U Turn's week In Review

Stable oil prices could prompt airline stocks to triple, analyst says
If oil prices stabilize, airline stocks could double or triple, according to a Wall Street analyst. "Once oil stabilizes, and it becomes clear to the broad group of investors and pundits that the legacy airlines are not all going out of business, we expect a doubling or tripling in airline share prices," said Avondale Partners analyst Bob McAdoo. The Street.com (6/25)

AVIATION PIONEER JOHNNY MILLER DIES AT 102
A pilot who was almost as old as powered aviation itself has died. John M. Miller was 102. Miller, of Poughkeepsie, N.Y., died of natural causes on June 23. Miller was born on Dec. 15, 1905, and witnessed some of aviation's most pivotal events such as when Charles A. Lindbergh took off for Paris on his historic Atlantic crossing. Miller counted Amelia Earhart as one of his acquaintances. He uttered his last words to his nephew. "I guess my flying days are over," reported the Poughkeepsie Journal. Read more on AOPA Online.

 

Northwest, Delta pilots agree on joint contract
Pilots at Delta Air Lines and Northwest Airlines have reached a joint contract agreement that will go into effect if the two airlines merge. The two pilot groups have agreed on a system for creating one seniority list by the time the merger closes. International Herald Tribune/Associated Press (6/24) , The Wall Street Journal/Dow Jones Newswires (subscription required) (6/24) , The Dallas Morning News (6/24) , The Wall Street Journal (subscription required) (6/25) , Star Tribune (Minneapolis-St. Paul) (6/24) , Reuters (6/25)

 

Continental, pilots reach agreement on retirements, leaves
Continental Airlines has reached an agreement with its pilots union for voluntary retirement incentives and leaves. The agreement is part of the airline's plan to shed 3,000 jobs, and the union said it may help limit furloughs at the carrier. "If we get the levels of participation we are hoping for, it would have a significant impact on the involuntary furloughs of our junior pilots," a union official said. Houston Chronicle (6/25)

 

Surging fuel costs behind United announcement to furlough 950 pilots
United Airlines on Monday said it plans to furlough 950 pilots by the end of 2009. The cuts are the result of the airline's plan to reduce its fleet by 100 jetliners in response to fuel costs. Soaring fuel prices have forced other carriers to take similar steps. "We must take the difficult but necessary steps to reduce the number of people we have to run our business," United said. The Wall Street Journal (subscription required) (6/24) , The New York Times/Associated Press (6/24) , The Wall Street Journal/Dow Jones Newswires (subscription required) (6/23) , USA TODAY (6/24) , The Washington Post (6/24) , Chicago Tribune (free registration) (6/23)

 Stable oil prices could prompt airline stocks to triple, analyst says
If oil prices stabilize, airline stocks could double or triple, according to a Wall Street analyst. "Once oil stabilizes, and it becomes clear to the broad group of investors and pundits that the legacy airlines are not all going out of business, we expect a doubling or tripling in airline share prices," said Avondale Partners analyst Bob McAdoo. The Street.com (6/25) Southwest adds more flights in high-demand markets
Southwest Airlines is adding service in high-demand markets to take advantage of other carriers' capacity cuts. The carrier's hedging program is allowing it to pay less for fuel than most of its rivals. "We are trimming our flight schedule, frequently and continually, of unproductive flights, while we continue to grow in cities like Denver," CEO Gary Kelly said. "We have a much different story to tell today than our competitors." The Wall Street Journal (subscription required) (6/26) , The Dallas Morning News (6/26) 

Midwest hopes to avoid bankruptcy with quick restructuring
Midwest Airlines hopes that moving quickly to establish a restructuring plan can help it avoid filing for bankruptcy protection. The airline has hired restructuring advisers Seabury Group. It has already announced plans to ground planes and shed jobs. The Wall Street Journal (subscription required) (6/27)

 

Northwest drops two U.S.-Europe routes, suspends another
With fuel costs rising and demand falling, Northwest Airlines says it will cancel two routes to Europe and suspend another in October. The routes being canceled are Detroit-Dusseldorf and Hartford-Amsterdam, and the Minneapolis/St.Paul-Paris service will be suspended through March. MarketWatch (6/26)

 

American announces severe capacity cuts in Chicago, Dallas, New York
American Airlines said it plans to cut capacity by as much as 12% in the fourth quarter due to soaring fuel costs, the biggest effects of which will be felt in Chicago, Dallas and at New York's LaGuardia Airport. The airline also noted that congestion and delays have caused LaGuardia to reach a "crisis point." The Wall Street Journal (subscription required) (6/25) , The Washington Post (6/26) , The New York Times/Associated Press (6/26)

 

Frontier Airlines to shed capacity, jobs
The weaker economy and soaring fuel costs will force Frontier Airlines to shed capacity and jobs. The airline said mainline capacity will fall 17% from September through March from year-earlier levels. Yahoo!/Associated Press (6/25)

 

AirTran CEO sees more capacity cuts
AirTran Airways CEO Robert Fornaro predicted airlines will have to shed more capacity to offset higher fuel prices. He noted that current capacity cuts of 7% are not enough. "We're in the middle of a crisis where airlines have to adapt and need to do it very, very quickly," he said. " Aviation Daily (6/24)

 

Midwest airlines to ground 12 MD-80 planes
Midwest Airlines says it will take its 12 MD-80 jets out of service in the fall as the company undergoes a restructuring. The jets, used mainly for flights to major West Coast cities, are considered fuel-inefficient, but analysts say the decision leaves the airline with little long-haul capacity to access the West from Milwaukee. Air Transport World (6/24)

 

Revolutionary new jet engine said to burn cleaner, cheaper
In what is being called one of the most exciting developments in commercial aviation in years, Pratt & Whitney has designed an innovative jet engine that could be less polluting and cheaper to use than any other jet engine. The turbofan engine is said to burn 12% to 15% less fuel than other jet engines and reduce carbon dioxide emissions by 1,500 tons per plane per year. Portfolio.com (6/25)

 

Report: Disgruntled TSA screeners could be affecting security
A report issued Tuesday by the Department of Homeland Security says low morale among TSA's 48,000 airport screeners could be compromising passenger safety. "Given their frustration, employees may be distracted and less focused on their security and screening responsibilities," says the report by DHS Inspector General Richard Skinner. But TSA Administrator Kip Hawley responded with a point-by-point rebuttal of the 29-page report, charging that its findings were based on interviews with a few disgruntled employees who were not representative of the agency as a whole. USA TODAY (6/25)

 

TEST YOUR KNOWLEDGE OF RUNWAY SIGNS AND MARKINGS
Historically, general aviation operations account for the majority of runway incursions. To improve that record, pilots need to maintain vigilance and situational awareness while operating in the airport environment. Test your knowledge of airport signage and pavement markings, progressive taxi instructions, land-and-hold-short operations, and more with the latest AOPA Air Safety Foundation Safety Quiz. Then study the runway environment with the foundation's free runway safety resources, including an online course, flash cards, and airport taxi diagrams.