New Arizona, Il Duce/Warlord
Wednesday, September 17
Analysts see industry turnaround for 2009-2010: Airline efforts to ground planes, trim payrolls and refocus on profitable customers are beginning to pay off, increasing the likelihood that several big carriers could return to profitability next year, according to some analysts. UBS Securities cited a 23% drop in fuel prices as the main reason for expected improvement at American Airlines, Continental Airlines, Delta Air Lines and United Airlines, while an equities analyst at Standard & Poor's praised the industry's moves to raise prices and cut costs. "They're firing their worst customers," said S&P's Jim Corridore. "It's a brilliant move. They shouldn't be flying those people to begin with."
Airlines climb for second day after oil hits $90.55: Another big decline in oil prices rallied airline stocks for a second day Tuesday, with shares of Delta Air Lines and Northwest pushing the sector to a six-month high. The benchmark index hit an all-time low in July as oil prices soared to a record $147 a barrel, increasing up fuel prices by more than 50% and bankrupting many of the smaller airlines. More recently, crude oil for October delivery dropped to a low of $90.55 per barrel in electronic trading. Wall Street analysts have said oil prices need to get well below $100 a barrel before investors can expect to see any of the major network carriers posting profits again. Last year, when the carriers were posting profits, oil was at $72 a barrel. This report was for yesterday and we did not get the DB out due to operational issues in SLC. Today the price of oil was $93.54 as of noon eastern time.
Delta to add Hawaii flights Oct. 1: Delta Air Lines will add flights to Hawaii beginning Oct. 1. According to the Hawaii Visitors and Convention Bureau, increased demand has led Delta to reinstate some flights that had been canceled. Delta will add one additional flight per week from Atlanta to Honolulu, for Los Angeles to Kona on the Big Island, and from Los Angeles to Lihue, Kauai.
Judge: No depositions of other CEOs in Delta suit: A federal judge says a lawyer for 28 air travelers suing to block Delta Air Lines Inc.'s acquisition of Northwest Airlines Corp. cannot question the chief executives of four other major carriers about their views on airline industry consolidation. Lawyers for Delta and Northwest said in a letter to the court on Tuesday that granting the request would allow an "immaterial sideshow" and they asked the court to reject it. U.S. District Judge Vaughn Walker is set to preside over the Nov. 5 trial in San Francisco. Testimony is expected to last 10 days, and Walker could rule by Thanksgiving. The plaintiffs are seeking an injunction to block the combination, arguing that it violates antitrust law and will substantially lessen competition. The lawsuit was filed June 18.
Frontier ‘Crisis’ Impels Motion To Toss Out Mechanics Contract: Frontier said it “remains in crisis” and is asking a judge to let it toss out the airline’s contract with mechanics and other ground workers if the Teamsters union does not agree to concessions. The company wants the mechanics to compromise on outsourcing of heavy maintenance, which would eliminate 130 jobs. The airline also disclosed that to comply with the terms of its debtor-in-possession loan of up to $75 million, it must reach agreements to cut its labor costs by $35 million a year, a reduction of about 17%. The agreement with the Teamsters, if Frontier were to get the outsourcing and wage and benefit reductions it is seeking, would provide about $5.6 million of that total.
SR-71 TRIVIA: The SR-71 holds the world speed record for London to Los Angeles at a speed of 1249 kts. average which is 1438 MPH over a distance of 5463 miles in a time of 3 hours 47 minutes and 39 seconds. You haven’t been lost till your lost at Mach 3……..