Airline Finance News - North America

AirGuide Business, July 7, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines and Northwest Airlines employees are urging lawmakers to regulate speculation in the oil markets. The employees have sent nearly 10,000 e-mails to lawmakers through a Web site created by Delta. The carriers plan to ask customers to join the effort. 7/3/2008

Delta Air Lines, Northwest Airlines

Delta Air Lines and Northwest Airlines pilots, whose leaders reached a tentative agreement on a joint contract last week with Delta management, will enter into a period of "good faith" negotiations over details of seniority list integration and agreed to enter into binding arbitration by year end if differences still remain. Minneapolis's Star Tribune reported that the tentative joint contract would give Delta pilots a 5% pay raise next year and annual increases of 4% through 2012, with NWA pilots receiving larger raises to bring their pay to parity with their better-compensated DL counterparts. The DL Air Line Pilots Assn. MEC has approved the tentative contract and the NWA ALPA MEC reportedly will vote on it imminently. Pilots from both carriers then would be required to ratify it. 6/30/2008

Delta Air Lines, Pinnacle Airlines

Delta air Lines last month told regional partner Pinnacle Airlines that the capacity purchase agreement the two signed in April 2007 will be terminated on July 31, claiming that the Memphis-based airline has failed to meet ontime performance standards. In April Delta announced it would end its agreement with Mesa Air Group subsidiary Freedom Airlines, which operates 34 ERJ-145s on Delta Connection flights. But Mesa won a preliminary US court injunction in May that prevented Delta from pulling the plug. ExpressJet, meanwhile, last month signed an expansive new seven-year capacity purchase agreement with Continental Airlines that will see it operate a minimum of 205 aircraft for Continental in the first year of the deal that kicked in last week and a minimum of 190 in following years. 7/4/2008

Delta Vacations, Delta Air Lines

Delta Vacations is marking the beginning of its new management relationship with Travel Impressions by partnering with SuperClubs to offer savings of up to $100 at participating resorts. Clients who book four- or five-night packages, double occupancy, will get $50 off the total booking. Clients who book six nights or more, double, will receive $100 off the total booking. This offer is valid on all room categories for bookings made July 1 to September 30, for travel July 2 to December 15. The offer is valid for both land-only and air-inclusive new bookings. Certain blackout, weekend and holiday peak surcharges apply, Delta Vacations says. As an added incentive, Delta Vacations is offering travel agents up to 15 percent commission plus American Express Gift Cheque bonuses up to $75 per booking through Delta Vacations Summer Sensations. 7/2/2008

Jazz Air, Air Canada

Jazz Air capacity and staff reductions are the latest cost-cutting measures in an industry being buffeted by high costs as oil prices creep closer to USD$150 a barrel, more than double the level of a year ago. Air Canada said on June 17 it will reduce its capacity to US destinations by 13 percent and between Canadian cities by 2 percent in its autumn and winter schedules. 7/4/2008