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AMR (AMR)

American Airlines (NYSE:AMR) took the biggest dive of the day. The US Federal Aviation Administration (FAA) proposed over $1 million in fines against the carrier, for alleged safety violations, according to the Centre for Asia Pacific Aviation. The proposed fines cover four separate instances where the FAA alleges that American was negligent in either maintaining aircraft or following proper maintenance procedures.
The fines come only weeks after the FAA commented that it was considering a record high $20 million in penalties against American. American Airlines stated it is reviewing the fines and will meet with the FAA to discuss the situation.

Mar 22 · 8:56:00 AM · Source: Centre for Asia Pacific Aviation
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by Steve Wieczorek

Delta Air Lines (DAL)

All the legacy carriers reduced their work forces in January except for Delta Air Lines Inc. (NYSE:DAL), which for the first month reported combined numbers with Northwest Airlines, which Delta bought in 2008, according to Fox Business. AMR Corp.'s (NYSE:AMR) American Airlines and Continental Airlines Inc. (NYSE:CAL) tied for the biggest network-carrier decline, at a 4.7% drop in employment. Even including Delta's 67% increase in work rolls, legacy carriers' overall employment was down 2.3%.
Discount carriers increased their work force 1.4% in January from a year earlier. Market leader Southwest Airlines Co. (NYSE:LUV) had 2.1% fewer employees, but it was the only low-cost carrier to shrink its pool of workers. Smaller rivals Frontier Airlines Holdings Inc. (FRNTQ) and Virgin America, partly owned by the U.K.'s Virgin Group, posted 16% and 14% increases.

Mar 17 · 12:43:00 PM · Source: Fox Business
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by Steve Wieczorek

Southwest Airlines (LUV)

Southwest Airlines (NYSE:LUV) the star performer in improving its unit revenues in recent months, continued to trump JetBlue, Continental Airlines and US Airways in this metric in Feb-2010, and was joined by United Airlines in reporting double-digit PRASM (Passenger Revenue per Available Seat Mile) in the month, according to the Centre for Asia Pacific Aviation. Encouragingly, all the US carriers reporting monthly unit revenue figures registered growth in the month, with AirTran and Allegiant, which do not provide such updates, separately commenting of "improved" conditions in the market.
The lucrative business market, while recovering, is yet to return to pre-crisis levels, maintaining the pressure on the profitability and revenue outlook. The unit revenue figures were also inflated in the month, due to weather-related cancellations, which resulted in significant cancellations (and capacity reductions) across the US domestic network.

Mar 17 · 12:09:00 PM · Source: Centre for Asia Pacific Aviation
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by Steve Wieczorek

China Eastern Airlines (CEA)

China Eastern Airlines (NYSE:CEA) received its parent’s stake in a cargo venture with Singapore Airlines as part of a plan to consolidate the carrier’s air-freight operations, according to China Economic Review. Chairman Liu Shaoyong said China Eastern has already taken over management of Great Wall Airlines. Great Wall Air is 51% owned by China Eastern Air, 25% by Singapore Air’s cargo unit and 24% by Temasek, the Singapore state-owned investment company.
BusinessWeek reports the carrier has begun to reorganize operations after buying Shanghai Air to boost its market share in its home city. China Eastern also faces increasing competition in the freight market from a planned Air China-Cathay Pacific venture.

Mar 17 · 11:53:00 AM · Source: China Economic Review
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by Steve Wieczorek

Continental Airlines (CAL)

Continental Airlines (NYSE:CAL) said Monday it will charge for meals on many of its U.S., Canada and Latin American routes starting in fall, according to MarketWatch. However, the airline will continue to offer complimentary food in economy class on all intercontinental flights and domestic routes over six hours.
The airline is continuing to invest in services and amenities that customers value. For instance, Continental is deploying DIRECTV live television service and new flat-bed BusinessFirst seats. GoGo inflight internet service will make its debut on Continental later this year.

Mar 16 · 12:35:00 PM · Source: MarketWatch
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by Steve Wieczorek

AMR (AMR)

The safety record of American Airlines (NYSE:AMR) was in the limelight again Monday after the Federal Aviation Administration proposed fining the parent company AMR Corp. $787,500 for maintenance violations, according to MarketWatch. The fines cover three incidents that involved deferred maintenance on a broken secondary flight control system, as well as failure to properly inspect rudder components on four Boeing 757 jets, and then flying the planes despite knowledge of the error. American was also accused with not completing full maintenance of an MD-82 aircraft before returning it to service.
Last month there were reports that American Airlines faced millions in civil penalties for lapsed safety standards, with the Department of Transportation blaming the FAA with complacency. When the cost of doing business increases at an airline, trends show that the invisible sections, such as maintenance sometimes do not receive the attention they require. This is a section of the business that should not be taken lightly.

Mar 16 · 12:24:00 PM · Source: MarketWatch
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by Steve Wieczorek

JetBlue Airways Corporation (JBLU)

JetBlue Airways (Nasdaq: JBLU) today announces an increase from two to four daily nonstop flights from New York's John F. Kennedy International Airport (JFK) to Los Angeles International Airport (LAX) beginning July 1, 2010, providing more options and more value to coast-to-coast travelers. In addition to its LAX service, JetBlue offers the only nonstop service from the East Coast to two other L.A. Basin airports: Burbank and Long Beach.
JetBlue and other LCC, low cost carriers, continue to take market share from the legacy carriers. Being more nimble and operating with a defined fleet, that is a single manufacturer and type, JetBlue can provide superior service with greater profit per available seat mile.

Mar 16 · 12:12:00 PM · Source: Company Press Release
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by Steve Wieczorek

Alaska Air Group Inc. (ALK)

Alaska Airlines (NYSE: ALK) Announces Marketing Leadership changes. Joe Sprague, a 10-year veteran at Alaska Airlines, has been named vice president of marketing. Sprague will be responsible for the carrier's overall marketing strategy as he oversees marketing communications, sales, reservations, food and beverage, customer care, the Mileage Plan frequent flier program and Board Rooms. Sprague will also retain responsibility for Alaska Air Cargo, a division he has led for the past two years. Steve Jarvis, formerly Alaska's vice president of marketing, sales and customer experience, will assume the new role of vice president of customer innovation and alaskaair.com. In this position, Jarvis will oversee the airline's Web site and efforts across the company to continue developing customer-facing technology, such as online and mobile phone applications.
In the extraordinary juggle of airlines clamoring to stay on top and at the very least competitive, Alaska Airlines changes its marketing team and redesigns its communications and branding to stay steps ahead of the legacy carriers and in step with the LCC, low cost carriers. Even though the financial crash played a big part in the crunch of the airline industry, we are starting to see signs of re-growth with more people traveling for both business and leisure. We will continue to see innovative ways that airlines will re-brand themselves and promote themselves.

Mar 16 · 11:57:00 AM · Source: Company Press Release
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by Steve Wieczorek

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