Airline Finance News - North America.

 
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New York (AirGuideBusiness - Airline Finance News North America) Apr 29, 2012

Air Canada Government appoints arbitrators for Air Canada, union dispute. The Canadian government has appointed arbitrators for Air Canada and two unions. The pilots and machinists unions at Air Canada have organized wildcat strikes that have hurt operations. Lisa Raitt, the country's labor minister, urged the two sides to come to an agreement on labor contracts through the arbitration. Apr 26, 2012

Air Canada Air Canada Reports April Load Factor. For the month of April, Air Canada reported a system load factor of 83.0 per cent, versus 81.9 per cent in April 2011, an increase of 1.1 percentage points. System traffic increased 1.0 per cent on a system-wide capacity decrease of 0.3 per cent. Air Canada reports traffic results on a system-wide basis, including regional airlines from which Air Canada purchases capacity. "For the month of April, Air Canada reported a system load factor of 83.0 per cent, an increase of 1.1 percentage points from the previous year," said Calin Rovinescu, President and Chief Executive Officer. "Overall, traffic grew system wide by 1 per cent, led by traffic growth in our domestic Canada and Pacific markets of 3.3 and 5.1 per cent, respectively. These gains were achieved despite a reduction in capacity of 0.3 per cent as a result of disruption to operations caused by job action by a number of unionized employees and the rescheduling of maintenance activities following the sudden closure by Aveos of its facilities. We are focused on maintaining the loyalty and confidence of our customers, and I would like to thank those employees who worked doubly hard during the month to get our customers to their destination safely." Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents. Canada's flag carrier is the 15th largest commercial airline in the world and in 2011 served more than 33 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 57 destinations in the United States and 63 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,290 destinations in 189 countries. In 2011, Air Canada was ranked Best International Airline in North America in a worldwide survey of more than 18 million airline passengers conducted by independent research firm Skytrax. Apr 26, 2012

Air Canada Labour Minister Appoints Federal Arbitrators. Air Canada said it has been advised by the Federal Minister of Labour, the Honourable Lisa Raitt, of the appointment of arbitrators in accordance with Bill C-33, Protecting Air Service Act. The Minister has appointed Mr. Douglas Stanley to act as arbitrator between Air Canada and ACPA representing the airline's 3,000 pilots, and Mr. Michel Picher to act as arbitrator between Air Canada and the IAMAW representing the airline's 8,600 mechanics, baggage handlers and cargo agents. Both appointments are effective immediately. On April 19, 2012, Air Canada announced it would enter into a 10-day negotiation period with ACPA to begin following the appointment of an arbitrator by the Minister of Labour. On April 27, 2012, Air Canada announced a similar agreement for a 10-day negotiation period with the IAMAW. Air Canada, ACPA, and the IAMAW will have no further comments during the course of these negotiations. Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents. Canada's flag carrier is the 15th largest commercial airline in the world and in 2011 served more than 33 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 57 destinations in the United States and 63 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,290 destinations in 189 countries. In 2011, Air Canada was ranked Best International Airline in North America in a worldwide survey of more than 18 million airline passengers conducted by independent research firm Skytrax. Air Canada's public communications may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, employee and labour relations, currency exchange and interest rates, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada's public disclosure file available at www.sedar.com. Any forward-looking statements contained in this news release represent Air Canada's expectations as of date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations. Apr 25, 2012

Air Canada Air Canada Labor Dispute Goes to Government Arbitrators. Air Canada, still facing a possible strike threat by its 3,000 pilots and 8,600 mechanics, baggage handlers and cargo agents, said it has been advised by Canadian Federal Minister of Labor Lisa Raitt of the appointment of arbitrators in accordance with CanadaOs Bill C-33, Protecting Air Service Act. The minister has named Douglas Stanley to act as arbitrator between Air Canada and ACPA representing the pilots, and Mr. Michel Picher to act as arbitrator between Air Canada and the IAMAW representing the mechanics, baggage handlers and cargo agents. Both appointments are effective immediately. On April 19, Air Canada said it would enter into a 10-day negotiation period with ACPA to begin following the appointment of an arbitrator by the Minister of Labor. On April 27, Air Canada announced a similar agreement for a 10-day negotiation period with the IAMAW. Air Canada, ACPA, and the IAMAW said they would have no further comments during the course of the talks. Apr 25, 2012

Air Transat Transat A.T. Inc. - Air Transat and its pilots reach a pact that extends and amends the collective agreement. Air Transat and its pilots, represented by the Air Line Pilots Association (ALPA), have reached a pact that amends the last collective agreement, ratified October 5, 2010. In the wake of initiatives adopted by Transat last fall in order to get back to profitability, the agreement calls for a deferment of planned wage increases in exchange for a lump-sum payment due upon expiry of the collective agreement. This lump-sum payment is conditional on the attainment of certain financial targets, and amounts payable as part of the incentive plan will be deducted. In addition, the collective agreement is extended until April 30, 2015. "This agreement was negotiated with respect and in a climate of openness, and it reflects the constructive dialogue that Air Transat maintains with its employees and union representatives," Transat A.T. Inc. President and Chief Executive Officer Jean-Marc Eustache. Apr 24, 2012

American Airlines American streamlines management, cuts jobs. American Airlines (AA) parent AMR Corp., which is restructuring via the Chapter 11 bankruptcy process, on Tuesday announced it will eliminate five manager positions as part of the third phase of restructuring. AMR said the cuts, combined with the previous organizational changes, represents a 20% reduction in the companyOs most senior leadership positions. AMR chairman and CEO Tom Horton said the organization redesign Opurposefully began at the top, and today's changes will further advance the company's restructuring objectives and bring us one step closer to ensuring American has the leanest, most capable and effective leadership team in the industry." AMR said it will consolidate or modify positions, which Oillustrate elements of the companyOs transformation,O such as combining the positions of VP-New York and international from previously separate positions Oto bring a distinct focus on American's New York franchise, its trans-Atlantic and trans-Pacific businesses, and oneworld alliance partners.O SVP-human resources Jeff Brundage has been replaced by Denise Lynn, who will become SVP-people. AMR did not give details of the other positions affected by the restructuring. Apr 25, 2012

American Airlines American Airlines pleads case for lower labor costs. American Airlines told bankruptcy court this week that it has to reduce labor costs to stay afloat. "American has the highest labor costs in an intensely competitive industry," said attorney Jack Gallagher. "It's that simple. We need to fix this business." American wants to cut $1.25 billion from its annual labor bill. Meanwhile, in a letter to employees, American Airlines CEO Tom Horton deflected US Airways' interest in a possible merger and cautioned employees that "there is no easy path back to renewal and growth and industry...

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