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.
Trade group forecasts record summer international travel
Airlines for America (A4A), an industry trade association for U.S. airlines, said May 9 that passengers can expect full flights this summer thanks in part to a record number of people traveling internationally and an improving economy. "Customers are benefiting from record airline operational performance and greater access to the global economy while fares continue to trail the price of other services," said A4A President and CEO Nicholas E. Calio. The organization predicted that from June through August, U.S. airlines will carry an average of 2.24 million travelers globally every day, with total passenger volumes remaining 5 percent below the summer 2007 all-time high of 217.6 million. However, airlines continue to be challenged by increased operating costs. The industry posted a first-quarter net loss of $1.73 billion, A4A said. Operating revenue for the 10 reporting airlines grew 8.2 percent but operating and nonoperating expenses increased 10.3 percent. Fuel costs jumped 19.1 percent compared with the first quarter of 2011. Fuel remained the industry's largest cost at one-third of operating expenses, up from 30 percent in 2011.
[ POSTED MAY 15, 2012 ]
New routes to Washington National announced
Several carriers have been awarded new routes to Ronald Reagan Washington National Airport (DCA). The new service was made possible by enactment of the FAA Modernization and Reform Act of 2012, which authorized the Department of Transportation to award a limited number of new flights to U.S. domestic airports located beyond DCA's 1,250-mile "perimeter limit." United Airlines announced May 14 that it will begin service between DCA and San Francisco International Airport. Virgin America also will begin service between DCA and San Francisco International. JetBlue was granted a beyond-perimeter slot exemption to fly between DCA and San Juan's Luis Munoz Marin Airport. Finally, Alaska Airlines will offer a daily nonstop flight between DCA and Portland, Ore., with service beginning by Sept. 8.
[ POSTED MAY 15, 2012 ]
Embraer delivers 300th Phenom
Brazilian aircraft manufacturer Embraer recently announced the delivery of its 300th Phenom business jet, an impressive milestone for an aircraft that entered into service only in 2008. The Phenom 100 and 300 business jets are powered by Pratt & Whitney Canada PW617F-E and PW535E engines, respectively. "The success of the Embraer Phenom family of aircraft is a testament to the aircraft's appeal in this segment of the business jet market," said David Van der Wee, vice president of marketing for Pratt & Whitney Canada. The PW500 family has accumulated more than 9 million flight hours, and has a basic overhaul interval of 5,000 hours. The approximately 2,000 PW600 engines in service have accumulated more than one million flight hours.
[ POSTED MAY 15, 2012 ]
US Airways boosts service to East Coast hubs
US Airways announced on May 7 the launch of new daily, nonstop service from Austin-Bergstrom and San Antonio international airports to the airline's international gateway of Philadelphia International Airport. The new flights, which begin on Sept. 5, will be operated by 99-passenger Embraer 190 aircraft. The carrier also said that it will begin a sixth daily flight between Dallas/Fort Worth International Airport and Philadelphia, as well as two additional daily flights between New York's John F. Kennedy International Airport and Charlotte, N.C. The new frequencies from the airline's East Coast hubs, which also begin Sept. 5, are intended to improve service to business customers; the flights between Charlotte and John F. Kennedy International Airport will be flown by 124-passenger Airbus 319 aircraft, while the service between Philadelphia and Dallas will be provided by 150-passenger Airbus 320s.
[ POSTED MAY 8, 2012 ]
Hawker Beechcraft files for bankruptcy reorganization
Hawker Beechcraft, Inc. announced May 3 that it has reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense. To quickly implement the terms of the prearranged restructuring, designed to strengthen the company for the future, Hawker Beechcraft and some of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy reorganization. As part of the prearranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in debtor-in-possession financing, which will enable it to continue paying employees, suppliers, vendors and others in the normal course of business. The company said it will continue to serve its customers, and that all orders for available products will be fulfilled. A prearranged Chapter 11 filing means the company has secured the support of a majority of its lenders and senior bondholders for its proposed financial restructuring; financial institutions representing more than two-thirds the company's bank and senior bond debt are parties to the agreement. Eventually equity ownership in Hawker Beechcraft will be transferred to holders of the company's secured debt, bond debt and certain other unsecured creditors.
[ POSTED MAY 8, 2012 ]
A4A calls for pilot-qualification rule changes
Airlines for America (A4A), an airline industry trade organization, on May 1 urged the FAA to significantly revise its proposed requirements for pilot certification. A4A is asking for a system that builds on the industry's strong safety record, is recommended by safety experts, and that recognizes the quality of a pilot's training and experience instead of only a specific number of flight hours. "Hard-hour minimum requirements are not a substitute for the quality of a pilot's training and experience," A4A said in its comments filed with the FAA, noting that the change as proposed by the FAA would have unintended consequences. "Failure to provide additional options for meeting the requirements, as recommended by safety experts, will result in an unnecessary pilot shortage and significant barriers to recruiting regional and mainline pilots." The organization recommended that the FAA establish a restricted ATP certificate for second in command pilots, which takes experience and training into account, and move toward the adoption of a multicrew pilot licensing program similar to those used in other nations and “which take into account the realities of current operations and training.”
[ POSTED MAY 1, 2012 ]
Delta to purchase refinery complex
In an effort to reduce fuel costs, Delta Air Lines said April 30 that its wholly owned subsidiary, Monroe Energy LLC, has reached agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia. The acquisition includes pipelines and transportation assets that will deliver jet fuel to Delta's operations throughout the Northeast, including its hubs at LaGuardia and JFK. As part of the transaction, Monroe will enter into strategic sourcing and marketing agreements with BP and Phillips 66. Production at the refinery, combined with multiyear agreements to exchange gasoline, diesel, and other refined products from the refinery for jet fuel, will provide 80 percent of Delta's jet fuel needs in the United States. "Acquiring the Trainer refinery is an innovative approach to managing our largest expense," said Richard Anderson, Delta's chief executive officer. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast.”
[ POSTED MAY 1, 2012 ]
United considering large Boeing 737 order
According to a number of news reports, United Airlines is close to placing a multibillion-dollar order with Boeing for as many as 200 narrowbody Boeing 737 jets, USA Today reported April 24. The publication cited reports from Bloomberg News, Reuters, and The Seattle Times indicating that Boeing was now favored to land the order, for 180 to 200 new, more fuel efficient Boeing 737 twinjets. The article quoted The Wall Street Journal as saying that if the order does go to Boeing, "the deal would mark a significant win for Boeing, which last year placed far behind its European rival Airbus in landing orders for small airliners."
[ POSTED MAY 1, 2012 ]
Flight attendants at American Eagle are continuing to negotiate with management in an effort to reach an agreement rather than a court-imposed settlement, despite the ongoing American Airlines bankruptcy organization. “We are focused on job security and a better future for American Eagle flight attendants. We welcome innovative solutions that would fully recognize the contributions of American Eagle flight attendants, much like the divestiture that was planned prior to the bankruptcy,” said Robert Barrow, president of the Association of Flight Attendants-CWA, AFL-CIO (AFA) unit at American Eagle. “We are paying close attention to any potential merger,” he added. Meanwhile, leaders of the AFA units representing premerger America West and premerger US Airways flight attendants seek a single contract with the merged carrier “prior to any new merger deal,” Deborah Volpe and Mark Gentile said in a statement. America West and US Airways merged seven years ago. “Any new deal must first acknowledge the contributions of US Airways flight attendants through a single contract, with job security and improvements promised to flight attendants involved in the last merger initiated by US Airways management,” they said. According to reports, US Airways has expressed interest in bankrupt America. Concerned about the possibility of a merger or acquisition, the Fort Worth Chamber and Dallas Regional Chamber issued a joint statement that they oppose any merger before American exits bankruptcy. “The best outlook for all American employees is for the airline to remain independent and headquartered in North Texas,” they said.
[ POSTED APRIL 24, 2012 ]
Southwest plans international operations in 2014
Southwest Airlines and Amadeus IT Group announced April 19 that they have entered into a joint contract for Amadeus' Altea reservations solution that would support international service for the carrier. With the contract in place, the companies will work closely to implement Amadeus' technology so that Southwest can operate international flights in 2014. AirTran Airways, a wholly-owned subsidiary of Southwest, already serves international destinations. As the AirTran international flights transition to Southwest, Amadeus will support Southwest's international flying. While the Amadeus IT Group agreement focuses on the international element of Southwest's reservation system, the contract also provides the option for Southwest to convert its domestic business to Amadeus in the future.
[ POSTED APRIL 24, 2012 ]
A4A rejects expanding new crew rules to cargo carriers
The FAA’s recent final rule on crewmember duty limitations and rest requirements should apply only to scheduled passenger operations and should not be applied to all-cargo carriers, the industry trade organization Airlines for America (A4A) said April 17. "The FAA flight-time limitations and rest-requirements rulemaking was a thorough undertaking successfully built on a foundation of existing safety measures, fatigue mitigations, and diverse airline operating environments," said A4A President and CEO Nicholas E. Calio. "This long-overdue rule puts the safe operation of passenger and cargo airlines first for customers and crew members as U.S. airlines continue to operate at the safest level in history." The organization “voiced strong opposition to newly proposed legislation that would reverse the careful analysis and conclusion by FAA that applying the rule to all-cargo carriers could not be justified.”
[ POSTED APRIL 24, 2012 ]
Hawaiian launches Fukuoka flights
Hawaiian Airlines launched its newest route into Asia on April 16 with the launch of daily nonstop service between Honolulu and Fukuoka, Japan. Fukuoka is the third destination in Japan and fourth in Asia that Hawaiian has launched in the past 17 months; the most recent was Osaka, in July 2011. “Fukuoka is a continuation of our strategy of growing into markets from which we expect to see increasing numbers of visitors to Hawaii," said Mark Dunkerley, Hawaiian's president and CEO. Fukuoka is the capital city of Fukuoka Prefecture and the economic center of Kyushu, the third largest and most southerly of Japan's four main islands; Kyushu has approximately 13 million residents. Hawaiian will initially operate the Honolulu-Fukuoka flights using its wide-body, twin-aisle Boeing 767-300ER aircraft, until introducing new, larger wide-body Airbus A330-200 aircraft onto the route.
[ POSTED APRIL 17, 2012 ]
Zacks blog gives Southwest long-term ‘underperform’ rating
Zacks Equity Research said in its April 12 Analyst blog that it was lowering its long-term rating for Southwest Airlines, the largest U.S. low-cost carrier, where it said traffic declined 0.9 percent year over year in March. Airline traffic is customarily measured in billions of revenue passenger miles. On a year-over-year basis, consolidated capacity (available seat miles) fell 0.9 percent and the load factor (percentage of seats filled by passengers) decreased to 81.8 percent. However, passenger revenue per available seat mile (PRASM) rose 5 percent year over year in March, compared to increases of 4 percent in February and 7 percent in January. It said the company, slated to release first quarter earnings on April 19, does not expect to report profits due to high fuel costs. The Zacks Consensus estimates a loss of 5 cents for the first quarter. “Although Southwest is poised to benefit from fleet rightsizing, the Evolve retrofit program, steady capacity growth, All-New Rapid Rewards, AirTran merger synergies and several ancillary revenues, we are mainly concerned about high maintenance and operating costs associated with fleet rightsizing and modernization. Additionally, the successful integration of AirTran would result in a one-time charge of $500 million, of which $134 million was expended last year,” the blog said. New advertising rules and stiff competition from United Continental Holdings and Delta Air Lines also keep Zacks cautious on the stock. Based on expected weak first quarter projections and feeble macro data points in the entire airline industry, Zacks said it recently downgraded its long-term recommendation to Underperform on Southwest. For the short term (1–3 months), the stock retains a Hold rank.
[ POSTED APRIL 17, 2012 ]
Boeing marks 4,000th Next-Generation 737
More than 500 Boeing employees, executives, suppliers, and government officials joined China Southern Airlines on April 13 to celebrate the 4,000th Next-Generation 737. The 4,000th Next-Generation 737 jetliner off the Renton, Wash., 737 production line will be delivered this week to China Southern Airlines, headquartered in Guangzhou, China. "The Next-Generation 737's success is the result of years of expertise that thousands of employees continue to build into every Boeing 737 used in private, government and commercial service," said Beverly Wyse, vice president and general manager of the 737 program. "It is an incredible milestone to be delivering our 4,000th Next-Generation 737.” The milestone jet is a 737-700 model that seats 126 passengers in a two-class configuration. More 737s have been produced than any other commercial jetliner in history. With more than 5,550 airplanes in service, the 737 family represents more than a quarter of the total worldwide fleet of large commercial jets flying today. More than 358 airlines in 114 countries fly 737s.
[ POSTED APRIL 17, 2012 ]
Southwest makes pitch for Hobby international service
Southwest Airlines on April 9 launched a website to rally support for international service from William P. Hobby Airport in Houston. Earlier this year, the carrier asked the city of Houston for approval to construct a new five-gate international facility at the airport. This proposed expansion—paid for by the users of the facility and guaranteed by Southwest—would open up new low-cost international travel competition to the area, creating an economic impact for the city of more than $1.6 billion annually, Southwest said. According to a study, lower airfares and increased travel options would encourage more than 1.5 million additional passengers to travel each year, creating more than 10,000 jobs across the greater Houston metropolitan area. Houston Director of Aviation Mario Diaz has recommended that the city work with Southwest to expand the federal inspection services facility at Hobby, to support scheduled commercial international service. "I have concluded given Southwest's existing and sizeable domestic network operation at Hobby, it would not be reasonable to require the airline to relocate to Bush Intercontinental Airport, or even conduct split operations—domestic service at Hobby and international service at Intercontinental," he said. Houston Airports commissioned two independent studies to evaluate the economic impact of international flights operated by Southwest.
[ POSTED APRIL 10, 2012 ]
Bankruptcy court restricts Pinnacle trading
Pinnacle Airlines Corp. announced April 6 that the United States Bankruptcy Court for the Southern District of New York has entered an order imposing substantial restrictions on trading in equity interests in and debt claims against Pinnacle and its affiliates. The order may be read online. Pinnacle, an airline holding company with 8,000 employees, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Flying as Delta Connection, United Express, and US Airways Express, Pinnacle’s subsidiaries operate 199 regional jets and 62 turboprops on more than 1,540 daily flights.
[ POSTED APRIL 10, 2012 ]
AirTran gets OK for Midway-Cancun service
Southwest Airlines announced April 5 that its wholly owned subsidiary, AirTran Airways, received route authority from the U.S. Department of Transportation to operate new international flights between Chicago Midway International Airport and Cancun International Airport. AirTran will offer one daily nonstop flight between the two cities beginning on June 3, subject to Mexican government approval. With a current average of 246 daily departures from Chicago Midway, the combined AirTran/Southwest is the second largest carrier in the Chicago region. The two carriers currently operate nonstop service between Chicago Midway and 58 cities.
[ POSTED APRIL 10, 2012 ]
FltOps.com announces job fairs
FltOps.com is holding a Global Pilot Career Conference and Job Fair at the Tuscany Suites and Casino in Las Vegas this Friday, April 13. In addition, a Regional Airline Pilot Job Fair will be held at the Hilton Palm Beach Airport in West Palm Beach, Fla., on Friday, May 4. Both job fairs run from 1 p.m. to 6 p.m.; registration begins at 12:30 p.m. For more information on the events, visit the FltOps website.
[ POSTED APRIL 10, 2012 ]
Pinnacle files for Chapter 11 reorganization
Pinnacle Airlines Corp. and its subsidiaries announced April 1 that they have filed voluntary bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code. Pinnacle, which operates flights for Delta Connection, United Express, and US Airways Express, said it intends to use the Chapter 11 process to continue implementing a comprehensive turnaround plan aimed at addressing operational and financial challenges in a rapidly evolving regional airline industry. During the reorganization Pinnacle plans to restructure its key operating agreements with Delta Air Lines, wind down its operations with United Airlines, conclude its essential air service flying for US Airways, and achieve cost savings from its workforce and across the organization. The carrier said Delta Air Lines will provide $74.3 million of debtor-in-possession financing. "We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term,” said Sean Menke, president and CEO. “Quite simply, our current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays, and difficulties associated with combining our operations have hindered our ability to maximize our growth potential.” Pinnacle also said its Colgan subsidiary will be ending the operation of its remaining Saab 340 and Q400 aircraft.
[ POSTED APRIL 3, 2012 ]
US Airways flight attendants reject tentative agreement
US Airways flight attendants, represented by the Association of Flight Attendants, have voted not to ratify a proposed five-year collective bargaining agreement. US Airways and AFA reached a tentative agreement on January 27 that would have covered the airline's 6,700 flight attendants. "We are obviously disappointed that our flight attendants chose to vote against ratification of a new contract, " Doug Parker, US Airways' chairman and CEO, said March 30. "This tentative agreement was the result of years of deliberate negotiations.” Parker said the carrier would consult with the National Mediation Board and AFA leadership to determine next steps. “Flight attendants have subsidized the cost of the [US Airways and America West] merger and rising fuel costs for the 'New US Airways.' Management must recognize that our sacrifices have directly contributed to the success of US Airways," said Deborah Volpe, AFA pre-merger America West president, and Mark Gentile, AFA pre-merger US Airways acting president.
[ POSTED APRIL 3, 2012 ]
US Airways launches new service to 14 cities from Reagan National
US Airways began new service to 11 communities—and increased frequencies to three others—from Washington, D.C.'s Reagan National Airport (DCA) on March 25. The airline launched nonstop flights to Birmingham, Ala.; Fayetteville, N.C.; Islip, N.Y.; Little Rock, Ark.; Jacksonville, N.C.; Memphis, Tenn.; Omaha, Neb.; Ottawa, Ontario; and Pensacola, Tallahassee, and Ft. Walton Beach, Fla. Additional flights are being added to Savannah, Ga.; Bangor, Maine, and Hartford, Conn. In addition, US Airways announced March 21 that it would begin service from DCA June 8 to San Diego and July 11 to Augusta, Ga., Minneapolis, Fayetteville, Ark., Montreal, Quebec, and Toronto, Ontario. The new flights are a part of the airline’s plan to focus on its core service areas of Washington, D.C.; Philadelphia; Phoenix; and Charlotte, N.C.
[ POSTED MARCH 27, 2012 ]
American Eagle flight attendants to push back on reorganization demands
The Association of Flight Attendants-CWA (AFA) at American Eagle, representing more than 1,800 flight attendants at the carrier, say it’s “shameful” that cuts in compensation, reduced benefits, and work rule changes are being demanded of its members—who are an instrumental part of a successful operation—as a result of bad management decisions in the larger corporation. The union said it is prepared to push back on overreaching, outrageous contract cuts presented by management March 21. “Just prior to American Airlines' bankruptcy filing, flight attendants were negotiating for a new contract and management had already agreed to significant work-rule and benefit improvements,” said AFA American Eagle President Robert Barrow. “Nothing has changed except that bankruptcy gives management a hammer and a process to demand unreasonable concessions from workers.”
[ POSTED MARCH 27, 2012 ]
Southwest takes delivery of first Boeing 737-800
Southwest Airlines on March 21 celebrated the arrival of the carrier's first Boeing 737-800 at its maintenance facility in Dallas. Employees, media, and guests had their first opportunity to see the new aircraft up close. The new jet was delivered March 8 and will undergo several regulatory and conformity procedures before it enters revenue service April 11. The 737-800 carries 175 passengers, almost 30 percent more than the 737s in Southwest’s existing fleet. Southwest plans to take delivery of 33 737-800 aircraft in 2012.
[ POSTED MARCH 27, 2012 ]
Boeing, Airbus, Embraer to collaborate on biofuel
Boeing, Airbus, and Embraer signed a memorandum of understanding March 22 to work together on the development of drop-in, affordable aviation biofuels. The three leading airframe manufacturers agreed to seek collaborative opportunities to speak in unity to government, biofuel producers, and other key stakeholders to support, promote, and accelerate the availability of sustainable new jet fuel sources. The collaboration agreement supports the industry's multipronged approach to continuously reduce its carbon emissions. Continuous innovation, spurred by competitive market dynamics that push each manufacturer to continuously improve product performance, and air traffic modernization are other critical elements to achieving carbon-neutral growth beyond 2020 and halving industry emissions by 2050, based on 2005 levels. All three companies are affiliate members of the Sustainable Aviation Fuel Users Group, which includes 23 airlines responsible for approximately 25 percent of annual aviation fuel use.
[ POSTED MARCH 27, 2012 ]
Airline trade organization seeks tax, regulatory reform
Airlines for America (A4A), an industry trade organization for U.S. airlines, on March 19 asked the U.S. government to reform federal taxes and regulations to enable U.S. carriers to compete globally on a level playing field, and to help grow the country's economy. A4A President and CEO Nicholas E. Calio detailed the excessive tax and regulatory burden faced by the airline industry and its passengers, saying it is one of the most highly regulated businesses in America—even though Congress deregulated the industry nearly 35 years ago. The 17 different federal taxes and fees have grown significantly over the same period, with passengers now paying 20 percent of a typical domestic round-trip ticket price to the government. The association warned that DOT is drafting a third consumer protection rule, which could require airlines to make all their products available through global distribution systems, and already proposed a separate rulemaking that would require airlines to report revenue information related to 19 separate items, including how much they collect for meals, drinks, and upgrades. A4A recently unveiled details of five components it says are necessary for an effective national airline policy; in addition to reforming the tax structure and regulatory environment to ensure global competitiveness, the policy identifies ways to improve the infrastructure and accelerate the deployment of the most cost-beneficial parts of NextGen.
[ POSTED MARCH 20, 2012 ]
US Airways employees to share $12 million in profits
US Airways announced March 14 that, for the second year in a row, employees will receive profit sharing checks recognizing their contribution to the company's full-year profit. US Airways reported a $111 million profit for 2011, and will pay out more than $12 million to eligible employees. Airline employees also earned more than $13 million in operational incentive bonuses over the past year, bringing the total in recognition payouts for US Airways employees to more than $25 million for 2011. Despite high fuel costs, 2011 was a profitable year for the U.S. airline industry—in February, United Continental Holdings, Inc. distributed $265 million in profit sharing to employees, and Delta Air Lines announced that its employees would receive profit-sharing payments totaling $264 million.
[ POSTED MARCH 20, 2012 ]
Horizon mechanics vote to remain Teamsters
Mechanics and related workers at Horizon Air reaffirmed their support for the Teamsters Union on March 15, voting in favor of representation by the Teamsters Airline Division. The 323 mechanics, who have been Teamsters since 2009, had the option of voting for the Teamsters Union, AMFA, or no union; the vote was 151 to 103, with 3 voting for no union. The vote follows a new contract ratified by the mechanics in December 2010 that the union said secured significant improvements in job security, as well as increased pay and benefits. "Although AMFA was able to create a representational dispute through a deceitful campaign of misinformation and untruths, our strong Teamster brothers and sisters stood their ground and beat back the raid," said Capt. David Bourne, director of the Teamsters Airline Division. "Horizon mechanics and related workers recognize the improvements the Teamsters have made for them."
[ POSTED MARCH 20, 2012 ]
New rule could exacerbate pilot shortage
The FAA has issued a highly anticipated Notice of Proposed Rulemaking that would require first officers at all airlines, including regional carriers, to hold an ATP certificate, which requires 1,500 hours of flight experience. The proposed rule resulted from the Airline Safety and Federal Aviation Administration Extension Act of 2010 and the Colgan Flight 3407 crash in Buffalo, N.Y., in 2009. Aviation International News said that neither the Regional Airline Association nor Airlines for America would comment beyond brief written statements emphasizing the need for further study of the proposal. At the same time, the Coalition of Airline Pilots Associations—representing pilot unions at American Airlines, Southwest Airlines, UPS, US Airways, and others—expressed support for the NPRM. The new rules, which are scheduled to become effective next year, could worsen “an already alarming trend toward a shortage of pilots, particularly for regional airlines, most of whose minimum hiring requirements now fall well below the 1,500 hours needed for an ATP,” AIN reported; read its full article online.
[ POSTED MARCH 6, 2012 ]
FAA issues single operating certificate to Southwest, AirTran
Southwest Airlines announced March 1 that the FAA has issued a single operating certificate for the carrier and its wholly owned subsidiary, AirTran Airways. Incorporating AirTran’s jets into the Southwest fleet—including repainting and interior configuration—is not complete, and the transition to a single ticketing system is a complex process that will take several years, although both carriers are now operating under a single set of FAA operations specifications. "We cannot overstate the significance of having received our single operating certificate—it is a monumental step in the regulatory process—and achieving it enables us to move forward with the integration of the two airlines into a single carrier,” said Mike Van de Ven, Southwest’s chief operating officer. Southwest announced plans to acquire AirTran in September 2010, and the purchase closed on May 2, 2011.
[ POSTED MARCH 6, 2012 ]
United announces progress in labor integration
United Airlines announced Feb. 28 that flight attendants represented by the Association of Flight Attendants (AFA) ratified a new labor agreement with the company. The new agreement covers approximately 15,000 United flight attendants at the company's United Airlines subsidiary. The company and AFA soon will commence negotiations for a joint collective bargaining agreement for flight attendants at United, Continental, and Continental Micronesia. Continental flight attendants ratified their collective bargaining agreement in February 2011. In addition, the Air Line Pilots Association master executive councils for both United and Continental on Feb. 27 ratified an extension of the Transition and Process Agreement reached with the company. The agreement contains modifications of the initial agreement which facilitate the conclusion of joint collective bargaining negotiations.
[ POSTED MARCH 6, 2012 ]
UPS pilots lobby LaHood before fatigue meeting
U.S. Secretary of Transportation Ray LaHood was scheduled to meet with UPS executives March 1 and reportedly planned to ask that the cargo giant voluntarily opt in to the new FAA rule on pilot fatigue. In advance of the meeting, the Independent Pilots Association—the union representing UPS pilots—appealed to LaHood to persuade all-cargo carriers like UPS to voluntarily embrace the new rules. “I applaud your initiative in seeking voluntary compliance from the all-cargo industry. We agree that legitimate reasons do not exist for these carriers to operate outside of the new science-based pilot duty and rest rules,” wrote Capt. Robert W. Travis, IPA president. “You should know that UPS has indicated, at least to me, their intent to refuse to voluntarily ‘opt in’ to the new rules.” The union said recent correspondence from UPS suggests that the company may have already decided the issue. "UPS's position on the issue is well documented. We believe that cargo and passenger carriers require different regulatory approaches to duty and rest," UPS said in a letter to the IPA.
[ POSTED MARCH 6, 2012 ]
Poll explores pilots’ sleep habits
The National Sleep Foundation's 2012 Sleep in America poll indicates that transportation professionals struggle with sleep. About one-fourth of pilots (23 percent) and train operators (26 percent) admit that sleepiness has affected their job performance at least once a week, compared to about one in six non-transportation workers (17 percent). The foundation said one in five pilots (20 percent) admit that they have made a serious error because of sleepiness. In addition, pilots and train operators are significantly more likely than nontransportation workers (6 percent each, compared to 1 percent) to say that they have been involved in a car accident due to sleepiness while commuting. Fifty percent of pilots say they rarely or never get a good night's sleep on work nights, compared to 42 percent of nontransportation workers. "We found that although pilots are especially focused on obtaining adequate sleep, one in 10 can still be classified as 'sleepy.' This is not acceptable. Who among us wants to take a one in 10 chance of flying on a plane with a sleepy pilot?" says Capt. Edward Edens of the Walter Reed Army Institute of Research. In general, transportation professionals work more varied shifts than other workers. For a complete summary of the poll, see the website.
[ POSTED MARCH 6, 2012 ]
Southwest to open Denver crew base
Southwest Airlines announced Feb. 24 that it will open a new pilot crew base at Denver International Airport in October 2012; a flight attendant crew base will follow before the end of the year. The airline's ninth crew domicile will be the base for at least 250 pilots and at least 4,000 flight attendants. "Denver is the fastest-growing city in our history, and the new crew base demonstrates our long-term commitment to the community and our successful operation at DIA," said Mike Van de Ven, Southwest's executive vice president and chief operating officer. The carrier began service to Denver on Jan. 3, 2006, with 13 daily nonstop departures to three destinations; now it operates 159 daily nonstops to 51 destinations. Southwest’s other crew bases are located at the Baltimore/Washington, Chicago Midway, Dallas, Houston, Phoenix, Oakland, Orlando, and Las Vegas airports.
[ POSTED FEBRUARY 28, 2012 ]
PSA, flight attendants reach tentative agreement
PSA, a wholly owned US Airways subsidiary, announced Feb. 23 a tentative new collective bargaining agreement with Council 75 of the Association of Flight Attendants (AFA-CWA), which represents PSA's 268 flight attendants. The AFA Master Executive Council must first approve the tentative agreement before it can be sent to its members for consideration; this first step is expected to take place in the coming weeks. The tentative agreement would cover the airline's 268 flight attendants, who are based in Dayton, Ohio; Knoxville, Tenn.; and Charlotte, N.C. "Flight attendants were adamant that our role as first responders be recognized and that this agreement ensures our future success as an airline," said L.C. Acor, AFA president at PSA President. Details of the tentative agreement will not be made public until they are presented to the carrier’s flight attendants.
[ POSTED FEBRUARY 28, 2012 ]
Air Guard leaders ask Congress to halt 'flawed' USAF budget request
Frustrated by an Air Force budget process they believe dismissed Air National Guard cost-efficiency and competence, state Guard leaders have taken their concerns to Capitol Hill. In a Feb. 27 letter to the chairmen and the ranking members of the congressional committees that will ultimately determine the defense budget, the Adjutants General Association of the United States asked lawmakers to freeze the Air Force's 2013 budget request until lawmakers can comprehensively review the submission. Adjutants general from all 50 states signed a letter that said they believe the Air Force used "flawed processes, assumptions, and criteria" to develop a budget request in which the Air Guard bears the brunt of proposed Air Force personnel and aircraft reductions. "It is counterintuitive that the Air National Guard, which comprises 21 percent of the uniformed members of the total Air Force, would bear 59 percent of the total aircraft cuts and approximately six times the per capita personnel cuts, especially in light of our country's current and foreseeable fiscal posture," they wrote, adding that they’ve asked the Air Force for more than three years for a comprehensive long-range plan. "Absent such a plan, it is reasonable to assume we will be in a continuous cycle of budget cuts that eliminate aircraft and personnel assigned to the Air National Guard by the Air Force."
[ POSTED FEBRUARY 28, 2012 ]
Flight attendant launches petition to replace American’s management
A series of YouTube videos mocking a flight attendant's bosses at American Airlines has morphed into a grassroots movement to remove the upper management team now running the airline, which filed for Chapter 11 bankruptcy protection in November 2011. The filing was followed by an announcement of extensive layoffs and planned pay cuts; while 15,000 employees expected to lose their jobs and benefits, multimillion-dollar bonuses were paid to top executives. Gailen David, a 24-year American flight attendant based in Miami, said he has been joined by thousands of supporters. A website has been created that seeks to collect 250,000 signatures on a petition that would then be sent to the judge presiding over the airline’s bankruptcy case. “It is time for fresh, visionary leadership at AA that will make it an airline that people love to fly and to be a part of once again," he said. David, who has been on a leave of absence for the past year, said the airline was not amused and threatened to terminate his employment. Visit his website.
[ POSTED FEBRUARY 28, 2012 ]
Union, trade group seek expanded crew screening program
Airlines for America, the industry trade organization formerly known as the Air Transport Association of America, and the Air Line Pilots Association, International on Feb. 15 announced their intent to expand the Known Crewmember program to more U.S. airports in 2012, following a successful test of the risk-based security program at seven hub airports. The test, launched in April 2011, enables TSA officers to verify the identity and employment status of airline pilots, who already undergo thorough criminal background and employment checks as a condition of their employment. The program allows pilots to utilize a more efficient security-screening process; both ALPA and A4A have asked TSA to include flight attendants in the future. More information is available online.
[ POSTED FEBRUARY 21, 2012 ]
AMR summarizes 2011 financials
AMR Corporation, the parent company of American Airlines, on Feb. 15 filed its annual report on Form 10-K with the U.S. Securities and Exchange Commission. The company recorded a consolidated net loss of $1.1 billion for the fourth quarter of 2011, compared to a consolidated net loss of $97 million in the fourth quarter of 2010. Excluding special items, its loss during the fourth quarter of 2011 was $209 million—which compares to a loss, excluding special items, of $69 million for the same period of 2010. For fiscal 2011, AMR recorded a consolidated net loss of approximately $2 billion, which compares to a consolidated net loss of $471 million for fiscal 2010. Excluding special items, the 2011 consolidated net loss was approximately $1.1 billion, compared to $389 million in 2010. The company said it paid nearly $2 billion more for jet fuel during 2011 than it would have paid at prevailing prices in the prior full-year period.
[ POSTED FEBRUARY 21, 2012 ]
Alaska Air Group declares stock split
Alaska Air Group announced Feb. 16 that its board of directors has declared a two-for-one stock split that will be implemented as a stock dividend. The additional shares will be distributed on March 16, 2012, to shareholders of record on March 2, 2012. The stock split will increase Alaska Air Group's outstanding shares from approximately 35.5 million shares to about 71 million shares. However, the board also approved a stock repurchase program authorizing the company to buy up to $50 million of its common stock over the next year. The company said it would finance the stock repurchases with cash on hand. Over the past five years, Alaska Air Group repurchased 8.3 million shares of its common stock for nearly $262 million.
[ POSTED FEBRUARY 21, 2012 ]
Airlines oppose White House budget proposal
Airlines for America (A4A), the industry trade organization formerly known as the Air Transport Association of America, said Feb. 13 that the White House budget proposal “to offset the deficit on the backs of airline customers, by adding even more tax increases, would impact demand for air travel and ultimately cost jobs and service to communities.” A4A said the tax increase would reduce the number of passengers flying, which in turn will prompt airlines to reduce service, impacting hundreds of thousands of jobs in commercial aviation. Over the next five years, the White House proposes tripling the aviation security tax to $7.50 for each one-way trip, generating $18 billion that would be used for deficit reduction—not on aviation security. The proposal also seeks to add a new $100 per flight tax; a portion of those proceeds also would go toward deficit reduction. The organization said airline customers pay about $61 in taxes on a typical $300 ticket today.
[ POSTED FEBRUARY 14, 2012 ]
United Continental, Delta share millions in profits
United Continental Holdings, Inc. was to distribute $265 million in profit sharing on Feb. 14 to employees based on the combined full-year financial results of its subsidiaries, United Airlines and Continental Airlines. The company said it would pay eligible employees approximately 5 percent of their annual pay. Jeff Smisek, the company’s president and CEO, planned to deliver profit-sharing checks to employees at Bush Intercontinental Airport in Houston and O'Hare International Airport in Chicago. In addition to profit sharing, employees of the combined company earned cash incentive payments totaling $40 million for on-time performance during 2011. In addition, Delta Air Lines told its 80,000 employees worldwide that they would receive profit-sharing payments totaling $264 million on Feb. 14. Delta CEO Richard Anderson told airline employees that the payment would equal 4.85 percent of their annual pay. Delta also paid approximately $60 million in Shared Rewards during 2011.
[ POSTED FEBRUARY 14, 2012 ]
Flight Options to buy Phenom, Nextant jets
Flight Options, LLC, announced Feb. 9 that it will build on its successful 2011 performance by continuing to expand its fractional aircraft ownership, membership, and jet card programs in 2012. “In a year when few operators took delivery of new business jets, Flight Options was aggressively investing in its business to deliver competitively priced, flexible access to aircraft that meets our clients’ business and personal travel needs,” said Kenn Ricci, chairman of the Cleveland-based company. He said Flight Options took delivery last year of jets that included 14 Embraer Phenom 300, Cessna Citation X, and Nextant 400XT aircraft. In 2012 the company will take delivery of additional Phenom 300s, part of a previously placed 100-aircraft order, as well as new Nextant 400XT aircraft—part of a 40-aircraft order for the world’s first completely remanufactured business jet.
[ POSTED FEBRUARY 14, 2012 ]
China pilot job fair adds two airlines
West Air and Skymark Airlines have joined the list of Chinese airlines that plan to hold interviews at Pan Am International Flight Academy’s All China Job Fair later this month in Miami and Las Vegas. Other participating airlines are Shenzhen Airlines, Air China, Hainan Airlines, Tianjin Airlines, Sichuan Airlines, Xiamen Airlines, Chengdu Airlines, Spring Airlines, Okair, and Business Aviation Asia. The free pilot job fair is scheduled for Feb. 23 and 24 at Pan Am’s headquarters on Miami International Airport, and for Feb. 26 at Pan Am’s Las Vegas training center in Henderson. Pilots will have the opportunity to learn more about the growing China market and be interviewed for currently available positions; qualified applicants may receive on-the-spot conditional offers. Already, 800 pilots have registered for the three-day event. Interested candidates can register by visiting the Pan Am website or by calling 877-394-2118.
[ POSTED FEBRUARY 14, 2012 ]
American outlines restructuring plan
American Airlines on Feb. 1 outlined a business plan to transform the airline and restore it to industry leadership, profitability, and growth. The plan targets an annual financial improvement of more than $3 billion by 2017: $2 billion in cost savings—including average annual employee-related savings of $1.25 billion—and $1 billion in revenue enhancements. “Change will be difficult, particularly as we will be ending this process with fewer people, but it is a necessity,” said Tom Horton, chairman and chief executive officer. The carrier will overhaul its fleet, reducing fuel, maintenance, and financing costs. All employee groups, including management, must reduce their total costs by 20 percent to save an average of $1.25 billion annually from 2012 through 2017; the workforce will be reduced by about 13,000 employees. American said it will outsource some aircraft maintenance work and plans to close the Fort Worth Alliance Airport maintenance base, as well as terminate its defined benefit pension plans and discontinue subsidizing future retiree medical coverage for current employees. A summary of the company’s proposed changes to the American Pilots Association contract can be read online; a more detailed look at the proposed contract changes can be seen here.
[ POSTED FEBRUARY 7, 2012 ]
Southwest, AirTran flight attendants ratify seniority integration agreement
Flight attendants from Southwest Airlines, represented by the Transport Workers Union (TWU) 556, and AirTran Airways, represented by the Association of Flight Attendants (AFA) Council 57, have voted to ratify their seniority integration agreement, Southwest announced Jan. 31. The agreement, reached tentatively late last year, integrates the two groups' seniority lists. Southwest Airlines finalized closing on its acquisition of AirTran Holdings, Inc., on May 2, 2011. The TWU represents about 9,800 Southwest flight attendants, and the AFA represents almost 2,400 AirTran flight attendants. Pilots also have completed the seniority integration negotiation process, and mechanics from both airlines are currently reviewing their tentative agreement.
[ POSTED FEBRUARY 7, 2012 ]
World Airways, North American Airlines reorganizing
Global Aviation Holdings Inc., the parent company of World Airways, Inc. and North American Airlines, Inc., announced Feb. 5 that it has commenced a voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company said the move was necessary to achieve a cost and debt structure that is industry competitive, adding that the company and its subsidiaries will continue to operate normally. Although the company had negotiated the reduction of certain obligations, said Robert Binns, Global’s chairman and chief executive officer, its fleet is too large and labor costs exceed industry standards given the current global economic environment. Global, through its World Airways and North American Airlines subsidiaries, is the largest provider of military transport services through the Air Mobility Command.
[ POSTED FEBRUARY 7, 2012 ]
Global airline capacity grows for 9th consecutive month
Scheduled flights worldwide continued to grow in February, with airlines providing 5 percent more flights. Because of the general worldwide trend toward larger aircraft, this translates to a slightly larger capacity increase of 6 percent, as the average available seats per aircraft in February 2012 nudges towards 127, versus 125 in the same period last year. February marks the ninth consecutive month of growth compared to the same period last year, according to the latest statistics from OAG. Market demand continues to increase in Central and South America and across the Middle East, all recording double-digit growth; those regions are surpassed only by the total volume growth in Asia Pacific of 8.9 million seats in February compared to twelve months ago. Asia Pacific and South America represent 64 percent of the total worldwide volume growth for the period. More detailed OAG statistics for the month are available online.
[ POSTED FEBRUARY 7, 2012 ]
Most carriers report profitable Q4, calendar year
- US Airways Group. Fourth quarter net profit excluding net special charges was $21 million, compared to a fourth quarter 2010 net profit excluding net special charges of $28 million. Full year 2011 net profit excluding net special charges was $111 million, compared to a full year 2010 net profit excluding net special credits of $447 million. The decline in profitability from 2010 to 2011 was attributed to a 38-percent increase in consolidated fuel price.
- Delta Air Lines. Delta's net income for the December 2011 quarter was $379 million, a $221 million improvement year over year. Delta's net income for 2011 was $1.2 billion, excluding special items. The company said it offset $3 billion in higher fuel expense through strong revenue performance and its fuel hedging program.
- JetBlue Airways. Jet Blue’s pretax income was $40 million in the fourth quarter, compared to pretax income of $13 million in the year-ago period. For the full year 2011, JetBlue reported pretax income of $145 million, compared to $161 million for 2010; net income for 2011 was $86 million, compared to $97 million in 2010.
- United Continental Holdings. United Continental Holdings, Inc reported full-year 2011 net income of $1.3 billion, excluding $483 million of special items consisting primarily of integration-related costs. Including special items, UAL reported full-year 2011 net income of $840 million. The company reported fourth-quarter net income of $109 million, excluding $247 million of special items; including special items, UAL reported a fourth-quarter 2011 net loss of $138 million. Consolidated fuel expense for 2011, excluding the impact of hedges, increased 36.5 percent, or $3.4 billion, year-over-year.
- Alaska Air Group. Alaska Air Group Inc. reported fourth quarter 2011 GAAP net income of $64.0 million, compared to GAAP net income of $64.8 million in 2010. Excluding fuel hedge gains of $43.1 million ($26.8 million after tax), the company reported fourth quarter 2011 net income of $37.2 million, compared to net income excluding special items of $47.4 million in 2010. The company reported full-year 2011 GAAP net income of $244.5 million, compared to $251.1 million in the prior year.
[ POSTED JANUARY 31, 2012 ]
FMLA extended to cover flight crews
Nearly two decades after the Family Medical Leave Act (FMLA) was signed into law, its coverage has been extended to air carrier flight crews. Secretary of Labor Hilda Solis on Jan. 30 announced the implementation of the Airline Flight Crew Family and Medical Leave Act. Association of Flight Attendants-CWA (AFA) President Veda Shook attended the announcement. "This is an exciting day for flight attendants and flight crew across the nation as Secretary Solis announces this proposed rule that provides peace of mind and real protections for hundreds of thousands of families," said Shook. The act requires most employers to provide job-protected unpaid leave to employees who have worked 60 percent of a full-time schedule over the course of a year. However, the courts and federal agencies narrowly defined the "full time schedule" as that of a traditional 40-hour work week, thereby excluding employees whose schedules do not fall within the traditional 9-to-5 workday. The Airline Flight Crew FMLA corrects this misinterpretation of the original legislation, extending coverage to flight crews.
[ POSTED JANUARY 31, 2012 ]
Flight attendants, US Airways reach tentative agreement for merged contract
Union negotiators representing flight attendants at the merged US Airways and former America West Airlines announced agreement on a single, combined contract late Jan. 26. The Association of Flight Attendants, CWA – AFL-CIO (AFA) presidents of each pre-merger airline—Mike Flores, representing premerger US Airways flight attendants, and Deborah Volpe, representing America West employees—issued a joint statement. "This is about moving forward. These negotiations have been arduous, frustrating, and far too long. Until we gained the right to federal mediation with oversight by the National Mediation Board, management did not take our members seriously. Now, they do.” Details of the proposed agreement will not be released until union leadership conducts a full review and presents it to the carrier’s 6,700 flight attendants for ratification, they said.
[ POSTED JANUARY 31, 2012 ]
American seeks to void leases on 18 aircraft
In a recent filing with the bankruptcy court, American Airlines asked to terminate leases on 18 aircraft—10 Boeing 757-200s, 6 McDonnell-Douglas MD-80s, and one Airbus A300 10—the Fort Worth Star-Telegram reported in its Sky Talk blog."In view of the large number of aircraft American Airlines has on order, it seeks to accelerate its fleet renewal strategy. To meet all of these goals, the Debtors are analyzing the benefits of rejecting leases, selling and abandoning owned aircraft and engines, and contemplating methods for the return and surrender of rejected and abandoned aircraft and engines," American told the court. Thirteen of the aircraft, which range from 17 to 23 years old, are stored in the New Mexico desert.
[ POSTED JANUARY 31, 2012 ]
US Airways Express flight attendants take step toward strike
Following a week of what they described as fruitless negotiations with PSA Airlines management, flight attendants at the carrier initiated a process that could lead to a strike if management fails to negotiate a new agreement. On Jan. 23 the Association of Flight Attendants-CWA (AFA), representing the flight attendants, asked the National Mediation Board to declare that negotiations are at an impasse and proffer arbitration, which would lead to a 30-day cooling-off period before a strike deadline could be set. Last September, PSA flight attendants voted overwhelmingly to authorize a strike if management failed to negotiate a new contract. Mediated negotiations stalled over compensation, retirement, insurance, and related issues. PSA is a wholly-owned subsidiary of US Airways Group, Inc., and operates 330 daily departures to more than 62 destinations as a US Airways Express carrier.
[ POSTED JANUARY 24, 2012 ]
UPS pilots file preliminary statement on duty time exclusion
The Independent Pilots Association, representing UPS pilots, on Jan. 23 filed its preliminary statement of issues as ordered by the U.S. Court of Appeals for the D.C. Circuit in its challenge to the FAA's exclusion of cargo operations from its final rule on pilot flight and duty time. The association said it is challenging the exclusion of cargo operators because the FAA's decision to discard its August 2010 proposal that uniformly applied science-based flight and duty time rules to both passenger and cargo carriers was capricious; the FAA's arbitrary assumptions and estimates in its cost/benefit analysis lack substantial evidence; the FAA acted illegally by not allowing review and comment on its cost/benefit calculations; and because the FAA ignored the fatigue facts and factors that are more prevalent in cargo operations, specifically nighttime operations and those flying across multiple time zones. The court has ordered the FAA to file the certified index of the record, essentially a catalog of the regulatory docket, by February 6, which will provide IPA its first chance to review the entire record used by the FAA to determine the final rule.
[ POSTED JANUARY 24, 2012 ]
Delta, WestJet begin codeshare
Delta Air Lines and WestJet on Jan. 17 announced a codesharing agreement on flights within the United States and Canada, further expanding the partnership between the two carriers. Last year, the two airlines began an interline agreement that allowed customers to purchase connecting flights on one ticket, receive boarding passes for all segments at their first check-in, and tag bags through to their final destination. Under the first phase of the new codeshare agreement, which became effective Jan. 23, Delta placed its code on WestJet flights to more than 15 cities, while the WestJet code was added to Delta flights in five markets.
[ POSTED JANUARY 24, 2012 ]
Travel agents set sales record last year
ARC, the financial settlement link between airlines and travel sellers, reported Jan. 12 that the consolidated dollar value of airline tickets sold by U.S.-based travel agencies in 2011 increased 6.11 percent year-over-year compared to 2010, and 25 percent over 2009. Ticket sales in 2011 were a record $82.1 billion, compared to $77.4 billion in 2010, and $65.8 billion in 2009. The increased sales came in spite of a drop in the number of ticket transactions reported. Passenger segments in 2011 fell 2.9 percent, to 370.1 million segments—compared to 381.1 million in 2010—while reflecting a 2.9 percent increase over 2009.
[ POSTED JANUARY 17, 2012 ]
New Southwest cabin design adds seats
Southwest Airlines on Jan. 17 introduced a cabin update for its 737-700 aircraft. It said update utilizes durable and environmentally responsible products to reduce waste and create weight savings, while increasing customer comfort. In addition, the new interior design provides the potential for greater revenue by increasing the number of passenger seats from 137 to 143—and simultaneously increases under-seat room for carryon luggage. In a $60 million project, Southwest will begin retrofitting its current fleet of 372 Boeing737-700s with the newinteriorin March 2012, with completion in 2013. Other aircraft in the Southwest fleet are being evaluated for possible retrofit, and AirTran Boeing 737-700s and 717s also will be retrofitted as those aircraft are converted into the Southwest brand over the next several years.
[ POSTED JANUARY 17, 2012 ]
American Eagle ditches turboprops at DFW
American Eagle Airlines, the regional affiliate of American Airlines, is replacing all of its ATR turboprop aircraft operating from Dallas/Fort Worth International Airport. Fourteen markets throughout Arkansas, Louisiana, Missouri, Oklahoma, and Texas will have all-jet service beginning Jan. 31; they will be served by a combination of 37-, 44-, and 50-seat jets. American Eagle also announced that it would launch daily nonstop jet service between Dallas/Fort Worth and Garden City, Kan., beginning April 9. The carrier operates more than 1,500 daily flights to over 170 cities on behalf of American Airlines.
[ POSTED JANUARY 17, 2012 ]
Southwest announces new Atlanta-Los Angeles route
Southwest Airlines on Jan. 11 announced plans for one new daily nonstop flight between Hartsfield-Jackson Atlanta International Airport and Los Angeles International Airport beginning June 10; it will be in addition to the three daily flights operated by AirTran, Southwest's wholly-owned subsidiary. Southwest will begin service to the Atlanta market on Feb. 12, 2012, with 15 daily nonstop flights to five destinations; two additional destinations will be added in March.
[ POSTED JANUARY 17, 2012 ]
United, flight attendants reach tentative agreement
United Continental Holdings, Inc. announced Jan. 9 that the United Master Executive Council of the Association of Flight Attendants (AFA) told the carrier that it had approved a tentative agreement between AFA and UAL for a flight attendants' contract, and is recommending the tentative agreement to United flight attendants for their consideration and ratification. The agreement is the result of an expedited mediation process that began last September, and provides for numerous improvements, including increased wages and a signing bonus. "We appreciate the hard work of both negotiating teams in reaching an agreement that is fair to United flight attendants and fair to the company, and recognizes the great work by our flight attendants," said Sam Risoli, a senior vice president for United. The tentative agreement covers more than 15,000 flight attendants; those at subsidiary Continental ratified their collective bargaining agreement in February 2011. "This agreement is a step in the right direction. Our flight attendant community has waited for much needed improvements to our contract," said Greg Davidowitch, AFA president at United Airlines.
[ POSTED JANUARY 10, 2012 ]
Boeing increases 737 production rate
Boeing on Jan. 10 successfully achieved a production rate of 35 airplanes a month for the Next-Generation 737, with the delivery of the first airplane produced at the new rate to AWAS Aviation Services, Inc. Norwegian Air Shuttle will lease the airplane from AWAS. While employees focus on stabilizing the production rate at 35 a month, investments are under way to increase the rate to 38 737s a month in second quarter 2013 and 42 a month in the first half of 2014. Employee teams implemented new lean improvements to create production capacity. Leaders of the 737 program acknowledged those contributions at an employee celebration at the Renton factory.
[ POSTED JANUARY 10, 2012 ]
Fairs scheduled for China pilot jobs
Pan Am International Flight Academy will join forces with WASINC, China's largest airline pilot leasing company, to host the All-China Pilot Job Fair at Pan Am's Miami and Las Vegas training centers. The Miami Job Fair will be held Feb. 23 and 24 at Pan Am's headquarters at the Miami International Airport, and the Las Vegas Job Fair will be held Feb. 26. Pilots will have the opportunity to pass scheduled sim evaluations, and meet and greet airlines hiring pilots. Qualifying pilots will also receive on-the-spot conditional offers for jobs flying the Boeing 777, 747-400, 767, and 737NG; Airbus A340, A330, and A320; and Embraer EMB190 and EMB145. Ten major China airlines as well corporate jet operators will interview pilots. Space is limited, and candidates are encouraged to register early for this free pilot career fair by visiting the Pan Am website or by calling Pan Am at 877-394-2118.
[ POSTED JANUARY 10, 2012 ]
FAA issues new rule on pilot fatigue
U.S. Transportation Secretary Ray LaHood and FAA Acting Administrator Michael Huerta announced a sweeping final rule Dec. 21 that will overhaul commercial passenger airline pilot scheduling to ensure pilots have a longer opportunity for rest before they enter the cockpit. “This is a major safety achievement,” said LaHood. “This new rule raises the safety bar to prevent fatigue.” The Department of Transportation identified the issue of pilot fatigue as a top priority during a 2009 airline Safety Call to Action following the crash of Colgan Air flight 3407. The FAA launched an aggressive effort, using the latest research on fatigue, to create a new pilot flight, duty, and rest proposal, which the agency issued on September 10, 2010. “Every pilot has a personal responsibility to arrive at work fit for duty. This new rule gives pilots enough time to get the rest they really need to safely get passengers to their destinations,” Huerta said. Under the new rule, flight and duty requirements vary based on what time the pilot’s day begins; the allowable length of a flight duty period ranges from 9 to 14 hours for single-crew operations. Flight time is limited to eight or nine hours. The rule sets a 10-hour minimum rest period prior to the flight duty period, a two-hour increase over the old rules, and mandates that a pilot must have an opportunity for eight hours of uninterrupted sleep within the 10-hour rest period. The FAA expects pilots and airlines to take joint responsibility when considering if a pilot is fit for duty, including fatigue resulting from pre-duty activities such as commuting. The estimated cost of this rule to the aviation industry is $297 million but the benefits are estimated between $247 million and $470 million, the agency said, adding that it would be too costly to cover cargo operators under the new rule compared to the benefits generated; it encourages cargo operators to opt into the new rule voluntarily. The final rule will take effect in two years; an FAA fact sheet is online.
[ POSTED JANUARY 3, 2012 ]
…and cargo pilots challenge exclusion
The Independent Pilots Association, which represents pilots for UPS, on Dec. 22 filed a petition with the U.S. Court of Appeals challenging the FAA's exclusion of cargo operations from the new flight and duty time rule. “To potentially allow fatigued cargo pilots to share the same skies with properly rested passenger pilots creates an unnecessary threat to public safety,” said Capt. Robert Travis, IPA president. “We can do better.” Pilot union leaders at UPS and FedEx sent a joint letter to President Obama strongly opposing any cargo exemption from proposed new regulations. Travis was joined by ALPA President Lee Moak and ALPA FedEx Master Executive Council Chairman Scott Stratton in sending the letter. "We strongly request that you direct the Office of Management and Budget to require 'One Level of Safety' with respect to fatigue mitigating rules," wrote the union leaders. Travis said the statement sends a clear and unambiguous message to the White House. "This letter is in response to an eleventh-hour move by the cargo aviation lobby attempting to kill years of effort to incorporate science-based fatigue rules into the FARs," he added.
[ POSTED JANUARY 3, 2012 ]
Study finds link between airline profitability, accident rates
Airlines’ accident risk is highest when they are performing very close to their financial targets, according to a study by a professor in Brigham Young University’s Marriott School of Management. “The accident risk went down as they got further away from their financial goals in either direction,” said Peter Madsen, assistant professor of organizational leadership and strategy. “Speaking generally, airlines are safest when their financial performance is either much better or much worse than it has been in the recent past.” The study, which will be published in a forthcoming issue of the Journal of Management, looked at 133 U.S. airlines from 1990 to 2007. Madsen’s complex statistical analysis showed that for every 10 percent deviation in an airline’s actual financial performance from its profitability goal, there is a 7 percent decrease in the likelihood of an accident. “I don’t think people are saying consciously, ‘We really want to hit this financial target, let’s cut back on our safety expenditures,’” Madsen said. “But it’s well documented that people will take risks to achieve goals, even if they don’t realize they’re doing it.” Additional financial incentives for safety “aren’t a silver bullet,” added Madsen, who has researched that subject. But they can balance the significance of financial or operational goals in employees’ minds. More information on his research is available online.
[ POSTED JANUARY 3, 2012 ]
United mechanics ratify agreement
United Airlines, a wholly owned subsidiary of United Continental Holdings, Inc., on Dec. 29 announced that mechanics represented by the International Brotherhood of Teamsters ratified a new labor agreement with the company. "This is another important step which benefits our co-workers and contributes to the future success of United," said Jim Keenan, senior vice president of Technical Operations for United. "We now turn our attention to a joint agreement for all United and Continental mechanics, and are committed to reaching an agreement that is fair to the company and fair to our employees." The new agreement covers approximately 5,500 United mechanics. The company and the IBT will soon begin negotiations for a joint collective bargaining agreement for mechanics at both the United and Continental subsidiaries. Continental mechanics represented by the IBT ratified their collective bargaining agreement in November 2010. The Teamsters said the contract provides significant wage increases, maintenance of health care benefits, and enhanced job security protections. Passage of the agreement is a major step toward achieving their ultimate goal of a single combined contract for the 9,000 Teamster mechanics at the merged carrier.
[ POSTED JANUARY 3, 2012 ]
Delta announces new domestic hub at LaGuardia
Delta Air Lines announced Dec. 16 its schedule for a new domestic hub at New York's LaGuardia airport. The carrier said it would significantly expand its service at the airport, adding more than 100 new flights and 29 new destinations. Delta said the hub will be the largest single expansion by any carrier at LaGuardia in decades, increasing flights by more than 60 percent. By summer 2012, the carrier said it will operate 264 daily flights from the airport. The additional LaGuardia flights were made possible under an agreement between Delta and US Airways to exchange takeoff and landing rights at LaGuardia and Reagan National Airport in Washington, D.C., which was completed Dec. 13. Delta said it will add nonstop service to Miami, Dallas/Fort Worth, Houston, Charlotte, Denver, Pittsburgh, Milwaukee, and Cleveland; the new flights—and increased frequency to other business markets—will begin March 25 and July 11, 2012, depending on the market.
[ POSTED DECEMBER 20, 2011 ]
Flight attendants praise mediation board decision
The United States Court of Appeals for the District of Columbia has upheld a National Mediation Board (NMB) decision to stop assigning "no" votes to workers who do not participate in union elections. "This decision confirms that the National Mediation Board has full and absolute authority to bring democracy to union elections in their jurisdiction,” the Association of Flight Attendants-CWA (AFA) said in a statement. “We urge Congress to move forward with a clean, long-term reauthorization of the Federal Aviation Administration.” The union said ideologues have held up its passage “on the hope that they could strip aviation workers of their democratic right of free and fair union elections.” AFA represents nearly 60,000 flight attendants at 24 airlines.
[ POSTED DECEMBER 20, 2011 ]
FedEx orders 767, 777 freighters
FedEx Express has ordered 27 Boeing 767-300 Freighters and has exercised existing options for two additional 777 Freighters, The Boeing Company announced Dec. 15. Boeing said the new 777 Freighters will support FedEx's growth in the international cargo market, and that the 767 Freighter will be a new model for the Memphis, Tenn.-based freight carrier's fleet of more than 690 airplanes. Adding the 767 Freighters will enable FedEx to replace less efficient, medium widebody cargo airplanes. The 767 Freighter, based on the 767-300ER (extended range) airliner, can carry approximately 58 tons of revenue cargo with intercontinental range. FedEx, the largest operator of 777 freighters, has 17 of them in operation, and orders and options for an additional 41 aircraft.
[ POSTED DECEMBER 20, 2011 ]
Boeing delivers 7,000th 737
The 7,000th Boeing 737 to come off the production line is flying for Dubai-based flydubai. The airplane, delivered Dec. 16, is the carrier’s 14th Next-Generation 737-800. Boeing said the 737 is the best-selling commercial jetliner of all time with total orders exceeding 9,300 airplanes, including orders for the new 737 MAX. With more than 5,400 airplanes in service, the 737 represents more than a quarter of the total worldwide fleet of large commercial jets flying today. More than 358 airlines in 114 countries fly the model.
[ POSTED DECEMBER 20, 2011 ]
Bankruptcy to accelerate American fleet changes
AMR Corporation, the parent company of American Airlines and American Eagle that voluntary filed for Chapter 11 bankruptcy reorganization Nov. 29, has announced to lenders and aircraft lessors that it is accelerating its fleet upgrade plan, using the bankruptcy process to reject some leases and renegotiate payment rates for others. The company said that some aircraft leases will be rejected soon, while others may be rejected later. In addition, to conserve liquidity it plans to make payments when due of aircraft rent and mortgage principal and interest only on certain aircraft in the fleet. The airline recently announced a significant order for Airbus and Boeing narrowbody aircraft. “We cannot afford to retain all the aircraft currently in the American and American Eagle fleets at their current rates, and so we have no choice but to make substantial reductions in the cost of the aircraft which we retain. Moreover, in view of the large number of aircraft we have on order from Airbus and Boeing, we also seek to accelerate our fleet renewal strategy and, as a result, we do not require the use of all aircraft currently in our fleets,” wrote Beverly K. Goulet, vice president of corporate development and treasurer, in a letter to aircraft lessors, lenders, and trustees. “We have been developing a comprehensive plan which re-values aircraft based on current values, taking into account required maintenance, the need to phase out older types, and desired fleet efficiencies. We will be sending proposals to many of our aircraft lessors, lenders, and trustees soon.”
[ POSTED DECEMBER 13, 2011 ]
Pinnacle seeks to modify contracts, agreements
Pinnacle Airlines Corp. announced Dec. 8 that it has commenced a comprehensive program to reduce short- and long-term costs and enhance liquidity. The airline plans to seek modifications to its agreements with its mainline airline partners, equipment lessors, debt holders, real property lessors, and vendors, as well as to work with its pilots and other employees (both union and nonunion) to reduce labor costs. Pinnacle said that as part of its efforts, it will examine and further rationalize its business lines, organizational structure, and executive and director level functions. "Pinnacle Airlines Corp. is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year," said Sean Menke, the company's president and CEO. Pinnacle, with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc.; it operates 279 aircraft on more than 1,540 daily flights for Delta Connection, United Express, and US Airways Express.
[ POSTED DECEMBER 13, 2011 ]
Boeing decries continued Airbus subsidies
Boeing issued a statement Dec. 9 after the U.S. Trade Representative continued its efforts to ensure European Union compliance with last June's WTO ruling regarding illegal subsidies to Airbus. "Boeing is disappointed that EADS/Airbus and European governments have failed to comply with the WTO's landmark ruling against launch aid and other forms of illegal government subsidies that Airbus has received for more than 40 years,” the company said. “Boeing strongly supports all the efforts by the U.S. Trade Representative to seek full compliance with the removal of all the illegal government subsidies to Airbus—particularly market-distorting launch aid, the most pernicious form of subsidy Airbus was found to have received. There can be no compliance with the WTO's ruling that ignores any noncommercial launch aid that Airbus is currently receiving for the A350. Despite the very clear WTO ruling, EADS/Airbus and European governments have failed to remove outstanding subsidies. This illegal subsidization of Airbus products—plane after plane—is unsustainable and must stop now."
[ POSTED DECEMBER 13, 2011 ]
American, AMR file for bankruptcy reorganization
AMR Corporation, the parent company of American Airlines and American Eagle, announced Nov. 29 that it has filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. The company made the move in an effort to assure its long-term viability by achieving a cost and debt structure that is industry competitive. The Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs, and other obligations. Most of American’s legacy-carrier competitors went through this process in recent years. AMR’s board has named Thomas W. Horton chairman and chief executive officer, succeeding Gerard Arpey, who on Nov. 28 informed the board of his decision to retire. The carriers said they are operating normal flight schedules. "This was a difficult decision, but it is the necessary and right path for us to take—and take now—to become a more efficient, financially stronger, and competitive airline,” Horton said. “We must address our cost structure, including labor costs, to enable us to capitalize on [our] foundational strengths and secure our future. Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable.”
[ POSTED DECEMBER 6, 2011 ]
United, Continental receive single operating certificate
United Continental Holdings, Inc. announced Nov. 30 that it had received FAA approval for a single operating certificate. While significant from an operational policies and procedures perspective, the move does not change how customers interact with the airline. Customers of United and Continental will continue to shop for flights, obtain seat assignments, and check flight status on each carrier's respective website until the company migrates to a single passenger service system in the first quarter of 2012. The two carriers went through a rigorous 18-month process of aligning operating policies and procedures to obtain the single operating certificate.
[ POSTED DECEMBER 6, 2011 ]
Southwest announces new Air Tran flights to Mexico
Southwest Airlines announced Dec. 5 that its wholly owned subsidiary AirTran Airways has received route authority approval from the U.S. Department of Transportation to operate international flights to new destinations in Mexico beginning as early as May 24, 2012. AirTran's new flights will include one daily roundtrip between Orange County, Calif., and Cabo San Lucas/San Jose del Cabo, and one daily roundtrip between Orange County and Mexico City. The carrier also will initiate four weekly roundtrips between San Antonio and Cancun, as well as one daily roundtrip between San Antonio and Mexico City. To support the new international flights out of Orange County's John Wayne International Airport, a market not currently served by AirTran, it will add one daily roundtrip flight between San Francisco and Orange County, and another between Las Vegas and Orange County, beginning June 3, 2012.
[ POSTED DECEMBER 6, 2011 ]
Horizon Air pilots to receive wage increase
Horizon Air and its pilots, represented by the International Brotherhood of Teamsters APA Local 1224, announced Dec. 1 that the neutral arbitrator responsible for setting the 2012-2013 wage structure has ruled that there should be a 2.8 percent increase for all Horizon Air pilots in 2012 and an additional 1.2 percent increase for first officers in 2013, as outlined in the proposal by the union. "Despite our different views on compensation levels, Horizon and the IBT always agreed about one thing: the professionalism of our highly skilled pilots and the great value they add to Horizon every single day," said President Glenn Johnson. In November 2010, Horizon's pilots ratified their current five-year contract, which becomes amendable December 2015. It includes a clause specifying that wages will be reexamined by the company and the union twice, once in 2011 and again in 2013. Horizon and the IBT will return to the negotiating table by late 2013 to attempt to arrive at an agreement for 2014-2015 wages. If a tentative settlement is not achieved and ratified, the decision will shift to an outside neutral arbitrator as it did this year.
[ POSTED DECEMBER 6, 2011 ]
JetBlue wins slots at LaGuardia, Reagan National
JetBlue Airways announced Dec. 1 that it has completed an agreement to purchase eight slot pairs each at New York LaGuardia and Ronald Reagan Washington National airports recently made available in an FAA auction. A slot pair provides authorization for one daily arriving flight and one daily departing flight, allowing the carrier to double its service at both airports in 2012. The slot pairs were relinquished by Delta Air Lines and US Airways as part of a transfer agreement announced May 23 in which Delta acquired 132 slot pairs at LaGuardia from US Airways, and US Airways obtained 42 slot pairs at Reagan National from Delta.
[ POSTED DECEMBER 6, 2011 ]
Boeing rolls out first 737 completed at higher rate
Boeing rolled out its first Next-Generation 737 completed at the increased production rate of 35 airplanes a month on Dec. 4. The new 737-800 was towed to nearby Renton Field where Boeing conducts functional testing and first flights for all new airplanes. The airplane, which still must undergo testing and painting, will be delivered to Norwegian Air Shuttle in early January. Some work teams have been preparing for the increased production rate more than a year. Boeing has announced it will increase the 737 rate to 38 airplanes a month in the second quarter of 2013 and to 42 airplanes a month in the first half of 2014.
[ POSTED DECEMBER 6, 2011 ]
Republic pilots vote to authorize strike
Pilots for three airlines owned by Indianapolis-based Republic Airways Holdings have voted to authorize their union leaders to call a strike against the company should it become necessary. International Brotherhood of Teamsters Local No. 357 members who fly for Chautauqua, Republic Airlines, and Shuttle America overwhelmingly voted "yes" in a strike authorization election that closed Nov. 22. Union representatives and the company have been in federally mediated contract negotiations under the Railway Labor Act; all scheduled mediation sessions have concluded. The vote means union leaders can exercise pilots' legal right to strike upon release from the National Mediation Board, but does not force the union to call a strike, the union said. The pilots’ contract has been amendable since 2007. Local 357's leadership has willingly limited contract negotiations to four critical sections: outsourcing, compensation, displacements/vacancies, and scheduling. "We don't want to strike," explained Pat Gannon. "However, we need the company to understand that it is in everyone's best interest to treat pilots fairly and with respect. We have pilots who work long hours, but still can't feed their families." First officer pay has topped out and continued increases in benefit costs have resulted in what is essentially a pay cut for many, he said.
[ POSTED NOVEMBER 29, 2011 ]
Most requested charter legs reported
Ever wonder what the most frequently requested charter-flight routes are? The most popular routes searched for by customers are to "tourist" destinations California and Florida, with four of the six most popular routes ending in Florida, reported EmptyLegMarket LLC, an online clearinghouse for empty-leg flights, based on a study of more than 11,000 flight requests from its website.
The top 10 most frequently searched routes:
- California to Florida
- California to California (intra California)
- New York to Florida
- New York to Nevada
- Texas to Florida
- New Jersey to Florida
- New York to New York (intra New York)
- California to Texas
- Virginia to California
- Texas to New York
This kind of information can help jet operators shift their fleet around in order to get more utilization out of their jets, said Elliott Schwartz, director of operations for EmptyLegMarket. The company consolidates on-demand empty-leg flights onto one website, allowing customers to identify the best options and values for private jet charter, and then connects the potential passenger directly with the operator. Chartering an empty-leg flight can save up to 50 percent of the cost of a normal charter, he said.
[ POSTED NOVEMBER 29, 2011 ]
Boeing’s 100th Next-Gen 737-900ER goes to Tajikistan
Boeing's 100th Next-Generation 737-900ER has been delivered to Tajikistan-based Somon Air, Boeing announced Nov. 22. To date, the extended-range jet has logged 414 orders from 16 customers. More than 6,000 jets have been ordered from the Next-Generation 737 family, of which some 3,800 have been delivered. The higher-capacity, longer-range derivative of the 737-900 was launched in July 2005 with an order for 30 airplanes from Indonesia's Lion Air and introduced into service in April 2007; it replaces the larger, single-aisle Boeing 757, which ceased production in 2004.
[ POSTED NOVEMBER 29, 2011 ]
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