Forget house flipping: billionaires flip their super jets

Robert FrankCNBC

9 hours ago

SeongJoon Cho / Bloomberg via Getty Images

 

A Gulfstream G650 business jet stands on display during the Cheongju International Airport Air Show in Cheongju, South Korea, on Oct. 25. Demand is so high for the jet that some billionaires are flipping them for a hefty profit.

 

The age of house flipping may have faded. But the super rich have found a new path to instant profits: flipping their megajets.

Demand for the biggest, most expensive Gulfstream jet — the G650 — is so strong that owners have started flipping them to other buyers. In some deals, the sellers are pulling in profits of between $5 million and $7 million per flip.

Billionaire Bernie Ecclestone, the Formula One tycoon, recently flipped his G650 to an Asian businessman for $72 million — at least $6 million more than his purchase price, according to people familiar with the deal. The transaction, first reported by BizjetBlogger, came just weeks after Ecclestone received the plane from Gulfstream. (Ecclestone couldn't be reached for comment, but BizjetBlogger said the plane was too large for some of Ecclestone's favorite airports).

Jet brokers and consultants said at least two other buyers have flipped their G650s recently for more than $70 million. At least two other deals are in the works, they said. One of these is an American billionaire negotiating with a buyer in Asia. The other deals involved billionaires in Russia, Latin America and the Middle East.
The flips highlight the strong demand for large-cabin planes — the biggest, most expensive private jets — at a time when the rest of the private jet market is still languishing. Business jet deliveries are still down more than 30 percent from their peak in 2008, and prices for some planes have fallen by more than half, brokers say.

But large-cabin planes are a hot commodity among billionaires and global companies. With their long range and ample cabins, they can carry more passengers over longer distances and in greater comfort. The G650, with a base price of $64.5 million, is the king of the large-cabin private jets, with a range of well over 7,000 miles and a maximum speed of Mach 0.925.

The G650 also is very scarce. Only around 30 to 35 have been delivered since its launch last year, according to brokers.

Still, the jet has become the must-have plane for the world's billionaires, with Ralph Lauren and Oprah Winfrey both lining up for one. Demand is so strong that a buyer signing a contract today won't get their G650 until the third quarter of 2017. That's why many buyers are willing to pay more than $70 million to get their planes today.

"These are billionaires who are willing to pay a premium to avoid the wait," said Philip Rushton, founder of Aviatrade, an aviation consulting and brokerage firm.
The deals are a double-edged sword for Gulfstream. While they highlight the strong demand and value of its aircraft, they also show that customers are now making millions off of its product. The company said that it is "not privy to the details" of any flips, "if customers are, in fact, getting a premium for the aircraft, it's a testament to the amazing capabilities of the G650."

The real problem for Gulfstream is clients trying to sell their planes before they are delivered. Gulfstream said that, "Customers cannot sell the aircraft before they've physically taken delivery of it. This prevents speculation, which isn't good for the market."

The company has a "non-assignability" clause in its contracts, meaning the ownership can't be reassigned after a contract is signed.

Some customers tried to get around the clause by buying the plane under the name of a newly created aviation company. They would then sell the company to a new buyer, essentially transferring ownership of the plane through the company sale. Brokers said Gulfstream caught on to the game and is now requiring the signer of the contract to be involved in the final delivery.
"They're really doing their best to deter this," said Jay Duckson of Central Business Jets.
—By CNBC's Robert Frank. Follow him on Twitter @robtfrank.

Why Europeans Put Bigger Planes on Trans-Atlantic Flights

By Justin Bachman

November 11, 2013

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The days when flying over the Atlantic automatically meant a seat on a two-aisle jumbo jet are over. U.S. carriers have switched many ocean-crossing flights to slender Boeing 757s, a smaller airplane than the typical wide-body giants favored by European airlines headed to North American destinations. The strategic split in airplane size is the result of differences in fare-pricing software, reliance on hub airports, and passenger preferences in the two markets. Here’s why Europeans fly larger than Americans:

1. U.S. airlines manage fares more tightly. Revenue management software is widely used across the U.S. industry to oversee how many seats are sold at specific prices—a strategy that can maximize profitability when tweaked just so. Deploying sophisticated algorithms to determine pricing was a direct result of the industry’s deregulation in 1978—a process that occurred nearly 20 years earlier than in Europe, airline analyst Robert Mann notes. The software does best when managing an airplane without that many seats. “Too much capacity (larger gauge with more seats) puts those tools outside their sweet spot and unable to deliver improvements in unit revenue,” Mann wrote in an e-mail. “This is why half of U.S. domestic frequencies are on regional partners’ smaller jets.”

2. Hubs play a huge role in aircraft size. The legacy U.S. airlines all have multiple hubs to feed, whereas British Airways (IAG:LN) and Air France (AF:FP) each has essentially one. United (UAL), for example, flies to London Heathrow from six of its eight U.S. hubs, seeing those multiple frequencies as a competitive weapon to lure corporate travelers who fly to the U.K. British Airways, however, feeds nearly all its North American traffic through Heathrow, which it says makes larger airplanes more logical.

3. The 757 rocks (financially) on the North Atlantic. Several years ago, fleet planners at Continental decided to use the 757 from the airline’s Newark hub to cities in Europe where larger planes didn’t make financial sense. Continental equipped its international 757s with 169 seats, 13 fewer than the version flown domestically, and deployed them on routes to such smaller cities as Edinburgh, Scotland; Hamburg and Stuttgart, Germany; Shannon, Ireland; and Manchester, England. Today, nearly one-third of the airline’s trans-Atlantic departures are on 757s.

 

“The B757 allows us to serve certain cities that we may not be able to serve profitably with a larger aircraft—this fact makes the service possible in the first place,” US Airways (LCC) spokesman Todd Lehmacher says, citing the summer service to Shannon. That route was successful and will return in 2014. Delta (DAL) also has found niche uses in Europe for the 757, as has American with a daily flight from New York to Madrid. (The main downside is flying west in winter, when high winds can boost fuel burn and necessitate expensive diversions for refueling.)

4. Europeans pay for cabin comforts. The traditional European flag carriers have a relatively robust business for first and business-class seats, compared with their American counterparts. Lufthansa (LHA:GR) is the largest provider of premium-cabin seating across the Atlantic and needs at least 60 business-class seats on most of its flights to North America to meet demand, spokesman Nils Haupt says. So while United can make do with 16 business-class seats on a 757, Lufthansa will not (usually) struggle too mightily to sell the 98 biz-class seats in its massive 526-seat A380s—nor the eight in first class.

(There is one exception to the European jumbo-jet rule: British Airways flies a small Airbus A318 to New York from London’s City Airport with only 32 seats, all in business class. Return fares start at more than $5,000.)

Too fat to fly: French family stranded in US

19 hours ago

 

A British Airways aircraft takes off from Heathrow Airport in west London (AFP Photo/Ben Stansall)

 

Chicago (AFP) - A French family who came to the United States for medical treatment said they were stranded in Chicago after British Airways determined their son was too fat to fly.

 

Kevin Chenais, 22, spent a year and a half at the Mayo Clinic for treatment of a hormone disorder which led him to weigh 500 pounds.

His mother was near tears as she described the family’s problems to the local CBS affiliate.
"We blame British Airways because now they just leave us, and they brought us here,” Christina Chenais told the station.

"If they could bring him here with that problem in economy, there was a way to take him back by economy but just get him back home for his medical treatments to continue."

The family spent a week in an airport hotel trying to resolve the matter and, running out of money, has decided their only option is to take a train to New York and cross the Atlantic on the Queen Mary cruise ship.

Kevin Chenais requires round-the-clock oxygen and medical attention.

"I’m sure a lot of big people like me or bigger cannot travel because they have the same problem,” he told the station, head hanging down as he sat up in bed.

"This time before leaving I knew something would go wrong."

A British Airways spokesperson told AFP that its customer service team "worked diligently to find a solution."

"We will always try to accommodate someone if it's possible and safe to do so," Caroline Titmuss wrote in an e-mail.

"Unfortunately, it is not possible to safely accommodate the customer on any of our aircraft and the family has been offered a full refund."

The airline said it provided hotel accommodation for the family along with "guidance and support" to help explore other travel options.

A spokeswoman for the French consulate told AFP it "attempted a mediation with British Airways, but the position of the airline is firm on the security issue."

It has provided the family with the names of two lawyers who may be able to help.
The Chenais family did not immediately return requests for comment.

Which airlines now allow electronic devices?

Amy Langfield CNBC

2 hours ago

 

One by one, airlines have begun allowing passengers to expand the use of personal electronic devices since the Federal Aviation Administration said it would start approving applications. So far, only a handful of airlines have the all-clear, and some have more exceptions than others.

US Airways and United are the latest to secure approval from the FAA.

US Airways on Nov. 7 said "customers on US Airways domestic mainline flights will now be permitted to use small PEDs during all phases of flight." Its US Airways Express flights do not have FAA approval.

United Airlines on Nov. 6 adopted the new rules on all domestic mainline flights arriving or departing within the 50 states. The new rules do not apply to United Express flights, but United said it is working with its with its regional partners to make that happen by the end of the year.

American Airlines on Nov. 4 said the new rules apply to "American's entire mainline fleet as well as regional aircraft operated by American Eagle Airlines." However, it does not yet apply to American Eagle flights operated by SkyWest Airlines, ExpressJet Airlines, Republic Airline or Chautauqua Airlines, American spokesman Matt Miller told CNBC.

Delta Air Lines as of Nov. 1 allows "portable electronic devices below 10,000 feet on mainline U.S. domestic flights," according to its website. However, "Delta Connection's more than 550 regional aircraft will be ready by the end of the year."

JetBlue on Nov. 1 "adopted the new rule completely, all JetBlue flights," company spokesman Mike Miller told CNBC.

The FAA has received a handful of other plans and hopes to approve them quickly, agency spokeswoman Kristie Greco said.

Some are still preparing the paperwork. Alaska Airlines "will apply to the FAA for approval very soon," Paul McElroy said in an email to CNBC.

The new rules generally add the ability for passengers to use their smartphones, e-readers, electronic games and tablets during taxi, takeoff and landing as long as they have the device in airplane mode with cellular service disabled. Voice calls will still be prohibited and laptops will still need to be stowed for taxi, takeoff and landing.

The FAA, in its announcement Oct. 31, said there would be only limited exceptions to the new rules. "In rare instances of low-visibility, the crew will instruct passengers to turn off their devices during landing."

The new rules, the FAA made clear, do not yet apply to all fliers.

"Due to differences among fleets and operations, the implementation will vary among airlines, but the agency expects many carriers will prove to the FAA that their planes allow passengers to safely use their devices in airplane mode, gate-to-gate, by the end of the year," the FAA said in its Oct. 31 announcement.

The American Eagle rollout is one early example of how the new system may be confusing. Since some American Eagle regional flights are operated by other airlines, those flights will be certified by the FAA. Those approvals are expected by the end of the year, Matt Miller said. (Passengers can find out by checking the "operated by" line on their flight status notification on AA.com, he said.)
The same goes for Delta's nine carries operating under the Delta Connection banner, according to Delta Air Lines spokesman Paul Skrbec.

But where the new rules are in place, there is happiness in the land.
"Customer feedback has been terrific. We've had more than one instance of customers cheering on planes," Skrbec said.

"It has gone swimmingly as far as I'm aware," American's Miller said a day after the new rules were adopted. The airline will have to change its safety videos, but in the meantime the flight crew is providing guidance to passengers about the new rules.
—By CNBC's Amy Langfield. Follow her on Twitter at @AmyLangfield.

Pilot dies after forced emergency landing at Boise airport
A United Airlines flight bound from Seattle made an emergency landing Thursday after the pilot suffered a heart attack. An airline spokesperson confirmed Friday that the crew member has died, NBC's Tom Costello reports.

By Matthew DeLuca, Staff Writer, NBC News

A pilot suffered an apparent heart attack in midair aboard a United Airlines flight to Seattle on Thursday evening, and later died after the plane was forced to make an emergency landing in Boise, Idaho, a hospital spokeswoman told NBC News.

A doctor and military personnel reportedly attempted to save the pilot’s life by administering CPR amid a dramatic scene, as another passenger rushed to help get the plane safely to the ground.

The spokeswoman at Saint Alphonsus Hospital in Boise confirmed the pilot’s death on Friday morning. United Airlines spokeswoman Christen David said that the flight’s captain was the individual involved in an email to NBC News.

The pilot was alive when he arrived at the local hospital but died during the night while being treated, hospital spokeswoman Jennifer Krajnik told the Associated Press.

“I am sad to confirm that our co-worker passed away last night,” David said. “Our thoughts are with his family at this time.”

Boise Airport spokeswoman Patti Miller told Reuters that the airport received a call “at about 7:55 p.m. Mountain Time declaring an emergency, they said the pilot had had a heart attack.” The plane landed less than fifteen minutes later, Miller told the news service.

Passengers on board the flight from Houston to Seattle said a doctor on board helped the patient, and the co-pilot was heard telling air traffic controllers that chest compressions were performed on the individual.

Passengers said two army soldiers from Joint Base Lewis-McChord on the flight assisted the doctor in attempting to treat the patient before the arrival of first responders, NBC News Seattle affiliate King 5 reported. A passenger who trains Boeing 737 pilots aided the copilot as the plane made the emergency landing in Boise after the unconscious pilot was removed from the cockpit, passengers said, according to the station.

“United flight 1603 from Houston to Seattle diverted to Boise, Idaho, tonight when a crew member experienced a medical emergency,” United Airlines said in a statement Thursday night. “The flight landed safely, and paramedics met the plane upon arrival and transported the crew member to the hospital. We are working to re-accommodate customers as soon as possible.”

The airport spokeswoman told Reuters that the plane’s passengers got off the plane and waited for another pilot to take over the flight. The flight landed in Seattle just after midnight local time.

The 737 had 161 passengers and six crew members on board. The name of the pilot has not been released.

The Associated Press and Reuters contributed to this report.

This story was originally published on Fri Sep 27, 2013 4:40 AM EDT.

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13 Secrets Airline Pilots Won't Tell You

 

By ABC News | ABC News Blogs – Wed, Aug 28, 2013 8:24 AM EDT

 

By LIZ VACCARIELLO , Reader's Digest:
"Good Morning America" is teaming up with Reader's Digest on a special series, " 13 Things Experts Won't Tell You." This month, Reader's Digest unveils the 13 secrets your airline pilot won't tell you that will change the way you fly, plus one bonus tip.

We asked 17 pilots from across the country to give us straight answers about maddening safety rules, inexplicable delays, the air and attitudes up there-and what really happens behind the cockpit door. What they told us will change the way you fly.
"We miss the peanuts too." -US Airways pilot, South Carolina

What You Don't Want to Know
"I'm constantly under pressure to carry less fuel than I'm comfortable with. Airlines are always looking at the bottom line, and you burn fuel carrying fuel. Sometimes if you carry just enough fuel and you hit thunderstorms or delays, then suddenly you're running out of gas and you have to go to an alternate airport." -Captain at a major airline

"Sometimes the airline won't give us lunch breaks or even time to eat. We have to delay flights just so we can get food." -First officer on a regional carrier

"We tell passengers what they need to know. We don't tell them things that are going to scare the pants off them. So you'll never hear me say, 'Ladies and gentlemen, we just had an engine failure,' even if that's true." -Jim Tilmon, retired American Airlines pilot, Phoenix

"The Department of Transportation has put such an emphasis on on-time performance that we pretty much aren't allowed to delay a flight anymore, even if there are 20 people on a connecting flight that's coming in just a little late." -Commercial pilot, Charlotte, N.C.

"The truth is, we're exhausted. Our work rules allow us to be on duty 16 hours without a break. That's many more hours than a truck driver. And unlike a truck driver, who can pull over at the next rest stop, we can't pull over at the next cloud." -Captain at a major airline

What We Want You to Know
"Some FAA rules don't make sense to us either. Like the fact that when we're at 39,000 feet going 400 miles an hour, in a plane that could hit turbulence at any minute, [flight attendants] can walk around and serve hot coffee and Chateaubriand. But when we're on the ground on a flat piece of asphalt going five to ten miles an hour, they've got to be buckled in like they're at NASCAR." -Jack Stephan, US Airways captain based in Annapolis, Md., who has been flying since 1984

"The two worst airports for us: Reagan National in Washington, D.C., and John Wayne in Orange County, Calif. You're flying by the seat of your pants trying to get in and out of those airports. John Wayne is especially bad because the rich folks who live near the airport don't like jet noise, so they have this noise abatement procedure where you basically have to turn the plane into a ballistic missile as soon as you're airborne." -Pilot, South Carolina

"At some airports with really short runways, you're not going to have a smooth landing no matter how good we are: John Wayne Airport; Jackson Hole, Wyoming; Chicago Midway; and Reagan National." -Joe D'Eon, a pilot at a major airline who produces a podcast at flywithjoe.com

"I may be in uniform, but that doesn't mean I'm the best person to ask for directions in the airport. We're in so many airports that we usually have no idea." -Pilot for a regional carrier, Charlotte, N.C.

"This happens all the time: We'll be in Pittsburgh going to Philly, and there will be a weather delay. The weather in Pittsburgh is beautiful. Then I'll hear passengers saying, 'You know, I just called my friend in Philly, and it's beautiful there too,' like there's some kind of conspiracy or something. But in the airspace between Pittsburgh and Philly there's a huge thunderstorm." -Jack Stephan

"You may go to an airline website and buy a ticket, pull up to its desk at the curb, and get onto an airplane that has a similar name painted on it, but half the time, you're really on a regional airline. The regionals aren't held to the same safety standards as the majors: Their pilots aren't required to have as much training and experience, and the public doesn't know that." -Captain at a major airline

"Most of the time, how you land is a good indicator of a pilot's skill. So if you want to say something nice to a pilot as you're getting off the plane, say 'Nice landing.' We do appreciate that." -Joe D'Eon
"No, it's not your imagination: Airlines really have adjusted their flight arrival times so they can have a better record of on-time arrivals. So they might say a flight takes two hours when it really takes an hour and 45 minutes." -AirTran Airways captain, Atlanta

 

I'm not known for being a patient man...I get angry as soon as I step foot into an airport. Everything about it is inefficient. If it's a 6 hour drive or less you can find my in a car.

Saying No the Flighty American-US Airways Deal The Feds' Move to Block the Airline Merger Is Overdue by Al Lewis - Wall Street Journal - August 18, 2013 Try to keep this straight: American Airlines—which has already merged with Trans Caribbean Airways, Air California, Reno Air and TWA—wants to merge with US Airways—which has already merged with Lake Central Airlines, Mohawk Airlines, Pacific Southwest Airlines, Piedmont Airlines and America West. They want to merge because: • United Airlines—which had already merged with Capital Airlines and part of Pan Am— merged with Continental Airlines—which had already merged with People's Express, New York Air and the original Frontier Airlines. • Delta Air Lines—which had already acquired the Chicago and Southern Air Lines, Northeast Airlines, Western Airlines and Pan Am's shuttle airline—merged with Northwest Airlines—which had once swallowed Republic Airlines. • And Southwest Airlines—which had acquired Muse Air, Morris Air and ATA Airlines— recently took over AirTran Airways—which had merged with ValueJet. The U.S. Justice Department, which rarely intervenes in airline mergers, last week sued to block the $11 billion merger of American and US Airways. The deal, it complained, would reduce the industry to just four big carriers controlling more than 80% of the market, which means higher airfares and less air service for consumers. The airlines, and a chorus of critics, immediately complained  a) hey, this isn't fair, you already let everyone else merge,  b) American is in bankruptcy and needs this deal to compete,  c) one less major airline will actually increase competition by creating a stronger competitor and d) let the free market decide. These arguments are as old as the industry. There has never been a free market in the airline business. The industry has always been federally subsidized in one form or another. It also has been subsidized by the bankruptcy process. Airlines battle each other for market share and lose money until the day that they can't. Then they file for bankruptcy and glue their pieces together. Creditors, investors and employees take the financial hit while top executives walk away with grandiose pay packages. American wants to pay its chieftain Tom Horton $20 million for taking the carrier through the bankruptcy it filed in November 2011—but the bankruptcy judge has scoffed at the plan. The Justice Department notes that executives from both airlines have bragged that they could operate without the deal—so why not hold them to their words? No, it's not easy running an airline. Beyond complex logistics and fending off competitors who've slashed their operating costs in bankruptcy court first, there are spiking jet-fuel costs, terrorist attacks and economic meltdowns to circumnavigate. The solution always comes down to yet another bankruptcy and yet another merger. Over time, planes become filthy, airline employees get grumpy, service gets spotty and innovation is reduced to how to charge customers more fees. What's left is an industry of bureaucratic, too-big-to-fail corporations that will live to file bankruptcy again. American and US Airways vow to fight. They'll likely bring enough corporate lobbying power to bear, and offer just enough concessions, to put together some kind of deal. And everyone will forget what American advertised when it bought what was left of TWA in 2001: "Two great airlines, one great future." —Al Lewis is a columnist based in Denver. He blogs at tellittoal.com; his email address is al.lewis@tellitoal.com

A Captive Wi-Fi Audience Pays Off By Kevin Fitchard August 09, 2013 Our need to remain constantly connected everywhere is definitely paying off for inflight Internet provider Gogo. The company reported its first quarterly earnings since going public in June, and it shows that not only are more domestic flyers signing up for its pokey airborne connections, but that they’re also paying more for the privilege. Gogo (GOGO) now connects 1,982 American Airlines, United (UAL), Delta (DAL), Air Canada (AC/A:CN), US Airways (LCC), Alaska Air (ALK), AirTran, and Virgin America planes in North America, and each plane brought in an average of $25,600 in the second quarter, up 22 percent from the same period a year ago. That’s a pretty hefty increase for a single year, but that’s not the half of it. Its overall revenue from commercial aviation increased an impressive 53 percent, to $49.8 million, in the second quarter. It’s connecting not only more planes, but more flights with more passengers. The company estimated that in the second quarter, 77.1 million butts were in the seats of Gogo-linked flights. Not only did Gogo succeed in luring more of those passengers onto its network (5.9 percent vs. 5.3 percent a year earlier), but it also extracted more money from each passenger who did connect: $10.38 per session, a full $1.35 more than it did a year ago. Gogo still isn’t profitable—in fact, its losses increased fivefold, to $72.6 million—but its revenue is increasing at a fantastic clip and shows few signs of slowing down. After all, Gogo has what amounts to a monopoly in the aircraft that it does serve, and our desire to check e-mail and surf the Web at 10,000 feet shows no sign of abating. The irony is that the more successful Gogo becomes, the worse off its customers will be. Gogo is feeding all these flights with what is essentially a CDMA 3G network pointed at the sky, and as with all cellular networks, users must share their capacity. So just as a bunch of simultaneous smartphone users will congest and even take down a cell on the ground, the more Internet surfers there are on a flight, the slower the speeds will be for everyone. Gogo is trying to keep up with that capacity demand by upgrading its networks, but so far only 312 of its planes can tap into the new system’s higher speeds. And even when its entire fleet is upgraded, we’re still talking about just a souped-up 3G network. It doesn’t seem to matter to the flying public, though. We’re more than willing to shell out $20 a flight for slower than dial-up speeds. I do it every time I get on plane for San Francisco. So does Om Malik and pretty much everyone on the GigaOM staff. We’re holding out hope, though, that a new generation of air-to-ground systems—currently being debated at the FCC and developed by Qualcomm (QCOM)—will supply the same level of broadband quality that we’re used to on the ground up in the skies.

How to Survive a Plane Crash: Ten Ways Fliers Can Improve the Odds

JOSH EDELSON/AFP/Getty Images/Newscom

An Asiana Airlines Boeing 777 is seen on the runway at San Francisco International Airport after crash landing on July 6, 2013. Video footage showed the jet, Flight 214 from Seoul, on its belly surrounded by firefighters.

As investigators probe the causes of the crash of Asiana flight 214 in San Francisco, the focus will also be on how the evacuation was handled. Some of the surviving passengers of the crash are starting to tell their stories, and the details paint a mixed picture, with flight attendants coming to the aid of trapped passengers while one crewmember was trapped behind an escape chute that deployed inside the plane.

But evacuations are almost, by definition, a chaotic affair, and in this one, fliers had virtually no warning. So it's understandable that some things would not go by the book. In fact, a number of passengers reported grabbing their items and hauling them off the wrecked aircraft as they escaped.

That’s a serious no-no, as I learned when investigating air crash survivability for this magazine. While it’s a natural impulse to grab your possessions, that can greatly slow down the evacuation process. And every second counts: A plane must be capable of being evacuated within 90 seconds of impact, even with half the exits blocked—since that’s often the case. Fire becomes a serious threat after that all-too-short interlude, as we saw in this instance .

The truth is that most accidents are survivable; while two lives were tragically lost in the crash of Asiana flight 214, remarkably, the other 305 passengers and crew got off the plane.

Evacuations are more common than we suppose—at the time of our 2005 report, an aircraft was being evacuated at U.S. airports every 12 days. But surveys have shown that few fliers pay any attention to the pre-flight safety briefing, either because they’ve heard it all before, or, strangely, because they believe if they crash there’s nothing they can do about it anyway.

But that’s far from the case; the vast majority of passengers involved in U.S. airline accidents over the years have survived. So, here’s some advice from the experts at the FAA as well as dozens of survivor interviews, on what to do:

1. Listen closely to that safety briefing before takeoff and study the seatback safety card; yes, you have heard it before, but a refresher is always a good idea.
2. Count the number of rows between you and the two nearest exits at the start of the flight; in a real evacuation, if one isn’t working, move on quickly to the next.
3. Assume the brace position for impact—head down, arms crossed—even if flight crews don’t issue instructions; they may not have time, as was the case last weekend.
4. Leave all belongings behind; whatever it is, it’s not worth risking your life or your fellow passengers’ lives for. Carry ID, cash, and credit cards in a neck pouch or fanny pack.
5. If there’s smoke, keep your head low and cover your mouth and nose with a handkerchief or other article of clothing.

6. Clothes made of natural fabrics—such as cotton, wool, denim. or leather—offer better protection from high heat than synthetics.

7. Wear long sleeves and pants, avoid tight clothing and short skirts.
8. Wear low-heeled shoes. Avoid sandals, which don’t protect against burns, and high heels, which must be removed before evacuating via an emergency slide.

9. Jump feet first into the center of the slide, arms folded and legs together; don’t sit down, which will slow the process.

10. Avoid panty hose; friction on the slide can cause leg burns.

TWA Flight 800 Investigators Claim the Official Crash Story Is a Lie

By Dashiell Bennett | The Atlantic Wire – 3 hrs ago

 

 

 

 

TWA Flight 800 Investigators Claim …

 

A new film claims the official government report on the crash of TWA Flight 800 in 1996 is an elaborate fabrication, but the most shocking part of the story is that charges are being leveled by some of the very investigators who put the report together. Six experts who appear in the film were members of the National Transportation Safety Board investigation team that concluded the crash was an accident, but they now claim they were silenced by their superiors.

 

The movies, "TWA Flight 800" will debut on EPIX TV next month, on the 17-year anniversary of the crash.

 

TWA Flight 800 was en route from JFK Airport in New York to Paris, France, when it exploded and crashed off the coast of Long Island, killing all 230 people on board. From the very beginning, there were some who speculated that the plane was the victim of a terrorist attack, leading the FBI to conduct its own criminal investigation. Among the possibilities that were suggested as the cause were a bomb in the cargo hold, or an anti-aircraft missile. Several witnesses even claimed they saw an object or streak of light that looked liked a missile or rocket moving toward the plane before it exploded.

The final NTSB reported said that faulty wiring connected to a central fuel tank caused a blast that destroyed the fuesalage, however, there were still many skeptics and conspiracy theorists who have long doubted that official story. In one particularly famous example, Pierre Salinger, a former Press Secretary for President John Kennedy and reporter for ABC News, claimed he'd seen proof that the U.S. Navy shot down the plane and then covered it up.

Now, those theories are likely to get a new airing, thanks to accident investigators who worked on the TWA 800 case, but say they were not allowed to speak up at the time of the official report. The experts include NTSB and TWA accident investigators, who say they are only able to speak up now that they are retired. According their statements in the film, they believe the official explanation is wrong and the damage was caused by an explosion that came from outside the plane.

The filmmakers won't speculate on what could have caused such an explosion, and haven't yet offered up evidence to support their theory (you'll have to watch on July 17), but they are asking the NTSB to re-open the investigation. Whether or not that happens, or even if a follow-up reaches the same conclusions as the original, this new film will ensure that the alternate theories and claims up a cover will probably never be put to rest.

10 Things Flight Attendants Wish They Could Say But Can't
How rude passengers and their strange requests and poor behavior get on their nervesby Kelsy Chauvin, Frommer's, April 3, 2013

There's no doubt that being a flight attendant requires more patience than most jobs. Imagine coping with hundreds of passengers at a time, each one convinced that his or her needs are the most important. Demands can be wacky, unreasonable or outrageous, while the smallest of slights (or perceived slights) can spark fiery tantrums. Amid all the craziness, flight attendants serve as calm mediators with the forbearance of saints. Most of the time, anyway.

Sometimes, even the most professional and courteous flight attendant can barely bite his or her own tongue. We asked two veterans to share the things they'd love to tell passengers … if only they could.
Flight attendants often have to bite their tongue when dealing with rude airline passengers.

1. "Your shoes are so cute, but they would smell better on your feet."Tracy Christoph, a seasoned, Boston-based JetBlue flight attendant and travel blogger, notes that an airplane is no place for olfactory assaults.

2. "We love your child, but would appreciate if he didn't use the flight-attendant call button to compose the next great symphony." Before you take a nap and let Junior play freely, remember that someone like Christoph has to deal with the noise.

3. "You know, you do have the opportunity to select your seat in advance."
Not all airlines allow passengers to choose their seats before flights, but many do. A flight attendant who began her career 25 years ago with Pan Am and wants to remain anonymous (we'll call her Pam) is baffled when tall people stuck in the middle seat beg for an aisle only after they're on the packed airplane.

4. "We know our comfy leather seats and individual TVs make you feel like you're on your couch, but we have some great hotel partners for those more intimate moments with your loved one." Sure, travel is romantic, but there are far better — and more private — places for getting frisky.

5. "Why are you asking me that now?"It might be a request for a drink two minutes before takeoff or for the vegetarian option during meal service, but attendants get frustrated when passengers have bad timing or resist planning ahead.

6. "Let me gate-check that for you." "You can't fit a 10-pound bologna in a 5-pound bag It never fails: Someone's always trying to slip a little more luggage onto the plane.

7. "What was it like being raised by wolves?" Pam says her parents always taught her to make requests with a "please" and respond with a "thank you." But for some reason, too many passengers seem to check their manners at the gate.

8. "Compassion goes a long way." All too often, a childless passenger ends up seated next to a parent with an upset, fidgety baby on a fully booked airplane. When Pam hears, "Can't somebody shut that kid up?" she often wants to hand the child to the complainer and relocate the parent to first class with a tray full of drinks.

9. "So you're mad because someone's asked you to do your job?" Pam admits that sometimes it's her fellow flight attendants who frustrate her, returning in a huff to the galley to complain about having to serve someone yet another Coke.

10. "I'll be right back."
 OK, this one is really spoken out loud. But Pam says this is a flight attendant code phrase for something a little more, let's say, expressive — usually in response to an overly demanding, absurd or downright rude passenger request.

Assessing US Airways' Doug Parker's Legacy

BY Ted Reed| 05/13/13 - 06:45 AM EDT

CHARLOTTE, N.C. (TheStreet) -- Will US Airways(LCC_) CEO Doug Parker be remembered as a giant of commercial aviation?

Of course, it's too soon to tell. Over the next few years, as he oversees the merger of US Airways and American(AAMRQ.PK), which would create the world's biggest airline, Parker and his every move will be closely watched and continually assessed.

In an interview, Parker said his legacy should be largely about whether he can preserve jobs for the employees of US Airways and American. Beyond that, however, Parker has already established himself as a catalyst of change in the final round of post-deregulation airline industry consolidation. After he pursued a merger with Delta(DAL_), Delta merged with Northwest. After he pursued a merger with United(UAL_), that carrier merged with a hesitant Continental. Then Parker pursued a merger with American, one that now awaits only regulatory approval.

Imperial Capital analyst Bob McAdoo said Parker's ability to reverse the fortunes of American, which has underperformed its peers for close to a decade, will be the key factor in establishing his legacy. But perhaps improving American's performance will, in the end, equate to preserving jobs for its employees.

At the moment, five leaders stand out as the giants of the post-war airline industry, essentially one at each major airline. Robert Crandall built American, Stephen Wolf built United and Frank Lorenzo built Continental, which later merged with United. Herb Kelleher created and built Southwest(LUV_), and Jerry Grinstein transformed Delta. Commercial aviation is so young, relative to many other industries, that all of its most important leaders are still alive.

Asked whether it is reasonable to compare him to the industry's five giants. Parker responded: "I don't care about comparisons. I really don't. What we're doing, what I learned about a long time ago, is that it's (most important) to think of all these employees who do their jobs so well, but are so beholden to their leadership."

In some cases, "management didn't make sure the airline could stay in business," Parker said. "That's our job, to be sure we're doing everything we can" to ensure that airlines survive. "What I care about is, by the time I'm done, I'd like the people at American and US Airways to know the company will be there for them," he said. "I'm highly confident we'll get there."

Parker said he found a role model in Kelleher, who "really cares about the people who work for him.

"Herb understands people so well -- that's in the airline," Parker said, noting that if Kelleher were talking with an employee and "if the president of the United States walked into the room, Herb wouldn't divert his attention," but rather would remain engaged in the conversation. Kelleher "is in a class by himself," Parker said. "I could never get there."

Like Kelleher, Parker focuses intently on employees. During a presentation at US Airways media day in April, he described an October 2001 trip home to Phoenix from Washington D.C. just after he failed to secure an Air Transportation Stabilization Board grant that would have ensured the continued operation of America West, which later merged with US Airways. "It was a bad day," said Parker, who thought to himself: "I'm 39. I've been CEO for a month. Now I'm going to liquidate. It is not going to look good on the resume."

A depressed Parker went to the rear galley and spoke with a flight attendant, a single mom, who asked how it had gone. "I couldn't lie to her," he said. "I told her: 'They don't want to do it. We're trying to get it done. Hopefully we'll be able to get through bankruptcy.' She just looked at me. She said: 'You can't do this. I've been doing this job for 15 years. This is what I do. I have my child care set up around it. I can't do anything else.'

"I realized this isn't about me," Parker said. "Management's job is to serve the people who do what she is doing." A later run at the ATSB succeeded in securing a $380 million loan guarantee, making American West the first carrier to receive an ATSB loan guarantee.

Airline experts see additional legacy considerations. Consultant Bob Mann called Parker "absolutely the foremost advocate for consolidation" and said he needs continued support from labor, especially given that the American unions provided early, essential backing for a merger that was initially opposed by American management. "Labor threw the other guys over the side of the boat in order to sign up with this guy, and labor will be the key to his legacy," Mann said.

McAdoo said Parker's legacy will be determined primarily by whether he can reverse American's fortunes. "American has been clearly struggling, losing billions over the last 10 or 12 years, even when the other guys were making money," McAdoo said. "If Parker can turn that around and bring American back to what it once was, his legacy will be that he was the guy who took a company that was stumbling and turned it into a nice property."

 

Premium-Class Service, Long Before Fliers Board

Turkish Airlines

 

 

The Turkish Airlines premium-class lounge at Ataturk Airport in Istanbul has a pool table and masseuse, and is open to members of the airline’s corporate incentive program.

 

 

By CHRISTINE NEGRONI

TO celebrate the beginning of service between Dulles International Airport and Abu Dhabi on April 2, Etihad Airways’ chief executive, James Hogan, made the 13-hour flight to Washington to host a party for 450 people with entertainment by Harry Connick Jr.

      

But do not try to talk to Mr. Hogan about New York. After four years of flying out of Kennedy International Airport, Etihad is still waiting to lease space for a premium airport lounge. 

      

Emirates Airlines of Dubai, Etihad’s competitor, has a 4,000-square-foot private waiting room overlooking the gate at Terminal 4, and business and first-class travelers can board the plane from there. This month, Delta Air Lines will open a Sky Club in the same terminal; at 24,000 square feet it will be the largest club at the airport and in the Delta system, with seating for 450 people and an additional 2,000 square feet dedicated to an outdoor deck. 

      

Offering lavish airport services to premium-class passengers is a worldwide phenomenon.

In Istanbul, Turkish Airlines built a lounge that includes a pool table and a masseuse. In Frankfurt, Lufthansa’s first-class passengers are assigned a personal assistant; when it is time to leave the cigar lounge or dining room for the plane, they are taken by private car, without having to board with other passengers. In the home bases of Emirates and Etihad, business-class passengers get deluxe accommodations; first-class passengers, ultradeluxe. 

      

“We believe that the comfort and convenience of dedicated lounges enables our passengers to enjoy the Emirates experience even before they have boarded the plane,” said Mohammed H. Mattar, divisional senior vice president at Emirates Airport Services. Etihad has a similar philosophy, which is why its executives are so frustrated at their lack of space in New York. 

      

“I can’t control customs or security; some are good, some are bad, but what I can control is our touch points,” Mr. Hogan said. “So the experience in the lounge is important to us.” 

      

Mr. Hogan complained in February that the airline was getting the runaround in New York, but by April the airline was predicting a new Etihad lounge would open at Kennedy in 2014 or 2015. “A potential space has been identified,” Niall Doheny, an Etihad spokesman, said by e-mail. JFK International Air Terminal, the company that runs Terminal 4, declined to answer questions about Etihad’s complaint. 

      

Improving the airport experience has long been a priority for airlines with heavy passenger traffic passing through their home base en route to somewhere else, according to a report on airports by the consulting firm Oliver Wyman. “In the Middle East in particular, the newly developed hubs have based their business models around transfer passengers,” the report says, but it is also true for airlines like Cathay Pacific, Singapore, Turkish and Lufthansa. Song Hoi See, chief executive of the airport services company Plaza Premium Lounge Management Hong Kong, said American airlines came late to the game. 

      

“The reason why the U.S. is lacking is because traffic used to be concentrated on domestic traveling,” Mr. Song said. “Before 9/11, it was like going on a bus, you get to the airport half an hour before the plane leaves. After 9/11, even domestic traveling meant passengers had to wait longer in the airport.”

Now some airlines in the United States have decided that giving passengers a comfortable place to wait gives them a competitive advantage, especially at older airports, which can be short on amenities like electrical outlets, Wi-Fi, quality food and beverages and a place to sit and work. 

      

“Increasingly what we’re focused on is having a highly segmented space, such that there are people in there doing work, people gearing up for the day. There are people in there unwinding and doing different things,” said Tim Mapes, senior vice president for marketing at Delta, which has spent $20 million on new or renovated lounges in Atlanta, Minneapolis, Seattle and Los Angeles, as well as in New York at Kennedy and La Guardia Airports. It is a lot of pampering and it is not over yet. Having spent 15 years managing airport lounges that cater to the minority of travelers for whom service is more important than price, Mr. Song says the trend is still evolving. 

      

“Now you go to the lounge and they provide hot food and shower, wellness services, pedicure, manicure and also business center services, more than printing, but secretary, meeting and videoconferencing,” he said. 

      

Premium services can even go beyond the airport; airlines, including Lufthansa, offer limousines, and Delta is considering what kind of amenities it can offer in city centers.

“Traditional airline thinking results in traditional customer experiences,” Mr. Mapes said. “We have to be a lifeline and have customers’ backs 24/7.”    

A version of this article appeared in print on May 1, 2013, on page F7 of the New York edition with the headline: Premium-Class Service, Long Before Fliers Board.

Filing lays out long road to the American Airlines-US Airways merger

By Terry Maxon
tmaxon@dallasnews.com
10:46 am on April 17, 2013 | Permalink

For those historians amongst us, American Airlines had laid out the long road from idea to merger navigated by American and its persistent suitor US Airways.

According to an S-4 registration document filed Monday, the first stop was an April 14, 2011, meeting of the US Airways Group board in which airline executives outlined the potential of a US Airways-American merger.

The S-4 says Tom Horton, the American’s president, approached US Airways chairman and CEO Doug Parker at an industry event Sept. 7, 2011. “Mr. Horton explained that AMR had recently completed the then-largest ever order of new aircraft and that upon entering into new labor agreements AMR might soon be positioned to engage in discussions about strategic alternatives, including a combination with US Airways Group.”

In return, “Mr. Parker agreed that a combination of the two airlines could be beneficial to both parties, and that the two should speak again after AMR had secured new labor agreements.”
AMR chairman and CEO Gerard J. Arpey called Parker in October 2011 and said “he was aware of the earlier discussion between Mr. Horton and Mr. Parker. Mr. Arpey said that once AMR had achieved new labor contracts, he would be open to discussing potential strategic transactions.”
In the same call, Arpey “encouraged Mr. Parker to consider the possibility of US Airways departing the Star Alliance and becoming a member of the Oneworld alliance as an initial step, but one that might result in a larger transaction sometime in the future.”

Of course, American and parent AMR filed for bankruptcy on Nov. 29, 2011. For about the next five or six months, we had Parker pursuing AMR/American and Horton trying to fend him off with protests that merger discussions should wait after AMR/AA emerged from bankruptcy proceedings as a reorganized, stronger company.

After that, American and the unsecured creditors committee entertained the idea as American was also developing its plan to emerge as a stand-alone carrier. We had the signing of the non-disclosure agreements, followed by a long period of negotiating.

Keep reading for a long account of the pursuit, wooing and marriage.

Horton, who took over as chairman and president of AMR and American on the evening of Nov. 28, 2011, called Parker and other airline CEOs the next day to advise them of the bankruptcy filing.
On Dec. 21, 2011, “Mr. Parker called Mr. Horton and asked if he and members of his management team could meet with Mr. Horton to discuss a potential combination,” the document said.
“Mr. Horton said to Mr. Parker that while he believed a combination could be beneficial to both companies and that he was always willing to talk, AMR and its board of directors were completely focused on completing the company’s restructuring.”

In January, US Airways hired legal and financial advisors to look at an AMR merger, a fact that Parker disclosed to Horton in a phone call. US Airways representatives began talking to the unsecured creditors committee, which had to be on board if there were to be a merger.
On April 20, 2012,

Parker and American’s three labor unions made public their secret talks to negotiate collective labor agreements that would go into effect if US Airways and American merged. Parker contacted Horton to tell him of the deals, and to present a merger proposal that would have US Airways shareholders holding 50.1 percent of the stock in the combined companies.

Horton repeated to Parker that his company’s focus was on the bankruptcy case, but he informed the AMR board that day of US Airways’ proposal.

With pressure mounting on AMR, the company and UCC on May 1 agreed to a process to consider strategic alternatives and compare them to the stand-alone plan that AMR was pursuing. But the AMR board concluded in meetings May 15 and 16 that US Airways’ April 20 proposal was too low.
“Accordingly, AMR’s board determined that the April 20 Indication of Interest did not merit further discussion,” the document said. “However, Mr. Horton explained that at a significantly different equity split a combination with US Airways Group could be attractive to AMR and its stakeholders.”
On July 10, “AMR announced that, in cooperation with the UCC, it would begin a review of strategic alternatives, including a potential merger.”

On July 17, Horton met with Parker and said the company was preparing to look at potential mergers and would soon propose some non-disclosure agreements.

AMR and its advisors in July and August “approached several other airlines to gauge their interest in a strategic combination,” the document stated.

“AMR also had discussions with potential financial investors with experience in the airline industry to gauge their interest in financially supporting an independent plan of emergence or other investment. AMR’s board was periodically apprised of the status of these potential alternatives,” it said.

On Aug. 30, 2012, American and US Airways announced publicly that they were signing non-disclosure agreements to discuss a potential merger. From there, it became a matter of negotiations.
On Oct. 22, AMR sent US Airways the form of a possible merger. On Nov. 1, the US Airways board replied with its own offer, known as the “November proposal.”

■ US Airways shareholders would get 30 percent of the combined company, with the rest going to AMR stakeholders.

■ The headquarters would be in Fort Worth.

■ The merged carrier would be branded American Airlines.

■ Parker would be chairman and CEO.

■The new company’s board would have 11 members, five picked by US Airways.

 

Parker gave Horton the November proposal on Nov. 2, and the AMR board reviewed it the same day. Although the proposal was found wanting, “at Mr. Horton’s urging, the AMR board decided it was prudent to continue pursuing a potential transaction with US Airways Group, but to set aside any discussions about management or board composition until other aspects of a transaction were resolved.”

The AMR board on Nov. 10 endorsed the idea of a merger, upon Horton’s endorsement.
“However, the board instructed Mr. Horton to inform Mr. Parker that uncertainty surrounding the combined company’s labor costs rendered it difficult to determine the right Equity Split, which AMR’s board believed needed to be in excess of 80%, and that these matters had to be addressed if discussions were to continue.”

On Nov. 14, “Mr. Horton called Mr. Parker to indicate that the AMR board had expressed its general support for the transaction. He explained, however, that AMR’s share of the Equity Split likely needed to be above 80%, and that the uncertainty surrounding the combined company’s labor costs needed to be mitigated.”

The next day, the US Airways board balked at AMR’s position that its stakeholders needed more than 80 percent of the merged company. The US Airways board said it didn’t support extending the non-disclosure agreements to take them beyond their scheduled Nov. 30 expiration.

“In addition, the board instructed management to inform AMR’s advisers that if the AMR board’s view of an appropriate Equity Split was as communicated by Mr. Horton, then it was not productive to continue discussions,” the document said.

After a series of discussions between AMR, the UCC and US Airways, Horton called Parker on Nov. 25 “and suggested that further discussions between the companies’ advisers regarding the proposed Equity Split should be deferred,” the document said.

“Mr. Horton further advised that that while he believed there was likely a solution somewhere between the two parties’ respective positions on the Equity Split, it was not possible for AMR to reach a final conclusion on the Equity Split without first mitigating the potential labor costs and risks attendant to a potential merger,” it said.

“Mr. Parker agreed that the two parties should address the labor issues and make progress on negotiating the merger agreement prior to revisiting the Equity Split.”

At an AMR board meeting on Nov. 27, the airline’s advisors said that AMR shareholders might actually get something after all, that their stock wouldn’t be entirely worthless.

Parker persuaded the US Airways board on Nov. 28 to keep talking and extend the non-disclosure agreement past its Nov. 30 expiration. The next day, the two airlines signed the extension.
In December, the unions and management worked out the transition deals that would spell out how labor would be treated in a possible merger, eliminating that potential roadblock.

The issues were narrowing down to two big questions: How would the equity in the new company be split between US Airways and AMR interests? And who would run the new company?
The registration statement doesn’t elaborate on the discussions about governance, other than to note that they happened among the airlines, the unsecured creditors committee and the Ad Hoc Committee of AMR Corporation Creditors.

But on Jan. 24, Horton and Parker met to discuss the equity split and who would run the company. Horton said the 70-30 split supported by US Airways “was insufficient,” the statement says.
“Mr. Horton also informed Mr. Parker that, assuming a transaction, while he would support Mr. Parker as CEO of the combined company, the AMR board believed that the continued involvement of senior AMR executives and managers, including Mr. Horton as chairman of the combined company’s board, was important,” it added.

Three days later, AMR board member Armando Codina, the lead independent director, sat down with Parker. He told him that the 70-30 split had to improve, that AMR shareholders needed to get something in the merger, and that the merged company’s board needed to skew more toward AMR. Or to use the document’s wording, it needed “a board composition that more closely reflected the relative ownerships of AMR’s stakeholders and US Airways Group’s stockholders.”
On Jan. 28, the next day, Parker told Horton that US Airways was prepared to go to 72-28, and agreed to weight the board more heavily to AMR.

In a Feb. 4 telephone call, Parker told Codina that US Airways was prepared to drop its requirement that AMR eliminate its liabilities for “other post-employment benefits,” namely health care coverage for retirees. US Airways would accept the 72-28 split. Codina told Parker he would support the merger at 72-28.

On that call, Codina and Parker also talked about the idea of Horton being chairman for only a limited time after the merger.

Parker and Horton discussed the terms in an exchange of emails. Parker on Feb. 5 said his board backed the 72-28 split and wasn’t requiring AMR to get rid of the post-retirement benefits. In an email the next day, Horton said his board still supported a 75-25 split, but that he’d take US Airways’ proposal back to the AMR board.

Horton also agreed in general with the idea of who would run the company, but worried that American’s managers wouldn’t get a fair chance.
“Mr. Horton reminded Mr. Parker that AMR’s board still wanted assurance that the combined company’s management would be drawn from the ‘best of the best’ of each company, and that he and Mr. Parker would be jointly involved in selecting senior executives for the combined company,” the document said.

The next day, Parker told Horton via email that Parker “would consult with him in the selection of the management team for the combined company.” On Feb. 12, they agreed on the final arrangement in which Horton would be board chairman for a maximum of a year.

Horton, other American managers, Parker and Kirby met with the unsecured creditors on Feb. 11. Two days later, the UCC voted to support the merger.


The afternoon of Feb. 13, Parker met with the AMR board and “expressed his excitement and enthusiasm for the Merger, praised AMR’s brand, heritage and people, and affirmed his belief that consolidation would position the combined company to compete effectively with United and Delta.” He assured the board that he would pick executives from both airlines with assistance from Horton.

With Parker out of the room, the AMR board voted to approve the merger. In a subsequent meeting, the US Airways board endorsed the merger as well after its financial advisors said the offer was fair.
Before the markets opened on Feb. 14, the airlines announced the merger. Horton and Parker held a conference call with analysts at 7:30 a.m. CST, then met the news media at a mid-morning press conference. The pair stood before American employees at an early afternoon meeting before Parker headed home to Phoenix to meet with his employees.

And finally, on Feb. 22, AMR and American asked the U.S. Bankruptcy Court to approve the deal.