Career Pilot
2012 Industry News
United, Continental pilots ratify joint contract
The pilots of United and Continental, represented by the Air Line Pilots Association, have approved a joint collective bargaining agreement with United Continental Holdings, Inc., the airline announced Dec. 15. More than 97 percent of 10,193 eligible pilots cast votes, with 67 percent in favor of the contract. Union spokesmen said the new contract—which will be implemented immediately, bringing pilots from both airlines under a single contract for the first time—will provide gains in compensation, work rules, and job protections, as well as retirement and benefits for the pilots. Integrating the seniority lists of legacy Continental and legacy United pilots is the next major hurdle in combining the two pilot groups and is expected to take several months to complete. The contract runs through December 2016.
[POSTED DECEMBER 18, 2012]
Pinnacle pilots reach tentative agreement
Pinnacle Airlines Inc. reached a tentative agreement with the Air Line Pilots Association—the union representing its pilots—that covers pay, retirement, work rules, and benefits, parent company Pinnacle Airlines Corp. announced Dec. 17. A separate agreement between Pinnacle, Pinnacle pilots, and Delta Air Lines includes long-term career opportunities and the addition of 40 CRJ-900s to the Pinnacle fleet. The CRJ-900 deliveries are scheduled from fall 2013 to the end of 2014, establishing Pinnacle's long-term fleet at 81 CRJ-900 aircraft. The carrier will remove its 140 CRJ-200 aircraft from the fleet over the next two to three years. Union members will vote on the tentative agreement in January. The carrier said the agreement moves Pinnacle closer to concluding its Chapter 11 bankruptcy reorganization.
[POSTED DECEMBER 18, 2012]
United, Qatar report 787 generator failures
United Airlines said Dec. 14 that it removed a second Boeing 787 Dreamliner from service because of a problem with an electrical panel, the Boston Herald reported. The incident was not disclosed until 10 days after a generator failure caused the flight from Houston to Newark, N.J., to divert to New Orleans. United told the newspaper Dec. 14 that the earlier 787 problem had been traced to an issue with an electrical control panel. Meanwhile, Qatar Airways said a 787 that had just been delivered by Boeing was grounded because of a faulty generator, The Seattle Times reported Dec. 13. The generator failure occurred as Qatar Air’s third 787 was being delivered from the United States; the carrier is scheduled to receive 10 of the composite Dreamliners by the end of this year.
[POSTED DECEMBER 18, 2012]
US Airways proposes merger with American
AMR Corp.’s new contract with pilots at its American Airlines subsidiary has paved the way for a formal proposal from US Airways Group to merge with American, which has operated under bankruptcy protection since November 2011. The proposed merger could value the combined airline at around $8.5 billion, two sources familiar with the matter told Reuters Dec. 7. US Airways proposed an all-stock merger in a mid-November meeting with AMR's unsecured creditors committee, Reuters reported; AMR creditors could own 70 percent of the merged company while US Airways shareholders would have 30 percent. A merger agreement could come as early as January. Almost 75 percent of American pilots who cast votes were in favor of the new Allied Pilots Association contract, which the union said would give pilots a 13.5-percent ownership share in AMR.
[POSTED DECEMBER 11, 2012]
Delta, Virgin Atlantic announce alliance
Delta Air Lines and Virgin Atlantic Airways Ltd. announced an agreement Dec. 11 for a new joint venture that will create an expanded trans-Atlantic network. Under the agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49-percent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain their majority 51-percent stake; Virgin Atlantic Airways will retain its brand and operating certificate. The joint venture will operate on a "metal neutral" basis, with both airlines sharing the costs and revenues from all joint-venture flights. The carriers will file an application with the U.S. Department of Transportation for antitrust immunity; both the share purchase and joint venture are expected to be implemented by the end of 2013.
[POSTED DECEMBER 11, 2012]
Delta CRJ 900s to replace 50-seat aircraft
Delta Air Lines continues to restructure its domestic fleet with a Dec. 6 agreement with Bombardier Aerospace that will allow the airline to replace less-efficient, single-class 50-seat aircraft with new two-class, 76-seat jets. Under the agreement, Delta will acquire 40 new CRJ 900 regional jets, with the option to purchase an additional 30 CRJ 900s, and Bombardier will help Delta phase out 60 smaller CRJ 200 jets. Deliveries of the CRJ 900s will begin in the second half of 2013, and the new planes primarily will replace 50-seat aircraft on a capacity-neutral basis. Delta previously announced the addition of 88 Boeing 717-200 aircraft, mostly to replace 50-seat aircraft, and the acquisition of 100 new Boeing 737-900ER jets that will replace Boeing 757 and 767 aircraft.
[POSTED DECEMBER 11, 2012]
Southwest seeks Washington National slots
Southwest Airlines announced Dec. 7 that it has filed an application with the U.S. Department of Transportation for slot exemptions allowing Southwest to offer nonstop service between Ronald Reagan Washington National Airport and Houston’s William P. Hobby Airport. The proposal became possible when Spirit Airlines discontinued use of the slot exemptions, which are available for use inside Washington National's traditional 1,250 mile service perimeter. A DOT decision is expected in the first quarter of 2013; Southwest said it could begin the new service in the spring.
[POSTED DECEMBER 11, 2012]
Delta could acquire 49% stake in Virgin Atlantic
Delta Air Lines Inc. is talking with Singapore Airlines Ltd. about purchasing Singapore’s 49-percent ownership share in Virgin Atlantic Airways Ltd. Two sources confirmed talks about a potential sale, which could allow Virgin to enter an alliance with SkyTeam partners Delta and Air France-KLM Group and lead to an expanded Delta presence at London’s Heathrow airport, Bloomberg Businessweek reported Dec. 3. With only about 5 percent of takeoff and landing slots, the SkyTeam alliance currently has the smallest presence of any airline partnership at Heathrow. Sources told Bloomberg Businessweek that Delta is discussing the purchase of a portion or the entirety of Singapore Airlines’ stake in Virgin Atlantic. Delta, Air France-KLM, and Virgin Atlantic declined to comment; in a statement, Singapore Airlines said any discussions may not lead to a sale. London’s The Sunday Times broke the story of the discussions Dec. 2, noting that Air France-KLM may purchase a portion of Sir Richard Branson’s 51-percent share, which would give control of Virgin Atlantic to the SkyTeam partnership. Delta has sought an ownership share in Virgin for two years, Reuters has reported.
[POSTED DECEMBER 4, 2012]
Flight attendants gain OSHA protections in cabin
The Association of Flight Attendants-CWA (AFA) announced Nov. 30 that federal Occupational Safety and Health Administration (OSHA) protections will be extended to flight attendants’ work aboard commercial aircraft. The union said the FAA and OSHA worked collaboratively “to reach the policy statement released today that will correct a nearly four-decade-old exclusion of OSHA in the passenger cabin.” In 1975, the FAA claimed exclusive jurisdiction over workplace safety and health for all crewmembers, AFA said—preventing OSHA, the agency that regulates the safety and health of most U.S. workers, from protecting flight attendants and other crewmembers while working on board commercial airline flights. Flight attendants did have OSHA protection at work in locations other than the aircraft cabin.
[POSTED DECEMBER 4, 2012]
Boeing 737 breaks single-year order, delivery records
Boeing set a record for year-to-date 737 deliveries with its Dec. 3 delivery of the 377th Next-Generation 737. Delivery of the airplane, a 737-900ER for United Airlines, topped the previous record of 376 deliveries set in 2010. In October, the 737 also broke its own record for net orders in a single year when it surpassed the 2007 record of 846 orders; Boeing said net year-to-date orders for the Next-Generation 737 and 737 MAX total 1,031 airplanes.
[POSTED DECEMBER 4, 2012]
American restructuring nears completion, except for pilots
A year after filing for bankruptcy, American, parent AMR Corp. has made significant progress in restructuring the carrier—almost all labor contracts have been renegotiated, the fleet has been determined; and one big question remains: whether American will merge with US Airways, the Dallas Morning News reported. The newspaper also reported that American will begin to recall furloughed pilots in January. There are about 650 American pilots on furlough who have not been offered the chance to return to work; the carrier has recalled more than 1,100 pilots since 2007, and another 1,000 pilots deferred a decision about returning to the cockpit. Concerned about retirements, the carrier has petitioned the bankruptcy court to eliminate the ability for pilots to receive pension benefits as a lump sum—an option unavailable during the bankruptcy—because it would “fuel a massive wave of pilot retirements” when American emerges from bankruptcy. The resulting pilot shortage would lead to cancelled flights, grounded aircraft, and lost revenue, said the carrier, adding that it would terminate the pilots’ pension plan if its request is not granted.
[POSTED NOVEMBER 27, 2012]
Tentative pilot agreement would allow United more large RJs
A tentative labor agreement between United Airlines and the Air Line Pilots Association (ALPA) would enable the carrier to increase the number of large regional jets in its fleet from about 168 aircraft this year to 255 by the beginning of 2016, Flightglobal.com has reported. ALPA said United would have to meet several contract requirements that include a “unique” block hour ratio. Also allowed by the tentative agreement would be the addition of “new small narrowbody aircraft,” with 90 to 120 seats, to the carrier’s mainline fleet, the union added. The document caps regional aircraft at 450, which Flightglobal.com said could require eliminating less-efficient 50-seat RJs; United currently rosters the largest fleet of regional jets with 50 or fewer seats in the United States.
[POSTED NOVEMBER 27, 2012]
Hawaiian launches service to Brisbane
Hawaiian Airlines announced Nov. 27 that it had initiated nonstop service to Brisbane, Australia—the carrier’s second gateway city in Australia—using Boeing 767-300ER aircraft that seat 264 passengers. Hawaiian also offers nonstop daily flights between Sydney and Honolulu using 294-seat Airbus A330-200 aircraft. Hawaiian is the only U.S. carrier serving Brisbane, and timed its flight schedule to connect with same-day flights through an interline partnership with domestic carrier Virgin Australia. Hawaiian said the Brisbane-Honolulu service would benefit Hawaii’s visitor industry by adding 41,000 new air seats to the market annually. In the past two years, Hawaiian has introduced or announced new service to Tokyo, Osaka, Fukuoka, and Sapporo, Japan; Seoul, South Korea; and New York City; it will begin service to Auckland, New Zealand, in March 2013.
[POSTED NOVEMBER 27, 2012]
Fiscal cliff would cut business travel
If the U.S. economy falls over the "fiscal cliff," it would have an immediate and severe impact on U.S. business travel, according to new research announced Nov. 15 by the Global Business Travel Association Foundation. If the fiscal cliff occurs, the research indicates that the U.S. economy would enter a recession, leading to a loss of $20 billion in spending on U.S. business travel over the next nine quarters—a 2.5-percent decline—and the elimination of 32 million business trips. However, if all provisions of the fiscal cliff are eliminated or delayed indefinitely, business travel would experience more robust trip volume, leading to a gain of $5.5 billion in total business travel spending over the next nine quarters.
[POSTED NOVEMBER 20, 2012]
US Airways flight attendants await strike vote results…
Flight attendants at US Airways, represented by the Association of Flight Attendants-CWA (AFA), held protests at four airports Nov. 14 after management failed to negotiate a single contract for the carrier’s more than 6,700 flight attendants. The America West/US Airways merger of 2005 remains incomplete, with flight attendants still working under separate contracts and in separate operations, the union said. Results from the current strike authorization vote, which concludes Nov. 20, will be announced in less than a week. The union said that while US Airways profits soar, premerger America West flight attendants haven't seen contract improvements since 1999 and premerger US Airways flight attendants continue to work under a contract they reached during the airline's bankruptcy. "[US Airways Chairman and CEO] Doug Parker needs to tend to the unresolved issues at the nation's fifth largest, but fractured, airline before seeking a takeover of American," said Roger Holmin and Deborah Volpe, presidents for AFA representing flight attendants for premerger US Airways and America West, respectively.
[POSTED NOVEMBER 20, 2012]
…while Spirit flight attendants seek NMB declaration
Flight attendants at Spirit Airlines, also represented by the Association of Flight Attendants-CWA, will march on informational picket lines at four airports across the country Nov. 19 through 21 during the busy Thanksgiving travel week. Earlier this year, AFA asked the National Mediation Board to declare that negotiations with the carrier are at an impasse; when it does, the parties will be released into a 30-day cooling-off period, after which the union could strike. Spirit flight attendants authorized a strike by an overwhelming 98.4-percent majority. Picketing is planned at Fort Lauderdale International, Detroit Metropolitan, Atlantic City International, and McCarran International airports.
[POSTED NOVEMBER 20, 2012]
American, pilots reach tentative agreement
After six years of negotiations, American Airlines and its pilot union—the Allied Pilots Association—announced Nov. 9 that they have reached a tentative contract agreement, Lance Murray reported Friday in the Dallas Business Journal. The agreement resulted from a union counteroffer to American’s most recent proposal. "APA designed our comprehensive counter-proposal to provide our pilots with an industry-standard contract while enabling American Airlines to complete a successful restructuring and compete on a level playing field with its network-carrier peers," the union said in a message to its members. The APA board must vote to send the agreement to its membership for ratification, and then schedule that vote.
[ POSTED NOVEMBER 13, 2012 ]
U.S. carriers to cut capacity in 2013
Airlines for America (A4A), the trade association for major U.S. air carriers, anticipates that its member carriers will reduce capacity next year in an effort to align available seat miles (ASMs) with passenger demands in the face of rising fuel prices, AIN Online reported Nov. 12. A4A projects a reduction in scheduled domestic flights of 2.4 percent, a reduction in domestic seats of 1.3 percent, and an overall reduction in ASMs of 0.1 percent. The cut in domestic ASMs in early 2013 would reflect a decline of nearly 10 percent from the first quarter of 2007, just before the global recession. The association expects that capacity on flights from the United States to Europe will decrease by 8.3 percent, although an increase of 8.8 percent for flights from the United States to the South Pacific region is expected. Latin America and the Caribbean will see more modest gains. John Heimlich, chief economist for the trade organization, said the high cost of jet fuel was largely to blame.
[ POSTED NOVEMBER 13, 2012 ]
Pinnacle flight attendants ratify agreement
Flight attendants for Pinnacle Airlines, represented by the Association of Flight Attendants-CWA (AFA), ratified a six-year agreement Nov. 6 that the union said preserves wages, protects affordable health care, and provides job security for the airline’s more than 1,500 flight attendants. The agreement, reached with the assistance of the National Mediation Board, includes $6.4 million in concessions demanded by Pinnacle management as part of the carrier’s Chapter 11 restructuring process. "Ratifying the tentative agreement does not mean we like it,” said Terry French, AFA president at Pinnacle. “Ratifying the agreement means we understand the value of preserving an enforceable contract, hourly wage rates, affordable health care, and job protections. Still, the deck is stacked against the frontline workers who make Pinnacle fly.” The agreement was ratified by 71 percent of Pinnacle flight attendants voting and will not take effect until concessions are put in place for all work groups, whether through agreement or court authority. Pinnacle, a Delta Connection carrier, filed for bankruptcy protection in April. John Spanjers, the airline’s president and chief executive officer, said ratification represents a major step forward in positioning the company to emerge from bankruptcy restructuring.
[ POSTED NOVEMBER 13, 2012 ]
Boeing increases 787 production rate
Boeing employees began last week to roll out 787 Dreamliners at the new rate of five airplanes per month, Boeing announced Nov. 12. The first airplane built at the new rate was the 83rd 787 built. Boeing earlier this year increased the rate from 2.5 to 3.5 airplanes per month and is on track to achieve a planned 10-per-month rate by late 2013. The program production rate accounts for airplanes built at Boeing South Carolina and Everett, including the temporary surge line that was activated earlier this year in Everett. To date, 35 787s have been delivered to eight airlines; the program has more than 800 aircraft on order.
[ POSTED NOVEMBER 13, 2012 ]
American pilot talks progress; US Airways could make offer soon
Significant progress has been made recently in contract talks between AMR Corp.—parent company of bankrupt American Airlines—and the Allied Pilots Association, the union representing its pilots, Terry Maxon reported in The Dallas Morning News’ Airline Biz Blog Nov. 5. Maxon shares an open letter to American’s pilots that reads, in part, “Your collective rejection [of American’s last, best, final offer] and insistence on maintaining your professional stature is solely responsible for the positive results that have occurred since.” The most significant issue not yet resolved is scope; the union wants to limit regional partners to flying aircraft with a maximum capacity of 76 seats and maximum weight of 86,000 pounds, while the airline wants 79 seats and 93,000 pounds. In addition to salary increases, pilots would receive 13.5 percent of AMR stock when the carrier exits bankruptcy. The progress might be related to the subject of a Nov. 2 story in The Dallas Morning News, which indicated that US Airways could make an official offer to purchase American in early November. “It’s all coming to a head soon,” one person involved in the process was quoted as saying.
[ POSTED NOVEMBER 6, 2012 ]
Fuel hedging a challenge for airlines
High oil prices and stiff competition have left airlines scrambling to limit losses by hedging future jet-fuel prices, AIN Online reported Nov. 5. Hedging is an involved process through which airlines lock in a fixed fuel cost for a specific time period, preventing unanticipated price fluctuations. “Airlines often do not place enough emphasis on fuel-price risk management,” Michael Corley, president of Mercatus Energy Advisors of Houston, told AIN Online. “It’s their largest unknown cost.” One risk of hedging is that it’s difficult to exit contracts, forcing airlines to pay higher prices for fuel if fuel costs fall.
[ POSTED NOVEMBER 6, 2012 ]
United completes 787 certification, additional jets delayed
United Airlines announced Nov. 2 that it has completed FAA certification requirements for the Boeing 787 Dreamliner. The carrier will fly its initial Dreamliners domestically until the model enters international service next year; its inaugural commercial flight departed Houston for Chicago the morning of Nov. 4. United's first 787 arrived in Houston on Sept. 28 to begin the month-long certification program, which included noncommercial flights to several United stations. It has received two of the 50 Dreamliners it has on order. However, United has told its employees that the deliveries of the remaining Dreamliners scheduled for this year have been delayed, John Gillie reported in the Tacoma, Wash., The News Tribune Oct. 29. United said the delivery delays may change its schedule for using Dreamliners in domestic service, adding that it will not change plans for using the new jets internationally next year.
[ POSTED NOVEMBER 6, 2012 ]
Horizon pilots tentatively agree to 6-yar contract extension
Horizon Air and the International Brotherhood of Teamsters announced Nov. 2 that they have reached tentative agreement to extend the current contract for the carrier's 610 pilots for six years. "This tentative agreement provides greater certainty to our airline and our pilots on a wage structure for the next six years," said Gene Hahn, Horizon Air's senior vice president of operations. “The proposed contract also recognizes our pilots' contribution to Horizon's success and better positions us for growth through productivity enhancements." Pilots will receive pay rate increases, scheduling enhancements, and a higher earnings potential, said Capt. Dan Johnston, executive council chairman for the union. A ratification vote by union members is expected to be completed by mid-December. The current contract was ratified in November 2010 and becomes amendable in December 2015.
[ POSTED NOVEMBER 6, 2012 ]
US Airways posts record load factor
US Airways Group, Inc. on Nov. 5 announced October and year-to-date 2012 traffic results. Mainline revenue passenger miles for the month were 5.1 billion, up three percent versus October 2011. Mainline capacity was 5.9 billion available seat miles, flat compared to October 2011. Total mainline passenger load factor was a record 86.2 percent for the month of October, up 2.5 points from October 2011, and the domestic mainline load factor was even higher—88.1 percent, compared to 84.8 percent for October 2011.
[ POSTED NOVEMBER 6, 2012 ]
American to hire more than 1,500 flight attendants
American Airlines announced Oct. 17 that in early November it will begin the process of recruiting and hiring more than 1,500 new flight attendants, with the first new-hire class beginning training in January 2013. The overwhelming response by current flight attendants to the company's recent voluntary separation options, combined with an aggressive training schedule during the transition to the newly established flight attendant contract, led to the decision. "For the first time in over a decade, American is seeking to add more than 1,500 new flight attendants who we believe will bring new perspectives to the airline," said Lauri Curtis, American's vice president—flight service. The airline will post the job openings in November, at which time eligible candidates can apply online. American intends to start the selection process for new-hire flight attendant candidates in early December.
[ POSTED OCTOBER 23, 2012 ]
Atlas Air, Polar Air Cargo dispatchers reach tentative agreement
Negotiators for the flight dispatchers at Atlas Air and Polar Air Cargo, represented by the Airline Division of the International Brotherhood of Teamsters, announced Oct. 19 that a tentative agreement has been reached on a first contract for the members. The FAA-licensed flight dispatchers, members of Local 210, are responsible for coordination with aircraft flight crews to ensure the safe dispatch and operation of flights around the world for Atlas Air, Inc., and Polar Air Cargo, the world's largest all-Boeing 747 cargo airline. The companies conduct cargo operations for many airlines and provide important airlift of cargo and troops for the U.S. military. The dispatchers voted for Teamster representation four years ago and negotiations began in October 2009. The tentative agreement includes extensive economic improvements as well as multiple positive work rule changes. “Discussions with the company were very businesslike and I believe we have an agreement that recognizes the value of our members and acknowledges the responsibility they bring to the job daily," said George Miranda, president of the local, adding that the agreement moves dispatchers from being at-will employees to contractual employees with security and job protection benefits. A vote on the agreement has not yet been scheduled, but is expected soon.
[ POSTED OCTOBER 23, 2012 ]
Alaska orders 50 new Boeing 737s
Alaska Airlines announced an order for 50 new Boeing aircraft, including the new 737 MAX variant of the Boeing 737, on Oct. 11. The aircraft will be delivered between 2015 and 2022; worth $5 billion at manufacturers’ list prices, they represent the largest order in Alaska Airlines' history. The agreement includes firm orders for 13 Boeing Next-Generation 737-900ERs, 20 737 MAX 8s, and 17 737 MAX 9s. Alaska, which currently operates 120 Boeing 737s, said the new order—plus 25 existing delivery positions—give it the flexibility to manage its fleet size to meet air travel demand over the next decade. Two-thirds of the aircraft are expected to replace older airplanes. The 737 MAX is expected to be 13 percent more fuel efficient than today's most fuel-efficient single-aisle aircraft.
[ POSTED OCTOBER 16, 2012 ]
US Airways flight attendants to take strike vote
Leaders of the flight attendants at US Airways, represented by the Association of Flight Attendants-CWA (AFA), announced a strike vote Oct. 10 to back up their demands for a single contract in the US Airways/America West merger. The strike vote will open on Oct. 31 and close Nov. 20. "The decision to take a strike vote is not made lightly. It was the result of full deliberation of all strategic options,” union leaders said in a statement.
[ POSTED OCTOBER 16, 2012 ]
Compass flight attendants authorize strike
Flight attendants at Delta Connection carrier Compass Airlines, represented by the Association of Flight Attendants-CWA (AFA), on Oct. 12 authorized a strike should negotiations with management fail to reach an agreement that can be ratified. The strike was authorized by an overwhelming 94 percent of participating flight attendants. “Compass flight attendants earn between $14,000 and $19,000 a year. We are sending a clear message to management that we will do whatever it takes to get a fair contract, one that includes a living wage," said Catriona Bagley, AFA Compass president. Compass, owned by Trans States Holdings, provides approximately 190 daily flights to more than 50 Delta Air Lines destinations.
[ POSTED OCTOBER 16, 2012 ]
Pinnacle, flight attendants reach tentative agreement
Pinnacle Airlines flight attendants, represented by the Association of Flight Attendants-CWA (AFA), announced a tentative agreement with airline management on Oct. 12. The agreement was reached with the assistance of the National Mediation Board. Pinnacle Airlines, a Delta Connection carrier, filed for bankruptcy in April. In May, Pinnacle management requested $3.6 million in flight attendant cost reductions and in August, requested permission from the bankruptcy court to impose terms totaling $6.4 million. "The AFA Pinnacle negotiating committee and our team of experts were able to counter virtually all of management's proposed cuts in order to protect our jobs and minimize the impact on flight attendants," said Terry French, AFA Pinnacle president. Pinnacle said it is seeking concessions from all of its employees in order to emerge successfully from Chapter 11 proceedings with a competitive cost structure, and that the two sides reached a tentative agreement on concessions that cover pay, retirement, work rules, and benefits. Details of the tentative agreement will be sent to the carrier’s nearly 1,400 flight attendants prior to the ratification vote, which has not been scheduled.
[ POSTED OCTOBER 16, 2012 ]
American riled by ‘illegal’ pilot actions
American Airlines, in a letter sent to its pilots’ union last week, accused the Allied Pilots Association of engaging in an illegal work slowdown and said that it would take the union to court if pilots continue to disrupt flight schedules. The carrier said pilots were filing last-minute maintenance discrepancies and taxiing slowly, which American said has delayed hundreds of flights. The union has denied involvement in any slowdowns or other work disruption by American’s pilots. "Within 24 hours of being asked to return to the bargaining table, they threaten legal action," APA spokesman Tom Hoban told the Fort Worth Star-Telegram. "This is akin to being sucker punched." American said it would seek an injunction if pilots continue to disrupt operations.
[ POSTED OCTOBER 2, 2012 ]
Delta begins making jet fuel
Delta Air Lines began making jet fuel last week at the Pennsylvania refinery it purchased earlier this year, sources told Reuters. Delta bought the 185,000-barrel-per-day refinery, which had been shut down in September 2011, from Phillips 66 in an effort to control its fuel costs; the carrier believes that the refinery, when fully operational, will reduce its annual fuel bill—some $12 billion in 2011—by $300 million. Delta subsidiary Monroe Energy began operating the refinery at partial capacity while maintenance continues on additional equipment. Monroe will increase jet-fuel production to 32 percent of the refinery’s output, reducing the amount of gasoline produced; it then will trade gasoline and other products made at the facility for jet fuel produced at other U.S. refineries.
[ POSTED OCTOBER 2, 2012 ]
United employees earn bonuses for on-time performance
United Airlines announced Oct. 1 that it exceeded its 80 percent on-time domestic performance goal for the month of September, and is rewarding eligible employees with a $50 on-time. The airline said it ended the month with an 82.0 percent domestic on-time arrival rate, showing continued significant improvement from the prior months. "I thank my co-workers for their focus on returning us to running an on-time airline," said Jeff Smisek, United president and CEO. "As a result of their hard work and our improved performance, we're seeing much higher customer satisfaction." United Airlines and United Express employ more than 85,000 people, operating an average of 5,574 flights a day from 10 hubs to 377 airports on six continents.
[ POSTED OCTOBER 2, 2012 ]
Southwest opens Denver crew base
Southwest Airlines opened its newest pilot and flight attendant crew bases at Denver International Airport on Oct. 1. The new crew domiciles—the airline's ninth—will be home to nearly 400 pilots and 400 flight attendants. Southwest also started performing line maintenance in Denver. "The new crew bases and our line maintenance demonstrate our long-term commitment to Colorado and our successful operation at DIA," said Mike Van de Ven, Southwest's executive vice president and chief operating officer. Southwest already operates crew bases at Baltimore/Washington, Chicago Midway, Dallas, Houston, Phoenix, Oakland, Orlando, and Las Vegas. The carrier began service to Denver on Jan. 3, 2006,
[ POSTED OCTOBER 2, 2012 ]
Reported illness, maintenance cancelling American flights
More than 300 American Airlines flights were cancelled since Oct. 16 because pilots were calling in sick, CNN Money reported Oct. 19, adding that the carrier will reduce its number of flights through the end of this month. The pilots are calling in sick because they are displeased with a new labor contract, the airline told CNN Money. Other news outlets also report an increase in maintenance discrepancies submitted by pilots. The pilots must fly more hours and more American flights can be flown by code-share partners, among other provisions of the new contract, which was imposed on the pilot union by the bankruptcy court after a tentative agreement with the Allied Pilots Association was not approved by the airline’s 7,500 pilots. Consumer advocate FlyersRights.org said American was offering only refunds to many of its customers whose flights are cancelled, instead of accommodating them on interline or code-share partners—forcing many to pay same-day fares to replace discounted tickets purchased earlier. Kate Hanni, the organization’s president, recommended that passengers book their flights on other air carriers if American refuses to put them on an interline carrier at no extra charge.
[ POSTED SEPTEMBER 25, 2012 ]
United accepts first new Dreamliner
Boeing delivered to United Airlines the carrier's first 787 Dreamliner on Sept. 24. United, the first airline in North America to take delivery of the new twinjet, has announced it will temporarily use its 787 aircraft in domestic service before transitioning them to international routes between the United States and Africa, Asia, and Europe. United has 50 composite Dreamliners on order, configured with 219 seats in three classes. It said the first 787 will begin a month-long training and certification program that includes noncommercial flights to each of United's domestic hubs. On Sept. 24, Japan’s All Nippon Airways (ANA)—the 787’s launch customer—announced an order for an additional 11 787-9 Dreamliners, bringing its total order to 66 aircraft. The following day, Sept. 25, marked the one-year anniversary of Boeing’s first 787 delivery to ANA; since then, Boeing has delivered 25 Dreamliners to six customers.
[ POSTED SEPTEMBER 25, 2012 ]
United to launch new routes from Cleveland hub
United Airlines announced Sept. 20 that it will launch daily nonstop service from its Cleveland hub at Hopkins International Airport to Nashville and Oklahoma City, Okla. The new United Express flights will be operated by ExpressJet using 50-seat regional jet aircraft. The service to Nashville will begin Dec. 19, and the Oklahoma City service will begin Feb.14, 2013.
[ POSTED SEPTEMBER 25, 2012 ]
SkyWest announces American Eagle agreement
SkyWest, Inc. announced Sept. 12 that it has signed a four-year capacity purchase agreement with American Airlines to operate 23 Bombardier CRJ200 regional jets under the American Eagle designation. SkyWest anticipates beginning its American flights on November 15, with all 23 aircraft in service by the end of the first quarter 2013. SkyWest said the aircraft will come from its existing fleet, where they previously were operated for another major partner; the company indicated that 12 of the aircraft will be flown by SkyWest Airlines and 11 by ExpressJet Airlines. They primarily will be operated out of Los Angeles and Dallas/Fort Worth international airports. "This agreement is indicative of the credibility of the people and the operational quality of SkyWest, Inc.," said Bradford R. Rich, president of the company. SkyWest is the holding company for the two scheduled passenger airline operations and an aircraft leasing company and is headquartered in St. George, Utah.
[ POSTED SEPTEMBER 18, 2012 ]
Compass flight attendants to vote on strike
Leadership of the Association of Flight Attendants-CWA (AFA) at Compass Airlines called for a strike vote Sept. 14, following 31 months of negotiations that have failed to reach an agreement. Contract talks began in March 2010 and negotiations have been in mediation since October 2011, under the jurisdiction of the National Mediation Board. “Compass management has repeatedly declined, delayed, or canceled available dates for negotiations," said Catriona Bagley, AFA president at Compass. “Management chose a path that led to this strike authorization vote.” Under the Railway Labor Act, airline negotiations must continue unless the mediation board declares an impasse. Arbitration may be offered, but if declined by the parties, the flight attendants may strike following a 30-day cooling-off period. Compass, a Delta Connection carrier owned by Trans States Holdings, operates approximately 190 daily flights.
[ POSTED SEPTEMBER 18, 2012 ]
Alaska launches Seattle-San Antonio service
Alaska Airlines launched daily nonstop flights between Seattle and San Antonio, Texas, Sept. 17. The carrier began service to Dallas/Fort Worth International Airport in 2005 and to Austin and Houston in 2009. Alaska, which now serves 16 destinations east of the Rocky Mountains, will operate the flights using Boeing 737-800 aircraft.
[ POSTED SEPTEMBER 18, 2012 ]
BBJ sets record on long-range flight
Boeing Business Jets set a new world record for Speed Over a Recognized Course when a BBJ flew nonstop from Los Angeles to Auckland, New Zealand, for installation of its VIP interior. The Boeing 737-700, modified for VIP use, made the 5,658-nm trip in 13 hours, 7 minutes, and 54 seconds. Capt. Steve Taylor, BBJ president, said the trip demonstrates the incredible range capability of the BBJ. "When we left Los Angeles with full fuel, we were 21,000 pounds below our maximum takeoff weight. This means that the customer can add a full VIP interior, fill all the seats, and still carry full fuel and have remarkable range.” He said the airplane had 7,800 pounds of fuel remaining when it landed in Auckland Sunday evening. The BBJ, owned by Samsung Electronics, is equipped with seven auxiliary fuel tanks, giving it the extended range. Boeing delivers the BBJ to the customer "green," with no interior or paint, so it can be customized to suit the customer’s specific needs and taste; the customer chooses a completion center to install the interior. The BBJ is the best-selling model of Boeing's business jet line, with 157 sold to date.
[ POSTED SEPTEMBER 18, 2012 ]
American pilots’ contract tossed; maintenance base to close
A federal judge threw out the contract covering American Airlines’ pilots on Sept. 4, clearing the way for the bankrupt airline to reduce its pilot payroll. The Washington Post called the move “a major step toward emerging from bankruptcy” for the carrier, accelerating the Chapter 11 bankruptcy reorganization that many expect could end in a merger with the US Airways Group. Judge Sean H. Lane rejected the pilot union’s contention that the carrier’s finances have improved since entering bankruptcy. American spokesman Bruce Hicks said that the company does not feel a sense of accomplishment after it won the ruling, and that it still wants to negotiate a new contract with the pilots. The carrier said it already negotiated concessions from its flight attendants, maintenance workers, and other unionized employees. American, which filed for bankruptcy protection in November, has about 7,500 active pilots. The carrier will close its maintenance base at Alliance Airport in Fort Worth, Texas, eliminating nearly 1,110 jobs by mid-December, the Dallas Morning News reported Sept. 10. Work done at Alliance will be transferred to maintenance bases at Tulsa and Dallas/Fort Worth International Airport, or outsourced. Tulsa, the carrier’s largest maintenance base, will lose 993 jobs.
[ POSTED SEPTEMBER 11, 2012 ]
FAA approves first airline to use EFBs in all flight phases
American Airlines announced Sept. 10 that it is expanding its iPad Electronic Flight Bag program after becoming the first commercial carrier to receive FAA approval to use the Apple iPad in the cockpit during all phases of flight. “With this approval from the FAA, we will be able to use iPad to fully realize the benefits of our Electronic Flight Bag program—including improving the work environment for our pilots, reducing our dependency on paper products, and increasing fuel efficiency on our planes,” said Capt. John Hale, American's vice president—flight. The carrier said an EFB reduces or replaces paper-based reference material and manuals often found in a pilot's carry-on kitbag. Removing the 35-pound kitbag from each American aircraft will save an estimated $1.2 million of fuel annually based on current fuel prices. All active pilots and instructors will receive an iPad for use in training and in flight, using mobile software and data from Jeppesen. The FAA-approved Jeppesen app is allowed for gate-to-gate use throughout all phases of flight. Pilots will start using iPads this month on the airline's Boeing 777 fleet, and American plans to have FAA approval for their use in all fleet types by the end of 2012.
[ POSTED SEPTEMBER 11, 2012 ]
Island Air to lease five ATR 42 turboprops
Island Air, a Hawaiian regional carrier, announced Sept. 10 that it signed a letter of intent to lease five ATR 42 turboprop aircraft, the next step in the carrier's new business plan (NBP) launched earlier this year. The airline, founded in 1980 and currently operating more than 350 weekly flights in the Hawaiian Islands, said the additional aircraft will enable a dramatic upgrade in scale and service. "These aircraft represent an integral part of our plan to deliver on our service commitment to the ever increasing number of guests flying with us each day and is the next step in our NBP," Island Air CEO Lesley Kaneshiro said. The first two aircraft are set to arrive in Honolulu by end of year with three more joining the fleet in the summer of 2013.
[ POSTED SEPTEMBER 11, 2012 ]
AMR, US Airways take step toward possible merger
AMR Corporation, the parent company of American Airlines, and US Airways Group, Inc. announced Aug. 31 that they have entered into a non-disclosure agreement. The companies said that under the agreement, they will exchange certain confidential information and, with AMR's Unsecured Creditors Committee, work in good faith to evaluate a potential combination. The companies do not expect to provide any further announcements regarding the status of any such discussions unless and until they have agreed to a transaction, or discussions between the parties have been terminated. Any resulting merger or other transaction could be subject to federal antitrust review, regulatory approvals, and any other necessary authorizations.
[ POSTED SEPTEMBER 4, 2012 ]
United to put Dreamliners in temporary domestic service
United Airlines on Aug. 30 issued the anticipated announcement that it will fly its new Boeing 787 Dreamliner aircraft on domestic routes starting in November as it prepares to begin previously announced international service in December and January. United expects to take delivery this year of its first five new Dreamliners, part of a total order for 50 of the new twinjets. As the initial aircraft are accepted into the fleet, they will be based at United's Houston hub and fly selected routes to United’s other domestic hubs: Chicago, Cleveland, Denver, Los Angeles, Newark, San Francisco, and Washington Dulles. Delivery of United’s first 787 is scheduled for late September and the carrier will phase in scheduled 787 domestic service from Houston beginning Nov. 4. United said this schedule allows its 787s to operate more than 470 U.S. flight segments during the last two months of 2012, in addition to international flights set to begin in early December.
[ POSTED SEPTEMBER 4, 2012 ]
Republic employees rally outside airline headquarters
Republic Airways pilots, flight attendants, and mechanics; members of a monitoring committee; and other allies marched outside the company's Indianapolis headquarters Aug. 30 to demand that the company respect its professional employees. Formed to help make sure the workplace is free from intimidation and harassment while Republic mechanics form a union, the monitoring committee is made up of religious, political, and academic leaders. "I'm here to tell the company to respect our federally protected rights to form our union," said Thad Tivin, a Republic mechanic based at Reagan National Airport near Washington, D.C., and four-year employee. "The company is violating our rights and we are fed up with these attacks. Management needs to start honoring their employees." Craig Moffatt, president of Teamsters Local 357 and a Republic pilot based in Indianapolis, said the company needs to stop attacking its pilots, flight attendants, and mechanics, and treat them with the respect and dignity they deserve as professionals who keep the flying public safe. The union said the carrier has a serious pilot shortage and is delaying contract negotiations with pilots; that pay and working conditions for some pilots and flight attendants are so low they are eligible for food stamps; and that Republic management has violated federal labor law. Republic provides regional service for mainline carriers United, American, US Airways, and Delta.
[ POSTED SEPTEMBER 4, 2012 ]
First Gateway graduates seated in JetBlue cockpits
A four-way collaboration between JetBlue Airways, Cape Air, the University of North Dakota, and Embry-Riddle Aeronautical University has paid off for two pilots who recently joined JetBlue as first officers. Shanti Merriman and Daniel Thurber, both Cape Air captains and Embry-Riddle graduates, passed the JetBlue interview and report for duty in a few weeks, Cape Air announced Aug. 23. The Gateway Program was started four years ago as a pipeline with clearly delineated steps that take young pilots from Aviation Accreditation Board International-approved programs through internships at Cape Air or JetBlue, undergraduate work with experience as flight instructors, and hands-on flying at Cape Air. With “some of the best flying in the world with Cape Air, the largest independent regional airline in the United States, these Gateway graduates are among some of the best trained pilots and experienced in the country,” said Cape Air President Dave Bushy. Cape Air currently has some 80 other aviators in the JetBlue University Gateway program and expects to accept more into the program as both airlines jointly interview pilots at UND and ERAU in the next two months.
[ POSTED AUGUST 28, 2012 ]
Allegiant Air pilots vote to join Teamsters
Pilots at Allegiant Air have voted to join the Airline Professionals Association, Teamsters Local 1224 in Wilmington, Ohio, the Teamsters Airline Division announced Aug. 23. The approximately 350 pilots of Allegiant Air—a subsidiary of Las Vegas-based Allegiant Travel Company—fly McDonnell Douglas MD-80 and Boeing 757 aircraft. "The pilots of Allegiant have spoken and chosen to be represented by the Teamsters," said Corey Berger, an Allegiant pilot. "We look forward to working with management to build a career airline and strong company.” Teamsters Local 1224 now represents flight-crew members employed by ABX Air, Allegiant Air, Atlas Air, Cape Air, Horizon Airways, Kalitta Air, Miami Air, Omni Air International, Silver Airways, and Southern Air.
[ POSTED AUGUST 28, 2012 ]
United flight attendants begin single-contract negotiations
The Association of Flight Attendants-CWA at the merged United Airlines began to set the stage Aug. 27 for negotiations on a single contract covering more than 25,000 flight attendants that will unify flight attendants from the premerger United, Continental, and Continental Micronesia under one agreement. Earlier this year, flight attendants from each subsidiary ratified separate contracts, paving the way for joint negotiations. “We are committed to combining the best of our contracts and experiences into an industry-leading agreement that best represents all flight attendants at the new United Airlines," said Greg Davidowitch, Marcus Valentino, and Suzanne Hendricks, the AFA union presidents at United, Continental, and Continental Micronesia respectively. Flight attendants from each carrier are represented by their own AFA councils; the joint negotiating committee is comprised of the presidents of each AFA council and two additional flight attendants from each premerger carrier.
[ POSTED AUGUST 28, 2012 ]
United announces initial 787 routes
United Airlines on Aug. 23 announced the first international routes for its new Boeing 787 Dreamliner aircraft. In addition to the previously announced service from its Denver hub to Tokyo Narita, starting March 31, 2013, the airline will operate nonstop 787 service five days a week between its Houston hub and Lagos, Nigeria, beginning Jan. 7, 2013. United also will operate daily nonstop 787 service between its Los Angeles hub and Narita beginning Jan. 3, 2013—and between Los Angeles and Shanghai, beginning March 30, 2013. In addition, the carrier will operate nonstop daily 787 service between Houston and both Amsterdam and London Heathrow on a temporary basis. United said that in the near future it will announce plans for initial 787 domestic flying, which will precede launch of the international service.
[ POSTED AUGUST 28, 2012 ]
American continues push to void pilot contract
AMR Corp., the parent company of American Airlines that is in Chapter 11 bankruptcy reorganization, petitioned the bankruptcy court Aug. 17 to void its collective bargaining agreement with its pilots' union, the Allied Pilots Association. The move came only two days after U.S. Bankruptcy Judge Sean Lane rejected an earlier proposal because neither American’s business plan nor its competitor’s practices justified the carrier’s request to furlough 450 pilots and increase code sharing with other carriers, the Dallas Morning News reported. Denying the motion marked “a rare Chapter 11 victory for labor,” said Keith Wilson, APA president, in a statement. “For many months now, we’ve emphasized that AMR management has overreached in their desire to extract more concessions than are warranted to support their reorganization plan in this bankruptcy. The bankruptcy process is designed to level the playing field with the competition—not to bury us underneath it,” Wilson said. Despite the temporary respite for the pilots’ union, the Dallas Morning News reported that Lane agreed the reorganization would require significant changes to the contract. The court has scheduled a hearing Sept. 4 on the carrier’s revised petition.
[ POSTED AUGUST 21, 2012 ]
US Airways Express flight attendants authorize strike
Flight attendants at Piedmont Airlines, represented by the Association of Flight Attendants-CWA (AFA), on Aug. 17 authorized a strike if airline management fails to negotiate a new agreement. Of the flight attendants who cast ballots, 98 percent voted to authorize a strike. Piedmont is a wholly owned subsidiary of US Airways Group, Inc. and operates as a US Airways Express carrier. "It is time that management move forward with negotiations and work with us to reach an agreement that reflects the contributions Piedmont flight attendants have made to the success of the US Airways system," said Anita Jwanouskos, AFA president at Piedmont. She said the union would employ a strike strategy known as CHAOS, or Create Havoc Around Our System—a strike could affect the entire system or a single flight, and the union would decide when and where to strike without notice to management or passengers. The union said that negotiations are not progressing, which could lead the National Mediation Board (NMB) to declare that negotiations are deadlocked and release both parties into a 30-day "cooling off" period. After that period the union could decide to strike.
[ POSTED AUGUST 21, 2012 ]
Continental Micronesia flight attendants ratify United contract
Members of the Association of Flight Attendants-CWA (AFA) at Continental Micronesia on Aug. 17 ratified a contract extension with United Continental Holdings, Inc., covering the carrier's more than 275 flight attendants based in Guam. The agreement, which includes job security improvements as well as flexibility and economic growth, was approved by nearly 80 percent of Continental Micronesia flight attendants. "This contract extension allows us to move forward with single-contract negotiations while securing improvements that are important to flight attendants," said Suzanne Hendricks, AFA president at Continental Micronesia. "We look forward to advancing joint contract negotiations with United so that flight attendants from our three carriers are unified under the protections of a single agreement. AFA negotiators from Continental Micronesia recently joined their union colleagues from Continental and United to prepare for upcoming joint negotiations, scheduled to begin on Aug. 27.
[ POSTED AUGUST 21, 2012 ]
Antitrust concerns raised over US Airways/American merger
A 28-page white paper sent to the U.S. Department of Justice by the American Antitrust Institute and the Business Travel Coalition outlined their opposition to a potential merger of US Airways and American Airlines, AIN Online reported Aug. 13. The organizations said the merger would create the largest U.S. carrier, controlling more than 20 percent of the market, and “could substantially reduce competition on a number of routes, create regional strongholds at key airports across the country, and starve smaller communities of air service vital to their business interests.” The report quoted co-author Kevin Mitchell, chairman of the Business Travel Coalition, as saying “the legacy mega-merger would complete a troubling transformation of the domestic U.S. industry to four powerful, closed airline systems [American, Southwest, United Continental, and Delta] that would control more than 70 percent of the U.S. market.”
[POSTED AUGUST 14, 2012]
US Airways flight attendants reach single-contract agreement
The Association of Flight Attendants-CWA (AFA) has reached a tentative agreement with US Airways for a contract covering all US Airways mainline flight attendants, the union announced Aug. 8. Under the supervision of the National Mediation Board, three intense mediation sessions led to a tentative agreement that would extend industry-leading job protections and overall economic improvements to all of the carrier’s flight attendants, it said. "Flight attendants made clear it had to be our contract first, before any new merger. And now flight attendants have the opportunity to secure their contract first," AFA US Airways presidents Roger Holmin and Deborah Volpe said. Doug Parker, US Airways chairman and CEO, thanked the union leadership and negotiating committee for their dedication in support of the carrier’s flight attendants. The tentative agreement would cover the airline's 6,800 mainline flight attendants, based in US Airways' hubs of Phoenix, Philadelphia, and Charlotte, N.C., and in its Washington, D.C., focus city. The AFA Joint Negotiating Committee is working to compile the details of the agreement for release to US Airways flight attendants; details will not be made public before it is presented to union members.
[POSTED AUGUST 14, 2012]
Union says ABX pilot fired unfairly
The International Brotherhood of Teamsters and its Teamsters Airline Division expressed strong support Aug. 8 for an ABX Air pilot the union said was wrongfully terminated for his refusal to operate an aircraft according to a flight plan that was prohibited by FAA-approved procedures. The Airline Professionals Association, Teamsters Local 1224 announced that it filed suit against ABX over the captain's termination. "The Teamsters will use all of our resources to defend and preserve a captain's authority," said Capt. David Bourne, director of the Teamsters Airline Division. In June, the pilot reportedly was operating an ABX flight in Japan when he requested a change to the flight plan after raising safety concerns. Following the incident, the union said, the airline took disciplinary action and fired the pilot for refusing to sign a coerced statement that said the pilot was not justified in questioning the flight's safety. It noted that the captain was exercising his regulatory authority to determine the safe operations of a flight. "To impede a captain's authority to evaluate or even question the safety of a flight undermines the safety protocols upon which our entire aviation system is built," said Capt. Daniel Wells, president of Local 1224. The union also said ABX took the unusual and outrageous step of sending out a notice to all its captains, informing them of the pilot's termination, before the pilot himself was officially notified. The lawsuit filed against ABX in the U.S. District Court for the Southern District in Ohio argues that discharging the captain creates a "chilling effect" for other pilots and their power to make decisions in the interest of flight safety. The union is demanding the reinstatement of the pilot as well as future protections for flight crews and their authority under the FAA regarding the safe operation of an aircraft on any given flight.
[POSTED AUGUST 14, 2012]
United, Continental pilots agree on contract terms
After more than two years negotiations for a joint collective bargaining agreement, and with the assistance of the National Mediation Board, the pilots of United and Continental airlines announced Aug. 3 that they have reached an agreement in principle with United Continental Holdings, Inc., on most major economic issues. "We have flown through the airline's bankruptcy, taking drastic pay cuts and losing our pensions," said Capt. Jay Heppner, chairman of the United Master Executive Council of the Air Line Pilots Association. “We've witnessed the loss of thousands of United pilot jobs through outsourcing and offshoring.” Capt. Jay Pierce, chairman of the ALPA unit representing Continental pilots, agreed. "We are pleased to have finally reached an agreement that will allow our pilots and their families to see gains in compensation, work rules, job protections, and retirement and benefits," Pierce said, adding that pilot approval of the contract finally will allow operations of the two airlines to be integrated. "This agreement follows intense negotiations with our pilot group and is an important step forward for our company," said Fred Abbott, senior vice president of flight operations for United. Until terms of the agreement can be converted into a tentative agreement, details will not be released. If approved by both union councils, it will be sent to the pilots of both carriers for a combined ratification vote.
[POSTED AUGUST 7, 2012]
Republic shareholders unhappy with company leadership
Shareholders of Republic Airways Holdings expressed their displeasure with company leadership Aug. 1 during the company’s annual shareholders' meeting in New York City when 48 percent of votes cast supported the appointment of an independent chairman of the board. "Today's vote reflects a serious lack of confidence by investors in Bryan Bedford's ability to pilot this airline into the future," said Ken Hall, general secretary-treasurer of the International Brotherhood of Teamsters—a long-term Republic shareholder that also represents nearly half of the airline's front-line workers. "Shareholders sent a resounding message to the board—it is time to break the CEO's stranglehold on the company." Current CEO and Chairman Bryan Bedford faces growing investor concerns about the company's mismanagement and weak governance structure as worker unrest spreads through the airline, the union said. Teamster-represented pilots, flight attendants, and mechanics protested outside the meeting. The union said Republic’s pilots could soon strike over the company's failure to address fundamental economic issues.
[POSTED AUGUST 7, 2012]
Southwest announces Reagan-Lambert nonstops
Southwest Airlines announced Aug. 1 that it will begin service between Ronald Reagan Washington National Airport and Lambert-St. Louis International Airport starting Sept. 30 with two daily nonstop roundtrips. Southwest began service to Reagan National on July 8 with nonstop service to Austin, Texas. The St. Louis service was made possible by Southwest's recent purchase of four inside-perimeter slots at DCA. The carrier said it has been expanding its presence in St. Louis, a market the carrier has served for more than 25 years.
[POSTED AUGUST 7, 2012]
American Eagle flight attendants to vote on tentative agreement
Leaders of the union representing flight attendants at American Eagle on Aug. 3 unanimously approved the recent tentative agreement and will now send it out to more than 1,800 flight attendants for a vote. Association of Flight Attendants-CWA (AFA) leaders convened a special meeting to review the terms of the agreement, announced on July 27, and recommended that union members vote to ratify the deal. "This process has been difficult and has taken an enormous amount of time and effort, but AFA was successful in pushing back against outrageous contract cuts first proposed by management," said Robert Barrow, AFA president at American Eagle. “There are no pay cuts or wage freezes. It is now up to American Eagle flight attendants to decide if this is an agreement that they can live within the context of bankruptcy, wherein all the negotiating advantages lie with management.” The union will hold member meetings to outline the agreement and answer questions. Ballots will be counted Sept. 7.
[POSTED AUGUST 7, 2012]
US Airways Express flight attendants voting on strike
Piedmont Airlines flight attendants, represented by the Association of Flight Attendants-CWA (AFA), began casting votes July 31 on whether to authorize a strike at the carrier after unproductive negotiations. Strike vote ballots have been sent to the carrier’s more than 200 flight attendants and a vote count is scheduled for Aug. 17. "Our union is focused on reaching an agreement that reflects our central role as first responders," said Anita Jwanouskos, AFA Piedmont president. “Unfortunately, Piedmont management does not share the same commitment.” The union said contract negotiations have stalled, which could lead to a National Mediation Board declaration that negotiations are deadlocked—a move that would release both parties into a 30-day "cooling off" period, after which the union could strike. Piedmont is a wholly owned subsidiary of US Airways Group, Inc. and operates as a US Airways Express carrier.
[POSTED AUGUST 7, 2012]
Delta pulling plug on Comair
Delta Air Lines announced July 27 that its subsidiary, Comair, Inc. will cease operations after Sept. 29, 2012. "While regional flying has and will remain a key component of Delta's network, customer expectations and the unit costs of regional flying have evolved,” Don Bornhorst, senior vice president of Delta Connection, wrote in a memo. “In response, Delta recently announced its plans to reduce the total number of regional jets in its network while adding more mainline flying. This includes reducing the number of 50-seat regional jets from nearly 350 aircraft to 125 or fewer in the upcoming years. As a result of this reduction and changes to its customer-focused business strategy, Delta has made the difficult decision to cease Comair's operations." Comair President Ryan Gumm communicated Delta's decision to Comair employees in a July 27 memo. Delta said the termination of Comair's operations will not result in any significant changes to its network, which has enough flexibility to accommodate the changes. No reductions in the number of Delta flights at Comair’s headquarters of Cincinnati are planned as a result of the shutdown.
[POSTED JULY 31, 2012]
Eagle flight attendants reach agreement, despite bankruptcy
American Eagle flight attendants, represented by the Association of Flight Attendants-CWA (AFA), announced a tentative agreement July 27 after months of negotiations between AFA and American Eagle management. Once approved by union leadership, Eagle flight attendants will vote on ratification of the agreement. "Over the past four months, we have been able to stave off drastic concessions which would have decimated the pay and work rules of American Eagle flight attendants," said Robert Barrow, president of the union’s American Eagle unit. "This is certainly not the agreement we were negotiating prior to the bankruptcy, nor does it accurately reflect the vast contributions American Eagle flight attendants make to our carrier each day.” Barrow said the agreement blunts management's most onerous demands. AMR Corporation, parent company of American Eagle and American Airlines, filed for bankruptcy protection in November 2011.
[POSTED JULY 31, 2012]
US Airways reports record quarterly profit
US Airways Group, Inc. on July 25 reported its second quarter 2012 financial results. The company reported a record second quarter net profit, excluding net special charges, of $321 million, or $1.61 per diluted share—a 203-percent increase compared to second quarter 2011 net profit. On a GAAP basis, the company reported record net profit for the second quarter 2012 of $306 million, or $1.54 per diluted share—which is 233 percent more than second quarter 2011, as well as the highest quarterly profit in company history. US Airways Group also said that it accrued $33 million during the quarter for its annual employee profit-sharing program and that, through May, US Airways employees earned approximately $10 million in operational incentive payouts related to the company's operational performance. "These results speak volumes about the collective efforts of our 32,000 employees, who continue to run an outstanding airline for our customers,” Chairman and CEO Doug Parker said. “Thanks to their hard work, we have set numerous company records in operating reliability, including our best-ever year-to-date performance in on-time arrivals, baggage handling, and completion factor.”
[POSTED JULY 31, 2012]
Continental, United pilots vote to authorize strike
Pilots at legacy United Airlines and legacy Continental Airlines have overwhelmingly voted to authorize a legal strike pursuant to the Railway Labor Act (RLA), according to Air Line Pilots International, the union that represents the pilots. Nearly 93.9 percent of eligible pilots cast votes, and 99 percent of votes cast supported a strike if that becomes necessary, the union said July 17. This authorization follows two years of negotiations for a new joint pilot contract following the merger of United and Continental, announced in May 2010. If the National Mediation Board concludes that further mediated negotiations will not produce an agreement, it could release both sides into economic self-help after the expiration of a 30-day cooling-off period, at which point a strike could ensue. "The strength of this vote clearly indicates the level of frustration our pilots have with management's disinterest in reaching a conclusion to negotiations,” said Capt. Jay Pierce, chairman of the ALPA unit representing the Continental pilots. “Our pilots are tired of management's lack of progress with the merger. The merger cannot be completed and the synergies will not be fully realized without completed labor contracts. A strike is never the preferred path to reaching agreement, but our pilots have demonstrated that they realize it may be necessary." The parties jointly requested mediation by the NMB in December 2010 and have been in mediated bargaining since Feb. 28, 2011.
…while legacy Continental flight attendants ratify contract
On July 13, United Airlines announced that the approximately 9,000 flight attendants at its Continental subsidiary, represented by the Association of Flight Attendants, ratified a new labor agreement. Flight attendants from the company's United subsidiary ratified a new four-year contract in February 2012. The airline and AFA will commence negotiations soon for a joint collective bargaining agreement covering flight attendants at United, Continental, and Continental Micronesia.
[ POSTED JULY 17, 2012 ]
United orders 150 new Boeing 737s
United Continental Holdings, Inc. and its wholly owned subsidiary, United Air Lines, Inc., announced July 12 that it has ordered 150 narrowbody Boeing 737 aircraft. United will purchase 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900ER aircraft for delivery between 2013 and 2022. The new aircraft will replace older, less-efficient aircraft to reduce fuel and operating costs, United said. United is the North American launch customer for the 737 MAX 9; deliveries of the new variant, expected to achieve fuel consumption and CO2 emission reductions of up to 13 percent compared to current 737 aircraft, will begin in 2018. "New aircraft deliveries support our flexible fleet plan, permitting us to tailor future capacity up or down, based on changes in demand or other market conditions," said Jeff Smisek, United's president and CEO. Deliveries of 50 additional Boeing 737-900ER aircraft, which primarily will replace older and less-efficient Boeing 757-200 aircraft flown domestically, will begin in late 2013. United’s order pushed 737-family orders to more than 10,000 total aircraft, Boeing said. The deal is worth $14.7 billion at list prices.
[ POSTED JULY 17, 2012 ]
US Airways launches new service from Reagan National
US Airways on July 11 began nonstop service to five new communities from Washington, D.C.'s Reagan National Airport: Augusta, Ga.; Minneapolis; Fayetteville, Ark.; Montreal; and Toronto. The carrier now offers 237 daily nonstops between Reagan National and 73 communities. On March 25, US Airways began expanded service from Reagan National to 14 destinations; it also added nonstop flights to Cincinnati and Des Moines, Iowa in May. The carrier said that 99 percent of its capacity now operates to or from its core service areas of Washington, D.C.; Philadelphia; Phoenix; and Charlotte, N.C.—and the US Airways Shuttle, which operates hourly between Washington, Boston, and New York's La Guardia Airport. Following the 2006 merger of US Airways and America West Airlines, only 83 percent of the airline's capacity touched its core focus areas.
[ POSTED JULY 17, 2012 ]
Alaska shifts Florida service from Miami to Fort Lauderdale
Alaska Airlines initiated new daily nonstop service between Seattle and Fort Lauderdale, Fla., on July 17. With the introduction of Seattle-Fort Lauderdale service, Alaska is discontinuing flights to Miami, a city the airline has served from its Seattle hub since 2002. The airline said that by redirecting flights to the lower-cost and traveler-friendly Fort Lauderdale airport, it can serve the same geographic region and continue to offer low fares. Alaska is operating the flights with two-class Boeing 737-800 aircraft.
[ POSTED JULY 17, 2012 ]
Boeing forecasts 34,000 new airliners over 20 years
Boeing projects a $4.5 trillion market for 34,000 new airliners over the next 20 years as the current world fleet doubles in size, according to the Boeing 2012 Current Market Outlook released July 3 in London. The annual forecast reflects the strength of the commercial aviation market. "The world's aviation market is broader, deeper, and more diverse than we've ever seen it," said Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes. "It has proven to be resilient even during some very challenging years and is driving production rate increases across the board." Airline traffic is forecast to grow at a 5-percent annual rate over the next two decades, and cargo traffic is projected to grow at 5.2 percent. The single-aisle market, served by Boeing's Next-Generation 737 and the future 737 MAX, will see continued growth. Widebodies, such as Boeing's 747-8, 777, and 787 Dreamliner, will account for almost $2.5 trillion in sales, with 40 percent of these long-range airplanes going to Asian airlines. Robust growth in China, India, and other emerging markets is a major factor in the increased deliveries—as are low-cost carriers which, with their ability to stimulate traffic with low fares, are growing faster than the market as a whole. Finally, there is strong demand to replace older, less fuel-efficient airplanes; replacement accounts for 41 percent of new deliveries in the forecast.
[ POSTED JULY 10, 2012 ]
United announces plans for Dreamliner integration
United Airlines, the North American launch customer for the Boeing 787 Dreamliner, announced July 9 plans for integrating the new model into its fleet. United is scheduled to take delivery of its first Dreamliner in late September. A full-flight simulator has been installed at United’s Houston hub and the carrier is training pilots on operation of the aircraft. Because the 787 has 30 percent more range and uses approximately 20 percent less fuel than similarly sized aircraft, United said the new model will open up new nonstop destinations it could not otherwise offer, such as recently announced service from Denver to Tokyo. A variety of tests and training, including completing FAA conformity checks, will be conducted after the first 787 is delivered; it will enter scheduled service in the fall. United plans to put five 787s into service this year, and has firm orders for 50 new Dreamliners with deliveries scheduled through 2019.
[ POSTED JULY 10, 2012 ]
Delta confirms 717s to replace 50-seat RJs
Delta Air Lines confirmed July 9 that it will add 88 Boeing 717-200 aircraft to its fleet starting in 2013, an addition the carrier said will improve operational efficiency. Delta said it finalized an agreement with Southwest Airlines and Boeing for the aircraft, which currently are in service at Southwest subsidiary AirTran Airways. Sixteen of the jets will enter Delta's fleet next year; 36 will be delivered in 2014, and the remaining 36 in 2015. The Boeing 717s will primarily replace 50-seat regional jets on a capacity-neutral basis, and will "provide Delta with a significant improvement in economic efficiency relative to the aircraft they are replacing," said Delta CEO Richard Anderson. The acquisition is part of Delta's domestic fleet optimization plan launched in 2010 to improve profitability and customer experience; next year the carrier will begin taking delivery of 100 new, fuel-efficient Boeing 737-900ER jets which primarily will replace older Boeing 757 and 767 and Airbus A320 aircraft.
[ POSTED JULY 10, 2012 ]
Comment delays flight for pilot drug test
A passenger’s comment about partying pilots delayed the departure of a U.S. Airways flight from Des Moines by four hours, according to a Des Moines Register blog published June 30. A spokeswoman for the carrier told the newspaper that the flight—to Charlotte, N.C.—was scheduled to leave at 7 a.m., but was delayed two hours because of rest requirements for the crew, whose inbound flight had arrived late the previous evening. As the delayed flight was boarding, a passenger asked the crew if they had partied too much the night before. Because of the comment, the crew had to take a drug test, and the flight eventually took off—six hours after its scheduled departure time. “Any accusation of this sort is taken very seriously and out of an abundance of caution, the crew was administered a drug test,” the airline said in a statement.
[ POSTED JULY 10, 2012 ]
Airbus to open U.S. assembly line
Airbus announced July 2 that it will establish a manufacturing facility in the United States to assemble and deliver A320-family airliners. The company’s first U.S. production facility will be located at the Brookley Aeroplex in Mobile, Ala. The assembly line is part of the manufacturers’ strategy to enhance Airbus' global competitiveness by meeting the growing needs of its customers in the United States and elsewhere, Airbus said. Construction will begin in the summer of 2013 and aircraft assembly is planned to start in 2015, with first deliveries in 2016. A319, A320, and A321 aircraft will be produced in Mobile, which Airbus said would produce between 40 and 50 aircraft per year by 2018. "The time is right for Airbus to expand in America," said Fabrice Bregier, Airbus president and CEO. "The U.S. is the largest single-aisle aircraft market in the world, with a projected need for 4,600 aircraft over the next 20 years, and this assembly line brings us closer to our customers.”
[ POSTED JULY 10, 2012 ]
American, creditors agree to extension
AMR Corporation, the parent company of American Airlines, announced June 29 that the company and the official committee of unsecured creditors (UCC) have agreed to jointly request that the United States Bankruptcy Court for the Southern District of New York extend until Dec. 27, 2012, exclusivity for AMR to file its plan of reorganization. AMR filed for federal bankruptcy protection on Nov. 29, 2011. Operating more than 900 aircraft, American Airlines, American Eagle, and the AmericanConnection serve 260 airports with an average of more than 3,500 daily flights.
[ POSTED JULY 10, 2012 ]
Delta pilot contract to slash hundreds of 50-seat regionals
A vote by Delta Air Lines pilots last week to accept a proposed contract, negotiated between airline management and the pilots’ union, will bring annual pay increases through 2015—but its scope clause will eliminate more than 5,000 seats of Delta Connection capacity, AIN Online reported July 2. The contract, which took effect July 1, could radically change the structure of the airline business in the United States. AIN said the contract requires Delta Connection carriers to remove some 50-seat regional jets from their fleets—218 of them. While they can add some 70 two-class, 76-seat jets, Delta will add up to 88 Boeing 717s—most of them AirTran jets not desired by its new owner, Southwest Airlines.
[ POSTED JULY 10, 2012 ]
Teamsters seek to represent Allegiant Air pilots
The Airline Division of the International Brotherhood of Teamsters announced July 2 that it has asked the National Mediation Board for a representation election to be held for the pilots of Allegiant Air. Allegiant Air, a subsidiary of Las Vegas-based Allegiant Travel Company, employs 363 pilots flying McDonnell Douglas MD80 and Boeing 757 aircraft. "The overwhelmingly positive response we received in meetings and the outstanding response to the card drive is a testament to the dedication of the Allegiant Air pilots," said Capt. David Bourne, director of the Airline Division. "We look forward to a favorable ruling on our application by the NMB and a vote being scheduled as soon as possible."
[ POSTED JULY 10, 2012 ]
Move could preserve American pilot pensions
The U.S. Department of the Treasury published a proposed regulation June 20 that could move American Airlines closer to being able to freeze and retain the Pilot "A" Plan instead of terminating the pension plan. Since March, American Airlines; its pilot union, the Allied Pilots Association; the Pension Benefit Guaranty Corporation; and the Unsecured Creditors Committee have been working toward that goal. "A top APA priority is preserving the benefits American's pilots deserve," said Capt. Dave Bates, president of the pilot union. If finalized, the proposal could allow companies to remove lump sum benefit payouts in some circumstances, making a freeze a possibility for American. The lump sum benefit could encourage pilot retirements that might pose significant operational risk to the pension plan. “It's encouraging that American recognizes this benefit doesn't need to be sacrificed to ensure success," said Josh Gotbaum, PBGC director. Following a 60-day comment period, the U.S. Department of Treasury will make a decision.
[ POSTED JUNE 26, 2012 ]
JetBlue flies RNP AR approaches
In a blog post published June 20, JetBlue announced that it has become the first FAA-certified carrier in the United States to utilize the new satellite-based special (nonpublic) required navigation performance authorization required (RNP AR) approaches to Runways 13L and 13R at its home base, New York City’s John F. Kennedy International Airport, using Airbus A320 aircraft. According to the post, the approaches utilize performance-based navigation to provide a constant vertical descent, in conjunction with a precise curved flight path to the runways, that results in a stabilized approach path, shorter flight times, reduced noise levels, and increased fuel savings. “The RNP AR approach procedure will allow us to utilize a decision altitude while in a slight turn to the runway, the first airline in the United States to harness this special capability. This allows for lower landing weather minimums, increasing runway utilization at JFK,” the post said. “These procedures will be a key component in making JFK operate independent of the other N.Y.-area airports and reduce delays at JFK, LaGuardia (LGA), Newark Liberty International (EWR), and Teterboro (TEB) airports in certain poor weather conditions.” JetBlue began designing and testing the JFK special instrument procedures in 2004, and said its more than 2,300 pilots have been trained and certified to fly RNP AR procedures across the National Airspace System.
[ POSTED JUNE 26, 2012 ]
Southwest, AirTran mechanics agree on seniority integration
Aircraft maintenance technicians from Southwest Airlines, represented by the Aircraft Mechanics Fraternal Association, and AirTran Airways, represented by the International Brotherhood of Teamsters Local 528, voted to ratify a seniority integration agreement June 21. The agreement integrates the two groups' seniority lists. Southwest Airlines closed on its acquisition of AirTran Holdings, Inc., on May 2, 2011. The combined carriers’ pilots, flight attendants, flight instructors, dispatchers, and ramp and operations agents already have completed the seniority integration negotiation process.
[ POSTED JUNE 26, 2012 ]
Cape Air launches year-round service in Caribbean
Cape Air has expanded its Caribbean presence with the start of year-round daily service between St. Croix, in the U.S. Virgin Islands, and Vieques, Puerto Rico, effective July 1. The service originally was slated to be seasonal only. “As both Vieques and St. Croix continue to grow as not only tourist destinations, but also commerce centers, we realized that providing inter-island service would benefit travelers and locals alike,” said Cape Air's vice president of planning, Andrew Bonney. Hyannis, Mass.-based Cape Air annually flies more than 650,000 passengers to destinations in New England, New York, the Caribbean, Florida, the Mid-Atlantic, the Midwest, and Micronesia, using a fleet of 70 Cessna 402s and two ATR-42s.
[ POSTED JUNE 26, 2012 ]
NetJets announces largest aircraft purchase
In what it said is the largest aircraft purchase in private aviation history, NetJets Inc. announced June 11 that it will add up to 425 new aircraft to its worldwide fleet under purchase agreements with Cessna and Bombardier. The transactions, valued at $9.6 billion, will launch the Berkshire Hathaway company’s new NetJets Signature Series of aircraft. “This purchase demonstrates our long-term planning and represents our ongoing commitment to providing unparalleled safety and service in aircraft uniquely customized for our owners,” said NetJets Chairman and CEO Jordan Hansell. “What makes the new NetJets Signature Series special are the latest in aircraft technology and in-cabin comfort features we will deliver for our owners. By increasing the range and endurance of our fleet, we will allow our owners to get to even more destinations worldwide.” NetJets will add up to 275 Bombardier Challenger aircraft, including 100 firm orders and options for 175 more. The order also includes up to 150 Cessna Citation Latitudes, including 25 firm orders and options for another 125. Challenger deliveries begin in 2014, and the Latitudes are to begin arriving in 2016.
[ POSTED JUNE 19, 2012 ]
Pax satisfaction rises with low-cost carriers
Low-cost carriers continue to lead the way in improving passenger satisfaction and traditional carriers still struggle to meet travelers' expectations, according to the J.D. Power and Associates 2012 North America Airline Satisfaction Study released June 13. It finds that after two years of consecutive industry improvements, overall passenger satisfaction has declined slightly to 681 index points on a 1,000-point scale—down from 683 in 2011. Although satisfaction with low-cost carriers improved for a third consecutive year, increasing 3 index points from 2011 to average 754, satisfaction with traditional carriers declined 4 points to 647. "Passengers want it all, but they are not necessarily willing to pay for it all,” said Stuart Greif, vice president and general manager of the global travel and hospitality practice at J.D. Power and Associates. The study measured overall customer satisfaction based on cost and fees; in-flight services; boarding/deplaning/baggage; flight crew; aircraft; check-in; and reservation.
[ POSTED JUNE 19, 2012 ]
Airline performance, baggage handling improving
U.S. airline industry trade association Airlines for America (A4A) on June 14 reported the best industry on-time performance in more than two years and the best-ever monthly baggage-handling performance. A4A said that according to the just-released Department of Transportation Air Travel Consumer Report, 86.3 percent of flights arrived within 15 minutes of their scheduled arrival times in April 2012—the best performance for any month since November 2009, which had an on-time rate of 88.6 percent. A4A noted that in April, 99.7 percent of all U.S. airline passengers had their bags delivered on time, an all-time record for any month since the government began keeping records in 1987; the previous record was set in February 2012.
[ POSTED JUNE 19, 2012 ]
American adds new D.C., Miami flights
American Airlines launched new daily nonstop Boeing 757 service between Los Angeles International Airport and Ronald Reagan Washington National Airport on June 14. The carrier said the new flight to Reagan National complements three existing daily round-trip flights between Washington Dulles International Airport and Southern California. Also on June 14, American began daily service between Miami and Seattle-Tacoma International Airport and between Miami and Eduardo Gomes International Airport in Manaus, Brazil; the carrier also increased flights from Miami to Brasilia and Belo Horizonte, Brazil. American Eagle, the regional affiliate of American Airlines, began daily round-trip service between Chicago O'Hare International Airport and the Region of Waterloo International Airport in Kitchener-Waterloo, Ontario, Canada; Eagle will use 50-seat Embraer jets for two flights per day Sunday through Friday, and one round-trip Saturdays.
[ POSTED JUNE 19, 2012 ]
United announces Houston cutbacks after Hobby changes OKed
Hours after a Houston City Council vote May 30 to allow international operations from the city’s William P. Hobby Airport, The Houston Chronicle reported that United Airlines told employees that, as a result of the council vote, the carrier would cut planned operations at George Bush Intercontinental Airport by 10 percent and eliminate 1,300 Houston jobs. Southwest Airlines will pay $100 million up front to build five international gates and a customs facility at Hobby. Earlier this year, Southwest asked the city for approval to construct a new five-gate international terminal at Hobby so that it could launch service to Latin America. The newspaper’s website said a bulletin to United employees told them there is "significant doubt" whether the carrier will complete a $700 million Terminal B expansion at Intercontinental; United broke ground on the project in January.
[ POSTED JUNE 5, 2012 ]
Houston council approves Southwest request for international service
By a vote of 16-1, Houston Mayor Annise Parker and the Houston City Council on May 30 approved Southwest Airlines' plans for international service at William P. Hobby Airport. If the federal government approves a new customs facility necessary to screen international passengers, the carrier will operate flights from Houston to Latin America by 2015, Southwest said. "Competition will lead to jobs, lower fares, and a positive economic impact for the city,” Parker said. Southwest plans construction for spring 2013; in the meantime the carrier will work with the city and FAA to obtain the needed federal approvals. Under the terms of a proposed memorandum of agreement, Southwest will cover all costs related to the $100 million expansion. In return Southwest will have preferential scheduling rights and pay no rent for its use of four of the five new international gates. An independent study commissioned by the Houston Airport System indicates that increased competition will lower fares, enticing additional passengers to travel through Hobby.
[ POSTED JUNE 5, 2012 ]
United adding new routes from Denver hub
United Airlines announced plans May 29 to begin daily nonstop service between its Denver hub and two new markets: Shreveport, La., and Grand Forks, N.D. United Express carrier ExpressJet will begin service to Shreveport on Aug. 28 with one daily flight of a 50-seat Embraer regional jet. United Express carrier SkyWest will begin twice-daily flights to Grand Forks on Oct. 3, with 50-seat Canadair regional jets. In addition, United's seasonal service between Denver and Anchorage—which launched May 1 with Boeing 737-800 aircraft—has been expanded to year-round operation.
[ POSTED JUNE 5, 2012 ]
Delta invests $65 million in Grupo Aeromexico
Grupo Aeromexico received $65 million from Delta Air Lines Inc. on June 4 as part of Delta’s investment in the capital stock of Mexico's flagship carrier, strengthening its financial position, confirming its expansion project, and creating the leading airline alliance in the Mexico-U.S. market. The Mexican Federal Competition Commission allowed Delta to underwrite and purchase nearly 30.2 million shares of stock, equivalent to 4.17 percent of Grupo Aeromexico's capital stock; the purchase gives Delta a seat on the Grupo Aeromexico board. Grupo Aeromexico said this is the first time a global carrier has bought equity in a national Mexican airline. Both companies will share best practices in sales, operations, equipment maintenance, and staff training. The financial transaction is part of a global contract the carriers signed last year to create a unique alliance in Latin America. The carriers collectively offer 93 codeshare destinations representing 733 daily flights in eight countries, and more codeshares are expected. The companies also will invest jointly in maintenance, repair, and operation business at new facilities in Mexico that they plan to open in 2013.
[ POSTED JUNE 5, 2012 ]
Horizon flight attendants reach tentative agreement
Horizon Air flight attendants, represented by the Association of Flight Attendants-CWA, announced a tentative agreement with management May 30. AFA represents more than 500 flight attendants at Horizon, a wholly owned subsidiary of Alaska Air Group. The agreement includes increases to pay and vacation, as well as substantial improvements to flight attendant schedule flexibility and quality of life. The tentative agreement has been approved by the union’s leadership; complete terms of the agreement will be sent to the membership for ratification.
[ POSTED JUNE 5, 2012 ]
AirTran launches new international service
AirTran Airways, a subsidiary of Southwest Airlines, launched new international service May 24 between Ft. Lauderdale/Hollywood, Florida, and San Juan, Puerto Rico, with two daily nonstop flights; between San Antonio, Texas, and Mexico City, Mexico, with one daily nonstop flight; and between San Antonio and Cancun, Mexico, with four weekly nonstop flights. On May 25, the carrier inaugurated service between Austin-Bergstrom International Airport in Texas and Cancun with four weekly nonstop flights. On June 3, AirTran will begin operating one daily nonstop flight between John Wayne Airport in Orange County, California, and Mexico City, and one daily nonstop between Orange County and Cabo San Lucas/San Jose del Cabo. Also beginning June 3 is a daily nonstop flight between Chicago Midway and Cancun. The new routes were announced last winter; frequencies on some routes will be reduced in September.
[ POSTED MAY 29, 2012 ]
US Airways Express, flight attendants reach tentative agreement
Days after authorizing a strike by an overwhelming majority vote, flight attendants at Air Wisconsin, represented by the Association of Flight Attendants-CWA (AFA), on May 25 announced a tentative agreement with management. Reached with the assistance of the National Mediation Board, the agreement would cover the carrier’s more than 300 flight attendants. Regional airline Air Wisconsin operates nearly 500 daily flights as a US Airways Express carrier. Terms of the agreement will be submitted to AFA leadership at Air Wisconsin and, if approved, will be sent to the membership for ratification. Full details of the tentative agreement will not be made public until they are presented to the membership.
[ POSTED MAY 29, 2012 ]
Industry group calls for improved TSA efficiency, not more taxes
Industry trade organization Airlines for America (A4A) continues to urge Congress to improve efficiency within the Transportation Security Administration, instead of levying additional taxes on already burdened airline passengers as approved May 22 by the Senate Appropriations Committee. "It's a simple equation: When you add taxes, demand for air travel is dampened, resulting in lost jobs and lost air service," said Nicholas E. Calio, A4A president and CEO. "Our customers today pay 20 percent—$60 on an average $300 domestic roundtrip ticket—of their ticket prices in taxes, on par with taxes for alcohol and tobacco, products taxed to discourage their use." Under the proposal approved by the Senate Appropriations Committee, security taxes would double from $2.50 to $5, which would cost airline passengers more than $700 million annually and could impact 76,000 jobs. A4A said programs that take a risk-based approach to security, enabling the agency to focus its resources on greater threats, are a more appropriate way to improve efficiency within the TSA.
[ POSTED MAY 29, 2012 ]
FAA could reconsider cargo pilot exclusion from rest rules
The FAA said May 17 that it "discovered errors" during the course of preparing court papers and is ready to provide the relief requested by the Independent Pilots Association, the union that represents UPS pilots—and will take another look at whether cargo pilots should be excluded from new rest rules published in December, the union said. The FAA filed a motion asking the court for "an order holding this appeal in abeyance and remanding the record to the FAA to permit correction of newly discovered errors in the administrative record supporting the regulation at issue in this case as it pertains to all-cargo flight operations." The FAA said it "discovered errors in calculating the scope of costs associated with the implementation of the regulations [rest rules] for all cargo operations." As a result, the agency proposes to "reopen the record by issuing a supplemental regulatory evaluation strictly limited to the application of the new regulations to all-cargo operations." The FAA action would occur on an expedited basis. "In the context of our lawsuit, the FAA is now willing to allow for an open and public examination of the costs and benefits of having one level of aviation safety," said IPA President Robert Travis. "The IPA welcomes this development."
[ POSTED MAY 22, 2012]
Delta to sublease AirTran 717s
Southwest Airlines confirmed May 22 that it and subsidiary AirTran Airways have reached a tentative agreement with Delta Air Lines and Boeing Capital Corp. to sublease all 88 of its Boeing 717 aircraft to Delta. The agreement would transition the aircraft over three years, beginning in the second half of 2013. "This is a very complex transaction that requires time and close coordination with multiple parties. While we do have a tentative agreement with Delta, final details must be completed with all parties before a binding agreement between Delta and Southwest can be completed," said Mike Van de Ven, Southwest Airlines' executive vice president and chief operating officer. Southwest said it currently plans to keep the total fleet count relatively flat as the 717s transition to Delta. Delta said delivery of the 717s is contingent on ratification of a new tentative agreement covering Delta's more than 12,000 pilots; the former AirTran jets would replace inefficient 50-seat regional jets and some older DC-9 aircraft still in service, on a capacity-neutral basis.
[POSTED MAY 22, 2012]
Engine manufacturer sees continued turboprop demand
Pratt & Whitney Canada said May 21 that it continues to see a sustained demand for regional turboprop aircraft and estimates a market for 3,000 regional turboprop aircraft in the next 20 years, with the majority of the regional aircraft in the 70- to 100-seat capacity range. "We are experiencing excellent growth in the regional turboprop market and believe demand will only increase," said Richard Dussault, vice president of marketing for P&WC. "All indicators point to an acceleration of demand.” The company produces engines for the ATR 42 and ATR 72, Bombardier Q400 and XAC MA60 aircraft. P&WC recently marked the delivery of its 2,000th PW100-family engine to ATR. Dussault said PW100-powered regional turboprops typically consume 30 percent to 45 percent less fuel and reduce greenhouse gas emissions.
[POSTED MAY 22, 2012]
US Airways Express flight attendants authorize strike
Flight attendants at Air Wisconsin, represented by the Association of Flight Attendants-CWA (AFA), overwhelmingly authorized a strike should management fail to reach an agreement with flight attendants. In a strike vote that concluded May 22, 97.3 percent of Air Wisconsin flight attendants voted to authorize a strike, if necessary. Currently in negotiations, AFA said management is demanding concessions and attempting to remove previously negotiated improvements, including many quality of life provisions. A lack of progress in bargaining could lead to the National Mediation Board (NMB) releasing both parties into a 30-day "cooling off" period that could lead to a strike. Air Wisconsin operates regional flights for US Airways Express to 70 cities.
[POSTED MAY 22, 2012]
Delta expanding Caribbean, Florida service
Delta Air Lines announced May 21 new and expanded service to 10 popular destinations in the Caribbean, Bermuda, and Florida from LaGuardia Airport and John F. Kennedy International Airport. The new flights, which will begin in late 2012 and early 2013, are in addition to Delta's previously announced expansion at LaGuardia, where it is adding more than 100 new flights to 26 new destinations this summer. Delta also said it is optimizing its schedule at JFK to facilitate convenient connections to international flights. The airline will spend $160 million to modernize two terminals at the airport and construct a new walkway connecting the facilities.
[ POSTED MAY 22, 2012]
Trade group forecasts record summer international travel
Airlines for America (A4A), an industry trade association for U.S. airlines, said May 9 that passengers can expect full flights this summer thanks in part to a record number of people traveling internationally and an improving economy. "Customers are benefiting from record airline operational performance and greater access to the global economy while fares continue to trail the price of other services," said A4A President and CEO Nicholas E. Calio. The organization predicted that from June through August, U.S. airlines will carry an average of 2.24 million travelers globally every day, with total passenger volumes remaining 5 percent below the summer 2007 all-time high of 217.6 million. However, airlines continue to be challenged by increased operating costs. The industry posted a first-quarter net loss of $1.73 billion, A4A said. Operating revenue for the 10 reporting airlines grew 8.2 percent but operating and nonoperating expenses increased 10.3 percent. Fuel costs jumped 19.1 percent compared with the first quarter of 2011. Fuel remained the industry's largest cost at one-third of operating expenses, up from 30 percent in 2011.
[ POSTED MAY 15, 2012 ]
New routes to Washington National announced
Several carriers have been awarded new routes to Ronald Reagan Washington National Airport (DCA). The new service was made possible by enactment of the FAA Modernization and Reform Act of 2012, which authorized the Department of Transportation to award a limited number of new flights to U.S. domestic airports located beyond DCA's 1,250-mile "perimeter limit." United Airlines announced May 14 that it will begin service between DCA and San Francisco International Airport. Virgin America also will begin service between DCA and San Francisco International. JetBlue was granted a beyond-perimeter slot exemption to fly between DCA and San Juan's Luis Munoz Marin Airport. Finally, Alaska Airlines will offer a daily nonstop flight between DCA and Portland, Ore., with service beginning by Sept. 8.
[ POSTED MAY 15, 2012 ]
Embraer delivers 300th Phenom
Brazilian aircraft manufacturer Embraer recently announced the delivery of its 300th Phenom business jet, an impressive milestone for an aircraft that entered into service only in 2008. The Phenom 100 and 300 business jets are powered by Pratt & Whitney Canada PW617F-E and PW535E engines, respectively. "The success of the Embraer Phenom family of aircraft is a testament to the aircraft's appeal in this segment of the business jet market," said David Van der Wee, vice president of marketing for Pratt & Whitney Canada. The PW500 family has accumulated more than 9 million flight hours, and has a basic overhaul interval of 5,000 hours. The approximately 2,000 PW600 engines in service have accumulated more than one million flight hours.
[ POSTED MAY 15, 2012 ]
US Airways boosts service to East Coast hubs
US Airways announced on May 7 the launch of new daily, nonstop service from Austin-Bergstrom and San Antonio international airports to the airline's international gateway of Philadelphia International Airport. The new flights, which begin on Sept. 5, will be operated by 99-passenger Embraer 190 aircraft. The carrier also said that it will begin a sixth daily flight between Dallas/Fort Worth International Airport and Philadelphia, as well as two additional daily flights between New York's John F. Kennedy International Airport and Charlotte, N.C. The new frequencies from the airline's East Coast hubs, which also begin Sept. 5, are intended to improve service to business customers; the flights between Charlotte and John F. Kennedy International Airport will be flown by 124-passenger Airbus 319 aircraft, while the service between Philadelphia and Dallas will be provided by 150-passenger Airbus 320s.
[ POSTED MAY 8, 2012 ]
Hawker Beechcraft files for bankruptcy reorganization
Hawker Beechcraft, Inc. announced May 3 that it has reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense. To quickly implement the terms of the prearranged restructuring, designed to strengthen the company for the future, Hawker Beechcraft and some of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy reorganization. As part of the prearranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in debtor-in-possession financing, which will enable it to continue paying employees, suppliers, vendors and others in the normal course of business. The company said it will continue to serve its customers, and that all orders for available products will be fulfilled. A prearranged Chapter 11 filing means the company has secured the support of a majority of its lenders and senior bondholders for its proposed financial restructuring; financial institutions representing more than two-thirds the company's bank and senior bond debt are parties to the agreement. Eventually equity ownership in Hawker Beechcraft will be transferred to holders of the company's secured debt, bond debt and certain other unsecured creditors.
[ POSTED MAY 8, 2012 ]
A4A calls for pilot-qualification rule changes
Airlines for America (A4A), an airline industry trade organization, on May 1 urged the FAA to significantly revise its proposed requirements for pilot certification. A4A is asking for a system that builds on the industry's strong safety record, is recommended by safety experts, and that recognizes the quality of a pilot's training and experience instead of only a specific number of flight hours. "Hard-hour minimum requirements are not a substitute for the quality of a pilot's training and experience," A4A said in its comments filed with the FAA, noting that the change as proposed by the FAA would have unintended consequences. "Failure to provide additional options for meeting the requirements, as recommended by safety experts, will result in an unnecessary pilot shortage and significant barriers to recruiting regional and mainline pilots." The organization recommended that the FAA establish a restricted ATP certificate for second in command pilots, which takes experience and training into account, and move toward the adoption of a multicrew pilot licensing program similar to those used in other nations and “which take into account the realities of current operations and training.”
[ POSTED MAY 1, 2012 ]
Delta to purchase refinery complex
In an effort to reduce fuel costs, Delta Air Lines said April 30 that its wholly owned subsidiary, Monroe Energy LLC, has reached agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia. The acquisition includes pipelines and transportation assets that will deliver jet fuel to Delta's operations throughout the Northeast, including its hubs at LaGuardia and JFK. As part of the transaction, Monroe will enter into strategic sourcing and marketing agreements with BP and Phillips 66. Production at the refinery, combined with multiyear agreements to exchange gasoline, diesel, and other refined products from the refinery for jet fuel, will provide 80 percent of Delta's jet fuel needs in the United States. "Acquiring the Trainer refinery is an innovative approach to managing our largest expense," said Richard Anderson, Delta's chief executive officer. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast.”
[ POSTED MAY 1, 2012 ]
United considering large Boeing 737 order
According to a number of news reports, United Airlines is close to placing a multibillion-dollar order with Boeing for as many as 200 narrowbody Boeing 737 jets, USA Today reported April 24. The publication cited reports from Bloomberg News, Reuters, and The Seattle Times indicating that Boeing was now favored to land the order, for 180 to 200 new, more fuel efficient Boeing 737 twinjets. The article quoted The Wall Street Journal as saying that if the order does go to Boeing, "the deal would mark a significant win for Boeing, which last year placed far behind its European rival Airbus in landing orders for small airliners."
[ POSTED MAY 1, 2012 ]
Flight attendants, chambers gird against American merger
Flight attendants at American Eagle are continuing to negotiate with management in an effort to reach an agreement rather than a court-imposed settlement, despite the ongoing American Airlines bankruptcy organization. “We are focused on job security and a better future for American Eagle flight attendants. We welcome innovative solutions that would fully recognize the contributions of American Eagle flight attendants, much like the divestiture that was planned prior to the bankruptcy,” said Robert Barrow, president of the Association of Flight Attendants-CWA, AFL-CIO (AFA) unit at American Eagle. “We are paying close attention to any potential merger,” he added. Meanwhile, leaders of the AFA units representing premerger America West and premerger US Airways flight attendants seek a single contract with the merged carrier “prior to any new merger deal,” Deborah Volpe and Mark Gentile said in a statement. America West and US Airways merged seven years ago. “Any new deal must first acknowledge the contributions of US Airways flight attendants through a single contract, with job security and improvements promised to flight attendants involved in the last merger initiated by US Airways management,” they said. According to reports, US Airways has expressed interest in bankrupt America. Concerned about the possibility of a merger or acquisition, the Fort Worth Chamber and Dallas Regional Chamber issued a joint statement that they oppose any merger before American exits bankruptcy. “The best outlook for all American employees is for the airline to remain independent and headquartered in North Texas,” they said.
[ POSTED APRIL 24, 2012 ]
Southwest plans international operations in 2014
Southwest Airlines and Amadeus IT Group announced April 19 that they have entered into a joint contract for Amadeus' Altea reservations solution that would support international service for the carrier. With the contract in place, the companies will work closely to implement Amadeus' technology so that Southwest can operate international flights in 2014. AirTran Airways, a wholly-owned subsidiary of Southwest, already serves international destinations. As the AirTran international flights transition to Southwest, Amadeus will support Southwest's international flying. While the Amadeus IT Group agreement focuses on the international element of Southwest's reservation system, the contract also provides the option for Southwest to convert its domestic business to Amadeus in the future.
[ POSTED APRIL 24, 2012 ]
A4A rejects expanding new crew rules to cargo carriers
The FAA’s recent final rule on crewmember duty limitations and rest requirements should apply only to scheduled passenger operations and should not be applied to all-cargo carriers, the industry trade organization Airlines for America (A4A) said April 17. "The FAA flight-time limitations and rest-requirements rulemaking was a thorough undertaking successfully built on a foundation of existing safety measures, fatigue mitigations, and diverse airline operating environments," said A4A President and CEO Nicholas E. Calio. "This long-overdue rule puts the safe operation of passenger and cargo airlines first for customers and crew members as U.S. airlines continue to operate at the safest level in history." The organization “voiced strong opposition to newly proposed legislation that would reverse the careful analysis and conclusion by FAA that applying the rule to all-cargo carriers could not be justified.”
[ POSTED APRIL 24, 2012 ]
Hawaiian launches Fukuoka flights
Hawaiian Airlines launched its newest route into Asia on April 16 with the launch of daily nonstop service between Honolulu and Fukuoka, Japan. Fukuoka is the third destination in Japan and fourth in Asia that Hawaiian has launched in the past 17 months; the most recent was Osaka, in July 2011. “Fukuoka is a continuation of our strategy of growing into markets from which we expect to see increasing numbers of visitors to Hawaii," said Mark Dunkerley, Hawaiian's president and CEO. Fukuoka is the capital city of Fukuoka Prefecture and the economic center of Kyushu, the third largest and most southerly of Japan's four main islands; Kyushu has approximately 13 million residents. Hawaiian will initially operate the Honolulu-Fukuoka flights using its wide-body, twin-aisle Boeing 767-300ER aircraft, until introducing new, larger wide-body Airbus A330-200 aircraft onto the route.
[ POSTED APRIL 17, 2012 ]
Zacks blog gives Southwest long-term ‘underperform’ rating
Zacks Equity Research said in its April 12 Analyst blog that it was lowering its long-term rating for Southwest Airlines, the largest U.S. low-cost carrier, where it said traffic declined 0.9 percent year over year in March. Airline traffic is customarily measured in billions of revenue passenger miles. On a year-over-year basis, consolidated capacity (available seat miles) fell 0.9 percent and the load factor (percentage of seats filled by passengers) decreased to 81.8 percent. However, passenger revenue per available seat mile (PRASM) rose 5 percent year over year in March, compared to increases of 4 percent in February and 7 percent in January. It said the company, slated to release first quarter earnings on April 19, does not expect to report profits due to high fuel costs. The Zacks Consensus estimates a loss of 5 cents for the first quarter. “Although Southwest is poised to benefit from fleet rightsizing, the Evolve retrofit program, steady capacity growth, All-New Rapid Rewards, AirTran merger synergies and several ancillary revenues, we are mainly concerned about high maintenance and operating costs associated with fleet rightsizing and modernization. Additionally, the successful integration of AirTran would result in a one-time charge of $500 million, of which $134 million was expended last year,” the blog said. New advertising rules and stiff competition from United Continental Holdings and Delta Air Lines also keep Zacks cautious on the stock. Based on expected weak first quarter projections and feeble macro data points in the entire airline industry, Zacks said it recently downgraded its long-term recommendation to Underperform on Southwest. For the short term (1–3 months), the stock retains a Hold rank.
[ POSTED APRIL 17, 2012 ]
Boeing marks 4,000th Next-Generation 737
More than 500 Boeing employees, executives, suppliers, and government officials joined China Southern Airlines on April 13 to celebrate the 4,000th Next-Generation 737. The 4,000th Next-Generation 737 jetliner off the Renton, Wash., 737 production line will be delivered this week to China Southern Airlines, headquartered in Guangzhou, China. "The Next-Generation 737's success is the result of years of expertise that thousands of employees continue to build into every Boeing 737 used in private, government and commercial service," said Beverly Wyse, vice president and general manager of the 737 program. "It is an incredible milestone to be delivering our 4,000th Next-Generation 737.” The milestone jet is a 737-700 model that seats 126 passengers in a two-class configuration. More 737s have been produced than any other commercial jetliner in history. With more than 5,550 airplanes in service, the 737 family represents more than a quarter of the total worldwide fleet of large commercial jets flying today. More than 358 airlines in 114 countries fly 737s.
[ POSTED APRIL 17, 2012 ]
Southwest makes pitch for Hobby international service
Southwest Airlines on April 9 launched a website to rally support for international service from William P. Hobby Airport in Houston. Earlier this year, the carrier asked the city of Houston for approval to construct a new five-gate international facility at the airport. This proposed expansion—paid for by the users of the facility and guaranteed by Southwest—would open up new low-cost international travel competition to the area, creating an economic impact for the city of more than $1.6 billion annually, Southwest said. According to a study, lower airfares and increased travel options would encourage more than 1.5 million additional passengers to travel each year, creating more than 10,000 jobs across the greater Houston metropolitan area. Houston Director of Aviation Mario Diaz has recommended that the city work with Southwest to expand the federal inspection services facility at Hobby, to support scheduled commercial international service. "I have concluded given Southwest's existing and sizeable domestic network operation at Hobby, it would not be reasonable to require the airline to relocate to Bush Intercontinental Airport, or even conduct split operations—domestic service at Hobby and international service at Intercontinental," he said. Houston Airports commissioned two independent studies to evaluate the economic impact of international flights operated by Southwest.
[ POSTED APRIL 10, 2012 ]
Bankruptcy court restricts Pinnacle trading
Pinnacle Airlines Corp. announced April 6 that the United States Bankruptcy Court for the Southern District of New York has entered an order imposing substantial restrictions on trading in equity interests in and debt claims against Pinnacle and its affiliates. The order may be read online. Pinnacle, an airline holding company with 8,000 employees, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Flying as Delta Connection, United Express, and US Airways Express, Pinnacle’s subsidiaries operate 199 regional jets and 62 turboprops on more than 1,540 daily flights.
[ POSTED APRIL 10, 2012 ]
AirTran gets OK for Midway-Cancun service
Southwest Airlines announced April 5 that its wholly owned subsidiary, AirTran Airways, received route authority from the U.S. Department of Transportation to operate new international flights between Chicago Midway International Airport and Cancun International Airport. AirTran will offer one daily nonstop flight between the two cities beginning on June 3, subject to Mexican government approval. With a current average of 246 daily departures from Chicago Midway, the combined AirTran/Southwest is the second largest carrier in the Chicago region. The two carriers currently operate nonstop service between Chicago Midway and 58 cities.
[ POSTED APRIL 10, 2012 ]
FltOps.com announces job fairs
FltOps.com is holding a Global Pilot Career Conference and Job Fair at the Tuscany Suites and Casino in Las Vegas this Friday, April 13. In addition, a Regional Airline Pilot Job Fair will be held at the Hilton Palm Beach Airport in West Palm Beach, Fla., on Friday, May 4. Both job fairs run from 1 p.m. to 6 p.m.; registration begins at 12:30 p.m. For more information on the events, visit the FltOps website.
[ POSTED APRIL 10, 2012 ]
Pinnacle files for Chapter 11 reorganization
Pinnacle Airlines Corp. and its subsidiaries announced April 1 that they have filed voluntary bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code. Pinnacle, which operates flights for Delta Connection, United Express, and US Airways Express, said it intends to use the Chapter 11 process to continue implementing a comprehensive turnaround plan aimed at addressing operational and financial challenges in a rapidly evolving regional airline industry. During the reorganization Pinnacle plans to restructure its key operating agreements with Delta Air Lines, wind down its operations with United Airlines, conclude its essential air service flying for US Airways, and achieve cost savings from its workforce and across the organization. The carrier said Delta Air Lines will provide $74.3 million of debtor-in-possession financing. "We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term,” said Sean Menke, president and CEO. “Quite simply, our current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays, and difficulties associated with combining our operations have hindered our ability to maximize our growth potential.” Pinnacle also said its Colgan subsidiary will be ending the operation of its remaining Saab 340 and Q400 aircraft.
[ POSTED APRIL 3, 2012 ]
US Airways flight attendants reject tentative agreement
US Airways flight attendants, represented by the Association of Flight Attendants, have voted not to ratify a proposed five-year collective bargaining agreement. US Airways and AFA reached a tentative agreement on January 27 that would have covered the airline's 6,700 flight attendants. "We are obviously disappointed that our flight attendants chose to vote against ratification of a new contract, " Doug Parker, US Airways' chairman and CEO, said March 30. "This tentative agreement was the result of years of deliberate negotiations.” Parker said the carrier would consult with the National Mediation Board and AFA leadership to determine next steps. “Flight attendants have subsidized the cost of the [US Airways and America West] merger and rising fuel costs for the 'New US Airways.' Management must recognize that our sacrifices have directly contributed to the success of US Airways," said Deborah Volpe, AFA pre-merger America West president, and Mark Gentile, AFA pre-merger US Airways acting president.
[ POSTED APRIL 3, 2012 ]
US Airways launches new service to 14 cities from Reagan National
US Airways began new service to 11 communities—and increased frequencies to three others—from Washington, D.C.'s Reagan National Airport (DCA) on March 25. The airline launched nonstop flights to Birmingham, Ala.; Fayetteville, N.C.; Islip, N.Y.; Little Rock, Ark.; Jacksonville, N.C.; Memphis, Tenn.; Omaha, Neb.; Ottawa, Ontario; and Pensacola, Tallahassee, and Ft. Walton Beach, Fla. Additional flights are being added to Savannah, Ga.; Bangor, Maine, and Hartford, Conn. In addition, US Airways announced March 21 that it would begin service from DCA June 8 to San Diego and July 11 to Augusta, Ga., Minneapolis, Fayetteville, Ark., Montreal, Quebec, and Toronto, Ontario. The new flights are a part of the airline’s plan to focus on its core service areas of Washington, D.C.; Philadelphia; Phoenix; and Charlotte, N.C.
[ POSTED MARCH 27, 2012 ]
American Eagle flight attendants to push back on reorganization demands
The Association of Flight Attendants-CWA (AFA) at American Eagle, representing more than 1,800 flight attendants at the carrier, say it’s “shameful” that cuts in compensation, reduced benefits, and work rule changes are being demanded of its members—who are an instrumental part of a successful operation—as a result of bad management decisions in the larger corporation. The union said it is prepared to push back on overreaching, outrageous contract cuts presented by management March 21. “Just prior to American Airlines' bankruptcy filing, flight attendants were negotiating for a new contract and management had already agreed to significant work-rule and benefit improvements,” said AFA American Eagle President Robert Barrow. “Nothing has changed except that bankruptcy gives management a hammer and a process to demand unreasonable concessions from workers.”
[ POSTED MARCH 27, 2012 ]
Southwest takes delivery of first Boeing 737-800
Southwest Airlines on March 21 celebrated the arrival of the carrier's first Boeing 737-800 at its maintenance facility in Dallas. Employees, media, and guests had their first opportunity to see the new aircraft up close. The new jet was delivered March 8 and will undergo several regulatory and conformity procedures before it enters revenue service April 11. The 737-800 carries 175 passengers, almost 30 percent more than the 737s in Southwest’s existing fleet. Southwest plans to take delivery of 33 737-800 aircraft in 2012.
[ POSTED MARCH 27, 2012 ]
Boeing, Airbus, Embraer to collaborate on biofuel
Boeing, Airbus, and Embraer signed a memorandum of understanding March 22 to work together on the development of drop-in, affordable aviation biofuels. The three leading airframe manufacturers agreed to seek collaborative opportunities to speak in unity to government, biofuel producers, and other key stakeholders to support, promote, and accelerate the availability of sustainable new jet fuel sources. The collaboration agreement supports the industry's multipronged approach to continuously reduce its carbon emissions. Continuous innovation, spurred by competitive market dynamics that push each manufacturer to continuously improve product performance, and air traffic modernization are other critical elements to achieving carbon-neutral growth beyond 2020 and halving industry emissions by 2050, based on 2005 levels. All three companies are affiliate members of the Sustainable Aviation Fuel Users Group, which includes 23 airlines responsible for approximately 25 percent of annual aviation fuel use.
[ POSTED MARCH 27, 2012 ]
Airline trade organization seeks tax, regulatory reform
Airlines for America (A4A), an industry trade organization for U.S. airlines, on March 19 asked the U.S. government to reform federal taxes and regulations to enable U.S. carriers to compete globally on a level playing field, and to help grow the country's economy. A4A President and CEO Nicholas E. Calio detailed the excessive tax and regulatory burden faced by the airline industry and its passengers, saying it is one of the most highly regulated businesses in America—even though Congress deregulated the industry nearly 35 years ago. The 17 different federal taxes and fees have grown significantly over the same period, with passengers now paying 20 percent of a typical domestic round-trip ticket price to the government. The association warned that DOT is drafting a third consumer protection rule, which could require airlines to make all their products available through global distribution systems, and already proposed a separate rulemaking that would require airlines to report revenue information related to 19 separate items, including how much they collect for meals, drinks, and upgrades. A4A recently unveiled details of five components it says are necessary for an effective national airline policy; in addition to reforming the tax structure and regulatory environment to ensure global competitiveness, the policy identifies ways to improve the infrastructure and accelerate the deployment of the most cost-beneficial parts of NextGen.
[ POSTED MARCH 20, 2012 ]
US Airways employees to share $12 million in profits
US Airways announced March 14 that, for the second year in a row, employees will receive profit sharing checks recognizing their contribution to the company's full-year profit. US Airways reported a $111 million profit for 2011, and will pay out more than $12 million to eligible employees. Airline employees also earned more than $13 million in operational incentive bonuses over the past year, bringing the total in recognition payouts for US Airways employees to more than $25 million for 2011. Despite high fuel costs, 2011 was a profitable year for the U.S. airline industry—in February, United Continental Holdings, Inc. distributed $265 million in profit sharing to employees, and Delta Air Lines announced that its employees would receive profit-sharing payments totaling $264 million.
[ POSTED MARCH 20, 2012 ]
Horizon mechanics vote to remain Teamsters
Mechanics and related workers at Horizon Air reaffirmed their support for the Teamsters Union on March 15, voting in favor of representation by the Teamsters Airline Division. The 323 mechanics, who have been Teamsters since 2009, had the option of voting for the Teamsters Union, AMFA, or no union; the vote was 151 to 103, with 3 voting for no union. The vote follows a new contract ratified by the mechanics in December 2010 that the union said secured significant improvements in job security, as well as increased pay and benefits. "Although AMFA was able to create a representational dispute through a deceitful campaign of misinformation and untruths, our strong Teamster brothers and sisters stood their ground and beat back the raid," said Capt. David Bourne, director of the Teamsters Airline Division. "Horizon mechanics and related workers recognize the improvements the Teamsters have made for them."
[ POSTED MARCH 20, 2012 ]
New rule could exacerbate pilot shortage
The FAA has issued a highly anticipated Notice of Proposed Rulemaking that would require first officers at all airlines, including regional carriers, to hold an ATP certificate, which requires 1,500 hours of flight experience. The proposed rule resulted from the Airline Safety and Federal Aviation Administration Extension Act of 2010 and the Colgan Flight 3407 crash in Buffalo, N.Y., in 2009. Aviation International News said that neither the Regional Airline Association nor Airlines for America would comment beyond brief written statements emphasizing the need for further study of the proposal. At the same time, the Coalition of Airline Pilots Associations—representing pilot unions at American Airlines, Southwest Airlines, UPS, US Airways, and others—expressed support for the NPRM. The new rules, which are scheduled to become effective next year, could worsen “an already alarming trend toward a shortage of pilots, particularly for regional airlines, most of whose minimum hiring requirements now fall well below the 1,500 hours needed for an ATP,” AIN reported; read its full article online.
[ POSTED MARCH 6, 2012 ]
FAA issues single operating certificate to Southwest, AirTran
Southwest Airlines announced March 1 that the FAA has issued a single operating certificate for the carrier and its wholly owned subsidiary, AirTran Airways. Incorporating AirTran’s jets into the Southwest fleet—including repainting and interior configuration—is not complete, and the transition to a single ticketing system is a complex process that will take several years, although both carriers are now operating under a single set of FAA operations specifications. "We cannot overstate the significance of having received our single operating certificate—it is a monumental step in the regulatory process—and achieving it enables us to move forward with the integration of the two airlines into a single carrier,” said Mike Van de Ven, Southwest’s chief operating officer. Southwest announced plans to acquire AirTran in September 2010, and the purchase closed on May 2, 2011.
[ POSTED MARCH 6, 2012 ]
United announces progress in labor integration
United Airlines announced Feb. 28 that flight attendants represented by the Association of Flight Attendants (AFA) ratified a new labor agreement with the company. The new agreement covers approximately 15,000 United flight attendants at the company's United Airlines subsidiary. The company and AFA soon will commence negotiations for a joint collective bargaining agreement for flight attendants at United, Continental, and Continental Micronesia. Continental flight attendants ratified their collective bargaining agreement in February 2011. In addition, the Air Line Pilots Association master executive councils for both United and Continental on Feb. 27 ratified an extension of the Transition and Process Agreement reached with the company. The agreement contains modifications of the initial agreement which facilitate the conclusion of joint collective bargaining negotiations.
[ POSTED MARCH 6, 2012 ]
UPS pilots lobby LaHood before fatigue meeting
U.S. Secretary of Transportation Ray LaHood was scheduled to meet with UPS executives March 1 and reportedly planned to ask that the cargo giant voluntarily opt in to the new FAA rule on pilot fatigue. In advance of the meeting, the Independent Pilots Association—the union representing UPS pilots—appealed to LaHood to persuade all-cargo carriers like UPS to voluntarily embrace the new rules. “I applaud your initiative in seeking voluntary compliance from the all-cargo industry. We agree that legitimate reasons do not exist for these carriers to operate outside of the new science-based pilot duty and rest rules,” wrote Capt. Robert W. Travis, IPA president. “You should know that UPS has indicated, at least to me, their intent to refuse to voluntarily ‘opt in’ to the new rules.” The union said recent correspondence from UPS suggests that the company may have already decided the issue. "UPS's position on the issue is well documented. We believe that cargo and passenger carriers require different regulatory approaches to duty and rest," UPS said in a letter to the IPA.
[ POSTED MARCH 6, 2012 ]
Poll explores pilots’ sleep habits
The National Sleep Foundation's 2012 Sleep in America poll indicates that transportation professionals struggle with sleep. About one-fourth of pilots (23 percent) and train operators (26 percent) admit that sleepiness has affected their job performance at least once a week, compared to about one in six non-transportation workers (17 percent). The foundation said one in five pilots (20 percent) admit that they have made a serious error because of sleepiness. In addition, pilots and train operators are significantly more likely than nontransportation workers (6 percent each, compared to 1 percent) to say that they have been involved in a car accident due to sleepiness while commuting. Fifty percent of pilots say they rarely or never get a good night's sleep on work nights, compared to 42 percent of nontransportation workers. "We found that although pilots are especially focused on obtaining adequate sleep, one in 10 can still be classified as 'sleepy.' This is not acceptable. Who among us wants to take a one in 10 chance of flying on a plane with a sleepy pilot?" says Capt. Edward Edens of the Walter Reed Army Institute of Research. In general, transportation professionals work more varied shifts than other workers. For a complete summary of the poll, see the website.
[ POSTED MARCH 6, 2012 ]
Southwest to open Denver crew base
Southwest Airlines announced Feb. 24 that it will open a new pilot crew base at Denver International Airport in October 2012; a flight attendant crew base will follow before the end of the year. The airline's ninth crew domicile will be the base for at least 250 pilots and at least 4,000 flight attendants. "Denver is the fastest-growing city in our history, and the new crew base demonstrates our long-term commitment to the community and our successful operation at DIA," said Mike Van de Ven, Southwest's executive vice president and chief operating officer. The carrier began service to Denver on Jan. 3, 2006, with 13 daily nonstop departures to three destinations; now it operates 159 daily nonstops to 51 destinations. Southwest’s other crew bases are located at the Baltimore/Washington, Chicago Midway, Dallas, Houston, Phoenix, Oakland, Orlando, and Las Vegas airports.
[ POSTED FEBRUARY 28, 2012 ]
PSA, flight attendants reach tentative agreement
PSA, a wholly owned US Airways subsidiary, announced Feb. 23 a tentative new collective bargaining agreement with Council 75 of the Association of Flight Attendants (AFA-CWA), which represents PSA's 268 flight attendants. The AFA Master Executive Council must first approve the tentative agreement before it can be sent to its members for consideration; this first step is expected to take place in the coming weeks. The tentative agreement would cover the airline's 268 flight attendants, who are based in Dayton, Ohio; Knoxville, Tenn.; and Charlotte, N.C. "Flight attendants were adamant that our role as first responders be recognized and that this agreement ensures our future success as an airline," said L.C. Acor, AFA president at PSA President. Details of the tentative agreement will not be made public until they are presented to the carrier’s flight attendants.
[ POSTED FEBRUARY 28, 2012 ]
Air Guard leaders ask Congress to halt 'flawed' USAF budget request
Frustrated by an Air Force budget process they believe dismissed Air National Guard cost-efficiency and competence, state Guard leaders have taken their concerns to Capitol Hill. In a Feb. 27 letter to the chairmen and the ranking members of the congressional committees that will ultimately determine the defense budget, the Adjutants General Association of the United States asked lawmakers to freeze the Air Force's 2013 budget request until lawmakers can comprehensively review the submission. Adjutants general from all 50 states signed a letter that said they believe the Air Force used "flawed processes, assumptions, and criteria" to develop a budget request in which the Air Guard bears the brunt of proposed Air Force personnel and aircraft reductions. "It is counterintuitive that the Air National Guard, which comprises 21 percent of the uniformed members of the total Air Force, would bear 59 percent of the total aircraft cuts and approximately six times the per capita personnel cuts, especially in light of our country's current and foreseeable fiscal posture," they wrote, adding that they’ve asked the Air Force for more than three years for a comprehensive long-range plan. "Absent such a plan, it is reasonable to assume we will be in a continuous cycle of budget cuts that eliminate aircraft and personnel assigned to the Air National Guard by the Air Force."
[ POSTED FEBRUARY 28, 2012 ]
Flight attendant launches petition to replace American’s management
A series of YouTube videos mocking a flight attendant's bosses at American Airlines has morphed into a grassroots movement to remove the upper management team now running the airline, which filed for Chapter 11 bankruptcy protection in November 2011. The filing was followed by an announcement of extensive layoffs and planned pay cuts; while 15,000 employees expected to lose their jobs and benefits, multimillion-dollar bonuses were paid to top executives. Gailen David, a 24-year American flight attendant based in Miami, said he has been joined by thousands of supporters. A website has been created that seeks to collect 250,000 signatures on a petition that would then be sent to the judge presiding over the airline’s bankruptcy case. “It is time for fresh, visionary leadership at AA that will make it an airline that people love to fly and to be a part of once again," he said. David, who has been on a leave of absence for the past year, said the airline was not amused and threatened to terminate his employment. Visit his website.
[ POSTED FEBRUARY 28, 2012 ]
Union, trade group seek expanded crew screening program
Airlines for America, the industry trade organization formerly known as the Air Transport Association of America, and the Air Line Pilots Association, International on Feb. 15 announced their intent to expand the Known Crewmember program to more U.S. airports in 2012, following a successful test of the risk-based security program at seven hub airports. The test, launched in April 2011, enables TSA officers to verify the identity and employment status of airline pilots, who already undergo thorough criminal background and employment checks as a condition of their employment. The program allows pilots to utilize a more efficient security-screening process; both ALPA and A4A have asked TSA to include flight attendants in the future. More information is available online.
[ POSTED FEBRUARY 21, 2012 ]
AMR summarizes 2011 financials
AMR Corporation, the parent company of American Airlines, on Feb. 15 filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission. The company recorded a consolidated net loss of $1.1 billion for the fourth quarter of 2011, compared to a consolidated net loss of $97 million in the fourth quarter of 2010. Excluding special items, its loss during the fourth quarter of 2011 was $209 million—which compares to a loss, excluding special items, of $69 million for the same period of 2010. For fiscal 2011, AMR recorded a consolidated net loss of approximately $2 billion, which compares to a consolidated net loss of $471 million for fiscal 2010. Excluding special items, the 2011 consolidated net loss was approximately $1.1 billion, compared to $389 million in 2010. The company said it paid nearly $2 billion more for jet fuel during 2011 than it would have paid at prevailing prices in the prior full-year period.
[ POSTED FEBRUARY 21, 2012 ]
Alaska Air Group declares stock split
Alaska Air Group announced Feb. 16 that its board of directors has declared a two-for-one stock split that will be implemented as a stock dividend. The additional shares will be distributed on March 16, 2012, to shareholders of record on March 2, 2012. The stock split will increase Alaska Air Group's outstanding shares from approximately 35.5 million shares to about 71 million shares. However, the board also approved a stock repurchase program authorizing the company to buy up to $50 million of its common stock over the next year. The company said it would finance the stock repurchases with cash on hand. Over the past five years, Alaska Air Group repurchased 8.3 million shares of its common stock for nearly $262 million.
[ POSTED FEBRUARY 21, 2012 ]
Airlines oppose White House budget proposal
Airlines for America (A4A), the industry trade organization formerly known as the Air Transport Association of America, said Feb. 13 that the White House budget proposal “to offset the deficit on the backs of airline customers, by adding even more tax increases, would impact demand for air travel and ultimately cost jobs and service to communities.” A4A said the tax increase would reduce the number of passengers flying, which in turn will prompt airlines to reduce service, impacting hundreds of thousands of jobs in commercial aviation. Over the next five years, the White House proposes tripling the aviation security tax to $7.50 for each one-way trip, generating $18 billion that would be used for deficit reduction—not on aviation security. The proposal also seeks to add a new $100 per flight tax; a portion of those proceeds also would go toward deficit reduction. The organization said airline customers pay about $61 in taxes on a typical $300 ticket today.
[ POSTED FEBRUARY 14, 2012 ]
United Continental, Delta share millions in profits
United Continental Holdings, Inc. was to distribute $265 million in profit sharing on Feb. 14 to employees based on the combined full-year financial results of its subsidiaries, United Airlines and Continental Airlines. The company said it would pay eligible employees approximately 5 percent of their annual pay. Jeff Smisek, the company’s president and CEO, planned to deliver profit-sharing checks to employees at Bush Intercontinental Airport in Houston and O'Hare International Airport in Chicago. In addition to profit sharing, employees of the combined company earned cash incentive payments totaling $40 million for on-time performance during 2011. In addition, Delta Air Lines told its 80,000 employees worldwide that they would receive profit-sharing payments totaling $264 million on Feb. 14. Delta CEO Richard Anderson told airline employees that the payment would equal 4.85 percent of their annual pay. Delta also paid approximately $60 million in Shared Rewards during 2011.
[ POSTED FEBRUARY 14, 2012 ]
Flight Options to buy Phenom, Nextant jets
Flight Options, LLC, announced Feb. 9 that it will build on its successful 2011 performance by continuing to expand its fractional aircraft ownership, membership, and jet card programs in 2012. “In a year when few operators took delivery of new business jets, Flight Options was aggressively investing in its business to deliver competitively priced, flexible access to aircraft that meets our clients’ business and personal travel needs,” said Kenn Ricci, chairman of the Cleveland-based company. He said Flight Options took delivery last year of jets that included 14 Embraer Phenom 300, Cessna Citation X, and Nextant 400XT aircraft. In 2012 the company will take delivery of additional Phenom 300s, part of a previously placed 100-aircraft order, as well as new Nextant 400XT aircraft—part of a 40-aircraft order for the world’s first completely remanufactured business jet.
[ POSTED FEBRUARY 14, 2012 ]
China pilot job fair adds two airlines
West Air and Skymark Airlines have joined the list of Chinese airlines that plan to hold interviews at Pan Am International Flight Academy’s All China Job Fair later this month in Miami and Las Vegas. Other participating airlines are Shenzhen Airlines, Air China, Hainan Airlines, Tianjin Airlines, Sichuan Airlines, Xiamen Airlines, Chengdu Airlines, Spring Airlines, Okair, and Business Aviation Asia. The free pilot job fair is scheduled for Feb. 23 and 24 at Pan Am’s headquarters on Miami International Airport, and for Feb. 26 at Pan Am’s Las Vegas training center in Henderson. Pilots will have the opportunity to learn more about the growing China market and be interviewed for currently available positions; qualified applicants may receive on-the-spot conditional offers. Already, 800 pilots have registered for the three-day event. Interested candidates can register by visiting the Pan Am website or by calling 877-394-2118.
[ POSTED FEBRUARY 14, 2012 ]
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 ]
