| December 3, 2008 | News for the commercial aviation industry |
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- Airlines focus on future at Credit Suisse conference
Major airline executives appeared eager to put 2008 behind them during presentations at the Credit Suisse Global Airline Conference in New York on Tuesday, focusing instead on the hope for renewed profits in 2009. Acknowledging the weaker demand caused by the worldwide economic crisis, several carriers said they planned further capacity reductions for 2009, on top of the deep cuts made this year. Delta Air Lines' announcement of "dramatic" cuts totaling up to 10% of domestic capacity dominated much of the day-after headlines, but many other companies made news, as well. The Wall Street Journal (tiered subscription model)
(12/3), CNNMoney.com/Dow Jones Newswires
(12/2), USA TODAY
(12/2)      
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AirTran to cut seats, maintain Florida focus: AirTran Airways will trim capacity by 3% to 7% next year as the discount carrier attempts to reverse its first annual loss since 1999. CEO Robert Fornaro said his airline would maintain a strong presence in Florida, a market where other carriers are shedding flights. Additionally, AirTran will take delivery of only two new planes next year, and no deliveries are scheduled for 2010. USA TODAY/The Associated Press
(12/2)
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Alaska Air to sell planes, reduce available seats: although December advance bookings are up 3% at Alaska Airlines, the carrier plans to shrink capacity by about 8% next year, while corporate sibling Horizon Air will cut about 9%. Alaska Air Group Vice President Brandon Pedersen said the company may sell as many as four jets as part of its downsizing plan. The Toronto Star
(12/3)
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American raises $200M, looks for $3.5B in fuel savings: With traffic falling faster than capacity, AMR Treasurer Beverly Goulet stressed that American Airlines "has a strong track record for dialing back capacity when we've thought it's been needed." Goulet also said the company has reached a $200 million sale-leaseback deal on its American Eagle turboprop fleet, and that fuel costs in 2009 should drop by $3.5 billion. The company expects to cut capacity by 6% next year. Bloomberg Businessweek/The Associated Press
(12/2)
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Continental modernizing fleet despite weaker traffic: Continental Airlines Treasurer Gerry Laderman said his company will take delivery of 30 new Boeing jets over the next two years, even as load factors on existing planes are slipping. Laderman said November capacity was down 7.3% compared to 2007, though he refused to make projections for 2009. Continental's international routes now account for about half of all seats, but high-profit premium traffic has been declining on those flights, he said. The Plain Dealer (Cleveland)
(12/3)
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JetBlue betting on Caribbean for growth: JetBlue Airways plans to grow its capacity in the Caribbean by 40% next year, following a 30% cut in its transcontinental business. Treasurer Mark Powers said full-year growth figures will be lower than expected -- no more than 2% -- and slow demand will continue into 2009. JetBlue's growth plans center on Fort Lauderdale-Hollywood International Airport, where the carrier will expand from four gates to seven. Bloomberg Businessweek/The Associated Press
(12/2)
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Southwest announces smaller-than-expected capacity cuts: Southwest Airlines plans to trim capacity, maintain current fleet size and reduce its fuel hedges in 2009, according to CEO Gary Kelly. Kelly said capacity reductions would be less than previously announced, totaling no more than 5%. With 13 new Boeing 737s scheduled for delivery next year, Kelly did not specify how the airline would "manage" its fleet to maintain current levels. USA TODAY/The Associated Press
(12/2)
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US Airways sees uncertain demand, rising auxiliary revenues: "December looks better than November, and January looks better than December," US Airways CEO Doug Parker said of demand for the coming months, though he stressed that the outlook remained uncertain. He also said a $15 fee for passengers' first checked bag is helping to boost revenue by $400 million to $500 million while improving bag-handling metrics by better than 20%. CNNMoney.com/The Associated Press
(12/2)
| Energy Bulletin |  | |
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- Fuel prices are source of cheer at airline conference
The price of fuel was a recurring theme in Tuesday's presentations at the Credit Suisse airline investor conference -- and most of the news was good. With oil prices in the $50 range, airlines expect to save billions of dollars in fuel costs next year. "The drop-off we've seen in oil prices is poised to more than offset the impact from declining demand," said UAL Corp. Chief Financial Officer Kathryn Mikells. TheStreet.com
(12/2)
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ATA Fuel SmartStat
 Check the latest weekly average jet fuel price by region, courtesy of Oil Price Information Service. For historical data or for more information about energy-related matters, please visit the energy/fuel section of the ATA Web site.
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| The Buzz(CORPORATE ANNOUNCEMENTS)
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| Regulatory Update | | |
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- DOT may allow passengers to sue airlines in state courts
The Transportation Department is proposing a rule that would make a carrier's contract of carriage govern how airlines treat their passengers when they are delayed on the tarmac. Many carriers have already developed delay contingency plans. But if customer service plans are defined as the DOT proposes, the rule would effectively enable passengers to sue the carrier in a state court for breach of contract. The DOT is taking comments about the proposal. Travel Weekly
(12/1)
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| Industry Trends | | |
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- Automotive icon getting out of corporate aviation
GM executives may be flying commercial after the beleaguered car maker announced yesterday it was selling its fleet of corporate jets. "Due to significant cutbacks over the past months," the company said in a statement, "GM travel volume no longer justifies a dedicated corporate aircraft operation." After it sells four aircraft, GM plans to end its $40,000-a-month lease at Detroit Metro Airport. Detroit Free Press
(12/2)
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 Avionics/Electrical Engineer | Southwest Airlines | Dallas ,Texas |
| Director Crew Services | JetBlue Airways | Forest Hills, New York |
| Director of Quality/Chief Inspector | Southwest airlines | Dallas Texas |
| Division Controller | Horizon Air | Portland or Seattle |
| Airline Reliability Analyst | World Airways | Peachtree City, GA |
| Aircraft Maintenance Controller | World Airways | Peachtree City, GA |
| Permanent, Seasonal and Rover A&P Mechanics | Sun Country Airlines | MSP |
| Senior Financial Analyst (Flight) | World Airways | Peachtree City, Georgia |
| Senior Analyst, Revenue Management Technology | Alaska Airlines | Seattle |
| Director, Aircraft Contracts | Company Confidential | North America |
| Account Executive - Aviation | SmartBrief | Washington, DC |
| Paint Manager | Leading Edge Aviation Services | Texas, Mississippi, California |
| Chief Inspector | Leading Edge Aviation Services, Inc. | Texas, Mississippi, California |
| Airline Control Center Specialist I | Air Transport Association | Herndon, VA |
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| About ATA |
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Founded in 1936, the Air Transport Association of America, Inc. (ATA) is the nation's oldest and largest airline trade association, representing the leading U.S. airlines. ATA airline members and their affiliates transport more than 90
percent of U.S. airline passenger and cargo traffic. Headquartered in Washington, D.C., the association's fundamental purpose is to foster a business and regulatory environment that ensures safe and secure air transportation and
permits U.S. airlines to flourish, stimulating economic growth locally, nationally and internationally. For additional industry information, visit
www.airlines.org.
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