Good evening everyone.
This week’s issue of PlaneBusiness Banter is now posted!
We are a bit late in posting this week — the result of PlaneDad move-related duties. I am happy to report that he is now in his new home in Texas, but the whole process took more time this week and last than I had anticipated.
Hopefully we’ve gotten the most time-consuming issues behind us.
Meanwhile, this week in PlaneBusiness Banter, there are two main stories we’re talking about. One — the reaction of United Airlines to the city of Houston’s decision to allow Houston Hobby to expand — allowing Southwest Airlines and other airlines to fly internationally from Hobby. While we knew this was going to be the city’s decision, even we were somewhat taken aback with some comments made by the airline and its CEO, Jeff Smisek after the city council vote took place.
We talk about what the airline could have done — as opposed to what it did do – in this week’s issue.
We have a new edition of AMR Bankruptcy Follies this week. This week’s we’re talking about Chinese food and mystery meat. I’ll let you guys figure it out.
We also heard from a number of our subscribers about the “Town Hall” meeting AMR CEO Tom Horton conducted last week at the airline’s headquarters. Funny. The entire presentation, particularly the Q&A session contents are not all on the official “Scrubbed” version of the session that the airline has posted for public consumption.
But essentially, I think Mr. Horton needs to be reminded that he is not the one who is going to decide whether American merges with another airline or not, or who that airline may be. That responsibility lies with the bankruptcy court, particularly the Unsecured Creditors Committee.
Etihad broke out the checkbook again last week, while David Neeleman’s Azul bought out rival Brazilian airline TRIP. This also means that SkyWest, which had invested in TRIP will get a payout. Over time.
Will Pinnacle Airlines move back to Minneapolis? Yes — if the folks in Minneapolis have anything to do with it. I also tend to think it will probably happen, as Delta continues to downsize its presence in Memphis.
Oh, and that big sell-off in airline stocks Monday? Don’t pay any attention to it. If you are a savvy investor you saw it for what it was — an overreaction to the Delta May PRASM estimate numbers. But Delta is an exception to the rule. We’ll tell you what two analysts had to say about the situation.
All this and more in this week’s edition of PlaneBusiness Banter.