Company Watch

Delta, American step up JAL courtship
Both American Airlines and Delta Air Lines are upping the stakes in their courtship of debt-laden Japan Airlines. American is presenting regulators and management with a presentation on the "Oneworld Total Value Proposition," arguing that stronger ties could be worth up to $100 million in cost savings and additional revenue for JAL. Meanwhile, Delta President Edward Bastian has reportedly been in Tokyo five of the past six weeks, and sources say Delta is willing to cover the cost of a JAL switch from Oneworld to SkyTeam. The Wall Street Journal (11/6)

Southwest sees record occupancy, improved unit revenues in October
Southwest Airlines recorded its best-ever occupancy rates for October as its planes flew 79.2% full in the wake of deep capacity cuts. Southwest said traffic figures rose by 1.9% in October, and even unit revenues showed improvement, rising about 1% compared to October 2008. The Dallas Morning News (free registration) (11/5)

Midwest, Frontier expected to be profitable in 2010
The CEO of Republic Airways predicts both his latest acquisitions, Frontier Airlines and Midwest Airlines, will make a profit next year. "As we go into 2010, obviously we're expecting the brand business (Midwest and Frontier) to produce positive earnings," Bryan Bedford told analysts, while admitting that the parent company's third-quarter results were "a little messy." Republic repeated its intention to run Midwest and Frontier as separate brands and said it will focus on bringing in more ancillary revenue. The Denver Post (11/6)

American flight attendants plan "dress rehearsal" strike
Flight attendants at American Airlines plan to stage a "simulated strike" at airports around the country on Nov. 18 to show how travel could be disrupted by a real work stoppage. The union plans to ask the National Mediation Board to clear the way for a strike by declaring a 30-day cooling-off period if mediation fails to produce a contract by January. The airline points out that mediation lasts an average of 19 months, "and we've been in mediated negotiations for roughly nine months," with about 72% of contract points already settled. Chicago Tribune/The Associated Press (11/5) Fort Worth Star-Telegram (Texas) (11/5)

Other News

• Mesa reevaluates after losing United contracts
  AviationWeek.com (11/5)

Inside Aviation

sponsored by 

Major airlines keep ahead of falling traffic in October
The nine largest U.S. airlines saw a combined 2.2% drop in traffic for October, but capacity fell nearly three times as fast, resulting in fuller planes. Seven of the nine carriers reported lower capacity than last year, reducing available seat miles by 4.16 billion. The Dallas Morning News/Airline Biz blog (free registration) (11/5)

AirTran CFO: Price sensitivity wanes during travel
Amid rising fuel prices and weak demand, AirTran Airways says ancillary fees continue to be a bright spot on the balance sheet. The discount carrier says fee revenue should hit $340 million this year, up 45% compared to 2008. Arne Haak, the company's chief financial officer, told investors on Thursday that consumers search out the lowest price when initially buying a ticket, but don't mind paying for extras to enhance the trip as they go along. Chicago Tribune/The Associated Press (11/5)

Energy Bulletin

Group: World's biofuel policies must be based on sound scientific data
The Global Renewable Fuels Alliance is calling on world leaders to enact programs that will spur the use of biofuels for transportation as well as encourage investment in current and next-generation alternative fuels. Governments and international agencies must use reliable scientific evidence to ground their policies in areas including the effects of indirect land use, the group urged, as well as recognize the rising efficiency rates of biofuels production. The GRFA's recommendations were discussed in a paper addressed to officials who will be attending the U.N. climate-change summit in Copenhagen. EthanolProducer.com (11/5)

Featured Content Cardmember Story: Rafe Totengco  Rafe Totengco  from OPEN Book: Social Media Social Media: What's Next?  Adam Ostrow  from OPEN Book: Social Media Denim Therapy: Re-Visiting a Culture of Repair Instead of Replace  Jill Fehrenbacher How to Avoid the 'Bah Humbug' Spirit From Consumers This Holiday Season  Janet Thaeler  from Small Business Trends The Benefits of Outsourcing Your Billing  Michelle V. Rafter

Regulatory Update

Senate eyes crackdown, Northwest pilots appeal license revocation
Several senators have introduced legislation that would ban pilots from using most personal electronic devices in the cockpit. "Most major air carriers have already recognized this problem and have rules prohibiting it, but this legislation gives the FAA the ability to enforce those rules with penalties," Sen. Byron Dorgan, D-N.D., said. Meanwhile, two Northwest Airlines pilots are appealing the FAA's decision to revoke their licenses after they missed their scheduled landing while working on personal laptop computers. The pilots filed their appeal with the NTSB late Wednesday, and an administrative law judge should hear the case within 120 days. The Wall Street Journal/The Associated Press (11/5) The Hill/Blogs (11/5)

Opinion: Congress already addressing TSA oversight issues
The House Committee on Homeland Security has "taken the first step" in addressing concerns over poor use of screening technologies, writes Chairman Bennie Thompson, D-Miss., in a letter to the Washington Times. Thompson says H.R. 2200, passed by the House in June, will help to "ensure transparency, effectiveness and proper vetting of technologies that will mitigate risks at checkpoints across our airports." The Washington Times (11/6)

Cargo screeners ramp up as federal deadline approaches
National Cargo Screeners Inc. of Orlando, Fla., is one of the companies certified by the TSA to screen the tons of freight loaded onto passenger flights every day. The company says its powerful X-ray machine "looks for any device that looks like an explosive. Really any device that could be construed as a threat to an aircraft." As a federal deadline looms for screening 100% of airline cargo, NCSI is planning to expand. WOFL-TV (Orlando, Fla.) (11/6)

Industry Trends

Airlines push for direct links with distributors
Several airlines are moving ahead with plans to develop direct ties with corporate travel agencies and other distributors, bypassing global distribution systems. The time line for such efforts is unclear, but American Airlines, Air Canada, Southwest Airlines and other carriers are interested in enhancing their control of product and inventory. Management.travel (11/5)

SmartQuote

Email: a4a@smartbrief.com
Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004
Legal and Privacy information at http://www.smartbrief.com/legal.jsp
Unsubscribe