Reuters
FAA seeks payment of $10.2 millon Southwest fine
Friday August 15, 7:51 pm ET
(SO MUCH FOR THE FAA DOING ITS JOB....TOO LITTLE TOO LATE...ED.)
WASHINGTON (Reuters) - Regulators upheld a record $10.2 million fine against Southwest Airlines Co (NYSE:LUV - News) for alleged safety violations and want payment this month, the U.S. Federal Aviation Administration said on Friday.
The FAA said in a letter to the airline and its legal counsel this week that the civil penalty "is appropriate" and would remain at the proposed amount.
The agency said it would turn the matter over to the Justice Department if payment was not received by August 29.
Southwest said the notification "was part of the process" and the company was reviewing its options. It declined to comment further.
Southwest met in April with FAA officials as part of an informal review of the fine proposed in March for alleged maintenance shortcomings.
It is common for airlines to appeal fines, and in many cases the penalty is reduced.
The FAA said Southwest had failed to inspect Boeing 737s for structural cracks and continued to fly those aircraft even after notifying the agency that it had missed a deadline to complete the work.
Southwest, the biggest U.S. airline by market value and the healthiest financially among major carriers, said it responded appropriately to the problem and never compromised flight safety.
The FAA said there were no safety incidents related to the missed inspections.
The case was triggered by whistle-blower complaints to Congress, which put pressure on the FAA to step up safety oversight of the industry.
The FAA on Thursday proposed a $7.1 million fine against American Airlines, a unit of AMR Corp (NYSE:AMR - News), for alleged safety violations and other problems.
American called the penalty excessive.
(Reporting by John Crawley; editing by Braden Reddall)
Saturday, August 16, 2008
Monday, August 11, 2008
Allen for Congress
FOR IMMEDIATE RELEASE
August 7, 2008
CONTACT: Sundee Southards
Communications Director
Joe@allen4congress.com
(417) 546-5632
Allen wins AFA endorsement
The Association of Flight Attendants (AFA), headquartered in Washington, DC, this week chose to endorse Joe Allen as its choice candidate for Missouri's 8th Congressional District, according to Roger Graham, a labor advisor for Allen's campaign. Representing 55,000 members for 20 airlines, including United, Northwest, USAir and American Eagle, AFA is the world's largest flight attendant union.
"I am especially honored by this labor endorsement," Allen stated. "As are so many others, the US aviation system and its members are caught in an economic quagmire. Faced with mergers, outsourcings, and job losses as well as a myriad of health and safety issues, these laborers deserve a congressman who will be a voice for them in Washington."
This is the second major endorsement, in as many weeks. The United Auto Workers (UAW) endorsed Allen in late July.
As an advocate for working families, Allen has taken the lead in exposing the current Administration’s war against American workers, “Jo Ann Emerson, in her twelve years representing Missouri’s 8th Congressional District, has only voted thirty five percent in the favor of American workers. Thirty five percent is an F in my grade book.”
This year alone, Emerson (R, MO-8) voted against the Housing Reform and Energy Tax Credit Bill (H.R. 3221), Alternative Energy Tax Incentive Bill (H.R. 6049), the Unequal Pay Bill (H.R. 1338), and workplace safety legislation such as the S-Miner Act (HR 2768) and establishing further OSHA safety regulations for combustibles (H.R. 5522).
Living in one of the poorest Congressional Districts in the country, Allen has pledged to create a climate that is fair to both businesses and employees. He will support the Employee Free Choice Act, stop any proposals to allow foreign control of U.S. Airlines, cosponsor and support legislation that will provide for a fair and universal healthcare system that will ensure quality and affordable health care coverage for all Americans, and vote against the expansion of free trade agreements that harm the American employee.
Allen for Congress
P.O. Box 1118
Forsyth, Missouri 65653
Office: (417) 546-5623 Fax: (417) 546-5634
Email: Joe@allen4congress.com
www.allen4congress.com
FOR IMMEDIATE RELEASE
August 7, 2008
CONTACT: Sundee Southards
Communications Director
Joe@allen4congress.com
(417) 546-5632
Allen wins AFA endorsement
The Association of Flight Attendants (AFA), headquartered in Washington, DC, this week chose to endorse Joe Allen as its choice candidate for Missouri's 8th Congressional District, according to Roger Graham, a labor advisor for Allen's campaign. Representing 55,000 members for 20 airlines, including United, Northwest, USAir and American Eagle, AFA is the world's largest flight attendant union.
"I am especially honored by this labor endorsement," Allen stated. "As are so many others, the US aviation system and its members are caught in an economic quagmire. Faced with mergers, outsourcings, and job losses as well as a myriad of health and safety issues, these laborers deserve a congressman who will be a voice for them in Washington."
This is the second major endorsement, in as many weeks. The United Auto Workers (UAW) endorsed Allen in late July.
As an advocate for working families, Allen has taken the lead in exposing the current Administration’s war against American workers, “Jo Ann Emerson, in her twelve years representing Missouri’s 8th Congressional District, has only voted thirty five percent in the favor of American workers. Thirty five percent is an F in my grade book.”
This year alone, Emerson (R, MO-8) voted against the Housing Reform and Energy Tax Credit Bill (H.R. 3221), Alternative Energy Tax Incentive Bill (H.R. 6049), the Unequal Pay Bill (H.R. 1338), and workplace safety legislation such as the S-Miner Act (HR 2768) and establishing further OSHA safety regulations for combustibles (H.R. 5522).
Living in one of the poorest Congressional Districts in the country, Allen has pledged to create a climate that is fair to both businesses and employees. He will support the Employee Free Choice Act, stop any proposals to allow foreign control of U.S. Airlines, cosponsor and support legislation that will provide for a fair and universal healthcare system that will ensure quality and affordable health care coverage for all Americans, and vote against the expansion of free trade agreements that harm the American employee.
Allen for Congress
P.O. Box 1118
Forsyth, Missouri 65653
Office: (417) 546-5623 Fax: (417) 546-5634
Email: Joe@allen4congress.com
www.allen4congress.com
Sunday, August 10, 2008
Branson warns U.S. presidential candidates on BA/AA
Sunday August 10, 10:54 am ET
LONDON (Reuters) - Virgin Atlantic owner Sir Richard Branson on Sunday wrote to U.S. presidential candidates Barack Obama and John McCain warning that a link-up between British Airways and American Airlines would be anti-competitive.
In the letter, Branson said the proposed alliance would "severely damage competition on major transatlantic routes and leave consumers worse off."
"Airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement which will inevitably lead to less competition and higher fares," he said.
Virgin said, following BA's planned merger with Spanish rival Iberia (MCE:IBLA.MC - News), BA and American Airlines would have nearly half of all take-off and landing slots at London's Heathrow airport if the alliance takes place.
On Friday, a source familiar with the matter told Reuters that BA plans to lodge an application in the United States this week to seek antitrust immunity for an alliance.
A report in the Sunday Telegraph said Virgin Atlantic is poised to launch a 3 million pounds ($5.78 million) advertising and lobbying campaign as it attempts to frustrate plans for the alliance.
Meanwhile, the Mail on Sunday reported that BA is ready to surrender its right to hundreds of transatlantic flights in an attempt to win the backing of U.S. authorities for the alliance.
The report says BA will meet U.S. Department of Justice officials this week and offer to give up the flights.
(Reporting by Matthew Scuffham; Editing by Jason Neely)
Sunday August 10, 10:54 am ET
LONDON (Reuters) - Virgin Atlantic owner Sir Richard Branson on Sunday wrote to U.S. presidential candidates Barack Obama and John McCain warning that a link-up between British Airways and American Airlines would be anti-competitive.
In the letter, Branson said the proposed alliance would "severely damage competition on major transatlantic routes and leave consumers worse off."
"Airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement which will inevitably lead to less competition and higher fares," he said.
Virgin said, following BA's planned merger with Spanish rival Iberia (MCE:IBLA.MC - News), BA and American Airlines would have nearly half of all take-off and landing slots at London's Heathrow airport if the alliance takes place.
On Friday, a source familiar with the matter told Reuters that BA plans to lodge an application in the United States this week to seek antitrust immunity for an alliance.
A report in the Sunday Telegraph said Virgin Atlantic is poised to launch a 3 million pounds ($5.78 million) advertising and lobbying campaign as it attempts to frustrate plans for the alliance.
Meanwhile, the Mail on Sunday reported that BA is ready to surrender its right to hundreds of transatlantic flights in an attempt to win the backing of U.S. authorities for the alliance.
The report says BA will meet U.S. Department of Justice officials this week and offer to give up the flights.
(Reporting by Matthew Scuffham; Editing by Jason Neely)
Tuesday, July 29, 2008
American Airlines avoids flight attendant layoffs
Tuesday, July 29, 2008 - 7:20 PM CDT
Dallas Business Journal
American Airlines Inc. will not need to lay off any flight attendants after enough employees agreed to take voluntary leaves of absence or early retirement offers, a spokeswoman for the airline said Tuesday.
Fort Worth-based AMR Corp., (NYSE: AMR) the parent company of American Airlines, previously announced plans to eliminate 900 flight attendant positions in response to growing capacity reductions.
About 300 flight attendants accepted what the airline is calling a "bridge to retirement program," while the remaining staff reductions will be handled through voluntary leaves of absence.
Tuesday, July 29, 2008 - 7:20 PM CDT
Dallas Business Journal
American Airlines Inc. will not need to lay off any flight attendants after enough employees agreed to take voluntary leaves of absence or early retirement offers, a spokeswoman for the airline said Tuesday.
Fort Worth-based AMR Corp., (NYSE: AMR) the parent company of American Airlines, previously announced plans to eliminate 900 flight attendant positions in response to growing capacity reductions.
About 300 flight attendants accepted what the airline is calling a "bridge to retirement program," while the remaining staff reductions will be handled through voluntary leaves of absence.
AirTran Taps the Brakes on Growth
07/29/08 - 03:26 PM EDT
by Ted Reed
After growing at a 20% rate during the past five years, AirTran is stepping on the brakes.
The carrier now says capacity will decline by 7% to 8% during the last four months of 2008 and by 4% to 8% during 2009, as it moves to sell aircraft and to defer 22 deliveries. "Our priorities have clearly shifted," said CEO Bob Fornaro, on an earnings conference call Tuesday. "Growth is far down on the list of things we are interested in. Number one is maintaining liquidity and ultimately returning to profitability."
AirTran's planning reflects the broad impact of the airline industry's effort to reduce capacity. Until recently, industry leaders like Gerard Arpey, CEO of AMR, have called for capacity reductions but had trouble convincing fast-growth, low-cost carriers to seriously commit. Now, the industry is expected to reduce capacity by 10% in the fourth quarter.
Ironically, the AirTran cuts come as the cost of fuel is falling. Oil traded Tuesday below $122 a barrel, continuing its decline from a record high above $147 earlier this month.
AirTran reported a disappointing second quarter. Revenue per available seat mile, or RASM, grew at just 0.1%, the lowest rate among major airlines. The carrier reported a net loss of $13.5 million, or 12 cents a share. Excluding special items, including a hedging gain equivalent to 22 cents a share, the loss was 29 cents a share. Analysts surveyed by Thomson Reuters had estimated a loss of 25 cents.
"These results are unacceptable and we are taking numerous steps to adjust," said CFO Arne Haak, on the company's earnings conference call. He said slow RASM growth followed a 12.3% second-quarter capacity increase, by far the highest in the industry, and a shift in consumer behavior to buying less-expensive tickets. "The decision to continue growth through the summer was made early this year, with fuel at $100," Haak said.
Despite disappointing results, AirTran shares were trading up 51 cents, or 19%, at $3.21 Tuesday afternoon. The gain reflected falling oil prices, improved liquidity and possibly the impression that the carrier had beaten estimates.
At the end of June, AirTran had unrestricted cash and investment balance of $445.9 million, a record quarterly high. Additionally, it negotiated an extension with its primary credit card processor through 2009 and also received a commitment for a letter of credit facility up to $150 million, which could be applied to a credit card holdback. The deals addressed two problems: "Previously, we had no provisions for a holdback and the agreement was up for renewal at the end of the year," Haak said.
07/29/08 - 03:26 PM EDT
by Ted Reed
After growing at a 20% rate during the past five years, AirTran is stepping on the brakes.
The carrier now says capacity will decline by 7% to 8% during the last four months of 2008 and by 4% to 8% during 2009, as it moves to sell aircraft and to defer 22 deliveries. "Our priorities have clearly shifted," said CEO Bob Fornaro, on an earnings conference call Tuesday. "Growth is far down on the list of things we are interested in. Number one is maintaining liquidity and ultimately returning to profitability."
AirTran's planning reflects the broad impact of the airline industry's effort to reduce capacity. Until recently, industry leaders like Gerard Arpey, CEO of AMR, have called for capacity reductions but had trouble convincing fast-growth, low-cost carriers to seriously commit. Now, the industry is expected to reduce capacity by 10% in the fourth quarter.
Ironically, the AirTran cuts come as the cost of fuel is falling. Oil traded Tuesday below $122 a barrel, continuing its decline from a record high above $147 earlier this month.
AirTran reported a disappointing second quarter. Revenue per available seat mile, or RASM, grew at just 0.1%, the lowest rate among major airlines. The carrier reported a net loss of $13.5 million, or 12 cents a share. Excluding special items, including a hedging gain equivalent to 22 cents a share, the loss was 29 cents a share. Analysts surveyed by Thomson Reuters had estimated a loss of 25 cents.
"These results are unacceptable and we are taking numerous steps to adjust," said CFO Arne Haak, on the company's earnings conference call. He said slow RASM growth followed a 12.3% second-quarter capacity increase, by far the highest in the industry, and a shift in consumer behavior to buying less-expensive tickets. "The decision to continue growth through the summer was made early this year, with fuel at $100," Haak said.
Despite disappointing results, AirTran shares were trading up 51 cents, or 19%, at $3.21 Tuesday afternoon. The gain reflected falling oil prices, improved liquidity and possibly the impression that the carrier had beaten estimates.
At the end of June, AirTran had unrestricted cash and investment balance of $445.9 million, a record quarterly high. Additionally, it negotiated an extension with its primary credit card processor through 2009 and also received a commitment for a letter of credit facility up to $150 million, which could be applied to a credit card holdback. The deals addressed two problems: "Previously, we had no provisions for a holdback and the agreement was up for renewal at the end of the year," Haak said.
AP
American Airlines, El Al announce cooperation deal
Tuesday July 29, 3:45 pm ET
American Airlines, El Al to sell seats on each other's flights
NEW YORK (AP) -- El Al, Israel's national airline, and American Airlines said Tuesday they will begin selling tickets on each other's connecting flights beginning in September.
The agreement replaces a code-share deal that El Al had with Delta Air Lines Inc. until late last year, when Delta began its own direct flights from the United States to Tel Aviv.
The agreement with American will begin Sept. 2.
American will sell tickets on El Al flights from the U.S. to Tel Aviv as if they were American jets. El Al will sell seats -- or place its "code" on tickets -- on some American domestic flights from gateway cities reached by El Al flights.
Airlines use code-share agreements to expand their network without adding planes or employees. Customers of one airline typically earn miles for the part of their trip flown on the other's plane.
El Al Chairman Israel Borovich called the deal the most comprehensive code-share agreement between his airline and a foreign carrier.
American, a unit of Fort Worth, Texas-based AMR Corp., is the largest U.S. carrier.
American Airlines, El Al announce cooperation deal
Tuesday July 29, 3:45 pm ET
American Airlines, El Al to sell seats on each other's flights
NEW YORK (AP) -- El Al, Israel's national airline, and American Airlines said Tuesday they will begin selling tickets on each other's connecting flights beginning in September.
The agreement replaces a code-share deal that El Al had with Delta Air Lines Inc. until late last year, when Delta began its own direct flights from the United States to Tel Aviv.
The agreement with American will begin Sept. 2.
American will sell tickets on El Al flights from the U.S. to Tel Aviv as if they were American jets. El Al will sell seats -- or place its "code" on tickets -- on some American domestic flights from gateway cities reached by El Al flights.
Airlines use code-share agreements to expand their network without adding planes or employees. Customers of one airline typically earn miles for the part of their trip flown on the other's plane.
El Al Chairman Israel Borovich called the deal the most comprehensive code-share agreement between his airline and a foreign carrier.
American, a unit of Fort Worth, Texas-based AMR Corp., is the largest U.S. carrier.
Monday, July 28, 2008
American Airlines moving work out of Fort Worth base
11:17 PM CDT on Monday, July 28, 2008
By TERRY MAXON / The Dallas Morning News
tmaxon@dallasnews.com
American Airlines Inc. is moving maintenance support for its Boeing 777 aircraft from its Alliance Airport base in Fort Worth to its Tulsa, Okla., base, the airline confirmed Monday.
At the same time, American is sending additional work on the Boeing 767 to Alliance, reducing the impact on the Fort Worth facility.
An airline spokesman said it will be several weeks before the carrier can say how many job cuts or layoffs may be needed at Alliance, which has about 1,900 workers represented by the Transport Workers Union, as well as 175 management and specialist employees and 30 clerical workers.
The changes are part of American's restructuring as it prepares to cut its domestic capacity 11 percent to 12 percent, resulting in an 8 percent cut in overall flying capacity (including international service) by the fourth quarter.
American's executives have said overall employment will be cut in line with the 8 percent capacity reduction.
Maintenance and engineering employees learned of the looming changes Friday in a letter from Fred Cleveland, vice president of base maintenance.
American spokesman John Hotard said Monday that the airline won't know how many jobs may be cut at its three maintenance bases at Alliance, Tulsa and Kansas City, Mo., until sometime in August.
The Kansas City base could be in the biggest peril. It was acquired when American bought Trans World Airlines Inc. in 2001. None of the reallocated work thus far has gone to Kansas City.
Among the changes in the works:
•Boeing 777 maintenance checks will move from Alliance to Tulsa this fall. "The B777 will be a good fit, as the [Tulsa] base has the capacity for wide-body aircraft and a workforce that has wide-body experience," Mr. Cleveland wrote.
•Alliance, which now does the Boeing 777 work, will take on additional Boeing 767 duties. Its repair line will be upgraded to do maintenance checks as well, Mr. Cleveland's letter stated.
•American will combine the maintenance lines for its own McDonnell Douglas MD-80 jets and that for major customer Allegiant Air at the Tulsa base.
American plans to park 30 of its 300 MD-80 aircraft by year's end, with more expected to leave the fleet in 2009 as American takes delivery of 33 new fuel-efficient Boeing 737-800 airplanes.
Tulsa, which has been doing work on American's Airbus A300 fleet, will lose that job over the next 17 months as American grounds all 34 of its A300 jets, including 10 in 2008.
Kansas City is the smallest of the three bases and is home for the Boeing 767-200 fleet.
11:17 PM CDT on Monday, July 28, 2008
By TERRY MAXON / The Dallas Morning News
tmaxon@dallasnews.com
American Airlines Inc. is moving maintenance support for its Boeing 777 aircraft from its Alliance Airport base in Fort Worth to its Tulsa, Okla., base, the airline confirmed Monday.
At the same time, American is sending additional work on the Boeing 767 to Alliance, reducing the impact on the Fort Worth facility.
An airline spokesman said it will be several weeks before the carrier can say how many job cuts or layoffs may be needed at Alliance, which has about 1,900 workers represented by the Transport Workers Union, as well as 175 management and specialist employees and 30 clerical workers.
The changes are part of American's restructuring as it prepares to cut its domestic capacity 11 percent to 12 percent, resulting in an 8 percent cut in overall flying capacity (including international service) by the fourth quarter.
American's executives have said overall employment will be cut in line with the 8 percent capacity reduction.
Maintenance and engineering employees learned of the looming changes Friday in a letter from Fred Cleveland, vice president of base maintenance.
American spokesman John Hotard said Monday that the airline won't know how many jobs may be cut at its three maintenance bases at Alliance, Tulsa and Kansas City, Mo., until sometime in August.
The Kansas City base could be in the biggest peril. It was acquired when American bought Trans World Airlines Inc. in 2001. None of the reallocated work thus far has gone to Kansas City.
Among the changes in the works:
•Boeing 777 maintenance checks will move from Alliance to Tulsa this fall. "The B777 will be a good fit, as the [Tulsa] base has the capacity for wide-body aircraft and a workforce that has wide-body experience," Mr. Cleveland wrote.
•Alliance, which now does the Boeing 777 work, will take on additional Boeing 767 duties. Its repair line will be upgraded to do maintenance checks as well, Mr. Cleveland's letter stated.
•American will combine the maintenance lines for its own McDonnell Douglas MD-80 jets and that for major customer Allegiant Air at the Tulsa base.
American plans to park 30 of its 300 MD-80 aircraft by year's end, with more expected to leave the fleet in 2009 as American takes delivery of 33 new fuel-efficient Boeing 737-800 airplanes.
Tulsa, which has been doing work on American's Airbus A300 fleet, will lose that job over the next 17 months as American grounds all 34 of its A300 jets, including 10 in 2008.
Kansas City is the smallest of the three bases and is home for the Boeing 767-200 fleet.
American may lay off 900 flight attendants
American Chief Executive Gerard Arpey in May said the Fort Worth-based airline would cut thousands of jobs as it reduces its capacity by 11 to 12 percent by the fourth quarter. Last week, American said it would significantly reduce its management and support jobs by September.
The flight attendants union says American has agreed to some provisions for early retirements, voluntary leaves of absence and "partnership flying" in which two flight attendants can share the same job.
The "voluntary bridge to retirement" or VBR, is limited to flight attendants not currently on furlough, who are at least 50 years old and with at least 15 years' seniority as of Aug. 31, the union says. Attendants would get a $15,000 severance payment and some limited medical and travel pass benefits.
The one-time "bridge to retirement" will be awarded first, followed by leaves at bases with an overage. Where overages then still exist, partnerships will be awarded. After these three voluntary provisions are exhausted, and should any overage still exist, the company will then determine how many of the remaining 900 flight attendants are ultimately to be furloughed.
Web sites: http://www.aa.com/, ww.apfa.org
UPDATED JULY 30, 2008. 368 flight attendants took the VBR (bridge to retirement) and many others took short and long term leaves so NO FURLOUGHS FOR FLIGHT ATTENDANTS AT AMERICAN AIRLINES. ed.
American Airlines Inc. has told its flight attendants' union it MAY furlough 900 flight attendants beginning Aug 31, 2008.
The Association of Professional Flight Attendants said in a hotline message to its 19,000 members that the airline delivered a Worker Adjustment and Retraining Notification Act, or WARN, letter informing them of the possible layoffs. Texas' WARN ruling requires employers to give employees a 60-day advance notice of significant layoffs.
The letter said the 900 flight attendants with the least experience would be subject to furlough. (the former TWA flight attendants)American Chief Executive Gerard Arpey in May said the Fort Worth-based airline would cut thousands of jobs as it reduces its capacity by 11 to 12 percent by the fourth quarter. Last week, American said it would significantly reduce its management and support jobs by September.
The flight attendants union says American has agreed to some provisions for early retirements, voluntary leaves of absence and "partnership flying" in which two flight attendants can share the same job.
The "voluntary bridge to retirement" or VBR, is limited to flight attendants not currently on furlough, who are at least 50 years old and with at least 15 years' seniority as of Aug. 31, the union says. Attendants would get a $15,000 severance payment and some limited medical and travel pass benefits.
The one-time "bridge to retirement" will be awarded first, followed by leaves at bases with an overage. Where overages then still exist, partnerships will be awarded. After these three voluntary provisions are exhausted, and should any overage still exist, the company will then determine how many of the remaining 900 flight attendants are ultimately to be furloughed.
Web sites: http://www.aa.com/, ww.apfa.org
Monday, July 21, 2008
Here come more cuts as these fine people lose their jobs...half of the workforce! Look for Midwest to disappear as well as Frontier. My bet is jetBlue and Frontier hook up. Same aircraft, same in-flight television...we shall see...the landscape will change as never seen before in the next year. I told you so!
ed.
Midwest Airlines to cut half of workforces with flight reductions and grounding all MD-80's
Monday, July 21, 2008 - 9:40 AM CDT Modified: Monday, July 21, 2008 - 9:41 AM
The Business Journal of Milwaukee
Midwest Airlines announced Sunday its new flight schedule beginning Sept. 8, slicing 11 cities to cut service back to 32 destinations while expanding its ticketing partnership with Northwest Airlines Corp.
Oak Creek-based Midwest Airlines will eliminate service to three airports: Ft. Lauderdale, Fla.; Ft. Myers, Fla.; and San Diego. Service to two West Coast destinations -- Los Angeles and Seattle/Tacoma -- will now be offered via Kansas City year-round, in the same way the airline currently offers service to San Francisco, but travelers flying from Milwaukee to those two cities will have one stop in Kansas City, as opposed to the non-stop flights now offered.
Long-haul flights from Milwaukee to West Coast cities are affected by the airline’s decision to ground its MD-80 aircraft, which have longer range than its Boeing 717s but are also less fuel-efficient. The airline is restructuring its routes, cutting back service and eliminating about 1,200 jobs -- about 40 percent of its work force -- because of skyrocketing fuel costs.
Service to Orlando, Fla., will now be offered seasonally during peak travel months. This season, nonstop Milwaukee-Orlando service will commence Oct. 21 and end April 30, 2009. As Midwest transitions to seasonal Orlando service, it will suspend service to that city from Sept. 8 through Oct. 20. Nonstop service between Kansas City and Orlando will be discontinued, but Kansas City-Orlando service will continue to be available via Milwaukee.
Midwest is also expanding its codeshare agreement with Eagan, Minn.-based Northwest Airlines (NYSE: NWA), adding more than 100 new city pairs to the program. Codeshare flights are essentially flights offered by an airline on a partner airline’s planes.
“We will remain true to our mission of serving major business destinations with more nonstop flights from Milwaukee than any other airline,” said Timothy Hoeksema, chairman and chief executive officer. “From Kansas City, we will continue to serve as an important resource for the business community, with flights to key East and West Coast cities. While there will be adjustments to frequency in some of these markets, we will continue to offer convenient service and the unparalleled customer service our passengers expect from us.”
The airline will also discontinue service to eight airports currently served by its Midwest Connect regional jet service: Baltimore; Hartford, Conn.; Louisville, Ky.; Muskegon, Mich.; Raleigh/Durham, N.C.; St. Louis; San Antonio; and Wausau/Stevens Point. Additionally, it will discontinue its nonstop Kansas City-Madison route, but will continue to offer the service via Milwaukee.
The new schedule, which is posted at http://www.midwestairlines.com, also includes frequency and timing adjustments on various routes.
ed.
Midwest Airlines to cut half of workforces with flight reductions and grounding all MD-80's
Monday, July 21, 2008 - 9:40 AM CDT Modified: Monday, July 21, 2008 - 9:41 AM
The Business Journal of Milwaukee
Midwest Airlines announced Sunday its new flight schedule beginning Sept. 8, slicing 11 cities to cut service back to 32 destinations while expanding its ticketing partnership with Northwest Airlines Corp.
Oak Creek-based Midwest Airlines will eliminate service to three airports: Ft. Lauderdale, Fla.; Ft. Myers, Fla.; and San Diego. Service to two West Coast destinations -- Los Angeles and Seattle/Tacoma -- will now be offered via Kansas City year-round, in the same way the airline currently offers service to San Francisco, but travelers flying from Milwaukee to those two cities will have one stop in Kansas City, as opposed to the non-stop flights now offered.
Long-haul flights from Milwaukee to West Coast cities are affected by the airline’s decision to ground its MD-80 aircraft, which have longer range than its Boeing 717s but are also less fuel-efficient. The airline is restructuring its routes, cutting back service and eliminating about 1,200 jobs -- about 40 percent of its work force -- because of skyrocketing fuel costs.
Service to Orlando, Fla., will now be offered seasonally during peak travel months. This season, nonstop Milwaukee-Orlando service will commence Oct. 21 and end April 30, 2009. As Midwest transitions to seasonal Orlando service, it will suspend service to that city from Sept. 8 through Oct. 20. Nonstop service between Kansas City and Orlando will be discontinued, but Kansas City-Orlando service will continue to be available via Milwaukee.
Midwest is also expanding its codeshare agreement with Eagan, Minn.-based Northwest Airlines (NYSE: NWA), adding more than 100 new city pairs to the program. Codeshare flights are essentially flights offered by an airline on a partner airline’s planes.
“We will remain true to our mission of serving major business destinations with more nonstop flights from Milwaukee than any other airline,” said Timothy Hoeksema, chairman and chief executive officer. “From Kansas City, we will continue to serve as an important resource for the business community, with flights to key East and West Coast cities. While there will be adjustments to frequency in some of these markets, we will continue to offer convenient service and the unparalleled customer service our passengers expect from us.”
The airline will also discontinue service to eight airports currently served by its Midwest Connect regional jet service: Baltimore; Hartford, Conn.; Louisville, Ky.; Muskegon, Mich.; Raleigh/Durham, N.C.; St. Louis; San Antonio; and Wausau/Stevens Point. Additionally, it will discontinue its nonstop Kansas City-Madison route, but will continue to offer the service via Milwaukee.
The new schedule, which is posted at http://www.midwestairlines.com, also includes frequency and timing adjustments on various routes.
Sunday, July 20, 2008
Fasten Your seatbelts...here we go again! Replacement new aircraft need less repairs...so hang in there, my colleagues. Let's hope we all land safely.
ed.
AP
American Airlines to cut 1,500 jobs in maintenance
Friday July 18, 6:59 pm ET By David Koenig, AP Business Writer
American Airlines to cutting 1,500 maintenance jobs around US as it reduces aircraft fleet
DALLAS (AP) -- American Airlines will cut 1,500 jobs in its maintenance division as it reduces its fleet of aircraft.
The nation's largest airline told employees of the cuts in memos this week.
American did not break down the cuts by location. Tami McLallen, a spokeswoman for the airline, said Friday that those decisions had not yet been made.
The airline has maintenance hubs in Kansas City, Tulsa, Okla., and Fort Worth, Texas, plus many smaller bases around the country. Besides maintaining American's jets, workers at the hubs also work on jets brought in by other carriers.
American has about 14,000 employees in its maintenance division, including management and support staff, and 13,000 of them are represented by the Transport Workers Union, McLallen said.
The cuts include 1,300 mechanics and 200 management and support staff, she said.
The Fort Worth-based airline, part of AMR Corp., announced two weeks ago it would shed 8 percent of its work force -- about 6,800 jobs -- to cope with financial distress brought on by record fuel costs and a weakening economy.
The company has publicly identified only a portion of those cuts. It has said it will eliminate 900 flight attendant jobs and 200 pilot positions. The company is offering buyouts to senior employees to reduce the need for layoffs.
Chief Financial Officer Tom Horton hinted at the latest cuts when he said this week that American's maintenance organization was built for a much bigger airline than the one that will emerge after announced reductions in capacity.
American plans to cut its U.S. flying by up to 12 percent after the busy summer travel season ends.
On Wednesday, American announced it would speed up the retirement of its 34 Airbus A300 aircraft by the end of next year instead of waiting until 2012. American and its feeder carrier, American Eagle, will ground 103 planes this year.
AMR reported Wednesday that it lost $1.45 billion in the April-to-June quarter, most of it due to writing down the value of aircraft. Excluding those charges, the loss was $284 million.
AMR shares rose 22 cents, or 3.2 percent, to $7.13 in Friday trading.
ed.
AP
American Airlines to cut 1,500 jobs in maintenance
Friday July 18, 6:59 pm ET By David Koenig, AP Business Writer
American Airlines to cutting 1,500 maintenance jobs around US as it reduces aircraft fleet
DALLAS (AP) -- American Airlines will cut 1,500 jobs in its maintenance division as it reduces its fleet of aircraft.
The nation's largest airline told employees of the cuts in memos this week.
American did not break down the cuts by location. Tami McLallen, a spokeswoman for the airline, said Friday that those decisions had not yet been made.
The airline has maintenance hubs in Kansas City, Tulsa, Okla., and Fort Worth, Texas, plus many smaller bases around the country. Besides maintaining American's jets, workers at the hubs also work on jets brought in by other carriers.
American has about 14,000 employees in its maintenance division, including management and support staff, and 13,000 of them are represented by the Transport Workers Union, McLallen said.
The cuts include 1,300 mechanics and 200 management and support staff, she said.
The Fort Worth-based airline, part of AMR Corp., announced two weeks ago it would shed 8 percent of its work force -- about 6,800 jobs -- to cope with financial distress brought on by record fuel costs and a weakening economy.
The company has publicly identified only a portion of those cuts. It has said it will eliminate 900 flight attendant jobs and 200 pilot positions. The company is offering buyouts to senior employees to reduce the need for layoffs.
Chief Financial Officer Tom Horton hinted at the latest cuts when he said this week that American's maintenance organization was built for a much bigger airline than the one that will emerge after announced reductions in capacity.
American plans to cut its U.S. flying by up to 12 percent after the busy summer travel season ends.
On Wednesday, American announced it would speed up the retirement of its 34 Airbus A300 aircraft by the end of next year instead of waiting until 2012. American and its feeder carrier, American Eagle, will ground 103 planes this year.
AMR reported Wednesday that it lost $1.45 billion in the April-to-June quarter, most of it due to writing down the value of aircraft. Excluding those charges, the loss was $284 million.
AMR shares rose 22 cents, or 3.2 percent, to $7.13 in Friday trading.
Wednesday, July 16, 2008
American Airlines' owner swings to big loss in 2Q
AP
Wednesday July 16, 11:41 am
ET By David Koenig, AP Business Writer
AMR, parent of American Airlines, swings to big second-quarter loss on fuel costs, charges
DALLAS (AP) -- The parent of American Airlines swung to a big loss in the second quarter as high fuel prices swamped an increase in revenue and led the nation's largest carrier to write down the value of its jets.
Still, the results reported Wednesday were not as bad as Wall Street had feared.
Aided by a sharp drop in oil prices, airline stocks surged. Shares of AMR Corp. jumped $1, or 22.7 percent, to $5.41 in morning trading just a day after hitting a 52-week low of $4.
AMR said that for the three months ending June 30, it lost $1.45 billion, or $5.77 per share, compared to a profit of $317 million, or $1.08 per share, a year ago.
Excluding special charges to write down the value of its fleet, AMR said it would have lost $284 million, or $1.13 per share.
Analysts, who typically exclude charges from their forecasts, expected AMR to lose $1.40 per share, according to a survey by Thomson Financial.
Revenue rose 5.1 percent, to $6.18 billion. Analysts expected $6.14 billion.
Fuel costs spiked 47.4 percent, to $2.42 billion -- an increase of about $780 million from a year ago.
A gallon of jet fuel went from $2.09 a year ago to $3.19, and would have been even higher if the company hadn't bought some of its fuel in advance at lower prices. AMR expects to pay $3.81 per gallon in the third quarter.
Chairman and Chief Executive Gerard Arpey called the second-quarter results disappointing, but he said the Fort Worth-based company was taking steps to manage through a tough stretch.
AMR, which also owns the American Eagle airline, is cutting about 6,800 jobs and reducing its U.S. flying sharply to bring down costs while raising fares and special fees to boost revenue. Analysts, however, expect the company to keep losing money at least through 2010.
"Our company continues to be severely challenged by the fuel crisis that has afflicted our entire industry, and we expect these difficulties to continue for the foreseeable future," Arpey said in a statement.
Arpey said the company would do whatever it takes -- including cutting capacity, raising revenue and changing its fleet -- to turn things around.
The company announced Wednesday that it would speed up the retirement of its 34 Airbus A300 aircraft by the end of next year instead of the original plan, which stretched through 2012. In all, American and Eagle will ground 103 planes this year.
Over the next three years, American is replacing some of its gas-guzzling MD-80 jets with 70 Boeing 737s, which get better mileage.
AMR also said Wednesday that it has put on hold its plan to sell or spin off American Eagle until conditions improve in the airline industry.
A sale could boost AMR's cash balance, which ended the quarter at more than $5 billion in unrestricted cash and short-term investments. In the quarter, AMR raised $720 million by mortgaging some planes and selling others, then leasing them back. Total debt fell to $15.2 billion, down from $17.3 billion a year ago.
Ray Neidl, an analyst with Calyon Securities, said the quarterly results were "a little better then expected" but the situation "remains dire."
American will be happy to turn the page on the second quarter, which began with a costly grounding of its entire fleet of 300 MD-80s because some failed inspections of the electrical wiring. The March-through-June period ended with AMR taking a $1.1 billion non-cash charge to write down the value of planes and $55 million for severance expenses.
During the quarter, American became the first major U.S. carrier to impose a fee for checking even a single bag, and it raised a variety of other special charges on passengers.
After the peak summer travel season ends, American expects to cut its U.S. capacity 11 percent to 12 percent compared with late 2007. The company said further reductions are expected next year.
AP
Wednesday July 16, 11:41 am
ET By David Koenig, AP Business Writer
AMR, parent of American Airlines, swings to big second-quarter loss on fuel costs, charges
DALLAS (AP) -- The parent of American Airlines swung to a big loss in the second quarter as high fuel prices swamped an increase in revenue and led the nation's largest carrier to write down the value of its jets.
Still, the results reported Wednesday were not as bad as Wall Street had feared.
Aided by a sharp drop in oil prices, airline stocks surged. Shares of AMR Corp. jumped $1, or 22.7 percent, to $5.41 in morning trading just a day after hitting a 52-week low of $4.
AMR said that for the three months ending June 30, it lost $1.45 billion, or $5.77 per share, compared to a profit of $317 million, or $1.08 per share, a year ago.
Excluding special charges to write down the value of its fleet, AMR said it would have lost $284 million, or $1.13 per share.
Analysts, who typically exclude charges from their forecasts, expected AMR to lose $1.40 per share, according to a survey by Thomson Financial.
Revenue rose 5.1 percent, to $6.18 billion. Analysts expected $6.14 billion.
Fuel costs spiked 47.4 percent, to $2.42 billion -- an increase of about $780 million from a year ago.
A gallon of jet fuel went from $2.09 a year ago to $3.19, and would have been even higher if the company hadn't bought some of its fuel in advance at lower prices. AMR expects to pay $3.81 per gallon in the third quarter.
Chairman and Chief Executive Gerard Arpey called the second-quarter results disappointing, but he said the Fort Worth-based company was taking steps to manage through a tough stretch.
AMR, which also owns the American Eagle airline, is cutting about 6,800 jobs and reducing its U.S. flying sharply to bring down costs while raising fares and special fees to boost revenue. Analysts, however, expect the company to keep losing money at least through 2010.
"Our company continues to be severely challenged by the fuel crisis that has afflicted our entire industry, and we expect these difficulties to continue for the foreseeable future," Arpey said in a statement.
Arpey said the company would do whatever it takes -- including cutting capacity, raising revenue and changing its fleet -- to turn things around.
The company announced Wednesday that it would speed up the retirement of its 34 Airbus A300 aircraft by the end of next year instead of the original plan, which stretched through 2012. In all, American and Eagle will ground 103 planes this year.
Over the next three years, American is replacing some of its gas-guzzling MD-80 jets with 70 Boeing 737s, which get better mileage.
AMR also said Wednesday that it has put on hold its plan to sell or spin off American Eagle until conditions improve in the airline industry.
A sale could boost AMR's cash balance, which ended the quarter at more than $5 billion in unrestricted cash and short-term investments. In the quarter, AMR raised $720 million by mortgaging some planes and selling others, then leasing them back. Total debt fell to $15.2 billion, down from $17.3 billion a year ago.
Ray Neidl, an analyst with Calyon Securities, said the quarterly results were "a little better then expected" but the situation "remains dire."
American will be happy to turn the page on the second quarter, which began with a costly grounding of its entire fleet of 300 MD-80s because some failed inspections of the electrical wiring. The March-through-June period ended with AMR taking a $1.1 billion non-cash charge to write down the value of planes and $55 million for severance expenses.
During the quarter, American became the first major U.S. carrier to impose a fee for checking even a single bag, and it raised a variety of other special charges on passengers.
After the peak summer travel season ends, American expects to cut its U.S. capacity 11 percent to 12 percent compared with late 2007. The company said further reductions are expected next year.
July 16, 2008, 11:16 am
What Southwest Airlines Could Teach Delta and American
Posted by Heidi N. Moore
There is an interesting dichotomy at play in the airline industry: some airlines are actually profiting from rising oil prices.
Consider Delta Air Lines’ earnings today. The Atlanta airline, which has agreed to combine with Northwest Airlines, announced a $1.04 billion second-quarter net loss, partly because of rising fuel costs. But it could have been far worse. Delta actually earned a tidy bundle on the rising price of oil–more, in fact, than it counted in earnings this quarter.
Delta, with the help of its Wall Street investment bankers, created hedges to protect its business against rising oil prices. But as the WSJ reported today, “Delta hedged 49% of its fuel consumption and realized about $313 million in gains.” Delta’s earnings this quarter–excluding write-downs–were only $137 million.
American Airlines wasn’t as lucky, as its hedges missed the mark by a long shot. In June AMR revealed it had hedges on about 33% of fuel consumption. Taken in aggregate, it bet that oil prices wouldn’t rise above $78 a barrel this year. Oil today is at around $136 a barrel.
On the other side of the coin, consider Southwest Airlines. It has about $5 billion of fuel hedges, or about half of its market cap. Morgan Stanley analyst William Greene Tuesday went as far as to call Southwest an “oil play,” and complained that airlines’ fuel hedges cover a multitude of sins and may be an excuse for the airline to avoid cutting capacity. Greene wrote: “Considering that [Southwest’s] management recently suggested it may revisit its capacity plans and potentially raise growth suggests that management does not view its fuel hedge as a temporary comparative advantage but rather as a durable competitive advantage.
Not addressing the company’s economic challenges today may lead to a more difficult adjustment in the future.”The question, as always, is whether capacity cuts are what the industry needs. Greene believes they are. Still, late last week he presented several reasons why airlines would want to avoid any extensive cuts in capacity and “chase oil” instead.
In his words:
(1) The network effect of a hub-and-spoke model deteriorates as capacity is cut
(2) Labor contracts, fleet planning, and aircraft/facility financing make large capacity cuts difficult to reverse in the short-term
(3) An habitual (if currently muted) focus on maintaining and gaining market share
(4) An inability to predict competitive responses
(5) Lack of visibility in airline revenue trends
(6) Uncertainty surrounding oil prices, a pullback could quickly make many routes profitable
Employees who made significant concessions in union negotiations are going to be watching that bottom line very carefully. Especially the pilots at Delta and Northwest. As Delta noted today, “Pilots at both companies will receive pay raises and an equity stake in the combined company.” That money has to come from somewhere.
What Southwest Airlines Could Teach Delta and American
Posted by Heidi N. Moore
There is an interesting dichotomy at play in the airline industry: some airlines are actually profiting from rising oil prices.
Consider Delta Air Lines’ earnings today. The Atlanta airline, which has agreed to combine with Northwest Airlines, announced a $1.04 billion second-quarter net loss, partly because of rising fuel costs. But it could have been far worse. Delta actually earned a tidy bundle on the rising price of oil–more, in fact, than it counted in earnings this quarter.
Delta, with the help of its Wall Street investment bankers, created hedges to protect its business against rising oil prices. But as the WSJ reported today, “Delta hedged 49% of its fuel consumption and realized about $313 million in gains.” Delta’s earnings this quarter–excluding write-downs–were only $137 million.
American Airlines wasn’t as lucky, as its hedges missed the mark by a long shot. In June AMR revealed it had hedges on about 33% of fuel consumption. Taken in aggregate, it bet that oil prices wouldn’t rise above $78 a barrel this year. Oil today is at around $136 a barrel.
On the other side of the coin, consider Southwest Airlines. It has about $5 billion of fuel hedges, or about half of its market cap. Morgan Stanley analyst William Greene Tuesday went as far as to call Southwest an “oil play,” and complained that airlines’ fuel hedges cover a multitude of sins and may be an excuse for the airline to avoid cutting capacity. Greene wrote: “Considering that [Southwest’s] management recently suggested it may revisit its capacity plans and potentially raise growth suggests that management does not view its fuel hedge as a temporary comparative advantage but rather as a durable competitive advantage.
Not addressing the company’s economic challenges today may lead to a more difficult adjustment in the future.”The question, as always, is whether capacity cuts are what the industry needs. Greene believes they are. Still, late last week he presented several reasons why airlines would want to avoid any extensive cuts in capacity and “chase oil” instead.
In his words:
(1) The network effect of a hub-and-spoke model deteriorates as capacity is cut
(2) Labor contracts, fleet planning, and aircraft/facility financing make large capacity cuts difficult to reverse in the short-term
(3) An habitual (if currently muted) focus on maintaining and gaining market share
(4) An inability to predict competitive responses
(5) Lack of visibility in airline revenue trends
(6) Uncertainty surrounding oil prices, a pullback could quickly make many routes profitable
Employees who made significant concessions in union negotiations are going to be watching that bottom line very carefully. Especially the pilots at Delta and Northwest. As Delta noted today, “Pilots at both companies will receive pay raises and an equity stake in the combined company.” That money has to come from somewhere.
Monday, July 14, 2008
An American Airlines Hostess in 1967 (Getty photos)
The Way It USED to be!
When People Dressed For The Flying!
A Shame The Way People Dress At The Airport
And On The Aircraft!
The First Class Cabin When First Class was First Class!
Commentary
The public wanted cheap seats (hence the flip-flops and T-shirt dress in First Class...when First Class WAS First Class) and airline management and the unions got greedy. Now you have an airline system falling flat on its ass. You cannot have it both ways. Decide what kind of airline you wish to be and set a business model. Changing the way you do business on a daily basis confuses everyone!
People hated airplane food; the butt of jokes...now they wished they'd have it back. Go figure.
ed.
By SCOTT MCCARTNEY
Yearning for the Glamorous Golden Age of Flying
July 15, 2008
'Boeing Boeing,' JetBlue Indulge In Nostalgia'Boeing Boeing," a current hit on Broadway, is a revival of a 1960s farce about a bachelor in Paris who juggles three girlfriends, all dazzling, miniskirted stewardesses, by relying on the accuracy of airline timetables to schedule trysts. "My fiancées wheel about the earth so precisely as to be almost poetic," boasts the cad "Bernard."
Audiences in New York and London have found the proposition hysterical. Of course even in the early days of jet travel, airline flights run into delays and cancellations and schedules get discombobulated. Hilarity ensues.
The production, which won two Tony awards this year, channels a feeling many travelers share these days -- nostalgia for the good ol' days when flying was an uncrowded, enjoyable, adventurous dress-up luxury. You hear it often from longtime road warriors who hate the unpredictable flying-bus travel of today, especially in summer, when the U.S. air-travel system bogs down with long lines, late flights, missed connections and gruff service. Move along, shut up and pay your fees, right?
Nostalgia for the glam days of air-travel seems to be growing. JetBlue Airways Corp., for example, has launched an advertising campaign touting "Happy Jetting" that uses '60s style type in its print ads to give it a retro feel, trying to recall not only JetBlue's early days before it ran smack into long delays and stranded passengers, but also to the fond feelings people once had for air travel.
Can we ever go back to the fun traveling days of the 1960s and 1970s? What do you miss most about those bygone days? "I don't think people have let go of looking for every aspect of travel to be experiential," said Fiona Morrison, JetBlue's director of brand management and advertising.
There also have been various calls to rethink deregulation of the airline industry as it enters another tumultuous recession because of high fuel costs. Removing government controls on airline schedules and prices ignited tremendous growth in air travel, boosting the national economy and changing our lifestyles by making air travel cheap and available to the masses. But it also has meant instability for airlines, poorer service for many travelers and congestion in the skies, on runways and in terminals.
Robert Crandall, the now-retired chief of AMR Corp.'s American Airlines, recently called for re-regulating some aspects of the business, such as government playing a greater role in airline schedules to curb devastating delays.
"The idea of allowing airlines to schedule more flights than an airport can handle is unacceptable stupidity," Mr. Crandall said in an interview. "We can't have planes sitting for hours and spilling fuel out the tailpipe."
Joan Marcus
A flight from the mid-1960s.
The nation needs to accelerate deployment of a satellite-based navigation system as well, he said, because it will boost capacity, speed up air travel, reduce fuel use and pollution, and improve airline finances.
Of course, the good ol' days weren't as good as we probably remember them today -- flying was expensive and sometimes unreliable even then. Today's jets are more dependable mechanically and fly faster and higher in smoother air. Flying is much safer today than it was even 20 years ago, and airline schedules offer much more flexibility to consumers than they did in the 1960s and 1970s.
The trade-off for low ticket prices and ample air service is that airline seats are squished together, terminals are chock-a-block, passengers are sorted through connecting hub airports, more luggage gets lost, and delays have become rampant.
Few people in aviation, including Mr. Crandall, think we can ever go back to the days when half of the seats on jets were empty, offering comfort to fliers, and airports and airlines operated far below peak capacity. The reality of the airline world is that many travelers -- not all, but certainly most -- buy based on low prices and schedule convenience. They won't pay more for the promise of extra legroom and onboard meals.
"People regard the airline seat as a commodity," Mr. Crandall said.
JetBlue took off eight years ago trying to differentiate itself with some frills as well as cheap ticket prices, offering leather seats, onboard satellite television, friendly flight attendants and snacks instead of peanuts.
"When we launched, we were harking back to the glory days when it was exciting to travel," says Ms. Morrison. The "Happy Jetting" campaign is an attempt to recapture the airlines early days instead of the recent history of planes stranded in snowstorms and long delays.
The cast of the Broadway show 'Boeing Boeing.'
"Boeing Boeing" harks back much further to a day when airlines also sold sex appeal, with glamorous stewardesses chosen partly for their looks. The show was a flop on Broadway when it arrived in 1965, lasting only 23 performances. (The French farce, written by Marc Camoletti, had been a hit in Paris and London, and was made into a movie starring Tony Curtis and Jerry Lewis.)
But today it is much funnier because its premise seems so preposterous -- one man trying to organize three relationships based on airline schedules, a two-day layover for "Gloria," a Trans World Airlines stewardess, followed in short order by visits from "Gabriella" from Alitalia and "Gretchen" from Lufthansa. Say goodbye to one over lunch; welcome another a few hours later over dinner. "You just follow the timetable," says "Bernard," played by Bradley Whitford of "West Wing" fame.
Actress Kathryn Hahn, who plays "Gloria," said in an interview that many flight attendants come to see the show and lament at how much more difficult their jobs are now, with worries about air rage, terrorism, difficult travel and company layoffs.
"There's also something sad, something innocent about this play after Sept. 11 and after so many horrible travel tales," Ms. Hahn said.
The Way It USED to be!
When People Dressed For The Flying!
A Shame The Way People Dress At The Airport
And On The Aircraft!
The First Class Cabin When First Class was First Class!Commentary
The public wanted cheap seats (hence the flip-flops and T-shirt dress in First Class...when First Class WAS First Class) and airline management and the unions got greedy. Now you have an airline system falling flat on its ass. You cannot have it both ways. Decide what kind of airline you wish to be and set a business model. Changing the way you do business on a daily basis confuses everyone!
People hated airplane food; the butt of jokes...now they wished they'd have it back. Go figure.
ed.
THE MIDDLE SEAT
By SCOTT MCCARTNEY
Yearning for the Glamorous Golden Age of Flying
July 15, 2008
'Boeing Boeing,' JetBlue Indulge In Nostalgia'Boeing Boeing," a current hit on Broadway, is a revival of a 1960s farce about a bachelor in Paris who juggles three girlfriends, all dazzling, miniskirted stewardesses, by relying on the accuracy of airline timetables to schedule trysts. "My fiancées wheel about the earth so precisely as to be almost poetic," boasts the cad "Bernard."
Audiences in New York and London have found the proposition hysterical. Of course even in the early days of jet travel, airline flights run into delays and cancellations and schedules get discombobulated. Hilarity ensues.
The production, which won two Tony awards this year, channels a feeling many travelers share these days -- nostalgia for the good ol' days when flying was an uncrowded, enjoyable, adventurous dress-up luxury. You hear it often from longtime road warriors who hate the unpredictable flying-bus travel of today, especially in summer, when the U.S. air-travel system bogs down with long lines, late flights, missed connections and gruff service. Move along, shut up and pay your fees, right?
Nostalgia for the glam days of air-travel seems to be growing. JetBlue Airways Corp., for example, has launched an advertising campaign touting "Happy Jetting" that uses '60s style type in its print ads to give it a retro feel, trying to recall not only JetBlue's early days before it ran smack into long delays and stranded passengers, but also to the fond feelings people once had for air travel.
Can we ever go back to the fun traveling days of the 1960s and 1970s? What do you miss most about those bygone days? "I don't think people have let go of looking for every aspect of travel to be experiential," said Fiona Morrison, JetBlue's director of brand management and advertising.
There also have been various calls to rethink deregulation of the airline industry as it enters another tumultuous recession because of high fuel costs. Removing government controls on airline schedules and prices ignited tremendous growth in air travel, boosting the national economy and changing our lifestyles by making air travel cheap and available to the masses. But it also has meant instability for airlines, poorer service for many travelers and congestion in the skies, on runways and in terminals.
Robert Crandall, the now-retired chief of AMR Corp.'s American Airlines, recently called for re-regulating some aspects of the business, such as government playing a greater role in airline schedules to curb devastating delays.
"The idea of allowing airlines to schedule more flights than an airport can handle is unacceptable stupidity," Mr. Crandall said in an interview. "We can't have planes sitting for hours and spilling fuel out the tailpipe."
Joan Marcus
A flight from the mid-1960s.
The nation needs to accelerate deployment of a satellite-based navigation system as well, he said, because it will boost capacity, speed up air travel, reduce fuel use and pollution, and improve airline finances.
Of course, the good ol' days weren't as good as we probably remember them today -- flying was expensive and sometimes unreliable even then. Today's jets are more dependable mechanically and fly faster and higher in smoother air. Flying is much safer today than it was even 20 years ago, and airline schedules offer much more flexibility to consumers than they did in the 1960s and 1970s.
The trade-off for low ticket prices and ample air service is that airline seats are squished together, terminals are chock-a-block, passengers are sorted through connecting hub airports, more luggage gets lost, and delays have become rampant.
Few people in aviation, including Mr. Crandall, think we can ever go back to the days when half of the seats on jets were empty, offering comfort to fliers, and airports and airlines operated far below peak capacity. The reality of the airline world is that many travelers -- not all, but certainly most -- buy based on low prices and schedule convenience. They won't pay more for the promise of extra legroom and onboard meals.
"People regard the airline seat as a commodity," Mr. Crandall said.
JetBlue took off eight years ago trying to differentiate itself with some frills as well as cheap ticket prices, offering leather seats, onboard satellite television, friendly flight attendants and snacks instead of peanuts.
"When we launched, we were harking back to the glory days when it was exciting to travel," says Ms. Morrison. The "Happy Jetting" campaign is an attempt to recapture the airlines early days instead of the recent history of planes stranded in snowstorms and long delays.
The cast of the Broadway show 'Boeing Boeing.'
"Boeing Boeing" harks back much further to a day when airlines also sold sex appeal, with glamorous stewardesses chosen partly for their looks. The show was a flop on Broadway when it arrived in 1965, lasting only 23 performances. (The French farce, written by Marc Camoletti, had been a hit in Paris and London, and was made into a movie starring Tony Curtis and Jerry Lewis.)
But today it is much funnier because its premise seems so preposterous -- one man trying to organize three relationships based on airline schedules, a two-day layover for "Gloria," a Trans World Airlines stewardess, followed in short order by visits from "Gabriella" from Alitalia and "Gretchen" from Lufthansa. Say goodbye to one over lunch; welcome another a few hours later over dinner. "You just follow the timetable," says "Bernard," played by Bradley Whitford of "West Wing" fame.
Actress Kathryn Hahn, who plays "Gloria," said in an interview that many flight attendants come to see the show and lament at how much more difficult their jobs are now, with worries about air rage, terrorism, difficult travel and company layoffs.
"There's also something sad, something innocent about this play after Sept. 11 and after so many horrible travel tales," Ms. Hahn said.
Producer Sonia Friedman says "Boeing Boeing" would have been a disaster 10 years ago, with its political incorrectness and stereotypes panned by audiences and critics. Producers had a difficult time raising money for the revival, which opened last year in London, but the show proved a hit.
"It taps into a time people recall fondly," says Ms. Friedman, not only in terms of travel but also in relationships and sex. "And we know we can never do it again."
"It taps into a time people recall fondly," says Ms. Friedman, not only in terms of travel but also in relationships and sex. "And we know we can never do it again."
Thursday, July 10, 2008
Companies that vanished: TWA, a story of American CapitalismPosted Jun 9th 2008 by Michael Rainey
The story of Trans World Airlines is the story of American capitalism in the 20th century. Founded by aviation pioneers and scrappy entrepreneurs, TWA became one of the largest and most successful airlines in the world. It racked up numerous awards and distinctions and created a devoted base of customers and employees.
Along the way, it also displayed the twisted corporate history typical of capitalism American-style, with plenty of buyouts and mergers and awkward transitions. Finally, it ended up the victim of vulture capitalists, who picked it clean and sold its carcass to a competitor. All in all, a heckuva ride.
The company got its official beginning in 1930, when Transcontinental Air Transport and Western Air Express merged to form Transcontinental & Western Air (T&WA). The merger was driven by one of the great motivators in American free market capitalism: the pursuit of lucrative government contracts.
In this case, the contracts were for airmail transport and the new airline was soon rolling in federal dough, though not for long. The great Air Mail Scandal of 1934 brought an end to that arrangement and the airlines split up, although the name lived on. From 1930 forward, TWA experienced some dramatic ups and downs.
After a TWA crash killed Notre Dame coach Knute Rockne in 1931, the airline nearly went out of business. It survived though and went on to pioneer the use of many of the great aircraft of the 20th century, including the first (and only) DC-1, the Boeing Stratoliner, and the Lockheed Constellation.
TWA also built some beautiful buildings, including the famous terminal at JFK in New York designed by Eero Saarinen. And TWA gained some noteworthy owners and managers along the way, most famously the reclusive though aircraft obsessed Howard Hughes, who lost control of the airline when his effort to upgrade to jets in the 1950s hit some financial turbulence. TWA peaked in the early 1980s, when it was carrying over half of all passengers traveling from the U.S. to Europe.
But deregulation and a lack of investment in new aircraft hit the airline hard, and the airline was acquired by Carl Icahn in 1985 in a hostile takeover. In classic form, Icahn took the company private in 1988, pocketing nearly $500 million for himself while saddling the company with $540 million in debt. Four years later, stripped of its most valuable assets (like the routes to London sold to American Airlines) and struggling with massive debt payments, TWA declared bankruptcy. More difficulties followed.
Icahn made a deal that allowed him to buy certain TWA tickets for 55 cents on the dollar, then sell them for his own profit, which he did relentlessly at Lowestfare.com, costing TWA hundreds of millions of dollars. Another bankruptcy in 1995 took care of that problem.
Then TWA flight 800 exploded over the ocean near New York City in 1996, killing all 230 aboard. After that, TWA focused on domestic routes, but with decreasing success. Finally, American Airlines bought TWA in 2001, ending its run as an independent company.
Although it doesn't seem to be part of the official history of the company, Trans World Airlines was also a victim of the September 11 attacks against the United Sates. The airline had been struggling for years before that, but the attacks and the resulting turmoil in the airline industry were a final nail in the coffin.
Oddly enough, I took a TWA flight to Paris in early September, 2001. I didn't know it at the time, but it was one of the last TWA flights over the Atlantic.My girlfriend and I were scheduled to return to the U.S. on September 17 on TWA. Most flights were canceled in the days after 9/11, so we knew we wouldn't be leaving on that day. But we went to the airport in Paris anyway -- we couldn't call TWA, since the phone lines were jammed -- and were amazed by what we saw.
Thousands of people waited in lines, and many of them looked like they had been at the airport for days. I could hear loud American voices offering large sums of money to get on a plane back home or anywhere close. One group of travelers bought tickets to Mexico City and planned to rent or buy a car to get back home to Dallas.
It was a pretty chaotic scene.But at the TWA counter, the situation was different: there were no passengers at all. We walked right up to the counter and immediately spoke to the agents. We quickly found out why there was no one else there: TWA was no longer flying back to New York. In fact, TWA was no longer flying at all.
So despite the fact that we had purchased round trip tickets on TWA and had flown to Paris on a TWA plane, we would not be flying home on one. We ended up flying home days later on American Airlines. But TWA was gone for good.
Wednesday, July 09, 2008
(The Tucson Airport Authority, a private entity, runs the Tucson Airport. If they had suspended or waved landing fees until jet fuel comes down to earth jetBlue and Executive Jet MIGHT have stayed in Tucson) ed.
ExpressJet cuts mean loss of Tucson flights
By Jack Gillum
Arizona Daily Star
Tucson, Arizona Published: 07.09.2008
ExpressJet Airlines Inc. is ending its nationwide branded service, effectively cutting four remaining destinations from Tucson International Airport in September.
This latest move by the Houston-based regional air carrier marks a setback for Tucson and other mid-sized cities serviced by the low-cost airline, which has been grappling with skyrocketing fuel costs of late.
ExpressJet was widely seen as a boon for Tucson travelers. In fact, the airline singlehandedly increased destinations available from the Old Pueblo by almost 50 percent in 2007, and airport officials frequently touted the new service.
But earlier this year, signs began emerging that the airline was facing trouble. In March, ExpressJet stopped its El Paso service, and in May, it announced it was cutting flights between Tucson and Spokane, Wash.; Austin, Texas; Omaha, Neb.; and Reno, Nev.
The airline’s demise disappointed many local air travelers. “It was perfect because they had so many nonstops,” said Pam Francis, 54, who travels between Tucson and Austin to visit her son. Stopping over in other cities with some other airlines, she said, “was a disaster.”
ExpressJet, on the other hand, was a $189 round-trip fare and “was just delightful all the way around.”Earlier this month, ExpressJet said it would be cutting its Delta Connection service on Sept. 1, effectively ending non-stop service between Tucson to Los Angeles International Airport.
The new announcement means it will no longer fly to Kansas City; Ontario, Calif.; San Antonio and Sacramento, Calif. The airline will continue to operate Continental Airlines’s daily, non-stop service to Houston.
“It was nice to be able to fly direct to some smaller airports,” said Brad Richwine, who works for Raytheon Missile Systems and would fly to Sacramento for work. “I’m sad to see them go."
ExpressJet cuts mean loss of Tucson flights
By Jack Gillum
Arizona Daily Star
Tucson, Arizona Published: 07.09.2008
ExpressJet Airlines Inc. is ending its nationwide branded service, effectively cutting four remaining destinations from Tucson International Airport in September.
This latest move by the Houston-based regional air carrier marks a setback for Tucson and other mid-sized cities serviced by the low-cost airline, which has been grappling with skyrocketing fuel costs of late.
ExpressJet was widely seen as a boon for Tucson travelers. In fact, the airline singlehandedly increased destinations available from the Old Pueblo by almost 50 percent in 2007, and airport officials frequently touted the new service.
But earlier this year, signs began emerging that the airline was facing trouble. In March, ExpressJet stopped its El Paso service, and in May, it announced it was cutting flights between Tucson and Spokane, Wash.; Austin, Texas; Omaha, Neb.; and Reno, Nev.
The airline’s demise disappointed many local air travelers. “It was perfect because they had so many nonstops,” said Pam Francis, 54, who travels between Tucson and Austin to visit her son. Stopping over in other cities with some other airlines, she said, “was a disaster.”
ExpressJet, on the other hand, was a $189 round-trip fare and “was just delightful all the way around.”Earlier this month, ExpressJet said it would be cutting its Delta Connection service on Sept. 1, effectively ending non-stop service between Tucson to Los Angeles International Airport.
The new announcement means it will no longer fly to Kansas City; Ontario, Calif.; San Antonio and Sacramento, Calif. The airline will continue to operate Continental Airlines’s daily, non-stop service to Houston.
“It was nice to be able to fly direct to some smaller airports,” said Brad Richwine, who works for Raytheon Missile Systems and would fly to Sacramento for work. “I’m sad to see them go."
Wednesday, July 02, 2008
BREAKING NEWS FROM OVERSEAS!
HERE COMES THE BIG STORY!
BA to seek clearance for AA and Iberia merger
The London Financial Times
David Robertson, Business Correspondent
British Airways is said to be close to seeking clearance from competition authorities for a three-way operational merger with American Airlines (AA) and Iberia.
The deal would allow the companies to combine nearly all aspects of their operations, including sales, purchasing and marketing, leading to lower costs and greater economies of scale. Legal sources in the United States said that a submission to the US Department of Transport was expected as soon as next week.
The operational partnership may also provide a foundation for a full merger of the carriers should foreign ownership rules in the United States and Spain change. BA said two months ago that it was in talks with AA and Continental, another American carrier, about creating an alliance, but Continental has since walked away.
BA and AA have continued their discussions and are believed to have invited Iberia - in which BA has a 13 per cent stake - to be the third member. BA said last night that its talks with AA were continuing but a decision had yet to be made. If BA and AA do seek regulatory approval to merge their operations, it would be their third attempt, having been blocked by regulators in 1998 and 2001.
The authorities in Britain and America were concerned that the two carriers would have a dominant position on many North Atlantic routes and demanded that the airlines sell Heathrow slots to reduce their traffic. However, sources familiar with BA's discussions said that the airline was more optimistic of gaining approval this time because of the liberalisation of air travel rules between Europe and the US.
In addition, the dire state of the airline sector, which is striving to cope with high fuel prices, may force regulators to accept the deal. AA lost $328 million (£164.7 million)and Iberia €28.3 million (£22.5 million) in the first quarter of this year. BA has given warning that it may struggle to stay profitable this year. An analyst said: “There is a lot of pressure on BA and AA to do this deal and cut costs.
It's inevitable.” Another added: “Including Iberia makes sense, as it would give the alliance a strong position across both the North and South Atlantic.” Meanwhile, BA said yesterday that it had bought L'Avion, a French business-class only airline, for £54 million. L'Avion is the last of the survivors of the rush two years ago to launch all-business-class transatlantic services. Silverjet, MaxJet and Eos have all gone out of business. L'Avion will be merged with BA's new OpenSkies service, which flies from Paris to New York. The purchase price includes L'Avion's £26million in cash and two Boeing 757 aircraft.
The London Financial Times
David Robertson, Business Correspondent
British Airways is said to be close to seeking clearance from competition authorities for a three-way operational merger with American Airlines (AA) and Iberia.
The deal would allow the companies to combine nearly all aspects of their operations, including sales, purchasing and marketing, leading to lower costs and greater economies of scale. Legal sources in the United States said that a submission to the US Department of Transport was expected as soon as next week.
The operational partnership may also provide a foundation for a full merger of the carriers should foreign ownership rules in the United States and Spain change. BA said two months ago that it was in talks with AA and Continental, another American carrier, about creating an alliance, but Continental has since walked away.
BA and AA have continued their discussions and are believed to have invited Iberia - in which BA has a 13 per cent stake - to be the third member. BA said last night that its talks with AA were continuing but a decision had yet to be made. If BA and AA do seek regulatory approval to merge their operations, it would be their third attempt, having been blocked by regulators in 1998 and 2001.
The authorities in Britain and America were concerned that the two carriers would have a dominant position on many North Atlantic routes and demanded that the airlines sell Heathrow slots to reduce their traffic. However, sources familiar with BA's discussions said that the airline was more optimistic of gaining approval this time because of the liberalisation of air travel rules between Europe and the US.
In addition, the dire state of the airline sector, which is striving to cope with high fuel prices, may force regulators to accept the deal. AA lost $328 million (£164.7 million)and Iberia €28.3 million (£22.5 million) in the first quarter of this year. BA has given warning that it may struggle to stay profitable this year. An analyst said: “There is a lot of pressure on BA and AA to do this deal and cut costs.
It's inevitable.” Another added: “Including Iberia makes sense, as it would give the alliance a strong position across both the North and South Atlantic.” Meanwhile, BA said yesterday that it had bought L'Avion, a French business-class only airline, for £54 million. L'Avion is the last of the survivors of the rush two years ago to launch all-business-class transatlantic services. Silverjet, MaxJet and Eos have all gone out of business. L'Avion will be merged with BA's new OpenSkies service, which flies from Paris to New York. The purchase price includes L'Avion's £26million in cash and two Boeing 757 aircraft.
Key words here are "could", "might", "may". Last time AA laid off nearly 2, 000 took leaves and retired. Stay tuned. Hopefully, leaves, job sharing and retirements will take care of the overage*
*Editor
AP
American COULD cut 900 flight attendant jobs
Wednesday July 2, 6:22 pm ET
By David Koenig, AP Business Writer
American Airlines indicates plans to cut 900 flight attendant jobs as soon as Aug. 31
DALLAS (AP) -- American Airlines says it could cut 900 flight attendant jobs as it reduces flights to cope with record high fuel costs. The Fort Worth-based airline expects to reduce jobs for pilots and mechanics too, but it hasn't released numbers yet.
American, the nation's largest carrier, said Wednesday that job cuts were necessary "to overcome near-term challenges and secure our company's long-term future."
American parent AMR Corp. said in a regulatory filing Wednesday it will take a charge of $70 million to cover severance costs for reducing its work force of 82,000, including the flight attendant jobs.
Further, AMR said, reduced flying and other cutbacks will lead the company to take a non-cash accounting charge of about $1.1 billion to $1.2 billion for the just-concluded second quarter. That charge covers the reduced value of the company's MD-80 and Embraer RJ-135 aircraft fleets.
Analysts were already expecting AMR to post a loss of about $330 million in the second quarter, according to a survey by Thomson Financial. Those forecasts typically don't include one-time charges.
In May, American announced it would cut domestic capacity 11 percent to 12 percent later this year, retire some planes and cut an unspecified number of jobs.
Federal law requires employers to give 60 days notice of major layoffs, and officials of the flight attendants' union said they received a notice Wednesday of job reductions that could start Aug. 31.
Airlines and union officials said they would try to reduce layoffs through attrition or by employees voluntarily taking leaves of absence or sharing jobs.
American has about 18,000 active flight attendants, so 900 jobs represents 5 percent of the ranks.
"We've all been sitting on the edge of our seats waiting for a number," said Frank Bastien, a spokesman for the Association of Professional Flight Attendants. "Most of us were pretty pleased it wasn't higher." (but it includes all former TWA flight attendants who have been recalled for less than a year, ed.)
Flight attendants had feared more job losses after the company said last week it would reduce management and support staff jobs by 8 percent.
American said it reached agreement with the union to offer voluntary measures such as leaves of absence to U.S.-based flight attendants 50 and older with at least 15 years of service. The airline said it struck a similar deal with the Transport Workers Union, which represents mechanics and bag handlers.
"These are difficult, but necessary changes given the unprecedented challenges we face with overcapacity in the industry, skyrocketing fuel prices, and a worsening U.S. economy," said American spokesman Tim Wagner.
American and sister airline American Eagle expect to spend more than $10 billion on jet fuel this year, up from $6.7 billion last year.
American is the latest airline to put a number on possible job cuts and reduced flying due to rising fuel costs and widening losses.
Continental Airlines Inc. is cutting 3,000 jobs and grounding 67 jets, and offered voluntary-departure packages -- but no cash -- to employees with at least 10 years experience.
UAL Corp.'s United Airlines, the nation's second-largest carrier, plans to eliminate 950 pilot jobs and 1,600 salaried positions. Delta Air Lines Inc. is shedding 4,000 jobs -- spokeswoman Betsy Talton said more than that number took incentives to leave, avoiding layoffs -- and US Airways Group Inc. is cutting 1,700.
Airlines are also raising fares and imposing new and higher fees for checking luggage, hauling a pet or sitting in a choice aisle seat.
Still, the industry's trade group, the Air Transport Association, predicts that U.S. airlines could lose $13 billion this year.
Shares of AMR fell 23 cents or 4.7 percent, to $4.62, as oil prices rose past $144 per barrel. The shares are trading at their lowest mark since early 2003, when the company was threatening to file for bankruptcy.
*Editor
AP
American COULD cut 900 flight attendant jobs
Wednesday July 2, 6:22 pm ET
By David Koenig, AP Business Writer
American Airlines indicates plans to cut 900 flight attendant jobs as soon as Aug. 31
DALLAS (AP) -- American Airlines says it could cut 900 flight attendant jobs as it reduces flights to cope with record high fuel costs. The Fort Worth-based airline expects to reduce jobs for pilots and mechanics too, but it hasn't released numbers yet.
American, the nation's largest carrier, said Wednesday that job cuts were necessary "to overcome near-term challenges and secure our company's long-term future."
American parent AMR Corp. said in a regulatory filing Wednesday it will take a charge of $70 million to cover severance costs for reducing its work force of 82,000, including the flight attendant jobs.
Further, AMR said, reduced flying and other cutbacks will lead the company to take a non-cash accounting charge of about $1.1 billion to $1.2 billion for the just-concluded second quarter. That charge covers the reduced value of the company's MD-80 and Embraer RJ-135 aircraft fleets.
Analysts were already expecting AMR to post a loss of about $330 million in the second quarter, according to a survey by Thomson Financial. Those forecasts typically don't include one-time charges.
In May, American announced it would cut domestic capacity 11 percent to 12 percent later this year, retire some planes and cut an unspecified number of jobs.
Federal law requires employers to give 60 days notice of major layoffs, and officials of the flight attendants' union said they received a notice Wednesday of job reductions that could start Aug. 31.
Airlines and union officials said they would try to reduce layoffs through attrition or by employees voluntarily taking leaves of absence or sharing jobs.
American has about 18,000 active flight attendants, so 900 jobs represents 5 percent of the ranks.
"We've all been sitting on the edge of our seats waiting for a number," said Frank Bastien, a spokesman for the Association of Professional Flight Attendants. "Most of us were pretty pleased it wasn't higher." (but it includes all former TWA flight attendants who have been recalled for less than a year, ed.)
Flight attendants had feared more job losses after the company said last week it would reduce management and support staff jobs by 8 percent.
American said it reached agreement with the union to offer voluntary measures such as leaves of absence to U.S.-based flight attendants 50 and older with at least 15 years of service. The airline said it struck a similar deal with the Transport Workers Union, which represents mechanics and bag handlers.
"These are difficult, but necessary changes given the unprecedented challenges we face with overcapacity in the industry, skyrocketing fuel prices, and a worsening U.S. economy," said American spokesman Tim Wagner.
American and sister airline American Eagle expect to spend more than $10 billion on jet fuel this year, up from $6.7 billion last year.
American is the latest airline to put a number on possible job cuts and reduced flying due to rising fuel costs and widening losses.
Continental Airlines Inc. is cutting 3,000 jobs and grounding 67 jets, and offered voluntary-departure packages -- but no cash -- to employees with at least 10 years experience.
UAL Corp.'s United Airlines, the nation's second-largest carrier, plans to eliminate 950 pilot jobs and 1,600 salaried positions. Delta Air Lines Inc. is shedding 4,000 jobs -- spokeswoman Betsy Talton said more than that number took incentives to leave, avoiding layoffs -- and US Airways Group Inc. is cutting 1,700.
Airlines are also raising fares and imposing new and higher fees for checking luggage, hauling a pet or sitting in a choice aisle seat.
Still, the industry's trade group, the Air Transport Association, predicts that U.S. airlines could lose $13 billion this year.
Shares of AMR fell 23 cents or 4.7 percent, to $4.62, as oil prices rose past $144 per barrel. The shares are trading at their lowest mark since early 2003, when the company was threatening to file for bankruptcy.
Monday, June 30, 2008
American Airlines Fleet Reduction Update
Three new Boeing 737-800's with the 12 additional seats are ready for delivery for AMR and will be put into the fleet as soon as they are checked out.
This is wonderful news as now AA must begin staffing 737's with FOUR F/A's as who will know what A/C is where once they start flying around the system. Conversion of the remaining 737 will begin shortly. Acceleration of the 737's on order will also take place. Boeing cranks out 31 737's a month. Service flows will be adjusted to reflect additional F/A.
Appears the biggest hit for reduction of flying is Eagle and the mainline cutbacks are not as severe as planned to to UAL grounding approx 100, 737's and the 4-6 747's and other carriers dropping service and routes. UAL will have about 100 more A/C's than TWA when they are done cutting service and routes. Put that into perspective.
Loads for the Holiday solid. Planes being held in service to accommodate them. In NO way does In-Flight want or wish to have a repeat of Christmas past when they ran short of crews and supervisors filled in for a good part of December.
Extended leaves and retirements should offset mainline furloughs...cross our fingers. There is a 400 pilot shortage and a projected F/A shortage for 2009 and we all know what that means...more recalls...let's hope this all comes to pass.
The DAL and NWA deal...just like TWA and AA. They all say no employee cutbacks but we shall wait and see on that one. Never say never again. You know darn well they will chop excess headcounts.
Here is a snapshot the AMR's fleet.
Airbus A300-600 33 in service 267 (16/251)Domestic/Latin American short-medium haulMost fly out of JFK, MIA, SJU, and MCO. SJU cutbacks require moving aircraft to other marketsTo be phased out by 2012 or sooner. Exit from service: 13 in 2008
Boeing 737-800 77 in service (29 orders) (29 options) 142 (16/126) config148 (16/132) config. North American short-medium haul. Most fly out of MIA, DFW, and LAX. Three ready for delivery, 16/160. More coming late 2008, early 2009
Boeing 757 124 in service 188 (22/166) Short-medium-long haul. Most fly out of hub/focus citiesTo be fitted with winglets. To be fitted with new interiors.
Boeing 767-200ER 16 in service 165 (9/30/126)167 (9/30/128) JFK-BermudaLos Angeles, Miami, San Francisco. To be fitted with winglets. To be fitted with new interiors.
Boeing 767-300ER 58 in service 219 (30/189)223 (30/193)225 (30/195)Domestic/International medium-long haulTo be fitted with winglets. Fitted with New Business Class
Boeing 777-200ER 47 in service (7 on order)245 (16/35/194)247 (18/35/194)DomesticMiami-ChicagoDallas-ChicagoInternationalMoscowBeijing (begins March 25, 2009), Buenos Aires, Paris, London, Frankfurt,Delhi, Rio de Janeiro, Shanghai,São Paulo, TokyoFitted with Flagship Suites. Being fitted with New Business Class. Being refitted with AVOD in all classes (internet)
McDonnell Douglas MD-82 35 in service (some former TWA)136 (16/120)140 (16/124)North American short-medium haul. Most fly out of ORD, DFW, STL, LGA
McDonnell Douglas MD-8 393 in service (some former TWA)136 (16/120)140 (16/124)North American short-medium haul. Most fly out of ORD, DFW, STL, LGA
Three new Boeing 737-800's with the 12 additional seats are ready for delivery for AMR and will be put into the fleet as soon as they are checked out.
This is wonderful news as now AA must begin staffing 737's with FOUR F/A's as who will know what A/C is where once they start flying around the system. Conversion of the remaining 737 will begin shortly. Acceleration of the 737's on order will also take place. Boeing cranks out 31 737's a month. Service flows will be adjusted to reflect additional F/A.
Appears the biggest hit for reduction of flying is Eagle and the mainline cutbacks are not as severe as planned to to UAL grounding approx 100, 737's and the 4-6 747's and other carriers dropping service and routes. UAL will have about 100 more A/C's than TWA when they are done cutting service and routes. Put that into perspective.
Loads for the Holiday solid. Planes being held in service to accommodate them. In NO way does In-Flight want or wish to have a repeat of Christmas past when they ran short of crews and supervisors filled in for a good part of December.
Extended leaves and retirements should offset mainline furloughs...cross our fingers. There is a 400 pilot shortage and a projected F/A shortage for 2009 and we all know what that means...more recalls...let's hope this all comes to pass.
The DAL and NWA deal...just like TWA and AA. They all say no employee cutbacks but we shall wait and see on that one. Never say never again. You know darn well they will chop excess headcounts.
Here is a snapshot the AMR's fleet.
Airbus A300-600 33 in service 267 (16/251)Domestic/Latin American short-medium haulMost fly out of JFK, MIA, SJU, and MCO. SJU cutbacks require moving aircraft to other marketsTo be phased out by 2012 or sooner. Exit from service: 13 in 2008
Boeing 737-800 77 in service (29 orders) (29 options) 142 (16/126) config148 (16/132) config. North American short-medium haul. Most fly out of MIA, DFW, and LAX. Three ready for delivery, 16/160. More coming late 2008, early 2009
Boeing 757 124 in service 188 (22/166) Short-medium-long haul. Most fly out of hub/focus citiesTo be fitted with winglets. To be fitted with new interiors.
Boeing 767-200ER 16 in service 165 (9/30/126)167 (9/30/128) JFK-BermudaLos Angeles, Miami, San Francisco. To be fitted with winglets. To be fitted with new interiors.
Boeing 767-300ER 58 in service 219 (30/189)223 (30/193)225 (30/195)Domestic/International medium-long haulTo be fitted with winglets. Fitted with New Business Class
Boeing 777-200ER 47 in service (7 on order)245 (16/35/194)247 (18/35/194)DomesticMiami-ChicagoDallas-ChicagoInternationalMoscowBeijing (begins March 25, 2009), Buenos Aires, Paris, London, Frankfurt,Delhi, Rio de Janeiro, Shanghai,São Paulo, TokyoFitted with Flagship Suites. Being fitted with New Business Class. Being refitted with AVOD in all classes (internet)
McDonnell Douglas MD-82 35 in service (some former TWA)136 (16/120)140 (16/124)North American short-medium haul. Most fly out of ORD, DFW, STL, LGA
McDonnell Douglas MD-8 393 in service (some former TWA)136 (16/120)140 (16/124)North American short-medium haul. Most fly out of ORD, DFW, STL, LGA
Thursday, June 19, 2008
Happy employees are more productive employees...
Small workplace-enhancing changes can reap big rewards
(ARA) - It's not surprising that employees cite compensation as the number one factor that makes them professionally satisfied these days.
What is surprising is that the comfort and aesthetic appearance of their physical workplace virtually ties with benefits for second place.
With an increasing number of people spending more time in their offices, the physical comfort, visual appeal and accessibility of their work environment become increasingly important. So pivotal, in fact, that the American Society of Interior Designers commissioned a 1999 nationwide study, "Recruiting and Retaining Qualified Employees - By Design" that revealed:
- Employees who were pleased with their physical workplaces were 31 percent more likely to say they were satisfied with their jobs,
- The physical workplace would impact 41 percent of employees and job seekers to accept a position, and
- The quality of their physical workplace would influence 51 percent to leave a company.
Even more eye-opening is that an astonishing 73 percent were not satisfied with the physical workplaces at their current jobs.
Certainly these statistics give one pause, particularly given the high costs, headaches and loss of productivity associated with staff member turnover. Wouldn't it make far better sense to keep valuable employees by making small, yet meaningful, cosmetic adjustments to their work environments?
"In this competitive marketplace, it is increasingly more important to focus on the appearance of the workplace," explains Todd Imholte, president of Environmental Graphics, the leading producer of wall murals for home or office in the United States. "Studies have shown that employers who care about their employees and their work environment, have noticed more motivated and productive employees."
Denise Ones, Ph.D., the Heller Vic Professor of Industrial and Organizational Psychology at the University of Minnesota says, "We know that there is a strong relationship between motivation and productivity in the workplace. Employees who are motivated will be more conscientious, dependable and ultimately more productive." Sage Publishing will release a book authored by Dr. Ones entitled, "The Handbook of Industrial, Work and Organizational Psychology" in September of 2001.
The Toyota manufacturing facility in Georgetown, Ky., for example, recently installed 44 of Environmental Graphics' WallMurals throughout their production facility, labs and conference rooms. According to safety manager, Karen Wells, "The murals help bring the outdoors in, making the work environment a more positive and motivating place for the employees.
When people look up at the wall, they see pleasant scenery instead of a plain, boring wall. We even let the employees pick them out!"
Murals can have a tremendous impact on morale and productivity and most companies have walls that accommodate murals. Murals are a cost effective way to make a big improvement on the workplace environment. Murals, like the ones from Environmental Graphics, cost around $100.
Small workplace-enhancing changes can reap big rewards
(ARA) - It's not surprising that employees cite compensation as the number one factor that makes them professionally satisfied these days.
What is surprising is that the comfort and aesthetic appearance of their physical workplace virtually ties with benefits for second place.
With an increasing number of people spending more time in their offices, the physical comfort, visual appeal and accessibility of their work environment become increasingly important. So pivotal, in fact, that the American Society of Interior Designers commissioned a 1999 nationwide study, "Recruiting and Retaining Qualified Employees - By Design" that revealed:
- Employees who were pleased with their physical workplaces were 31 percent more likely to say they were satisfied with their jobs,
- The physical workplace would impact 41 percent of employees and job seekers to accept a position, and
- The quality of their physical workplace would influence 51 percent to leave a company.
Even more eye-opening is that an astonishing 73 percent were not satisfied with the physical workplaces at their current jobs.
Certainly these statistics give one pause, particularly given the high costs, headaches and loss of productivity associated with staff member turnover. Wouldn't it make far better sense to keep valuable employees by making small, yet meaningful, cosmetic adjustments to their work environments?
"In this competitive marketplace, it is increasingly more important to focus on the appearance of the workplace," explains Todd Imholte, president of Environmental Graphics, the leading producer of wall murals for home or office in the United States. "Studies have shown that employers who care about their employees and their work environment, have noticed more motivated and productive employees."
Denise Ones, Ph.D., the Heller Vic Professor of Industrial and Organizational Psychology at the University of Minnesota says, "We know that there is a strong relationship between motivation and productivity in the workplace. Employees who are motivated will be more conscientious, dependable and ultimately more productive." Sage Publishing will release a book authored by Dr. Ones entitled, "The Handbook of Industrial, Work and Organizational Psychology" in September of 2001.
The Toyota manufacturing facility in Georgetown, Ky., for example, recently installed 44 of Environmental Graphics' WallMurals throughout their production facility, labs and conference rooms. According to safety manager, Karen Wells, "The murals help bring the outdoors in, making the work environment a more positive and motivating place for the employees.
When people look up at the wall, they see pleasant scenery instead of a plain, boring wall. We even let the employees pick them out!"
Murals can have a tremendous impact on morale and productivity and most companies have walls that accommodate murals. Murals are a cost effective way to make a big improvement on the workplace environment. Murals, like the ones from Environmental Graphics, cost around $100.
Saturday, June 14, 2008
A novel concept: charging your product cost. Problem is if you raise ticket prices, you fall to the bottom of web ticket searches. What do you do? Freeways in California are still clogged...you just cut out the flipflops and shorts crowd!
Charge the cost...it is that simple. It is simple economics...really! People will still travel! Stop shaking out the passengers with endless fees. Freeways in California are still clogged...you just cut out the flipflops and shorts crowd! ...Charge the cost...it is that simple.
Friday, June 13, 2008
Soon, no free drinks if you fly US Airways
Water, coffee, juice, sodas due on pay list for $2.00 each
Are they going to charge for oxygen when the masks fall?
By Laura McCandlish
June 13, 2008
Talk about taking the fizz out of air travel. US Airways will become the first major U.S. airline in August to charge domestic coach passengers for soft drinks, juices, coffee and bottled water as part of a shift to what it calls a "pay-for-what-you-use" business model. The $2-a-pop beverage charge is the latest in a raft of new charges airlines have been imposing to help pay for record fuel costs. Free nonalcoholic beverages have been one of the last freebies handed out by domestic airlines, which already charge for alcoholic beverages and - except for Continental - for meals and even snacks on domestic flights.
Among other new or higher charges US Airways is imposing :
•A $2 increase in the cost of alcoholic beverages, to $7.
•$15 for a first checked bag, making it the third major U.S. airline to start charging for a single piece of stowed luggage. It already charges $25 for a second checked bag.
•Fees of $25 to $50 for booking frequent-flier award tickets after Aug. 6.
•A $25 service fee for domestic tickets and a $35 service fee for international tickets purchased by phone, up from $15.
At Baltimore-Washington International Thurgood Marshall Airport, US Airways also is shuttering its exclusive club for elite travelers, in addition to its one in Raleigh, N.C., due to "insufficient demand." Five employees currently work at the BWI club, US Airways spokesman Morgan Durant said. Once the dominant carrier at BWI, US Airways now accounts for slightly more than 6 percent of the market share there."Our operation at BWI is a fraction of what it was in the '90s," Durant said. "Unfortunately it was one portion of our club network that was identified as an area where we could save some costs."
The Tempe, Ariz.-based carrier also is cutting flights, shrinking its fleet and slashing 1,700 jobs."We must write a new playbook for running a profitable airline in this new and challenging environment," US Airways Chairman and Chief Executive Officer William D. Parker said in a statement.US Airways created the new cuts and fees to help pay for soaring fuel bills this year. Jet fuel has jumped to almost $4 per gallon from $2.72 at the end of 2007, and US Airways' fuel costs are up almost $2 billion this year.
Parker said the airline now needs to make about $650 to $700 per round-trip passenger just to break even. Independent airline consultant Robert Mann said it's unlikely that the charges and fees announced yesterday will bring in that much revenue. "They're just grasping at straws," Mann said. "The industry has to fundamentally reprice its services." Mann said the industry needs to cut the number of available seats by 20 percent before airlines will have the power to boost fares and keep up with the price of fuel.
US Airways said free drinks would continue to be served to unaccompanied minors and passengers in first class on US Airways Shuttle and on trans-Atlantic flights. Passengers who suffer from dehydration or other medical issues will be served complimentary bottled water at the flight attendant's discretion, US Airways spokesman Durant said.
When weather delays hold a plane on the tarmac for hours, passengers also will be given free beverages, he said.Kate Hanni, who heads a grass-roots group called the Coalition for an Airline Passengers' Bill of Rights, said the new US Airways fees went too far and could even jeopardize the health of its passengers. "All of the airlines are unbundling to the point where it's unsafe," Hanni said. "Are they going to charge for oxygen when the masks fall?"
laura.mccandlish@baltsun.com
The Associated Press contributed to this article.
Water, coffee, juice, sodas due on pay list for $2.00 each
Are they going to charge for oxygen when the masks fall?
By Laura McCandlish
June 13, 2008
Talk about taking the fizz out of air travel. US Airways will become the first major U.S. airline in August to charge domestic coach passengers for soft drinks, juices, coffee and bottled water as part of a shift to what it calls a "pay-for-what-you-use" business model. The $2-a-pop beverage charge is the latest in a raft of new charges airlines have been imposing to help pay for record fuel costs. Free nonalcoholic beverages have been one of the last freebies handed out by domestic airlines, which already charge for alcoholic beverages and - except for Continental - for meals and even snacks on domestic flights.
Among other new or higher charges US Airways is imposing :
•A $2 increase in the cost of alcoholic beverages, to $7.
•$15 for a first checked bag, making it the third major U.S. airline to start charging for a single piece of stowed luggage. It already charges $25 for a second checked bag.
•Fees of $25 to $50 for booking frequent-flier award tickets after Aug. 6.
•A $25 service fee for domestic tickets and a $35 service fee for international tickets purchased by phone, up from $15.
At Baltimore-Washington International Thurgood Marshall Airport, US Airways also is shuttering its exclusive club for elite travelers, in addition to its one in Raleigh, N.C., due to "insufficient demand." Five employees currently work at the BWI club, US Airways spokesman Morgan Durant said. Once the dominant carrier at BWI, US Airways now accounts for slightly more than 6 percent of the market share there."Our operation at BWI is a fraction of what it was in the '90s," Durant said. "Unfortunately it was one portion of our club network that was identified as an area where we could save some costs."
The Tempe, Ariz.-based carrier also is cutting flights, shrinking its fleet and slashing 1,700 jobs."We must write a new playbook for running a profitable airline in this new and challenging environment," US Airways Chairman and Chief Executive Officer William D. Parker said in a statement.US Airways created the new cuts and fees to help pay for soaring fuel bills this year. Jet fuel has jumped to almost $4 per gallon from $2.72 at the end of 2007, and US Airways' fuel costs are up almost $2 billion this year.
Parker said the airline now needs to make about $650 to $700 per round-trip passenger just to break even. Independent airline consultant Robert Mann said it's unlikely that the charges and fees announced yesterday will bring in that much revenue. "They're just grasping at straws," Mann said. "The industry has to fundamentally reprice its services." Mann said the industry needs to cut the number of available seats by 20 percent before airlines will have the power to boost fares and keep up with the price of fuel.
US Airways said free drinks would continue to be served to unaccompanied minors and passengers in first class on US Airways Shuttle and on trans-Atlantic flights. Passengers who suffer from dehydration or other medical issues will be served complimentary bottled water at the flight attendant's discretion, US Airways spokesman Durant said.
When weather delays hold a plane on the tarmac for hours, passengers also will be given free beverages, he said.Kate Hanni, who heads a grass-roots group called the Coalition for an Airline Passengers' Bill of Rights, said the new US Airways fees went too far and could even jeopardize the health of its passengers. "All of the airlines are unbundling to the point where it's unsafe," Hanni said. "Are they going to charge for oxygen when the masks fall?"
laura.mccandlish@baltsun.com
The Associated Press contributed to this article.
BREAKING NEWSNBC News and MSNBC
NBC's Tim Russert dead at 58
He was the Washington bureau chief and moderator of ‘Meet the Press’
Virginia Sherwood / © NBC Universal, Inc.
BREAKING NEWS
NBC News and MSNBC
WASHINGTON - Tim Russert, NBC News’ Washington bureau chief and the moderator of “Meet the Press,” died Friday after a sudden heart attack at the bureau, NBC News said Friday. He was 58.
Russert was recording voiceovers for Sunday’s “Meet the Press” program when he collapsed, the network said. No details were immediately available.
Russert, the recipient of 48 honorary doctorates, took over the helm of “Meet the Press” in December 1991. Now in its 60th year, “Meet the Press” is the longest-running program in the history of television.
In 2008, Time Magazine named him one of the 100 most influential people in the world.
Timothy John Russert Jr. was born in Buffalo, N.Y., on May 7, 1950. He was a graduate of Canisius High School, John Carroll University and the Cleveland-Marshall College of Law. He was a member of the bar in New York and the District of Columbia.
Senate staffer before entering journalismAfter graduating from law school, Russert went into politics as a staff operative. In 1976, he worked on the Senate campaign of Daniel Patrick Moynihan, D-N.Y., and in 1982, he worked on Mario Cuomo’s campaign for governor of New York.
Russert joined NBC News in 1984. In April 1985, he supervised the live broadcasts of NBC's TODAY show from Rome, negotiating and arranging an appearance by Pope John Paul II, a first for American television. In 1986 and 1987, Russert led NBC News’ weeklong broadcasts from South America, Australia and China.
Of his background as a Democratic political operative, Russert said, “My views are not important.” “Lawrence Spivak, who founded ‘Meet the Press,’ told me before he died that the job of the host is to learn as much as you can about your guest’s positions and take the other side,” he said in a 2007 interview with Time magazine. “And to do that in a persistent and civil way. And that’s what I try to do every Sunday.”
Cuomo, Russert’s onetime boss, wrote of Russert: “Most candidates are not eager to present themselves for Tim’s incisive scrutiny, which is fed by his prodigious study and preparation. But they have little choice: appearing on ‘Meet the Press’ is today as vital to a serious candidate as being properly registered to vote.”
Russert wrote two books — “Big Russ and Me” in 2004 and “Wisdom of Our Fathers” in 2006 — both of which were New York Times best-sellers.
Emmy for Reagan funeral coverageIn 2005, Russert was awarded an Emmy for his role in the coverage of the funeral of President Ronald Reagan. His “Meet the Press” interviews with George W. Bush and Al Gore in 2000 won the Radio and Television Correspondents’ highest honor, the Joan S. Barone Award, and the Annenberg Center’s Walter Cronkite Award.
Russert’s March 2000 interview of Sen. John McCain shared the 2001 Edward R. Murrow Award for Overall Excellence in Television Journalism. He was also the recipient of the John Peter Zenger Award, the American Legion Journalism Award, the Veterans of Foreign Wars News Media Award, the Congressional Medal of Honor Society Journalism Award, the Allen H. Neuharth Award for Excellence in Journalism, the David Brinkley Award for Excellence in Communication and the Catholic Academy for Communication’s Gabriel Award. He was a member of the Broadcasting & Cable Hall of Fame.
Russert was a trustee of the Freedom Forum’s Newseum and a member of the board of directors of the Greater Washington Boys and Girls Club, and America’s Promise — Alliance for Youth.
In 1995, the National Father’s Day Committee named him “Father of the Year,” Parents magazine honored him as “Dream Dad” in 1998, and in 2001 the National Fatherhood Initiative also recognized him as Father of the Year.
Irish America magazine named him one of the top 100 Irish Americans in the country, and he was selected as a Fellow of the Commission of European Communities.
Russert is survived by his wife, Maureen Orth, a writer for Vanity Fair magazine, and a son, Luke.
Check back soon for more on this breaking story.
© 2008 MSNBC Interactive
NBC's Tim Russert dead at 58
He was the Washington bureau chief and moderator of ‘Meet the Press’
Virginia Sherwood / © NBC Universal, Inc.
BREAKING NEWS
NBC News and MSNBC
WASHINGTON - Tim Russert, NBC News’ Washington bureau chief and the moderator of “Meet the Press,” died Friday after a sudden heart attack at the bureau, NBC News said Friday. He was 58.
Russert was recording voiceovers for Sunday’s “Meet the Press” program when he collapsed, the network said. No details were immediately available.
Russert, the recipient of 48 honorary doctorates, took over the helm of “Meet the Press” in December 1991. Now in its 60th year, “Meet the Press” is the longest-running program in the history of television.
In 2008, Time Magazine named him one of the 100 most influential people in the world.
Timothy John Russert Jr. was born in Buffalo, N.Y., on May 7, 1950. He was a graduate of Canisius High School, John Carroll University and the Cleveland-Marshall College of Law. He was a member of the bar in New York and the District of Columbia.
Senate staffer before entering journalismAfter graduating from law school, Russert went into politics as a staff operative. In 1976, he worked on the Senate campaign of Daniel Patrick Moynihan, D-N.Y., and in 1982, he worked on Mario Cuomo’s campaign for governor of New York.
Russert joined NBC News in 1984. In April 1985, he supervised the live broadcasts of NBC's TODAY show from Rome, negotiating and arranging an appearance by Pope John Paul II, a first for American television. In 1986 and 1987, Russert led NBC News’ weeklong broadcasts from South America, Australia and China.
Of his background as a Democratic political operative, Russert said, “My views are not important.” “Lawrence Spivak, who founded ‘Meet the Press,’ told me before he died that the job of the host is to learn as much as you can about your guest’s positions and take the other side,” he said in a 2007 interview with Time magazine. “And to do that in a persistent and civil way. And that’s what I try to do every Sunday.”
Cuomo, Russert’s onetime boss, wrote of Russert: “Most candidates are not eager to present themselves for Tim’s incisive scrutiny, which is fed by his prodigious study and preparation. But they have little choice: appearing on ‘Meet the Press’ is today as vital to a serious candidate as being properly registered to vote.”
Russert wrote two books — “Big Russ and Me” in 2004 and “Wisdom of Our Fathers” in 2006 — both of which were New York Times best-sellers.
Emmy for Reagan funeral coverageIn 2005, Russert was awarded an Emmy for his role in the coverage of the funeral of President Ronald Reagan. His “Meet the Press” interviews with George W. Bush and Al Gore in 2000 won the Radio and Television Correspondents’ highest honor, the Joan S. Barone Award, and the Annenberg Center’s Walter Cronkite Award.
Russert’s March 2000 interview of Sen. John McCain shared the 2001 Edward R. Murrow Award for Overall Excellence in Television Journalism. He was also the recipient of the John Peter Zenger Award, the American Legion Journalism Award, the Veterans of Foreign Wars News Media Award, the Congressional Medal of Honor Society Journalism Award, the Allen H. Neuharth Award for Excellence in Journalism, the David Brinkley Award for Excellence in Communication and the Catholic Academy for Communication’s Gabriel Award. He was a member of the Broadcasting & Cable Hall of Fame.
Russert was a trustee of the Freedom Forum’s Newseum and a member of the board of directors of the Greater Washington Boys and Girls Club, and America’s Promise — Alliance for Youth.
In 1995, the National Father’s Day Committee named him “Father of the Year,” Parents magazine honored him as “Dream Dad” in 1998, and in 2001 the National Fatherhood Initiative also recognized him as Father of the Year.
Irish America magazine named him one of the top 100 Irish Americans in the country, and he was selected as a Fellow of the Commission of European Communities.
Russert is survived by his wife, Maureen Orth, a writer for Vanity Fair magazine, and a son, Luke.
Check back soon for more on this breaking story.
© 2008 MSNBC Interactive
Sunday, June 08, 2008
Blog Editor comment...6/8/2008
This is Icahn at the top of his game...corporate blackmail, extortion, nothing less at what he does best! Icahn complains about corporate governance...exactly the SAME things HE DID did while running TWA into the ground, sucking every last time from the company and its employees. Bottom line...a quick buck to add to his war chest. Icahn knows NOTHING about running a company. The proof is in his actions!
Icahn tells Yahoo to sell for $49.5B, or $34.375 a share
Updated
By Jon Swartz, USA TODAY
SAN FRANCISCO — Billionaire activist investor Carl Icahn's latest salvo in his escalating war against Yahoo's (YHOO) board put a price tag on the embattled company and intensified pressure on Yahoo as it approaches its annual shareholders meeting.
In a scathing letter to Yahoo Chairman Roy Bostock on Friday, Icahn said he wants Yahoo to tell Microsoft (MSFT) it's willing to be sold for $49.5 billion, about $2 billion above Microsoft's last offer for the Internet pioneer.
"Why don't you stop dancing around the subject and publicly offer to sell the company to Microsoft for $34.375 per share and promise to cooperate completely?" Icahn said in the strongly worded letter.
Yahoo said declaring an acceptable sales price for the company would be "ill-advised."
Microsoft declined comment. It withdrew an oral offer of $47.5 billion, or $33 a share, last month after Yahoo CEO Jerry Yang asked for $37 a share.
Icahn's letter was just the latest volley in an increasingly nasty campaign to force Yahoo's sale.
In a letter on Wednesday, Icahn made it clear he wants Yahoo's board replaced and Yang fired unless the company works out a deal with Microsoft before Yahoo's shareholders meeting Aug. 1.
Icahn, who carved a reputation as a ruthless corporate raider in the 1980s and reinvented himself as a shareholder activist in recent years, was particularly miffed by what he claimed was a provision by Yahoo that would add more than $2 billion to the cost of a takeover.
In his letter Wednesday, Icahn accused Yahoo's management and board of putting themselves ahead of their shareholders.
Some tech analysts say Icahn is merely softening up Yahoo in the weeks leading up to its shareholders meeting in San Jose. If Yahoo staves off Icahn, it faces a torrent of lawsuits from disgruntled shareholders, says Jonathan Yarmis, an analyst at AMR Research.
"I'll bet after the shareholders meeting — if there's no deal done — you'd have a hard time booking a hotel room in Wilmington, Del., as plaintiffs' lawyers line up to file their lawsuits," Yarmis says.
Ultimately, Icahn's end game is simple, Yarmis and others say.
"It's quick money. Nothing more, nothing less," Yarmis says. "(Icahn) has to make Yahoo think that the path of least risk is doing something large with, or selling to, Microsoft. I still don't think a deal for the whole enchilada is out of the question."
Yahoo shares inched up 8 cents to $26.44 in trading Friday. Microsoft shares slipped 81 cents to $27.49.
This is Icahn at the top of his game...corporate blackmail, extortion, nothing less at what he does best! Icahn complains about corporate governance...exactly the SAME things HE DID did while running TWA into the ground, sucking every last time from the company and its employees. Bottom line...a quick buck to add to his war chest. Icahn knows NOTHING about running a company. The proof is in his actions!
Icahn tells Yahoo to sell for $49.5B, or $34.375 a share
Updated
By Jon Swartz, USA TODAY
SAN FRANCISCO — Billionaire activist investor Carl Icahn's latest salvo in his escalating war against Yahoo's (YHOO) board put a price tag on the embattled company and intensified pressure on Yahoo as it approaches its annual shareholders meeting.
In a scathing letter to Yahoo Chairman Roy Bostock on Friday, Icahn said he wants Yahoo to tell Microsoft (MSFT) it's willing to be sold for $49.5 billion, about $2 billion above Microsoft's last offer for the Internet pioneer.
"Why don't you stop dancing around the subject and publicly offer to sell the company to Microsoft for $34.375 per share and promise to cooperate completely?" Icahn said in the strongly worded letter.
Yahoo said declaring an acceptable sales price for the company would be "ill-advised."
Microsoft declined comment. It withdrew an oral offer of $47.5 billion, or $33 a share, last month after Yahoo CEO Jerry Yang asked for $37 a share.
Icahn's letter was just the latest volley in an increasingly nasty campaign to force Yahoo's sale.
In a letter on Wednesday, Icahn made it clear he wants Yahoo's board replaced and Yang fired unless the company works out a deal with Microsoft before Yahoo's shareholders meeting Aug. 1.
Icahn, who carved a reputation as a ruthless corporate raider in the 1980s and reinvented himself as a shareholder activist in recent years, was particularly miffed by what he claimed was a provision by Yahoo that would add more than $2 billion to the cost of a takeover.
In his letter Wednesday, Icahn accused Yahoo's management and board of putting themselves ahead of their shareholders.
Some tech analysts say Icahn is merely softening up Yahoo in the weeks leading up to its shareholders meeting in San Jose. If Yahoo staves off Icahn, it faces a torrent of lawsuits from disgruntled shareholders, says Jonathan Yarmis, an analyst at AMR Research.
"I'll bet after the shareholders meeting — if there's no deal done — you'd have a hard time booking a hotel room in Wilmington, Del., as plaintiffs' lawyers line up to file their lawsuits," Yarmis says.
Ultimately, Icahn's end game is simple, Yarmis and others say.
"It's quick money. Nothing more, nothing less," Yarmis says. "(Icahn) has to make Yahoo think that the path of least risk is doing something large with, or selling to, Microsoft. I still don't think a deal for the whole enchilada is out of the question."
Yahoo shares inched up 8 cents to $26.44 in trading Friday. Microsoft shares slipped 81 cents to $27.49.
Friday, June 06, 2008
As Airlines Cut Back, Who Gets Grounded?
THE MIDDLE SEAT
By SCOTT MCCARTNEY
June 6, 2008
What do all these announcements of massive airline cutbacks mean for consumers? Higher fares.
By grounding planes and removing flights from schedules, airlines hope to limit the supply of seats in the skies and force people to pay more to fly. Planes are full now largely because airlines have to discount prices a lot in order to fill seats, especially in a weak economy. Airlines have been like automakers offering big discounts on SUVs and other vehicles piled up on dealership lots. At some point you have to stop making so many trucks if you can't sell them at a profit, and so airlines are shutting down their ``factories'' some – grounding airplanes and reducing the number of flights they offer for sale.
Despite more than a dozen ``fare increases,'' the fares that people actually are paying haven't yet gone up enough to come close to covering higher fuel costs for most airlines. In April, the most recent month reported, the average price people paid to fly one mile domestically was up only 4.3% over last year, according to the Air Transport Association. Fares likely were 7% to 8% higher in May than a year ago, according to some preliminary reports from airlines, but that's a far cry from paying for the 66% increase in the cost of fuel, which now amounts to about 40% of an airline's total costs.
Why? Because raising airfares isn't like raising the price of milk at the grocery store. Consumers have almost perfect information for price comparisons – the Internet can hunt the cheapest fare worldwide in seconds. If one carrier has some empty seats to fill, it will have to cut the price because getting something for that seat is better than flying it empty. And there's lots of competition in the industry – some airlines have lower cost structures than others, or better fuel hedges, and can absorb more of the higher costs than others.
Cutting the number of seats to sell is the only way to significantly raise prices. Not only can airlines raise ticket prices, but also they can sell fewer seats at discounted prices, and leave more seats in higher-priced fare ``buckets.'' Demand for seats will drop since there won't be as many cheap seats out there, but the planes that actually fly should generate more revenue. That's the only way for the industry to get back to profitability.
Continental Cuts Jobs, FleetSo which flights will get cut? Most of the cutting will come after the busy summer. Weak international routes are first to go, in general. The longer the trip the more fuel affects the profitability of the flight. AMR Corp.'s American Airlines already said it would end its daily service between New York and London's Stansted Airport, for example. AMR launched that flight in response to start-up business-class carriers using secondary London airports like Standsted. But high fuel costs and limited credit for airlines have already killed the London trans-Atlantic start-ups like Eos and Silverjet.
UAL Corp.'s United Airlines has erased its Los Angeles-Hong Kong flight from its schedule – San Francisco-Hong Kong flights do much better, and United can carry Los Angeles traffic over to San Francisco. Continental Airlines Inc. has been aggressively expanding internationally, and some routes have done better than others. Expect the weak ones to get suspended.
Domestically, airlines likely will thin schedules rather than abandon cities completely. Instead of five or six flights a day, they may cut back to four. Fewer seats will enable them to charge more.
But there's a cost to all this for airlines, too. Shrinking can raise the cost to operate each flight, on average, because lower-paid employees are the ones to get laid off and planes that sit often still need to be paid for, unless there's a bankruptcy filing or a way to sell them or turn them back to leasing companies. The aircraft market worldwide is strong, so many planes that U.S. airlines are grounding may well find new homes overseas.
In addition, all the cuts create opportunity for discount airlines that are still growing. Southwest Airlines Co. has historically been very opportunistic, filling in when bigger carriers cut. Southwest is expanding aggressively in Denver, for example. Frontier Airlines is already operating inside bankruptcy court protection, and United has said it will kill its ``Ted'' lower-cost airline-within-and-airline, which is based in Denver. Expect Southwest to continue its Rocky Mountain assault. That should provide travelers with different options, and even some lower-priced options.
In the end, airlines that can fly people at lower costs will gain in this financially challenging environment, and higher-cost carriers will continue to shrink. The staggering cost of oil may eventually bury a big carrier—they are very much in survival mode.
Former Continental CEO Gordon Bethune used to illustrate the challenges of running an airline with a joke: A bear is chasing two men, and one stops to put on running shoes. ``What are you doing? The shoes won't help you outrun the bear,'' the other man says.
``I don't have to outrun the bear,'' his friend responds. ``I just have to outrun you.''
The faster runners among airlines will continue to provide lots of service for consumers. It will just be at higher fares.
Write to Scott McCartney at middleseat@wsj.com
THE MIDDLE SEAT
By SCOTT MCCARTNEY
June 6, 2008
What do all these announcements of massive airline cutbacks mean for consumers? Higher fares.
By grounding planes and removing flights from schedules, airlines hope to limit the supply of seats in the skies and force people to pay more to fly. Planes are full now largely because airlines have to discount prices a lot in order to fill seats, especially in a weak economy. Airlines have been like automakers offering big discounts on SUVs and other vehicles piled up on dealership lots. At some point you have to stop making so many trucks if you can't sell them at a profit, and so airlines are shutting down their ``factories'' some – grounding airplanes and reducing the number of flights they offer for sale.
Despite more than a dozen ``fare increases,'' the fares that people actually are paying haven't yet gone up enough to come close to covering higher fuel costs for most airlines. In April, the most recent month reported, the average price people paid to fly one mile domestically was up only 4.3% over last year, according to the Air Transport Association. Fares likely were 7% to 8% higher in May than a year ago, according to some preliminary reports from airlines, but that's a far cry from paying for the 66% increase in the cost of fuel, which now amounts to about 40% of an airline's total costs.
Why? Because raising airfares isn't like raising the price of milk at the grocery store. Consumers have almost perfect information for price comparisons – the Internet can hunt the cheapest fare worldwide in seconds. If one carrier has some empty seats to fill, it will have to cut the price because getting something for that seat is better than flying it empty. And there's lots of competition in the industry – some airlines have lower cost structures than others, or better fuel hedges, and can absorb more of the higher costs than others.
Cutting the number of seats to sell is the only way to significantly raise prices. Not only can airlines raise ticket prices, but also they can sell fewer seats at discounted prices, and leave more seats in higher-priced fare ``buckets.'' Demand for seats will drop since there won't be as many cheap seats out there, but the planes that actually fly should generate more revenue. That's the only way for the industry to get back to profitability.
Continental Cuts Jobs, FleetSo which flights will get cut? Most of the cutting will come after the busy summer. Weak international routes are first to go, in general. The longer the trip the more fuel affects the profitability of the flight. AMR Corp.'s American Airlines already said it would end its daily service between New York and London's Stansted Airport, for example. AMR launched that flight in response to start-up business-class carriers using secondary London airports like Standsted. But high fuel costs and limited credit for airlines have already killed the London trans-Atlantic start-ups like Eos and Silverjet.
UAL Corp.'s United Airlines has erased its Los Angeles-Hong Kong flight from its schedule – San Francisco-Hong Kong flights do much better, and United can carry Los Angeles traffic over to San Francisco. Continental Airlines Inc. has been aggressively expanding internationally, and some routes have done better than others. Expect the weak ones to get suspended.
Domestically, airlines likely will thin schedules rather than abandon cities completely. Instead of five or six flights a day, they may cut back to four. Fewer seats will enable them to charge more.
But there's a cost to all this for airlines, too. Shrinking can raise the cost to operate each flight, on average, because lower-paid employees are the ones to get laid off and planes that sit often still need to be paid for, unless there's a bankruptcy filing or a way to sell them or turn them back to leasing companies. The aircraft market worldwide is strong, so many planes that U.S. airlines are grounding may well find new homes overseas.
In addition, all the cuts create opportunity for discount airlines that are still growing. Southwest Airlines Co. has historically been very opportunistic, filling in when bigger carriers cut. Southwest is expanding aggressively in Denver, for example. Frontier Airlines is already operating inside bankruptcy court protection, and United has said it will kill its ``Ted'' lower-cost airline-within-and-airline, which is based in Denver. Expect Southwest to continue its Rocky Mountain assault. That should provide travelers with different options, and even some lower-priced options.
In the end, airlines that can fly people at lower costs will gain in this financially challenging environment, and higher-cost carriers will continue to shrink. The staggering cost of oil may eventually bury a big carrier—they are very much in survival mode.
Former Continental CEO Gordon Bethune used to illustrate the challenges of running an airline with a joke: A bear is chasing two men, and one stops to put on running shoes. ``What are you doing? The shoes won't help you outrun the bear,'' the other man says.
``I don't have to outrun the bear,'' his friend responds. ``I just have to outrun you.''
The faster runners among airlines will continue to provide lots of service for consumers. It will just be at higher fares.
Write to Scott McCartney at middleseat@wsj.com
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