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Old January 26th, 2010, 05:01 PM   #521
hkskyline
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Delta Air Lines posts $25M loss for fourth quarter, see signs of business travel pickup
26 January 2010

ATLANTA (AP) - Delta Air Lines Inc. sees signs that corporate travel demand is picking up as it closed the books on a turbulent 2009 by posting a $25 million loss for the final three months of the year.

The fourth-quarter loss reported Tuesday by the world's biggest airline was equivalent to 3 cents a share. In the year-ago quarter, Delta lost $1.4 billion, or $2.11 a share. Revenue rose 1 percent to $6.8 billion from $6.7 billion.

Excluding special items, Delta lost 27 cents per share. Analysts surveyed by Thomson Reuters were expecting a loss of 24 cents a share on revenue of $6.86 billion.

Delta, based in Atlanta, said system capacity will be down 3 percent to 5 percent in the first quarter of this year. A spokeswoman said that prediction is based on reductions already made. Delta previously said that capacity, as measured by available seats times miles flown, is expected to be flat for the full year, compared to 2009.

Weak demand for air travel made for a challenging 2009 for the airline industry. Delta and others cut capacity in response, but profits were hard to come by as fewer business travelers took to the skies.

Airlines have lately seen signs of a recovery in traffic and improving trends in business travel but they're still faced with higher fuel costs and a tepid economic rebound in most parts of the world.

Still, CEO Richard Anderson said Tuesday that Delta expects revenue per available seat mile -- a key airline performance measure -- to improve each month of this year.

For all of 2009, Delta lost $1.2 billion, or $1.50 a share, compared to a loss of $8.9 billion, or $19.08 a share, for all of 2008. Twelve-month revenue totaled $28.1 billion, compared to $22.7 billion for 2008.

The major airlines have added special charges to make up for some revenue lost to weak demand. Delta recently raised its fees to check a first bag on a domestic flight by $8 and by $7 for a second bag. That first bag now costs a passenger $23 and the second one $32. There is an additional charge for not checking the bags online in advance of reaching the airport.

Elite frequent fliers, first class fliers and certain other customers, including active military personnel on deployment, are exempt from the fees.

Delta, meanwhile, will invest $1 billion over the next three-and-a-half years to improve customer service, remodel existing aircraft and improve fuel efficiency instead of buying new planes like some of its competitors.

Delta is waiting to hear whether Japan Airlines will dump its alliance with American Airlines and join Delta's SkyTeam alliance. Delta and its SkyTeam partners would give JAL $1 billion to leave oneworld for SkyTeam. American and its partners have offered $1.4 billion for Japan Airlines to stay. Delta is banking on its global network as a greater lure than the money. There's been no recent word from Japan about when a decision will be made. Japan Airlines recently filed for bankruptcy protection and is planning a major restructuring.

Delta ended 2009 with $5.4 billion in unrestricted liquidity, a $400 million increase year-over-year. Delta expects the total to increase to $5.6 billion by the end of the first quarter of this year.
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Old February 4th, 2010, 11:13 AM   #522
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Northwest code officially retired
2 February 2010

ATLANTA (AP) - Northwest Airlines' code has been retired.

Delta Air Lines combined the Northwest reservation system into its own over the weekend, changed the code on Northwest flights to Delta's code and took down the Northwest Web site.

It was one of the final steps in the integration following Delta's acquisition of Northwest in 2008 to become the world's biggest airline.

Delta, based in Atlanta, was green-lighted to retire the Northwest code after it obtained a single operating certificate from the FAA on Dec. 31.

Employees wear the Delta uniform and airport signs have been rebranded as Delta, but some pre-merger Northwest aircraft have yet to be repainted with the Delta livery.

Northwest got its start in 1926 hauling air mail in two rented biplanes.
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Old March 17th, 2010, 05:29 AM   #523
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Delta to Cut 840 Regional Jobs at Cincinnati Airport

Delta Air Lines Inc.’s regional unit will eliminate 840 jobs in Cincinnati as it consolidates ground operations into a single airport concourse to reduce costs.

Delta will move all regional activities from concourse A into concourse B, where ground operations will be handled by Delta’s own mainline employees, Gil West, senior vice president of airport customer service, wrote in a memo to workers.

The move is an effort to “optimize the network and work to return the Cincinnati hub to profitability,” West wrote. The jobs include ramp workers and baggage handlers and represent about 18 percent of the company’s Cincinnati workforce, spokeswoman Kristin Baur said today in a telephone interview.

Delta will make the changes in May in conjunction with a new summer schedule with eight daily groupings of flights at Cincinnati instead of four, allowing the Atlanta-based carrier to move some earlier to a 7 a.m. time frame that business travelers requested, she said.

The carrier will occupy 28 gates at the airport, down from 50, Baur said. The airline plans to rehire as many as 100 workers at its mainline unit or call center in Cincinnati, and laid-off employees will get priority consideration for those positions, she said. Cincinnati is Delta’s smallest hub, Baur said.

The Cincinnati Enquirer reported the job cuts earlier today.

Delta rose 32 cents, or 2.5 percent, to $12.98 at 4 p.m. in New York Stock Exchange composite trading. The shares have climbed 14 percent this year.


http://www.businessweek.com/news/201...-update1-.html
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Old March 18th, 2010, 04:33 AM   #524
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DL was going to launch once the service JFK-EZE. What happened with that?
Only AA is flying that route and soon AR...
At the moment there's only an ATL-EZE
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Old March 18th, 2010, 05:46 AM   #525
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Check out my article/blog about Delta's new terminal at JFK

here: http://aviationlover-vin2.blogspot.c...bsolutely.html
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Old April 7th, 2010, 01:31 PM   #526
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#NK | Spirit Airlines

Couldnt find a thread on this airline, so thought i'd start one with this important topic, a new low for a 'budget' airline, which could upset its passengers. I hope it doesnt work so other airlines dont follow.

Carry-Ons to Cost $45 at Spirit Airlines
CBS News Business, MINNEAPOLIS, April 6, 2010

http://www.cbsnews.com/stories/2010/...n6368434.shtml

New Fee for Using Overhead Bin Aims to Move Passengers Off Planes Faster, CEO Says; Customers Can Pay $30 in Advance


Spirit Airlines will charge as much as $45 each way for a carry-on bag, adding a fee that bigger airlines have yet to try.

The charge will apply to bags in the overhead bin. Personal items that fit under the seat will still be free. Spirit said it will add measuring devices at the gates to determine which carry-ons are free and which ones will incur the charge.

The new charge is $45 if paid at the gate, and $30 if paid in advance, and begins Aug. 1. Spirit said on Tuesday that it reduced its lowest fares by $40 on average, so most customers won't really pay more to fly.

Spirit also charges to check luggage.

Spirit CEO Ben Baldanza said having fewer carry-on bags will help empty the plane faster. He said the idea is to get customers to pay for individual things they want, while keeping the base fare low.

"The beauty of it is they will do what they think is best for them and will now have the choice," he said.

Spirit is based in Miramar, Fla., and most of its routes run through Fort Lauderdale to Latin America.

Even though it's a minor player, bigger airlines are likely to watch to see whether customers are willing to pay for carry-ons. None of the major carriers made any immediate changes to their fees on Tuesday morning.

Fees for checking bags on the big U.S. carriers got started in 2008. At first, many travelers thought they wouldn't last. But now all the big airlines except Southwest and JetBlue charge to check a bag on domestic flights.


Spirit Airlines will charge as much as $45 each way for a carry-on bag, adding a fee that bigger airlines have yet to try. (AP)
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Old April 7th, 2010, 02:49 PM   #527
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I read this on Perez Hilton, lolol. How embarrassing of me.

Though I think it's ludicrous.
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Old April 7th, 2010, 05:14 PM   #528
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Quote:
Originally Posted by Dimethyltryptamine View Post
I read this on Perez Hilton, lolol. How embarrassing of me.

Though I think it's ludicrous.
There are something's you should NEVER admit to. That is one of them! haha
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Old April 8th, 2010, 01:41 AM   #529
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United and US Airways merger

United and US Airways Said to Be in Merger Talks
7 April 2010

The UAL Corporation, the parent of United Airlines, and US Airways are in talks to merge, in a potential deal that would create one of the world’s largest airlines, people briefed on the matter told DealBook on Wednesday.

The negotiations mark the latest efforts to consolidate the struggling airline industry. Both companies have been vocal in calling for greater consolidation within the industry to help prop up falling revenues, with United’s chief executive, Glenn F. Tilton, among the leading proponents for more mergers.

“The investor seems to have spoken,” Mr. Tilton told The Financial Times in February. “The market seems to have suggested that scope and scale in a global business are important.”

United and US Airways are deep in their merger discussions, though a transaction is not expected to be announced for at least several weeks, these people said, cautioning that talks may still collapse. One potential hurdle could be union opposition.

Terms of the deal could not be learned. One issue being worked on is the management structure of the combined company, these people said.

The two airlines have come close to merging several times over the past decade. In 2000, they announced a $4.3 billion deal, only to withdraw after fierce opposition from the Justice Department and unions. They tried again in 2008, but ended talks after several months of negotiations.

Jean Medina, a United spokeswoman, and Andrew Christie, a US Airways spokesman, declined to comment.

The talks are being driven in large part by cost savings. Both sides have sought to lower costs, but believe they can achieve greater efficiencies together, these people said.

Previous talks were held up because of the complexity of putting together the various union contracts covering each airlines’ employees, as well as sorting out which union would represent workers and how to account for their seniority.

There have also been recurring strategic doubts about how well the two airlines fit together. A combination of the two carriers would end up with a large number of a multitude of hubs, including United’s operations in Chicago, Denver and at Washington Dulles International Airport. For its part, US Airways has hubs in Las Vegas, Phoenix and extensive operations in the Washington area.

Executives and analysts have long predicted more consolidation in the ailing airline industry since the merger between Delta Air Lines and Northwest Airlines. Airlines have lost money for much of the past decade, battered by high fuel costs and more recently by the recession. They have scrambled to cut capacity, lower their costs, and have been looking for inventive new ways to raise revenues, such as bag fees or charging for meals.

But with both leisure and business travel down steeply, many analysts have argued that the United States still has too many airlines chasing too few passengers.

United had also held merger talks with Continental Airlines in 2008. And US Airways pursued an unsolicited bid for Delta in late 2006, but withdrew after several months amid fierce opposition from Delta’s unions.


http://dealbook.blogs.nytimes.com/20.../?ref=business
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Old April 8th, 2010, 01:59 AM   #530
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That would make sense. Last time I flew U.S. Airways 3 out of my 6 flights were on United.

I don't like mergers since it's sad to see airlines go but I guess that's life.
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Old April 8th, 2010, 02:06 AM   #531
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I only ask a flight from Charlotte to Buenos Aires. Cuz every time I have to fly to Washington with UA and then US Airlines ¬¬
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Old April 8th, 2010, 02:10 AM   #532
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Quote:
Originally Posted by FM 2258 View Post
That would make sense. Last time I flew U.S. Airways 3 out of my 6 flights were on United.

I don't like mergers since it's sad to see airlines go but I guess that's life.
I had four flights last year with US Airways, two were operated by United. So yes, it makes perfect sense.
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Old April 8th, 2010, 02:23 AM   #533
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If/when they two do merge; I wonder what hubs will be kept and what hubs will be closed?
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Old April 8th, 2010, 02:25 AM   #534
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I totally see this being a complete disaster. US airways is a mess to begin with and adding United to the mix, oh god, I can't even image all the shit they are going to have to sort through.
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Old April 8th, 2010, 05:38 AM   #535
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Quote:
Originally Posted by GlasgowMan View Post
If/when they two do merge; I wonder what hubs will be kept and what hubs will be closed?
Here are my thoughts on that: http://www.aviation-weblog.com/50226..._look_like.php
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Old April 8th, 2010, 09:42 AM   #536
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When do those mergers end? When there is only one airline called Continitedeltamerican US Airways, which is renamed Ameriflot (TM)?

Last edited by urbanfan89; April 8th, 2010 at 09:49 AM.
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Old April 8th, 2010, 10:21 AM   #537
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Quote:
Originally Posted by GlasgowMan View Post
I had four flights last year with US Airways, two were operated by United. So yes, it makes perfect sense.
Yeah, it's like they're already merged.
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Old April 8th, 2010, 04:17 PM   #538
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Quote:
Originally Posted by GlasgowMan View Post
If/when they two do merge; I wonder what hubs will be kept and what hubs will be closed?
From United's perspective I'm not really getting where this helps. What they do need to do is really convince Continental to a merger with perhaps Continental getting most if not all the carrots.

A merger with USAirways does little to really help boost United NYC's, U.S. Texas/south, European, and Latin American presence. All four of which happen to be a Continentals strength.

Adding hubs like Philly, Phoenix, or Charlotte to hubs that are already arguably more important and close to the new hubs makes those potential new hubs less attractive I would think.
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Old April 8th, 2010, 04:40 PM   #539
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Quote:
http://www.chicagotribune.com/busine...,2645594.story

United, US Airways renew merger talks
But intended prize may be Continental, experts say
By Hugo Martin and Julie Johnsson, Tribune Newspapers

9:39 p.m. CDT, April 7, 2010


Chicago-based United Airlines is pondering a merger with US Airways, the third time the companies have attempted to combine their businesses in the past decade and the kickoff to what could be a frenzied round of deal-making among U.S. carriers.

Negotiations between the two carriers are progressing but there is no assurance a deal will be completed, said a person with direct knowledge of the discussions. The merger talks were first reported by The New York Times.

But analysts and airline industry observers believe that United's intent may be to draw Continental Airlines to the bargaining table. The two carriers, already joint venture partners, would form the world's largest carrier with a global network reaching from South America to Asia and Europe, making it a potent competitor to current No. 1 Delta Air Lines.

"This looks like an attempt to get something going," said former Continental CEO Gordon Bethune, who has no direct knowledge of United's plans. Representatives of Continental, United and US Airways declined to comment.

A Continental and United merger would create about $5.8 billion in market value and would generate cost-savings and new revenues of about $2 billion, estimated Vaughn Cordle, a retired United pilot who is managing director of AirlineForecasts LLC, a Virginia-based market research firm.

Combining United and the smaller US Airways would generate about 65 percent of that increased market value: about $2.5 billion to $3 billion, AirlineForecasts estimated.

"If Continental doesn't want to do a full merger with United, US Airways makes for the next-best alternative," Cordle said via e-mail. "A 65 percent return is better than no incremental increase in value."

Mergers are increasingly attractive for major U.S. airlines, which have limited options for gaining long-term financial health in an industry that has been rocked by crises over the past decade. During that time, virtually every airline combination imaginable has been vetted, industry insiders said.

Carriers like United struggle to maintain profitability despite heavy cost cuts in recent years that grounded hundreds of aircraft and left tens of thousands of workers without jobs. They have limited means to expand as the market for air travel returns, and little left to cut — aside from operations and overhead that would overlap with a merger partner.

The prospect of more deal-making is unnerving to many consumers, especially because it is unclear what combinations will materialize. Mergers inevitably mean the loss off a corporate headquarters and a long-familiar brand as well as fewer flights if airport hubs are combined.

United CEO Glenn Tilton has been an outspoken advocate of industry consolidation, but he has had difficulty consummating a deal of his own. Jeff Smisek, his counterpart at Continental, had been intent on remaining independent unless it appeared that recently merged Delta was pulling ahead of the rest of the industry.

Tilton came closest to merging in 2008, when United held talks with Delta, which opted to combine with Northwest Airlines. United tried to join forces with Continental, which concluded that it would fare better alone.

United finally negotiated that year with US Airways but decided it would rather not risk inflaming labor tensions at both carriers. Instead, Tilton formed a virtual merger with Continental, which joined the Star Alliance.

United and Continental have been the topic of constant merger speculation over the past 18 months as they combined information platforms, shared airport operations, marketed seats on each others' flights and formed ambitious partnerships to coordinate flying across the Atlantic and Pacific oceans.

Delta's merger with Northwest is the model United would want to follow, said Roger King, aviation analyst with CreditSights LLC. It has lowered costs and stands to reap far more revenue from its new global network.

"Delta has shown you that those kinds of mergers can work," King said.

Delta was also able to smoothly absorb Northwest because it gained the cooperation of its pilots union. That will be tougher for others to emulate, especially given the poisonous labor relations at United and US Airways, said Bill Swelbar, an MIT airline researcher.

Five years after US Airways and America West merged, its pilots remain deeply divided and governed by separate contracts and unions. The legacy US Airways pilots are entitled to a hefty payout if the airline merges, one that management has signaled it can't afford, Swelbar said.

"I still don't see Glenn (Tilton) wanting this deal," Swelbar said. But US Airways, which has been excluded from United and Continental's global Star Alliance partnerships, can't afford to be left out of the deal-making, he added.

"I have to believe that they too need to be part of the conversation in some way, shape or form," Swelbar said. "Otherwise, I think they risk irrelevance in the marketplace tomorrow. I have to believe they're the catalyst here for that reason."
...
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Old April 8th, 2010, 05:39 PM   #540
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Guys I wonder something... If United and US Airways do merge, Continental and American are going to be the only two major airlines standing alone.

It will become more difficult for them to compete against two much bigger rivals.

If that merger happens, what do you think is going to happen with american and Continental?
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