On June 5, Atlanta-based Delta Air Lines announced that it was de-hubbing its once robust hub at Memphis International Airport, marking the end of a historic operation that dated back to the mid-1970s when Southern Airways launched a secondary hub to complement its Atlanta operation. Over the next 30-plus years, the operation grew and prospered, first under the umbrella of Republic Airways, and then as the gateway to the Southeast …Read More
Tag Archives: US Airways
International Airlines Group entering a new dawn in 2013
It could have been much worse. International Airlines Group (IAG), formed by the merger between British and Spanish flag carriers British Airways and Iberia, posted a €997 million (US$1.29 billion) 2012 before-tax loss, dragged down by a €343 million impairment charge against the intangible assets and a €202 million transformation cost at the beleaguered Iberia unit. Amid a moribund Spanish economy where the unemployment rate has hit a staggering 26.1% …Read More
Post-merger United Airlines well-positioned for a 2013 recovery
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
Bankrupt American Airlines tells a familiar tale
It’s a familiar American airline story. Delta Air Lines went through it, so did United Airlines. Now it is Fort Worth, Texas-based American Airlines’ turn to carry the can. But for American this time, it never rains but pours. Parent AMR Corporation is operating under Chapter 11 bankruptcy protection. A take-over by the fifth-largest US carrier US Airways is on the cards, while American waits out for a better deal. …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
Interview: PEOPLExpress VP of Operations Brent James
Last week, Aspire Aviation spoke with Brent James, vice president (VP) of operations of new US startup PEOPLExpress. Aspire Aviation has transcribed the interview, as well as following it up with a brief analysis of the carrier’s prospects. Aspire Aviation: What prompted the choice of Newport News as your hub? Is 25 flights an optimal level for this operation moving forward? Brent James: The Newport News hub, we looked at …Read More
Southwest Airlines faces challenges in AirTran integration
When Southwest Airlines reported its traffic results for December earlier this month, the results once again reflected a recurrent paradox in the US airline industry. Southwest Airlines, which was once the industry’s low-fare leader, recorded unit revenue gains of 7%-8%, its 15th straight month with a unit revenue increase of more than 5%. The carrier achieved these revenue gains despite a 1.8% higher capacity and a 0.3% drop in traffic as …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