American Airlines officially grounded 47 of its fleet of 102 Boeing 757s last Thursday for faulty cabin seats. Earlier in the week, American said the carrier believed it had identified faulty clamps as the cause of seats breaking loose on as many as six of its 757s, some in flight.
American Eagle flight attendants voted to ratify a tentative contract agreement with the bankrupt airline last month. The Association of Flight Attendants (AFA) said the deal contains “substantial improvements” over management’s original bankruptcy term sheet as well as its so-called Last Best Final Offer. Eighty-seven percent of the AFA members who cast ballots voted in favor of the agreement.
Hawaii’s Island Air signed a letter of intent with Chicago’s Aerway Leasing last month to lease five ATR 42s, the first two of which the airline expects to arrive in Honolulu by the end of this year and the final three next summer.
Bankrupt American Airlines and regional subsidiary American Eagle plan to cancel a total of 300 flights this week as management prepares to unilaterally impose contract concessions on its mainline pilots. Represented by the Allied Pilots Association, the pilots have submitted far more maintenance “write ups” and have called out sick at a much higher rate than usual in an apparent work action to disrupt the airline’s operations.
Talks between US Airways and AMR over a possible merger involving bankrupt AMR subsidiary American Airlines have reached a formal stage, with the two companies beginning to exchange “certain confidential information” under the terms of a nondisclosure agreement signed August 31.
AMR, American Airlines’ parent company, succeeded in its second effort to void its contract with the Allied Pilots Association Tuesday afternoon, when, in a ruling in U.S. bankruptcy court in New York, Judge Sean Lane rejected the union’s contention that American Airlines’ financial condition had improved enough since its Chapter 11 filing last November to avoid the measure.
Among the AMR Chapter 11 bankruptcy protection documents filed last fall were FAA proofs of claim against the company for 89 alleged safety violations that occurred between January 2007 and November 2011.
The American Antitrust Institute (AAI) and Business Travel Coalition (BTC) last week publicly released a jointly produced white paper sent to the U.S. Department of Justice that explains their opposition to the merger between US Airways and American Airlines. The 28-page report concludes that such a merger could substantially reduce competition on a number of routes, create regional strongholds at key airports across the country and starve smaller communities of air service vital to their business interests.
Conditional labor contracts offered to employees of bankrupt American Airlines by its would-be merger partner, US Airways, provide for only marginal improvements over offers they have received through the bankruptcy process, according to US Airways chairman and CEO Doug Parker.
Lukewarm market reception and performance deficiencies that continue to fall short of the new 747-8’s original design specifications might have elicited a fair share of skepticism from various industry quarters, but they haven’t deterred Boeing from declaring that “prospects look quite good” for the stretched, re-engined and re-winged jumbo jet, now in passenger operation with Lufthansa Airlines and five cargo customers.