Monthly Archives: July 2006

Score: JetBlue 1, IAM O

Jetblue

Looks like those blue chips will not be loaded on JetBlue aircraft with union labels attached anytime soon.

The IAM’s effort to become the representative for JetBlue’s employees involved in ground operations, provisioning, and other related positions was dismissed by the National Mediation Board today.

The NMB dismissed the petition because the union failed to produce evidence that at least 35% of the eligible employees had supported holding a representational election.

JetBlue remains the largest airline with no union representation of its employees.

Reports Say Major Conflicts in Proposed Pension Bill Have Been Resolved

Wonders never cease.

The Wall Street Journal (sub required) reports tonight that House and Senate negotiators are close to coming to terms on a new pension bill.

PBB readers know that we have been following the progress, er, lack of progress on this bill since last year.

Negotiations on the bill have been mired in Potomac Muck for months, but last weekend, according to the WSJ,

“A bipartisan bloc of five House and Senate members began drafting a proposed settlement independent of Sen. Michael Enzi (R., Wyo.), the official leader of the talks and chairman of the Senate Health, Education, Labor & Pension Committee. The unusual process is politically delicate for all involved, but it has had the active support of House Majority Leader John Boehner (R., Ohio). “I think we are very close to an agreement,” Mr. Boehner said yesterday. Montana Sen. Max Baucus, the ranking Democrat on the Senate Finance Committee, said there’s a “good chance of getting this all wrapped up before the August recess.”

Interesting. And yes, this does sound like a rather unusual way to get the bill put together.

According to the report, “The agreement is also expected to include a break for Northwest Airlines and Delta Air Lines, giving them a period of 20 years to fully fund their pension plans, rather than the seven-year deadline all other companies would face. The agreement would also require a so-called hard freeze of pension benefits for the airlines. AMR Corp.’s American and Continental Airlines would get 10 years to meet their current pension obligations and would also have to freeze new obligations.”

Employees of Northwest and Delta swarmed the Hill this week, trying to cajole, connive, or, as a last resort, break some arms — in an attempt to impress upon legislators not only on the importance of a pension bill — but a pension bill that gives breaks to the airline industry.

Earnings Begin Tomorrow

Ah, our favorite time of the year. Make that one of our favorite four times of the year.

Tomorrow Southwest and AMR, parent of American Airlines report second quarter earnings. Continental Airlines reports on Thursday.

Overall, second quarter earnings results should be strong pretty much across the board for the Things with Wings. Get ready to see some of the best numbers posted by many airlines since early 2001.

July 17, 2006

Twa

It’s hard for me to believe that it has been ten years since TWA Flight 800 went down over Long Island Sound. I was living in New York then, and I remember how hot that evening was. And I still remember the sickening feeling when I turned on the television and saw the first reports of the crash.

I remember thinking at the time, “It was just out there — in the sky” — not too far from where I was — as I stood and listened to the drone of the newscasts.

Terrible night. Terrible, terrible night.

Airbus A350 Redesign Confirmed at Farnborough

A350

As expected, Airbus today released details of its revised A350 design.

What was not expected, at least for me, was that the manufacturer kept the A350 moniker. There was talk last week that Airbus would probably move to an “A370” tag in an attempt to distance the old from the new.

Technically the new aircraft is dubbed the X-WB.

Isn’t that a wanna be television network?

Whatever. No, actually it stands for Xtra Wide Body.

Airbus now estimates it is going to spend about $10 billion in development costs on the Boeing 787 Dreamliner competitor. Estimated arrival time for the new baby is now 2012.

Meanwhile, I was *shocked,* simply *shocked* to hear today that Boeing did confirm in Farnborough that it is experiencing production delays with the 787.

Reasons? The two usual suspects. Excess weight and problems with suppliers.

The percentage of outsourced components on the 787 is unprecedented. As a result, this news really does not come as a surprise, as industry observers have said for years that the high number of outsourced elements of the new jet would be problematic when crunch time rolled around.

Northwest and Flight Attendants Come To Terms

Not much of a surprise here, as today — the day Northwest would have been given the right to impose terms on the flight attendant union — both sides announced that a tentative agreement has been reached.

Apparently both sides negotiated all night, with a deal being hammered out this morning.

There are no details out yet about the deal, except that it does provide for a quick vote by the flight attendant membership.

Judge Gives Mesaba the Okay to Throw Out Contracts

Mesaba

U.S. Bankruptcy Judge Gregory Kishel told Mesaba Airlines today that it can throw out its contracts with its three major labor unions.

The judge also said that Mesaba must give the unions 10 days notice if it intends to do so. This will allow both sides one final chance to come to terms on new contracts.

I would expect that we will hear shortly that Mesaba has indeed given notice they intend to reject the contracts.

PBB Out This Morning

For those anxiously awaiting this week’s issue of PBB, we’ll be up and posted this morning. No worries. Well, except if you need to go buy a barrel of crude oil for some reason this morning.

Crude Closes at $76.60 — It’s Not Done Yet

While the price of crude closed in New York today at $76.60, the shouting is far from over. Forward contracts are already trading at $80 plus, and I don’t think Friday is going to be a good day.

Reason? Israel’s attacks on Lebanon, which came after Hezbollah forces apparently fired some 80 rockets into Israel earlier in the day.

Oh, and if you were planning on flying into Beirut tomorrow, I would suggest you contact your travel agent and make other arrangements.