NewsAMR submits formal plan to exit bankruptcy AMR, the parent company of American Airlines, filed its formal plans to exit bankruptcy late Monday, bringing its proposed $11 billion merger with the US Airways Group closer to reality. The reorganization plan, which details some executive compensation and outlines measures for creditors and shareholders, is a necessary step before the two companies can come together to create the world’s largest airline. The plan requires both court and creditor approval.
Under the plan, AMR’s departing chief executive, Thomas W. Horton, would receive a $19.9 million severance package.
LinkPinnacle seeks green light to exit bankruptcyPinnacle Airlines plans to ask for approval to emerge from bankruptcy from a court Wednesday. The regional carrier's restructuring plan would have it become a subsidiary of Delta Air Lines.
LinkAA-US Airways could be required to divest some slotsThe Department of Justice is reviewing the number of takeoff and landing slots for a merged American Airlines-US Airways. "If they think there's a problem and conclude the transaction would reduce competition, that's when the DOJ makes these selective requirements to divest routes or slots," said Alison Smith, an antitrust attorney. US Airways CEO Doug Parker told a Senate committee last month that divesting slots at Ronald Reagan Washington National Airport would not be good for consumers. "If US Airways or the new American were asked to divest slots, we would, by definition, divest those that are the least lucrative to the airline," Parker said. "Those would tend to be service to smaller communities."
LinkJAT agrees marketing alliance with EtihadSerbia's JAT Airways has secured a marketing alliance with Etihad Airways to codeshare, stopping short of the equity tie-up mooted by Serbia's government.
Mired in recession and struggling to find investors in the European Union, Serbia had hoped Abu Dhabi-based Etihad would buy a stake in JAT, with media reports suggesting 49 percent was up for sale.
LinkFAA considers implications of lithium-ion batteriesThe Federal Aviation Administration is considering whether the overheating of lithium-ion batteries on the Boeing 787 could have implications for other uses of the batteries. "There might not have been a lot (of dialogue) in the past, but I can assure you there will be going forward," said George Nield, associate administrator for commercial space transportation at the FAA.
LinkAndroid app is not capable of hijacking planes, FAA saysThe Federal Aviation Administration and the European Aviation Safety Agency are rebutting claims by a technology consultant that aircraft can be hijacked with an Android app. "The described technique cannot engage or control the aircraft's autopilot system using the [Flight Management System] or prevent a pilot from overriding the autopilot," the FAA said.
LinkEU to approve Airbus A380 wing repairsThe European Aviation Safety Agency said on Monday it would give formal approval to repairs designed to eliminate potential cracks on wing components on the Airbus A380.
A draft directive means aircraft being retrofitted with newly designed wing components will no longer be subject to a special regime of checks, completing a vital step towards ending a 16-month trauma surrounding the world's largest jetliner.
LinkBoeing 737s receive inspection order from FAAThe Federal Aviation Administration has ordered inspections on pins used to attach tail panels to the fuselage for Boeing 737 jets. The pins, which haven’t caused any accidents, may suffer from corrosion due to "an incorrect procedure used to apply the wear and corrosion protection surface coating," the FAA said. Boeing agrees with the rule.
LinkUnited Airlines CEO pay drops 41%, down to $7.9 millionThe CEO of United Airlines saw his total 2012 compensation shrink 41% last year after stumbles in the airline's merger with Continental. Compensation for Chairman and CEO Jeff Smisek was $7.9 million last year, down from $13.4 million after a cut in his incentive payments.
LinkAirline industry opposes customs preclearance for Abu Dhabi, UAEAirlines for America and the Global Business Travel Association, as well as other groups, signed a letter protesting a decision by U.S. Customs to open a preclearance station in Abu Dhabi, United Arab Emirates. The letter asked the Department of Homeland Security to "instead continue to work collaboratively with the U.S. airline, airport and travel and tourism industries to resolve lengthy wait times at U.S. airports."
LinkKorean Air to resume Russian flightsPer Korean Air's Twitter account, the airline will resume three weekly flights between Incheon and St. Petersburg effective 4/23/13.
Pegasus Air to float stake in IPO this weekTurkish low-cost carrier Pegasus Airlines will sell a 34.5 percent stake in an initial public offering (IPO) this week, the Istanbul-based company said in a stock-exchange filing.
LinkAirlines raise airfares by $4Delta initiated a price increase of $4 on most round-trip flights on Thursday. The increase was quickly matched by United, American Airlines, Southwest Airlines and JetBlue, making it the first successful broad-based airfare increase of the year.
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