January 8 Airline News



[FONT face=Times New Roman size=3][SPAN class=t][STRONG]World Airlines Lost About $13B in 2002[/STRONG][/SPAN][/FONT][BR][BR][SPAN class=t][FONT face=Times New Roman size=3]PORT-OF-SPAIN (AP) - The world airline industry lost more in the last two years than it made in profits over the combined 45 years previous, a top industry official said. [/FONT][BR][BR][FONT face=Times New Roman size=3]The decline in profits is likely to continue as airline costs go up, said Giovanni Bisignani, of the International Air Transport Association. Bisignani, the association's director general and CEO, was speaking during a conference Monday in Trinidad and Tobago.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/ap/030107/airline_industry_losses_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/ap/030107/airline_industry_losses_1.html[/FONT][/A][BR][BR][SPAN class=t][FONT face=Times New Roman size=3][STRONG]AMR Asks Employees to Reduce Sick Days[/STRONG][/FONT][/SPAN][BR][BR][SPAN class=t][FONT face=Times New Roman size=3]DALLAS (Reuters) - American Airlines said it is leaving no stone unturned in cutting costs as it asks employees to cut back on their sick days, but unions for the world's largest airline said on Wednesday the move may cost more in worker morale than it saves on operating costs.[/FONT][/SPAN][BR][BR][SPAN class=t][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/rb/030108/airlines_american_sickday_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/rb/030108/airlines_american_sickday_1.html[/FONT][/A][/SPAN][BR][BR][SPAN class=t][/SPAN][/SPAN][FONT face=Times New Roman size=3][STRONG]United, US Airways expand alliance[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]PITTSBURGH (Post-Gazette) - US Airways and United Airlines began selling seats on each other's flights yesterday as part of a marketing alliance the two bankrupt carriers hope will boost sagging revenue and help them survive.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.post-gazette.com/businessnews/20030108usair0108p4.asp][FONT face=Times New Roman color=#0000ff size=3]http://www.post-gazette.com/businessnews/20030108usair0108p4.asp[/FONT][/A][BR][BR][SPAN][STRONG][FONT face=Times New Roman size=3]Air partnership takes flight - Deal lets US Airways and United passengers book on either[/FONT][/STRONG][/SPAN][BR][BR][SPAN][FONT face=Times New Roman size=3]CHARLOTTE (Charlotte Observer) - [/FONT][SPAN class=body-content][FONT face=Times New Roman size=3]US Airways and United Airlines rolled out their code-share agreement Tuesday, saying it will bring new conveniences for fliers and new business for Charlotte/Douglas International Airport.[/FONT][BR][BR][FONT face=Times New Roman size=3]Essentially, the code share makes partners of the two airlines, bringing many of the benefits anticipated in a merger effort rejected by federal regulators in 2001.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.charlotte.com/mld/charlotte/business/4897179.htm][FONT face=Times New Roman color=#0000ff size=3]http://www.charlotte.com/mld/charlotte/business/4897179.htm[/FONT][/A][BR][BR][/SPAN][/SPAN][SPAN class=inside-head][FONT face=Times New Roman size=3][STRONG]United pays outside advisers millions[BR][/STRONG][/FONT][/SPAN][SPAN class=inside-head][FONT face=Times New Roman size=3][BR]CHICAGO (Chicago Tribune) - As United Airlines' pilots brace for 29% pay cuts, their company is poised to spend millions for legal and financial services from 11 firms helping chart its recovery. [/FONT][FONT face=Times New Roman size=3]UAL, United's parent company, has retained five law firms and six other firms whose specialties include investment banking, corporate turnarounds, accounting and public relations.[BR][/FONT][FONT face=Times New Roman size=3][BR]Complete Story: [/FONT][A target=_blank href=http://www.usatoday.com/money/biztravel/2003-01-08-united-advice_x.htm][FONT face=Times New Roman color=#0000ff size=3]http://www.usatoday.com/money/biztravel/2003-01-08-united-advice_x.htm[/FONT][/A] [BR][FONT face=Times New Roman size=3][STRONG][BR]3 unions at United approve wage cuts[BR][/STRONG][/FONT][FONT face=Times New Roman size=3][BR]CHICAGO (Chicago Tribune) - Setting the stage for a possible showdown with the machinists union, three unions representing United Airlines employees said Tuesday that their members approved temporary pay cuts of up to 29 percent.[BR][/FONT][FONT face=Times New Roman size=3][BR]Complete Story: [/FONT][A target=_blank href=http://www.chicagotribune.com/business/printedition/chi-0301080264jan08,1,5104932.story?coll=chi%2Dprintbusiness%2Dhed][FONT face=Times New Roman color=#0000ff size=3][A href=http://www.chicagotribune.com/business/printedition/chi-0301080264jan08,1,5104932.story?coll=chi%2Dprintbusiness%2DhedUnited]http://www.chicagotribune.com/business/printedition/chi-0301080264jan08,1,5104932.story?coll=chi%2Dprintbusiness%2Dhed[/FONT][/A][BR][SPAN class=t][STRONG][FONT face=Times New Roman size=3][BR][/A]United Airlines' Flight Attendants Ratify Interim Relief Agreement[BR][/FONT][/STRONG][/SPAN][FONT face=Times New Roman][FONT size=3][SPAN class=t][BR]CHICAGO ([/SPAN][SPAN class=t]PRNewswire) - United Airlines flight attendants, represented by the Association of Flight Attendants, AFL-CIO, agreed to make extraordinary sacrifices today by ratifying an Interim Letter of Agreement with the airline that provides for a temporary nine percent cut in total flight attendant compensation.[BR][/SPAN][/FONT][/FONT][SPAN class=t][FONT face=Times New Roman size=3][BR]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/prnews/030108/dcw038_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/prnews/030108/dcw038_1.html[/FONT][/A][FONT face=Times New Roman size=3] [BR][/FONT][/SPAN][SPAN class=t][STRONG][FONT face=Times New Roman size=3][BR]United Airlines' Traffic Up 15.0% as Load Factor Rises to 75.9%[BR][/FONT][/STRONG][/SPAN][SPAN class=t][FONT face=Times New Roman size=3][BR]CHICAGO (PRNewswire-FirstCall) - United Airlines' total scheduled revenue passenger miles (RPMs) rose 15.0 percent in December vs. the comparable month in 2001 as capacity was increased 8.0 percent. The carrier's passenger load factor came in at 75.9 percent, up from 71.4 percent a year ago.[BR][/FONT][/SPAN][SPAN class=t][FONT face=Times New Roman size=3][BR]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/prnews/030108/cgw042_1.html][FONT face=Times New Roman size=3]http://biz.yahoo.com/prnews/030108/cgw042_1.html[/FONT][/A][FONT face=Times New Roman size=3] [BR][/FONT][/SPAN][SPAN class=t][FONT face=Times New Roman size=3][STRONG][BR]UAL to dole out double miles[/STRONG] [BR][/FONT][FONT face=Times New Roman size=3][BR]CHICAGO (Chicago Tribune) - In a move to keep its loyal customers from flying its rivals, United Airlines will reward double miles to a small group of its frequent fliers on flights booked by Jan. 24. [BR][BR]S[/FONT][FONT face=Times New Roman size=3]pokeswoman Chris Nardella said the airline targeted fewer than 10% of its 40 million Mileage Plus members for the deal, based on how often they fly and where they live. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.chicagobusiness.com/cgi-bin/news.pl?id=7574][FONT face=Times New Roman color=#0000ff size=3]http://www.chicagobusiness.com/cgi-bin/news.pl?id=7574[/FONT][/A] [BR][/SPAN][STRONG][FONT face=Times New Roman size=3][BR]US Airways reports fewer passengers but fuller planes[BR][/FONT][/STRONG][FONT face=Times New Roman size=3][BR]PITTSBURGH (Business Times) - Fewer people flew on US Airways in December, but the carrier was able to fill a greater percentage of its planes through capacity cuts. [BR][/FONT][FONT face=Times New Roman size=3][BR]Complete Story: [/FONT][A target=_blank href=http://www.bizjournals.com/pittsburgh/stories/2003/01/06/daily13.html][FONT face=Times New Roman color=#0000ff size=3]http://www.bizjournals.com/pittsburgh/stories/2003/01/06/daily13.html[/FONT][/A][FONT face=Times New Roman size=3] [BR][BR][/FONT][/SPAN][FONT face=Times New Roman size=3][STRONG]US Airways may close all but 4 OIA gates[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]ORLANDO (Orlando Sentinel) - US Airways is planning to close almost three-quarters of its gates at Orlando International Airport as part of a plan to save money and keep the bankrupt carrier airborne.[BR][BR]US Airways Group Inc., which accounts for 9 percent of the passenger traffic at the airport, wants to slash the number of gates it leases at the airport to four from 15, a company spokesman said Monday. US Airways made its request in papers filed with the U.S. Bankruptcy Court in Alexandria, Va.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://www.orlandosentinel.com/business/custom/tourism/orl-asecusairways07010703jan07,0,5339571.story?coll=orl-news-headlines][FONT face=Times New Roman color=#0000ff size=3]http://www.orlandosentinel.com/business/custom/tourism/orl-asecusairways07010703jan07,0,5339571.story?coll=orl-news-headlines[/FONT][/A][BR][BR][SPAN class=t][STRONG][FONT face=Times New Roman size=3]US Airways to Begin Service to Dublin and Shannon[/FONT][/STRONG][/SPAN][BR][BR][SPAN class=t][FONT face=Times New Roman size=3]ARLINGTON (PRNewswire-FirstCall) - US Airways routes from Philadelphia to the Irish cities of Dublin and Shannon are now available for customers to make reservations, following U.S. Department of Transportation (DOT) approval of the airline's Dec. 3, 2002 filing. [/FONT][BR][BR][FONT face=Times New Roman size=3]US Airways received DOT authority on Dec. 20, 2002, to serve Dublin and Shannon from its Philadelphia hub. Service is subject to foreign government approval.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/prnews/030108/dcw006_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/prnews/030108/dcw006_1.html[/FONT][/A][BR][BR][FONT face=Times New Roman color=#333333 size=3][STRONG]US Airways Wins Judge's Approval to Investigate EDS[/STRONG][/FONT][BR][BR][FONT color=#333333][FONT face=Times New Roman size=3]ALEXANDRIA (Bloomberg) - US Airways Group Inc. may investigate its $5 billion computer services agreement with Electronic Data Systems Corp. as the bankrupt airline decides whether to abandon the contract, a federal bankruptcy judge ruled. [/FONT][/FONT][BR][BR][/SPAN][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://quote.bloomberg.com/fgcgi.cgi?T=marketsquote99_relnews.ht&s=APhyNHxUeVVMgQWly][FONT face=Times New Roman color=#0000ff size=3]http://quote.bloomberg.com/fgcgi.cgi?T=marketsquote99_relnews.ht&s=APhyNHxUeVVMgQWly[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]Chip comments:[/STRONG] I find it interesting that the bankruptcy court ruled in favor of US Airways and against EDS (Sabre) in this motion. US Airways appears now to be able to [FONT face=Arial size=2][FONT face=Times New Roman size=3]abandon the $200 million per year IT contract that has a 25-year term. US Airways accused EDS of not providing most favored customer status and American and Continental Airlines opposed the investigation. Whom? [/FONT][BR][BR][FONT face=Times New Roman size=3]US Airways bankruptcy lawyer Jack Butler of Skadden Arps Slate Meagher & Flom told the judge We're trying to evaluate the conduct of our counter party to the contract. We're suspicious, and the more they fight, the more suspicious we get.[/FONT][BR][BR][FONT face=Times New Roman size=3]I wonder if US Airways would like financial relief and be able to transition to Apollo?[/FONT] [BR][BR][/FONT][/FONT][STRONG][FONT face=Times New Roman size=3]Air Midwest Accident[BR][/FONT][/STRONG][FONT color=#000000][FONT face=Times New Roman size=3][BR]ARLINGTON (theHub.com) - Air Midwest flight 5481, a Beechcraft-1900 going from Charlotte, N.C., to Greenville/ Spartanburg, S.C., has been involved in an accident in Charlotte. It has been confirmed that that the aircraft carried 19 passengers and two crewmembers. [/FONT][FONT face=Times New Roman size=3]Authorities also have confirmed that there are no survivors. The aircraft struck a US Airways maintenance hangar at the airport. There are no injuries among US Airways employees working at that hangar and all of these employees have been accounted for.[/FONT][BR][BR][FONT face=Times New Roman size=3]Flight 5481 was operating as a US Airways Express flight. [/FONT][FONT face=Times New Roman size=3]The entire US Airways family is deeply saddened by this tragic loss of life. Working in cooperation with Air Midwest, we are doing everything possible to help the families of the passengers and crew through this difficult time.[/FONT][BR][BR][FONT face=Times New Roman size=3]An Air Midwest special toll-free telephone number has been established to call for information about those on board Flight 5481. The number is 1-800-679-8215. [/FONT][FONT face=Times New Roman size=3]Air Midwest will provide information on an ongoing basis, as it becomes available. Updates will be posted for employees on theHub. Customers and media seeking updates should be directed to US Airways' Web site at usairways.com. Air Midwest, through its parent company Mesa Air Group, is handling media inquiries. The new contact number for media to call is 1-602-685-4175.[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][STRONG][BR]Doomed U.S. aircraft had unremarkable history[/STRONG][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR][BR]WASHINGTON (Reuters) - The US Airways Express plane that crashed in North Carolina on Wednesday, killing 21 people, had no serious in-flight incidents or noteworthy maintenance problems, according to government records.[BR][BR]Complete Story: [A target=_blank href=http://biz.yahoo.com/rc/030108/airlines_crash_plane_2.html][FONT color=#0000ff]http://biz.yahoo.com/rc/030108/airlines_crash_plane_2.html[/FONT][/A][BR][BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][STRONG]US Airways Tidbits[/STRONG][/FONT][/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]US Airways Shuttle[/STRONG][/FONT][/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]Chip comments:[/STRONG] Reports indicate the US Airways Marketing and Planning Department has been evaluating strategic changes to the US Airways Shuttle to make a more competitive product and improve profitability.[BR][/FONT][/FONT][FONT face=Times New Roman size=3][BR]The Company is still evaluating placing the B737 in this key market, but pilot training costs are expected to be significant and will likely kill this idea. It appears certain Shuttle A-320s will be re-configured for mainline/Caribbean service and current mainline A-319s will replace the Shuttle A-320s. In the near term, the Shuttle will likely operate 15 A-319s.[BR][/FONT][FONT face=Times New Roman size=3][BR]With Delta Air Lines reportedly transitioning from the B737-800 to the B737-300 in Shuttle markets, US Airways will have a better aircraft to serve these routes with all A-319s than its chief competitor's B737-300.[BR][/FONT][FONT face=Times New Roman size=3][BR]Meanwhile in my opinion, it would not surprise me to see mainline MDA EMB-170/175 aircraft fly the Shuttle markets during off peak times some time in 2004.[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]Union Votes[/STRONG][/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]Chip comments: [/STRONG]Reports indicate IAM mechanics leader Bill Freiberger told US Airways Los Angeles machinists that if their TA is not ratified, even though the company provided a S.1113 letter for the restructuring agreement, US Airways can still go to the bankruptcy judge and ask him to impose the modified restructuring agreements on any union that does not ratify their accord. The AFA nad CWA results should be announced Friday during the working day and the IAM result late Friday night, January 10. [/FONT][/FONT][BR][BR][SPAN class=t][FONT face=Times New Roman size=3][STRONG]JetBlue Airways Reports December Traffic[/STRONG][/FONT][/SPAN][BR][BR][SPAN class=t][FONT face=Times New Roman size=3]NEW YORK (Business Wire) - JetBlue Airways Corporation reported today that its traffic in December increased 87.3 percent from December 2001, on a capacity increase of 74.4 percent. [/FONT][FONT face=Times New Roman size=3]Load factor for December 2002 was 84.8 percent, 5.8 points above December 2001. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/bw/030108/82200_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/bw/030108/82200_1.html[/FONT][/A][/SPAN]
Very, very interesting tidbit about the Shuttle.[BR][BR]I had no idea that Delta had transitioned the Shuttle craft from 738s to 733s.[BR][BR]I wonder if the switch from A-320s to A-319s is more of an issue of the effects of both Acela and AA DCA-LGA-BOS service?