Posts Tagged ‘american airlines’

More people expected to travel this Christmas

Friday, December 18th, 2009

The largest motoring organization in the U.S. has predicted that more people will be travelling over the Christmas period this year than did so in 2008. The AAA predicts that around eighty-eight million people will make a journey of more than fifty miles over the Christmas period between December 23rd and January 3rd. The organization has pointed out that this will be more than double the amount of people who travelled home for Thanksgiving this year.

AAA says that it predicts that those travelling home by car will be 4.4 percent up on last year. It also says that the amount of people travelling by air will be up on the same period last year. However James C. May, president and CEO of the Air Transport Authority is less optimistic and said that he predicts airline capacity to be down by around 2.9 percent when compared with 2008’s figures. To cope with the effects of a devastating recession many airlines will have reduced capacity on their aircraft meaning that flights are likely to be a lot more crowded this Christmas. American Airlines’ spokesman Tim Smith said that aircraft will be fuller this year than they were last year, especially when passengers returning from Christmas run into passengers flying out for the New Year.

Whereas the airlines and car hire firms are predicted to increase their prices slightly over the festive period, the nation’s hotels are expected to lower their room rates in an effort to attract customers.

American Airlines expects drop in traffic

Monday, September 21st, 2009

The world’s largest airline, American Airlines, announced late last week that it expects September traffic to drop by 16.4 percent from August, as capacity drops by 9.7 percent.

Carriers generally reduce their schedule after the Labour Day long weekend, and other airlines have been making cuts too.  This year’s autumn schedules have been significantly lighter, as airlines try to match consumer demand.

American says that it expects third quarter unit revenue — revenue divided by capacity — to drop 14.5 percent to 15.5 percent compared with the same period last year.  The whole operation, including regional airlines, is expected to fall 14.3 percent to 15.3 percent.

Meanwhile, American is anticipating costs to rise from August to September, however, not as much as previously expected.  Excluding fuel and special items, the costs are expected to rise from 8.43 cents per available seat mile in August to 9.08 in September.

The airline has said that the increase is due to the reduced capacity, pension costs and the costs from efforts to improve reliability.  The costs would have risen even higher if not for cuts in smaller passenger-related expenses, foreign exchange and other cost-reduction strategies.

Airline financial analyst Hunter Keay wrote in a note that American’s drop in passenger revenue was less sever than competitors, due to the fact that the airline did not expand into new international markets last year where the recession has tightly gripped the air travel industry.

American Airlines crew indicted for drug ring

Thursday, September 17th, 2009

US authorities have indicted 23 people in Puerto Rico including American Airlines employees accused of smuggling cocaine onto passenger aircraft and distributing it across the United States, according to the Justice Department.

The four count indictment states that the defendants participated in a conspiracy to possess with intent to distribute more than 9,000 kilograms of cocaine and smuggle them aboard American Airlines flights, the department said in a statement earlier this week.

The trafficking ring started operating in around 1999 when Wilfredo Rodriquez Rosado, one of the defendants recruited and organised a group of American Airlines employees to ensure that suitcases were loaded with kilograms of cocaine and smuggled about the airline’s aircraft and transported to different cities around the US.

It is said that at least eight of those indicted were American Airlines employees.

Both Puerto Rican and agents from the US Drug Enforcement Agency and FBI teamed up to investigate and arrest those involved.

The defendants face fines of up to four million dollars and up to life in prison if found guilty.

The use of commercial airlines to carry illegal drugs in and out of the US territory of Puerto Rico created a serious threat to the US, said Attorney for the District of Puerto Rico, Rosa Emilia Rodriguez-Velez.

US airlines race to introduce inflight Wi-Fi

Tuesday, September 15th, 2009

The race is on among the largest US airlines to implement the circuitry that gives passengers’ access to Wi-Fi while flying at 30,000 feet above the ground.

US carrier Southwest announced last month that it was in the process of installing satellite-enabled broadband to its entire fleet, which plans to be ready by early next year.  The airline has yet to announce a pricing plan for the service.

Last month, Delta, the world’s largest airline had announced it has installed Wi-Fi on more than 70 per cent of its domestic fleet, and American Airlines announced that the service has been on 100 MD-80 aircraft with a further 50 by the end of this year.

The move by the airlines to get Wi-Fi up and running comes following a survey by the Wi-Fi industry that suggests that most business travellers will opt for an airline with Wi-Fi services over an airline that offers meals, movies or a convenient arrival time.

The survey, commissioned by the Wi-Fi Alliance, found that 76 per cent of business travellers who participated in the survey said that they would choose an airline based on internet connectivity.

Over 70 per cent of those surveyed would rather an airline with Wi-Fi over one that provided a meal service, and 55 per cent said they would shift their flight by a day if it meant being connected to the internet.

However airline statistics show that passengers are not using the onboard Wi-Fi in high proportions.

Virgin America, the first U.S airline to offer Wi-Fi throughout its entire fleet, 10 to 15 per cent of passengers pay for the service, with 25 per cent using the service on transcontinental flights.

Most airlines with the internet service offer a pricing structure that increases according to the length of the flight.  One provider charges US$5.95 for flights over 90 minutes or $12.95 for flights over three hours.

On the other hand, JetBlue plans to offer passengers the convenience of free e-mail and instant messaging services on 20 of its Airbus A320 aircraft beginning next year.

American may invest in Japan Airlines

Monday, September 14th, 2009

American Airlines has said that it may purchase equity in Japan Airlines in order to prop up the ally following forecasts of its fourth loss in five years.

American, the world’s second largest carrier, also plans to expand code-sharing with Japan Airlines, its Oneworld alliance partner, according to sources.

The airline has received three government bailouts since 2001 with the most recent in June.   The company has also been in talks on possible stake sales to Delta and Air France-KLM.   It is reported that the carrier is planning to seek 250 billion yet ($2.8 billion) to rebuild its operations.

An analyst at Shinsei Securities believes that the government doesn’t care about who gives the airline money, but Japan Air Lines would rather receive the money from a non-competing airline.

American spokesman Charley Wilson declined to comment on reports of an investment in Japan Airlines.

Code-sharing with the Japanese airline would allow American or Delta more cities within Japan and the ability to sell Japan Air flights direct to customers.  Alliances such as SkyTeam and Oneworld let airlines expand their networks by pulling in more passengers and sharing the revenue.

Japan Airlines recorded a 99 billion yet loss in the first quarter of this year, the most in the last 6 years as the business and leisure travel industry has suffered the most since World War II.

American Airlines cleared over racism claims

Monday, September 7th, 2009

A US federal judge has cleared American Airlines of wrongdoing in a lawsuit by six Iraqi-American men who claim their nationality was the reason behind the cancellation of a flight.

US District Judge Paul Borman concluded the decision by the captain to return a flight to the gate was not arbitrary and capricious.

The six men, residents of Michigan, were employees of a security firm and were returning from San Diego following a training session with US Military personal.

The men, passengers aboard flight 590, claimed the flight crew wrongly decided they were a security risk based on racial profiling through discrimination based on race and national origin.

In Borman’s judgement, he claimed that one of the men covered his face with a blanked and stared menacingly at flight attendants during safety instructions.

He said that the unusual actions by the passengers reasonably concerned the flight attendants and justified their calls to the pilot and justified his decision to return to the gate.

The judge said the flight was rescheduled for the following morning and other passengers were boarded and flew to Chicago without incident.

American Airlines to cull 921 jobs

Thursday, September 3rd, 2009

American Airlines announced earlier this week that it plans to cut 921 cabin crew positions as part of a previously announced capacity reduction as the airline braves the current downturn in business and leisure travel.

The 921 jobs equate to about 6 percent of the total the total American Airlines cabin crew and include 449 positions that were eliminated voluntarily.  The job cuts will take place from October 1.

The airline had earlier predicted job cuts of around 1,200 in June this year.

The airline industry has been in downsizing mode for all of this year, hit with volatile fuel costs and weak demand due to the current recession.

Amercian Airlines said earlier in June that it would cut capacity by almost 8 percent this year.  Other carriers have followed suit, including Delta Air Lines, which said it plans to cut total capacity by 10 percent with reductions beginning in September.

The airline also warned on Monday that employees in airport service positions could also be cut due to declines and shifts in capacity during the winter travel season.

Continental to charge for additional baggage on international flights

Monday, August 31st, 2009

Major US airline, Continental, has announced this week that it would charge some economy class passengers travelling on international flights US$50 to check a second bag, joining several other carriers that impose the fee.

The airline said the fee would affect travellers flying between Europe and the US, including Puerto Rico and the US Virgin Islands; however the first bag will remain free.

The new fee will apply to tickets purchased after Thursday for travel on or after September 15.

Upper-tier members of the airlines frequent flyer programme or those in first or business class, full-fare economy ticketholders and passengers with Presidential Plus credit cards will not be required to pay the fee.  Military personnel and their families travelling on official orders will also be exempt from paying the second-bag fee.

Continental, the fourth largest airline in the US, said customers would receive a $5 discount if they check in and pay for bags on its website.

In the past week, a string of airlines have introduced a $50 charge for checking in a second bag, including American Airlines, Delta and US Airways.

Thanks to AP for the above quotes.  For more information on this article visit their website.

Southwest to offer Wi-Fi

Monday, August 24th, 2009

Southwest Airlines has announced that it will be providing Wi-Fi access onboard all flights.

The airline has teamed up with Wi-Fi service provider Row 44 to roll out the program by the end of the first quarter of 2010.

Southwest have been testing the Wi-Fi service on four aircraft since the beginning of this year, with customers using the service for many applications including email and streaming video

The airline has been testing a variety of price points and will continue testing prices until the end of 2009.

The move will bring the number of airlines offering onboard Wi-Fi to three, along with American Airlines and Delta Airlines.

Thanks to Associated Press for the above quotes.  For more information on this article visit their website.

Singer to sue American Airlines for racist comments, stabbing

Thursday, August 6th, 2009

A Brazilian singer has begun a lawsuit against American Airlines flight attendants who allegedly made racist remarks at him and stabbed his producer with a pen on a flight from New York to his home country.

His wife, Dudu Nobre filed the lawsuit against the airline last week seeking more than $4 million in compensation.

Nobre claims that one flight attendant repeatedly called him a ‘monkey in Portuguese and continuously made ‘monkey-like’; sounds during the flight last year.

The singer also claimed in the lawsuit that he was threatened by the flight attendant, and that his producer was stabbed with a pen whilst disembarking the aircraft.

American Airlines did not comment on the matter.

Thanks to MSNBC for the above quotes.