Europe’s Aerospace Industry Facing Bankruptcy
Delta to Buy Out Thousands, Cut Flights
Skycaps Sue American Airlines Over Lost Tips
FAA Reviewing All US Airlines
EUROPE’S AEROSPACE INDUSTRY FACING BANKRUPTCY – USA Today
According to the head of France ’s Dassault Aviation, maker of Falcon business jets and Rafale fighters, the rise of the euro toward $1.60 may cause bankruptcies in Europe ’s aviation industry. “$1.60 is unbearable. With a euro at $1.60, some players could go bankrupt,” said Chief Executive Charles Edelstenne. Because aircraft and equipment normally are sold in dollars, the euro’s 19 percent rise against the dollar in the past year has caused great tension in Europe’s aviation industry, which employs 132,000 people in France alone. “The dollar has put such pressure on our profitability that we are no longer masters of our own destiny,” Edelstenne said. French President Nicolas Sarkozy last year tried to encourage the European Central Bank into capping the euro, but that suggestion was rebuffed by German Chancellor Angela Merkel.
Link: USA Today
DELTA TO BUYOUT 30,000, CUT FLIGHTS - Bloomberg
Adjusting to record-high fuel costs and the weakening U.S. economy, Delta announced that it will ground twice as many planes as it initially has planned and will offer buyouts to 30,000 employees. The carrier will ground as many as 45 jets, shrink routes and cut 2,000 non-pilot jobs in the U.S. Since emerging from bankruptcy last April, it struggles with surging fuel prices, which will cost the carrier $2 billion more than last year. Bastian said at a JPMorgan Chase & Co. transportation conference in New York said Delta may be “modestly profitable” because of their job and route cuts and that, “It is not out of the question for Delta to be profitable this year,” a fact sure to cheer employees.
Link: Bloomberg
SKYCAPS SUE AMERICAN AIRLINES OVER LOST TIPS – The Boston Globe
Since American Airlines implemented the $2-per-bag fee for its curbside check-in at Logan International Airport three years ago, Skycaps employees began losing tips. Passengers, already frustrated with fare costs the inconvenient process of travel, were no longer willing to tip curbside check-in employees, due to the $2 charge. A group of skycaps is taking its complaints to federal court this week in a lawsuit that seeks restitution of all tips lost by skycaps since the fee began. According to AA, “The evidence will show that customers understood the fee was not a tip for the skycaps from day one. The evidence will further show that the plaintiffs cannot demonstrate any decrease in tip income resulting directly from American’s implementation of the fee-based program.” AA has made millions from this additional charge.
Link: The Boston Globe
FAA REVIEWING ALL U.S. AIRLINES - Forbes
In light of Federal Aviation Administration officials overlooking safety checks for Southwest, it announced yesterday that it will begin a slew of safety checks at all U.S. airlines. FAA inspectors will ensure airlines have complied with inspection orders that Southwest missed. By Mach 28, the FAA will have verified compliance with at least 10 safety orders, known as airworthiness directives. By June 30, a full audit covering at least 10 percent of all safety directives will be completed. A leading FAA critic, Rep. James Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, said the FAA move was “a positive step.” He has accused the agency of becoming cozy with airlines. FAA spokeswoman Laura Brown said it will review paperwork and check airplanes at 118 operators, some of which are quite small.
Link: Forbes
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