Airline Finance News - North America

Airguide Online, Nov 27, 2006

Mesa Air Group, Go!

Mesa Air Group's Chairman and CEO Jonathan Ornstein's job was to accentuate the positive about a year that featured the controversial launch of Mesa's Hawaiian regional operation go!. Nov 22, 2006

Northwest Airlines

Northwest Airlines ground workers at Minneapolis-St. Paul International Airport staged a brief walkout yesterday to protest the hiring of nonunion contract workers to clean aircraft, part of NWA's effort to slash costs to emerge from bankruptcy. The protest reportedly involved 250 workers and lasted less than an hour. It is believed to be isolated and merely symbolic; the IAM union representing NWA ground workers agreed to the contract cleaners as part of a concessionary deal. The airline said the protest did not disrupt operations. Nov 22, 2006

Northwest Airlines

Northwest Airlines said on Wednesday that its operations were "running smoothly and normally" after a disruption that occurred when the airline shifted some work from union-represented aircraft cleaners to a third party at its hub airport in Minneapolis. The International Association of Machinists, which represents the workers, said the transition may have caused some operational delays but that there was no concerted job action by its members as had been reported by some media. An airline spokesman said the transition caused minor delays and the disruption has ended. The Wednesday before the US Thanksgiving holiday is one of the busiest travel days of the year. The transition of the cleaning duties to a third-party vendor had been agreed upon by the airline and the IAM as part of a cost-cutting measure by Northwest, which is restructuring in bankruptcy. Nov 22, 2006

US Airways

US Airways reminded SEC that its management team "began at America West Airlines, which has a history as an industry maverick...Since the merger with US Airways, the airline has continued to be a pro-consumer maverick [by reducing both business and leisure fares]. New Delta would continue to be a low-cost maverick." Nov 20, 2006

US Airways

US Airways said the combined carrier will use the Delta name and would have a domestic market share of 18.2% based on ASMs. "The Dept. of Justice has not challenged a merger in over 30 years where the leading firm has less than a 30% market share," the carrier said in the filing. It added that a projected $1.65 billion in synergies generated by the proposed merger "are real and can be achieved. The expected synergies should overcome any theoretical antitrust concerns about the merger."

Nov 20, 2006

US Airways, Delta Air Lines

US Airways has said a merger could provide annual savings of USD$1.65 billion and cut capacity by 10 percent, with labor cuts achieved through attrition and leaves. Nov 22, 2006

US Airways, Delta Air Lines

US Airways, Delta Air Lines merger also could be derailed by US Dept. of Justice antitrust officials, who blocked the proposed merger of the former US Airways and United Airlines on grounds that it was anticompetitive and likely would offer consumers diminished service for higher fares. In a filing Friday with the US SEC, US Airways argued that the domestic "airline industry will remain unconcentrated" after the merger and that the rise of LCCs since 2000 ensures robust competition. Nov 20, 2006