Tag Archives: McDonnell Douglas MD-83

American Airlines Group reports the highest quarterly profit in company history

 

 

American Airlines Group Inc. (American Airlines) (Dallas/Fort Worth) today reported its third quarter 2015 results:

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  • Reported record quarterly net profit of $1.9 billion excluding net special charges, a 54 percent increase versus the third quarter 2014. This is the highest quarterly profit in the Company’s history
  • Reported quarterly GAAP net profit of $1.7 billion, an 80 percent increase versus last year’s third quarter
  • Repurchased $1.56 billion of common stock, or 38.4 million shares, during the third quarter and authorized a new $2.0 billion share repurchase program to be completed by the end of 2016
  • Passed a critical merger milestone earlier this week by successfully integrating its passenger reservations system with no operational impact

American Airlines Group’s third quarter 2015 net profit, excluding net special charges, was a record $1.9 billion, or $2.77 per diluted share versus a third quarter 2014 net profit excluding net special charges of $1.2 billion, or $1.66 per diluted share. This is the highest quarterly profit in the Company’s history. The Company’s third quarter 2015 pretax margin excluding net special charges was a record 17.7 percent, up 6.7 percentage points from the same period last year.

On a GAAP basis, the Company reported a net profit of $1.7 billion, or $2.49 per diluted share. This compares to a GAAP net profit of $942 million in the third quarter 2014, or $1.28 per diluted share.

The Company continues to make significant investments in the airline through its extensive fleet renewal program, giving it the youngest fleet of the U.S. network airlines. In the third quarter, the Company took delivery of 16 new mainline and 15 new regional aircraft and retired 36 mainline and nine regional aircraft.

In the third quarter, the Company recognized $192 million in net special charges, including:

  • $165 million in operating special charges, primarily including $198 million in merger related integration expenses and a $38 million special charge in connection with the Company’s dissolution of its Texas Aero Engine Service joint venture. These charges were offset in part by a $66 million credit related to proceeds received from a legal settlement
  • $21 million in nonoperating special charges, principally related to non-cash write offs of unamortized debt discount and debt issuance costs associated with the remarketing of the special facility revenue bonds discussed above
  • $6 million in tax special charges related to certain indefinite-lived assets

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. American is gradually phasing out its aging McDonnell Douglas DC-9-82s and DC-9-83s including some that have been donated to aviation schools. The MD-80s are expected to be gone by late 2017. None will be repainted in the new 2013 flag livery. Ex-TWA DC-9-83 (MD-83) N965TW (msn 53615) departs from Los Angeles International Airport (LAX).

American Airlines aircraft slide show (current livery): AG Airline Slide Show

American Airlines aircraft slide show (historic liveries): AG Airline Slide Show

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Allegiant starts g4pilots.com website for the ongoing pilot negotiations

Allegiant Air (Allegiant Travel Company) (Las Vegas) has issued this statement and letter to its employees:

Allegiant Travel Company (ALGT) today (September 29) launched a new website, g4pilots.com to provide up-to-date information about ongoing negotiations with the International Brotherhood of Teamsters (IBT), the union representing the company’s pilots. The site provides information about the progress of the negotiations, background on Allegiant’s operations and answers to frequently asked questions for pilots, employees and the public. The site will be continuously updated by the Company with developments in the negotiation process. Additionally, the site offers a pay calculator function, allowing pilots and others to determine future pilot pay rates if Allegiant’s current proposal is accepted by the IBT.

Meanwhile the COO issued this employee letter to the pilots:

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To Allegiant Pilots:

Upon the conclusion of last week’s negotiating session, I would like to update you on the progress that we are making in order to reach a contract agreement for you with Local 1224.

Over the past several months, Allegiant has worked hard with representatives of Local 1224 to find areas of cooperation and compromise. Both sides have yielded from previously held positions in order to find an equitable deal for you and your families; one that recognizes the valuable contribution that you, our pilots, make towards Allegiant’s success.
Working with the union, we have settled many sections and narrowed our differences in other areas. For example, during our bargaining session in Washington, DC that ended last week, Allegiant and the union continued to make progress in the critical areas of compensation, insurance and retirement.

We remain hopeful for continued progress and cooperation with Local 1224. Our objective remains to reach an agreement with your union as soon as possible so that you can begin to enjoy the benefits of increased compensation along with the confidence and stability of a complete RLA contract. With that in mind, our most recent proposals are designed to deliver you real improvements and benefits. They include:

  • pay proposals that contain higher wages,
  • programs to bolster your retirement savings, and
  • progress in the areas of scheduling and productivity.

We were disappointed the Local 1224 negotiating committee chose not to respond in kind to most of our proposals at our recent session. Despite their signals to the contrary, we hope that they remain committed to making more progress during our next scheduled meetings on October 25-26 in Washington, D.C.

Finally as we work towards a final agreement, we will launch a unique website that we hope will be helpful to you – www.G4Pilots.com. This website will include:

  • timely updates and announcements about negotiations with Local 1224,
  • key facts about Allegiant’s proposals and what they mean for your wages, benefits and job security,
  • important background information about the key issues in the negotiations, and
  • more information about the overall bargaining process.

All of my communications to you about the negotiations with the union will be posted on the website, along with other useful tools and background information. You can also sign-up to receive news and updates when additional information is added to the website.

I will notify you when the website goes live. I hope you find it to be a useful resource.

Respectfully,

Steve

Copyright Photo: Greenwing/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N864GA (msn 49912) arrives at the Las Vegas base.

Allegiant Air aircraft slide show: AG Airline Slide Show

AG Hang one of our framable prints

Allegiant announces further expansion in Memphis

Allegiant Air (Las Vegas) has announced further expansion in Memphis with the addition of twice weekly nonstop service to Austin, Texas and St. Petersburg/Clearwater beginning on October 1, 2015.

Allegiant began service to Memphis last May with flights to Ft. Lauderdale/Hollywood, Las Vegas and Sanford (near Orlando).

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N881GA (msn 49708) approaches the runway at Las Vegas.

Allegiant Air aircraft slide show: AG Airline Slide Show

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Allegiant announces four new routes from Fort Lauderdale/Hollywood

Allegiant Air (Las Vegas) has announced new nonstop jet service to Fort Lauderdale-Hollywood International Airport from four cities across the nation beginning on October 2, 2015, including one city new to the Allegiant network.

New routes announced to Fort Lauderdale/Hollywood include:

Portsmouth, New Hampshire – October 1, 2015
Akron-Canton, Ohio – October 2, 2015
Rochester, New York – October 9, 2015
Grand Rapids, Michigan – December 16, 2015 through April 2016

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 N872GA (msn 53295) taxies to the runway at Fort Lauderdale-Hollywood International Airport (FLL) painted in the old 2003 livery.

Allegiant Air aircraft slide show: AG Airline Slide Show

AG Ad - Captain's Log 5.2015 (LRW)

 

 

Allegiant wins its injunction appeal against its pilots

Allegiant Air (Las Vegas) has issued this statement:

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Allegiant prevailed before the United States Court of Appeals for the Ninth Circuit in its appeal of a lower court ruling which had prohibited the Company from changing the terms and conditions of employment for its pilots. The unanimous appellate court decision held that the lower court erred in finding that Allegiant had to maintain the “status quo” while it negotiates a contract with the pilots’ representative, the International Brotherhood of Teamsters (Teamsters), pursuant to the Railway Labor Act (RLA).

The Teamsters was elected to represent Allegiant’s pilots in August 2012. In late 2013, the Teamsters sued the Company, claiming the Company had violated the RLA’s “status quo” requirements by allegedly making changes to established pilot work rules during the parties’ negotiations. The appellate court concluded that Allegiant has no obligation to maintain the status quo under the RLA during its negotiations with the Teamsters. It vacated the injunction and remanded the case to “permit the Teamsters and Allegiant to continue negotiating a collective bargaining agreement in conformity with the RLA and under the [National Mediation] Board’s guidance.”

“We are pleased with the Court’s ruling and look forward to directing our time and energy to the negotiating table to continue working toward a contract that will be beneficial to both our pilots and the company,” said Steve Harfst, Allegiant’s chief operating officer.

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N868GA (msn 49554) arrives back at the Las Vegas base.

Allegiant Air aircraft slide show: AG Airline Slide Show

Falcon Air ceases all operations

Falcon Air Express (Miami) on Friday (June 5) voluntarily surrendered its Air Operator Certificate (AOC) and ceased all operations according to this report by The Ledger. The company had recently moved its aircraft to Lakeland, Florida and was in negotiations with the city about starting scheduled passenger operations from the airport that currently does not have any air service.

Read the full report: CLICK HERE

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The company originally started operations in March 1996.

Copyright Photo: Tony STorck/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N120MN (msn 53120) approaches the runway at Miami.

Falcon Air aircraft slide show: AG Airline Slide Show

 

Allegiant launches five seasonal routes from Myrtle Beach

Allegiant Air (Las Vegas) this week celebrated the start of new, nonstop seasonal flights to Myrtle Beach.

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New seasonal routes launching to Myrtle Beach include:

Akron/Canton, Ohio – June 3, 2015 through Sep. 13, 2015
Sanford (near Orlando), Florida – June 4, 2015 through Sep. 13, 2015
Indianapolis, Indiana – June 4, 2015 through Sep. 13, 2015
Pittsburgh, Pennsylvania – June 5, 2015 through Sep. 13, 2015
Clarksburg, West Virginia – June 5, 2015 through Aug. 17, 2015

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N416NV (msn 49555) arrives at Concord, North Carolina, near Charlotte.

Allegiant Air aircraft slide show: AG Airline Slide Show