Aeroposte

Note to Readers

noreply@blogger.com (Airline7322) — Wed, 28 Jun 2006 23:33:00 -0400

Due to extended travel and work circumstances, the Aeroposte staff regrets that posts will be less frequent until late August.

KLM CEO Weighs in on Northwest/Delta Merger

noreply@blogger.com (Airline7322) — Wed, 14 Jun 2006 13:09:00 -0400

In a recent statement, Leo van Wijk, chief executive of KLM, told reporters that a merger between North American carriers Delta and Northwest was a “real possibility.” According to Wijk, a merger would benefit KLM, which is part of the Air France Group, as it would “"It would be easier to deal with one entity." The Air France Group, Delta, and Northwest are all part of the airline alliance known as Skyteam.

Leo van Wikj isn’t the only one predicting a Northwest and Delta merger. United States Transportation Secretary Norman Mineta has a similar belief. He conjectured at a recent meeting that a merger is a likely course of action in the “latest round of restructuring.” Aviation analysts, murmuring rumors about the consolidation of the two for some time, have been buoyed by Wijk’s and Mineta’s comments.

Proponents and opponents of the merger are sharply divided. Those in favor cite the route structure of the two carriers, which barely overlap and complement each other. Delta currently has hubs in Salt Lake City, Cincinnati, and Atlanta, while Northwest has large operations in Detroit, Minneapolis, and Memphis. Northwest is a leading American carrier on flights to Asia, an area where Delta hardly competes. Likewise, Delta is strong internationally in the European and African sectors.

Opponents paint a much darker picture, saying that the financial states, company cultures, and unions will make a union of the two airlines impossible. The management teams of both carriers have used Chapter 11 to force salary reductions and cut pension plans; some speculate that the frontline employees will be unwilling to concede anything more. There was evidence of such a sentiment at Northwest a few months ago, when their pilots threatened strike up until the eleventh hour, when the union finally conceded.

Due to industry-wide capacity reductions, airlines are enjoying the highest load factors since 9/11. Even with this boon, the question remains: will Delta and Northwest go it alone, or tie the knot in their quest for survival?

British LCC Ryanair Files Complaint with EU over Air France

noreply@blogger.com (Airline7322) — Thu, 11 May 2006 16:56:00 -0400

As British carrier Ryanair prepares to launch a new base in Marseille, France, the carrier has also taken steps to file a complaint with the European Union over an alleged $1.28 billion in government subsidies given to Air France. Specifically, Ryanair is accusing the French government of giving the flag carrier substantial tax breaks over the past few years. In retaliation, Air France responded that "Ryanair's complaints were primarily a publicity-seeking maneuver and pointed out it was the state that fixed taxes." Ryanair has come under fire recently for overworking its flight crew and possibly violating British aviation codes; however, many herald the entry of Ryanair into the French market as a major step towards lowering airfare prices in France. Traditionally, Air France has been to able to thwart the efforts of low-cost carriers from gaining any foothold in their nation by aggressively undercutting other carriers. In addition, the carrier leverages the benefits of their efficient hub and spoke operation, centered at modern Charles De Gualle International in Paris. Still Ryanair, with one of the lowest cost-structures in the world, poses a formidable challenge to Air France as it tries to wrestle away market share from one of the most profitable legacy carriers in the world.

Delta Works to Terminate Leases at Cincinnati and Los Angeles Airports

noreply@blogger.com (Airline7322) — Sun, 30 Apr 2006 11:28:00 -0400

On the heels of recent agreements with its pilot and flight attendant unions, Delta Airlines is now seeking to reject leases at Cincinnati/Northern Kentucky International Airport and at Los Angeles International Airport. Citing a desire to lower its real estate costs under bankruptcy protection, the carrier is working to void some of the leases at both airports. In Cincinnati, which is Delta's second largest hub, the carrier wants to release some of its gate space in Terminal 3 and Concourse B. In a written statement to the Associated Press (AP), Delta urged customers that their desire to be released from commitments to some of their real estate would not affect passengers directly. Delta is merely attributing these moves, which came after failed negotiations with the respective airport authorities, as a necessary component of their plan to shave three billion in total costs. Still, some aviation analysts are warning that the desire to reject leases at Cincinnati is the opening stage in a concerted effort to cut back the number of flights arriving at and departing from Delta's second largest hub. Within the past year, Delta Airlines has bolstered the number of flights it operates from New York City's JFK and Salt Lake City's SLC airport, while trimming back the number of flights originating from and arriving at Dallas Fort Worth Airport. With the collapse of low-cost subsidiary Song back into Delta mainline, the carrier's latest moves are the rationalization of a legacy carrier formally bloated by high wages and over-expansion.

Delta Pilots, Management Avert Strike

noreply@blogger.com (Airline7322) — Sat, 15 Apr 2006 10:05:00 -0400

Up until midday Friday, many analysts and Delta employees were convinced that Delta's pilots would go on strike over the Easter weekend. Such a strike would have the potential to bring the legacy carrier to its knees; however, late Friday afternoon a tentative agreement was forged between the pilot's union (ALPA) and Delta management. Representatives from both parties were tight-lipped about specific details, but the deal likely means that both sides made concessions, ultimately moving toward their goal of making Delta Airlines profitable again. The agreement still must be ratified by Delta's 5930 pilots. A few weeks prior to the tentative agreement, 95% of Delta's pilots voted to authorize a strike. Delta pilot Keith Rosenkranz, senior Delta pilot, summarized the rationale for Delta pilots to strike: "There does come a point when you have to stand up for your profession and the things that you negotiated in good faith, and if the company is not willing to recognize that then I'm not going to vote for something that continues to take." Bolstered by the favorable news, a Delta spokesperson encouraged passengers to "book with confidence." Still, Delta has to overcome a multitude of issues, like the restructuring of one of its regional affiliates, Comair, before it can eke out a profit. The road to profitability is long for Delta, and as Lee Moak, the chairman of the union's executive committee at Delta, said: "We will not hurry... but will proceed in an unrushed, methodical manner."

Continental Develops Plan to Deal with Venezuela-U.S Dispute

noreply@blogger.com (Airline7322) — Sat, 18 Mar 2006 11:00:00 -0500

In response to the Venezuelan government's threat to revoke the operating rights of U.S airlines as of March 30, Continental Airlines announced on Friday that they had drafted plans to accommodate passengers booked from April until the crisis was resolved. The carrier plans to allow all passengers to exchange tickets without penalties, in addition to issuing full refunds for those who plan to cancel their trips to Venezuela entirely. The dispute between Venezuela and the United States stems from a disagreement over aviation rights. In a bid to convince the U.S FAA to allow Venezuelan airlines to enter U.S airspace, which were banned a decade ago, the Venezuelan government has threatened to refuse entry to all American flights as of March 31st. Currently, Continental, which serves Venezuela from Houston, Texas, and Newark, New Jersey, is the only carrier that flies nonstop to the South American country of Venezuela. Although Continental has not altered its schedules in anticipation of a ban on American carriers, Americans can still gain admittance to Venezuela if they fly on carrier's of a different nationality, like Air France of France or Lufthansa of Germany.

Northwest Pilots Strike Tentative Deal

noreply@blogger.com (Airline7322) — Sun, 5 Mar 2006 13:18:00 -0500

Photo: Aeroposte Editor

Northwest Airlines and union officials representing pilots at the nation's fourth largest airline reached a tentative pay-cut deal late Friday night. Although few details of the agreement have been released, Northwest management reported that they successfully negotiated the $358 million in savings they sought at the onset of the arbitration process. Both sides most ratify the pact before the cost-savings can be implemented. The agreement defused the potential for a strike, which had been authorized by the Air Line Pilots Association (ALPA) if the bankruptcy court judge imposed these cuts without union consent. Mark McClain, the head of the Northwest branch of ALPA , characterized the agreement as "a painful but necessary part of a successful restructuring of Northwest Airlines." Following in the footsteps of embattled legacy carrier United Airlines, which recently emerged from Chapter 11 bankruptcy, Northwest has used its bankruptcy status as leverage against the traditionally strong unions representing airline employees. These pay-cuts are the second round of salary adjustments at Northwest, which slashed pilot pay 15% in 2003. According to Airline labor relations expert Daniel Petree of Embry-Riddle University, Northwest is hardly out of danger though: "If I were on either side of the bargaining table I wouldn't assume my work is done", he quipped in an Associated Press article.

Jetblue Shares Rise on News of Song Cutbacks

noreply@blogger.com (Airline7322) — Sat, 25 Feb 2006 14:54:00 -0500

Jetblue Airways shares rose six percent on the news that Delta Airlines plans to further cutback the number of flights between New York to Florida. Jetblue competes heavily with Delta low-fare subsidiary Song on these routes. Delta attributed the reduction in frequency of flights to "a seasonal pull down in capacity for May, which is one of the lowest demand periods to Florida." Some analysts belief the changes will be permanent, as Delta prepares to shutdown Song and fold its aircraft back into the mainline Delta fleet. Despite Delta's statement that the changes would only be temporary, brokerage JP Morgan upgraded Jetblue's rating from "underweight" to "neutral." In addition to the cuts in Florida, Delta plans to slightly reduce the number of flights to Los Angeles and Seattle. Delta spokesman John Kennedy said these changes were "partly due to the airline integrating Song into its network and adding first-class seats to its flights." Even so, with less competition on its bread and butter New York to Florida flights, Jetblue Airways expects the move to boost the carrier's financial fortunes.

International Coalition Investigates Cargo Price-Fixing

noreply@blogger.com (Airline7322) — Wed, 15 Feb 2006 21:05:00 -0500

Investigators acting on behalf of the American government and the European Union conducted a series of raids on more than twelve airlines yesterday. Although spokespersons for the European Commision and the US Department of Justice refused to provide details about the probe, reports of the investigation have emerged through formal press releases sent out by the targeted airlines. It is believed that the joint coalition is trying to determine whether "there has been collusion in the air cargo industry to fix prices on surcharges for fuel, security and insurance." The investigation has targeted the cargo divisions of several high-profile air carriers, including American Airlines and Air France. A host of other airlines are being investigated, including United Airlines, UPS, SAS Airlines, Atlas Air Worldwide Holding Inc.'s Polar Air Cargo unit, Japan Airlines Corp., Hong Kong's Cathay Pacific Airways Ltd., British Airways PLC, Germany's Lufthansa AG, Luxembourg's Cargolux Airlines and Lan Chile. Sources familiar with the investigation report that most airlines are closely cooperating with the authorities, although there are complaints that the investigating bodies have not fully disclosed their intent. Although currently there is little public information to support the claims of price-fixing and collusion, the discovery of illegal cooperation may serve to tarnish the reputations of some of the most respected airlines in the world. The bottom-line of these airlines may be affected as well, as harsh penalties will be dealt out to offending carriers who tried to further their profits in the burgeoning air cargo market.

Continental Readies for Newark Reopening

noreply@blogger.com (Airline7322) — Sun, 12 Feb 2006 19:44:00 -0500

In a press release issued late Sunday night, legacy carrier Continental Airlines announced that it plans to begin resuming operations at its East Coast hub, Newark Airport, on Monday. Buried under nearly two feet of snow, Continental was forced to shutdown its hub and strand thousands of passengers at the airport, which is located just outside of New York City. The storm that forced Continental Airlines to shutter its operations at Newark affected a large swathe of the East Coast, causing delays from Washington D.C to Boston. The effect of the storm was dampened by the actions of most airlines serving the Northeast region. Carriers took a proactive approach, waiving booking fees and canceling flights days in advance in preparation for the storm. Expect operations to gradually normalize over the next few days as planes are returned to their typical schedules.

Bombardier Shelves Next Generation C-Series Aircraft

noreply@blogger.com (Airline7322) — Tue, 31 Jan 2006 16:34:00 -0500

Canada's Bombardier Inc. announced today that it has stopped development of it's newest commercial aircraft, the C-Series. Attributing the canceling of the program to weak demand and poor market conditions, Bombardier's board voted to kill the $2.1 billion program. Backed by Canadian and British governments, Bombardier hoped to develop a long-range aircraft that could seat between 110 and 130 passengers. Pierre Beaudoin, president and chief operating officer of Bombardier Aerospace, said that the aerospace manufacturer would "now concurrently continue to explore the CSeries' potential as well as pursue opportunities in the regional aircraft market." Only Northwest Airlines, currently in Chapter 11 bankruptcy protection, had signaled interest; however, the carrier had no firm orders. Even so, within the last few years, Bombardier's Aerospace division has reached a crossroads. With many carriers parking their fifty-seat regional jets due to high fuel costs, the manufacturer can no longer reap profits from the once prosperous regional jet market. At the same time, Bombardier's main competitor, Embraer, has introduced a new family of regional jets, that seat between 70 and 110 passengers. Despite their recent introduction, these airplanes have earned high regard from both passengers and their operators. Without any direct competition in this market, Embraer is poised to profit tremendously from this rapidly burgeoning portion of the market. Ironically, Bombardier's saving grace may be their turboprop division. Often maligned as loud and slow, within the last few years Bombardier has developed a turboprop aircraft that rivals jets in speed and matches them in comfort. Dubbed the Q400, the aircraft seats upwards of seventy passengers and can fly over one thousand miles. Although currently in operation with only a few carriers, the Q400 is competitive with regional jets on legs of up to 500 miles in terms of time, and burns nearly half the fuel. In an era of high jet fuel costs, those cost savings are tremendous. A half decade ago, the fortunes of Bombardier and Embraer were reversed. Facing lagging sales in its turboprop market and fierce competition in the fifty-seat regional jet market, Embraer took a huge gamble and launched the Embraer 170 family with a clean slate design. Bombardier will undoubtedly try the same eventually, even though some touted the C-series as Bombardier's means to ascend to the top of the regional jet market. Today, though, Bombardier's management gave a vote of no confidence in the program, choosing to bide their time before firmly committing to a capital intensive endeavor.

Virgin America Moves Closer to Launch

noreply@blogger.com (Airline7322) — Fri, 20 Jan 2006 11:27:00 -0500

Media mogul and CEO of Virgin Atlantic Airways Richard Branson has moved one step closer to receiving Federal Aviation Administration (FAA) approval for the launch of his newest low-fare airline, Virgin America. Playing off of the success of popular transatlantic carrier Virgin Atlantic, Branson plans to launch an airline that will "unite Virgin's world renowned customer-focus... to create an airline that offers more- more options, more comfort, more entertainment." Due to federal regulations requiring those who hold a majority ownership to be US citizens, Branson will not be a full time member of the airline's board. Although the upstart airline has been quiet about the routes it plans to serve, it is believed that the airline will be based in the San Francisco area and will operate Airbus A320 aircraft. Some sources believe that Virgin America will be a near copy of Jetblue Airways, but with a chic British personality. Either way, the entry of Virgin America into the highly competitive US domestic market bodes badly for other carriers. Even with the recent shutdown of Washington D.C based Independence Air, another airlines entry into the market will erode the revenue of current players in the market. With some legacy carriers turning the corner financially in the past few months, Virgin America's entry will benefit the customer, but at the same time may force several more carriers into bankruptcy.
Additional Source: Virginamerica.com

Northwest Pilots Vote to Freeze Pensions

noreply@blogger.com (Airline7322) — Thu, 12 Jan 2006 16:38:00 -0500

Photo: Aeroposte Editor

Concerned with the tenuous financial condition of bankrupt legacy carrier Northwest Airlines, the airline's five thousand pilots overwhelmingly voted to approve a freeze of their pension plan today. Eighty-two percent of Northwest's pilots, represented by the Air Line Pilots Association (ALPA) backed an immediate freeze of the program. The latest agreement allows Northwest management to begin transitioning from the current pension plan to a more cost effective one, in which "pilots and the company will contribute a portion of their salary to a retirement account, with no promise for a fixed payout." Although the latest agreement is a positive step for the ailing carrier, further agreements must be forged between Northwest and the unions representing the airline's flight attendants and ground personnel. If an impasse remains by January 17, the carrier will ask the bankruptcy court to reject all unfavorable union contracts. In retaliation, the various unions have threatened to strike if their contracts are rejected by the bankruptcy court.

Independence Air to Cease Operations this Thursday

noreply@blogger.com (Airline7322) — Mon, 2 Jan 2006 14:26:00 -0500

Ferocious competition and high fuel-costs claimed another American airline today. Low-fare carrier Independence Air (Flyi), which operated as a regional feeder for United Airlines before abandoning the legacy carrier, published a press release outlining its shutdown in the coming weeks. All operations will cease by Friday, December 6, and all airline employees will be terminated Thursday evening. Customers with future flights after the shutdown may rebook with Independence Air free of charge if they plan to return before the airline shuts down. Otherwise, passengers are encouraged to look to other airlines, as congressional law requires other domestic carriers to accommodate stranded passengers. Although Independence Air's business plan was tragically flawed, for a span of a year and a half, the crafty carrier dramatically lowered ticket prices across the nation. In particular, those in the Washington D.C area benefited, as Flyi operated its central hub at Washington Dulles, in direct competition with legacy carrier United Airline's hub there as well. Passengers should be prepared for dramatic airfare hikes to all destinations Independence Air served, but in particular smaller regions like Burlington, Vermont or White Plains, New York.

Delta Posts One Billion Dollar Loss Since Bankruptcy

noreply@blogger.com (Airline7322) — Sun, 4 Dec 2005 11:17:00 -0500

Since declaring bankruptcy six weeks ago, major American legacy carrier Delta Airlines Inc. said that has lost $1.14 billion. Delta management attributed most of the costs to fuel, salary, and interest expenses. Due to bankruptcy proceedings, the carrier was forced to spend an additional $17 million on legal fees. Excluding reorganization costs, Delta lost $472 million in the past six weeks, although the carrier spent over $2.61 billion. Delta's losses are more than three times that of competitor Northwest Airlines, which filed for Chapter 11 bankruptcy on the same day as Delta. Nonetheless, both carriers are in equal peril of being forced to cease operations unless they undergo equally drastic restructuring. In Delta's quest to save $3 billion in overall costs, it plans to ask for $325 million in concessions from its pilots. The Air Line Pilots Association (ALPA), the union that represents Delta pilots, has countered that it will only except $90.7 million in wage concessions. If the two parties are unable to agree, ALPA has stated that it will instruct Delta pilots to strike. All in all, with the termination of Delta's in-house low-fare carrier Song, Delta is on the right path towards profitability. Unfortunately, it will take more than the redistribution of planes to right Delta's course.

Southwest Decides to Expand Operations in Philadelphia

noreply@blogger.com (Airline7322) — Mon, 28 Nov 2005 14:43:00 -0500

Encouraged by its success at US Airways hub Philadelphia International Airport, Southwest Airlines plans to double the number of scheduled flights in the coming months. Southwest is in the process of acquiring six more gates, bringing it to a total of twelve gates. The additional gates will be acquired from legacy carriers United and Delta Airlines, who are currently downsizing their domestic operations under fierce pressure from low-cost carriers such as Southwest and Jetblue. At its predicted peak, the low-fare carrier will operate 106 flights per day. US Airways presence will still be four times that of Southwest at Philadelphia, even after the two-fold increase in flights. Since Southwest entered the Philadelphia market, average one-way airfare has dropped twenty-six percent. Apparently unconcerned with the increasingly competitive environment, US Airways spokesman Philip Gee told "The Philadelphia Inquirer that the airline wasn't fazed by Southwest's expansion plans." He added that "America West Airlines, which acquired US Airways out of bankruptcy court, has competed for years with Southwest in Las Vegas and Phoenix, where both airlines have hubs."

Jetblue Pioneers Online Bag Check

noreply@blogger.com (Airline7322) — Wed, 23 Nov 2005 12:53:00 -0500

While airlines have been offering online check-in for passengers for nearly half a decade, cutomers with baggage still had to wait in the traditional lines to check their luggage. This week Jetblue Airways extended its online check-in policy beyond ticketing, allowing passengers to print baggage tags for their luggage and drop them off at a specialized Jetblue counters. While passengers cannot actually print the bag tags applied to their luggage away from the airport, they are issued a specific code, which when entered into a self-service kiosk, prints the tags. A Jetblue crewmember assigned to the area then applies the tags. The implementation of online bag check is the natural extension of online check-in, as it allows a passenger to take care of their ticketing and luggage needs before arriving at the airport. At Jetblue's hub, John F. Kennedy International, the airline has devised a separate area for passengers to leave their checked bags. At all other Jetblue destinations the airline advises passengers to leave their checked luggage with a Jetblue customer service representative near the self-service kiosks. Other airlines are expected to follow Jetblue's suit, as this new service makes check-in less chaotic for passengers and provides practical advantages for carriers.

Boeing Elects to Launch Larger 747 Variant

noreply@blogger.com (Airline7322) — Tue, 15 Nov 2005 16:45:00 -0500

Capping months of speculation in the aviation industry over whether Boeing would update its venerable 747, the aircraft manufacturer announced today that it would indeed launch an updated 747. Although the program was given the 747 Advanced moniker while Boeing was debating whether to launch the program, the new version of the aircraft will be called the 747-800, to demonstrate the technology and expertise borrowed from the revolutionary 787, a completely new Boeing aircraft currently in development. According to Boeing chairman Allan Mullaly, "The 747-8 will use the technologies of the 787 Dreamliner to significantly increase the passenger and freighter capabilities of the 747, and offer greater fuel efficiency, improved operating economics, and be more friendly to the environment with reduced noise and emissions." While the 747-800 is a stretched version of the current 747-400, it is not meant to compete directly with the largest commercial jet in the world, the Airbus A380. The 747-800 fits in a niche between the 747-400 and Airbus A380. The 747-800, which is significantly more efficient than the 747-400 and in some cases the Airbus A380, derives most of its efficiency from an updated wing, a greater use of composites to reduce weight, and more fuel-efficient GeNX engines. As of launch, Boeing has confirmed that it has orders from Cargolux and Nippon Airlines valued at $5 billion. Both carriers only ordered the cargo version of the aircraft, but orders for the passenger version are expected shortly.

Independence Air Elects to File for Chapter Eleven Bankruptcy

noreply@blogger.com (Airline7322) — Mon, 7 Nov 2005 16:54:00 -0500

Hurt by a poor business plan, high jet-fuel prices, and inept management, low-fare carrier Independence Air (Flyi) agreed to file for voluntary Chapter 11 bankruptcy today. Launched one year ago under the premise that the former contract carrier could provide low-fares with high frequency flights to a variety of East coast locations, the airline has consisently lost money since it declared "independence" from United Airlines. Although Independence Air was the best financed airline startup in US history, it went from having $350 million one year ago to $24 million as of Monday, November 7. Flyi CEO Kerry Skeen attributed the bankruptcy filing to "going independent in what has been described as the most challenging economic environment in airline industry history, including record high fuel prices and extreme revenue weakness." He added that "these circumstances have prevented us and virtually all U.S. airlines from meeting financial goals." On the positive side, he professed his belief that the carrier would be saved because it had a "good, loyal fan base" in the Washington D.C area.
Independence Air, which is based at Washington Dulles International in the Washington D.C metropolitan area, won accolades for its inflight service; however, it's excellent service could not save it from its disastrous financial condition. The carrier never seemed to have a clear direction; first it expanded to western cities with efficient Airbus A319 aircraft, then Independence Air retracted from these cities despite high loads, citing high fuel costs. The root of the carrier's demise was its reliance on fifty-seat regional jet aircraft. These aircraft, which have inherently higher costs per passenger than larger jets, are rapidly being pulled from service by airlines worldwide due to high fuel costs. Coupled with unprecendented low-fares, the load-factors Independence Air had to achieve to turn a profit were nearly impossible in the current climate of the American airline industry.
Rick Delisi, Flyi spokesman, said that the airline would operate on a typical Monday schedule and that he did not expect any immediate disruptions. While in bankruptcy, the carrier plans to renegotiate aircraft lease rates, restructure its costs, and trigger a sixty-day court-supervised auction. Essentially, the carrier has put itself up for sale; if there are no serious offers before mid January 2006, the carrier likely will be forced to liquidate. Flyi's assets aren't of much value to other carriers, as most of its aircraft and gate space are leased. Although not officially confirmed by Independence Air management, there is a rumor circulating that Virgin Atlantic CEO Richard Branson may purchase the assets and flight certificate of Independence Air to speed the launch of his proposed low-fare airline, Virgin America.

Continental's Fortunes Turn

noreply@blogger.com (Airline7322) — Sat, 5 Nov 2005 11:19:00 -0500

On the heels of past profitable quarters, Continental Airlines CEO Lawrence W. Kellner said that the carrier lost $115 million in October alone. In a recorded phone message to employees, Kellner said that the fourth quarter loss could widen, but that he hoped "that a recent pullback in fuel prices would mean losses in November and December losses wouldn't be as large." The carrier had previously warned that a fourth quarter loss would very possible; however, this statement was the first time Continental management gave a quantifiable figure. Currently the number five U.S carrier, Continental's fourth quarter performance likely will be disappointing because of exceedingly high fuel costs induced by the series of hurricanes in the Gulf region of the United States. According to analysts, other airlines are likely to post similarly dismal earnings reports. Even low-fare upstart Jetblue Airways, which has been profitable since its creation in 2000, predicts a fourth quarter loss.

Continental Contributes Additional Money to Pension Plans

noreply@blogger.com (Airline7322) — Sat, 15 Oct 2005 12:47:00 -0400

As major US carrier Delta Airlines warned that it would default on pension payments to its retirees without a congressional bailout, the Atlanta-based airline's fierce rival Continental Airlines announced that it would contribute an additional $84 million to its employees pension plans on Tuesday. In a statement found in a Continental press release dated October 10, Larry Kellner, Continental's chairman and chief executive officer wrote that "Continental's recent $84 million pension contribution demonstrates that we are working hard to fulfill our obligations and keep our promises to employees." Despite an industry-wide downturn that began following September 11, 2001, Continental has contributed over $800 million to its pension plan program. The one-time $84 million contribution brings Continental to the $304 million minimum set for the 2005 plan. As Northwest Airlines and Delta management are working to stem an exorbitant negative cash flow, Continental is looking towards the future with a firm order for ten of Boeing's revolutionary 787 aircraft.

New York Stock Exchange to Delist Delta Airlines

noreply@blogger.com (Airline7322) — Mon, 10 Oct 2005 12:44:00 -0400

Photo: Aeroposte Editor

The New York Stock Exchange (NYSE) has submitted a formal request to the Security & Exchanges Commission for the delisting of Delta Airline's stock from their stock exchange. Pending approval, NYSE intends to delist Delta's stock by October 13. Delta received notification on October 4, as the "average closing price of its common stock fell below the continued listing minimum share price standard of $1 over a consecutive 30-trading-day period." The legacy carrier responded that it would not seek to rectify this problem and would not fight the delisting. The removal of Delta from the New York Stock Exchange is indicative of the airline's current state and it's need to restructure into a leaner enterprise. Rival United Airlines faced bankruptcy twice over the past four years, yet sources close to the matter report that that carrier will emerge from bankruptcy protection within the next few months. Delta likely will follow the same steps of its rival by drastically cutting salaries, inefficient aircraft in operation, and destination served.

Horizon Air Reaches Agreement with Mechanics

noreply@blogger.com (Airline7322) — Mon, 10 Oct 2005 12:36:00 -0400

Horizon Air, the regional subsidiary of Seattle based Alaska Air Group, announced Friday evening that it had signed a tentative agreement with its mechanics. The contract will last for three years and cover over four- hundred mechanics and fleet service agents. Futher details are unavailable at present, as terms are being withheld pending the ratification of the agreement by the mechanics union, the Aircraft Mechanics Fraternal Association. This new agreement is one of the steps parent company Alaska Air Group, the owner of Alaska Airlines and Horizon Air, is taking to lower costs and increase profitablity.

Continental Airlines Reinstates Houston Service

noreply@blogger.com (Airline7322) — Sun, 25 Sep 2005 16:50:00 -0400

Continental Airlines is rapidly reopening its hub at Houston Bush Intercontinental Airport (IAH) following its recent shuttering due to hurricane Rita. The legacy carrier plans to operate 249 of its 274 regularly scheduled departures on Sunday, with all flights departing on Monday. Continental was able to resume operations at IAH because Hurricane Rita came ashore earlier than expected and largely spared the city of Houston. Chairman and CEO Larry Kellner thanked his employees, saying that the airline's "ability to achieve this successful resumption of service was made possible by careful planning and execution by co-workers working together throughout the company." To prepare for the buildup of service, Continental ferried in 14 empty planes full of Continental employees and TSA screeners. Continental Airlines is allowing all passengers affected by hurricane Rita to reticket without penalty, through October 3.

Jetblue Flight 292 Successfully Completes an Emergency Landing at LAX

noreply@blogger.com (Airline7322) — Wed, 21 Sep 2005 21:41:00 -0400

Moments ago, a Jetblue Airways Airbus A320 completed an emergency landing at Los Angeles International Airport. The flight crew of Jetblue flight 292, initially inbound to John F. Kennedy International in New York, noticed a malfunction with the aircraft's landing gear shortly after takeoff. Inflight instrumentation indicated that the nosegear at the front of the aircraft never fully retracted; after a flyby of the control tower at Burbank Airport, the aircraft's point of departure, photographs indicated that the front gear was fully rotated towards the left and locked in position. Subsequent attempts to correct the malfunction proved unsuccessful, so the captain declared an emergency. The Jetblue aircraft took off from Burbank, California, just outside of Los Angeles, at 3:17 pm PST. The flightcrew and passengers aboard the aircraft were forced to endure over two hours of circling over the Pacific ocean though, as the Airbus A320 was forced to burn off most of its fuel before landing. Emergency officials and the crew of Jetblue flight 292 elected to land at Los Angeles Airport (LAX) instead of Burbank, as LAX had longer runways and more emergency equipment available. The crew of the Jetblue flight performed a perfect soft-landing: a technique in which the pilot tries to keep the nosegear off the runway as long as possible. Once the front nosegear touched the runway, sparks and fire showered the underbelly of the aircraft. Finally, with 95% of the runway used, Jetblue flight 292's captain guided the aircraft to a stop, with only the nosegear appearing to have endured significant damage. Throughout the landing, the aircraft remained perfectly inline with the center-line, an indication of the proficiency of the flightcrew of Jetblue flight 292.