Company Watch June 2005.

China experiences pilot shortage as demand for air travel grows. A dearth of pilots could threaten the growth of China's booming aviation industry, the International Herald Tribune reported. About 11,000 pilots are employed to fly more than 800 commercial planes, according to the Civil Aviation Administration of China. The number is not sufficient to handle soaring demand for commercial airline service, experts say. Some small Chinese airlines are recruiting foreign pilots. Jun 28, 2005

Sponsor of pension bill says airline aid should not be included. The House should not add specific airline aid to a bill aimed at tightening rules for corporate pensions, the sponsor of the bill said Wednesday. However, Rep. John Boehner, R-Ohio, said he would not rule out adding specific relief later in the legislative process, Reuters reported. Meanwhile, the Pension Benefit Guaranty Corp., said Congress should not extend the amount of time airlines have to catch up on their pension contributions, Scripps Howard News Service reported. Delta Air Lines and Northwest Airlines have said they need more time to fully fund their pension programs. Jun 23, 2005

U.S. airlines employ fewer workers, DOT reports. The number of workers employed by U.S. airlines fell to 451,915 in April 2005, down 2.8% from a year earlier, according to the U.S. Department of Transportation's Bureau of Transportation Statistics. The number of workers at the seven network carriers fell 6.1% from April 2004. Jun 23, 2005

Airlines now required to reveal aircraft's origin. A new law effective Wednesday requires U.S. airlines to tell passengers where aircraft were built, Bloomberg News reports. Airlines will place the information on plastic cards in the backs of seats. Rep. John Mica, R-Fla., added the rule to a bill passed in December 2003. A Federal Aviation Administration spokesman said all the carriers are "probably already in compliance."

Jun 22, 2005

U.S. carriers boost service to India as restrictions ease. U.S. airlines are boosting service to India, USA Today reported. In April, the U.S. and India signed an agreement easing rules that limited service. Continental Airlines will launch the first direct service between the U.S. and India, while Northwest Airlines and Delta Air Lines plan connecting flights. Three Indian airlines also plan to add service. Jun 21, 2005

U.S., EU willing to resume aircraft subsidy talks. U.S. and EU officials say they are willing to return to talks over aircraft subsidies. The sides did not say when they would resume formal negotiations. Talks broke down in May, and the White House said it would take the case to the World Trade Organization. The EU also filed its own WTO case. The U.S. believes European jetmaker Airbus receives unfair government subsides to develop commercial jets. The EU counters that U.S. manufacturer Boeing receives aid in the form of defense contracts. Jun 20, 2005

Some airlines will recover from financial slump. The head of the Air Line Pilots Association predicts some large airlines will recover from their financial slump, the Minneapolis Star Tribune reported. Duane Woerth said the airlines are now concentrating on boosting revenue in addition to lowering costs. Recent fare increases are "cause for optimism," he said. Jun 20, 2005

Senator who led delegation to air show will not reveal costs: The lawmaker who led a congressional delegation to the Paris Air Show will not disclose how much the trip cost or how many members of Congress came along, The Washington Times reports. Sen. Ted Stevens, R-Alaska, does not usually comment on trips because they are confidential, a Stevens spokeswoman said. Members of both parties traveled to Paris with Stevens. Jun 20, 2005

Aviation visionaries imagine air taxis connecting small cities. Microjets with two engines could one day connect 5,400 U.S. airports with no scheduled service, The New York Times reported. Visionaries say "air taxis" could be safe and reliable. Improved technology, including satellites, would handle air traffic and provide navigation support. Jun 20, 2005

States sell themselves at Paris Air Show: Politicians from several states have visited the Paris Air Show with the hope of attracting foreign business back home, The New York Times reported. Alabama, South Carolina and Florida were among the states that set up information booths at the show. Charles Lindbergh's grandson, Erik Lindbergh, helped New Mexico's marketing effort. Jun 17, 2005

Key lawmaker opposes specific help for airline pension plans. A prominent lawmaker said he opposes legislation aimed specifically at relieving the airline industry's pension obligations, the Atlanta Journal-Constitution reported. However, Rep. John Boehner, R-Ohio, said he would cooperate with lawmakers trying to help airline workers and retirees. Some large airlines are asking Congress to allow them to stretch out pension payments to their funds. Jun 17, 2005

Europe moves quickly on new air traffic control system. Europe is working quickly to modernize its air traffic control system, The Wall Street Journal reports. Companies and governments are reaching a consensus on creating a safer network for directing planes through Europe. Meanwhile, plans for improvements to the U.S. air traffic control system are fragmented. American officials worry Europe will move to satellite-based navigation before the United States. Jun 15, 2005

Finance ministers ask for study on voluntary airline tax. EU finance ministers have asked the European Commission to study a voluntary tax on airline tickets, Reuters reported. The tax would help pay for aid to Africa. Some countries have criticized the proposed tax. The commission turned down the ministers' first request for a study last week because of opposition from 10 commissions. Jun 9, 2005

International carriers recover from financial crisis ahead of summer. Many international airlines are starting the summer travel season with significant cost savings following several years of restructuring, the Wall Street Journal reported. Some of the carriers are even able to raise fares. U.S. airlines continue to struggle, and two U.S. carriers remain in bankruptcy protection. Jun 6, 2005

Price of average 1,000-mile airfare down 20%. In five years, the price of the average 1,000-mile flight has dropped 20% to $118, according to the Department of Transportation. More people are flying to take advantage of the lower fares, The New York Times reports. Meanwhile, delays have increased. Jun 6, 2005

Jet fuel prices soar 15% in two weeks; airlines lift fares. Jet fuel prices have climbed 15% in the past two weeks, sending costs higher for U.S. airlines, the Atlanta Journal-Constitution reported. Fuel is usually an airline's second-highest cost. Carriers have lifted fares nine times this year to offset the higher costs. Some analysts expect jet fuel prices to continue climbing. Jun 6, 2005

IATA - International Air Transport Organization director general Giovanni Bisignani was in a bullish mood when he addressed the delegates to the industry gathering in Tokyo last week. He spoke of growth but at the same time was very quick to emphasize that high oil prices were destroying the profitability of the airline business. "The crisis continues," he said. "Our fuel bill this year will be US$83bn. Equal to the GNP of New Zealand. This is US$39bn more than 2003. Last year alone, the industry lost US$4.8bn. However he highlighted regional differences. North American carriers lost US$9bn. Efficiency gains cannot make up for structural problems. Labor costs remain high. And low cost competition at major hubs drove yields down. European airlines posted profits of US$1.4bn. Yields were better. And consolidation helped capacity management. Asian carriers posted US$2.6bn profit. Strong growth fueled by China and low labor costs are the competitive advantage. And India may be the next great market for the industry. Middle Eastern operators made US$100m. Strong traffic growth led to profitability. But the economics of matching capacity to demand is the challenge. In Latin America things were near break-even. The situation is changing fast. Some of the region's airlines are making money, but the majority are technically bankrupt. And misguided airport privatization makes matters worse. Finally African airlines lost over US$150m. The region has major safety problems. And governments are not investing in infrastructure". http://www.iata.org Jun 3, 2005

Budget carriers expand into Eastern Europe. Discount airlines are expanding across Europe, and giving travelers an alternative to bus and train service, the Associated Press reports. Last fiscal year, SkyEurope transported 1.2 million passengers, and EasyJet and Ryanair are adding flights in Eastern Europe. Jun 2, 2005

White House unlikely to bail airlines out of financial mess. Airlines should not count on the White House to help pull them out of their financial downturn, the Wall Street Journal's David Wessel writes. The administration believes airlines are losing money because the industry has too much capacity and excessive costs. One economist said a government rescue plan could prolong the industry's suffering. Jun 2, 2005

Alaska Airlines

Alaska Airlines opposes Southwest's possible move to Boeing Field. Alaska Airlines said it opposes a possible move by Southwest Airlines to Boeing Field, The Seattle Times and Seattle Post-Intelligencer reported. In a letter to the King County Council, Alaska Airlines said its costs would climb by $11 million a year if Southwest is allowed to leave Sea-Tac Airport. However, if Southwest moves, Alaska said it also would shift some flights to Boeing Field to remain competitive. Jun 23, 2005

Alaska Airlines

Alaska Airlines reaches tentative pact with mechanics. Alaska Airlines on Thursday reached a tentative agreement with its mechanics union, the Seattle Post-Intelligencer reported. The four-year contract, which covers about 700 workers, includes pay raises and some job protection. Jun 17, 2005

Alaska Airlines, America West

Alaska Airlines may bid for America West. Alaska Airlines may bid to acquire America West Airlines, BusinessWeek reports. The bid would not interfere with America West's proposal to merge with bankrupt US Airways. One Alaska shareholder said the plan would help Alaska compete and gain critical mass. Alaska declined to comment, and America West could not be reached for comment. Judge sides with Alaska Airlines in outsourcing dispute: A federal judge ruled that Alaska Airlines may outsource work done by the company's baggage handlers. The union representing the workers sued the airline, hoping to stop the outsourcing and claiming it violated the contract. Alaska replaced 472 union workers last month. Jun 3, 2005

Alitalia

Alitalia soldiers on with the permission of the European Commission. The Italians (and Brussels) have found a way of getting around the airline's latest problems by splitting Alitalia into two companies - AZ Fly (flight operations), and AZ Service (ground operations). The move is certain not to go down well with BA boss Rod Eddington, who is opposed to any form of support. EU transport minister, Jacques Barrot said, "On the basis of a thorough and detailed analysis the Commission has concluded that these recapitalizations do not involve any state aid. This would have been prohibited by the 'one-time, last-time' principle, which we scrupulously uphold." Alitalia, previously 62%-owned by the Italian government, was the beneficiary of a E1.43bn cash injection from Rome in June 2002 and a E400m loan last year. Following the recapitalization, the government will retain a minimum 30% of AZ Fly, which in turn will hold a 51% stake in AZ Service, until at least 2008, with the other 49% going to Fintecna, another government agency. http://www.alitalia.com Jun 10, 2005

America West

America West faces no serious rivals for US Airways. Just one person has publicly expressed interest in bidding this week for US Airways, the Pittsburgh Post-Gazette reported. Bids, which would rival a merger proposed by America West Airlines, are due this week. The lone bidder, Sallijo Freeman, is an Atlanta woman who says she represents an overseas investment group. The bankruptcy judge will evaluate all bids and decide on July 7; observers do not expect America West's bid to be seriously challenged. Jun 28, 2005

America West

America West pilots concerned about job security. America West Airlines pilots have "deep concerns" they will not be protected if their airline merges with US Airways, according to media reports. The America West pilots worry they may lose jobs to more experienced pilots at US Airways. An America West spokeswoman acknowledged the process of merging work forces "will not be without bumps." Jun 21, 2005

America West

Revenue climbs at US Airways as travelers return. Travelers have returned to US Airways since it announced plans to merge with America West Airlines, said America West Chief Executive Doug Parker. However, one analyst attributed better passenger revenue to fare sales, not to the planned merger. Jun 9, 2005

America West

America West CEO: Merger will counter high fuel costs. The combination of America West Airlines and US Airways will post a profit if oil prices remain at $50 a barrel over the next five years, said America West Chief Executive Doug Parker. The combined airline will save $100 million by bringing information technology services in-house and $200 million by restructuring routes. Jun 9, 2005

America West Airlines, US Airways

Outside investors to control merged airline. Outside investors will hold primary control over the airline created by the merger of US Airways and America West Airlines, according to media reports. The outside investors are contributing $500 million in equity to the company and will control 49% of it, according to a Securities and Exchange Commission filing. Boston investment firm Wellington Management will be the largest investor with a 14.8% stake. Jun 29, 2005

America West Airlines, US Airways

Merger faces many risks, filing says: Risks to the merger of US Airways and America West Airlines include the integration of corporate culture and high fuel prices, the carriers said in a regulatory filing. The merger still needs approval from a bankruptcy court and creditors. Jun 29, 2005

American Airlines

American likely to pass on Boeing 787, chief executive says. American Airlines will not purchase the new Boeing 787 until it returns to profitability, the Associated Press reported. Chief Executive Gerard Arpey also said American will fight efforts by discounter Southwest Airlines to have the Wright Amendment lifted. The law limits flights out of Dallas Love Field, where Southwest operates a hub. American operates a large hub at Dallas/Fort Worth International Airport. Jun 10, 2005

American Airlines, Continental Airlines

In struggle to survive, big airlines differ in approach. The nation's largest airlines have taken different approaches to survive the aftermath of the Sept. 11, 2001, terrorist attacks, the Atlanta Journal-Constitution reported. Some have quickly cut costs and become more efficient. Wall Street sees American Airlines and Continental Airlines as the strongest of the big airlines, while Delta Air Lines and Northwest Airlines may eventually file for bankruptcy, according to analysts. Meanwhile, United Airlines and US Airways are hoping to emerge from bankruptcy protection.

Jun 24, 2005

Boeing

Boeing names 3M's McNerney to chief executive post. Boeing today named W. James McNerney Jr. as its chief executive, according to media reports. McNerney is the chief executive of 3M and has been a director at Boeing since 2001. McNerney will replace Harry Stonecipher, who resigned in March. By naming him chief, the company will pass over Alan R. Mulally, the head of its commercial airline unit, and James Albaugh, the head of its military systems division. Jun 30, 2005

Boeing

Boeing still leads Airbus in aircraft orders for 2005. Jetmaker Airbus announced 279 orders at the Paris Air Show while rival Boeing announced just 148. However, orders announced at the large air show don't mean as much as the total number of orders logged by the end of 2005, BusinessWeek reported. Boeing still leads in the number of total orders this year. Boeing has commitments for 592 planes compared with 413 for Airbus. Jun 29, 2005

Boeing

Former Boeing machinists approve Midwestern Aircraft contract. Machinists with Midwestern Aircraft Systems on Saturday approved a contract that calls for a 10% pay cut, The Associated Press reported. Canada's Onex bought the commercial aircraft operations from Boeing and renamed it Midwestern Aircraft. The new contract eliminates the possibility of hundreds of layoffs. Jun 28, 2005

Chicago's O'Hare Airport

Taxiway is a roadblock for O'Hare expansion. A $250 million taxiway is interfering with the planned expansion of Chicago's O'Hare International Airport, according to the Chicago Tribune. The city says it cannot afford to pay for the taxiway, but the federal government says it must be built for the new runways to open. Officials hope the $6.6 billion expansion plan cuts delays and boosts the airport's capacity. Jun 22, 2005

Dallas/Fort Worth International Airport

Officials overlook fare information when touting Wright study, report says. Officials at Dallas/Fort Worth International Airport recently commissioned a study that showed the airport would suffer if the Wright Amendment is repealed. However, officials did not reveal information from the study that showed airfares would decline if the law was abolished, the Fort Worth Star-Telegram reported. The Wright law limits flights out of Dallas Love Field. Jun 6, 2005

Delta Air Lines

Delta Air Lines board may consider bankruptcy within four months. The chief executive of Delta Air Lines said the company's board could start considering a bankruptcy filing in the next four months, the Cincinnati Inquirer reported. The board's current strategy is to avoid filing for bankruptcy protection at all costs. Jun 9, 2005

Delta Air Lines

Delta revises debt agreements with two large lenders. Delta Air Lines has renegotiated parts of debt agreements with two lenders, according to media reports. The new agreements with General Electric and American Express will give the airline more time to raise cash. The agreement with General Electric reduces the amount of earnings Delta must generate.

Jun 2, 2005

Delta Air Lines, Northwest Airlines

Airline chiefs say they need relief from pension plans. Two airlines may have to file for bankruptcy protection if their obligations to their pension programs are not eased, according to media reports. The chief executives of Delta Air Lines and Northwest Airlines testified before members of the Senate Finance Committee. Some committee members were unsympathetic and blamed the companies' problems on mismanagement. United Airlines Chief Executive Glenn Tilton said federal agencies suggested United eliminate its pension plan more than a year ago to help it leave bankruptcy. Jun 8, 2005

Detroit Metro Airport

Detroit Metro Airport plans new automated parking system. A new automated parking system at Detroit Metro Airport would cut the amount of time some drivers spend waiting to pay for parking, the Detroit Free Press reported. Officials plan to start installation this month. A union claims the new system would eliminate 80 jobs. Jun 7, 2005

EADS

Airbus parent EADS set to announce management changes. EADS' French and German shareholders say they are close to naming several top executives, The Wall Street Journal reported. The appointments would end months of management uncertainty for EADS, the parent of commercial jetmaker Airbus. The company is expected to name Airbus Chief Executive Noel Forgeard and EADS defense head Thomas Enders, as co-chief executives of EADS. Jun 24, 2005

EADS

EADS, Boeing battle spills into defense market. EADS' decision to build a plant in Alabama if it wins a U.S. contract to construct aerial refueling tankers pushes its rivalry with Boeing into the defense market, The Washington Post reported. EADS will compete against Boeing for the contract. Boeing originally won the contract, but it was revoked because of a conflict-of-interest scandal. EADS is the parent of European jetmaker Airbus, which competes with Boeing for commercial jet orders. Jun 23, 2005

EADS

EADS expected to pick Mobile, Ala., for tanker assembly plant. EADS will assemble aerial-refueling planes in Mobile, Ala., if it wins the U.S. Air Force contract, according to media reports citing unnamed sources. EADS, the parent of jetmaker Airbus, picked Mobile over cities in Mississippi, Florida and South Carolina. The company is expected to announce its decision today. It will compete against Boeing for the tanker contract. Jun 22, 2005

Frankfurt Hahn Airport

Frankfurt Hahn Airport now officially has only one terminal following the completion of a 3,500 square meter, E3.9m, connecting building between the existing T1 & T2. However the opening ceremony is not scheduled until 21 July to allow for a new road network to be completed and the bus terminus relocated. In the meantime travelers should make allowance, time-wise, regarding checking in as the airport's main user Ryanair is not known for its sympathy for those who do not make the official desk closing time. It should also be noted that Frankfurt itself is 75 miles away and Luxembourg airport nearer, a mere 65 miles. Capacity of the airport is now put at 6m passengers annually. http://www.hahn-airport.de Jun 3, 2005

Hawaiian Airlines

Hawaiian Airlines exits bankruptcy, wants to expand flights. Hawaiian Airlines has left bankruptcy for the second time since 1993, the Honolulu Star-Bulletin reports. Now the airline is trying to operate on its existing fleet while it works to purchase more Boeing 767-300ER jetliners.

Jun 2, 2005

JetBlue Airways

Brotherly connection puts health plans on radar at JetBlue. Brothers David Neeleman, founder and CEO of JetBlue Airways, and Dr. Stephen Neeleman, a surgeon and founder of consumer advocate health care group HealthEquity, discuss how their careers have intertwined. Dr. Neeleman said he's been able to bend his brother's ear on the merits of programs like health savings accounts for employees, but much education is needed. Jun 24, 2005

JetBlue Airways

"JetBlue U." sets out to train crews for emergencies. JetBlue's new teaching center opened this week in Orlando, Fla., the Orlando Sun-Sentinel reported. The goal of JetBlue University is to prepare and educate flight crews to react properly in the event of an emergency. The school includes several flight simulators and a cabin trainer. Jun 10, 2005

London Heahtrow Airport

London's Heahtrow has published its draft master plan for the world's busiest international airport running to 65 pages and shown on the web. The scheme notes land earmarked land for a potential third runway and the so-called T6 and notes a further $5.7 / [pounds sterling]3bn investment over the next ten years, beyond T5. The it also shows for the first time an indication of how the airlines will be redistributed with regard to T5 but there is a long way to go in order to satisfy the requirements of each individual airline. The plans note that the Heathrow Express would no longer go to T4 an idea opposed by the prospective tenants and also illustrates an extension of the railway from T5 to Staines for which platform capacity has been provided for. No comment has been made regarding incorporating Heathrow Express into Crossrail, which is thought to be opposed by BAA. For whatever reasons the BAA has not briefed the media individually or in a group, on either T5 or the master plan. http://www.baa.com Jun 10, 2005

Manchester Airport

Manchester Airport has published some interesting figures, which show that the Heathrow route is easily the most popular with 1.4m passengers in 2004. 1.29m flew to and from the USA, whilst Tenerife proved to be the leading international destination, with a throughput of 803,000. Dublin provided 622,000 passengers, whilst the airport as a whole is now moving 22m people per year, only 14 months after it passed the 20m milestone. http://www.manchesterairport.co.uk Jun 17, 2005

Maxjet Airways

Startup with eye on international service awaits FAA certification. A company that wants to launch low-fare airline service exclusively to international destinations is waiting for approval from the Federal Aviation Administration, The Washington Post reports. Maxjet Airways, based in Virgina, said it expects FAA certification "in the near future," said cofounder Joshua B. Marks. The airline planned to start operating this spring. An FAA spokesman said the airline is still in the certification process, noting the issues the company is working on "are not at all unusual."ptcy protection this fall. Jun 28, 2005

New York airports

New York area may need fourth airport, official says. Demand for air travel to the New York region is so great, the area may need a fourth airport, Port Authority Chairman Anthony Coscia said. He made the comments after testifying before state lawmakers. The Port Authority is asking lawmakers for $20 million to upgrade the Teterboro Airport, which is near New York and is now one of the busiest small airports in the U.S. Jun 22, 2005

Northwest Airlines

Northwest creditors fear possible bankruptcy filing. Northwest Airlines lenders may not receive all the funds owed to them if the airline files for bankruptcy, the St. Paul Pioneer Press reported. Northwest is making efforts to avoid a filing by lowering labor costs. It also wants the federal government to allow it to stretch out payments to its underfunded pension plan. Jun 29, 2005

Northwest Airlines

Union officials say Northwest may seek end to contract talks. Officials with Northwest Airlines' mechanics union said the airline indicated it may ask to end contract talks again, Bloomberg News reported. Northwest recently said it was disappointed with the union's proposal for a 16% pay cut and rejected the offer. However, a company spokesman declined to say whether the airline would ask the National Mediation Board to declare an impasse in the talks. Northwest said it must lower its costs to compete with carriers who have already won concessions from their workers. Jun 28, 2005

Northwest Airlines

Northwest says mechanics' wage, labor concessions not enough. Northwest Airlines' mechanics union has offered to take $140 million in annual wage and labor concessions in 2006 and 2007, Knight Ridder Newspapers reported. The union said it will accept pay cuts of 16.1% if the airline promises to back off plans to lay off more workers. The airline said it is "disappointed" in the offer and said it needs $176 million in annual labor savings from the mechanics. Jun 27, 2005

Northwest Airlines

Northwest, mechanics to resume cost-cutting talks. Northwest Airlines will resume contract talks with its mechanics union this week, the Minneapolis Star Tribune reported. The company, which is fighting high oil prices, wants to cut wages up to 26% and eliminate 2,000 jobs. Some union members have threatened to strike. Jun 22, 2005

Northwest Airlines

Northwest struggles to avoid bankruptcy, workers worry. Northwest Airlines is struggling to cut costs as it faces soaring jet fuel prices and steep competition from discount airlines, the Detroit News reports. Some analysts say the airline may eventually file for bankruptcy. The airline has said bankruptcy is not at the top of its list of options, but has acknowledged it is a possibility if the company does not start posting profits. Meanwhile, Northwest Airlines employees are worried about pay cuts and the future of the airline, the Detroit News reports. One frequent flier said the airline's customer service has declined as it has cut costs. Jun 20, 2005

Northwest Airlines

Northwest struggles with costs, may file for bankruptcy, report says. Northwest Airlines may be close to filing for bankruptcy protection, The Wall Street Journal reported. The airline's largest shareholder has been selling his shares, and the company is preparing for a possible strike by its mechanics union. One analyst said labor unions must agree to deeper pay cuts. Chief Executive Doug Steenland said bankruptcy "is not our first option." Jun 13, 2005

Northwest Airlines

Northwest to charge employees annual fee for travel program: Starting in July, Northwest Airlines workers will pay an annual fee of $50 per person to participate in the employee travel program, which allows current and retired employees and some family members to fly for free or at a low cost. The fee will help offset some costs related to the nonrevenue travel, the company said. Jun 13, 2005

Northwest Airlines

Northwest, mechanics will return to talks. Northwest Airlines and its mechanics union will resume contract talks later this month, the Minneapolis Star Tribune reported. The National Mediation Board denied the company's request to declare an impasse in the talks. The impasse declaration would have triggered a 30-day cooling-off period. Jun 10, 2005

Northwest Airlines

Northwest mechanics say it is too early to declare impasse in talks. Mechanics at Northwest Airlines say it is premature for federal mediators to declare that contract talks have reached an impasse, the St. Paul Pioneer Press reported. The company last month asked for the National Mediation Board to declare that talks are deadlocked. Jun 9, 2005

Northwest Airlines

Northwest union leaders says mechanics may strike. The leader of Northwest Airlines' mechanics union said the rank and file is ready to strike, Knight Ridder reported. The union today will respond to the airline's request that mediators declare that contract talks have reached an impasse. A strike cannot occur until the National Mediation Board decides the sides are no longer making progress and a 30-day cooling-off period expires. The company's chief executive said the airline will keep flying even if workers strike, the Associated Press reported. Jun 9, 2005

Northwest Airlines

Northwest recruits flight attendant replacements. Northwest Airlines is recruiting flight attendants in case its current work force goes on strike, the Minneapolis Star-Tribune reported. The airline has listed the jobs on Monster.com. The airline is in contract talks with the union and hopes to lower wages and benefits. Jun 7, 2005

Northwest Airlines

Union leaders at Northwest Airlines call strike "inevitable". Some mechanics union leaders at Northwest Airlines say they are headed for an "inevitable strike," according to media reports. The company says it must cut pay to remain competitive with its rivals. It recently asked the National Mediation Board to declare an impasse in its talks with the mechanics union. Jun 2, 2005

Northwest Airlines

Northwest looks to trim expenses, uses United as model. Northwest Airlines now has the highest costs in the airline industry and is looking for ways to lower expenses, the Detroit Free Press reports. It is now seeking pay cuts from workers and is using United Airlines as a model for reducing costs. The airline recently stopped stocking copies of several magazines on its flights to save money, the Minneapolis Star-Tribune reports. Jun 1, 2005

OneWorld Alliance

OneWorld, the airline alliance with British Airways as one of its most significant partners, continues with its rather low key approach compared with its two rivals claiming that it is the members who need the publicity whilst the organization, in the main, just makes life easier for them and their passengers. The currently eight strong grouping is however active in seeking further members in certain areas including Japan (and it can only be JAL since ANA is part of STAR) and in China. An Indian carrier could also join Oneworld at some point but indications are that the Gulf-based carriers are too individualistic and the southern African market too small for additional interest. Oneworld's own consumer fares and corporate sales products and activities generated almost US$600m in the last 12 months for the carriers - Aer Lingus, American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, LAN and Qantas. Almost two-thirds of this was classed by its member airlines as "incremental" revenue - money they would not have earned had it not been for the alliance. Interlining within the group rose by 30% last year. http://www.oneworldalliance.com Jun 17, 2005

Singapore Airlines

Australia will not allow Singapore Airlines (SIA) to operates any transpacific routes from its major east coast cities according to reports emulating from Sydney. Discussions had been under way between the two countries on routes that are highly profitable and would fit in neatly with the SIA operation. However any lifting of restrictions would also open up bids from other States through which Qantas operate and whose airlines might seek equality. SIA access to the lucrative Australia - US route has been indefinitely postponed as the Government prepares for a review of the aviation industry that could remove foreign ownership restrictions on Qantas. However Canberra says it is going to review the whole of its international aviation policy which will include the foreign ownership of Qantas. http://www.qantas.com.au Jun 10, 2005

SkyTeam Alliance

SkyTeam creates associate program with four carriers. Delta Air Lines' SkyTeam Alliance has selected four airlines to join the partnership under its new "Associate Program," Air Transport World reported. The four candidates -- Air Europa, Copa Airlines, Kenya Airways and Tarom -- must meet certain criteria and gain approval from the SkyTeam board before becoming official Associate Airlines. Jun 10, 2005

SkyTeam Alliance

Skyteam is to introduce a new class of membership in order to cater for carriers whose international ambitions are more restricted. At a press conference in Amsterdam called to celebrate the fifth anniversary of the alliance Air Europa of Spain; Copa Airlines of Panama; Kenya Airways of Kenya; and Tarom of Romania were unveiled as the first airlines to join the nine airline partnership under this new arrangement. Each is sponsored by a full member. Skyteam also confirmed that Aeroflot (end 2005) and China Southern (2006) were on course to become full members. Asked about Heathrow T4 KLM's Leo M. van Wijk said that his airline was already in the terminal and that discussions were continuing with an announcement expected shortly. http://www.skyteam.com Jun 10, 2005

Southwest

Groups to ask Southwest to stop efforts to lift Wright. Six Texas chambers of commerce representing minorities support keeping the Wright Amendment in place and will ask Southwest Airlines to stop efforts to repeal the law, The Dallas Morning News reported. The groups think Southwest should instead move flights to Dallas/Fort Worth International Airport. The Wright law limits flying out of Dallas Love Field, which is where Southwest operates a large hub. Jun 22, 2005

Southwest Airlines

Southwest may propose move to Seattle's Boeing Field. Southwest Airlines may make a proposal to move its Seattle flights from Seattle-Tacoma International Airport to Boeing Field in the next few weeks, said Boeing Field airport Director Robert Burke. The airline's interest in moving to Boeing Field has created a debate about regional infrastructure and the competitive landscape, The Dallas Morning News reported. Meanwhile, Southwest is reassessing its strategy at other airports. It hinted it would leave the San Jose, Calif., airport if costs increased, so the airport scaled back a growth plan. Jun 30, 2005

Southwest Airlines

Group supports repeal of Wright: The Air Travelers Association, a small advocacy group, said it supports efforts to repeal the Wright Amendment. President David Stempler called North Texas "the last battle in the war of independence for airline passengers." A Dallas/Fort Worth International Airport official called the group "a mouthpiece for Southwest Airlines," which is working to repeal the law. Jun 29, 2005

Southwest Airlines

West Coast fliers could benefit if Wright is lifted. Southwest Airlines' effort to repeal a law that limits flying out of Dallas' Love Field could benefit travelers on the West Coast, the Los Angeles Times reports. American Airlines and Dallas/Fort Worth International Airport support the Wright Amendment and say lifting the law would hurt the North Texas economy. Jun 27, 2005

Southwest Airlines

House leaders urge Texas members to find Wright solution. House Republican leaders want Texas lawmakers to come up with a bipartisan solution to a dispute over the Wright Amendment before proposing changes to the law, the Dallas Morning News reported. The leaders consider the Wright Amendment "regional issues" for Texas members to solve. Wright limits flying out of Dallas Love Field, where Southwest Airlines operates its largest hub. Southwest wants the law repealed. Jun 16, 2005

Southwest Airlines

Southwest is Pittsburgh's No. 4 airline: Southwest Airlines is the fourth-busiest airline at Pittsburgh International Airport, only a month after launching service there, the Pittsburgh Post-Gazette reported. The airline said its Pittsburgh flights are about 80% full on average.

Jun 15, 2005

Southwest Airlines

Southwest holds off on international code-share agreement. Southwest Airlines has not made a commitment to code-share on international flights with partner ATA Airlines, but it will consider such an agreement "at the appropriate time," Chief Executive Gary Kelly said. Southwest in February began selling seats on ATA, which flies to destinations such as Honolulu, Denver and New York's LaGuardia Airport. Jun 9, 2005

Southwest Airlines

Southwest study: Lifting Wright would save consumers $700M on fares. North Texas travelers could save almost $700 million each year on airfares if lawmakers repeal a law limiting flights out of Dallas Love Field, according to a study commissioned by Southwest Airlines. The area's economy would also grow by $1.7 billion if the Wright Amendment is lifted, the study found. American Airlines and Dallas/Fort Worth International Airport oppose changing the law. Jun 9, 2005

Southwest Airlines

Southwest study to assess economic impact of lifting Wright. Southwest Airlines will release a study today explaining how lifting the Wright Amendment will affect the Dallas economy, the Fort Worth Star-Telegram reported. The Wright Amendment limits flying at Dallas Love Field. The airline, which flies out of Love Field, declined to disclose details of the study. Jun 7, 2005

Star Alliance

Star Alliance Ceo's held their biannual gathering at Kyoto last week directly after the IATA (International Air Transport Organization) gathering in Tokyo. The world's press were invited to meet them on a very informal basis at nearby Nagoya which also afforded an opportunity to see the remarkable Central Japan International Airport, only opened in February and built on a man-made island. With two confirmed new members South African Airways and Swiss International the Star Alliance network will in future cover some 846 destinations in 151 countries, with the 18-member carriers operating nearly 16,000 flights per day. Speaking to the media Graham Atkinson, the former British Caledonian sales director and now United's senior vice president, worldwide sales and alliances, based in Chicago, explained a new initiative. This, he said, was aimed at reducing the costs to the airlines of the present GDS (global distribution system) method for the travel trade to purchase airline seats which cost the carriers about $12 a ticket through Amadeus, Galileo, Sabre, Worldspan and others. Called GNEs (Global Network Electronic systems) the plan is to trim down the figure to $2 per transaction, substantially reducing the $2bn currently being spent annually by STAR members. The alliance expects to issue a request for information (RFI) later this month, spelling out what members want from a GDS and asking both alternative and traditional GDS suppliers to respond with initiatives. http://www.staralliance.com Jun 3, 2005

United Airlines

United attendants threaten walkouts over pension plan. United Airlines flight attendants said they could start walkouts Friday if the company continues with plans to shed the workers' pension plan, the Chicago Tribune reported. United said a walkout would be illegal. A possible strike threatens to disrupt the airline's operations over the busy July Fourth weekend. Jun 30, 2005

United Airlines

United protests federal grant for Frontier service. United Airlines believes its rival Frontier Airlines unfairly benefited from a federal grant that helped Frontier start service to Fresno, Calif., from Denver, the Denver Post reported. Fresno received $1 million and used it to subsidize Frontier's service. United's commuter unit United Express already flew between the two cities. The Department of Transportation will review United's complaint. Jun 29, 2005

United Airlines

Hurt by fuel, United posts May loss: United Airlines would have broken even for the month of May 2004 had soaring fuel prices remained steady, the Chicago-Sun Times reported. The airline reported a net loss of $93 million for the month. Jun 29, 2005

United Airlines

United asks for increase in financing, loan extension. In a Securities and Exchange Commission filing, United Airlines said it wants to increase its debtor-in-possession financing by $310 million to $1.3 billion. The company also wants to extend the maturity date on the loans until the end of this year. A bankruptcy court will consider the request at a hearing in July. The airline also said it is on track to exit bankru Jun 28, 2005

United Airlines

House amendment bars funding for United pension plan takeover. The House Friday passed an amendment that would prevent the Pension Benefit Guaranty Corp. from using appropriated funds to take over United Airlines' pension plan. Lawmakers attached the amendment to a funding bill. The Senate would have to pass the amendment for it to take effect. But it's unclear what the House amendment means because the Pension Benefit Guaranty Corp. does not receive appropriated funds. Jun 27, 2005

United Airlines

United boosts fares 3% to offset high oil prices. United Airlines has lifted ticket prices an average of 3% to offset the soaring price of oil. United said some specialty fares are not affected by the hike. Jun 22, 2005

United Airlines

United's pact with machinists would save $176M per year: A tentative agreement reached between United Airlines and its machinists union would save the company $176 million a year, Reuters reported. Workers will vote on the contract, which calls for pay cuts of up to 5.5%, through July 22. Jun 22, 2005

United Airlines

United Airlines has launched daily nonstop flights between Chicago and Munich. The new service is in addition to the airline's daily Washington Dulles - Munich service. It also complements the Chicago - Munich code share flight and Washington Dulles - Munich service operated by Star Alliance partner Lufthansa offering alternative departure times. A three class Boeing 767 is used for the service. From Chicago United now flies daily to the major European hubs of Amsterdam, Frankfurt, London, Munich and Paris. http://www.unitedairlines.co.uk Jun 17, 2005

United Airlines

United creditors say outsiders may be interested in company. United Airlines creditors indicated in a court filing that outside buyers are interested in taking over the airline, the Associated Press reported. United, which operates under bankruptcy protection, said it is not aware of any competing reorganization plans. The creditors also said they did not object to extending the exclusive rights of the company's current management to file a reorganization plan. Jun 14, 2005

United Airlines

Court denies motion to preserve United pension plan. A federal bankruptcy court denied a motion by United Airlines flight attendants that would have preserved their pension plan, Bloomberg News reported. The union said it will appeal the ruling. United said it hopes to work with the union to craft a replacement for the terminated plan. Jun 10, 2005

United Airlines

United could exit bankruptcy this year, observers say. United Airlines has quite a bit of work to do before it can exit bankruptcy. Still, some observers say it may be able to leave bankruptcy this year, the Chicago Sun-Times reported. The company must still negotiate leases on 70 planes and finalize a business plan, among other things. Jun 9, 2005

United Airlines

Senate Finance Committee hearing to review United Airlines pension fund. The Senate Finance Committee today will hear an analysis of the federal pension law that provided United Airlines with ways to cut the amount of money it has contributed to its pension fund, The New York Times reports. United announced last July it would not be able to make the payments necessary to satisfy its pension plan obligations. Jun 7, 2005

United Airlines

Large airlines reluctant to give up gates. Large airlines are reluctant to give up little-used airport gates, writes the Wall Street Journal's Scott McCartney. United Airlines controls gates through long-term leases in Los Angeles and Denver, but it rarely uses them. Keeping unused gates is one way for large airlines to prevent smaller carriers from growing. Jun 7, 2005

United Airlines

United plans to leave bankruptcy this year; analysts see tough road ahead. United Airlines is sticking with its goal to exit bankruptcy by this fall, according to media reports. The airline says it may post a profit in 2006. However, some analysts say the carrier is unlikely to leave bankruptcy this year and say the carrier's success depends on fuel costs. Jun 6, 2005

United Airlines

United searches for more ways to lower costs. United Airlines is looking for more ways to lower expenses as it moves closer to exiting bankruptcy protection, according to media reports. New agreements with labor unions have already put the airline on the proper course, executives say. The airline, which wants to leave bankruptcy this fall, also must resolve a dispute about aircraft leases. Jun 2, 2005

United Airlines

United, machinists union reach last-minute agreement. United Airlines on Tuesday reached a tentative agreement with its machinists union, avoiding the possibility of a strike. The company's mechanics union also approved a contract that will cut pay by 3.9%. United is attempting to emerge from bankruptcy protection. Jun 1, 2005

US Airways

Court OKs US Airways severance packages for some managers. A bankruptcy court will allow US Airways to spend $15 million on severance benefits and retention bonuses to keep non executive managers vital to its merger with America West Airlines, according to media reports. The airline, which is in bankruptcy, was losing up to 40 managers a month. Jun 17, 2005

US Airways

Judge says rivals may bid for US Airways during 30-day period. US Airways may consider bids that could rival its plan to merge with America West Airlines, a bankruptcy judge ruled Tuesday. Investors now have 30 days to submit alternative plans. If no rival bids are proposed, the two airlines will negotiate a merger pact. US Airways says it needs program to retain managers: US Airways says it must offer severance packages to employees working on its merger with America West Airlines, the Charlotte Observer reports. Up to 40 managers per month leave the airline.

Jun 1, 2005

US Airways, America West

Justice Dept. OKs US Airways-America West merger. The Justice Department Wednesday approved the merger of US Airways and America West Airlines, according to media reports. The merger, if approved, will create the nation's largest budget airline. One analyst said it is a "done deal" now that it has federal approval. US Airways also said it will raise $100 million by selling some regional jets and leasing some airport slots. Jun 24, 2005

Varig

Varig, the Brazilian flagship carrier, has filed for bankruptcy protection. The airline is owned by an employees group known as the Rubem Berta Foundation. ILFC had set last Friday as the deadline for payment on 11 aircraft which would have been seized. The airline now has 60 days to sort itself out. TAP of Portugal, which offered to take a 20% stake in the airline, could at the end of the day find itself the owner of the airline which has a daily Boeing 777 service to Sao Paulo from Heathrow. http://www.varig.com Jun 17, 2005