Frontier Airlines files for bankruptcy protection

By Catherine Tsai

Associated Press writer

 

POSTED: 09:20 a.m. EDT, Apr 11, 2008

 

DENVER: Frontier Airlines sought bankruptcy protection today, the fourth carrier to do so in the past several weeks as exorbitant fuel prices eat into earnings and a weak U.S. economy keeps more people grounded.

 

Frontier says it will continue operations as it reorganizes.

 

The low-fare carrier said it was forced into bankruptcy after its principal credit card processor said it would begin withholding a greater share of proceeds from ticket sales...

 

 

Find this article at:

http://www.ohio.com/news/break_news/17547239.html 

 

April 11, 2008

New York Times

Editorial

Fear and Flying

 

If there can be any good news in hundreds of thousands of passengers being stranded as airlines ground fleets of planes for urgent inspection, it is that the Federal Aviation Administration is doing its job. Unfortunately, it is trying to make up for years of not doing its job in keeping them safe, and travelers are the victims.

 

If the F.A.A. had consistently monitored safety instead of being shamed into action last month by whistle-blowers and an angry Congress, the inspections might have been better scheduled or in some cases, even unnecessary. Now, the agency says that travel interruptions will be with us at least through June, depending on the results of its stepped-up safety audits...

 

---

 

April 11, 2008

Southwest Planes Had Cracks an Inspection Might Have Found

By MATTHEW L. WALD

New York Times

 

WASHINGTON Five Southwest Airlines planes grounded last month because they had not been properly inspected had precisely the kind of cracks that the inspection order was intended to detect, an official of the agency testified Thursday to a Senate subcommittee.

 

The testimony, by the associate administrator for safety of the Federal Aviation Administration, was the most explicit statement so far that the epidemic of aircraft groundings had genuine safety roots...

 

 

http://www.nytimes.com/2008/04/11/business/11plane.html?ref=business

 

http://columbus.bizjournals.com/columbus/stories/2008/04/07/daily33.html

 

Friday, April 11, 2008 - 9:25 AM EDT

American cancellations continue; calls off 3 more Columbus flights

Business First of Columbus - Business First

 

In a fourth day of safety inspections and aircraft groundings for American Airlines Inc., three additional flights at Port Columbus International Airport have been called off through Saturday.

 

The airline said it expects to cancel 570 flights Friday, following 930 cancellations the day before. American on Thursday called off four Port Columbus flights along with a 7:50 a.m. Friday departure, then canceled two additional flights Friday and a Saturday morning departure. All of the Columbus flights were bound for the airline's hub at Dallas-Fort Worth International Airport...

 

 

Unfortunately, the industry with the quickest potential response time to this crisis would be the bus companies. If I was a charter bus owner in Dallas, I'd ride up to the airport and see how much people would be willing to pay to get there ASAP.

The problem with buses is that they seem to have as high a crash frequency as regular cars, so sticking a ton of them on the roads wouldn't do much good in terms of safe travel.

A canceled flight doesn't always mean a refund

CNN.com

 

NEW YORK (AP) -- The latest round of American Airlines flight cancellations has left tens of thousands of passengers searching for alternative ways to get to their destinations, but airlines are not required to compensate passengers for canceled flights.

 

The only time airlines legally have to provide compensation is when a passenger is bumped from an overbooked flight, according to the Department of Transportation's Aviation Consumer Protection Division...

 

 

Find this article at:

http://www.cnn.com/2008/TRAVEL/traveltips/04/11/airlines.obligations.ap/index.html 

 

More pain for travelers - American grounds 595 flights

Cancellations for safety inspections continue for 4th straight day. American says it hopes to resume regular service over the weekend.

By David Goldman and Kenneth Musante, CNNMoney.com staff writers

Last Updated: April 11, 2008: 1:30 PM EDT

 

NEW YORK (CNNMoney.com) -- The chaos facing air travelers continued Friday as American Airlines grounded 595 more flights, or 25% of its schedule, and stranded tens of thousands of passengers.

 

Friday marked the fourth straight day of trouble for American - the nation's largest airline - which has canceled nearly 2,500 flights affecting some 300,000 passengers...

 

 

Find this article at:

http://money.cnn.com/2008/04/11/news/companies/airline_woes/index.htm?cnn=yes 

 

I find this entire fiasco silly on the part of the FAA.   These planes have been fine for decades and it would not be that difficult to work on these planes over the course of a couple weeks.

 

Instead, they are inconveniencing thousands, (if not millions by the time this is over) of people and are sinking the bottom lines of AA and the entire industry for that matter.

 

I don't know,    I am all for safety but C'mon.  This is just crazy.

^ I'm guessing they wouldn't SHOW us what the problem is, because it might scare us. I wonder why United was not  effected. Were their wiring so they say standard? And if it's a wiring problem shouldn't the maker of the airplane be liable? Boeing?

I had a feeling a thread like this was needed. I was considering starting one myself! We've had many other threads that were heading in this direction, and those threads could probably be folded into this one.

We’d love to be able to suggest alternatives to flying, but the same government that allowed the airlines to get to this sorry pass has been starving the passenger rail system, and the constant rise in gasoline prices does not make long-distance driving very attractive.

 

Great line.  Very, very true. 

Oh come on, why can't they come up with some creative titles, like they do with streetcars?

"GE stock hits turbulance then freefalls"

"Boeing says investors will be the wind beneath their wings"

"Delta lands new merger deal".

 

Its so easy. They must just be lazy.

This sort of reminds me of the 1890s and early 1900s before auto use became popular.

 

Getaways were to places nearby, via rail or interurban.  I think the Indian Lake area up north of Bellfontaine developed as a resort first via interurban rail accesss from Dayton, Springfield, and Lima.  There are also some examples of resort areas on lakes developing due to interurban rail acess up in Indiana.

 

The Wisconsin Dells is another example of a resort area that became popular during the railroad age).

 

 

Continental Airlines Announces First Quarter Net Loss of $80 million

 

Record fuel prices lead to quarterly loss; Continental to shrink domestic

 

mainline capacity 5.0 percent on an annual run-rate basis; company to retire 14 additional mainline aircraft; Continental redeems Northwest's Golden Share.

 

Ironically, although not in the press release, traffic in Cleveland grew.

 

http://phx.corporate-ir.net/phoenix.zhtml?c=85779&p=irol-newsArticle&ID=1131326&highlight=

http://columbus.bizjournals.com/columbus/stories/2008/04/14/daily28.html

 

Thursday, April 17, 2008 - 1:25 PM EDT

Southwest 1Q profit slides; airline reducing expansion plans

Business First of Columbus

 

Despite faring better than some other airlines in the first quarter, Port Columbus International Airport's largest carrier told investors Thursday a continued increase in jet fuel prices has forced it to reduce its growth plans next year.

 

Dallas-based Southwest Airlines Co. (NYSE:LUV) said its first-quarter earnings fell 63 percent to $34 million, or 5 cents a share, from $93 million, or 12 cents a share, in the same period of 2007. The profit slide was driven by $51 million in one-time charges mainly related to hedging and derivatives, versus a $64 million gain in last year's first quarter...

 

 

Interesting article, but I disagree with the Cleveland issue and not because I live here.  Chicago cannot grow and Newark is under caps.  However, nothing is set in stone.

 

The "change in circumstance" is exactly what Executive Mgmt. will use when they have to close hubs and downgrade flight options to cities.

 

---

6 Ways Airline Mergers Will Affect Travelers

April 15, 2008 10:27 AM ET | Rick Newman

 

Had enough airline upheaval? Well, get ready for more. The merger agreement between Delta Air Lines and Northwest Airlines could kick off a wave of consolidation that will directly change the flying experience for millions of travelers.

 

If regulators approve, the Delta-Northwest deal would combine the second- and fourth-largest U.S. airlines into one megacarrier—with the Delta name—that controls nearly 18 percent of the domestic market. Some analysts think that United and Continental may soon consummate another merger, forming an even bigger carrier with nearly a 20 percent market share. Here are the biggest changes travelers will notice if such deals go through:

 

Read more at:

http://www.usnews.com/blogs/flowchart/2008/4/15/6-ways-airline-mergers-will-affect-travelers.html

You aviation buffs might like the photos I've added to my trip to England spread at:

http://www.urbanohio.com/forum2/index.php/topic,15600.msg277314.html#msg277314

Revolving door links airlines with FAA

Sunday,  April 20, 2008 3:44 AM

By Rita Beamish and Sharon Theimer

 

WASHINGTON -- What the airline industry wants from Washington it often gets, and no wonder. The people who regulate airlines on one day can become company executives the next -- and the other way around.

 

Industry leaders who once were under the Federal Aviation Administration's authority now sit in top positions at the agency. Many former FAA officials and congressional aides have found lucrative jobs in the air-travel industry or with its lobbying groups. One top official left the FAA two years ago to become the airline industry's top lobbyist.

 

More at:

 

http://dispatch.com/live/content/business/stories/2008/04/20/airlines_revolving_door.ART_ART_04-20-08_D1_DK9V95L.html?sid=101

NOTE the quote about high speed rail.... and this is from a former airline CEO.

 

April 21, 2008

The NY Times

Op-Ed Contributor

Charge More, Merge Less, Fly Better

By ROBERT CRANDALL

Palm City, Fla.

 

THIRTY years ago this fall, Congress passed the Airline Deregulation Act of 1978. Since then, America’s airline system has greatly deteriorated.

 

Our airlines, once world leaders, are now laggards in every category, including fleet age, service quality and international reputation. Fewer and fewer flights are on time. Airport congestion has become a staple of late-night comedy shows. An ever higher percentage of bags are lost or sent to the wrong airports. Last-minute seats are harder and harder to find. Passenger complaints have skyrocketed. Airline service, by any standard, has become unacceptable.

 

More at:

http://www.nytimes.com/2008/04/21/opinion/21crandall.html?_r=1&th&emc=th&oref=slogin

Delta lost an incredible 6 billion in one quarter. I wonder if NW ill go through with the merger.

Didn't I make note of that in the Delta thread?  How can this "merger" be beneficial to the consumer, when the executive at "the new delta" can't manage the "old" Delta or NorthWorst?

Didn't know we had a Delta thread.

I highly doubt that was all on fuel cost. I just read something that for every dollar fuels goes up a gallon it costs United 60 million extra a year. Where they get the 10 billion+ in losses cant just be in fuel alone. If so they might as well get out of the business.

This will Hurt GE's engine business.

This is good news for Cleveland, but further contributes to the pessimistic outlook on the airline industry.  Cross posted in the Ohio Business forum.

---

 

Continental Airlines tells employees it won't seek merger

By DAVID KOENIG, AP Business Writer 1 hour, 20 minutes ago

 

DALLAS - Continental Airlines Inc. said Sunday it would not pursue a combination with another carrier right away, a surprising move after weeks of growing speculation that it would join with United Airlines to create the world's biggest airline.

 

http://news.yahoo.com/s/ap/20080427/ap_on_bi_ge/continental_no_merger

United or USAir will go under.  I see a Braniff or TWA type fall from grace for one of the two.

Airlines face bankruptcy, greatest peril since '01:

http://www.reuters.com/article/reutersEdge/idUSN2846947020080501

 

this article says United and US Air could both be bankrupt by year's end. 

Well Southwest is doing everything they can to run USAirways out of business.  and united management sucks.

The above story just makes it more important for rail service to link said smaller cities to larger airports so they can get their longer-range flights. (wow, did I just say that?)  :-)

 

Take NEO for example...there are three airports with commercial service:

 

Akron-Canton, an up and coming regional player that is a focus city of AirTran

Youngstown-Warren, which currently serves Allegiant Air but is rumored to be recieving regional service via the Essential Air program

and some airport in Cleveland. :-P

 

My dream would be to have a regional rail service from Cleveland-Akron-Canton, then another from Pittsburgh-Youngstown-Akron and streamlining service at the airports... CLE is the big dog, with flights to both coasts and international service to Europe. CAK becomes the secondary player, with snowbird flights, low-cost fares to the coasts, and maybe a vacation flight or two. YNG, becomes the new Western Reserve National Park. I just dont see why this airport, which has no major road linkage to Youngtown OR Warren should even be functioning as a regional airport. (I only say this because I saw a blog where a rather gung-ho individual is rallying for service to be taken away from CAK, PGh and Even CLE and shifted to YNG) And of course, both airports would have direct rail stops allowing people to get to said said CBD's and other cities/airports.

 

But that's just me...a guy can dream, right?

First off, Akron Canton is NOT an Airtran focus city. 

 

TNG (thats an airport in Morocco)?? or do you mean Youngstown's airport.  And what blog would say that there is the possibility that airservice would shift from the airports mentioned to youngstown

Airlines face bankruptcy, greatest peril since '01:

http://www.reuters.com/article/reutersEdge/idUSN2846947020080501

 

this article says United and US Air could both be bankrupt by year's end. 

 

Now if our government would just let one or both of these go under rather that bailing them out (absorbing $$$ pension plans, etc) then a healthier industry would remain.

 

Of course I don't think either United or US Air have much left to dump...

First off, Akron Canton is NOT an Airtran focus city. 

 

TNG (thats an airport in Morocco)?? or do you mean Youngstown's airport.  And what blog would say that there is the possibility that airservice would shift from the airports mentioned to youngstown

 

Really? It's pretty dang close...but in all seriousness, I keep reading sites (official ones, mind you) that refer to it is a focus city, but my mistake.

 

And the blog in question...http://yngair.com/

what do you mean by "much to dump"?  United's over seas route network is huge and priceless.

 

The government should let USAirways go under as SouthWest has been slowly picking it to pieces in every market, with the exception of Charlotte.

 

SouthWest, closed them down in BWI, Boston, Pittsburg, LAX and SFO now they've gone after them in Philly, Vegas and they go toe-to-toe in PHX.

First off, Akron Canton is NOT an Airtran focus city. 

 

TNG (thats an airport in Morocco)?? or do you mean Youngstown's airport.  And what blog would say that there is the possibility that airservice would shift from the airports mentioned to youngstown

 

Really? It's pretty dang close...but in all seriousness, I keep reading sites (official ones, mind you) that refer to it is a focus city, but my mistake.

 

And the blog in question...http://yngair.com/

 

Where in that blog does it mention taking airserve away ?

 

Thats interesting as AirTran does not list them as a 1)hub 2) secondary hub or 3) focus city.  it's not like they have a lot of flights out of Akron-Canton to other cities.  Just the FL and LGA & BOS routes.

CAK has had LAS as seasonal service as recently as April. Now with gas being as much as it is and with a shorter runway, it'll probably remain that way, if not dropped entirely.

 

And sidenote: I remember now that where I saw the words Airtan, Focus City and Akron-Canton was in an article that speculated that CAK would become the next focus city for Airtran (they added like 6 cities in a year) and I transposed those together. My bad.

 

And to answer your question, he talks about stealing traffic away from CAK. (I don't know why he hates it so much)

 

Man, I'm 0-2 today.

you damn whippersnapper!  Don't confuse yourself and then try to confuse me!  :whip:  :-P

you damn whippersnapper!  Don't confuse yourself and then try to confuse me!   

 

I'm not THAT young...just kinda dumb  8-)

 

And isn't that blog a little uh, crazy?

25 and under = whippersnapper!

25 and under = whippersnapper!

25.5 as of 2.17.08. :-)

Honestly if United folds that could work the market.

 

There are rumors that the new United (usairways/united) is in the bed and the USAir folks will run the company from Chicago.

BTW, I hope those columns of data lined up on all your screens. I spent a fair amount of time trying to get that to look decent.

An interesting aviation story with numerous Ohio references.....

____________

 

 

http://blog.wired.com/cars/2008/05/for-travelers-i.html\

 

In Some Small Towns, Airline Service is Dwindling Away to Nothing

By Dave Demerjian May 15, 2008 | 6:09:38 AMCategories

 

For travelers in some small towns, it's time to Go Greyhound. It could be their only option.

 

Desperate to deal with rising fuel prices that just won't quit, airlines are aggressively slashing flights to smaller cities. They're cutting deep, and in some markets eliminating service altogether. Most of these flights are flown using small regional jets or turboprops, and are important because they funnel traffic from small communities into hub airports like Chicago O'Hare, Dallas/Fort Worth, Atlanta, and Detroit. The hundreds of people boarding tiny Cleveland-bound Continental Express planes each day aren't flying in for an Indians game; most are connecting to other Continental flights.

 

 

I'm assuming they mean Legacy carriers, right? because Rockford and Youngstown are still served by Allegiant, and Youngstown hasn't had Legacy service in a few years.

The writer used the term "are losing" so it sounds like Youngstown could lose Allegiant Air. Any word on this?

If it's any help, the service is seasonal...

The only recent article I found at the Vindicator regarding Allegiant Air was published last week, and makes no mention of Allegiant leaving Youngstown...

 

http://www.vindy.com/news/2008/may/08/allegiant-air-continues-its-ascent-in/

http://www.usatoday.com/money/industries/travel/2008-05-13-airlines-summer-travel_N.htm

U.S. airlines expect fewer fliers this summer

By Marilyn Adams, USA TODAY

 

Amid a sour economy and higher airfares, the U.S. airlines' trade group Tuesday forecast the biggest decline in summer air travel since the summer after the Sept. 11 attacks.

 

The Air Transport Association, which represents the 13 biggest U.S. passenger carriers, forecast 211.5 million passengers will fly on U.S. carriers June 1 through Aug. 31, a nearly 1.3% drop from last summer.

 

More at link above:

1. I run YNGAIR.COM. Never have I said we were getting service as a result of some Cleveland Airport; I have no idea where that came from. YNG did receive a $575k SCASD grant to attract daily airline service to a hub like Chicago, Cincy, or Charlotte.

 

2. Allegiant Air's passenger loads at YNG are some of the highest to Orlando of any city that flies there at about 89%. These loads are much higher than Southwest or Airtran to Orlando from PIT-CLE-CAK. Needless to say, they are not leaving YNG and never have considered it.

 

3. Allegiant Air is one of just TWO carriers making money right now, the other being Southwest. They will continue to expand and make money. YNG is lucky to have them!

http://www.guardian.co.uk/business/2008/may/16/britishairwaysbusiness.theairlineindustry1

 

BA to raise fares and slash flights to protect profits

 

 

Hard to believe that a company who raises prices and cuts back on service can be expected to retain their current profit levels.

 

The entire international airline industry is enduring a massive market correction. Unfortuantely, until the process is complete, it will the consumer who will continue to suffer.

 

j3shafer, your statement is not true. The entire international airline industry is not enduring a massive market correction. ANA, Singapore, Emirates all posted very large profits while still being able to sell cheap seats in econony class on international and domestic routes.

 

It might help if the US and EU carriers actually improved service along the lines of non-Western carriers to attract more business pax to offset fuel costs. Clearly the Western carriers are more concerned about acting like bigger versions of RyanAir and Southwest than coming to terms with their problems of losing business passengers who are still willing to pay more even in times of $130/barrel oil if the quality remains. Legacy carriers attempting to offer cheap flights and crappy overall operations clearly isn't working at this point.

Air Heads

by Joe Brancatelli  May 21 2008

Conde Nast

 

AMR's ugly cuts show U.S. airline execs are still flying around fantasyland—except for the smart guys at Southwest.

 

As the price of oil surged passed $130 a barrel today, American Airlines chief Gerard Arpey walked into the company's annual meeting in Dallas with a list of brutal cutbacks for the nation's largest airline.

 

More at:

 

http://www.portfolio.com/news-markets/national-news/portfolio/2008/05/21/US-Airlines-Adjust-to-Bad-Times

It's too late for the airlines (except Southwest) to hedge fuel prices anymore. That all changed Tuesday, for one of the few times in history when it comes to oil when an oil price contango (futures prices turn higher farther into the future) began. How long it lasts is anyone'se guess.

 

Southwest has locked in fuel prices at much lower rates than the spot price until 2016. If it needs more oil with an expanded number of flights, however, then it's out of luck.