Monthly Archives: November 2011

The AMR bankruptcy clouds the potential American Boeing 737 orders

AMR Corporation’s (Dallas/Fort Worth) Chapter 11 bankruptcy protection and reorganization filing yesterday is clouding American Airlines’ large aircraft orders with both Airbus and especially Boeing which is still not firm.

The bankruptcy court can approve or reject any contracts that involve spending AMR’s money during the up to 18-month Chapter 11 reorganization period.

Read the full report from Reuters: CLICK HERE

In other news, AMR and American Airlines announced today Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York yesterday granted approval of a series of first day motions filed by the Company to help facilitate American’s and American Eagle’s continued normal business operations throughout the reorganization process.

The Company also reported that, as expected, American and American Eagle continued normal operations yesterday, with flights, reservations, baggage handling, customer service and other functions operating as usual.

Copyright Photo: Michael B. Ing. Please click on the photo for additional information.

American Slide Show: CLICK HERE

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Norwegian to add the Copenhagen-Milan route

Norwegian Air Shuttle (Norwegian.com) (Oslo) will add the Copenhagen-Milan (Malpensa) route on June 29, 2012 according to Airline Route. The new route will be operated twice a week with Boeing 737-800s.

Copyright Photo: Terry Wade.

Norwegian Slide Show: CLICK HERE

Avianca Brazil to expand its fleet to 26 aircraft, likely to add the 15 LAN A318s

Avianca Brazil (OceanAir Linhas Aereas dba) (Sao Paulo) is expanding its fleet to 26 aircraft from 17 by the end of this year according to this report by CAPA.

The fast-growing airline is also the likely buyer of the 15 former Airbus A318s being remarketed by Airbus. LAN Airlines (Santiago) is replacing its A318 fleet with larger A320s.

Avianca Brazil is phasing out its older Fokker 100s. The company also added its first Airbus A320 this month.

Avianca Brazil is the operating name of Oceanair Linhas Aéreas. Even though the legal name of the airline remains OceanAir, Avianca (Colombia) authorized OceanAir to use its name as a brand name. Avianca (Colombia) and Avianca (Brazil) remain separate legal entities although they are closely linked and belong to the same holding group.

Read the full report: CLICK HERE

Copyright Photo: Marcelo F. De Biasi.

Avianca Brazil Slide Show: CLICK HERE

Route Map:

Mesa sells off the Mokulele Hawaiian operation

Mesa Air Group (Phoenix) has sold its Mokulele Flight Services, Inc. (Mokulele Airlines) (Honolulu) inter-island Hawaiian turboprop service operating four, nine seat, Cessna Grand Caravan aircraft to Transpac Aviation, Inc. (Scottsdale).

Mesa will continue to operate its jet inter-island service as go! Mokulele with Bombardier CRJ200 regional jets. Under the terms of the sale Transpac Aviation, operating as Mokulele Flight Services, Inc, will also continue to offer feeder service under the go! Mokulele brand and serve it’s current routes as a code-share partner with Mesa.

Copyright Photo: Ivan K. Nishimura. Bombardier CRJ200 N77278 (msn 7278) of Mesa Airlines taxies at the Honolulu base under the go! Mokulele brand. Mesa operates the main routes in Hawaii while Mokulele Airlines operates the smaller feeder routes also under the go! Mokulele brand.

Route Map:

AMR and American Airlines file for Chapter 11 bankruptcy protection and reorganization

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc. (Dallas/Fort Worth) and AMR Eagle Holding Corporation (American Eagle Airlines) (Dallas/Fort Worth) today filed for Chapter 11 bankruptcy protection and reorganization.

The corporation issued the following statement:

“In order to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers, the Company and certain of its U.S.-based subsidiaries (including American and American Eagle), today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

AMR’s Board of Directors determined that a Chapter 11 reorganization is in the best interest of the Company and its stakeholders. Just as with the Company’s major airline competitors in recent years, the Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs and other obligations.

American Airlines and American Eagle are operating normal flight schedules today, and their reservations, customer service, AAdvantage® program, Admirals Clubs and all other operations are conducting business as usual. Likewise, throughout the Chapter 11 process, American and American Eagle expect to continue to:

1. Provide safe and reliable service;

2. Fly normal schedules;

3. Honor tickets and reservations, and make exchanges and refunds as usual;

4. Fully maintain AAdvantage frequent flyer and other customer service programs, and ensure all AAdvantage miles and elites status earned by members remain secure and intact;

5. Provide Admirals Club access and similar amenities to members and eligible customers;

6. Remain an integral member of the oneworld® alliance, of which American is a founding member, and continue its codeshare partnerships;

7. Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and

8. Pay suppliers for goods and services received during the reorganization process.

The Company has approximately $4.1 billion in unrestricted cash and short-term investments. This cash, as well as cash generated from operations, is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full for goods and services provided during the Chapter 11 process in accordance with customary terms. Because of the Company’s current cash position, the need for debtor-in-possession financing is neither considered necessary nor anticipated.”

In addition, the Board of Directors of AMR Corporation, the parent of American Airlines, Inc., has named Thomas W. Horton chairman and chief executive officer (CEO) of the Company, succeeding Gerard Arpey , who yesterday informed the Board of his decision to retire. Horton will also succeed Arpey as chairman and chief executive officer of American. Horton will continue to serve as President of AMR and American.

The filing is not a surprise to many given the corporation’s continued losses. Most of AA’s competitors domestically have already gone through a Chapter 11 reorganization process and many will see this as a mechanism to lower AA’s high costs including its labor agreements.

Copyright Photo: Brian McDonough. Will the Oneworld Alliance be weakened with this filing?

American Slide Show: CLICK HERE

QANTAS shelves any plans for an Asian premium airline

QANTAS Airways (Sydney) has shelved any plans for a new premium airline in Asia due to the current market conditions according to this article by Reuters.

Read the full report: CLICK HERE

Copyright Photo: Michael Stappen. Please click on the photo for additional information.

QANTAS Slide Show: CLICK HERE

UTair Aviation to launch a new route to Yerevan

UTair (Russia) (Khanty Mansiysk) will launch the Mineralyne Vody-Yerevan (Armenia) route on November 30 according to Airline Route. The new route will be operated three times a week with Boeing 737-500s.

Copyright Photo: OSDU.

UTair Slide Show: CLICK HERE