Karen's Feed
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.

Feb 7, 2013

Exclusive: AMR creditors to meet February 11, may vote on US Air merger

NEW YORK/ATLANTA (Reuters) – AMR Corp (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) creditors plan to meet on Monday and could vote on a potential merger agreement between the bankrupt parent of American Airlines, and US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz), several people familiar with the matter said.

The two airlines are working to finalize an agreement so the board of each company could also meet to vote on the deal on February 11, the same day AMR’s unsecured creditors’ committee is scheduled to convene, the people said.

Feb 7, 2013

AMR creditors to meet Feb. 11, may vote on US Air merger

NEW YORK/ATLANTA, Feb 7 (Reuters) – AMR Corp
creditors plan to meet on Monday and could vote on a potential
merger agreement between the bankrupt parent of American
Airlines, and US Airways Group Inc, several people
familiar with the matter said.

The two airlines are working to finalize an agreement so the
board of each company could also meet to vote on the deal on
Feb. 11, the same day AMR’s unsecured creditors’ committee is
scheduled to convene, the people said.

Jan 30, 2013

AMR CEO Horton’s fate in balance as US Airways merger nears

NEW YORK (Reuters) – As US Airways Group Inc (LCC.N: Quote, Profile, Research, Stock Buzz) and American Airlines parent AMR Corp (AAMRQ.PK: Quote, Profile, Research, Stock Buzz) hammer out the final details of a merger, one of the most thorny issues has been whether AMR Chief Executive Tom Horton stays or goes.

After rebuffing an aggressive takeover push from smaller rival US Airways early in its bankruptcy, AMR of late has embraced a deal, but is now eyeing a high-level position for Horton in the merged airline, according to several people familiar with the matter.

Jan 25, 2013

United, Southwest results top estimates, bookings solid

By Karen Jacobs

(Reuters) – United Continental Holdings Inc recorded a bigger quarterly loss and Southwest Airlines Co posted lower profit on Thursday, but results topped expectations and the carriers said current bookings were solid.

Shares of both carriers were up in afternoon trading.

Southwest said bookings for the remainder of the current quarter were “strong” so far, while United said the percentage of available seats sold for the next six weeks was running higher for domestic, international and regional segments.