Airline Finance News - North America.Mar 5, 2007 EU, US Agree Tentative 'Open Skies' Deal. The European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community and United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. agreed on Friday to the outlines of a new pact to open transatlantic aviation markets, smoothing over a rift on airline ownership in the hope of boosting traffic and creating jobs. The executive European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community said the provisional "open skies  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . " deal covered ownership and control rights over US airlines by EU investors and would allow the EU to restrict US investment in EU airlines. Mar 1, 2007 The global airline sector has seen a wave of consolidation attempts, such as a failed bid by 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. for Delta Air Lines and merger talks between United Airlines and Continental Airlines. Heavy international regulation, over-capacity in some regions, rising fuel prices and terrorism have all undermined earnings and driven several airlines into bankruptcy in recent years. Analysts viewed the reported scenario as unlikely because it would face close anti-trust scrutiny and restrictions on foreign ownership, while strong unions are also seen limiting successful cross-border deals. Mar 1, 2007 AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from , Midwest Midwest contends that AirTran will pull out if Milwaukee does not meet expectations and called the forecast "extremely unrealistic." Midwest VP Carol Skornicka told that "clearly this is not a profitable plan, so the promises are not likely to be kept. If they ever do start to serve these destinations with this many flights, they are not likely to remain for long." Mar 2, 2007 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 , FL Group FL Group of Iceland raised its stake in 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. to 8.63%. The company purchased a 5.98% share in December and now with the additional investment "appears" to be AMR's largest single shareholder, the Fort Worth Star Telegram reported. "We have been following the airline industry in the US and we believe AMR Corp. presents strong prospects for 2007," FL 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. Hannes Smarason said. Feb 26, 2007 Comair, Delta Air Lines Comair pilots complete vote today. Comair pilots will finish voting today on a contract agreement that includes $40 million in concessions. Comair could impose cuts on Sunday if the pilots reject the agreement. If approved, the agreement would help the airline exit bankruptcy protection. Mar 2, 2007 Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Airlines criticize steep fees, rents at Los Angeles airport Twenty-two airlines have joined a complaint criticizing steep fees and rents at Los Angeles International Airport “LAX” redirects here. For other uses, see LAX (disambiguation). “KLAX” redirects here. For other uses, see KLAX (disambiguation). Los Angeles International Airport (IATA: LAX, ICAO: KLAX, FAA LID: LAX . Rents are expected to increase sharply at the airport next month when current leases expire. Airlines want federal officials to overturn a fee increase and refund higher charges already paid. Feb 28, 2007 Midwest Airlines
Midwest Airlines is an American scheduled passenger airline based in Milwaukee, Wisconsin, operating from General Mitchell International Airport. ,AirTran Midwest Airlines said in a letter to shareholders yesterday that "AirTran's business is deteriorating" and that it wants to acquire Midwest to prevent further erosion. "AirTran leaves a trail of broken promises in markets it enters with great fanfare," said the letter signed by Midwest Chairman and CEO Tim Hoeksema. "AirTran typically promises growth and enhanced service, only to retreat when it can't keep its word." AirTran filed documents with the SEC this week detailing its business plan for the proposed merger, saying it would bring 1,100 jobs to the Milwaukee area and boost the Wisconsin economy by $1 billion. Midwest urged shareholders to continue to support its efforts to remain independent and refuse to tender shares to AirTran. Mar 1, 2007 Northwest Airlines Northwest Airlines lost $349 million in January, narrowed slightly from a $382 million deficit in January 2006. Revenues rose 0.2% to $892 million and expenses fell 4.3% to $914 million. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. decreased to $22 million from $65 million in the year-ago month. 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 took $291 million in reorganization charges in January. Mar 2, 2007 Northwest Airlines Northwest Loses 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. $349 Mln In January. Northwest Airlines lost USD$349 million in January, burdened by expenses from its ongoing restructuring. Northwest said in a court filing on Wednesday it had USD$291 million in reorganization items in January. Its operating revenues for the month were USD$892 million. Northwest, which has been in Chapter 11 bankruptcy protection since September 2005 and hopes to emerge by the second quarter, said it had USD$1.62 billion in cash and cash equivalents at the end of January. Northwest, which like other large traditional carriers has suffered from high labor and operating costs, is using bankruptcy to cut expenses by USD$2.5 billion a year. Mar 2, 2007 Northwest Airlines Northwest shareholders drop motion for voice in reorganization: A group of Northwest Airlines shareholders has dropped a request for a say in the company's reorganization. In withdrawing its motion, the group noted that the bankruptcy judge has not allowed an investigation of whether the airline intends to merge when it leaves bankruptcy protection. The group wants the judge to appoint an examiner to look into whether Northwest has any merger plans. Mar 1, 2007 Northwest Airlines Northwest takes steps to stay on schedule. The staff at Northwest Airlines' operations center works to get passengers to their destinations on schedule and has taken steps to prevent travelers from being delayed on jetliners. Operations employees track how long a plane waits before taking off, and the airline's goal is to never allow a plane to be delayed for two hours or more. Mar 1, 2007 Northwest Airlines Northwest bankruptcy judge approves purchase of Mesaba The judge overseeing Northwest Airlines' bankruptcy said Tuesday that Northwest may buy Mesaba Airlines. Under the sale agreement, Mesaba creditors would receive a $145 million claim against Northwest. The agreement still needs approval from Mesaba's bankruptcy judge. Feb 28, 2007 Northwest Airlines Perks at Northwest prompt lawsuit by pilots. Northwest Airlines' pilots union has sued the airline for offering pilots perks such gift cards and holiday bonuses. The union says it is entitled to negotiate any pilot compensation with the airline. Northwest says the lawsuit is "without merit." Feb 27, 2007 Pinnacle Airlines Pinnacle Airlines reported net income of $77.8 million for full-year 2006, widened from $25.7 million in the prior year despite a 2% drop in revenue to $824.6 million. Expenses decreased 14.4% to $697.1 million, leading to an 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. of $127.5 million, significantly above the $26.9 million in 2005 when the carrier was hit hard by the bankruptcy filing of codeshare partner Northwest Airlines. Pinnacle in January sold $335 million of its unsecured claim against NWA for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $283 million and reached an amended agreement with NWA that will give it more flexibility going forward. Feb 28, 2007 Pinnacle Airlines Pinnacle Airlines traffic lifted 4% to 4.29 billion RPMs on a 2% decrease in capacity to 5.64 billion ASMs, producing a 76% load factor, up 4 points. 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 flat at 14.6 cents while 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 lowered 13% to 12.36 cents. Fourth-quarter net income was $36.8 million, widened from $10 million in the year-ago period. Feb 28, 2007 Pinnacle Airlines Pinnacle Airlines[sup.1]s CFO See Chief Financial Officer. Peter Hunt said sale of the Northwest Airlines claim and Pinnacle's January acquisition of turboprop turboprop: see turbine. turboprop Hybrid engine that provides jet thrust and also drives a propeller. It is similar to the turbojet except that an added turbine, behind the combustion chamber, works through a shaft and speed-reducing gears to turn a operator Colgan Air gives it "a strong balance sheet and revenue diversification to match our industry-leading operating performance. . .[and] provide the prospects for long-term profitable growth." Feb 28, 2007 US Airways US Airways mulls operating more Asian flights. US Airways says it may expand to other Asian routes if it succeeds in its bid to launch flights to China. The airline would need to purchase or lease more long-range planes, and it could use those aircraft on other Asian routes. Mar 2, 2007 US Airways Pilots file lawsuit claiming US Airways merger is illegal. A union representing US Airways and America West pilots on Wednesday filed a lawsuit claiming the two airlines are being merged in an illegal manner. US Airways' decision to combine the two carriers' reservation systems prompted the lawsuit. A US Airways spokeswoman said the pilots are overreacting and noted that the airlines continue to be operated as two carriers. Mar 1, 2007 US Airways US Airways said it entered into a commitment letter with Citigroup Global Markets and Morgan Stanley Senior Funding to arrange 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 of up to $1.6 billion that would permit the airline to refinance $1.26 billion of its existing senior secured credit facility, refinance $325 million of unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. and raise incremental liquidity. The transaction should be completed by the end of the current quarter, US said. Mar 1, 2007 US Airways US Airways said Wednesday it plans to refinance up to $1.6 billion in loans and unsecured debt. The company said $1.25 billion of the loans are originally from jetmaker Airbus, the Air Transportation Stabilization Board's loan program and General Electric. US Airways said its $325 million in unsecured debt is related to America West's merger with US Airways. Mar 1, 2007 US Airways US Airways union sues over raises. The union representing US Airways mechanics and baggage handlers claims the airline owes the workers raises and has filed a lawsuit in federal court. The union said its collective bargaining agreement The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. calls for raises when a "change of control" takes place. US Airways merged with America West in 2005. The airline has said the dispute belongs 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. , which is still handling issues related to its reorganization. Feb 27, 2007 US Airways,Pittsburgh Pittsburgh welcomes US Airways flight center. US Airways has decided to build a new flight operations center in Pittsburgh just two years after shedding hundreds of jobs in the area, the Pittsburgh Post-Gazette writes. Allegheny County and the state offered the airline an incentive package worth $16.25 million. "In the end, Pittsburgh's proximity to the East Coast and the recognized quality of the local work force proved decisive, the latter being particularly flattering to local sensibilities," the paper writes. Feb 26, 2007 03/05/2007 Z Editor: Aram Gesar, eMail: edit@AirGuideOnline.com For Air Transport & Travel Business Experts contact eMail: bizintel@AirGuideOnline.com For more global news, reviews, features and analysis, please subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news To Advertise: advert@AirGuideOnline.com Copyright [c] 2007 Air Travel Media / Pyramid Media Group. All rights reserved. Feb 26, 2007 |
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