Tag Archives: bankruptcy

PlaneBusiness Banter Now Posted!

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Good evening everyone. This week’s issue of PlaneBusiness Banter is now posted.

We’re almost done with 3Q earnings reports. This week we take an in-depth look at the recent earnings reported by two regional holding companies — Republic and Skywest.

We also have earnings summaries for WestJet and Air Canada. We’ll finish up the 3Q earnings parade in our next issue when we take a longer look at the results that both Canadian carriers posted.

In other news, the finalized tentative agreement between United Airlines and its two pilot groups hit the streets this week — and it is a monster. 500 pages long. I do believe this is a new record page length for tentative agreements.

We have not spent that much time with the TA, but at first blush it looks like a rather rich contract. Translation: This thing needs to pass.

On the other side of the universe, meanwhile, the negotiators at the Allied Pilots Association and American Airlines have come to terms on what is called an “Agreement in Principle.” The APA Board will meet Friday to vote on whether to send the proposal out as a TA to the rank and file.

But the biggest news this week concerns New York. Tuesday US Airways presented its argument as to why a merger with it is the best alternative to the AMR Unsecured Creditors Committee. Wednesday, American had its turn to convince the UCC why its “stand-alone” plan is the best alternative.

I find it extremely telling that the UCC would push forward with this — with no pilot contract in hand. It says to me we may hear something sooner than later from the UCC in regard to which proposal it favors.

You know where my money is on all this.

We have other earnings that we discuss this week including those from Emirates, LATAM, and Ryanair.

We also take a look at the sad state of affairs at SAS. The airline has given employees until Sunday to agree to draconian cuts in pay and pension benefits. Otherwise, a credit line that has been promised to the airline will not be forthcoming.

All this, DOT results from September (Delta kicked some ass, American fell apart and United managed to pick up a little ground) and much, much more in this week’s issue of PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

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Hello everyone. This week’s issue of PlaneBusiness Banter is now posted.

I’m not going to wax too poetic this evening, as I need to get up and out tomorrow for a trip to Las Vegas, where I will be presenting at Travel and Transport’s Fall Client Advisory Council.

So here is our Cliff Note’s version of this week’s issue.

American Airlines — check.

United Airlines — check.

Southwest Airlines — check.

Delta Air Lines — check

Emirates — check.

Randy Babbitt — check.

Steve Lott — check.

DOT Airline Consumer Travel Report numbers for August — check.

Airline stocks had a rather uneventful week last week — check.

Why We Think American Asking For An Additional 30 Days of Exclusivity Is Not A Bad Thing — check

Why This Week Is The Week A Pilot Contract Needs To Be Negotiated At American — check

What American Airlines’ Employees Attending A Branding Session on “Tone” Are Being Asked To Sign Before They Go — check

A New Airline Leasing Entity Is Poised To Become The Third Largest in the World — check

Have I piqued your curiousity yet? Well then you need to read this week’s issue of PlaneBusiness Banter.

If you’re not a subscriber already, what are you waiting for?

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpgHello everyone. This week’s issue of PlaneBusiness Banter is now posted. This week we take a detailed look at the recent earnings releases from United Continental Holdings, Delta Air Lines, US Airways and JetBlue.

We also see how both Ryanair and Air France/KLM fared during the last quarter.

Meanwhile, we have PlaneBusiness Earnings Summaries posted for Republic, Spirit, Hawaiian and Allegiant. Next week we’ll get you caught up on all the airlines that have reported so far for the quarter.

In breaking news tonight, it does appear that there is a tentative agreement between United Airlines and its two pilot groups. Not a lot of details out there yet, but this is certainly good news for the airline. Clearly the deal will have to be approved by the rank and file and we have no idea what will happen at this point. All we know is that it is good news that an agreement is in place.

United was also in the news this week as the airline rolled out its new beautiful Boeing 787 out in Seattle.

While that was good news, the not-so-good news for Boeing was a test of a 787, slated to be delivered to Air India which saw debris from its engine start a grass fare at the Charleston International Airport. Unlike the Trent 1000s that ANA just had to have work done, these were GE engines.

Allegiant Travel announced this last week that is is going to be taking on Airbus A319 aircraft — some are coming from Cebu, others from easyJet. Looks like this is the first move by Allegiant to begin shifting away from the Maddogs.

Even more airplane news as Delta brings the hammer down on SkyWest (Delta CEO Richard Anderson told everyone — repeatedly– in the airline’s earnings call last week that yes, this could be done. And yes, it was done.)

Airline stocks had a so-so week last week, with shares of United getting hammered. Analysts don’t like it when airlines produce revenue results that lag everyone else.

In the AMR Bankruptcy Follies this week, we talk about Tom Horton’s latest Magical Mystery PR tour and how he sounds just a tad desperate as he attempts now to “reposition” the message. We argue he only makes things worse — both for him and the airline.

Oh, we have a lot more than this to talk about, but this gets us started.

Subscribers can access this week’s issue of PlaneBusiness Banter here.

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpg Hello everyone. A very short preview of this week’s issue tonight. I have a good reason. I have to get on an plane early in the morning. And I have to be coherent when I get off the plane. The clock is not my friend at this point.

So — here is a quick overview. American Airlines and its bankruptcy? Check. United’s new 787 livery? Check. United’s continuing operational problems? Check. Delta, Southwest and Boeing finally make the 717 deal official and Delta gives more details on how the aircraft are going to be configured and how they are going to be deployed. Check.
Then there is Farnborough. Will United go with Boeing or Airbus? I think the answer is pretty obvious. Not a very well-kept secret.
I attended the recent Association of Travel Marketing Executives Conference in Chicago where I spoke about the current state of the airline industry. This week I give you an overview of the opening presentations and why I thought the conference was a worthwhile event.
Five years? Really? American is hanging banners in airports talking about how it is working on giving passengers the industry’s youngest fleet ….in five years?
Airline stocks had a pretty good week last week. We’ll tell you who picked up the most ground and who dropped back.
All this and much, much, more in this week’s issue of PlaneBusiness Banter!

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpg Hello everyone. Happy Fourth of July! This week’s holiday issue of PlaneBusiness Banter is now posted.

This week we take a look at the latest news from American Airlines bankruptcy, including the extension for exclusivity that the airline and the Unsecured Creditors Committee have agreed to. Does this change anything? We think not, and we explain all the fine print of what it does mean.

Meanwhile, as expected, the board of directors of the Allied Pilots Association voted to send out the last best tentative agreement with the company to the rank and file for a vote. All of that will take us into August — one of the main reasons the exclusivity date was pushed back.

The “intensive” two week closed doors locked-down negotiations between the pilots at Continental, United, and the airline came to a close last week. But no contract was to be had. We are still optimistic, and we think the timing of the announcement concerning the results of the Delta Air Lines‘ pilot contract had a bit to do with what happened here as well.

Meanwhile, while all this was going on, Holly was in Chicago last week, attending and speaking at the Association of Travel Marketing Executives conference. More on all that in the our next issue. While I was in Chicago, I also got to take a tour of the United Airlines new network operations center. Wow. What a trip that place is. More on all that in this week’s issue as well.

In our AMR Bankruptcy Follies column this week, we tip our hat to our customary “Ode to a Hot Dog” column and give it a new twist, as we explore the top ten reasons American Airlines’ CEO Tom Horton doesn’t like hot dogs.

And oh, then there were the first quarter earnings that Virgin America issued on Tuesday afternoon. Yep, that’s right. The old “Vanguard” method. You know how that works. You issue bad earnings news on a day when no one is paying much attention. Like on the afternoon before July 4th.

That’s okay. We were paying attention, as were some of our subscribers.

The numbers were, in a nutshell, horrible. We ask — how long can this operation continue?

All this and more, including our second quarter airline stock performance review (in which US Airways handily took top honors) in this week’s issue of PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

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Good evening earthlings. This week’s edition of PlaneBusiness Banter is now posted.

While yours truly enjoys her digs in Chicago this week, as I hang with the folks at the American Travel Marketing Executives Conference and United Airlines, there is a lot going on in my usual environs down in the DFW Metromess.

This week I tell you why I think the board of the Allied Pilots Association will vote this week to send a contract proposal between it and American Airlines out for a vote. I explain why this does not mean that the APA no longer supports a merger deal with US Airways. And, I also talk about why, if you are a drama queen, you will certainly like July. We ain’t seen nothin’ yet folks.

In our AMR Bankruptcy Follies column this week, I take a look at two recent articles/editorials in the Ft. Worth Star-Telegram. We are not impressed when people who should know better treat a complex bankruptcy situation with such obvious disregard for the facts.

Meanwhile, downunder, Qantas CEO Alan Joyce was yelling loud and clear last week about the dangers of Etihad buying into Virgin Australia. While usually I listen to these types of complaints with a very skeptical ear — in this case Joyce may have a good point. Etihad could, if it wanted, purchase 100% of Virgin Australia. But Qantas is limited in how much foreign investment it can accept.

No doubt about it. Australia has become a hugely competitive market — both in terms of its international routes and on the domestic front.

In our email bag this week, we’re talking about whether or not yet another suitor could come out of the woods for American Airlines, and we discuss the potential for further changes in the United Airlines‘ C-Suite.

On Wall Street last week, airline stocks frolicked, as the price of both crude oil and jet fuel dropped dramatically. Who were the biggest gainers? We’ll let you know.

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


American Airlines Bankruptcy Proceeding Begins

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It’s a packed house in Manhattan this morning as U.S. Bankruptcy Judge Sean Lane opens up the airline’s Section 1113c hearing.

Apparently the crowd is so large, they have opened up two “overflow” rooms.

I am not in New York. I am in the lovely confines of Slidell, LA, just outside of New Orleans, where my Dad is now in the hospital, awaiting transfer into a physical rehabilitation program, after suffering three falls in one week.

But fear not.

The intrepid Terry Maxon, reporter for the Dallas Morning News is on the ground there, as is Scott Mayerowitz with the Associated Press.

Scott is the more prolific tweeter of the two. Terry — he’s still getting used to the Tweetie thing.

Scott can be followed at @globetrotScott

But I would strongly recommend you follow Terry’s blog posts. You can find them here.

We also have a couple of folks on the scene (our stellar cast of PlaneBusiness undercover correspondents) and if we hear any particular tidbits of note, we will tweet them. If you don’t follow us on the Tweetie yet, our account is @planebusiness.

Speaking of, what do you think Captain Dave Bates, president of the Allied Pilots Association, thought, when he realized Terry was on the same plane to New York as he was on Sunday?

Surprise!

You can read Terry’s comments about their short “leaving the aircraft” interview here.

Good read. I continue to be impressed with Dave Bates and the way in which the APA has handled themselves over the last few weeks. No histrionics. No union/management posturing. No “looking toward the past.” Just a very methodical and business-like way of approaching the options in front of them.

What a refreshing and, I would add, much needed change.

Captain Bates and I spent some time together when we were both at the recent Phoenix Sky Harbor Airline Symposium . I came away impressed with his take on the situation then. I remain impressed.

PlaneBusiness Banter Now Posted!

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Hello everyone.

This week’s issue of PlaneBusiness Banter is now posted.

This week we are talking a lot about — what else? American Airlines and whether the airline should continue in its attempt to come out of bankruptcy as a standalone carrier. Or if, perhaps, it should listen to what many Wall Street analysts are saying, what we are saying, and what a lot of employees believe — that a merged entity would provide a better opportunity for the airline.

Not only that, but an agreement pertaining to a merged entity would then allow the airline to use bankruptcy to tailor the airline more effectively. And efficiently — taking into account the much larger airline that would be created.

This last week the airline and its handlers definitely went on the offensive as it attempted to sway opinion using old-school PR tactics. The attempts didn’t gain much traction, and we talk about why they didn’t. Short reason: you just can’t do that kind of stuff today and expect it to hold up. Times have changed.

In addition, the unions at American came out with their own missives last week, including one in which it implored politicians who don’t know what they are talking about to not comment on anything to do with the bankruptcy. Until all the facts are known.

I have never seen all three major unions at a bankrupt airline appear to be so in synch in a situation like this. Not a good thing if you are Tom Horton. I don’t think his recent exhortations to the pilots to “put the war paint on” had its intended result. In fact, I think it backfired.

Monday, all interested parties will be in bankruptcy court in Manhattan. From that point on, the timing is a bit nebulous, but if I were to guess, I would guess that US Airways will need to come forth in some fashion next week, if it is indeed serious in making an attempt at a merger.

American is slated to open up the hearing Monday with their side of the story, followed by presentations from the airline’s three unions. But that schedule may not be followed. Stay tuned.

But there was a lot of other news last week, including a standing-room only crowd down in Houston, where the Houston City Council took their first stab at a decision on whether or not Southwest Airlines should be allowed to fly internationally out of Hobby Airport.

As I say in this week’s issue, you rarely see consultants’ work so publicly ripped to pieces as members of the Council did this week. But that’s exactly what happened. They’ll be a rematch in about two weeks, at which time United Airlines will present its side of the story, and its study.

Speaking of Southwest Airlines, we hear that the airline should announce a new IT deal on Thursday. Or as one of our SWA friends put it in an email, “The ranking of the airline’s priorities has apparently changed.”

PBB subscribers will get the joke.

We had news this last week of yet another CFO departure, and late today, we heard that there will be another CEO departure in the next couple of months.

We also had an analyst change addresses.

Change, change, and more change.

That was certainly true with this month’s DOT Air Travel Consumer Report. The March numbers had a brand new denizen at the top of the on-time departure and lost bags rankings — Virgin America.

Meanwhile, on Wall Street, airline stocks were a bit down for the week, as was the market as a whole. Jet fuel rose modestly for the week.

Finally, my apologies for the delay in publishing this week, but we had an incident involving PlaneDad that kept us more or less occupied all day Monday and somewhat on Tuesday. He fell. No phone was accessible. He lives alone. He’s 92. Seventeen hours on the floor. He’s now in the hospital. Yours truly will be returning to New Orleans later tomorrow. You get the picture.

And yeah, it’s not a particularly pretty one.

Sigh.

On that note — go read this week’s issue of PBB. And if you are not a subscriber — why not?

Five Things I Know About the American Airlines Bankruptcy




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This much I know is true about the American Airlines bankruptcy.

1) With another record number of pilots about to opt for retirement on Dec. 1, the company could ill afford another run on cash reserves

2) The company can talk about “costs” all it wants, but the airline has systemic network and revenue problems it has yet to effectively address. Even if labor costs and productivity were “righted” — airline would only break even at current revenue levels

3) Gerard Arpey had to leave. No option.

4) Expect to see a number of other high-level departures from the AMR C suite.

5) While the pilots have taken the brunt of recent headlines, I suspect it will be the flight attendant group that will be faced with the harsher changes to their contracts as part of bankruptcy process.

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PlaneBusiness Banter subscribers — this week’s re-written <!> issue will be posted later today.

Meanwhile, for our latest take on the American situation, please join our Twitter feed at @planebusiness.

Mexicana Labor Unions Say No: Airline Files for Bankruptcy Protection

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I am sitting here waiting for the final edits to be completed on what is, without a doubt, the largest earnings issue of PlaneBusiness Banter we’ve ever had. More on that in a bit.

But in the meantime, an update on a story we talk about in this week’s issue. Mexicana Airlines just filed for bankruptcy.

The airline had given its unions a kind of “the worse of two evils” ultimatum last week and the unions didn’t bite. As a result the airline is now in bankruptcy, and we have been told by more than one PBB subscriber that the airline has already had a handful of planes repossessed. One thing the bankruptcy filing will do is prevent additional aircraft seizures.

This news comes just days after the FAA dinged the Mexican aviation safety rating to a number “2.”

The FAA action means two things. One, until it changes, it means that Mexican airlines cannot expand their service into the U.S. But secondly, it means that existing codeshare agreements between U.S. carriers and Mexican carriers are now on the shelf.

Delta Air Lines currently codeshares with Aeromexico and American Airlines has a codesharing agreement with Mexicana.

But we can’t forget Southwest Airlines, which was, at some point in the future, slated to start a new codesharing agreement with Volaris, yet another Mexican airline.