text:
Reversing a "no vote" from three weeks ago, the American Eagle pilots union leaders have decided to let its members vote on a tentative contract agreement with the regional carrier.
The Air Line Pilots Association's master executive council for American Eagle will schedule a ratification vote on the 10-year contract that allows Eagle pilots to fly new larger regional aircraft in exchange for freezing pilot pay scales until 2018 and the elimination of profit-sharing.
"After discussion and analysis, the MEC voted to send the proposal to the pilots as a tentative agreement so that the pilot group can weigh-in individually on the agreement," Eagle-MEC chairman Bill Sprague said in a message sent to pilots on Friday afternoon.
Voting will begin on March 13 and close on March 28.
If the agreement is ratified, American Eagle president Pedro Fabregas said Eagle pilots will make up at least 50 percent of each hiring class at American Airlines and in some cases up to 100 percent.
"Our pilots will have an unmatched flow through agreement, an industry-leading fleet commitment and new large regional jets, which better meet the needs of our customers and mainline partner," said American Eagle president Pedro Fabregas. He added that the hiring portion of the agreement will help Eagle attract more pilots to the carrier.
American Airlines Group, which owns the regional carrier, said it will rename it Envoy later this spring as it expands its use of outside carriers to fly routes under the Eagle brand.
When the union leadership initially voted against sending the agreement out to 2,800 pilots, Eagle-MEC chairman Bill Sprague said pilots were unwilling to accept a lengthy contract that would lock them into wage rates near the bottom of the industry. American then said it planned to move aircraft away from Eagle to other carriers to fly, putting the future of the regional airline in jeopardy.
In January, the union's negotiating committee and management reached an agreement guaranteeing that 60 of the new Embraer 175 aircraft that American Airlines Group ordered in December would be used with Eagle. The deal included options for 90 other aircraft to be operated by the regional carrier.
Although pilots would receive 1 percent pay increases starting in 2018, the captain pay scale would be capped at 12 years of service, and the first-officer pay scale capped at four years of service. At American Eagle, a new hire makes $26 an hour. Based on a guarantee of 72 hours a month, the first officer would make about $22,464. Eagle is offering $5,000 signing bonuses to new pilots who agree to stay for two years. Captains, however, can earn significantly more, with pay rates of $67 to $104 an hour.
Keep reading for letters from the union and Eagle management.
MEC Meeting Update
Fellow Pilots,
On Wednesday, March 5th, and Thursday, March 6th, members of the EGL ALPA leadership met with representatives of AAG in Washington, DC to discuss the impasse and how we all might be able to move forward. The parties re-engaged in conversation because we share a common goal – an agreement that provides a strong, stable labor future for the company that the pilots feel values their contribution appropriately.
The results of that meeting were presented to the full MEC. After discussion and analysis, the MEC voted to send the proposal to the pilots as a Tentative Agreement so that the pilot group can weigh-in individually on the Agreement.
Pilot ratification voting will open at 1000 EST on the 13th of March and will close at 1000 EST on the 28th of March. The schedule for the base visits is being worked out now and will be announced soon. Members in good standing will be allowed to vote, and voting will be through the ALPA.org website. We will make the actual language of the TA available to the pilot group as soon as possible and will also include a comparison so that everyone will be able to determine the value of the improvements.
Also on the agenda for the meeting was consideration of a personnel change involving MEC officers. Captain Matt Rettig has stepped down as MEC Vice Chairman. MEC Secretary/Treasurer, Captain Gloria Finnerty, will be Acting Vice Chairman until an election is held. We thank Captain Rettig for his years of hard work, commitment and dedication.
As I have committed from the beginning, this TA will be evaluated based on its merits. We will explain the dynamics of how it works and present you with the facts of the Agreement. I encourage you to engage your local representatives and provide your perspective.
Fly safe.
Bill Sprague, Chairman
Tentative Agreement to be Sent to Our Pilots for Ratification Vote
Dear Team,
I am pleased to report ALPA's American Eagle Master Executive Council (MEC) voted today to send
the Tentative Agreement (TA), formerly the Agreement in Principle, to our professional pilots for a
ratification vote. We very much appreciate and thank the negotiating committee for their work on this
TA, and the MEC for giving our pilots the opportunity to vote on their and our future.
If ratified, the TA, above all, offers our pilots greater job security and unprecedented advancement
opportunities. For all of the more than 14,000 people at American Eagle Airlines, soon to be Envoy,
the TA will provide a solid foundation to grow our company into the best and most competitive
regional carrier in our industry.
Voting on the agreement will begin soon. Should our pilots ratify it, our industry-leading flow through
rights to the largest airline in the world will be significantly enhanced to a level no other carrier can
match. Pilots from our company alone will make up a minimum of 50 percent, and in some cases up
to 100 percent, of American's new hire pilots each month. Our flow through will draw more new pilots
to our airline, while giving our current pilots a substantial career advantage over pilots at independent
regional carriers. This is something independent regional carriers simply can't offer. It will allow our
pilots to more quickly advance from first officer to captain and then on to American. With this
progression, and if the TA is ratified, they will enjoy all of the benefits that come with this faster than
ever before.
The agreement also offers a signing bonus and competitive pay rates. The overwhelming majority of
our pilots will be able to further increase their pay following the delivery of the first new aircraft. For the
recruitment of new pilots, our pay rates are going to remain comparable to those of other regional
carriers for a long time and they will enjoy flow through rights, too. With our unparalleled access to
pilot positions at American, we are excited about the prospect of new hire pilots joining our growing
airline. The agreement also preserves the existing "no furlough" protections for our pilots. All of these
elements mean that no other regional airline will be able to offer their pilots the job protections and
upward mobility to a mainline airline as we will.
In addition to these pilot benefits, the agreement will allow us to upgrade our fleet with new Embraer
175 (E175) regional jets that can carry up to 76 passengers and a fleet commitment for a minimum of
170 aircraft for the duration of the 10-year agreement. The new aircraft and the fleet commitment will
offer lower operating costs; a top-tier regional product for our customers; the opportunity to hire a
significant number of new flight attendants; and substantial growth opportunities for teams throughout
our company.
With our improved cost structure and focus on performance, we are confident we can grow well
beyond our guaranteed fleet number and build a robust future for all of us. For several years the
ambitious growth of our ground handling business has been the envy of our competitors. If this TA is
ratified, our flying business will be evoking the same response. Our pilots will have an unmatched flow
through agreement, an industry-leading fleet commitment and new large regional jets, which better
meet the needs of our customers and mainline partner.
This is truly one of the most critical times in the history of our company. We encourage all of our
people to learn more about what this TA, if ratified by our pilots, will offer. Please look at all the facts
related to this agreement and consider the competitive environment in which we operate. We hope
you will see and agree this TA is a great opportunity for our pilots and all of us at American Eagle
As always, I commit to keeping you informed of any news and developments as it happens and thank
you for all of your work on behalf of our customers and company.
The two pilots unions at American Airlines may be squabbling about the seniority integration process, but they are unified on one thing: the jumpseat.
Apparently, a US Airways pilot refused to allow a couple of American Airlines pilots to fly in his jumpseat, according to this The Street.com article by Ted Reed.
The incident created a stir among pilots, prompting the presidents of the Allied Pilots Association and the US Airline Pilots Association to issue a joint message to all pilots about respecting jump seat privileges.
"Recent jumpseat-related problems illustrate how we can work against our own interests if we aren't careful. Reciprocal jumpseat privileges are a valuable, mutually beneficial professional courtesy that we're able to extend to one another. Let's keep it that way and remember the old proverb "at home, me against my brother… Outside, me, my brother, my cousins and our neighbors against the whole world,'" the joint message said.
The presidents acknowledged that coming up with a combined seniority list is difficult but pointed out that the two unions have worked together on several issues including developing a 401(k) plan for pilots.
Keep reading for the full message.
Fellow Pilots,
APA and USAPA are committed to aggressively representing the interests of our respective pilot groups. It's what we do.
As we proceed with integrating the pilots of American Airlines and US Airways into one seniority list, we are certain to have differences of opinion. Did anyone expect otherwise? Seniority integrations are inherently difficult.
However, we must be careful not to permit those differences to compromise our ability to deal with other challenges — challenges that we can most effectively address through cooperation. Whether upcoming joint collective bargaining agreement negotiations or issues pertaining to safety, security, training or some other vital component of our professional lives, we will achieve better results by working together.
With USAPA and APA cooperating on numerous fronts for almost two years, we've already seen ample evidence of the power of collaboration between our pilot groups. Our negotiating committees worked together effectively during the memorandum of understanding negotiations, which proved critical to bringing along a reluctant AMR management. Our respective negotiating teams have also devoted considerable time to developing a PBS memorandum of understanding. Our training committees share a commitment to pursuing a best-practices approach to pilot training at the new American Airlines. The USAPA Retirement and Insurance Committee and APA Pension Committee have made significant progress toward the establishment of a pilot-only 401(k) plan. Meanwhile, our officers and boards have met on numerous occasions as part of fostering an effective working relationship.
Most assuredly the world won't stand still for us while we deal with seniority integration. The merger of our two airlines will present us with a host of issues demanding our focus. Meanwhile, American Airlines faces ultra-aggressive legacy carrier competition, low-cost carrier encroachment in near-international markets and the rise of nonunion, state-subsidized Middle Eastern carriers with global reach. Fraternal squabbling won't further the interests of our pilot groups or enhance the competitive stature of the new American Airlines.
Recent jumpseat-related problems illustrate how we can work against our own interests if we aren't careful. Reciprocal jumpseat privileges are a valuable, mutually beneficial professional courtesy that we're able to extend to one another. Let's keep it that way and remember the old proverb "at home, me against my brother… Outside, me, my brother, my cousins and our neighbors against the whole world."
As "brothers, cousins and neighbors," our two pilot groups — soon to become one — need to be unified. Whatever differences we have are far outweighed by our common interests.
In unity,
Captain Keith Wilson Captain Gary Hummel
APA President USAPA President
We have official statements from Southwest Airlines and Delta Air Lines, who both say the Love Field gates that American has to give up should go to them and not to Virgin America.
Southwest spokesman Brad Hawkins
Southwest wants the opportunity to expand its low-fare competitive service in the Dallas Metroplex. An additional two gates at Love Field would allow Southwest to operate approximately 20 additional flights and serve numerous new nonstop destinations which would not be possible otherwise. Unlike other airlines, including Delta and Virgin America, Southwest's only opportunity to expand service in North Texas is at Love Field due to restrictions in the compromise that led to the partial repeal of the Wright Amendment. Southwest will actively participate in the process of re-allocating American's gates at Love Field.
Delta statement
Delta welcomes the opportunity to compete with Southwest and Virgin America at Dallas Love Field and believes the airport can accommodate all three carriers. Dallas citizens will benefit from having additional travel choices from Dallas Love Field.
Delta plans to serve both Dallas/Fort Worth International Airport and Dallas Love Field, expanding our North Texas service to offer nearly 80 daily departures from both airports. Delta's Love service will provide convenient access to Delta's leading network, with nonstop service to New York-LaGuardia, Los Angeles, Atlanta, Minneapolis, Detroit and Salt Lake City, and convenient connections to more than 300 destinations.
Delta's Love Field proposal is part of its overall commitment to North Texas, which includes its recent expansion at D/FW Airport. Delta plans to continue to serve both airports to allow it to serve travelers who reside in all regions of the Dallas/Fort Worth metroplex.
According to U.S. Department of Transportation records, Delta is the most reliable network carrier, with industry-leading results in 2013 in on-time performance, baggage delivery and fewest flight cancellations. All of Delta's flights will feature three different seat options – First Class, Economy Class and Economy Comfort, as well as in-flight WiFi and other amenities geared toward today's business traveler.
Delta has invested billions of dollars over the past several years in improving the customer experience, and continues to invest in new and upgraded Delta Sky Clubs, new aircraft, improved seating, aircraft interior improvements and upgrades and the latest technology, including our award-winning Fly Delta app.
Today Delta is the preferred carrier for business travelers, having recently been named Fortune magazine's Most Admired Airline Worldwide for the third time in four years. Delta also has been named the Best North American Airline by Business Traveller Magazine; the No. 1 airline by Business Travel News and Best Domestic Airline by Executive Travel Magazine.
After Wednesday morning's announcement that Virgin America plans to bid for gates at Dallas Love Field, I talked with Virgin America chief executive David Cush about the carrier's plans for Love and why it wants to exit Dallas/Fort Worth Airport.
Here's excerpts from our conversation.
ST: Why should Virgin America be awarded the Love Field gates instead of Southwest or Delta Airlines who have also expressed interest in the gates?
Cush: I'll give you the consumer-based reason first which is how we would inject new competition and markets that are important markets that Delta has not proposed. They basically have proposed flying primarily regional jets to their hubs whereas we would be flying mainline aircraft to the major business destinations that the people of Dallas want to go to. As far as us versus Southwest, I think the key thing would be a second competitor in these markets. Southwest has already signaled they would fly to Los Angeles, Washington and LaGuardia and basically we would become a competitor of theirs. It's always good to have a competitor. It's always good for the consumers and probably more importantly we have a different type of service than Southwest. We have an award-winning first class product. We have a product that is probably more aimed at a traditional business traveler especially on these longer distances.
That is the consumer argument and then there is the legal argument. Our view is that if you read the consent agreement between American and the DOJ, it's very clear that all of these assets need to go to low-cost carriers. It names the five low-cost carriers JetBlue, Virgin America, Allegiant, Spirit and Southwest, and Delta obviously is not on that list.
We don't even consider them to be a candidate for these gates because that would not fufill the requirement of the DOJ consent agreement. My view as far as why we should get them over Southwest from a legal standpoint is Southwest agreed in 2006 to operate from 16 gates. So this is nothing new to them. This is an agreement they entered into voluntarily and whether American or Virgin America is offering out of those two gates, is largely irrelevant. What is relevant is that southwest agreed when the Wright Amendment was repealed or at least the process for appeal was put together Southwest agreed they would operate from 16 gates. From a more legal standpoint that is how I would say we are more deserving them they are.
ST: You've announced 18 flights but will be delaying some until 2015. Is that because of plane deliveries and aircraft allocation?
Cush: If you look at it on day one, we would have 14 flights a day. It's not a slow ramp up. It's simply when you start a new airport a lot of times it's easier to take it in a couple of steps. If you look at the announcement we made we'll fly four flights to Reagan, four flights to Laguardia and then our three to Los Angeles and San Francisco on day one. And then in just a handful of months later we would add the rest of the schedule.
ST: Have you talked to the DOJ or the city of Dallas about the gates?
Cush: We have expressed directly to DOJ our interest in the Love Field. We briefed most of the city council members and as well as the mayor and the city manager on what our proposal is. We did that over the last several weeks, We made sure we did our ground work and respect the process and respect the authority of the leaders of the city of Dallas and so they weren't caught by surprise by the announcement we made today.
ST: Have you talked to DFW about your intent to pull down your service?
Cush: We gave the airport director a heads up that we were going to make this announcement. We also told them if we are unsuccessful we will stay with our current schedule at DFW and if we are successful then we will honor our lease. We have been clear to them that we are not trying to run away from any financial obligations that we have at DFW and we will honor the lease…It's for one gate and several ticket counters and we still have several years left on the lease, without getting into specifics because I don't have them in front of me, generally these are 5 year plus leases so I would say we have several years left on the lease, we told the airport our intention is we'll honor it and if they don't have another use for the gate, we will pay rent on it.
ST: When you first entered DFW, you received $2 million in landing fee rebates and marketing cash. Did the end of those incentives cause you to look to move your operations to Love?
Cush: Absolutely not, DFW is the most cost efficient major airport in the United States so costs never really entered into this equation. The fact is wee have an opportunity out of love field to go and serve more destinations out of the Dallas area, an opportunity that doesn't exist at DFW because of the competitive landscape. As far as wanting to move out of DFW to Love Field it is really based on the fact that we wanted to operate out of a isngle airport rather than two airports versus any comment on DFW, I think it is the best urn airport in the country and certainly the most cost efficient major airport.
ST: When you refer to the competitive landscape, you mean American Airlines' presence at DFW?
Cush: Absolutely. Competing head to head against American at DFW to two of their hubs, Chicago and Reagan National as well as one of their strongest focus cities LaGuardia, that is just not something we're going to do. We know the outcome of that. We've been able to build up a very nice presence from Los Angeles and San Francisco just because those are our strengths. It's very different at Love Field because Love Field is primarily an O&D airport where the schedules that will be flown by us as well as by Southwest will focus on local travelers. So instead of having 16 flights a day to Chicago maybe you can get by with three or four flights a day to Chicago because people aren't connecting through DFW. So while we will compete against American vigorously from Love Field, it will be a little bit of a different dynamic because we don't have to necessarily match their schedule because we will be at a different airport.
ST: Are your flights at DFW profitable?
Cush: Yes, they are.
ST: In 2006, you were an executive at American, helping the airline launch its new service at Love Field. At the time, you said you didn't think the operation would be profitable. What makes you believe that Virgin America can turn a profit on flights at Love Field where American could not?
Cush: It's a completely different situation. At American what they would be doing and I think the specific comments I had on those flights were on particular flights we were operating into Kansas City and St. Louis at the time. Those were basically a duplication of what American was already doing at DFW. My view was, and I still hold this view, that for American that would have number one created an operation at Love Field that would have been difficult to generate a profit and it would have eroded their power position at DFW. So they start competing with themselves at an airport that is 12 miles away. That was my concern at the time, but at the same time American was very focused, as they should have been, on protecting its market position in Dallas. I think where the city has ended up and where the area has ended up is a pretty good place. It was an eight-year sunset that everyone could plan for and now it is in progress and now the city has the opportunity to see some benefits from them.
I will make one other comment on this. I'm sensitive to the fact that the people in Tarrant County may think we're abandoning them and that's one of the unfortunate outcomes of this. The customers we do have in Tarrant County, it's unlikely they will drive to Love Field to fly us. But they will get a benefit out of this, the simple fact that if we're out of Love Field competing in the local market means that American is going to have to price match us at DFW. So us being a competitor at Love Field is going to have an impact on DFW pricing and American doesn't discriminate between Tarrant County and Dallas County residents, so the Tarrant County residents will be beneficiaries of us flying more places out of the Dallas area.
ST: You mentioned that residents on the west side of the Metroplex would be unlikely to drive to Love Field to fly on Virgin America. Some airline analysts speculated that since much of the growth in the Metroplex is on the west side that the Love Field gates would not be as attractive to carriers who currently operate out of DFW since they would be giving up access to that market. Why is Virgin America leaving that part of the market?
Cush: Very simply, we know it would be extremely difficult for us to compete on these routes out of DFW. So very simply we would not start these new routes out of DFW because of the competitive market. Also, we're a small carrier. Even with this expansion we're going to have 18 flights a day out of Love Field so we don't need access to the full population of the Metroplex, the full 6 or 7 million people to fill up our airplanes. We think we'll go for a smaller slice of the population base and geography and do just fine. The nice thing about Love Field is that it is very convenient to downtown Dallas as well as some of the denser population areas. We don't need access to 6 million people. We only need access to a slice of that that has a high propensity to travel.
There's a new airline interested in flying out of Dallas Love Field.
Virgin America said it plans to bid on the two gates at Dallas Love Field that American Airlines is required to divest as part of its merger agreement with US Airways.
If it wins the gates, Virgin America said it will offer daily nonstop flights to New York's LaGuardia airport, Washington D.C.'s Reagan National airport, Los Angeles, San Francisco and Chicago O'Hare airport.
The San Francisco-based carrier is 25 percent owned by Sir Richard Branson's Virgin Group and has been operating flights at Dallas/Fort Worth Airport to Los Angeles and San Francisco since 2010.
It says it will move its operations from DFW to Love Field in October 2014, if it wins the gates. When it first initiated service at DFW, the airport offered Virgin America $2 million in marketing cash and landing fee rebates.
Virgin America already received four take-off and landing slot pairs at Washington D.C.'s Reagan National Airport and twelve slot pairs at LaGuardia that American gave up for approval of its merger.
"The opportunity to expand our low-fare, upscale service in Dallas, allows us to not only spur fare competition for local consumers, but also provide business travelers with more choice and consistent flight options, so they can stay connected, comfortable and productive on these longer-haul flights," said Virgin America chief executive David Cush in a statement.
The carrier plans to run four daily roundtrips to LaGuardia, four daily roundtrips to Washington Reagan, three daily roundtrips to Los Angeles and three daily roundtrips to San Francisco. In 2015, Virgin America said it plans to add another daily roundtrip on its Los Angeles and San Francisco routes and add two daily rountrips to Chicago O'Hare.
Southwest Airlines and Delta Air Lines, who both currently operate out of Love Field, have also expressed interest in the gates.
"Unlike other airlines, including Delta and Virgin America, Southwest's only opportunity to expand service in North Texas is at Love Field due to restrictions in the compromise that led to the partial repeal of the Wright Amendment," said Southwest spokesman Brad Hawkins. "Southwest will actively participate in the process of re-allocating American's gates at Love Field."
Delta currently leases the American gates to operate regional jet service to Atlanta. After the Wright Amendment restrictions are lifted in October, Delta hopes to use the gates to fly to New York LaGuardia, Los Angeles, Detroit and Minneapolis-St. Paul.
American initiated service at Love Field in 2006 when Cush was American's general sales manager. At an event to show of its operations at Love Field shortly before the first flight, Cush admitted American "will have a difficult time making a profit" with its new service.
The airline pulled out in 2009 as it struggled to attract customers away from Southwest Airlines, which dominates passenger traffic at Love Field. The airport is currently renovating its terminal which is limited to 20 gates as part of the Wright Amendment compromise. Southwest controls 16 of those gates.
When the merger settlement agreement was announced last November, the Justice Department said it is interested in having other low-cost carriers such as JetBlue Airways or Spirit Airlines obtain gates that are divested as part of the settlement and not legacy carriers, like Delta and United Airlines.
A total of 304 American Airlines' flight attendants have applied for an voluntary buyout program at the Fort Worth-based carrier.
According to the Association of Professional Flight Attendants, Friday was the last day to apply for the program and the early-out is effective May 2014.
This is the second voluntary program offered to American flight attendants. As part of its contract negotiated in bankruptcy, American offered buyouts and a $40,000 severance payment to 2,200 flight attendants in 2012.
US Airways' pilots union took its seniority integration grievance to federal court late last week, filing a lawsuit against American Airlines, US Airways and American's pilots union.
In the lawsuit, the US Airline Pilots Association said the parties could not agree on a process to determine the seniority integration of the two pilot groups and that it should be determined by a federal arbiter.
"USAPA seeks declaratory and injunctive relief in the parties' dispute concerning the integration of seniority lists between the pilots of American and the pilots of US Airways under the McCaskill-Bond Amendment," the lawsuit said.
McCaskill-Bond is a federal law that was passed by Congress in 2007 in response to how American's union integrated the former TWA pilots and flight attendants. In that merger, the TWA employees were placed towards the bottom of the seniority lists and were subsequently furloughed during an economic downturn.
According to the filing, the Allied Pilots Association, which represents American pilots, and the two airlines filed grievances with the NMB in late February, saying that McCaskill-Bond did not apply to the dispute.
"The defendants have conclusively asserted a position that they are not obligated to comply with Section 13(a) in resolving the seniority list integration dispute," the suit said.
American declined to comment on the lawsuit.
-Last week, the General Accounting Office came out with a report looking at the looming pilot shortage in the aviation industry. Businessweek examined the economics behind the shortage in this article, saying, "the meager economics have prompted regionals to begin cutting service and parking airplanes when they're unable to staff cockpits—even higher pay isn't provoking an influx of pilots who are qualified under the new rules."
-Consumer travel advocate Christopher Elliott delved into airline frequent flyer programs and Delta's recent change to its mileage program in his latest column for USA Today. "Loyalty programs were never meant to be "fair," but what we have today is, in some respects, fairer than before. Now more than ever, it also offers a fair warning about the true nature of these addictive programs," Elliott writes.
-And my favorite article that I read this morning was this New York Times piece about airport chaplains at the nation's busiest airport, Atlanta's Hartsfield-Jackson. "As flight delays worsen, security lines bulge and nerves fray, chaplains at airports across the country cruise up and down concourses, casting a trained eye on the swirl of humanity in search of anybody who appears in need," the article says.
In the latest Air, Land & Sea podcast, Star-Telegram transportation reporter Gordon Dickson and I talk about flight attendant unions coming together at the new American and high-speed rail making progress between Dallas and Houston.
Southwest Airlines announced flights to Mexico as part of its integration of its AirTran Airways subsidiary.
The new flights will start on August 10 with daily nonstop service between Cancun and Atlanta and Baltimore. It will also operate daily flights between Los Cabos and Orange County, California. The Dallas-based carrier also announced Saturday-only flights between Cancun and Milwaukee and the Bahamas and Atlanta.
Southwest said it will also begin daily flights between Denver and Cancun on October 7 with Saturday-only flights between Denver and Los Cabos starting on October 11.
Earlier this year, Southwest had announced its first international destinations of Aruba, the Bahamas and Montego Bay. They were the first routes that Southwest transitioned from AirTran Airways, the airline it purchased in May 2011.
Thousands of flights were canceled on Monday as another winter storm hit the U.S. over the weekend.
American Airlines said it had canceled 375 flights including 140 flights at Dallas/Fort Worth Airport.
One of its aircraft, an MD-80, slid off the runway on to the grass on Monday morning as it was taxiing to the maintenance hangar for service. American spokesman Matt Miller said there were no passengers on board and no injuries in the incident.
The temperature was 18 degrees at DFW on Monday morning, although with the wind chill, it felt like 2 degrees outside.
According to aviation website, Flightstats.com, U.S. airlines had canceled 2,372 flights as of 9:30 a.m. Monday morning, mostly at airports on the East Coast which were experiencing snow and ice conditions.
UPDATE: An American Airlines aircraft that arrived from Leon, Mexico, hit the airport terminal building as it was being towed to Gate D40. American said the left winglet of the Airbus A319 caused minor cosmetic damage to the building and no injuries occured during the incident.
Flight attendants at American Airlines and US Airways are a step closer to becoming one.
US Airways flight attendants voted Friday for an agreement allowing the Association of Professional Flight Attendants to become their bargaining agent.
APFA currently represents American Airlines' flight attendants. The US Airways workers are currently represented by the Association of Flight Attendants-CWA.
Once the representation agreement is filed with the National Mediation Board, APFA will represent 24,000 flight attendants at the new American Airlines. The agreement calls for contract talks to begin with American management within 60 days.
"We will work diligently over the next year to ensure our contract reflects our valuable contributions to the success of American Airlines. Unity pays," said AFA US Airways president Roger Holmin.
The unions will form a joint negotiating agreement and will present American management with a contract proposal in the next two months. American has agreed to meet with the flight attendants' negotiators for the next five months to try to reach a new contract for the flight attendants.
"With this ratification vote, we can hit the ground running on negotiations for a new joint contract," said APFA president Laura Glading. The two unions previously agreed on a seniority integration process based on date-of-hire for the flight attendants.
The negotiating process includes arbitration if the two sides can't agree on a new contract and sets a timeline that could lead to a new contract implemented by the beginning of 2015.
American CEO Doug Parker congratulated union leaders for quickly reaching agreements on contract bargaining and union representation.
"We are very pleased that the people of American are working together in an environment of coordinated, collaborative teamwork and mutual respect to restore American as the greatest airline in the world," Parker said in a prepared statement.
The Fort Worth Police Department will break ground on a new home for its helicopters next month at Fort Worth Meacham Airport, a city official said Thursday.
The hangar will allow police to expand their air support fleet and can handle multiple helicopters, said Bill Welstead, director of Fort Worth's airport system.
"The new facility is truly going to allow them to meet their demands within this growing city," Welstead said. Currently, the Police Department keeps its helicopters at its training facility near downtown.
The police hangar is one of several construction projects planned for Meacham, which has more than 100,000 aircraft operations each year with private jets and wide-body planes landing at the north-side airport.
At a Fort Worth Chamber of Commerce luncheon, Welstead outlined multimillion-dollar projects to improve taxiways, runway aprons and a perimeter road for fuel trucks. Recently, the airport replaced 30-year-old asphalt on a runway apron using $2.3 million in federal funding.
"Meacham looks old. It is old. But we have the ability to polish this airport," Welstead told the audience that included local business leaders.
The airport is expected to begin renovating its administration building in December, a $17 million project funded by federal and state aviation dollars. Welstead said the four-story building will be completed in 18 months and the airport has already leased out an entire floor to a tenant.
Several airport tenants are also renovating and upgrading hangar facilities at the airport, Welstead said. Texas Jet, a fixed-base operator, completed construction of a new hangar and American Aero recently renovated the old American Airlines hangar.
The airport also hopes to attract more shows and events like AirportFest which was part of the Aircraft Owners and Pilot Operators' national convention held in Fort Worth last October, Welstead said.
Someone wants to use an Airbus A380 — the world's largest passenger plane — on its flights to Dallas/Fort Worth Airport. But the carrier remains a mystery.
According to the agenda for the Dallas-Fort Worth Airport board meeting next week, airport staff will ask the board to approve a $2.8 million contract to modify jet bridges at Terminal D to accommodate the double-decker aircraft.
The staff anticipates needing the modified jet bridges by Oct. 1.
DFW Airport spokesman David Magana declined to comment on which carrier wants to fly an A380 into North Texas, saying, "it will be up to the airline to announce."
One carrier that may be upgrading its route to the A380 is Emirates Airlines. The Persian Gulf carrier launched daily nonstop service to Dubai in 2012 and has seen load factors over 90 percent on its flights, airport staff has said at previous board meetings.
Emirates vice president Jim Baxter told Fort Worth business leaders last year that the DFW-Dubai route had "exceeded expectations" with the daily flight often close to full and was profitable for the carrier shortly after it started.
The airline currently operates the 16-hour flight with a Boeing 777-200LR that has 226 seats. Emirates is the largest operator of A380 aircraft in the world with 44 in its fleet and 97 on order from Airbus. Its A380 can carry between 489 to 517 passengers depending on the configuration.
American Airlines, which is DFW Airport's largest carrier, does not currently have an A380s or orders to purchase the double-decker aircraft.
But another possibility is American's oneworld alliance partner, British Airways, which has a few A380s in its fleet. British Airways recently announced it will use the aircraft on service between London and Singapore and later this year on its London-Washington D.C. Dulles routes.
Other international carriers that currently serve DFW that also have A380s in their fleet are Qantas Airways, Korean Air and Lufthansa. Qatar Airways and Etihad Airways have announced service to DFW starting this year but each has said it will use a Boeing 777 on the route.
Last September, a Lufthansa A380 landed at DFW after it was diverted from its original destination of Houston because of severe weather. Another Lufthansa A380 diverted to DFW in December, also because of weather.
If you want to know where the A380 is currently flying, check out this route map by Airbus.
American Airlines chief executive Doug Parker is calling on Arizona governor Jan Brewer to veto a bill that would allow businesses to deny service to customers based on the business owner's religious views.
Parker, who lived in Arizona for over a decade as chief executive of America West and then US Airways, sent a letter to Brewer saying the law could hurt local businesses including American's.
"Our economy thrives best when the doors of commerce are open to all. This bill sends the wrong message," Parker said in a letter sent on Monday.
Critics of Arizona Senate Bill 1062 say the bill would discriminate against gays and lesbians as business owners could deny service as long as they were acting solely on their religious beliefs. Those in favor of the bill say the law protects religious freedom of business owners.
American, which merged with Tempe-based US Airways in December, has committed to keeping a large hub in Phoenix for three years.
Keep reading for the full letter from Parker.
Dear Governor Brewer:
On behalf of the new American Airlines, I write to add our voice to the Greater Phoenix Economic Council and numerous others in the Arizona business community in urging you to veto Senate Bill 1062. As you well know, our merged company has pledged to continue the strong presence historically provided by US Airways in Arizona. Our ability to provide robust air service to Arizona, however, is highly dependent on a healthy business climate and growing tourist and convention industry.
Few states suffered as greatly during the recession as Arizona. Thanks to a collaborative effort between the business and civic communities, we have been able to generate an economic comeback that is beginning to show great signs of success. There is genuine concern throughout the business community that this bill, if signed into law, would jeopardize all that has been accomplished so far. Wholly apart from the stated intent of this legislation, the reality is that it has the very real potential of slowing down the
momentum we have achieved by reducing the desire of businesses to locate in Arizona and depressing the travel and tourism component of the economy if both convention traffic and individual tourists decide to go elsewhere. Our economy thrives best when the doors of commerce are open to all. This bill sends the wrong message.
At American Airlines, we respect and celebrate the strength and diversity of our customers, employees, and communities in every way we can. I can assure you that this proposed legislation is causing tremendous concerns for our employees, particularly those who live and work in Arizona. Hence I also write on behalf of these dedicated individuals who take pride in their work, families, and communities. I am confident that your veto of this bill would be welcomed with great enthusiasm by the American family.
Doug Parker
Southwest Airlines said it has returned the Sunday-only take-off and landing slot at Washington Reagan National Airport back to the Federal Aviation Administration.
The Dallas-based carrier had acquired 27 daily slots and the Sunday pair that were part of the 52 slots that American Airlines was required to divest as part of its merger with US Airways.
"We operate some Saturday only flights, but not Sunday only in most cases," said Southwest spokeswoman Whitney Eichinger. "For our schedule, the other slots were much more appealing."
JetBlue Airways received 20 pairs and Virgin America received four pairs. The U.S. Department of Justice must first approve the sale and terms of the deals were not disclosed.
-The New York Daily News reports that American Airlines will boost the wages of contract workers at its New York airports as New York politicians pressure companies to better compensate workers at JFK and LaGuardia. More than 1,000 porters, baggage handlers and other employees who work for companies that are under contract for American will get an immediate $1 raise and a second raise to $10.10 early next year, the article says.
-Cranky Flier Brett Snyder has come across a unique way that Great Lakes Aviation is dealing with the new pilot flight time duty rules and resulting pilot shortage. According to his blog post, the regional carrier has ripped out more than half their seats in their Beechcraft 1900D since the FAA has a different set of rules for airlines who operate aircraft with less than 30 seats.
-Motley Fool contributer Adam Levine-Weinberg takes a closer look at three start-up carriers in the U.S., PEOPLExpress, California Pacific Airlines and Eastern Airlines. Two of them are familiar names in the industry that went belly-up post-deregulation and Levine-Weinberg examines if any of the airlines have made it through all of the government red tape and are ready to fly.
In dueling messages sent out to pilots this week, the unions representing American Airlines and US Airways pilots are arguing over the process of how to come up with a seniority integration list.
The US Airline Pilots Association said the Allied Pilots Association, which represents American pilots, wants to change the process on how the two unions discuss creating a seniority integration list.
APA shot back saying that the accusation is "misguided" adding that its position on negotiations between the two pilot groups and American's management has been consistent. APA said it has filed for single-employer status with the National Mediation Board as the two unions had previously agreed and at some point APA will become the legal representative for both groups.
"If we cannot negotiate a list, then we will arbitrate a list; in either case, the objective of the process will be a list that recognizes and maintains the pre-merger career expectations of every pilot at the "new" American Airlines and ensures equitable sharing of any consequential shrinkage or growth between the pre-merger pilot groups," APA said in its message
On Friday, USAPA responded saying that APA is insisting on language that USAPA waive its rights in the seniority integration process and that could harm US Airways' pilots.
"If APA is later named the new collective bargaining agent for all pilots, their language would give APA and the Company the right to modify the protocol agreement and override the agreements made with USAPA," USAPA said.
Keep reading for the APA message sent out this week and the USAPA message that went out on Friday.
APA message sent out on Thursday
As part of APA's ongoing effort to keep you informed about the progress of the merger, we provide this update on the seniority-integration process and the single-employer proceeding before the National Mediation Board (NMB).
Seniority Integration
On Feb. 19, 2014, the US Airline Pilots Association (USAPA) Merger Committee issued a "Protocol Agreement Update" accusing APA of insisting on "a significant change that would radically change the process you accepted a year ago through ratification of the MOU." That update is seriously misguided. APA's position remained consistent throughout the protocol negotiations.
By way of background, the MOU that became effective Dec. 9, 2013, provides for seniority-integration negotiations to begin as soon as possible after the merger. If the parties are unable to reach a negotiated settlement, the McCaskill-Bond arbitration will occur after the parties' agreement on a Joint Collective Bargaining Agreement (JCBA) and after the NMB finds that US Airways and American Airlines are operating as a single transportation system. The MOU also provides that the parties will negotiate a Seniority Integration Protocol Agreement ("Protocol Agreement") within 30 days of the merger. That timeline has been extended several times by mutual agreement of the parties.
On Feb. 19, 2014, counsel for American Airlines informed APA and USAPA that the parties had failed to reach an agreement on the terms of a Protocol Agreement. USAPA immediately posted an update that stated: "Unfortunately at the last minute, APA insisted on a significant change that would radically change the process you accepted a year ago through ratification of the MOU. . . . With little notice, APA's Merger Committee demanded USAPA allow APA and the Company the option to modify the Protocol Agreement should APA be certified as the sole bargaining representative by the NMB." This statement is incorrect in every respect.
APA and the company have always understood that, at some point after a ruling by the NMB on the single-carrier proceeding, APA would assume representation for pilots at the two carriers and, as a consequence, take on a duty of fair representation to all of the pilots. In recognition of this legally mandated state of affairs, APA therefore agreed that, up until the time APA becomes the representative of the entire pilot group, USAPA would be the sole representative of the pilots at US Airways and handle the merger negotiations within its discretion. However, consistent with the law, once APA becomes the representative of all pilots, APA would of necessity displace USAPA and have authority as the certified collective bargaining representative over the process. USAPA has always insisted that it maintain institutional involvement and a degree of control over the process even after it ceases to be a lawful collective bargaining representative. That, however, cannot be the case under the law, as the Arizona district court judge expressly ruled.
In the litigation between the US Airways East and West pilots over their inability to achieve an integrated seniority list in the eight years since their merger, Judge Silver accepted USAPA's argument opposing the West pilots' request for McCaskill-Bond status. She did so because she accepted the proposition that only the certified representative was entitled to participate in the process. However, in doing so, the court stated that it "has no doubt that — as is USAPA's consistent practice — USAPA will change its position when it needs to do so to fit its hard and unyielding view on seniority. . . . The Court's patience with USAPA has run out. . . . And when USAPA is no longer the certified representative, it must immediately stop participating in the seniority integration."
USAPA's continuing effort to maintain its role in the McCaskill-Bond process even after APA becomes the certified representative of all pilots at the "new" American Airlines runs directly counter to Judge Silver's unambiguous directive. Given that APA will have the legal duty to represent all pilots and, potentially, liability for failing to do so, and especially in light of Judge Silver's express order, neither APA nor the company could possibly agree to let USAPA control the process after it ceased to be the collective bargaining representative. USAPA's effort to blame APA for this state of affairs is simply nonsense.
Single-Employer Proceeding
As we have previously informed you, APA filed for a declaration of single-employer status on Jan. 14, 2014, and filed its Position Statement in support of its request Feb. 19. USAPA filed an opposition Position Statement, arguing principally that the NMB should wait until the parties reach the JCBA (even though we are all already operating under a single collective bargaining agreement) and produce an integrated seniority list.
It is ironic that USAPA would suggest now that there should be no single transportation system finding without an integrated seniority list, given that it made the polar opposite argument in support of its successful petition to have US Airways and America West declared a single transportation system in order to force an election to decertify the Air Line Pilots Association (ALPA). In that case, ALPA made precisely the same argument that USAPA makes now, and USAPA successfully opposed it. As a result, the NMB found that a single transportation system existed even though no single collective bargaining agreement existed. In fact, as you know, in the eight years after the US Airways–America West merger and six years after the NMB's January 2008 single-carrier determination, there never was either a single collective bargaining agreement or an integrated seniority list at US Airways.
USAPA's position in the current single-carrier proceeding also contradicts the MOU it negotiated and its members ratified. The parties contemplated that the JCBA would not be final until after a finding by the NMB that the two carriers constituted a single transportation system, and the McCaskill-Bond arbitration could not even begin until after the JCBA.
What's Next?
Failure to reach a Protocol Agreement during the time allotted by the MOU has no practical effect on the timeline for implementation of an integrated seniority list. The MOU itself contemplates the probability that negotiations will not result in an integrated list. With that possibility in mind, it incorporates a timeline and procedure for a final and binding interest arbitration that would occur subsequent to the JCBA process and result in a "fair and equitable" final list that integrates the three separate lists that are currently in effect at the "new" American Airlines. Also, the MOU does not preclude future negotiations between the parties regarding seniority integration should that opportunity present itself as we move through the NMB's single-carrier investigation and JCBA process. If we cannot negotiate a list, then we will arbitrate a list; in either case, the objective of the process will be a list that recognizes and maintains the pre-merger career expectations of every pilot at the "new" American Airlines and ensures equitable sharing of any consequential shrinkage or growth between the pre-merger pilot groups.
USAPA message on Friday
Fellow Pilots,
A year ago, you approved the MOU that became the foundation for the merger and creation of the largest airline in the world, the New American Airlines. Since then, your union has continued to work with all parties to ensure this ratified agreement is completely implemented.
Most recently, your union has been working with APA on JCBA negotiations and on a protocol agreement. This protocol agreement was designed to establish the process for seniority list integration between our two unions. Unfortunately, as reported to you on Wednesdayby the Merger Committee, the two sides are now at an impasse, and past the deadline for a negotiated protocol agreement.
This impasse occurred when APA insisted on language that required USAPA to waive its rights under the McCaskill Bond Amendment and could seriously harm US Airways pilots in the future. If APA is later named the new collective bargaining agent for all pilots, their language would give APA and the Company the right to modify the protocol agreement and override the agreements made with USAPA. Changing rules like this would create an unfair situation and subvert the McCaskill-Bond seniority integration process that was designed to prevent unfair merger practices. USAPA has a duty to protect the interests of our pilots and could not agree to waive these important rights.
McCaskill-Bond is an important law passed after American Airlines acquired Trans World Airlines. The seniority integrations of that merger led to the wholesale disruption of TWA crewmembers lives. As a result, Federal legislation was passed to establish a procedure where such disparate results could never happen again. The McCaskill-Bond law will govern seniority integrations for the American/US Airways merger and the law memorializes sections 3 and 13 of the Allegheny Mohawk LLPs.
Although the procedures of the McCaskill-Bond legislation are in place, the Company and APA appear to be attempting to accelerate the NMB procedures for determining the bargaining representative of the pilots in order to subvert the authority of USAPA in the seniority integration process. In doing so APA is asserting that once it becomes the bargaining representative for all of our pilots, it will have the right to control the process and the merger committee that will represent the USAPA pilots in the arbitration.
For this reason, your union filed a request yesterday (click here) with the NMB for a list of arbitrators under section 13(a) of the Allegheny-Mohawk LLPs. This provision provides that when a dispute or controversy cannot be settled by the affected parties within 20 days, either party may refer it to an arbitrator selected from a panel of seven names furnished by the NMB. The parties involved select the arbitrator by alternately striking names until one remains. The selected arbitrator must render a decision within 90 days unless the parties agree to extend that time limit. Invoking this process will ensure USAPA's Merger Committee can represent you through the seniority integration process.
This is not a step taken lightly, but it is necessary to make sure all pilots of the new American Airlines are treated fairly. Moreover, your union is considering all opportunities to protect your rights. While negotiating a protocol agreement with APA was certainly preferable, we remain confident in our intent and ability to arrive at a fair and equitable seniority integration under the protections of the McCaskill-Bond legislation.
We will keep you informed of future developments.
Regards,Gary Hummel, President
On Thursday, several Southwest Airlines ground crew workers picketed outside of a company meeting in Phoenix, protesting the lack of progress in its contract negotiations with the Dallas-based airline.
Workers held signs that said "bags fly free because of me" and "Southwest Airlines, the former 'LUV' airline" at the informational picket.
"We all used to love working at the 'LUV' airline, but not anymore," said Transport Workers Union Local 555 president Charles Cerf. "The question [Southwest CEO] Gary Kelly should answer while he's in Phoenix is , why mess with success?"
The ground crew workers have been in contract negotiations since July 2011 and have not had a base pay raise since 2010.
American Airlines Group has backed away from its threat to liquidate its regional carrier American Eagle but it still plans to shift planes away from the regional carrier after the union rejected a 10-year contract, the union's top officer said Thursday.
"The agreement we chose not to pursue last week is all [management is] willing to do, that is their line in the sand and they're not going to do anything else," said Bill Sprague, chairman of the Air Line Pilots Association's Eagle unit.
In a letter sent to pilots on Thursday, the Fort Worth-based parent of American and American Eagle said it's likely that CRJ-700s currently flown by Eagle, which seat about 70 passengers, will be moved to another carrier.
"Now, with the future of our flying so unclear, we anticipate having a difficult time staffing our cockpits," said American Eagle's vice president of flight, Jim Winkley, in the letter. "The CRJs are the most likely candidate to be removed from Eagle, because of costs and complexities of operating multiple fleet types."
Winkley reiterated that the company would not be returning to the bargaining table with Eagle's pilots union.
The union and management have not had any sit-down meetings since the union leadership voted against the proposed contract last Wednesday. Sprague said pilots are taking American's threat very seriously, which is creating stress among the carrier's 2,800 pilots. However, he added that pilots have sent hundreds of emails and phone calls to their union leaders in support of not accepting the concessionary contract.
American had proposed allowing Eagle pilots to fly new larger regional aircraft in exchange for a wage freeze until 2018 and the elimination of profit-sharing. Sprague said pilots are unwilling to accept the ten-year contract that would lock them into wage rates near the bottom of the industry.
American has said it will rename its regional carrier Envoy this spring as it expands its use of outside carriers to fly routes under the Eagle brand.
Eagle's pilots are also waiting to see the results of another regional carrier's pilot contract negotiations, Republic Airways. Late last week, Republic announced that it had reached a tentative deal with its pilots union that includes significant pay increases. Republic's pilots union leaders are scheduled to vote on the contract on Friday. Earlier this month, Republic said it was grounding 27 jets because it didn't have enough pilots to operate them.
At American Eagle, a new hire makes $26 an hour. Based on a guarantee of 72 hours a month, the first officer would make about $22,464. Eagle is offering $5,000 signing bonuses to new pilots who agree to stay with the carrier for two years. Captains, however, can earn significantly more, with pay rates of $67 to $104 an hour.
Sprague said Eagle pilots feel that they have options to either move to another regional carrier with better wages or to a mainline airline, like Delta Air Lines or American, which are currently hiring pilots. Eagle is losing about 30 pilots a month to other airlines or careers, Sprague said. That figure does not include the 20 pilots moving to American each month as part of the "flow-through" clause in its existing contract.
"We are interested in seeing the success of a carrier that still respects us as the pilot group that we are," Sprague said. "The ball is in their court right now."
Virgin America said it has won four slot pairs at Reagan National Airport in Washington D.C. that American Airlines was forced to give up as part of its merger with US Airways.
Last month, Southwest Airlines received 27 slot pairs and JetBlue Airways received 20 slot pairs as part of American's divestiture required by the U.S. Department of Justice.
"We're pleased to have the opportunity to offer our new service at DCA and LGA and help shake up the market for consumers," said Virgin America chief executive David Cush.
Virgin America currently offers flights between Washington Dulles airport and San Francisco and Los Angeles.
American Airlines no longer needs to cut 400 workers from its Tulsa maintenance base and 70 employees from its engine maintenance facility in Fort Worth as the carrier plans to implement seven-day operations at the two facilities.
On Thursday, American told union leaders by shifting the engine maintenance facility, which is called TAESL, to a seven-day operation from five days, it will save jobs. TAESL is a joint venture with Rolls-Royce that employs about 600 workers at Alliance Airport.
"Enhanced seven-day coverage at either location is cost effective, saves jobs, and provides opportunities for our employees. In addition, the increased flexibility provides both organizations the ability to absorb additional work, if necessary," the Transport Workers union said in a message posted on its website on Thursday.
The company will be able to keep all 6,300 workers busy at Tulsa by shifting Boeing 737 and MD80 work to the overhaul maintenance base. The work is currently handled at the maintenance hanger at Dallas/Fort Worth Airport which will be able to focus on new delivered aircraft.
American is also offering voluntary buyouts to Tulsa workers but does not have a specific goal for how many workers it needs to take the buyout.
"As we're revitalizing our fleet and completing several aircraft modification incentives in anticipation of American's changing operational needs, we continue to collaborate with the Transport Workers Union (TWU) to find ways to mitigate any potential labor surplus in Tulsa and at the Alliance Airport maintenance base (AFW) - TAESL," the company said in a statement. "These efforts to rebalance operations through work schedules and workload will ensure that the impact to our Tulsa and TAESL operations remains minimal."
In early 2013, American closed its maintenance base at Alliance, shifting the work to Tulsa and to third-party maintenance companies. Even though American has exited bankruptcy, it has not yet resolved its lease on the Alliance facility.
A bankruptcy filing made on February 6 asked the court to push back a hearing on the Alliance lease until mid-March. Last August, American had reached a deal with the city of Fort Worth to terminate its lease so another company could use the building. The agreement, filed in court, said American would receive $9.75 million from AFW Solutions while American would pay $1.5 million for equipment it uses at TAESL. However, the agreement has yet to be finalized by the bankruptcy court.
-The Wall Street Journal says that "the widening shortage of U.S. airline pilots is spotlighting the structure of an industry built on starting salaries for regional-airline pilots that are roughly equivalent to fast-food wages," in this article. Starting salaries at regional carriers average $22,400 a year, the newspaper found.
-If you haven't heard about Norwegian Air Shuttle yet, you probably will soon. The carrier, which offers low fares to Europe from JFK and Ft. Lauderdale, plans to add more U.S. cities even as industry doubts whether it will be successful. "Norwegian's larger competitors in the sky tend to dismiss the upstart carrier as an insignificant gimmick that's bound to fail. Other forces in the industry have been openly critical of Norwegian's practices, accusing the airline of everything from turning its back on its home country, to risking passenger safety, to scheming ways to avoid union rules of various countries, all in the name of lowering costs," Time magazine says in this article.
-And in case you missed it, I talked to several industry analysts about the viability of American Eagle and if American Airlines needs the regional carrier in this article that ran on Friday. Industry analysts say it's hard to separate rhetoric from reality for the regional carrier as labor talks appear to be at a standstill. Management "is trying to extract concessions from a group that is clearly high-priced relative to others in the regional space. But at the same time, it's a sector of the industry that is suffering from the problem of finding sufficient people to do the work," said Bill Swelbar, an airline researcher at the Massachusetts Institute of Technology. Given concerns about a shortage of regional airline pilots, he said, the union is "playing poker with face cards in their hands."
Catching up from a day off on Friday, there were two notable news events at American Airlines that deserved their own blog post on Sky Talk instead of grouping them in with our usual Monday Midday Must-reads.
First, American chief executive Doug Parker and other top executives decided to cash in on some of their American stock on Friday.
According to filings made with the Securities and Exchange Commission, Parker netting $13.4 million in profit from selling shares and options he had earned while CEO of US Airways. Parker still owns about 1.4 million shares which is worth $47 million based on Friday's closing price of the stock.
Some of Parker's stock options were set to expire later this month. The Associated Press reports that Parker and his wife, Gwen, told employees they will donate $1 million to a fund that helps employees with financial problems.
American president Scott Kirby, CFO Derek Kerr and executive vice president Stephen Johnson also exercised and sold shares last week.
And then there was this incident on Sunday at BWI airport in Baltimore.
An MD-80 was scheduled to depart BWI for Dallas/Fort Worth on Sunday afternoon when it was struck by an American ground support vehicle on the tarmac.
No passengers were injured and the driver of the vehicle was taken to the hospital for minor injuries and released. American told the Baltimore Sun that the fiberglass cover on the front of the plane and the landing gear sustained damage.
Top Pentagon leaders discussed both the problems and promise of Lockheed Martin's F-35 fighter jet program during a segment on 60 Minutes Sunday night.
The piece, teased by artwork showing an F-35 in flight with a trail of dollar bills spewing in its wake, highlighted the military's efforts to rein in the growing cost of "the most expensive weapons system ever" -- estimated at $400 billion for 2,400 planes.
It rehashed the host of technical problems that have plagued the plane's development and summed up its problems by describing the Fort Worth-made product as seven years behind schedule and $160 billion over budget.
CBS national security correspondent David Martin was filmed walking through Lockheed's west Fort Worth factory talking with Lt. Gen. Christopher Bogdan, who took over as the military's F-35 program manager last year. Bogdan said Lockheed now only receives a profit on its production if each plane moves to its next station in the plant on time and meets the prescribed quality.
"Long gone is the time when we're going to pay for mistake after mistake after mistake," he said.
Lockheed Martin officials declined to be interviewed for the segment. The company only issued a statement saying it recognizes that the program has had challenges, and that it's working with its customers to address those challenges.
Despite continued problems with the plane -- the segment highlighted tires that are wearing out faster than expected -- a series of Pentagon leaders appeared to praise the F-35 as a quantum leap in technology, a flying computer that will give the U.S. military a decided advantage in any future aerial conflict.
Asked whether the program is now under control, the Pentagon acquisition chief, Frank Kendall, said, "Yes, it is."
And Bogdan said, "I don't see any scenario where we are walking back away from this program. We're going to buy a lot of these airplanes."
-- Steve Kaskovich
American Airlines will start looking to other regional carriers to handle its short-haul flights now that American Eagle's pilots union leaders voted against a new contract last night.
In a letter sent to all Eagle employees, American Eagle president Pedro Fabregas said the mainline carrier has "no choice but to begin looking for another regional carrier."
"I have no reason to believe American will offer us new large regional jet flying after these unsuccessful negotiations," Fabregas wrote.
The tentative agreement would have guaranteed that 60 of the new Embraer 175 aircraft that American Airlines Group ordered in December would be used with Eagle. In exchange for the aircraft, the pilots' pay scales would be frozen until 2018 and profit-sharing would be eliminated.
Keep reading for the full letter from Fabregas.
ALPA MEC Declines to Send Agreement to Our Pilots for a Ratification Vote
Dear Team,
I am extremely disappointed the Master Executive Council (MEC) of the Air Line Pilots Association (ALPA) decided yesterday not to send the Tentative Agreement (TA) to our pilots for a ratification vote. Unfortunately, their decision to deny our pilots a vote means the loss of what would have been a very important opportunity for each individual pilot, our company and all the people who work here.
Before discussing what this means for us moving forward, I want to give you some background about what happened between the time the negotiations began and yesterday's MEC decision. Beginning last December, our team worked tirelessly with the MEC's negotiating committee to craft an agreement that not only contained compromises by both sides, but also would have benefited both the company and our pilots. On Jan. 10, the MEC ultimately agreed to what became the Agreement in Principle (AIP). The parties then began working over the last month to develop detailed contract language from the AIP to create the TA.
The TA's terms addressed each of the most important priorities for our pilots that ALPA identified, while staying within the economic framework supported by company. If ratified by our pilots, it would have: enhanced our pilots' job security; improved their ability to quickly advance their careers here and at American Airlines with industry-leading flow through; provided us with our first-ever fleet commitment for a minimum of 170 aircraft; and ensured the placement of new, larger regional jets, the Embraer 175s (E175), at our company. The resulting language from this back and forth was deemed satisfactory and in keeping with the AIP by both the company and the MEC's negotiating committee. This was then sent to the MEC and yesterday they declined to send it out for a pilot vote.
American has now informed us they have no choice but to begin looking for another regional carrier or carriers to operate their E175s. American has held off on making this decision as long as possible, as they wanted to give our pilots the chance to do this flying. This was discussed with ALPA and with yesterday's MEC decision, American can't wait any longer and will begin these efforts immediately.
American Eagle Airlines will continue to work toward making our flying operation as competitive as possible while addressing the downsizing of our fleet and related staffing in the coming years. Unfortunately, many difficult decisions will have to be made during this time. We will proceed with retiring some of the smaller aircraft in our current fleet. American can also be expected to look for more economic options to provide regional feed and, eventually, other and more cost-effective carriers will fly the larger aircraft currently on our certificate such as the Bombardier CRJ700s.
While the AIP would have offered our pilots and our flying business a robust future, I do want to stress our company does not and has not relied on flying alone to generate growth and revenue. American Eagle Airlines will remain an airline, even with our reduced flying operation. The ALPA MEC's statement asking us to provide a timetable for the company's "liquidation" is not something we can provide as we are not planning to shut down the airline. Our ground handling operation continues to thrive and we have added new business and employees there at a rapid pace and will aggressively seek to continue this trend. The MEC's decision does not change or impact this and opportunities still exist there, but I have no reason to believe American will offer us new large regional jet flying after these unsuccessful negotiations.
I commit to keeping you updated on this process, news and developments as we move forward and as more details are known.
As always, thank you for all of your work on behalf of our customers and company.
Leaders of the American Eagle pilots union on Wednesday rejected a recent contract agreement reached by negotiators for the airline and the Air Line Pilots Association, meaning it will not be sent to 3,000 Eagle pilots for a vote.
The contract rejection could jeopardize the future of American Eagle as the union said company negotiaters stated numerous times that the regional carrier will be downsized until "it is small enough to liquidate."
During a meeting at Dallas/Fort Worth Airport's Grand Hyatt hotel Wednesday, the union's master executive council voted against the 10-year deal, which would have given the regional carrier, owned by American Airlines Group, new Embraer 175 jets in return for concessions.
"The pilots negotiated and signed a concessionary agreement during the recent bankruptcy, and management asked us soon after AAG exited bankruptcy for additional, significant concessions," union Chairman William Sprague said in a memo sent to pilots Wednesday evening. "Our pilots decided they were not willing to work for less than the company is already paying our peers."
The union said it will help pilots find placement at other airlines and will ask management for the timetable for the possible liquidation of American Eagle.
Fort Worth-based American Airlines Group did not have an immediate comment. Its regional carrier is scheduled to be renamed Envoy this spring as the company moves forward with its strategy to use other third-party airlines to operate short-haul flights under the American Eagle brand.
In January, the union's negotiating committee and management reached an agreement guaranteeing that 60 of the new Embraer 175 aircraft that American Airlines Group ordered in December would be used with Eagle. In exchange for the aircraft, the pilots' pay scales would be frozen until 2018 and profit-sharing would be eliminated.
The deal included options for 90 other aircraft to be operated by the regional carrier. The company also agreed to hire more Eagle pilots at American Airlines' mainline operations, with up to 50 percent of each pilot hiring class consisting of Eagle pilots.
Although pilots would receive 1 percent pay increases starting in 2018, the captain pay scale would be capped at 12 years of service, and the first-officer pay scale capped at four years of service.
The employee contribution for medical insurance would also increase from 30 to 35 percent by 2017.
MEC Newsblast - MEC Meeting Result
Fellow Pilots:
The Master Executive Council of the American Eagle Pilot's Union, the Airline Pilots Association (ALPA), voted today to reject management's recent concessionary proposal. The company proposal would have given American Airlines Group (AAG) contract concessions in return for refleeting American Eagle Airlines with new Embraer 175 jets.
Company representatives made it clear that should the pilots and management fail to reach a deal, the company will not entertain future negotiations. Negotiators for AAG also stated numerous times that if a deal fails to be ratified, American Eagle Airlines will be downsized continually until it is small enough to liquidate.
Captain William Sprague, Chairman of the pilot's union had this to say: "The vote today was about the future of Eagle pilots and the regional airline pilot profession. The pilots negotiated and signed a concessionary agreement during the recent bankruptcy, and management asked us soon after AAG exited bankruptcy for additional, significant concessions. Our pilots decided they were not willing to work for less than the company is already paying our peers. We will now begin the process of assisting our pilots in identifying alternative career options within the industry."
During the coming days, ALPA will be working with the American Eagle pilots to help them find placement with other airlines. ALPA representatives will ask management for their timetable regarding the liquidation of American Eagle. Stay engaged as we move forward. The need for unity is more critical now than any other time in our history.
John Gardner, Chairman
EGL ALPA Communications Committee
The American Eagle Master Executive Council (MEC), represented by the Air Line Pilots Association, Int'l, voted today to reject a recently negotiated agreement that would have provided contract concessions in return for American Airlines Group (AAG) refleeting American Eagle Airlines with new Embraer 175 regional jets.
"The vote today was about the future of our pilots' pay and working conditions," said Capt. William Sprague, chairman of the Eagle MEC. "Eagle pilots ratified a concessionary agreement during AMR's bankruptcy in 2012, but our management wanted to reengage us for additional concessions a mere 10 days after AAG exited bankruptcy.
"Our elected representatives agreed that this new round of concessions was asking too much of a pilot group that has already given up previously agreed-to contractual work rules and benefits in order to ensure American Eagle's solvency. We can no longer stand by and watch our wages continue to be eroded when profits continue to be made.
"Company representatives made it clear during these negotiations that, should the agreement be rejected, AAG will place additional aircraft with other carriers, closing the door on additional opportunities for the Eagle pilots. The Eagle MEC will explore all options in the coming weeks to advance the interests of Eagle pilots."
A little more than half of Southwest Airlines' flights arrived on time in December as bad weather and operational problems in Chicago hurt the airline's flight schedule, making it the worst on-time performer among U.S. carriers.
All of the U.S. airlines had difficulty getting flights to their destinations on -time as they reported an on-time arrival rate of 68.9 percent in December, down from 76.6 percent in Deecember 2012. Snow and ice storms across most of the country led carriers to cancel 2.9 percent of their scheduled flights, according to the Bureau of Transportation Statitsics report released on Tuesday.
Hawaiian Airlines, which operates in the moderate climate of Hawaii, had the best on-time arrival rate of 92.4 percent while Southwest's arrival rate was 57.7 percent.
Of the 16 carriers who reported on-time statistics to the BTS, American Airlines was in ninth-place with an on-time rate of 70.5 percent for the month while its regional carrier, American Eagle, was in fourteenth place with an on-time rate of 60.5 percent.
The Fort Worth-based carriers had the highest rate of canceled flights with American Eagle cancelling 9.4 percent of its flights in December and American cancelling 6.5 percent. Most of the cancellations came over a four-day stretch at its hub at Dallas/Fort Worth Airport when an ice storm made for slick runway conditions.
Airlines reported ten tarmac delays over three hours, most of which occurred at Chicago O'Hare Airport on December 8 due to a snowstorm.
Carriers mishandled more luggage with 4.55 reports per 1,000 passengers in December, up from 4.15 in December 2012. The BTS received 1,114 complaints about U.S. airlines, up 23.5 percent from the same month last year.
US Airways, which merged with American, posted an on-time rate of 78.3 percent for the fifth best rate in the industry. With only 1.27 complaints per 100,000 passengers, US Airways employees earned $50 bonuses and in 2013, the company paid out $16 million under its customer service incentive program which is based on the BTS statistics.
American's new management has implemented a similar program for employees that will start next month when the BTS reports its January 2014 on-time statistics.
Re-entering the U.S. is as simple as scanning your passport and answering four questions on a touch-screen kiosk.
On Monday, Dallas/Fort Worth Airport officially unveiled its new automated passport control system that allows U.S. and Canadian citizens a shortened customs process by having computer kiosks handle some of the work typically handled by customs agents. There are 30 kiosks that have been operational since late October and have been used by more than 320,000 passengers in the first three months, which is about 55 percent of the airport's arriving passengers.
"The system has drawn great reviews from our customers and made the customer experience better," said airport executive vice president of revenue management Ken Buchanan. "The APC system has allowed our custom partners to allocate more of their officers to the lines on the other side of the hall to handle foreign visitors, making those lines even shorter as well."
Last summer, travelers were waiting up to three hours in long lines in DFW Airport's customs hall. Passengers flooded social media with videos and photos of the lines that stretched down several hallways back towards the arrival gates. The airport has seen a 39 percent increase in international passengers since 2009 but the U.S. Customs and Border Protection Agency staffing has remained flat during that period.
DFW plans to add another 24 kiosks in the next few months. The airport developed the kiosk system in-house and plans to market and sell the system to other U.S. airports, Buchanan said. Vancouver, Chicago O'Hare and Miami airports also have automated passport control systems in operation but those were developed by a different vendor.
Arlington resident Julissa Arce-Rivera returned from London with her husband on Monday and used the automated kiosks for the first time. Arce-Rivera often travels internationally and said the longest she's waited in DFW's customs hall is about 30 minutes.
"I think it's cool," Arce-Rivera said. "I think it's going to help speed up the process."
Although the kiosks can only be used by American and Canadian citizens, the U.S. Customs and Border Protection Agency said it will eventually expand the program to allow citizens from countries that have visa waiver agreements with the U.S. such as the United Kingdom, Australia, the Netherlands, South Korea and Spain.
CBP Houston director of field operations, Judson Murdock, said wait times at DFW Airport declined 15 percent in December, even as the number of passengers grew 9 percent when compared to December 2012. The customs agency processed 3.2 million international travelers at DFW last year, he said.
"The simple steps reduce processing and wait times for travelers and at the same time support our security requirements, providing officers with the time to focus on the travelers," Murdock said.
-Spirit Airlines' CEO Ben Baldanza recently challenged the Associated Press' Scott Mayerowitz to a board game in this article. Baldanza's love of strategy and board games has helped him create the low-budget airline that has low fares but charges for pretty much everything else. "Baldanza's ultimate dream — if the government would let him — would be to create two components of a ticket: the price of fuel and everything else. Passengers would pay more or less, depending on the cost of fuel the day they fly," the article says.
-Buying airline tickets months in advance of a vacation often don't work out for consumers as airlines are constantly changing their flight schedules, says the Wall Street Journal's Scott McCartney. "Airlines sell tickets as much as 11 months in advance, but rarely end up flying the same schedules they sold," he writes, detailing how changes in flight schedules can cost consumers who then have to change hotel reservations and car rental bookings.
-The FAA has fined an Amazon.com subsidiary for mislabeling a hazardous materials shipment. On Friday, the agency proposed a $78,000 fine for shipping high-gloss enamel paint that leaked through the package, according to this story by McClatchy's Curtis Tate.
American Airlines said its passenger traffic rose 3.8 percent in January as the carrier added 2.3 percent more capacity to its network.
Its load factor also increased 1.2 percentage points to 80.3 percent when compared to January 2013.
American said it expects unit revenues to grow two to four percent in the first quarter.
As part of its reorganization plan in bankruptcy, American Airlines came up with a very complicated way to issue stock in its company to pay off creditors.
On Friday, 60 days after the carrier merged with US Airways in December, the company said it will convert 41.9637 million shares of convertible preferred stock into common stock shares.
The mandatory conversion is part of American's plan to pay all of its creditors with equity in the newly merged company. Holders of the preferred stock will receive 30.56 shares of common stock for every $1,000 in stated value of the convertible stock.
For former shareholders of American's common stock, AAMRQ, they will received another distribution of 0.1750 shares in AAL stock on Monday.
Convertible note holders and American's labor groups also received equity distributions on Friday.
Another 41.9637 million preferred shares will be converted on March 9, the 90th day after the merger was completed.
Keep reading for the full press release from American.
American Airlines Group Inc. (the "Company") today provided the following notice to holders of its Series A Convertible Preferred Stock (NASDAQ: AALCP) (the "Convertible Preferred Stock") pursuant to Section 5.1 of the Certificate of Designations governing the terms of the Convertible Preferred Stock. Capitalized terms not otherwise defined in this notice have the meaning set forth in the Certificate of Designations.
Additional Common Stock Distributions
Dallas/Fort Worth Airport showed off its new DART station, which is nearing completion. Airport CEO Sean Donohue said international passengers are used to having rail service connecting an airport to downtown.
While construction will be completed this month, DART President Gary Thomas said it will take several months for trains to start running to D/FW. Testing on the Orange Line will begin in a few weeks, and although DART is scheduled to begin service in December, it could start as early as this fall.
"When you look at airport connections around the United States, you get a lot of your [rail] customers [who] are actually employees, but when you go around the world, though, you see not only the employees but the travelers" using the rail system, Thomas said. "It is our opportunity to make sure everyone is aware of the new DART line."
Southwest Airlines said passenger traffic increased 2.2 percent in January even as the carrier cut capacity by 2.6 percent.
The Dallas-based carrier said its load factor rose 3.6 percent to 76.3 percent compared to January 2013.
Unit revenues are estimated to have increased five percent, Southwest said.
Snow and de-icing activity continues to slow down operations at Dallas/Fort Worth Airport on Thursday.
As of 1 p.m., there were 257 arrivals and departures cancelled at DFW, spokeswoman Cynthia Vega said. Aircraft continue to be de-iced on the south end of the airport and the runways remain open.
But the delays are piling up. According to Flightstats.com, over 300 departing flights have been delayed at DFW and another 252 arrival flights are delayed.
American Airlines spokesman Matt Miller said the airline has had deicing delays throughout much of the day at DFW. About 250 flights were cancelled with a majority of those flights operated by American Eagle.
Much of the precipitation has come to an end over North Texas, but with temperatures expected to remain below freezing through Friday afternoon, flight delays could increase throughout the day.
At a somber meeting Thursday morning, the Dallas/Fort Worth Airport board elected Fort Worth resident Lillie Biggins as board chair, replacing Robert Hsueh who died on Sunday.
Biggins, who is president of Harris Methodist Hospital Fort Worth, has previously served as airport board chair from 2008 to 2009. Board members Sam Coats and Francisco Hernandez were elected vice chair and secretary respectively.
The airport placed white flowers at Hsueh's chair and had a wreath at its parking space outside of the headquarters building.
"I found that I kept drifting to that empty seat over there because Robert was so glad to be on this board and be able to import all of his great ideas into how we operate here to make it the best airport," Biggins said.
As board chair, Biggins said she will continue to focus on improving the customer experience for international passengers. In June, American Airlines will launch nonstop service to Shanghai and Hong Kong, marking the first direct flights to China from DFW.
"Airlines are deicing but there is not a significant impact to our flights," said airport spokesman David Magana.
Only about a dozen flights were cancelled this morning mainly due to weather at other airports. However, several flights were delayed because of deicing operations.
As part of its integration, American Airlines and US Airways announced it had expanded its codeshare agreement to cover 6,500 daily flights in the airlines' networks.
The company had initially added some codesharing between the two carriers on January 13 but this latest expansion covers almost all of the flights at American and US Airways.
American said there are still a few international flights that will not have a codeshare agreement because of regulatory requirements.
"Bringing the networks together is what this merger is truly about and is a prime example of how we intend to deliver exceptional customer service at the new American," American president Scott Kirby said in a statement.
Code sharing enables customers to buy a ticket for an American flight using the US Airways website and vice versa.
An American Airlines retiree has sued his union for not giving him shares in the new airline.
Thomas Powell, a member of the Transport Workers Union who worked at American's Tulsa operations, alleges the union wrongly excluded American workers who took an early-retirement buyout in 2013 from receiving their portion of equity in American after it merged with US Airways.
"It was not until August 2013 that the Defendants informed the persons who took Early Separation that Defendants had decided to deny Plaintiff and the proposed class their previously-vested rights to the TWU Equity," claims the lawsuit, which was filed last week in federal court in North Texas.
Powell is seeking class action status for the lawsuit, saying that about 2,000 TWU members applied for the early retirement program, and has asked for a jury trial. He also included several of the TWU local chapters as defendants in the lawsuit.
As part of American's reorganization in bankruptcy, the TWU and its members negotiated a new concessionary contract that included an early retirement program in lieu of layoffs and guaranteed members an equity stake in American after it emerged from American.
"When TWU members asked about whether Early Separation might adversely affect receipt of their vested share of the TWU Equity, the Defendants refused to provide any information or guidance at all, even though the plan for TWU Equity distribution had to have been already considered," the lawsuit says.
The TWU could not be reached for comment on the lawsuit.
Dallas Fort Worth Airport will raise some of its parking rates on March 1, after fixing issues with its automated parking system.
The airport had originally planned to implement the rate increases on October 1 but the staff chose to delay the increases as its new parking system was not correctly reading toll tags at the entry and exit plazas last fall.
"We are fully operational and functional and the experience that our customers are experiencing are extremely positive going in and out of the plazas," airport executive vice president of revenue management Ken Buchanan told the board on Tuesday at a committee meeting. "Now is the perfect time to move forward with our rate increase."
The airport has eliminated the zero to 8 minute terminal parking price and now will charge $2 for parking up to 30 minutes. It will cost $1 if the driver uses a toll tag. Parking rates will also increase one dollar to $3 for parking between 30 minutes and 2 hours. Toll tag users will be charged $2.
Valet parking rates will also increase by $2 to $27 per day. Parking rates for its remote and express parking lots as well as terminal parking over two hours will remain the same.
The airport expects the rate increases will generate an additional $1.86 million in parking revenues. Buchanan said it plans to reassess all of its parking products in May.
The parking rate changes were approved by the airport board last summer as part of its annual budget.
Dallas/Fort Worth Airport board chairman Robert Hsueh, who pushed airport executives to attract more Asian carriers and to get nonstop flights to China, died on Sunday after a long illness.
Hsueh, 63, had served as the airport's chairman for the past two years and has been a Dallas appointee on the board since 2005, holding positions on several committees at the airport.
"Robert Hsueh has been our pioneer and our navigator as we seek to connect this community to cities across the globe," said airport chief executive Sean Donohue in a statement.
While chairman, DFW has added international service to Dubai, Lima and new cities in Mexico. The airport has also added more cargo carriers to Asia and in June, American Airlines will launch nonstop service to Shanghai and Hong Kong, the first flights from DFW to China.
Often during board meetings, Hsueh would tell airport executives about his customer service experiences at other airports, particularly those in Asia, and make suggestions on how DFW could improve its own customer service. Last August, Hsueh told the board that he had the chance to use the renovated terminal at Dallas Love Field and he noticed their restrooms were more convenient than those at DFW.
"I was the unpaid mystery shopper," Hsueh joked as other board members teased him about visiting a rival airport. "I'm just doing my job."
Hsueh arrived in North Texas in the mid-1970s after receiving a bachelor of law from Soochow University School of Law in Taipei, Taiwan. He received his doctor of jurisprudence from Southern Methodist University and has practiced international and immigration law in the Dallas area since 1979. He was also the co-founder of the Greater Dallas Asian American Chamber of Commerce.
"Like many Texans, he was not born here, but since his arrival, he contributed immeasurably to the economic vitality of the North Texas community, most particularly in strengthening the relationship between Texas and Asia," said Fort Worth Mayor Betsy Price who served on the airport board with Hsueh.
The airport said it will fly the DFW Airport flag at its headquarters at half-staff this week to honor Hsueh. A memorial service will be announced at a later date.
Hsueh is survived by his wife, Claire.
-United Airlines announced Friday that it is de-hubbing its operations in Cleveland. According to the Cleveland Plain Dealer, the airline will cut 60 percent of its departures from the city beginning in April. "Our hub in Cleveland hasn't been profitable for over a decade, and has generated tens of millions of dollars of annual losses in recent years," said CEO Jeff Smisek in a letter to employees. "We simply cannot continue to bear these losses."
-U.S. airlines are facing a pilot shortage as new government pilot work rules go into effect. "Although job prospects for commercial pilots are bright, and regional airlines are scooping up newly minted aviators with signing bonuses, fewer young people are choosing aviation careers," says this article in the Philadelphia Inquirer.
-Yes, the TSA agents really are making fun of you when you walk through a body scanner, former TSA agent Jason Harrington wrote in this lengthy piece for Politico that appeared last week. "Many of the images we gawked at were of overweight people, their every fold and dimple on full awful display," wrote Harrington is currently working on a book about his former job.
Southwest Airlines announced it will fly to 15 new non-stop destinations from Dallas Love Field once Wright Amendment restrictions are lifted in October. The amendment, which has restricted flights to Texas and nearby states since 1979, has kept the carrier from flying to most U.S. cities with its Boeing 737s from the airport closest to downtown Dallas.
The new cities will be Baltimore/Washington, Denver, Las Vegas, Orlando, Chicago-Midway, Atlanta, Nashville, Washington, D.C. Reagan, Ft,. Lauderdale, Los Angeles, New York LaGuardia, Phoenix, San Diego, Orange County/Santa Ana and Tampa.
Southwest chief executive Gary Kelly said five of the flights would begin on Oct. 13, and 10 on Nov. 2. Kelly called it Southwest's birthday present to the city of Dallas which celebrated its 158th birthday as an incorporated city on Sunday.
"We are very, very excited," Kelly said at a press conference in the ticketing lobby of Love Field. "We'll be free to serve all of the continental United States and all right here in the heart of Dallas. These new nonstops are going to bring very real competition to North Texas."
The Wright Amendment, which has been in place since 1979, has kept the carrier from flying to most U.S. cities with its Boeing 737 airplanes from the airport closest to downtown Dallas.
Dallas mayor Mike Rawlings and former U.S. senator Kay Bailey Hutchison, who helped pass the Wright Amendment compromise agreement through Congress in 2006, were on hand to celebrate Southwest's announcement. Cupcakes with the new destinations on top of the frosting were passed out to passengers and employees at Love Field on Monday morning.
With the new flights, Kelly said the airline will have about 140 daily flights out of Love Field later this year. The number of daily frequencies to the new destinations will be revealed in May when the flights go on sale to the public.
The new flights at Love Field will use about 14 to 15 additional aircraft. However, Kelly said it was not planning on adding planes to its fleet for the expansion in 2014, instead it will utilize aircraft already in its network and will shift the planes from other less-profitable routes.
Kelly said the carrier will continue to fly to all of its current destinations out of Love Field. Southwest flies about 120 to 130 daily flights out of Love Field to destinations like Houston, New Orleans, Albuquerque and San Antonio. Some current cities may see a reduction in the number of daily flights when the new destinations are added later this year, he said.
With the restrictions ending in October, analysts expect Southwest to add flights to some of its busier airports, such as Las Vegas, Chicago Midway and Baltimore.
"Southwest will start flying nonstop to Chicago and Baltimore, but I don't think there is going to be any dramatic expansion," Southern Methodist University economist Bud Weinstein said during an interview in January. He pointed to the limit on gates at Love Field, capped at 20, and the continued ban on international flights.
In its earnings call, Southwest told investors that Wright Amendment revenue — derived from passengers buying "through tickets" to distant cities from Love by stopping in other cities — contributed $75 million in the fourth quarter and about $300 million for the full year.
Delta Air Lines announced last year that it plans to add 18 daily nonstop flights from Love Field to New York LaGuardia, Los Angeles, Detroit and Minneapolis-St. Paul in October.
Delta uses gates leased from American Airlines. However, American must give up those gates as part of its antitrust settlement with the Justice Department, and it's unclear which airline will buy them.
Southwest has also expressed interest in the American gates at Love Field. On Monday, Kelly said the process to auction off those gates has not yet begun.
Will New York make the cut? Or maybe Las Vegas?
On Monday, Southwest Airlines will announce where it will fly to out of Dallas Love Field once the Wright Amendment restrictions are lifted in October. The amendment, which has been in place since 1979, has kept the carrier from flying to most U.S. cities with its Boeing 737 airplanes from the airport closest to downtown Dallas.
"We are very excited about it...I think it is a huge opportunity," Southwest chief executive Gary Kelly told investors on its fourth quarter earnings call last week. "I can guarantee we are going to add new itineraries and new flights once the repeal is in effect on October 13."
An event has been scheduled for Monday morning at Love Field with Southwest chief executive Gary Kelly, Dallas mayor Mike Rawlings and former U.S. senator Kay Bailey Hutchison.
Currently, Southwest flies about 120 to 130 daily flights out of Love Field to destinations like Houston, New Orleans, Albuquerque and San Antonio. With the geographic restrictions lifting in October, industry analysts expect Southwest will add flights to some of its busier airports like Las Vegas, Chicago Midway and Baltimore.
"Southwest will start flying nonstop to Chicago and Baltimore but I don't think there is going to be any dramatic expansion," said Southern Methodist University economist Bud Weinstein in an interview in January. He pointed to the limited number of gates at Love Field which is capped at 20 and the fact that international flights are still prohibited out of the airport.
On its fourth quarter earnings conference call last week, Southwest told investors that Wright Amendment revenues - which refers to passengers buying through tickets to distant cities from Love - contributed $75 million to its revenues in the fourth quarter and about $300 million for the full year.
Delta Air Lines announced last year that it plans to add 18 daily nonstop flights from Love Field to New York LaGuardia, Los Angeles, Detroit and Minneapolis-St. Paul this coming October. Delta currently uses gates that it leases from American Airlines. However, American is required to give up those gates as part of its antitrust settlement with the U.S. Department of Justice and it is unclear which airline will be able to buy the gates.
The gold pins glisten as if they had never been in the fiery explosion of American Airlines Flight 77, which crashed into the Pentagon on 9-11.
The two pins — AA wings and an Association of Professional Flight Attendants logo — worn by a flight attendant on that flight, were returned to American Airlines on Thursday after sitting unclaimed for over a decade in a government agency box.
"It just helps you to know they will never be forgotten, even 13 years later," said Cathie Ong, who received the pins on behalf of American and the families of crew members who died in the terrorist attacks during a ceremony at the C.R. Smith Museum. Ong's sister, Betty, was a flight attendant on American Flight 11, which crashed into the World Trade Center.
The pins sit in a shadow box on top of an American flag and will be permanently displayed for the public at the flight museum, which is part of American's flight academy, where thousands of pilots and flight attendants go for training every year.
Though it is not known who the pins belonged to, the flights attendants on Flight 77 were: Michele Heidenberger, 57; Renee Ann May, 39; and Jennifer Lewis, 38, and her husband, Kenneth Lewis, 49.
The flight attendant wings pin and the Association of Professional Flight Attendants union pin might never have made it back to Fort Worth if it hadn't been for the keen eye of Joan Cote, director of USO Delaware.
Cote often gives tours of Dover Air Force Base that include the offices of the Joint Personal Effects Depot, a military organization that collects personal effects of fallen military personnel. Items retrieved at the Pentagon are kept at the depot.
"Every time I go in there, I look at the things in the boxes," Cote said, describing the Flight 77 items that are on display in glass cases in the depot offices. "I think about who that belonged to."
When she saw the two American pins in 2012, she took a picture of them and emailed them to some of her friends who worked at the airline. Cote said she figured American didn't even know the pins existed — and she was right.
John Hale, American's vice president of flight, heard about the pins and contacted Cote to find out how the company might obtain them. The two started the paperwork process with the government agency, finally receiving approval a year later.
The pins have been cleaned and are in good condition. They were not melted by the jet fuel fire that burned for hours after Flight 77 hit the Pentagon.
APFA president Laura Glading said she wept the first time she saw the pins.
"Our uniform would be nothing but a polyester-blend suit but when we put on those pins and those wings, we are transformed into a professional," Glading said. "These [pins] are very important to us."
Cote was tasked with transporting the pins from Delaware to Fort Worth. She flew to Fort Worth in October with the pins, which were placed in the cockpit for the ride back to Texas.
"I felt the crew members in my heart," said Cote, remembering she thought to herself, "I'm taking you home."
With its new coat of paint, the first US Airways aircraft to get the American Airlines livery debuted on Thursday.
The plane, tail number N700UW, spent 13 days getting its new look. The Airbus 319 was sanded, washed and had 80 gallons of paint applied to the exterior.
"Today marks an important next step in our airlines' integration and is a tangible way for customers and employees to see the result of our progress first hand," said American president Scott Kirby. "The integration of our airlines, including painting the rest of the US Airways fleet, will take many months as we work to deliver value through this merger for our employees, our customers and our investors."
About 640 aircraft will be repainted with the new livery which includes the flag tail that employees voted to keep in January.
By the middle of the year, American expects to have more than 275 mainline and regional aircraft painted with the new design.
American Airlines said its new service to China from Dallas/Fort Worth Airport will begin on June 11.
The carrier said it will operate its DFW-Shanghai service with a Boeing 777-200 aircraft that will depart at 10:55 a.m. and arrive in Shanghai at 2:55 p.m. the next day. The return flight will leave Shanghai at 4:50 p.m. and arrive in DFW at 6:10 p.m. the same day.
American has not yet announced the times for its DFW-Hong Kong service that will also start on June 11.
Southwest Airlines and JetBlue Airways said they have both won take-off and landing slots at Washington D.C.'s Reagan airport that American Airlines was forced to give up as part of its merger with US Airways.
The Dallas-based carrier said the slots will allow Southwest to fly 27 additional flights out of the airport that is closest to the White House and Congress.
"Reagan has long been a convenient but high-fare airport," said Southwest chief executive Gary Kelly. "Southwest plans to change that by bringing much needed competition to the nation's Capitol."
To gain U.S. Justice Department approval for their merger, American and US Airways agreed to give up 52 takeoff and landing slots at Reagan and 17 at New York's LaGuardia Airport. It also gave up rights and interests to two gates each at Boston Logan, Chicago O'Hare, Dallas Love Field, Los Angeles and Miami.
JetBlue said it plans to add 12 new roundtrip flights to Reagan and has reached a deal with American to permanently transfer the other eight Reagan slots that it had been leasing from American. With the new slots, JetBlue said it will have 30 daily roundtrip flights out of Reagan.
"JetBlue has already had a major impact at Reagan National in just a few short years with its everyday low fares, such as in the key business market to Boston, where since our entry in 2010, average fares have been reduced 31% and traffic has nearly doubled, soaring 93%," said JetBlue senior vice president of government affairs Rob Land.
It is unclear how much the two airlines paid for the slots. In 2011, JetBlue paid $5 million per slot pair at Reagan when it was awarded slots as part of a slot swap deal between Delta Air Lines and US Airways.
American declined to comment on the auction process. A winner has not been announced for five other slots at Reagan that American had to give up.
Last month, the Federal Aviation Administration approved the divestiture of American's LaGuardia slots to Southwest and Virgin America. Southwest received 11 slots, and Virgin America six.
I don't get over to Dallas Love Field that often since I'm a Fort Worth resident, but on Monday, after I attended Southwest Airlines's press conference to announce new international service, I decided to take a drive by the other airport in the Metroplex.
But in case you didn't know the Wright Amendment restrictions were expiring in October, Southwest has put up plenty reminders as you enter Dallas Love Field.
Three billboards sit at the intersection of Mockingbird Lane and Cedar Springs Lane, proclaiming the end of Wright is near - 37 weeks to be exact, according to one of the signs.
There are over a dozen billboards along Mockingbird Lane from Southwest with sayings like "Let's Re-Wright the Rules on Love" and "Nonstop Love. All Flight Long."
The Wright Amendment restrictions are scheduled to expire in October and when lifted, will allow airlines to fly to any destination in the U.S.
Southwest hasn't announced what its plans are for the nonstop routes out of Love Field although it is expected the airline will reveal the flights when it updates its schedule this spring.
Here are some of the signs that Southwest put together for their ad campaign that bombards Dallas drivers as they enter the airport.
A lot of little tidbits came out of the American Airlines fourth quarter earnings call as chief executive Doug Parker and president Scott Kirby took questions from Wall Street analysts.
Here's what we learned
-American expects capacity to be up 3.5 percent for the year as it replaces older aircraft with newer planes and by reallocating planes on longer routes. The company will be rebanking its hub airports, starting with Miami this year while its main hub at Dallas/Fort Worth airport will be rebanked in the spring of 2015. The concept of a banked hub means an airline has all of its flights arrive at a hub like DFW in a narrow time frame and then have passengers connect on to their flights which depart in another narrow time frame.
-International capacity will be up 9 percent, partly due to American's new DFW flights to Shanghai and Hong Kong which are scheduled to begin in June. Kirby said the company has received all of the necessary government approvals for the Chinese flights and is pleased with the slot times they were given.
-American also plans to add more seats to its aircraft. Kirby said the airline will be increasing its MD-80s to 140 seats, up from 135. Its Boeing 737-800s will increase to 160 or 164 seats, up from 150 while the Boeing 777-200 will jump to 260 or 289 seats, up from 247 it currently has today. Kirby said some of the new seats installed will be "slim-line seats" which feature a thinner seat design so airlines can fit more rows into an aircraft and maintaining the same amount of legroom between rows.
-The company continues to integrate the two airlines and hopes to add codesharing to all of the flights in each network by the end of February. In the first two weeks of codesharing on some hub flights which began on January 7, American booked 70,000 codeshare tickets, Kirby said.
-The airlines' unions continue to make progress on deciding how to merge workgroups, Kirby said. However, the company expects single seniority lists for pilots and flight attendants to not be ready until early 2015.
-American expects to pay an average of $3.07 and $3.12 per gallon of jet fuel in the first quarter. While the carrier has fuel hedging contracts in place through 2015, American will no longer hedge fuel prices, continuing US Airway's policy of not placing hedges on jet fuel.
-The carrier continues to work with the government to divest slots and gates as part of its settlement of the antitrust suit filed by the U.S. Department of Justice. The auction process is proceeding on the slots at Washington Reagan airport but has not begun for its two gates at Dallas Love Field. "If we had a choice we'd get to keep them and we'd fly out of Love Field," Kirby said.
-Investors really liked American's earnings report on Tuesday as shares of American [ticker: AAL] were up 4.5 percent, trading around $31.50 a share at 12:30 p.m. CDT. Since the beginning of the year, American's stock price is up almost 25 percent.