Airlines
United board fight breaks out as activists turn to Bethune -- Two United Airlines shareholders will nominate Gordon Bethune, renowned for resurrecting merger partner Continental, to head an insurgent director slate as the carrier's top executive returns from a heart transplant. Hedge funds Altimeter Capital Management LP and PAR Capital Management Inc. are backing six new board members led by Bethune, the former chief executive officer of Continental Airlines, which combined with United in 2010. Julie Johnsson & Michael Sasso/Bloomberg Business
The question for United Airlines' activist investors: Why now? -- Why now is the question for activist investors at United Continental who are trying to appoint new board members. Are they fighting the last war, even as CEO Oscar Munoz is fighting the current one? The carrier seems to be starting -- finally -- to turn around under Munoz. Operational performance, labor relations and customer relations have improved dramatically since he took over in September, even though he suffered a heart attack in October and had a heart transplant in January. Ted Reed/The Street
United Airlines mechanics threaten strike, crash investors conference -- United Airlines mechanics threatened management with a strike Tuesday during an investors conference following years of stressed contract negotiations. The airline employs more than 9,000 unionized mechanics who are overdue for a new labor contract. The Teamsters union and airline, however, have been unable to agree on a finalized agreement despite years of negotiations. Connor D. Wolf/The Daily Caller
United confirms purchase of 25 additional Boeing 737s -- United Continental Holdings Inc. said it would buy 25 new Boeing 737s, a deal that serves a blow to smaller, foreign rivals hoping for spots on the airline's fleet as it replaces some of its smallest planes. The Wall Street Journal reported last month that Boeing was completing the deal to sell its single-aisle jets to United, on the heels of a deal in January to sell 40 737-700s to Chicago-based United. Lisa Beilfuss/Wall Street Journal
Airlines project 3% increase in spring travel -- Airlines are projecting a 3% rise to 140 million passengers during March and April, compared to a year ago, the trade group Airlines for America said Wednesday.The peak would be the highest ever for spring travel and top the 136.2 million passengers during the same period in 2015, the group said. "The continued growth in passenger volumes can be attributed to the accessibility and affordability of air travel today," said John Heimlich, the group's chief economist. "To meet the extra demand, airlines are deploying new and larger aircraft on many routes." Bart Jansen/USA Today
Southwest Airlines traffic up in February; why passengers may not have noticed -- Southwest Airlines saw its total passenger traffic grow by 13.5 percent on a 14.7 percent increase in capacity in February compared with a year ago, according to figures released Tuesday. The big increase in capacity led to a decrease in load factor - how full a plane flies - from 79.9 percent last year to 79 percent this February. The Dallas-based airline said it expects its operating revenue per available seat mile to be in line with the first quarter of 2015. Conor Shine/Dallas Morning News
American Airlines reports record February passenger traffic -- American Airlines posted record passenger traffic and capacity numbers for February, but its planes were less full compared with the previous year, the company said Tuesday. American's total passenger traffic grew by 4.7 percent on a capacity increase of 8 percent. Overall, the company had 15.7 billion revenue passenger miles to 20.4 billion available seat miles, both records for the month of February. Conor Shine/Dallas Morning News
Employees "still don't trust us," American Airlines CEO says -- American Airlines CEO Doug Parker acknowledged Tuesday that employees at the world's largest airline "still don't trust us," after the pilots union accused management of fomenting a "toxic culture." In a presentation to investors and Wall Street analysts, Parker said employee relations are more important than ever as the airline industry has consolidated and management has to do a better job of engaging American's workers. Andrea Ahles/Fort Worth Star-Telegram
American Airlines to ax newly reinstated Caracas-New York route -- American Airlines said on Tuesday it will ax its Caracas to New York route on April 4 due to low demand just over three months after reinstating it. The surprise move comes amid a years-long battle between American Airlines Group and the Venezuelan government in which the world's largest airline says it has not been able to repatriate revenue. In January, the Forth Worth-based company wrote off $592 million which it said was stuck in Venezuela due to the government's failure to exchange it for hard currency. Girish Gupta/Reuters
US-Cuba Air services Part 1: The Big 3 stake their claims. American Airlines seeks the lion's share. -- Now that Cuba and the US have finalis\zed an agreement that liberalises some, but not all, air travel between the countries, a raft of US airlines has applied to launch services to Cuba. The three large US global network airlines are among the contenders for new service, and each offers nuanced reasoning for the merits of their prospective routes. CAPA Centre for Aviation Also: This California congressman wants Cuba to send back the man who hijacked his plane 44 years ago
U.S. airlines review capacity plans as average fares drop -- U.S. airlines are starting to review their capacity plans in the wake of a continuing drop in average fares, with the fall in ticket prices outpacing the slide in fuel costs. A number of carriers reported declines in their closely watched average passenger revenues in February, and most expected the metric to remain negative at least through the first half of the year, triggering another slide in share prices. Doug Cameron/Wall Street Journal
Delta wants customers to spend their SkyMiles, not just save them for free flights -- Many frequent fliers delight in saving up their miles for free flights, but Delta Air Lines wants them to spend those miles instead of just amassing them for future vacations. Frequent flier miles amount to a "giant liability" for Delta, said Glen Hauenstein, the airline's chief revenue officer and incoming president, during an investor presentation Tuesday. Kelly Yamanouchi/Atlanta Journal-Constitution
Travel
Feds want to fine airline for travelers without visas -- The federal government is proposing to restore $1.7 million a year in fines against airlines that bring travelers to the U.S. without current passports and visas. A 1996 regulation was overturned in 2009 by the 2nd U.S. Circuit Court of Appeals because the State Department and former Immigration and Naturalization Service didn't work together on it. But State and Customs and Border Protection jointly proposed Tuesday to overhaul the regulation to fine airlines up to $4,300 for each traveler who arrives without proper documentation because the rules have become inconsistent in the last two decades. Bart Jansen/USA Today
Airports
American Airlines expands Asia presence with new Los Angeles to Hong Kong flight -- American Airlines will expand its presence in Asia with the launch of service from Los Angeles to Hong Kong in September. The news was accidentally unveiled Monday night on American's website and was captured in a screenshot posted on the FlyerTalk forum. An American spokeswoman confirmed the news Tuesday and said more information would be released later in the day. The route, scheduled to start service Sept. 7, will be flown on American's three-class Boeing 777-300ER. Conor Shine/Dallas Morning News
MEM adding direct flights to Destin and Los Angeles -- Allegiant Air is spanning both coasts this summer with two new nonstop seasonal flights. On Tuesday, March 8, the low-cost carrier announced new nonstop service from Memphis International to Destin/Fort Walton Beach and Los Angeles. The two flights will be offered as seasonal flights. Nonstop service to Los Angeles International Airport will run from June 2 to Aug. 14, and flights to Destin-Fort Walton Beach Airport will run May 27 through Aug. 15. Michelle Corbet/Memphis Business Journal
10 largest airports with longest U.S. Customs wait times -- The federal Customs and Border Protection (CBP) agency has been deploying new technology in recent years to help arriving travelers spend less time waiting in line, but the effort faces an uphill battle in the face of increasing passenger numbers. And a new study finds some airports have a bigger problem than others. According to a new analysis conducted for the Global Gateway Alliance, a private-sector group devoted to easing air travel hassles in the New York area, New York JFK suffers from the longest Customs waiting times of the 10 largest airports for international arrivals - and San Francisco International ranked a close second. TravelSkills
TSA pledges fix to long lines at Hartsfield-Jackson by summer -- The Transportation Security Administration this week acknowledged a problem with long lines at Hartsfield-Jackson International, and pledged to take action to address the issue before the busy summer travel season. Airport officials are "rightfully concerned about delays, as we are," said TSA chief Peter Neffenger. He came to Atlanta to meet with officials from Hartsfield-Jackson and Delta Air Lines on Monday, after airport officials last month threatened to move toward privatizing security to address long lines. Kelly Yamanouchi/Atlanta Journal-Constitution
Van Nuys Airport hosts successful safety and security stand-down -- Nearly 50 representatives of major aviation tenants, Los Angeles World Airports (LAWA) and local law enforcement participated in a successful safety and security stand-down co-hosted by Van Nuys Airport and the Van Nuys Airport Association (VNAA) on Feb. 29, 2016.  Held at Aeroplex/Aerolease Group and moderated by consultant Jeffrey C. Price of Leading Edge Strategies, the half-day training session helped advance the airport community's mission of preventing vehicle pedestrian deviations (V/PDs) and runway incursions at VNY. Presentations focused on creating a stronger culture of safety, preventing unauthorized access and deterring criminal activity at the leading general aviation airport. VNAA Press Release
High-Speed Rail
Court rejects key lawsuit against California high-speed rail system -- A Sacramento Superior Court judge has denied a lawsuit that alleges that the bullet train project violates restrictions imposed in a 2008 bond act. The ruling involves one of the most important lawsuits against the project, brought by Kings County and two farmers. Judge Michael Kenny did not explicitly rule that the project is complying with the restrictions, but rather said the matter is "not ripe for review." Ralph Vartabedian/Los Angeles Times
Aviation Data & Analysis
World Airline Passenger Traffic Increases 6.4% in January 2016
Courtesy Oliver Wyman PlaneStats
City Government
Violent crime in L.A. rises 12.7% so far this year, but overall rate is up only slightly -- Killings in Los Angeles have surged 27.5% so far in 2016 compared with the same period last year as the city continues to see a rise in violent crime, LAPDofficials said Tuesday. The jump in homicides along with double-digit increases in aggravated assaults and robberies contributed to a 12.7% rise in violent offenses, LAPD Assistant Chief Earl Paysinger told police commissioners at their weekly meeting Tuesday. Kath Mather/Los Angeles Times
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