US Airways promotes merger proposal to its workforce | Southwest executive calls the shots on fuel hedging | Delta Air Lines traffic rose 1.1% in April
May 3, 2012
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US Airways promotes merger proposal to its workforce
US Airways Group sought support from unions representing its pilots and flight attendants in a bid to merge with American Airlines parent AMR. US Airways CEO Doug Parker met with union leaders, touting increased revenue from the merger as well as a pay raise for pilots. American Airlines' pilots union has already voiced support for the merger.
The Wall Street Journal (tiered subscription model) (5/2) 
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Southwest executive calls the shots on fuel hedging
Chris Monroe, the assistant treasurer at Southwest Airlines, makes the decisions on hedging fuel for the carrier. "We don't know where the price of crude is going to be," said Monroe. "I think we have to be generally bullish just because we're trying to protect against an increase ... So we have a little bit of a bias that prices may go higher."
CNBC (5/2) 
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Delta Air Lines traffic rose 1.1% in April
Traffic at Delta Air Lines increased 1.1% for April on a year-over-year basis, the third month in a row of growth. For Delta's routes in the Pacific, traffic soared 16% for the month. Delta also trimmed capacity 1.3% for the month.
The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (5/2) 
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US Airways reports higher traffic, capacity for April
US Airways reported an increase in unit revenue of 9% in April in its monthly operating statement. Passenger traffic rose 2.1% for April, as the carrier boosted capacity 1.6% for the month. The load factor for US Airways also increased to 83% for April.
Reuters (5/3) 
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Inside Aviation
Boeing announces forked winglet design for 737 MAX
Boeing announced that its 737 MAX jetliner would feature unique winglets to improve fuel efficiency. The forked design of the winglet will save airliners flying longer routes with the 737 MAX around $160,000 a year in fuel costs, according to Boeing. The 737 MAX is scheduled to enter service in 2017.
Reuters (5/2),  The Wall Street Journal (tiered subscription model) (5/2),  Bloomberg (5/2) 
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FAA reprimands passenger who filmed bird strike on plane
The Federal Aviation Administration issued a warning to a passenger who filmed a bird strike shortly after takeoff, violating the rule against using electronic devices. Passenger Grant Cardone filmed the bird strike on April 19 before the Delta Air Lines flight made an emergency landing.
CNN (5/2) 
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Energy Bulletin
Industry coalition grows in opposition to EU emissions-trading scheme
Ed Bolen, the president and CEO of the National Business Aircraft Association, said at a recent U.S. Chamber event the European Union's emissions-trading scheme is misguided. The EU scheme "flies in the face of not just the track record of aviation and the environment, but also of the idea that we are an interconnected global economy and we need harmony in our aviation regulations," said Bolen. A4A's Nancy Young called on the U.S. government to bring an Article 84 complaint.
AIN Online (5/3) 
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Regulatory Update
Government appoints arbitrators for Air Canada, union dispute
The Canadian government has appointed arbitrators for Air Canada and two unions. The pilots and machinists unions at Air Canada have organized wildcat strikes that have hurt operations. Lisa Raitt, the country's labor minister, urged the two sides to come to an agreement on labor contracts through the arbitration.
Reuters (5/2) 
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Industry Trends
Delta launches redesigned boarding passes
Delta Air Lines has revamped its boarding passes to make the document easier to read for passengers. The new passes also contain all information for a flight with connections so a passenger does not need more than one boarding pass. Delta hired AKQA, a digital and branding design agency, to help with the redesign.
The Wall Street Journal (tiered subscription model) (5/2) 
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IATA: Global air traffic climbed 7.6% in March
Data released by the International Air Transport Association show a 7.6% growth in air traffic around the world on a 9.6% rise in international air travel. However, the group points out that steep fuel prices are diminishing the growth's impact on airline profits.
TravelPulse (5/2),  Reuters (5/2) 
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Denver International Airport to lower lease rates
Denver International Airport is lowering lease rates for all airlines after United Airlines protested the cost structure. "United is committed to success in Denver, but it must be cost effective for us to operate," United said in a statement. "We worked together with Denver International Airport's leadership team to address our cost structure at DIA, and this proposal helps to narrow this cost disparity compared to our peers."
The Denver Post (5/2) 
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Career Development
Employers hope flex time enables workers to labor longer
Flexible work schedules have become more common in the past seven years as employers have pushed workers to take on more responsibilities, according to a report by the Society for Human Resource Management and the Families and Work Institute. "Most of the gains [in flex time] allow employees to work longer hours or adjust those hours to care for their personal and family responsibilities while getting their work done," says Ellen Galinsky, a co-author of the report.
The Kansas City Star (Mo.) (4/30) 
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