January 10 Airline News - Morning Edition



[SPAN][FONT face=Times New Roman size=3][SPAN class=t][STRONG]Airlines Expect Big 4Q Losses, Record-Year Deficits[/STRONG][/SPAN][/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3][SPAN class=t]NEW YORK -- Suffering from dismal demand and weak fares, the nation's big airlines are expected to post large fourth-quarter losses and are on track to rack up a record full-year deficit of $9 billion.[/SPAN][/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3][SPAN class=t]Complete Story: [A target=_blank href=http://biz.yahoo.com/djus/030110/0959000276_1.html]http://biz.yahoo.com/djus/030110/0959000276_1.html[/A][/SPAN][/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3][SPAN class=t][/SPAN][/FONT][/SPAN][SPAN][FONT face=Times New Roman size=3][STRONG]Senate and airlines seek a blueprint for industry comeback[/STRONG][/FONT][/SPAN] [BR][BR][SPAN][FONT face=Times New Roman size=3]WASHINGTON (Washingtion Times) - The Senate is examining options to prop up the finances of major airlines as they head into their third year of expected billion-dollar losses. [/FONT][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.washtimes.com/business/20030110-85246188.htm][FONT face=Times New Roman size=3]http://www.washtimes.com/business/20030110-85246188.htm[/FONT][/A][FONT face=Times New Roman size=3] [BR][/FONT][/SPAN][SPAN][FONT face=Times New Roman size=3][BR][STRONG]U.S. Airlines' Future Depends on Lower Costs, Official Says[/STRONG][BR][/FONT][FONT face=Times New Roman size=3][BR]WASHINGTON (Washington File) - The future of the U.S. air transportation industry will likely depend on large carriers' ability to reduce their operating costs and on the extent of travel business recovery, a senior Transportation Department official says.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=03010901.clt&t=/products/washfile/newsitem.shtml][FONT face=Times New Roman size=3]http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=03010901.clt&t=/products/washfile/newsitem.shtml[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]McCain: Let weak airlines fail[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]WASHINGTON (TheDeal.com) - The incoming chairman of the Senate Commerce Committee warned the airlines Thursday, Jan. 9, that he would rather see carriers fail than waste billions of dollars to sustain economically doomed companies. [BR][/FONT][FONT face=Times New Roman size=3][BR]We should be reluctant to do anything that might keep inefficient businesses afloat, Sen. John McCain, R-Ariz., said at a hearing on the health of the airline industry. Many people believe that the basic business model of the traditional hub-and-spoke carriers was broken long before the current difficulties. [BR][/FONT][FONT face=Times New Roman size=3][BR]McCain said he is especially troubled about bailing out the major carriers because the discount airlines, which follow a different business model, have remained profitable and grown despite the economic downturn. [BR][/FONT][FONT face=Times New Roman size=3][BR]We must ask whether our actions would improperly distort the marketplace, McCain said. The ability of some carriers to remain profitable in the current climate raises questions about whether there is something wrong with the rest of the industry. [BR][/FONT][FONT face=Times New Roman size=3][BR]Still, McCain refused to shut the door to offering additional federal relief. Permitting airlines to fail would strengthen the dominant carriers even more, which would mean higher prices for consumers and less service to rural markets. We face no easy choices, he said. [BR][/FONT][FONT face=Times New Roman size=3][BR]The senator suggested the hub-and-spoke carriers need to first clean up their own houses, including getting labor costs under control. Along those lines, McCain is the primary sponsor of a bill that would force labor disputes in the airline sector to binding arbitration if the parties reach an impasse. [BR][/FONT][FONT face=Times New Roman size=3][BR]Executives from AMR Corp., Northwest Airlines Inc. and U.S. Airways Inc[STRONG].[/STRONG] may have inadvertently provided support for the camp that argues against propping up these hub-and-spoke carriers. [BR][/FONT][FONT face=Times New Roman size=3][BR]As American Airlines chairman Donald Carty testified, hub-and-spoke airlines are suffering primarily because their system is premised on business travelers paying premium prices for seats. Yet business travel was down 40% in 2002 compared to 2001, he said. [BR][/FONT][FONT face=Times New Roman size=3][BR]Northwest CEO Richard Anderson said the business travelers who are flying have become accustomed to discounted fares and are no longer are willing to pay top dollar. Business passenger revenue was down 21% in the first 11 months of 2002 compared with a year earlier and off 36% from 2000, he said. [BR][/FONT][FONT face=Times New Roman size=3][BR]Yet these executives said their business models are viable. Hub-and-spoke systems are the most efficient means to provide frequent service to most Americans, especially those outside of major cities, Anderson said. [BR][/FONT][FONT face=Times New Roman size=3][BR]Perhaps recognizing that additional cash outlays are not forthcoming, the executives instead called for the federal government to pick up a greater share of security costs and to cut taxes on airlines. [BR][/FONT][FONT face=Times New Roman size=3][BR][STRONG]Public officials must abandon their convoluted view of the industry in which they profess to value its importance and then turn around and tax, regulate and fine us to the point of operational paralysis, U.S. Airways President David Siegel said. [BR][/STRONG][/FONT][FONT face=Times New Roman size=3][BR]Anderson also demanded that regulators permit code sharing agreements to advance. An arrangement between Northwest,[STRONG] [/STRONG]Delta Air Lines Inc. and Continental Airlines Inc. has been stalled for months at the Department of Transportation. [BR][/FONT][FONT face=Times New Roman size=3][BR]Sen. Ernest Hollings, D.-S.C., said the airline sector is too important to the economy to permit it to collapse. Yet he said it was unclear what Congress should do. [BR][/FONT][FONT face=Times New Roman size=3][BR]We need to see real fixes with real results, not a system of booms and busts that overcharges customers in good times and asks for handouts from them in bad times, he said.[/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][STRONG]American Eagle Pilots Protest Plans to Sell Caribbean Affiliate[/STRONG][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2]SAN JUAN(AP) - A pilots union said a proposed sale by American Eagle's parent company of its Caribbean affiliate would violate contract agreements and could affect employee benefits.[/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2]Complete Story: [A target=_blank href=http://biz.yahoo.com/ap/030109/amr_executive_airlines_1.html][FONT color=#0000ff]http://biz.yahoo.com/ap/030109/amr_executive_airlines_1.html[/FONT][/A][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t][STRONG]Temporary Pay Cuts for UAL Machinists[/STRONG][/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t]CHICAGO (Reuters) - A U.S. bankruptcy judge on Friday ordered temporary 13 percent pay cuts for unionized machinists at United Airlines, buying the airline more time to negotiate broad concessions at its entire unionized work force.[/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t]Complete Story: [A target=_blank href=http://biz.yahoo.com/rb/030110/airlines_united_machinists_4.html]http://biz.yahoo.com/rb/030110/airlines_united_machinists_4.html[/A][/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t][/SPAN][/SPAN][/SPAN][/FONT][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t][STRONG]United Announces Changes To International Schedule - [SPAN class=t2]Measures Part Of Company's Strategic Effort To Optimize Its Global Network[/SPAN][/STRONG][/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t][SPAN class=t2]CHICAGO (PRNewswire-FirstCall) - United Airlines today announced changes to its international flight schedule as part of the carrier's strategic effort to optimize its international offerings. The changes include the introduction of daily nonstop service between San Francisco and Seoul, Korea, the discontinuation of service to Auckland, New Zealand and the transition of nonstop Miami - Rio de Janeiro service to one- stop service through Sao Paulo, Brazil.[/SPAN][/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][SPAN class=t2][SPAN class=t][SPAN class=t2]Complete Story: [A target=_blank href=http://biz.yahoo.com/prnews/030110/cgf011_1.html]http://biz.yahoo.com/prnews/030110/cgf011_1.html[/A][/SPAN][/SPAN][/SPAN][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t][STRONG]United Air Cancels U.S.-to-New Zealand Route[/STRONG][/SPAN][/FONT][BR][BR][FONT face=Times New Roman size=3][SPAN class=t]WELLINGTON (Dow Jones)--UAL Corp.'s United Airlines said Friday it will stop flying between New Zealand and the U.S. as part of its program to return to profitability. [BR][BR]The last United aircraft will depart Auckland for Los Angeles March 29, the airline said in a statement.[BR][BR]Complete Story: [A target=_blank href=http://biz.yahoo.com/djus/030109/2234000908_1.html][FONT color=#0000ff]http://biz.yahoo.com/djus/030109/2234000908_1.html[/FONT][/A][BR][BR][SPAN class=t][SPAN class=storyHeadline][STRONG]United says 96 employees affected by NZ shutdown[/STRONG][/SPAN][/SPAN][BR][BR][SPAN class=t][SPAN class=storyHeadline]CHICAGO (Reuters) - United Airlines, the world's No. 2 airline, on Friday said 96 employees would be affected by the discontinuation of its service between New Zealand and the United States, after falling ticket prices made the route unprofitable.[/SPAN] [/SPAN][BR][BR][SPAN class=t]Complete Story: [A target=_blank href=http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=2023232]http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=2023232[/A][/SPAN][BR][BR][SPAN class=t][STRONG]Delta to Take $125 Million 4th-Quarter Charge on Job Cuts[/STRONG][/SPAN][BR][BR][SPAN class=t]ATLANTA (Dow Jones) - Delta Air Lines Inc.'s planned work-force reduction of 7,000 to 8,000 jobs will result in $175 million in pretax charges. [BR][BR]The job cuts, announced in October, represent 10% to 12% of Delta's total work force.[BR][BR]Complete Story: [A target=_blank href=http://biz.yahoo.com/djus/030109/1829000805_1.html][FONT color=#0000ff]http://biz.yahoo.com/djus/030109/1829000805_1.html[/FONT][/A] [BR][/SPAN][/SPAN][/FONT][FONT face=Times New Roman][FONT size=3][STRONG][BR]Santorum's US Airways pension rescue blocked - Senators tell Santorum other airlines would demand same break[/STRONG] [/FONT][/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][SPAN]PITTSBURGH (Post-Gazette) - The Senate yesterday blocked a last-ditch effort by Sen. Rick Santorum, R-Pa., to permit US Airways to stretch out $3.1 billion in payments to its employee pension plan over 30 years.[/SPAN] [/FONT][/FONT][BR][BR][SPAN][FONT face=Times New Roman size=3]Complete Story: [SPAN class=BodyFont][A target=_blank href=http://www.post-gazette.com/businessnews/20030110airp2.asp][FONT color=#336699]http://www.post-gazette.com/businessnews/20030110airp2.asp[/FONT][/A][/SPAN] [/FONT][/SPAN][BR][BR][STRONG][FONT face=Times New Roman][FONT size=3][SPAN]Senate panel to hear bill on US Airways pension - [/SPAN]Measure would allow airline to restructure plan [/FONT][/FONT][/STRONG][BR][BR][FONT face=Times New Roman size=3]WASHINGTON - A Senate panel will hold a hearing this month on legislation to allow the bankrupt air carrier US Airways, the nation's sixth-largest airline, to restructure its pilots' pension plan to obtain a $1 billion federal loan. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.sunspot.net/news/nationworld/bal-te.usair10jan10,0,7572485.story?coll=bal%2Dnews%2Dnation][FONT face=Times New Roman size=3]http://www.sunspot.net/news/nationworld/bal-te.usair10jan10,0,7572485.story?coll=bal%2Dnews%2Dnation[/FONT][/A][FONT face=Times New Roman size=3] [/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]Plane Crash May Be Tied to Servicing Mistake[/STRONG] [/FONT][/FONT][BR][BR][FONT face=Times New Roman size=3]CHARLOTTE (New York Times) - Federal investigators looking into the crash of a commuter plane here on Wednesday say they suspect that an error was made little more than 24 hours before in servicing the system that controlled the aircraft's pitch. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.nytimes.com/2003/01/10/national/10CRAS.html?ex=1042866000&en=2d2f91c53542ad63&ei=5040&partner=MOREOVER][FONT face=Times New Roman size=3]http://www.nytimes.com/2003/01/10/national/10CRAS.html?ex=1042866000&en=2d2f91c53542ad63&ei=5040&partner=MOREOVER[/FONT][/A][FONT face=Times New Roman size=3][/FONT] [BR][BR][SPAN class=t][SPAN class=t2][FONT size=3][FONT face=Times New Roman][STRONG]FAA orders airline to check 43 planes - Planes linked to facility that worked on Flight 5481[/STRONG] [/FONT][/FONT][BR][BR][FONT face=Times New Roman size=3]CHARLOTTE (CNN) - As the investigation continues into the deadly crash of an Air Midwest commuter flight, the Federal Aviation Administration late Thursday ordered the airline to take immediate action to check flight control systems on 43 planes serviced at the same maintenance facility as the doomed plane.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.cnn.com/2003/US/South/01/09/plane.crash/index.html][FONT face=Times New Roman size=3]http://www.cnn.com/2003/US/South/01/09/plane.crash/index.html[/FONT][/A][FONT face=Times New Roman size=3] [/FONT][BR][BR][/SPAN][/SPAN][FONT size=3][FONT face=Times New Roman][STRONG]Airline employees say plane 'looked heavy' before crash that killed 21 aboard[/STRONG] [/FONT][/FONT][BR][BR][FONT face=Times New Roman size=3]CHARLOTTE (AP) - Several airline employees interviewed in the probe of a commuter plane crash that killed 21 people said the turboprop looked heavy as it set out for a flight that lasted just 37 seconds. [/FONT][BR][BR][FONT face=Times New Roman size=3]Federal investigators are looking at the flight's weight, estimated to be about 100 pounds below its maximum, and at recent work on its tail assembly, National Transportation Safety Board member John Goglia said Thursday. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.nj.com/newsflash/national/index.ssf?/cgi-free/getstory_ssf.cgi?a0453_BC_PlaneCrash&&news&newsflash-national][FONT face=Times New Roman size=3]http://www.nj.com/newsflash/national/index.ssf?/cgi-free/getstory_ssf.cgi?a0453_BC_PlaneCrash&&news&newsflash-national[/FONT][/A][FONT face=Times New Roman size=3] [/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]US Airways Tidbits[/STRONG][/FONT][BR][BR][STRONG][FONT face=Times New Roman size=3]Life Saved[/FONT][/STRONG] [BR][FONT color=#000000][FONT face=Times New Roman size=3][BR]ARLINGTON (theHub.com) - Flight attendants and medical personnel onboard US Airways Flight 10 from Pittsburgh to Hartford last Sunday successfully revived a passenger suffering from cardiac arrest. Pittsburgh-based flight attendants Matthew Inskeep, Stephanie Howe, Jan Getty and Robin Van Meter coordinated cardiopulmonary resuscitation (CPR), and use of the Automated External Defibrillator (AED), to save the life of an elderly man. Medaire, Inc., US Airways' Phoenix-based onboard medical advisor, confirmed that the passenger, who was taken to a local Hartford hospital, is expected to make a full recovery. To date, 10 people have been revived by US Airways employees using AEDs onboard the aircraft or in the terminal area. “Thorough flight attendant training combined with proper execution of procedures has proven to be valuable in saving lives. We are most grateful to the crew and onboard medical personnel for their heroic actions,â€￾ said Pete Eichenlaub, director of flight safety and quality assurance. [BR][/FONT][STRONG][FONT face=Times New Roman size=3][BR]US Airways Today [BR][/FONT][/STRONG][FONT face=Times New Roman size=3][BR]ARLINGTON (US Airways Today) - Delta plans to make significant changes to its Dallas/Fort Worth hub schedule to better match capacity with demand and attract more business traffic. Starting April 6, Delta will increase the number of Dallas/Fort Worth flights by 13 percent, but capacity will fall as the airline shifts a portion of mainline flying to regional jets. Meanwhile, American, which for the period ending June 2002 claimed about 60 percent of the mainline market share at Dallas/Fort Worth, has made its own changes, and is working on implementing a rolling schedule with the goal of flying the same schedule with 11 fewer aircraft and fewer gates and staff. [BR][/FONT][FONT face=Times New Roman size=3][BR]ARLINGTON (US Airways Today) - President Bush signed an unemployment benefits package extending compensation by 13 weeks for hundreds of thousands of laid-off airline and aerospace workers. The bill was passed the Senate and House earlier this week, and will help workers who would have lost benefits before June 2003.[/FONT][/FONT][/SPAN]

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