Category Archives: US Airways

Jay Selman’s Inside Look: US Airways operates the last Boeing 737 Classic revenue flight

Guest Editor Jay Selman

Guest Editor Jay Selman

An Inside Look: The End of a Classic Era

by Jay Selman

When I was hired by Piedmont Airlinesย (Winston-Salem) in 1981, the Boeing 737 reigned supreme. We were taking delivery of brand new Boeing 737-200s, and oh how I loved those birds. They were short and fat, and NOISY in an era when noise was still acceptable! In the early days of my airline career, I was on an airplane virtually every weekend. Those were the days when an airline could make money with a 50% load factor, and on those rare occasions when a flight did fill up, there was usually room in the cockpit for a company employee. Iโ€™d venture to say that 95% of my flights during the first 10 years of my career were in 737s.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-201 N736N (msn 19420) of Piedmont waits for its next assignment at Atlanta. The -200 is painted in the original 1974 livery.

By 1985, the 737-300 had joined the Piedmont fleet. Although it still had the 737 designation, it seemed to be a whole new animal. Those CFM-56 engines were massive compared to the JT-8Ds on the -200s, and the 737-300 promised significant increases in payload and range, as well as significant reductions in fuel burn. Oh yes, and they were QUIET. In fact, a common complaint among crewmembers flying the -300 was that they had to lower their voices so that passengers would not join in their conversations. The cockpits of Piedmontโ€™s -300s still had the old โ€œsteam gaugesโ€ but they also had greatly improved avionics, and even a lovely feature called โ€œAutolandโ€, which the company was never actually certified to use.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-301 N307P (msn 23259) of Piedmont wears the updated white top 1974 color scheme.

Piedmont was the launch customer for the Boeing 737-400, essentially a stretched -300, and in September, 1988, I had the good fortune to fly on the delivery flight of N406US, the first 737-400 in the world to be delivered by Boeing.

 

Copyright Photo: Nigel P. Chalcraft/AirlinersGallery.com. The first delivered -400, Boeing 737-401 N406US (msn 23876) taxies at Fort Lauderdale/Hollywood in the bare metal 1988 livery.

At one time, Piedmont was able to claim the title of the worldโ€™s largest operator of the Boeing 737. No wonder I had a love affair with the Seven Three throughout my career in the airline industry.

In 1989, Piedmont and USAir merged and I was now working for USAir. The merger brought a large number of different aircraft types to my company, but I still loved the 737.

 

Copyright Photo: Christian Volpati Collection/AirlinersGallery.com. Suddenly the Piedmont name and brand were going way. USAir later gave way to US Airways as a brand.

Then in 1997, USAir CEO Steven Wolf shocked the aviation community by announcing an order for up to 400 narrow-body Airbus aircraft. Ultimately, this would reduce the composition of the companyโ€™s narrow-body fleet to one basic type (the A319, A320, and A321 are all the same basic airplane).

The handwriting was on the wall for the USAir (later US Airways) 737sโ€ฆin fact, all of the narrow body aircraft operated by USAir. With respect to the 737s, the dwindling fleet of 737-200s was parked following the terrorist attacks of 9/11, while the last of the -300s was retired in 2013. Finally, on August 19, 2014, N435US operated the final flight of a US Airways 737, appropriately designated as flight US 737.

Copyright Photo: Jay Selman/AirlinersGallery.com. There are now no longer any US Airways 737 Classics operating out of the Charlotte hub. N406US landed at CLTย with 43515 cycles and approximately 65405.45 hours. The airliner was a trusted performer for the carrier and has now been retired to the desert.

โ€œCactus 737โ€, its ATC callsign, flew from Charlotte to Dallas/Fort Worth (DFW) to Philadelphia and back to Charlotte on August 19, and I was able to fly all three legs on it. US Airways elected to keep the event low-key, since, after all, the โ€œnew American Airlinesโ€ is currently operating over 230 Next-Generation 737-800s, and will eventually own a fleet of over 300 of the type. But what made the trip special for me was the fact that the pilot in command, Captain Jeff Tarr, was also flying his last trip as an airline pilot.

US Airways 737-400 N435US at the gate (JS)(LRW)

Copyright Photo: Jay Selman/AirlinersGallery.com. The end of an era. N435US sits at the gate, unlikely to carry passengers again.

 

When Cactus 737 pulled into Gate D7 at 9:48 pm at CLT, there was no real fanfare for the airplane, but there was plenty of recognition for Captain Tarr.

US Airways 737-400 Captain Jeff Tarr and F-O Robert Channell (JS)(LRW)

 

Copyright Photo: Jay Selman/AirlinersGallery.com. Pictured in the cockpit of N435US isย Captain Jeff Tarr (left) and F/O Robert Channell (right). This also was Jeff’s retirement flight.

And, after all, that is the way it should be. Too often, an airline is defined by its aircraft, or its color scheme, or its catch phrase. But what should REALLY define an airline is it’s employees. For most of us who have been in this industry for any length of time, it’s more than a job…it’s a way of life. Most of us who have been here for awhile began working in the days when we were envied for our status as airline employees. We remember hearing, “You have one of the best jobs in the world,” rather than, “I wouldn’t have your job for anything in the world.” An airline is about people, and not just airplanes.โ€จ Having said that, the Boeing 737 has been part of the airline I work for during my entire 33-year career. Admittedly, the Airbus offers many advantages to the passenger than the old 737 Classic. And, of course, once the merger is complete, I will, again, be working for a company that will be operating 300+ Next-Generation 737s.

US Flt 737 Crew (JS)(LRW)

Copyright Photo: Jay Selman/AirlinersGallery.com. The proud crew of flight US 737 that operated the flight from DFW to PHL and finally to CLT.

 

In my personal opinion, an Airbus simply cannot compare to a Boeing in terms of useful life and ruggedness. Why do I say this? Just consider this fact. There are still plenty of 737s around with 30+ years on their airframes. Many still haul passengers, while countless others have been converted to freight dogs. I have no idea how many 737s have been converted to cargo carriers, but I can tell you exactly how many A320s have been.โ€จ So, vive la 737. You’ve given me a great ride.

 

Piedmont Airlines (1st):ย AG Slide Show

USAir:ย AG Slide Show

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American and US Airways to end first class meals for flights under 3 hours

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix and Dallas/Fort Worth) (American Airlines Group) are ending meal service for its first class passengers for flights under three hours according to Bloomberg Businessweek. Snacks only “service” will start on September 1.

Read the full article: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-823 N801NN (msn 29565) approaches the runway at New York (JFK).

American Airlines (current livery):ย AG Slide Show

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American Airlines Group reports a record second quarter net profit of $864 million

American Airlines Group Inc. (American Airlines and US Airways) today reported its second quarter 2014 results:

Second quarter 2014 non-GAAP net profit excluding net special charges was $1.5 billion, a record for any quarter in the history of American Airlines

Second quarter 2014 GAAP net profit was a record $864 million

The Company also announced a capital deployment program, including over $2.8 billion in debt and aircraft lease prepayments, a $1 billion share repurchase program, the initiation of a quarterly cash dividend, and $600 million of additional pension contributions

As part of the program, American’s Board of Directors declared a dividend of $0.10 per share for shareholders of record as of August 4, 2014. The cash dividend is the first declared by American since 1980

For the second quarter 2014, American Airlines Group reported a record GAAP net profit of $864 million. This compares to a GAAP net profit of $220 million in the second quarter 2013, for AMR Corporation prior to the merger. The Company believes it is more meaningful to compare year-over-year results for American Airlines and US Airways excluding special charges and on a combined basis, which is a non-GAAP formulation that combines the results for AMR Corporation and US Airways Group.

On this basis, second quarter 2014 net profit excluding net special charges was $1.5 billion, a record for any quarter in the history of the Company. This represents a 114 percent improvement over the combined non-GAAP net profit of $681 million excluding net special charges for the same period in 2013. See the accompanying notes in the Financial Tables section of this press release for further explanation of this presentation, including a reconciliation of GAAP to non-GAAP financial information.

“We are very pleased to report the highest quarterly profit in the history of American Airlines,” said Chairman and CEO Doug Parker. “Our merger is off to a great start and our 100,000 team members are doing a wonderful job working together to take care of our customers.

“We are also pleased to announce a capital deployment program that reduces our debt, provides additional pension contributions and returns capital to shareholders. The fact that we are able to implement this program while still funding our significant product improvements, fleet renewal program and integration costs is further evidence of the success of our merger. We have much hard work ahead, but we are extremely encouraged by the great work being done by our team members.”

Revenue and Cost Comparisons

Total revenues in the second quarter were a record $11.4 billion, up 10.2 percent versus the second quarter 2013 on a combined basis, on a 3.1 percent increase in total available seat miles (ASMs). Driven by a record yield of 17.34 cents, up 6.5 percent year-over-year, consolidated passenger revenue per ASM (PRASM) was also a record at 14.57 cents, up 5.9 percent versus the second quarter 2013 on a combined basis.

Total operating expenses in the second quarter were $10.0 billion, up 7.0 percent over combined second quarter 2013. Second quarter mainline cost per available seat mile (CASM) was 13.61 cents, up 3.9 percent on a 3.5 percent increase in mainline ASMs versus combined second quarter 2013. Excluding special charges and fuel, mainline CASM was up 2.2 percent compared to the combined second quarter 2013, at 8.55 cents. Regional CASM excluding special charges and fuel was 15.80 cents, up 5.2 percent on a 0.4 percent decrease in regional ASMs versus combined second quarter 2013.

Liquidity

As of June 30, 2014, American had approximately $10.3 billion in total cash and short-term investments, of which $882 million was restricted. The Company also has an undrawn revolving credit facility of $1.0 billion.

During the quarter, the Company repaid $502 million of debt obligations, which includes approximately $175 million for the settlement of its 7.25% convertible notes with cash. The Company also prepaid $113 million of obligations associated with aircraft debt, $51 million associated with special facility revenue bonds and also used $630 million of cash to purchase aircraft that were previously being leased to the Company.

At June 30, 2014, approximately $791 million of the Company’s unrestricted cash balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.53 bolivars to the dollar. This includes approximately $94 million valued at 4.3 bolivars, approximately $611 million valued at 6.3 bolivars and approximately $86 million valued at 10.6 bolivars, with the rate depending on the date the Company submitted its repatriation request to the Venezuelan government. In the first quarter of 2014, the Venezuelan government announced that a newly implemented system (SICAD I) will determine the exchange rate (which fluctuates as determined by weekly auctions and at June 30, 2014 was 10.6 bolivars to the dollar) for repatriation of cash proceeds from ticket sales after January 1, 2014, and introduced new procedures for approval of repatriation of local currency.

The Company is continuing to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. However, pending further repatriation of funds, and due to the significant decrease in demand for air travel resulting from the effective devaluation of the bolivar, the Company recently significantly reduced capacity in this market. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment.

Capital Deployment Program

The Company also announced a capital deployment program intended to efficiently allocate cash balances over and above those required to fund its business. The program has three key components:

Debt/Lease Prepayments: Since the merger closed in December 2013, the Company has prepaid $420 million of aircraft debt and bond obligations. In addition, the Company plans to prepay $480 million of special facility revenue bond obligations by the end of 2014. It is anticipated that these prepayments will represent a reduction in the Company’s debt going forward. The Company has also used $630 million of cash to purchase aircraft that were previously leased to the Company and anticipates utilizing an additional $370 million of cash in this manner through the remainder of 2014. In addition, the Company has called for redemption of the remaining $900 million principal amount of the 7.5% senior notes due March 15, 2016. In total, these steps represent approximately $2.8 billion of prepayments that will be completed by the end of 2014.

Pension Funding: The Company plans to make supplemental contributions of $600 million to its defined benefit plans in 2014. These contributions would be above and beyond the $120 million minimum required contributions for 2014.

Return to Shareholders: The program includes a share repurchase program and the initiation of a quarterly dividend. The Company’s Board of Directors authorized a $1.0 billion share repurchase program to be completed no later than December 31, 2015. The Board also declared a dividend of $0.10 per share for shareholders of record as of August 4, 2014. The dividend will be paid on August 18, 2014. This is the first cash dividend declared at American Airlines since 1980.

Shares repurchased under the program announced above may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases will be made from time to time subject to market and economic conditions, applicable legal requirements and other relevant factors. The program does not obligate the Company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at management’s discretion.

Merger Integration Developments

US Airways joined American in the trans-Atlantic joint business agreement with British Airways, Iberia and Finnair and codeshare agreements with British Airways, Iberia and oneworld alliance partner airberlin

Combined operations at 72 airports since the merger

Began harmonizing its network by aligning flying between its hubs. The changes allow the Company to replace smaller regional aircraft with larger mainline aircraft and to redeploy regional jets to other markets to better match aircraft size with customer demand in small and medium sized communities
Announced new mileage redemption options for American Airlines AAdvantageยฎ and US Airways Dividend Milesยฎ members, along with new checked bag policies, and began to align the First and

Fleet and Network Developments

As part of its plan to modernize its fleet, the Company inducted 21 new aircraft during the second quarter

Expanded its European presence with new, seasonal summer service between its hub at Charlotte Douglas International Airport and Barcelona, Brussels, Lisbon and Manchester, U.K.

Strengthened its presence in the Asia-Pacific region with new nonstop service between Dallas/Fort Worth and Hong Kong and Shanghai

Announced twelve new routes in the United States and Canada from Dallas/Fort Worth, Chicago O’Hare, Los Angeles, Charlotte, N.C., Philadelphia and Phoenix, including service between DFW and new destination, Bismarck, N.D.

The Company also began service between DFW and Edmonton, Alberta

Other Developments

Distributed $5.5 million in operational incentive payouts to employees for on-time departures in the month of April; this distribution of $50 per employee is part of the Company’s Triple Play program which measures operational performance as reported in the DOT’s Air Travel Consumer Report (ATCR). To date, the Company’s employees have earned $16.5 million in operational incentive payouts
Honored with two awards from Airfinance Journal, including the 2013 Overall “Deal of the Year” for its merger with US Airways, and the 2013 Airline “Treasury Team of the Year” for its work on American’s debt and lease restructuring, a major aircraft order and other financing

Employees donated more than 13,000 hours to numerous projects in the second quarter. In addition, the Company donated more than $3 million of travel to organizations including American Fallen Soldiers, the Gary Sinise Foundation, the San Diego Air and Space Museum, and Carry the Load
Recognized four employees with the 2014 Earl G. Graves Award for Leadership in Diversity for influencing positive change, setting an example and leaving a lasting impact on those around them
Special Items

In the second quarter, the Company recognized a total of $592 million in net special charges, including:

$253 million net special operating charges, which principally included $163 million of merger integration expenses, a net $38 million charge for bankruptcy related settlement obligations, $37 million in charges relating to the buyout of leases associated with certain aircraft, and $15 million of other special charges

Net $337 million non-cash tax charge, consisting primarily of a $330 million non-cash tax charge related to the Company’s sale of its portfolio of fuel hedging contracts that were scheduled to settle on or after June 30, 2014. This charge reverses a non-cash tax provision which was recorded in Other Comprehensive Income (OCI), a subset of stockholder’s equity, principally in 2009. The provision represents the tax effect associated with gains recorded in OCI principally in 2009 due to a net increase in the fair value of the Company’s fuel hedging contracts

Copyright Photo: Jay Selman/AirlinersGallery.com. American Airlines Airbus A321-231 N114NN (msn 6046) completes its trans-con flight at New York (JFK).

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IAM members ratify three contracts with US Airways

US Airways (part of the American Airlines Group) (Phoenix and Dallas/Fort Worth) has issued this statement:

Mechanics and Related, Fleet Service, and Maintenance Training Specialists workgroups at US Airways, represented by the International Association of Machinists (IAM), ratified three collective bargaining agreements overing more than 11,000 employees. The agreements will remain in effect for the US Airways employees until a joint collective bargaining agreement covering the 30,000 employees of the new American Airlines has been reached.

“We are pleased we have reached these agreements,” said Doug Parker, chairman and CEO of American Airlines. “We want to thank the International Association of Machinists leadership and negotiators for their professionalism and hard work on behalf of their members. We would also like to express our appreciation to the National Mediation Board, Board Member Linda Puchala and Mediator Walter Darr for their assistance in reaching these agreements. These agreements will allow us to focus on the next steps for integrating our airlines, and we can now start the process of bringing these employee groups together with their co-workers from American through joint collective bargaining agreements.”

The ratification continues progress on labor agreements at American Airlines since the merger with US Airways closed on December 9, 2013. Negotiations for joint flight attendant and pilot agreements are underway, and processes are in place to ensure that joint collective bargaining agreements for those groups will be reached soon.

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A319-132 N837AW (msn 2595) in the special ย NFL “Arizona Cardinals” livery arrives at Baltimore/Washington.

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US Airways and Finnair launch their codeshare agreement

US Airways (Phoenix and Dallas/Fort Worth) yesterday (July 16) launched its codeshare agreement with trans-Atlantic joint business partner Finnair (Helsinki), further enhancing its relationship with the fellow oneworld alliance member and providing customers increased access to Helsinki and beyond. Customers can now book tickets for codeshare flights for travel beginning July 24.

Through the codeshare, customers can now book Finnair flights from New York’s John F. Kennedy International Airport (JFK) and Toronto Pearson International Airport (YYZ) to Helsinki Airport (HEL) and beyond. The codeshare will extend to additional Finnair flights from Helsinki, providing customers more access to 11 destinations including Brussels, Oslo, Stockholm and Zurich.

Finnair customers will now have more options when traveling from Europe to the United States on US Airways-operated flights to Charlotte and Philadelphia. Customers can also book travel on US Airways-operated flights beyond JFK to Phoenix.

As part of this relationship, Dividend Miles and Finnair Plus frequent flyer programs are able to earn and redeem miles on flights operated by the other carrier, providing another valuable benefit to customers. In addition, customers will now be able to earn miles when traveling on codeshare flights operated by the other airline.

US Airways joined the Atlantic joint business with British Airways, Iberia and Finnair as an affiliate member earlier this year, and will remain as such until it fully integrates with American Airlines.

Top Copyright Photo: Eddie Maloney/AirlinersGallery.com. US Airways’ Airbus A319-132 N822AW (msn 1410) in the special Nevada “Battle Born” state livery lands in Las Vegas.

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Finnair:ย AG Slide Show

Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Finnair’s Airbus A330-302 OH-LTT (msn 1088) completes its final approach to the runway at John F. Kennedy International Airport (JFK).

US Airways to operate a special flight “0737” on August 19 to honor the last Boeing 737 Classic

US Airways (Phoenix and Dallas/Fort Worth) has decided to honor the long line of Boeing 737 Classic aircraft with a special flight “US 0737” that will be flown on the last day of revenue passenger operations for the last Boeing 737-400 on August 19.

US Airways, with the previously legacy operations of Allegheny Airlines, USAir, Piedmont Airlines and now US Airways, the airline has flown the Boeing 737-200, 737-300 and 737-400 models. This is the last flight of a Classic 737 for the company.

The new American Airlines will continue to operate the Next-Generation Boeing 737-800 model. This special flight is available to the public and employees who want to experience history of the last flight.

Passengers and employees on this special flight will pay tribute to the many years of faithful service this aircraft type has provided to the legacy US Airways certificate holder.

The special flight will be routed from Charlotte (CLT) to Dallas/Fort Worth (DFW), then on to Philadelphia (PHL) and finally back to Charlotte to close this chapter of airline history. Extra time is being allocated at each station for special farewell ceremonies.

Previously on November 26, 2012 US Airways retired its last Boeing 737-300 from revenue service. Aircraft 737-3B7 N530AU (msn 24412) operated flight US 1611 from Raleigh/Durham to the Charlotte hub ending 28 years of faithful service

The now finalized schedule of special flight US 0737 on Tuesday August 19, 2014:

US Airways last 737-400 flight (LRW)

Thank you US Airways and the American Airlines Group for honoring airline history and for organizing this special goodbye flight.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-4B7 N443US (msn 24842) taxies to the runway at the Charlotte Douglas International Airport (CLT) hub.

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PSA Airlines to introduce the new Bombardier CRJ900 on July 31

PSA Airlines (2nd) (American Eagle and US Airways Express) (subsidiary of American Airlines Group) will introduce its new Bombardier CRJ900s (three delivered so far) on July 31 per ch-aviation.

Although painted in American Eagle colors (above), the CRJ900s will initially be operated for US Airways mainly from the Charlotte and Philadelphia hubs.

Copyright Photo: Brian Peters/AirlinersGallery.com. The pictured Bombardier CRJ900 (CL-600-2D24) C-GWGQ became N547NN (msn 15317) when it was handed over on June 4, 2014.

US Airways Express-PSA Airlines:ย AG Slide Show

PSA (2nd) 2014 logo

 

Current Route Map for PSA Airlines:

PSA (2nd) 7.2014 Route Map

Video: Delivery of the first Bombardier CRJ900 to PSA Airlines:

US Airways to add a second daily Charlotte-London Heathrow flight

US Airways (American Airlines Group) (Phoenix and Dallas/Fort Worth) is adding a second daily flight from its Charlotte hub to London (Heathrow) starting on September 13. The second flight will be operated with Airbus A330-200 equipment according to The Charlotte Observer. The second flight was made possible by the acquisition of the arrival and departure slots purchased from Cyprus Airways (Larnaca).

Read the full report: CLICK HERE

Copyright Photo: David Neal/AirlinersGallery.com. Airbus A330-243 N283AY (msn 1076) departs from the Charlotte Douglas International Airport (CLT) hub.

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US Airways to launch two new routes to Canada from Los Angeles

US Airways (Phoenix and Dallas/Fort Worth) will launch two new routes from Los Angeles to Canada on October 2. The carrier will start US Airways Express Bombardier CRJ900 daily service to both Edmonton and Vancouver according to Airline Route.

Copyright Photo: Stephen Tornblom/AirlinersGallery.com. Bombardier CRJ900 (CL-600-2D24) N934FJ (msn 15034) of Mesa Airlines taxies at Long Beach.

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US Airways Express-Mesa Airlines:ย AG Slide Show

American Airlines and the IAM reach a tentative agreement for a new three-year contract with the US Airways mechanics

American Airlines (Dallas/Fort Worth) and the International Association of Machinists (IAM) union have reached three tentative agreements covering more than 11,000 US Airways (Phoenix) mechanics, fleet service agents and maintenance training specialists. The Tentative Agreements cover the workgroups separately and amend pre-merger contracts. The three-year agreements are each subject to membership ratification. The union leadership and negotiating committees unanimously endorsed the tentative agreements, which if ratified, will lead to joint collective bargaining negotiations with their colleagues at the Transport Workers Union (TWU) to cover more than 30,000 employees at the new American Airlines.

The tentative agreements announced today continue progress on labor agreements at American Airlines since the merger with US Airways closed on December 9, 2013. Negotiations for a joint flight attendant agreement are underway. In addition, unions for pilots, flight attendants and customer service agents have filed petitions with the National Mediation Board for single carrier status determination to resolve union representation.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A319-112 N702UW (msn 896) of US Airways now painted in the American Airlines brand arrives at Washington (Reagan National).

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