Monthly Archives

Monthly Archives for July 2024.

Vasu Raja’s Golden Parachute: What $1.4M Buys American Airlines

Jul 12 2024

Vasu Raja staked out bold positions. He felt too strongly that the airline’s schedule was its product – rather than its service and experience. He architected their Sun Belt focus and shift away from managed travel. And he elevated the centrality of the carrier’s loyalty program as part of its core business strategy and not just as a financial instrument.

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Laptop Fire Sparks Emergency Evacuation Of American Airlines Flight in San Francisco

Jul 12 2024

American Airlines flight 2045 from San Francisco to Miami was forced to evacuate due to a fire inside the aircraft cabin on Friday.

The Airbus A321 was boarding for its trip to Miami at 12:15 p.m. when smoke reportedly filled the cabin, and crew evacuated the aircraft. Passengers exited via both emergency slides and the still-attached jetbridge.

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Federal Judge Backs Westchester, NY’s Controversial War on Air Travel – Can Kick Out JSX

Jul 12 2024

A federal judge has issued a ruling permitting Westchester County airport to limit flights out of private terminals by carriers that sell seats to the public.

Westchester County wishes it didn’t have an airport. However they can’t shut it down. They’ve taken federal grant money, so federal rules apply. Nonetheless they make it as tough to operate there as possible.

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Delta Air Lines Confirms Plan To “Unbundle” Business Class: Pay For Only What You Need

first class seats
Jul 12 2024

Delta Air Lines confirmed during its second quarter earnings call a plan for ‘basic business.’ Just like they have ‘unbundled’ economy class, offering basic economy that doesn’t allow changes or mileage-earning and where you don’t get to pick your own seat, they view ‘unbundling’ of the features of business class a new step in maximizing revenue from customers.

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Delta Discovers It’s Just Another Airline, Blames Rivals for Profit Drop

Jul 12 2024

Delta Air Lines is earning half the industry’s profit. They had a 13.6% operating margin and made $1.3 billion in the last quarter. That’s great – except that both figures are down year-over-year and the airline lowered its guidance for the third quarter as well. Their stock lost 8% of its value at the open on Thursday’s morning’s announcement, though it gained half of that back by the end of the trading day.

The airline’s spin is that there’s too much capacity, and the problem is other airlines, but the industry is correcting itself. In other words, the problem isn’t Delta, and going forward Delta won’t have a problem. I don’t think this actually makes sense.

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