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Airline Finance News - North America.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 12, 2006

Lawmakers reject increase in security fees on airline tickets. House lawmakers rejected a plan to increase the air security fee included in airline ticket prices. The White House supported the plan, which it said would have raised $3.3 billion. The current fee structure generates $1.3 billion. Jun 9, 2006

American Airlines

American Airlines flew 12.25 billion system RPMs in May, a 3.7% rise over the year-ago month. Capacity increased just 0.3% to 15.16 billion ASMs, lifting load factor 2.6 points to 80.7%. Domestic traffic rose 2.1% to 8.02 billion RPMs against a 1.9% drop in capacity to 9.66 billion ASMs, sending load factor up 3.3 points to 83%. International RPMs climbed 6.9% to 4.22 billion, ASMs rose 4.6% to 5.49 billion and load factor increased 1.6 points to 76.8%. Jun 5, 2006

Continental Airlines

Continental Airlines estimated an 8.5%-9.5% year-over-year rise in consolidated May RASM and a 7%-8% increase in mainline RASM as May system traffic increased 14.6% to 7.65 billion RPMs. Capacity rose 11.9% to 9.44 billion ASMs and load factor climbed 1.9 points to a May-record 81%. Domestic RPMs increased 7.9% to 3.63 billion as capacity grew 4.6% to 4.33 billion ASMs and load factor went up 2.7 points to 83.9%. International traffic jumped 20.9% to 3.12 billion RPMs on a 20.9% climb in capacity to 3.99 billion ASMs, leaving load factor steady at 78%. Jun 6, 2006

Delta Air Lines

Delta Air Lines flew 9.52 billion system RPMs in May, a 9.7% decline from the year-ago month. Capacity fell 10% to 12.41 billion ASMs and load factor rose 0.4 point to 76.7%. Domestic traffic plunged 17.1% to 6.6 billion RPMs on an 18.1% reduction in capacity to 8.71 billion ASMs and load factor increased 0.9 point to 75.8%. International RPMs rose 13.6% to 2.91 billion as capacity climbed 17.3% to 3.7 billion ASMs and load factor slipped 2.6 points to 78.7%. Jun 9, 2006

Delta Air Lines

Delta weighs terminating larger pension plan. Delta Air Lines will decide soon whether to terminate a pension plan covering current and retired ground workers and flight attendants. The airline has already indicated it will try to terminate the pilots' pension plan. Delta Chief Executive Gerald Grinstein this week lobbied for pension reform legislation in Washington. Jun 9, 2006

Delta Air Lines

Pension agency appeals approval of Delta pilot pact. The Pension Benefit Guaranty Corp. has appealed a bankruptcy judge's approval of a new pilot contract at Delta Air Lines. The agency has questioned if the court may approve an agreement compensating employees for losses resulting from the underfunding of their pension plan. Jun 8, 2006

Delta Air Lines

Judge denies motion for independent adviser in Delta case. A judge denied a motion to name an independent financial adviser to examine fees in Delta Air Lines' bankruptcy case because it would violate attorney-client privilege. The U.S. Trustee Program made the motion. The judge approved $41 million in fees and expenses related to services by Delta's attorneys and advisers. Jun 6, 2006

Delta Air Lines

Delta to close more reservation centers: Delta Air Lines will close two more reservation centers by Sept. 1 in a move to cut its real estate costs. The 650 affected workers may bid for jobs in other departments and locations, a spokesman said. Jun 5, 2006

Delta Air Lines

Delta will ask to terminate pension plan, CEO says. The chief executive of Delta Air Lines said the company will ask to terminate its pilots' pension plan "fairly soon." Gerald Grinstein said Delta does not plan to ask pilots for another pay cut. It will focus on becoming more efficient and improving revenue management. Jun 5, 2006

ExpressJet Airlines

ExpressJet Airlines flew 909.7 million RPMs in May, a 23.1% increase over the year-ago month. Capacity rose 11.7% to 1.12 billion ASMs and load factor jumped 7.5 points to 81.3%. Jun 5, 2006

Mesa Air Group, Go!

US Dept. of Transportation approved Mesa Air Group's use of the name go! for its Hawaii inter-island startup over the objection of mainland-based GoJet Airlines. The new carrier, which will operate from the commuter terminal at Honolulu International, is scheduled to launch service today offering one-way fares from $19. GoJet, a subsidiary of Trans States Holdings that operates a fleet of CRJ700s as a United Express carrier, argued that Mesa's new name "would cause public confusion." Mesa responded that go! would not be confused with GoJet because it is "distinctly branded" and in an "entirely different geographical market." In its decision, DOT noted that GoJet operations are "conducted and marketed using the name United Express," making confusion unlikely. It also stated that its decision "does not preclude GoJet from pursuing any issues regarding trademark infringement." Jun 9, 2006

Northwest Airlines

Northwest, attendants meet with judge today. Northwest Airlines and its flight attendants will meet with a bankruptcy court judge today. The airline will ask for permission to reduce pay and change work rules. The workers recently rejected an agreement that would lower pay. Northwest has said it will have to make cuts to its summer schedule if it can't lower operating costs. Jun 9, 2006

Northwest Airlines

In a statement, Northwest said it was "disappointed" in the vote and that it has asked the US Bankruptcy Court to rule on its Section 1113[c] motion to reject the existing labor agreement and impose new contract terms "as soon as possible." It also filed a motion with the court "asking for a preliminary injunction to prevent" a strike. PFAA workers have voted to strike if a contract is imposed. Jun 7, 2006

Northwest Airlines

Northwest Airlines flight attendants overwhelmingly rejected a tentative agreement reached in March that would have provided the bankrupt carrier with $195 million in annual work rule, benefit and salary concessions. According to the Professional Flight Attendants Assn., 85% of the 7,625 eligible workers cast votes and of those, 80% voted to reject the agreement. "The Flight Attendants understood how harsh and unfair the bankruptcy process can be to loyal employees. The company went too far," said PFAA President Guy Meek. "The flight attendants rejected this contract and continue to reject the continuing mismanagement of the airline as well as the everyday mistreatment of NWA employees." Jun 7, 2006

Northwest Airlines

Northwest attendants reject contract agreement. Northwest Airlines flight attendants rejected a contract that would have lowered their pay. The company has asked a bankruptcy judge to allow it to impose its own terms on the workers and for an injunction that would prevent the workers from going on strike. "We are taking this action to reassure our customers that they can continue to book Northwest with confidence for their future travel needs," said Mike Becker, senior vice president of human resources and labor relations. The rejection leaves the status of NWA's contracts and tentative agreements with its other work groups unsettled since these will not take effect until contracts are in place with all unions. The company noted that "today's PFAA vote further delays implementing permanent labor cost reductions, which will result in ongoing losses of $30 million per month." Jun 7, 2006

Northwest Airlines

Northwest attendants to announce contract vote today. Northwest Airlines flight attendants are expected to announce the results of a vote on a contract proposal today. The proposal would reduce wages and help the airline emerge from bankruptcy protection. If the proposal is rejected, Northwest has said it will try to impose a contract. Jun 6, 2006

Northwest Airlines

Northwest Airlines lost $295 million in April, according to a filing with the US Securities and Exchange Commission, but was profitable on the operational level, reporting a $53 million operating profit on $1.04 billion in revenues and $987 million in expenses. The bottom line was affected by $309 million in reorganization items related to restructured aircraft lease and debt charges. Jun 5, 2006

Northwest Airlines, United Airlines

Carriers post strong May load factor. United Airlines and Northwest Airlines reported that their planes were more than four fifths full in May. The May load factor for the two carriers is higher than what airlines have historically reported. Jun 7, 2006

United Airlines

United Airlines flew 10.13 billion system RPMs in May, a 4.5% increase over the year-ago month. Capacity rose 2.1% to 12.13 billion ASMs, lifting load factor 2 points to a May-record 83.8%. Jun 9, 2006

United Airlines

United must continue to lower costs, experts say. United Airlines has a competitive edge following its reorganization, but it must continue to focus on cost cutting, observers said. Delta Air Lines and Northwest Airlines are also restructuring under the bankruptcy code. Jun 5, 2006

US Airways

US Air Transportation Stabilization Board last week announced the sale of the 3.4 million warrants it received in connection with the issuance of a loan guarantee to Frontier Airlines in 2003. Warrants were sold at auction to seven institutional investors for $6.6 million. ATSB has no current outstanding loan guarantees but does hold warrants in World Airways and has an $86 million direct loan to ATA Airlines. Jun 5, 2006

US Airways

US Airways Group reached a final transition agreement with the Airline Customer Service Employee Assn., an alliance between the Communication Workers of America and International Brotherhood of Teamsters representing the carrier's 7,700 passenger service and reservations employees. A tentative agreement was announced in December outlining the transition of former America West Airlines employees (IBT) to the existing US Airways (CWA) labor contract. The agreement becomes amendable in January 2012. The presidents of the two unions will alternate presiding over ACSEA, under which CWA will represent workers in the eastern US and IBT those in the West. Jun 5, 2006
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Publication:Airguide Online
Geographic Code:1USA
Date:Jun 12, 2006
Words:1701
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