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, Others Ink $12 Billion Deal

Delta Air Lines Inc., Air France and KLM signed a deal Wednesday to combine two separate joint venture agreements into one to create a more integrated trans-Atlantic powerhouse that they said will generate $12 billion in annual revenue. The airlines said they will share costs and revenues, as well as coordinate branding at airports and global advertising. Air France-KLM Group and Delta also will share governance of the joint venture. An executive committee consisting of the three CEOs and a management committee comprising representatives from the three carriers will work together on strategy.

The joint venture represents approximately 25 percent of total trans-Atlantic capacity.
The cooperation agreement between Europe’s largest airline and the world’s largest airline operator will mean together the carriers will operate more than 200 trans-Atlantic flights and offer about 50,000 seats per day.

The joint venture also covers all the airlines’ flights between North America and Europe, between Amsterdam and India, and between North America and Tahiti, the companies said.
The joint venture will not lead to the creation of a subsidiary, the airlines said at a news conference in Paris that was broadcast on the Internet.

No new routes were announced beyond what the two previous agreements provided for separately.

Delta chief executive Richard Anderson called the joint venture agreement “unprecedented.”
KLM signed a joint venture agreement with Northwest Airlines in 1997, while Air France and Delta signed a joint venture agreement in 2007. Following Atlanta-based Delta’s acquisition of Northwest in October 2008, the carriers decided to work on forming a single joint venture.

Alliances between U.S. and foreign carriers are not new. They allow the carriers to offer more options to passengers, while allowing the carriers to share revenues and costs.
There’s a pending bid by American Airlines and British Airways to cooperate on trans-Atlantic flights without fear of breaking antitrust laws. Regulators are looking at the issue. American and BA have been thwarted twice before in seeking closer ties, but their prospects appear brighter this time because of changes in the airline industry over the past several years.

American and its partners in an alliance called Oneworld argue that they should get antitrust immunity because two competing alliances already have it — Star (Lufthansa, United, and beginning this fall, Continental) and SkyTeam (Delta, Air France-KLM).

American also notes that the U.S. and Europe have signed an open-skies treaty, increasing competition at Heathrow, since its last failed effort to work more closely with BA.

The Delta-Air France-KLM joint venture is structured around six main hubs: Amsterdam, Atlanta, Detroit, Minneapolis, New York-JFK and Paris-CDG, together with Cincinnati; Lyon, France; Memphis, Tenn., and Salt Lake City.

The joint venture has no predefined end date, but can be canceled with a three-year notice after an initial 10-year term, the companies said.

Air France-KLM shares rose as high as 13 percent in early trading on the Paris stock exchange Wednesday after annual earnings results late Tuesday showed progress on cost-cutting. They showed that lower staff costs and marketing expenses helped it achieve a smaller-than-expected operating loss.

The airline also announced plans to cut its work force and reduce its investment plans.

(Associated Press)

Delta, Northwest: A Step Closer to One

Nearly 40-thousand employees of Northwest Airlines will soon log on to the internet using email accounts from Delta. A spokesperson for Delta says it's a sign the two airlines is moving forward to become one. Atlanta-based delta acquired northwest last October to create the world's biggest airline operator. The company quickly reached joint labor agreements among pilots of the two airlines and seniority pacts between several smaller employee groups. But flight attendants and ground workers have yet to resolve issues involving joint representation, seniority and contract issues.

(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.

Rare Snow Blankets South as East Braces For Storm (Photos)

A powerful March snowstorm blanketed much of Alabama and then marched across Georgia on Sunday, forcing some flight cancellations in Atlanta as the East Coast braced for a potential pummeling.

Peachtree Ave., midtown Atlanta on Sunday afternoon, Mar. 1, 2009. (Photo: Dave Bender)

The weather service said winter storm warnings are in effect from northern Georgia and the Carolinas through the Mid-Atlantic states into New England.

At Hartsfield-Jackson Atlanta International Airport, Delta Air Lines and AirTran Airways canceled some Sunday flights and a Federal Aviation Administration Web site said flights to
Atlanta were experiencing average delays of nearly two hours.

AirTran spokesman Tad Hutcheson said flights out of Atlanta into the Northeast may also be canceled Sunday night as the messy, developing storm took aim at walloping at wide swath of the East Coast up through Maine.

"I expect the Northeast will be hit pretty hard tonight so our expectations is that people flying into Washington, D.C., and Boston will need to call or check our Web site for possible cancellations," Hutcheson told The Atlanta Journal-Constitution.

Delta spokesman Brian Kruse said the airline is monitoring the weather and asking customers flying to, from or through Atlanta to call Delta or check its Web site for updates.

Georgia Tech students A.D. Barfield, Lily Manavi, and Candace Farr discuss the merits of their snowman. (Photo: Dave Bender)

Despite above-freezing temperatures, a heavy flurry of snow fell on downtown Atlanta, blanketing cars and creating slushy streets and sidewalks. It hadn't snowed in Atlanta for more than a year — the area received 1.4 inches of snow in January 2008, said Laura Griffith of the National Weather Service in Peachtree City, Ga.

I-75/85 connector, near 14th St. bridge construction. (Photo: Dave Bender)

Georgia transportation officials warned of potential icy conditions on roadways in middle and northern counties through Monday morning. No icing on roadways, bridges or other overpasses had been reported through midday Sunday, but as temperatures drop Sunday night, officials warn motorists that ice could be a threat.

Outside the CNN Center in downtown Atlanta, Flori Kwon of Claremont, Calif. took pictures of her son Jake, 5, playing in the snow.

"He wants to make a snowman but I don't think there's enough snow," Kwon said while large snowflakes landed in her hair. "We're kind of surprised it's snowing."

The late Southern snowfall brought back memories of a large storm in 1993 that forecasters nicknamed the "Snowfall of the Century," affecting the region from Alabama to north of Washington, D.C. on March 13, 1993, Griffith said. In that storm, Atlanta received 4.2 inches of snow and 13 inches of snow fell on Birmingham, Ala.


Pedestrians and snowmen at an overpass in midtown Atlanta. (Photo: Dave Bender)

Meanwhile, tornado watches were in effect from northern Florida into coastal Georgia and southern South Carolina.

Crossing Peachtree Ave., in midtown Atlanta, as the snow blows around. (Photo: Dave Bender)

Despite above-freezing temperatures in downtown Atlanta, a heavy curtain of snow fell on cars and caused traffic accidents on slushy streets. The unusual weather prompted 26-year-old Jessi Prahl and Max DiPace to take their dog, Cooper, on a walk through snow-covered Piedmont Park in Atlanta.

Says Prahl: "You know us Southerners, we all freak out when it snows."

(AP)
---
Send us your snow photos (in standard .jpg format), and we'll post the best ones here: dbender at gpb dot org (replace the "at" with @ and "Dot" with .)

Click here for more GPB News coverage of today's wintry weather.

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.
---
Information from: The Atlanta Journal-Constitution,
http://www.ajc.com

(AP)

Click here for more GPB News coverage about Hartsfield-Jackson.

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 merger won't affect service to Louisiana

The merger of Delta and Northwest airlines isn't expected to affect service to Atlanta and Memphis from Monroe, Louisiana. Cleve Norrell, the manager of Monroe Regional Airport, said Delta officials told him those connections would continue. He said a reduction in service isn't planned currently and that he had no reason to believe there would be one in the future. A Delta spokesman had also said the plan was to maintain the airlines' hubs because there was "virtually no overlap" between Delta and Northwest routes. The airport also has connections to Dallas, via American Airlines, and Houston, via Continental Airlines.

(Associated Press)

Delta delays NC-Paris routes till '10

Delta Air Lines is delaying the startup of its nonstop service between Paris and Raleigh-Durham International Airport until 2010. The RDU Airport Authority said Tuesday that Delta said the delay was based on the economic climate. The Atlanta-based airline had planned to start service between RDU and Charles de Gaulle Airport on June 2, 2009. RDU marketing director Teresa Damiano said the airport authority was confident that airport's service would grow once the global economy improves.

(Associated Press)

Delta offers voluntary severance payouts

Delta Air Lines -- the world's biggest carrier --will offer voluntary severance payouts to a majority of the 75,000 employees at Delta and Northwest's mainline operations. Executives said today it's part of a plan to cut an unspecified number of jobs. Chief Executive Richard Anderson and President Ed Bastian said in a memo to employees that the program is similar to one earlier this year that Delta used to trim about 4,000 jobs. Northwest previously trimmed jobs of its own before being acquired by Delta on Oct. 29. The executives say the cuts are necessary because Delta will be reducing systemwide capacity in 2009 by 6 percent to 8 percent because the weak economy has eroded demand for seats on airplanes.

(Associated Press)

Delta and Northwest Pilots have seniority agreement

Pilots affected by the Delta and Northwest airlines merger will integrate based on more than just seniority,

As Delta and Northwest become the largest airline in the world, their pilots had to rely on an arbitration panel to figure out how to rank their seniority.

The panel ruled that aircraft category will play a role in determining a pilots standing. Seniority is important to the 12 thousand pilots, because it determines best routes, pay and vacations.

Northwest pilots had argued to use only hiring date to determine seniority, as it’s pilots are older. Atlanta based Delta argued for the inclusion of an aircraft category.

The new merged airline can’t fly under one name until the Federal Aviation Administration issues that permit. A move expected late next year.

In the meantime labor issues with ground crews and flight attendants still have to be resolved to complete the merger.

Fog, rain slow some flights at Hartsfield-Jackson

Delta Airlines jets line up at Hartsfield-Jackson International Airport. (AP/John Bazemore)

Fog and rain caused some flight delays at Hartsfield-Jackson International Airport at the start of the busiest travel day of the year.

But airport officials on Sunday say they're off to a crowded, but smooth start for Thanksgiving travelers trying to get home.

National Weather Service meteorologist Patricia Atwell says weather conditions were causing low visibility that could slow aircraft arrivals.

The Federal Aviation Administration reported departure delays between 15 to 30 minutes and arrival delays of about 45 minutes Sunday morning because of clouds and low visibility.

Airport officials urged travelers to do their homework -- checking flight status, security waits and available parking -- before getting to the airport.

Click here for more GPB News coverage of travel and transportation issues.

Information from: The Atlanta Journal-Constitution, http://www.ajc.com

(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.

Click here for more GPB News coverage about Delta Air Lines.

(AP)

Delta cuts back on US, foreign routes

Delta Air Lines says it will cut back on both domestic and international service because demand is down. A spokesperson for Delta says the airlines still plans to add the 15 new international routes it announced earlier this month, but the company will closely monitor performance. 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.

(Associated Press)