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Aero-politics: August 2008 Archives

FAA, New York, airports, all in slot solution suit

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Thumbnail image for Vegas_slots.jpgSo sue me, already. The FAA said so, and now the airlines have and so the feds are responding with unusual speed for any agency. And it's all over slots. No, not the kind you find in Las Vegas, even in the McCarran airport there. It's landing slots, silly. Okay, now that we've lost you and bored you, we have to ask you to try to pay attention because (a) this is really important and (b) it will be on the final exam.

The FAA now has landing slots in place at the three New York City airports as a way to ease congestion; it says that auctioning off slots when they become available to the highest bidder is a good thing. It wants to sell off Newark slots vacated by Eos, a luxury airline that went under early in the year. What's neat is that the issue has split elected officials, with New York senator Chuck Schumer moving to block the auction and Hillary (Clinton) saying she opposes it, while the city's mayor, Hizzoner Mike Bloomberg, says he favours the idea. What perplexes us is the FAA's link between auctions and the flight caps at each of the airports: flight limitations are one thing, but how does selling, leasing, or auctioning off landing rights increase capacity or decrease delays? You can find some fairly informative discussion here.

Coalitions, sites battle over airlines, oil

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Union_Published.jpgWhy now? Out in California, where so many interesting things come from, a group calling itself theairlineoilspin.com has set itself up, "to encourage the public to see through the industry's spin on the issue." The airlines, they say, "have failed to prepare for rising oil prices by continuing to fly older, less fuel-efficient planes unlike many of their competitors in other parts of the world. And even though the airlines promoted multiple pieces of legislation that would place limits on some types of oil speculation, many of the bills supported by the industry include loopholes that allow the airlines themselves to continue speculating. At the same time, the industry has benefited from more than $8.5 billion in taxpayer subsidies since 2001." Some indictment. But....

That's just Jake: Brace is out at United, stock leaps

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Nobody like this fellow, it would seem. They may have meant he did a god job. But we think it's pretty clear that Jake Brace, the chief financial officer at United Airlines, is being thrown under the bus. Brace, who was its chief restructuring officer during its lengthy bankruptcy reorganization, said he was retiring (at age 50), after which the company's shares jumped to their highest in months and higher than other airlines. Brace, who started at United in 1988, was the guy who went into bankruptcy court and demanded that United's unions take wage and benefit cuts, and he was the frequent target of the wrath of the pilots and flight attendants. 

FAA isn't yielding on major fines

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They are not yielding an inch. Or a dollar. The FAA, caught with its pants down in March and April, is standing tough on the record fines it is proposing against two of the nation's largest airlines. The agency said it would fine American Airlines $7.1 million and a day later told Southwest Airlines that it was intent on collecting a $10.2 million penalty. The Southwest penalty stems from the March revelation that the airline let planes fly without doing the required inspections; at the same time it emerged that some FAA inspectors had winked and nodded at the violations - and that whistleblower warnings about this malfeasance were ignored or punished. House Transportation Committee hearings under chairman Oberstar put the frustrated whistleblowers on show.

Oneworld, one ocean at a time

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For the biggest deal to come down the pike since the last big deal, the British Airways/ American Airlines/ Iberia* tie-up is grabbing less attention than we'd have thought.  The pro-side put up their own website, More Travel Choices, which has a bit of background but not that much more; the main opponent, Virgin Atlantic, also put up a website, Third Time Unlucky for Consumers, outlining some of the arguments against. But that's about it, and even though Virgin's Richard Branson says he plans a major advertising campaign, we haven't seen any signs of it yet. *Don't forget Finnair and Royal Jordanian, making this a core oneworld effort.

Tilton's time at United ain't quite up

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tiltonsite-tm.jpg You know it has to be bad day when your most militant union publicly asks you to resign and the nation's leading business weekly suggests it's time to shut your company down and sell off the pieces. But Glenn Tilton, chairman, chief executive, and president of United Airlines and its parent UAL Corp., seems unflustered. The call by the Air Line Pilots Association for him to step down - a call that the union has made with a new website seeking passenger horror stories - came after the airline sued the pilots union, alleging a conspiracy to abuse sick days and cancel flights and after the unions accused the airline of trying to force them to fly broken planes without enough fuel. United dismisses the noise as "just an attempt to intimidate." Bill Brandt, a turnaround specialist with Chicago's DSI, says, "So it's news that the pilots and Tilton don't like each other?" 

No Way, AA/BA, again

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richard-branson.jpgThe papers are full of reports that American Airlines and British Airways are again applying for alliance antitrust immunity, but they haven't yet. That has not stopped Richard Branson from attacking the proposal, just as he did the last time around. Back then, he decorated his planes with the slogan NO WAY AA/BA; this time he's writing to the US presidential candidates. In his letter, Branson says that "BA/AA would have a combination of high frequencies and a transatlantic network that could not be replicated by any other airline/alliance, and which would make it impossible for other carriers to compete for time-sensitive corporate or business travellers." 

About this Archive

This page is an archive of entries in the Aero-politics category from August 2008.

Aero-politics: July 2008 is the previous archive.

Aero-politics: September 2008 is the next archive.

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