6 Things I Learned During The American Airlines Earnings Call

by Gary Leff

Apr 30 2020

American Airlines lost over $2.2 billion in the first quarter, even though things didn’t begin to go south until March. They’re pulling in new cash everywhere they can, cutting costs, and expect not to have any difficulty securing not just payroll protection grants from the U.S. treasury but also subsidized loans.

Those financial metrics aren’t what I’m most interested in at this point, nor the $40 billion in debt they could soon be carrying. Those issues are well covered elsewhere. I wanted to highlight 6 other things last may get less play in broader coverage.

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Jetstream Music Festival: 23 Airports Will Livestream A Concert On May 6

by Gary Leff

austin airport food court
Apr 30 2020

Airports across North America – 22 in the U.S. and one in Canada – will be bringing you JetStreamFest, the JetStream Music Festival, on Facebook Live beginning May 6 at 6 p.m. Eastern time. The event, hosted by my home town Austin airport which features live music throughout the year during normal times, will feature local musicians from each participating airport’s city. “Austin is the Live Music Capital of the World. Typically, we have 31 live performances across 7 stages in our terminal. Live music and supporting our local artists is who AUS is, even during the difficult times,” said Jacqueline Yaft, Chief Executive Officer of Austin-Bergstrom International Airport. “Airports are known for bringing people together, and we want to continue doing so even when you can’t travel. Virtual music is a great way to…

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American Airlines Had The AAdvantage Program Appraised, And It’s Worth At Least $30 Billion

by Gary Leff

Apr 30 2020

As part of raising funds on the private market and from the U.S. government, the airline had its unencumbered assets appraised. Parker reported that the value of these assets came back at $10 billion “excluding the AAdvantage program.”

During the airline’s earnings call Parker was pressed on what appraisals found the AAdvantage program to be worth.

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Delta’s Lawyers Tell The Government Air Travel Is Unsafe and Should Be Limited. Say What?

by Gary Leff

Apr 30 2020

Delta lawyers submitted a filing to the Department of Transportation in which they make the case that travel is unsafe and flights should be limited if at all possible.

That’s not the position Delta takes in public or emphasizes with employees. But it’s a convenient argument to make when they’re trying to reduce their service obligations under the federal airline bailout.

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United Is Still Flouting DOT Refund Rules For Cancelled Flights

by Gary Leff

united plane
Apr 29 2020

United is effectively saying that they will not provide refunds for cancelled flights, only for significant delays, because cancelled flights do not exist. They are treating DOT rules – which specifically provide for two separate reasons for a refund – as though they only provide for one.

If an airline used to fly 8 times a day between two cities, and now flies just 3 times a day, that airline has cancelled 5 flights even though the airline can still accommodate the customer. United disagrees, but that is absurd on its face.

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12 Nations Ask The E.U. To Allow Airlines To Steal Money From Customers

by Gary Leff

Apr 29 2020

Airlines are cancelling flights and downsizing their operations because of the global coronavirus pandemic. When they don’t fly the flights they’ve sold, they have to refund customers’ money.

The European Union’s rule 261 applies and requires these refunds. The E.U. reiterated that last month. However European airlines have been ignoring this and not processing refunds, at least for their European customers.

Now 12 European nations are siding with airlines against their people.

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