PlaneBusiness Banter Now Posted!
Hello everyone.
The latest issue of PlaneBusiness Banter is now posted. Subscribers can access this week's issue here.
So what are we talking about this week?
Earnings, earnings and more earnings.
This week we do our usual in-depth review of the recent earnings calls from American Airlines, Southwest Airlines, and Continental Airlines.
Our quick take on the results posted by the three airlines?
Southwest surprised us -- on two fronts. One, we knew the revenue numbers were going to be good, but they were better than we had expected. Two -- the tone of the airline's earnings call was very positive. I have not heard Chairman, President and CEO Gary Kelly and CFO Laura Wright as clearly "happy" with the airline's quarterly numbers in a very long time.
As for American Airlines -- a good portion of the call dealt with -- you guessed it -- Japan Air Lines. The airline lost a lot of money for the quarter. I didn't really hear anything concrete in the airline's call that tells me there are any innovative changes on the way that will make the airline profitable either. Flight Plan? Can we have some details?
Continental -- this airline is going to make a profit for 2010 or newly-minted Chairman, President and CEO Jeff Smisek is going to forgo both his sizable salary and any potential bonus. Think he has some incentive to put his money where his mouth is? I do.
Meanwhile, the Allied Pilots Association seems to be self-destructing, senior United pilots were successful in their class action suit against ALPA, and the American Airlines' flight attendants will not ask for NMB mediation -- yet. After 11 days of intensive negotiations -- the two sides are now set to meet again in DC the end of February.
Speaking of flight attendants, British Airways began training other employees in an intensive 3-week in-flight training course today, in preparation for a potential strike against the airline by its cabin crew. Coffee, tea, or how 'bout a pilot or a mechanic serving you crumpets on your next flight?
All this and a whole lot more in this week's issue of PlaneBusiness Banter.