Airline Finance News - North America.For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jul 24, 2006 Higher fuel costs could endanger bankrupt carriers. Another big spike in fuel prices could threaten the survival of airlines operating under bankruptcy protection, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report by Standard & Poors. "[A] fuel price rise to $100/barrel would drive costs beyond what could be recovered in higher airfares," S&P says. "Furthermore, high oil prices could well slow the U.S. economy, eroding pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. for airlines." Jul 18, 2006 Soaring fuel prices batter airlines. Soaring fuel prices continue to hurt U.S. airlines. Jet fuel is now the industry's largest cost. "High fuel prices are racing ahead of efficiency gains and robbing us of most of our profitability," Air Transport Association President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. James May For the British body snatcher, James May, see . James Daniel May (born January 16th 1963 in Bristol, England) is a television presenter and award-winning journalist. said recently. Jul 17, 2006 US Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. ruling sets the stage for a tense standoff between the airline and its unionized workers. A representative of the mechanics union warned in May that "all three unions are prepared to walk together" if the contracts are voided void·ed adj. Heraldry Having the central area cut out or left vacant, leaving an outline or narrow border: a voided lozenge. . Tom Wychor, chairman of the carrier's Air Line Pilots Assn. unit, has said Mesaba would be "foolish" to impose wage-and-benefit cuts and would "shut down" if it did so. Leaders from the three unions reportedly were meeting Friday to determine their next step. Jul 17, 2006 Air Canada Air Canada mainline and Air Canada Jazz Jazz Air LP (Air Canada Jazz) is a Canadian regional airline based in the Halifax Regional Municipality, at the Halifax Stanfield International Airport in Enfield, Nova Scotia. flew a combined 4.4 billion RPMs in June, a 4.5% increase over the year-ago month. Capacity grew 2.4% to 5.32 billion ASMs and load factor climbed 1.7 points to 82.7%. Jul 19, 2006 Air Canada Air Canada sales, customer service and scheduling employees represented by the Canadian Auto Workers The Canadian Auto Workers (CAW; formally the National Automobile, Aerospace, Transportation and General Workers Union of Canada) is one of Canada's largest and highest profile trade unions. Union were awarded a 1% wage increase effective this month, a 1.75% raise in July 2007 and another 1.75% raise the following year by an arbitrator. The raises cover approximately 5,540 workers. Jul 19, 2006 Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. Alaska Airlines flew 1.64 billion RPMs in June, up 6.5% from the year-ago month. Capacity climbed 4.6% to 2.01 billion ASMs, lifting load factor 1.4 points to 81.5%. Jul 19, 2006 Aloha Airlines Aloha Airlines is an American airline headquartered in Honolulu, Hawaii USA. It operates extensive scheduled services within the Hawaiian Islands, and between Hawaii and the West Coast of the United States. Aloha sets goals amid competition, CEO says. After competition caused Aloha Airlines to file for bankruptcy in 2004 and nearly go under, the airline's investors and employees remain committed to the company, says Aloha CEO David Banmiller. Banmiller says the airline's focus for 2006 is on employees and customer service, and he wants Aloha to become the nation's number one on-time performance airline. Jul 21, 2006 American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the American Airlines mainline RPMs increased 3% to 36.8 billion as capacity dropped 0.9% to 44.6 billion ASMs. Second-quarter mainline load factor rose 3.1 points to 82.6%. Yield grew 7.6% to 12.81 cents, RASM RASM Revenue per Available Seat Mile RASM Reliability, Availability, Scalability and Manageability (Red Hat, Inc.) RASM Rear Admiral Submarines (UK) RASM Recorded Announcement Systems Manager was up 11.7% to 10.58 cents and CASM CASM Cost per Available Seat Mile CASM Communities and Small-scale Mining CASM Canadian Academy of Sports Medicine CASM Certificate of Advanced Study in Mathematics (Univeristy of Cambridge, UK) CASM Coherent Adaptive Subcarrier Modulation rose 8.5% to 10.85 cents. Jul 20, 2006 American Airlines American posts best result in more than five years. American Airlines parent AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp. earned $291 million in the second quarter ended June 30, widened from a profit of $58 million in the same period last year and only the carrier's second profitable quarter in the last 5.5 years. Jul 20, 2006 American Airlines American explains new booking fee policy. American Airlines says it will not charge travel agencies a fee for bookings that agents make through "competitive booking sources." The airline says those sources include G2 SwitchWorks, Farelogix, an optional Galileo/Apollo program and Worldspan "Optional Product 1." American recently announced it will charge $3.50 per segment for tickets booked through some services. Jul 18, 2006 American Airlines, Southwest American, Southwest also want break on fuel tax. American Airlines and Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. want the same breaks on fuel taxes that Chicago and Illinois have offered United Airlines. United recently agreed to keep its headquarters in Chicago. "We think the presumption is it would be unfair, and probably discriminatory, to affect the jet-fuel taxes of one carrier and not another," an American spokeswoman says. Jul 21, 2006 Continental Airlines Continental Airlines' expenses did rise 19.2% to $3.26 billion, Continental's ability to attract more passengers and implement "several fare increases" boosted turnover 22.8% to $3.51 billion, more than doubling operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to $244 million from $119 million in the year-ago quarter. It recorded $10 million in special charges, comprising a $14 million settlement charge related to lump-sum payments to retiring pilots and a $4 million reduction of an older charge related to the grounding of leased MD-80s. Jul 21, 2006 Continental Airlines Continental Airlines traffic during the quarter grew 15.2% to 23.37 billion RPMs. Capacity rose 10.9% to 28.26 billion ASMs and load factor climbed 3.1 points to 82.7%, a record for the period. Passenger RASM went up 11% to 11.42 cents and yield increased 6.9% to 13.81 cents. On mainline operations, unit costs rose 8.1% to 10.72 cents but went up just 1.3% to 10.05 cents holding fuel rate constant. CO paid $2.11 per gal. of fuel, a 26.4% increase. Jul 21, 2006 Continental Airlines Continental doubles second-quarter profit. Continental Airlines concluded its best quarter since 2001 with a net profit of $198 million, nearly double the $100 million earned in the second quarter of 2005."After five years of challenges and hard work, it's great to see a payoff for everyone's efforts. But, even with the progress made, we must continue our focus on eliminating unnecessary costs," Executive VP and CFO See Chief Financial Officer. Jeff Misner said. Jul 21, 2006 Continental Airlines Continental adds fee for some distribution channels. Continental Airlines has joined American Airlines and United Airlines in adding a $3.50 fee for travel agencies using certain distribution systems. Continental says agencies participating in the Sabre Efficient Access Solution, Galileo Content Continuity Program and Worldspan's Super Access Product will not be charged the fee. Those not using those services will be charged the fee and not be able to access full fares and inventory. Jul 20, 2006 Delta Air Lines Delta Pensions Should Not Threaten Financing. Delta Air Lines should be able to attract private investment needed to exit bankruptcy even if it preserves its expensive non-union pension plan, the airline's chief executive said on Wednesday. Jul 20, 2006 Delta Air Lines Delta Air Lines' capacity reconfiguration is evident in its June traffic results, released earlier this month. It flew 11.11 billion system RPMs in June, a 0.1% dip from the year-ago month. Overall capacity declined 3% to 13.16 billion ASMs and load factor rose 2.5 points to 84.5%. But domestic RPMs fell 10% to 7.57 billion against a 13.5% drop in capacity to 8.99 billion ASMs, lifting load factor 3.2 points to 84.1%. Meanwhile, international traffic soared 30.6% to 3.55 billion RPMs, capacity grew 31.3% to 4.17 billion ASMs and load factor slipped 0.4 point to 85.1%. Jul 17, 2006 ExpressJet Airlines ExpressJet Airlines, Inc. (NYSE: XJT) is a regional airline based in Houston, Texas, USA. Although an autonomous business entity since its divestiture from Continental Airlines, Inc. ExpressJet flew 947.8 million RPMs in June, up 17.6% from the year-ago month. ASMs increased 9.4% to 1.15 billion, lifting load factor 5.7 points to 82.4%. Jul 20, 2006 Mesaba Airlines Mesaba Airlines is an American regional airline based in Eagan, Minnesota. The airline operates under Mesaba Aviation, Inc. a wholly owned subsidiary of Northwest Airlines. All of its flights are operated under the name Northwest Airlink for Northwest Airlines. US Bankruptcy Court judge reversed an earlier ruling and authorized Mesaba Airlines to terminate labor contracts with its 1,300 union employees. The Regional's pilot, mechanic and flight attendant unions all have warned they will strike if the company voids their deals. Mesaba, which said it will continue negotiating with the unions, must give 10 days notice before terminating the contracts. The carrier, which operates as a Northwest Airlink partner, wants a 19.4% reduction in labor costs over the next six years to ensure financial viability. The court rejected its request to void the contracts in May but told Mesaba officials they could file the request again if progress was not made. The airline claimed the initial rejection was due to "limited issues" that it promised to address, and the court apparently believes those problems have been resolved. Jul 17, 2006 Northwest Airlines Northwest Airlines appeared to reach a major breakthrough toward emerging from bankruptcy earlier this week when it secured a tentative agreement on $195 million in annual cost cuts with its flight attendants. Yesterday it reached a tentative agreement on wage and benefit reductions with its flight simulator flight simulator, device providing a controlled environment in which a flight trainee can experience conditions approximating those of actual flight. A simulator generally consists of an enclosure housing a working replica of the interior of the cockpit of an technicians, the final group of unionized workers from whom it was seeking cuts. Meanwhile, hundreds of NWA NWA Northwest Airlines (ICAO code) NWA Northwest Arkansas NWA National Wrestling Alliance NWA National Weather Association NWA National Works Agency (Jamaica) NWA Network Analyzer employees spent Tuesday and Wednesday in Washington lobbying Congress to pass legislation to save their pension plans. Jul 20, 2006 Northwest Airlines Northwest Airlines filed documents with the US Bankruptcy Court Tuesday related to the refinancing of $1.1 billion in existing bank obligations at more favorable terms, offering the carrier access to $250 million in incremental liquidity. NWA asked the court to allow it to convert the funds to permanent exit financing it said will secure part of the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay needed to emerge eventually from Chapter 11 bankruptcy protection. "This proposed financing will allow Northwest to make additional progress on its goal of restructuring and recapitalizing its balance sheet by lowering its costs and improving the company's long-term liquidity," CFO Neal Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. said. Jul 20, 2006 Northwest Airlines Northwest, flight attendants agree to new tentative contract. Northwest Airlines reached a new tentative agreement on wage and benefit reductions with its flight attendants yesterday, striking an accord on $195 million in annual cuts that averts a potential work action and seemingly paves the way for the carrier's eventual emergence from Chapter 11 bankruptcy protection. Jul 18, 2006 United Airlines United Airlines flew 10.76 billion system RPMs in June, a 2.3% rise over the year-ago month. Capacity increased 2.2% to 12.18 billion ASMs and load factor inched up 0.2 point to 88.3%. Jul 20, 2006 United Airlines United Airlines said it will move its headquarters and 350 management employees to downtown Chicago from its current facility near O'Hare. It also will consolidate several suburban facilities into an Operations Center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. at its Elk Grove campus. UA is receiving $5.25 million in tax increment financing Tax Increment Financing, or TIF, is a tool which has been used for redevelopment and community improvement projects throughout the United States for more than half a century. from the city and $1.35 million from the state of Illinois. Both city and state will introduce legislation to cap the jet fuel tax for the next five years. Jul 18, 2006 United Airlines United matches American's fee for certain agency bookings: United Airlines matched a segment fee for agency bookings initiated by American Airlines. United also said it may withhold content from certain booking channels. Jul 17, 2006 US Airways US Airways Group US Airways Group Inc. NYSE: LCC is the Tempe, Arizona-based airline holding company that operates US Airways, US Airways Express and America West Airlines. It also operates additional companies that provide associated services. flew a combined 5.87 billion RPMs in June, a 5.8% drop from the year-ago month. Capacity fell 8.6% to 7 billion ASMs and load factor rose 2.5 points to 83.8%. Domestic RPMs declined 7.6% to 4.69 billion against an 11% fall in capacity to 5.6 billion ASMs. International RPMs rose 2.1% to 1.18 billion and ASMs increased 2.2% to 1.41 billion. Jul 19, 2006 |
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