Week In Review News Items
Labor Developments
The Air Transport Association (ATA) filed an appeal Wednesday of a judge's ruling that allowed a federal labor rule change to go into effect. The new labor rule, which went into effect July 1, could make it easier for unions to organize workers, including at Atlanta-based Delta Air Lines.
Legislative, Regulatory & Safety
For more than a decade, Northwest Airlines repeatedly failed to follow federal safety orders but wasn't held accountable by the FAA, according to a government report. The report by DOT’s inspector general's office confirmed many of the allegations brought by a whistleblower in 2005 and again in 2008 of a cozy relationship between FAA managers and the airlines they are charged with inspecting…U.S. airlines must inspect more than 100 Boeing 767 airliners more often than previously required to look for cracks that could cause the engines to fall off, FAA ordered Wednesday.
Airline Industry Finances & Structure
Delta kicked off a week of airline earnings reports by reporting its best quarterly profit in a decade, and said it expects continuing unit revenue gains in the current quarter…Continental is adding to the evidence that U.S. airlines are making a strong recovery from the recession. Continental said Thursday it earned $233 million in the second quarter, nearly a mirror image of its $213 million loss a year ago, and its per-share earnings beat analysts' expectations…and American Airlines is losing less money these days, but it's still on a losing streak that's approaching two years.
The U.S. DOT on Tuesday granted American Airlines, British Airways and Iberia, along with Finnair and Royal Jordanian, antitrust immunity to jointly set fares, align capacity, plan service and share revenues across the Atlantic…and global sales of paid-for airline extras, such as checked-in baggage, food and drink, increased by €3.32 billion in 2009, to €11 billion. According to research from Amadeus and Ideaworks, revenues from these ancillary sales became a "crucial component" of overall revenue for airlines, in a year dominated by the global recession. The top two airlines in terms of sales, United and American Airlines, made more than €1.5 billion in revenue each from ancillary products in 2009.
Miscellaneous
Federal health officers logged more than 3,000 cases of potentially infectious diseases among travelers in the past year, including airline passengers with tuberculosis, whooping cough, measles, mumps and typhoid fever, according to Centers for Disease Control and Prevention data obtained by USA TODAY…and expect to see more ads from the U.S. Customs and Border Protection, enticing travelers to join its Global Entry, a so-called trusted traveler program launched in 2008 designed for international travelers who are considered low terrorism risks.