Never fails.
I have to go see the tooth doctor, it takes much longer than it should, I walk back in the door and all hell has broken loose. My email inbox looks like a combat zone.
What a day. Where do we start?
Crude Oil Sets New Record High
First off — the price of crude oil. Crude oil closed today up more than $4.50 at a record $100.10.
Why?
We talked a bit about this in last week’s PlaneBusiness Banter. OPEC has been signaling that it does not intend to increase production, and in fact is considering lowering production levels when it meets next month.
Today, traders went nuts — over the possibility that the decision to cut production levels could come as early as two weeks from now.
It also didn’t help that an explosion yesterday shut Alon USA Energy Inc.’s Big Spring, Texas, refinery. According to Bloomberg, the facility can process 70,000 barrels of crude oil a day. Alon said in a statement that its goal is to resume partial operations in about two months.
Airline Stocks Drop Like Rocks
Horrible day for airline stocks today — as a result of the record-breaking crude activity. A small handful of airline stocks managed to post gains on the day including FEDEX, Hawaiian, Republic Holdings and WestJet. The rest? Not a lot to get enthused over.
US Airways East Pilots Get Representational Election Nod from the NMB
“USAPA NEWS FLASH : The National Mediation Board has ruled that, for the first time in 45 years, ALPA is in dispute.
We have an election!
More news to follow.
From the Officers and volunteers at USAPA, thank you for your unwavering support!
USAPA is the US Airline Pilots Association — the group that was founded by the US Airways East pilot group, after that group took offense at the ALPA arbitrator’s interpretation of how a seniority plan should be constructed between the pilots of America West and US Airways. The US Airways East folks have been working to get a representational election called for the pilot group — and it looks like they have succeeded.
There is now, officially, a major split in the ALPA not-so-happy family.
Delta/Northwest Pilots Approve Merger Plan
Last, but not least, the Detroit News reported today:
“Leaders of the union representing 11,100 pilots at Northwest Airlines Corp. and Delta Air Lines Inc. have reached an agreement on consolidating the two groups of workers under a merged carrier, sources close to the matter said Monday.
It outlines terms for combining the pilots’ seniority lists, as well as calls for a pilots’ representative on the board and an equity stake in the merged airline.
The plan addresses most of the pilots’ concerns and removes a major hurdle to a Delta-Northwest merger.
The agreement between the Delta and Northwest chapters of the Air Line Pilots Association — the only union representing employees at both airlines — will be presented Wednesday at a scheduled meeting of Delta’s board in New York, the sources said.”