Airline Finance News - North America.Nov 27, 2006 US airlines are pulling out of their financial tailspin tail·spin n. 1. The rapid descent of an aircraft in a steep, spiral spin. 2. Informal A loss of emotional control sometimes resulting in emotional collapse. but most are not paying close enough attention to customer service, especially when it comes to providing useful information on delays and cancellations, a government watchdog reported on Wednesday. Nov 23, 2006 Allegiant Air Allegiant Air is an American low fare airline, owned by Allegiant Travel Co. (NASDAQ: ALGT), headquartered in Las Vegas, Nevada, USA. The airline operates scheduled and charter flights from focus cities at Las Vegas' McCarran International Airport, Orlando Sanford Allegiant Travel Co., parent of Allegiant Air, filed a registration statement with the US Securities and Exchange Commission in anticipation of an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. of its common stock. The offer comprises 5 million shares of common stock listed on NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on , or 5.75 million if underwriters exercise overallotment options. Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. will be sole book-runner with Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. & Co. and Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . as co-managers. Allegiant did not provide a timeline for the IPO. Nov 22, 2006 Delta Air Lines Delta Air Lines bondholders have formed an informal group that appears inclined to back, or at least strongly consider, the US offer, 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. The Wall Street Journal. DL creditors Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank and Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Holdings reportedly pressed bondholders to push management to consider the US proposal. Nov 23, 2006 Delta Air Lines Delta Air Lines pilot chairman says merger appears 'misguided' as DL, US execs push rival plans. Delta Air Lines' pilots union chairman was harshly critical of US Airways' proposed $8 billion takeover, saying in a letter to the carrier's 6,000 pilots that "on the surface, [the offer] appears to lack any substantial benefit for Delta, its employees, our communities, or our customers." Nov 23, 2006 Delta Air Lines Delta Air Lines' rebuke from Air Line Pilots Assn. Delta MEC MEC Ministério da Educação (Ministry of Education) MEC Ministerio de Educación y Ciencia (Spain: Ministry for Education and Science) MEC Mountain Equipment Co-Op Chairman Lee Moak came this week amid dueling public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most campaigns by the two carriers. US management distributed a newsletter claiming its offer is "just better" than DL's plan to emerge from Chapter 11 bankruptcy as a standalone operator. It said DL's reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. , expected to be filed in 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. next month, "cannot possibly" offer value comparable to the takeover proposal. For their part, DL executives insisted the offer is inferior to their plan and are pressing creditors to back the airline's effort to remain independent. Nov 23, 2006 Delta Air Lines Delta Air Lines's pilots may offer stiff opposition to the US plan, with Moak telling fellow pilots that US Airways executives "alarmingly" may seek "to lengthen Delta's time in bankruptcy to try to accomplish their goals while providing no incremental job security to the Delta pilots." Moak promised to study the US plan carefully and keep an open mind. However, "should this merger be as misguided and as poor an idea as I currently believe it to be, then I will deploy every available resource to stop it," he warned. Nov 23, 2006 Delta Air Lines Delta Air Lines bondholders have begun organizing an informal group to support US Airways' USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $8.78 billion takeover offer for the bankrupt carrier, a source close to the matter said on Wednesday. The group is considering all options but could end up pressing Delta creditors to accept the US Airways bid, which faces some skepticism from Delta's management and larger creditors, the source said. Nov 22, 2006 Delta Air Lines Delta Air Lines employees are against a takeover of the carrier by US Airways, workers' representatives said on Tuesday. US Airways made an unsolicited USD$8 billion bid for its larger rival last week. Delta has said it will review the offer as it is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to do so, but that it remains focused on emerging from bankruptcy protection as a stand-alone carrier. The airline's pilots union, the Air Line Pilots Association, also expressed doubts about the likelihood of a successful merger. Delta has about 6,000 active pilots. Delta Air Lines employees expect the savings would have to come at their expense, Morey said, adding that synergies was "just a cold word for cost cutting." The council has come up with buttons that say: "Keep Delta My Delta!" to express their opposition and start conversations with customers, Morey said. Nov 22, 2006 Delta Air Lines Delta Air Lines, which filed for bankruptcy protection in September 2005, has cut wages and laid off workers as part of its efforts to realize USD$3 billion a year in cost cuts and revenue increases. The Atlanta-based airline expects to emerge from bankruptcy protection in the first half of 2007. Nov 22, 2006 Delta Air Lines One issue Delta Air Lines will not address is the 60-year age limit for US airline pilots. "This is an issue the FAA should deal with, not Congress," Whitehorn said. "Don't put members in that position of having to make that decision." Nov 22, 2006 Delta Air Lines Delta Air Lines cast the recalls as part of its broader plan to reemerge from Chapter 11 protection next year as a profitable carrier with a greatly expanded international network. The airline added that it expects "an additional pilot recall this year." Nov 21, 2006 Delta Air Lines Delta Air Lines CFO See Chief Financial Officer. Ed Bastian told the Financial Times that DL's reorganization plan, to be issued in mid-December, will be "strong" and give the carrier's creditors "much more confidence and certainty" than the US offer. Nov 21, 2006 Delta Air Lines Delta Air Lines management has been feverishly rejecting US Airways' proposed $8 billion takeover insisting it will file its own reorganization plan next month. "Delta continues to make significant progress in all areas of its restructuring and remains on track to emerge from Chapter 11 during the first half of 2007 as a standalone carrier," it said. Nov 21, 2006 Delta Air Lines Delta recalls workers, emphasizes plan to emerge as standalone carrier. Delta Air Lines said yesterday that it will recall 700 additional furloughed maintenance workers beginning in mid-December, bringing to more than 2,000 the number of employees the bankrupt carrier has recalled in recent months, including 200 previously announced maintenance personnel, 1,000 flight attendants and 130 pilots. Nov 21, 2006 Delta Air Lines Delta Air Lines 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. Gerald Grinstein, meanwhile, reportedly held multiple conference calls with the bankrupt carrier's creditors to argue against the takeover and for Delta's re-emergence from Chapter 11 as a standalone airline. Creditors will play a big role in determining the fate of DL, and both Grinstein and US Chairman and CEO Doug Parker likely will court them aggressively. Nov 20, 2006 Mesa Air Group Mesa Air Group (NASDAQ: MESA) is a Nevada Corporation[1] commercial aviation holding company with headquarters in Phoenix, Arizona. The company operates three regional airline subsidiaries: Mesa Airlines, Freedom Airlines, and Air Midwest, and five supporting Mesa Air Group fourth quarter in which profits plunged to $4.8 million from $15 million, Ornstein said that "higher than anticipated engine and crew training expenses" were the primary drag on the bottom line. The company spent $7.8 million more than anticipated on engine overhauls due to two early aircraft lease returns and two unscheduled removals. Nov 22, 2006 Mesa Air Group Mesa Air Group full-year revenue rose 17.7% to $1.34 billion thanks to a 13.4% increase in passenger numbers to 14.8 million and a 7.1% lift in yield to 19.5 cents. Expenses were up 22.8% to $1.24 billion and 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. fell 22% to $100.8 million from $129.3 million in the previous fiscal year. Nov 22, 2006 Mesa Air Group Mesa Air Group operating for US Airways, Delta Air Lines and United Airlines and independently as Mesa Airlines and go!, the company flew 6.84 billion RPMs in the fiscal year, 10.6% above the previous year. Capacity grew 4.9% to 9.14 billion ASMs, lifting load factor 3.8 points to 74.8%. Unit revenues rose 12.3% to 14.6 cents and operating 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 climbed 16.4% to 13.5 cents, or 4.9% to 8.5 cents excluding fuel. Mesa said the gradual ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. increase was the result of a change in fleet deployment and utilization that resulted from transitioning several aircraft from US to Delta Connection. Nov 22, 2006 Mesa Air Group Poor fourth quarter leaves mark on Mesa's full-year result. Mesa Air Group's fiscal year ended Sept. 30 with a thud as a poor fourth quarter left the company $34 million in the black but with a 40.3% earnings decline from a profit of $56.9 million in the 2004-05 financial year. Mesa Air Group fourth-quarter revenues rose 17.3% to $362.5 million against a 26.6% increase in expenses to $345.9 million. Operating income fell 53.7% to $16.6 million. Nov 22, 2006 Mesa Air Group, Go! Mesa Air Group's Chairman and CEO Jonathan Ornstein's job was to accentuate the positive about a year that featured the controversial launch of Mesa's Hawaiian regional operation go!. Nov 22, 2006 Northwest Airlines Northwest Airlines ground workers at Minneapolis-St. Paul International Airport staged a brief walkout yesterday to protest the hiring of nonunion nonunion /non·union/ (non-un´yun) failure of the ends of a fractured bone to unite. non·un·ion n. The failure of a fractured bone to heal normally. contract workers to clean aircraft, part of NWA's effort to slash costs to emerge from bankruptcy. The protest reportedly involved 250 workers and lasted less than an hour. It is believed to be isolated and merely symbolic; the IAM IAM - Interactive Algebraic Manipulation. Interactive symbolic mathematics for PDP-10. ["IAM, A System for Interactive Algebraic Manipulation", C. Christensen et al, Proc Second Symp Symb Alg Manip, ACM Mar 1971]. union representing 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 ground workers agreed to the contract cleaners as part of a concessionary deal. The airline said the protest did not disrupt operations. Nov 22, 2006 Northwest Airlines Northwest Airlines said on Wednesday that its operations were "running smoothly and normally" after a disruption that occurred when the airline shifted some work from union-represented aircraft cleaners to a third party at its hub airport in Minneapolis. The International Association of Machinists, which represents the workers, said the transition may have caused some operational delays but that there was no concerted job action by its members as had been reported by some media. An airline spokesman said the transition caused minor delays and the disruption has ended. The Wednesday before the US Thanksgiving holiday is one of the busiest travel days of the year. The transition of the cleaning duties to a third-party vendor had been agreed upon by the airline and the IAM as part of a cost-cutting measure by Northwest, which is restructuring in bankruptcy. Nov 22, 2006 US Airways US Airways reminded SEC that its management team "began at America West Airlines America West Airlines was one of the United States' ten major airlines. The airline was based in Tempe, Arizona, and is now a part of US Airways Group. At the time of its integration into US Airways, the airline maintained two hubs, one at Phoenix Sky Harbor International , which has a history as an industry maverick...Since the merger with US Airways, the airline has continued to be a pro-consumer maverick [by reducing both business and leisure fares]. New Delta would continue to be a low-cost maverick." Nov 20, 2006 US Airways US Airways said the combined carrier will use the Delta name and would have a domestic market share of 18.2% based on ASMs. "The Dept. of Justice has not challenged a merger in over 30 years where the leading firm has less than a 30% market share," the carrier said in the filing. It added that a projected $1.65 billion in synergies generated by the proposed merger "are real and can be achieved. The expected synergies should overcome any theoretical antitrust concerns about the merger." Nov 20, 2006 US Airways, Delta Air Lines US Airways has said a merger could provide annual savings of USD$1.65 billion and cut capacity by 10 percent, with labor cuts achieved through attrition and leaves. Nov 22, 2006 US Airways, Delta Air Lines US Airways, Delta Air Lines merger also could be derailed by US Dept. of Justice antitrust officials, who blocked the proposed merger of the former US Airways and United Airlines on grounds that it was anticompetitive an·ti·com·pet·i·tive adj. That discourages competition among businesses: anticompetitive foreign trade restrictions. and likely would offer consumers diminished service for higher fares. In a filing Friday with the US SEC, US Airways argued that the domestic "airline industry will remain unconcentrated" after the merger and that the rise of LCCs since 2000 ensures robust competition. Nov 20, 2006 WestJet WestJet flew 826.3 million RPMs in October, up 24% from the year-ago month. Capacity climbed 22% to 1.1 billion ASMs and load factor rose 1.4 points to 74.9%. Nov 20, 2006 World Airways, North American Airlines North American Airlines is an American airline based in New York City, USA. It operates scheduled international services from the USA to Africa and Guyana, as well as domestic and international charter services and wet lease services. Its main base is John F. World Air Holdings, parent of World Airways and North American Airlines, announced a delay in the filing of its third-quarter financial results but said it expects an operating income of $6-$8 million on revenues of $230-$235 million. It cited higher-than-anticipated MRO MRO In currencies, this is the abbreviation for the Mauritanian Ouguiya. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. expenses for the decline in operating result. Year-ago figures were unavailable. World is forecasting a full-year operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $7-$9 million on revenues of $839-$844 million. It posted 2005 revenues of $787.1 million and an operating income of $56.6 million. Nov 22, 2006 Z Editor: Aram Gesar, eMail: edit@AirGuideOnline.com For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm To Subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com Nov 13, 2006 |
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