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American Airlines Announces Additional Schedule Changes in Response to COVID-19

March 15, 2020 /

American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:

  • Reduce international capacity by 75% year over year — from March 16 to May 6
  • Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
  • Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled

In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.

International Route Changes

By region, the new schedule changes include the following: 

Asia, effective March 16 

  • American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT 

Australia and New Zealand, effective March 16

  • Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
  • Suspending service from LAX to Sydney (SYD) effective March 16

Europe, phased suspension 

  • American will continue to operate one flight daily from DFW to LHR and MIA to LHR
  • Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
  • LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
  • Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand 

South America, effective March 16 

  • Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
  • Suspending service from DFW, JFK and MIA to São Paulo (GRU)
  • Suspending service from DFW and MIA to:
    • Chile: Santiago (SCL)
    • Colombia: Bogota (BOG)
    • Ecuador: Guayaquil (GYE) and Quito (UIO)
    • Peru: Lima (LIM)
  • Suspending service from MIA to:
    • Brazil: Brasilia (BSB) and Manaus (MAO)
    • Colombia: Barranquilla (BAQ), Cartagena (CTG), Cali (CLO), Medellin (MDE) and Pereira (PEI)

These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.

New US Airline to make Flying a Breeze

February 10, 2020 /

Written by Chris Frame

Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.

Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.

With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.

Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.

Click the link below for the full story!

https://australianaviation.com.au/2020/02/new-us-airline-to-make-flying-a-breeze/

United Buys Arizona Flight Academy to Feed Pilot Pipeline

February 5, 2020 /

CHICAGO, Feb 5 (Reuters) – United Airlines Holdings Inc announced on Wednesday an agreement to purchase a flight training academy in Phoenix in a move aimed at bolstering its pilot pipeline as the industry faces a global shortage.

To address a tight U.S. labor market created by years of slow pilot hiring, a wave of pending retirements and new rules that in 2013 increased the number of required training hours, U.S. airlines have been taking steps to attract young aviators.

Chicago-based United, which is looking to hire more than 10,000 pilots by 2029, will be the first major U.S. carrier to run its own academy.

“We think this program will alleviate any shortage we would have had and that’s its purpose,” Curtis Brunjes, United’s managing director of pilot strategy, told reporters.

The school, currently operating as Westwind School of Aeronautics, will be renamed United Aviate Academy in September.

United expects approximately 300 graduates in 2021 and wants to expand capacity to accommodate 500 graduates per year, Brunjes said, noting that the academy is among the airline’s most aggressive steps on pilot hiring since the 1960s.

One area of focus at the school will be training for loss of control incidents, a leading cause of plane disasters, that goes beyond the current U.S. Federal Aviation Administration requirements.

Some of the enrollees will come from Aviate, a recruitment program that United launched last year offering students and pilots from 15 schools and regional carriers a path to a job at the major.

American Airlines Group Inc and Delta Air lines Inc have similar career programs.

United – which plans to design the academy’s curriculum in concert with the Air Line Pilots Association, International – is offering financing options for training and will also launch a scholarship program focused on women and minorities.

It did not disclose financial details of the purchase, with Brunjes saying only that the company paid “more than asset value, but not hugely more.”

The financial benefit down the line will be ensuring that regional carriers, which operate a significant amount of U.S. airlines’ domestic capacity at a lower cost, have enough pilots to fly the routes that United wants to contract.

In recent years, regional carriers have had to double salaries and offer sign-on bonuses to attract pilots to the field, driving up costs.

Boeing Co expects 800,000 new pilots will be needed over the next 20 years to meet growing demand for air travel.

(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)

Delta, American Suspend All China Flights as U.S. Government Takes Action

January 31, 2020 /

WASHINGTON/CHICAGO (Reuters) – Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL> decided on Friday to temporarily suspend all remaining U.S.-China flights after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.

U.S. officials were due to hold a call with airlines later on Friday to discuss the Chinese flights. Some airline officials worried that if they did not voluntarily halt flights it would prompt the Trump administration to take formal action, potentially complicating any subsequent flight resumption.

The United States told citizens on Thursday not to travel to China due to the epidemic that has infected nearly 10,000 people and been declared a global emergency.

Pilots and flight attendants have been demanding airlines stop flights to the country, with American Airlines’ pilots filing a lawsuit on Thursday seeking an immediate halt.

“The decision to file a lawsuit was made out of concern for the safety of our pilots,” said Dennis Tajer, a spokesman for the Allied Pilots Association which represents American’s pilots.

As of Thursday United Airlines Holdings Inc <UAL> was still planning to operate some flights from San Francisco, even after its pilots union told its members they would be allowed to drop their trip without pay if they were concerned about flying to the country.

Delta and American had both announced lighter schedules to China earlier this week.

On Friday, American said operations to and from China would be halted starting on Friday through March 27. The carrier will continue to fly to Hong Kong.

Delta said its last China-bound flight departing the United States will leave on Monday, Feb. 3, with the last U.S. return flight departing China on Feb. 5.

The Delta suspension is set to last through April 30.

U.S. airline shares have posted heavy losses this week on concerns of the financial impact of the virus.

Other airlines that have stopped their flights to mainland China include Air France KLM SA <AFLYY>, British Airways <ICAGY>, Germany’s Lufthansa <DLAKY> and Virgin Atlantic.

Major Chinese carriers were still operating flights to and from the United States as of Friday.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Nick Zieminski and Tom Brown)

FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.

United Airlines Suspends Some Flights to China as Demand Drops Over Virus Fears

January 28, 2020 /

CHICAGO (Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it was suspending some flights between the United States and Beijing, Hong Kong and Shanghai between Feb. 1 and Feb. 8 due to a “significant decline in demand” as the new coronavirus spreads.

“We will continue to monitor the situation as it develops and will adjust our schedule as needed,” United said in a statement.

The coronavirus that originated in Wuhan, China has killed 106 people in the Asian country and spread across the world, rattling financial markets.

United’s suspension affects a total of 24 flights.

The other two U.S. airlines that fly to China, Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL>, said they had not reduced their flights at this time but were closely monitoring the situation.

(Reporting by Tracy Rucinski; Editing by Chris Reese and Bill Berkrot)

Boeing Delays 777X First Test Flight Due to Bad Weather

January 22, 2020 /
The folding wingtip of an unpainted 777X is pictured at Boeing’s facility in Everett

(Reuters) – Boeing Co <BA> said on Wednesday it was delaying 777X airplane’s first test flight, which was scheduled to take place on Thursday, due to bad weather.

Boeing said it was currently assessing the possibility of conducting the test flight on Friday.

(Reporting by Rama Venkat in Bengaluru and Tracy Rucinski in Chicago; Editing by Anil D’Silva)

Boeing’s New CEO Orders Rethink on Key Jetliner Project

January 22, 2020 /

LONDON/CHICAGO (Reuters) – Boeing Co’s new chief executive has sent the aerospace giant back to the drawing board on proposals for a new mid-market aircraft, effectively shelving in their current form plans worth $15 billion-$20 billion that had been overtaken by the 737 MAX crisis.

A decision on whether to launch a New Midsize Airplane (NMA) seating 220-270 passengers, which seemed imminent barely a year ago, had already been postponed as Boeing gave all its attention to the grounding of the smaller 737 MAX after two fatal crashes.

But days after taking the helm with a mandate to lift Boeing out of its 10-month-old reputational crisis, Chief Executive Dave Calhoun said the competitive playing field had changed.

“Since the first clean sheet of paper was taken to it, things have changed a bit … the competitive playing field is a little different,” he told journalists on a conference call on Wednesday.

“We’re going to start with a clean sheet of paper again; I’m looking forward to that,” Calhoun said.

He also spoke of a fresh approach to the market.

A Boeing spokesman said Calhoun had ordered up a new study on what kind of aircraft was needed. New aircraft typically take 6-7 years or more to bring to market once a decision is made, though Boeing aims to shorten that in part through digital technology and new business models designed around the NMA.

Calhoun “has asked the team to do an assessment of the future market and what kind of airplane is needed to meet the future market,” spokesman Gordon Johndroe said.

Noting that the original assessments on the NMA were made about two and a half years ago, he said the new study would “build upon what has been learned … in design and production.”

In further evidence of a change of pace, people familiar with the matter said a meeting between Boeing and a major potential supplier, originally scheduled for next week, had been abruptly cancelled with no new date set.

That contrasts with the approach just weeks ago when Boeing was still presenting new details of the NMA to some airlines, including a working logo – “theNMA” – and details of an “advanced composite” structure, according to a slide seen by Reuters.

The NMA had been designed to address a slender gap between single-aisle workhorse jets like the 737 MAX and long-haul wide-body jets like the 787.

But most of the effort revolved around a new production system designed not only to support the NMA but to lay the groundwork for the next single-aisle aircraft after the 737 MAX.

Calhoun said he expected the MAX, whose return to service was delayed again earlier this week, to resume its previous place in the market and remain in service for a generation.

Traditionally toe-to toe-with Europe’s Airbus SE, Boeing has fallen behind in sales for the largest category of single-aisle planes, such as the 200-240-seat Airbus A321neo, which overlaps with the niche being targeted by the NMA.

By delaying a decision on the NMA, Boeing already risked losing the sweetest part of the market, especially after Airbus seized contracts with two major U.S. airlines, analysts said.

Analysts have also questioned whether Boeing, facing costs equivalent to a new programme to repair the MAX crisis, as well as delays on its large new 777X jet whose maiden flight is set for Thursday, would have appetite for such a costly project now.

(Reporting by Tracy Rucinski in Chicago and Tim Hepher in London; Editing by Matthew Lewis)

United Beats Wall Street Expectations Despite 737 MAX Delays

January 21, 2020 /

CHICAGO (Reuters) – United Airlines Holdings Inc <UAL> on Tuesday beat Wall Street estimates for quarterly profit and held to its 2020 profit target, with a turnaround strategy overseen by its outgoing CEO underpinning growth even as the Boeing 737 MAX remains grounded.

Chicago-based United is one of three U.S. airlines cancelling more than 1,000 monthly flights in a hit to profits as the 737 MAX remains grounded following two deadly crashes in Indonesia and Ethiopia. Boeing Co <BA> said on Tuesday it does not expect approval for the 737 MAX’s return to service until mid-year, later than previously forecast.

While United has warned of a hit from the MAX grounding, it did not disclose any estimated financial impact from the fallout and stood by its full-year adjusted EPS range of $11 to $13.

Total operating revenue rose 3.8% to $10.89 billion, boosted by strong travel demand and Chief Executive Oscar Munoz’s three-year strategy to build up the airline’s flight connections through its main U.S. hubs. United President Scott Kirby will succeed Munoz as CEO later this year.

Revenue per mile flown, a closely watched industry measurement, rose 0.8% in the fourth quarter and United forecast similar growth in the first quarter given solid bookings.

However, unit costs excluding fuel and profit-sharing expenses, a concern for investors in a year of contract negotiations with pilots, rose 2.7%.

United had already announced a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.

Shares of United closed 4.4% lower at $85.79 before the earnings release, tracking sharp declines for U.S. airline and travel stocks on concerns over the Wuhan coronavirus in China, which J.P.Morgan analyst Jamie Baker said poses a near-term overhang for airlines.

United did not comment on the outbreak in its results but separately said there is no impact on its operations and it remains in close contact with U.S., Chinese and other Asian authorities on safety.

United management will host a conference call to discuss results on Wednesday at 10:30 a.m. EST (1630 GMT).

Adjusted net income rose to $676 million, or $2.67 per share, in the fourth quarter to Dec. 31, from $657 million a year earlier, topping a Wall Street consensus forecast for $2.65 per share.

Fellow U.S. MAX operators Southwest Airlines Co <LUV> and American Airlines Group Inc <AAL> are due to report quarterly results on Thursday.

The three airlines are scheduling without the MAX until early June though that timeline will likely need to be pushed back following Tuesday’s guidance from Boeing.

United, which had 14 737 MAX jets in its fleet at the time of the grounding, said it plans to take delivery of 28 MAX variants in 2020 depending on U.S. regulatory approval and Boeing’s subsequent pace of production and deliveries.

Among other aircraft orders, it expects to take delivery of two Boeing 777-300’s and 15 Boeing 787’s in 2020 but has decided to assign its purchase obligations for 20 Embraer 175’s to one of its regional partners once each jet is delivered.

(Reporting by Tracy Rucinski in Chicago; Additional reporting by Dominic Roshan K L in Bengaluru; Editing by Matthew Lewis)

An American Airlines Boeing 737 MAX 8 flight approaches to land at Reagan National Airport in Washington

American Airlines Adding Super Bowl Flights to Miami

January 19, 2020 /
  • Airline increases service from hubs, adds special flights from Kansas City, Missouri, and San Francisco and San Jose, California

FORT WORTH, Texas — American Airlines, Miami’s hometown airline and the largest carrier serving Miami International Airport (MIA), is adding special flights from Kansas City, Missouri (MCI), and San Francisco (SFO) and San Jose (SJC), California, for football fans to cheer on their favorite teams at the big game. American has also added larger aircraft — Boeing 777-200s — from its hubs in New York (JFK), Dallas-Fort Worth (DFW), Los Angeles (LAX) and Chicago (ORD) to accommodate additional traffic to Miami for the game. Flights are available for purchase now.

“We know dedicated fans have watched every pass, play and penalty that got their teams to this moment and what it means to root for them in person,” said Vasu Raja, American’s Senior Vice President of Network Strategy. “We’re looking forward to providing new and increased service to Miami, so more fans can make their dreams a reality.”

American operates more than 340 daily flights to nearly 130 destinations from MIA, and last year connected more than 30 million passengers through the hub. As the airline’s premier gateway into Latin America and the Caribbean, American provides service to more than 70 cities in the region.

“In the coming days, tens of thousands of football fans will be making their way to Miami, many arriving by air through our Miami hub, home to more than 13,000 American team members and to the airline’s largest international gateway,” said Juan Carlos Liscano, American’s Vice President of Miami Hub Operations. “As Miami’s hometown airline for the last three decades, we understand the important role that air service plays in the continued success of our community.”

American recently announced new special service that helps customers see firsthand big named golf tournaments, musical festivals and shareholder meetings, including new service from MIA to Augusta, Georgia (AGS), and Omaha, Nebraska (OMA).

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