Airline Finance News - North America

AirGuide Business, June 30, 2008

Continental Airlines

Continental Airlines announced a public offering of 11 million shares of class B common stock priced at $14.80 per share. It granted underwriter UBS Investment Bank a 30-day option to purchase an additional 1.65 million shares. Issuance and delivery of the shares is scheduled for June 25. Jun 23, 2008

Delta Air Lines

Crude oil prices dropped on Thursday after the House approved legislation deigned to prevent the type of excessive energy speculation that is blamed in part for the skyrocketing prices. Crude oil for August delivery dropped by $1.03, or 0.7%, to $138.61 per barrel. Jun 27, 2008

Delta Air Lines, Northwest Airlines

Pilots at Delta Air Lines and Northwest Airlines have reached a joint contract agreement that will go into effect if the two airlines merge. The two pilot groups have agreed on a system for creating one seniority list by the time the merger closes. Jun 25, 2008

Frontier Airlines

Frontier Airlines is bracing for another round of cuts, with plans to reduce capacity 17% from September to March 2009, the AP reported. The carrier, which declared bankruptcy in April, will cut seven more Airbus narrowbodies from its fleet on top of the four A318s/A319s it agreed to sell in the spring. Prior to the sale of those aircraft, it operated a fleet of 60 A318s/A319s. Its regional subsidiary Lynx operates 10 Q400s. CEO Sean Menke said the cuts are in response to record fuel prices and the slow economy. Frontier also plans a "proportional reduction" of its workforce, though no specifics were provided. Jun 27, 2008

Frontier Airlines

The weaker economy and soaring fuel costs will force Frontier Airlines to shed capacity and jobs. The airline said mainline capacity will fall 17% from September through March from year-earlier levels. Jun 26, 2008

ILFC, AIG

Aircraft-leasing firm International Lease Finance Corp. will remain a part of American International Group, the companies said. Company executives said they made the decision after a thorough review of AIG's credit problems. AIG has also agreed to loosen some control it has over ILFC. Jun 27, 2008

Mesa Air Group

A federal judge has granted Mesa Air Group Inc. a preliminary injunction against Delta Airlines, blocking Delta from terminating a regional flying agreement worth $20 million a month. U.S. District Judge Clarence Cooper said Delta had assured Mesa that it was not punishing the carrier when it moved many of Mesa's flights to congested JFK International Airport in New York, but Delta later used Mesa's increased flight cancellations as an excuse to terminate the agreement. Jun 27, 2008

Midwest Airlines

Midwest Airlines hopes that moving quickly to establish a restructuring plan can help it avoid filing for bankruptcy protection. The airline has hired restructuring advisers Seabury Group. It has already announced plans to ground planes and shed jobs. Jun 27, 2008

Midwest Airlines

Midwest Airlines promoted Leo Malloy to president of its Skyway airport operations and handling subsidiary. Jun 23, 2008