ASA Cuts More Pilots

A regional carrier for Delta Air Lines is cutting more of its workforce. Atlantic Southeast Airlines is furloughing an additional 56 pilots this fall. The Atlanta Journal Constitution reports the layoffs go into effect September 1st, and its on top of the 80 laid-off earlier this year. The cuts are the first in the history of ASA. It was last month that Atlanta-based Delta announced it would be making deeper cuts to its capacity to help weather the economic downturn.

Delta Dumps Bag Fee

Delta Air Lines says it's scaling back plans to charge a $50 fee for a second checked bag on international flights. The Atlanta-based airline says some major competitors have refused to match the fee. Delta says the fee will apply only to travel between the U.S. and Europe. When Delta made the initial announcement a month ago, the fee was supposed to apply to all international travel. Delta has said the new fee was expected to generate more than $100 million annually for the airline. It did not provide a new figure Wednesday. The fee is effective for travel beginning July 1. The first checked bag on all Delta international flights remains free.

(Associated Press)

Delta Adds Jobs

More jobs are on their way to Georgia. Atlanta-based Delta Air Lines will add up to 500 positions in the Atlanta area as a result of its merger with Northwest Airlines. And a call center is setting up shop in Columbus instead of moving overseas. Prosperity America says it will hire 300 employees over the next three years to staff the call center.

Delta, Coke Post 1st-Q Numbers

Major Georgia companies Delta Airlines and Coca-Cola are out with their first-quarter earnings reports, with both continuing to weather the economic storm.

Atlanta-based Delta was hit with a net loss of $794-million. Its struggles included bad bets on future fuel costs. To help make up the deficit, the world’s largest airline announced a new $50 fee for most passengers checking a second bag on international flights.

For Atlanta-based beverage maker Coca-Cola, it reported a net income loss of more than $1.3 billion in the first quarter--around 10-percent.

ASA Grounds Some Planes, Delays Service

A major regional carrier for Atlanta-based Delta Airlines has grounded 40-percent of its fleet in order to conduct engine safety checks. With a good portion of its fleet temporarily grounded, ASA says Delta and other connected partners have stepped-in to get passengers on different flights.

Atlantic Southeast Airlines took all 60 of its CRJ-200 model jets out of service Tuesday after self-reporting concerns to federal aviation officials. ASA made the move after a recent internal review showed uncertainty over whether engines in the planes had been inspected according to the manufacturer’s recommendations.

A spokesperson for Atlanta-based ASA says the re-inspections should be complete by mid-morning Thursday.

ASA operates as a contract carrier for Delta, which is now the world’s largest airline.

Delta Posts 4Q Loss

Delta Airlines reports a net loss of $1.4 billion for the final quarter of last year. It comes within a weakened economy and the carrier’s recent merger with Northwest.

The loss of $2.11 a share was a big spike compared to the year earlier--an 18-cents-a-share loss for the carrier. For the full year of 2008, Delta lost nearly $9 billion. Other major carriers such as American and United Airlines last week reported fourth-quarter losses due to weak travel demand tied to the global financial crisis.

For Delta, much of its negative balance sheet last quarter involved $900 million given in employee stock awards relating to the merger with Northwest.

But while predicting a "sizable loss" for the first three months of this year, Atlanta-based Delta is forecasting a "solidly profitable" 2009, driven by lower fuel costs and its plan of reducing capacity.

Delta says it will cut its flight volume by an average 6-8 percent across its system this year.

Airlines threaten to move flights from Atlanta

Atlanta-based Delta Airlines and discount carrier AirTran Airways are threatening to move flights from Atlanta as they negotiate new lease agreements with Hartsfield-Jackson Atlanta International Airport.

They say if their costs can’t remain competitive with the fees they must pay at the Atlanta airport, they could take their connecting flight business elsewhere.

Their lease agreements with Hartsfield-Jackson don’t expire until September 2010.

Neither Delta nor Airtran are thinking about pulling out altogether.

The two carriers represent roughly 93 percent of the traffic at the Atlanta airport. According to the airport, their business with all airlines is expected to generate about 160 million dollars in revenue for 2009.

(Associated Press)

Poor Economy Slows Atlanta Airport Project

The recession isn't the only problem for Hartsfield-Jackson International Airport that threatens construction on its long-delayed international terminal.

Atlanta-based Delta Air Lines warns that rising costs at the airport raise questions about the size of the carrier's future operations there. The warning comes as Delta prepares for talks with airport officials on new airline leases.

Hartsfield-Jackson's existing 30-year airline agreements expire next year, and formal talks are expected to begin in the next couple of months.

Airport spokesman John Kennedy says construction may likely be halted anyway in the next few weeks due to tight credit markets.

The $1.6 billion project is three years behind schedule. The latest projection is for a 2012 opening.
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Information from: The Atlanta Journal-Constitution,
http://www.ajc.com

(AP)

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Delta Connection Carrier to Cut 80 Pilots

Eighty pilots with Delta Connection carrier Atlantic Southeast Airlines are losing their jobs in the face of tough economic conditions. The Atlanta Journal-Constitution reports the furloughs are the first in the history of Atlanta-based ASA. All of the carrier’s 1,700 pilots are based in Atlanta. A company spokeswoman says those affected have been offered voluntary retirements and voluntary leaves. As Atlanta-based Delta has plans in-place to cut capacity by six to eight percent, ASA is affected by those cutbacks--being a Delta Connection carrier. The ASA layoffs take effect February 9th.

Dire economy led Georgia news in '08

The vast economic crisis has left scores of Georgia's houses empty, its banks shuttered and sent thousands of its residents searching for jobs even as its unemployment rate balloons to heights not seen since Ronald Reagan was president.

The nationwide recession was the top Georgia news story of 2008, according to state editors and news directors voting in The Associated Press' annual survey.

Other stories high on most lists included an energy crisis that sent gas prices on a roller-coaster ride, the U.S. Senate runoff that thwarted Democratic plans for a super-majority in the Senate and the months-long trial of courthouse gunman Brian Nichols.

Yet the economic doldrums was the top choice for seven of 12 Georgia AP members participating in the news cooperative's survey.

Georgia residents began feeling the economic fallout early this year as a growing number of homes remained unsold and credit grew tighter. Firms fired workers, governments furloughed staffers, foreclosures spiked and the state unemployment rate soared to 7.5 percent - the highest in 25 years.

The bleak economy forced regulators to close down five state banks, and led Gov. Sonny Perdue to order spending cuts of at least 6 percent to narrow a deficit that could top $2 billion in 2009.

The new year is unlikely to bring much relief. State economists warn unemployment will climb higher and housing prices will continue to plummet through the first half of 2009.

Volatile energy prices were the No. 2 story of the year. The topsy-turvy fuel market sent the price of crude soaring to as high as $150 a barrel in July before crashing to $33 this month.

The jump in prices, which soared after Hurricanes Gustav and Ike shuttered Gulf Coast refineries, sparked panic among Georgia drivers. Gas stations advertised fuel at $8 a gallon, while some drivers camped out at gas stations to be first in line for new deliveries.

Georgia's seemingly endless U.S. Senate campaign notched the No. 3 spot.

Residents headed to the polls four times to vote on the Senate contest, beginning with the July primaries and ending with a Dec. 2 runoff when Saxby Chambliss was elected to a second Senate term. The Republican's victory over Jim Martin deprived Democrats of a 60-seat filibuster-proof majority.

The conviction and sentencing of Brian Nichols for a deadly shooting spree that began in the Fulton County Courthouse was the year's No. 4 story.

After more than three years and a tangled trail of legal delays, a jury found Nichols guilty of murder. But it deadlocked over whether he deserves the death penalty, forcing a judge to sentence him to life in prison without parole. Now some legislators are intent on changing the state's death penalty rules.

The stubborn drought still squeezing parts of the state emerged as the No. 5 story of the year. While a soggy December helped elevate most of the region from the epic conditions, much of north Georgia - including devastated Lake Lanier - remains in a "severe" drought.

The No. 6 story was the deadly explosion at the Imperial Sugar refinery in February near Savannah that killed 14 workers and injured dozens more. Investigators determined the blast was caused by sugar dust that ignited like gunpowder in the plant's storage silos.

The presidential election, which dominated national headlines, was voted the No. 7 story in Georgia. Democrat Barack Obama's campaign recruited thousands of volunteers focused on turning the state blue, but Republican John McCain managed to claim Georgia's 15 electoral votes.

The No. 8 story of the year broke just hours after New Year's Day.

Meredith Emerson was abducted while walking with her dog that day in the north Georgia mountains, and police later found her body. Authorities soon arrested Gary Michael Hilton, who is now serving a life sentence after pleading guilty to her murder.

The Delta Air Lines merger with Northwest Airlines took the No. 9 slot, as the combination made the Atlanta-based carrier the world's largest airline. It completed a remarkable turnaround for Delta, which had filed for bankruptcy in 2005.

Clayton County's education woes was the year's tenth-ranked story. The Southern Association of Colleges and Schools revoked the county's accreditation after it failed to meet a range of recommendations. More than 3,200 students have since bolted.

Stories close to making the list included convicted murderer Troy Davis' efforts to get a new trial and avoid execution, a legislative session that again ended in gridlock and an explosion at a Dalton law firm that killed the person responsible and injured four others.

(AP)

Delta to trim future US, international capacity

(AP Photo/Al Behrman, File)

Delta Air Lines says in a new regulatory filing that it plans to reduce its planned carrying capacity because demand for seats has slowed down.

Spokeswoman Betsy Talton said Delta still plans to add the 15 new international routes it announced Nov. 12, but the company will continue to monitor performance.

It's unclear if future capacity reductions mean a net reduction in international capacity next year or simply smaller growth. When the new overseas routes were announced, a Delta executive told reporters that overall international capacity in 2009 would be slightly larger than in 2008, while overall domestic capacity would be slightly smaller.

Delta officials say they will give more details about the airline's outlook in early December.

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(AP)

Delta Air Lines adding first bag fee

Delta Air Lines, the world's biggest carrier, says it will impose a $15 fee to check a first bag, becoming the last of the six legacy airlines to impose such a fee.

It also said Wednesday it is cutting certain other fees as it aligns its policies with those of Northwest Airlines, which it acquired last week.

Atlanta-based Delta says that effective immediately, for traffic on or after Dec. 5, customers flying within the U.S. will be charged $15 for the first checked bag and $25 for the second checked bag when traveling domestically, consistent with Northwest's existing policies.

Delta also says it is eliminating SkyMiles and WorldPerks award ticket surcharges, reducing reservation sales direct ticketing charges and eliminating curbside check-in administrative fees.

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(AP)

Delta-Northwest merger gets DOJ nod

The US Department of Justice has cleared the way for Atlanta's Delta Airlines and Minneapolis-based Northwest Airlines to merge. The Department's anti-trust division spent the last six months trying to determine if the merger would give the new airline an unfair advantage in the industry. The new airline will keep the Delta name and its Atlanta headquarters. In a statement, the division said the merger is likely to produce "substantial and credible efficiencies" that will benefit consumers nationwide and is "not likely to substantially lessen competition."

3rd QTR reports in: Coca-Cola up; Delta down

In business news, despite week domestic sales, the nation's largest soft drink maker beat analyst’s predictions overseas and performed better than expected here at home. International sales at Atlanta based Coca-Cola were boosted in part because of the booming South East Asian markets. Coca-Cola saw increased demand for its carbonated drinks, as well as a 10 percent growth in non-carbonated drinks, like juices and bottled water. Overall the company reported a 14 percent profit increase for third quarter 2008. Wall Street had predicted Coca-Cola to make 77 cents per share. Instead, earnings came in at 81 cents per share, 10 cents higher than the same period a year ago. In other business news, Delta Airlines lost 50 million dollars during the three months ending September 26. The nation’s largest airline blamed the loss on rising fuel costs. This time last year, Delta reported a profit of $220 million. Barring any federal roadblock, Delta plans to merge with Minneapolis-based Northwest Airlines by the end of the year. By eliminating redundant routes, the company should see some relief from rising oil prices.

Delta could see 3Q profit

Delta Air Lines could have relatively good news in its third-quarter earnings report scheduled for Wednesday. The Atlanta-based carrier could eke out a small adjusted profit, based on analysts' projections. Delta's president and chief financial officer, Ed Bastian, said Sept. 18 that Delta expected its third-quarter results to be in the range of break-even to a modest loss. The airline industry has been beset for an extended period by hefty fuel prices.

(Associated Press)

Delta wins union dispute

The National Mediation Board has sided with Atlanta-based Delta Air Lines in a legal dispute. A national flight attendants union claimed the carrier interfered with a failed effort by some of its flight attendants to unionize. Delta says the NMB found that the union's claims either are "unsubstantiated," "do not rise to the level of interference." Delta's flight attendants failed to get the necessary votes to form a union. Not enough of the eligible flight attendants voted, and therefore the results did not meet the certification requirements of the NMB.

Delta shareholders okay NWA merger

Delta Air Lines shareholders give the go-ahead to the company's purchase of Northwest Airlines by approving the issuance of new stock as part of the transaction.

Thursday's vote came at a meeting near Atlanta. Earlier in the day, Northwest shareholders approved the combination during a meeting in New York.

The deal still requires Justice Department approval.

Meanwhile, A top official of the machinists' union said Thursday that customers, employees and shareholders of Northwest and Delta will be hurt if the two airlines complete their deal to create the world's largest carrier.

Robert Roach Jr. says the two airlines have different corporate cultures and mismatched aircraft fleets.

Shareholders of both airlines voted Thursday to approve the combination.

Roach says combining the two work forces would require solving issues including workers' union representation, job security, pensions and seniority at the combined company.

He says mergers won't help troubled airlines -- most U.S. carriers lost money in the first half of this year as they battled high fuel costs -- and he called for more government regulation of the industry.

(The Associated Press)

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FAA approves Delta plan

Delta airlines is a major step closer toward merging with Northwest Airlines. The Federal Aviation Administration has approved a transition plan to allow Delta and Northwest to achieve a single operating certificate. The plan outlines the methodology, processes, tools and timing to maintain the safety of the day-to-day operations. Shareholders at Atlanta-based Delta and Eagan, Minn.-based Northwest are scheduled to vote on the combination on Thursday.

Delta-Northwest pilots voting on new deal

Pilots for Delta and Northwest Airlines are being urged by union leaders to vote ‘yes’ on a joint collective bargaining agreement. Voting on the issue ends this afternoon.

Approval is seen as key to the efforts of Atlanta-based Delta to help smooth the way toward a combination of the two airlines. Delta is expected to complete its acquisition of Minnesota-based Northwest by the end of the year, creating the world’s largest carrier.

The proposed joint contract agreement calls for compounded raises of more than 18-percent over 4 years for pilots. In addition, Northwest pilots ‘pre-merger’ would get a 2.4 percent equity stake in the new combined airline. Current Delta pilots would receive 3.5 percent of equity.

The joint contract agreement would cover about 12,000 pilots. Still not worked-out however, is how to integrate seniority lists of the pilots.

Storms thunder through Atlanta, briefly closing airport

Airport officials Saturday night briefly stopped arrivals and departures at Hartsfield-Jackson International Airport due to thunderstorms that swept through the area.

The National Weather Service says that 50 m.p.h. wind gusts blew across the tarmac, causing about 100 Delta and AirTran flights to be diverted to nearby airports, according to a report in the Atlanta-Journal Constitution.

Georgia Power told the newspaper that about 143,000 customers lost electricity at about 10:45 p.m. Officials say they hope to restore power to the majority of customers by 5 a.m. Sunday morning.

Downed trees and power lines were reported mainly in Fulton, Cobb, DeKalb and Cherokee counties.

The southbound lane of I-85 near Tuskeegee Airmen Parkway was closed from downed trees, and some damage and debris was reported downtown.