American Airlines CEO ask Employees to Decide the New Tail Design

Future American AirlinesNow that the merger between US Airways and American Airlines has been completed, there is still a question that American employees must answer:

  • Do you like the previous or the new tail livery design of our airplanes?

In a newsletter sent to employees on Monday, CEO Doug Parker asked them to decide the look of the American Airlines tail design.

“I think the newly painted aircraft look extremely nice and have heard the same from many of you,” Parker said. “So, we aren’t going to mess with the fuselage. That just leaves the tail.”  Parker said he personally likes both designs and is open to the choice made by employees.

American Airlines posted the announcement that employees would make the decision on their Twitter account later in the evening.

Employees have until January 2 to choose between the original logo with a blue eagle between a red ‘A’ and blue ‘A’ or the new American flag design.

Capt. Ivan

American Airlines will hire 1.500 pilots over the next five years

American Airlines says it will hire 1,500 new pilots over the next five years and offer jobs to the remaining pilots who are still furloughed.

American said Monday that it would begin posting the new jobs this week and hire 45 to 50 pilots per month through next summer. It has already started hiring 1,500 flight attendants.

Parent AMR Corp. is trying to merge with US Airways Group Inc. and exit from bankruptcy protection. The merger is being held up by an antitrust lawsuit filed by the U.S. Department of Justice. A trial is set to begin Nov. 25.

AMR CEO Tom Horton said in a letter to employees that the company was preparing for the trial but would “remain open to discussions with the Justice Department regarding a settlement on appropriate terms.”

Airlines have resumed hiring pilots in part because a large number are hitting a new mandatory retirement age of 65; it was raised from age 60 a little over five years ago. Also, new federal rules on crew rest could create the need for more pilots. American is hiring flight attendants partly to replace employees who took severance payments to leave last year.

Also Monday, AMR said in a filing with the bankruptcy court that it earned $71 million in August, a reversal from a loss of $82 million a year earlier. Revenue rose 7 per cent to $2.34 billion.

Horton said that AMR could make a profit-sharing payment to employees next March — it would be the first in several years.

“We are building a strong, competitive and profitable new American which will create more opportunity for our people,” he said.

Source:  AA

Photo Credits:  AP

American Airlines Bankrupcy Plan Approved

DALLAS — A federal judge has approved American Airlines’ plan to emerge from bankruptcy protection and merge with US Airways, although the airlines must still resolve a lawsuit filed by the federal government seeking to block the merger.  

A trial over that lawsuit is scheduled for November.  

Today’s ruling by federal bankruptcy Judge Sean Lane in New York could restore a sense of momentum for the merger.  

“The judge’s ruling today shows that American is heading in the right direction,” said Mike Trevino, a spokesman for American’s parent company, AMR Corp. He called it a milestone in AMR’s turnaround since filing for bankruptcy protection in 2011.  

The airlines had originally hoped to close the merger this month and create the world’s biggest carrier. They’re now shooting for the end of the year, if they can either settle the antitrust lawsuit with the U.S. Justice Department or win the case in court.  

Last month, Lane openly wondered whether he could approve AMR’s reorganization plan before the merger won regulatory approval. Today, though, he said that he could because “there can be no dispute that the plan is feasible if the merger is allowed to proceed.” The proof, he said, is that the merger is supported by AMR’s unsecured creditors, shareholders and bondholders.  

Shares of AMR, based in Fort Worth, Texas, rose 18 cents, or 5.1 percent, to $3.69 in over-the-counter trading this afternoon. US Airways Group Inc., based in Tempe, Ariz., saw its shares slip 4 cents to $17.68.  

AMR lawyers had argued against delaying approval of the bankruptcy plan, saying that would put ongoing support for the merger at risk.  

Lane said that if the airlines lose the antitrust case, AMR will have to write a new restructuring plan that doesn’t include the merger. If the airlines settle with the Justice Department — perhaps by giving up takeoff and landing slots at Reagan National Airport outside Washington — Lane would review terms of the settlement.  

The judge also said that a proposed severance payment of $20 million to AMR CEO Tom Horton should not be part of the restructuring plan. Lane has noted that nothing would stop American and US Airways from approving the payment after the merger is completed. Under the deal, US Airways CEO Doug Parker would run the combined company and Horton would leave after a short stint as chairman.  

The airlines argue that their merger will make them more financially stable and a stronger competitor to United and Delta, currently the two biggest airlines. The Justice Department says it would concentrate too much power in four airlines and cause prices to rise for consumers.  

The Justice Department also is worried that a combined American and US Airways would be too dominant at Reagan National Airport. The department could push them to give some of their takeoff and landing slots there to other airlines, an idea advocated by JetBlue Airways. 

Source:  AP – Associated Press

Photo:  AP – Associated Press

First A319 with Sharklets handed over to American Airlines

First A319 with Sharklets to American Airlines

Last Tuesday 23rd, American Airlines took delivery of its first A320 Family aircraft at a special ceremony at Airbus facilities in Hamburg, Germany. Teams from American Airlines, Airbus and CFM International celebrated the first of 260 Airbus single-aisles the airline has selected to fly it into the future. American’s A319s will seat 128 passengers in a two-class configuration, and will be used initially on the airline’s domestic route network, and then into Central America this fall. The aircraft are powered by two CFM56 engines.

In addition to the delivery being a notable first for American Airlines, this aircraft is the very first A319 to feature Sharklets – lightweight composite wingtip devices that offer up to 4 percent fuel burn savings, providing the flexibility of either adding 110 nautical miles range or increased payload capability of over 1100 pounds (up to 500 kilograms). The American A319 is also the 100th A320 Family aircraft produced with Sharklets. Sharklets are an option on all new-build A320 Family aircraft, and will be standard equipment on all members of the A320neo Family.

“Everything about the new A319 aircraft has been designed with the customer at the center,” said Virasb Vahidi, American Airlines chief commercial officer.  “The introduction of the A319 is another important step in building a strong foundation for the new American. We’re pleased to be partnering with Airbus.”

“It’s our great pleasure to welcome back American Airlines to the Airbus family,” said John Leahy, Airbus Chief Commercial Officer – Customers. “With its introduction of the A320 Family, the airline is demonstrating its confidence in a single-aisle product that has proven to be a game-changer for airlines around the world. American is undertaking a major strategic evolution and we are pleased to watch the A320 Family becoming an integral part of the airline’s future success.”

The A320 Family is the world’s best-selling and most modern single aisle aircraft Family. To date, over 9,600 aircraft have been ordered and over 5,600 delivered to more than 380 customers and operators worldwide. With proven reliability and extended servicing periods, the A320 Family has the lowest operating costs of any single-aisle aircraft.

Source: Airbus Media Release

Photo Credits: Airbus

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