Monthly Archives: October 2007

First Singapore A380 Flight Takes Off For Sydney

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I don’t know about you, but this baseball game tonight is a total waste of time.  I’d much rather be on an A380.

Specifically the one that is now enroute between Singapore and Sydney.

Yep. The inaugural Singapore “Flight of the Beast” is now in the air. Can’t wait to hear the first reports from onboard the flight.

Not surprisingly, spoofs have been making the Internet rounds the last couple of days.

Here’s a particularly good one from the Daily Mash I read today.



Safety Fears After A380 On-board Safari Incident

SAFETY concerns have been raised about the A380 super-jumbo after two passengers were attacked by lions during their on-board safari.

The two business class passengers had to be rescued when their Land Rover became bogged down near a watering hole and they tried to get back to their flat-bed seats on foot.

The incident comes as Airbus announced that the next generation of A380s will feature a 25,000 seat auditorium based on the Roman Colosseum.

Vasily Borodin, vice-president of Russia’s Aeroflot, said first class passengers will be able choose up to a dozen people from economy and then command them to fight to the death.

“The winners and their families will be upgraded, so we should get some terrific contests,” he added.

But the giant plane has been criticised by business travellers after it emerged that its on-board golf course was only nine holes, and not the 7000-yard championship links as originally promised.

Jean Floriette, A380 lead designer, said new planes coming off the production line would be upgraded to include a Jack Niklaus designed 18-hole course with club house and spa, although he admitted this could lead to compromises elsewhere.

He said: “We may end up having to cut back a bit on the grouse moor, but there’s already a stag hunt and some world-class salmon fishing, so we hope this minor change will not inconvenience passengers too much.”

He said there was no question of the A380 jettisoning Der Stuka, it’s six storey high water slide which sends passengers down a 250 feet near vertical drop and on to a 300 foot long runway.

Air Traffic Controllers Don’t Like Bobby

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While I have not received a personal note from anyone regarding Sturgell’s proposed appointment, there’s no question where the air traffic controller’s union sentiments lie on the Sturgell nomination.

In a press release today, the NATCA’s president Patrick Forrey was quoted as saying,

“NATCA opposes the nomination of Bobby Sturgell for administrator of the Federal Aviation Administration. We oppose it because America’s aviation system is experiencing record delays and an unprecedented degradation of safety margins, exacerbated by the largest decline in the number of experienced air traffic controllers since 1981. The mislabeled contract that the FAA imposed upon its controller workforce on Sept. 3, 2006 has resulted in more than 1,550 air traffic controllers leaving the FAA due to a poisonous and acrimonious labor situation in which morale has never been lower. Simply put, over the past five years of this administration, we have experienced the demise of the world’s safest and most efficient air traffic system.

The President’s nomination for FAA administrator has been an integral part of this systematic demise of controller staffing and abysmal labor-management relations. Therefore, NATCA will not support a nominee that will continue to exhibit a management philosophy that demoralizes its valuable workforce to the point of leaving.”

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Ex-United Airlines Pilot Nominated for FAA Post

In case you missed it, the Bush Administration announced its pick to head the Federal Aviation Administration today.

That pick? The agency’s current number two man, Robert Sturgell. Sturgell is a former United Airlines’ pilot and has been serving as acting administrator following Marion Blakey’s departure in September for the much-greener pastures of the lobbying life.

Prior to moving to the FAA in 2003, Sturgell held the position of senior policy advisor at the National Transportation Safety Board (NTSB), where he served as the Chairman’s primary advisor and coordinator on the NTSB’s recommendations, policy programs and other safety initiatives.

Bio Sturgell

Prior to joining the NTSB, Sturgell was a flight operations supervisor and line pilot for United Airlines, flying the B-757 and B-767 in both domestic and international operations. Sturgell is also an attorney and has practiced aviation law at the Washington, D.C. law firm Shaw Pittman.

A former naval aviator, Sturgell was an instructor at the Navy Fighter Weapons School (Topgun) and flew the F-14, F-18, F-16 and A-4 aircraft. Now a Commander in the U.S. Naval Reserves (Retired), Sturgell is a graduate of the U.S. Naval Academy and the University of Virginia School of Law.

Now that we have the formal details out of the way — has anyone sat across a conference table from Bobby? Is this a good move? Let me hear from you . I have never met Mr. Sturgell, but I have sent out a number of missives to folks I think may have worked with him in the past  in an attempt to get more information on him — particularly his recent FAA tenure.

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Sioux City Sux and They’re Proud of It

Talk about smart marketing.

USA Today reported reports that after fighting for years to replace the three-letter code used to identify Sioux Gateway Airport, city leaders are now making SUX the focal point of a new marketing campaign designed to draw more visitors to their little cornfield of dreams.

Fly

Sioux City officials petitioned the Federal Aviation Administration to change the code in 1988 and 2002. At one point, the FAA offered the city five alternatives — GWU, GYO, GYT, SGV and GAY — but airport trustees turned them down.

Kudos to airport board member Dave Bernstein, the man who apparently said, “Enough” and proposed embracing the identifier, instead of trying to run away from it. “I’ve got buddies that I went to college with in different cities that can’t even remember their own birthdays, but they all know the Sioux City designator — SUX,” he told the Associated Press.

Check it out. Buy a T-Shirt while you’re there.

American Pilot Union Sends Pay Response to Airline

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Here we go. Crank up the Stones. Time to start ’em up.

This afternoon the Allied Pilots Association sent its section six pay proposal to the airline.

For those of you with enquiring minds, you can access more information concerning the proposal by clicking here.

While I haven’t had time to read through all of the finer points of the proposal yet, one part concerning Holiday Pay did catch my eye.

Apparently APA leadership considers Super Bowl Sunday to be a national holiday.

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Why does this remind me of the old United Airlines’ pilot contract — the one that paid a pilot to have his piano tuned if the airline forced him to change domiciles?

Guys, sorry. Good try, but I ain’t buying this one.

(A specific link to the holiday pay section can be found here.)

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JetBlue: Numbers Okay, But …

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JetBlue returned to the black for the third-quarter, posting net income of $23 million, or $0.12 per share.

This figure compares favorably with a year-ago loss of $500,000 The numbers were also a nickel above Wall Street’s consensus forecast of $0.07, according to two different consensus forecasts.

However, as we have heard from other airlines, JetBlue is not too enthusiastic about its upcoming fourth quarter. In this case, the airline’s ballooning costs could make a fourth quarter profit a no-show.

Frank Boroch at Bear Stearns said in a note this morning that “JBLU expects an operating margin between 3-5% (vs. our 6.8%), assuming jet fuel at $2.23/gallon all-in (vs. our $2.33), with a pre-tax margin of -1-+1% (vs. our +1.9%). Unit costs should increase by 11-13% y/y (vs. our 12.8%), while ex-fuel CASM should rise by 6-8% y/y (vs. our 4.5%) on a 10-12% increase (vs. our 9%) in capacity and a 4% increase in the stage length.  The guidance (using our higher fuel price) implies 4Q EPS in the $0.00-($0.02) range (assuming a normal tax rate) vs. the current mean of $0.04 with a range of $0.12-($0.10).  4Q guidance implies a dramatic deceleration in 4Q y/y unit revenue growth on much more difficult y/y comps.”

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Tuesday Tidbits: United Airlines Serves Up Tasty Post-Bankruptcy Profits

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Another week and another lesson in bankruptcy economics.

United Airlines reported earnings today, and just as we saw with Delta Air Lines, a stay in bankruptcy court can do wonders for an airline’s numbers.

Almost as good as a spa treatment.

Parent company UAL Corp. announced better than expected quarterly results today, as it announced third quarter earnings of  $295 million, or $1.96 per share adjusted to exclude one-time items, on $5.5 billion in revenue. Consensus had the airline coming in at $1.88 a share.

No surprise that while about half of United’s revenue comes from North America, international flights are providing the fastest growth. Revenue from trans-Atlantic flights soared 17.4% from a year earlier, while Pacific passenger revenue climbed 14.8%.

Interesting that the airline posted such strong trans-Atlantic numbers — especially after we saw American Airlines report weak trans-Atlantic numbers last week. They look even that much weaker now.

But, don’t break out the party hats yet.

The airline said during its call that costs are rising faster than they had anticipated.  As a result, it told analysts this morning that CASM is now expected to rise about 6% in the fourth quarter. YIKES.

The reason for the increase? The airline says it is because of higher maintenance expenditures and higher IT outsourcing costs.

(Reminds me of the latest conversation that PBB subscribers and I are having on the topic of airline IT.)

Not surprisingly, given the airline’s double-digit increases in international revenue, the airline said today that it expects to cut the number of U.S. seats by about 3.5% in 2008. International seats will rise 6% next year.

Ticker: (UAUA:NYSE), (AMR:NYSE)

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Mega Issue of PlaneBusiness Banter Now Posted

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Hey guys. The current issue of PlaneBusiness Banter, all 40 some pages of it, is now posted. Subscribers can access this week’s issue here.

However, my apologies to our subscribers, as we have been trying to send out our subscriber email notifications with no success since about 6 P.M.

The program we use to send our weekly publishing notices does not want to cooperate, for whatever reason. I’m going to give is one more try here — before calling it a night.

Again, my apologies. Hopefully we can get these emails up and out of here as soon as possible.

Update on PBB Posting: It’s A Weekend Thing!

Just popping in to update subscribers on this week’s issue. Look for it this weekend. No posting tonight. I just finished our four big earnings reviews, and now it’s on to page one to wrap up the week.

I just hope I can sleep without visions of RASM, CASM, and yield dancing in my head.

Behave yourselves tonight.

Talk to you later.

PBB Posting Update

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While I advised subscribers last week that I would be posting later than normal because of my travel schedule earlier in the week, just a reminder. We will be posting this week’s issue of PlaneBusiness Banter either later today or this weekend.

Yep.

Obviously, because I have to get mentally prepared for the Tennessee/Alabama game Saturday, my preference is to get this issue out sooner than later.

But having four big airlines’ earnings transcripts and numbers to dissect is not a job that can be rushed.

No, no, no.

Kind of like making fine wine. One has to take one’s time doing the task.

Yep.

Something like that.

(I’m off to get the boots out of the closet. It’s getting a little deep around here.)

In the meantime, enjoy your Friday. We’ll be back later.