United Airlines applies for San Francisco-Tokyo Haneda authority

United Airlines (Chicago) has applied to the U.S. Department of Transportation (DOT) for authority to provide daily nonstop service from the airline’s hub at San Francisco International Airport to Haneda Airport in downtown Tokyo. United applied for the Haneda Airport slot pair used by American Airlines for New York (JFK)-Haneda service, which the carrier announced on October 16, 2013, it will terminate.

United proposes to begin the new service from San Francisco in the summer of 2014, using existing aircraft in its fleet, subject to government approval.

From San Francisco, United and the United Express carriers operate more than 300 daily flights to more than 90 cities in North America, Asia, Australia and Europe. With nonstop service from San Francisco to Beijing, Hong Kong, Osaka, Seoul, Shanghai, Sydney and Tokyo Narita, and beginning next year to Taipei and Chengdu (subject to government approval), United’s San Francisco hub serves more destinations across the Pacific with more nonstop flights from the United States than any other airline, and nearly twice as many as any other airline from the U.S. West Coast. United also operates daily nonstop flights to Tokyo Narita from Chicago, Denver, Guam, Honolulu, Houston, Los Angeles, New York/Newark, San Francisco, Seattle and Washington.

The proposed San Francisco-Haneda flights will complement United’s daily San Francisco-Tokyo Narita service, which will continue to operate and offer alternative time-of-day departures and arrivals, as well as options for passengers who prefer to travel to Tokyo Narita or are making connections there.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 777-222 ER N222UA (msn 30553) lands at SeaTac (Seattle-Tacoma International Airport).

United Airlines:

Alaska Airlines dedicates a “Spirit of Education” Boeing 737-900 ER to the nation’s first college preparatory, aviation-themed high school

Alaska Airlines (Seattle/Tacoma) has issued this press release:

Local business and government leaders joined students, educators and alumni from Raisbeck Aviation High School onboard a specially themed Alaska Airlines jet on October 17 for the grand opening of the new facility for the nation’s first public, college preparatory, aviation-themed high school. The “Spirit of Education,” the Boeing 737-990 ER N403AS (msn 41730), is dedicated to the students and staff of Raisbeck Aviation High School and will fly for six months around the carrier’s route network.

Among the passengers onboard Flight AS 9401 was senior Austin Spores of Redmond, Washington, who commutes two hours to school every day. Spores, who is getting his private pilot’s license, plans to pursue a career as a commercial pilot.

Like all students who choose to attend RAHS instead of a traditional secondary school, Spores had a strong interest in science, technology, engineering and mathematics (STEM). Last summer, he interned as a dispatcher for Seattle-based Kenmore Air and hopes to study aeronautics at the University of North Dakota or Embry-Riddle Aeronautical University after graduating next June.

“I’ve been surrounded by aviation my entire life, so being in an aviation-themed environment like Raisbeck Aviation High School is a dream come true,” Spores said.

Alaska Airlines employees have mentored and volunteered with students interested in commercial aviation since the school’s inception in 2004. As a founding sponsor, the airline pledged $1.5 million in a public/private partnership to build the $44.5 million state-of-the-art school designed to educate the next generation of scientists, engineers, and other aviation and aerospace-focused professionals.

“Investing in Raisbeck Aviation High School is an investment in the youth of our community,” said Brad Tilden, Alaska Airlines’ president and CEO. “Students attending this STEM school are poised to bring much-needed innovation to our industry, which could further improve the safety, efficiency and environmental performance of commercial aviation.” Raisbeck Aviation High School, part of Highline Public Schools, is located on the grounds of the Museum of Flight near Boeing Field to encourage partnerships with aviation and aerospace leaders and ensure relevance in the instructional program.

“Having this school on the grounds of the Museum of Flight, so close to more than 200 aviation industry businesses like Boeing and Alaska Airlines, gives our students something truly special — an unparalleled chance to be simultaneously immersed in learning and industry,” said Reba Gilman, Raisbeck Aviation High School CEO and principal.

Highlights of Raisbeck Aviation High School:

400 students from 27 school districts travel by car, train, boat/ferry or bus to attend the public school, located in Tukwila, Wash.
Students of RAHS consistently rank in the top 5 percent in Washington state assessments. The school’s performance ranks 252^nd out of 22,000 nationwide high schools according to US News & World Report. About three-quarters of RAHS students intend to pursue STEM-related education at universities including Stanford, Harvard, Cornell and MIT.
The school is designed for project-based instructional programs, with labs that enable students to build robots, rockets, model airplanes and even a real airplane.
Rather than a traditional library, the school provides classroom libraries and access to the Museum of Flight’s extensive archives and library. A computer is provided to each student.
During the summer, the school will be used by the museum for science camps — assuring year-round utilization of the building as well as introducing younger children to Raisbeck Aviation High School.
All RAHS students are connected with a mentor in an aviation/aerospace-related field. Students are also placed in internships in high-demand STEM workplaces such as Boeing, the Federal Aviation Administration and the Port of Seattle.

Supporting education in its home state is a top priority for Alaska Airlines. Since 2007, the carrier has contributed more than $6.5 million in cash and in-kind contributions to 303 Washington educational institutions and organizations. Recent gifts include $150,000 to Western Washington University’s Institute for Energy Studies, $75,000 to the Highline Community College Foundation for student scholarships, $700,000 to the Independent Colleges of Washington and $1.5 million to the University of Washington.

Alaska Airlines:

Hawaiian to offer nonstop service from Los Angeles to both Lihue and Kona next summer

Hawaiian Airlines (Honolulu) will offer first-ever nonstop service between Los Angeles and the islands of Kaua’i and Hawai’i, in response to growing demand during next summer’s peak travel period.

New annual summer service will commence between Los Angeles and Lihu’e, Kaua’i four times a week, and Los Angeles and Kona, Hawai’i Island three times a week starting in 2014 from June 26 to September 19. The new service will add more than 22,000 seats to both island travel markets over 12 weeks of service, and complements the new Oakland service that will also start next summer with direct flights to Lihu’e and Kona for 10 weeks.

The new Los Angeles service will be operated by Hawaiian Airlines’ wide-body, twin-aisle Boeing 767-300 ER aircraft. With the addition of the service, both Lihu’e Airport and Kona International Airport will have a Hawaiian Airlines wide-body aircraft arriving every day of the week next summer.

Flight	Route	Departs	Arrives	Frequency	Start Date
HA 62	KOA-LAX	12:40 p.m.	9:05 p.m.	Tues, Thurs, Sun	June 26, 2014
HA 61	LAX-KOA	8:00 a.m.	10:55 a.m.	Tues, Thurs, Sun	June 29, 2014
HA 64	LIH-LAX	12:40 p.m.	9:15 p.m.	Mon, Wed, Fri, Sat	June 27, 2014
HA 63	LAX-LIH	8:00 a.m.	11:10 a.m.	Mon, Wed, Fri, Sat	June 27, 2014

Hawaiian Airlines is the only carrier serving Hawai’i to offer complimentary meals in Economy Class. In addition, travelers flying between Los Angeles and Kaua’i and Hawai’i, the Big Island can relax and enjoy the comfort and roominess of Hawaiian Airlines’ wide-body, twin-aisle Boeing 767-300 aircraft, seating 264 passengers in a two-class cabin, with 18 in First Class and 246 in the Main Cabin. Adding to the enjoyment of the travel experience on Hawaiian Airlines is the carrier’s signature onboard hospitality program, Mea Ho’okipa (translation: I am host). Travelers will enjoy island-style complimentary meals and made-in-Hawai’i snacks to go along with Hawaiian Airlines’ engaging presentation of the islands’ culture, people and Aloha Spirit throughout the flight.

Hawaiian Airlines:

United to add new “ski season” flights

United Airlines (Chicago) will add flights to popular U.S. ski destinations for the upcoming winter and spring ski season, with three new routes and increased service on several existing routes.

New Service

On December 12, 2013, United will launch nonstop service from its San Francisco hub to Sun Valley, Idaho, with daily flights offered through March 30, 2014.

United will also begin nonstop service from its Chicago O’Hare hub to Gunnison/Crested Butte and Steamboat Springs/Hayden, Colorado. The Gunnison/Crested Butte flights will begin on December 21, 2013, and the Steamboat Springs/Hayden flights will begin on February 15, 2014. The Gunnison/Crested Butte and Steamboat Springs/Hayden flights will operate through March 29, 2014.

Additional Service on Existing Markets

United will also add flights to existing ski market routes from several of its hubs:

Denver to Kalispell/Whitefish, Montana.
Houston to Aspen, Colorado.
Houston, Los Angeles and Newark to Jackson Hole, Wyoming.
Los Angeles to Steamboat Springs/Hayden, Colorado.
Newark to Bozeman, Montana.

United Express carrier SkyWest Airlines (United Express) (St. George, UT) will operate the new routes, using Bombardier CRJ700 regional jet aircraft with United First, United Economy Plus and United Economy seating.

SkyWest’s CRJ700 aircraft are among the first being outfitted with United’s new signature seat design that is focused on customer comfort and environmental responsibility.

The multi-tonal leather seats on the CRJ700 aircraft will have more ergonomic and supportive cushioning and additional seat-back storage space in United Economy Plus and United Economy. New technology makes the seats more environmentally friendly by reducing seat weight and volume, contributing to less fuel burn. United will also outfit other aircraft types with the multi-tonal leather interiors and similar cushioning and seat-back storage.

Winter Ski Destinations from All U.S. Hubs

From the Denver hub alone, United offers nonstop flights to 13 ski resorts for the winter ski season. Additionally, the new flights further expand United’s broad range of winter-season service from all of its U.S. hubs to ski destinations across North America, including:

Aspen: from Chicago, Denver, Houston, Los Angeles and San Francisco
Bozeman: from Chicago, Denver, Los Angeles, New York/Newark and San Francisco
Burlington, Vt.: from Chicago, Cleveland, New York/Newark and Washington
Durango, Colo.: from Denver
Eagle/Vail, Colo.: from Denver, Houston and New York/Newark
Gunnison/Crested Butte: from Chicago, Denver and Houston
Hayden/Steamboat Springs: from Chicago, Denver, Houston, Los Angeles, and New York/Newark
Jackson Hole: from Chicago, Denver, Houston, Los Angeles, New York/Newark and San Francisco
Kalispell/Whitefish: from Denver
Kelowna, British Columbia: from Los Angeles
Mammoth Lakes, Calif.: from Orange County and San Francisco
Montrose/Telluride, Colo.: from Chicago, Denver, Houston, Los Angeles, and New York/Newark
Reno/Tahoe, Nev.: from Denver, Houston, Los Angeles, and San Francisco
Salt Lake City: from Chicago, Denver, Houston, Los Angeles, and San Francisco
Santa Fe/Taos, N.M.: from Denver
Sun Valley: from San Francisco
Vancouver, British Columbia: from Chicago, Denver, Houston, Los Angeles, and San Francisco

Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines’ Bombardier CRJ700 (CL-600-2C10) N706SK (msn 10149) climbs away from the runway at Los Angeles International Airport.

United Express-SkyWest Airlines:

United Airlines:

Norwegian to launch new routes from London Gatwick to New York, Los Angeles and Fort Lauderdale/Hollywood

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has announced it will launch three new intercontinental nonstop routes between London (Gatwick) and New York (JFK), Los Angeles and Fort Lauderdale/Hollywood starting in the summer of 2014. In addition to these new long-haul routes, Norwegian will also launch five new European nonstop routes and is also increased capacity on existing routes.

Norwegian continues its international expansion with more Boeing 787 Dreamliner aircraft. Following the successful launch of direct routes within Europe from Gatwick earlier this year, the fast growing carrier is now launching intercontinental routes from London Gatwick.

Five new European destinations

In addition to the new intercontinental routes, Norwegian is launching five new European destinations from London Gatwick. New destinations from next spring and summer are: Santorini, Corfu, Catania, Cyprus and Budapest. Norwegian is also increasing capacity to existing destinations: Malaga, Ibiza, Split, Dubrovnik, Majorca, Faro, Tenerife, Copenhagen and Barcelona.

Norwegian currently offers 320 flights a week to 25 destinations from London Gatwick.

Norwegian:

Boeing to lose another customer next week: VivaAerobus

VivaAerobus (vivaaerobus.com) (Monterrey) will reportedly jump off the Boeing ship next week and order up to 40 Airbus A320 family aircraft according to this report by Reuters. The new aircraft will replace the aging Boeing 737-300 fleet. This will be the latest defection to Airbus from Boeing in the latest hard fought battle.

Read the full report: CLICK HERE

VivaAerobus:

The Atlantic takes a look at the “Secret Language of the Skies”

For those WAN readers who are not pilots, you may find this article very interesting. It is written by Deborah Fallows of The Atlantic on the “Secret Language of the Skies” and how navigational waypoints get their odd names.

Read the full article: CLICK HERE

Spirit Airlines Airbus A319 suffers a serious uncontained engine failure

Spirit Airlines‘ (Fort Lauderdale/Hollywood) flight NK 165 from Dallas/Fort Worth to Atlanta on Tuesday (October 15) operated with Airbus A319-132 N516NK (msn 2704) with 145 passengers and five crew members, was climbing out of DFW when the left V2500 engine exploded with a large bang. Smoke filled the passenger cabin and the cockpit prompting the flight crew to don their oxygen masks and shut the engine down. The airliner returned to DFW and made a safe emergency landing.

The V2500 engines are built by International Aero Engines, a consortium led by Pratt and Whitney.

The NTSB and the FAA are investigating. According to this report by the Seattle Times, the event was uncontained engine failure, quoting an unnamed NTSB official.

Read the full report: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A319-132 N516NK is still painted in the old 2004 black and silver scheme.

Spirit Airlines:

Video:

Horizon Air to use Q400 warm air bridges at Fairbanks, Alaska

Alaska Airlines (Seattle/Tacoma) has issued this statement for its Alaska Horizon (Horizon Air) Bombardier DHC-8-402 (Q400) cold weather operations in Fairbanks, Alaska:

Fairbanks residents flying on Alaska Airlines’ Bombardier Q400s starting next March will board and deplane the aircraft using the existing jet bridge at Fairbanks International Airport. The carrier will modify the jet bridge at Gate 1 to provide passengers with warm, easy access to their flights on the turboprop aircraft.

“We listened to customer concerns about boarding the plane outside during the winter and took our time to carefully evaluate all of our options,” said Marilyn Romano, Alaska Airlines’ regional vice president – Alaska. “With slight modifications to the existing jet bridge, our customers traveling between Fairbanks and Anchorage will have a way to board and deplane that protects them from the cold winter weather and is also safe and accessible for travelers with limited mobility.”

Alaska Airlines is exploring a warm boarding solution for customers boarding and deplaning the Q400 at Ted Stevens International Airport in Anchorage, Romano said.

Starting next March, Alaska will increase service between Anchorage and Fairbanks from seven to nine daily flights; eight flights will be operated with the Q400 and one with a Boeing 737. Additionally, the Q400 will replace an Alaska 737 on one of two daily round-trip flights between Anchorage and Kodiak. Initial service to Kodiak will begin March 3 and end April 30, then resume again for seasonal service between October and April.

Alaska Horizon:

Alaska Airlines:

AMR reports a third quarter net profit of $420 million, excluding reorganization and special items

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc., (Dallas/Fort Worth) reported results for the third quarter ended September 30, 2013. Key highlights include:

Net profit of $530 million, excluding reorganization and special items, a $420 million improvement year-over-year; on that basis, it is the most profitable quarter in company history
Revenue of $6.8 billion, up 6.2 percent year-over-year; the highest quarterly revenue total in company history
Consolidated unit costs, excluding fuel and special items, improved 5.0 percent year-over-year, marking the fourth consecutive quarter of unit cost reduction
AMR ended the third quarter with approximately $7.7 billion in cash and short-term investments, including restricted cash, compared to a balance of approximately $5.1 billion at the end of the third quarter of 2012
American continued its fleet renewal, taking delivery of ten fuel-efficient Airbus A319s, eight Boeing 737-800s, and one Boeing 777-300 ER in the quarter, while also placing into service four Embraer ERJ 175s operated by one of its affiliated regional carriers
American and US Airways Group are vigorously defending the lawsuit filed by the Department of Justice seeking to enjoin their planned merger and continue to move forward with developing a merger integration plan
American accrued $59 million in employee profit sharing in the quarter, and has accrued a total of $65 million for employee profit sharing this year. The anticipated distribution would be the first profit sharing payout in thirteen years

“We are pleased to report our highest quarterly net profit in American’s history, excluding reorganization and special items, thanks to the hard work of the entire American team,” said Tom Horton, AMR’s chairman, president and CEO. “Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways. And we are especially pleased to set aside $59 million this quarter in expectation of making our first profit-sharing payout since 2001 to our people who have done so much to put American back on top.”

In the third quarter of 2013, GAAP net profit was $289 million, a $527 million improvement compared to the prior-year period. Excluding reorganization and special items, the third quarter 2013 net profit was $530 million. This is a $420 million improvement compared to the prior-year period. In the quarter, AMR had $241 million of reorganization and special items, which are detailed below.

Financial Progress

AMR continued to drive profitability and significant margin expansion in the third quarter, achieving a pre-tax margin of 7.8 percent, excluding reorganization and special items, an improvement of 6.1 points over the prior-year period, and a GAAP pre-tax margin of 4.2 percent, an improvement of 7.9 points compared to the third quarter of 2012.

On a trailing twelve month basis, the third quarter marked AMR’s seventh consecutive quarter of improved pre-tax margins. This margin expansion is driven by the realization of restructuring efforts to improve the operational and financial performance of the company, and AMR expects to realize additional improvements as the company continues to implement new terms reached with certain vendors and suppliers. AMR also expects results going forward to be bolstered as it competes more effectively by better matching aircraft size with demand through the continued deployment of the new Airbus A319 narrowbodies and the new two-class large regional jets, both of which started entering into service in the third quarter.

“As we continue to deliver substantial margin expansion and record results, we are positioning the company for long-term success,” said Bella Goren, AMR’s chief financial officer. “In addition, our financing activities have significantly enhanced our liquidity, and are enabling us to pay down high-interest debt and efficiently fund our impending emergence from the restructuring process.”

In the third quarter of 2013, AMR strengthened its liquidity and reduced its effective interest rates through several key transactions. AMR completed a private offering of $1.4 billion of enhanced equipment trust certificates with a coupon of 4.95 percent. The proceeds from this offering were used to pay off in full three prior aircraft financings with coupons of 8.625 percent, 10.375 percent, and 13 percent. The third quarter also marked the closing of an $850 million term loan, secured by American’s South American slots, gates, and routes, incremental to the $1.05 billion term loan secured by the same collateral that closed in the second quarter.

Revenue Performance

For the third quarter of 2013, AMR reported record consolidated revenue of approximately $6.8 billion, up 6.2 percent versus the same period last year. Consolidated passenger revenue was approximately $6.0 billion, an increase of 6.4 percent – and the highest quarterly passenger revenue in company history. Mainline and regional passenger revenue and cargo revenue each increased year-over-year as total operating revenue in the third quarter of 2013 was approximately $399 million higher than the third quarter of 2012.

“American’s solid revenue momentum continued in the third quarter, with especially strong performance at our domestic hubs, and in the Atlantic and Caribbean regions,” said Virasb Vahidi, American’s chief commercial officer. “We’re particularly pleased with our strength across the Atlantic, reflecting the success of our joint business with British Airways, Iberia and Finnair.

Through this partnership, we offer our customers more New York-London travel options than any other alliance, with 17 daily nonstop flights from New York area airports. This is yet another example of putting the customer at the center of everything we do.”

Consolidated passenger revenue per available seat mile (unit revenue) increased 3.4 percent versus the same quarter last year, to an all-time record for any quarter of 13.79 cents per available seat mile (ASM). Mainline unit revenue at American increased 4.0 percent versus the prior-year period, reaching an all-time record for any quarter of 13.11 cents per ASM.

The company’s unit revenue performance was driven by record passenger yield, or revenue per passenger mile, of 16.36 cents per mile, a 4.0 percent year-over-year improvement, and strong mainline and consolidated load factors, or percentage of seats filled, of 85.0 percent and 84.3 percent, respectively.

Operating Expense

For the third quarter, AMR’s consolidated operating expenses decreased $248 million, or 3.9 percent, versus the same period in 2012. Mainline and consolidated cost per available seat mile (unit cost) in the third quarter decreased 7.4 percent and 6.6 percent, respectively.

Excluding special items, AMR’s consolidated operating expenses decreased $52 million, or 0.8 percent, year-over-year.

Fuel expense in the third quarter increased $40 million year-over-year on a 2.9 percent increase in ASMs. Taking into account the impact of fuel hedging, AMR paid $3.04 per gallon for jet fuel in the third quarter of 2013 versus $3.12 per gallon in the third quarter of 2012, a 2.6 percent decrease.

Excluding fuel and special items, mainline and consolidated unit costs in the third quarter of 2013 decreased 5.4 percent and 5.0 percent year-over-year, respectively, primarily driven by the company’s restructuring efforts. This was the fourth consecutive quarter of non-fuel unit cost reduction.

In addition, AMR achieved an operating profit of $713 million and an operating margin of approximately 10.4 percent, an improvement of approximately $451 million and 6.3 points, respectively, over the prior-year period, excluding special items in both periods. On a GAAP basis, AMR realized an operating profit of $698 million and an operating margin of approximately 10.2 percent, an improvement of approximately $647 million and 9.4 points, respectively, over the prior-year period.

An unaudited summary of third quarter 2013 results, including reconciliations of non-GAAP to GAAP financial measures, is available in the tables at the back of this press release.

Cash Position

The company ended the third quarter with approximately $7.7 billion in cash and short-term investments, including a restricted cash balance of $935 million, compared to a balance of approximately $5.1 billion in cash and short-term investments, including a restricted cash balance of approximately $847 million, at the end of the third quarter of 2012. The increase was generated by operating activities and by financing initiatives in 2013.

Fleet Renewal and Transformation

In the third quarter, American made significant progress on its fleet renewal program, adding new, efficient and more comfortable aircraft.

The newest member of America’s fleet – the Airbus 319 – went into service in September, flying from Dallas/Fort Worth to Charlotte, Cleveland, Memphis and Wichita. These modern and fuel-efficient aircraft represent an important milestone in the company’s journey to transform the travel experience for its customers. American took delivery of ten A319s in the third quarter.
The company launched its first service with the 76-seat Embraer ERJ 175 operated by one of its affiliated regional carriers. This large regional aircraft in a two-class cabin configuration allows the company to better match supply and demand with the right amount of schedule frequency.
American also took delivery of eight Boeing 737-800s and one Boeing 777-300ER.

In the fourth quarter, American expects to take delivery of its first five Airbus A321 trans-con aircraft – specially configured with fully lie-flat First and Business Class seats. These aircraft are anticipated to enter service in January 2014.

Through the third quarter, American has taken delivery of 43 out of the 59 new mainline aircraft slated for delivery in 2013, including seven Boeing 777-300 ERs.

Pending Merger with US Airways Group

In the third quarter, American and US Airways Group continued preparing for their planned merger announced on Feb. 14, 2013.
On Aug. 13, the Antitrust Division of the Department of Justice (DOJ) and certain states filed a lawsuit to enjoin the merger.
American and US Airways Group are vigorously defending the lawsuit. The trial is scheduled to begin Nov. 25. The company is confident that the merger would provide significant customer benefits and enhance competition in the airline industry.
On Oct. 1, American and US Airways Group announced they reached an agreement with the Texas Attorney General to support the proposed merger of American and US Airways Group.
American and US Airways Group continue to move forward with developing a merger integration plan designed to ensure a positive outcome for their customers, employees and stakeholders.

The merger is conditioned on the satisfactory resolution of the pending antitrust litigation with the DOJ and other customary closing conditions.

Operational Performance

American ran a solid operation during the busy summer travel season, achieving an on-time arrival rate of 79.5 percent, its best third quarter performance since 2010. American’s improved operational results for the quarter also include a completion factor of 99.0 percent, its best since 2010.

Recent Business Highlights

American has a strong commitment to its customers, its people, and the communities it serves. Recent American highlights include:

Launching new codeshare agreements with Bogota-based LAN Colombia and Sao Paulo-based TAM Airlines, which will add new service to key destinations and increase American’s network connectivity in the Latin American region, further strengthening American’s relationship with LATAM Airlines Group
Strengthening its global presence to best meet customer demand by announcing that American will launch its first-ever nonstop service from Dallas/Fort Worth International Airport (DFW) to Hong Kong International Airport (HKG) and Shanghai Pudong International Airport (PVG) next year
Opening its Flagship Check-In for premium customers at Chicago’s O’Hare airport, making it American’s fourth airport to offer this enhanced customer experience
Announcing plans to hire 1,500 new pilots over the next five years. The company has offered to recall all of its furloughed pilots and will begin the new recruiting later this fall. This is in addition to the hiring and training underway for 1,500 new flight attendants and the more than 1,200 Premium Services Representatives, Airport Agents and Reservations Agents who have joined the American team this year

Restructuring Progress

On Sept.12, the U.S. Bankruptcy Court for the Southern District of New York stated that it would enter an order confirming American’s Plan of Reorganization (the Plan). The next steps the company seeks to take are to achieve antitrust clearance and consummate the Plan and the company’s pending merger with US Airways Group.

The effective date of the Plan and American’s emergence from restructuring are expected to occur simultaneously with the closing of the merger with US Airways Group.

Reorganization and Special Items

AMR’s third quarter 2013 results include the impact of $241 million in reorganization and special items.

Of that amount, AMR recognized a $151 million loss in reorganization items resulting from the filing of voluntary petitions for reorganization under Chapter 11 by certain of its direct and indirect U.S. subsidiaries on Nov. 29, 2011. These items primarily consist of professional fees, as well as allowed and estimated allowed claim amounts.
In conjunction with the repayment of the existing financings, the company incurred cash charges of $19 million, included in interest expense, and a charge of $54 million, included in Miscellaneous, net, related to the premium on tender for the existing financings and to the write-off of unamortized issuance costs.
The company’s results for the third quarter also include special charges and merger-related expenses of $15 million.

Capacity Guidance

AMR estimates consolidated capacity in the fourth quarter of 2013 to be up approximately 3.5 percent versus the fourth quarter of 2012, primarily driven by the combination of an estimated 1.5 percent year-over-year increase in the average stage length per operation flown, and by new or increased capacity into South Korea, Mexico and Central and South America.

For the full year 2013, consolidated capacity is estimated to increase approximately 1.5 percent versus the prior year.

American Airlines: