Turbulent times for US airline companies

Several US carriers are fighting for survival. US Airways, the seventh largest US airline, on Sunday filed for bankruptcy protection for the second time in two years after failing to sufficiently reduce costs. Concessions close to two billion dollars from 28,000 employees starting in 2002 were not enough. David Bonner, president of US Airways' board of directors, warned since August that a second bankruptcy filing could lead to liquidation. Delta Air Lines announced an aggressive restructuring plan Wednesday that would cut 6,000 to 7,000 jobs over the next 18 months. Delta said it was targeting more than five billion dollars in annual cash savings by 2006 and was on track to deliver nearly half of that total by the end of this year.

US Airways files second bankruptcy in 2 years

US Airways filed for Chapter 11 bankruptcy protection on Sunday, its second such filing in two years, after workers refused to grant $800 million in cuts the company had sought to reduce its costs to the level of low-fare airlines.
Nothing will change for US Airways customers right away, but in the coming months the airline is expected to change its route system, which could mean the end of service for some of the nearly three dozen cities where US Airways is the only airline. And if it cannot cut its costs and win labor concessions from workers, its passengers could face further reductions in service or even the end of the airline, analysts said Sunday.

Alitalia May Scrap Air France Alliance

Alitalia is going to review and possibly scrap its commercial alliance with Air France, the Italian airline's chief executive was quoted as saying on Thursday.
In an interview with L'espresso magazine, Giancarlo Cimoli indicated that Air France and US carrier Delta were gaining more from commercial ties with Alitalia than was the Italian flag carrier.

British Airways Sends Additional Aircraft to Caribbean

British Airways is sending an additional aircraft, a Boeing 777, to the Caribbean today to repatriate passengers who have been stranded following the devastation of the island of Grenada by Hurricane Ivan.
The extra flight departed London-Gatwick Airport at 2 p.m. local time today and will arrive in Barbados at 7:15 p.m. It will depart Barbados for London-Gatwick at 8:15 p.m. this evening.
Though Grenada Airport is currently closed to large aircraft, smaller aircraft can operate. Since Tuesday when Hurricane Ivan struck the island, travellers have been transported to Barbados on shuttle services by LIAT, Caribbean Star and on small charter aircraft.

All Nippon Airways suspends two pilots

Two pilots that work for All Nippon Airways in Japan were suspended Tuesday for allegedly allowing dozens of passengers in the cockpit during a flight. The incident occurred during a chartered flight from Kansai International Airport in Japan to Dublin, Ireland, July 13.ANA said the captain allowed 27 passengers to take turns in entering the cockpit at the request of a company employee.The two co-pilots working that day in the aircraft were issued written warning government from the regulator.

British Airways sells Qatas shares

Britain's major air carrier sells its stake in Australia's Qantas Airways, while Australia's central bank leaves interest rates unchanged.
British Airways, the largest air carrier in Britain and the second largest in Europe, has raised $770-million by selling its 18-percent stake in Sydney-based Qantas Airways. The British airline says it will use the proceeds to reduce its debt and possibly look for other acquisitions in Europe.

Air France-KLM Traffic Rises 6.6 Pct

Air France-KLM, Europe's biggest airline, said Tuesday that passenger traffic rose 6.6 percent in August, driven by greater long-distance travel. The Franco-Dutch airline's load factor, a measure of an airline's success in filling its seats, improved slightly to 81.7 percent, up 0.1 point from a year earlier, on 6.5 percent higher capacity. The airline's long-haul network posted a 7.7 percent increase in traffic on 6.6 percent higher capacity, fueled by routes to America, Africa and Middle East, a statement said.

Qatar Airways Nepal flights off after office set ablaze

Qatar Airways has suspended its flights for Kathmandu for a week after mobs burst into the office of Qatar Airways, smashing windows and taking papers and furniture on to the street to burn. An employee at Qatar Airways office in Kathmandu said dozens of angry people stormed into their premises and smashed furniture before setting the building on fire. The employee estimated damage in the tens of thousands of dollars.

Air China May Sell Shrs To Deutsche Lufthansa

Air China may sell a 10% stake to Deutsche Lufthansa AG's (LHA.XE) Lufthansa German Airlines ahead of the Chinese carrier's upcoming stock market debut, the local Chinese-language newspaper Sing Tao Daily reports.
Air China plans to list shares in Hong Kong, by next month at the earliest, the report says. The airline hopes to sell an around 28% stake in an initial public offering that will raise between US$500 million and US$800 million.