American Airlines

Delta launches attack on JetBlue through new leisure push from New York

Delta Air Lines is targeting JetBlue Airways through new and bolstered flights being introduced to Florida and the Caribbean from New York’s LaGuardia and JFK airports in late 2012 and early 2013. Delta’s move is a departure from its recent New York strategy of using slots obtained at LaGuardia to capture business travellers from smaller markets that prefer the convenience of getting in and out of the airport closest to downtown Manhattan. But in its latest offensive Delta is targeting leisure markets where JetBlue is deeply entrenched, and in some cases breaking JetBlue’s monopoly on those routes.

Delta in Mar-2012 introduced new flights from LaGuardia to 15 markets as it began developing the airport into a hub after gaining 132 slot pairs at the facility from US Airways. Delta is scheduled to complete the new market phase-in during Jul-2012 when it launches 26 additional markets from LaGuardia.

Qantas in a changing world: quantifies refocused international strategy and limits capital exposure

Qantas' withdrawal from a series of international routes promises the single largest benefit to its loss-making international division, delivering AUD100-120 million (USD101-122 million) in annual benefits, with the majority to be realised in FY2013. But with the international division reporting a loss of AUD216 million (USD219 million) in FY2012, Qantas will continue to operate a number of unprofitable routes, primarily to Europe and Asia.

Qantas expects to reduce those losses through the reconfiguration of its Boeing 747-400 and A380 fleets, which when complete towards the second half of FY2014 will deliver AUD70-90 million (USD71-91 million) of benefits annually. Qantas previously put those retrofit changes at a cost of AUD400 million (USD406 million). They include reconfiguring nine 747-400s to have no first class while 12 A380s have a reduced number of business class seats but more economy and premium economy seats.

American Airlines' bright outlook: 1Q yield grows as international flights & product to be enhanced

American Airlines recorded first quarter revenue results that rivaled those of its legacy peers and brought its yields to commensurate levels. But its loss for the quarter is evidence of the cost disadvantage it has and is seeking to overturn in bankruptcy protection, just as its competitors achieved in a now well-trodden path. Yet this balance, simple on paper, is dismissed by American's over-zealous detractors. Even Southwest, the darling of the US industry, feels this narrowing cost gap.

But American is not entirely blame-free. Its disclosure of welcomed plans to increase international flights 6 ppts to 44% during the next five years will bring it in line with today's Delta and United. Like other moves, this latest seems to be one page behind in the playbook already worn in by the carrier’s legacy peers, although American is catching up with a premium economy option and surpassing with a new business class product. If it can rein costs in, American has a clear future.

LCCs help drive Mexican international passenger growth of 42% in 1Q2012

Rapid growth among Mexico’s three low-cost carriers – Interjet, VivaAerobus and Volaris – helped drive international passengers transported by Mexican carriers up 42% year-over-year during 1Q2012 as those airlines further expanded into US transborder markets and introduced new flights from Mexico to Central America and the Caribbean.

Mexico’s airlines transported 1.3 million international passengers during the first three months of this year compared with 924,916 during the prior year period, according to data from Mexico's DGAC. Interjet had the most dramatic growth, increasing its share of Mexico's international market (among Mexican carriers) from zero to 5.8% year-over-year. Interjet launched its first international flights last year and now operates from Mexico City to Guatemala, Havana, Miami and San Antonio and from Toluca to San Antonio.

Interjet currently operates 12 weekly roundtrip flights with Airbus A320s from its main base at Mexico City to San Antonio and three weekly flights from Toluca, where the carrier has its headquarters, maintenance facility and a smaller base.

Republic works to restructure loss-making 50-seat operations at its subsidiary Chautauqua

Republic Airways Holdings has undertaken a restructuring of its Chautauqua Airlines subsidiary that operates 50-seat regional jets with a targeted USD40-60 million improvement by 2013. The company is hoping to overcome the daunting challenge facing all US regional airlines of finding a price point that makes the operation of smaller jets consistently profitable.

During the late 1990s and early 2000s the introduction of the 50-seat regional jet ushered in heady times for US regional carriers as they negotiated high margin capacity purchase agreements with their US legacy partners that allowed for strong profits that often times bested the financial performance of the network carriers they were partners with.

US Airways now turns to analysts and creditors to back merger wish with American Airlines

Having gained support from three of American Airline’s unions representing roughly 55,000 employees, US Airways is now moving to convince Wall Street analysts that a merger with American would produce far more favourable results than American’s standalone plan.

US Airways on 20-Apr-2012 won public endorsement from three of American’s unions for its plan to create a "new American” through the combination of the two companies.