Sky Talk

Southwest cell phone talker "shoulda been tasered"

We've gotten a lot of reader comments on our story in today's Star-Telegram about the passenger who was met by Dallas police after refusing to stop talking on his cell phone during a Southwest Airlines flight.

There is little mercy for the passenger among commentators. Some readers suggested that he should have been tasered or even "shot in the head" for refusing to hang up and cursing at flight attendants.

My favorite: "The stewardess should have jammed the phone down his throat...nicely, of course."

Of course, that's flight attendant, not stewardess.

- Trebor Banstetter

ATA sees "marginal decline" in summer travel

The Air Transport Association is forecasting a "marginal decline" in passenger traffic demand this summer. The industry trade group estimates that about 212 million people will travel by airline this summer, down about 1 percent from a year ago.

"For a variety of reasons, slightly fewer people will fly this summer and planes will be approaching 85 percent full,” said ATA President and CEO James C. May in a news release. “While New York remains a chokepoint, airlines, airports and government are doing all they can to avoid lengthy delays when possible and to provide a pleasant travel experience for all.”

The group said high fuel prices, a reduction in airline capacity and a weakened economy are the main reason for the slowdown. Still, the summer will be busy and passenger loads will be heavy. The association outlined some tips for folks taking to the skies during the busy season:

• 24 hours or less prior to departure, visit the carrier’s Web site and print out boarding passes (if possible); check flight status and determine what type of meal service will be offered; be aware of carrier carry-on and checked-baggage policies, and plan accordingly
• Place amenities in carry-on bag, including prescriptions or other medicines and snacks (and for those traveling with children, baby food/diapers) in case of delay
• If carrying liquids or gels in a carry-on bag, pack them in a one-quart zip-top bag and place them in a readily accessible location. Familiarize yourself with the list of TSA permitted and prohibited items
• Remove extraneous metal objects (e.g., coins, keys, pens, cell phone, watch, camera) and place them in carry-on baggage
• Have your government-issued identification and boarding pass ready at the security-screening checkpoint
• Consider purchasing bottled water or other liquids after the security checkpoint
• Tag each bag, inside and out, with traveler name and contact information, and remove all destination baggage tags from previous trips 

- Trebor Banstetter

CEO: Delta/Northwest could shrink

Gerard Arpey, CEO of American Airlines, has long maintained that mergers will be good for the airline industry only if they remove some unnecessary capacity out of the system. Initially, the proposed Delta-Northwest didn't look like it would do much to cut back, given that the airlines planned to keep all of their hubs open and weren't anticipating any significant elimination of flights.

But now, Northwest CEO Doug Steenland says that the merger may indeed shrink the airlines, according to the Memphis Business Journal. But reductions would come because of fuel costs, he said, not any desire to erase unneeded capacity.

"Fuel costs will have to be passed on to consumers," he told the St. Paul Area Chamber of Commerce. "That will mean higher fares, so we'll see demand come down, and the airline will have to shrink."

- Trebor Banstetter

Southwest borrows $600 million

Southwest Airlines reported in an SEC filing this afternoon that it has taken a loan from seven European banks for $600 million. The debt is secured by 21 of its Boeing 737-700 planes, according to the filing.

Citibank acted as the loan agent, and the lenders were Commerzbank, Dekabank, Norddeutsche Landesbank Girozentrale, Landesbank Baden-Wurttemberg, Landesbank Hessen-Thüringen, BNP Paribas and ING Bank N.V.

- Trebor Banstetter

Southwest boots chatty passenger

A passenger flying Southwest Airlines from Austin to Dallas this morning was removed from the flight by Dallas police upon landing after he refused to stop talking on his cell phone.

According to a spokeswoman for the Dallas-based airline, the passenger was spotted talking on his phone when the flight was about 20 minutes from landing. Several flight attendants told him multiple times that he had to turn the phone off, but he refused.

"At that point, the in-flight crew made the decision to alert the local authorities," said spokeswoman Brandy King. The talkative flier was met by police when the plane landed.

Federal aviation regulations prohibit cell phone usage during flights, a rule which is routinely stated during preflight briefings. Airlines face fines starting at $25,000 for violations, and passengers can be fined as well. Cell phone signals can interfere with communications and navigation equipment on the aircraft, and could pose a safety hazard.

King said that Southwest typically has about five cell phone-related issues a year.

- Trebor Banstetter

AA attendants cheer higher fares

In a recent message to union members, the Association of Professional Flight Attendants noted that news coverage of industry mergers includes the fact that the partnerships may result in higher ticket prices for consumers. That's a good thing, union members say, given the state of the industry.

As several airlines – including perennially profitable Southwest -- have announced plans to begin flying slower to save fuel, the nation’s business reporters are weighing in on possible mergers with headlines warning of potential higher fares.  All we can add to that is: it's about time!  At American at least, we long ago grew weary of funding cheap airfares with our sacrificed wages.

- Trebor Banstetter

Delta wavers on fare increase; tipping point reached?

Rick Seaney of FareCompare.com said that Delta on Sunday afternoon rolled back about 40 percent of the $20 fare hike it had implemented last week.

While is could be a temporary move, Seaney says, he also said that it's possible that "we are starting to reach the push back 'tipping point' of consumers in certain markets -- and Delta is trying to shore up certain city pairs that seem to be 'problems' since the increase on Wednesday. Recent domestic April load factor numbers suggest at least a minor softening in demand -- which might be on their mind."

- Trebor Banstetter

Planning your summer vacation? Plan on extra fees

Planning your family vacation for the summer? Haven’t flown in a few years? Be prepared for sticker shock, Trebor Banstetter reports in Monday's Work & Money section.

The cost of air travel has risen substantially in the past few years, with fares increasing steadily and, more recently, airlines slapping fees on various services that were free, Trebor reports. The fees can come as a surprise to those who haven’t flown in a while.

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“Most consumers aren’t aware of them until they show up at the airport,” said Brent Bowen, a professor at the Aviation Institute at the University of Nebraska at Omaha, and co-author of the annual Airline Quality Rating survey. “That’s the real problem.”

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Trebor takes a non-scientific look at how a host of fees charged by various airlines could affect the travel costs for a family of four flying from Dallas/Fort Worth Airport to Orlando in late July.

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Compared to 2006, our imaginary family faced additional costs as high as $502, an increase of almost 35 percent of the total cost of the trip. The extra expense came from higher fares combined with charges for luggage, curbside check-in, in-flight food and a reserved aisle seat.

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Check Monday's S-T for the complete story.

-- Scott Nishimura

Continental execs spotted at AA HQ

We got a tip from some of our sources that top Continental Airlines executives were at American Airlines headquarters in Fort Worth today. It's definitely been an interesting couple of weeks over at Amon Carter Boulevard ... and should get even more interesting in the near future.

- Trebor Banstetter

All six majors on board with airfare hike...

All six of the major legacy airlines -- American, Continental, Delta, United, Northwest, US Airways -- are on board with the industry's latest attempt to raise fares, Rick Seaney of farecompare.com reports.

The airlines raised fares by adding $20 roundtrip to the fuel surcharges that are tacked on to base fares.

"This brings the fuel surcharge to $130 roundtrip for many of the city pairs across the country, especially prevalent on those city pairs that do not overlap with a low-cost airline," Seaney said in an email.

He noted "the only time increases have failed this year is when one of the legacy airlines has not matched. So it is likely this will be the 11th of 15 widely successful airfare hikes of 2008."

Tom Parsons, CEO of Bestfares.com, said "leisure and business travellers are seeing airfares increase almost on a weekly basis."

"When you combine the number of successful airfare hikes and fuel surcharge hikes, leisure and business travellers on non-competitive routes, especially on routes over 1,500 miles, are paying $280 or more roundtrip since Dec. 20, 2007," Parsons said in an email.

On routes where there's competition from Southwest Airlines and other discounters, there are "bargain-basement airfares," Parsons said.

-- Scott Nishimura

London calling: Hey, it's expensive over here!

Hi, I'm Star-Telegram Travel Editor Judy Wiley, blogging today from London, where I'm exploring budget travel options for you with my daughter, Sara.

Um: There are none. OK, a few. The dollar ($2 to 1 pound) is killing us over here. The big attractions (Tower of London, sundry palaces, etc.) will cost you $30. But then again, there are more than 120 free museums in this amazing city.

Today we're off to see the Tower, in fact ($30 or not, who can miss the Crown Jewels and the place where Anne Boleyn lost her head?). I'll keep you posted on what kinds of savings and fun we run across while we're here.

A quick note: Don't come here expecting your international roaming set up in advance to work -- mine didn't, and according to phone vendors here that's apparently a common situation with my particular American provider. Fixing that gets complicated. My understanding is that if international roaming wasn't turned on before I left it won't be happening now that I'm here. But I've purchased an international calling card for 5 pounds (how many minutes? "Depends where you call.") and plan to call AT&T today to see if I can get international roaming turned on or at least not pay for not having it.

More on that later.

P.S.: The extraneous child in the photo belongs to the nice family who took our photo for us at Trafalagar Square.

Vintage tug lands at C.R. Smith Museum

The C.R. Smith Aviation Museum, adjacent to American Airlines headquarters in Fort Worth, is the new home for a small but significant piece of aviation history - "Tug 160," a 1945 baggage tractor that was the oldest piece of ground equipment still in use by American when it was retired in 2001.

The tug was restored by American mechanics at Newark Airport, and was inducted into the museum at a ceremony Thursday. In the photo, Newark mechanics Bill Provod (left) and Ron Huber show off the tug.

- Trebor Banstetter

United hikes fares, matching Delta's increase

United Airlines climbed aboard Delta Air Lines' $20 roundtrip fuel surcharge increase earlier this afternoon, Rick Seaney of farecompare.com reports.

"This leaves US Airways, Northwest, and Continental with little or no matching activity," Seaney said in an email message. "I would be surprised not to see all three of them match by the end of the weekend."

Continental has had some "minor matching activity" on business fares in about 2,000 city pairs, "which is most likely attributed to their automated pricing systems and not a management decision to fully match the Delta-initiated systemwide increase -- yet," Seaney said.

Delta launched its increase Wednesday evening.

-- Scott Nishimura

OK, that looks scary

We reported yesterday at Star-Telegram.com and here at Sky Talk about the panel that fell off an American Airlines Boeing 767 jet during a flight from D/FW Airport to Paris. This morning, our colleagues at the Miami Herald published this photo of the underside of the plane after it landed.

The plane landed safely, and American officials, as well as pilots we've spoken to, are adament that the aircraft was never in any danger.

Still, for your average traveler, pictures like this tend to be unsettling.

- Trebor Banstetter

Here we go again: Delta hikes fares

For the 15th time this year, a major airline is attempting a broad, substantial increase in ticket prices. Delta Air Lines hiked fares by $20 each way across the bulk of its flights, according to FareCompare.com. The price hike was implemented as an increase to the carrier's fuel surcharge.

Rick Seaney, FareCompare's CEO, had this to say in an email:

The new total fuel surcharge on numerous Delta city pairs is now up to a record $130 roundtrip ($65 one-way) -- oddly enough the total of this fuel surcharge increase combined with taxes and fees is now larger than the actual base airfare on several short haul domestic flights.

With a backdrop of a slowing economy, I continue to look for a tipping point where domestic air travelers begin to significantly push back on record high airline ticket prices. At best the jury is still out on whether we are seeing the first signs of push back (see conflicting reports below), what is abundantly clear however is that legacy airlines are willing to cut back even more capacity as we near this point.

I had predicted at least 2 more increases in May and nothing has changed recently changed to alter this opinion – the torrid pace of airfare increases puts us on track for just shy of 40 increase attempts this year (compared to 23 last year) – while this total is unlikely, it is not inconceivable if oil cracks the $150 barrier and beyond.

Seaney also provided a breakdown of the attempted price increases so far this year. Here it is, for those keeping score:

1. January 3rd, initiated by United, $10 roundtrip, base airfare hike, successful
2. January 11th, initiated by United, $30 roundtrip,  fuel surcharge hike, unsuccessful
3. January 17th, initiated by American, $20 roundtrip, fuel surcharge hike, unsuccessful
4. January 24th, initiated by Continental, $20 roundtrip, fuel surcharge hike, successful
5. February 22nd, initiated by United, $10 roundtrip, base airfare hike, successful
6. February 28th, initiated by Delta, $10 roundtrip, base airfare hike, successful
7. March 7th, initiated by United, $10 roundtrip, fuel surcharge hike, successful
8. March 14th, initiated by United, $4-$50 roundtrip, base airfare hike, successful
9. March 19th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful
10. March 27th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful
11. April 9th, initiated by United, $4-$30 roundtrip, base airfare hike, successful
12. April 15th, initiated by United, $10-$20 roundtrip, fuel surcharge hike, successful
13. April 24th, initiated by United, $4-$70 roundtrip, base airfare hike, successful
14. April 28th, initiated by Delta, $10 and $40 roundtrip, fuel surcharge hike, successful
15. May 7th, initiated by Delta, $20 roundtrip, fuel surcharge hike, pending

- Trebor Banstetter

Parsons: International fares rising

Airfare maestro Tom Parsons of Bestfares.com said fuel surcharges are pushing up ticket prices on international flights. Here's what he had to say:

On several international routes the fuel surcharge is actually higher than the base airfare. The fuel surcharge compared to last summer on some routes has more then doubled. The base airfare price from Los Angeles to London for departure by May 25, 2008 is as low as $195 roundtrip and the fuel surcharge is $306 roundtrip.

This week we saw the price of oil hit over $122 per barrel. It's a traveler beware, as the cost of fuel continues to climb so will airfares. The cost of jet fuel has become the biggest expense for the airlines in recent years and this cost is now being passed on to the customer through fuel surcharges and higher ticket prices. We also expect to see more increases on domestic and international routes throughout 2008.

As we enter the busy high-demand summer season, many travelers are seeking out airfares as low as last summer. We suggest that before you start searching on the internet that you take two aspirins to avoid ticket shock.

- Trebor Banstetter

Panel falls off AA plane, flight lands safely

American Airlines employees have been buzzing about an April 20 flight from D/FW to Paris in which a panel from the plane's air conditioning system apparently fell off after takeoff.

According to a message the airline sent to pilots today, there was a "loud noise" and "short-lived vibration" as the Boeing 767 passed about 10,000 feet. The captain consulted with the crew and mechanics on the ground, and they determined it posed no threat and may have been cargo shifting in the belly of the jet.

When the plane landed, it was discovered that a lower fuselage panel, which covered the air conditioner, was missing. Still, the airline said that safety was never compromised and that the flight crew made the right decision in keeping the plane aloft. An internal investigation into the incident is underway.

The incident occurred just one week after American had to ground its fleet of MD-80 jets for inspections.

UPDATE,  9:30 a.m. THURSDAY

We've posted some photos of the big scary hole in the bottom of the plane.

- Trebor Banstetter

Marines say V-22 passed Iraq tests

Better late than never ...

The Marines held a press conference at the Pentagon last week to tell the world that the V-22 Osprey had performed well in Iraq. No one from the Star-Telegram or McClatchy was able to attend but the transcript of the session can be found here.

Lt. Gen. George Trautman, deputy commandant for aviation, said the Osprey lived up to expectations and performed all of its assigned missions. But Troutman added that the Iraq deployment was "a test, but not the final exam" for the Osprey.

Troutman said the Marines are on "a journey to exploit a new and revolutionary technology. And we're going to continue to learn lessons, and we're going to continue to improve and continue to work hard to exploit the capabilities this airplane brings.

"I don't want anybody to think that this is end of a journey. This is very much just the beginning. And I anticipate in the coming years and decades, as Air Force Special Operations Command and others see the utility of this airplane, it's just going to become more and more valuable across the board."

Inside the Navy (subscription required) reported on the session, leading with the fact Marine Osprey crews only encountered hostile fire on two occasions.

The first V-22 squadron spent most of its deployment conducting “general support” missions, involving moving Marines and supplies in and out of combat zones. The aircraft also conducted medical evacuation and other missions, according to the squadron. Their missions took them all across Iraq, and even as far as way as Kuwait and Jordan.

(Lt. Col. Paul) Rock said the fact that the aircraft saw so little combat could be seen as a testament to its speed and the difficulty enemies have in targeting it.

“That’s one of the great things about the aircraft . . . someone’s opportunity to engage us is very short,” he said.

- Bob Cox

Dismal March for American Airlines

Yesterday FlightStats.com reported American Airlines poor on-time performance in April (the airline had the worst record in the industry). Today, the DOT, which lags a month or so behind FlightStats, released March figures, which were equally dismal for American.

Here's the ranking and on-time percentage of the major hub and discount carriers for March, according to the DOT's report:

1. U.S. Airways - 79%
2. Alaska Airlines - 78%
3. Southwest Airlines - 74%
4. Frontier Airlines - 73%
5. Delta Air Lines - 72%
6. United Airlines - 72%
7. JetBlue Airways - 71%
8. Northwest Airlines - 70%
9. AirTran Airways - 70%
10. Continental Airlines - 68%
11. American Airlines - 62%

American grappled with bad weather during March, and also had the first wave of cancellations due to the grounding of its MD-80 jets for inspections. Still, the airline's poor performance during the month isn't an anomaly. According to the DOT report, American flights were on time just 68 percent of the time during the previous 12 months, the second-worst record in the industry, behind regional carrier Atlantic Southeast.

- Trebor Banstetter

Boeing 787: Easier said than done

Flight International has a good series of stories this week, written by Jon Ostrower, on Boeing's struggles to bring the 787 Dreamliner into production and the reasons for the delays. Good reading for business readers, the casual aviation buff and the true wing nuts out there.

An excerpt:

The globalised world in which the 787 was to be born was flat. However, Boeing has found that the edges of that globe are still quite rough. The same forces that enabled the 787 to be built on a global scale, seamless telecommunications and advanced computer- aided design, could not replace oversight and on-the-ground experience.

What fundamentally set the Dreamliner apart even before it made its public debut in Seattle, was that it was instrumental in the cultural transformation of one of the USA's corporate standard-bearers for innovation on two distinct levels.

The first defines the challenges of designing and manufacturing new commercial aircraft in the 21st century economy. At the core of this challenge is what it means to be an aircraft manufacturer. With ever-rising labour costs driven by increasing healthcare and pension obligations, Boeing looked towards foreign and domestic supplier partners from around the world to share the burden of risk and cost to bring the 787 to fruition.

The balance between using expensive yet seasoned in-house staff or less-expensive labour at well-established suppliers and newly established "greenfield" sites is, in essence, the new existential equation of the global economy that must be balanced in the development of new commercial aircraft.

On the one hand, an airframer cannot neglect its native experience built through years of developing aircraft, and on the other, the cost of developing the aircraft cannot become so prohibitively high that the break-even point for a commercial aircraft programme does not justify its undertaking.

Boeing believed the solution to this equation lay in the most complex global supply chain in the history of manufacturing. Dozens of suppliers and a small fleet of modified 747-400s support a massive global logistical operation.

In its first year of building 787s, Boeing has found that balance tilted away from it. The company has been bitterly disappointed by the performance of its supply chain. Now it is seeking to rebalance that equation, regaining oversight and control as it works to assemble flight-test aircraft.

The second change was more subtle. Boeing's commercial aircraft division at its heart was a business-to-business operation, providing a product to the airlines that, in turn, serves the travelling public. The approach Boeing took for the 787 was, for the first time, to market the Dreamliner as a consumer's aircraft with unique features such as mood lighting, higher cabin pressurisation and a host of passenger experience-enhancing options for airlines to select. The experience of flying was just as important a marketing tool to the airlines as the economics of flying.

We reported yesterday on Vought Aircraft Industries raising additional capital to fund its continued investment in the 787.

- Bob Cox

Analyst: Southwest "big winner" in airline shakeout

Michael Derchin, who covers the airline industry for FTN Midwest, says in a report that Southwest is in the sweet spot when it comes to staying aloft amid industry consolidation.

"Southwest is perfectly positioned competitively with the network airlines in full retreat," he writes. He cited the carrier's low costs, fuel hedges and "unique abilities to generate strong revenue growth in a weak economy and protect earnings against rapidly rising fuel prices."

- Trebor Banstetter

AirTran loves Moms

AirTran Airways is giving away pink carnations on May 7 and May 11 at airports in Atlanta, Orlando, Baltimore/Washington and MIlwaukee to honor Mother's Day, in a partnership with Teleflora. In a news release, the discount carrier said the flowers would let "mothers know how appreciated they are."

Awwwwww. I bet they love babies, too. And puppies.

- Trebor Banstetter

Southwest bulking up in Denver

Southwest Airlines continues to expand in Denver, where it's been fighting United and a weakened Frontier, which recently filed for bankruptcy. Southwest said Wednesday that it's adding five new nonstop flights and three new destinations - Sacramento, Fort Lauderdale and New Orleans - to its Denver schedule.

- Trebor Banstetter

The high cost of cutting edge

V ought Aircraft Industries will borrow another $200 million from banks to finance its continued work on the Boeing 787 program, according to documents filed with the Securities and Exchange Commission.

What's interesting about Vought's filing as well as its fourth quarter 2007 report is they give a lot of insight into the enormous investment Vought is having to make as risk-sharing partner in the development of the 787.

Vought has never publicly disclosed its total investment in the 787, but it spent $276 million last year alone as it completed facilities, installed machinery and began ramping up production of 787 components for Boeing. Most of the new loan proceeds will also be used for 787 spending.

The above referenced SEC filing indicates that Vought does not expect to make a profit on its 787 work until 300 aircraft have been produced, several years from now. Presumably that applies to all the other partners as well, including Boeing.

Dallas-based Vought, along with other 787 suppliers, has been leaning on Boeing to renegotiate their financial agreements. Initially, as partners, they would not be paid until Boeing started delivering airplanes and collecting payments from the airlines. As the costs have risen and Boeing has delayed deliveries, the suppliers have been strapped for cash.

Spirit AeroSystems of Wichita, which builds 787 nose and fuselage sections, recently announced it had renegotiated financing terms with Boeing and has received an initial $124 million payment.

In its SEC filing, Vought says it has reached an "interim partial agreement" with Boeing on a revised payment structure. The company recently sold its interest in Global Aeronautica, a 787 assembly operation in Charleston, S.C. to Boeing for an undisclosed amount of cash.

Vought is building the two rear-most fuselage sections of the 787 at its own Charleston plant. About 400 Vought engineers in Dallas have worked on the design of the 787.

- Bob Cox

D/FW near bottom of April on-time report

Flightstats.com reports that airlines at Dallas/Fort Worth Airport had an abysmal on-time performance rate of 70 percent in April, putting it at 36th among the 40 largest North American airports for the month.

The ranking, obviously, was largely due to the massive number of cancelled flights at the airport due to the grounding of American Airlines' MD-80 fleet for inspections.

Still, four airports still had a worse record: O'Hare, where 69 percent of flights were on time; Newark, which had a 68 percent on-time record; JFK, where 68 percent of flights were on time; and LaGuardia, which rounded out the bottom of the list at 55 percent on time.

The top five airports for the month were:

1. Salt Lake City, 87 percent on time
2. Portland, 84 percent
3. Phoenix, 83 percent
4. Detroit Wayne County, 83 percent
5. Cincinatti, 83 percent

- Trebor Banstetter

Southwest Blog version 2.0

Southwest Airlines has upgraded its corporate blog, Nuts About Southwest, adding a video blog, podcast, Flickr Feed, reader polls and other goodies for Southwest fans. Check it out here.

- Trebor Banstetter

WSJ: FAA failed to perform safety reviews

The Wall Street Journal is citing a letter from acting FAA administrator Robert Sturgell that indicates the agency did not perform several recommended safety reviews over the past several years. Safety reviews were overlooked at Southwest and American as well as other major carriers, according to the report.

- Trebor Banstetter

"Oceans 11" or "27 Dresses" on AA flights?

American Airlines has launched a new site that allows passengers and flight attendants to cast their votes for the movies that will be shown on on flights. The site allows users to indicate their preferences for four movies each month, which will be shown on the main screen on domestic flights with in-flight movies. Two of the four will also be shown on international flights.

Right now, for domestic flights, you can choose among "I Can Never Be Your Woman"; "27 Dresses"; "The Bucket List"; and "The Final Season." International service also features "A Night At the Museum"; "The Water Horse"; "National Treasure: Book of Secrets"; and "Oceans 11."

What? No "Cloverfield?"

- Trebor Banstetter

AA trims D/FW schedule

American Airlines is trimming its schedule at D/FW Airport, including eliminating service to Oakland, Calif., as it works to reduce its overall passenger capacity by about 5 percent this year.

American spokesman Tim Wagner said Monday that the airline will cut its three daily flights from D/FW to Oakland effective Sept. 3. Those were American's only flights at Oakland, so the airline will be ending service entirely in that city.

Wagner pointed out that travelers can still get to the Bay Area on flights to San Francisco and San Jose. "So we can still get our passengers to the area," he said, although they'll have to cross the bay if the want to get to Oakland.

American is also trimming one daily frequency from D/FW to Charlotte, Washington Reagan National Airport, Denver, Portland, Ore., San Francisco, San Jose and Tampa. Meanwhile, it's adding one flight a day to Austin and San Antonio.

American is also cutting flights from Austin to Seattle, Wash., Raleigh-Durham, N.C. and Orange County, Calif. San Antonio is losing service to Los Angeles and Fort Lauderdale, Fla.Wagner said the schedule changes are designed to strengthen American's hub system while reducing fuel costs.

"We're playing to our strengths, which is the hub," he said. "Given the incredibly high fuel prices we're facing, we have to cut some capacity in the domestic market."

American had previously announced chances to its service at Dallas Love Field. The airline is beginning new nonstop service to O'Hare Airport in Chicago, which will be operated by its American Eagle regional partner, and eliminating flights to Austin and Kansas City.

- Trebor Banstetter

Prof: United/US Air merger "Like two sinking rats"

Harlan Platt, a turnaround specialist and finance professor at the business school at Northeastern University, has this to say about a proposed merger between United Airlines and U.S. Airways:

As I see it, there are 2 possibilities:

1. These are two rats clinging to themselves as the ship sinks, or

2. These are two halves of a life raft which when put together will save the passengers and crew.

My guess is we are talking the two rats scenario. Both companies are losing money on virtually every plane they fly. They have squeezed costs out of every place possible. The only economic justification for the merger is to reduce competition, increase pricing power, and shock it to the consumer.

- Trebor Banstetter

Looking for sweets at D/FW?

If you're jonesing for something sweet next time you're waiting for a flight at D/FW Airport, you might want to check out Natalie's Candy Bar. The candy shop opened a location at gate 33 in Terminal B, and gate 33 in Terminal A.

- Trebor Banstetter

Traffic, loads down on AA, up on Southwest

American Airlines reported that overall traffic slipped nearly 7 percent last month, while passenger loads fell by about 2 percentage points. Much of it was driven by the cancellations of about 3,300 flights during the month due to the grounding of American's MD-80 fleet for inspections.

Southwest, meanwhile, reported at 6 percent increase in traffic, while passenger loads held steady at about 73 percent.

- Trebor Banstetter

"Theme lanes" at Love Field security checkpoints

Star-Telegram staff writer Bryon Okada reports today on themed lanes at TSA checkpoints at Dallas Love Field which may get the lines there moving a little faster. They now have lines designed for families or those unfamiliar with airport security, casual travelers who are aware of the rules but need a little more time or help, and expert travelers who know the drill and don't expect any holdups.

According to Bryon, D/FW Airport may see similar themed lanes as well in the future.

- Trebor Banstetter

AA pilots union gives Arpey an F (mostly)

We have recently written in the Star-Telegram and here at Sky Talk about the fifth anniversary of Gerard Arpey's tenure as American Airlines CEO. We surveyed a panel of industry watchers who gave Arpey grades ranging from A to D- for his performance (and lots of readers chimed in as well with their thoughts).

The Allied Pilots Association recently sent out an email to union members with its own grade, and not surprisingly, the labor group gave him very poor marks. (Most of our readers probably know the union is in a contentious contract negotiation with airline management.) Here's some of what they had to say:

Leadership – F – Most great leaders preach leadership by example. Unfortunately, that is a dead concept at AMR, as evidenced by Arpey's own defense of unjustifiable levels of management pay by stating that pilots "just don't understand executive compensation."

Vision – F – Under five years of Arpey's management, this airline has shrunk nearly 15%, reduced our aircraft fleet by over 100, furloughed thousands of employees, and allowed our fleet to become the oldest and least reliable in the industry. These are not the statistics indicative of a grand vision for American Airlines.

Motivational Skills – F – This grade was easiest to assess, as employee morale across the airline has dropped to an all-time low and employee anger has risen to an all-time high.

Communication Discipline – A – Regardless of the deterioration around them, management stays on their message that no problems exist and it's just our unreasonable, unruly, overpaid pilots making trouble. They stay on message when challenged even to the point of a Corporate Communications representative walking out in the middle of a TV interview. They consistently portray success to shareholders while employees are pitched doom and gloom.

Integrity / Trust – F – "Pull Together – Win Together" was the single biggest deception ever pulled over on employees in the history of the airline industry. Management now has absolutely zero trust and credibility with employees.

Accountability – F – This management team will spend vast resources blaming weather, ATC, labor, the FAA, etc., rather than accept responsibility.

Now, to be fair, we'd love to hear the thoughts of American managers and executives (or anyone, for that matter) when it comes to the performance of Lloyd Hill, the APA's president, and the rest of the union's leadership team, which is approaching it's first anniversary. Anyone wishing to grade Hill can feel free to post a comment on the blog, or send me and email and I'll post it.

- Trebor Banstetter

AA, TWU make some progress; now the hard part

According to American Airlines, "lots of progress" has been made with mechanics in contract negotiations. Most of the non-economic sections of the contract have been closed out, according to an update from the airline.

Of course, that leaves wages and benefits - typically the most difficult section of any contract negotiation.

- Trebor Banstetter

AA official to pilot: Union proposals "radical and extreme"

I recently received a copy of an email from Mark Burdette, American's vice president of employee relations, to a pilot who had asked about the slow pace of contract negotiations with the union.

Here's what Burdette told the pilot. Take particular note of some of the language in the second paragraph (I've added the emphasis):

From: Burdette, Mark

Sent: Fri May 02 12:23:52 2008

Subject: RE: Inadequate Progress

Captain [REDACTED]:

Thank you for taking the time to express your views in your recent email.

While it is true that it has been 18 months since we commenced negotiations with the APA, the parties have actually met only 77 days. In that time, the APA has also replaced its entire negotiating committee, conducted a membership survey, taken a two month break to re-write all their proposals, canceled 29 scheduled meetings, applied for mediation twice, and refused for months to TA 3 sections in which neither side had made any proposals.

We look forward to reaching a new agreement as soon as possible and remain committed to offering proposals that both strengthen the company and resolve issues that are important to our pilots. In order to ultimately reach a new agreement, it's also important that the APA avoid offering radical and extreme proposals that are economically impossible for us to implement. It would be irresponsible of us to accept APA proposals that threaten the long term viability and success of the Company.

Mark Burdette

Vice President, Employee Relations

Note Burdette's description of the "radical and extreme proposals" being offered up by the union. It's similar to wording that showed up in a negotiations update on American's labor site. Regarding a recent pension proposal from the pilots, American had this to say (again, emphasis mine):

Continued radical and extreme changes like those suggested by APA leadership coupled with refusals to consider the Company's suggested enhancements to pilot retirement plans are disappointing and troubling. The Company hopes that APA negotiators enter into upcoming mediations with proposals that understand the current economic environment and acknowledge the realities of our business.

The language coming from AA sure seems to be getting a lot harsher. What's next, management picketing outside of the APA offices?

- Trebor Banstetter

UBS: Corporate travel demand weakening

Another ominous sign for the airline industry is a report out this morning from Kevin Crissey of UBS, which says that the firm's twice-annual survey of corporate travel managers indicates a further slowdown in business travel.

About 42 percent of the 80 managers surveyed said that their firm is likely to spend less on air travel this year. That's compares to 26 percent just six months ago. And 34 percent of those surveyed said that their firm's cuts are not yet fully reflected in airline results.

Overall, 65 percent expect their travel spending to be flat or down this year.

- Trebor Banstetter

IATA: Global traffic slowing

The International Air Transport Association reports today that global airline traffic continued to slow in March. Here's what the group had to say in a news release:

The slowdown in the demand growth continues the sharp downward trend which began in December 2007 as the impact of the US credit crunch began to be felt in the airline industry.

“Traffic only tells a part of the story. Astronomical oil prices are hitting hard. And the buffer of an expanding economy has disappeared. The fortunes of the industry have taken a major turn for the worse,” said Giovanni Bisignani, IATA’s Director General and CEO.

- Trebor Banstetter

AA had hoped to avoid cancellations

Officials at American Airlines said several times last month that they had tried to negotiate an alternative method to comply with an FAA safety directive - one which wouldn't have required the airline to ground its fleet of MD-80 planes and cancel 3,300 flights.

On April 10, Gerard Arpey, American's CEO said that "we worked with Boeing and the FAA to seek an alternative means of compliance and we weren't successful."

Now, American apparently is making that same case in a report to the Department of Transportation. According to a story in today's Wall Street Journal, the report says that the airline had a "handshake" deal with local FAA officials for the alternative, but were overridden by higher-ups in Washington, D.C. That rejection of the alternative method of inspecting the planes meant the entire fleet had to be grounded.

- Trebor Banstetter