PlaneBusiness Banter Now Posted!

home-typewriter copy 1Hello everyone. This week we come to you from the wonderful comfy confines of Manhattan. My old stomping grounds.

Yours truly is in town for Delta Air Lines’ roll out of their new Terminal 4 at JFK Friday. Today, I made my way over to the Wings Club, where Delta Air Lines’ CEO Richard Anderson spoke to a packed house.

And yes, we’re all drinking Coca-Cola. And eating moon pies.

Well, maybe not.

This week in PlaneBusiness Banter we take an in-depth look at the recent earnings calls from Air Canada and WestJet. Ryanair also announced record annual earnings (through Mar.31) this week.

Meanwhile, this week United Airlines re-launched the 787 into passenger service. And, just in case anyone had forgotten about their operation in Newark, (as a result of the media onslaught involving the Delta T4 rollout this week) United also announced a $150 million upgrade to its Terminal C facility at Newark.

SkyWest announced a new aircraft order this week. The airline announced it firm orders for 40 76-seat E175 aircraft with two-class cabins. The aircraft will fly under new 12-year contracts for United Airlines.  

We also take a look at the March DOT Air Travel Consumer Report. We had a lot of hot competition in many of the categories this month — was fun to dissect.

The airline sector had a pretty good week on Wall Street. And those shares of bankrupt AMR just keep going and going and going. We give a shout out this week to the JP Morgan dynamic analyst duo of Jamie Baker and Mark Streeter. They made the AAMRQ call more than two months ago — and the shares have, for the most part, never looked back.

All this — and more — in this week’s issue of PlaneBusiness Banter.

 

 

 

 

 

PlaneBusiness Banter Is Now Posted!

home-typewriter copy 1This week’s issue of PlaneBusiness Banter is now posted. Yes, we ran into some difficulties last night as we were working back and forth with our editor, while nasty weather rolled through the DFW Metromess. Sometimes it is wise to just unplug the machine.

I hope none of our readers were directly affected by the 10 or more tornadoes that ripped through DFW Wednesday evening. Ugly stuff.

This week we bring you yet another earnings packed issue, as we take an in-depth look at the recent earnings calls from Spirit, Republic Holdings, and SkyWest. 

We also bring you another column in which we take you once again to the recent Phoenix Sky Harbor International Airline Symposium. This time the subject is: Labor.

On the international front, Emirates reported blockbuster earnings last week, while IAG lagged. Can we say “Iberia?”

Meanwhile on the US Airways/American Airlines front, we had two labor things of note to talk about this week. One, the TWU and the IAM have joined forces to represent roughly 30,000 employees at the new airline. While this “joint” representational effort is not the first of its kind (there is already one in place at US Airways involving another employee group) it is certainly the largest.

While out in Phoenix, federal district court judge Roslyn Silver basically told the pilot group from America West and the pilot group from the old US Airways this week to go to their respective rooms and come up with a seniority agreement. In seven days.

Hey, if God could do it in seven days, they should be able to, right?

All this and more in this week’s issue of PlaneBusiness Banter.

 

PlaneBusiness Banter Now Posted!

home-typewriter copy 1Hello everybody. It’s that time again. This week’s edition of PlaneBusiness Banter is now posted!

And it is gigantic.

This week we take an in-depth look at the recent 1Q earnings reports from Southwest Airlines; Alaska Air Group; JetBlue; Allegiant Travel Company, and Hawaiian Airlines. 

What caused the big uptick in costs at JetBlue this quarter? Are the guys at Hawaiian crazy — or really smart? Allegiant management rolled out a new earnings call format, and Wolfe Trahan analyst Hunter Keay got involved in a rather spirited “discussion” about hedging with the folks at Alaska Airlines. 

As for Southwest, they are almost three years into the AirTran merger and they have just come to the realization that flight schedules at AirTran need to be optimized? Codesharing just began? There’s been some serious money left on the table there over the last several years.

In addition we give you our take on the US Airways Leadership Conference that we attended in Scottsdale last week. No, I don’t think the the invited guests from American quite knew what to think about all of it.

Meanwhile, up in Chicago, we update you on some rather ugly goings-on in United’s flight ops department. Ex-Cons out, United legacy folks in. The moves are not sitting well with many of our subscribers. We’ll tell you why.

It was a great week for airline stocks last week, and this week both the Dow and the S&P 500 have set new records.

All this and much more in this week’s 125-page plus edition of PlaneBusines Banter. 

PlaneBusiness Banter Now Posted!

home-typewriter copy 1Hello everyone. How is Wednesday treating you? It’s been pretty frenetic here at our Arizona version of the Worldwide Headquarters. This week we have a mega-earnings issue for you, as we take an in-depth look at the recent 1Q earnings announced by Delta Air Lines, United Continental Holdings, and Delta Air Lines. 

Both Delta and US Airways had very good 1Q results, but United …not so much. The grand experiment continues. And yes, to answer a number of notes from readers, remember that United’s recent RASM increases, which the airline has been touting,  are really due to two big factors — a sharp drop in capacity this spring at the airline and easier comps compared to the other players. In other words the good thing about running a really lousy operation — a year later your comps are very easy!

We heard more about the Pinnacle/Delta deal in Delta’s call. The more we hear, the more we like it. We think it could serve as a model for what a major airline/regional airline partnership should look like going forward.

But we’re talking about a lot more this week. First we talk about the Phoenix Sky Harbor International Airline Symposium that was held last week in Phoenix. Then we discuss the US Airways Media Day, which was held in Scottsdale to an overflow crowd that included  American Airlines‘ employees,  US Airways’ management, union leaders from both airlines, and an overflow crowd of nosy journalists.

Yes, it was one hell of a busy week.

Subscribers can access this week’s issue here.

 

 

 

PlaneBusiness Banter Now Posted!

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Hello everyone. It has been a long day for yours truly. Actually a long two days, as this week’s issue was compressed into a two day writing adventure. Tomorrow, I will be at this year’s US Airways’ Media Day bright and early. Put the two together, and yes, your PBB preview will be brief this evening!

This week we talk about some of the more interesting comments and discussions we heard at the recent CAPA “Airlines in Transition” Conference in Dublin. Essentially, forget the old rules is what it comes down to. The airline industry, worldwide, is going through a period of instability and change.

Surprised?

You shouldn’t be. As positive as consolidation has been for the industry in the US, we still have problems. There are still airlines that get it — and those that don’t. Alliances? The branded alliances are merely one part of what an airline should be looking at in terms of JVs, partnerships and more. Low cost carriers? Some of them want to try and steal some of that high-yield business while some legacy carriers are trying to compete with the low-cost guys.

It’s a jungle out there.

We also talk this week about the latest on the AMR merger, we give you one Wall Street analyst’s views on just how much sequestration could cost the industry, and well, you know, we talk about a lot of other things as well.

All — in this week’s issue of PlaneBusiness Banter.

 

 

PlaneBusiness Banter Now Posted!

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Hello everyone. It’s that time again. The latest issue of PlaneBusiness Banter is now posted.

Last week yours truly was traipsing around Dublin, where I attended the CAPA “Airlines in Transition” Conference. But before that, I ventured down to Austin, where I spoke to the fine  folks at the GBTA Texas Education Day, sponsored by the Austin Business Travel Association.

As a result, we had really too much to talk about in this week’s issue. I’ll follow up in our next issue with all the goodies we didn’t have room for this week.

Another thing I did last week was fly out of Love Field. It was the first time I’ve flown out of the airport since they opened the new check-in areas. This week they opened up the gate areas. I may have to plan another trip on Southwest Airlines just so I can  check out the new digs. For those of you who live in the DFW area and have not yet seen the new terminal upgrades, you’re in for a real treat.

In this week’s issue I also talk about the feedback I received from the business travel group in Austin. Bottomline? Since it was pretty much a Texas-centric group, Southwest Airlines was top of mind. Unfortunately for Southwest,  that position was not because of positive reasons. Yep. Heard a lot of complaints. About a number of things.

Meanwhile, when I was in Dublin, Travelport rolled out their new hybrid GDS product — the one they had been hinting about last month when I was out in San Diego speaking to their top clients.

I like it. A lot. easyJet is the company’s first client that is using the new hybrid product that lets agents and TMCs access both direct connection feeds and more traditional GDS listings all on one screen.

From an airline perspective, it allows an airline to provide content in either the more traditional manner as is the case now with the GDS companies — or the airline can provide fare and product information directly through an API.

More on all this in this week’s issue as well.

We also get you up to speed on the traffic stats for March, the DOT Air Travel Consumer results from February, and all kinds of other stuff as well.

In our next issue, I’ll talk more about  the conference in Dublin — and I’ll give my review of Delta Air Lines’ new Business Elite lie flat seats. I’ll give you a hint — as tall as I am, I could stretch out completely flat. THAT is a good thing.

But that is next week.

PlaneBusiness Banter Now Posted

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Hello everyone. It’s that time again. Yes, the magical mystery publishing date of PlaneBusiness Banter hit the “Monday” box this week.

This week we have a great issue — for one main reason.

We have a new PBB Lounge Lizard Transcript Interview! Yay! This week we sit down and chat with Laura Glading, President of the Association of Professional Flight Attendants. Let me put it this way. Laura has a lot to say. And I had a lot of time.

Unfortunately because the American Airlines/US Airways merger is still not completed, and American is still in bankruptcy, I have to admit — there were some entertaining stories that, well, will just have to stay off the record for now. But someday….

We talk a lot this week about why airline stocks fell flat on their face last week. We also get some expert opinion on the situation from Jamie Baker and Mark Streeter with JP Morgan; Hunter Keay with Wolfe Trahan; and Glenn Engel with Bank of America/Merrill Lynch. 

I wonder when Bank of America will finally drop the “Merrill Lynch” moniker?

We update you on the Boeing 787 saga, we show you a picture of a happy CEO and his large mouth bass, we talk about the new 47 page opus the FAA just sent out to airlines — the particulars on the new schedule/duty hours changes the  airlines are supposed to make before Jan. 4, and we also have a couple of interesting letters to digest and consider.

All this, and much, much more in this week’s issue of PlaneBusiness Banter. 

 

 

home-typewriter copy 1Whew. We made it. Between a new server migration and April Fools’ day, it’s been a jam-packed couple of days at the PlaneBusiness Worldwide Headquarters.

This week’s edition of PlaneBusiness Banter is now posted. Subscribers please note: If you have our log in page bookmarked, you will need to change that link. The new log in address is: http://www.planebusiness.com/banter/

This week we’re talking about the Doug and Tom Show. The U.S. Bankruptcy Court approved the merger between US Airways and American Airlines last week. Meanwhile, American Airlines’ Chairman and CEO Tom Horton ramped up the revisionist history stories at the Wings Club Luncheon last week  – now the merger was not only his idea, but he was only just “playing poker” last year when he continued to rebuff the advances of US Airways. 

Right Tom. Keep telling yourself that. But I have something to share with you: nobody believes you. And for good reason.

We also had a chance to spend some time with Ken Kaufman last week in New York. He is one half of the KaufmanFranco design team that has been given the task of creating new uniforms for more than 70,000 employees of the new American Airlines. I liked what I heard from Ken. Any project like this is a massive undertaking, but I think KaufmanFranco is on the right page in terms of how they want the employees to look and the image they need to project. Classy, but functional. Not trendy and non-versatile.

On the airline stock front, it was a blockbuster first quarter for the airline sector. We tell you who the big winners were. (And there were very few losers!)

Boeing. Oh Boeing. Where do we start? It looks like Airbus is going to snatch a nice A350-1000 order with IAG — as opposed to the new Boeing 777X aircraft. Or at least that’s what Jon Ostrower at the Wall Street Journal is reporting tonight.

Meanwhile the Boeing 787 saga continues. Nobody still knows what caused the two batteries to melt down, and the company has yet to fly the test flight in which they will deliberately try to obliterate the battery. But the company still says the aircraft will be flying commercially again “very soon”.

Meanwhile, more airlines are getting testy about cash compensation from Boeing as a result of the continued grounding of the 787. None of this “discounts on future purchases”. Patience can only go so far.

On the analyst front, this week we look at recent comments from Morgan Stanley analyst John Godyn concerning the industry as a whole, and United and Delta in particular. We also look at the updated American/US Airways merger profit and revenue forecasts issued by JP Morgan analysts Jamie Baker and Mark Streeter.

We had a ton of subscriber letters this week. Thank you, thank you. We also give you our take on what our favorite Airline April Fool efforts were Monday.

All this and much, much more in this week’s issue of PlaneBusiness Banter. 

Oh, and please pardon the dust and packing boxes here in PlaneBuzz. The new stuff from Restoration Hardware is still in the boxes. (Including that very cool but very overpriced aviator desk! Yeah. Right.)

Look for additional sprucing up as we get more up to speed on our WordPress skills!

Site Migration Update

Hello everyone. The migration to the new server is pretty much completed. Still waiting on a few small things to be taken care of.

PlaneBusiness Banter will be posted later today — and no, this is not an April Fools’ joke. I don’t think.

Hello All!

Pardon our dust. We are migrating our main website and PlaneBuzz to a new server. This means that for a little while things are going to look weird, and probably not work 100%. (Since we are all in the airline industry we are all familiar with cutover projects.)

Bear with us. It will get better!