Tag Archives: Baltimore/Washington

AMR Corporation files its exit plan with the bankruptcy court

AMR Corporation (Dallas/Fort Worth), the parent of American Airlines (Dallas/Fort Worth) and American Eagle Airlines (Dallas/Fort Worth), yesterday filed its reorganization plan to exit its Chapter 11 reorganization with the bankruptcy court in New York. This is a necessary step towards a merger with US Airways (Phoenix). Under the plan, outgoing CEO Tom Horton would receive a $19.9 million severance plan. This amount was previously rejected by the bankruptcy judge Sean Lane.

The merger is expected to be closed in the third quarter. However there are many merger issues that are still unresolved.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Tony Storck. Boeing 737-823 WL N803NN (msn 29566) of the “new American” arrives at Baltimore/Washington (Thurgood Marshall).

American Airlines:

Southwest Airlines launches Pittsburgh-Houston Hobby flights, arrives in San Juan

Southwest Airlines (Dallas) has launched a new route from Pittsburgh International Airport (PIT) to William P. Hobby Airport (HOU) in Houston.

The PIT-HOU schedule will include one flight daily. Monday through Friday, it will depart PIT at 11:50 a.m., arriving HOU at 2:00. p.m. Saturdays it will depart PIT at 9:15 a.m. and on Sunday depart PIT at 12:00 p.m. Returning from HOU to PIT: Sunday through Friday, the flight will depart HOU at 1:35 p.m. and arrive at PIT 5:35 p.m. Saturday, it departs HOU at 10:35 a.m. and arrives at PIT 2:29 p.m.

Southwest launched inaugural service to five cities on Sunday, April 14, 2013—the most cities the airline has ever opened in one day. Southwest, America’s largest airline in terms of originating domestic passengers boarded, is expanding its footprint as part of the ongoing integration of its wholly-owned subsidiary, AirTran Airways.

As of April 14, 2013, Southwest Airlines Offers New Nonstop Service between:

Charlotte and Baltimore/Washington, Chicago (Midway), Houston (Hobby), and Orlando
Flint and Baltimore/Washington, Orlando, and Tampa Bay
Portland, Maine and Baltimore/Washington
Rochester and Baltimore/Washington, Chicago (Midway), Orlando, and Tampa Bay
San Juan and Orlando and Tampa Bay.

AirTran ceased service in Charlotte, Flint, Portland (Maine), and Rochester on April 13, 2013. AirTran will continue to offer service between San Juan and Baltimore/Washington, Fort Lauderdale/Hollywood, and Atlanta. Southwest previously announced that the carrier will assume AirTran’s San Juan service to Fort Lauderdale/Hollywood on Sept. 29, 2013.

Video: Southwest finally arrives in San Juan:

Copyright Photo: Tony Storck. Boeing 737-7H4 WL N713SW (msn 27847) in the SeaWorld Adventure Park-Shamu special livery arrives at Baltimore/Washington (BWI).

Southwest Airlines:

Delta to upgrade MD-88 and MD-90 fleet with enhanced navigation and flight management systems

Delta Air Lines (Atlanta) will outfit its fleet of 182 MD-88 and MD-90 aircraft as well as several flight simulators with standardized, state-of-the-art glass cockpits and GPS navigation that will improve efficiency, reduce environmental impact and position the airline to take advantage of procedural improvements outlined in the Federal Aviation Administration’s (FAA) Next Generation Air Transportation System.

The enhanced avionics suite, developed by Innovative Solutions & Support, Inc. (ISSC), will allow the aircraft to fly shorter flight paths and take advantage of continuous-descent, Required Navigation Performance (RNAV) approaches to reduce fuel consumption, carbon emissions and noise levels — a primary objective of NextGen. The addition of GPS capabilities as well as the incorporation of Data Link and ADS-B will allow pilots to fly safer as the three systems aid flight crews in identifying nearby air traffic, weather and terrain on flat panel displays in the cockpit.

Due to the lighter weight of the new equipment, Delta will see an immediate improvement in fuel economy while long-lasting benefits from the new flight decks include reductions in CO₂ emissions by 80 million pounds annually and a 50 percent decrease in the aircraft noise footprint once NextGen procedures are fully implemented. The standardized flight decks will improve situational awareness for flight crews and are expected to increase operational flexibility, simplify maintenance and improve dispatch and on-time reliability.

“In addition to deploying technology enhancements, Delta continues to work closely with the FAA as it advances NextGen procedures — many of which are being developed at key hub airports,” said Steve Dickson, Delta’s senior vice president-Flight Operations. “Delta continues to invest in NextGen and looks forward to the FAA’s continued progress in systemwide implementation of these improvements, especially at these key hubs, which promise to deliver real savings as well as safety and efficiency enhancements.

Installation of the enhanced flight deck technology across the MD-88 and MD-90 fleet is slated to begin in early 2014 and will be completed by IS&S technicians at Delta TechOps facilities. The process is expected to take approximately two years.

Delta continues to enhance technology across its fleet — including updates to nearly all Airbus and Boeing aircraft — aimed at taking advantage of the performance and efficiency improvements that will be realized once the FAA fully implements the NextGen system.

Significant reductions in environmental impact, both in noise and emissions, as a result of these improvements, are part of Delta’s continued social responsibility efforts. The airline has improved overall fuel-efficiency by an average of 1.7 percent from 2009 to 2012, exceeding goals set by the International Air Transportation Association. Since 2005, Delta has reduced its annual aircraft greenhouse gas emissions by 8.4 million metric tons, an 18.5 percent reduction.

Copyright Photo: Brian McDonough. McDonnell Douglas MD-90-30 N903DA (msn 53383) arrives at Baltimore/Washington International Thurgood Marshall Airport.

Delta Air Lines:

JetBlue is coming to Worcester, Massachusetts

JetBlue Airways (New York) has announced its 80th BlueCity: Worcester, Massachusetts.

JetBlue will kick off its service to Worcester Regional Airport (ORH) on November 7 with daily flights to Fort Lauderdale/Hollywood (FLL) and Orlando (MCO). Worcester is the eighth BlueCity in New England. The new Worcester routes will be operated with Embraer 190s, operating on this schedule:

Flight Schedule

ORH-FLL
4:05 p.m. – 7:31 p.m.
FLL-ORH
7:15 p.m. – 10:17 p.m.
ORH-MCO
7:20 a.m. – 10:37 a.m.
MCO-ORH
11:20 a.m. -2:07 p.m.

Copyright Photo: Brian McDonough. Embraer ERJ 190-100 IGW N267JB (19000065) with the Stripes tail motif arrives at Baltimore/Washington.

JetBlue Airways:

Doug Parker: The new American Airlines’ livery is “an integration issue”

American Airlines‘ (Dallas/Fort Worth) new 2013 livery was approved by the current AA management team headed by CEO Tom Horton who is leaving soon. This new look was apparently not approved by the current US Airways CEO (and the upcoming new American CEO) Doug Parker. Parker has called the new American livery a merger “integration issue” according to this article and interview by Skift Travel IQ. In other words, this new livery (above) could be short-term as it will soon be associated with the old (outgoing) AA management team. What changes (if any) to this new design created by Futurebrands will be now determined by the new American-US Airways integration team.

Read the full article: CLICK HERE

Copyright Photo: Tony Storck. Boeing 737-823 WL N803NN (msn 29566) touches down at Baltimore/Washington International Thurgood Marshall Airport in the new (temporary?) look.

American Airlines:

FedEx Corporation reports third quarter operating income of $589 million, down 28% from $813 million last year

FedEx Corporation (FedEx Express) (Memphis) today reported earnings of $1.23 per diluted share for the third quarter ended February 28, excluding business realignment costs totaling $47 million primarily related to the company’s voluntary buyout program for eligible U.S. officers and managing directors. Including this year’s realignment costs, third quarter earnings were $1.13 per diluted share.

Last year’s third quarter earnings were $1.55 per diluted share, excluding a $0.10 per share reversal of a reserve associated with a legal matter at FedEx Express. Including last year’s reserve reversal, earnings were $1.65 per diluted share.

“The third quarter was very challenging due to continued weakness in international air freight markets, pressure on yields due to industry overcapacity and customers selecting less expensive and slower-transit services,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “In response, beginning April 1, FedEx Express will decrease capacity to and from Asia and will aggressively manage traffic flows to place low yielding traffic in lower-cost networks. We are currently assessing how these actions may allow FedEx Express to retire more of its older, less-efficient aircraft. We remain focused on our strategic cost reduction programs, which are ramping up and on track.”

Third Quarter Results

FedEx Corp. reported the following consolidated results for the third quarter:

• Revenue of $11.0 billion, up 4% from $10.6 billion the previous year

• Operating income of $589 million, down 28% from $813 million last year

• Operating margin of 5.4%, down from 7.7% the previous year

• Net income of $361 million, down 31% from $521 million a year ago

As discussed above, the quarter’s results reflect the decline in profitability at FedEx Express due to the accelerating demand shift toward lower-yielding international services and lower international export yields. The quarter’s results were also negatively impacted by the business realignment costs noted earlier and by fewer operating days in each transportation segment.

Outlook

FedEx projects earnings to be an adjusted $1.90 to $2.10 per diluted share in the fourth quarter and an adjusted $6.00 to $6.20 per diluted share for fiscal 2013 before charges related to the company’s business realignment. Costs of the benefits provided under the voluntary buyout program will be recognized in the period that eligible employees accept their offers, predominantly in the fourth fiscal quarter. Including the third quarter costs, the company now expects the fiscal 2013 pretax cost of the voluntary buyout program to range from approximately $450 million to $550 million in cash expenditures, or $0.89 to $1.09 per diluted share, with some additional costs expected in fiscal 2014. Actual costs will depend on employee acceptance rates. Including the business realignment costs, earnings are expected to be $0.94 to $1.34 per diluted share in the fourth quarter and $4.91 to $5.31 per diluted share for fiscal 2013. This guidance assumes the current market outlook for fuel prices. The capital spending forecast for fiscal 2013 is now $3.6 billion, compared to $3.9 billion in the company’s previous forecast.

In last year’s fourth quarter, the company reported earnings of $1.99 per diluted share, excluding a $0.26 per diluted share non-cash aircraft impairment charge at FedEx Express. Including this charge, earnings were $1.73 per diluted share.

“Our lower-than-expected results for the quarter and reduced full-year earnings outlook were driven by third quarter international revenues declining approximately $100 million versus our guidance primarily due to accelerating customer preference for lower-yielding international services, lower rate per pound and weight per shipment,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “We expect these international revenue trends to continue. We have other actions under way beyond those already included in our profit improvement program. Some of these additional actions may involve temporarily or permanently grounding aircraft, which could result in asset impairment or other charges in future periods.”

“In early February, a number of officers and managing directors, primarily at FedEx Services and FedEx Express, accepted voluntary buyouts, and on February 15, thousands more team members were notified of their eligibility for the buyout program. This program is one of the first steps in a process that will help FedEx Express achieve necessary cost structure reductions and improved efficiency. In addition to continued profit improvements in the base businesses at FedEx Ground and FedEx Freight, our profit improvement programs are targeting annual profitability improvement at FedEx Express of $1.6 billion by the end of fiscal 2016, from the fiscal year 2013 base business. Collectively, these initiatives are expected to increase margins, improve cash flows and increase our competitiveness,” said Graf.

Stock Repurchase Program Authorization Increase

The FedEx Corp. board of directors has authorized the repurchase of up to 10 million shares of FedEx Corp. common stock. These shares augment the remaining 188 thousand shares authorized for purchase under existing share repurchase programs. It is expected that the additional share authorization will primarily be utilized to offset equity compensation dilution over the next several years. Purchases may be made in the open market and in negotiated or block transactions. FedEx had 317 million shares outstanding as of February 28, 2013.

FedEx Express Segment

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.70 billion, up 2% from last year’s $6.54 billion

• Operating income of $118 million, down 66% from $349 million a year ago

• Operating margin of 1.8%, down from 5.3% the previous year

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks, while core express revenue was constrained by continued demand shift toward lower-yielding international services. U.S. domestic revenue per package grew 1% as higher rate per pound and weight per package were offset by lower fuel surcharges, while average daily package volume increased 1%. Higher growth in international deferred services continued, with FedEx International Economy^® volume growing 12%, while FedEx International Priority^® volume increased 2% during the quarter. International export revenue per package fell 3% due to the demand shift to lower-yielding international services, lower rates and lower fuel surcharges.

Operating income and margin were significantly lower due to the demand shift to lower-yielding international services, the prior year reversal of a $66 million reserve associated with a legal matter, the negative impact of one fewer operating day, higher pension cost and increased depreciation expense. Costs associated with the business realignment program also negatively impacted operating results by $34 million.

FedEx Express:

Southwest Airlines to fly to San Juan, Puerto Rico (replacing AirTran)

Southwest Airlines (Dallas) and its wholly owned subsidiary AirTran Airways announced an extension of flight schedules for travel through November 1, 2013. In extending both carriers’ bookable inventory, Southwest introduces four new nonstop routes, including the first Southwest service from Des Moines to the West through Las Vegas, and the return of seasonal service in three markets. The carrier also announced new Southwest Airlines service between Fort Lauderdale-Hollywood and San Juan, a conversion from AirTran service in the market, beginning on September 29, 2013. Southwest Airlines begins its initial service in San Juan, Puerto Rico on April 14 with nonstop service between both Tampa Bay and Orlando. AirTran introduces additional seasonal flying to and from Florida.

Southwest’s new markets:

Two daily nonstop flights between Fort Lauderdale-Hollywood and San Juan
One daily nonstop flight between Nashville and Pittsburgh
One daily nonstop flight between Atlanta and San Diego
One daily nonstop flight between Des Moines and Las Vegas
One daily nonstop flight between Jacksonville and Chicago

Southwest’s returning seasonal markets:

One daily nonstop flight between Indianapolis and Orlando
One daily nonstop flight between Jacksonville and Las Vegas
One daily nonstop flight between Orlando and Minneapolis-Saint Paul

AirTran’s new markets:

Seasonal service between Orlando and Houston (Hobby)
Seasonal service between Orlando and New Orleans
Seasonal service between Fort Myers and Columbus
Seasonal service between Fort Lauderdale-Hollywood and Pittsburgh

Top Copyright Photo: Bruce Drum. Southwest Airlines Boeing 737-7H4 WL N944WN (msn 36659) with extra “Free Bags Fly Free” markings arrives on runway 9L at Fort Lauderdale-Hollywood International Airport.

Southwest Airlines:

AirTran Airways:

Bottom Copyright Photo: Tony Storck. The special AirTran schemes are not expected to survive the integration into Southwest. The pictured Boeing 737-7BD WL N354AT (msn 36725) in the special Georgia Aquarium “Dolphin 1” scheme is due to become N7724A with Southwest.

Southwest Airlines to expand its code-share with subsidiary AirTran Airways

Southwest Airlines (Dallas) has announced that it is taking the next step in its marriage with subsidiary, AirTran Airways. Customers are now able to purchase a growing number of itineraries between the Southwest and AirTran networks for travel on a single itinerary. Soon, Customers will be able to book flights to any of the airlines’ combined 97 destinations, including international, in one transaction.

“Connecting the networks is a priority in 2013 and a major milestone as we work to combine our two Companies,” said Bob Jordan, Chief Commercial Officer at Southwest Airlines and President of AirTran. “With a connected network, we can offer Customers more itineraries, more destinations, more low fares, and a taste of what’s to come once the integration is complete.”

Southwest Airlines and AirTran Airways took the first step in connecting their networks on January 26, 2013, by offering a small number of shared itineraries in five markets. The initial phase was successful, and the airlines are prepared to launch in 39 cities on February 25, 2013. The airline is on pace to fully connect the networks in April.

By connecting the Southwest and AirTran networks, Customers may:

Add one or more AirTran domestic flight segments to a Southwest itinerary, using Southwest booking channels (southwest.com, 1-800-IFLYSWA, travel agencies, Southwest’s mobile site and apps, and Southwest Airlines ticket counters).
Book one or more Southwest flight segments connecting to an AirTran itinerary, using AirTran channels (airtran.com, 1-800-AIRTRAN, AirTran Airways ticket counters, and travel agencies).
Use all Southwest channels to book an AirTran-only domestic itinerary.
Add an international AirTran segment to a Southwest itinerary within a single reservation, through a Customer-friendly transfer of the transaction to AirTran channels for booking, purchase, and ticketing by AirTran.
Earn currency in either loyalty program no matter which carrier they fly. (The currency a Customer earns is determined by the carrier from which they buy their ticket, even if flying on a shared itinerary.)

As is standard with industry “code share” arrangements, the Marketing Carrier’s rules and policies apply to reservations and ticketing. The Operating Carrier’s procedures apply to boarding, seating, and the onboard experience. Southwest is making one exception: any itinerary with a Southwest segment or that is purchased through a Southwest point-of-sale channel will not have bag fees for the first or second checked bag (weight and size restrictions apply).

Southwest Airlines announced plans to acquire AirTran Airways on September 27, 2010, an acquisition that significantly expanded Southwest Airlines’ low-fare service to more Customers in more domestic markets, creating hundreds of additional low-fare itineraries for the traveling public. Since Southwest Airlines closed the deal to purchase AirTran Airways on May 2, 2011, Southwest and AirTran Employees have worked hard to guarantee a thoughtful and smooth integration process while providing the same high level of Customer Service that Customers have come to expect. To date, Southwest Airlines has welcomed 29 percent of AirTran Employees to the Southwest Family, has converted 11 AirTran Airways 737-700 aircraft to the Southwest paint scheme and interior configuration, and has transitioned five AirTran Airways-served cities into Southwest Airlines operations.

The process of a full integration of the AirTran Airways 737 fleet into the Southwest Airlines fleet (i.e. paint scheme and interior configuration) and transition to a single ticketing system is a large and complex process that is expected to be completed by the end of 2014. Southwest Airlines realized $142 million of net, annualized, pre-tax synergies during 2012, and expects to achieve $400 million in 2013 (excluding acquisition and integration expenses).

Copyright Photo: Tony Storck. All visuals for AirTran Airways, including aircraft, will be gone by the end of 2014. The Boeing 717 fleet will be leaving sooner for Delta Air Lines. Southwest will not operate or integrate the Boeing 717s. Therefore many of the special color schemes on the 717s will be retired when the aircraft are removed from the AirTran fleet. The pictured ex-TWA 717-231 N925AT (msn 55079, ex N412TW) displays the special “The Wizarding World of Harry Potter” color scheme at Baltimore/Washington.

Southwest Airlines:

AirTran Airways:

Cape Air appoints a new president, the only female airline president in North America

Cape Air‘s (Hyannis) Board of Directors announced the appointment of Linda Markham as President and Chief Administrative Officer (CEO) effective on March 18, 2013. Preceding President and Chief Operating Officer, Dave Bushy, announced his retirement in January. Markham brings eleven years of strong growth, financial, operational, planning and human resources leadership experience with Cape Air to her new role. She previously served as Executive Vice President and Chief Administrative Officer.

Cape Air Founder and CEO, Dan Wolf, notes Markham’s exceptional ability to lead diverse groups across the organization’s 36 stations in the US, Caribbean and Micronesia. “Linda has provided remarkable leadership to not only the operational and financial divisions of Cape Air, but more importantly, she has been able to develop and grow employee and customer experiences to a level that has made Cape Air a model in the airline industry. I greatly look forward to continuing our work together as we explore opportunities for the organization, our associates and passengers.”

Markham adds, “I am honored to have been entrusted with this opportunity, and I am thrilled to continue guiding this organization alongside Dan. We share the philosophy that service and corporate culture are paramount, and that people are our most valuable asset. If we continue to improve the employee experience, it will ultimately improve the customer experience.”

Upon her assumption of the new position, Markham will be the only female President of an airline in North America.

Now in its 24th year, Cape Air is one of the largest independent regional airlines in the United States annually flying over 700,000 passengers to destinations around the world including New England, New York, the Caribbean, Florida, the Midwest and Micronesia. With a fleet of sixty-six Cessna 402s and two ATR 42s, the employee-owned company operates up to 700 flights per day. Cape Air also operates flights under the Nantucket Airlines brand. Cape Air is a codeshare partner with United Airlines and American Airlines in the Caribbean and American Airlines in the Midwest. In Micronesia, Cape Air operates as United Express.

The airline’s motto is “MOCHA HAGoTDI”. It means to Make our Customers Happy and Have a Good Time Doing It.

Copyright Photo: Tony Storck. Cessna 402C N1376G (msn 402C0271) in the Provincetown special motif taxies at Baltimore/Washington.

Route Maps:

US Airways and the Association of Flight Attendants reach a tentative agreement

US Airways (Phoenix) has announced that it has reached a new tentative agreement on a collective bargaining agreement with the Association of Flight Attendants (AFA), which represents the airline’s 6,800 mainline flight attendants. Details of the agreement will be made available by AFA.

If ratified, the tentative agreement would cover the airline’s 6,800 mainline flight attendants, who are based in US Airways’ three hub cities of Phoenix, Philadelphia and Charlotte, N.C., and in its Washington, D.C. focus city.

Copyright Photo: Brian McDonough. Airbus A319-132 N837AW (msn 2595) dressed in the Arizona Cardinals of the NFL motif arrives at Baltimore/Washington.

US Airways: