Airline Finance News - North America.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 5, 2006 Job security lures passenger pilots to cargo carriers. Some airline pilots are leaving their jobs for positions at cargo carriers. Although cargo carriers pay less, they offer job security and more opportunity for advancement. Jun 2, 2006 Taxpayers benefit from loan guarantee program. Taxpayers made lots of money on the government's loan guarantees to U.S. airlines, The Wall Street Journal's Scott McCartney writes. The program will end with a profit of $300 million. Airlines received only a small portion of the $10 billion in guarantees available through the program. May 30, 2006 Air Canada Air Canada has received an unprecedented apology from its smaller Canadian rival Westjet. It seems that in 2003/04 certain members of that airline's management engaged in an extensive practice of covertly accessing a password protected proprietary employee web site maintained by Air Canada to download detailed and commercially sensitive information without authorization or consent from Air Canada. This practice was undertaken with the knowledge and direction of the highest management levels of WestJet and was not halted until discovered by Air Canada. As a full settlement, WestJet has agreed to pay Air Canada's investigation and litigation costs of $5.5m and has accepted Air Canada's request that WestJet make a donation in the amount of $10m in the name of Air Canada and WestJet to children's charities across the country. http://www.aircanada.ca http://www.westjet.com Jun 4, 2006 Alaska Airlines Alaska Airlines reached tentative agreements last week with the International Assn. of Machinists and Aerospace Workers on two four-year labor contracts covering 3,700 employees. One covers 3,100 workers, including customer service and reservations agents, while the second pact covers 600 ground handlers. Terms of the deals were withheld pending ratification, which is expected to occur in voting next month. May 31, 2006 Delta Air Lines Delta narrows April loss, reports profit excluding reorganization items. Delta Air Lines said yesterday that it lost $27 million in April, a significant improvement over a net loss of $163 million in the year-ago month.Net income excluding reorganization items was $22 million compared to a $163 million deficit in April 2005. The carrier has $3.4 billion in cash, cash equivalents and short-term investments, $2.5 billion of which is unrestricted. Mainline unit costs increased just 1.6% to 10.29 cents in April, and fell 3.8% to 7.26 cents excluding fuel. Consolidated passenger RASM climbed 17.1% to 10.97 cents. Jun 2, 2006 Delta Air Lines International expansion new revenue source for Delta. Delta Air Lines hopes its expansion into international markets will help it emerge from bankruptcy protection. "The second quarter will drop some people's jaws," Delta Executive Vice President Glen Hauenstein said. "It will change they way people think [about] how this airline is digging out from a $2 billion loss last year." Jun 2, 2006 Delta Air Lines Delta pilots approve cost-cutting agreement. Pilots at Delta Air Lines approved a $280-million-a-year pay-cut agreement that will lower their pay and help the carrier emerge from bankruptcy protection. A bankruptcy judge also approved the agreement Wednesday. "It was probably the most significant negotiation transaction we'll face as part of this bankruptcy process," Delta Chief Financial Officer Edward Bastian said. "It gives us the ability to put the past behind us and make Delta a success again." Jun 1, 2006 Delta Air Lines Delta Air Lines pilots union said last week it will "vigorously oppose" US Pension Benefit Guaranty Corp.'s effort to overturn the concessions agreement it reached with management of the bankrupt airline. PBGC, the federal pension insurer that would assume much of the pension obligation abandoned by Delta, said last week in a bankruptcy court filing that the agreement between Delta and the Air Line Pilots Assn. for $280 million in annual givebacks violates US bankruptcy law and should be blocked. But ALPA said it continues to "unequivocally" recommend that Delta pilots ratify the deal in voting that will close May 31. ALPA noted that PBGC claimed "the unsecured pilot notes and bankruptcy claim ALPA negotiated with Delta are compensation for the termination of the pilots' [pension plan] and may also be considered as replacements for a terminated pension plan, and they argue that such provisions would violate [US regulations]. ALPA strongly disagrees with this position." May 29, 2006 Northwest Airlines Northwest asks court to approve pilots contract. Northwest Airlines has asked a bankruptcy court to approve a new contract agreement with its pilots. Pilots last month ratified the agreement, which will save the carrier $358 million annually. Jun 2, 2006 Northwest Airlines Northwest hedges fuel to protect against price increases: Northwest Airlines has locked in fuel prices to protect itself against a possible surge in costs. Only four passenger airlines have hedged more than 30% of the fuel they need, according to the Air Transport Association. Jun 2, 2006 Northwest Airlines Small Northwest creditors sell Northwest debt. Small businesses are selling debt owed to them by Northwest Airlines. Debt buyers purchase the debt for a small amount and make money when they eventually collect. May 31, 2006

United Airlines United may face pilot shortfall, union says. Poor weather could create delays at United Airlines' major hubs this summer. The delays could trigger a shortage of available pilots, according to United's pilots union. United said it has enough reserve pilots on staff to complete its schedule. Jun 1, 2006 United Airlines United mulls moving headquarters to San Francisco: United Airlines is considering moving its headquarters to San Francisco from Elk Grove Township, Ill. Airline executives will meet with San Francisco officials next week. A United spokeswoman said the carrier is "evaluating all its options." Jun 1, 2006 US Airways US Airways, customer service workers reach agreement. US Airways has reached a final transition agreement with the union representing customer service workers. The pact includes seniority protocols, among other things. It takes effect after America West workers transition into the US Airways contract. Jun 2, 2006 US Airways US Airways Group yesterday announced that Eastshore Aviation will sell 3.05 million shares of the group's common stock in an underwritten secondary offering. None of the proceeds of the offering, underwritten by Goldman, Sachs & Co., will go to US. Jun 2, 2006 WestJet, Air Canada WestJet agrees to pay fine, admits wrongdoing in Air Canada dispute. WestJet and Air Canada settled their contentious dispute over alleged corporate spying and unauthorized data collection by WestJet executives, with the Calgary-based LCC agreeing to pay C$15.5 million ($14 million)--C$5.5 million covering AC's legal costs in the matter and C$10 million to charity--and Chairman and CEO Clive Beddoe apologizing to his primary rival for "misconduct." May 31, 2006