Airlines' Quarter Signals Strength to Come
By Ted Reed 03/28/11 - 10:16 AM EDT
ATLANTA (TheStreet) -- The first quarter of 2011 may be a defining period in the recent history of U.S. commercial aviation, because it demonstrated that the industry has likely developed a capacity to weather sudden and dramatic cost challenges.
As fuel prices rose rapidly during the quarter, airline fares increased along with them, in "an unprecedented display of pricing discipline in this industry, to make sure we're getting the price of our product covered," said Delta(DAL_) President Ed Bastian at last week's J.P. Morgan transportation conference. "We've had eight [fare] increases since the start of the year, four of those led by Delta."
At the conference, both United(UAL_) CEO Jeff Smisek and US Airways(LCC_) US Airways President Scott Kirby proclaimed they had never seen anything like it. The industry has had "a round of price increases that has been faster than I've seen in 16 years in the industry," Smisek said.
Kirby noted that "the last six to eight weeks have given us one really good data point that the industry has restructured." After oil prices began to rise, "the industry responded more aggressively than I have ever seen," he said, adding that industry earnings this year are likely to be similar to down only slightly from last year. The industry made about $2.3 billion in 2010, reversing a year-earlier $3.2 billion loss.
Historically, airlines as a group have been unable to move quickly to recoup lost revenue because someone always held out, limiting the scope of fare increases. In the early 1990s, floundering, bankrupt Eastern kept fares low as it spent its creditors' money. In the middle of the last decade, Southwest(LUV_), protected by wise fuel hedging at a time when few competitors had capital to allocate to hedging, resisted efforts to boost fares.
Those days appear to have ended, not only because the top seven airlines are financially healthy, but also because the three low-fare carriers -- soon to be two low-fare carriers following the Southwest/AirTran merger -- have generally signed on to more rational pricing.
Not only were airlines able to raise prices during the quarter and access billions of dollars in new revenue from fees for services, they also have continued to maintain an unprecedented level of capacity discipline. For instance, Bastian said Delta will move to reduce second-half capacity by four points "from where plans sit today," with most of the cuts coming in the transatlantic.
The impact of all these improvements is evident in the estimates of analysts surveyed by Thomson Reuters, who project that for the full year, only one of the big seven carriers will lose money. In the generally unprofitable first quarter, two airlines will make money while JetBlue (JBLU_) will break even, they project. In the second quarter, profits are expected at every carrier.
Without question, American(AMR_), the one airline expected to lose money for the year, is also the the industry's most intriguing story.
The expectation of a loss is logical, given that American was the only major carrier to lose money in 2010. Once the biggest carrier, American slipped to third as the other two members of the industry's big three expanded through mergers. American, the only carrier never to submit to bankruptcy, also has the highest labor costs.
An American Turnaround?
Nevertheless, it is possible that 2010 marked the start of a turnaround for American. The carrier finally secured anti-trust immunity for a transatlantic joint venture with partners, a privilege its rivals have enjoyed for years. Soon thereafter, regulators approved transpacific anti-trust immunity for a joint venture with partner Japan Air Lines. That arrangement will be implemented April 1. American has said that the immunities combined with a new route strategy should add $500 million in new income, most of it this year.
Additionally, during 2010, American's pilots elected to replace a union president who had systematically opposed every single change the airline sought to make during his tenure -- even when the changes clearly benefited his members.
So far, analysts are not buying the American turnaround story. Current year estimates range from a loss of $3.36 to a profit of 60 cents, the widest range of any airline, with a consensus loss of $1.17.
But the experts are not always right. Just as an example, they nearly uniformly failed to perceive that during its mid-decade bankruptcy, Delta was remaking itself into a profitable company.
In a report last week, Morgan Stanley analyst William Greene rated American overweight, but urged that the carrier follow Delta and others in reducing capacity. "It is clear to us that the seeming lack of urgency with respect to addressing higher fuel prices is weighing on investor sentiment in AMR," Greene wrote. "We believe that an incremental [second half] capacity revision is necessary to rebuild management credibility and thus, investor sentiment."
-- Written by Ted Reed in Charlotte, N.C.
>To contact the writer of this article, click here: Ted Reed
5 Fees Airlines Should Add Now
By Ted Reed 03/23/11 - 10:42 AM EDT
CHICAGO (TheStreet) -- We know that many people like to complain about airline fees, but for a change, let's look at this phenomenon in a different way.
It is in all of our interests -- since we can't personally invest in Amtrak -- that U.S. airlines make money. That way, they can continue to assure safe, reliable travel, buy more new airplanes and expand human interaction throughout the world.
Unfortunately, airlines historically have lost money. As US Airways(LCC_) CEO Doug Parker has said, it is counter to our national interest for an industry so important to be so fragile economically.
What we need, therefore, is to have more airlines add more fees -- and soon.
Sometimes it seems that airlines are hesitant to add fees because they fear the media will say bad things about them. But here at TheStreet, we have no fear.
We compiled a list of five fees the airlines should add right now. We had help from Jay Sorensen, president of the airline marketing consultant for Shorewood, Wis.,-based IdeaWorks, and Raphael Bejar, CEO of Paris-based Airsavings, which develops ancillary products for airlines.
Sorensen noted that if you look around the world, "whenever there is something that could be charged for, there is already a case where that is being done at some airline somewhere in the world. It's just that many of these [practices] are not prevalent in the U.S."
We should note, however, that U.S. airlines are testing various new fees and in some cases are routinely selling them. We say stop the tests. Implement the fees!
Read on for the five we most need, right now.
"When passengers can order a meal during the booking process, magical things happen," Sorensen said. "The airlines have to provide something attractive because suddenly, they are selling it. That means the food will be fresher, because airlines will not be so concerned about spoilage."
Today's airline food, by contrast, is selected partially on the basis that it is less likely to spoil quickly.
United(UAL_) is already testing this concept. Last year, the carrier introduced the sale of "champagne-style" brunches and premium meals for about $24.95, on 37 flights worldwide. The flights include transcontinental trips between New York's Kennedy Airport and both Los Angeles International Airport and San Francisco International Airport, as well as transatlantic flights to and from Frankfurt and London Heathrow.
"About 90% of the customers who bought the meals were satisfied or very satisfied," said United spokesman Rahsaan Johnson. "Of the 10% who weren't satisfied, many tied their dissatisfaction to the selection they chose rather than with the product overall."
Johnson said United is likely to expand its testing.
Many airlines already do this in one form or another.
For $9 to $19 each way, American Airlines(AMR_) offers a "boarding and flexibility package" upon buying tickets that includes early boarding and a $75 credit if passengers need to change their itinerary.
United offers a package, starting at $19, that includes early boarding and the ability to use a premium line to get through security at more than 70 airports as a well as a ticket counter line offered to premium passengers.
At Southwest(LUV_), you can pay $10 for Early Bird boarding, which enables you to board early and find the seat you want.
Also, at US Airways, early boarding is offered to passengers with a US Airways Dividend Miles MasterCard. (Disclosure: this reporter lives in Charlotte and has such a card. His only complaint: "Why does every single person who lives in Charlotte have zone two boarding?")
"With the ability to get on the airplane first, you have a guaranteed shot at overhead bin space," said Sorensen.
Surely that is worth paying for, especially if you have one of those rollaboard suitcases that takes up too much space in the overhead bin.
To an extent, some airlines are already doing this as well. US Airways, for instance, enables passengers who book online to pay extra for an exit row seat. The practice was pioneered by AirTran(AAI_). Even JetBlue(JBLU_), which touts "more" legroom in every seat as well as free food and wireless, sells a product called "Even More Legroom," which includes four extra inches of legroom and early boarding, starting at $20.
At airport self-service check-in machines, American Airlines' "Express Seats" allows coach passengers to select a seat closer to the front of the plane. The service, which also includes Group 1 boarding, costs $19 to $39 one way depending on the length of the flight -- and availability.
Delta(DAL_) offers a product called "Economy Comfort," which is really not that economical: it costs $80 to $160 each way. The package includes extra legroom, extra seat recline, early boarding and free alcoholic drinks.
Sorensen said that going forward, "all seats will be assigned on a fee basis, which will vary by location." The fallback option will be to get an assignment at the gate right before departure.
This one is so obvious that US Airways tried it for seven months a couple years ago. The carrier gave up, beaten back by media hysteria and a lack of competitive response.
Obviously, it makes no sense for an airline to spend the money to lift 400 cans of soda on a fully-stocked Airbus A320 six miles into the atmosphere and fly them around, with fuel costs high, to only give them away.
At a 2008 investor conference, President Scott Kirby noted that without free drinks, "the cabin environment is much calmer and more efficient." In the past, he said, because drinks were free, nearly every passenger had one. The charge also meant that carts no longer clogged the aisles, restroom lines diminished, less trash was left on board and the frequency of aircraft catering diminished. This one is so obvious that US Airways tried it for seven months a couple years ago. The carrier gave up, beaten back by media hysteria and a lack of competitive response.
Obviously, it makes no sense for an airline to spend the money to lift 400 cans of soda on a fully-stocked Airbus A320 six miles into the atmosphere and fly them around, with fuel costs high, to only give them away.
At a 2008 investor conference, President Scott Kirby noted that without free drinks, "the cabin environment is much calmer and more efficient." In the past, he said, because drinks were free, nearly every passenger had one. The charge also meant that carts no longer clogged the aisles, restroom lines diminished, less trash was left on board and the frequency of aircraft catering diminished.
Airsavings' Bejar said the proper approach to selling insurance is "to show passengers the value, then they are happy to pay."
Among the products AirSavings has developed for the Czech carrier SmartWings is weather protection. A passenger flying from Prague to Nice to lie on the beach by the Mediterranean can pay about $17 to $28, and then, for each day it rains a quarter inch or more in Nice, can collect about $43. The airline collects 8% to 12% of the cost of this insurance, which is sold with the ticket.
U.S. airlines all sell travel insurance with tickets, but Bejar said only about 2 to 3% of passengers buy it. At SmartWings and Dublin-based Aer Arann, the purchase rate is closer to 20% or 30%. Why? "We increased the perceived value by including 30 minutes of free WiFi access during the trip, either in the airport or in the hotel" -- but not in the airplane -- he said.
Airlines get 20% of this revenue.
One more product, being prepared for Spanish carrier AirEuropa, is Genius 365, a concierge service. It provides assistance in finding anytime a traveler might need -- finding a cab, having a doctor visit the hotel, restaurant bookings, even rescheduling a flight in the event of a travel disruption. The cost is $35, for a trip, no matter what the length is.
Airlines get about 15% of the revenue.
What's not to like?
-- Written by Ted Reed in Charlotte, N.C.
American Airlines to restart Chicago-Dublin route
American Airlines to restart route between Chicago and Dublin, Ireland
Friday March 25, 2011, 2:17 pm EDT
CHICAGO (AP) -- American Airlines is resuming daily nonstop flights between Chicago and Dublin, Ireland, starting April 5.
The airline said Friday that it will use a Boeing 767-300 plane that houses 225 seats for the route.
American Airlines said beginning April 6 it will move its operations to Dublin's new Terminal 2, giving travelers the ability to pre-clear U.S. immigration and customs before boarding their flight. Once passengers arrive at Chicago O'Hare International Airport they will be treated as domestic instead of international passengers.
American Airlines, American Eagle and AmericanConnection(at) serve 250 cities in 50 countries with more than 3,600 daily flights on average.
American Airlines Scraps 188 Miami Flights After Fire Causes Fuel Shortage
By Mary Jane Credeur and Sonja Elmquist - Mar 25, 2011 1:53 PM MT
AMR Corp. (AMR)’s American Airlines scrubbed 188 Miami flights today, almost a third of its daily schedule there, after a fire destroyed the main pumping system at the airport’s fuel farm.
The March 23 blaze at Miami International Airport forced American to use 10 tanker trucks to haul fuel to the tarmac, so refueling now takes as long as five hours on wide-body planes such as Boeing Co. (BA) 777s, said Andrea Huguely, an airline spokeswoman. The process usually takes 45 minutes, she said.
“We can’t utilize the underground system that would normally pump fuel into the planes,” Huguely said. Relying on the tankers is “like trying to fill up an aircraft with an eyedropper.”
Today’s cancellations added to 190 flights scrapped yesterday, and more delays and dropped flights are likely into next week, Huguely said in a telephone interview. Fort Worth, Texas-based American accounts for three-fourths of the airport’s traffic and has about 600 flights a day there.
Replacing the previous system of 14 pumps will take at least two months, an airport spokesman, Greg Chin, said by telephone.
Miami International has been using temporary pumps that aren’t as fast as the original system, and will install high- performance units by next week with output similar to the peak flow of the destroyed system, Chin said.
Six Tanks
The airport has a three-day supply of fuel stored in six tanks holding 1 million gallons (3.79 million liters) each, and contracts its fuel services from New York-based Allied Aviation Services Inc., Chin said.
American is refueling planes at other airports when possible, and some flights are making stops at Orlando or Fort Lauderdale to take on fuel, Huguely said.
Passengers flying to, from or through Miami are being allowed to rebook flights without penalty, American said in a statement.
AMR fell 1 cent to $6.50 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have tumbled 17 percent this year.
Miami is the 12th-busiest airport in the U.S., with almost 36 million travelers last year, according to Airports Council International. American uses Miami as a gateway for its 29 daily flights to Mexico and the rest of Latin America, Huguely said.
Delta Air Lines Inc. (DAL), the second-biggest carrier at Miami International, hasn’t had to cancel any flights because it is fueling planes at its hometown hub in Atlanta, said Anthony Black, a spokesman.
Atlanta was the top U.S. destination from Miami in 2010, with about 11 percent of passengers, according to the federal Bureau of Transportation Statistics, followed by Chicago’s O’Hare airport, New York’s LaGuardia and Dallas-Fort Worth.
To contact the reporters on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net; Sonja Elmquist in New York at selmquist1@bloomberg.net
American’s flight attendants forbidden to strike
March 25, 2011, 3:01 p.m. EDT
By Christopher Hinton, MarketWatch
NEW YORK (MarketWatch) — The U.S. isn’t allowing flight attendants at financially strapped American Airlines to walk the picket lines any time soon, and that could change the tone of labor negotiations across the industry, some experts said Friday.
The National Mediation Board, the U.S. agency that referees labor-management relations for airlines, has ignored a request made a year ago by the Association of Professional Flight Attendants, asking the federal government to release it from negotiations for what’s called a 30-day cooling-off period, which then allows for a strike.
Profiling of Muslim-AmericansThe Michigan Chapter of the Council on American Islamic Relations has received dozens of complaints from Muslim-Americans about being targeted for harassment when crossing the Canada-U.S. border.
For almost three years, American Airlines flight attendants have been in talks with management, seeking improved wages and benefits as well as more job security. But management has refused to deal until the union allows it more scheduling flexibility for workers in order to increase productivity.
The NMB later said the carrier’s fragile finances and the weakened national economy would weigh heavily on its decision, according to the union.
The NMB said it would not comment on any ongoing labor negotiation.
“The political reality is, to a large extent, defined by the state of the economy,” said APFA President Laura Glading in a statement. “Consequently, it is clear to us that the White House will avoid any kind of disruption. And we cannot lose sight of the fact that the National Mediation Board answers to the White House.”
It’s a clear signal to any union, at American or elsewhere, that trying to win a contract that would result in an unsustainable outcome won’t be supported by the government, said Jerry Glass, a labor expert at F&H Consultants Group
“If a union has a demand on the table that can be shown by management that it is unsustainable, that it would put the airline at financial jeopardy... you will remain in negotiations,” he said.
“I think this will put people back at the table, and American will likely get the productivity changes it wants,” said Bill Swelbar, an airline industry expert at Massachusetts Institute of Technology.
American Airlines’ parent, AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 6.50, -0.01, -0.15%) , is the only major carrier forecast to post annual losses over the next two years, based on a survey of analysts by FactSet Research.
“While American Airlines’ lagging performance is not our fault, it is clearly becoming our problem,” said Glading.
Christopher Hinton is a reporter for MarketWatch based in New York.
Boeing's new 747 completes first test flight
SEATTLE (Reuters) – Boeing Co's 747-8 Intercontinental, the new passenger version of its legendary jumbo jet, completed its maiden flight without a hitch on Sunday, marking a key milestone for the aircraft model more closely associated with Boeing than any other plane.
The behemoth began its first test flight from Boeing's Paine Field north of Seattle into clear blue skies at 9:58 a.m. local time. The take-off, witnessed by thousands of Boeing employees and aviation enthusiasts, occurred almost 42 years after the first flight of the original 747, which later became one of the most recognized planes in the world.
After almost four and half hours in the air, the red and white plane landed safely at Boeing Field just south of central Seattle.
The 747-8 Intercontinental will seat 467 passengers, 51 more than the current version of the 747. It promises to burn less fuel and offer more passenger comforts. The plane also boasts new wings, a new tail, state-of-the-art engines and a new cockpit.
The 747 was the world's largest airplane until 2005, when Airbus unveiled its 525-seat A380.
Boeing has taken orders for 33 747-8 passenger planes, according to the company website on Friday. The plane lists at $317.5 million.
Germany's Lufthansa has ordered 20 of the planes, and is set to be the first airline to bring the new jumbo into service early next year.
Production of the new 747 has been delayed as has the mid-sized 787 Dreamliner, a carbon-composite plane, which represents a bigger leap in technology than the revamped 747-8.
The stronger-selling freighter version of the 747 has already flown and is due to be delivered in mid-2011 -- 18 months later than first planned. Boeing has sold more than 70 747-8 freighters.
(Reporting by Bill Rigby in Seattle and Kyle Peterson in Chicago; Editing by Diane Craft)
Lufthansa CEO ‘Shocked’ by Japan Nuclear Emergency as BA Crews Leave Tokyo
By Cornelius Rahn and Steve Rothwell - Mar 17, 2011 3:43 AM
Deutsche Lufthansa AG (LHA) said today that the earthquake, tsunami and nuclear crisis in Japan have left the airline industry in shock, as British Airways became the latest carrier to pull crews out of Tokyo and Cathay Pacific Airways Ltd. (293) reported plummeting travel to the country.
“The natural disaster in Japan has left us all in deep shock,” Lufthansa Chief Executive Officer Christoph Franz said today in a speech in Frankfurt. “We are extremely worried about the situation and the magnitude of the tragedy.”
Lufthansa was the first major carrier to reroute flights away from Tokyo amid fears of radioactive fallout from nuclear plants damaged following last week’s earthquake. The carrier will divert services south to Osaka and Nagoya through the weekend at least, Franz said. Italy’s Alitalia SpA reiterated that it’s also flying to Osaka to avoid the Japanese capital.
British Airways said today that it will swap crews in Hong Kong, joining other European carriers in taking steps to avoid having staff spend the night in Tokyo as the nuclear alert intensifies. While the U.K. company will continue to serve the city, customers traveling up to March 21 can cancel and claim a full refund, and tickets through April 10 can be rebooked for a later date for free, spokesman Tony Cane said in e-mail.
‘Measurable Decline’
Hong Kong-based Cathay, Asia’s third-biggest airline, said in an e-mail that trips to Japan are showing declining levels of seat occupancy, while travel in the opposite direction is “persistently high.” United Continental Holdings Inc. (UAL), the world’s biggest airline, said yesterday it has seen a “measurable decline” in demand for trips from the U.S. to Japan.
Cathay, Korean Air Lines Co., China Southern Airlines Co., Asiana Airlines (020560) Inc. all say they’ll boost capacity from Tokyo as Japan pares power usage and tackles radiation leaking from the Fukushima Dai-Ichi plant 135 miles to the north. Japan Airlines Corp. and All Nippon Airways Co., the nation’s two biggest carriers, declined to comment on demand for flights.
Singapore Airlines Ltd. (SIA) also joined the ranks of operators adding stops on Japan services to avoid having crews overnight in Tokyo, with staff changing in Osaka, and said it will delay introducing the Airbus SAS A380 superjumbo on its Los Angeles route, which has a stop-off in Tokyo, until further notice.
Qantas Airways Ltd. (QAN) budget unit Jetstar also added a halt in Osaka, while Air France is continuing to route its twice- daily Tokyo service via Seoul, spokeswoman Brigitte Barrand said. Virgin Atlantic Airways Ltd., which competes with British Airways at London Heathrow, is still basing crews in Tokyo, though the situation is under “constant review,” according to spokesman Greg Dawson.
Japan-Bound
Finnair Oyj (FIA1S), the European carrier most exposed to the Japanese market, according to analysts at Citigroup Inc., said flights are “quite full” in both directions, with Tokyo operating via Nagoya to incorporate a staff changeover.
“We have a lot of Japanese customers traveling home from Europe, and from Japan we have both passengers from Europe and Japanese passengers as it’s their holiday season there,” said Maria Mroue, a spokeswoman for Finland’s largest airline.
Stockholm-based SAS Group, the Nordic region’s biggest carrier, is also carrying many returning Japanese on trips routed via Beijing, spokeswoman Elisabeth Manzi said by phone.
“To Scandinavia from Japan we’ve had quite full flights with just some seats left,” she said.
Services operated by AMR Corp. (AMR)’s American Airlines are also “pretty much full in both directions,” International Vice President Kurt Stache said in an interview in Helsinki.
“As long as there’s demand we will continue to fly, as long as it’s a safe environment to fly into,” he said.
To contact the reporters on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net; Steven Rothwell in London at srothwell@bloomberg.net
Convenient London Express Service and New Routes by the American Airlines, British Airways, Iberia Joint Business Will Launch for Summer
New Summer Schedule Means Hourly Service in the Afternoon from New York Kennedy to London Heathrow
Symbol Price Change
AMR 6.44 -0.01
Press Release Source: American Airlines On Thursday March 17, 2011, 7:00 am EDT
FORT WORTH, Texas, March 17, 2011 /PRNewswire/ -- Summer 2011 will bring even more benefits to customers as a result of the enhanced relationship among American Airlines, British Airways and Iberia when, for the first time ever, the airlines' schedules are coordinated for flights across the North Atlantic – including American's London express service with 15 flights per day from the New York city area to London.
"Our newly aligned schedule for Summer 2011 reflects our commitment to deliver a superior travel experience for our customers. We are confident that our customers will welcome the enhanced travel options of our new joint product," said Virasb Vahidi, American's Chief Commercial Officer. "More convenient departure and arrival times and increased frequencies, in addition to our award-winning inflight service and onboard products, are just a few of the many outstanding customer benefits resulting from the launch of our trans-Atlantic joint business with British Airways and Iberia."
The new schedule alignment, which begins March 27, means customers traveling between New York's John F. Kennedy International Airport (JFK) and London Heathrow Airport (LHR) will benefit from more conveniently timed flights during peak periods in the late afternoon and evening. Customers will now have more ways to London – 15 flights a day in total between New York City (JFK/EWR) and London (LHR/LCY) – than ever before.
Previously, the 11 daily flights from JFK-LHR included five flights operated by American and British Airways that left at almost the same time. Now, those flights have been spread out to provide more departures at more desirable times throughout the day. For example, instead of the two morning flights from JFK in which both departed at 8:30 a.m., one will now depart at 8 a.m. and the other at 9:30 a.m., with both still arriving in London on the same day.
In addition to the schedule changes offering more ways to London, there are many other schedule improvements resulting from the joint business cooperation.
From Chicago to London, American and British Airways will now have close to hourly departures from 5 p.m. to 9:45 p.m. local time. Previously there was a three-hour gap in service.
Out of Miami, American and British Airways will now offer three different departure options between 5 p.m. and 9 p.m. Before, only two departure times were available for customers.
In Boston, the new flight schedule allows passengers to leave at 8 a.m. or 9 a.m. local time, still arriving the same day into London. The last flight of the day has been pushed back by more than an hour making it more convenient for customers to get in a full day's business before leaving for London.
On the other side of the Atlantic, schedules also have been aligned for customers flying to all of these U.S. destinations from London.
Additionally, customers will see new flights to new destinations this spring. Beginning April 5, American launches service from JFK to Budapest, Hungary, and on May 1, it begins a new flight from Chicago to Helsinki, Finland. Iberia begins nonstop service from Madrid, Spain, to Los Angeles on March 28 and Barcelona, Spain, to Miami service on March 29. Also, British Airways will begin service from San Diego to London on June 2.
On April 5, American will also increase service from Miami to Madrid and add a second flight from JFK to Barcelona on four days per week. British Airways will increase from two to three services a week from London's Gatwick airport to Cancun, Mexico, beginning March 27.
For further information, please contact: the following press offices:
American Airlines
+ 1 817-967-1577
British Airways
+ 44 20 8738 5100
Iberia
+ 34 91 587 74 62
American Airlines Donates MD-80 Jet to Tulsa Tech
Aircraft Provides Hands-On Experience for Future Aviation Maintenance Technicians
Press Release Source: American Airlines On Friday March 4, 2011, 10:30 am EST
TULSA, Okla., March 4, 2011 /PRNewswire/ -- American Airlines, the largest private employer in Tulsa, is donating one of its MD-80 aircraft to Tulsa Tech. The plane, which American is retiring from its MD-80 fleet, will provide students in the Aviation Maintenance Technology (AMT) program at Tulsa Tech with an opportunity to gain practical experience by working on a commercial aircraft.
Tulsa Tech offers a cutting-edge, FAA-approved curriculum to train certified technicians who can repair, maintain and inspect aircraft. The donated MD-80 will provide students with hands-on experience as they hone their newly acquired skills.
"At American Airlines, we are committed to helping future mechanics and engineers have access to the current technology and services," said Bill Collins, American's Vice President – Base Maintenance. "We are thrilled to donate one of our MD-80 aircraft to Tulsa Tech, which will help them provide a new generation with new opportunities for world-class training and practical experience."
A special donation ceremony is being held today at American's Tulsa Maintenance & Engineering (M&E) Base, which employs more than 6,500 people. American's Tulsa base is the world's largest private maintenance facility, providing heavy maintenance work for its MD-80, Boeing 737, Boeing 757 and Boeing 777 fleets. American's Boeing 767 fleet is maintained at the airline's maintenance facility in Fort Worth, Texas.
The donated MD-80 aircraft began flying for American on Aug. 27, 1985. During its life, the aircraft traveled more than 36 million miles, or roughly 75 trips to the moon and back. If the aircraft had been operated continuously, without stopping, it would have flown for 3,055 days.
"Over the past several years Tulsa Tech and American Airlines have developed a mutual partnership on many levels. Until now, one of the most appreciated has been the assistance various American Airlines maintenance personnel provided over the years, on their own time, helping our instructors," said Dr. Kara Gae Neal, Superintendent and CEO, Tulsa Tech. "We are overwhelmed with the generosity American is showing with this tremendous donation of an airworthy MD-80 aircraft. We are confident that our students will benefit from continued professional support from American Airlines."
This is the fourth MD-80 American has donated for educational purposes. The other donations include:
Feb. 9, 2011 – Aircraft provided to the Museo del Nino (Children's Museum) in San Juan, Puerto Rico
May 20, 2010 – Aircraft provided to G.T. Baker Aviation School in Miami
March 21, 2009 – Aircraft provided to the Miguel Such Vocational School in San Juan, Puerto Rico
The American Airlines Tulsa M&E Base has also donated other items to Tulsa Tech, including a Boeing 727 tail dock, wheels and brakes, CF-6 engines and an MD-80 nose cone. American maintenance employees have also volunteered their time to help instructors become experts on this new equipment.
American is replacing its MD-80 fleet with Next-Generation Boeing 737-800s. In July 2010, American announced it would order 34 additional 737-800s, to be delivered in 2011 and 2012. This order is in addition to the 84 new 737s that began entering American's fleet in April 2009, when the company launched its replacement plan for its MD-80 fleet.
Delta flight attendants sue over profit sharing
South Florida Business Journal
Date: Wednesday, March 2, 2011, 5:35pm EST
Several Delta flight attendants sued the airline Wednesday in Minneapolis claiming their profit sharing checks were lower “based solely upon their prior union membership,” according to the Association of Flight Attendants-CWA (AFA).
The suit was filed on behalf of pre-merger Northwest flight attendants, who are now Delta Air Lines employees. The union claims Delta management withheld higher profit sharing checks from more than 7,500 pre-merger Northwest flight attendants.
Delta said it has not yet been served the suit, but released a statement in response to AFA’s press release:
“Until representation is fully resolved, NMB rules require that we continue to administer two separate sets of pay, benefits and work rules. This means, for example, that pre-merger Northwest flight attendants received a separate pay increase on January 1 as well as other items that are not part of the pre-merger Delta package. Providing in addition the higher pre-merger Delta rates of pay and profit-sharing would not be equal, it would be preferential. All of our employee groups -- union or non-union -- have had pay, benefits and work rules aligned when they’ve resolved representation, not piecemeal.”
Atlanta-based Delta (NYSE: DAL) in February announced $313 million in profit sharing following a $593 million profit in 2010.
Delta has a non-union tradition and in November 2010 its flight attendants Association of Flight Attendants-CWA (AFA).
The suit was filed on behalf of pre-merger Northwest flight attendants, who are now Delta Air Lines employees. The union claims Delta management withheld higher profit sharing checks from more than 7,500 pre-merger Northwest flight attendants.
Delta said it has not yet been served the suit, but released a statement in response to AFA’s press release:
“Until representation is fully resolved, NMB rules require that we continue to administer two separate sets of pay, benefits and work rules. This means, for example, that pre-merger Northwest flight attendants received a separate pay increase on January 1 as well as other items that are not part of the pre-merger Delta package. Providing in addition the higher pre-merger Delta rates of pay and profit-sharing would not be equal, it would be preferential. All of our employee groups -- union or non-union -- have had pay, benefits and work rules aligned when they’ve resolved representation, not piecemeal.”
Atlanta-based Delta (NYSE: DAL) in February announced $313 million in profit sharing following a $593 million profit in 2010.
Delta has a non-union tradition and in November 2010 its flight attendants once again rejected union representation. But that rejection may be tossed aside by a U.S. labor board controlled by Obama administration appointees. The National Mediation Board likely will order a new election after reviewing allegations of company interference in balloting.
AFA claims it has filed hundreds of cases of election interference charges documented against Delta. The union also said it expects an investigation of the charges will lead to a new election for flight attendants.
“The AFA continues to disrespect our flight attendants and the integrity of the voting process by refusing to accept the decision of the majority of voters who clearly said they do not want AFA representation,” Delta said in its statement. “It’s time for the AFA to stop placing its own interests above the interests of our flight attendants.”
