American Airlines CEO Still Thinks Buying Back Stock Was A Good Idea

by Gary Leff

depressed businessman leaning his head below a bad stock market chart
Aug 31 2020

After taking over at American Airlines, management spent $12.4 billion buying back stock over a six year period at an average price of $39.76 per share. Now they’re facing over $40 billion in debt and looking for a second government bailout this year.

At an internal Crew News session at the end of last week, a pilot asked the airline’s CEO Doug Parker if the airline is able to claw its way back, whether he’d change the way the airline is run – paying down debt instead of buying stock?

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Boeing 737 MAX Likely Ungrounded In October, Flying Passengers In December

by Gary Leff

inside plane
Aug 31 2020

At the end of last week American Airlines told its pilots that based on conversations with the FAA and Administrator Stephen Dickson that they “see the finish line, it’s making good progress” bringing the Boeing 737 MAX into service. Their “targeted timeframe… [is] end of October-ish for the ungrounding to occur” for the aircraft. American intends to fly passengers in commercial service with the MAX starting in the second half of December.

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American Airlines Expects All Furloughed Workers Back Next Year, To Fly More Before Passengers Return

by Gary Leff

Aug 31 2020

Speaking to a group of pilots at the end of last week, a recording of which was reviewed by View From The Wing, American Airlines CEO Doug Parker laid out plans not to cut flights further during the winter this year and to grow the schedule for next year even in advance of passenger demand.

With all of the employees that have taken early retirement, that should mean recalling everyone that’s being furloughed.

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United Airlines Permanently Eliminates Domestic Change Fees And Standby Fees

by Gary Leff

united plane
Aug 30 2020

United Airlines is offering free same day standby starting January 1, and eliminating change fees on domestic tickets (including Puerto Rico and the U.S. Virgin Islands but not other territories) effective immediately though this excludes basic economy tickets. A waiver of change fees for basic economy and international ticket purchases is being extended through the end of the year.

All MileagePlus elite members can confirm same day changes at check-in provided the same fare class is available. Currently complimentary same day changes are only available to Gold members and above.

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American Airlines CEO Doug Parker Spends ‘All Of His Time’ On Government Subsidies

by Gary Leff

man speaking on microphone
Aug 30 2020

In a meaningful sense U.S. airlines are no longer private businesses, they’re vassals of the state. And that’s not surprising. While the largest carriers have given only a small potential ownership stake to the U.S. government in the form of warrants in exchange for subsidies this year, they’ve been effectively converted from commercial enterprises working to satisfy customers into political creatures working to satisfy “the powers that be,” as American Airlines CEO Doug Parker calls them.

Speaking to a group of American Airlines pilots at the end of last week, a recording of which was reviewed by View From The Wing, Parker said lobbying in DC is “frankly where I’ve been spending all of my time.”

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Why Aren’t Centurion Lounges Re-Opening?

by Gary Leff

lounge
Aug 30 2020

The argument that food and beverage is key to the Centurion lounge experience, but is hindered by Covid precautions, is a cop out. Far from being another reason to keep lounges closed, fewer passengers makes it easier to deliver individual portions. Airlines and independent lounges are re-opening. American Express needs to speak to a timeline for bringing Centurion lounges back on line.

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New Government Report Shows Marriott, Hilton And Choice Hotels Used As Immigration Detention Centers

by Gary Leff

Aug 30 2020

Last month Hilton came under fire for housing children in the process of being deported by the United States. The chain told hotels they shouldn’t accept these bookings. Now we learn that children were being held in even more Hilton, Marriott, and Choice hotels than we thought.

At least 660 children have been held in hotels enroute to deportation. Most were unaccompanied by parents. According to the government “it cannot allow children to stay in the U.S. due to the coronavirus pandemic.”

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