Culture shift evident after American Airlines merger

Jason Whitely, WFAA 2:42 a.m. CST December 10, 2014

The office of American Airlines CEO Doug Parker, unsurprisingly, has an air travel theme. (Photo:  As part of a $2 billion dollar investment, American Airlines is making a number of upgrades such as satellite Wi-Fi on international flights, more tables and plugs for waiting passengers at gates, and upgraded seats on multiple types of aircraft including the Boeing 777 shown here. (Photo: American Airlines)

                   

FORT WORTH — Exactly one year after US Airways merged into American Airlines, progress is subtle, but tangible.

"We're getting a new aircraft delivery every four days and replacing an older airplane," said American CEO Doug Parker.

Attitude matters here, and it appears to originate from Parker's sixth floor corner office.
It's the first time News 8 got an invitation to visit the executive suite in years, and marks a cultural change at the Fort Worth-based carrier.

Doug Parker talks with WFAA's Jason Whitely about his first year as chief executive of the world's biggest airline. Jason Whitely / WFAA

The change isn't just characterized by stunts like the CEO dressing up as a member of the band One Direction for Halloween.

But Parker removed the security desk outside the executive offices, knocked out a wall, and opened up his private office to employees.

He rarely wears a coat or tie, and employees say Parker and other executives regularly eat in the employee cafeteria — unlike some predecessors.

"The important thing in the airline business is the people that are on the line working every day," Parker said. "Our job in management is to support those people... not to tell them what to do, but give them the tools they need to do their jobs because they know how to do it."

A year ago, Parker led the merger of US Airways into American. A single operating certificate from the FAA is expected in the next six months.

"What I hear from our customers is, 'it feels different,'" Parker explained. "The employees are engaged and excited. We have some work to do there, of course. I'm not suggesting by any means this is over, but attitude matters."

In the last 12, months, the new airline has enjoyed large profits. Just this week, American announced $2 billion in investments, including:

• new seats on several aircraft types
• satellite-based Internet access for international flights
• upgraded Admirals Club lounges
• more tables and plugs for passengers waiting at gates

Next month, American gets its first Boeing 787 Dreamliner, a lighter, more fuel efficient aircraft.
"It'll be a nice growth aircraft for the airline, and one that our customers we know will enjoy," Parker said.

American has not settled on which routes its initial Dreamliners will fly.
"The first ones that come in will fly around the United States to make sure we get all of our systems in place and get people trained on the aircraft," Parker said.

American — like all carriers — is closely watching declining fuel prices and considering whether to hedge them. If it worked, it could mean cheaper fares for passengers, and additional profits for the airline — something Southwest Airlines successfully did a few years ago.

"We look at it all the time," Parker told News 8. "We haven't made the decision to do anything in that regard historically, and we've been beneficiaries of that as prices have fallen. We continue to look at it, but at this point have not decided to do anything."

Parker also confirmed that American is still considering whether to move its headquarters to a new location in North Texas.

"I was here when we moved into this building back in 1991 when I was at American a long time ago," he said. "It's getting on in years. We think it makes sense to at least look to see if there might be something else that we could get done. We're doing that. That's all that's going on right now."
American is looking at existing buildings and property, he added, but no change is imminent.

When asked whether American would scale down or ramp up any of the US Airways hubs in Charlotte, Philadelphia, or Phoenix, the CEO said his airline remains committed to them all.
"All the hubs are doing extremely well. They're doing better than they were pre-merger," he said. "They work very well together. Each of those hubs provides a great benefit to the network in total for what they do. So we're very happy with the hub structure."

But working with labor hasn't been as easy.

"Trust is earned, and it takes time," Parker said. "While I would like it right out of the bat that everyone would trust our management team, we've gotta earn that."

American's flight attendants have already rejected a contract, and are now in arbitration.
Parker's team is currently negotiating a new pact with pilots that could also end up in arbitration if rejected by the rank-and-file.

"What we didn't want to do was have integration delayed by contract negotiations," Parker said, explaining why the company and labor unions agreed to that arbitration clause if both sides couldn't settle on a new collective bargaining agreement.

"One way or another we will get to joint contracts," he added. "They will be much better contracts than either our pilots or flight attendants had in place prior to this process."
Doug Parker is confident he will eventually earn the trust of his 120,000 employees. It's something the new CEO will need to sustain momentum at the world's largest airline.

 

Air Line Executive Resigns After Nut Dispute

SEOUL, South Korea — Dec 9, 2014, 9:28 AM ET

By YOUKYUNG LEE AP Business Writer

In this Sept. 2014 photo, Cho Hyun-ah, Korean Air's vice president responsible for cabin service and the oldest child of Korean Air chairman Cho Yang-ho, answers reporters' question during a news conference in Incheon, west of Seoul, South Korea.

Yonhap/AP Photo

Forget dust-ups over reclining seats in economy class. There's a new and exclusive twist on inflight anger: Nut rage in first class.

 

A recent Korean Air flight was delayed when its chairman's daughter, who was also vice president responsible for cabin service at the airline, ordered a senior crew member off the plane. The crime? Allowing her and other passengers in the pointy end of the aircraft to be served bagged macadamia nuts instead of nuts on a plate.

 

The executive, Cho Hyun-ah, resigned Tuesday amid a storm of public criticism in South Korea. The airline had earlier excused her behavior even as it apologized for inconveniencing passengers.

South Korean media reported this week that the flight from New York to Incheon, South Korea, returned to the gate after Cho told the head of the cabin crew to leave the plane. The reports said Cho quarreled with crew in the first-class cabin and the flight departed 20 minutes late.

Cho, 40, is the oldest child of Korean Air's chairman, tycoon Cho Yang-ho. Her two siblings are also executives at South Korea's largest airline.

 

The incident caused an uproar in South Korea where it was seen as an example of over-mighty behavior by the offspring of the moneyed elite.

 

The South Korean economy is dominated by family-controlled conglomerates known as chaebol. Family members often wield greater influence over major companies than shareholders and executives with no blood ties to the founding family. The Cho family owns about 10 percent of Korean Air Lines Co., part of a business empire than spans the travel, logistics, hotel and leisure industries.

 

Korean Air confirmed that Flight 86 was delayed at John F. Kennedy airport on Dec. 5 due to the nut incident. But the company said the decision to disembark the crew member was made by the flight's captain.

 

South Korea's government said it is investigating whether Cho violated aviation safety law. Cho could face legal action if the probe shows that she interrupted the flight or endangered safety by using threats, her status or violence.

 

Korean Air said Tuesday before Cho's resignation that it was "natural" for her to fault the crew's ignorance of procedures.

 

The airline's cabin crew is required to ask first-class passengers whether they want nuts, partly to avoid serving them to people with allergies. The nuts also should have been served on a plate.

 

The airline said it will step up training to improve customer service and safety.

 

Cho was not available for comment.

 

People's Solidarity for Participatory Democracy, a civic group, said it would file a complaint against Cho with prosecutors.

 

"The anger and the concern from the public were so big because safety and procedures related to important services were simply ignored" due to Cho's status, the group said.

Airline: 'Emotional support' pig kicked off flight for being disruptive

By Emanuella Grinberg, CNN

updated 11:36 PM EST, Mon December 1, 2014

Passenger Robert Phelps took a picture after this passenger was asked to leave a US Airways flight with her "disruptive" pig.

STORY HIGHLIGHTS

• NEW: "It looked heavy. It was not a tiny, cute little pig," passenger says
• Passengers say a pig ran up and down aisle and left a foul mess
• Pig was allowed on flight as "emotional support animal," airline spokeswoman says
• DOT says animals that provide emotional support qualify as service animals in some cases

 

(CNN) -- When US Airways passenger Robert Phelps first saw the woman coming down the aisle of the plane, he thought she had a "really big dog" or a stuffed animal thrown over her shoulder.

It was about 6:10 a.m. the day before Thanksgiving, and Phelps was waiting to take off from Connecticut's Bradley International Airport for Washington. He thought it could be a service animal, but service animals are usually in crates, he thought to himself.

 

As she got closer, there was no denying that the woman was carrying a big brown pig, perhaps between 70 and 80 pounds, Phelps said.

 

"Everybody was trying to surmise what it could be, because no one thought it was a pig," he said. "Other than a Fellini movie, where would you see a person with a pig?"

 

The passenger was allowed to bring the pig on board as an "emotional support animal" under Department of Transportation guidelines, a US Airways spokeswoman said.

 

Apparently, it was not meant to be. Before the plane took off, the passenger and her pig were kicked for being "disruptive," spokeswoman Laura Masvidal said.

 

How disruptive? Fellow passengers told the Hartford Courant that the big brown pig stank up the cabin of the tiny D.C.-bound aircraft and defecated in the aisle.

 

Phelps watched in amusement and horror as the pig began "dropping things" in the aisle while his owner stowed her belongings. When she tied him to the armrest and tried to clean up after him, he began to howl.

 

"She was talking to it like a person, saying it was being a jerk," he said. "I have no problems with babies, but this pig was letting out a howl."

 

A flight attendant asked her to move to the front of the plane, and eventually she left, he said. He took a photo of her as she walked past him.

 

"I understand dogs and cats on planes. They come in crates, but this was way too big, and it had no container," he said. "It looked heavy. It was not a tiny, cute little pig."

Why was the animal allowed on the plane to begin with? People have been bringing "emotional support animals" on planes in increasing numbers in recent years, as well as to restaurants, museums and stores.

 

In 2003, the Department of Transportation updated its policy regarding animals in air transportation (PDF) to say that "animals that assist persons with disabilities by providing emotional support" qualify as service animals.

 

It's up to airline personnel to determine whether an animal is a service animal. They can do so by seeking "credible verbal assurances"; looking for physical indicators on the animal, such as a backup or identification tag; or requesting documentation for service animals.

 

When it comes to emotional support animals, airlines may require supporting documentation from a mental health professional. The documentation should state that the passenger has a mental health-related disability and that "having the animal accompany the passenger is necessary to the passenger's mental health or treatment or to assist the passenger."

 

It is not clear whether the passenger on Wednesday's flight provided such documentation.

American Chases Delta to Provide

Cushy Seats, Onboard TV

By Mary Schlangenstein Dec 6, 2014 11:00 AM MT  

American Airlines Group Inc. (AAL) will spend $2 billion on new aircraft seats, in-flight entertainment and onboard power outlets as it chases its rivals led by Delta Air Lines Inc. in updating amenities for passengers.

The plan announced today marks a shift by the carrier to add a focus on changes that passengers will notice most. It’s also completing the basic work of meshing flight and airport operations with merger partner US Airways that has been under way during the first year of their combination.

The airline has produced record profits since the merger closed on Dec. 9, 2013, paid its first dividend since 1980 and announced a $1 billion share buyback plan. Those moves have assuaged bankruptcy creditors who ended up with stakes in the new American when it left court protection through the merger. The company’s improved financial condition will help pay for the aircraft changes. The airline’s shares have more than doubled in the past 12 months.

“In 2014, the team accomplished great things, and that gives us a lot of confidence,” Chief Executive Officer Doug Parker said in an interview. “What we are now in the position to do is to go take the product up to a level that is better than either airline had in place.”

Photographer: Brent Lewin/Bloomberg

Screens are illuminated in the economy-class cabin on board an American Airlines Group Inc. Boeing Co. 777-300ER aircraft in Hong Kong. All of American’s wide-body planes today have power in business and coach cabins, and about 89, or 58 percent, have seat-back screens in at least one cabin, the airline said.
 

By the end of this year, American will have received about 100 new aircraft while retiring older planes, swaps the carrier said will give it the youngest fleet among U.S.-based network airlines at 12.3 years. It will add 112 new planes next year, 84 in 2016 and about 300 more through 2022.

Customer ‘Enhancement’

“The act of replacing those aircraft with a brand new airplane is an enormous customer enhancement,” Parker said. They are nicer, they’re brighter and they’re more comfortable. It’s a much better flying experience.’’

All but a “handful” of American’s new aircraft will have seat-back video screens throughout. All of the planes in the carrier’s primary jet fleet now have Wi-Fi, with plans to expand to it to regional aircraft, said Joshua Freed, a spokesman.

Most of the changes announced by the Fort Worth, Texas-based carrier today involve larger aircraft used in international markets. Refurbishments already have begun on American’s Boeing Co. 777-200s and 767-300s, including in-seat entertainment or in-flight connectivity and lie-flat business class seats, with work to be finished in 2016.

Lie-flat business seats also will be added to its Boeing 757s used on international routes, while power ports and Wi-Fi will be extended throughout the plane. All of American’s wide-body planes today have power in business and coach cabins, and about 89, or 58 percent, have seat-back screens in at least one cabin, the airline said.

Delta’s Offerings

Delta has had seat-back entertainment systems on all cabins of its international fleet since 2013, said Paul Skrbec, a spokesman for the Atlanta-based airline. The carrier has standard power outlets at each seat in its BusinessElite cabin and in the first 10 rows of economy on all of its international widebodies.

United Continental Holdings Inc. (UAL) also has been upgrading its onboard power and entertainment options, with seat-back screens on most of its international aircraft, said Rahsaan Johnson, a spokesman. About 225 United planes have DirecTV, 190 have streaming for personal electronic devices and 185 have seat-back monitors in all cabins, he said.
 
Eighty-eight percent of United’s international fleet have seat-back monitors in all cabins and 80 percent have in-seat power in all cabins. The airline is installing equipment to support personal electronic devices in the aircraft that don’t have it now, Johnson said.

Current Equipment

At American, about 501, or 61 percent, of narrow-body aircraft used primarily on domestic routes today have power ports and about 74, or 9 percent, have seat-back screens in at least one cabin.
Among the renovations announced today, Airbus NV A319s, a mainstay of the US Airways domestic fleet, will get all-new seats and power outlets by the end of 2016. The airline also will add 24 economy seats that give more legroom for an extra charge.

Delta couldn’t provide a percentage breakdown for its narrow-body fleet for power and seat-back screens. All of its domestic aircraft with two-class cabins, including regional jets, have Wi-Fi, Skrbec said.
United has seat-back entertainment on 46 percent of its domestic fleet, or 237 planes, and plans to provide seat-back screens or personal device streaming in all domestic aircraft by the end of 2015. The airline also has in-seat power in at least one cabin on about 46 percent of the domestic fleet.

Easier Check-In

American announced other improvements as part of its $2 billion program, including new kiosks designed to reduce wait times at airport check-in counters worldwide by mid-2015 and 400 kiosks in gate areas for reprinting boarding passes and securing day-of-travel upgrades.

The airline will install 500 worktables with 12 power outlets each near gates at its major airports, refurbish its airport Admirals Club lounges and expand food offerings.

American will seek a single operating certificate from federal regulators and fully merge its loyalty programs in the first half of 2015, and plans to move to one passenger reservation system sometime in the second half. It also must reach combined labor contracts for the two airlines before the final integration.

To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net Andrew Pollack, Stephen West

A year into its merger with US Airways, American Airlines is flying high

Louis DeLuca/Staff Photographer

Doug Parker, chairman and chief executive officer of American Airlines Group Inc., says that American’s future is looking bright — but that it was “by no means” time to declare mission accomplished.

By TERRY MAXON tmaxon@dallasnews.com

Staff Writer

Published: 06 December 2014 10:39 PM

Updated: 06 December 2014 10:58 PM

Looking out at the crowd at a Fort Worth Chamber of Commerce breakfast last month, Doug Parker ticked off with satisfaction all the accomplishments achieved since American Airlines and US Airways merged last Dec. 9.

The two airlines have linked up their route networks. They’re sharing facilities at close to 100 airports. American began work on a new operations center. Dozens of new airplanes have arrived. Frequent fliers at one airline have been able to enjoy benefits in the other. His list went on and on.
“I’m excited to report that the future is now looking bright at American Airlines,” said Parker, chairman and chief executive officer of American Airlines Group Inc. “Our landmark merger less than a year ago created the world’s largest airline and built the foundation for building the greatest airline.”

But, as he has a number of times since he took over the airline, Parker had to add: There’s still a lot of work ahead.

Indeed, despite the fast start this year, 2015 will make or break this merger or, more accurately, tarnish its early success.

In particular, four projects have to go well to keep the merger’s progress flying along in the coming year:

First, the company has to satisfy the Federal Aviation Administration’s requirement to get a single operating certificate that will cover both American and US Airways. That should come in the first third of the year, if the current schedule holds.

Second, in the second quarter of 2015, American plans to combine the frequent-flier programs of the two carriers, AAdvantage at American and Dividend Miles at US Airways, into a single program.

Third, by the end of 2015, the company intends to combine the American and US Airways reservations system into a single system.

Fourth, American’s management and labor groups have to maneuver their ways to new joint contracts covering the separate American and US Airways employees without damaging their relationship too much.

Given what’s ahead, Parker in a recent interview acknowledged that it was “by no means” time to declare mission accomplished.

“Nothing close to it. ‘So far, so good’ is the right phrase. I don’t want to minimize that, ever, because the amount of work by the team required to get us to ‘so far, so good’ is enormous, and I feel really good about how well they’ve worked together and what they’ve accomplished,” Parker said.
“We all know it’s not done. But it gives us confidence that we’re on the right path to getting it all done in 2015.”

With huge profits already for the merged airline, American plans to announce this week that it is investing more than $2 billion in its airplanes and airports next year. That includes new interiors on several older fleets, including lie-flat seating on all its international airplanes that don’t already have that amenity; satellite-based Internet access on airplanes; and power plugs at the seats on most airplanes.

It also includes upgrading its Admirals Clubs at airports and remodeling check-in areas, including new kiosks that it says are more reliable.

Invisible task
Perhaps the most invisible of the four big tasks of 2015 will be obtaining a single operating certificate. When it is issued, the public won’t even notice.

But it has to be done before American and US Airways can begin functioning as a single airline.
Even with a single certificate, the date when US Airways disappears and only American remains is some distance in the future, and the old airplane paint jobs will remain for some time.
But for members of the two frequent-flier programs, the big change comes in the second quarter of next year when everyone will go into the AAdvantage program and the Dividend Miles program goes away.

For current AAdvantage members, the change will be irrelevant. They’ll keep their current frequent flier number. Dividend Miles members will be issued an AAdvantage number. It will be a little more complicated for people who are members of both programs.

American will ask travelers with dual memberships to “self identify” so that Dividend Miles points can be moved over to those members’ AAdvantage accounts.

AAdvantage president Suzanne Rubin said she’s confident that the switchover will go well. She’s also aware that it’s very important that American not get it wrong.

“The loyalty programs, the frequent-flier programs are one of the most personal touch points that our customers have with the airline,” she said. “It’s also one of the most important points of the integration for customers. It’s a sensitive issue.”

She noted another reason that the move to a single frequent-flier program is important: “I think that will further instill confidence in the overall integration process.”

Reservation system
If there’s one time when airline mergers get bad reputations, it’s that weekend that officials flip the switch, shut down one partner’s reservation system and put the entire burden on the other airline’s system.

Maya Leibman, American’s chief information officer who is heading the effort to get to that single reservation system, said it is difficult to overstate how important that system is.

“You can think of almost any function at an airline that involves a customer, and in some way it will touch the reservation system,” she said. That includes shopping for fares, buying a ticket, reserving a seat, getting the electronic ticket, boarding the flight and other functions.

“Whatever function, whatever business process you can think of related to the customer will most likely in some way tie back to the reservations system,” she said.

But while that’s the biggest technology task, it is by no means the only one.

At the time of the merger, American and US Airways each had about 700 systems, or 1,400 in all. By the time the integration is finished, Leibman would like to have the total down close to 700 again.
While the work has gone well so far, she said integrating the technology is tremendously challenging.
“Even though I had been doing technology before, this is unlike anything anyone has done, that anyone does in the normal course of technology,” Leibman said. “Mergers are big, hairy, complicated, emotional beasts. There’s definitely been a lot of ups and downs associated to that.”

Joint contracts
Front and center in the public’s attention right now are the battles over negotiations to put the two airlines’ labor groups under joint contracts rather than their separate American and US Airways contracts.

Flight attendants, represented by the Association of Professional Flight Attendants, on Nov. 9 turned down a joint contract by the narrowest of margins — 16 votes out of more than 16,000 cast. The matter has now been submitted to binding arbitration.

Meanwhile, American and the Allied Pilots Association have twice let deadlines pass to get a tentative agreement, and resumed negotiations last week on what might go into a joint contract covering both American and US Airways pilots. If they can’t reach agreement, that disagreement would also go to binding arbitration.

Other labor groups are waiting to see the outcome of the flight attendant and pilot contracts as they gear up for their own talks for joint contracts.

The labor talks might have gone easier for American Airlines Group if it hadn’t succeeded so spectacularly in its first year of operation.

The company reported the best first quarter profits in its history, the best second quarter, the best third quarter and expects to report the best fourth quarter when it releases 2014 results in late January.
Through Sept. 30, American has earned nearly $2.3 billion. By comparison, its best nine months before 2014 came in 1998 when it posted net income of $1.1 billion.

The consensus of investment analysts is that American will earn just over $1.1 billion in the fourth quarter, giving it $3.4 billion for the year. Compare that to its $17 billion in annual losses between 2001 and 2013, a stretch in which it lost money in all but two years.

The current consensus from analysts is that profits in 2015 will top those of 2014. They are expecting net income of $5.5 billion next year, excluding any special items and one-time charges.
And, with energy prices now plummeting, American’s profits will only go up.

Given the huge profits, employees have been pushing for profit sharing in their negotiations, even though the talks for joint contracts are limited by prior agreement and weren’t full contract negotiations.

On Wednesday, about three dozen flight attendants picketed in front of American’s headquarters, carrying signs like “Sharing is Caring.”

“We are here to let American Airlines management know that the tentative agreement that was rejected was not good enough,” Miami-based flight attendant Trice Johnson said. “And based on the unprecedented profits we’re seeing in the marketplace, we want our fair share.”
Parker acknowledged that he was surprised that flight attendants turned down their tentative agreement.

“We came into the merger with a lot of employee support for the merger, which has been great and carried us a long way and has been a huge part of us being to the point where we are so far and things going well thus far,” he said.

Both the union and management told flight attendants before the vote that they’d get $193 million in extra value in their contract if they approved the tentative agreement — much of it in pay — or $112 million if it went to binding arbitration. Therefore, Parker is somewhat puzzled by the results.
“What that says is either people didn’t believe that’s what they were voting on, which means we didn’t do a very good job of communicating, or they didn’t get the communication at all, neither of which is very good,” he said.

In summary, “I don’t think it’s a mistrust issue,” he said. “I think it’s just not working long enough together and having enough experience with each other to build that trust, and we’ll do that over the course of the next year.”

Follow Terry Maxon on Twitter at @tmaxon.

TIMELINE: Milestones since the merger
Dec. 9, 2013: American Airlines and US Airways merge to form American Airlines Group.
Jan. 7: American Airlines and US Airways begin standardizing their treatment of customers.
Jan. 13: The two airlines begin code-sharing, or putting their flight numbers on each other’s flights, to link up their two route networks.
Jan. 27: American picks Sabre for its reservation system post-merger.
Jan. 30: First US Airways airplane takes off in American’s colors.
March 31: US Airways becomes a member of the Oneworld global airline alliance led by American and British Airways.
April 3: US Airways joins American’s joint business alliance with British Airways, Iberia and Finnair.
July 7: American breaks ground on a new “integrated operations center,” which will consolidate existing AA and US Airways centers when completed in 2015.
July 23: American announces a multibillion-dollar “capital deployment program,” including its first dividend in 34 years, a stock buyback and early payment of debt.
Sept. 19: Association of Professional Flight Attendants and American negotiators reach a tentative agreement on a joint contract.
Sept. 25: American says it will launch flights from D/FW to Beijing in May 2015.
Oct. 20: The US Airways and American cargo divisions are combined.
Oct. 28: American announces it will combine US Airways’ Dividend Miles frequent-flier program into American’s AAdvantage program in second quarter 2015.
Nov. 9: Flight attendants reject their tentative agreement by 16 votes.
Terry Maxon

12 Surprising Things a Flight Attendant Can't Do for You (So Stop Asking)

Leah GinsbergDecember 2, 2014

Stop annoying your flight attendant. (Izabela Habur/Getty Images)

Yes, flight attendants bring you headphones, yummy snacks, and coffee. But the notion that they are “waitresses in the sky” went out with the term “stewardess.” Flight attendants are professionals who are there to keep you safe.

(Fun fact: Harvard has a higher student acceptance rate than Delta does for flight attendant applicants.)

Still, somehow passengers expect FAs to cater to their every whim. While some requests are just obnoxious (Can you hold my crying, drooling, poop-machine of a baby?), others are literally off limits. Yahoo Travel spoke to Shawn Kathleen, a former flight attendant and founder of PassengerShaming.com, to find what your flight attendant is just not allowed to do for you. 

 

1. Give you any kind of medication 

Nope, your flight attendant can’t even give you an aspirin. They’re not allowed according to regulations, explains Kathleen. There may be some meds on board that they can release to a medical doctor in case of an emergency, she explains, but for a regular Joe on an average flight, if you need an Advil, you have to bring your own.

 

2. Stow your bag for you

Photo: CandyBoxImages/Thinkstock

And here you thought it was their job to do stuff like this. Nope. Flight attendants are actually not permitted to lift your bags because it causes too many injuries — a huge worker’s comp issue. “The rule is, if you can’t lift it into the overhead bin yourself, check it,” says Kathleen. A flight attendant can help you push your bag further into the bin once it’s up there or help you close the door, but that’s about it.

Related: Are the Flight Attendants Talking About Me? Know Your Airplane Slang!

3. Call ahead to hold a connecting flight

The captain isn’t going to hold the plane for little old you. (Thinkstock)

People ask all the time, says Kathleen, but “it’s not going to happen.” And they can’t ask the captain to make a call either.

4. Ask the captain to fly faster

“But at least that request makes us laugh,” says Kathleen. Just another reason to make sure you leave enough time between flights when booking a connection.

5. Accept a cash tip the first time you offer

Or often the second. But the third time might be the charm. Though rules vary with airlines, it’s often the case that you have to offer multiple times before a flight attendant is permitted to accept cash. However, they are usually allowed to receive gifts. “Everyone appreciates a box of chocolates or a Starbucks card,” says Kathleen.

 

6. Have a cocktail with you on the plane

No, she can’t have a drink with you. (Thinkstock)

It’s not you, it’s them. “We’re not allowed to drink even a drop of alcohol when we’re working,” says Kathleen. “Just like the pilot can’t drink, neither can the flight attendants. We’re randomly tested, because our job is to keep you safe.”

7. Kick off a service animal – even if you’re allergic

"By law, we can’t remove a service animal who’s there to aid someone with a disability," explains Kathleen. If you’re allergic, you’re the one who will have to leave and take another flight.

8. Make people move seats

You can ask someone nicely, but no matter how badly you want to sit with your pal, a flight attendant cannot force anyone to change seats.

9. Let you sit in business or first class, even if there obviously are empty seats.

Photo: Virgin America/Facebook

“You have to pay for those seats,” says Kathleen, whether in miles or money. “I know it sucks, but if you want to sit there, you have to upgrade properly.”

10. Allow you to bring your own alcohol on board and make a cocktail

"Most airlines will make the flight attendant confiscate it if she sees it, and you’ll have to fill out a report, and it opens a whole can of worms,” says Kathleen. Even if an airline did let you bring the alcohol on board, we’d have to hold it and pour it for you, adds Kathleen. “We can’t have people getting intoxicated, so we need to have a way to decide whether or not to serve you," she explains. 

11. Escort you off the plane, even if you need help

"We can call someone to meet you," says Kathleen, "but as long as there is still even a single passenger on the plane, we are not allowed to step off ourselves according to regulations." If a minor needs assistance or someone really wants the flight attendant’s help, he or she will have to wait to be the last person off the plane.

12. Pass out pens on an international flight 

Come prepared to fill out your customs card. (spacebahr/Flickr)

Gone are the days when the airline and flight attendants would provide pencils to fill out your customs cards. “We don’t have a supply of pens to give out, so you’ll have to use your own,” says Kathleen. 

Pilot strike grounds half of long-haul flights at Lufthansa

17 minutes ago                         

          

        

.                                                                

 

FRANKFURT (Reuters) - Pilots at Lufthansa started their second strike this week on Thursday, grounding about half of scheduled long-haul flights at the German flagship carrier, in a drawn-out dispute over an early retirement scheme.

Pilots' union Vereinigung Cockpit (VC), representing about 5,400 Lufthansa pilots, is fighting to retain with no changes a scheme allowing pilots to retire at age 55 and still receive up to 60 percent of their pay before regular pension payments start at 65.

Lufthansa has said it would not accept a demand that new pilots, as well as those already with the company, should be able to retire at 55.

It offered VC mediation on Wednesday in hopes of resolving the dispute in time for the busy Christmas holiday season.

The Germany-wide strike, the tenth this year, started at 02:00 GMT on Thursday (9 p.m. EST on Wednesday) and is to last until 22:59 GMT (5.59 p.m. EST). It forced Lufthansa to cancel 37 long-haul flights and six cargo flights.

Domestic and European routes, as well as flights of Lufthansa's units like Germanwings, Austrian Airlines and SWISS are not affected.

Industrial action in Lufthansa's dispute with the pilots has already wiped 160 million euros ($200 million) off the airline's operating profit this year, not including this week's two walkouts.

Lufthansa's board on Wednesday approved plans to expand its low-cost operations as it battles to compete with budget carriers such as Ryanair  and easyJet  and Gulf operators including Emirates, Etihad and Qatar.

(Reporting by Maria Sheahan; Editing by Muralikumar Anantharaman)

Southwest Airlines projects 6% capacity growth in CY2015 as long-haul from Dallas ramps up

CAPA > Aviation Analysis > Southwest Airlines projects 6% capacity growth in CY2015 as long-haul from Dallas ramps up

20th November, 2014

inShare

© CAPA

Southwest Airlines is forecasting solid unit revenue growth in CY2015 as it joins the rest of its US airline peers in growing capacity year-on-year. The airline projects a 6% expansion in supply largely driven by increasing stage length as it capitalises on the lifting of long haul flight restrictions from its Dallas Love Field headquarters.

The airline believes it can drive unit revenue growth in CY2015 at the same rate as its projected capacity increase while decreasing unit costs between 1% and 2%.

All the US major airlines appear to be adding capacity at a faster rate in CY2015 than during the last couple of years, which is raising some concern that a supply-demand imbalance could occur.
But for now all the airlines including Southwest believe their expansion is justified, and do not feel any pressure to refine their projections.

 

Longer stage lengths drive roughly half of Southwest’s planned ASM growth

Approximately half of Southwest’s forecasted 6% ASM growth in CY2015 is being generated by longer stage lengths

Southwest is resuming capacity expansion in CY2015 after keeping its supply essentially flat year-on-year in CY2014. During a recent discussion with investors airline CEO Gary Kelly predicted that for the next several years after CY2015, Southwest is likely to grow its US domestic capacity in the low single digits. Although Southwest is expanding its transborder service to the Caribbean and Latin America, international flights will still represent a fraction of its ASM deployment in CY2015 – roughly 1%.

Approximately half of Southwest’s forecasted 6% ASM growth in CY2015 is being generated by longer stage lengths. With the full repeal in Oct-2014 of the Wright Amendment that prohibited certain long haul flights from Dallas Love Field, Southwest is adding service to key markets from its headquarters to 17 cities by the end of Nov-2014 (see background info).

Southwest Airlines CY2015 capacity projections broken out by trips, seats per trip and stage length

Source: Southwest Airlines

Southwest Airlines CY2015 capacity projections broken out by international, slot purchases and Dallas long-haul

Source: Southwest Airlines

Southwest estimates that its stage length from the airport will grow 70% year-on-year in CY2015

As a result of the new service from Dallas Love Field, Southwest estimates that its stage length from the airport will grow 70% year-on-year in CY2015. In early Nov-2015 Southwest remarked that the new markets from Love Field were recording load factors in excess of 90%. Some of that is no doubt due to promotions offered by the airline.

Approximately 2% of Southwest’s anticipated capacity growth in CY2015 stems from slots it acquired at Washington National and New York LaGuardia airports that were divested by American Airlines in order to gain approval from the US government for the American-US Airways merger. Through a combination of obtaining slots from American and those held by AirTran, which it acquired in CY2010, Southwest now offers 33 daily roundtrips from LaGuardia and 44 from National.
The airline highlighted it is now the second largest airline operating from Washington National, and data from CAPA and OAG show that for the week of 17-Nov-2014 to 23-Nov-2014 Southwest holds a 15% seat share at the airport. US Airways remains the leading airline with a nearly 40% share.

Washington Ronald Reagan National Airport capacity by airline (% of seats): 17-Nov-2014 to 23-Nov-2014

Source: CAPA - Centre for Aviation and OAG

Spirit Airiines adds international flights from Houston ahead of Southwest

Southwest officially began operating international service under its own banner in CY2014, assuming routes operated by AirTran. Presently it serves San Juan, Cancun, Montego Bay, Aruba, Los Cabos, Mexico City, Nassau and Punta Cana. During CY2015 it is adding flights from Baltimore to San Jose, Costa Rica and is seeking approval for the launch of service from Orange County to Puerto Vallarta. Mr Kelly stated that Southwest should add two more international markets in CY2015.
The airline should be revealing international destinations from Houston Hobby in the not too distant future as its new international terminal at the airport is scheduled for completion in late 2015. Ahead of the completion of the new terminal, Southwest plans to add service from Houston to Aruba in Mar-2014.
Spirit Airlines is also making an international push from Houston Intercontinental in CY2015 with the introduction of service to Los Cabos, Cancun and Toluca Mexico and the Central American markets of Managua, San Jose, San Pedro Sula and San Salvador.
United serves all of those market from Houston Intercontinental (operating to Mexico City instead of nearby Toluca), and Southwest no doubt has examined many of the destinations Spirit is adding ahead of Southwest’s international push from Hobby. It is not clear if Southwest considered an international expansion by Spirit from Houston as it was evaluating the market potential from Hobby; but Southwest may elect to add markets where it does not compete directly with Spirit.

Presently, Mexico represents about 33% of Southwest’s international seat deployment

Presently, Mexico represents about 33% of Southwest’s international seat deployment, and previously the airline has stated its desire to see a full open skies agreement between the US and Mexico.

Southwest Airlines international capacity by country (% of seats): 17-Nov-2014 to 23-Nov-2014

Source: CAPA - Centre for Aviation and OAG

See related report: Spirit Airlines’ possible flights from Houston could dampen Southwest’s ambitions

Southwest projects a more normalised operating fleet in CY2015

As its integration of AirTran comes to a close by YE2014, Southwest will move closer to a fully operational fleet. During the integration aircraft have been out of service for reconfiguration in the Southwest single class layout.
Southwest estimates that during CY2015 it will have 20 fewer aircraft idle than in CY2015. As the aircraft return to operations, “we are generating a low cost capacity that will fund Dallas Love, Washington Reagan, New York LaGuardia and international,” Southwest CFO Tammy Romo recently explained to investors.

Southwest Airlines aircraft on property vs aircraft available for service: CY2011 to CY2014

Source: Southwest Airlines

Southwest sees some yield pressure in CY2014 from increased stage length

As Southwest joins other airlines in concluding that is planned capacity growth will be executed in an efficient manner, it does acknowledge that the higher stage lengths and roughly 20% of its markets under development until Apr-2015 “are a headwind to yields”, said Ms Romo. However, she concluded that Southwest will produce favourable margins “because we are funding this growth with minimal incremental cost through better fleet utilisation and fleet gauge”.
Southwest believes it can generate unit revenue growth during CY2015 that is line with its projected 6% capacity increase. With yields being pressured from an increase in stage length, Southwest will drive some of its revenue growth by pushing higher loads. The airline explained that it is rotating some shorter haul routes out of Love Field that have lower load factors for longer-haul routes that could generate higher loads.

Fleet modernisation drives lower unit costs for Southwest in CY2015

Southwest projects a 1% to 2% decline in its unit costs during CY2015 driven by increased aircraft utilisation and its fleet modernisation that entails phasing out its Boeing 737 Classic aircraft. CAPA’s fleet database shows that the airline presently operates 120 737-300s.

Southwest Airlines Fleet Summary as of 20-Nov-2014

Source: CAPA Fleet database

The airline estimates the mix of 737s Classics and 717s (a fleet that it inherited from AirTran that are being delivered to Delta Air Lines) represented in its fleet will fall from 41% in CY2010 to 18% in CY2015. Absent the fleet modernisation, Southwest calculates its unit costs in CY2015 would be 10% higher.

Percentage of 737 Classics and 717s in Southwest's fleet: CY2010 to CY2015

Source: Southwest Airlines

Southwest’s unit cost estimates do not factor in the outcome of labour negotiations it is holding with several of its unionised employee groups. It has reached a tentative agreement with the union representing about 6,000 customer service agents and service representatives that does include a pay increase; but the pact has not yet been ratified by the full union membership.
Southwest continually states that its goal is to broker deals with its employees that preserves its cost advantage, but during CY2014 cracks have emerged in the historically favourable relationship between management and employees.

Contract talks remain the big wildcard for Southwest

After missing its stated goal of achieving a pre-tax return on invested capital of 15% the last two years, Southwest is on a steady course to reach or exceed that target in CY2014. Its merger with AirTran, while taking some time to complete, has gone rather smoothly without creating a significant strain on its financial performance.
The airline is confident of delivering a similar performance in meeting its ROIC targets for CY2015 as it adds more growth than it has during the last couple of years. It should be commended for maintaining its stature as one of the strongest US airlines measured by financial performance.
But the outcome of its labour talks remains a huge wildcard for Southwest, and more importantly, the airline needs to prevent any further deterioration of its employee relations.

Background information

Southwest new service from Love Field launched in 2014

Source: Southwest Airlines