Elizabeth Warren And Bernie Sanders Demand Airline Ticket Refunds

by Gary Leff

bernie sanders
Mar 31 2020

Democratic Senator Elizabeth Warren and several Senate colleagues including Bernie Sanders, Kamala Harris, and 6 others, announced a letter to the CEOs of major U.S. airlines demanding “every company to issue full cash refunds to all customers who cancel their flights during the COVID-19 crisis.”

They don’t just want refunds for passengers whose flights are cancelled, they want refunds for everyone. But they’re a little late, grandstanding after they’ve given up any leverage by voting for the $58 billion airline bailout.

Continue Reading »

American Airlines Will Fly Even Less In May, Considers Retiring Another Arcraft Type

by Gary Leff

american plane
Mar 31 2020

American Airlines thinks their May schedule – targeted at 20% of its normal domestic flying and 10% of international – will be closer to demand. That’s what airline President Robert Isom told flight attendants in an online question and answer session on Friday.

With less flying they’re looking at retiring not just Embraer E-190s, Boeing 757s and 767s, but also Airbus A330-300s. Currently 135 of the airline’s 150 widebody jets are parked. Yet they’re still planning to take delivery of new 737 MAX and 787 aircraft this year.

Continue Reading »

Will American Airlines Furlough Employees Once The Bailout Money Runs Out?

by Gary Leff

Mar 31 2020

The $58 billion airline smash and grab bailout comes with several restrictions, including maintaining service to cities that already have flights and no employee furloughs through September 30.

In an employee ‘crew news’ session on Friday, airline President Robert Isom told flight attendants that once government restrictions on furloughs lift after September there are a number of things that will help to shrink employee numbers before getting to furloughs. Pilots, though, he was willing to tell that furloughs aren’t in the card.

Continue Reading »

American Airlines Now Offering Employees Leave At 25% Pay And Full Benefits Or Early Retirement

by Gary Leff

Mar 30 2020

Two weeks ago American was asking flight attendants to take leave with no pay. Unsurprisingly they didn’t have enough takers. Pilots, however, could take leave or early retirement at about two-thirds pay.

American is now offering paid early retirement and paid leave across the company, not just for pilots, though of course the leave options aren’t as generous as what pilots receive.

Continue Reading »

Delta Sky Magazine Lays Off Its Entire Staff

by Gary Leff

Delta’s current inflight magazine Delta Sky launched in 2009. The magazine was outsourced, published by MSP Communications. It used Delta’s brand, was distributed on Delta aircraft, and Delta’s media team promotes it on the Delta.com website. It’s always been presented as Delta’s.

However writers were not Delta employees. Now they’ve lost their jobs.

Continue Reading »

No, A Government Airline Bailout Wasn’t Necessary, And Just Makes Things Worse

by Gary Leff

hand holding hundreds of dollars in cash
Mar 30 2020

The U.S. airlines have long survived on government cash and government protection from competition (whether through foreign ownership, or long term gate leases at government airports). We continue to feed that, and then complain when effectively nationalized airlines don’t deliver the product consumers want. We have only ourselves to blame.

A bankruptcy-first approach would have meant equity and creditors take a haircut before taxpayers. It’s not at all clear a bailout would have been needed even then.

Continue Reading »