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October 05, 2007

DOT official: Airplanes should let stranded passengers off the plane

Business Travel News is reporting that an inspector general for the U.S. Department of Transportation said that the federal goverment should require the airlines to let folks off the plane after a delays of "extended periods."

"All airlines need to specify in detail the efforts that will be made to get passengers off the aircraft when delayed for extended periods, either before departure or after arrival," Transportation Department Inspector General Calvin Scovel III said.

The travel magazine notes that the Air Transport Association, a trade group representing the major airlines, has opposed legislation that would do what Mr. Scovel is recommending.

In some cases, notably last winter when an American Airlines plane was diverted to, and got held for several hours in Austin, the carriers haven't had available gates to deplane passengers.

Airlines have also argued that by deplaning passengers, they may miss their place in line to take-off, disrupting the schedule even further.


The downside of fuller airplanes

Ray Neidl of Calyon Securities points out many positives from September's traffic numbers.

But the airline analyst also notes the negatives:

These load factors are clearly taking their toll on the aviation infrastructure in the United States given the continued disappointing on-time performance as reported by the DOT in the last couple months. The effects of flight cancellations are multiplied due to the difficulty in reassigning passengers to different flights.

We continue to believe the best recourse will be to trim domestic capacity, which in turn will allow ticket prices to rise. Such a move would place less stress on the national civil aviation infrastructure as well as provide higher yields on domestic routes.

The LCCs have been avoiding the issue of cutting capacity but may be starting to realize that it is a necessary measure.

The LCCs refer to low-cost carriers like JetBlue Airways, Southwest Airlines and AirTran Airways, all of which are still growing. JetBlue and Southwest have reined in their growth a bit, however.

Comments

Another downside is that AA employees have much greater difficulty getting to and from their working stations since it is so much harder to stand-by now.

Posted by: Carter | October 5, 2007 02:23 PM


More grim predictions on air travel congestion

travel luggage
FILE/AP
This CreditSights' report on Research Recap suggests the nation's delay-plagued air system will be here to stay for quite a while.

According to CreditSights, the core issue is that the Federal Aviation Authority has not increased domestic aviation infrastructure capacity, and will not be able to for years if not decades.

According to CreditSights:

“In the meantime, the feds are now planning to restrict volume at key airports, supersize bumped passenger fines, and make stranding flights prohibitively expensive. The airlines will react by cancelling flights at the drop of a hat, stranding passengers everywhere but the runway at no cost. “

Among the report's highlights:
--Congestion in the northeast will lead to slot restrictions at JFK and EWR in addition to LGA and DCA, resulting in fewer flights and higher fares.

--Restrictions at JFK could drive a Delta Airlines acquisition of Jetblue.

--Congestion will lead to more stranded passengers in airports and less on runways as flight cancellations will become more frequent to avoid proposed penalties.

--(This one we know from this last summer) Rebooking will become more difficult in the high load factor environment.


Get even hipper in flight

Start-up Virgin America said Friday that it has entered into an exclusive partnership with Boing Boing TV to provide "cheeky exploration of the world through Internet culture, DIY technology and geeky curiosities" through inflight daily video reports with the same irreverent and eclectic content that has struck a cord with pop culture junkies on BoingBoing.net.

The show, which starts next month, will be free and on-demand on Virgin's inflight entertainment system.

Virgin launched service from San Francisco International Airport on Aug. 7 and currently flies to Los Angeles, Las Vegas, Washington D.C. and New York (JFK)

The carrier has said it will serve as many as 10 cities within its first year. D/FW Airport is among about 40 cities Virgin has said it is considering.


Another Southwest wardrobe flap

Southwest sure is apologizing a lot lately over its fashion sense, this time for asking a Florida passenger to change out of a sexually suggestive T-shirt or risk getting thrown off the plane.

A spokesman said the Dallas-based carrier plans to apologize to Joe Winiecki of Largo, Fla., who said in the AP story that he was sitting in the last row of a Columbus-to-Tampa flight when a Southwest employee told him he had to ditch his T-shirt, turn it inside out, or leave.

According to the story, the shirt, which was purchased in the Virgin Islands, uses sexual double entendre to promote a fictional fishing tackle shop.

Here's a link where you can see the shirt.

I have to admit I always cringe when I see these types of shirts along touristy boardwalks and places like Las Vegas and Bourbon Street, though I'm not sure this crosses the decency line to get on a plane.

Comments

Why is the airline apologizing? They have the right to turn people away if they are not dressed appropriatly. This idiot said they were infringing on his right to free speech. Incorrect, he could wear the shirt or get off of the plane. He has no constitutional right to fly on a private company's airplane.

Posted by: Darin Johnson | October 5, 2007 12:54 PM

I thnk southwest needs to be taken down a little bit. They are getting way too uppity in their thinking they control everything. They need to get back to transporting people & quit trying to be the morality police.

Posted by: Mark | October 5, 2007 01:29 PM

SWA is doing the "right" thing...it's time to have a little class, a little value, a little self-esteem. make my trip safe, happy, and valued too!

Posted by: bill | October 5, 2007 01:36 PM

His shirt wasn't offensive in my opinion. If you don't like it, don't look at it. No one else's business. I don't believe an airline should be able to kick a customer off their airline unless they are a threat to another passenger's safety. That's not their job.

Posted by: Heather | October 5, 2007 02:21 PM

I don't think he should be wearing that shirt since children ride on the planes also. He should have more class than that. Southwest doesn't have to let him fly and good for them.

Posted by: Renita | October 5, 2007 02:31 PM

All this fuss from an airline who serviced peanuts, used the cattle car method of boarding passengers and had flight attendants who wore hot pants. Amazing. Personally, I think the show Airline on A & E has made some of the gate agents hungry for their "5 minutes of fame".

Posted by: Jennifer | October 5, 2007 03:32 PM

Yet another American whom the education system has failed. His compliant that Southwest was abriding his "free speech rights" indicates he doesn't understand the constitution and the first amendment. Southwest is NOT the government -- the only entity to whom the first amendment applies. Southwest may indeed tell him he cannot say something if he wants to do business with Southwest Airlines. The government may not -- except under limited circumstances -- stop him from saying something something. He has NO first amendment to say whatever he wants and to fly on Southwest. Now it might not make business sense for SW Airlines to do this, but there is no protected speech right involved.

Posted by: colorado kool aid | October 5, 2007 03:40 PM


Airplanes fuller in September

Airplanes were a little bit fuller for most of the top 10 U.S. carriers in September.

JetBlue Airways and Alaska Air both reported load factors a little lower. Everyone else filled a greater percentage of their seats last month.

AirTran showed the biggest gain, up 6.7 points to 68.5 percent. Northwest had the highest load factor at 84.5 percent. Southwest had the lowest load factor at 67.7 percent.

What made AirTran's higher load factors remarkable is that it is growing the fastest of the top 10, with capacity (in available seat miles) up 19.3 percent. It can be hard to fill that many extra seats. But AirTran's traffic (revenue passenger miles) was also up, by an impressive 32.3 percent.

Here are the complete numbers for September:

Continue reading "Airplanes fuller in September" »


Traveling green, as long as it isn't too much green

A recent survey released by the Travel Industry Association and Ypartnership shows that more than half of all U.S. adults say they would be more likely to select an airline, rental car or hotel that uses more environmentally friendly products and processes.

Of course, few practice what they preach.

Only 14 percent of survey participants said their actual selection of a travel service supplier would be influenced by that supplier’s efforts to preserve and protect the environment.

And just 13 percent would be willing to pay higher rates or fares to use suppliers who demonstrate environmental responsibility (although fully 56 percent said they might).


How willing someone would pay to be "Green" depends on the premium.

76 percent would pay less than 10 percent more; the majority said they would pay less than 5 percent more.

Suzanne Cook, TIA's senior VP of research said a travel supplier's environmental efforts may attract customers, but "not at a significantly higher fare or rate.”

“The ‘value assessment’ consumers ascribe to any travel service transaction appears to remain the primary determinant of their actual purchase behavior,” she added

Click below to read more about green travel sentiments.

Continue reading "Traveling green, as long as it isn't too much green" »


3 idle thoughts for Friday

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1. The drunken mobs going up and down Commerce Street the night before the Oklahoma-Texas football games were a disgrace to the city of Dallas, the University of Oklahoma and the University of Texas. (I miss it, couches through the hotel windows and all.)
texas_longhorns_logo_clip

2. If the price of oil keeps climbing past $80, it'll make moot any arguments about dividing up airline profits.

3. Speaking of OU-Texas, last weekend did not happen. OU and Texas both had open dates. It's like the time Bobby Ewing came out of the shower. It was all a dream, a bad dream.


October 04, 2007

D/FW wins safety award

D/FW International Airport announced Thursday that it has won the 2007 Airport Safety Award by the Flight Safety Foundation, for "leadership and achievements benefiting aviation safety, both at the Airport and in the wider aviation community."

The award, was a nod to DFW for leading the way in developing safety initiatives -- in particular perimeter taxiways.

Here's what airport CEO Jeff Fegan had to say:

"We are very proud of our safety record and the innovative programs we have put in place that are modeled around the world."blockquote>

The Flight Safety Foundation is composed of more than 1,140 individuals and organizations in 142 countries.

Comments

It should also be worthy of noting that DFW Airport presently exposes more passengers to the risk associated with the crossing of active runways than just about any other airport in the U.S.

In other words, DFW has a more critical need for these perimeter taxiways than most airports. As an aside, Love Field doesn't have this safety problem... airplanes crossing active runways.

Posted by: Wylie H, | October 4, 2007 05:35 PM

I presume Wiley's point is that D/FW Airport has more active runways than just about any other airport.

If you cross an active runway at Love Field, you are truly, truly lost.

Posted by: Terry Maxon | October 4, 2007 06:08 PM


US Airways pilots prepare to go it alone

The US Airways pilots who used to fly for US Airways are asking the National Mediation Board to call an election.

This calls for some explanation. America West Airlines acquired US Airways out of bankruptcy but named the merged company "US Airways." Both America West and US Airways pilots were represented by the Air Line Pilots Association. The two groups needed to merge their seniority lists to form a single US Airways list.

The US Airways half of the equation didn't like the decision from an arbitrator picked to decide the issue. ALPA is backing the arbitration decision. Ergo, the US Airways half, or US Airways East, wants to form a new union, US Airline Pilots Association, to represent the US Airways and America West pilots.

This issue has really got pilots from both sides worked up. Stay tuned.


First signs of Virgin's impact?

Airline analyst Jamie Baker of JP Morgan was unpleasantly surprised by JetBlue's 2 percent growth in RASM, which was "meaningfully below our double-digit expectation, following robust July & August results."

Mr. Baker reduced his third quarter estimates Thursday from 15 cents to 5 cents, well below the concensus estimate of 9 cents.

"Most importantly, we believe September weakness is unique unto JetBlue, related to August’s arrival of Virgin America in key transcon markets," he wrote in a note to investors.

As we reported earlier, Virgin America launched service Aug. 8 from San Francisco International Airport. The carrier service Los Angeles, Las Vegas, Washington D.C. and New York (JFK)



A rant about frequent-flier programs

Public relations guy Eric Starkman raises a number of questions about frequent-flier programs in his blog, not the least of which is why companies are thinking about selling off their frequent-flier programs.

He said he can understand why someone might want to buy a frequent-flier program spun off from some company like American Airlines or United Airlines.

"It’s the other side of the equation that makes no sense to me: Why would anyone want to invest in a company looking to untether the one thing that drove customers’ repeat business?" he asks. "Affinity programs are, after all, the value 'hook' that compels many travelers to book with one airline over another."

He also bemoans the unavailability of frequent-flier travel awards on many airlines. "I might not be Warren Buffet, but I know when someone is flipping me the bird. It is beyond me why people want to have an 'affinity' to companies whose attitude towards customers is 'Let them eat cake.'”


Top travel sites

The folks at CNN have posted Travel +Leisure magazine's top 25 travel sites for planning everything you need for a trip whether its checking the forecast (weather.com), figuring out the exchange rate (xe.com) or talking about international cuisine (chowhound.com).

Sites that let you know when to book a fare (farecompare.com) and where to stay (kayak.com) and where to sit on the plane (seatguru.com) are there too.

Comments

There is another great site out there that you might not be aware of called www.airfarewatchdog.com.

These guys search thousands of fares by hand every day to come up with the best possible deals. They cover all of the discount carriers as well as specials listed only on airline websites. Plus you can sign up for a daily newsletter which let's you know about the best fares from your city.

Worth checking out...

Posted by: Mike Martin | October 4, 2007 09:00 PM


TWU and American end quickie talks

We had a little story Thursday about the Transport Workers Union and American Airlines breaking off their efforts to get a quick contract extension.

A little background and some paraphrasing:


TWU logo.gif

TWU international representative Jim Little warned AA chairman and CEO Gerard Arpey in August that Mr. Little's members weren't happy that they weren't sharing in American's profits. The unstated part of his lettter is that the employees aren't happy that AA's executives were sharing in AA's recovery when employees weren't.

Mr. Arpey said okay, let's see if we can work out something that keeps our joint efforts going and rewards employees. So outside of TWU's usual negotiating committee, the TWU and AA put together a speeded-up discussion.

It didn't result in a deal, which would have been really positive for American, considering that its pilots are talking tough and its three major employee groups all have contract that become amendable on May 1.

Here's the message sent out by TWU leadership:

All AA Local Presidents & Members

On September 17, 2007 American Airlines and the Transport Workers Union began informal, facilitated discussions that may have led to a possible contract extension. Today, Wednesday, October 03, 2007 those informal talks have ended and no agreements have been reached. The TWU has continued preparing for formal talks that will begin in November and is looking forward to advancing the will of their membership.

Here's the full statement from an AA representative:

Over the past few weeks, American Airlines and the TWU held a series of informal, facilitated meetings to discuss a limited number of contract issues. These meetings have concluded and the parties have agreed to proceed into formal negotiations under Section 6 of the Railway Labor Act as originally planned, beginning November 7, 2007.

Continental Airlines gives up rights to NJ center

Continental Airlines Arena is becoming the Izod Center..

Continental Airlines has held the naming rights for the arena in the Meadowlands for 12 years, but wanted out of the deal because one of its primary tenants, the New Jersey Devils, (correction -- I originally had said it was the Nets. Thanks to Mike W.) is moving to Newark.


Continental Airlines Center.jpg

For details on the story, check out this Bloomberg story.

That leaves American Airlines as the leader in naming rights for National Basketball Association venues, with the American Airlines Center in Dallas and the American Airlines Arena in Miami.

But we also have the United Center in Chicago, the US Airways Center in Phoenix (formerly the America West Center until America West merged with US Airways and took the other's name) and the Air Canada Centre in Toronto.

Comments

Actually, it's the New Jersey Devils Hockey team that's moving to Newark and the new Prudential center. The Nets still play there, but they are probably going to move to Brooklyn in a few years.

Posted by: Mike W. | October 4, 2007 02:56 PM


Small plane deaths

Whether it's safer to fly or drive may ultimately depend on who is doing the flying.

A review by the National Transportation Safety Board found that nearly 90 percent of last year's aviation deaths occurred in general aviation aircraft. Altogether, 779 people died.

Other federal agencies also compiled transportation deaths and found 42,642 people were killed on the highways in 2006, down from 43,510 in 2005. Meanwhile, deaths on the rails declined, boating deaths increased and pipeline deaths remained unchanged.


Southwest's Texas-OU results

The results are in, and I'm sorry to say Terry, but UT has won Southwest's annual plane pull.

UT-swa.JPG
Southwest, which is the "Official Airline of the AT&T; Red River Rivalry" invited fans from the University of Texas and the University of Oklahoma (Terry's alma mater) come to its headquarters and compete to see who can pull an 83,000-pound Boeing 737 across 50 yards the fastest.

The folks at Southwest report that the UT team claimed their first victory in the annual showdown with a time of 44 seconds.

I'm an Oregon Ducks fan, so I couldn't care one way or the other.

Here's what Terry had to say on it:

"The contest was fixed, just like the cow."
Comments

It's OU-Texas. A common mistake made by non-native southwesterners.

Posted by: Terry Maxon | October 4, 2007 02:48 PM

For those bloggers who took a peek on this item earlier, you'll note there was an infiltrator blogger (ahem, Terry) who added his OU logo.

I've since "fixed" it so that the winner of the plane pull was up there instead. We apologize for any confusion about who won.

Posted by: Suzanne Marta | October 4, 2007 03:02 PM

only southwest...gotta love them

Posted by: sammy | October 4, 2007 03:35 PM


Analysts look at fuel, cut outlook for some airlines

The rising cost of fuel is prompting a bit more pessism for airlines by Raymond James analysts James D. Parker and Duane Pfennigwerth

In a report this morning, the firm cut its recommendation on AirTran Airways from "out-perform" to "market perform," even though the analysts increased their third-quarter earnings estimate two cents to 17 cents.

Raymond James also lowered the target stock prices for Ryanair, Allegiant Air and Southwest Airlines, and lowered earnings estimates for AirTran, Allegiant, Southwest, Frontier Airlines for the fourth quarter.

Continue reading "Analysts look at fuel, cut outlook for some airlines" »


Northwest Airlines packs them in

Not every big airline has reported, but I think we can give the Airline Sausage Award to Northwest Airlines for September.

Northwest filled 84.5 percent of its seats last month, up 2.3 points from September 2006 and a full 4.3 points better than its nearest contender, United Airlines.

It really packed those international routes -- 88.3 percent for its flights to Asia, 88.8 percent for flights to Europe. American by comparison had load factors of 83.5 percent to the Pacific and 82.3 percent to Europe.


Airline delays -- maybe you don't really want to know

MSNBC columnist James Wysong, a flight attendant and author, raises the question about whether travelers really want to know why their flight is late.

Mr. Wysong, tongue in cheek, posts some possible announcements from the pilot if the airline was completely truthful. Two of my favorites:

"We are canceling this flight because we need this airplane to fly to a more lucrative destination with more booked passengers."

"The whatchamacallit won't fit into the doohickey, so we have to have a new doohickey flown in from Missoula, Mont., but the next flight doesn't leave from there until tomorrow night."

Read the full column here.


October 03, 2007

Engine fire investigation

The National Transportation Safety Board is investigating an engine fire that occurred last Friday on an American Airlines MD-80 as it took off from Lambert-St. Louis International Airport.

The plane returned to the airport, landed safely and no one was hurt.

NTSB investigators say they want to see if any mechanical factors played a role in the incident. They also want to look at evacuation procedures and response by the airport fire-fighting unit.

P.S. from Terry Maxon:

The Allied Pilots Association, which represents American’s pilots, took note of the incident, with a poke at management. Said the union in its hotline Tuesday:

After a single-engine go-around prompted by the failure of the nose gear to extend, ORD Captain Steve Garbe and STL First Officer Kevin May did an outstanding job in returning their crippled S80 to the runway and—with the able assistance of the flight attendants—safely deplaning the passengers. Well done!

Why our crew’s exemplary performance failed to merit even a brief mention in the most recent Flight Department hotline is frankly baffling. This airline should celebrate our pilots’ ability to get the job done, particularly under the kind of difficult and demanding circumstances that Captain Garbe and First Officer May faced last Friday.

Comments

An internal company e-mail went out to every AA pilot in regard to this incident. In part, here is what it said: "THANKS TO THE PROFESSIONAL RESPONSE OF THE CAPTAIN AND THE FIRST OFFICER..." Seems to me like recognition of "exemplary performance."

Posted by: Carmen Villani | October 3, 2007 09:05 PM

An internal email DOES NOT put a public face on what is arguably one of the most difficult situations a pilot can face; a single engine go around with a landing gear problem and the other engine possibly in flames. Those passengers were in peril, and the emergency manuals don't cover those situations.
Had it gone the other way, I have no doubt the uneducated watchers would have been pulling out the "pilot error" card; its kind of hard to defend against that when one is dead.
Of course, putting pilots front and center after an incident like that might add more validity to the APA position, and AA management cannot have that, can they?

Posted by: Randy | October 4, 2007 08:47 AM


More on Southwest's accident at Chicago Midway

The National Transportation Safety Board has posted more information on the Dec. 8, 2005, accident in which a Southwest Airlines jet slid off the end of a Chicago Midway runway.

Here's an animated recreation of the accident.

Here are the presentations made to the board.

Here is the board's press release that puts most of the blame on the pilots, a lack of information and inadequate training. We've abstracted part of the press release below.

Continue reading "More on Southwest's accident at Chicago Midway" »


US Airways pulls down in Pittsburgh

US Airways Inc. said it’s going to reduce its Pittsburgh schedule to 22 mainline flights in January, and its regional partners will go to 46 daily flights. It has been flying 31 mainline and 77 regional flights.

US Airways logo.jpg
For those without a calculator handy, that’s a 29 percent reduction for US Airways, 40 percent for its regional partners and a 37 percent reduction, from 108 flights to 68, overall.

Pittsburgh used to be one of the apples of US Airways’ eye. It was one of US Airways’ two biggest hubs, with Charlotte, N.C., and the carrier opened an $800 million terminal there in 1992. It had an maintenance base, operations center and other facilities there.

Ted Reed from TheStreet.com advises me that US Airways had a peak of about 550 daily departures from Pittsburgh before the Sept. 11, 2001, attacks.

But US Airways has had hard times since its heyday. It’s gone into bankruptcy a couple of times, and was acquired two years ago by America West Airlines, which then took the US Airways name.

Says US Airways chairman and chief executive officer Doug Parker:

Continue reading "US Airways pulls down in Pittsburgh" »

Comments

I'll never understand why USAir went with Philadelphia over PIT. PIT is easier to navigate, better capacity, and not as crowded at PHI. Maybe its an East Coast thing, but I've slept too many times on the floor of the Philadelphia airport courtesy of USAir.

Posted by: Scott Piepenburg | October 3, 2007 12:11 PM

Scott, the answer is in your question. It's US Air. The folks who run that company are incompetent, and it hasn't gotten better since they merged with America Worst uh West. The only thing I can think of is that Philly is closer to the NY market. Otherwise everything about the Pittsburgh Airport is superior from comfort to shopping. And that is saying something because Philly actually has good shopping.

Posted by: Mike W. | October 3, 2007 03:03 PM

The take down of Pittsburgh by US Airways is not about incompetency, in fact it is about smart airline economics.

The US air transportation market does not need Pittsburgh and that can be said for any number of the connecting hubs in cities with small population bases that remain. Some of what has led to financial woes of the industry is the fact that we are arguably overconnected.

PHL is a far superior market to PIT. It actually has a large and affluent local traffic base and a catchement area with similar attributes whereas PIT is dependent on a catchment area that includes Weirton WV. Yes, hub decisions are difficult for people living in the city that have come to believe that they are entitled to more service than the market can support - and that is true in any hub city. Employees also are negatively impacted as they will probably be forced to uproot their lives assuming that they want to stay in the employ of the company.

But suffice it to say this is a good airline decision for a company looking to rationalize its route network and improve its economics.

Posted by: William Swelbar | October 3, 2007 04:41 PM

The reason PHL is favored over PIT is O & D (origination and destination) traffic. The area around PHL has far more population (and hence O&D; traffic) than around PIT. Plus the PIT hub competes with Delta's hub at CVG for O&D; traffic.

Posted by: Jerry H | October 4, 2007 02:29 AM

The baggage debacle in Philadelphia in 2004 was foretold to USAIRways for years previous by the ground employees and they haven't yet rectified from it. The Pittsburgh downgrade is another feeble attempt for them to grasp at straws. The holidays are coming and delays for passengers will be imminate, and with fewer flights to a connecting hub the baggage problems will be monsterous! 2004 will seem like a newborn compared to the full grown version this traveling season.

Posted by: Rick P. | October 4, 2007 03:58 AM


Another month, more delays for airline industry

The best thing you can say about the U.S. airline industry's delays and cancellations in August is that the carriers did better than they did in July.

Other than that, it was pretty bad. Here's our story.

For the record, 71.1 percent of flights were on time, meaning within 15 minutes of schedule. In July, that number was 69.8 percent. A year earlier, the carriers posted a 75.8 percent mark.

Below, we've put the rankings for the month.

Continue reading "Another month, more delays for airline industry" »


No September record for Southwest Airlines

Southwest Airlines didn't set a record for load factors in September. But last month was its second best September ever. (Here's our story on Southwest's traffic results.)

Southwest filled 67.7 percent of its seats last month, up 0.5 points from September 2006. That 67.7 percent trails only September 1996, when Southwest had a 70.6 percent load factor.

Of course, the carrier set records for passenger traffic (revenue passenger miles) and capacity (available seat miles). Growing airlines like Southwest tend to set a monthly record every month in those categories.

Below, we've got a chart of Southwest's Septembers for a ways back.

Continue reading "No September record for Southwest Airlines" »


Brancatelli: Forget fancy hotel soap, give me a hook

Longtime travel writer Joe Brancatelli says he's seen plenty of fancy amenities such as pillow menus and chocolate concierges as hotels work to bolster their appeal.

But many hotels still lack some basics frequent travelers really want, according to this story on Portfolio.com.

Among these "basics" outlined by Mr. Brancatelli are "at least one strong hook" to hang a garment bag, in-room coffee makers, easy access to power outlets and Internet jacks, and space in the mini-bar to put your own items.

So, fellow travelers, what else should be on this list?


October 02, 2007

American's pilots will make new proposals to airline

It was expected, but negotiators for the Allied Pilots Association informed American Airlines management Tuesday that the union will be changing its contract proposal.

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Newly elected APA president Lloyd Hill had called on the union to put proceedings on hold shortly after he took office July so the union could rethink its offers already on the table.

The union's original pay proposal had been for the airline to raise pay rates by 30.5 percent, plus annual raises, plus signing bonuses, etc. Mr. Hill, a Miami-based pilot, had expressed concerns that that proposal would bring pilots back to where they were in 2003, without taking into account the effects of inflation in the years before 2003.

However, APA leaders have given no indication about how the proposal would look after the reworking.

Continue reading "American's pilots will make new proposals to airline" »

Comments

Why does the APA not want full disclosure from its employer (AA) to its employees (pilots). When the APA sent out their survey, it was requesting input. By putting their proposal out to the public, AA management is opening the door to a better understanding between the parties.
As for negotiation meetings 3 times a week, could there be a bigger waste of time? I mean, really, this isn't the Middle East Peace Accords. Do the negotiations have to be so adversarial?

Posted by: grut | October 3, 2007 03:10 PM


Your own personal visitor guide

The visitor information centers at Dallas/Fort Worth International Airport may soon get an upgrade.

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The D/FW Airport board is expected to approve a new contract with a division of Clear Channel on Thursday that would include some $1 million in upgrades to the existing 21 centers, plus one new one at the rental car center.

The new centers would have flashy touch-screen monitors, and a 70-inch screen TV that could play ads of area vendors.

The centers will also have a system that would use Bluetooth technology to send visitor guides to a PDA, smart phone or other Bluetooth enabled device.

Don't worry, it won't be like the sci-fi movie "Minority Report", where personalized ads are blasted at Tom Cruise as he walks past retail stores.

Continue reading "Your own personal visitor guide" »

Comments

So whats the latest on DFW's fight with UA ? I know they want them to move out of Terminal B so Eagle can have the whole thing. Rumors have it UA won't move...

Posted by: Tim ONeil | October 3, 2007 12:13 PM


American Airlines loads them up again

American Airlines has posted its September traffic numbers, and it looks like another record for load factors -- load factors meaning the percentage of seats filled by paying passengers.

American filled 78.4 percent of its seats last month, up 2.9 points from September 2006 and the highest September loads in its history.

Here are the September loads since 2000:

2007 78.4%
2006 75.5%
2005 76.2%
2004 73.4%
2003 66.7%
2002 63.9%
2001 59.6%
2000 69.8%
Comments

Yikers! Those planes are getting really crowded.

Posted by: Wylie H. | October 3, 2007 01:20 PM


Safety board puts some blame on Southwest pilots in Chicago crash

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The National Transportation Safety Board found some fault with the Southwest Airlines pilots who were at the controls in December 2005 when a Boeing 737 jet slid off the end of a Chicago Midway Airport runway.

But there was a number of things at play in the accident, and board members were trying to weigh all the factors.

Here's our story by staff writer Dave Michaels.


Comments

Southwest may stress the "safety" factor, but as the "former American Airlines pilot" pointed out, there is a strong pressure to land the aircraft at a "home" city where the airline can service it. Landing at O'Hare or another nearby airport would have been the "conservative" thing to do, but by landing at O'Hare, Southwest would have to depend on someone else to service the plane, incuring a significant cost hit. Also, the pilots were "unfamiliar with the new braking system." If they were type-certified, then this should not have been a problem. Yes, the pilots made mistakes and yes, they should not have landed there, but it is sad that Southwest corporate structure to "save money" seems to have dodged the bullet again, as well as the fact that Midway is just too small for what is being asked of it. Can't fault the aircraft though; it did what it could do, and COULD have done what it needed to do if it would have been allowed to do so.

Posted by: Scott Piepenburg | October 3, 2007 09:28 AM

Scott, that's a load of garbage. I know you'd love to paint a picture of Southwest's financial success stemming from a culture of safety second and bottom line first. Southwest has three priorities, Safety first, Safety second and Safety third. The company goes above and beyond with resources and training; sparing no expense to make sure safety is always first. Southwest's safety record is unmatched and that's a product of their corporate culture. I can't say as much for the safety record at AA.

Posted by: DNative | October 3, 2007 01:20 PM

Perhaps DNative needs to go back and read the full report. True, I am not a big fan of Southwest, particularly with the "humorous" safety announcements they are known for and yes, I respect that they have not had a fatal incident, but the reality remains that the pilots were not trained in the aircraft properly, there was unclear instructions about diversions, and they did not receive accurate information. The brake issue stems from lack of training, the reversers are "automatic" based on touchdown. I would assign more blame to the airport for being below limits, but there was a training issue and it was noted. That goes back to the airline. And Safety First, Second, and Third is not unique to Southwest; it is a common denominator among United States airlines; its what causes many of those delays that we so detest.

Posted by: Scott Piepenburg | October 3, 2007 02:19 PM


You want in First Class? Get behind these jokers

GetThere, a reservations booking brand owned by Sabre Travel Network, has come up with the top ten travel excuses corporate travel managers have heard from business travelers.

GetThere logo.gif
We're talking about people who wanted to fly in First Class, get a bigger car or otherwise do stuff that violates the corporate travel policies.

The corporate travel people have to police the rules, or else the $298 round trip to New York turns into a $1,298 round trip, and the assistant deputy comptroller is staying in the Ritz Carlton rather than the LaQuinta Inn & Suites.

1. “I upgraded to First Class because I can’t afford the drinks in Coach.”

2. “Do you know who I am? If you did you would not ask me why I travel First Class.”

Continue reading "You want in First Class? Get behind these jokers" »


Leave your laptop in the bag at airport security

One company thinks it has the answer.

Check it out on our Tech Blog.


It's easy to remember: 1-800-FLIGHTS

Here’s a new service that’s going to save me $1.50 every time I go to the airport.

It’s 1-800-FLIGHTS. In return for listening to a short advertisement, the voice-activated number gives you free up-to-date flight status and gate information for flights on 141 domestic and international airlines.


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I tested it out and it seems to work. It even lets you shout your answers with venomous rage at the computer voice, something I do regularly to relieve frustration. (Prediction: Eliminating robot abuse will be the civil rights issue of the 22nd century.)

But the best part of 1-800-FLIGHTS: The number is easy to remember.

So the next time I’m on the way to the airport, instead of calling 411 on my cell phone to get American Airlines' flight information number, and letting Verizon charge me $1.50, or whatever they’re gouging us for these days, I’ll just be dialing 1-800-FLIGHTS for my gate information.

Why, you might ask, do I have to get my gate information before I get to the airport? Well, you must not be from Texas!

Continue reading "It's easy to remember: 1-800-FLIGHTS" »

Comments

Don't forget to mention that even if you get the gate number before you left home that's no guarantee that it will be the same number when you get to the airport.

Posted by: Theresa Solis | October 3, 2007 08:00 AM

I've used the notification service from AA every time I've flown and found it to be a life-saver. What is really ironic is that it alerts me to a delayed takeoff even before passengers on the plane know that it's going to be delayed. And it doesn't cost me anything.

Posted by: Scott Piepenburg | October 3, 2007 09:30 AM


Indian man sells tickets for grounded airplane

arewethereyet.jpg

(SOURCE: Gizmodo)

Retired Indian Airlines engineer Bahadur Chand Gupta has come up with a brilliant business plan: he bought a junky old Airbus A300, parked it, and charges a couple bucks for people to climb on board and get a fleeting taste of the visceral "thrill" of air travel.

Say what you will about the missing wing, non-functioning bathrooms, the naive quotes from poor people lining up (Jasmine, a young teacher, had been longing to go on a plane. “It is much more beautiful than I ever imagined,” she said.) to listen to Gupta narrate the details of a faux trip, complete with turbulence warnings.

But you can't deny this simple fact:

At least these folks get a meal service.

Comments

Jay Leno mentioned this last night. We have this in the U.S., too; it's called Jet Blue.

Posted by: aamilesslave | October 4, 2007 09:56 AM


Plan more time to check bags on Delta

Starting Oct. 15, travelers on Delta Air Lines will need to plan to get to the airport a bit earlier if they're checking bags.

The Atlanta-based carrier will increase its cut-off time for checking bags from 30 minutes to 45 minutes in several of its airports, according to a story in Travel Weekly.

The change is an effort to reduce the number of mishandled bags.

Delta's 45 minute rule will apply to its operations at JFK, Las Vegas, Los Angeles, Atlanta, Orlando and Denver.

Since the liquids restrictions took effect last year, several airlines have reported increases in checked bag volumes.

American Airlines has already implemented 40 and 45 minute cut-off times at several of its airports.


Wall Street's react to Continental's traffic?

Shares in Continental jumped as much as 4.5 percent in early trading, and were hovering around $35.10 around 10:40 a.m. CST.

So what does this say about business going forward?

Airline analyst Jamie Baker of JP Morgan said in a note to investors this morning that although Continental's strength bodes well, largely reflects tickets bought before the credit turmoil in August and growing fears of a recession.

"Put differently," Mr. Baker wrote, "it doesn't do much to answer the all-important question of what consumers and business travelers do next."

He added that JP Morgan Chase's 2008 forecasts are based on an industry RASM growth of 1-2 percent. That compares to growth of 10 percent in 2006 for the industry and growth of 3.8 percent for YTD 2007.


Affluent more likely to revisit favorite destinations

When it comes to travel, monied travelers are most likely to make return visits to the same destinations, according to a story in the online publication Travel Mole .

The site reported that a survey by the U. S. Tour Operators Association showed that a third of affluent travelers -- those with a household income of more than $100,000 -- said they preferred to revisit favorite vacation destinations so they could explore it in depth.

That was slightly higher than 30 percent of households earning $50,000 to $99,000 who said they preferred to repeat vacation spots.

Less than 20 percent of households earning $35,000 or less said they liked to make return trips.

Practical factors played a big role among women and those reporting lower income, who said in the survey that inculding additional meals and sightseeing would motivate them to select packaged travel.

Free hotel room upgrades played a bigger role for travelers age 18-34 and for families with young children.


Continental Airlines posts another record

Continental Airlines says it filled 79.2 percent of its seats in September, up 0.6 points from a year earlier. That's a record September load factor.

Including regional carriers, Continental had a 79.0 percent load factor, also (you guessed it) a record. Last year, It was 78.2 percent.

What analysts will be looking at more is Continental's estimates on unit revenues for the month, and they look pretty good at first glance.

The Houston-based carrier said that September unit revenues should be up 5.5 to 6.5 percent for itself, 4.5 cents to 5.5 cents including regional partners.

It also revised its August estimates on unit revenues, and the new estimates come out of the high end of the preliminary projections it handed out a month ago. Continental said its August unit revenues were 8.8 cents (its earlier estimate was 8 to 9 cents) and 7.3 cents including regional partners (its earlier estimate was 6.5 to 7.5 cents).

We'll see what Wall Street thinks of the numbers.


October 01, 2007

TSA is worried about remote-controlled toys

The Transportation Security Administration says anyone bringing a remote-controlled toy through airport security checkpoints may become better acquainted with TSA screeners. Says the TSA:

In view of the period of strategic warning discussed in the National Intelligence Estimate on Homeland Security released in July, TSA is carefully monitoring information developed in the law enforcement and intelligence communities related to methods of possible attack.

While not associated with a specific threat at this time, TSA is aware that remote control toys can be used to initiate devices used in terrorist attacks.

Accordingly, Transportation Security Officers have trained on this possibility and travelers may encounter additional screening when bringing remote control devices in carry-on baggage.

So, it's not saying you can't bring one through security. It's saying such a device will attract attention.

The issue was more than hypothetical recently for Nancy Visser, an editor here at The News.

"My son was going to take his remote-controlled spider on our summer trip but I decided to leave it behind because I thought security might flag it if they x-rayed our luggage," she says.

"Something new to remember if you take Christmas presents with you during holiday travel: Don’t give any remote-control gifts."


Pilots match American management's Web site

The Allied Pilots Association now has running its own Web site to educate the public, www.apanegotiations.com, to counter management's Web site, www.aanegotiations.com.

It's hard to believe, but the pilots and management have different views on the same set of facts.

For example, here's what the management site says about "success sharing":

American’s variable compensation plans demonstrate the company’s commitment that employees will share in the company’s success. Through the 2003 restructuring process, employees elected to keep more of their compensation in the form of base pay.

However, American provided employees with a number of opportunities for additional compensation hinged on the airline’s recovery and overall performance.

And here's how the pilots' union looks at American's success sharing:

As AMR became profitable in 2006, the top 1000 managers began to receive bonuses that would total over 250 million dollars by April of 2007, with the majority going to the top 50 managers.

In 2006, the top 5 AMR managers received $33.9 million in compensation, 29% more than the next highest management team in the industry. At the same time, the pilots have not shared in the recovery of our airline as promised.

Check out the sites for fuller examinations of the two sides' points of view.

Comments

I find it hilarious that the APA now wants to be paid the same as UPS and FedEx pilots. They have to argue for higher pay to keep the membership happy (even though they're already the highest compenstated) and the only way to justify it is to change the equation.

I suspect this site will be high on hyperbole and rhetoric, low of facts and truth.

Oh -- and by the way -- where's the sourcing for any of this material? Are we just supposed to take their word for it?


Posted by: Carl Spackler | October 1, 2007 03:07 PM

Vintage APA.... they're cherry-picking the data points that work for them.

Posted by: PlaneWatcher | October 1, 2007 08:47 PM

Carl Spackler wrote:

"They have to argue for higher pay to keep the membership happy (even though they're already the highest compenstated) and the only way to justify it is to change the equation."

Followed by:

"Oh -- and by the way -- where's the sourcing for any of this material? Are we just supposed to take their word for it?"

So, my question to Carl is, what's your source for your incorrect statement? Or are we supposed to just take your word for it? Please provide us the data you have used that shows APA's pilots are the highest compensated.

Posted by: Flats | October 2, 2007 08:23 AM

AMR Managers saw fit to use UPS and FedEx as comparators for their compensation, why shouldn't the pilots?

Are APA pilots any less valuable than UPS or FedEX pilots? I don't think so. If a UPS plane goes down - God forbid - only the crew and a bunch of boxes die; if a passenger plane goes down, then the passengers die, too.

Do you want a poorly paid, poorly trained, fatigued pilot at the controls of your aircraft?

Posted by: Xtalondriver | October 2, 2007 08:31 AM

Hi Carl,

I find it hilarious that you find it hilarious that the APA wants to use the same comparator airlines for their compensation as AA management does for theirs - FedEx and UPS.

Oh -- and by the way -- where's the sourcing for your comment that the APA pilots are the highest compensated? Don't have it? Didn't think so. Why let the truth get in the way of a good story?

Now let's get serious and discuss this with some real thought, not biased emotion.

Example:

Southwest pays their Boeing 737 Captain $198 per hour while AA pays $163 per hour. (Don't believe me or the APA? Go here: http://airlinepilotcentral.com) The plane holds 150 passengers and let's say they only fly 65% full. AA has been flying at about 80% full, but we'll ignore reality for comparison purposes. So with 98 paying customers it costs Southwest $2.02 per hour per passenger to pay the Captain. At AA that Captain costs $1.66 per hour per passenger. So for a 3 hour flight it will save AA $1.08. But wait, AA is supposed to be having financial problems and they pay less than Southwest which hasn't lost money in how many quarters? That can't be true! Oh, but it is Grasshopper. Must be AA's business model that's the problem not labor costs.

I'm sure my comments aren't going to change your mind. If you are so one sided in your point of view then by all means just read AA's web site. Ignorance is bliss so don't let the facts ruin your mindset.

Thanks for reading.

Tom

Posted by: Tom Frazer | October 2, 2007 09:00 AM

In early 2003, AA Management had started out working well with labor. It was AA Mangagement's idea to create the phrase of "Pull Together Win Together." Evidentally, managers have seen fit to compensate themselves lavishly before they consider the people they are managing. In order to be effective leaders it is imperative to motivate those of whom you lead. "What is good for the goose is good for the gander." Some how management is going to have to fix this. If they don't, I fear AA is headed for a train wreck.

Posted by: Rick | October 2, 2007 09:42 AM

Management said,
Through the 2003 restructuring process, employees elected to keep more of their compensation in the form of base pay.

I say,
My 23 1/2% pay cut was not a "Restructuring process"
It was a pay cut with the Bankruptcy gun pointed at me!
How did I elect to keep more of my base pay?
Someone please tell me?
All the Unionized employees single-handedly saved this company and shareholders from Bankruptcy.
Their stock would have been Worthless.
One more time! WORTHLESS!

It is time for management to negotiate in good faith with my union APA. And when you do meet with my Union, I hope you get down on your knees with sincere tears in your eyes and thank every one of the employees of American Airlines.

Posted by: Chris Smart | October 2, 2007 12:35 PM

In reference to Mr. Spackler's question regarding APA's source of information. APA used an analyst who concluded in 1993 that management's Transition Plan was an "exit strategy...no more than a forced, orderly liquidation of American Airlines." This same analyst testified in the 1999 illegal job action court hearing. Court documents use the words "unbelievable, unreliable, and untrustworthy" to describe this testimony. Another analyst used by APA was quoted in a Reuter's article PRIOR to Untied Airlines [UAL] declaring bankruptcy as saying the following: "They [UAL] are absolutely on the right path,...That doesn't mean there aren't challenges ahead, but United is not a sick airline."

More recently, on the Age 60 debate, APA's in house analyst had this to say about the Pension Benefit Guaranty Corporation [PBGC]: "The PBGC is not insolvent and is not an obligation of the United States government." Now from the testimony from the president of the PBGC before Congress in 2005: "With more than $40 billion in assets, the PBGC can continue paying benefits for a number of years. But with more than $60 billion in liabilities, PBGC will be unable to meet its long-term commitments without additional revenues beyond those mandated by current law. As a result, taxpayers are at risk of being called upon to bail out the pension insurance program if losses continue to mount." Now consider the following two points. Webster's dictionary defines "insolvent" as: "unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debt as they mature." Second, let’s not forget the S&L; crisis in the 80's/early 90's [the FSLIC had a similar role to that of the PBGC]. According to the FDIC, the cost to the taxpayers was over $120 billion [as of 12/99].

In regards to pilot compensation, one person makes reference to FedEx and UPS pilots and another to Southwest pilots. It is interesting to me that with the 2001 contract negotiation, APA’s contract comparison DID NOT include FedEx, UPS, and Southwest pilot compensation. Also, pertaining to the Southwest pay comparison, the assumption is that AA pilots fly the same number of hours per pilot as the Southwest pilot. According to APA data, that is not the case, thus the argument is not valid. Additionally, it doesn't take into consideration the retirement benefit. Here is what a 2006 study by APA had to say about that: "What this means is that AA, which did not take the bankruptcy-terminate-the-pension route, now has disproportionate pension obligations. The pending legislation in Congress will ease the cost burden somewhat, depending on its final form. However, it does not change the fact that by not filing bankruptcy, AA has a cost element that its major competitors do not face."

Once again, I see some of the facts being portrayed as all of the facts. History has shown that this approach is detrimental to the financial well being of the airline and the careers of the pilots working for it. Another point, the APA website touts the financial strength of the AMR balance sheet. Just in 2005, an APA study stated the following: “Even if the economic recovery remains strong, it is unlikely that this continued strength will allow the Network carriers to regain their financial strength, since it increasingly questionable whether they can generate a revenue stream large enough to produce income that is sufficient both to service debt and to make the necessary investments in the business to be competitive with the LCCs [low cost carriers] and the international carriers." One final point, the last time I checked, my pay statement showed American Airlines as my employer, not the Allied Pilots Association as suggested by the comment "APA

Posted by: Carmen Villani | October 2, 2007 02:27 PM

Mr. Spackler,
You're the hilarious part of all of this! Did you do any homework before you made your comments? I don't think so.

Are we the highest paid at American? No! There is at least 1 web site that shows this. And while we may still have our Retirement Program that the other legacy carriers lost in bankruptcy it is a Retirement Program that will cost LESS than the programs currently in place at United,US Airways, Delta, and Northwest.

And why shouldn't we be paid as much as the pilots at FedEx and UPS? American Airlines is the 3rd largest cargo carrier in the US after FedEx and UPS! To top it off we carry more than boxes, we carry living human beings!

And while our top managers have received millions of dollars in bonuses these past few years, we the employees have received paltry $25 - $50 incentive bonuses and a pay rate that is less than what it was in 2000 in constant dollars!

Let's see you take a 23% pay cut overnight and not get a raise for over 4 years. Then you might have a leg to stand on.

Jeff Fellemth

Posted by: Jeff Fellmeth | October 2, 2007 02:36 PM

Just a serious question,

When the pilots took paycuts and lost jobs and the FA's were furloughed, did any Exec. Manangement lose jobs or take paycuts?

Posted by: AE FA Hubby | October 2, 2007 03:00 PM

Hello Carmen,

Still not happy no one will join your union?

Which analyst are you referring to? Do we get a name or are we to trust you? And who is the "in house" analyst? This guy must also have a name!

What does the PBGC have to do with this debate? Oh, I see, you were trying to bad mouth what's his name the analyst. What is his name?

In 2001 AA management was not using FedEx and UPS as comparator airlines for their compensation package. So that was then, this is now. Do you understand the difference?

With regard to the hourly pay at SWA and AA: What part of "hourly" don't you understand? That's a dumb mistake on your part. Even with our pension included our hourly pay still doesn't come up to Southwest's. Why don't you crunch the numbers yourself since I'm sure you won't believe me.

The economy in general, and air transportation in particular, has changed dramatically since 2005. So why do you refer back to that time period as though it has some bearing on today? You can do better than that I hope. Remember, that was then, this is now.

You are correct in one thing -- you are employed by American Airlines. And the pay and benefits you receive have all been negotiated by the APA. Why don't you tell us all why you Resigned from the APA? I'm sure that information would more clearly explain your point of view and your inability to make a cogent argument for that point of view.

Awaiting your more up-to-date and more informative discourse.

Tom

Posted by: Tom Frazer | October 2, 2007 08:34 PM

Bottome Line. AA Flight 1400. WE ARE WORTH EVERY PENNY and MORE!!

Posted by: D Durham | October 3, 2007 09:59 PM

Sad. Arguing over who can have more of the deck chairs while the ship is sinking.

Posted by: David Foster | October 4, 2007 10:47 AM

Let's recall Mr. Fraser's original post. While I do not question his mathematical calculations breaking down a pilot's pay rate in terms of per passenger per hour, it is irrelevant to the discussion of labor costs. The reason for this is very simple -- regardless of whether an AA pilot flies an airplane with a 65% or 80% load factor, the pay rate per hour is the same. Now if he wants to discuss how higher load factors can generate higher revenue thereby enabling higher pay rates, I am listening.

Getting back to my original point about his flawed analysis, consider the following example:

According to APA data for 2005, AA pilots work an average 51 hours a month [AA negotiations website has it for 2006 just over 48]. Southwest pilots are at 64 [65 for 2006 according to AA website]. Now let's say each airline will fly 3,000 hours for one month on the narrowbody equipment type Mr. Fraser mentions. For AA, that will require a minimum of 59 captains while at Southwest, it will entail 47 [assumption based upon no reserve pilots because it would not change the conclusion reached]. Using the rates of pay he highlighted [remember that doesn't take into consideration retirement or medical benefits], the cost to AA is $9,617 and $9,306 to Southwest. As this example clearly demonstrates, although the pay rate may be less, the overall cost is greater.

As for the request for names of analysts, I suggest closer attention be paid to the information being provided by the APA . Also, pointing out what individuals have stated is not an attempt to “bad mouth” anybody, but merely allowing people the resources by which to reach their own conclusions.


In regard to his criticisms regarding my so called outdated "discourse," I look forward to seeing on this blog the letter he sends to the APA president expressing a similar perspective because under the "Quick Facts" section of their website, they make analytical comparisons using dates such as 1992, 2000, and 2001. I only went back to 1993.

His reference to executive compensation I also found of interest. When reviewing the 2001 Proxy statement, there were no lists of companies, such as FedEX or UPS, that I could find that were utilized in determining executive compensation other than the statement -- “a comparator group made up of Fortune 500 companies” [pg. 24]. The list of actual companies did not appear until 2006. Besides, I have been critical of executive compensation on this blog.

Finally, let’s be clear about one thing. The issue at hand is what should be done to keep the financial recovery going at American Airlines thereby securing the future of all employees. This forum should be utilized for that discussion, not engaging in personal attacks or attempting to divert attention away from it. If that is what is sought, then I suggest the Challenge and Response forum.

Posted by: Carmen Villani | October 4, 2007 02:13 PM


Not showing the love

Citigroup downgraded the shares of AMR and Southwest Airlines on Monday, according to Reuters.

In both cases, Citigroup moved the stocks from a "buy" recommendation to "hold."

In early trading on the New York Stock Exchange, AMR shares are up nearly 3 percent, and Southwest's are down 1 percent. The difference?

Southwest doesn't have a big investor in Iceland agitating for asset sales and doing drastic things to increase shareholder value. AMR does.


Showing us the Love

In case you missed it, we did an update Sunday on Love Field traffic in the year since Congress agreed to let people go farther from the Dallas airport.

To summarize: passenger traffic between October 1, 2006, and Aug. 31, 2007, was up 20 percent from the same period a year earlier.

Passenger traffic at the airport in August was up 27 percent from August 2006.

August passenger traffic for Southwest Airlines was up 33 percent from August 2006.

Meanwhile, D/FW Airport traffic is down slightly -- but there's been an increase in passengers starting and ending their trip in Dallas-Fort Worth. And the record at D/FW Airport is hard to assess because American Airlines has had such bad luck with weather in the first half of 2007.


Comments

Another thing worth mentioning (with respect to AA pax loads @ DFW) is that they have been shrinking domestic capacity over the last year. With or without the modification of the Wright Amendment, it's not unreasonable to have expected lower pax levels @ DFW.

Posted by: Wylie H. | October 2, 2007 04:51 PM


Monday morning trivia

With KLM's new flights starting March 30 to Amsterdam's Schiphol Airport, more male travelers will be able to enjoy the houseflies in the men's rooms at Schiphol.

Here's this week's trivia question: What is the significance of those flies in the airport bathrooms?

Someone wanted a bonus question? Okay, we have this: What is the significance of the name "Schiphol"?

Answers below.

Continue reading "Monday morning trivia" »

Comments

It's noteworthy that flight plans for Schiphol require flight plans that account for a negative altitude as the runways are actually below sea level.

Posted by: Scott Piepenburg | October 1, 2007 09:38 AM


September 28, 2007

Iceland investor explains his position on AMR

FL Group chief executive officer Hannes Smárason chatted with us on his cellphone as he strolled around Manhattan Friday afternoon, a day after his company made public its calls for AMR to do a better job disclosing its finances and consider selling off AAdvantage and other AMR assets.

Underlying his comments is a belief that if investors understood everything AMR was sitting on, the stock wouldn’t be trading in the low twenties. Here’s our interview:

Continue reading "Iceland investor explains his position on AMR" »

Comments

Wow, what a very indepth view of AMR. Not!
The AADV program run by American was the first, and is now the most profitable, frequent flyer program in the world. To even suggest AMR sell it off shows how little Mr. Smarason understands about the workings of an airline. Perhaps Mr. Smarason would like to come work at AA. He could start at the bottom, like most of us do, work his way up and then..maybe then he'll start making smart comments instead of useless speculation.

Posted by: Jenna | September 29, 2007 10:16 AM

Hope Mr Hannes Smárason understands that AA frequent flyer program is a big factor why many travellers are still sticking with AA and flying in their antique MD80's .Separating the frequent flyer program from AA would be a big mistake ,hope he pushes in ideas like improving service ,aircraft etc. AA just copy the business model of Jet Blue , Virgin America you should do great and improve your operations at DFW Hub.

Posted by: Raj | September 29, 2007 01:51 PM

Jenna and Raj,

I think you're missing the point. A sale of the AAdvantage program wouldn't mean the end of AA's frequent flyer program. Indeed, Air Canada, a major Star Alliance participant, successfully sold its frequent flyer program, with virtually no discernable difference apparent to its FF program participants.

And certainly, one has to wonder why American owns a investment fund manager... makes no sense, really... like a lot of things AA does.

Posted by: Wylie H. | September 29, 2007 07:16 PM

A very confusing interview - he seems to think disclosure, rather than operational improvements, is the soloution to the problem. American has done a commendable job in these difficult times, and they made the hard decision to stay out of bankruptcy to protect their people. Drop the AAdvantage program - is he crazy?

Posted by: Cormac Ryan | September 30, 2007 04:46 PM

Barron's seems rather bullish on AMR....

http://www.boston.com/business/articles/2007/09/30/amr _shares_could_rise_50_pct_barrons/

AMR shares could rise 50 pct: Barron's
September 30, 2007

NEW YORK (Reuters) - American Airlines' shares could rise 50 percent or more in the next year according to a Barron's report that cited factors such as a potential unit spin-off and an improving balance sheet.

The October 1 edition cited a call last week from Iceland's FL Group, a 9-percent owner of AMR, for the airline to spin off its frequent-flier business.

It said FL valued the AAdvantage program at $6 billion and estimated that a spin-off could raise value by $4 billion for shareholders of AMR, which has a market value of $6.6 billion.

The report said Wall Street appeared to be betting that AMR would reject FL's suggestion, but cited a $2.1 billion reduction in debt at AMR in the last year to $17.3 billion at the end of the second quarter and said AMR, which closed up 27 cents at $22.29 on Friday, was well below its January peak of

$41.

Even if it decides against a spin-off, AMR is "an attractive stock" Barron's said. "Hostage now to fuel and economic concerns, AMR could see its shares rise 50 percent or more in the next year," according to Barron's report.


Posted by: PlaneWatcher | September 30, 2007 09:06 PM