Airline Finance News - North America

AirGuide Business, Sept 1, 2008

Northwest Airlines

In June, the company confirmed the hiring of Seabury Group to assist with a restructuring plan. This month, Northwest Airlines wrote off its $213 million investment in the partnership that owns Midwest, citing concerns about the carrier's financial position. Northwest and TPG Capital acquired Midwest in a $452 million transaction earlier this year. Aug 25, 2008

Southwest Airlines

Southwest Airlines said on Tuesday it plans to cut about 200 flights in the first quarter of 2009 as it tries to focus on more profitable flights to combat high fuel costs and a slow economy. The leading US low-cost carrier said that following the introduction of new software to manage flight schedules it was trying to better match its schedule to customer demand. Southwest said it will cut 196 flights and add six new flights between January and March. This represents nearly 6 percent of the airline's daily schedule of around 3,400 flights. Southwest Chief Executive Gary Kelly said last month the airline had the ability to eliminate unproductive flights and the company planned to increase its year-over-year available seat mile (ASM) capacity no more than 4 percent in 2008. Aug 27, 2008

Southwest Airlines

Southwest Airlines said yesterday that it will cut 196 daily flights while adding just six when it launches its winter schedule on Jan. 11, a more than 5% reduction from its current schedule. The carrier cited traditionally lower demand and poor weather during winter months as well as a slow economy and high fuel costs. It said some flights potentially could be added back to the schedule in the spring. Three routes will be dropped: Phoenix-Birmingham, Nashville-Oakland and Nashville-Seattle. The rest of the cuts will result from lowering frequencies. Southwest will operate 22 fewer daily departures from Chicago Midway, 13 fewer from Baltimore, 12 fewer from Las Vegas and 10 fewer from both Phoenix and Nashville. Aug 27, 2008

Southwest Airlines

Southwest said last June it would buck the industry trend to reduce capacity and flights by eliminating 31 existing round-trip flights and adding 40 new flights in growing markets. In January it said it would eliminate 57 flights from its May schedule. Like other airlines, Southwest has been impacted by rising fuel prices but to date has been less negatively affected by successfully hedging against high fuel costs -- locking in guaranteed lower fuel prices before the rises. Southwest spokeswoman Beth Harbin said the cuts will mainly affect a few early-morning and late-night flights from cities including Dallas and Houston, where the airline has up to 30 flights a day. Aug 27, 2008

Southwest Airlines

Southwest Airlines has informed the Federal Aviation Administration it does not intend to pay a $10.2 million fine--due by 29 August--levied by the agency against the carrier in March after the airline failed to complete mandatory inspections of 46 aircraft. FAA claims Southwest flew the planes without adhering to a September 2004 airworthiness directive requiring inspections of the aircraft fuselages for cracks.