2012 was a difficult year for Chicago-based full service carrier United Airlines, who reported a 2012 full year net profit of US$589 million excluding special charges of US$1.3 billion. For the last quarter of 2012, United lost US$190 million excluding US$430 million in special charges as the airline grappled with the effects of “Superstorm Sandy” and lingering customer unease over the carrier’s operational issues throughout the course of 2012. The …Read More
Boeing posts strong 2012 first-quarter results
Chicago-based Boeing, the world’s largest aerospace company, posted an exceptionally strong first-quarter results which beat Wall Street analysts’ forecast and saw its net income for the quarter soaring by a staggering 58% from US$586 million a year ago to US$923 million this year. The better-than-expected results came as the company recorded a US$0.11 per share positive impact from the release of a litigation reserve, a remarkable quarterly performance from its …Read More
US air travellers face higher airfares in 2012
Starting from January 26th, US air travel consumers will notice advertised fares for domestic travel appreciating significantly, as new rules mandated by the United States Department of Transportation (DOT) take effect. When the DOT announced a set of new “consumer protection” rules earlier this year, airlines predictably voiced their fierce opposition, especially to the new policy on taxes. Airlines will now be required to advertise fares with all government taxes …Read More
High operating cost, low productivity key factors behind American’s bankruptcy
In filing a Chapter 11 bankruptcy, Dallas, Fort Worth-based AMR Corporation, parent of US’s third-largest carrier American Airlines (AA) and its regional subsidiary American Eagle joined its peers in which every major US network carrier has gone through the bankruptcy process at least once in the past two decades in a drive to become competitive and solidly profitable by slashing costs and restructuring debt. As the US majors emerged from …Read More
Reducing costs imperative for American Eagle spin-off
On August 11th, 2011, AMR Corporation, the parent company of American Airlines (AA), filed documents with the US Securities and Exchange Commission (SEC) indicating that it would be spinning off American Eagle (American Airlines’ largest regional partner) to AMR shareholders. As it is currently written, the deal gives all AMR shareholders 1 common share in American Eagle for each share of AMR stock that they own. Under the terms of …Read More