Airline business hit by Gustav

The airline industry took a hit from Hurricane Gustav this Labor Day weekend. By disrupting travel to and from the Gulf Coast, the airlines didn’t get critical holiday revenue. Airtran Airlines canceled 23 flights, Delta Airlines 21. Flights could resume to Gulfport-Biloxi International Airport in Mississippi today. It’s unclear when flights will resume to Armstrong New Orleans International.

EU approves Delta-Northwest merger

European regulators said Wednesday they have cleared Delta Air Lines' proposed acquisition of Northwest Airlines. Atlanta-based Delta still needs Justice Department approval. Also, the approval of its shareholders and the shareholders at Eagan, Minn.-based Northwest.

Delta to cut more domestic flights

Delta is preparing to cut more flights. It plans to cut domestic capacity by an extra three percent in the second half of 2008, making a 13 percent overall cut by the end of the year. The Atlanta-based carrier estimates fuel costs will be $4 billion more than what they were last year.

Delta to Cut More Jobs (Again)

Atlanta-based Delta Air Lines will cut twice as many jobs as it planned when it offered voluntary severance payouts in March. A spokeswoman says about 4,000 people took the package, and Delta willaccept all the volunteers. Delta is among several major airlines in recent months to announce cuts in domestic capacity, defer plane orders or shed jobs because of record fuel prices.

Delta boosts prices again

Atlanta-based Delta Air Lines is among major carriers raising ticket prices again. Delta, American and United will boost prices by $20 roundtrip. That brings the airlines' fuel surcharges now total $130 roundtrip on some flights. It also means people buying some cheap flights could be paying more in fees and taxes than for the airfare itself.

Delta pilots consider contract changes

Delta pilots begin voting today on changes to their contract sought by airline management. The changes include higher pay and an equity stake in the company, which is merging with Northwest Airlines. In exchange, the pilots would give airline management more flexibility in finalizing details of the combination. Voting runs through May 14th. The measure needs a majority vote for approval.

Delta officials face hometown crowd

Delta officials faced the home town crowd in Atlanta today, one day after it was announced that Delta would merge with Minneapolis-based Northwest Airlines. Like any high profile marriage, a lot of people will be watching the union of Delta and Northwest. Including passengers concerned about quality and service. And, employees worried about their jobs. Although Delta officials have already said no to any immediate personnel cuts.

But, the toughest challenge the new company faces will be from the Federal Trade Commission. However, Delta CEO Richard Anderson remains confident of the outcome. "There's far more contestability with Southwest, AirTran. And, there's free entry into these markets. From contestability and a competition standpoint, these transactions should be approved by the regulators." Delta officials say they hope to have the deal wrapped up before the end of the year. Before the pro-business White House changes hands.

Click here for more GPB news coverage of the Delta-Northwest merger.

Obstacles to Delta merger

A day after Atlanta-based Delta Air Lines announced merger plans with Northwest Air Lines, obstacles stand in the way. Two of Minneapolis-based Northwest's largest unions immediately declared their opposition to a combination. Most importantly, the airlines would need anti-trust approval from federal regulators. Still, executives at Delta and Northwest say they are aiming to close their deal by the end of this year.

Click here for more GPB news coverage of the Delta-Northwest merger.

Governor leads Georgia delegation into China

Governor Sonny Perdue is in China this morning, kicking-off a week-long trip with state business, academic and government officials. The delegation took Delta’s first daily non-stop flight to Shanghai yesterday morning. After starting the trip in Shanghai, the delegation will go to Beijing where the Governor will open Georgia’s Business Advisory Center. Perdue’s intention is to fortify Georgia’s business ties with China. The country is already Georgia’s second-largest export destination with 1.6 billion dollars in goods in 2007.

FAA Investigating Near-Collision at Hartsfield-Jackson

The Federal Aviation Administration is investigating a near-collision of two airplanes on the runway at Hartsfield-Jackson Atlanta International Airport on Friday.

Investigators believe an Atlantic Southeast Airlines flight bound for Greensboro, N.C., ignored orders from the control tower to stop its taxi across the runway, coming within seconds of running into a Mexico-bound Delta Air Lines Inc. jet, FAA spokeswoman Kathleen Bergen said.

The ASA pilot acknowledged the orders and repeated them back to controllers in the tower but did not stop, Bergen said.

The ASA jet was carrying 44 passengers, and the Delta flight had 130 aboard.

Air traffic controllers estimated the planes came within 1,250 feet - or about 2 to 3 seconds - of colliding. Both continued on their scheduled flights and arrived safely at their destinations, airline officials said.

ASA is a Delta Connection carrier and is owned by SkyWest Inc.

(The Associated Press)

Delta adjusts to rising fuel costs

Delta Air Lines today announced a partial hiring freeze among steps it’s taking to deal with soaring fuel costs.

Delta and other carriers are trying to manage the rising expense of fuel in their budgets. From a mid-January average price of $1.73 a gallon for fuel, the jump has been substantial--to an average $2.55 a gallon at the end of November.

Atlanta-based Delta says it’s holding-off on new hires for positions that are not face-to-face with the public, such as in office and administrative areas. A spokesperson says there will not be job cuts.

The airline also plans to reduce the number of flights for off-peak times on particular routes. Also, it will go ahead with the return of 13 leased jets from a fleet of around 450.

In a web-cast of an investors conference earlier today, Delta president Ed Bastian said its operating profit margins for the 4th quarter of this year, will come in flat or down 2-percent. Its earlier projections called for profits of 3-5 percent.

Delta considers purchase of another carrier

The president and chief financial officer of Atlanta-based Delta Air Lines says the possibility of the purchase of another carrier is a "front burner" issue for the company. Ed Bastian made the comments during an investor conference in New York Wednesday. He told the group there is value in consolidation. However, Bastian also said he understands the purchase of another airline would be a heavy financial burden and cause friction among employees. Bastian indicated the evaluation process is ongoing, but could not say how long that review could take.

Delta schedules extra flight for storm evacuees

Delta Air Lines says it is sending an extra flight to Honduras to bring back customers who are trying to get back to Atlanta to avoid Hurricane Felix. The Central American country’s government has called for the evacuation of Roatan Island as the storm bears down. Atlanta-based Delta says it has about 100 customers who were scheduled to return on Saturday from Roatan Island. Delta says it is contacting those who have provided cell phone numbers to alert them of the extra flight tomorrow. Local airport personnel are contacting hotels. Delta says the extra flight will depart Roatan at 8 a.m. tomorrow.

Delta to name new CEO

Delta Air Lines will name a new CEO today. The Atlanta-based carrier says it will announce Richard Anderson as its new chief. Anderson use to be chief executive of Delta rival Northwest Airlines. The move could revive speculation about a possible merger between Atlanta-based Delta and Minnesota-based Northwest. Current Delta CEO Gerald Grinstein plans to step down once his replacement is named.

Columbus: ASA/Delta pilots picket airport

Pilots from Delta Connections carrier Atlantic Southeast Airlines picketed their management at the Columbus Municipal Airport on Tuesday.

They are dissatisfied with a five-year contract, and are demanding better pay, and an improvement in scheduling and company policies.

Air Line Pilots Association spokesman and ASA pilot Captain Rick Bernskoetter told GPB News that he hopes an upcoming pilot - management mediation in Washington on August 28th will succeed:

“We will sit down with management for the 290th time, and we would like to challenge our management to actually show up and be ready to negotiate, and be ready to hammer out the final core issues of our contract, and lets get this thing done.”

Bernskoetter warns that customer service could take a nosedive if the talks do not succeed:

"Their airline service could be severely disrupted or rendered non-existent if we don't see this deal brought to a conclusion."

ASA spokesperson Kate Modolo counters:

"ASA isn't happy either about the time we've been in negotiation, because it really is in the best interests of our pilots and our customers, and of ASA to come to an agreement as expeditiously as possible."

Modolo contends:

"...ASA will not enter into a contract that doesn't make sense for our people, or for our long-tern success."

ASA is currently the sole carrier to the regional airport. The airport is negotiating with other potential carriers, American Airlines among them, and is planning expansion of its facilities. More on that here.

The pilots have also picketed at airports in Albany, Panama City and Fort Walton Beach, Fla. They took their case to the airport at Dothan, Ala. Wednesday morning.

In related aviation news:

• Government and business leaders think now is the time for the Northeast Georgia Surface and Air Transportation Commission to meet after a 15-year hiatus. The idea of a regional airport in northeast Georgia is gaining steam. More on that here.
  
  
• The nation’s most consistently late flight goes from Atlanta to Chattanooga. More on that here.
  
  
  
  
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New informaiton on deadly plane crash

There is new information on last summer’s Comair jet crash that killed 49 people. The pilots never got four important notices on airport and runway conditions. Among the missing updates, one saying the normal taxiway to the main runway was closed.

Comair is owned by Atlanta-based Delta Air Lines. The Atlanta-bound Comair flight crashed at a Kentucky airport last August shortly after taking off from the wrong runway.

On Thursday, the National Transportation Safety Board will announce the results of its investigation into what caused the crash.

Delta's legal bills coming due

Atlanta-based Delta Air Lines racked up at least 168- million dollars in bills trying to get out of bankruptcy. That’s according to an Associated Press analysis. Over the past few weeks, federal bankruptcy court in New York has received 28 sets of papers seeking payment from Delta. The largest bill was for 40-point-six million by Davis Polk and Wardwell, the airline's chief bankruptcy firm. Delta emerged from 19-months of bankruptcy on April 30th.

Delta predicts big order for planes

In Georgia business news … Delta Air Lines is buying new planes … lots of them. The Atlanta-based carrier tells the Wall Street Journal it may order as many as 125 of Boeing’s new 787 Dreamliner jets by the end of the year. Delta just emerged from a year-and-a-half-long bankruptcy. The company says it’s still negotiating seat configurations and how much the planes would cost to operate and maintain.

Delta enlists Perdue in bid for China route

Delta Airlines is the largest US carrier that does not fly to China.

But CEO Gerald Grinstein is hoping the Atlanta-based carrier can establish a route from its hometown to Shanghai by next year.

"If this is the China century, then the state of Georgia, the city of Atlanta and Delta Airlines are prepared to be a part of it," he says.

American, United and Continental Airlines have direct routes to China, but Delta has tried and failed in the past to gain that privilege.

This time, however, ten southern governors, including Gov. Sonny Perdue, are lobbying the federal government on Delta's behalf.

In a letter to US Transportation Secretary Mary E. Peters, Perdue notes the Southeast has the fastest growing economy in the nation. He says a direct Atlanta-Shanghai route would aid economic development.

Delta gets another break

More good news for Delta Air Lines. Today credit card processors lifted a billion-dollar withholding requirement. The processors were holding off paying Atlanta-based Delta for tickets purchased with Visa or MasterCard that hadn’t been used for travel. The withheld payments totaled 800-million dollars. Now Delta can use that money to improve its domestic and international markets. Delta emerged from a two-and-a-half-year bankruptcy in April.