic smoking devices from checked baggage. The DOT has also prohibited both passengers and crew from charging their e-cigarettes in the aircraft. A study conducted by the U.S. Fire Administration reported 25 fres or explosions caused by e-cigarettes from 2009 to 2014. United Agrees To Tentative Deal With Teamsters United Airlines agreed to a deal with the Teamsters to put the carrier's 8,600 tech- nicians and related employees under a sin- gle contract on October 23. The deal, which still must be ratifed by members of the International Brotherhood of Teamsters, is United's frst labor deal since CEO Oscar Munoz temporarily left the company on medical leave following a heart attack. LSG Sky Chefs Finds New Tampa International Home LSG Sky Chefs signed a 10-year lease on a 27,000-square-foot building at Tampa International Airport and has retroftted it with a state-of-the-art commercial kitchen. LSG Sky Chefs had lost its facility to a $1 bil- lion upgrade project at the airport. Local real estate costs had LSG Sky Chefs planning to move their kitchen to Fort Myers, Fla. and truck meals to Tampa International. Ground Handling System Mar- ket Projected to Grow to $526.1 Million By 2022 The global aircraft ground handling system market size is expected to reach $526.1 mil- lion by 2022, according to a new report by Grand View Research, Inc. Increased global air traffc is expected to drive GSE industry growth. The vast increase is likely to require an increase in both GSE and related staffng, both of which bode good signs for the pros- pects of GSE vendors and suppliers. Lower Fuel Prices Are Starting to Push Airfares Down Airfares are expected to decrease through the end of the year as airlines pass some of the savings from drastically lower fuel prices onto consumers. Average domestic airfares were 18 percent lower in Septem- ber than during the same period in 2014, and 9 percent lower than they were in Au- gust 2015. Fares prices are projected to be 17 percent lower in Q4 2015 than in the same period in 2014. Aviation Fuel prices have dropped 47% since last year. Inter airport Europe Closes With 7 Percent Visitor Increase The 20th anniversary inter airport Europe, International Exhibition for Airport Equip- ment, Technology, Design & Services, ended with a 7 percent uptick in total visitors over 2013. The bi-annual show housed 12,706 trade visitors from 110 countries at the Mu- nich Trade Fair Centre. In addition to the visitor increase, a total of 676 exhibitors from 44 countries and a net foor space of 29,870-square-meters rounded out inter airport Europe 2015. PHOENIX METAL PRODUCTS AND SOUTHWEST AIRLINES CELEBRATE LAV TRUCKS NOS. 1 AND 500 Representatives from Phoenix Metal Products, Southwest Airlines Co. and Isuzu met in Dallas on No- vember 3 to commemorate Phoenix Metal's 500th TL-600 lavatory truck, which was sold to Southwest. The group noting the No. 500 milestone, but had the opportunity to celebrat- ing Phoenix Metal's very frst truck. In 1995, Southwest took a chance on buying a lavatory truck from a brand new GSE company based in Miami, Phoenix Metal Products. Phoenix Metal's frst lavatory truck sale kickstarted their business and created a relationship that has last- ed for more than 20 years. "Take it, destroy it, give it back to me in a cardboard box, let some- body use it," Bill Wilcox, co-owner of Phoenix Metal Products, says of how he and his partner built their business through proving their equipment's worth. "We don't care. We just want you to try it." Southwest is both Phoenix oldest supporter and one of their largest. The Dallas-based airline currently has 98 Phoenix Metal lav trucks in service and more than 250 pieces of Phoenix Metal GSE in their feet. In all, Southwest has purchased al- most one-ffth of all products manu- factured by Phoenix Metal Products, more than any other airline. "People say it's durable," Larry Laney, Directory of Ground Support at Southwest Airlines, says. "But we don't believe them as an end-user until we get them out there and prove it."