Tag Archives: bankruptcy reorganization

Forbes: Delta gets a revenue premium of 107%

Delta Air Lines (Atlanta), according to this article by Forbes Magazine, gets a seven percent premium per available seat mile over any other U.S. airline. Before bankruptcy reorganization in 2005, Delta was only able to garner 86 percent, the industry average at the time. Delta took the reorganization to remake itself into the money-making juggernaut it is today. Delta just announced it will raise its dividend to stockholders by 50 percent and will buy back $2 billion of its stock which should further raise the value of the remaining stock.

Read the full article by Ted Reed: CLICK HERE

Delta Air Lines: Michael B. Ing/AirlinersGallery.com. Delta is adding new Boeing 737-900 ERs to replace its older aircraft. Boeing 737-932 ER N810DN (msn 31922) completes its final approach to the runway at Los Angeles International Airport.

Delta Mother's Day

Delta Air Lines (current): AG Slide Show

Advertisements

Swift Air to emerge from Chapter 11 bankruptcy in mid October

Swift Air (USA) (Phoenix) now plans to emerge from Chapter 11 bankruptcy reorganization in mid October following the approval of the bankruptcy court. The Part 121 supplemental airline filed for bankruptcy reorganization in June 2012. The airline issued this statement:

On October 2, 2013 the U.S. Bankruptcy Court, District of Arizona granted final approval to Swift Air’s proposed plan of reorganization, thus paving the way for the company’s emergence from bankruptcy protection by mid-October. The company’s reorganization plan was overwhelmingly supported by the company’s creditor constituencies.

Swift’s CEO Jeff Conry said that “this is an important milestone in the company’s continuing steps to complete its financial restructuring and emerge from chapter 11 in the very near future. We are gratified to have the support of our plan sponsor, Nimbos Holdings, as well as the Official Creditors’ Committee.”

Ken Woolley, the principal behind Nimbos Holdings and the plan’s financial backer, said, “We are very excited about the company’s upcoming emergence from chapter 11, and look forward to a very successful future with the company.”

Copyright Photo: Mark Durbin/AirlinersGallery.com. The former US Airways Boeing 737-4B7 N802TJ (msn 24874) is pictured parked at San Francisco International Airport in the current livery, available for charter work. The aircraft was formerly painted and operated for the John McCain presidential campaign.

Swift Air: AG Slide Show

The next move for AMR and American Airlines

AMR Corporation (American Airlines) (Dallas/Fort Worth) and US Airways (Phoenix) in a show of unity, vowed yesterday to fight the Department of Justice’s (DOJ) lawsuit in court (along with six states and the District of Colombia). Three high-powered attorneys have been hired to fight the lawsuit. The two airlines will try to argue in court that their merger will promote competition, especially against Delta Air Lines, United Airlines and Southwest Airlines.

However the real measure being used by the DOJ and will probably be the central theme in the court, will another merger lead to lower ticket prices? With the recent Delta-Northwest, United-Continental and Southwest-AirTran mergers, ticket prices have been raised steadily (probably due more to fuel costs) along with an increasing long list of add-on charges. Airline profits are at its highest. The DOJ is using American’s and US Airways’ own pre-airline merger reports when they were arguing for a merger which states an AA-US merger would lead to higher yields permitting the  lower ticket prices to be dropped on many routes where they compete adding to the bottom line for the merged company. AA-US also have a large share of the routes and traffic from slot-controlled Washington Reagan National Airport. Very few of those routes have any meaningful competition. DCA routes have some of the highest yields in the country.

At any rate the lawsuit will delay the merger decision, probably now to 2014.

Read the full report from Reuters: CLICK HERE

However for bankrupt AMR Corporation and American Airlines and its shareholders, the rejection could send its bankruptcy reorganization back to where it all started with a key question:

Can the deal be restructured again to meet the DOJ’s antitrust objections (especially concerning Washington’s Reagan National Airport) and keep some value for the creditors and shareholders? Without US Airways in the equation, a new reorganization would probably shift the company’s equity to the current creditors. The existing shareholders could get nothing in any new reorganization making it harder to “sell”.

In addition what happens to CEO Tom Horton and his nearly $20 million severance package?

Nick Brown examines the options for AMR in this article as it tries to adjust to a newer reality: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. The new 2013 livery of American is now likely to become the livery of a new American with or without US Airways as more aircraft are repainted. There is a tipping point (probably already achieved) where it becomes unfeasible to go to another look. US Airways’ CEO Doug Parker, if he becomes the CEO of the new American, may be stuck with current CEO Tom Horton’s design going forward. The controversial livery is the least of Doug’s problems right now.  Boeing 737-823 N965AN (msn 29544) poses for the camera under perfect light at Toronto (Pearson).

American Airlines: AG Slide Show

US Airways: AG Slide Show

American bankruptcy trustee questions the $19.9 severance package for CEO Tom Horton

American Airlines (Dallas/Fort Worth) is facing a new round of questioning in the bankruptcy court to further explain the large $19.9 million severance package afforded to departing CEO Tom Horton. According to this report by Reuters, Trustee Tracy Hope Davis is asking the carrier to explain the large settlement  and  also the “sweeping changes” to its employee pay programs under the Chapter 11 bankruptcy reorganization.

Read the full report: CLICK HERE

Top Copyright Photo: Brian Peters. Boeing 777-323 ER N717AN (msn 31543) arrives at the large Dallas-Fort Worth International Airport hub.

American Airlines: AG Slide Show

Bottom Copyright Photo: American Airlines. Outgoing AA CEO Tom Horton.

American Airlines CEO Tom Horton (LR)

Sun Country’s CEO Stan Gadek suddenly leaves the company

Sun Country Airlines‘ (MN Airlines dba) (Minneapolis/St. Paul) Chief Executive Officer (CEO) Stan Gadek, who brought the airline out of Chapter 11 bankruptcy reorganization into profitability, suddenly left the company on Wednesday (February 13) according to this report by the Star Tribune.

The company said Gadek was being replaced on an interim basis by vice president and general counsel John Fredericksen.

Read the full report: CLICK HERE

Copyright Photo: Mark Durbin. Sun Country leases in additional Boeing 737-800s during its busy winter season. The pictured Boeing 737-8K2 PH-HZJ (msn 30389) at San Francisco was leased from Transavia Airlines in their colors on November 6, 2012.

Sun Country Airlines: AG Slide Show

Sun Country logo-1

Route Map:

Please click on the map for the full-size imag

Please click on the map for the full-size imag

 

Ryan International decides to liquidate, shuts down and terminates all employees

Ryan International Airlines (Rockford) yesterday (January 11) reversed its bankruptcy reorganization path from reorganization (Chapter 11) to liquidation (Chapter 7). The charter airline suddenly shut down and laid off all of its employees. The airline is still talking with prospective investors but it is a long shot for the airline to restart operations.

The airline went into Chapter 11 reorganization in March 2012. Previously the company was established by Ron Ryan in Wichita, KS and started operations on March 3, 1973 as Ryan Aviation. In 2005 the company was sold to the Rubloff Development Group which moved the company to Rockford (near Chicago) in 2006.

Read the full report from Channel 13 in Rockford: CLICK HERE

Top Copyright Photo: Bruce Drum. Boeing 757-2G5 N929RD (msn 23929) at Miami displays the 2004 livery of the company.

Tails of the World: AG Tails of the World

Ryan International logo-1

Ryan International Airlines: AG Slide Show

AMR and the Allied Pilot Association (APA) agree on a new contract

AMR Corporation (Dallas/Fort Worth) (American Airlines) and the Allied Pilots Association (APA) (Dallas/Fort Worth) have agreed on a new contract, still subject to the approval of the members.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Brian McDonough. Members of the Oneworld alliance a sighing in relief with this agreement, if approved, it will allow AA to emerge from Chapter 11 bankruptcy reorganization. Boeing 767-323 ER N395AN (msn 29432) approaches the runway for landing at Miami.

American Airlines: