Airlines

Category Archives for Airlines.

Here’s How United Airlines Is Reducing Payroll Expense

Mar 12 2020

United is farthest ahead preparing for the worst as a business. They are cutting capital spending, slashing flying, and eliminating discretionary expenses. They have raised additional cash and assume that their revenue is down 70% in April and May and not fully recovering this year. We don’t know yet if things will be even worse than this, and more drastic measures will need to be taken.

For now there aren’t any layoffs, but United is trying to reduce personnel spending and they’ve imposed a hiring freeze so that retirements will reduce their head count. Here’s the detail of the United Airlines voluntary leave plan.

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Buy One Way Tickets Right Now, Not Roundtrips

Mar 12 2020

Roundtrip tickets used to be cheaper than buying two one ways. For the most part that isn’t true anymore. One way tickets, at least domestically, do not usually raise the cost of a trip.

Still many people book roundtrip travel because of change fees. But for the most part those do not apply right now.

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U.S. Government Warns Against International Travel. COME HOME NOW.

Mar 12 2020

On the heels of the confusing statement by the President ostensibly banning flights from Europe other than the U.K. for 30 days, but really banning entry by non-U.S. residents who have been to the Schengen area of Europe in the past 14 days, the State Department is now warning against all global travel.

My recommendation: It would be a good idea, if you’re an American traveling abroad, for you to arrange to return home as quickly as possible before it becomes more difficult to do so.

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Former FDA Chief: There’s 3 Things Airlines Should Do To Protect Passengers And Crew (But They Aren’t)

someone putting on rubber gloves
Mar 10 2020

Dr. Scott Gottlieb, FDA administrator from 2017-2019, has been a helpful source on coronavirus. He was one of the first people with a real microphone sounding the alarm about lack of testing in the United States.

He says airlines aren’t doing enough to prevent spread of the virus, focusing on three things he’s seen in his own travels.

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American Airlines Is Focused On Long-Term Growth, ‘Not Breaking Out The Distress Playbook’

Mar 10 2020

At an investor conference this morning, after first talking about coronavirus, American Airlines CEO Doug Parker pivoted to talk about the airline’s operational performance, and growth plans including from new gates coming online in Charlotte and upgauging regional jets next year at Washington National airport.

American just has a real difference in perspective. Parker said they are “not breaking out the distress playbook..that’s not where we are.” I hope he’s right of course. They talked about the effect of sales on bookings, their cash balance as a cushion, and the possible accelerated retirement of the Boeing 757.

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