Tag Archives: American Airlines Group

Allied Pilots Association union agrees to put the latest AAG contract offer to a ratification vote

Allied Pilots Association-APA (Dallas/Fort Worth), representing the 10,000 pilots of American Airlines (Dallas/Fort Worth) and 5,000 pilots US Airways (Phoenix), agreed late Saturday (January 3) to put the latest offer from the American Airlines Group (Dallas/Fort Worth) to a ratification vote. The AAG was threatening to pull the offer. The AAG is not offering a profit sharing program unlike the pilots at Delta.

According to the Wall Street Journal (WSJ), “the company is offering the pilots a more than 18% pay increase retroactive to December 2, 2014 plus a 4% boost that it announced late last month for most nonunion employees and any unions that reach joint postmerger contracts. Moreover, the pilots are in line to receive an additional 3% raise retroactive to the start of 2015, the first of four annual pay increases.”

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. American Airlines Boeing 737-823 N831NN (msn 33211) taxies at the O’Hare International Airport hub in Chicago.

American Airlines aircraft slide show (current livery):

American Airlines rewards its loyal passenger with a bonus mileage promotion in 2015

American Airlines (Dallas/Fort Worth) is rewarding its loyal passengers with this bonus mileage announcement for 2015:

American Airlines will reward its customers with a bonus mile promotion in 2015, making the AAdvantage program the most generous in the industry. The promotion will offer AAdvantage® and Dividend Miles® members more miles based on the distance flown, the fare purchased and the member’s elite status level.

Beginning January 1, 2015 American will reward customers that are members of either the AAdvantage or Dividend Miles programs with bonus miles for purchased First or Business Class tickets on all eligible flights marketed or operated by American or US Airways. The promotion applies to all travel between January 1 and December 31, 2015.

Eligible flights for AAdvantage members include all AA and US-marketed and operated flights (including codeshare flights between the two carriers), and AA or US-marketed, partner-operated flights, including British Airways, Iberia, Finnair, Japan Airlines and Qantas. Until the company merges the frequent flyer programs in the second quarter 2015, eligible flights for Dividend Miles members will include all AA and US-marketed and operated flights (including codeshare flights between the two carriers).

The airline’s promotion provides bonus miles in addition to base mileage and elite status/class of service bonuses that customers normally earn. The amount of bonus miles earned will depend on the customer’s elite status level and the length of the flight.

Copyright Photo: Fred Freketic/AirlinersGallery.com. Boeing 767-323 ER N394AN (msn 29431) prepares to depart from John F. Kennedy International Airport in New York.

American Airlines aircraft slide show (current livery):

American to add Gogo inflight wireless services to all two-class regional jets

American Airlines Group (Dallas/Fort Worth) has announced as a part of its $2 billion investment to give customers a world-class travel experience, American Airlines will upgrade its regional fleet by adding Gogo inflight wireless services to all two-class regional jets. Nearly 250 of American’s regional aircraft will have inflight wireless Internet service installed by 2016. With this installation, the world’s largest airline will have the largest fleet of connected regional jets.

American currently has nearly 850 aircraft with Gogo services and leverages Gogo’s air-to-ground (ATG) service and its next generation ATG-4 technology. Approximately 70 of these 850 aircraft are two-class regional jets.

Having ordered more than 500 new aircraft – with nearly two planes arriving each week through 2016 – American will offer customers the youngest fleet of any U.S.-based network carrier. New aircraft deliveries include 90 large regional jets, the Embraer 175 and Bombardier CRJ900. These modern and fuel-efficient 76-seat jets provide customers with a top-tier regional product with First Class, Main Cabin Extra and Main Cabin seating, larger overhead bins, more spacious lavatories and leather seats with adjustable headrests.

The American Eagle and US Airways Express regional networks operate about 2,600 daily flights for American Airlines and US Airways, respectively. These flights serve 240 destinations throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. Eventually all regional service will be operated under the American Eagle brand and livery.

American marked the one-year anniversary of its merger earlier this week by announcing more than $2 billion in investments to give its customers a world-class travel experience. These investments include expanding inflight entertainment and connectivity. The airline is adding satellite-based Internet access to its international fleet including all Boeing 777s and 787s, Airbus A330s, and retrofitted Boeing 767-300s and 757s. New 737s, nearly all new A321s, as well as retrofitted A319s also will have power ports in every row. All new widebody deliveries, including 777-300 ERs and 787s, come with power at every seat, allowing customers to charge their laptops and personal electronic devices from gate to gate. American also will be investing in fully lie-flat seats, more inflight entertainment options, a new, modern design for Admirals Club lounges worldwide, and an upgraded assortment of complimentary healthy food, cocktails and more.

Copyright Photo: Jay Selman/AirlinersGallery.com. Republic Airlines’ (2nd) Embraer ERJ 170-200LR (ERJ 175) N137HQ (msn 17000231) arrives at the Charlotte hub.

American Airlines aircraft slide show (current livery):

American Eagle-Republic aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Eagle-2nd-Republic-Ai

Envoy Air pilots are now at a critical decision point

Envoy Air (formerly American Eagle Airlines) (Dallas/Fort Worth) is at a critical point in its history. The subsidiary of the American Airlines Group (AAG) has been shrinking as the pilots of Envoy Air continue their often tense negotiations with AAG management. The AAG has been reassigning Envoy aircraft as the Envoy pilot base shrinks.

Now the Envoy MEC, representing the pilots of Envoy, has reached another tentative agreement (TA) with AAG management. This TA will now go to the pilots for their vote. It is likely to be the final vote on a new contract. Sam Pool, Envoy MEC Chairman, has sent this message to the Envoy pilots:

December 7, 2014

Fellow Envoy Pilots,

The Envoy MEC reconvened early this morning in Washington, DC to consider a final proposal from company representatives. After another full day of intense negotiations and discussions, late tonight the MEC approved a tentative agreement (TA), endorsing and supporting its ratification by the membership. The MEC believes this TA is the best obtainable agreement, and provides the best path forward for Envoy pilots given our circumstances.

To say this has been a difficult process is an understatement. All quadrants of our diverse pilot group will be affected by some factors of this agreement, and our reps have not taken this decision lightly. It has been one year since this process began, and to this end, our negotiators, officers and the entire ALPA leadership have ensured that they have achieved as much as possible in return for the re-fleeting of our airline.

We’ve reached a point where the final decision rests with you, and a ratification vote will be conducted in the near future. The MEC is planning roadshows beginning this week, and will conduct several all pilot conference calls. We will provide you a list of specific times and locations for all roadshows and pilot conference calls in a future email.

Thank you for your continued professionalism and support.

In Unity
Sam Pool
Envoy MEC Chairman

Copyright Photo: Ton Jochems/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N534AE (msn 10312) of Envoy Air awaits its next assignment from the Chicago O’Hare Airport hub.

American Eagle-Envoy Air aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Eagle-Envoy

American Airlines Group to move 50 Envoy Air Embraer ERJ 145s to other American Eagle carriers

American Airlines Group (Dallas/Fort Worth) has informed subsidiary Envoy Air (formerly American Eagle Airlines) (Dallas/Fort Worth) that will it transfer 50 Embraer ERJ 145s to Piedmont Airlines (2nd) (Salisbury, MD) and Trans States Airlines (30 aircraft) (St. Louis) starting March 2015. One other carrier that has not been specified will also receive Envoy aircraft. The number of pilots at Envoy has been declining. The pilots of Envoy did not accept the last contract offer from the AAG.

Yesterday Sam Pool, Envoy MEC Chairman, sent the following message to the pilots of Envoy:

November 21, 2014

My Fellow Envoy Pilots –

Today management announced the long-anticipated news that AAG is moving aircraft from Envoy to other carriers. Starting in March 2015, 30 of our Embraer 145 series aircraft will transfer to Trans State Airlines and another express carrier at the rate of 2 aircraft per carrier per month. In 2016, another tranche of aircraft will transfer to Piedmont.

While we are clearly disappointed at the thought of losing four aircraft per month, and the 10 pilot jobs each aircraft represents, the harsh fact is that Envoy is currently losing pilots at an even faster rate as our colleagues seek more rewarding careers elsewhere.

We are beyond disappointed that the sacrifice of economic and operational flexibility that this workgroup provided to our parent corporation during the darkest hours of bankruptcy are now considered insufficient and we again find ourselves facing the demands of concessions in exchange for a viable future.

That said, our disappointment should not cloud the reality that we face today. Our reality is that other pilot groups in our segment of the industry have demonstrated their willingness to accept concessions in exchange for new and larger aircraft, and have subsequently agreed to reduce the pilot costs. If we wish to compete in this market, we simply have no choice but to recognize that reality and decide a course of action.

While it is true that AAG is honoring our bankruptcy contract, the unpleasant fact is that they believe that they can obtain lower cost regional flying from other carriers, and have demonstrated that they will award new aircraft and new flying to those other carriers, leaving our contract and our pilots in an awkward status quo.

AAG’s senior management has made it clear that they desire the new aircraft be flown by the pilots of Envoy. And they have also made it clear that they believe we should cost less. For these reasons, they have remained quietly engaged with your MEC in an attempt to effectuate a mutually acceptable agreement that gently nudges our forward looking economics closer to the perceived market in exchange for the enhanced career security sought by our workgroup.

The entire MEC remains committed to working with the company to find an agreement that satisfies the needs of both parties, and which we can endorse as the best path forward. We believe that such an agreement is within reach.

Thank you for your professionalism and patience, and as always don’t hesitate to contact your representatives.

Copyright Photo: Brian McDonough/Airlinersgallery.com. Embraer ERJ 145LR (EMB-145LR) N928AE (msn 14500911) operated by Envoy Air arrives in Baltimore/Washington.

American Eagle-Envoy Air:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-1/Airlines-UnitedStates-1/American-Eagle-Envoy

American Airlines Group’s flight attendants reject the latest contract offer

American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) (American Airlines) flight attendants have rejected the latest tentative contract offer by a slim 16 vote margin – 8,196 against the proposal and 8,180 for the new contract. The flight attendants are represented by the Association of Professional Flight Attendants.

Read the full report by CBS News: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. US Airways’ Boeing 757-2B7 N939UW (msn 27303) now in full American colors taxies at the Charlotte hub.

American Airlines (current livery) aircraft slide show:

American Airlines-US Airways aircraft slide show:

American Airlines Group reports a record third quarter net profit of $1.2 billion

American Airlines Group Inc. (American Airlines and US Airways) (Dallas/Fort Worth) today reported its third quarter 2014 results.

Third quarter 2014 net profit, excluding net special charges, was a record $1.2 billion, up 59 percent versus the third quarter 2013

Third quarter 2014 GAAP net profit was $942 million, a record for any quarter in the history of American Airlines

Returned $185 million to shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock through the Company’s stock repurchase program

Declared a dividend of $0.10 per share to be paid on November 17, 2014 to shareholders of record as of November 3, 2014

For the third quarter 2014, American Airlines Group reported a record GAAP net profit of $942 million. This compares to a GAAP net profit of $289 million in the third 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, third quarter 2014 net profit excluding net special charges was a record $1.2 billion, or $1.66 per diluted share. This represents a 59 percent improvement over the combined non-GAAP net profit of $771 million excluding net special charges for the same period in 2013. The Company’s third quarter 2014 pretax margin excluding net special charges was 11 percent. 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 have reported a record profit for each quarter so far in 2014,” said Chairman and CEO Doug Parker. “We anticipate we will also post a record profit for both the fourth quarter and full year 2014. This performance reflects the strength of our merger and the commitment of our team. Our over 100,000 team members are doing an excellent job of integrating our airlines and providing outstanding service to our customers. While some of the biggest tasks in our integration still lie before us, the significant accomplishments to date reinforce our confidence that we are well on our way to restoring American as the world’s greatest airline. Thanks to our team, American is in excellent position for success in 2015 and beyond.”

Revenue and Cost Comparisons

Total revenues in the third quarter were a record $11.1 billion, an increase of 4.4 percent versus the third quarter 2013 on a combined basis, on a 2.0 percent increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was a record at 14.12 cents, up 1.0 percent versus the third quarter 2013 on a combined basis, driven by a record yield of 16.93 cents, up 2.6 percent year-over-year.

Total operating expenses in the third quarter were $9.9 billion, an increase of 3.5 percent over combined third quarter 2013. Third quarter mainline cost per available seat mile (CASM) was 13.28 cents, up 1.3 percent on a 2.1 percent increase in mainline ASMs versus combined third quarter 2013. Excluding special charges and fuel, mainline CASM was up 0.7 percent compared to the combined third quarter 2013, at 8.35 cents. Regional CASM excluding special charges and fuel was 15.52 cents, up 3.7 percent on a 1.0 percent increase in regional ASMs versus combined third quarter 2013.

Liquidity and Financing Transactions

At September 30, 2014, American had approximately $8.8 billion in total cash and short-term investments, of which $875 million was restricted. The Company also had an undrawn revolving credit facility of $1.0 billion.

During the third quarter, the Company Issued $957 million principal amount of 2014-1 Enhanced Equipment Trust Certificates (EETC) at a blended interest rate of 3.8 percent and issued $750 million principal amount of 5.5 percent senior unsecured notes due in 2019.

Also in the third quarter, the Company returned $185 million to its shareholders through the payment of $72 million in quarterly dividends and the repurchase of $113 million of common stock, or 2.9 million shares. The Company also purchased approximately 432,000 shares from its Disputed Claims Reserve at the prevailing market price to satisfy certain tax obligations resulting from the July 1, 2014, distribution.

As of September 30, 2014, $721 million of the Company’s unrestricted cash balance was held in Venezuelan bolivars, valued at the weighted average applicable exchange rate of 6.41 bolivars to the dollar. The Company’s cash balance held in Venezuelan bolivars decreased $70 million from the June 30, 2014, balance of $791 million, due primarily to $48 million in repatriations in the third quarter of 2014 ($31 million valued at 6.3 bolivars to the dollar and $17 million valued at 10.6 bolivars to the dollar). This balance also reflects the Company’s significant reduction in capacity in this market, pending further repatriation of funds and due to a decrease in demand for air travel resulting from the effective devaluation of the bolivar. The Company continues to work with Venezuelan authorities regarding the timing and exchange rate applicable to the repatriation of funds held in local currency. The Company is monitoring this situation closely and continues to evaluate its holdings of Venezuelan bolivars for potential impairment.

In early October, the Company arranged a new credit facility consisting of a fully-drawn $750 million term loan that matures in October 2021 and an undrawn $400 million revolving credit facility that matures in October 2019. Collateral for the new credit facility consists of certain slots, gates and route authorities. Also in early October, the Company increased its existing $1 billion revolving credit facility by $400 million and extended its maturity date from June 2018 to October 2019. As a result of these transactions, the Company’s undrawn revolving credit facility is now $1.8 billion.

On October 22, the Company’s Board of Directors declared a dividend of $0.10 per share for shareholders of record as of November 3, 2014. The dividend will be paid on November 17, 2014.

Merger Integration Developments

Reached a tentative agreement with the Association of Professional Flight Attendants on a joint collective bargaining agreement covering more than 24,000 flight attendants at American and US Airways. This agreement is pending ratification by the flight attendants

Recalibrated the schedule at our Miami hub to increase the number of available connections and optimize revenue

Combined operations at 82 airports since the merger, including the Company’s hub at Chicago O’Hare

Broke ground on our new state of the art Robert W. Baker Integrated Operations Center in Fort Worth, with completion planned for the third quarter of 2015

American flight attendants began exclusively using an electronic flight attendant manual on a handheld tablet, making the documents easier to access for flight attendants and reducing weight on each aircraft. US Airways flight attendants will begin using eManuals after the two carriers achieve a single operating certificate next year

Rebranded nine Admirals Club® lounges at eight airports, including Ronald Reagan Washington National Airport, Boston Logan Airport, Pittsburgh International Airport, and Tampa International Airport

Fleet and Network Developments

As part of its plan to modernize its fleet, the Company took delivery of 22 new mainline aircraft during the third quarter

US Airways became fully integrated in the trans-Atlantic joint business by launching a codeshare agreement with Finnair, providing customers increased access to Helsinki and beyond

Applied for new international service between Dallas/Fort Worth and Beijing. This will be the Company’s 11th route between the U.S. and Asia

Special Items

In the third quarter, the Company recognized a total of $281 million in net special charges, including:

$223 million net special operating charges, which principally included $168 million of mainline and regional merger integration expenses and an $81 million charge to revise prior estimates of certain aircraft residual values. These charges were offset, in part, by a net $40 million credit for bankruptcy related items consisting of fair value adjustments for bankruptcy settlement obligations
$50 million of nonoperating items, primarily due to early debt extinguishment costs related to American’s 7.5 percent senior secured notes and other debt
$8 million in non-cash deferred income tax provision related to certain indefinite-lived intangible assets

Copyright Photo: Jay Selman/AirlinersGallery.com. US Airways is now repainting its fleet, including the older Boeing 757-200s. Boeing 757-23N N203UW (msn 30548) taxies at the Charlotte hub.

American Airlines (current livery):

US Airways:

American Airlines-US Airways:

Envoy Air’s Embraer ERJ 145 operations continue to shrink, the Miami pilot and FA base to be phased down by April 2015

Envoy Air (formerly American Eagle Airlines 2nd) (part of American Airlines Group) (Dallas/Fort Worth) continues to shrink its Embraer ERJ 145 operations as its parent continues to replace its flying with larger aircraft from other associated AE carriers..

Pedro Fábregas, President and CEO of Envoy, has informed its employees that the parent American Airlines Group has decided to phase down and finally close the Miami pilot and flight attendant base in April 2015.

According to the memo, with the December 18 schedule, Envoy will operate 37 daily departures from Miami International Airport (MIA), using 12 50-seat Embraer ERJ 145 (EMB-145) regional jets. This is a big drop off from the 60 flights operated at the hub on October 1, 2014 with its 23 ERJs. The ERJ 145 aircraft and crews that will no longer be needed in MIA will be assigned to replace Envoy operations in other locations for the planned retirement of the 44-seat ERJ 140 (EMB-140) aircraft.

No Envoy pilots or flight attendants will be furloughed as a result of the schedule change.

Envoy is phasing out its pilot and flight attendant base in MIA. This will begin in January 2015 and will be completed by April 2015.

Republic Airlines will replace the smaller Envoy ERJ 145s with its newer and larger Embraer ERJ 175s.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Envoy Air’s Embraer ERJ 145LR (EMB-145LR) N697AB (msn 14500875) taxies to the runway at the Chicago O’Hare hub.

American Eagle-Envoy Air:

American Airlines launches its month-long “Be Pink” campaign to raise funds for breast cancer research

American Airlines Group (Dallas/Fort Worth) will launch its annual “Be Pink” campaign, a month-long, employee-led initiative to raise funds for breast cancer research and awareness. This year’s Be Pink campaign marks the first time the combined company has joined forces for the cause. Throughout the month of October, more than 100,000 American Airlines (Dallas/Fort Worth) and US Airways (Phoenix and Dallas/Fort Worth) team members will don pink uniform items, serve customers with Be Pink-branded items and lace up their tennis shoes for local walks and events to support the fight against cancer.

Customers will have the opportunity to join the company’s Be Pink efforts with special offers to promote awareness and action against breast cancer, which accounts for one in eight of newly diagnosed cancers among women. During the month of October a minimum $25 donation to American’s Miles for the Cure® program will earn AAdvantage® members 20 bonus miles, instead of 10, for each dollar contributed. Donations can be made at aa.com/BePink.

When customers travel on American during October, they will see pink from the time they book tickets on aa.com, to when they pick up their baggage at their final destination. Employees will be sporting Be Pink uniform items and many of them will be part of awareness teams to raise funds through their participation in local American Cancer Society Making Strides Against Breast Cancer walks and Susan G. Komen Race for the Cure events. The company’s websites, in-flight American Way magazine, napkins, in-flight menus, cabin messages, complimentary in-flight lemonade and even some boarding passes will “go pink” to serve as symbols of American employees’ determination to find a cure for breast cancer.

American has supported the fight against breast cancer for more than 30 years and is the Official Airline of Susan G. Komen for the Cure®. In 2013, American and US Airways raised more than half a million dollars to support the cause through the generosity of employees, customers and corporate contributions. Visit American’s Join Us In Causes That Matter page on aa.com to learn more about how you can join the company’s efforts to create a world without breast cancer.

Miles for the Cure® and Susan G. Komen for the Cure® are registered trademarks of Susan G. Komen.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-223 ER N759AN (msn 32638) with the special “Susan G. Komen” pink ribbon markings departs from Los Angeles in the now old 1968 livery.

American Airlines (current):

American Airlines (historic):

US Airways:

American Airlines Group pays renewed homage to the original Pacific Southwest Airlines

American Airlines Group (American Airlines and US Airways) (Dallas/Fort Worth) has repainted the pictured US Airways Airbus A319-112 N742PS (msn 1275) now with American titles. The Group is proud of its heritage logo jets and is also proud to remember its honored past. The group intends to have additional heritage jets (including TWA) for most of its heritage airlines that are now in the new and expanded American Airlines family tree (below).

The original Pacific Southwest Airlines-PSA (San Diego) operated from 1949 to 1988.

In other news, the continued negotiations for a combined pilot seniority list continues for the new American Airlines with some calling for America West pilots to be included in the negotiations.

This article by Ted Reed in Forbes details the on-going negotiations for a fair seniority list. Read the article: CLICK HERE

Copyright Photo: Jay Selman/AirlinersGallery.com. Airbus A319-112 N742PS (msn 1275) in the 1977 livery of PSA and now with American titles departs from the Charlotte hub.

American Airlines-US Airways:

American Airlines:

US Airways:

Pacific Southwest Airlines-PSA (1st):

Photos of the original PSA via YouTube: