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10/06/2008Fuel costs, drop in passengers may force more flight cuts

TOM TINGLE/The Arizona Republic

Fewer passengers are expected at airports like Phoenix Sky Harbor as airlines cut their flight capacity.

ASPEN, Colo. â€” Aviation consultant Michael Boyd projected Monday that U.S. airline capacity on domestic routes could continue declining in 2009, and a falloff in demand could push airlines to cut capacity even more. He is projecting that 2009 capacity will fall 9.5 percent, following an 8 percent reduction in 2008 compared with 2007. The short-term question, Mr. Boyd said at his annual Boyd Group aviation conference, is whether customer demand falls faster than capacity. That would not be the scenario that airlines were hoping for as they park airplanes and lay off employees this fall, he noted. Mr. Boyd, who has witnessed many up-and-down cycles in the airline business in his long career, told the conference that the changes hitting the airline industry are not like the ones seen in the past. "This is not an aviation cycle," Mr. Boyd said. "What this is, is a whole new environment. We have grown up on oil prices being relatively low. They're going to be high. That means how you do business, where you do business is going to be different."

10/05/2008American Airlines to offer a la carte pricing
Starting next year, Fort Worth-based American, which led a stampede by U.S. carriers to charge customers for checking even a single suitcase, plans to imitate the a la carte pricing structure pioneered by Air Canada, airline officials say. There are likely to be a few basic fare plans, and travelers can pick additional services – each for a fee. Southwest Airlines may profit from its rivals' fees
Southwest Airlines is counting on some angry customers in the coming months – passengers flying on other U.S. airlines. 10/04/2008Report faults FAA over maintenance outsourcing
Nine major U.S. airlines are farming out aircraft maintenance at twice the rate of four years ago and now hire outside contractors for more than 70 percent of major work, the government says. Contractors overseas handled one-quarter of the outsourced maintenance. 10/03/2008American cuts September flying capacity 7%
American Airlines Inc. said Friday it reduced its flying capacity by 7 percent in September, cutting it to the smallest it has been in a September since 2001, when terrorist attacks grounded all airline flights in the U.S. for several days. American Airlines sees decline in traffic, capacity
The Fort Worth-based carrier said its traffic declined 9.1 percent last month compared with September 2007, on a 7 percent reduction in its flying capacity. 10/02/2008Airlines' on-time performance improved in August
Fort Worth-based American Airlines was third worst overall in September, with an on-time arrival rate of 70.6 percent, while Dallas-based Southwest ranked fifth best overall, with an on-time rate of 84.4. Among the 10 largest U.S. carriers, Southwest ranked second behind Northwest Airlines Inc., and American finished ninth ahead of JetBlue Airways Corp. D/FW Airport board will take a fresh look at travel expenses, other costs
At the insistence of Fort Worth Mayor Mike Moncrief, the board will review its policies on travel expenses, administrative costs, auto allowances and other spending. Southwest Airlines traffic slips
The airline flew 5.31 billion revenue passenger miles in September, compared with 5.64 billion a year ago.
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Southwest Airlines to enter Minneapolis market 10/01/2008Southwest Airlines to enter Minneapolis market
It marks Southwestâ€™s first new city since it re-entered the San Francisco market in August 2007. Crime blog: Southwest Airlines employee accused of smuggling cocaine
Federal authorities in Houston have accused a former Southwest Airlines baggage handler of using his free employee flying privileges to allegedly smuggle cocaine from Houston to Baltimore and haul mounds of cash back. Southwest Airlines will have priority lanes at some airports
Southwest Airlines will create priority lanes to let its best customers -- Business Select and Rapid Reward A-list members -- get through some airports' security checkpoints more quickly than other Southwest passengers. D/FW Airport CEO defends travel policies
Chief executive Jeff Fegan said the frequent trips through the U.S. and other countries are necessary to attract airlines to offer service to D/FW or to conduct the airport's business. 09/29/2008D/FW Airport to end fiscal year with $12 million surplus
Dallas/Fort Worth International Airport will have a $12 million surplus when its fiscal year ends today, slightly more than it had expected earlier in the month, airport officials said Monday. 09/26/2008American Airlines' parent draws on credit facility
American Airlines parent AMR Corp. says it plans to draw from a $255 million revolving credit facility to reduce what it may have to set aside for a credit card reserve. 09/25/2008Shareholders OK Delta, Northwest Airlines merger
Delta Air Lines shareholders give the go-ahead to the company's purchase of Northwest Airlines by approving the issuance of new stock as part of the transaction. 09/24/2008Report: D/FW Airport execs spent $500,000 on expensive travel before budget freeze
Airport chief executive Jeff Fegan defended his first-class accommodations, saying he needs his "physical space" because he's over 6 feet tall and that it's difficult for "people of my size to sit in coach and sleep." Air travelers cashing in frequent-flier miles
Passengers at U.S. carriers including American Airlines and United Airlines are burning through record numbers of frequent-flier points to avoid paying higher fares, and the companies couldn't be happier. 09/22/2008American Airlines to create priority lines for top customers
American Airlines Inc. plans to introduce special lanes for its best customers so they can check in, get through security and board airplanes faster and easier, the airline said Monday. 09/21/2008American Airlines tries to turn corner on late arrivals, lost bags

MICHAEL AINSWORTH / DMN

American is taking drastic steps to rejigger its schedule and beef up its operations this fall to improve the dependability of flights, if not speed.
[image] American develops checklist for improvement
[image] Airline Biz blog

American Airlines develops checklist for improving customer service
American Airlines Inc. is using a combination of technology systems and grass-roots efforts to improve its customer service ratings. 09/19/2008Special Counsel: FAA failed to act on runway safety problems
A government watchdog is demanding an investigation of whistleblower complaints that federal aviation officials failed to follow through on runway safety problems brought to their attention. 09/18/2008American Airlines parent benefiting from falling fuel prices
AMR predicted Thursday that it will spend about $200 million less for fuel in the third quarter than it had estimated two months ago. Feds promote greener ways to navigate planes
Federal officials say new technologies for navigating planes and controlling air traffic can save fuel, cut greenhouse gas emissions and reduce delays. 09/17/2008Pilots' union to fight American Airlines deal with British Airways
The Allied Pilots Association said the arrangement isnâ€™t allowed by the APAâ€™s contract with American, saying the carrier is required to get the unionâ€™s approval if the airline wants to work with partners. 09/16/2008D/FW Airport re-opening Founders Plaza observation area on Wednesday
The re-dedication event – which coincides with the 35th anniversary of the dedication of the airport – will feature a parade and appearance by Olympic gold medal gymnast Carly Patterson of Allen. 09/15/2008American Airlines parent AMR completes sale of American Beacon subsidiary
AMR Corp., the parent company of American Airlines Inc., said Monday it completed the sale of its asset-management subsidiary American Beacon Advisors to Lighthouse Holdings Inc. for $480 million. 09/13/2008Economic damage from Hurricane Ike may be less than feared
A small change in Hurricane Ike's course just before it crashed into the Texas coast may have spared the state and the nation from significantly worse economic damage. 09/12/2008American Airlines says it won't furlough more pilots
American Airlines Inc. said Friday it has canceled plans to furlough more pilots, saying that retirements, leaves of absence and pilot training will absorb the pilot surplus it thought it would have. 09/11/2008American Eagle, pilots' union agree on contract amendments
Regional carrier American Eagle and its pilots' union reached agreement Thursday on amendments to their existing contract that provide no pay-rate increases for most pilots but don't require pilot concessions. 09/10/2008Panel mostly endorses FAA's oversight of airlines
The federal government's system of airline regulation could be strengthened but is largely working to insure that systemic risks donâ€™t develop, a panel of experts said Wednesday. City Hall blog: Number of cabs at D/FW Airport slashed
Without discussion, the Dallas City Council approved a proposal to limit the number of taxicabs allowed to operate at Dallas/Fort Worth International Airport to 800. That's down from the estimated 2,300-plus cabs operating today -- far too many for the airport's needs, city officials argue. 09/09/2008New York man says American Airlines lost his dead wife's body
A man who tried to send his late wife's body to their native Ecuador for burial is suing American Airlines and a funeral home, claiming the carrier misplaced his wife's remains for four days. American Eagle, instructors reach tentative contract
Negotiators for American Eagle's ground school instructors have reached a tentative agreement with the airline on a four-year contract, the two sides said Monday. The deal covers nine employees.