Airline Finance News - North America

AirGuide Business, May 5, 2008

American Airlines

American Airlines workers unlikely to accept more pay cuts, union says. Five years ago, workers at American accepted voluntary pay cuts as part of an effort to help the airline return to financial stability. Now union leaders say workers are unlikely to agree to additional cuts, even as the industry struggles with soaring fuel prices. Apr 28, 2008

American Airlines

American Airlines's talks with US Airways were not serious at this point, one person said. Aviation consultant Bob Mann said a US Airways-American Airlines merger would not be a marquee matchup and would give American, currently the largest US carrier, little extra depth overseas. All of the airlines declined to comment. Apr 28, 2008

ATA Airlines

Air Line Pilots Assn. filed suit against ATA Airlines for failing to give notice prior to shutting down operations "abruptly in the early morning hours of April 3". In a complaint filed in US Bankruptcy Court in Indianapolis, ALPA contends that ATA violated the federal Workers Adjustment and Retraining Notification Act, which it says "requires businesses with more than 100 workers to notify their employees 60 days in advance of any plant closing or mass layoff." Some 890 active and furloughed ATA pilots and flight engineers lost their jobs "with no warning whatsoever" when the airline ceased operating, ALPA said. The union wants ATA parent Global Aero Logistics to pay pilots 60 days worth of back pay and benefits with interest. Apr 28, 2008

British Airways, American Airlines, Continental Airlines

Continental Airlines is in talks with American Airlines and British Airways about possible alliance opportunities, according to a regulatory filing. Negotiations with American and British could eventually prompt Continental to leave the SkyTeam alliance, which is led by Delta Air Lines and Northwest Airlines, observers said. Continental declined to comment on the negotiations. May 1, 2008

Continental Airlines

Continental Airlines is in talks with American Airlines and British Airways about possible alliance opportunities, according to a regulatory filing. Negotiations with American and BA could eventually prompt Continental to leave the SkyTeam alliance, which is led by Delta Air Lines and Northwest Airlines, observers said. Continental declined to comment on the negotiations. May 1, 2008

Continental Airlines

Continental, which has said it would prefer to remain independent unless the competitive landscape changes, had laid most of the groundwork for a merger with United even before Delta and Northwest announced their deal, the sources said. Under the terms being negotiated, Continental Chief Executive Larry Kellner would be CEO of the combined airline and UAL CEO Glenn Tilton could be chairman, the people said. Other details are still being negotiated in what would be another all-stock deal. Combining United with Continental would create a company with a combined USD$35 billion in revenue and nearly 100,000 employees, surpassing the Delta-Northwest combination. But that merger may not happen. United Airlines, whose shares plunged 40 percent when it reported a quarterly loss earlier this week, is also talking to US Airways. Apr 28, 2008