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Airline Bankruptcy / Merger / Layoffs Thread (merged)

General discussions of the systemic, societal and civilisational effects of depletion.

Re: Alitalia about to collapse. Alaska not far behind

Unread postby smallpoxgirl » Sun 14 Sep 2008, 13:54:02

I'm not sure Alaska is doing that badly. Obviously all the airlines are cutting back, flying less, and laying off staff. Alaska just got rid of it's last MD80's, so they're flying only the more efficient 737's. Their regional subsidiary Horizon is now running exclusively Bombardier Q400's which are a turbo-prop plane. The turbo-props are much more efficient than commuter jets, and Horizon should be really well positioned to out compete other regionals IMHO.
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Re: Alitalia about to collapse. Alaska not far behind

Unread postby bl00k » Sun 14 Sep 2008, 17:55:47

Four years ago by MonteQuest;
http://www.peakoil.com/fortopic1605.html
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Re: Airline Bankruptcy/Merger/Layoffs Thread

Unread postby frankthetank » Mon 06 Oct 2008, 16:11:02

Sun Country is dead...

MINNEAPOLIS —Sun Country Airlines filed for Chapter 11 bankruptcy on Monday, blaming legal troubles from a fraud investigation of its parent company Petters Group Worldwide.

The airline said Sun Country would continue operating its normal schedule. Chapter 11 bankruptcy allows a company to reorganize its finances with protection from creditors.
``We were forced to take this action as a result of recent events at Petters Group Worldwide,'' Chairman and Chief Executive Stan Gadek said in a statement.

Petters Group founder Tom Petters has been charged in what authorities say was a scheme to defraud investors of millions. Gadek said last week that Sun Country, which was suffering from a cash-flow problem, couldn't turn to its parent for help because of Petters' legal troubles.

The filing is for Petters Aviation and its sub


They were the ones who wanted the state of MN to borrow them money a while back. They were doomed even without these legal troubles.
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Re: Alitalia about to collapse. Alaska not far behind

Unread postby mos6507 » Tue 07 Oct 2008, 01:27:58

bl00k wrote:Four years ago by MonteQuest;
http://www.peakoil.com/fortopic1605.html


Funny how he talks about US Airways going chapter 11. I just flew US Airways to Florida for a business trip (I have so used up my carbon footprint for the year). Chapter 11 isn't necessarily the end of the line. I don't know how they do it, but they offer some of the lowest fares around.
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Re: Airline Bankruptcy/Merger/Layoffs Thread

Unread postby RSFB » Wed 29 Oct 2008, 08:50:56

Sterling, a Denmark-based / Icelandic-owned budget airline is going to declare bankruptcy today.

This is blamed on Iceland's financial crisis along with monetary losses due to high fuel prices and less demand for air travel:

Article

This one sucks for me personally. I live in Stockholm and Sterling was one of the few budget airlines here.
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Re: Airline Bankruptcy/Merger/Layoffs Thread

Unread postby bratticus » Wed 28 Jan 2009, 08:20:05

AirTran quarterly loss widens on fuel hedges

Reporting by Kyle Peterson
Editing by Derek Caney
Reuters
January 28, 2009

AirTran Holdings (AAI.N), parent of AirTran Airways, said on Wednesday its net loss widened as its fuel hedge program shed value amid falling oil prices.

... skip ...

The company reported a one-time loss of $147.7 million related to fuel hedge contracts. During the fourth quarter, AirTran unwound about 78 percent of its 2009 fuel hedge contracts to mitigate the potential for more losses on oil price declines.

... snip ...
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Re: Airline Bankruptcy/Merger/Layoffs Thread

Unread postby IslandCrow » Thu 29 Jan 2009, 12:23:15

I was looking to the airlines with passangers as an indication of the problem with peak oil. Now the ecomony is making sure the freight side is taking a major hit:

'Unprecedented' fall in air cargo

The International Air Transport Association (Iata) saw air cargo go into "freefall" in December, with a year-on-year fall of 22.6% in traffic.

The "unprecedented" figure is worse than the 14% drop after the 9/11 terror attacks on New York.
...
Iata says that during 2009 there will be declines of 3% in air passenger traffic and 5% in freight cargo carried.
...

About 35% of international goods trade is by air, says Iata. In 2008, cargo traffic fell 4% compared with a 4.3% increase in 2007, the body said, its first annual fall since 2001.


I presume the 35% figure relates to value of goods and not weight! Given the size of the fall in December, I think Iata is being very optimistic for 2009.
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Re: Airline Bankruptcy/Merger/Layoffs Thread

Unread postby IslandCrow » Thu 29 Jan 2009, 12:30:00

Also not good for Boeing's dream(liner):

Russia's S7 cancels order

Russian airline S7 has cancelled an order worth $2.4bn (£1.7bn) for 15 Boeing-787 Dreamliner aircraft.

It is the first airline to cancel a major contract for the 787.
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Subjectivist » Sun 03 Nov 2013, 16:13:02

http://www.politico.com/story/2013/10/b ... 99140.html

Why are there so many people in favor of this merger? It would mean major layoffs in those airports where both airlines have service right now.
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby dolanbaker » Sun 03 Nov 2013, 16:42:21

Subjectivist wrote:http://www.politico.com/story/2013/10/barack-obama-allies-airline-merger-american-airlines-us-airways-99140.html

Why are there so many people in favour of this merger? It would mean major layoffs in those airports where both airlines have service right now.

Quite simply because airlines have been forced to do more with less support staff & facilities, mergers are the only way they can achieve that.
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Tanada » Sun 03 Nov 2013, 20:19:44

With all the distractions going on I had completely forgotten this story was still unresolved. I wonder if the Big Donors will be able to get the Justice department to drop the lawsuit and let the merger go through? President Obama is term limited out so why should he care about political donations at this point, ACA is his legacy and nobody is going to forget him when he retires in 2017.
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby AirlinePilot » Mon 04 Nov 2013, 14:29:59

I think the USAirways/American merger legal battle is about some fat cat in Washington getting his way. Slots or more flights, possibly new construction dollars etc. It will be resolved through a settlement and they will be allowed to finish the process. Someone did not like what they saw and pulled some strings to get something that their greed requires.

Payola, corruption, greed, kickback...call it what you want but it seems that is how government operates these days since NO ONE is holding their feet to the fire.
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Tanada » Tue 02 Aug 2016, 12:28:44

In a related development sales of widebody passenger jets like the Airbus A-380, Boeing 767 and 747 are starting to bite the construction end of the business hard. Boeing has stated they are considering ending production of the 747 due to lack of orders and the Airbus A-380 was never able to make the sales goals it was expected to reach. All this bad news for super jumbo jets even though fuel prices are very low for the last 18 months compared to the last 2009-2014 years average.

The Airbus A380 is a true double-decker jet and the world’s largest passenger jet, but airports that use it had to build new facilities to handle the plane. While it sits between 525 and 853 people depending on the class configuration, its bulk means that relatively few airports can handle the plane. Many US carriers prefer to fly multiple times per day between destinations as a way to meet demand for aircraft, rather than flying a smaller number of flights with a higher number of passengers per plane. As of May, only 319 Airbus A380s had been ordered, with 142 of them ordered by Emirates. Virgin Atlantic and Quantas have both booked aircraft, but the manufacturer has acknowledged that these planes may never be built if the market for the A380 doesn’t improve. While Boeing spent much less on their 747-8 extension than Airbus invested in the enormous A380, neither plane may be very profitable. That’s particularly true for Airbus, which is expected to eat the estimated $25 billion it cost to build the A380 in the first place.

The current version of the 747 is known as the 747-8. It’s a 250 ft jet with a redesigned wing, raked wingtips, additional internal fuel capacity, and fly-by-wire capability for lateral controls. According to Boeing, the new international version of the 747, the 747-8I, is 30% quieter, 16% more fuel efficient, and offers 13% lower seat costs per mile. The problem, for Boeing, is that not enough customers are actually ordering the 747-8. The company has therefore warned that “If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747.”

When Boeing introduced the 747, the four-engine jet quickly became an icon of modern air travel. The 747 was designed at a time when Boeing felt it might be quickly replaced by supersonic aircraft — the distinctive double-decker hump at the front of the plane that now typically offers additional first-class seating was intended to allow for an external cargo door if passengers shifted to faster aircraft. Now, with orders falling, Boeing is considering halting production on one of the most successful and long-lived jet families in history.

Customers have been moving away from four-engine widebody aircraft and towards more efficient twin-engine planes with lower operating costs. Boeing’s 777 and 787 continue to be popular, and it’s not the only widebody company facing a large-scale slowdown. The Airbus A380 may also be headed for an early retirement, thanks to a near-total lack of interest in the world’s largest jet.


http://www.extremetech.com/extreme/2327 ... so-at-risk

Tim Clark, President of Emirates, told Bloomberg that not only had discussions on a new re-engined A380neo version of Airbus’s 525-seat jet “kind of lapsed,” but that his “main concern is that they stop producing the plane.”

This was the first intimation that sudden death is a possibility for the troubled super jumbo. And the numbers highlight this risk.

It has been years since there was any significant commercial demand for the A380, aside from Emirates steadily growing its position to 142 orders. In April, Airbus executives admitted that output in 2017 could be as low as 20 aircraft. This is far below the 30 aircraft needed for annual recurring breakeven (this excludes program nonrecurring costs; there is no way to even begin to recover the $25-30 billion or so invested in the development of this aircraft).

Thus, the question becomes, how long is Airbus willing to lose money, particularly when there’s no doubt about the ultimate outcome? Assuming that next year’s rate of 20 isn’t too ruinous, and assuming that Emirates can keep taking 14 per year (despite declining traffic growth rates and falling load factors), that means Airbus can sustain about three more years of production (14 Emirates planes per year, plus six for other customers). But then again, since Airbus is losing money on all of these planes, Tim Clark is correct to worry that Airbus could simply end the program at any time.

Teal Group has always provided the most pessimistic A380 forecast. But it turns out we may have been much more optimistic than reality.


http://www.forbes.com/sites/richardabou ... 2b27db61b6
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Subjectivist » Tue 02 Aug 2016, 16:43:05

SAN FRANCISCO, July 26, 2016 /PRNewswire/ -- Virgin America Inc. (NASDAQ: VA) today announced that the merger agreement with Alaska Air Group, Inc. (NYSE: ALK), the parent company of Alaska Airlines, Inc., was approved by an affirmative vote of the holders of a majority of the outstanding shares of Virgin America voting common stock. A report reflecting the complete voting results will be available on a Current Report on Form 8-K to be filed later this week by Virgin America.

About Virgin America

Known for its mood-lit cabins, three beautifully designed classes of service and innovative fleetwide amenities — like touch-screen personal entertainment, WiFi and power outlets at every seat, Virgin America has earned a host of awards since launching in 2007 — including being named the "Best Domestic Airline" in Travel + Leisure's World's Best Awards for the past nine consecutive years and "Best U.S. Airline" in Condé Nast Traveler's Readers' Choice Awards for the past eight consecutive years. For information, visit www.virginamerica.com.

About Alaska Airlines

Alaska Airlines, a subsidiary of Alaska Air Group (NYSE: ALK), together with its partner regional airlines, serves more than 100 cities through an expansive network in the United States, Canada, Costa Rica and Mexico. Alaska Airlines ranked "Highest in Customer Satisfaction Among Traditional Carriers in North America" in the J.D. Power North American Airline Satisfaction Study for nine consecutive years from 2008 to 2016. Alaska Airlines' Mileage Plan also ranked "Highest in Customer Satisfaction with Airline Loyalty Rewards Programs" in the J.D. Power Airline Loyalty/Rewards Program Satisfaction Report for the last three consecutive years. For reservations, visit www.alaskaair.com. For more news and information, visit the Alaska Airlines newsroom at www.alaskaair.com/newsroom.


http://www.aviationpros.com/news/122367 ... -group-inc
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Tanada » Wed 03 Jan 2018, 08:22:18

Alaska Airlines/ Virgin America Merger

Mile for mile, one airline burns less jet fuel per passenger than any other.

“Alaska in particular has a very fuel-efficient fleet,” said Daniel Rutherford with the International Council on Clean Transportation in San Francisco.

He said Alaska Airlines has had the best record on fuel economy for the past seven years.

“They use the right aircraft on the right routes, which allows them to burn less fuel.”

The dirtiest airlines include Delta, JetBlue and Virgin America. They burn as much as one-fourth more fuel than Alaska does for every mile they carry a paying passenger.

Alaska might not top the list of fuel efficiency next year: It’s in the middle of a merger with Virgin America, the most polluting of the major carriers. That merger has made Alaska the nation’s fifth-largest airline.

Overall, the airline industry has gotten 3 percent more fuel-efficient in the past two years, but for a reason their customers might not like to hear.

“It was mostly due to the fact that airlines are putting more seats on their planes,” Rutherford said.

So if you feel like a sardine in a can next time you’re at 30,000 feet, comfort yourself with the thought that you’re doing a little less damage to the climate.

Rutherford said efficiency improvements were swamped by the 10 percent growth in air travel over the past two years. Jet fuel consumption, and the carbon dioxide propelled out the back of jet engines, rose by 7 percent.

“Make no bones about it, fuel is a big part of our business,” Alaska Airlines CEO Brad Tilden said in a company sustainability report. “Our fuel consumption represents 99 percent of our carbon footprint. Reducing the amount of fuel we consume is a major focus.”

Even so, the Seattle-based airline’s fuel use and carbon pollution have grown 40 percent in less than a decade as the number of Alaska flights has soared.

As jet fuel prices have fallen in half in the past couple years, flight volumes, airline profits and fuel consumption have all taken off.

The low prices also make investments in fuel efficiency or alternative fuels less attractive economically.

“We do have this current headwind in that jet fuel is very inexpensive right now,” Rutherford said.

The global aviation industry’s carbon emissions are forecast to triple in the next 30 years unless major policy changes reverse that trend.


MERGER LINK
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Re: Airline Bankruptcy / Merger / Layoffs Thread (merged)

Unread postby Tanada » Wed 03 Jan 2018, 08:29:19

Island Air Bankruptcy, regional Hawaiian airline.

In the past three months, Island Air went through a whirlwind of changes, displacing its 423 employees, engaging Hawaii businesses and sending shockwaves through the community.

The case is still ongoing as Hawaiian Airlines (Nasdaq: HA) recently agreed to purchase Island Air’s operating certificate and other assets for $750,000. A hearing on the purchase will be held on Jan. 5.

During a recent court hearing on the bankruptcy, Island Air CEO David Uchiyama said the company’s downturn began when plans to implement new planes were delayed, causing consequent delays to improving the airline’s finances.

This led to Island Air’s inability to pay rent for its aircraft, inciting the beginning of the end for Hawaii’s second largest airline.

On Oct. 12, Island Air’s aircraft lessor, Ireland-based lessor Elix Assets 8 Ltd., served the interisland carrier with notices of termination and demanded the airline to surrender its airplanes while it was in the process of negotiating its aircraft leases.

This resulted in the airline to file for Chapter 11 bankruptcy protection on Oct. 16 in order to continue operations, which caused Wells Fargo Bank Northwest, National Association to file a lawsuit in an attempt to retrieve the airline's three Bombardier Q400 turboprops, the entirety of the airline’s fleet. Wells Fargo also sought to collect the $4.58 million owed by Island Air, which had not paid rent or maintenance reserves since July.

Island Air then revealed it was in discussions with investors for debtor-in-possession and longer-term financing of about $6.5 million, projecting its unrestricted cash to jump from $413,649 in October to $5.7 million in November if it receives the financing. In October, Island Air had $3.4 million in passenger revenue.

The airline was granted continued use of cash collateral, but in an unexpected turn on Nov. 9 Island Air announced its decision to cease all operations by the next day after having exhausted all its legal options to stay in business, and its failure to attract new investors.

"Although lessors’ motion for temporary restraining order was denied by Judge Robert Faris of the District of Hawaii Bankruptcy Court on Friday, Nov. 3, lessors continued to engage in multi-directional legal attacks which Island Air could no longer combat without additional financing," the company said in a statement. "The aircraft lessors were seeking termination of all leases and immediate repossession of all aircraft."

Shortly after the announcement, Hawaiian Airlines issued a statement saying it was working on providing flight relief for Island Air travelers, and increased the number customer service staff across the state's airports.

Hawaii’s largest airline then joined dozens of other local businesses to help provide employment opportunities for Island Air’s 423 employees, including participation from banks, hotels and insurance companies.

On Nov. 15, bankruptcy court Judge Robert Farias converted Island Air’s Chapter 11 emergency bankruptcy protection filing to a Chapter 7 liquidation case after the airline said it was incurring operating costs with “no apparent prospects of satisfying all of its post-petition debts.”

According to a financial statement submitted last month, Island Air had cash and cash equivalents of $737,030 as of Aug. 31, down 62 percent from the $1.9 million it had at the end of 2016. The airline’s total current assets of $2.9 million was down 50 percent, from $5.8 million last year. It reported total assets of $14.3 million and total liabilities of $39.4 million as of Aug. 31.


LINK

In a surprise twist to the Island Air bankruptcy case, the trustee overseeing the liquidation filed a last-minute motion this morning disclosing that Hawaiian Airlines’ parent company has agreed to purchase the operating certificate and other assets of the failed company for $750,000.

Hawaiian Holdings Inc. said it would buy the operating certificate for $450,000 and immediately provide cash advances to pay for Chapter 7 administrative expenses. Hawaiian said it would buy other assets, such as ground-service equipment, furniture and frequent-flier lists, for $300,000.

Bankruptcy Judge Robert Faris said he was prepared to grant the motion to dismiss the case until the trustee came through with the surprise buyer. Faris gave preliminary approval to the sale. A hearing on the sale is set for Jan. 5.

Hawaiian spokesman Alex Da Silva said the decision to buy the operating certificate was a way to bring in-house the company’s turboprop airline, ‘Ohana by Hawaiian, rather than outsource the contract as it is now to Idaho-based Empire Airlines.

Da Silva said the state’s largest carrier formed a new wholly-owned subsidiary, Elliott Street Holdings, to purchase the stock of Island Air and assume ownership of Island Air’s Federal Aviation Administration operating certificate as well as other assets. ‘Ohana by Hawaiian, which launched service in March 2014 and now has three 48-seat ATR-42s, flies between Honolulu and Molokai, Honolulu and Lanai, Kahului and Kona, Kahului and Molokai, Kahului and Hilo and Lanai and Molokai.

“If approved, the sale will allow ‘Ohana by Hawaiian to assume oversight of operations currently provided under contract by Empire Airlines,” Da Silva said. “Those operations would include the hiring of pilots, flights attendants, and customer service and maintenance crews (who now are all Empire employees). We believe that assuming the FAA certificate will greatly benefit our guests by improving the efficiency and reliability of ‘Ohana by Hawaiian.”

If the sale is approved, then the trustee’s attorney, Simon Klevansky, said he would reconvert the case to a Chapter 11 reorganization bankruptcy and Hawaiian would buy new shares of what essentially would be a shell company.

Klevansky said the trustee is still working on trying to enable the more than 400 Island Air employees to gain access to their 401(k) retirement accounts.

Island Air filed for Chapter 11 bankruptcy on Oct. 16 and ceased operations on Nov. 10. It converted the case to Chapter 7 on Nov. 15.


Hawaiian Air Assets Sold
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