Tag Archives: American Airlines Group

US Airways puts its first American branded Airbus A330 into revenue service

US Airways (American Airlines Group) (Phoenix and Dallas/Fort Worth) has painted its first Airbus A330 in the American Airlines‘ 2013 livery. Airbus A330-323 N270AY (msn 315) was painted at Amarillo, Texas and was delivered to the Philadelphia hub on September 18, 2014. The first revenue service was from Philadelphia (PHL) to London (Heathrow) on September 19 followed by Venice on September 20.

The aircraft operated to Dublin, Ireland on September 21 arriving the next day. Today N270AY is pictured departing from Dublin for the return journey back to Philadelphia.

US Airways next will repaint the PSA heritage Airbus A319 with American titles.

American Airlines-US Airways:

American Airlines (current):

US Airways:

American Airlines and the Association of Professsional Flight Attendants reach a tentative agreement on a new contract

American Airlines (Dallas/Fort Worth) and the Association of Professional Flight Attendants (APFA) have reached a tentative agreement on a new joint collective bargaining agreement covering more than 24,000 flight attendants.

“We are building an airline that will compete aggressively in a global marketplace. Today’s tentative agreement with our flight attendants is another step forward in our integration,” said Doug Parker, chairman and CEO of American Airlines. “We thank the APFA and the union negotiation team for their leadership and professionalism in representing their 24,000 members. Jim Mackenzie of the National Mediation Board also played a key role and we are grateful for his leadership.”

APFA will be communicating details of the tentative agreement directly to their membership, which will then go to the combined flight attendant membership for a ratification vote.

Copyright Photo: SPA/AirlinersGallery.com. Boeing 777-223 ER N753AN (msn 30261) climbs gracefully away from London’s Heathrow Airport (LHR).

American Airlines (current):

American Airlines and US Airways to combine cargo operations on October 20

American Airlines Group (American Airlines and US Airways) (Dallas/Fort Worth) are merging its cargo operations on October 20. The Group has issued this letter to its cargo customers:

Dear Cargo Customer

Nine months ago, the merger between American Airlines and US Airways became official. Since then, we have dedicated ourselves to restoring American as the greatest airline in the world. The cargo team has been working hard to plan for a seamless transition and I thank you for your patience and loyalty during this time.

The objective of our integration has been to bring together the expertise, solutions, and teams you’ve relied on from both cargo organizations into the industry’s most customer-focused airfreight partner. I am proud to share with you that on Monday, October 20, 2014, we will take the largest step toward this goal by becoming one cargo organization and transitioning to a single air waybill using the American Airlines prefix 001.

While you will be seeing more information over the next few weeks, I’d like to share the following important details now:

We will transition to accepting a single air waybill (001) for all new shipments originating on or after October 20.

All American Airlines and US Airways booking channels will still be available to you, including our customer contact centers and aacargo.com, and will allow you to book 001 air waybills across both networks for flights on October 20th and beyond.

For shipments originating between now and October 19, please continue to use US Airways (037) and American Airlines (001) air waybills when booking, tendering, and recovering shipments with each respective airline.

The combination of our networks is only the beginning of many exciting changes built around your needs. With initiatives like e-freight, a new state-of-the-art pharmaceutical facility in Philadelphia, and 70 new widebody and hundreds of narrowbody aircraft on the way, we are modernizing the cargo business with you in mind.

Our most important goal is to ensure a smooth experience for you and your extended team. In the coming weeks, you will receive more details about what this transition means and how you can best take advantage of the benefits. You can also find the latest updates any time on aacargo.com.

Thank you again for your business and we look forward to partnering with you as one cargo team very soon.

Sincerely

Jim W. Butler
President, American Airlines Cargo

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A319-112 N700UW (msn 885) of US Airways operating in American colors arrives in Washington at Reagan National Airport (DCA).

American Airlines (current):

American Airlines-US Airways:

US Airways:

American Airlines Group to transfer all 47 Bombardier CRJ700s from Envoy Air to PSA Airlines

American Airlines Group (Dallas/Fort Worth) has decided to transfer all 47 Bombardier CRJ700s (and the associated flying) from subsidiary Envoy Air (formerly American Eagle Airlines) (Dallas/Fort Worth) to subsidiary PSA Airlines (2nd) (Dayton). This will leave Envoy Air as an Embraer ERJ operator. AAG is likely to continue phasing out its smaller regional jets. The pilots of Envoy Air and the AAG failed to agreed on a new contract. Will Envoy Air follow the same path as Delta’s Comair?

Bill Sprague, representing the Envoy Air pilots, issued this statement to its member pilots:

The MEC is outraged by this announcement by AAG that all 47 of our CRJ700 aircraft will be transferred to PSA. This action obviously and significantly punishes Envoy pilots for refusing to accept the additional concessions demanded by the company in exchange for larger aircraft. We are not aware of any plans to bring additional aircraft to Envoy. Therefore the company’s recent commitment to keep 200 aircraft on the property for the foreseeable future is no more credible than their promise to re-fleet Envoy as part of the bankruptcy contract.

We are evaluating the details related to the transfer of these aircraft to PSA. This action will eliminate the highest levels of compensation available under our contract.

Once again, we find ourselves wondering what the future holds for our carrier. The company has already announced their intention to park the remaining Embraer 140s. Barring any additional aircraft, we will only be operating a fleet of 118 Embraer 145s. This would require roughly 48% fewer pilots than are active on our seniority list today. We will provide you the company’s draw down schedule when they provide it to us.

The company has indicated that moving these aircraft to PSA is necessary to more efficiently focus operations on a single aircraft type. In reality, management’s decision clearly exploits the lower costs afforded by the 10 year agreement ratified last fall by our colleagues at PSA.

We understand this is a very stressful time for all of us. Many of you have inquired about the status of our previously advertised career progression resources. The MEC will receive a briefing next Tuesday, the 9th, from ALPA National regarding the rollout of these resources, and details will be communicated as we get them.

Bill Sprague
MEC Chairman

Copyright Photo: Ken Petersen/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N543EA (msn 10323) departs from the runway at New York’s LaGuardia Airport (LGA).

American Eagle-Envoy Air:

Envoy Air’s pilots fail to reach an agreement with the American Airlines Group

Envoy Air’s (American Eagle) (Dallas/Fort Worth) pilots, represented by the Air Line Pilots Association (ALPA), failed to reach a new agreement with the American Airlines Group (Dallas/Fort Worth) for a new contract. The group had approached the union about reopening discussions on a new contract. Discussions broke down on August 21. According to the union in a message to its members by Bill Sprague, “The effort began with informal discussions to identify and attempt to resolve the areas of the failed TA that were unacceptable to our group. We focused on finding solutions to guarantee that the company would re-fleet our carrier while respecting the value we provide as professionals. Identifying the core issues was easy. Finding mutually acceptable solutions was extremely difficult. The MEC met three times and spent countless hours on conference calls to eventually arrive at a proposal that satisfied those requirements.

On Wednesday, company executives rejected that proposal. Their stated intent is to continue seeking lower feed costs at other Fee for Departure carriers, as they did with Compass.”

The union chairman continued, “The state of our current daily operation shows an inability to attract a sufficient number of recruits, but it also shows that many Envoy pilots are moving onwards and upwards in their aviation careers. In their efforts to operate an airline of our size while lacking the necessary tools to safely do so, the company has found many ways to violate the current collective bargaining agreement. The MEC and leadership are dedicated to protecting and defending the contract. Our contract remains in place. We will enforce it and continue to pursue every opportunity to improve it.

The pilots of Envoy have made it clear: now is time to make this airline an attractive place to work and that responsibility falls squarely on the shoulders of upper management. This action is essential to ensure the long-term success of our company.”

Envoy Air currently operates more than the 220 aircraft on about 1,300 daily flights to more than 170 destinations in the U.S., Canada, Mexico and the Caribbean. The company’s more than 14,000 employees provide regional flight service to American Airlines under the American Eagle brand and livery as well as ground handling services for approximately 15 airlines, including American.

Envoy Air is headquartered in North Texas with hubs in New York, Chicago, Miami, Dallas/Fort Worth and Los Angeles. The company was founded in 1998 as American Eagle Airlines, Inc. following the merger of several smaller regional carriers to create one the largest regional airlines in the world. On April 15, 2014 the company changed its name to Envoy Air to distinguish the company for the American Eagle brand, under which several carriers operate regional flight service for American.

American Airlines Group is likely to continue to assign new aircraft to other American Eagle carriers as Envoy Air reduces in size unless the two parties resolve their differences.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Embraer ERJ 145LR (EMB-145LR) N668HH (msn 145785) prepares to touch down at Baltimore/Washington (BWI).

American Eagle-Envoy:

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 AAdvantage® and US Airways Dividend Miles® 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).

American Airlines (current):

US Airways:

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 NFL “Arizona Cardinals” livery arrives at Baltimore/Washington.

US Airways:

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:

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.

US Airways:

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:

Current Route Map for PSA Airlines:

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.

US Airways: