Karen's Feed
Apr 5, 2013

U.S. budget cuts ripple beyond defense to travel, tech

April 5 (Reuters) – The rustic, 316-room Cheyenne Mountain
Resort hotel in Colorado Springs is usually booked solid this
time of year, just days before a major national space conference
rolls into town.

But business is off by about a third this season as NASA has
withdrawn from the conference, one of many government agencies
cutting spending to meet $85 billion in budget cuts that must be
made by Sept. 30 known as “sequestration.”

Apr 5, 2013

US budget cuts ripple beyond defense to travel, tech sectors

April 5 (Reuters) – The rustic, 316-room Cheyenne Mountain
Resort hotel in Colorado Springs is usually booked solid this
time of year, just days before a major national space conference
rolls into town.

But business is off by about a third this season as NASA has
withdrawn from the conference, one of many government agencies
cutting spending to meet $85 billion in budget cuts that must be
made by Sept. 30 known as “sequestration.”

Mar 26, 2013

Analysis: JetBlue looks to stand out in industry’s middle seat

ATLANTA (Reuters) – JetBlue Airways Corp (JBLU.O: Quote, Profile, Research, Stock Buzz) caught the airline industry’s attention just over a decade ago with low fares and a customer-centric culture. Now, it is under pressure to show it can compete as larger rivals raise their game and smaller carriers tout their low-price advantage.

No longer an upstart but not big enough to match the scale of Delta, United or the soon-to-be merged American Airlines-US Airways, JetBlue is in the middle. It is Looking to draw more business passengers that disdain its bigger brethren and keep leisure travelers who love the free TV that low-cost rivals don’t offer.

Mar 14, 2013

Analysis: Can U.S. airlines attract investors with better returns?

ATLANTA (Reuters) – U.S. airline stocks, long derided as investment duds, have been gaining altitude in recent years. Now, some see room for them to fly even higher.

Recent mergers have brought in new, profit-focused managements who are running larger, leaner operations than in the past. Unlike their flashy predecessors who focused on expansion and engaged in costly fare wars to win customers, today’s chief executives are number crunchers and lawyers who aim to make their airlines efficient and profitable.

Mar 14, 2013

Can U.S. airlines attract investors with better returns?

ATLANTA, March 14, (Reuters) – U.S. airline stocks, long
derided as investment duds, have been gaining altitude in recent
years. Now, some see room for them to fly even higher.

Recent mergers have brought in new, profit-focused
managements who are running larger, leaner operations than in
the past. Unlike their flashy predecessors who focused on
expansion and engaged in costly fare wars to win customers,
today’s chief executives are number crunchers and lawyers who
aim to make their airlines efficient and profitable.

Mar 13, 2013

ILFC urges Boeing not to rush 777X, backs bigger 787

ORLANDO, Florida (Reuters) – A major U.S. leasing company has urged Boeing not to rush into developing a replacement for its 777 wide-body airliner, contrasting with pressure from some airlines to refresh its popular mini-jumbo.

Henri Courpron, chief executive of AIG (AIG.N: Quote, Profile, Research, Stock Buzz) subsidiary International Lease Finance Corp, said Boeing’s hot-selling, 365-seat 777-300ER would work well for the industry into the next decade.

Mar 11, 2013

Southwest may buy older planes to meet lift needs

ORLANDO, Florida (Reuters) – Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz), which is poised to expand service in the next few years, is considering buying used planes to help meet its needs, an executive said on Monday.

“We are trying to, with a combination of new and used aircraft, make sure that we have enough lift to fulfill our schedules,” Brian Hirshman, senior vice president of technical operations, told Reuters in an interview at the International Society of Transport Aircraft Trading conference.

Feb 15, 2013

American to unite with US Airways to create No.1 carrier

By Soyoung Kim and Karen Jacobs

(Reuters) – AMR Corp and US Airways Group on Thursday sealed an $11 billion merger, but before they can welcome their first passenger onboard they have to get regulators to sign off and then integrate a web of intricate systems.

Creating what will become the world’s largest airline, with 6,700 daily passengers, will require AMR’s American Airlines and US Airways to unite two workforces totalling 113,000 and meld together reservation and baggage handling systems, computer networks, and terminals – a process that has complicated other marriages in the airline industry.

Feb 14, 2013

American Airlines, US Airways unveil $11 billion merger

By Soyoung Kim and Karen Jacobs

(Reuters) – AMR Corp (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) and US Airways Group (LCC.N: Quote, Profile, Research, Stock Buzz) unveiled an $11 billion all-stock deal on Thursday that gives creditors of the bankrupt American Airlines parent control of the combined airline.

US Air’s management team, led by Chief Executive Doug Parker, will assume operational control of the airline, while AMR creditors will wind up owning 72 percent of the combined carrier and take five seats on the 12-member board.

Feb 13, 2013

Concessions on routes likely to get US Air-AMR off the ground

WASHINGTON/ATLANTA, Feb 13 (Reuters) – US Airways and
American Airlines are likely to win approval to create the
world’s biggest carrier, with regulators expected to focus on
concessions to preserve competition in Washington, Charlotte,
Dallas and other airports where they are dominant, antitrust
experts say.

AMR Corp’s American and US Airways are in
the final stages of negotiating an $11 billion merger and a deal
is expected to be announced later this week. If approved, it
would mark the third major U.S. airline merger since 2008,
raising the specter of higher ticket prices and fewer choices
for consumers as a handful of airlines dominate the skies.