A330 airlines distance themselves from sensors
Airlines seek distance from speed sensors suspected in crash, others say working on retrofits
Adam Schreck, AP Business Writer
On Tuesday June 9, 2009, 1:45 pm EDT
DUBAI, United Arab Emirates (AP) -- Several airlines flying the type of plane involved in the Air France crash said Tuesday they use a different brand of airspeed sensor than those aboard the doomed flight, distancing themselves from instruments seen as a possible factor in last week's accident.
At the same time, other carriers that use probes similar to those on the flight -- including Delta Air Lines Inc. and the Middle East's Qatar Airways -- said they are working to upgrade the devices on dozens of Airbus planes.
The plane disappeared over the Atlantic Ocean while on a flight from Rio de Janeiro to Paris, killing 228 people on board.
Focus on the sensors known as Pitot tubes intensified after Air France issued a statement last week saying it was in the process of replacing the instruments on the Airbus A330 model.
The cause of Air France Flight 447's crash on May 31 remains unclear. But one theory is that the sensors became iced over and gave incorrect readings. That could have caused the plane to fly either too slow or too fast.
The sensors aboard the plane were made by France's Thales Group and had not yet been replaced. Thales spokeswoman Caroline Philips confirmed the company made the Pitot tubes on the jet that crashed. The defense and aerospace manufacturer did not provide details on the devices or say how many other planes use them.
Emirates, the Middle East's largest airline and one of the biggest A330 operators, said the Pitot tubes aboard its planes were made not by Thales but by U.S. manufacturer Goodrich Corp. of Charlotte, North Carolina.
"We have not experienced any issues with our probe units," said Adel al-Redha, Emirates executive vice president for engineering and operations. "Emirates is in full compliance with all standard operating procedure recommendations issued by aircraft manufacturers, as well as with requirements stipulated by international air safety and regulatory authorities."
The Dubai-based carrier operates 29 of the A330-200 variant, more than any other airline. The model is the same used on Air France Flight 447.
Abu Dhabi's Etihad Airways and Australia's Qantas Airways said their A330s are also equipped with Goodrich speed sensors.
"We are not concerned because it's a different system in our aircraft," Qantas General Manager for Government and Corporate Affairs David Epstein said.
A Goodrich spokeswoman could not be immediately reached for comment.
Pitot tubes and accompanying sensors feed crucial airspeed data and other information into cockpit computer systems. The sensors work in the same basic way, but may be designed differently depending on the plane type and manufacturer.
"It's like (aircraft) brakes. Some people use carbon, some people use steel," said independent airline consultant Bob Mann.
Concerns over the Thales sensors led an Air France union Monday to urge its pilots not to fly Airbus A330s and A340s unless at least two of the three Pitot sensors had been replaced. The Alter union represents about 12 percent of Air France pilots.
In a reflection of the growing concern surrounding the instruments, Qatar Airways posted a statement on its Web site Tuesday saying it is completing an "Airbus-approved modification" of Thales probes on all of its Airbus A319, A320, A321, A330 and A340 aircraft. The over 50 planes account form the bulk of the carrier's fleet.
Qatar Airways said the retrofit began last year, with 21 planes modified so far.
Atlanta-based Delta is currently installing new Pitot tubes from Thales on its A330 aircraft per the manufacturer's recommendation, spokeswoman Betsy Talton said.
"Until these installations are complete, we are communicating with our flight crews to reiterate the correct procedures to be used in the event of unreliable airspeed indications," Talton said.
Delta subsidiary Northwest Airlines also has installed new Pitot tubes on its A319/320 aircraft, Talton said.
Delta, the world's largest airline operator, owns 11 A330-200s and 21 A330-300s. It owns or leases 57 A319-100s and 69 A320-200s.
Tempe, Arizona-based US Airways, the other major U.S. A330 operator, has begun replacing the Pitot tube component on its A330s out of an abundance of caution, spokeswoman Michelle Mohr said, though she declined to identify the manufacturer. Nine of the carrier's 11 A330s are in regular service.
In Brazil, the private Agencia Estado news agency said the country's largest airline, TAM Linhas Aeras SA, has already replaced the Pitot tubes on its Airbus jets. TAM made the replacements after a 2007 recommendation from Airbus, Chief Executive David Barboni told Agencia Estado.
Brazil's air force, meanwhile, said that technicians would replace the Pitot tubes on an Airbus A319 used by President Luiz Inacio Lula da Silva because of a recommendation from the jet's manufacturer more than a month before the Air France crash.
Air force Col. Henry Munhoz said the tubes will be replaced during regular maintenance now under way, but insisted the work was not being performed because of the crash.
About 70 airlines operate versions of the 600 twin-engined A330s in use around the world.
Associated Press Writers Greg Keller in Paris, Eileen Ng in Kuala Lumpur, Malaysia, Alan Clendenning in Sao Paulo and Harry R. Weber in Atlanta contributed to this report.
Tuesday, June 09, 2009
Saturday, June 06, 2009
Airlines: Coach Class Becomes Cattle Class
Scott Reeves Jun 05, 2009 2:40 pm
Passengers given less space than average pig on the way to Baconland.
Suck in your hips, travelers, because some airlines are squeezing more seats into existing planes in an effort to boost revenue. But wedging your bovine butt into a smaller space on the redeye may be offset by another marketing trend: The size of many food products, such as candy bars, continue to shrink as the price rises. This may cause some to gobble fewer calories and, with luck, to leave their clothes untorn when squeezing into an airline seat in cattle class. American Airlines (AMR) recently added 12 seats to its new jets, the Wall Street Journal reports.
Some airlines have removed galleys to install extra seats. This may mean that semi-putrid airline meals can no longer be microwaved; only a sociologist could crack the profound implications of that tactic. Here’s a guess: Cold airline food won’t taste any worse than warm airline food.
In fact, no taste probably beats any taste. In some instances, airlines have moved the rows of seats closer together to increase capacity. This means you’re in greater danger of being knee-capped if the 300-pound lummox in front of you suddenly reclines - assuming you’re not already sitting with your knees under your chin. Other airlines are installing slimmer seats.
The irony: many discount carriers now offer more space than some legacy airlines. JetBlue (JBLU) offers a whopping 34 inches of space in each row, including the seat, while Southwest (LUV) typically offers 32 to 33 inches in its Boeing 737s. It appears that United (UAUA), Delta (DAL) and Continental (CAL) are slimming down to 31 inches in domestic coach. Note: The American Meat Institute requires that every hog on its way to Bacon-land get at least 6 square feet of space. A 150-pound sheep must be given 5 square feet.
Your average interstate commuter? 31 inches is more than enough, says the FAA.Conspiracy buffs will say the great seat squeeze is part of an effort to encourage coach passengers to upgrade and get more space while dropping more moola in the airlines’ grubby mitts. This seems an odd bet in a downbeat economy, even for grassy knoll habitués.
Smaller seats for broader bottoms plays out against the proliferation of extra fees for checked bags, seat location, flight changes, blanket, pillow - you name it. If airlines keep nickel and dime-ing their customers -- well, $10 and $15-ing -- more people may decide to stay home. The upside: That would mean lot of folks will have more bucks to spend on those tiny little candy bars.
Scott Reeves Jun 05, 2009 2:40 pm
Passengers given less space than average pig on the way to Baconland.
Suck in your hips, travelers, because some airlines are squeezing more seats into existing planes in an effort to boost revenue. But wedging your bovine butt into a smaller space on the redeye may be offset by another marketing trend: The size of many food products, such as candy bars, continue to shrink as the price rises. This may cause some to gobble fewer calories and, with luck, to leave their clothes untorn when squeezing into an airline seat in cattle class. American Airlines (AMR) recently added 12 seats to its new jets, the Wall Street Journal reports.
Some airlines have removed galleys to install extra seats. This may mean that semi-putrid airline meals can no longer be microwaved; only a sociologist could crack the profound implications of that tactic. Here’s a guess: Cold airline food won’t taste any worse than warm airline food.
In fact, no taste probably beats any taste. In some instances, airlines have moved the rows of seats closer together to increase capacity. This means you’re in greater danger of being knee-capped if the 300-pound lummox in front of you suddenly reclines - assuming you’re not already sitting with your knees under your chin. Other airlines are installing slimmer seats.
The irony: many discount carriers now offer more space than some legacy airlines. JetBlue (JBLU) offers a whopping 34 inches of space in each row, including the seat, while Southwest (LUV) typically offers 32 to 33 inches in its Boeing 737s. It appears that United (UAUA), Delta (DAL) and Continental (CAL) are slimming down to 31 inches in domestic coach. Note: The American Meat Institute requires that every hog on its way to Bacon-land get at least 6 square feet of space. A 150-pound sheep must be given 5 square feet.
Your average interstate commuter? 31 inches is more than enough, says the FAA.Conspiracy buffs will say the great seat squeeze is part of an effort to encourage coach passengers to upgrade and get more space while dropping more moola in the airlines’ grubby mitts. This seems an odd bet in a downbeat economy, even for grassy knoll habitués.
Smaller seats for broader bottoms plays out against the proliferation of extra fees for checked bags, seat location, flight changes, blanket, pillow - you name it. If airlines keep nickel and dime-ing their customers -- well, $10 and $15-ing -- more people may decide to stay home. The upside: That would mean lot of folks will have more bucks to spend on those tiny little candy bars.
Wednesday, June 03, 2009
Air France jet likely broke apart above ocean
AP
By FEDERICO ESCHER and BRADLEY BROOKS, Associated Press Writers Federico Escher And Bradley Brooks, Associated Press Writers – 24 mins ago
FERNANDO DE NORONHA, Brazil – Military planes located new debris from Air France Flight 447 Wednesday while investigators focused on a nightmarish ordeal in which the jetliner broke up over the Atlantic as it flew through a violent storm.
Heavy weather delayed until next week the arrival of deep-water submersibles considered key to finding the black box voice and data recorders that will help answer the question of what happened to the airliner, which disappeared Sunday with 228 people on board. But even with the equipment, the lead French investigator questioned whether the recorders would ever be found in such a deep and rugged part of the ocean.
As the first Brazilian military ships neared the search area, investigators were relying heavily on the plane's automated messages to help reconstruct what happened to the jet as it flew through towering thunderstorms. They detail a series of failures that end with its systems shutting down, suggesting the plane broke apart in the sky, according to an aviation industry official with knowledge of the investigation, who spoke on condition of anonymity because he was not authorized to discuss the crash.
The pilot sent a manual signal at 11 p.m. local time saying he was flying through an area of "CBs" — black, electrically charged cumulonimbus clouds that come with violent winds and lightning. Satellite data has shown that towering thunderheads were sending 100 mph (160 kph) updraft winds into the jet's flight path at the time.
Ten minutes later, a cascade of problems began: Automatic messages indicate the autopilot had disengaged, a key computer system switched to alternative power, and controls needed to keep the plane stable had been damaged. An alarm sounded indicating the deterioration of flight systems.
Three minutes after that, more automatic messages reported the failure of systems to monitor air speed, altitude and direction. Control of the main flight computer and wing spoilers failed as well.
The last automatic message, at 11:14 p.m., signaled loss of cabin pressure and complete electrical failure — catastrophic events in a plane that was likely already plunging toward the ocean.
"This clearly looks like the story of the airplane coming apart," the airline industry official told The Associated Press. "We just don't know why it did, but that is what the investigation will show."
French and Brazilian officials had already announced some of these details, but the more complete chronology was published Wednesday by Brazil's O Estado de S. Paulo newspaper, citing an unidentified Air France source, and confirmed to the AP by the aviation industry source.
Air France spokesman Nicolas Petteau referred questions about the messages to the French accident investigation agency, BEA, whose spokesman Martine Del Bono said the agency won't comment. Brazil's Defense Minister Nelson Jobim also declined to comment, saying that the accident "investigation is being done by France; Brazil's only responsibility is to find and pick up the pieces."
Other experts agreed that the automatic reports of system failures on the plane strongly suggest it broke up in the air, perhaps due to fierce thunderstorms, turbulence, lightning or a catastrophic combination of events.
"These are telling us the story of the crash. They are not explaining what happened to cause the crash," said Bill Voss, president and CEO of the Flight Safety Foundation in Alexandria, Va. "This is the documentation of the seconds when control was lost and the aircraft started to break up in air."
Voss stressed that the messages alone were not enough to understand why the Air France jet went down, noting that the black boxes will have far more information to help determine the cause.
One fear — terrorism — was dismissed Wednesday by all three countries involved in the search and recovery effort. France's defense minister and the Pentagon said there were no signs that terrorism was involved, and Jobim said "that possibility hasn't even been considered."
A U.S. Navy P-3C Orion surveillance plane, a French AWACS radar plane and two other French military planes joined Brazil's Air Force in trying to spot debris and narrow the search zone.
Brazil's Defense Minister Nelson Jobim said debris discovered so far was spread over a wide area, with some 230 kilometers (140 miles) separating pieces of wreckage they have spotted.
The floating debris includes a 23-foot (seven-meter) chunk of plane and a 12-mile-long (20-kilometer-long) oil slick, but pilots have spotted no signs of survivors, Air Force spokesman Col. Jorge Amaral said.
"Oil stains on the water might exclude the possibility of an explosion, because there was no fire," Defense Minister Nelson Jobim told reporters Wednesday.
The new debris was discovered about 55 miles (90 kilometers) south of where searchers a day earlier found an airplane seat, a fuel slick, an orange life vest and pieces of white debris. The original debris was found roughly 400 miles (640 kilometers) northeast of the Fernando de Noronha islands off Brazil's northern coast, an area where the ocean floor drops as low as 22,950 feet (7,000 meters) below sea level.
Brazil lacks the equipment needed to reach the ocean floor. If the black boxes are at the bottom of the sea, their recovery will have to wait for the arrival early next week of a French research ship with remotely controlled submersibles that can explore as deeply as 19,600 feet (6,000 meters).
The sturdy black boxes — voice and data recorders — are built to give off signals for at least 30 days, even underwater, and could keep their contents indefinitely.
But the head of France's accident investigation agency, Paul-Louis Arslanian, said in Paris that he is "not optimistic" about recovering the recorders — and that investigators should be prepared to continue the probe without them.
"It is not only deep, it is also mountainous," he said. "We might find ourselves blocked at some point by the lack of material elements."
Arslanian said investigators didn't have enough information to determine whether the plane broke up in the air or upon impact with the sea, and that in the absence of black box data, they are studying maintenance and other records.
"For the moment, there is no sign that would lead us to believe that the aircraft had a problem before it took off," Arslanian said.
He said investigators did not know the exact time of the accident or whether the chief pilot was at the controls when the plane went down. Pilots on long-haul flights often take turns at the controls to remain alert.
If no survivors are found, it would be the deadliest crash in Air France's history, and the world's worst civil aviation disaster since the November 2001 crash of an American Airlines jetliner in the New York City borough of Queens that killed 265 people.
___
Bradley Brooks wrote from Rio de Janeiro. Associated Press writers Alan Clendenning in Sao Paulo; Marco Sibaja in Brasilia; Slobodan Lekic in Brussels, Belgium; Shawn Pogatchnik in Dublin; Emma Vandore in Bourget, France; and Angela Charlton in Paris also contributed to this report.
AP
By FEDERICO ESCHER and BRADLEY BROOKS, Associated Press Writers Federico Escher And Bradley Brooks, Associated Press Writers – 24 mins ago
FERNANDO DE NORONHA, Brazil – Military planes located new debris from Air France Flight 447 Wednesday while investigators focused on a nightmarish ordeal in which the jetliner broke up over the Atlantic as it flew through a violent storm.
Heavy weather delayed until next week the arrival of deep-water submersibles considered key to finding the black box voice and data recorders that will help answer the question of what happened to the airliner, which disappeared Sunday with 228 people on board. But even with the equipment, the lead French investigator questioned whether the recorders would ever be found in such a deep and rugged part of the ocean.
As the first Brazilian military ships neared the search area, investigators were relying heavily on the plane's automated messages to help reconstruct what happened to the jet as it flew through towering thunderstorms. They detail a series of failures that end with its systems shutting down, suggesting the plane broke apart in the sky, according to an aviation industry official with knowledge of the investigation, who spoke on condition of anonymity because he was not authorized to discuss the crash.
The pilot sent a manual signal at 11 p.m. local time saying he was flying through an area of "CBs" — black, electrically charged cumulonimbus clouds that come with violent winds and lightning. Satellite data has shown that towering thunderheads were sending 100 mph (160 kph) updraft winds into the jet's flight path at the time.
Ten minutes later, a cascade of problems began: Automatic messages indicate the autopilot had disengaged, a key computer system switched to alternative power, and controls needed to keep the plane stable had been damaged. An alarm sounded indicating the deterioration of flight systems.
Three minutes after that, more automatic messages reported the failure of systems to monitor air speed, altitude and direction. Control of the main flight computer and wing spoilers failed as well.
The last automatic message, at 11:14 p.m., signaled loss of cabin pressure and complete electrical failure — catastrophic events in a plane that was likely already plunging toward the ocean.
"This clearly looks like the story of the airplane coming apart," the airline industry official told The Associated Press. "We just don't know why it did, but that is what the investigation will show."
French and Brazilian officials had already announced some of these details, but the more complete chronology was published Wednesday by Brazil's O Estado de S. Paulo newspaper, citing an unidentified Air France source, and confirmed to the AP by the aviation industry source.
Air France spokesman Nicolas Petteau referred questions about the messages to the French accident investigation agency, BEA, whose spokesman Martine Del Bono said the agency won't comment. Brazil's Defense Minister Nelson Jobim also declined to comment, saying that the accident "investigation is being done by France; Brazil's only responsibility is to find and pick up the pieces."
Other experts agreed that the automatic reports of system failures on the plane strongly suggest it broke up in the air, perhaps due to fierce thunderstorms, turbulence, lightning or a catastrophic combination of events.
"These are telling us the story of the crash. They are not explaining what happened to cause the crash," said Bill Voss, president and CEO of the Flight Safety Foundation in Alexandria, Va. "This is the documentation of the seconds when control was lost and the aircraft started to break up in air."
Voss stressed that the messages alone were not enough to understand why the Air France jet went down, noting that the black boxes will have far more information to help determine the cause.
One fear — terrorism — was dismissed Wednesday by all three countries involved in the search and recovery effort. France's defense minister and the Pentagon said there were no signs that terrorism was involved, and Jobim said "that possibility hasn't even been considered."
A U.S. Navy P-3C Orion surveillance plane, a French AWACS radar plane and two other French military planes joined Brazil's Air Force in trying to spot debris and narrow the search zone.
Brazil's Defense Minister Nelson Jobim said debris discovered so far was spread over a wide area, with some 230 kilometers (140 miles) separating pieces of wreckage they have spotted.
The floating debris includes a 23-foot (seven-meter) chunk of plane and a 12-mile-long (20-kilometer-long) oil slick, but pilots have spotted no signs of survivors, Air Force spokesman Col. Jorge Amaral said.
"Oil stains on the water might exclude the possibility of an explosion, because there was no fire," Defense Minister Nelson Jobim told reporters Wednesday.
The new debris was discovered about 55 miles (90 kilometers) south of where searchers a day earlier found an airplane seat, a fuel slick, an orange life vest and pieces of white debris. The original debris was found roughly 400 miles (640 kilometers) northeast of the Fernando de Noronha islands off Brazil's northern coast, an area where the ocean floor drops as low as 22,950 feet (7,000 meters) below sea level.
Brazil lacks the equipment needed to reach the ocean floor. If the black boxes are at the bottom of the sea, their recovery will have to wait for the arrival early next week of a French research ship with remotely controlled submersibles that can explore as deeply as 19,600 feet (6,000 meters).
The sturdy black boxes — voice and data recorders — are built to give off signals for at least 30 days, even underwater, and could keep their contents indefinitely.
But the head of France's accident investigation agency, Paul-Louis Arslanian, said in Paris that he is "not optimistic" about recovering the recorders — and that investigators should be prepared to continue the probe without them.
"It is not only deep, it is also mountainous," he said. "We might find ourselves blocked at some point by the lack of material elements."
Arslanian said investigators didn't have enough information to determine whether the plane broke up in the air or upon impact with the sea, and that in the absence of black box data, they are studying maintenance and other records.
"For the moment, there is no sign that would lead us to believe that the aircraft had a problem before it took off," Arslanian said.
He said investigators did not know the exact time of the accident or whether the chief pilot was at the controls when the plane went down. Pilots on long-haul flights often take turns at the controls to remain alert.
If no survivors are found, it would be the deadliest crash in Air France's history, and the world's worst civil aviation disaster since the November 2001 crash of an American Airlines jetliner in the New York City borough of Queens that killed 265 people.
___
Bradley Brooks wrote from Rio de Janeiro. Associated Press writers Alan Clendenning in Sao Paulo; Marco Sibaja in Brasilia; Slobodan Lekic in Brussels, Belgium; Shawn Pogatchnik in Dublin; Emma Vandore in Bourget, France; and Angela Charlton in Paris also contributed to this report.
Thursday, May 28, 2009
Updated: 4:42 p.m. May 28, 2009
Delta, pilots agree on severance deal
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, May 28, 2009
The pilots union at Delta Air Lines has agreed to a program offering incentives for pilot retirements to help the company cut pilot staffing.
Delta management had proposed the retirement incentive program to the Air Line Pilots Association at Delta to address “what management perceives to be a pilot staffing overage,” according to the union.
The union’s leadership voted Wednesday to approve the retirement incentive program. It will be offered from June 1 until July 15 to active pilots with at least 10 years of service and whose years of service and age total at least 55.
Pilots with less than 20 years of service will get six months of severance pay, while pilots with 20 years of service or more will get nine months of severance pay. The program also includes certain coverage of COBRA or retiree health care, as well as retiree travel benefits.
Delta pilots were not eligible to participate in the company’s buyouts this year and last year, which Delta used to cut about 6,500 employees.
The airline said in a written statement that it “continues to take every step possible to avoid involuntary reductions of front-line employees as a result of current economic conditions.”
Delta has about 12,000 pilots, including pilots from Delta and merger partner Northwest. Delta closed its deal to acquire Northwest in October.
Delta, pilots agree on severance deal
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, May 28, 2009
The pilots union at Delta Air Lines has agreed to a program offering incentives for pilot retirements to help the company cut pilot staffing.
Delta management had proposed the retirement incentive program to the Air Line Pilots Association at Delta to address “what management perceives to be a pilot staffing overage,” according to the union.
The union’s leadership voted Wednesday to approve the retirement incentive program. It will be offered from June 1 until July 15 to active pilots with at least 10 years of service and whose years of service and age total at least 55.
Pilots with less than 20 years of service will get six months of severance pay, while pilots with 20 years of service or more will get nine months of severance pay. The program also includes certain coverage of COBRA or retiree health care, as well as retiree travel benefits.
Delta pilots were not eligible to participate in the company’s buyouts this year and last year, which Delta used to cut about 6,500 employees.
The airline said in a written statement that it “continues to take every step possible to avoid involuntary reductions of front-line employees as a result of current economic conditions.”
Delta has about 12,000 pilots, including pilots from Delta and merger partner Northwest. Delta closed its deal to acquire Northwest in October.
Friday, May 22, 2009
US Airways pilots' seniority fight goes to jury
Dawn Gilbertson - May. 13, 2009 12:00 AM
The Arizona Republic
The bitter seniority dispute pitting some US Airways pilots against their new union is now in the hands of a federal jury.Jurors began deliberating late Tuesday after a day of closing arguments in the two-week trial in U.S. District Court in Phoenix.
The trial featured detailed background on how the dispute developed after the America West-US Airways merger in 2005 and the intricacies of union merger policies and politics. The case even offered a little star power in the testimony of the pilot and co-pilot of the US Airways plane that landed in the Hudson River in January.
At issue for the jury to decide: whether the year-old US Airline Pilots Association (USAPA) has been fairly representing all 5,000-plus pilots of the new US Airways.A group of six former America West pilots, representing their 1,800 co-workers, filed the lawsuit last year, alleging that the new union is ignoring their interests by pushing for date-of-hire seniority instead of a seniority system issued by an arbitrator two years ago.
The union says it is being fair to all because it has proposed several job protections for America West pilots in its new seniority proposal, some that go beyond those on the arbitrated list. America West pilots have packed the courtroom every day during the trial, some accompanied by spouses.Seniority is critical to pilots because it determines their pay, promotions, work schedules.
A big theme in the America West pilots' case is that the arbitrator's decision was final and binding and that pilots from both America West and US Airways and their then union, the Air Line Pilots Association, knew that from the start.
They say the new union was formed to try to get around the decision because pilots of the former US Airways didn't like the outcome. They generally fare better on a date-of-hire system because US Airways has been around so much longer than America West.
"No one said, "I'm willing to sign up for these rules but only if it goes my way," pilots' attorney Marty Harper said in his closing arguments.Harper used a gambling analogy, noting that you never hear the losers in a poker game say they were all in only if they won."That's sort of what's happening here," he told jurors.Harper took a swipe at the testimony, for the defense, of Capt. Chesley Sullenberger from US Airways Flight 1549.
Sullenberger told a story on the stand about how his daughter asked in grade school about the meaning of integrity, and he replied that it's doing the right thing if it's not convenient.Harper suggested that that's what the pilots of the former US Airways aren't doing by ignoring the arbitrated list."You can go back on your word under (a) certain set of circumstances," he said.Lee Seham, the union attorney who delivered its closing arguments, said the former US Airways pilots thought the arbitrated seniority list was "terribly, terribly unfair."
They didn't like the fact that many America West pilots were ranked ahead of US Airways pilots with much more seniority and that US Airways pilots out of work at the time of the merger were put at the bottom of the list.
There was such a strong sentiment against the arbitrator's decision that US Airways pilots would never ratify a contract that included that seniority list, Seham told jurors. The old union tried to get the two sides together to work out their differences, he said, with the added encouragement of US Airways executives, but the America West side wouldn't budge, he said.
"It takes two to tango," he said, suggesting that it could be argued that it was the America West pilots that were acting in bad faith.Seham said USAPA was acting in good faith because it was formed to resolve the impasse over seniority and get a long-awaited joint contract for all pilots of the new US Airways.
The two sides are still operating separately, under different pay rates and can't fly each other's planes. He said the pilots did not need USAPA to get rid of the arbitrated list because the old union was effectively doing that with its policies. Harper said the union has tried to downplay the sole reason it was formed - to get around the arbitrator's seniority list - because attorneys they consulted early on said it could land them in legal trouble.
He noted that an e-mail union officials brought up to show that they were balancing the interests of both pilot groups with the protections for America West pilots was sent after the lawsuit was filed. There are nine members on the jury, and their verdict must be unanimous.
Dawn Gilbertson - May. 13, 2009 12:00 AM
The Arizona Republic
The bitter seniority dispute pitting some US Airways pilots against their new union is now in the hands of a federal jury.Jurors began deliberating late Tuesday after a day of closing arguments in the two-week trial in U.S. District Court in Phoenix.
The trial featured detailed background on how the dispute developed after the America West-US Airways merger in 2005 and the intricacies of union merger policies and politics. The case even offered a little star power in the testimony of the pilot and co-pilot of the US Airways plane that landed in the Hudson River in January.
At issue for the jury to decide: whether the year-old US Airline Pilots Association (USAPA) has been fairly representing all 5,000-plus pilots of the new US Airways.A group of six former America West pilots, representing their 1,800 co-workers, filed the lawsuit last year, alleging that the new union is ignoring their interests by pushing for date-of-hire seniority instead of a seniority system issued by an arbitrator two years ago.
The union says it is being fair to all because it has proposed several job protections for America West pilots in its new seniority proposal, some that go beyond those on the arbitrated list. America West pilots have packed the courtroom every day during the trial, some accompanied by spouses.Seniority is critical to pilots because it determines their pay, promotions, work schedules.
A big theme in the America West pilots' case is that the arbitrator's decision was final and binding and that pilots from both America West and US Airways and their then union, the Air Line Pilots Association, knew that from the start.
They say the new union was formed to try to get around the decision because pilots of the former US Airways didn't like the outcome. They generally fare better on a date-of-hire system because US Airways has been around so much longer than America West.
"No one said, "I'm willing to sign up for these rules but only if it goes my way," pilots' attorney Marty Harper said in his closing arguments.Harper used a gambling analogy, noting that you never hear the losers in a poker game say they were all in only if they won."That's sort of what's happening here," he told jurors.Harper took a swipe at the testimony, for the defense, of Capt. Chesley Sullenberger from US Airways Flight 1549.
Sullenberger told a story on the stand about how his daughter asked in grade school about the meaning of integrity, and he replied that it's doing the right thing if it's not convenient.Harper suggested that that's what the pilots of the former US Airways aren't doing by ignoring the arbitrated list."You can go back on your word under (a) certain set of circumstances," he said.Lee Seham, the union attorney who delivered its closing arguments, said the former US Airways pilots thought the arbitrated seniority list was "terribly, terribly unfair."
They didn't like the fact that many America West pilots were ranked ahead of US Airways pilots with much more seniority and that US Airways pilots out of work at the time of the merger were put at the bottom of the list.
There was such a strong sentiment against the arbitrator's decision that US Airways pilots would never ratify a contract that included that seniority list, Seham told jurors. The old union tried to get the two sides together to work out their differences, he said, with the added encouragement of US Airways executives, but the America West side wouldn't budge, he said.
"It takes two to tango," he said, suggesting that it could be argued that it was the America West pilots that were acting in bad faith.Seham said USAPA was acting in good faith because it was formed to resolve the impasse over seniority and get a long-awaited joint contract for all pilots of the new US Airways.
The two sides are still operating separately, under different pay rates and can't fly each other's planes. He said the pilots did not need USAPA to get rid of the arbitrated list because the old union was effectively doing that with its policies. Harper said the union has tried to downplay the sole reason it was formed - to get around the arbitrator's seniority list - because attorneys they consulted early on said it could land them in legal trouble.
He noted that an e-mail union officials brought up to show that they were balancing the interests of both pilot groups with the protections for America West pilots was sent after the lawsuit was filed. There are nine members on the jury, and their verdict must be unanimous.
Thursday, May 21, 2009
Southwest Airlines sells 3 planes for $104 million, then leases them back
Thursday May 21, 2009, 3:25 pm EDT
DALLAS (AP) -- Southwest Airlines Co., trying to pad its cash balance amid a downturn in travel, said Thursday it sold three planes for $104 million and leased them back.
It was the second such transaction in just over a month at Dallas-based Southwest, bringing to six the number of planes it has sold.
Southwest said in a filing with the Securities and Exchange Commission that on Tuesday it closed a sale-leaseback deal with a third party aircraft lessor involving three Boeing 737-700 jets. It immediately leased the planes back for 16 years.
Southwest said it will make monthly payments of about $4.4 million for the first six months of the leases. It didn't identify the lessor in the transaction.
The low-fare airline had a string of profitable quarters from 1991 until last year, the longest streak in the U.S. airline industry. But it has lost money the last three quarters, with falling traffic hurting its results so far in 2009.
Airlines have had a difficult time borrowing money to finance aircraft purchases and other purposes. The chief executive of American Airlines parent AMR Corp. said, however, that the credit squeeze seems to be easing.
Southwest shares fell 18 cents, or 2.6 percent, to $6.75 in afternoon trading.
Thursday May 21, 2009, 3:25 pm EDT
DALLAS (AP) -- Southwest Airlines Co., trying to pad its cash balance amid a downturn in travel, said Thursday it sold three planes for $104 million and leased them back.
It was the second such transaction in just over a month at Dallas-based Southwest, bringing to six the number of planes it has sold.
Southwest said in a filing with the Securities and Exchange Commission that on Tuesday it closed a sale-leaseback deal with a third party aircraft lessor involving three Boeing 737-700 jets. It immediately leased the planes back for 16 years.
Southwest said it will make monthly payments of about $4.4 million for the first six months of the leases. It didn't identify the lessor in the transaction.
The low-fare airline had a string of profitable quarters from 1991 until last year, the longest streak in the U.S. airline industry. But it has lost money the last three quarters, with falling traffic hurting its results so far in 2009.
Airlines have had a difficult time borrowing money to finance aircraft purchases and other purposes. The chief executive of American Airlines parent AMR Corp. said, however, that the credit squeeze seems to be easing.
Southwest shares fell 18 cents, or 2.6 percent, to $6.75 in afternoon trading.
Monday, May 11, 2009
May 11, 2009, 9:32 AM ET
Captain’s Training Faulted In Buffalo Crash That Killed 50
By WSJ Staff
The captain of a commuter plane that crashed Feb. 12 near Buffalo, N.Y., had flunked numerous flight tests during his career and was never adequately taught how to respond to the emergency that led to the airplane’s fatal descent, according to people close to the investigation, The Wall Street Journal reports.
Reporter Andy Pasztor writes:
All 49 people aboard were killed, as well as one person in a house below, when the plane crashed just a few miles short of the Buffalo airport en route from Newark, N.J. The Bombardier Q400 turboprop in the crash, which will be the subject of a National Transportation Safety Board hearing Tuesday, was operated by commuter carrier Colgan Air Inc., a division of Pinnacle Airlines Corp.
Capt. Marvin Renslow had never been properly trained by the company to respond to a warning system designed to prevent the plane from going into a stall, according to people familiar with the investigation. As the speed slowed to a dangerous level, setting off the stall-prevention system, he did the opposite of the proper procedure, which led to the crash, these people said.
Additionally, his 24-year-old co-pilot, Rebecca Shaw, had complained before takeoff about being congested and said she probably should have called in sick, according to people who have listened to the cockpit voice recording.
The circumstances surrounding Continental Connection Flight 3407 have prompted investigators and regulators to examine Colgan’s hiring and training practices. At the NTSB hearing, witnesses are expected to provide new allegations about training shortcomings, as well as the prevalence of chronic pilot fatigue and lapses in cockpit discipline. The NTSB also is expected to be critical of the Federal Aviation Administration’s oversight of the airline. The FAA, which has said it is investigating the airline over pilot scheduling, declined to comment on issues likely to be raised the hearing.
Pinnacle has said its pilot training programs “meet or exceed regulatory requirements for all major airlines” and crews “are prepared to handle emergency situations they might face.” On Sunday, spokesman Joe Williams confirmed in an email that Capt. Renslow had five “unsatisfactory” training check rides in his career — including two at Colgan — but passed a subsequent series of training tests and was “fully qualified in the Q400″ aircraft.
In recent weeks, Colgan’s top two training officials resigned; Mr. Williams has said their decisions were voluntary and not connected to the accident. Darrell Mitchell, Colgan’s departing director of training, is slated to testify at Tuesday’s hearing.
At the start of Tuesday’s hearing, the NTSB will open its public docket on the Colgan accident. Readers will be able to download the file, which includes reports, interview transcripts, cockpit voice recorder transcripts, flight data recorder information and other documents, once the hearing gets underway.
An agenda for the three-day hearing is available here.
Captain’s Training Faulted In Buffalo Crash That Killed 50
By WSJ Staff
The captain of a commuter plane that crashed Feb. 12 near Buffalo, N.Y., had flunked numerous flight tests during his career and was never adequately taught how to respond to the emergency that led to the airplane’s fatal descent, according to people close to the investigation, The Wall Street Journal reports.
Reporter Andy Pasztor writes:
All 49 people aboard were killed, as well as one person in a house below, when the plane crashed just a few miles short of the Buffalo airport en route from Newark, N.J. The Bombardier Q400 turboprop in the crash, which will be the subject of a National Transportation Safety Board hearing Tuesday, was operated by commuter carrier Colgan Air Inc., a division of Pinnacle Airlines Corp.
Capt. Marvin Renslow had never been properly trained by the company to respond to a warning system designed to prevent the plane from going into a stall, according to people familiar with the investigation. As the speed slowed to a dangerous level, setting off the stall-prevention system, he did the opposite of the proper procedure, which led to the crash, these people said.
Additionally, his 24-year-old co-pilot, Rebecca Shaw, had complained before takeoff about being congested and said she probably should have called in sick, according to people who have listened to the cockpit voice recording.
The circumstances surrounding Continental Connection Flight 3407 have prompted investigators and regulators to examine Colgan’s hiring and training practices. At the NTSB hearing, witnesses are expected to provide new allegations about training shortcomings, as well as the prevalence of chronic pilot fatigue and lapses in cockpit discipline. The NTSB also is expected to be critical of the Federal Aviation Administration’s oversight of the airline. The FAA, which has said it is investigating the airline over pilot scheduling, declined to comment on issues likely to be raised the hearing.
Pinnacle has said its pilot training programs “meet or exceed regulatory requirements for all major airlines” and crews “are prepared to handle emergency situations they might face.” On Sunday, spokesman Joe Williams confirmed in an email that Capt. Renslow had five “unsatisfactory” training check rides in his career — including two at Colgan — but passed a subsequent series of training tests and was “fully qualified in the Q400″ aircraft.
In recent weeks, Colgan’s top two training officials resigned; Mr. Williams has said their decisions were voluntary and not connected to the accident. Darrell Mitchell, Colgan’s departing director of training, is slated to testify at Tuesday’s hearing.
At the start of Tuesday’s hearing, the NTSB will open its public docket on the Colgan accident. Readers will be able to download the file, which includes reports, interview transcripts, cockpit voice recorder transcripts, flight data recorder information and other documents, once the hearing gets underway.
An agenda for the three-day hearing is available here.
Sunday, May 10, 2009
Airlines bank on fees in down times
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Sunday, May 10, 2009
The onslaught of more airline fees on everything from checked bags to seat assignments is helping airlines bring in more cash, but for travelers it can mean muddled comparison shopping when seeking the lowest cost for a flight.
Add-on fees have become an effective way for airlines to boost revenue at a time when recession-weakened travel demand compels them to drop fares.
Atlanta-based Delta Air Lines in July starts charging passengers on international flights a $50 fee each way for checking a second bag. Other airlines are studying the move but have not yet matched. That means travelers who check two bags may find a lower fare on Delta compared with other carriers, but their cost for traveling could end up higher.
Various airlines have baggage charges that can add up fast. Pack a third bag on an international flight and Delta will tack on another $200 fee each way, for example. Overweight bags on a Delta international flight would each cost at least $300 extra round trip and oversized bags would each cost $350 extra round trip.
Even on domestic flights, “your $78 airplane ticket can be $600 or $700 in a New York minute just because you didn’t pay attention” to fees for extra, overweight and oversized bags, said Tom Parsons, founder of Bestfares.com.
The fees enable airlines to win bookings from customers using travel Web sites to compare prices and choose the lowest fare, then collect more revenue when travelers arrive at the airport with extra bags or seek other services.
Bill Swelbar, a researcher at the International Center for Air Transportation at the Massachusetts Institute of Technology, said airlines have had to look for other revenue sources because fares alone don’t cover the cost of travel.
“The airline seat is a commodity product,” Swelbar said. Airlines believe they must offer the lowest fares “because so many decisions on travel are based on price and price alone.”
AirTran Airways chief financial officer Arne Haak has said travelers will spend hours searching for fares online to save $8, then “come to the airport and spend $20 to buy a soda, a bag of chips, a candy bar and a magazine that they could have bought for half the price.”
Parsons said “John Q. Traveler” seems much more concerned about finding the lowest base fare. “All the other incidentals they don’t seem to be upset with,” he said.
While most airlines already charge for checked bags on domestic flights, baggage rules have been more liberal for international travel, where longer trips may require more bags and fares often are already much higher.
“Now they’re telling you you’ve also got to pay for bags,” Parsons said. “I remember when they used to give you bags. Where’s my old PanAm bag?”
Delta, which reported a $794 million loss for the first quarter, said it took in more than $160 million from baggage fees in the quarter. It expects the new international second checked bag fee to generate about $100 million annually.
Chicago-based United Airlines said it takes in about $14 in ancillary revenues and fees per passenger.
One carrier —- Southwest Airlines, which does not fly to Atlanta —- has held back on charging many of the extra fees, and it promotes the difference.
But other discount airlines, including Spirit and Allegiant, have gone further than the big carriers, including a fee for bookings made online and charges for non-alcoholic beverages.
And US Airways is adding a fee on top of a fee. On July 9, the carrier plans to begin charging $5 for paying checked bag fees at the airport instead of online. US Airways also charges for international checked bags to and from Canada, Latin America and the Caribbean, but not to and from Europe and Asia.
A consumer’s only defense at this point is careful research and adjusting plans to avoid fees.
Technology is in the works to make it easier for travelers to compare prices. The technology is being developed for reservations systems that airlines and travel agencies use to sell airline tickets.
Some travel Web sites also offer fee comparisons. TripAdvisor in February launched a flight search engine with a fees estimator that asks travelers how many bags they will check, whether they have elite frequent flier status —- which can affect which fees apply —- and if they will want food, drinks or entertainment in flight.
Other travel sites, including Orbitz, Expedia and Travelocity, offer charts that compare different airlines’ fees. Another site, flyingfees.com, compares airline fees.
According to a TripAdvisor survey, 36 percent of respondents said they have been surprised by the cost of checked baggage fees at the airport.
“I thought there would be more backlash from the traveling public over the payment of fees than there has been,” Swelbar said.
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Sunday, May 10, 2009
The onslaught of more airline fees on everything from checked bags to seat assignments is helping airlines bring in more cash, but for travelers it can mean muddled comparison shopping when seeking the lowest cost for a flight.
Add-on fees have become an effective way for airlines to boost revenue at a time when recession-weakened travel demand compels them to drop fares.
Atlanta-based Delta Air Lines in July starts charging passengers on international flights a $50 fee each way for checking a second bag. Other airlines are studying the move but have not yet matched. That means travelers who check two bags may find a lower fare on Delta compared with other carriers, but their cost for traveling could end up higher.
Various airlines have baggage charges that can add up fast. Pack a third bag on an international flight and Delta will tack on another $200 fee each way, for example. Overweight bags on a Delta international flight would each cost at least $300 extra round trip and oversized bags would each cost $350 extra round trip.
Even on domestic flights, “your $78 airplane ticket can be $600 or $700 in a New York minute just because you didn’t pay attention” to fees for extra, overweight and oversized bags, said Tom Parsons, founder of Bestfares.com.
The fees enable airlines to win bookings from customers using travel Web sites to compare prices and choose the lowest fare, then collect more revenue when travelers arrive at the airport with extra bags or seek other services.
Bill Swelbar, a researcher at the International Center for Air Transportation at the Massachusetts Institute of Technology, said airlines have had to look for other revenue sources because fares alone don’t cover the cost of travel.
“The airline seat is a commodity product,” Swelbar said. Airlines believe they must offer the lowest fares “because so many decisions on travel are based on price and price alone.”
AirTran Airways chief financial officer Arne Haak has said travelers will spend hours searching for fares online to save $8, then “come to the airport and spend $20 to buy a soda, a bag of chips, a candy bar and a magazine that they could have bought for half the price.”
Parsons said “John Q. Traveler” seems much more concerned about finding the lowest base fare. “All the other incidentals they don’t seem to be upset with,” he said.
While most airlines already charge for checked bags on domestic flights, baggage rules have been more liberal for international travel, where longer trips may require more bags and fares often are already much higher.
“Now they’re telling you you’ve also got to pay for bags,” Parsons said. “I remember when they used to give you bags. Where’s my old PanAm bag?”
Delta, which reported a $794 million loss for the first quarter, said it took in more than $160 million from baggage fees in the quarter. It expects the new international second checked bag fee to generate about $100 million annually.
Chicago-based United Airlines said it takes in about $14 in ancillary revenues and fees per passenger.
One carrier —- Southwest Airlines, which does not fly to Atlanta —- has held back on charging many of the extra fees, and it promotes the difference.
But other discount airlines, including Spirit and Allegiant, have gone further than the big carriers, including a fee for bookings made online and charges for non-alcoholic beverages.
And US Airways is adding a fee on top of a fee. On July 9, the carrier plans to begin charging $5 for paying checked bag fees at the airport instead of online. US Airways also charges for international checked bags to and from Canada, Latin America and the Caribbean, but not to and from Europe and Asia.
A consumer’s only defense at this point is careful research and adjusting plans to avoid fees.
Technology is in the works to make it easier for travelers to compare prices. The technology is being developed for reservations systems that airlines and travel agencies use to sell airline tickets.
Some travel Web sites also offer fee comparisons. TripAdvisor in February launched a flight search engine with a fees estimator that asks travelers how many bags they will check, whether they have elite frequent flier status —- which can affect which fees apply —- and if they will want food, drinks or entertainment in flight.
Other travel sites, including Orbitz, Expedia and Travelocity, offer charts that compare different airlines’ fees. Another site, flyingfees.com, compares airline fees.
According to a TripAdvisor survey, 36 percent of respondents said they have been surprised by the cost of checked baggage fees at the airport.
“I thought there would be more backlash from the traveling public over the payment of fees than there has been,” Swelbar said.
Saturday, May 09, 2009
American Airlines global alliance soon to be OK'd?
12:00 AM CDT on Saturday, May 9, 2009
By DAVE MICHAELS / The Dallas Morning News dmichaels@dallasnews.com
WASHINGTON – The U.S. Department of Transportation looks poised to approve antitrust immunity for American Airlines' alliance with British Airways, Iberia and other carriers.
"These alliances are life savers for airlines," Transportation Secretary Ray LaHood said Friday. "That is the premise from which we start. We believe it. The airlines believe it. And so we are going to continue to pursue those kinds of opportunities where we have them."
Two other global alliances have antitrust immunity, allowing them to cooperate on schedules, fares and cargo prices.
House Democrats are much more skeptical than LaHood of airline alliances, saying they are anti-competitive and drive up prices for international routes. Minnesota Rep. Jim Oberstar, chairman of the House Transportation and Infrastructure Committee, has said immunized alliances amount to a "de facto merger" of airlines.
American says alliances have resulted in more trans-Atlantic service and better frequent-flier benefits for travelers.
Legislation to fund the Federal Aviation Administration passed Oberstar's committee in March and included a provision that would retire existing antitrust exemptions after three years. It also would direct government auditors to study whether such alliances have hurt competition and whether applications should be subject to a merger analysis by the Department of Justice.
However, LaHood on Friday supported the idea that alliances are needed to achieve efficiencies in today's market. Last month, his department proposed to grant antitrust immunity to Continental Airlines for its participation in the Star Alliance, which includes United Airlines, Air Canada and Lufthansa Airlines.
"When I called the chairmen of United and Continental and told them our department was going to move ahead with their alliance, you know what they said?" La Hood said. " 'This is a life saver for us.' "
Parties interested in the Oneworld application have until May 18 to submit comments about it. American and British Airways have until May 28 to respond. The department would make a preliminary ruling after that and has until Oct. 31 to issue a final ruling.
The European Union recently began investigating the Oneworld and Star alliances for possible violations of antitrust rules.
12:00 AM CDT on Saturday, May 9, 2009
By DAVE MICHAELS / The Dallas Morning News dmichaels@dallasnews.com
WASHINGTON – The U.S. Department of Transportation looks poised to approve antitrust immunity for American Airlines' alliance with British Airways, Iberia and other carriers.
"These alliances are life savers for airlines," Transportation Secretary Ray LaHood said Friday. "That is the premise from which we start. We believe it. The airlines believe it. And so we are going to continue to pursue those kinds of opportunities where we have them."
Two other global alliances have antitrust immunity, allowing them to cooperate on schedules, fares and cargo prices.
House Democrats are much more skeptical than LaHood of airline alliances, saying they are anti-competitive and drive up prices for international routes. Minnesota Rep. Jim Oberstar, chairman of the House Transportation and Infrastructure Committee, has said immunized alliances amount to a "de facto merger" of airlines.
American says alliances have resulted in more trans-Atlantic service and better frequent-flier benefits for travelers.
Legislation to fund the Federal Aviation Administration passed Oberstar's committee in March and included a provision that would retire existing antitrust exemptions after three years. It also would direct government auditors to study whether such alliances have hurt competition and whether applications should be subject to a merger analysis by the Department of Justice.
However, LaHood on Friday supported the idea that alliances are needed to achieve efficiencies in today's market. Last month, his department proposed to grant antitrust immunity to Continental Airlines for its participation in the Star Alliance, which includes United Airlines, Air Canada and Lufthansa Airlines.
"When I called the chairmen of United and Continental and told them our department was going to move ahead with their alliance, you know what they said?" La Hood said. " 'This is a life saver for us.' "
Parties interested in the Oneworld application have until May 18 to submit comments about it. American and British Airways have until May 28 to respond. The department would make a preliminary ruling after that and has until Oct. 31 to issue a final ruling.
The European Union recently began investigating the Oneworld and Star alliances for possible violations of antitrust rules.
Wednesday, May 06, 2009
May 6, 2009, 10:47 AM ET
Artist Allegedly Swigged Hand Soap, Tried to Bite United Flight Attendant
By Matt Phillips
Wow. It’s been a while since a tale of poor passenger behavior grabbed our attention as much as this one.
The Chicago Tribune’s Julie Johnsson reports:
United Airlines diverted a recent flight bound for London after an incoherent and disruptive passenger, apparently woozy from a combination of pills, alcohol and lavatory hand soap, allegedly tried to bite a flight attendant in the leg.
Galina Rusanova, a British citizen, was charged with interference with a flight crew and assault for allegedly disrupting United Flight 934 from Los Angeles to London Heathrow Airport on April 29, forcing the plane to land in Maine.
She could face up to 20 years in prison and a $250,000 fine.
In a Monday hearing in U.S. District Court in Bangor, Maine, Rusanova agreed to be detained pending trial.
Rusanova is described by the British press as a Russian-born artist, actress and author who rubs elbows with the rich and famous. She was returning home to the United Kingdom after traveling to California to visit a man she had met over the Internet, according to court documents.
“What wasn’t disclosed through the affidavit is that Ms. Rusanova is a very intelligent, charming woman,” said her attorney, Matthew Erickson. “This comes as a shock to her.”
Erickson added: “Her mistake was to mix prescription drugs with alcohol. After that, all bets were off.”
Of course the detail of this episode that really stands out is the hand soap. According to court documents filed May 1, a flight attendant approached Rusanova after passengers said the artist was being disruptive, “at which time she observed her drink a bottle of liquid soap that she had apparently removed from the bathroom.”
An affidavit also cites a written statement from a flight crew member “in which she reports that at one point while Rusanova was in the galley, she fell to the ground and began ’snapping like a dog’ and trying to bite flight crew member Donoho’s leg.”
Johnsson reports that while Rusanova could face a long stint in jail, guidelines for sentencing in cases like hers suggest jail terms ranging from time served to about six months, according to the artist’s lawyer.
Artist Allegedly Swigged Hand Soap, Tried to Bite United Flight Attendant
By Matt Phillips
Wow. It’s been a while since a tale of poor passenger behavior grabbed our attention as much as this one.
The Chicago Tribune’s Julie Johnsson reports:
United Airlines diverted a recent flight bound for London after an incoherent and disruptive passenger, apparently woozy from a combination of pills, alcohol and lavatory hand soap, allegedly tried to bite a flight attendant in the leg.
Galina Rusanova, a British citizen, was charged with interference with a flight crew and assault for allegedly disrupting United Flight 934 from Los Angeles to London Heathrow Airport on April 29, forcing the plane to land in Maine.
She could face up to 20 years in prison and a $250,000 fine.
In a Monday hearing in U.S. District Court in Bangor, Maine, Rusanova agreed to be detained pending trial.
Rusanova is described by the British press as a Russian-born artist, actress and author who rubs elbows with the rich and famous. She was returning home to the United Kingdom after traveling to California to visit a man she had met over the Internet, according to court documents.
“What wasn’t disclosed through the affidavit is that Ms. Rusanova is a very intelligent, charming woman,” said her attorney, Matthew Erickson. “This comes as a shock to her.”
Erickson added: “Her mistake was to mix prescription drugs with alcohol. After that, all bets were off.”
Of course the detail of this episode that really stands out is the hand soap. According to court documents filed May 1, a flight attendant approached Rusanova after passengers said the artist was being disruptive, “at which time she observed her drink a bottle of liquid soap that she had apparently removed from the bathroom.”
An affidavit also cites a written statement from a flight crew member “in which she reports that at one point while Rusanova was in the galley, she fell to the ground and began ’snapping like a dog’ and trying to bite flight crew member Donoho’s leg.”
Johnsson reports that while Rusanova could face a long stint in jail, guidelines for sentencing in cases like hers suggest jail terms ranging from time served to about six months, according to the artist’s lawyer.
Tuesday, May 05, 2009
Airlines: Where Capital Goes to Die
The big U.S. carriers have a broken business model and little relief in sight. Some long held assumptions about the industry could soon be upended
By Justin Bachman
As U.S. banks grapple with federal "stress tests" on their balance sheets, a similar process is playing out in the airline industry. Mix a deep recession with tight credit and fear of an influenza pandemic, and there's plenty of stress on airline balance sheets this spring. That has carriers conserving every last penny and hoping the summer travel months provide a sufficient cushion to last through to an economic recovery.
But what if the summer is not bountiful, or the global recession turns nastier? What if another health or terror scare further depresses flying? For most of their history airlines have been growth enterprises, with heavy capital needs but plenty of people willing to invest. That was then, however; today a share of most airline stocks costs less than a six-pack of microbrew.
Those shares serve as little more than a proxy for the price of crude oil—a trading stock that can turn a quick profit. Legacy airline debt yields a 20% or better return, but only because the risk is so high. The current times are sapping cash; maintaining liquidity has become a central job for airlines. "We have in this business been able to fund long-term losses with outside capital … and that is going to be harder to do in the future," US Airways (LCC) CEO Doug Parker said on May 4, citing "fundamental" changes for airlines' financial partners such as banks, aircraft makers, lessors, and other suppliers.
All Eyes on the Baby Boomers
So where will operating capital come from? It's a crucial question for airlines. If demand doesn't return to the same degree as in past recoveries—indeed, if in coming years aging baby boomers wracked by stock losses and shaky home prices fundamentally change their spending habits and don't travel as much as predicted—revenues could be severely crimped. That might combine with two rising expenses: higher payments to underfunded pension plans that cover older airline workers, and more capital to update aging jet fleets.
Yet as the recent experience of troubled American banks and car companies has shown, once far-fetched scenarios can quickly morph into solutions for vital yet ailing industries. U.S. taxpayers have been summoned repeatedly for aid, as have investors abroad. Uncle Sam has also offered enticing terms to spur certain investments—similar incentives could be devised for the airline industry. And for practical purposes, the Obama Administration has been managing General Motors (GM), Chrysler, and American International Group (AIG). Why not an airline or two?
If airlines are eventually forced into bankruptcy, pensions may be jettisoned, as US Airways, Delta (DAL), and United (UAUA) have all done in Chapter 11. But federal officials could require more funds from companies that wish to do so. As for aircraft, the U.S. lags Europe and Asia in terms of commercial fleet age because cash-strapped U.S. airlines have bought very few of the latest models (zero of the jumbo Airbus A380s, for example). Airbus and Boeing (BA) are themselves scrambling to keep business and tend to offer large customers attractive financing and other breaks, but that would hardly cover the needs of an industrywide order for 1,000 or more new planes.
Consolidation Among the Big Five?
"Looking ahead, with credit tight, where will capital—affordable capital—be found unless it is from another participant in the same industry?" Bill Swelbar, a research engineer with MIT's International Center for Air Transportation and a Hawaiian Airlines (HA) director, wrote recently on his blog. "If companies are struggling to realize any return on invested capital today, then what happens as interest rates continue to increase in lockstep with capital scarcity?"
As Swelbar suggests, the logical answer would be consolidation among the five big carriers. A new round of bankruptcies might even see one or more of a large airline's best bits sold off to a rival, or outright liquidations—steps that were largely avoided during the reorganizations that followed the 2001 terrorist attacks. Even after the capacity cutbacks spurred by crude oil's spike in the summer of 2008, many observers say far more—25% to 35% of the current capacity—must be removed before any meaningful profit-margin improvements will be realized.
"There are too many airlines," says Vicki Bryan, a senior bond analyst with Gimme Credit in New York. "Even last year when they were all just getting killed, slaughtered, massacred on fuel … the net reduction in capacity was just not significant."
Ownership Issues Coming to a Head
But airline consolidation remains a minefield that encroaches on union and political interests. Ditto for another potential source of capital, healthier European and Asian carriers. U.S. law restricts foreign airline ownership in U.S. carriers to a minority stake, but the International Air Transport Assn. and big European airlines have made that issue a central part of the debate over further liberalization in U.S.-European air links, with the matter coming to a head in 2010 when a second phase of the "Open Skies" treaty is set to be negotiated.
"From California to the eastern banks of Europe, this should be one market, and we should treat it as one market," Lufthansa (LHAG.DE) CEO Wolfgang Mayrhuber said Apr. 29 in a speech to the U.S. Chamber of Commerce in Washington. Lufthansa has been on the forefront of consolidation in Europe, taking controlling ownership since 2005 in various carriers: SWISS, Austrian, Belgian, and bmi, and a 19% stake in JetBlue (JBLU).
The long argument against foreign control of U.S. carriers, dating from the 1940s, has been based on national security and the government's ability to gain access to the civilian fleet in emergencies. Others worry that European or Asian operators would slash jobs and decline to serve small, less profitable U.S. cities. But nationalistic arguments may hold diminishing sway at a time when an Italian industrial group, Fiat (FIA.MI), is negotiating to acquire one of Detroit's iconic Big Three automakers, and the largest U.S. bank—Citigroup (C)—has sold a nearly 9% stake to investors in Abu Dhabi and Saudi Arabia.
Going Private Not Likely
One other option that might apply in other industries—going private—is unlikely to come to airlines. Jesup & Lamont analyst Helane Becker raised the question with United's management during a recent earnings call: With their public equity virtually worthless, why don't airlines seek funds from public debt? But to go private, airline executives would have to borrow heavily to buy their shares—and even if they did so, they'd be spending those funds on a severely distressed asset.
That's not a scenario lenders would care to see. As for an outside takeover, private equity firms have lost the financial firepower they deployed in 2006 and 2007 as the worldwide credit markets seized. And even if they had escaped the market collapse unscathed, an airline would be among the least favorable places to invest. Moreover, the legacy carriers already have substantial leverage on the books, leaving a takeover artist no space to add debt. "It becomes an opportunity cost, too," says Ben Baldanza, chief executive of privately held Spirit Airlines. "If you got a billion dollars are you going to go buy an airline?"
For cash-strapped airlines, the looming crisis could produce relief in many forms: a new European owner, a government-overseen industry consolidation that forces travelers to pay more, or the sort of terms that may make a large investment fund scramble for its checkbook. As recent history demonstrates, old problems in this environment have a way of attracting new solutions.
Bachman is deputy news director for BusinessWeek.com.
The big U.S. carriers have a broken business model and little relief in sight. Some long held assumptions about the industry could soon be upended
By Justin Bachman
As U.S. banks grapple with federal "stress tests" on their balance sheets, a similar process is playing out in the airline industry. Mix a deep recession with tight credit and fear of an influenza pandemic, and there's plenty of stress on airline balance sheets this spring. That has carriers conserving every last penny and hoping the summer travel months provide a sufficient cushion to last through to an economic recovery.
But what if the summer is not bountiful, or the global recession turns nastier? What if another health or terror scare further depresses flying? For most of their history airlines have been growth enterprises, with heavy capital needs but plenty of people willing to invest. That was then, however; today a share of most airline stocks costs less than a six-pack of microbrew.
Those shares serve as little more than a proxy for the price of crude oil—a trading stock that can turn a quick profit. Legacy airline debt yields a 20% or better return, but only because the risk is so high. The current times are sapping cash; maintaining liquidity has become a central job for airlines. "We have in this business been able to fund long-term losses with outside capital … and that is going to be harder to do in the future," US Airways (LCC) CEO Doug Parker said on May 4, citing "fundamental" changes for airlines' financial partners such as banks, aircraft makers, lessors, and other suppliers.
All Eyes on the Baby Boomers
So where will operating capital come from? It's a crucial question for airlines. If demand doesn't return to the same degree as in past recoveries—indeed, if in coming years aging baby boomers wracked by stock losses and shaky home prices fundamentally change their spending habits and don't travel as much as predicted—revenues could be severely crimped. That might combine with two rising expenses: higher payments to underfunded pension plans that cover older airline workers, and more capital to update aging jet fleets.
Yet as the recent experience of troubled American banks and car companies has shown, once far-fetched scenarios can quickly morph into solutions for vital yet ailing industries. U.S. taxpayers have been summoned repeatedly for aid, as have investors abroad. Uncle Sam has also offered enticing terms to spur certain investments—similar incentives could be devised for the airline industry. And for practical purposes, the Obama Administration has been managing General Motors (GM), Chrysler, and American International Group (AIG). Why not an airline or two?
If airlines are eventually forced into bankruptcy, pensions may be jettisoned, as US Airways, Delta (DAL), and United (UAUA) have all done in Chapter 11. But federal officials could require more funds from companies that wish to do so. As for aircraft, the U.S. lags Europe and Asia in terms of commercial fleet age because cash-strapped U.S. airlines have bought very few of the latest models (zero of the jumbo Airbus A380s, for example). Airbus and Boeing (BA) are themselves scrambling to keep business and tend to offer large customers attractive financing and other breaks, but that would hardly cover the needs of an industrywide order for 1,000 or more new planes.
Consolidation Among the Big Five?
"Looking ahead, with credit tight, where will capital—affordable capital—be found unless it is from another participant in the same industry?" Bill Swelbar, a research engineer with MIT's International Center for Air Transportation and a Hawaiian Airlines (HA) director, wrote recently on his blog. "If companies are struggling to realize any return on invested capital today, then what happens as interest rates continue to increase in lockstep with capital scarcity?"
As Swelbar suggests, the logical answer would be consolidation among the five big carriers. A new round of bankruptcies might even see one or more of a large airline's best bits sold off to a rival, or outright liquidations—steps that were largely avoided during the reorganizations that followed the 2001 terrorist attacks. Even after the capacity cutbacks spurred by crude oil's spike in the summer of 2008, many observers say far more—25% to 35% of the current capacity—must be removed before any meaningful profit-margin improvements will be realized.
"There are too many airlines," says Vicki Bryan, a senior bond analyst with Gimme Credit in New York. "Even last year when they were all just getting killed, slaughtered, massacred on fuel … the net reduction in capacity was just not significant."
Ownership Issues Coming to a Head
But airline consolidation remains a minefield that encroaches on union and political interests. Ditto for another potential source of capital, healthier European and Asian carriers. U.S. law restricts foreign airline ownership in U.S. carriers to a minority stake, but the International Air Transport Assn. and big European airlines have made that issue a central part of the debate over further liberalization in U.S.-European air links, with the matter coming to a head in 2010 when a second phase of the "Open Skies" treaty is set to be negotiated.
"From California to the eastern banks of Europe, this should be one market, and we should treat it as one market," Lufthansa (LHAG.DE) CEO Wolfgang Mayrhuber said Apr. 29 in a speech to the U.S. Chamber of Commerce in Washington. Lufthansa has been on the forefront of consolidation in Europe, taking controlling ownership since 2005 in various carriers: SWISS, Austrian, Belgian, and bmi, and a 19% stake in JetBlue (JBLU).
The long argument against foreign control of U.S. carriers, dating from the 1940s, has been based on national security and the government's ability to gain access to the civilian fleet in emergencies. Others worry that European or Asian operators would slash jobs and decline to serve small, less profitable U.S. cities. But nationalistic arguments may hold diminishing sway at a time when an Italian industrial group, Fiat (FIA.MI), is negotiating to acquire one of Detroit's iconic Big Three automakers, and the largest U.S. bank—Citigroup (C)—has sold a nearly 9% stake to investors in Abu Dhabi and Saudi Arabia.
Going Private Not Likely
One other option that might apply in other industries—going private—is unlikely to come to airlines. Jesup & Lamont analyst Helane Becker raised the question with United's management during a recent earnings call: With their public equity virtually worthless, why don't airlines seek funds from public debt? But to go private, airline executives would have to borrow heavily to buy their shares—and even if they did so, they'd be spending those funds on a severely distressed asset.
That's not a scenario lenders would care to see. As for an outside takeover, private equity firms have lost the financial firepower they deployed in 2006 and 2007 as the worldwide credit markets seized. And even if they had escaped the market collapse unscathed, an airline would be among the least favorable places to invest. Moreover, the legacy carriers already have substantial leverage on the books, leaving a takeover artist no space to add debt. "It becomes an opportunity cost, too," says Ben Baldanza, chief executive of privately held Spirit Airlines. "If you got a billion dollars are you going to go buy an airline?"
For cash-strapped airlines, the looming crisis could produce relief in many forms: a new European owner, a government-overseen industry consolidation that forces travelers to pay more, or the sort of terms that may make a large investment fund scramble for its checkbook. As recent history demonstrates, old problems in this environment have a way of attracting new solutions.
Bachman is deputy news director for BusinessWeek.com.
Friday, April 17, 2009
Will Southwest Lose Some of the LUV?
By WSJ Staff
Journal reporter Mike Esterl writes:Those famously cheerful smiles aboard Southwest Airlines could become a little more strained in the coming months.
The giant discount carrier has long had a feel-good vibe on board and at the check-in counter, partly because the company has never had layoffs in its 38-year history. Or any bankruptcy filings, which have caused other airlines to slash employee wages and benefits.
Southwest struck pay-hike deals with unions in recent weeks with a minimum of fuss. Contrast that with American Airlines, currently mired in protracted and poisoned negotiations with most of its workers.
But Southwest management is finding it tougher to be generous now that it has posted three straight quarterly net losses. On Thursday the airline said it plans to reduce staffing and will offer voluntary buy-outs, available to almost all of its 35,500 employees. It’s the third such offer in the past five years; a bit more than 1,600 took buyouts in 2004 and 2007.
CEO Gary Kelly, known for dressing up in funny outfits to keep spirits up at Southwest’s Love Field headquarters, says management hasn’t set a firm number for workers it must shed. Offer terms have not been made public and will reach employees in early May. But it’s quite possible a lot of them won’t be willing to walk in the midst of a prolonged recession.
That could force some tough decisions. Southwest management has long held that treating employees well means they’ll treat customers well and business will do well as a result, making shareholders happy.
Mr. Kelly says layoffs remain a last resort, but he also acknowledged in a conference call Thursday that all options are on the table during a dramatic downturn in travel.
Mr. Kelly said he could envision a scenario of forced layoffs if the company has to cut its fleet size by around 10%. Southwest isn’t there yet. But it has put fleet expansion plans on indefinite hold. That’s in contrast to previous industry downturns, when Southwest used the opportunity to aggressively gain market share. He also said if conditions continue to deteriorate, he could at some point ask workers for pay concessions.
Southwest’s overall cost structure remains low, thanks in part to the simplicity of its business model. But its labor costs — adjusted for capacity — were second only to American among 13 big carriers last September, according to the federal Bureau of Transportation. In the first quarter of this year, its workforce grew 2.1% and its labor costs rose 4.5% over the same period in 2008, even as capacity shrank 4.1% and revenue fell 6.8%.
Those kinds of numbers don’t usually put smiles on the face of shareholders or employees.
By WSJ Staff
Journal reporter Mike Esterl writes:Those famously cheerful smiles aboard Southwest Airlines could become a little more strained in the coming months.
The giant discount carrier has long had a feel-good vibe on board and at the check-in counter, partly because the company has never had layoffs in its 38-year history. Or any bankruptcy filings, which have caused other airlines to slash employee wages and benefits.
Southwest struck pay-hike deals with unions in recent weeks with a minimum of fuss. Contrast that with American Airlines, currently mired in protracted and poisoned negotiations with most of its workers.
But Southwest management is finding it tougher to be generous now that it has posted three straight quarterly net losses. On Thursday the airline said it plans to reduce staffing and will offer voluntary buy-outs, available to almost all of its 35,500 employees. It’s the third such offer in the past five years; a bit more than 1,600 took buyouts in 2004 and 2007.
CEO Gary Kelly, known for dressing up in funny outfits to keep spirits up at Southwest’s Love Field headquarters, says management hasn’t set a firm number for workers it must shed. Offer terms have not been made public and will reach employees in early May. But it’s quite possible a lot of them won’t be willing to walk in the midst of a prolonged recession.
That could force some tough decisions. Southwest management has long held that treating employees well means they’ll treat customers well and business will do well as a result, making shareholders happy.
Mr. Kelly says layoffs remain a last resort, but he also acknowledged in a conference call Thursday that all options are on the table during a dramatic downturn in travel.
Mr. Kelly said he could envision a scenario of forced layoffs if the company has to cut its fleet size by around 10%. Southwest isn’t there yet. But it has put fleet expansion plans on indefinite hold. That’s in contrast to previous industry downturns, when Southwest used the opportunity to aggressively gain market share. He also said if conditions continue to deteriorate, he could at some point ask workers for pay concessions.
Southwest’s overall cost structure remains low, thanks in part to the simplicity of its business model. But its labor costs — adjusted for capacity — were second only to American among 13 big carriers last September, according to the federal Bureau of Transportation. In the first quarter of this year, its workforce grew 2.1% and its labor costs rose 4.5% over the same period in 2008, even as capacity shrank 4.1% and revenue fell 6.8%.
Those kinds of numbers don’t usually put smiles on the face of shareholders or employees.
Monday, April 13, 2009
American Invests in Its Future With First Deliveries of New Boeing 737-800s
Despite Challenges, American Continues to Invest for the Long-Term With Fuel- Efficient Aircraft
Monday April 13, 2009, 12:30 pm EDT
CHICAGO and TULSA, Okla., April 13 /PRNewswire-FirstCall/ -- American Airlines today took an important step toward a significant investment in its long-term future by welcoming two Boeing 737-800 aircraft into its fleet on the eve of their maiden passenger flights.
As American begins the process of replacing its MD-80 fleet, employees, customers and public officials commemorated the arrival of its first new 737- 800s since December 2001 with ceremonies at company facilities in Chicago and Tulsa. The new airplanes, which go into service April 14, are the first of 76 737-800s that will arrive through the first quarter of 2011.
"Even as we battle many significant challenges, we must remain focused on our long-term future, which is what these new 737s represent," said Gerard Arpey, Chairman and CEO of AMR Corp., the parent company of American Airlines and American Eagle. "While our MD-80s remain an important part of our fleet and continue to serve our company and customers well, our new 737s are a vital investment that will benefit our customers, employees, shareholders and the communities we serve. They will help keep our product competitive while offering cost, environmental and operational benefits.
"With today's economic realities causing many companies, including American, to cut back, we must continue to find ways to control costs and boost revenues. While it is a big decision to spend money on new airplanes, especially in tough times, not doing so could be more expensive in the long run."
Arpey noted that the two locations chosen for today's ceremonial events also hold a special significance.
"Chicago, which is one of our vital network hubs, is where these two new airplanes -- and many other new 737s -- will be based," Arpey said. "Tulsa is one of our important maintenance bases and employment centers, and, unlike other airlines that outsource maintenance work and jobs, it is where our own employees will maintain and service these new airplanes for many years to come. This delivery represents the very essence of Made in America, Maintained by American."
AMR employs 7,000 people in Tulsa and 10,000 in Chicago, contributing $14.6 billion to the local economies of the two metropolitan areas.
In spite of an increasingly challenging credit market, Arpey noted that American has been fortunate to be able to secure financing commitments to cover the majority of its expected 737 deliveries. "With the financing commitments we have in place, we now have the ability to finance our expected 737 deliveries well into the fourth quarter of 2010, and we continue to pursue a number of additional financing opportunities," Arpey said.
The new airplanes, which will carry 160 passengers, offer many cost, environmental and customer benefits. They include numerous upgrades and enhancements from previous airplanes and a configuration aimed at improving the passenger experience and operational efficiency.
"Boeing is pleased to be a part of this new chapter in American Airlines history and we look forward to seeing these state-of-the-art airplanes in the skies," said Kevin Schemm, Vice President, North America Sales, Boeing Commercial Airplanes. "We're proud of the relationship we have with American Airlines, and we're excited about the superior product American's passengers will soon enjoy."
New First Class and coach seats will provide improved living space and comfort. In addition, new "big bins" for overhead storage will significantly increase passenger cabin luggage storage capacity by allowing roll-aboards to be loaded wheels first, increasing standard roll-aboards storage capacity by almost double.
Inflight entertainment will include 20 drop-down LCD monitors mounted in passenger service units under overhead storage bins. The new planes have 110V AC power available to all passengers -- a first in American Airlines fleet history and a customer convenience that ends the need for power adapters. Travelers can now plug in laptops and other portable electronic equipment just as they would at the home or office.
There is one power port per seat in First Class and two ports per three seats in coach class. Over time, American plans to equip these aircraft with AirCell's Gogo® Inflight Internet service, which will allow passengers to surf the Web, check e-mail, and send instant messages conveniently from the air.
The 737-800s will burn 35 percent less fuel than an MD-80 on a seat-mile basis. They will also be outfitted with Blended Winglets(TM), similar to those installed on American's current fleet. These wing tip extensions provide significant operating, fuel efficiency and environmental benefits, such as reduced noise on takeoff and approach and lower emissions through lower cruise thrust.
The new deliveries will be added to American's current fleet of 77 737- 800s and are intended to eventually replace American's fleet of approximately 270 MD-80s.
Despite Challenges, American Continues to Invest for the Long-Term With Fuel- Efficient Aircraft
Monday April 13, 2009, 12:30 pm EDT
CHICAGO and TULSA, Okla., April 13 /PRNewswire-FirstCall/ -- American Airlines today took an important step toward a significant investment in its long-term future by welcoming two Boeing 737-800 aircraft into its fleet on the eve of their maiden passenger flights.
As American begins the process of replacing its MD-80 fleet, employees, customers and public officials commemorated the arrival of its first new 737- 800s since December 2001 with ceremonies at company facilities in Chicago and Tulsa. The new airplanes, which go into service April 14, are the first of 76 737-800s that will arrive through the first quarter of 2011.
"Even as we battle many significant challenges, we must remain focused on our long-term future, which is what these new 737s represent," said Gerard Arpey, Chairman and CEO of AMR Corp., the parent company of American Airlines and American Eagle. "While our MD-80s remain an important part of our fleet and continue to serve our company and customers well, our new 737s are a vital investment that will benefit our customers, employees, shareholders and the communities we serve. They will help keep our product competitive while offering cost, environmental and operational benefits.
"With today's economic realities causing many companies, including American, to cut back, we must continue to find ways to control costs and boost revenues. While it is a big decision to spend money on new airplanes, especially in tough times, not doing so could be more expensive in the long run."
Arpey noted that the two locations chosen for today's ceremonial events also hold a special significance.
"Chicago, which is one of our vital network hubs, is where these two new airplanes -- and many other new 737s -- will be based," Arpey said. "Tulsa is one of our important maintenance bases and employment centers, and, unlike other airlines that outsource maintenance work and jobs, it is where our own employees will maintain and service these new airplanes for many years to come. This delivery represents the very essence of Made in America, Maintained by American."
AMR employs 7,000 people in Tulsa and 10,000 in Chicago, contributing $14.6 billion to the local economies of the two metropolitan areas.
In spite of an increasingly challenging credit market, Arpey noted that American has been fortunate to be able to secure financing commitments to cover the majority of its expected 737 deliveries. "With the financing commitments we have in place, we now have the ability to finance our expected 737 deliveries well into the fourth quarter of 2010, and we continue to pursue a number of additional financing opportunities," Arpey said.
The new airplanes, which will carry 160 passengers, offer many cost, environmental and customer benefits. They include numerous upgrades and enhancements from previous airplanes and a configuration aimed at improving the passenger experience and operational efficiency.
"Boeing is pleased to be a part of this new chapter in American Airlines history and we look forward to seeing these state-of-the-art airplanes in the skies," said Kevin Schemm, Vice President, North America Sales, Boeing Commercial Airplanes. "We're proud of the relationship we have with American Airlines, and we're excited about the superior product American's passengers will soon enjoy."
New First Class and coach seats will provide improved living space and comfort. In addition, new "big bins" for overhead storage will significantly increase passenger cabin luggage storage capacity by allowing roll-aboards to be loaded wheels first, increasing standard roll-aboards storage capacity by almost double.
Inflight entertainment will include 20 drop-down LCD monitors mounted in passenger service units under overhead storage bins. The new planes have 110V AC power available to all passengers -- a first in American Airlines fleet history and a customer convenience that ends the need for power adapters. Travelers can now plug in laptops and other portable electronic equipment just as they would at the home or office.
There is one power port per seat in First Class and two ports per three seats in coach class. Over time, American plans to equip these aircraft with AirCell's Gogo® Inflight Internet service, which will allow passengers to surf the Web, check e-mail, and send instant messages conveniently from the air.
The 737-800s will burn 35 percent less fuel than an MD-80 on a seat-mile basis. They will also be outfitted with Blended Winglets(TM), similar to those installed on American's current fleet. These wing tip extensions provide significant operating, fuel efficiency and environmental benefits, such as reduced noise on takeoff and approach and lower emissions through lower cruise thrust.
The new deliveries will be added to American's current fleet of 77 737- 800s and are intended to eventually replace American's fleet of approximately 270 MD-80s.
Wednesday, April 08, 2009
Continental Move to Star Alliance: Will it Heighten Competition with Delta?
April 8, 2009, 10:46 AM ET
By WSJ Staff
The U.S. Transportation Department on Tuesday gave Continental Airlines preliminary approval to join a global alliance that cooperates on scheduling and revenue sharing, a sign the Obama administration may not support a congressional effort to limit such alliances, The Wall Street Journal reports.
Journal reporters Christopher Conkey and Paulo Prada write:
The administration’s decision will allow Continental to join the Star Alliance with UAL Corp.’s United Airlines, Air Canada, Deutsche Lufthansa AG and other carriers. It also grants the alliance antitrust immunity, in essence giving the carriers permission to act as a single airline on international routes. The approval was expected and is consistent with policy under previous administrations.
But the Continental action comes as Rep. James Oberstar, a Minnesota Democrat who serves as chairman of the House Transportation and Infrastructure Committee, is pushing legislation that would curtail international airline alliances.
The agreements, especially when fortified by antitrust immunity, enable airlines to act in ways that would otherwise be considered collusive. Mr. Oberstar, who couldn’t be reached to comment, says these alliances limit competition and hurt consumers.
A DOT spokesperson declined to comment on Mr. Oberstar’s proposal…
For Houston-based Continental, the switch to the Star alliance will give it a bigger and more strategic role than it currently has in SkyTeam, where many of its routes overlapped with Delta, which flies to many of the same markets in Europe and Latin America as Continental.
By aligning itself with United, whose main international routes lie across the Pacific, and Lufthansa, one of the biggest carriers in Europe,the airline is expected to enjoy a greater volume of transfer traffic and broader international reach than it does now. Continental expects to make the switch to Star later this year, after it modifies sales and reservations systems so they can communicate directly with those of its new partners.
As we noted in a previous post, it’ll be interesting to watch how Continental’s move to the Star alliance will play out in the New York market. For instance, Delta recently has touted its promotional links to the New York Yankees and Mets, while it opted not to renew its sponsorship of the Atlanta Falcons. Some said part of that decision might be an effort at Delta to try to connect with Continental fliers — who frequent the carriers major New York-area hub in Newark and have gotten used to SkyTeam — and keep them from switching to Star with Continental.
April 8, 2009, 10:46 AM ET
By WSJ Staff
The U.S. Transportation Department on Tuesday gave Continental Airlines preliminary approval to join a global alliance that cooperates on scheduling and revenue sharing, a sign the Obama administration may not support a congressional effort to limit such alliances, The Wall Street Journal reports.
Journal reporters Christopher Conkey and Paulo Prada write:
The administration’s decision will allow Continental to join the Star Alliance with UAL Corp.’s United Airlines, Air Canada, Deutsche Lufthansa AG and other carriers. It also grants the alliance antitrust immunity, in essence giving the carriers permission to act as a single airline on international routes. The approval was expected and is consistent with policy under previous administrations.
But the Continental action comes as Rep. James Oberstar, a Minnesota Democrat who serves as chairman of the House Transportation and Infrastructure Committee, is pushing legislation that would curtail international airline alliances.
The agreements, especially when fortified by antitrust immunity, enable airlines to act in ways that would otherwise be considered collusive. Mr. Oberstar, who couldn’t be reached to comment, says these alliances limit competition and hurt consumers.
A DOT spokesperson declined to comment on Mr. Oberstar’s proposal…
For Houston-based Continental, the switch to the Star alliance will give it a bigger and more strategic role than it currently has in SkyTeam, where many of its routes overlapped with Delta, which flies to many of the same markets in Europe and Latin America as Continental.
By aligning itself with United, whose main international routes lie across the Pacific, and Lufthansa, one of the biggest carriers in Europe,the airline is expected to enjoy a greater volume of transfer traffic and broader international reach than it does now. Continental expects to make the switch to Star later this year, after it modifies sales and reservations systems so they can communicate directly with those of its new partners.
As we noted in a previous post, it’ll be interesting to watch how Continental’s move to the Star alliance will play out in the New York market. For instance, Delta recently has touted its promotional links to the New York Yankees and Mets, while it opted not to renew its sponsorship of the Atlanta Falcons. Some said part of that decision might be an effort at Delta to try to connect with Continental fliers — who frequent the carriers major New York-area hub in Newark and have gotten used to SkyTeam — and keep them from switching to Star with Continental.
Tuesday, April 07, 2009
Southwest Airlines set to upset its NYC rivals
Discount carrier offers low prices for its first routes from LaGuardia
By Christopher Hinton, MarketWatch
Last update: 12:27 p.m. EDT April 7, 2009
NEW YORK (MarketWatch) -- New Yorkers who make frequent flights to Chicago and Washington, D.C., are about to find themselves paying less for airfare.
On Tuesday, Dallas-based Southwest Airlines (LUV:
LUV 6.84, -0.50, -6.8%) said it would begin eight daily flights from New York City's LaGuardia Airport to Chicago Midway and Baltimore-Washington airports, beginning June 28.
The low-cost carrier also offered historically low ticket prices on its LaGuardia routes, with one-way flights to Chicago for $89 and to Baltimore-Washington for $49. That's bound to put pricing pressure on rivals like AMR Corp.'s American Airlines and UAL Corp.'s United.
UAUA 5.53, -0.33, -5.6%) United and JetBlue Airways.
Many carriers out of New York City have offered similar fares during sales over the past three months to increase demand in a recessionary economy, but the "Southwest effect" of bringing permanently lower prices is well known across the industry, analysts said.
"They most definitely bring in a lower cost structure," said Vaughn Cordle, chief analyst with AirlinesForecast LLC.
More groundbreaking have been Southwest's walkup fares for LaGuardia, priced "substantially lower" than competitors at a range of $225 to $425, according to Rick Seaney of Farecompare.com.
"This may be in part to compensate for the legacy airlines' advantage with frequent nonstops to several popular business destinations out of New York where Southwest must connect with a one-stop," Seaney said.
Southwest announced last year that it would purchase LaGuardia time slots from bankrupt ATA.
At the time, Chief Executive Gary Kelly said he was confident his airline could maintain its high standard for on-time efficiency despite the airport's reputation as a traffic bottleneck.
Shares of Southwest were down 6% at last check to $6.94. Christopher Hinton is a reporter for MarketWatch based in New York.
Discount carrier offers low prices for its first routes from LaGuardia
By Christopher Hinton, MarketWatch
Last update: 12:27 p.m. EDT April 7, 2009
NEW YORK (MarketWatch) -- New Yorkers who make frequent flights to Chicago and Washington, D.C., are about to find themselves paying less for airfare.
On Tuesday, Dallas-based Southwest Airlines (LUV:
LUV 6.84, -0.50, -6.8%) said it would begin eight daily flights from New York City's LaGuardia Airport to Chicago Midway and Baltimore-Washington airports, beginning June 28.
The low-cost carrier also offered historically low ticket prices on its LaGuardia routes, with one-way flights to Chicago for $89 and to Baltimore-Washington for $49. That's bound to put pricing pressure on rivals like AMR Corp.'s American Airlines and UAL Corp.'s United.
UAUA 5.53, -0.33, -5.6%) United and JetBlue Airways.
Many carriers out of New York City have offered similar fares during sales over the past three months to increase demand in a recessionary economy, but the "Southwest effect" of bringing permanently lower prices is well known across the industry, analysts said.
"They most definitely bring in a lower cost structure," said Vaughn Cordle, chief analyst with AirlinesForecast LLC.
More groundbreaking have been Southwest's walkup fares for LaGuardia, priced "substantially lower" than competitors at a range of $225 to $425, according to Rick Seaney of Farecompare.com.
"This may be in part to compensate for the legacy airlines' advantage with frequent nonstops to several popular business destinations out of New York where Southwest must connect with a one-stop," Seaney said.
Southwest announced last year that it would purchase LaGuardia time slots from bankrupt ATA.
At the time, Chief Executive Gary Kelly said he was confident his airline could maintain its high standard for on-time efficiency despite the airport's reputation as a traffic bottleneck.
Shares of Southwest were down 6% at last check to $6.94. Christopher Hinton is a reporter for MarketWatch based in New York.
Tuesday, March 31, 2009
Here is information to assist the (former TWA) AA flight Attendants who were recently furloughed again.
TIME IS OF THE ESSENCE, SO DO IT NOW! DO YOUR HOMEWORK AND READ EVERYTHING. ALL YOU NEED TO KNOW IS RIGHT HERE IN THESE LINKS.
PBGC Pension Benefit Guaranty Corp (USA)
https://egov3.pbgc.gov/mypba/login.aspx?ReturnUrl=%2fmypba%2fprivate%2fcustomer%2fhome.aspx
Links to HCTC Health Care Tax Credit
http://www.irs.gov/individuals/article/0,,id=109960,00.html
IRS Partial Coverage of Cobra
http://www.irs.gov/individuals/article/0,,id=109956,00.html
TIME IS OF THE ESSENCE, SO DO IT NOW! DO YOUR HOMEWORK AND READ EVERYTHING. ALL YOU NEED TO KNOW IS RIGHT HERE IN THESE LINKS.
PBGC Pension Benefit Guaranty Corp (USA)
https://egov3.pbgc.gov/mypba/login.aspx?ReturnUrl=%2fmypba%2fprivate%2fcustomer%2fhome.aspx
Links to HCTC Health Care Tax Credit
http://www.irs.gov/individuals/article/0,,id=109960,00.html
IRS Partial Coverage of Cobra
http://www.irs.gov/individuals/article/0,,id=109956,00.html
Friday, March 20, 2009
Seniority issue could be expensive for Delta
APSeniority issue could be expensive for Delta
Friday March 20, 5:00 pm ET
Seniority issues could force Delta Air Lines to hire workers it doesn't need
ATLANTA (AP) -- Delta Air Lines may be in the costly position of hiring employees it ideally wouldn't need, spending precious cash the carrier wants to preserve in the uncertain economy.
That's because two key work groups haven't resolved seniority issues resulting from the combination of Delta and Northwest Airlines into the world's biggest airline operator.
Seniority determines schedules, vacations, work rules and the way employees bid for flights. Pilots have a merged seniority list and joint contract, but flight attendants and ground workers, such as baggage handlers and reservation agents, don't.
In April, Delta will begin flying its planes in Northwest markets and vice versa. This cross-fleeting is about using the right size aircraft on a specific route based on the demand in that market, and Delta has said one of the key benefits of its acquisition of Northwest was the flexibility to use each carrier's aircraft on the other's routes.
However, flight attendants from one carrier won't be able to work on the other's aircraft because of outstanding seniority and representation issues.
For example, a new international flight on a pre-merger Delta aircraft may require flight attendants who speak a particular language. If Delta attendants aren't available, the airline may need to hire people with that capability even if pre-merger Northwest flight attendants who spoke the language were available. And Delta wouldn't necessarily switch to a Northwest aircraft on that route because it may be inefficient to do so.
Delta currently can't estimate the cost, and experts won't speculate without wage data from the airline and the number of employees to be hired.
Passengers may not notice much right away, but eventually friction between workers could affect morale and, perhaps, hurt customer service.
Jerry Glass, a former US Airways executive who is now president of human resources and labor-management relations consulting firm F&H Solutions Group, said Delta wants to resolve seniority for business reasons, and customer service is a part of that.
If there is a lengthy battle over seniority at Delta "there may be enhancements they want to make that may take them longer and there may be workarounds they may have to do to get that completed," Glass said.
Delta has publicly urged the two groups to resolve the integration of the seniority lists soon. Unions that represent the flight attendants, baggage handlers and reservation agents who worked for Northwest before the Oct. 29 buyout have resisted.
APSeniority issue could be expensive for Delta
Friday March 20, 5:00 pm ET
Seniority issues could force Delta Air Lines to hire workers it doesn't need
ATLANTA (AP) -- Delta Air Lines may be in the costly position of hiring employees it ideally wouldn't need, spending precious cash the carrier wants to preserve in the uncertain economy.
That's because two key work groups haven't resolved seniority issues resulting from the combination of Delta and Northwest Airlines into the world's biggest airline operator.
Seniority determines schedules, vacations, work rules and the way employees bid for flights. Pilots have a merged seniority list and joint contract, but flight attendants and ground workers, such as baggage handlers and reservation agents, don't.
In April, Delta will begin flying its planes in Northwest markets and vice versa. This cross-fleeting is about using the right size aircraft on a specific route based on the demand in that market, and Delta has said one of the key benefits of its acquisition of Northwest was the flexibility to use each carrier's aircraft on the other's routes.
However, flight attendants from one carrier won't be able to work on the other's aircraft because of outstanding seniority and representation issues.
For example, a new international flight on a pre-merger Delta aircraft may require flight attendants who speak a particular language. If Delta attendants aren't available, the airline may need to hire people with that capability even if pre-merger Northwest flight attendants who spoke the language were available. And Delta wouldn't necessarily switch to a Northwest aircraft on that route because it may be inefficient to do so.
Delta currently can't estimate the cost, and experts won't speculate without wage data from the airline and the number of employees to be hired.
Passengers may not notice much right away, but eventually friction between workers could affect morale and, perhaps, hurt customer service.
Jerry Glass, a former US Airways executive who is now president of human resources and labor-management relations consulting firm F&H Solutions Group, said Delta wants to resolve seniority for business reasons, and customer service is a part of that.
If there is a lengthy battle over seniority at Delta "there may be enhancements they want to make that may take them longer and there may be workarounds they may have to do to get that completed," Glass said.
Delta has publicly urged the two groups to resolve the integration of the seniority lists soon. Unions that represent the flight attendants, baggage handlers and reservation agents who worked for Northwest before the Oct. 29 buyout have resisted.
Wednesday, March 11, 2009
Vital information for former TWA flight attendants getting furloughed for the second time at American Airlines on April 1, 2009
If you have a Verizon Wireless card and only Verizon...You can mothball (turnoff with no payment due) your Broadband card for three months by calling Verizon. The fee is $15.00 and your wireless card will be mothballed for three months.
BEFORE THE END OF THE THREE MONTHS YOU CAN CALL AGAIN, pay the $15.00 fee again and mothball your card for another three months for a total of six months AND you can convert your wireless account to a family plan...and get out of the contract, by adding an additional phone for $9.99 a month to a qualifying account. If you have a used cell they can activate that or you can but a cheapie from Verizon and activate that for a small fee.
All the info we need to process out is available on the flight service website. As much as we are all disgusted with this nonsense, take care of your stuff NOW and do NOT wait till the end of the month.AA will send you the form for deciding what coverage you want if you choose Cobra.
I am wearing my TWA wings on my uniform till the last trip.
HCTC Latest News, Overview and Background
http://www.irs.gov/individuals/article/0,,id=109960,00.html
PBGC link
https://egov3.pbgc.gov/mypba/login.aspx?ReturnUrl=%2fmypba%2fprivate%2fcustomer%2fhome.aspx
What is the HCTC and who is eligible?
The Health Coverage Tax Credit (HCTC) is an important benefit that pays 80% of a qualified health plan premium for eligible individuals. The HCTC is a unique tax credit that individuals can receive either monthly as their health plan premium becomes due or yearly as a credit on their federal tax return.
The Internal Revenue Service (IRS) administers the HCTC. The following individuals are potentially eligible for the tax credit:
1. Pension Benefit Guaranty Corporation (PBGC) pension recipients who are at least 55 years old
What is the monthly HCTC?
Most tax credits are paid out when you file your federal taxes. However, health plan premiums can be expensive and some people need help to pay them each month as they become due instead of when they file their taxes.
The monthly HCTC allows you to receive the HCTC in the form of a payment to your health plan on a monthly basis as your premium payments become due after you have paid your portions of the health insurance premiums to the HCTC Program.
What is the yearly HCTC?
The yearly HCTC is paid out when you file your federal taxes. You must complete and submit IRS Form 8885, Health Coverage Tax Credit, to claim the yearly HCTC on your federal tax return. The instructions on the form provide guidance on who may claim the HCTC and what documents you must provide with IRS Form 8885.
If you do not have all the required documents, you may not receive the HCTC as a refund or a credit against any taxes you owe. You can get IRS form 8885 on the IRS website or by calling the IRS at 1-800-TAX-FORM
If you have a Verizon Wireless card and only Verizon...You can mothball (turnoff with no payment due) your Broadband card for three months by calling Verizon. The fee is $15.00 and your wireless card will be mothballed for three months.
BEFORE THE END OF THE THREE MONTHS YOU CAN CALL AGAIN, pay the $15.00 fee again and mothball your card for another three months for a total of six months AND you can convert your wireless account to a family plan...and get out of the contract, by adding an additional phone for $9.99 a month to a qualifying account. If you have a used cell they can activate that or you can but a cheapie from Verizon and activate that for a small fee.
All the info we need to process out is available on the flight service website. As much as we are all disgusted with this nonsense, take care of your stuff NOW and do NOT wait till the end of the month.AA will send you the form for deciding what coverage you want if you choose Cobra.
The IRS adminsters the tax credit for the HCTC, not the PBGC!
IF YOU ARE OVER 55 AND COLLECTING FROM THE PBGC, THE IRS administers the tax credit covering 80% OF THE COBRA COST FOR life...NOT THE RECENT OBAMA PLAN WHICH COVERS ONLY 9 MONTHS. DO YOUR HOMEWORK. HERE ARE THE SITES FOR THE PBGC AND THE HCTC FOR THE COBRA 80% COVERAGE OF THE INSURANCE PREMIMUM. (insurance only) WE ARE ALL IN THIS TOGETHER.I am wearing my TWA wings on my uniform till the last trip.
HCTC Latest News, Overview and Background
http://www.irs.gov/individuals/article/0,,id=109960,00.html
PBGC link
https://egov3.pbgc.gov/mypba/login.aspx?ReturnUrl=%2fmypba%2fprivate%2fcustomer%2fhome.aspx
What is the HCTC and who is eligible?
The Health Coverage Tax Credit (HCTC) is an important benefit that pays 80% of a qualified health plan premium for eligible individuals. The HCTC is a unique tax credit that individuals can receive either monthly as their health plan premium becomes due or yearly as a credit on their federal tax return.
The Internal Revenue Service (IRS) administers the HCTC. The following individuals are potentially eligible for the tax credit:
1. Pension Benefit Guaranty Corporation (PBGC) pension recipients who are at least 55 years old
What is the monthly HCTC?
Most tax credits are paid out when you file your federal taxes. However, health plan premiums can be expensive and some people need help to pay them each month as they become due instead of when they file their taxes.
The monthly HCTC allows you to receive the HCTC in the form of a payment to your health plan on a monthly basis as your premium payments become due after you have paid your portions of the health insurance premiums to the HCTC Program.
What is the yearly HCTC?
The yearly HCTC is paid out when you file your federal taxes. You must complete and submit IRS Form 8885, Health Coverage Tax Credit, to claim the yearly HCTC on your federal tax return. The instructions on the form provide guidance on who may claim the HCTC and what documents you must provide with IRS Form 8885.
If you do not have all the required documents, you may not receive the HCTC as a refund or a credit against any taxes you owe. You can get IRS form 8885 on the IRS website or by calling the IRS at 1-800-TAX-FORM
Tuesday, March 10, 2009
American Airlines furloughs 323 more flight attendants April 1. 87 jobs saved, all involved are former TWA flight attendants
American Airlines Inc. plans to furlough up to 323 flight attendants April 1 as it did not get enough volunteers to take leaves, early departures or other steps to reduce their ranks.
The Association of Professional Flight Attendants informed its members Wednesday afternoon via a hotline message that it learned of the impending layoffs from Lauri Curtis, American's vice president of flight service.
Curtis had advised the union "that, despite the attempts over the last several months to accommodate the flight attendant manning overages caused by schedule reductions and reduced passenger loads, the company has been unable to sufficiently absorb the expected additional flight attendant headcount," the union said.
"It is therefore notifying the 410 most junior of our members that they are subject to furlough effective April 1, 2009," the union said.
American spokeswoman Sue Gordon said the potential furloughs are the result of less attrition than usual, not an effort by American to cut more jobs and capacity.
The airline had hoped to attract enough volunteers in January to avoid layoffs, she said. The airline had offered leaves of absence, travel privileges for people quitting and partnership flying – the sharing of one job by two flight attendants.
However, the airline hasn't been getting the number of requests for short-term leaves, retirements or resignations that it usually gets, and Gordon attributed it to the poor economy.
"The environment is changing rapidly," she said. "People are choosing to stay employed longer than we would have historically seen in terms of retirements and resignations. I think the economy is playing a factor where people are making different choices than they may have under a different economic environment."
The union also said American has agreed to give furloughed flight attendants an extra two years in which they have the right to be recalled by the airline.
American Airlines Inc. plans to furlough up to 323 flight attendants April 1 as it did not get enough volunteers to take leaves, early departures or other steps to reduce their ranks.
The Association of Professional Flight Attendants informed its members Wednesday afternoon via a hotline message that it learned of the impending layoffs from Lauri Curtis, American's vice president of flight service.
Curtis had advised the union "that, despite the attempts over the last several months to accommodate the flight attendant manning overages caused by schedule reductions and reduced passenger loads, the company has been unable to sufficiently absorb the expected additional flight attendant headcount," the union said.
"It is therefore notifying the 410 most junior of our members that they are subject to furlough effective April 1, 2009," the union said.
American spokeswoman Sue Gordon said the potential furloughs are the result of less attrition than usual, not an effort by American to cut more jobs and capacity.
The airline had hoped to attract enough volunteers in January to avoid layoffs, she said. The airline had offered leaves of absence, travel privileges for people quitting and partnership flying – the sharing of one job by two flight attendants.
However, the airline hasn't been getting the number of requests for short-term leaves, retirements or resignations that it usually gets, and Gordon attributed it to the poor economy.
"The environment is changing rapidly," she said. "People are choosing to stay employed longer than we would have historically seen in terms of retirements and resignations. I think the economy is playing a factor where people are making different choices than they may have under a different economic environment."
The union also said American has agreed to give furloughed flight attendants an extra two years in which they have the right to be recalled by the airline.
Tuesday, February 24, 2009
AP
Sullenberger: Pay cuts driving out best pilots
Tuesday February 24, 11:57 am ET
By Joan Lowy and Michael J. Sniffen, Associated Press Writers
US Airways pilot Sullenberger says pay, benefit cuts are driving out experienced pilots
WASHINGTON (AP) -- The pilot who safely ditched a jetliner in New York's Hudson River said Tuesday that pay and benefit cuts are driving experienced pilots from careers in the cockpit.
US Airways pilot Chesley "Sully" Sullenberger told the House aviation subcommittee that his pay has been cut 40 percent in recent years and his pension has been terminated and replaced with a promise "worth pennies on the dollar" from the federally created Pension Benefit Guaranty Corp. These cuts followed a wave of airline bankruptcies after the Sept. 11, 2001, terrorist attacks compounded by the current recession, he said.
"The bankruptcies were used to by some as a fishing expedition to get what they could not get in normal times," Sullenberger said of the airlines. He said the problems began with the deregulation of the industry in the 1970s.
The reduced compensation has placed "pilots and their families in an untenable financial situation," Sullenberger said. "I do not know a single, professional airline pilot who wants his or her children to follow in their footsteps."
The subcommittee of the House Transportation and Infrastructure Committee heard from the crew of Flight 1549, the air traffic controller who handled the flight and aviation experts to examine what safety lessons could be learned from the Jan. 15 accident which all 155 people aboard survived.
Sullenberger's copilot Jeffrey B. Skiles said unless federal laws are revised to improve labor-management relations "experienced crews in the cockpit will be a thing of the past." And Sullenberger added that without experienced pilots "we will see negative consequences to the flying public."
Sullenberger himself has started a consulting business to help make ends meet. Skiles added, "For the last six years, I have worked seven days a week between my two jobs just to maintain a middle class standard of living."
The air traffic controller who handled Flight 1549 said thought he was hearing a death sentence when Sullenberger radioed that he was ditching in the Hudson.
"I believed at that moment I was going to be the last person to talk to anyone on that plane alive," controller Patrick Harten testified in his first public description of his reactions to last month's miracle landing.
"People don't survive landings on the Hudson River. I thought it was his own death sentence," the 10-year veteran controller testified.
But Sullenberger safely glided the Airbus A320 into the river after it collided with birds and lost power in both engines.
Harten, who has spent his entire career at the radar facility in Westbury, N.Y., that handles air traffic within 40 miles of three major airports, struggled vainly to help get the airliner safely to a landing strip.
Making lightning-quick decisions, Harten communicated with 14 other entities in the three minutes after the bird strike as he diverted other aircraft and advised controllers elsewhere to hold aircraft and clear runways for 1549.
First, Harten tried to return the plane to LaGuardia Airport, asking the airport's tower to clear runway 13. But Sullenberger calmly reported: "We're unable."
Then Harten offered another LaGuardia runway. Again, Sullenberger reported, "Unable." He said he might be able to make Teterboro Airport in New Jersey.
But when Harten directed Sullenberger to turn onto a heading for Teterboro, the pilot responded: "We can't do it .... We're going to be in the Hudson."
"I asked him to repeat himself even though I heard him just fine," said Harten. "I simply could not wrap my mind around those words."
At that moment, Harten said he lost radio contact with flight and was certain it "had gone down."
Afterward, Harten said he told his wife, "I felt like I had been hit by a bus."
NTSB investigators have said bird remains found in both engines of the downed plane have been identified as Canada geese.
Sullenberger and Skiles said anyone who's spent much time in cockpits has encountered bird strikes but that this one was exceptionally severe in knocking out both engines. Some gulls don't even dent the airplane, Skiles said, but this "was a bigger bird than I've ever hit before."
The crew and passengers of a helicopter that crashed en route to an oil platform on Jan. 4 weren't as lucky. The National Transportation Safety Board reported Monday that investigators have found evidence birds were involved in the accident near Morgan City, La., that killed eight of nine people aboard.
Sullenberger: Pay cuts driving out best pilots
Tuesday February 24, 11:57 am ET
By Joan Lowy and Michael J. Sniffen, Associated Press Writers
US Airways pilot Sullenberger says pay, benefit cuts are driving out experienced pilots
WASHINGTON (AP) -- The pilot who safely ditched a jetliner in New York's Hudson River said Tuesday that pay and benefit cuts are driving experienced pilots from careers in the cockpit.
US Airways pilot Chesley "Sully" Sullenberger told the House aviation subcommittee that his pay has been cut 40 percent in recent years and his pension has been terminated and replaced with a promise "worth pennies on the dollar" from the federally created Pension Benefit Guaranty Corp. These cuts followed a wave of airline bankruptcies after the Sept. 11, 2001, terrorist attacks compounded by the current recession, he said.
"The bankruptcies were used to by some as a fishing expedition to get what they could not get in normal times," Sullenberger said of the airlines. He said the problems began with the deregulation of the industry in the 1970s.
The reduced compensation has placed "pilots and their families in an untenable financial situation," Sullenberger said. "I do not know a single, professional airline pilot who wants his or her children to follow in their footsteps."
The subcommittee of the House Transportation and Infrastructure Committee heard from the crew of Flight 1549, the air traffic controller who handled the flight and aviation experts to examine what safety lessons could be learned from the Jan. 15 accident which all 155 people aboard survived.
Sullenberger's copilot Jeffrey B. Skiles said unless federal laws are revised to improve labor-management relations "experienced crews in the cockpit will be a thing of the past." And Sullenberger added that without experienced pilots "we will see negative consequences to the flying public."
Sullenberger himself has started a consulting business to help make ends meet. Skiles added, "For the last six years, I have worked seven days a week between my two jobs just to maintain a middle class standard of living."
The air traffic controller who handled Flight 1549 said thought he was hearing a death sentence when Sullenberger radioed that he was ditching in the Hudson.
"I believed at that moment I was going to be the last person to talk to anyone on that plane alive," controller Patrick Harten testified in his first public description of his reactions to last month's miracle landing.
"People don't survive landings on the Hudson River. I thought it was his own death sentence," the 10-year veteran controller testified.
But Sullenberger safely glided the Airbus A320 into the river after it collided with birds and lost power in both engines.
Harten, who has spent his entire career at the radar facility in Westbury, N.Y., that handles air traffic within 40 miles of three major airports, struggled vainly to help get the airliner safely to a landing strip.
Making lightning-quick decisions, Harten communicated with 14 other entities in the three minutes after the bird strike as he diverted other aircraft and advised controllers elsewhere to hold aircraft and clear runways for 1549.
First, Harten tried to return the plane to LaGuardia Airport, asking the airport's tower to clear runway 13. But Sullenberger calmly reported: "We're unable."
Then Harten offered another LaGuardia runway. Again, Sullenberger reported, "Unable." He said he might be able to make Teterboro Airport in New Jersey.
But when Harten directed Sullenberger to turn onto a heading for Teterboro, the pilot responded: "We can't do it .... We're going to be in the Hudson."
"I asked him to repeat himself even though I heard him just fine," said Harten. "I simply could not wrap my mind around those words."
At that moment, Harten said he lost radio contact with flight and was certain it "had gone down."
Afterward, Harten said he told his wife, "I felt like I had been hit by a bus."
NTSB investigators have said bird remains found in both engines of the downed plane have been identified as Canada geese.
Sullenberger and Skiles said anyone who's spent much time in cockpits has encountered bird strikes but that this one was exceptionally severe in knocking out both engines. Some gulls don't even dent the airplane, Skiles said, but this "was a bigger bird than I've ever hit before."
The crew and passengers of a helicopter that crashed en route to an oil platform on Jan. 4 weren't as lucky. The National Transportation Safety Board reported Monday that investigators have found evidence birds were involved in the accident near Morgan City, La., that killed eight of nine people aboard.
Friday, February 20, 2009
February 20, 2009, 9:04 am
More Passengers With Issues + Longer Flights = More In-Flight Medical Problems
Posted by Matt Phillips
Medical events in the cabins of commercial carriers are increasing in frequency as more people with medical conditions travel, the British medical journal the Lancet reports.
An article by Danielle Silverman and Mark Gendreau in the journal’s current issue — the article reviews the literature on air travel and illness — says flights are associated with a number of health issues including venous thromboembolism, or blood clots in veins, cosmic-radiation exposure, jet lag, and cabin-air quality. Also, according to the article summary: “In-flight medical events are increasingly frequent because a growing number of individuals with pre-existing medical conditions travel by air.”
The BBC took a closer look at the article. Here are some of the more interesting items the venerable British news agency spotlighted: Several outbreaks of “serious infections such as influenza, measles, severe acute respiratory syndrome (Sars) and tuberculosis have been reported on commercial flights. However, risk of on-board transmission, the researchers noted, is mainly restricted to within two rows of the passenger carrying the infection.” Keep that in mind next time you find yourself sharing a seat with someone with a nonstop cough. (The BBC also quoted Dr. Ray Johnston, head of the UK’s Civil Aviation Authority’s Aviation Health Unit who said that while there has been a rise in recent years in the number of on-board medical emergencies “aviation still has an excellent safety record.”)
On a more serious note, the research clearly shows a link between air travel and venous thromboembolism (VTE), dangerous blood clots:
Some 75% of air-travel cases of VTE have been linked to lack of movement while on board - although economy passengers are no more likely to develop clots than their counterparts in business, the review found.
Risk was at its highest in flights of eight hours or more, but one study found the risk started to climb at four hours, the Lahey Clinic Medical Center team, led by Dr. Mark Gendreau, found.
The best ways to avoid clots include changing position regularly, walking through the cabin and performing calf exercises. (How much can you calf press?) Also, stay hydrated. No excuses. That means planning ahead if your carrier charges for water.
More Passengers With Issues + Longer Flights = More In-Flight Medical Problems
Posted by Matt Phillips
Medical events in the cabins of commercial carriers are increasing in frequency as more people with medical conditions travel, the British medical journal the Lancet reports.
An article by Danielle Silverman and Mark Gendreau in the journal’s current issue — the article reviews the literature on air travel and illness — says flights are associated with a number of health issues including venous thromboembolism, or blood clots in veins, cosmic-radiation exposure, jet lag, and cabin-air quality. Also, according to the article summary: “In-flight medical events are increasingly frequent because a growing number of individuals with pre-existing medical conditions travel by air.”
The BBC took a closer look at the article. Here are some of the more interesting items the venerable British news agency spotlighted: Several outbreaks of “serious infections such as influenza, measles, severe acute respiratory syndrome (Sars) and tuberculosis have been reported on commercial flights. However, risk of on-board transmission, the researchers noted, is mainly restricted to within two rows of the passenger carrying the infection.” Keep that in mind next time you find yourself sharing a seat with someone with a nonstop cough. (The BBC also quoted Dr. Ray Johnston, head of the UK’s Civil Aviation Authority’s Aviation Health Unit who said that while there has been a rise in recent years in the number of on-board medical emergencies “aviation still has an excellent safety record.”)
On a more serious note, the research clearly shows a link between air travel and venous thromboembolism (VTE), dangerous blood clots:
Some 75% of air-travel cases of VTE have been linked to lack of movement while on board - although economy passengers are no more likely to develop clots than their counterparts in business, the review found.
Risk was at its highest in flights of eight hours or more, but one study found the risk started to climb at four hours, the Lahey Clinic Medical Center team, led by Dr. Mark Gendreau, found.
The best ways to avoid clots include changing position regularly, walking through the cabin and performing calf exercises. (How much can you calf press?) Also, stay hydrated. No excuses. That means planning ahead if your carrier charges for water.
Airlines see largest employment drop in five years
The Business Review (Albany)
Full-time employment at Frontier Airlines declined 15.7 percent between December 2007 and the same month on 2008, the steepest drop of 14 large and low-cost airlines, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.
The overall full-time employment decrease of seven low-cost airlines over that period was 3.3 percent, the BTS said in its monthly “Passenger Airline Employment Data.”
For seven larger, “network” airlines, the decrease was 6.3 percent.
Southwest Airlines, the largest carrier at Albany International Airport, had 35,499 full-time quivalent employees at the end of 2008, putting it in the top of the seven low-cost carriers on the BTS list.
BTS counted two part-time employees as a single full-time worker.
Among seven “network” airlines, United saw the biggest employee reduction, 12.7 percent, between the two Decembers, BTS said, followed by Northwest Airlines (6.9 percent) and Delta Air Lines (6.2 percent). Northwest and Delta (NYSE: DAL) are combining operations. Both serve Albany International Airport.
Overall — among large, low-cost and smaller regional airlines — employment levels experienced their largest year-to-year decrease since December 2003, BTS said.
Employment levels dropped 6.7 percent in December 2008 compared to the same month in 2007, the sixth straight decline in full-time equivalent rates compared to the same month the previous year.
The Business Review (Albany)
Full-time employment at Frontier Airlines declined 15.7 percent between December 2007 and the same month on 2008, the steepest drop of 14 large and low-cost airlines, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.
The overall full-time employment decrease of seven low-cost airlines over that period was 3.3 percent, the BTS said in its monthly “Passenger Airline Employment Data.”
For seven larger, “network” airlines, the decrease was 6.3 percent.
Southwest Airlines, the largest carrier at Albany International Airport, had 35,499 full-time quivalent employees at the end of 2008, putting it in the top of the seven low-cost carriers on the BTS list.
BTS counted two part-time employees as a single full-time worker.
Among seven “network” airlines, United saw the biggest employee reduction, 12.7 percent, between the two Decembers, BTS said, followed by Northwest Airlines (6.9 percent) and Delta Air Lines (6.2 percent). Northwest and Delta (NYSE: DAL) are combining operations. Both serve Albany International Airport.
Overall — among large, low-cost and smaller regional airlines — employment levels experienced their largest year-to-year decrease since December 2003, BTS said.
Employment levels dropped 6.7 percent in December 2008 compared to the same month in 2007, the sixth straight decline in full-time equivalent rates compared to the same month the previous year.
Thursday, February 19, 2009
February 19, 2009, 10:22 am
Southwest Takes Aim at Boston Logan
Posted by Matt Phillips
With its announcement last night that it will start service to Boston’s Logan International Airport, it seems like Southwest is continuing to shift its focus from secondary airports into the heart the country’s major hubs.
Southwest says it intends to start service to Logan International this fall. The carrier has not released specific details of new service, saying only that it will start with a “conservative number of flights that will complement its 64 airport network.”
Southwest’s plans for Boston are only its latest foray into primary airports in major markets. In November, Southwest announced plans to begin service to and from New York’s LaGuardia airport, bidding $7.5 million to purchase defunct carrier ATA Airlines’ takeoff and landing spots at LGA. Southwest also plans to add service at Minneapolis this year, as well as Canada and Mexico through partnerships with other airlines.
Such moves reinforce the sense that CEO Gary Kelly is running a very different airline from the one fashioned by Southwest’s co-founder, Herb Kelleher.
Kelly hasn’t been afraid to tear up the old Southwest playbook by attacking competitors’ fortress hubs, such as Philadelphia, Denver and Minneapolis, something Kelleher generally avoided. He also has explored code-sharing to a greater extent.
“This is another step back in a long line of moves that changes Southwest’s historical business model,” wrote aviation consultant Scott Hamilton, of Leeham Co., in an e-mail to the Terminal. “Southwest used to avoid big city, congested airports and/or hubs of other airlines by focusing on secondary airports. It’s run out of secondary airport and now has no choice but to go into the big-city airports. With rising labor costs—Southwest now has one of the highest labor costs-to-expenses in the industry—Southwest has to go where the passengers are chasing revenue.”
Southwest Takes Aim at Boston Logan
Posted by Matt Phillips
With its announcement last night that it will start service to Boston’s Logan International Airport, it seems like Southwest is continuing to shift its focus from secondary airports into the heart the country’s major hubs.
Southwest says it intends to start service to Logan International this fall. The carrier has not released specific details of new service, saying only that it will start with a “conservative number of flights that will complement its 64 airport network.”
Southwest’s plans for Boston are only its latest foray into primary airports in major markets. In November, Southwest announced plans to begin service to and from New York’s LaGuardia airport, bidding $7.5 million to purchase defunct carrier ATA Airlines’ takeoff and landing spots at LGA. Southwest also plans to add service at Minneapolis this year, as well as Canada and Mexico through partnerships with other airlines.
Such moves reinforce the sense that CEO Gary Kelly is running a very different airline from the one fashioned by Southwest’s co-founder, Herb Kelleher.
Kelly hasn’t been afraid to tear up the old Southwest playbook by attacking competitors’ fortress hubs, such as Philadelphia, Denver and Minneapolis, something Kelleher generally avoided. He also has explored code-sharing to a greater extent.
“This is another step back in a long line of moves that changes Southwest’s historical business model,” wrote aviation consultant Scott Hamilton, of Leeham Co., in an e-mail to the Terminal. “Southwest used to avoid big city, congested airports and/or hubs of other airlines by focusing on secondary airports. It’s run out of secondary airport and now has no choice but to go into the big-city airports. With rising labor costs—Southwest now has one of the highest labor costs-to-expenses in the industry—Southwest has to go where the passengers are chasing revenue.”
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