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| Airlines for America SmartBrief |
| April 23, 2012 |
A US Airways, American Airlines merger could face challenges
Some experts say a merger between US Airways and American Airlines may create the world's largest airline, but also would present challenges. "The challenge is to integrate the workforces. And US Airways to date hasn't been able to do that with its America West merger," said Eric Smith, a bankruptcy and aviation attorney. However, Bob Herbst, an airline industry analyst and founder of AirlineFinancials.com, said, "Total cost-saving synergies [equal] $1.8 billion to $2.5 billion accretive within 12 months of merger. ... It's the opinion of AirlineFinancials.com that American and US Airways must merge to remain long-term competitive." Tulsa World (Okla.) (4/22) The Wall Street Journal (4/23)
American Airlines will present case in court over union contracts
American Airlines will plead its case for canceling union contracts in bankruptcy court this week. AMR Corp., the parent company of American, filed for bankruptcy in November. "We must follow this course to address our onerous labor costs through either consensual agreements or court-imposed reductions to return American to industry leadership as a viable, sustainably profitable airline," said Bruce Hicks, spokesman for American. Fort Worth Star-Telegram (Texas) (4/22) The Washington Post/The Associated Press (4/23)
Other News
Bird strike hits vice presidential plane in Calif.
Air Force Two, which was carrying Vice President Joe Biden, was struck by birds last week while landing at Santa Barbara Airport in California. Two to three birds collided with the Boeing 757, which was grounded afterward so it could be inspected for damage. The Huffington Post (4/20)
US Airways union for flight attendants wants contract
US Airways flight attendants are pressing for a contract in the wake of the carrier's agreements with three American Airlines unions. "Any new deal must first acknowledge the contributions of US Airways flight attendants through a single contract with job security and improvements promised to flight attendants involved in the last merger initiated by US Airways management," said union leaders. TravelPulse (4/22)
U.K. airlines will inspect Dreamliner at Heathrow
Thomson Airways, British Airways and Virgin Atlantic will inspect the Dreamliner 787 at Heathrow Airport in London. The carriers have placed orders for the 787. Boeing is taking the Dreamliner on a world tour, and plans to visit three airports in the U.K. Google/The Press Association (U.K.) (4/23)
Other News
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U.S. has limited power over global oil market, observers say
Despite increased domestic oil production and slumping demand, U.S. fuel prices remain high because the global oil market is largely determined by factors outside the control of the U.S., observers said. "It's frustrating to everybody," said Howard Gruenspecht, acting administrator of the Energy Information Administration. "This year, the dominant factor in pushing up world oil prices -- and thus gasoline prices in the United States -- is geopolitics -- specifically, rising tension over Iran," said Daniel Yergin, chairman of IHS CERA. USA Today (4/19)
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Aviation taxes "destroy job opportunities," travel group says
Aviation industry executives denounced airline taxes at the World Travel & Tourism Council Summit held in Tokyo last week. "Western governments don't get it about aviation and travel," said Martin Craigs, CEO of the Pacific Asia Travel Association. "They are in their jobs to create jobs, and their policies destroy job opportunities." Travel Weekly (4/22)
A4A is against forcing airlines to use GDSs
Airlines for America is opposed to a possible mandate by the Department of Transportation that would require airlines to sell tickets through global distribution systems. Most airlines sell tickets through GDSs, but it is the airline's choice. A4A sent a letter to Transportation Secretary Ray LaHood lobbying against requiring ticket sales through GDSs. TravelPulse (4/22)
Other News
Deadline looms for mandated plane-diversion plans at airports
Airports are struggling with required plans for plane diversions as the May 14 deadline draws closer. Congress ordered airports to devise procedures for disembarking and aiding passengers in the event of a delay or airplane diversion following an October incident in Connecticut when passengers were forced to wait seven hours on the airport tarmac after being diverted because of a snowstorm. USA Today (4/22)
Wireless in-flight entertainment is expected to boom in next decade
A new report from IMS Research estimates that some 9,000 aircraft will offer wireless in-flight entertainment systems by 2021 as carriers move away from the traditional seat-back or cabin-roof entertainment systems. Wireless IFE will offer passengers streaming content such as sports, music, TV shows and video games that goes straight to passengers' or airline-provided handheld devices that will also allow travelers to manage their travel in the air. MSNBC/Overhead Bin (4/20) Breaking Travel News (4/22)
Summer airfares are unlikely to go on sale, experts say
Airfare bargains for the summer will be scarce this year, experts say. Airlines are facing higher fuel costs in 2012, which will keep fares from going on sale. The Arizona Republic (Phoenix) (tiered subscription model) (4/22)
Other News
Are you slowly losing your integrity?
Unethical behavior is a slippery slope, writes Mary Jo Asmus. Small transgressions might seem harmless, but they soon snowball into major ethical tangles that make it harder for bosses to do their jobs effectively. "[L]oss of integrity is a silent leadership killer. ... The erosion of this value may happen very slowly over time without much notice of integrity violations on the part of those who participate in questionable practices," she writes. SmartBrief/SmartBlog on Leadership (4/18)
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