Career Pilot

Industry News

Industry news is more important to career development and the job search than many aspiring career pilots realize. What new regulations that could affect your career lurk just over the horizon? A proposal is pending, for example, that could eliminate the longstanding FAA regulation that required airline pilots to leave the cockpit when they turn 60.

Which airline is thinking about buying another carrier? That could affect you directly if you work for the acquired carrier. Who is ordering new airplanes? If new aircraft are an addition to the carrier’s existing fleet, it will have to hire more pilots to fly them. How is the industry—and individual airlines—doing financially? While a company’s financial situation can change over time, you should know how an airline stands when you apply.

American outlines restructuring plan

American Airlines on Feb. 1 outlined a business plan to transform the airline and restore it to industry leadership, profitability, and growth. The plan targets an annual financial improvement of more than $3 billion by 2017: $2 billion in cost savings—including average annual employee-related savings of $1.25 billion—and $1 billion in revenue enhancements. “Change will be difficult, particularly as we will be ending this process with fewer people, but it is a necessity,” said Tom Horton, chairman and chief executive officer. The carrier will overhaul its fleet, reducing fuel, maintenance, and financing costs. All employee groups, including management, must reduce their total costs by 20 percent to save an average of $1.25 billion annually from 2012 through 2017; the workforce will be reduced by about 13,000 employees. American said it will outsource some aircraft maintenance work and plans to close the Fort Worth Alliance Airport maintenance base, as well as terminate its defined benefit pension plans and discontinue subsidizing future retiree medical coverage for current employees. A summary of the company’s proposed changes to the American Pilots Association contract can be read online; a more detailed look at the proposed contract changes can be seen here.

[ POSTED FEBRUARY 7, 2012 ]

Southwest, AirTran flight attendants ratify seniority integration agreement

Flight attendants from Southwest Airlines, represented by the Transport Workers Union (TWU) 556, and AirTran Airways, represented by the Association of Flight Attendants (AFA) Council 57, have voted to ratify their seniority integration agreement, Southwest announced Jan. 31. The agreement, reached tentatively late last year, integrates the two groups' seniority lists. Southwest Airlines finalized closing on its acquisition of AirTran Holdings, Inc., on May 2, 2011. The TWU represents about 9,800 Southwest flight attendants, and the AFA represents almost 2,400 AirTran flight attendants. Pilots also have completed the seniority integration negotiation process, and mechanics from both airlines are currently reviewing their tentative agreement.

[ POSTED FEBRUARY 7, 2012 ]

World Airways, North American Airlines reorganizing

Global Aviation Holdings Inc., the parent company of World Airways, Inc. and North American Airlines, Inc., announced Feb. 5 that it has commenced a voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company said the move was necessary to achieve a cost and debt structure that is industry competitive, adding that the company and its subsidiaries will continue to operate normally. Although the company had negotiated the reduction of certain obligations, said Robert Binns, Global’s chairman and chief executive officer, its fleet is too large and labor costs exceed industry standards given the current global economic environment. Global, through its World Airways and North American Airlines subsidiaries, is the largest provider of military transport services through the Air Mobility Command.

[ POSTED FEBRUARY 7, 2012 ]

Global airline capacity grows for 9th consecutive month

Scheduled flights worldwide continued to grow in February, with airlines providing 5 percent more flights. Because of the general worldwide trend toward larger aircraft, this translates to a slightly larger capacity increase of 6 percent, as the average available seats per aircraft in February 2012 nudges towards 127, versus 125 in the same period last year. February marks the ninth consecutive month of growth compared to the same period last year, according to the latest statistics from OAG. Market demand continues to increase in Central and South America and across the Middle East, all recording double-digit growth; those regions are surpassed only by the total volume growth in Asia Pacific of 8.9 million seats in February compared to twelve months ago. Asia Pacific and South America represent 64 percent of the total worldwide volume growth for the period. More detailed OAG statistics for the month are available online.

[ POSTED FEBRUARY 7, 2012 ]

Most carriers report profitable Q4, calendar year

• US Airways Group. Fourth quarter net profit excluding net special charges was $21 million, compared to a fourth quarter 2010 net profit excluding net special charges of $28 million. Full year 2011 net profit excluding net special charges was $111 million, compared to a full year 2010 net profit excluding net special credits of $447 million. The decline in profitability from 2010 to 2011 was attributed to a 38-percent increase in consolidated fuel price.
• Delta Air Lines. Delta's net income for the December 2011 quarter was $379 million, a $221 million improvement year over year. Delta's net income for 2011 was $1.2 billion, excluding special items. The company said it offset $3 billion in higher fuel expense through strong revenue performance and its fuel hedging program.
• JetBlue Airways. Jet Blue’s pretax income was $40 million in the fourth quarter, compared to pretax income of $13 million in the year-ago period. For the full year 2011, JetBlue reported pretax income of $145 million, compared to $161 million for 2010; net income for 2011 was $86 million, compared to $97 million in 2010.
• United Continental Holdings. United Continental Holdings, Inc reported full-year 2011 net income of $1.3 billion, excluding $483 million of special items consisting primarily of integration-related costs. Including special items, UAL reported full-year 2011 net income of $840 million. The company reported fourth-quarter net income of $109 million, excluding $247 million of special items; including special items, UAL reported a fourth-quarter 2011 net loss of $138 million. Consolidated fuel expense for 2011, excluding the impact of hedges, increased 36.5 percent, or $3.4 billion, year-over-year.
• Alaska Air Group. Alaska Air Group Inc. reported fourth quarter 2011 GAAP net income of $64.0 million, compared to GAAP net income of $64.8 million in 2010. Excluding fuel hedge gains of $43.1 million ($26.8 million after tax), the company reported fourth quarter 2011 net income of $37.2 million, compared to net income excluding special items of $47.4 million in 2010. The company reported full-year 2011 GAAP net income of $244.5 million, compared to $251.1 million in the prior year.

[ POSTED JANUARY 31, 2012 ]

FMLA extended to cover flight crews

Nearly two decades after the Family Medical Leave Act (FMLA) was signed into law, its coverage has been extended to air carrier flight crews. Secretary of Labor Hilda Solis on Jan. 30 announced the implementation of the Airline Flight Crew Family and Medical Leave Act. Association of Flight Attendants-CWA (AFA) President Veda Shook attended the announcement. "This is an exciting day for flight attendants and flight crew across the nation as Secretary Solis announces this proposed rule that provides peace of mind and real protections for hundreds of thousands of families," said Shook. The act requires most employers to provide job-protected unpaid leave to employees who have worked 60 percent of a full-time schedule over the course of a year. However, the courts and federal agencies narrowly defined the "full time schedule" as that of a traditional 40-hour work week, thereby excluding employees whose schedules do not fall within the traditional 9-to-5 workday. The Airline Flight Crew FMLA corrects this misinterpretation of the original legislation, extending coverage to flight crews.

[ POSTED JANUARY 31, 2012 ]

Flight attendants, US Airways reach tentative agreement for merged contract

Union negotiators representing flight attendants at the merged US Airways and former America West Airlines announced agreement on a single, combined contract late Jan. 26. The Association of Flight Attendants, CWA – AFL-CIO (AFA) presidents of each pre-merger airline—Mike Flores, representing premerger US Airways flight attendants, and Deborah Volpe, representing America West employees—issued a joint statement. "This is about moving forward. These negotiations have been arduous, frustrating, and far too long. Until we gained the right to federal mediation with oversight by the National Mediation Board, management did not take our members seriously. Now, they do.” Details of the proposed agreement will not be released until union leadership conducts a full review and presents it to the carrier’s 6,700 flight attendants for ratification, they said.

[ POSTED JANUARY 31, 2012 ]

American seeks to void leases on 18 aircraft

In a recent filing with the bankruptcy court, American Airlines asked to terminate leases on 18 aircraft—10 Boeing 757-200s, 6 McDonnell-Douglas MD-80s, and one Airbus A300 10—the Fort Worth Star-Telegram reported in its Sky Talk blog."In view of the large number of aircraft American Airlines has on order, it seeks to accelerate its fleet renewal strategy. To meet all of these goals, the Debtors are analyzing the benefits of rejecting leases, selling and abandoning owned aircraft and engines, and contemplating methods for the return and surrender of rejected and abandoned aircraft and engines," American told the court. Thirteen of the aircraft, which range from 17 to 23 years old, are stored in the New Mexico desert.

[ POSTED JANUARY 31, 2012 ]

US Airways Express flight attendants take step toward strike

Following a week of what they described as fruitless negotiations with PSA Airlines management, flight attendants at the carrier initiated a process that could lead to a strike if management fails to negotiate a new agreement. On Jan. 23 the Association of Flight Attendants-CWA (AFA), representing the flight attendants, asked the National Mediation Board to declare that negotiations are at an impasse and proffer arbitration, which would lead to a 30-day cooling-off period before a strike deadline could be set. Last September, PSA flight attendants voted overwhelmingly to authorize a strike if management failed to negotiate a new contract. Mediated negotiations stalled over compensation, retirement, insurance, and related issues. PSA is a wholly-owned subsidiary of US Airways Group, Inc., and operates 330 daily departures to more than 62 destinations as a US Airways Express carrier.

[ POSTED JANUARY 24, 2012 ]

UPS pilots file preliminary statement on duty time exclusion

The Independent Pilots Association, representing UPS pilots, on Jan. 23 filed its preliminary statement of issues as ordered by the U.S. Court of Appeals for the D.C. Circuit in its challenge to the FAA's exclusion of cargo operations from its final rule on pilot flight and duty time. The association said it is challenging the exclusion of cargo operators because the FAA's decision to discard its August 2010 proposal that uniformly applied science-based flight and duty time rules to both passenger and cargo carriers was capricious; the FAA's arbitrary assumptions and estimates in its cost/benefit analysis lack substantial evidence; the FAA acted illegally by not allowing review and comment on its cost/benefit calculations; and because the FAA ignored the fatigue facts and factors that are more prevalent in cargo operations, specifically nighttime operations and those flying across multiple time zones. The court has ordered the FAA to file the certified index of the record, essentially a catalog of the regulatory docket, by February 6, which will provide IPA its first chance to review the entire record used by the FAA to determine the final rule.

[ POSTED JANUARY 24, 2012 ]

Delta, WestJet begin codeshare

Delta Air Lines and WestJet on Jan. 17 announced a codesharing agreement on flights within the United States and Canada, further expanding the partnership between the two carriers. Last year, the two airlines began an interline agreement that allowed customers to purchase connecting flights on one ticket, receive boarding passes for all segments at their first check-in, and tag bags through to their final destination. Under the first phase of the new codeshare agreement, which became effective Jan. 23, Delta placed its code on WestJet flights to more than 15 cities, while the WestJet code was added to Delta flights in five markets.

[ POSTED JANUARY 24, 2012 ]

Travel agents set sales record last year

ARC, the financial settlement link between airlines and travel sellers, reported Jan. 12 that the consolidated dollar value of airline tickets sold by U.S.-based travel agencies in 2011 increased 6.11 percent year-over-year compared to 2010, and 25 percent over 2009. Ticket sales in 2011 were a record $82.1 billion, compared to $77.4 billion in 2010, and $65.8 billion in 2009. The increased sales came in spite of a drop in the number of ticket transactions reported. Passenger segments in 2011 fell 2.9 percent, to 370.1 million segments—compared to 381.1 million in 2010—while reflecting a 2.9 percent increase over 2009.

[ POSTED JANUARY 17, 2012 ]

New Southwest cabin design adds seats

Southwest Airlines on Jan. 17 introduced a cabin update for its 737-700 aircraft. It said update utilizes durable and environmentally responsible products to reduce waste and create weight savings, while increasing customer comfort. In addition, the new interior design provides the potential for greater revenue by increasing the number of passenger seats from 137 to 143—and simultaneously increases under-seat room for carryon luggage. In a $60 million project, Southwest will begin retrofitting its current fleet of 372 Boeing737-700s with the newinteriorin March 2012, with completion in 2013. Other aircraft in the Southwest fleet are being evaluated for possible retrofit, and AirTran Boeing 737-700s and 717s also will be retrofitted as those aircraft are converted into the Southwest brand over the next several years.

[ POSTED JANUARY 17, 2012 ]

American Eagle ditches turboprops at DFW

American Eagle Airlines, the regional affiliate of American Airlines, is replacing all of its ATR turboprop aircraft operating from Dallas/Fort Worth International Airport. Fourteen markets throughout Arkansas, Louisiana, Missouri, Oklahoma, and Texas will have all-jet service beginning Jan. 31; they will be served by a combination of 37-, 44-, and 50-seat jets. American Eagle also announced that it would launch daily nonstop jet service between Dallas/Fort Worth and Garden City, Kan., beginning April 9. The carrier operates more than 1,500 daily flights to over 170 cities on behalf of American Airlines.

[ POSTED JANUARY 17, 2012 ]

Southwest announces new Atlanta-Los Angeles route

Southwest Airlines on Jan. 11 announced plans for one new daily nonstop flight between Hartsfield-Jackson Atlanta International Airport and Los Angeles International Airport beginning June 10; it will be in addition to the three daily flights operated by AirTran, Southwest's wholly-owned subsidiary. Southwest will begin service to the Atlanta market on Feb. 12, 2012, with 15 daily nonstop flights to five destinations; two additional destinations will be added in March.

[ POSTED JANUARY 17, 2012 ]

United, flight attendants reach tentative agreement

United Continental Holdings, Inc. announced Jan. 9 that the United Master Executive Council of the Association of Flight Attendants (AFA) told the carrier that it had approved a tentative agreement between AFA and UAL for a flight attendants' contract, and is recommending the tentative agreement to United flight attendants for their consideration and ratification. The agreement is the result of an expedited mediation process that began last September, and provides for numerous improvements, including increased wages and a signing bonus. "We appreciate the hard work of both negotiating teams in reaching an agreement that is fair to United flight attendants and fair to the company, and recognizes the great work by our flight attendants," said Sam Risoli, a senior vice president for United. The tentative agreement covers more than 15,000 flight attendants; those at subsidiary Continental ratified their collective bargaining agreement in February 2011. "This agreement is a step in the right direction. Our flight attendant community has waited for much needed improvements to our contract," said Greg Davidowitch, AFA president at United Airlines.

[ POSTED JANUARY 10, 2012 ]

Boeing increases 737 production rate

Boeing on Jan. 10 successfully achieved a production rate of 35 airplanes a month for the Next-Generation 737, with the delivery of the first airplane produced at the new rate to AWAS Aviation Services, Inc. Norwegian Air Shuttle will lease the airplane from AWAS. While employees focus on stabilizing the production rate at 35 a month, investments are under way to increase the rate to 38 737s a month in second quarter 2013 and 42 a month in the first half of 2014. Employee teams implemented new lean improvements to create production capacity. Leaders of the 737 program acknowledged those contributions at an employee celebration at the Renton factory.

[ POSTED JANUARY 10, 2012 ]

Fairs scheduled for China pilot jobs

Pan Am International Flight Academy will join forces with WASINC, China's largest airline pilot leasing company, to host the All-China Pilot Job Fair at Pan Am's Miami and Las Vegas training centers. The Miami Job Fair will be held Feb. 23 and 24 at Pan Am's headquarters at the Miami International Airport, and the Las Vegas Job Fair will be held Feb. 26. Pilots will have the opportunity to pass scheduled sim evaluations, and meet and greet airlines hiring pilots. Qualifying pilots will also receive on-the-spot conditional offers for jobs flying the Boeing 777, 747-400, 767, and 737NG; Airbus A340, A330, and A320; and Embraer EMB190 and EMB145. Ten major China airlines as well corporate jet operators will interview pilots. Space is limited, and candidates are encouraged to register early for this free pilot career fair by visiting the Pan Am website or by calling Pan Am at 877-394-2118.

[ POSTED JANUARY 10, 2012 ]

FAA issues new rule on pilot fatigue

U.S. Transportation Secretary Ray LaHood and FAA Acting Administrator Michael Huerta announced a sweeping final rule Dec. 21 that will overhaul commercial passenger airline pilot scheduling to ensure pilots have a longer opportunity for rest before they enter the cockpit. “This is a major safety achievement,” said LaHood. “This new rule raises the safety bar to prevent fatigue.” The Department of Transportation identified the issue of pilot fatigue as a top priority during a 2009 airline Safety Call to Action following the crash of Colgan Air flight 3407. The FAA launched an aggressive effort, using the latest research on fatigue, to create a new pilot flight, duty, and rest proposal, which the agency issued on September 10, 2010. “Every pilot has a personal responsibility to arrive at work fit for duty. This new rule gives pilots enough time to get the rest they really need to safely get passengers to their destinations,” Huerta said. Under the new rule, flight and duty requirements vary based on what time the pilot’s day begins; the allowable length of a flight duty period ranges from 9 to 14 hours for single-crew operations. Flight time is limited to eight or nine hours. The rule sets a 10-hour minimum rest period prior to the flight duty period, a two-hour increase over the old rules, and mandates that a pilot must have an opportunity for eight hours of uninterrupted sleep within the 10-hour rest period. The FAA expects pilots and airlines to take joint responsibility when considering if a pilot is fit for duty, including fatigue resulting from pre-duty activities such as commuting. The estimated cost of this rule to the aviation industry is $297 million but the benefits are estimated between $247 million and $470 million, the agency said, adding that it would be too costly to cover cargo operators under the new rule compared to the benefits generated; it encourages cargo operators to opt into the new rule voluntarily. The final rule will take effect in two years; an FAA fact sheet is online.

[ POSTED JANUARY 3, 2012 ]

…and cargo pilots challenge exclusion
The Independent Pilots Association, which represents pilots for UPS, on Dec. 22 filed a petition with the U.S. Court of Appeals challenging the FAA's exclusion of cargo operations from the new flight and duty time rule. “To potentially allow fatigued cargo pilots to share the same skies with properly rested passenger pilots creates an unnecessary threat to public safety,” said Capt. Robert Travis, IPA president. “We can do better.” Pilot union leaders at UPS and FedEx sent a joint letter to President Obama strongly opposing any cargo exemption from proposed new regulations. Travis was joined by ALPA President Lee Moak and ALPA FedEx Master Executive Council Chairman Scott Stratton in sending the letter. "We strongly request that you direct the Office of Management and Budget to require 'One Level of Safety' with respect to fatigue mitigating rules," wrote the union leaders. Travis said the statement sends a clear and unambiguous message to the White House. "This letter is in response to an eleventh-hour move by the cargo aviation lobby attempting to kill years of effort to incorporate science-based fatigue rules into the FARs," he added.

[ POSTED JANUARY 3, 2012 ]

Study finds link between airline profitability, accident rates

Airlines’ accident risk is highest when they are performing very close to their financial targets, according to a study by a professor in Brigham Young University’s Marriott School of Management. “The accident risk went down as they got further away from their financial goals in either direction,” said Peter Madsen, assistant professor of organizational leadership and strategy. “Speaking generally, airlines are safest when their financial performance is either much better or much worse than it has been in the recent past.” The study, which will be published in a forthcoming issue of the Journal of Management, looked at 133 U.S. airlines from 1990 to 2007. Madsen’s complex statistical analysis showed that for every 10 percent deviation in an airline’s actual financial performance from its profitability goal, there is a 7 percent decrease in the likelihood of an accident. “I don’t think people are saying consciously, ‘We really want to hit this financial target, let’s cut back on our safety expenditures,’” Madsen said. “But it’s well documented that people will take risks to achieve goals, even if they don’t realize they’re doing it.” Additional financial incentives for safety “aren’t a silver bullet,” added Madsen, who has researched that subject. But they can balance the significance of financial or operational goals in employees’ minds. More information on his research is available online.

[ POSTED JANUARY 3, 2012 ]

United mechanics ratify agreement

United Airlines, a wholly owned subsidiary of United Continental Holdings, Inc., on Dec. 29 announced that mechanics represented by the International Brotherhood of Teamsters ratified a new labor agreement with the company. "This is another important step which benefits our co-workers and contributes to the future success of United," said Jim Keenan, senior vice president of Technical Operations for United. "We now turn our attention to a joint agreement for all United and Continental mechanics, and are committed to reaching an agreement that is fair to the company and fair to our employees." The new agreement covers approximately 5,500 United mechanics. The company and the IBT will soon begin negotiations for a joint collective bargaining agreement for mechanics at both the United and Continental subsidiaries. Continental mechanics represented by the IBT ratified their collective bargaining agreement in November 2010. The Teamsters said the contract provides significant wage increases, maintenance of health care benefits, and enhanced job security protections. Passage of the agreement is a major step toward achieving their ultimate goal of a single combined contract for the 9,000 Teamster mechanics at the merged carrier.

[ POSTED JANUARY 3, 2012 ]

Delta announces new domestic hub at LaGuardia

Delta Air Lines announced Dec. 16 its schedule for a new domestic hub at New York's LaGuardia airport. The carrier said it would significantly expand its service at the airport, adding more than 100 new flights and 29 new destinations. Delta said the hub will be the largest single expansion by any carrier at LaGuardia in decades, increasing flights by more than 60 percent. By summer 2012, the carrier said it will operate 264 daily flights from the airport. The additional LaGuardia flights were made possible under an agreement between Delta and US Airways to exchange takeoff and landing rights at LaGuardia and Reagan National Airport in Washington, D.C., which was completed Dec. 13. Delta said it will add nonstop service to Miami, Dallas/Fort Worth, Houston, Charlotte, Denver, Pittsburgh, Milwaukee, and Cleveland; the new flights—and increased frequency to other business markets—will begin March 25 and July 11, 2012, depending on the market.

[ POSTED DECEMBER 20, 2011 ]

Flight attendants praise mediation board decision

The United States Court of Appeals for the District of Columbia has upheld a National Mediation Board (NMB) decision to stop assigning "no" votes to workers who do not participate in union elections. "This decision confirms that the National Mediation Board has full and absolute authority to bring democracy to union elections in their jurisdiction,” the Association of Flight Attendants-CWA (AFA) said in a statement. “We urge Congress to move forward with a clean, long-term reauthorization of the Federal Aviation Administration.” The union said ideologues have held up its passage “on the hope that they could strip aviation workers of their democratic right of free and fair union elections.” AFA represents nearly 60,000 flight attendants at 24 airlines.

[ POSTED DECEMBER 20, 2011 ]

FedEx orders 767, 777 freighters

FedEx Express has ordered 27 Boeing 767-300 Freighters and has exercised existing options for two additional 777 Freighters, The Boeing Company announced Dec. 15. Boeing said the new 777 Freighters will support FedEx's growth in the international cargo market, and that the 767 Freighter will be a new model for the Memphis, Tenn.-based freight carrier's fleet of more than 690 airplanes. Adding the 767 Freighters will enable FedEx to replace less efficient, medium widebody cargo airplanes. The 767 Freighter, based on the 767-300ER (extended range) airliner, can carry approximately 58 tons of revenue cargo with intercontinental range. FedEx, the largest operator of 777 freighters, has 17 of them in operation, and orders and options for an additional 41 aircraft.

[ POSTED DECEMBER 20, 2011 ]

Boeing delivers 7,000th 737

The 7,000th Boeing 737 to come off the production line is flying for Dubai-based flydubai. The airplane, delivered Dec. 16, is the carrier’s 14th Next-Generation 737-800. Boeing said the 737 is the best-selling commercial jetliner of all time with total orders exceeding 9,300 airplanes, including orders for the new 737 MAX. With more than 5,400 airplanes in service, the 737 represents more than a quarter of the total worldwide fleet of large commercial jets flying today. More than 358 airlines in 114 countries fly the model.

[ POSTED DECEMBER 20, 2011 ]

Bankruptcy to accelerate American fleet changes

AMR Corporation, the parent company of American Airlines and American Eagle that voluntary filed for Chapter 11 bankruptcy reorganization Nov. 29, has announced to lenders and aircraft lessors that it is accelerating its fleet upgrade plan, using the bankruptcy process to reject some leases and renegotiate payment rates for others. The company said that some aircraft leases will be rejected soon, while others may be rejected later. In addition, to conserve liquidity it plans to make payments when due of aircraft rent and mortgage principal and interest only on certain aircraft in the fleet. The airline recently announced a significant order for Airbus and Boeing narrowbody aircraft. “We cannot afford to retain all the aircraft currently in the American and American Eagle fleets at their current rates, and so we have no choice but to make substantial reductions in the cost of the aircraft which we retain. Moreover, in view of the large number of aircraft we have on order from Airbus and Boeing, we also seek to accelerate our fleet renewal strategy and, as a result, we do not require the use of all aircraft currently in our fleets,” wrote Beverly K. Goulet, vice president of corporate development and treasurer, in a letter to aircraft lessors, lenders, and trustees. “We have been developing a comprehensive plan which re-values aircraft based on current values, taking into account required maintenance, the need to phase out older types, and desired fleet efficiencies. We will be sending proposals to many of our aircraft lessors, lenders, and trustees soon.”

[ POSTED DECEMBER 13, 2011 ]

Pinnacle seeks to modify contracts, agreements

Pinnacle Airlines Corp. announced Dec. 8 that it has commenced a comprehensive program to reduce short- and long-term costs and enhance liquidity. The airline plans to seek modifications to its agreements with its mainline airline partners, equipment lessors, debt holders, real property lessors, and vendors, as well as to work with its pilots and other employees (both union and nonunion) to reduce labor costs. Pinnacle said that as part of its efforts, it will examine and further rationalize its business lines, organizational structure, and executive and director level functions. "Pinnacle Airlines Corp. is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year," said Sean Menke, the company's president and CEO. Pinnacle, with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc.; it operates 279 aircraft on more than 1,540 daily flights for Delta Connection, United Express, and US Airways Express.

[ POSTED DECEMBER 13, 2011 ]

Boeing decries continued Airbus subsidies

Boeing issued a statement Dec. 9 after the U.S. Trade Representative continued its efforts to ensure European Union compliance with last June's WTO ruling regarding illegal subsidies to Airbus. "Boeing is disappointed that EADS/Airbus and European governments have failed to comply with the WTO's landmark ruling against launch aid and other forms of illegal government subsidies that Airbus has received for more than 40 years,” the company said. “Boeing strongly supports all the efforts by the U.S. Trade Representative to seek full compliance with the removal of all the illegal government subsidies to Airbus—particularly market-distorting launch aid, the most pernicious form of subsidy Airbus was found to have received. There can be no compliance with the WTO's ruling that ignores any noncommercial launch aid that Airbus is currently receiving for the A350. Despite the very clear WTO ruling, EADS/Airbus and European governments have failed to remove outstanding subsidies. This illegal subsidization of Airbus products—plane after plane—is unsustainable and must stop now."

[ POSTED DECEMBER 13, 2011 ]

American, AMR file for bankruptcy reorganization

AMR Corporation, the parent company of American Airlines and American Eagle, announced Nov. 29 that it has filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. The company made the move in an effort to assure its long-term viability by achieving a cost and debt structure that is industry competitive. The Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs, and other obligations. Most of American’s legacy-carrier competitors went through this process in recent years. AMR’s board has named Thomas W. Horton chairman and chief executive officer, succeeding Gerard Arpey, who on Nov. 28 informed the board of his decision to retire. The carriers said they are operating normal flight schedules. "This was a difficult decision, but it is the necessary and right path for us to take—and take now—to become a more efficient, financially stronger, and competitive airline,” Horton said. “We must address our cost structure, including labor costs, to enable us to capitalize on [our] foundational strengths and secure our future. Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable.”

[ POSTED DECEMBER 6, 2011 ]

United, Continental receive single operating certificate

United Continental Holdings, Inc. announced Nov. 30 that it had received FAA approval for a single operating certificate. While significant from an operational policies and procedures perspective, the move does not change how customers interact with the airline. Customers of United and Continental will continue to shop for flights, obtain seat assignments, and check flight status on each carrier's respective website until the company migrates to a single passenger service system in the first quarter of 2012. The two carriers went through a rigorous 18-month process of aligning operating policies and procedures to obtain the single operating certificate.

[ POSTED DECEMBER 6, 2011 ]

Southwest announces new Air Tran flights to Mexico

Southwest Airlines announced Dec. 5 that its wholly owned subsidiary AirTran Airways has received route authority approval from the U.S. Department of Transportation to operate international flights to new destinations in Mexico beginning as early as May 24, 2012. AirTran's new flights will include one daily roundtrip between Orange County, Calif., and Cabo San Lucas/San Jose del Cabo, and one daily roundtrip between Orange County and Mexico City. The carrier also will initiate four weekly roundtrips between San Antonio and Cancun, as well as one daily roundtrip between San Antonio and Mexico City. To support the new international flights out of Orange County's John Wayne International Airport, a market not currently served by AirTran, it will add one daily roundtrip flight between San Francisco and Orange County, and another between Las Vegas and Orange County, beginning June 3, 2012.

[ POSTED DECEMBER 6, 2011 ]

Horizon Air pilots to receive wage increase

Horizon Air and its pilots, represented by the International Brotherhood of Teamsters APA Local 1224, announced Dec. 1 that the neutral arbitrator responsible for setting the 2012-2013 wage structure has ruled that there should be a 2.8 percent increase for all Horizon Air pilots in 2012 and an additional 1.2 percent increase for first officers in 2013, as outlined in the proposal by the union. "Despite our different views on compensation levels, Horizon and the IBT always agreed about one thing: the professionalism of our highly skilled pilots and the great value they add to Horizon every single day," said President Glenn Johnson. In November 2010, Horizon's pilots ratified their current five-year contract, which becomes amendable December 2015. It includes a clause specifying that wages will be reexamined by the company and the union twice, once in 2011 and again in 2013. Horizon and the IBT will return to the negotiating table by late 2013 to attempt to arrive at an agreement for 2014-2015 wages. If a tentative settlement is not achieved and ratified, the decision will shift to an outside neutral arbitrator as it did this year.

[ POSTED DECEMBER 6, 2011 ]

JetBlue wins slots at LaGuardia, Reagan National

JetBlue Airways announced Dec. 1 that it has completed an agreement to purchase eight slot pairs each at New York LaGuardia and Ronald Reagan Washington National airports recently made available in an FAA auction. A slot pair provides authorization for one daily arriving flight and one daily departing flight, allowing the carrier to double its service at both airports in 2012. The slot pairs were relinquished by Delta Air Lines and US Airways as part of a transfer agreement announced May 23 in which Delta acquired 132 slot pairs at LaGuardia from US Airways, and US Airways obtained 42 slot pairs at Reagan National from Delta.

[ POSTED DECEMBER 6, 2011 ]

Boeing rolls out first 737 completed at higher rate

Boeing rolled out its first Next-Generation 737 completed at the increased production rate of 35 airplanes a month on Dec. 4. The new 737-800 was towed to nearby Renton Field where Boeing conducts functional testing and first flights for all new airplanes. The airplane, which still must undergo testing and painting, will be delivered to Norwegian Air Shuttle in early January. Some work teams have been preparing for the increased production rate more than a year. Boeing has announced it will increase the 737 rate to 38 airplanes a month in the second quarter of 2013 and to 42 airplanes a month in the first half of 2014.

[ POSTED DECEMBER 6, 2011 ]

Republic pilots vote to authorize strike

Pilots for three airlines owned by Indianapolis-based Republic Airways Holdings have voted to authorize their union leaders to call a strike against the company should it become necessary. International Brotherhood of Teamsters Local No. 357 members who fly for Chautauqua, Republic Airlines, and Shuttle America overwhelmingly voted "yes" in a strike authorization election that closed Nov. 22. Union representatives and the company have been in federally mediated contract negotiations under the Railway Labor Act; all scheduled mediation sessions have concluded. The vote means union leaders can exercise pilots' legal right to strike upon release from the National Mediation Board, but does not force the union to call a strike, the union said. The pilots’ contract has been amendable since 2007. Local 357's leadership has willingly limited contract negotiations to four critical sections: outsourcing, compensation, displacements/vacancies, and scheduling. "We don't want to strike," explained Pat Gannon. "However, we need the company to understand that it is in everyone's best interest to treat pilots fairly and with respect. We have pilots who work long hours, but still can't feed their families." First officer pay has topped out and continued increases in benefit costs have resulted in what is essentially a pay cut for many, he said.

[ POSTED NOVEMBER 29, 2011 ]

Most requested charter legs reported

Ever wonder what the most frequently requested charter-flight routes are? The most popular routes searched for by customers are to "tourist" destinations California and Florida, with four of the six most popular routes ending in Florida, reported EmptyLegMarket LLC, an online clearinghouse for empty-leg flights, based on a study of more than 11,000 flight requests from its website.
The top 10 most frequently searched routes:

1. California to Florida
2. California to California (intra California)
3. New York to Florida
4. New York to Nevada
5. Texas to Florida
6. New Jersey to Florida
7. New York to New York (intra New York)
8. California to Texas
9. Virginia to California
10. Texas to New York

This kind of information can help jet operators shift their fleet around in order to get more utilization out of their jets, said Elliott Schwartz, director of operations for EmptyLegMarket. The company consolidates on-demand empty-leg flights onto one website, allowing customers to identify the best options and values for private jet charter, and then connects the potential passenger directly with the operator. Chartering an empty-leg flight can save up to 50 percent of the cost of a normal charter, he said.

[ POSTED NOVEMBER 29, 2011 ]

Boeing’s 100th Next-Gen 737-900ER goes to Tajikistan

Boeing's 100th Next-Generation 737-900ER has been delivered to Tajikistan-based Somon Air, Boeing announced Nov. 22. To date, the extended-range jet has logged 414 orders from 16 customers. More than 6,000 jets have been ordered from the Next-Generation 737 family, of which some 3,800 have been delivered. The higher-capacity, longer-range derivative of the 737-900 was launched in July 2005 with an order for 30 airplanes from Indonesia's Lion Air and introduced into service in April 2007; it replaces the larger, single-aisle Boeing 757, which ceased production in 2004.

[ POSTED NOVEMBER 29, 2011 ]

ASA, ExpressJet merger creates largest regional

SkyWest, Inc. announced that its wholly owned subsidiary, Atlantic Southeast Airlines—and ExpressJet Airlines, a wholly owned subsidiary of Atlantic Southeast—received FAA approval Nov. 17 for a single operating certificate, the final regulatory step for the two merging airlines to operate as one. The FAA's approval comes 12 months after SkyWest announced its acquisition of ExpressJet and plans to merge the two airlines. Effective Dec. 31, 2011, the combined airline will operate solely as ExpressJet Airlines. SkyWest said it will be the largest regional airline in the world, with more than 400 aircraft operating 2,350 flights each day.

[POSTED NOVEMBER 22, 2011]

NMB denies AFA interference claims in Delta election

The National Mediation Board on Nov. 18 rejected claims of interference filed by the Association of Flight Attendants following the November 2010 Delta flight attendant representation election. With its ruling, the NMB has upheld the decision of a majority of voters to reject AFA representation, allowing Delta flight attendants to move forward as a combined workgroup. “We will immediately begin the process of aligning pay, benefits, work rules, and seniority for our flight attendants, including bringing premerger Northwest flight attendants up to the Delta flight attendant hourly pay rates," said Joanne Smith, senior vice president for in-flight service. However, the union condemned the board’s decision to deny charges of management interference in the November 2010 union representation election. The board’s decision throws out 60 years of bargaining rights for Northwest flight attendants and denies Delta flight attendants any say over their working conditions, the union said, adding that the decision ignores the outrageous interference of Delta management in the union election among 25,000 flight attendants. The election reportedly was decided by 300 votes.

[POSTED NOVEMBER 22, 2011]

Airlines sue to halt U.S. Export-Import Bank aircraft financing

The Air Transport Association of America on Nov. 16 filed suit against the Export-Import Bank of the United States to halt a pending deal for $3.4 billion in loan guarantees for aircraft financing to Air India. The bank recently approved $1.3 billion in U.S. taxpayer-backed loan guarantees for Air India, and is considering an additional $2.1 billion in loan guarantees to support the purchase of 30 aircraft, including 27 Boeing 787s for delivery between 2011 and 2015. Earlier this month, ATA wrote the bank, saying that loan guarantees to Air India and other foreign carriers fail to comply with specific statutory mandates, including consideration of the impact from such financings on U.S. industry and jobs. The association asserted that the bank’s practices put U.S. carriers at a commercial disadvantage because the loan guarantees enable foreign carriers to obtain aircraft financing at considerably lower rates—as much as 50 percent less than what U.S. airlines must pay on the commercial market. The bank’s guarantees to foreign carriers have forced U.S. airlines to cut between 4,100 and 7,500 jobs, costing employees $372 million to $684 million in lost income, ATA said.

[POSTED NOVEMBER 22, 2011]

American chooses Airbus A319, A321 variants

American Airlines announced Nov. 21 that it selected the Airbus A319 and A321 variants to be a part of its A320 family fleet order, which was announced in July 2011. These new aircraft, which American expects to begin taking delivery of in 2013, build upon the airline's efforts to enhance its fleet in order to be more fuel efficient and provide customers with a state-of-the-art travel experience. The financial terms of the lease transactions for the 130 current-generation A319 and A321 aircraft were not disclosed. American announced in July 2011 that it would take delivery of 130 current-generation aircraft from the Airbus A320 family starting in 2013; beginning in 2017, American expects to begin taking delivery of 130 aircraft from the A320neo (New Engine Option) family. The carrier is also strengthening its Boeing fleet, with plans to acquire 200 additional aircraft from the 737 family, with options for another 100 737 family aircraft. In addition, American plans to acquire 42 787 Dreamliners and has firm orders for 15 777 widebody aircraft.

[POSTED NOVEMBER 22, 2011]