Monthly Archives: July 2006

BuzzBomb Alert

It’s Thursday. That means it’s writing day for PBB.

But in the midst of all this mayhem, I wanted to let you know that we should be awarding another BuzzBomb shortly.

Following up on our recent award to Northwest Airlines, in honor of the way in which that company recently handled changes in its employee health care programs — we have been told that we have another airline that has outdone Northwest — in spades.

More to come.

Oil Surges to $76 plus

Let’s see. Iran says it won’t abandon its right to continue its nuclear energy program, there were have been two suspected explosions at a crude oil pipeline in Nigeria, and tensions between Israel and Lebanon are escalating.

Just the cocktail for higher oil prices, and the market, as of this writing, has not disappointed.

Will be interesting to see how high oil ends today.

EEK! Mice on a Plane! Mice on a Plane!

Mouse-Fat Sm

In what could be the basis for a script for the new Samuel. L. Jackson sequel to “Snakes on a Plane,” (which will arrive in a theater near you in August), a television station in Kansas City this week went live with video shot by an American Airlines’ employee of the Kansas City overhaul base.



According to the whistleblower in the report who did not want to be identified, American Airlines’ N20, a Boeing 767, came in for maintenance service infested with mice.

The whistleblower told the station that workers had found mouse nests in air vents and dead mice in emergency oxygen masks. Video of the inside of the plane shows where mice ate through insulation. Several calls were apparently made to the FAA concerning the infestation during the month of May, including one that said the mice had chewed through wires, and one that reported there were mouse nests near oxygen generators.

According to the aircraft logs, mechanics first noticed a mouse sighting on April 20 while the aircraft was at JFK. But the note was tagged as “deferred maintenance.” Three days later there was apparently another incident where a mouse was observed.

The plane was, however, not flown into Kansas City for inspection until 11 days later.

Exterminators in Kansas City apparently told workers there could have been anywhere from 900 to 1000 mice on the plane. American Airlines disputes that number. In a written statement to the station, the airline said they found only 17 live mice.

Not sure if three of them were blind or not. The report did not say.

While it’s funny to joke about, the pictures of the mouse feces and the damage to the insulation of the plane were not particularly amusing to look at.

The airline says that the aircraft has now been completely rodent-proofed, all wiring inspected (and replaced if it had chewed on we assume), and, as of this week, the aircraft was back in the air.

As one industry expert said who was interviewed as part of the report, “It’s probably now the cleanest, safest aircraft in the fleet.”

Meanwhile, the line of the day goes to American Airlines, which said that the situation was an anomaly, and while an occasional mouse has boarded, infestations simply don’t happen that often.

As one distinguished airline observer we know noted after reading that line,

“We see a little StuAArt Little-type mouse, holding his little boarding card, strolling onto the aircraft in his little suit, carrying his little rollerboard.”

This Time the Culprit is an Analyst Downgrade, not Oil

In case you’re wondering why airline stocks are taking a dive today, this time the price of crude is not a factor.

Analyst Mike Linenberg at Merrill Lynch issued a downgrade on three of the industry biggies today — US Airways, American Airlines, and Continental Airlines.

Mike downgraded the three to “neutral” from “buy” on valuation concerns, i.e, he thinks they are too expensive.

I don’t disagree. Then again, the valuation issue is just a short-term concern. Longer-term we need to look at where the economy is headed in general for the rest of the year, and that, as I talk about each week, is certainly quite a nebulous thing. Although I think overall we’re still going to see the economy continue to slow down — as the year itself winds down. The only question is how fast the process will move, and if it will gain momentum later in the year — or if it will flatten out before then.

Northwest Flight Attendants Resume Talks on Tuesday

Last week when we published PBB, we were told that there was a possibility that negotiators for AFA would sit down Friday — after having just won representation of the flight attendants at Northwest Airlines on Thursday, and resume negotiations.

That didn’t happen.

But talks will restart tomorrow, Tuesday, with AFA-CWA negotiators in place.

The judge here has given both sides until July 17 to come to terms on a new contract. If not, Northwest has been given the authority to impose contract terms on the group.

Any bets on what is going to happen with these talks?

Monday Night Television Alert

If you are at home tonight and looking for something to watch — you might want to tune into the National Geographic Channel which can be found on your friendly cable or satellite channel lineup.

On tap tonight is a program that details the events of FedEx Flight 705 from April 1994. This flight, as you may recall, was hijacked by a suicidal crew member wielding a hammer and a spear gun. Apparently this is the first time the crew of the aircraft has authorized a production detailing the events, and members of the crew are interviewed as part of the program. This is part of the channel’s “Air Emergency” series.

The program, entitled, “Suicide Attack” airs tonight at 10 PM EDT. It will also air Tuesday, July 11, at 1 AM, EDT.

Turboprops Return

When I spoke recently at the Regional Airline Association soiree in Dallas, (no, it wasn’t particularly a joyous gathering) one of the questions that came up concerned turboprops. Was it my opinion that the lowly turboprop could indeed be on the cusp of a revival?

I said yes for a couple of reasons.

Economics and passenger comfort. If you’ve talked to the folks at Horizon, you know that they simply love the airplane.

Guess the news is getting out. Last week it was reported that Continental is looking to replace some of its smaller regional jets with 24 Bombardier 70-passenger Q400 aircraft.

All I know is that Horizon loves them, and the people I know who have flown on the aircraft have nothing but good things to say about them.

Good news for Bombardier — which continues to sit on its hands, while Embraer eats its lunch in the 100-seat market.