WASHINGTON (Reuters) – US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines are considering giving up takeoff and landing slots at Washington’s Ronald Reagan National Airport to win regulator approval of their $11 billion merger, two people familiar with the matter said.
The airlines are hoping to reach a settlement with the U.S. Justice Department before the trial, due to begin November 25, paving the way for a deal that would create the world’s largest air carrier, the sources said.
WASHINGTON (Reuters) – US Airways (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines will offer to give up some takeoff and landing slots at Washington, D.C.’s Ronald Reagan National Airport as part of a attempt to get the U.S. Justice Department to allow their merger to proceed, a Dow Jones report said on Wednesday, citing people familiar with the process.
The companies’ stock prices have been buoyant recently as investor sentiment has increased that a deal can be reached to create the world’s largest air carrier.
(Reuters) – Southwest Airlines and United Continental Holdings made more money in the third quarter as higher airfares bolstered revenue, capping a strong week of earnings for major U.S. airlines that bodes well for the current period.
United missed estimates on Thursday as it grappled with revenue management shortfalls and competitive pressure, while Southwest’s profit was as analysts expected.
By Karen Jacobs
(Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) on Tuesday reported a higher-than-expected quarterly profit as fare increases and strong demand in the United States and Europe boosted revenue, sending its shares up nearly 4 percent to a new year high.
The U.S. carrier said its revenue outlook looked “solid” through the end of the year and that bookings for the holiday season were strong.
SAN DIEGO/ATLANTA (Reuters) – U.S. monetary policy is being kept easier to help offset the harm caused by political fighting in Washington, according to two senior Federal Reserve officials who warned on Thursday of damaging consequences if the nation defaults on its debt.
Atlanta Federal Reserve Bank President Dennis Lockhart said the disquiet resulting from the budget battle “vindicated” the Fed’s surprise decision not to scale back its asset purchases at its meeting last month.
By Karen Jacobs
(Reuters) – Airlines on Monday urged a U.N. aviation group to back a mandatory global framework to curb airline emissions, saying failure to reach a deal would revive threats of a trade war.
The International Air Transport Association, which represents some 200 airlines, said the United Nations’ aviation agency could agree on a new system when its 191 states begin their assembly in Montreal this week.
By Karen Jacobs
(Reuters) – Aviation electronics systems supplier Rockwell Collins Inc (COL.N: Quote, Profile, Research, Stock Buzz) forecast lower-than-expected earnings for 2014, citing federal government budget cuts and declining business jet revenue, and its shares fell about 5 percent.
The supplier of cockpit systems said on Friday that it expects profit of $4.30 to $4.50 per share on revenue of $4.5 billion to $4.6 billion for the fiscal year that begins October 1.
WASHINGTON (Reuters) – Having enjoyed a relatively strong summer travel season, U.S. hotels and airlines face a potential hit this autumn as the nation’s defense industry and government departments rein in travel spending.
Officials at the Pentagon and top U.S. defense companies told the Reuters Aerospace and Defense Summit this week that they are cutting travel by double-digit percentages to deal with the latest round of automatic spending cuts caused by sequestration. The reductions could create a replay of cuts in the spring that reduced airline revenue when sequestration first hit U.S. government spending.
WASHINGTON (Reuters) – Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) placed an order for Airbus jets on Wednesday worth almost $6 billion at list prices, softening its reliance on Boeing for the first time in two decades as it looks for plane bargains.
The order, crowning a months-long competition between the transatlantic plane making rivals, includes 30 A321 narrowbody planes as well as 10 A330-300 widebody aircraft that will be delivered between 2015 and 2017.
Washington (Reuters) – JetBlue Airways Corp (JBLU.O: Quote, Profile, Research, Stock Buzz), mentioned as a possible takeover candidate if the merger of US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) fails to be completed, is not interested in a merger or acquisition, its chief executive said on Tuesday.
Speaking at the Reuters Aerospace and Defense Summit, CEO Dave Barger said JetBlue had an interest in assets such as airport gates that become available as a result of mergers. “But mergers and acquisitions, just not of interest to JetBlue. Independence into the future is our plan,” Barger said.