Airline Finance News - North America.


New York (AirGuideBusiness - Airline Finance News North America) Dec 18, 2012

Aerospace Industries Association, University of Massachusetts AIA leader criticizes academic study on job creation. Marion C. Blakey, the president and CEO of the Aerospace Industries Association, criticized a study from the University of Massachusetts that said the defense sector is not as good at job creation as other sectors. "It takes an ivory tower to come up with a study like that," Blakey said. The study theorized that USD1 billion spent on the military would create fewer jobs than USD1 billion spent elsewhere. Blakely said sequestration could lead to unintended consequences. "If USD1 trillion is cut from the defense budget, there will be two results," writes Blakey. "America's national security will be dangerously weakened. And one million American workers could find themselves unemployed." Dec 15, 2011

Airbus, Boeing Airbus, Boeing celebrate 7,000th deliveries this week. Airbus and Boeing are celebrating delivery milestones of 7,000 this week. Airbus will deliver its 7,000th aircraft, while Boeing will deliver its 7,000th 737. US Airways will receive the Airbus A321, while FlyDubai will receive the Boeing 737-800. Dec 15, 2011

All Nippon Airways, Boeing Boeing delays delivery of third 787 to All Nippon Airways. Boeing has delayed delivery of its third 787 Dreamliner to launch customer All Nippon Airways in Japan. ANA was scheduled to receive its third 787 in November, but delivery has been pushed back to the end of this month. The airline has altered some of its international routes to accommodate the delay. Dec 16, 2011

American Airlines AMR rivals may target company for takeover, CEO says. Tom Horton, the CEO of AMR Corp., says the company plans to renegotiate debt and aircraft leases for American Airlines while in bankruptcy. Horton also acknowledged that AMR may be a takeover target for some of its rivals. "And as we've seen before in this situation, there may be opportunists who wish to acquire our company while we are in this situation," he said. Dec 16, 2011

American Airlines AMR shares rise 12% on Wednesday. AMR Corp. shares climbed 12% in trading Wednesday to close at 69 cents. While the shares will have no value after the company's bankruptcy, short-term traders can still make a profit. Meanwhile, AMR's debt was set at 23.5 cents on the dollar. Dec 16, 2011

American Airlines Creditors want American Airlines to become stronger, lawyer says. American Airlines and its creditors appeared in bankruptcy court Tuesday. AMR Corp., the carrier's parent company, filed for bankruptcy last month. A lawyer representing unsecured creditors said the creditors want American Airlines to emerge from bankruptcy as a stronger company. Dec 14, 2011

American Airlines American, creditors are scheduled to appear at bankruptcy hearing. Creditors were to join American Airlines for a court hearing in New York this week. AMR Corp., the parent company of American Airlines, filed for bankruptcy in November. The bankruptcy judge planned to hear three procedural motions about the case. Dec 13, 2011

American Airlines American Airlines could replace aging fleet, analysts say. The decision by American Airlines' parent, AMR Corp., to file for bankruptcy could allow the carrier to replace its older fleet with fuel-efficient aircraft, analysts say. American has placed an order for 58 Boeing 787 Dreamliners and 10 Boeing 777-300ERs, which both burn less fuel than American's fleet of aging 767s. Dec 12, 2011

American Airlines Investors look for bargains with discounted AMR bonds. Investors are looking into discounted bonds for AMR Corp., the parent company of American Airlines. However, some analysts sounded a cautionary note for bargain hunters. "What happens in bankruptcy is unpredictable,O said analyst Matt Fabian, managing director at Municipal Market Advisors. "You don't know how the stakeholders will interact." Dec 12, 2011

American Airlines Union for American Airlines mechanics meets in Oklahoma. A union representing American Airlines mechanics in Tulsa, Okla., met with employees over the weekend to discuss a strategy for the carrier's bankruptcy. "There's a lot of questions that will not be answered except by the bankruptcy court itself," said maintenance chairman John Hewitt. The union held an informational meeting for members Saturday. Dec 12, 2011

American Airlines, American Eagle Bankruptcy filing could allow AMR to reshuffle Eagle fleet. The bankruptcy filing of AMR Corp. may give the company an opportunity to end leases for jets with 50 or fewer seats on American Eagle. "If you're going to go into Chapter 11, you may as well fix what's broke," said Jeff Kauffman, an analyst for Sterne, Agee & Leach Inc. "And what's broken is the Eagle product." American Eagle flies a fleet of 299 jets, with 72% of the fleet featuring 50 or fewer seats. Dec 12, 2011

American Airlines, Delta Air Lines AMR bankruptcy may aid industry consolidation, Delta says. Capacity cuts such as those brought about by the Chapter 11 filing of AMR Corp. may help bring about further consolidation within the airline industry, which would help airlines control rates and cut costs, said Delta Air Lines CEO Richard Anderson. "We should expect that consolidation around the world will continue," he said. Dec 16, 2011

American Airlines, Oneworld American Airlines' Tom Horton Elected oneworld Chairman. The Governing Board of oneworld[umlaut], the premier global airline alliance, has elected American Airlines Chairman, President and Chief Executive Tom Horton as its Chairman. He takes on the role from Gerard Arpey , whom he succeeded at the helm of the alliance's US partner late last month following Mr Arpey's decision to retire from the carrier. Tom Horton 's nomination was made at the oneworld Governing Board's final meeting of the year, held in New York , where the alliance's headquarters has been based since June. He will act as "first among equals" of the chief executives of the group's member airlines, leading oneworld as the alliance undergoes its biggest expansion in five years with the addition in 2012 of airberlin, Kingfisher Airlines and Malaysia Airlines. oneworld CEO Bruce Ashby said: "Tom offered to hand over the baton as oneworld Chairman from American Airlines to one of our other airlines but the unanimous view was that the alliance would benefit greatly at this time from the continuity in our leadership that Tom represents [ETH] while at the same time underlining the commitment ofoneworld to American while it undergoes its restructuring. "We appreciate Tom agreeing to take on this role at this time. He worked hand-in-glove in alliance matters with Gerard Arpey during Gerard's period of tenure as oneworld Chairman and has played a pivotal role in strengthening our alliance through the significant deepening of cooperation between American and so many of our other member airlines in recent years. "We thank Gerard sincerely for his leadership of oneworld during the past three great years of progress for our group. We are fortunate to have in Tom a man with the vision, diplomacy, determination and overall capabilities to lead us forward on our journey to establish oneworld as the first choice alliance for frequent global travellers the world over." Dec 15, 2011

American Airlines, Savills PLC Exclusive: American Airlines' USD30 million London town house. Buried deep in American Airlines' Chapter 11 bankruptcy filing is a striking asset -- a town house in one of London's most expensive residential streets that property experts say could be worth up to USD30 million. The five-bedroom house in London's high-end Kensington district is a throwback to the airline's expansion two decades ago and stands a 10 minute walk from the former home of Princess Diana, with gentry and diplomats as neighbors. UK regulatory filings show the house has been used as a residence for senior executives, including the current chairman and chief executive Thomas Horton, since the airline bought it in the early 1990s. Listed as "London Residence LON6526," the five-floor house is one of eight owned properties declared by parent company AMR Corp when it asked for protection from creditors on November 30, sagging under USD30 billion of liabilities. The plush residence in Cottesmore Gardens -- recently named Britain's 10th most expensive address by property firm Zoopla --could become a thorn in the airline's side as it fights its way through bankruptcy. Corporate restructuring usually involves sacrifices by staff, retirees and creditors. Robert Mann, an airline consultant with RW Mann & Co, who is a former fleet planning executive at AMR, said the ownership of the house is far from the biggest problem the airline is facing but added it would raise eyebrows and should probably be sold. "As part of an overall debt-clearing exercise, yes it probably should be sold and leased back if they really want to stay there. If you can realize 17 million bucks, you ought to do it." Confirming ownership of the house, American Airlines said it is used by the senior official in charge of its international business "and for corporate functions from time to time." Contacted last week, it initially declined to say whether it planned to keep the house, but in response to further Reuters queries said its ownership of the property was being reviewed. "AMR can confirm that it's a property it purchased in the 1990s when property values were lower," the airline said. "However, as we work through our Chapter 11 reorganization, we are focused on achieving a competitive cost and debt structure and will, of course, review our use and ownership of this and all our real estate as part of that process." A union representing 30,000 workers at American Airlines and American Eagle expressed outrage over the property. "In the current economic downturn, many Americans have lost their houses. In this bankruptcy, AMR's executives should...

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