July 31, 1998 |
Short air trips are substantially more expensive than before airline deregulation in cases where the airline doesn't have competition from a low-fare competitor, according to a government analysis released Thursday. While 20 years of deregulation had been positive overall, not all regions benefited, and by some measures, competition has declined recently, the Department of Transportation study said.
January 8, 1997 |
The future is cloudy for troubled commuter airline Air 21, analysts said Tuesday upon learning that the Fresno-based carrier has filed for Chapter 11 bankruptcy protection. Only 5% of all airlines successfully reorganize under Chapter 11, said Michael Lowry, president of Aviation Forecasting & Economics Inc. of Lake Oswego, Ore., adding, "When you don't have a lot of money to begin with, it's a formula for disaster."
August 8, 1996 |
ValuJet Inc. said Wednesday that it expects to resume operations in three weeks and fly only five routes, a small fraction of the 31 cities served before federal regulators grounded the low-fare carrier. It also reported a 41% drop in second-quarter profit before a $19.6-million charge tied to the deadly crash in May of one of its jets and the subsequent shutdown by the Federal Aviation Administration. With the charge, the Atlanta-based airline had a bottom-line loss of $9.
July 18, 1996 |
The explosion and crash of a Trans World Airlines jumbo jet Wednesday night came amid a strong effort by the pioneering airline to emerge from a painful era of huge financial losses and corporate strife. The crash, in fact, overshadowed what was supposed to have been a triumphant day for the St. Louis-based airline. Earlier Wednesday, TWA announced that its second-quarter profit had risen sharply from a year earlier. The increase in earnings was only the latest chapter in TWA's comeback.
June 20, 1996 |
With two aging DC-9 jetliners and a dead aim on becoming the WalMart of the airline industry, ValuJet took the nation by storm in 1993 and soon gained recognition as the fastest-growing, most profitable airline in the history of deregulation. ValuJet handed passengers peanuts rather than Salisbury steak and a plastic-coated number tag instead of a ticket--all part of a low-cost strategy in which even its chief executive worked at a $100 desk purchased at Home Depot.
December 11, 1994 |
How rapid is change in business today? A reported comment questioning whether the airlines--one of the leading industries of the 20th Century--could ever really be a good, substantial business caused airline stocks to sink last week. Noted investor Warren Buffett later denied he made such a comment, but the point is that Wall Street didn't need to check. Professional investors agreed with the sentiment that the airlines had become a low-profit, commodity industry.
September 17, 1994 |
A Japan Air Lines' plan to start hiring contract flight attendants at half the pay of full-status employees has stirred a new controversy here over government intervention in private business. The battle--unusual only in that it has gone public--is not over yet. But signs are pointing to a victory for business. It started in August, just as JAL was about to interview applicants for jobs as contract flight attendants.
September 7, 1994 |
Continental Airlines said Tuesday that it is offering tickets at a discount of as much as 50% this fall, just a week and a half after its last fare sale ended. The airline said it plans to cut fares on U.S. travel for tickets sold Sept. 7-16, reducing its New York-to-Los Angeles fare to $159 one way, from a regular discount fare of $321. That discount matches the one Continental announced last month, when it cut fares for tickets sold Aug. 12-26. After it announced that sale, most other major U.
August 15, 1994 |
USAir Group Inc. and its pilots union are further apart on wage concessions than expected, but a deal to rescue the troubled carrier from high labor costs still looks possible, analysts say. Before the union issued a sweeping proposal early this month to restructure USAir in exchange for pay cuts, some analysts had seen the airline implementing labor cost savings by September. That forecast now looks overly optimistic.