Industry News
Industry News
Industry news is more important to career development and the job search than many aspiring career pilots realize. What new regulations that could affect your career lurk just over the horizon? A proposal is pending, for example, that could eliminate the longstanding FAA regulation that required airline pilots to leave the cockpit when they turn 60.
Which airline is thinking about buying another carrier? That could affect you directly if you work for the acquired carrier. Who is ordering new airplanes? If new aircraft are an addition to the carrier’s existing fleet, it will have to hire more pilots to fly them. How is the industry—and individual airlines—doing financially? While a company’s financial situation can change over time, you should know how an airline stands when you apply.
Court upholds Delta, ALPA challenge to loan guarantees
The Washington, D.C., Circuit Court of Appeals on June 18 upheld a challenge by Delta Air Lines and the Air Line Pilots Association to Export-Import Bank loan guarantees for 30 long-range, widebody aircraft sold to Air India. “Delta and ALPA had argued that the subsidies would have harmful effects on U.S. airlines and their employees,” Delta said. “The federal appeals court held that, before issuing its loan guarantees to Air India, the bank was required by its governing statute to consider the effects that the loan guarantees would have on U.S. industries and U.S. jobs.” The bank failed to explain its exclusion of aircraft transactions from economic impact review, according to the court, which also rejected the bank's attempt to suggest that it was immune from judicial review. Delta and ALPA have raised concerns over the past several years about the impact of the bank's lending, which they said puts U.S. airline jobs at risk by subsidizing foreign carriers that compete directly with U.S. airlines on key international routes.
[POSTED JUNE 18, 2013]
SkyWest orders 100 Embraer E-Jets E2 as launch customer
Embraer S.A. and SkyWest Inc. signed a firm order for 100 E175-E2 aircraft, the companies announced June 17 at the Paris Air Show. The agreement includes purchase rights for another 100 aircraft; if all the orders are exercised, the contract has an estimated value, at list prices, of $9.36 billion. This announcement is in addition to SkyWest's May 2013 order for up to 200 current generation E175 aircraft, and makes SkyWest the launch customer for the E175-E2. "To have the world's largest regional airline placing this E-Jets E2 order shows SkyWest's confidence in Embraer and its products,” said Paulo Cesar Silva, president and CEO of Embraer Commercial Aviation. The first delivery of an E-Jets E2, the E190-E2, is planned for 2018; SkyWest will receive the first E175-E2 in 2020. SkyWest, of St. George, Utah, is the parent company of SkyWest Airlines and ExpressJet Airlines.
[POSTED JUNE 18, 2013]
United becomes 787-10 North American launch customer
United Airlines increased its 787 Dreamliner order to 65 aircraft, including six previously delivered aircraft, June 18 with an order for 20 787-10s. United is the North American launch customer for the 787-10 and it expects delivery of its first aircraft in 2018. United ordered 10 incremental 787-10 aircraft and will convert 10 existing 787s on order to 787-10s, enabling the airline to further modernize its international widebody fleet by replacing older, less efficient aircraft. United had previous orders for an additional 49 Dreamliners consisting of both the -8 and -9 variants; the 787-10 is a stretched version of the 787-9.
[POSTED JUNE 18, 2013]
Horizon to add more Q400 turboprops
Bombardier Aerospace announced June 18 that Seattle-based Horizon Air has signed a firm contract to acquire three 76-seat Bombardier Q400 NextGen turboprop airliners, converting previously booked options on the aircraft. The airline also reconfirmed its options on another seven Q400 NextGen aircraft. Based on the list price of the Q400 NextGen aircraft, the contract is valued at approximately $98 million. The three new aircraft increase Horizon Air's orders for Q400 and Q400 NextGen airliners to 51 aircraft. "The addition of these three Q400 NextGen aircraft will allow us to venture into the state of Alaska, which is considered America's last frontier, and is now an exciting new frontier for Horizon," said Glenn Johnson, Horizon Air president.
[POSTED JUNE 18, 2013]
Horizon, flight attendants agree on 5-year contract
Horizon Air and the Association of Flight Attendants (AFA) announced June 13 that they have reached tentative agreement on a new five-year contract for the carrier's nearly 500 flight attendants. The proposed contract—which includes pay raises, quality of life improvements, and more flexible scheduling—must be reviewed and ratified by union members, which is expected to be completed in mid-July. The current contract was ratified on Dec. 21, 2009 and became amendable on Dec. 21, 2011. Horizon Air is a subsidiary of Alaska Air Group that flies to 39 cities across the United States, Canada, and Mexico.
[POSTED JUNE 18, 2013]
Leadership team announced for new American Airlines
AMR Corporation—the parent company of American Airlines, Inc., and US Airways Group, Inc.—announced June 10 the senior leadership team that will be responsible for guiding the new American Airlines after the closing of the companies' expected merger. "This announcement is another important step forward in creating the new American Airlines and opening a new chapter for its more than 100,000 team members," said Doug Parker, chairman and CEO of US Airways. "We are combining the strengths of legacy American and US Airways and creating a collaborative, industry-leading leadership team." As previously announced, American Chairman, President, and CEO Tom Horton will serve as chairman of the new American Airlines. Parker will serve as CEO and a board member. Joining the new American’s senior leadership team from US Airways will be Scott Kirby, president; Elise Eberwein, executive vice president, People and Communications; Robert Isom, COO; Stephen Johnson, executive vice president, Corporate Affairs; and Derek Kerr, chief financial officer. Joining the team from American Airlines are Beverly Goulet, chief integration officer; Maya Leibman, chief information officer; and William Ris, senior vice president, Government Affairs.
[POSTED JUNE 11, 2013]
Southwest pilots seek Senate support for FFDO
The Southwest Airlines Pilots Association (SWAPA) on June 6 applauded the House of Representatives’ passage of an amendment to restore Federal Flight Deck Officer (FFDO) program funding and called on the U.S. Senate to follow suit. The amendment, authored by Reps. Richard Hudson (R-N.C.), Peter DeFazio (D-Ore.), and John Mica (R-Fla.), passed by voice vote during floor consideration of Fiscal Year 2014 Homeland Security appropriations. "The FFDO program is one of the best federal programs to protect passengers, pilots, flight crews, and also the general public from acts of terrorism," said Capt. Mark Richardson, SWAPA president. Created in response to the attacks on Sept. 11, 2001, the FFDO program trains qualified pilots in the use of force, defensive tactics, and other survival procedures. Federal Flight Deck Officers are sworn and deputized federal law enforcement officers. The president had proposed elimination of FFDO funding in his Fiscal Year 2014 budget proposal; action is now required in the Senate.
[POSTED JUNE 11, 2013]
Alaska, pilots tentatively agree to 5-year contract
Alaska Airlines and the Air Line Pilots Association, International announced June 6 that they have reached tentative agreement on a new five-year contract for the carrier's 1,480 pilots. "I want to thank and congratulate the negotiators for Alaska and ALPA for reaching tentative agreement on a long-term contract, which is unusual in our industry," said Gary Beck, Alaska Airlines' vice president of flight operations. The proposed contract includes pay raises, and quality of life and productivity improvements. Union leadership unanimously recommended that pilots ratify the agreement; a vote is expected to be completed in mid-July. The current contract was ratified in May 2009 and became amendable on April 1.
[POSTED JUNE 11, 2013]
United begins Denver-Tokyo Dreamliner flights
United Airlines relaunched Boeing 787 Dreamliner international service on June 10, with the inaugural flight from the airline's hub in Denver to Tokyo-Narita International Airport. The daily flight marks Denver's first nonstop connection to Asia. Flight 139 departs Denver daily at 12:35 p.m. and arrives at Tokyo-Narita International Airport at 3:30 p.m. the next day. For the return, Flight 138 departs Tokyo at 5:25 p.m. and arrives in Denver at 1:15 p.m. the same day. (All times are local.) United is using Dreamliners configured with 219 seats in three classes.
[POSTED JUNE 11, 2013]
FedEx shedding thirsty jets
With the economy not growing as quickly as forecast, FedEx Corp.—which is undergoing a $1.7 billion restructuring—will accelerate plans to retire 86 older, inefficient aircraft, Bloomberg reported June 4. The carrier is retiring five Airbus A310s and five McDonnell Douglas MD-10s immediately, and will accelerate the scheduled retirements of 60 MD-10s and 16 A310s. FedEx has ordered 70 new Boeing 777 and 767 jets, and said in March it would buy 14 used 757s from United Continental Holdings—a number that could increase.
[POSTED June 4, 2013]
AMFA blocked from American mechanics’ representation election
On the heels of what the Aircraft Mechanics Fraternal Association (AMFA) called a surprise representation filing for American Airlines mechanics and related workers by the Teamsters on May 28, the National Mediation Board rebuffed American Airlines mechanics’ efforts to place AMFA on the ballot. Although AMFA said it filed the necessary documents electronically with the NMB on Tuesday afternoon and delivered original documents Wednesday, NMB officials applied a technical rule effectively removing the right of any union to obtain intervenor status in the representation election. The board then denied mechanics the right to submit their authorization cards in favor of AMFA's intervenor status, said AMFA, a craft-oriented, independent aviation union.
[POSTED June 4, 2013]
First Boeing 787-9 Dreamliner begins final assembly
Boeing began final assembly of the first 787-9 Dreamliner on schedule May 30 in Everett, Wash., when it started joining large sections of the efficient new jet. Partners delivered the first 787-9 sections to final assembly on or ahead of schedule, said Boeing, which will build the first three 787-9s on its temporary surge line in Everett to allow for smoother integration of the variant into production while continuing to ramp up 787 manufacturing. The 787-9 is 20 feet longer and will carry 40 more passengers an additional 300 nautical miles. First flight of the 787-9 is scheduled later this year, with first delivery to launch customer Air New Zealand set for early 2014. Twenty customers have ordered 355 787-9s, accounting for 40 percent of all 787 orders.
[POSTED June 4, 2013]
American mechanics seek Teamsters representation
American Airlines mechanics and related workers filed for an election with the National Mediation Board on May 28 as part of a months-long effort to become Teamsters. The petition comes on the heels of a similar move by US Airways mechanics, also seeking Teamster representation, who filed May 7 for an election. American’s more than 11,000 mechanics and related workers launched a campaign last June to obtain representation by the Teamsters Airline Division and the Teamsters Aviation Mechanics Coalition (TAMC). The carrier has been in bankruptcy since 2011, resulting in the downsizing of aircraft maintenance stations and furloughs of mechanics. Meanwhile, a bankruptcy judge recently approved American’s proposed merger with US Airways, which it said will create the world's largest airline.
[POSTED May 28, 2013]
JetBlue begins Philly service
JetBlue Airways began service to its 78th city, Philadelphia, as of May 23. The carrier is serving Philadelphia International Airport with five daily nonstops from Boston's Logan International Airport. The carrier is serving the route with 100-seat Embraer E190 aircraft. JetBlue operates more than 100 daily flights from its Boston hub; Philadelphia becomes the 48th destination served from Logan International.
[POSTED May 28, 2013]
SkyWest, Inc. getting up to 200 Embraer E175 regional jets
SkyWest, Inc. announced May 21 that it will purchase 100 new Embraer E175 dual-class regional jet aircraft. Forty are firm orders and the remaining 60 aircraft are considered conditional until SkyWest enters into capacity purchase agreements with other major airlines to operate them. Deliveries for the 40 firm aircraft, configured with 76 seats, are expected to begin in the second quarter of 2014 and continue through mid-2015. The agreement, which also includes options for an additional 100 E175 aircraft, is valued at $8.3 billion if all 200 aircraft are ordered. United Airlines on May 21 announced a capacity purchase agreement with Sky West subsidiary SkyWest Airlines, Inc., to operate 40 jets under the United Express brand. The SkyWest aircraft are in addition to 30 Embraer 175 aircraft that United previously announced it will purchase for operation by a United Express carrier.
[POSTED May 21, 2013]
Southwest to launch Boeing 737 MAX 7
Boeing and Southwest Airlines announced the launch of the 737 MAX 7, the third member of Boeing’s 737 MAX family, May 15. The Dallas-based carrier converted 30 existing Next-Generation 737 orders into orders for the 737 MAX 7. Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest's ongoing effort to improve fuel efficiency and profitability. Southwest is expected to take its first 737 MAX 7 delivery in 2019. Including these aircraft, Southwest's unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. There are now 1,315 orders for 737 MAX airplanes.
[POSTED May 21, 2013]
United returns 787 Dreamliner to flight
United Airlines returned the Boeing 787 to service May 20 with the relaunch of commercial service from the airline's hub in Houston. United Flight 1, which departed Houston Intercontinental at 11 a.m. for Chicago O'Hare, marked the return to regular service of the advanced, fuel-efficient aircraft. United will operate additional Dreamliner flights between Houston and other domestic hubs this week, and will launch international 787 service June 10 on the Denver-Tokyo route. The airline expects to take delivery of two more Dreamliners in the second half of 2013.
[POSTED May 21, 2013]
Delta announces dividends, stock buy-back
In a broad financial plan released May 8, Delta Air Lines announced plans intended to create up to $5 billion of value for shareholders, including returning more than $1 billion to shareholders over the next three years. Delta's board initiated a quarterly dividend and declared a $0.06 per share dividend for shareholders of record as of Aug. 9, 2013. The board also authorized a $500 million share repurchase program, to be completed no later than June 30, 2016. "Delta's financial performance and balance sheet have strengthened considerably over the past five years," said Daniel Carp, Delta chairman. "The board's shareholder return program makes a long-term commitment to our shareholders with the implementation of an ongoing quarterly dividend, while also providing flexibility to return additional cash to shareholders through the share repurchase program."
[POSTED May 14, 2013]
US Airways mechanics seek Teamsters representation
US Airways mechanics and related workers on May 7 filed for an election with the National Mediation Board as part of their campaign to become Teamsters. "We have seen what the Teamsters have achieved at other airlines, including United and Continental," Ted Vallandingham, an inspector at US Airways in Pittsburgh and 29-year employee, said at a press conference. "We want a strong union backing us up so that we have a strong voice at work, at the bargaining table, and when we have to face off with management." The company’s more than 4,000 mechanics and related workers launched a campaign to seek Teamsters representation in October 2012. The union said it also plans to file soon to represent mechanics at American Airlines; the two carriers are undergoing a merger.
[POSTED May 14, 2013]
Boeing rolls out first Dreamliner at increased rate
Boeing last week rolled out of the factory the first 787 Dreamliner to be built at the increased production rate of seven airplanes per month. The airplane was the 114th 787 to be built overall and the 100th 787 built at the Everett, Wash., factory. Boeing said the 787 program, which appears to be recovering from a setback caused by a problem with onboard rechargeable batteries, is on track to achieve a planned 10-per-month production rate by year-end. To date, 50 787s have been delivered to eight airlines; the program has more than 800 orders from 58 customers worldwide.
[POSTED May 14, 2013]
Alaska Airlines flight attendants seek mediation
Alaska Airlines flight attendants, represented by the Association of Flight Attendants-CWA, filed for mediation with the National Mediation Board on May 1, the one-year anniversary of their contract’s amendable date. "For the last three contracts, flight attendants responded to management's plea to keep costs low while the airline created a winning strategy," said Jeffrey Peterson, AFA president at Alaska Airlines. "We partnered with them in good faith. As a result, we have fallen far behind our airline peers in compensation in most pay steps and pay rules. Now…Alaska Airlines is hugely profitable. It is time for the over 3,100 Alaska Airlines flight attendants to participate in that success and be adequately compensated.” Negotiations have been ongoing since November 2011. The union said talks stalled over compensation as the parties were exchanging comprehensive proposals. Under NMB guidelines, either party may request mediation.
[POSTED May 7, 2013]
Alaska Airlines flight attendants seek mediation
Alaska Airlines flight attendants, represented by the Association of Flight Attendants-CWA, filed for mediation with the National Mediation Board on May 1, the one-year anniversary of their contract’s amendable date. "For the last three contracts, flight attendants responded to management's plea to keep costs low while the airline created a winning strategy," said Jeffrey Peterson, AFA president at Alaska Airlines. "We partnered with them in good faith. As a result, we have fallen far behind our airline peers in compensation in most pay steps and pay rules. Now…Alaska Airlines is hugely profitable. It is time for the over 3,100 Alaska Airlines flight attendants to participate in that success and be adequately compensated.” Negotiations have been ongoing since November 2011. The union said talks stalled over compensation as the parties were exchanging comprehensive proposals. Under NMB guidelines, either party may request mediation.
[POSTED May 7, 2013]
Compass flight attendants ratify first contract
Six years after Compass Airlines began commercial operations, its flight attendants—represented by the Association of Flight Attendants-CWA—ratified their first contract May 1. An overwhelming 99 percent of those participating voted in favor of the five-year agreement, reached with the assistance of the National Mediation Board. The AFA negotiating committee said the agreement, which provides immediate economic improvements as well as enhanced job security, was possible because of strong support from the carrier’s nearly 450 flight attendants. The union said the contract provides double-digit pay increases, a signing bonus, an increased 401(k) match, schedule flexibility, and a grievance procedure, among other improvements. Minneapolis-based Compass, a Delta Connection carrier, operates about 190 daily flights to more than 50 destinations.
[POSTED May 7, 2013]
Boeing board OKs stretched 777
Shortly after receiving the green light for its new 787 Dreamliner to return to service—pending required modifications to the primarily composite aircraft’s battery system—Boeing’s board of directors has given approval to offer a stretched 777X twinjet to customers. Boeing said it is “taking the next step by engaging in the marketplace, discussing more details and offering the airplane to customers—conditional on final approval to launch the program,” Aviation Week Intelligence Network reported May 1. Although the announcement falls short of the “authority to offer” language traditionally used by the company, Aviation Week said the approval is thought to be the equivalent of the traditional ATO milestone. A 353-seat 777-8LX will replace today’s 777-300ER while a larger, 406-seat 777-9X is anticipated to launch first.
[POSTED May 7, 2013]
Flight delays end along with controller furloughs
The U.S. House of Representatives passed legislation Friday, April 26, that provides the Department of Transportation with options in how it achieves budget cuts required by the federal government’s sequester and the FAA said regular air traffic controller staffing levels would be restored after a week of flight delays, The Wall Street Journal reported April 28. The Senate passed the measure Thursday. The FAA had required employees to take an unpaid day off every two weeks beginning April 21 to comply with required across-the-board budget cuts, a move that effectively reduced the air traffic control workforce by 10 percent—resulting in thousands of flight delays and hundreds of cancellations. The delays prompted trade organizations Airlines for America and the Regional Airline Association to petition the Department of Transportation for relief from a rule that prohibits loaded aircraft from staying on the ground more than three hours without allowing passengers to deplane. The moratorium on enforcement of the rule was sought “for at least 90 days or until the FAA furloughs end,” Business Insider reported April 23. President Obama is expected to sign the legislation Tuesday.
[POSTED April 30, 2013]
FedEx retains Post Office business
The U.S. Postal Service has awarded a seven-year, $10.5 billion contract for transporting mail between U.S. airports to FedEx Express, snubbing a bid from competitor United Parcel Service. “The new contract allows the Postal Service to continue a successful business relationship with FedEx,” the Postal Service said in a statement. The new agreement, for flying Express Mail and Priority Mail, begins when the current contract expires in October, FedEx said. The agreement eliminates concern FedEx could lose some business to UPS, Bloomberg reported April 24. Most of the mail volume is processed during the day, after FedEx’s premium overnight packages have been cleared, it said.
[POSTED April 30, 2013]
United Express to add 76-seat regional jets
United Airlines announced April 29 that it will add 30 Embraer 175 regional jets to the United Express fleet. Under an agreement with Embraer, United will purchase the aircraft with deliveries in 2014 and 2015; they will be operated by a United Express partner to be announced later. As the Embraer 175—the first 76-seat regional jet aircraft in the United Express fleet—enters service, the airline said it would remove some older, 50-seat regional jets from the fleet. "Compared to the 50-seat aircraft we are replacing, these aircraft provide a superior customer experience and are more fuel efficient," said Jim Compton, United's vice chairman and chief revenue officer. The new jets will consume 10 percent less fuel per seat than the 50-seat aircraft they replace.
[POSTED April 30, 2013]
Pilots oppose plan to cut flight deck officer program
The Southwest Airlines Pilots' Association (SWAPA) called on Congress April 17 to oppose efforts to eliminate funding for the Federal Flight Deck Officer program. President Obama's fiscal year 2014 budget called for the elimination of federal funding of the volunteer initiative. "While it is unlikely that the President's budget will be adopted as written, any attempts to defund an effective, cost-efficient program should be flatly rejected by Congress," said Mark Richardson, SWAPA president. The FFDO program trains qualified pilots in the use of firearms, use of force, defensive tactics and other survival procedures. Federal Flight Deck Officers are sworn and deputized federal law enforcement officers commissioned by the Department of Homeland Security/TSA Law Enforcement Division. SWAPA is the union that represents Southwest’s more than 6,400 pilots.
[POSTED April 23, 2013]
Flight attendants pleased by delay in knife rule
The Transportation Security Administration on April 22 postponed its plan to allow knives in the cabin of U.S. airline flights starting April 25. Knives have been banned from commercial flights in the United States since the September 11, 2001, terrorist attacks. The 90,000-member Flight Attendants Union Coalition said that if TSA wants to explore a change to this rule, it must follow the rulemaking requirements. The coalition said it is working with members of Congress on legislation to permanently keep knives off planes.
[POSTED April 23, 2013]
Pinnacle to become Delta subsidiary
Pinnacle Airlines expects to exit bankruptcy protection by May 1, and when it does, it will become a subsidiary of Delta Air Lines, Fox Business reported April 17. There were times during the bankruptcy when Pinnacle probably would have folded without loans from Delta, its only substantial creditor and customer, said Judge Robert E. Gerber of the U.S. Bankruptcy Court in Manhattan. During its bankruptcy, Pinnacle negotiated new contracts with its three largest unions, and focused on reducing its operating costs. Under its new contract with Delta, Pinnacle will nearly double the number of larger regional jets it flies for Delta to 81, and phase out its fleet of smaller, 50-seat jets. Pinnacle also will cut the number of routes it flies for Delta, focusing only on more-profitable ones. Although Pinnacle, which employs more than 5,000 people, is based in Memphis, it plans to move its headquarters to Minneapolis.
[POSTED April 23, 2013]
American to add flights at Los Angeles hub
American Airlines said April 10 that it will significantly expand service from Los Angeles International Airport this year, further strengthening one of its key hubs. In addition to American's new service between Los Angeles and Raleigh/Durham, N.C., which began April 2, American will begin serving Eugene and Redmond, Ore., from LAX beginning June 12. Service from Los Angeles to Bentonville, Ark.; Columbus, Ohio; Hartford, Conn.; Indianapolis; and Pittsburgh will begin Aug. 27. Flights on some of the new routes will be operated by SkyWest Airlines and American Eagle Airlines.
[POSTED April 16, 2013]
Southern Air exits bankruptcy
Southern Air Holdings, Inc. announced April 15 that it has completed its financial restructuring and emerged from Chapter 11 bankruptcy. “We have emerged from this restructuring process with substantially less debt, significantly improved operations and resources, and financial flexibility as a well-capitalized global air cargo carrier,” said Daniel J. McHugh, Southern Air CEO. The company, which moved its headquarters to the Cincinnati/Northern Kentucky International Airport, operates four Boeing 777 Freighter aircraft for global express delivery provider DHL, as well as 747-400F aircraft. Southern Air, founded in 1947, entered Chapter 11 bankruptcy protection Sept. 28, 2012.
[POSTED April 16, 2013]
Cirrus providing pilots to eliminate barriers to entry
Cirrus Aircraft on April 11 announced Cirrus On Demand, which the manufacturer calls a transformational ownership solution that provides general aviation’s convenience and capability to new Cirrus Aircraft owners who are not currently pilots. Under the program, a certified Cirrus pilot is at the disposal of a new Cirrus owner, allowing customers to benefit from immediate and safe utility of their aircraft as they learn to fly. Cirrus On Demand pilots are Cirrus Standardized Instructor Pilots who meet the company's corporate flight standards. These pilots must hold a commercial pilot certificate and CFII, and will manage all aspects of flight operations—including loading/unloading passengers and baggage, booking hotels, and renting cars. They also will provide flight instruction to the aircraft owner if he or she wants to learn.
[POSTED April 16, 2013]
Delta, Virgin Atlantic seek antitrust relief
Delta Air Lines and Virgin Atlantic Airways Ltd. said April 8 that they have filed an application with the U.S. Department of Transportation seeking antitrust immunity for their new joint venture on flights between North America and the United Kingdom. In their filing, Delta and Virgin Atlantic noted that nearly 60 percent of the slots at London Heathrow Airport are controlled by the American Airlines/British Airways joint venture which, as a result, dominates air travel between the countries. By combining Virgin's Heathrow slots and U.K. brand strength with Delta's powerful U.S. network, the joint venture will offer significant competition. Under the proposed joint venture, Delta and Virgin Atlantic would coordinate schedules, network planning, pricing, and revenue management functions, as well as sales. Last year, the carriers announced an agreement under which Delta will acquire a 49-percent equity stake in Virgin Atlantic's parent company.
[POSTED April 9, 2013]
US Airways first to get FAA certification of ADS-B tools
Airline performance in 2012 was the second highest in 23 years that researchers have tracked their performance, according to the 23rd annual national Airline Quality Rating. The performance of the nation's leading carriers in 2012 was nearly identical to the best year ever in 2011, according to the report, a joint research project of faculty at Purdue and Wichita State University. Rankings released April 8 show that of the 14 carriers rated for performance in both 2011 and 2012, seven airlines improved and five airlines declined. The top five carriers were Virgin America, JetBlue, AirTran, Delta, and Hawaiian. The AQR score reflects commendable efforts by the airline industry to serve customers in a capacity-limited air travel system, according to Dean Headley, associate professor of marketing at the W. Frank Barton School of Business at Wichita State. "Further airline consolidation will continue to reduce the number of air carriers ranked in the AQR," said Brent Bowen, professor and head of Purdue University's aviation technology department. "Past AQR data suggests that the combining of two large air carrier operations often results in subsequent decreases in AQR rankings.” An electronic version of the full report, with details on each airline, is available online.
[POSTED April 9, 2013]
US Airways first to get FAA certification of ADS-B tools
US Airways announced April 4 that in partnership with ACSS, an L-3 Communications & Thales Company, the airline has received FAA certification on its wide-body Airbus A330 aircraft for SafeRoute, a set of four flight deck applications that will provide enhanced operational safety and efficiency through the use of Automatic Dependent Surveillance-Broadcast (ADS-B) technology. The tools will help pilots better manage intervals between preceding aircraft; allow altitude changes on a more frequent basis in oceanic or nonradar airspace; allow visual approaches to continue, using electronic displays, if sight of the preceding aircraft is lost; and display ground traffic during surface movement. US Airways is the first airline to receive certification for the combination of all four of these applications.
[POSTED April 9, 2013]
Delta to upgrade MD-88, MD-90 avionics
Delta Air Lines will outfit its fleet of 182 MD-88 and MD-90 aircraft, as well as several flight simulators, with standardized, state-of-the-art glass cockpits and GPS navigation. The enhanced avionics suite, developed by Innovative Solutions & Support, Inc., will allow the aircraft to fly shorter flight paths and take advantage of continuous-descent, Required Navigation Performance (RNAV) approaches to reduce fuel consumption, carbon emissions, and noise levels—primary objectives of the FAA’s NextGen initiative. Not only will the changes add GPS capabilities, datalink, and ADS-B but the lighter weight of the new equipment will immediately improve fuel economy. Standardized flight decks will improve situational awareness for flight crews and are expected to increase operational flexibility, simplify maintenance, and improve dispatch reliability. Installation of the glass cockpits across the MD-88 and MD-90 fleet is slated to begin in early 2014 and will require approximately two years.
[POSTED April 9, 2013]
Flight attendants step up knife fight
The Coalition of Flight Attendant Unions, representing some 90,000 flight attendants at U.S. airlines, is stepping up its fight against an abrupt TSA policy change that would allow knives in aircraft cabins. Members of the Association of Flight Attendants-CWA have been distributing leaflets at airports, asking the public to support the No Knives Act of 2013, introduced by U.S. Reps. Ed Markey (D-Mass.) and Michael Grimm (R-N.Y.). On Monday, April 1, flight attendants distributed information to the public at Chicago O'Hare International, Denver International, Los Angeles International, Phoenix Sky Harbor, Pittsburgh International, Sea-Tac International, and Washington Dulles International airports. The leaflets also encourage passengers to sign a petition to the White House.
[POSTED April 2, 2013]
PSA pilots ratify new contract
Pilots at PSA Airlines, a wholly owned subsidiary of US Airways, on March 27 ratified a new five-year collective bargaining agreement that was reached on Feb. 14. The new contract was ratified by the airline's 515 pilots, who are represented by ALPA and based in in Dayton, Ohio; Knoxville, Tenn.; and Charlotte, N.C.
[POSTED April 2, 2013]
Compass flight attendants tentatively agree to first contract
Flight attendants at Compass Airlines, represented by the Association of Flight Attendants-CWA, AFL-CIO, reached a tentative agreement for a first contract late March 28 with the assistance of the National Mediation Board. The agreement would provide double-digit pay increases on the date of ratification along with an increased 401k match, schedule flexibility, and a grievance procedure. Details will be released first to Compass flight attendants, who will vote on the agreement between April 10 and May 1. Compass, a Delta Connection carrier, is wholly owned by Trans States Holdings and operates about 190 daily flights.
[POSTED April 2, 2013]
JetBlue Houston service is carrier’s 49th destination from Logan
JetBlue Airways announced March 28 that it will add two daily flights between Boston's Logan International Airport and Houston's William P. Hobby Airport starting July 25. Houston will be the 49th destination served by the carrier from Boston, as well as the 74th city served nonstop by all carriers from Logan. JetBlue’s Houston flights will be the first regularly scheduled service between the airports, said Dennis Corrigan, JetBlue's vice president of sales and revenue management. The airline said it’s moving closer to a goal of more than 150 daily departures from Boston, adding an average of five new destinations per year.
[POSTED April 2, 2013]
Alaska begins nonstop San Diego-Boston service
Alaska Airlines launched nonstop service between San Diego and Boston on March 29. Boston is the sixth new city the carrier has begun serving from San Diego in the past year; the others are Orlando and Kauai, Hawaii, as well as to Fresno, Monterey, and Santa Rosa, Calif. "Alaska Airlines is a key player in the transcontinental market,” said Ed Freni, director of aviation for the Massachusetts Port Authority, which owns and operates Boston’s Logan International Airport.
[POSTED April 2, 2013]
Flight attendants laud anti-knife measures
A budget resolution submitted by U.S. Senators Charles E. Schumer (D-N.Y.) and Lisa Murkowski (R-Alaska) that would prohibit the TSA from allowing airline passengers to carry small knives onto airliners is receiving strong support from the Coalition of Flight Attendant Unions, which represents 90,000 flight attendants. “Aviation security is not divided by party lines,” the coalition said in support of the bipartisan measure. “All people have an interest in maintaining the most secure aviation system in the world.” The coalition also applauded Representatives Eric Swalwell (D-Calif.), Michael Grimm (R-N.Y.), and Bennie Thompson (D-Miss.) for taking the lead in this matter by writing TSA Administrator John Pistole about the abrupt policy change allowing dangerous items in the aircraft cabin. The letter expresses serious concerns about the process used to determine a policy change "without any formal engagement with stakeholders impacted by this policy, including our frontline workers aboard flights, the crewmembers."
[POSTED March 26, 2013]
Piedmont pilots ratify new contract
Pilots at Piedmont Airlines, a wholly-owned subsidiary of US Airways, have voted to ratify a new five-year collective bargaining agreement that was reached on Feb. 1. The new contract was ratified by Piedmont Airlines' 375 pilots, represented by the Air Line Pilots Association and based in Charlottesville, Va.; Harrisburg, Pa.; New Bern, N.C.; Roanoke, Va. and Salisbury, Md. Details of the agreement will be made available by ALPA.
[POSTED March 26, 2013]
American adopts Airbus overrun prevention system
American Airlines has decided to equip all of its A320-family jets with Airbus' new Runway Overrun Prevention System (ROPS) technology. This onboard cockpit technology, which Airbus has developed independently over several years, increases pilots' situational awareness during landing, reduces exposure to runway excursion risk, and provides active protection if necessary. The system computes minimum realistic landing and ground stopping distances while comparing them to available landing distances in real time, considering such factors as runway topography, runway condition, aircraft weight and configuration, wind, and temperature. It provides audio callouts and alerts for pilots, making ROPS an awareness tool to assist the crew in the go-around decision process and the timely application of ground stopping means. ROPS was first approved by the European Aviation Safety Agency on the A380 in October 2009; certification for the A320 family is expected later this year.
[POSTED March 26, 2013]
FedEx replacing 727s with secondhand twinjets
FedEx Corporation will buy 14 Boeing 757 passenger jets from United Continental Holdings Inc., with an option to buy another 16 757s, and convert them to carry freight, according to a March 21 regulatory filing reported by Bloomberg. FedEx began buying used 757s six years ago; one of the jets can carry 20 percent more cargo than a Boeing 727 while burning one-third less fuel. Passenger airlines are beginning to sell off the narrowbody twinjets, which Boeing stopped building in 2005. FedEx also has 70 new Boeing 767s and 777s on order, Bloomberg reported.
[POSTED March 26, 2013]
Airlines want cash for 787 groundings
Last week two early customers of the Boeing 787 Dreamliner indicated they wanted immediate cash credits—and not discounts on future jet orders—as compensation for the Dreamliner’s worldwide grounding since January. Japan’s All Nippon Airways has 17 of the clean-sheet twinjets and has cancelled more than 3,600 flights through the end of May because of the groundings, the Chicago Tribune reported. A senior government source in India said that Air India also wanted a direct refund as compensation for the aircraft’s grounding. Air India has received six Dreamliners and has another 21 on order. The 787 entered service in late 2011, but all 50 delivered worldwide were grounded following incidents involving rechargeable batteries aboard the jets that took place at a U.S. airport and during a flight in Japan.
[POSTED March 26, 2013]
Boeing details 787 battery improvements
Boeing announced March 14 that a comprehensive set of improvements to add several layers of additional safety features to the lithium-ion batteries on 787 commercial jetliners already is in production and installations could begin in the next few weeks. Boeing said the changes, which continue to undergo extensive certification testing, will allow operators to resume commercial 787 flights as soon as testing is complete and the FAA and international regulators grant final approval. The changes include enhanced production and operating processes, improved battery design features, and a new battery enclosure. As an example, four new or revised tests have been added to screen cells during production. Each cell will go through more rigorous testing in the month following its manufacture, including a 14-day test during which readings of discharge rates are taken every hour. The FAA has approved Boeing's certification plan for the changes.
[POSTED March 19, 2013]
Southwest, AirTran connect networks, consider jets
Southwest Airlines announced March 18 that it has successfully completed the connection between the Southwest and AirTran networks. Customers now are able to purchase itineraries to the airlines' combined 97 destinations, including international, in one transaction. The current arrangement essentially is a code share, so the rules of the carrier from which the ticket is bought will apply—although the operating carrier's procedures apply to boarding and seating. Southwest, which has 31 firm orders for new Boeing 737-800s next year and plans to grow, may also purchase used jets to help meet its needs. "We're constantly looking at what our capacity and demand is," Brian Hirshman, senior vice president of technical operations, told Reuters. Because of market condition, jets that are 10 to 12 years old currently are priced favorably, he said.
[POSTED March 19, 2013]
Teamsters voice opposition to knives in cabins
Teamsters General President Jim Hoffa repeated his strong opposition to the TSA’s decision to allow knives in the aircraft cabin in a letter sent March 18 to TSA Administrator John S. Pistole. In the letter, Hoffa demanded to know why the administrator didn't consult any of the unions that represent flight attendants. "I cannot fathom the TSA's rationale for allowing knives on planes with blades longer than box cutters—which are still banned," Hoffa said. "Most disturbing is the fact that not one union representing flight attendants was consulted or asked for input on this proposal. These are frontline workers that are being put in the most danger." The Teamsters Airline Division represents about 80,000 workers in all segments of commercial aviation, including pilots and flight attendants.
[POSTED March 19, 2013]
Southern Air’s reorganization confirmed
Southern Air Holdings, Inc. announced March 14 that it has received confirmation of its prearranged reorganization plan from the U.S. Bankruptcy Court in Wilmington, Del., which has overseen the company's voluntary Chapter 11 proceedings since they were filed Sept. 28, 2012. Confirmation of the plan, which received substantial support from key secured creditors as well as unsecured creditors, clears the way for Southern Air to emerge from its court-supervised financial restructuring. “This was a critical part of our overall transformation,” said Daniel J. McHugh, Southern Air CEO. "We…hope to exit Chapter 11 in just a matter of weeks.” He said the carrier has realigned its operations and capabilities, transitioning to a modern fleet of fuel-efficient Boeing 777 and 747-400 aircraft. Operations and corporate activities are now based at Cincinnati/Northern Kentucky International Airport.
[POSTED March 19, 2013]
Flight attendants oppose knives in cabin
The Flight Attendants Union Coalition, which represents nearly 90,000 flight attendants at carriers across the county, said March 7 that it is coordinating a nationwide legislative and public campaign to reverse the Transportation Security Administration’s announcement that effective April 25, knives would be allowed in airliner cabins for the first time since the Sept. 11, 2001, terrorist attacks. "Flight attendants are outraged. We are the last line of defense in aviation security and time does not change the fact that we were among the first to die in a war we didn't know we were fighting on September 11, 2001,” wrote the leaders of five flight-attendant unions in a letter. “At great cost, we know better today. There is no excuse for this.”
[POSTED March 12, 2013]
Boeing consolidating North American training in Miami
Boeing announced March 8 that it is consolidating its North American flight training capabilities, including 787 Dreamliner flight and maintenance training, at the Boeing Flight Services training campus in Miami. Boeing will relocate all full-flight simulators and other devices from Seattle to Miami, which is Boeing's largest commercial aviation training campus and preferred by customers based in Latin America as well as the United States, Middle East, Europe, and elsewhere, Boeing said. With 20 simulator bays, the Miami facility is one of the largest commercial flight training campuses in the world; it has 11 training devices on site and the capacity to accommodate nine additional simulators.
[POSTED March 12, 2013]
American reports record load factor
AMR Corporation on March 8 reported February 2013 consolidated revenue and traffic results for subsidiaries American Airlines, Inc. and AMR Eagle Holding Corporation. Consolidated load factor in February was an all-time record high for the month, at 77.9 percent, 2.6 points higher than the same period last year. Consolidated capacity and traffic were 4.4 percent and 1.1 percent lower year-over-year, respectively. Domestic capacity and traffic were 5.0 percent and 1.3 percent lower year-over-year, respectively, resulting in a domestic load factor of 81.2 percent—3.0 points higher than for the same period last year. The international load factor of 74.6 percent was 2.2 points higher year-over-year, as traffic decreased 0.8 percent on 3.8 percent less capacity.
[POSTED March 12, 2013]
Justice Department reviewing American, US Airways merger proposal
AMR Corporation, the parent company of American Airlines, Inc., and US Airways Group, Inc. announced March 4 that each company received a request for additional information from the U.S. Department of Justice in connection with the proposed merger of the two airlines. A common step in the regulatory process, this so-called “second request” extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and the parties may not close the transaction for at least 30 days after both have substantially complied with the request. The airlines said they would respond promptly and continue working cooperatively with the DOJ. American and US Airways said they continue to expect their combination to be completed in the third quarter of 2013.
[POSTED March 5, 2013]
US Airways flight attendants ratify contract
US Airways flight attendants, represented by the Association of Flight Attendants-CWA (AFA), said that they ratified on Feb. 28 a single contract with double-digit pay increases, improved job protections, and better work rules. The contract, reached with the assistance of the National Mediation Board, unites flight attendants from US Airways and America West—which merged in 2005—under one agreement. The union said 80 percent of flight attendants participating in the election voted to ratify the agreement. The new contract opens four-party negotiations with American's flight attendant union and airline representatives, an initial step in reaching a combined collective bargaining agreement for the pending US Airways-American merger.
[POSTED March 5, 2013]
CitationAir pilots dislike new schedules
CitationAir, a Greenwich, Conn.-based provider of luxury business jet and charter aircraft services, radically altered the work schedules of the company's nearly 230 pilots, said their union, International Brotherhood of Teamsters Airline Division Local 1108. The union and CitationAir management have been negotiating a first contract for the pilots since November 2011. Prior to the March 1 change, CitationAir scheduled pilots to be available for duty seven consecutive workdays during each two-week period; now they must be available eight consecutive workdays during each two-week period—an increase of 26 more workdays per year. "The typical U.S. worker has a five-day workweek that keeps him or her on the job 20 days a month, not counting holidays. Assuming eight-hour shifts, that worker puts in about 160 hours a month," said Capt. Mat Slinghoff, Local 1108 president. "In contrast, CitationAir could conceivably require a pilot to be at work 252 hours, or more, during a single month. Furthermore, pilots do not get holidays off—they work in a 365/24/7 business."
[POSTED March 5, 2013]
Alaska Air Group employees earn bonuses of $88 million
Alaska Air Group paid annual bonuses totaling almost a month's pay to nearly 13,000 employees Feb. 27 for exceeding the company's 2012 operational and financial goals. The bonus of about 8 percent of annual pay is in addition to $1,100 in bonuses, on average, each employee earned last year for achieving monthly on-time and customer satisfaction targets. The combined monthly and annual bonuses amounted to nearly $88 million. "We're pleased to share the company's financial success with our amazing employees at Alaska Airlines and Horizon Air," Alaska Air Group CEO Brad Tilden said. "Their teamwork and dedication to our customers are at the heart of our success."
[POSTED March 5, 2013]
Hawaiian flight attendants approve narrow-body jets
Hawaiian Airlines flight attendants have ratified a tentative agreement reached in February between the company and the Association of Flight Attendants (AFA) on new contract terms allowing the operation of long-range, single-aisle aircraft the airline plans to acquire. In January, Hawaiian announced its intent to acquire 16 new Airbus A321neo aircraft between 2017 and 2020, with rights to purchase an additional nine aircraft. The fleet expansion is expected to generate roughly 1,000 new jobs at the carrier. Its pilots ratified a similar agreement between the company and the Air Line Pilots Association on January 28.
[POSTED March 5, 2013]
Boeing reports progress with 787 fix
Several sources reported last week that Boeing may be able to solve the problem with lithium-ion batteries on its 787 Dreamliner by spacing individual cells within the battery packs farther apart. "The gaps between cells will be bigger. I think that's why there was overheating," one source told Reuters. After a meeting with Boeing on Friday, the FAA said in a statement that it plans to closely examine Boeing’s proposal. In addition to better thermal separation of the cells, Boeing’s plan also calls for a stronger, sealed containment box; venting tubes; and continuous monitoring of individual cells’ temperatures and voltages, The Seattle Times reported. United Airlines has cancelled nearly all 787 flights in its schedule through June, while Japan’s All Nippon Airways has cancelled 787 flights through May and LOT Polish Airlines has suspended the deliveries of three Dreamliners. Boeing continues to produce 787s at its facility in Everett, Wash., while working to resolve the battery issue.
[POSTED February 26, 2013]
U.S. airlines report improved performance, small profit
Airlines for America, an airline industry trade organization, reported Feb. 21 that U.S. airlines delivered one of their best years ever for operational performance, built on their stellar safety record, and achieved a narrow profit as expenses grew faster than revenues for the second consecutive year. According to the Department of Transportation's Air Travel Consumer Report, the nation's carriers achieved the best year for on-time arrivals since 2003 and the lowest cancellation rate since 2002. The 10 U.S. airlines reporting full-year 2012 results to date earned a combined $152 million, or 21 cents of net profit for every passenger enplaned. Earnings fell as expenses rose 4.7 percent, outpacing a 4.5-percent revenue increase. "The airlines spent some $50 billion to fuel their flights despite using half a billion fewer gallons in 2012 than in 2011,” said A4A Vice President and Chief Economist John Heimlich. “Last week the price of jet fuel hit its highest level in nearly a year. Fuel remains the airlines' single largest expense."
[POSTED February 26, 2013]
United launching seasonal service from Newark
United Airlines announced Feb. 25 that it will launch summer-season service from its New York hub at Newark Liberty International Airport to Anchorage, Alaska, and Traverse City, Mich. United will operate the Anchorage service on Saturdays from July 6 through Aug. 31, using Boeing 757 aircraft. United Express service to Traverse City will operate on weekends from July 5 through Aug. 25, using 50-seat regional jet aircraft operated by ExpressJet.
[POSTED February 26, 2013]
US Airways, American merger announced
In a widely expected move, American Airlines parent AMR Corporation and US Airways Group, Inc. announced Feb. 14 that the boards of both companies unanimously approved a definitive merger agreement. The combined carrier, which will operate under the American Airlines name, will have an implied total equity value of approximately $11 billion based on the price of US Airways' stock as of Feb. 13. It will offer more than 6,700 daily flights to 336 destinations in 56 countries, and is expected to maintain all hubs currently served by American and US Airways. Regional carriers owned by the new company—AMR’s American Eagle and US Airways' Piedmont and PSA—will continue to operate as distinct entities. Thomas Horton, American’s chairman, president, and CEO, will chair the combined airline's board of directors through its first annual meeting of shareholders. Doug Parker, US Airways chairman and CEO, will serve as CEO and as a director of the combined corporation; he will become chairman when Horton steps down. The board will be comprised of three American Airlines representatives, four US Airways representatives, and five AMR creditor representatives. US Airways stockholders will receive one share of common stock in the combined airline for each share of US Airways common stock held, representing 28 percent of the combined airline’s diluted equity; the remainder will be issuable to AMR stakeholders, American's labor unions, and current AMR employees. The deal is subject to confirmation by AMR’s bankruptcy court and regulatory approval.
[POSTED February 19, 2013]
Southwest, AirTran continue connecting networks
Southwest Airlines took the next step in integrating operations with its AirTran subsidiary Feb. 14, when customers became able to purchase more itineraries between the Southwest and AirTran networks for travel on a single itinerary. An initial integration phase in January was successful, and the airline is on pace to fully connect the networks in April. Southwest announced plans to acquire AirTran Airways on Sept. 27, 2010, and closed on the purchase May 2, 2011. To date, five AirTran-served cities and 29 percent of its employees have transitioned to Southwest; 11 AirTran Airways 737-700 aircraft have been converted to Southwest’s interior configuration and been repainted (AirTran’s Boeing 717 jets are being sold to Delta Air Lines). The full integration of AirTran’s 737 fleet and transition to a single ticketing system will be completed by late 2014.
[POSTED February 19, 2013]
Delta employees share $372M in profits
Delta Air Lines paid its employees $372 million in earned profit sharing Feb. 14 to recognize their role in achieving the company’s financial and operational goals in 2012. Individual payouts will equal 6.67 percent of the employee’s eligible 2012 earnings. "This year's profit sharing payment is a reflection of the hard work and dedication Delta people have shown in delivering what our customers have come to expect—great operations and service," said Delta CEO Richard Anderson. Last year Delta employees also earned $91 million in "Shared Rewards," monthly bonuses paid for meeting corporate operating goals.
[POSTED February 19, 2013]
PSA Airlines, pilots reach agreement
PSA Airlines, a wholly owned subsidiary of US Airways, announced Feb. 15 that it has reached a tentative agreement with the Air Line Pilots Association, the union that represents PSA's 515 pilots. ALPA will present details of the tentative agreement to its members for a ratification vote in the coming weeks and will make details available later. The airline's pilots are based in Dayton, Ohio; Knoxville, Tenn.; and Charlotte, N.C.
[POSTED February 19, 2013]
US Airways, AMR nearing deal
The world’s largest airline could emerge within weeks or even days, with the expected announcement of an $11 billion merger of US Airways Group, Inc. and AMR Corp., according to news reports. US Airways Chief Executive Doug Parker could become CEO of the combined company, Reuters reported Feb. 10, and AMR's Tom Horton would be nonexecutive chairman of the board until the new company’s first annual meeting is held in the spring of 2014. The deal would mark a career achievement for Parker, the longest-serving CEO among large U.S. airlines—and complete the industry consolidation he began when his America West Holdings Corp. merged with US Airways in 2005, Bloomberg Businessweek reported Feb. 11. If approved the merger also would be the last combination of U.S. legacy airlines, after the United-Continental merger in 2010 and the Delta-Northwest combination in 2008.
[POSTED February 12, 2013]
American Eagle employees fight Republic contract
Three unions representing employees of American Eagle have asked AMR Corp.’s bankruptcy court to delay or deny a recent AMR contract with Republic Airways, the Fort Worth Star-Telegram reported Feb. 7. The 12-year agreement would allow Republic to operate regional flights for American, using 53 Embraer E-175 regional jets, beginning this summer. The Air Line Pilots Association, Association of Flight Attendants, and Transport Workers Union said Eagle employees will lose jobs because of the agreement.
[POSTED February 12, 2013]
Canada’s WestJet announces new U.S. destinations
WestJet announced Feb. 11 the launch of new nonstop service between Toronto and Myrtle Beach, S.C., and between Calgary and Dallas, Texas. Daily service between Calgary and Dallas-Fort Worth International Airport will begin April 29. WestJet will introduce Twice-weekly service, on Thursdays and Sundays, between Toronto and Myrtle Beach will start May 2. Flights on both routes will be operated using the airline's fleet of Boeing Next-Generation 737 aircraft. The Canada-based carrier currently flies to 18 U.S. destinations.
[POSTED February 12, 2013]
Virgin launching nonstops to Austin, Anchorage
Virgin America announced Feb. 12 that it will begin service to Austin-Bergstrom International Airport in Texas beginning May 21. The carrier will serve Austin with a daily nonstop roundtrip flight from its home base at San Francisco International Airport. Seasonal service from San Francisco to Ted Stevens Anchorage International Airport in Anchorage, Alaska, will begin June 6; the carrier will offer six nonstop roundtrip flights a week through Sept. 9.
[POSTED February 12, 2013]
Piedmont, ALPA reach tentative agreement
Piedmont Airlines, a wholly-owned subsidiary of US Airways, announced Feb. 1 that it has reached a tentative agreement with the Air Line Pilots Association, which represents the airline's 375 pilots. The tentative agreement was reached with the assistance of the National Mediation Board. "This is a significant step toward reaching a new collective bargaining agreement," said Steve Farrow, Piedmont Airlines president and CEO. ALPA will present the details of the tentative agreement to its members for consideration once language is finalized in the coming weeks.
[POSTED February 5, 2013]
Hawaiian FAs reach agreement on contract for new jets
Hawaiian Airlines flight attendants, represented by the Association of Flight Attendants-CWA (AFA), said Feb. 1 they have reached a tentative agreement with management on contract terms that would extend to 16 new Airbus A321neo aircraft on order. Details of the agreement are being sent to Hawaiian's more than 1,400 flight attendants, with voting scheduled for Feb. 8 through 27. "Through our collaborative efforts with management, we have reached an agreement that will advance our careers while recognizing our professionalism," said Sharon Soper, president of the AFA local at Hawaiian. "We look forward to the continued growth and job creation made possible through this agreement."
[POSTED February 5, 2013]
Boeing begins building 737s at a higher rate
Boeing has begun assembly of the first Next-Generation 737 that will be built at the increased rate of 38 airplanes per month, the company announced Jan. 29. Over the past two years, production of the popular 737 has risen more than 20 percent, from 31.5 to 38 airplanes a month; next year, the rate will increase again—to 42 airplanes a month. On Jan. 29 mechanics loaded initial parts of the airplane's wing spars—the first step in building the wings, marking the start of major manufacturing—into an automated spar-assembly machine. Employee teams have been instrumental in developing and implementing innovative efficiency improvements in 737 manufacturing. The first Next-Generation 737 built at the new rate is scheduled to be delivered in the second quarter of this year.
[POSTED February 5, 2013]
American adding 76-seat regional jets
American Airlines announced Jan. 24 that it has signed a 12-year capacity purchase agreement with Republic Airways Holdings to provide large regional jet flying for the first time in the company's history. The agreement, subject to bankruptcy court approval, was made possible by American’s new pilot contract. Republic Airways will acquire 53 Embraer E175 jets that will enter service at the rate of two to three aircraft per month beginning in mid-2013, with all 53 aircraft delivered by the first quarter of 2015. American Eagle, also in bankruptcy organization, was not able to bid on the large regional jet flying just awarded to Republic, Dallasnews.com reported. The website of the Dallas Morning News said Dan Garton, American Eagle’s president and chief executive, told employees in a message last week that Eagle was “not in a position to meet a key requirement of securing and financing large regional jets in the timeframe requested.” Garton added that the carrier is on track with its own plans to replace smaller regional jets with larger planes.
[POSTED JANUARY 29, 2013]
US Airways, AFA reach tentative agreement
US Airways announced Jan. 24 that it has reached a new tentative agreement on a collective bargaining agreement with the Association of Flight Attendants (AFA), which represents the airline's 6,800 mainline flight attendants. AFA said the tentative agreement, reached under the supervision of the National Mediation Board, would allow for immediate economic improvements and provide all US Airways flight attendants with the strongest position possible for any discussions related to the next merger. "This agreement provides US Airways flight attendants with a strong position for our future. Doug Parker's plan for a US Airways/American merger provides the best opportunities for US Airways flight attendants, and we are now poised to make the most out of those opportunities," said AFA US Airways presidents Roger Holmin and Deborah Volpe.
[POSTED JANUARY 29, 2013]
Hawaiian pilots ratify narrow-body agreement
Hawaiian Airlines pilots have ratified a tentative agreement reached earlier this month between the company and the Air Line Pilots Association (ALPA) on new contract terms covering the operation of long-range, single-aisle aircraft the carrier plans to acquire to complement its current fleet of wide-body, twin-aisle aircraft serving Hawaii from the U.S. West Coast. On Jan. 7, Hawaiian announced the signing of a memorandum of understanding with airframe manufacturer Airbus to acquire 16 new A321neo aircraft between 2017 and 2020, with rights to purchase an additional nine aircraft. The carrier is in talks with the Association of Flight Attendants about a similar agreement. The A321neo fleet expansion is expected to generate roughly 1,000 additional jobs at Hawaiian.
[POSTED JANUARY 29, 2013]
787 probe continues; batteries may not be cause
Investigators continue to search for the cause of incidents that grounded all of the new Boeing 787 Dreamliners in service around the world Jan. 16, including the only six Dreamliners operated by U.S.-based United Airlines. The batteries that burned aboard 787s in both the United States and Japan apparently did not overcharge, AIN Online reported Jan. 29. However, AIN Online said, the investigation remains focused on the lithium-ion batteries used in the aircraft’s electrical power conversion system. Boeing said that it will not comment directly on the ongoing investigations, in order to ensure the integrity of the process and in adherence to international protocols that govern safety investigations.
[POSTED JANUARY 29, 2013]
FAA grounds Dreamliners
The FAA ordered the immediate grounding of all U.S.-registered Boeing 787 Dreamliners on Jan. 16, requiring a corrective action plan before operations can resume. The grounding comes days after the Jan. 11 announcement that the FAA would conduct a comprehensive review of the Boeing 787's critical systems to validate the work conducted during the certification process. United Airlines is the only U.S. carrier operating the new model, and has grounded its six Dreamliners; two carriers in Japan operating the 787 also grounded the planes Jan. 16 after one of them made an emergency landing. "We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Boeing Chairman, President and CEO Jim McNerney said in a statement. "Boeing is committed to supporting the FAA and finding answers as quickly as possible."
[POSTED JANUARY 22, 2013]
Southwest, AirTran add Super Bowl flights
Southwest Airlines and its subsidiary, AirTran Airways, on Jan. 21 announced extra flights to New Orleans for San Francisco Forty-Niners and Baltimore Ravens fans attending the Super Bowl on Feb. 3. Flights added by the carriers include nonstop service they don't normally offer from San Francisco International. On Jan. 31, Southwest will offer two daily nonstops from San Francisco, and two from Baltimore; AirTran is adding an additional nonstop from Atlanta. On Feb. 4, Southwest will operate two nonstops from New Orleans to San Francisco. The carriers said they have added other flights to New Orleans that already have sold out.
[POSTED JANUARY 22, 2013]
Alaska to base flight attendants in San Diego
Alaska Airlines has announced that it will open a flight attendant base in San Diego on April 1. The fifth base in Alaska's network will be home to between 150 and 200 flight attendants, and is expected to save Alaska more than $1 million annually in travel-related costs. "As one of our fastest-growing cities, the time was right to open a base in San Diego—a city where many of our flight attendants already live," said Andy Schneider, Alaska Airlines' vice president of inflight services. The new San Diego base also is expected to improve on-time performance, because flight attendants will live in the region, rather than commuting from another location. Alaska currently has flight attendant bases in Anchorage, Alaska; Los Angeles; Portland, Ore., and Seattle.
[POSTED JANUARY 22, 2013]
Court OKs Pinnacle plans for bankruptcy exit
Pinnacle Airlines Corp. announced Jan. 16 that the comprehensive agreements it reached with Delta, the Air Line Pilots Association, and the creditors' committee in Pinnacle's Chapter 11 cases have been approved by the bankruptcy court. Pinnacle said that together, the agreements provide a path for the company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. Pinnacle's plan calls for a transition to operating a fleet of 81 fuel-efficient regional jets for Delta. The carrier will receive Delta Connection's next 40 CRJ-900 aircraft awarded, setting Pinnacle's long-term fleet plan at 81 CRJ-900 aircraft; deliveries are anticipated between fall 2013 and the end of 2014. A new collective bargaining agreement with Pinnacle's pilots—as well as a bridge agreement that provides transitional payments, furlough benefits, and specified career opportunities at Delta to Pinnacle's pilots—were among the agreements approved.
[POSTED JANUARY 22, 2013]
FAA to review Boeing’s 787
Following a small fire aboard an aircraft parked at a gate and several other reported incidents, the FAA announced Jan. 11 that it will conduct a comprehensive review of the Boeing 787’s critical systems to validate the work conducted during the certification process. A team of FAA and Boeing engineers and inspectors will conduct the joint review, with an emphasis on the aircraft’s electrical power and distribution system. “We are confident that the aircraft is safe. But we need to have a complete understanding of what is happening," said FAA Administrator Michael P. Huerta. FAA technical experts logged 200,000 hours of work during the 787 type certification and flew on numerous test flights. The review is expected to begin in Seattle, but may expand to other locations over the course of several months. “We look forward to participating in the joint review with the FAA, and we believe it will underscore our confidence, and the confidence of our customers and the traveling public, in the reliability, safety, and performance of the innovative, new 787 Dreamliner," said Boeing Chairman, President, and CEO Jim McNerney. United Airlines is the only U.S. carrier currently operating the 787, with six airplanes delivered. Worldwide, 50 of the new twinjets are in service.
[POSTED JANUARY 15, 2013]
Pinnacle pilots ratify new contract
Pinnacle Airlines, Inc., announced Jan. 15 that its pilots group, represented by the Air Line Pilots Association, International, ratified the tentative agreement reached in December. The changes in the ratified agreement, which covers pilot pay, retirement, work rules, and benefits, will become effective when concessions are implemented for the airline's other labor groups and nonunion employees. "This is a significant milestone in our restructuring and represents substantial progress that we expect will allow us to successfully emerge from bankruptcy," said John Spanjers, president and CEO of Pinnacle Airlines Corp. A hearing is scheduled on Jan. 16 for the bankruptcy court to consider approval of the tentative agreement. Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines, Inc., which operates 191 regional jets for Delta Connection.
[POSTED JANUARY 15, 2013]
Southwest announces service to Dominican Republic, Jamaica
Southwest Airlines Co. began selling tickets Jan. 10 for new nonstop service between Chicago (Midway) and both Montego Bay, Jamaica, and Punta Cana, Dominican Republic. Operations on the new routes will begin this spring, subject to governmental approvals, four times per week; they will be flown by Southwest subsidiary AirTran Airways. Service to Montego Bay will begin April 14, and the first flight to Punta Cana is scheduled for May 19.
[POSTED JANUARY 15, 2013]
Horizon pilots ratify 6-year contract
Horizon Air and the International Brotherhood of Teamsters announced Jan. 9 that the carrier's 610 pilots ratified an agreement to extend the current contract for three years, creating a new six-year pact. Among pilots who voted, 77 percent approved ratification. "The fact that the extension was achieved three years before the contract became amendable demonstrates the effectiveness of our sincerely collaborative approach with our union-represented workgroups," Horizon President Glenn Johnson said. The new contract includes wage increases, improvements in productivity and quality of life, and better job security.
[POSTED JANUARY 15, 2013]
American, US Airways pilot agreement could pave way for merger
American Airlines and US Airways have completed discussions with the Allied Pilots Association and US Airline Pilots Association that could pave the way for a possible merger of the carriers, US Airways Group, Inc. announced Jan. 4. A memorandum of understanding, achieved with counsel for American’s Unsecured Creditors Committee and approved by both pilot unions’ boards, frames the terms of employment for pilots and provides a process for pilot integration in the event the carriers merge. Details of the memorandum are subject to the terms of a nondisclosure agreement and cannot be further disclosed at this time, US Airways Group said. Tom Horton, chief executive officer of American parent AMR Corp., told employees in a memo that the company expects to reach a decision about the merger within weeks, Bloomberg Businessweek reported Jan. 3.
[POSTED JANUARY 8, 2013]
Trade group rejects cargo pilot rest, duty changes
Airline industry trade organization Airlines for America on Jan. 7 reaffirmed its support for new FAA pilot duty and rest time rules. It urged congress to reject legislation recently introduced by U.S. Reps. Michael Grimm (R-N.Y.) and Tim Bishop (D-N.Y.) that would extend those rules beyond passenger airlines to all-cargo carriers. “All stakeholders actively participated in the rulemaking, which was composed of a scientific review of existing safety measures, fatigue mitigations, and diverse airline operating environments—and the rule as put forward by the FAA builds on our safety record,” said A4A President and CEO Nicholas E. Calio.
[POSTED JANUARY 8, 2013]
Pinnacle plans to emerge from bankruptcy as Delta subsidiary
Pinnacle Airlines Corp. announced Jan. 3 that it and its wholly owned subsidiaries have entered into comprehensive agreements that could allow the company to emerge from bankruptcy with a fleet of 81 fuel-efficient regional jets, under the ownership of Delta Air Lines Inc. or a subsidiary. Under an amended operating agreement with Delta, between fall 2013 and the end of 2014 Pinnacle will receive Delta Connection's next 40 CRJ-900 aircraft; Pinnacle's 140 CRJ-200 aircraft will be removed from operation over the next two to three years. A bridge agreement would provide Pinnacle’s pilots with transitional payments, furlough benefits, and specified career opportunities at Delta. The reorganization plan provides for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corp. after it emerges from bankruptcy.
[POSTED JANUARY 8, 2013]
Hawaiian to add 16 long-range Airbus jets
Hawaiian Airlines announced Jan. 7 the signing of a memorandum of understanding with Airbus to acquire 16 new A321neo aircraft between 2017 and 2020, with rights to purchase an additional nine aircraft. Hawaiian said the long-range, single-aisle aircraft will complement its existing fleet of wide-body, twin-aisle jets used for long-haul flying between Hawaii and the U.S. West Coast. The A321neo will seat approximately 190 passengers and has a range of 3,650 nautical miles. The new acquisitions are contingent upon Hawaiian signing new agreements with its pilot and flight attendant unions covering operation of the new aircraft type. If new agreements are reached, the fleet expansion is expected to generate roughly 1,000 additional jobs at the carrier.
[POSTED JANUARY 8, 2013]
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