Delta Airlines has managed to secure a $2.1 billion line of credit secured by its Pacific route authorities, gate leases, and slots, the company reporting that it managed to close the deal on Monday. Delta says that it will use the money to address its 2010 debt maturities and to increase the company’s liquidity.
The transaction will reportedly generate $600 million in liquidity after Delta refinances $1.5 billion from Northwest’s bank credit, increasing Delta’s unrestricted liquidity to $5.6 billion. In all, the transaction should have a total effective yield of 9.2 percent, meaning that Delta will essentially make a 9.2 percent …read more

Almost every major airline has found itself in trouble with the FAA, but these run-ins have historically come after the airlines have been breaking the rules for extended periods of time. Now, though, the FAA will begin to put in place a variety of stricter rules and regulations that will ensure that airlines comply with the required inspections and repairs.
 
According to the Federal Aviation Administration chief Randy Babbitt, the new rules are designed to raise the bar as far as safety is concerned, with the FAA taking further steps to unearth scandals before they happen by dedicating an office to …read more

The airline industry in nearly every country is struggling. In the United States, that is painfully true. On Tuesday, American Airlines announced that more than 920 flight attendants will be out of work at the end of September.
Overall, this news affects approximately 6% of the flight attendants who work for American Airlines. The good news is that a majority of the flight attendants have the option to rejoin the company at some point when the air traffic is busier — likely in December.
In the first half of 2009, American Airlines saw their traffic drop about 10% compared to the first …read more

The Boeing Company has released a statement revealing that Scott E. Carson, 63, has decided to retire from his post as the executive in charge of overseeing Boeing’s commercial plane division. As he held his position since 2006, Carson has been closely associated with the delayed and problematic development of Boeing’s much-hyped 787 Dreamliner.
 
Carson’s successor, who was previously top executive of Boeing’s military programs, is James F. Albaugh and he will replace Carson on Tuesday, even though Carson’s retirement will not be official until the end of the year. This means that Albaugh will now shoulder the burden of releasing …read more

Southwest Airlines already has the ignominious distinction of having paid the largest airline fine in history for intentionally flying jets without required inspections, and now Southwest may face punishment once again. The FAA has sounded the alarm that Southwest Airlines may have installed faulty parts on as many as 40 jets, delaying several of the airline’s flights last Saturday.
 
These parts were the shields that protect the jet flaps, the mechanisms that slow the jet down as it prepares for landing. According to an FAA spokesperson, the faulty parts do not actually present an immediate cause for concern, but that Southwest …read more

If you are flying internationally with American Airlines, you may consider packing lightly if you want to save $50. The company recently unveiled that it would add a $50 surcharge that passengers flying on certain international flights will have to pay if they check a second bag, while checking the first bag still remains free.
 
Passengers on transatlantic flights going from or through Belgium, France, Germany, Ireland, Spain, Switzerland, or India will be the only ones paying the bag fee. Even then, more specifications apply: only certain types of economy tickets, and never business or first class tickets, will incur the …read more

Since February, Southwest Airlines has been testing out the use of wi-fi during flights. So far, the airline says that the response from their customers has been very positive.
To help implement the wi-fi, Southwest Airlines has partnered with Row 44.
Said Dave Ridley of Southwest Airlines: “We have concluded our testing for inflight wi-fi and are very happy with both the technical performance of the system and the response of customers who have used it. We are pleased to be continuing with our plans to offer satellite-enabled broadband access through California-based Row 44.”
The wi-fi roll out will likely be complete in …read more

No longer content with its status as a little-known commuter airline that only flies for major airlines, Republic Airways has embarked on a mission to become a major player in the industry. Republic began its journey with a surprise victory in bankruptcy court that allowed it to purchase Frontier Airlines, but it has not finished yet.
 
Last month, Republic purchased Midwest Air Group, Inc., a Milwaukee airline that had long been struggling in today’s unfavorable economic situation, and followed up its purchase with a risky bid for Frontier. As it continues to acquire new airlines, it faces even competition from its …read more

The summer travel season has almost drawn to a close, leaving many airlines at the mercy significantly lower demand for air transportation. Jetblue has come up with a way to hopefully draw more travelers even as overall demand begins to slow, offering frequent travelers a $599 pass that would allow unlimited flights for a month.
 
The offer will be valid from September 8 to October 8 and will allow travel between all 56 of Jetblue’s destinations, with no blackout dates guaranteed. Travelers who purchase the pass must book their flights three days prior and face a $100 penalty if they must …read more

In an internal memo, Delta announced bad news to its employees. To help overcome their mounting losses, Delta says that they are going to cut more salaried positions. No set number of job cuts were announced.
The internal memo was from Delta’s CEO Richard Anderson and President Ed Bastian.
“Unfortunately, because of the severity of this economic downturn, we also must eliminate additional salaried positions beyond the management and administrative jobs already reduced over the last 18 months.”
The memo also went on to say that the rough economic times for the company will continue for the rest of 2009.
As of the beginning …read more