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| Airlines for America SmartBrief |
| November 16, 2009 |
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Labor unrest delays merger benefits at Delta
As labor issues continue to simmer, flight attendants from Delta Air Lines and Northwest Airlines are consigned to separate flights, and the combined carrier has yet to realize many of the promised financial benefits of its merger, according to the Atlanta Journal-Constitution. "The assumption was once the merger occurred, because the Northwest unit was smaller, that the merged company would end up with no unionization," says airline analyst Vaughn Cordle, who notes that could well change if the National Mediation Board is successful in changing a rule governing how votes are counted in union elections. The Atlanta Journal-Constitution (11/16)
US Airways pilots seek mediation in contract dispute
Pilots for US Airways say their talks with management have reached an impasse, and their union is asking for federal mediation. The carrier has been negotiating with pilots since 2005, when a merger with America West Airlines raised sharp disagreements over pilot seniority. Chicago Tribune/The Associated Press (11/13)
Ready for its closeup: American co-stars in upcoming Clooney film
American Airlines has a co-starring role in "Up in the Air," an upcoming movie starring George Clooney as a traveling consultant seeking to rack up 10 million frequent flier miles. Under its extensive marketing partnership, American got lots of free screen time (but no revenue sharing) in a big-budget Hollywood picture, while filmmaker Jason Reitman got free access to American aircraft and executive lounges. Los Angeles Times (11/14)
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Plane makers say airlines are poised to bounce back
Both Boeing Co. and Airbus SAS are predicting an international recovery in the airline industry next year. Speaking from the Dubai Air Show, the two leading plane makers said airlines have stopped deferring deliveries of pricey new jets as they prepare for firming demand for air travel in the coming years. "Everybody is talking about new orders, there is nobody talking about delays and cancellations," said Airbus COO John Leahy. Meanwhile, a Boeing executive predicted that "next year will be a year of recovery, and in 2011 airlines will return to profitability." Bloomberg (11/16)
Analyst predicts best unit revenue numbers in two years
Airline stocks climbed on Friday after FTN Equity Capital Markets said holiday travel demand would likely result in stronger unit revenues for November. The report from analyst Michael Derchin said revenue per available seat mile should decline by 6% in November, compared to a 14% slide in October. Reuters (11/13)
DOT reports 4.1% slide in passengers
The Transportation Department reported Friday that U.S. air carriers flew 4.1% fewer passengers in August 2009 than they did a year earlier. The August report marked the 17th consecutive monthly decline in passenger figures. The Wall Street Journal/Dow Jones Newswires (11/13)
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World's environment chiefs to hold talks aimed at saving climate deal
A plan to postpone a legally binding climate agreement has prompted about 40 environment ministers to meet in Copenhagen today in an attempt to rescue the deal. The discussion will gauge support for the plan from Danish Prime Minister Lars Lokke Rasmussen to settle for a political deal during the U.N. climate summit and agree on a legally binding pact later. Rasmussen's proposal received backing from world leaders, including President Barack Obama. Reuters (11/16)
Senators may adjust EPA's emissions role to win votes for climate bill
As the Senate works on climate-change legislation, lawmakers may let the Environmental Protection Agency retain its power to regulate greenhouse gases in order to win over critics who are concerned about the agency's role in the measure, writes Matthew Madia in this blog post. The House version of the bill modified the EPA's authority under the Clean Air Act to secure the votes of moderate lawmakers and representatives of the energy sector, and senators could do the same thing in their proposal, Madia added. OMB Watch (11/13)
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Washington eyes tax on airlines' ancillary revenue
Leading members of Congress have asked the Government Accountability Office to investigate airline fees, with an eye toward taxing the billions of dollars in revenue that the fees generate each year. "Maybe we have to teach them a lesson, and make them pay their fair share," says Rep. James Oberstar, D-Minn., noting that excise taxes help fund airport improvements seen as crucial to the industry. But the airlines counter that fees have helped to offset a steep decline in ticket sales, and any new tax would likely be passed along to passengers in the form of higher ticket prices. "It falls in the category, first, do no harm," says a spokesman for the Air Transport Association. NYTimes.com (11/13)
Babbitt faults controllers in case of errant Northwest flight
FAA Administrator Randy Babbitt on Friday said air traffic controllers in Denver and Minneapolis failed to notify other controllers of a Northwest Airlines jet flying through their sectors without radio contact. Because controllers in each sector tried anew to contact the plane, no one was aware of how long Flight 188 had been silent. Babbitt faulted controllers for failing to alert the Air Force within the required 10-minute time frame and said stricter procedures would be implemented to ensure proper notifications. The New York Times (tiered subscription model) (11/13) Chicago Tribune/The Associated Press (11/13)
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Asia expected to lead recovery in business travel
Travel industry observers, suppliers and international groups say that China, India and other emerging Asian economies will likely be among the first to see recovery in business travel. Some markets, including those in Latin America, Africa and the Middle East, have already seen an uptick in air traffic. Europe, on the other hand, continues to lag. The Transnational (11/12)
Worker testimonials help sell a company to job seekers
To attract job seekers to your company, use employee testimonials on your Web site that show a typical employee workday; demonstrate the company culture; or discuss perks and benefits. An American Psychological Association study found job applicants are more attracted to organizations with such testimonials. Where Great Workplaces Start blog (11/10)
Who's Hiring Industry Job Listings
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Poll: As part of its commitment to a global, sectoral approach to aviation and climate change, the airline industry has set goals to:
Improve fuel (and CO2) efficiency
Make the growth of the industry's emissions carbon neutral from 2020 onward
Ensure that government investment in needed infrastructure, such as air traffic control modernization, complements industry
All of the above
None of the above
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--Samuel Taylor Coleridge, |
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