U-Turn Rounds Up The News
FAA managers in Dallas intentionally misclassified mistakes by controllers that almost resulted in collisions, according to a DOT inspector general's report. The mistakes were disguised to look like pilot errors, according to the report, and allowed the aircraft to fly too close together. The report, which has not been released yet, details the events in Dallas. FAA officials promised to address the issue. "We're not going to stand for this," said FAA Acting Administrator Robert Sturgell
Continental says it will not merge with UnitedContinental Airlines said Sunday it plans to remain an independent carrier. The airline had conducted formal merger talks with United Airlines, which has been interested in merging with Continental for years. Continental CEO Larry Kellner said that although the airline had decided against merging with United at this time, it is open to discussing joining global alliances with other carriers. Meanwhile, United CEO Glenn Tilton, looking ahead to the possibility of other business deals, said his company "will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers." The New York Times (4/28) , The Wall Street Journal (subscription required) (4/28) , Houston Chronicle (4/27) , Chicago Tribune/Associated Press (free registration) (4/27) , The Dallas Morning News (4/27) 
Report: FAA intentionally misclassified controller errors
FAA managers in Dallas intentionally misclassified mistakes by controllers that almost resulted in collisions, according to a DOT inspector general's report. The mistakes were disguised to look like pilot errors, according to the report, and allowed the aircraft to fly too close together. The report, which has not been released yet, details the events in Dallas. FAA officials promised to address the issue. "We're not going to stand for this," said FAA Acting Administrator Robert Sturgell. The Wall Street Journal (subscription required) (4/25) , The New York Times (4/25) , The Washington Post (4/25) , Star-Telegram (Fort Worth, Texas) (4/25) , Air Transport World (4/25)
Delta pilots suggest arbitration with Northwest pilots: Leaders of Delta Air Lines' pilots union say they are open to "expedited arbitration" that could help reach an agreement with Northwest Airlines pilots about combining the unions before the two carriers merge. Delta union chairman Lee Moak said the union wants to sign a single contract before the merger is completed. The Atlanta Journal-Constitution (free registration) (4/21)
US Airways posts Q1 loss, cites fuel prices
US Airways posted a $236 million first-quarter loss, down from a profit of $66 million posted a year ago. The airline cited higher fuel prices. The carrier noted that it plans to reduce capacity and change its fare structure to offset higher fuel prices. The Wall Street Journal/Dow Jones Newswires (subscription required) (4/24)
Delta, Northwest report large Q1 losses on soaring fuel costs
Delta Air Lines on Wednesday posted a first-quarter loss of $6.39 billion. The company attributed the results to the sharp increase in the cost of fuel and a decrease in the company's market value. Northwest Airlines reported a quarterly loss of $4.14 billion, citing higher fuel costs and a charge taken during the quarter. USA TODAY/Associated Press (4/23) , Bloomberg (4/23) , The New York Times/Reuters (4/23) , The Wall Street Journal (subscription required) (4/23)
Three airlines post losses, cite higher fuel costs
Discount carriers AirTran Holdings and JetBlue Airways reported first-quarter losses on Tuesday. United Airlines also reported a first-quarter loss earlier in the day, citing higher fuel costs for the results. United is launching a plan to cut domestic mainline capacity by 9% by the fourth quarter and plans to shed more than 1,000 jobs. Airline executives have also noted that due to current oil prices they would have to boost ticket prices by up to 15% to break even. The Wall Street Journal (subscription required) (4/23) , The New York Times (4/23) , The Washington Post (4/23) , Air Transport World (4/23) , The Street.com (4/22) , USA TODAY (4/23)
Delta, Northwest executives will testify about merger
Delta Air Lines and Northwest Airlines executives will defend and explain their merger plans today before House and Senate Judiciary committees. The airlines say the combined company will post strong profits and will not hurt competition within the industry. Convincing lawmakers of the merger's benefits is a key step toward winning regulatory approval. The Washington Post (4/24) , Forbes (4/23) , Star Tribune (Minneapolis-St. Paul) (4/23)
Delta, Northwest CEOs tell lawmakers merger won't hurt competition
Executives from Delta Air Lines and Northwest Airlines on Tuesday assured lawmakers that their planned merger will not stifle competition, saying there is little overlap between the two carrier's routes. They will testify in hearings starting Thursday before the House Judiciary Committee's antitrust task force and the Senate Judiciary Committee. The Atlanta Journal-Constitution (free registration) (4/22) , Reuters (4/23) , WIVB TV News 4 (Buffalo, N.Y.) (4/22)
Few airlines hedge enough to put a dent in fuel's spike
Most large airlines did not hedge enough to offset the spike in fuel prices, observers say. The exception is Southwest Airlines, which has an aggressive hedging strategy in place. "Hedging costs money," said Stephen Schork, who writes a newsletter on oil and gasoline. "Given how tight the margins are, some have opted to fly by the seat of their pants." The Wall Street Journal (subscription required) (4/24)
Pilot shortage could lead to slower growth, higher costs
A group that represents airlines warned that a pilot shortage could slow airlines' growth and boost labor costs. The industry now needs 3,000 more pilots each year than training schools can provide. The Wall Street Journal (subscription required) (4/23)