Monthly Archives: April 2015

PlaneBusiness Banter Now Posted!

home-typewriter copy 1Hello everyone. While last week we talked about the Germanwings crash, (and the hyped-up coverage we wish would just stop from CNN), this week we’re talking a lot about labor. Delta, United, American, Allegiant. One thing is a given in this industry. Just when you think things have quieted down or are under control — they come apart at the seams.

No question that the biggest labor-related shocker last week was the news that the International Association of Machinists were pulling their request to the National Mediation Board for a representational election for the flight attendants at Delta Air Lines. 

Problems with signatures? Problem with cards? We haven’t heard the last of this yet.

Whatever the reason, this means the IAM will now have to wait 12 months before they can try again.

In more positive news, American Airlines received its SOC on Wednesday of this week — on schedule. Exactly. To the day. Seriously. The airline set up the schedule of deadlines for each of the nine sections of the process back in 2013, and Wednesday was the date targeted for the awarding of the certificate.

Pretty impressive.


In other news, we’re getting more clarity on how the U.S. airline industry’s 1Q15 results are shaping up.  Delta surprised last week with less than expected PRASM estimates and higher than expected cost levels. But Thursday morning United Airlines guided to better than expected PRASM numbers and lower costs. Southwest Airlines also reported March PRASM estimate. They were pretty much in-line.

Delta Air Lines opens up the 1Q15 earnings report season next Wednesday.

In our opinion column this week we take on the issue of major air transportation reform. The Open Skies Squabble is one thing. But major transformative changes are desperately needed in the U.S. airline/governmental relationship.

Two weeks ago former American Airlines CEO and Chairman Bob Crandall spoke at the Wings Club about this topic. We reference his comments and give you our take on how the FAA could be, and should be restructured so that reforms such as NextGen can become a reality.

Meanwhile, which U.S. airline saw shares drop dramatically last week? Goat of the Week honors went to Allegiant. We’ll tell you why.

All this and more in this week’s issue of PlaneBusiness Banter!