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American Eagle Airlines Fined $900,000 for Tarmac Delay

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    Boeing, Air Lease Corporation Finalize Order for Up to 60 Next-Generation 737s


    SEATTLE, Oct. 4 — Boeing and new leasing company Air Lease Corporation (ALC) have finalized an order for up to 60 Next-Generation 737-800s.
    The order, first announced at the Farnborough Airshow in July, is for deliveries through 2017. In addition to 54 firm orders the deal includes six additional airplanes to be reconfirmed.

    “Our management team has been working closely with Boeing for more than 30 years,” said Steven F. Udvar-Hazy, chairman and CEO of Air Lease Corporation. “This order for Next-Generation 737-800s continues that great tradition. With this large and long-term commitment we’ll be able to offer our clients a most economical, fuel-efficient and versatile airplane, suitable for a variety of profitable missions.”

    “The Next-Generation 737 is one of the world’s best-selling airplanes for a number of very good reasons,” said Jim Albaugh, president and CEO, Boeing Commercial Airplanes. “Airlines and lessors remain confident in the airplane’s ability to deliver outstanding, dependable operational and financial performance across the widest range of missions. We look forward to providing that continued value to Air Lease Corporation and its clients and to a long and successful continued partnership with Steven Udvar-Hazy and his new leasing company.”

    About Air Lease Corporation
    Air Lease Corporation (ALC), based in Los Angeles, Calif., was founded in February 2010, and is led by two airline industry veterans, Steven F. Udvar-Hazy and John L. Plueger. ALC is a well capitalized and airline-customer-focused operating lessor and market-maker, committed to providing optimized jet fleet solutions to airline clients worldwide.

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    FAA Proposes $50,000 Civil Penalty Against DebMed USA for Alleged Hazardous Materials Violations

    fine owed the FAA
    Press release

    WASHINGTON, DC–The U.S Department of Transportation’s Federal Aviation Administration (FAA) proposes a $50,000 civil penalty against DebMed USA LLC, of Charlotte, North Carolina, for allegedly violating the Hazardous Materials Regulations.

    The FAA alleges that on June 22, 2016, DebMed offered 142 lithium metal batteries to American Airlines for transportation by air from Dallas-Fort Worth International Airport to San Francisco, CA, in the checked baggage of a DebMed employee.

    Lithium metal batteries are prohibited as air cargo on passenger aircraft and are also prohibited in checked baggage. Airline passengers may only carry uninstalled, spare lithium batteries in carry-on baggage when the batteries are for personal use in portable electronic devices.

    Airline baggage is not an authorized method for companies to move lithium batteries or other hazardous materials. The rules for carrying lithium batteries and lithium battery- powered devices as an airline passenger are available on the FAA website.

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  • Nation’s Largest Travel Companies Call on Airlines to Disclose Fares/Fees in Current Systems, Protect Comparison Shopping

    More than 115 Founding Members of Open Allies for Airfare Transparency Include Largest U.S. Travel Sellers, Major Trade Organizations, Corporate Travel Departments from Companies Including Dell, Oracle, News Corp.

    WASHINGTON, Jan. 20, 2011 -USNewswire/ — More than 115 of the nation’s largest travel companies and organizations today launched Open Allies for Airfare Transparency, an industry-wide effort to urge major airlines to share all of their fare and ancillary fee information through the distribution systems they currently use and not to circumvent those systems through new, untested, and potentially costly “direct connect” approaches.
    Founding members of the Open Allies coalition include many of the nation’s largest travel agencies, travel management companies, corporate travel departments, online travel agencies, global distribution systems, and travel trade organizations. Among the founding members are:

    • Many of the nation’s largest travel sellers, including 20 of the 53 companies with annual sales of more than $100 million on Travel Weekly’s 2010 “Power List.”
    • Corporate travel departments for many of the world’s largest companies, including Oracle (#13 on the Corporate Travel 100 list compiled by Business Travel News), Dell (#35), News Corp. (#70), Logitech, Sapient, Sodexo, and Textron, among others.
    • Trade associations representing broad segments of the travel industry, including the American Society of Travel Agents, Business Travel Coalition, European Technology and Travel Services Association, Interactive Travel Services Association, and the Scottish Passenger Agents Association.

    Hidden fees and closed airline systems are forcing millions of consumers to ‘fly blind’ when making their travel arrangements,” said Andrew Weinstein, director of the Open Allies coalition. “When you can’t see the full price of tickets or compare them among airlines, you lose the greatest benefit of our modern travel system and the benefits of price competition among the airlines. Some airlines want to turn back the clock to the days of proprietary reservation systems, silos of closed data, and one-off displays without price comparisons. Consumers deserve the ability to compare prices across airlines, and Open Allies will work to ensure they continue to have it.”

    The coalition plans to work with stakeholders across the travel industry to advocate on behalf of price transparency and full access to airline pricing and fee information.

    “Untested, incomplete and costly direct connect systems are not a good idea,” said Kevin Mitchell, Chairman of the Business Travel Coalition. “Through Open Allies, travel industry organizations, individual distribution system participants and corporate travel managers are providing the leadership and analysis that indicates direct connect will not usher in better, cheaper, faster travel solutions, but rather will reduce price competition and reintroduce to the industry and consumers the inefficiencies and opaqueness of the 1970s air ticket purchasing environment.”
    As part of its educational efforts, Open Allies released the first in a series of “white papers” on the technological, financial, and policy issues involved. That analysis, “Customized Services and Comparison Shopping: Preserving Price Transparency in the Age of ‘Unbundled’ Airline Services,” is available on the Open Allies website.

    “Travel agents are the front-line advocates for travelers, and those agents – from mom-and-pop travel agencies to the largest travel companies in the world – are overwhelmingly opposed to hidden fares or any system that reduces price transparency,” said Paul Ruden, Senior Vice President of the American Society of Travel Agents. “Our members are some of the airlines’ closest partners. We hope the airlines reconsider the more fragmented direct connect approach and work with us to make all of their fares and fees available to all travelers through the systems the travelers themselves choose to use.”

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    Delta Air Lines Announces $158 Million Quarterly Profit and $1.4 Billion Annual Profit, Excluding Special Items

    Reports GAAP quarterly profit of $19 million and annual profit of $593 million
    an 18, 2011

    ATLANTA, Jan. 18, 2011 /PRNewswire/ — Delta Air Lines (NYSE: DAL) today reported financial results for the December 2010 quarter. Key points include:

    • Delta’s net income for the December 2010 quarter was $158 million, or $0.19 per diluted share, excluding special items(1). This is a $383 million improvement year over year.
    • Delta’s GAAP net income was $19 million, or $0.02 per diluted share, for the December 2010 quarter.
    • Delta’s net income for 2010 was $1.4 billion, excluding special items. Including $851 million in special items, Delta’s net income for 2010 was $593 million.
    • 2010 results include $313 million in profit sharing expense, including $38 million in the December quarter, in recognition of Delta employees’ achievements toward meeting the company’s financial targets.
    • Delta’s adjusted net debt at the end of 2010 was $15.0 billion, a $2.0 billion reduction from prior year.
    • Delta ended 2010 with $5.2 billion in unrestricted liquidity.

    “Our 2010 results are among the best in Delta’s history. They would not have been possible without the dedication and determination of Delta employees worldwide and we are pleased we will pay more than $300 million in profit sharing for 2010,” said Richard Anderson, Delta’s chief executive officer. “These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011.”

    Revenue Environment

    Total operating revenue for the December 2010 quarter was $7.8 billion, an increase of $1.0 billion, or 14%, compared to the same period last year.

    • Passenger revenue increased 15%, or $889 million, compared to the prior year period on 7% higher capacity. Passenger unit revenue (PRASM) increased 8%, driven by a 9% improvement in yield.
    • Cargo revenue decreased 7%, or $17 million, due to the elimination of freighter operations, partially offset by higher volume and yield.
    • Other, net revenue increased 14%, or $112 million, primarily due to higher SkyMiles revenue and revenues from ancillary products and services.

    “Through the momentum we built in 2010, we expect to maintain our March quarter margins year over year despite more than $350 million in higher costs from the recent steep run-up in fuel prices,” said Ed Bastian, Delta’s president. “Industry-wide fare increases, combined with growth in Delta’s ancillary products and services, will provide a more long-term, revenue-based solution to addressing the high fuel environment.”

    Cost Performance

    In the December 2010 quarter, operating expense increased $644 million year over year due to higher fuel price, volume- and revenue-related expenses, and profit sharing expense, which were partially offset by incremental merger cost synergies.

    Consolidated unit cost (CASM[2]), excluding fuel, profit sharing and special items, decreased 2% in the December 2010 quarter on a year-over-year basis, on 7% higher capacity. Consolidated CASM, including fuel, profit sharing and special items, increased 2%.

    Non-operating expense excluding special items decreased $67 million due to benefits from Delta’s debt reduction initiatives. Including special items, non-operating expense was $36 million lower than in the December 2009 quarter.

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    A330 and A340 Landing Gear Airworthiness Directive

    EASA Emergency AD No.: 2011-0122-E has been published limiting the life of A330 and A340 landing gear parts.

    During ground load test cycles on an A340-600 aeroplane, the MLG bogie beam prematurely fractured. The results of the investigation identified that this premature fracture was due to high tensile standing stress, resulting from dry fit axle assembly method. Improvement has been introduced subsequently with a grease fit axle assembly method.

    Click to read the full pdf

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    Boeing Responds to the NTSB 787 Battery Update


    And This is what Boeing Has to Say

    SEATTLE, Feb. 7, 2013 / — Boeing (NYSE: BA) welcomes the progress reported by the U.S. National Transportation Safety Board (NTSB) in the 787 investigation, including that the NTSB has identified the origin of the event as having been within the battery. The findings discussed today demonstrated a narrowing of the focus of the investigation to short circuiting observed in the battery, while providing the public with a better understanding of the nature of the investigation.

    The company remains committed to working with the NTSB, the U.S. Federal Aviation Administration (FAA) and our customers to maintain the high level of safety the traveling public expects and that the air transport system has delivered. We continue to provide support to the investigative groups as they work to further understand these events and as we work to prevent such incidents in the future. The safety of passengers and crew members who fly aboard Boeing airplanes is our highest priority.

    The 787 was certified following a rigorous Boeing test program and an extensive certification program conducted by the FAA. We provided testing and analysis in support of the requirements of the FAA special conditions associated with the use of lithium ion batteries. We are working collaboratively to address questions about our testing and compliance with certification standards, and we will not hesitate to make changes that lead to improved testing processes and products.

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