DOCSLIB.ORG

Effects of the American Airlines/Twa Transaction and Other Airline Industry Consolidation on Competition and the Consumer Hearin

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Effects of the American Airlines/Twa Transaction and Other Airline Industry Consolidation on Competition and the Consumer Hearin S. HRG. 107–1094 EFFECTS OF THE AMERICAN AIRLINES/TWA TRANSACTION AND OTHER AIRLINE INDUSTRY CONSOLIDATION ON COMPETITION AND THE CONSUMER HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION FEBRUARY 1, 2001 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 86–771 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 11:12 Dec 01, 2004 Jkt 086771 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\WPSHR\GPO\DOCS\86771.TXT JACK PsN: JACKF SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED SEVENTH CONGRESS FIRST SESSION JOHN MCCAIN, Arizona, Chairman TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West Virginia KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine JOHN B. BREAUX, Louisiana SAM BROWNBACK, Kansas BYRON L. DORGAN, North Dakota GORDON SMITH, Oregon RON WYDEN, Oregon PETER G. FITZGERALD, Illinois MAX CLELAND, Georgia JOHN ENSIGN, Nevada BARBARA BOXER, California GEORGE ALLEN, Virginia JOHN EDWARDS, North Carolina JEAN CARNAHAN, Missouri MARK BUSE, Republican Staff Director ANN CHOINIERE, Republican General Counsel KEVIN D. KAYES, Democratic Staff Director MOSES BOYD, Democratic Chief Counsel (II) VerDate 0ct 09 2002 11:12 Dec 01, 2004 Jkt 086771 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\86771.TXT JACK PsN: JACKF C O N T E N T S Page Hearing held on February 1, 2001 ......................................................................... 1 Statement of Senator Allen ..................................................................................... 67 Prepared statement .......................................................................................... 89 Statement of Senator Boxer .................................................................................... 78 Statement of Senator Carnahan ............................................................................. 83 Prepared statement .......................................................................................... 84 Statement of Senator Dorgan ................................................................................. 70 Statement of Senator Fitzgerald ............................................................................ 74 Statement of Senator Hollings ............................................................................... 3 Prepared statement .......................................................................................... 3 Statement of Senator Hutchison ............................................................................ 80 Statement of Senator McCain ................................................................................. 1 Prepared statement .......................................................................................... 2 Statement of Senator Rockefeller ........................................................................... 88 Prepared statement .......................................................................................... 90 Statement of Senator Smith ................................................................................... 63 Statement of Senator Snowe ................................................................................... 85 Statement of Senator Wyden .................................................................................. 65 WITNESSES Bond, Hon. Christopher S., U.S. Senator from Missouri ...................................... 5 Prepared statement .......................................................................................... 7 Carty, Donald, Chairman, President, and CEO, American Airlines ................... 17 Prepared statement .......................................................................................... 20 Compton, William F., President and CEO, Trans World Airlines ....................... 23 Prepared statement .......................................................................................... 26 DeWine, Hon. Mike, U.S. Senator from Ohio ........................................................ 9 Hecker, JayEtta Z., Director, Physical Infrastructure Issues, U.S. General Accounting Office ................................................................................................. 44 Prepared statement .......................................................................................... 47 Holden, Hon. Bob, Governor, State of Missouri .................................................... 11 Prepared statement .......................................................................................... 13 Johnson, Robert L., Chairman and CEO, DC Air ................................................. 28 Prepared statement .......................................................................................... 30 Leonard, Joe, Chairman and CEO, AirTran Airways ........................................... 32 Prepared statement .......................................................................................... 33 Levine, Michael E., Adjunct Professor of Law, Harvard Law School .................. 36 Prepared statement .......................................................................................... 38 Meeks, Hon. Gregory W., U.S. Representative from New York ........................... 14 Prepared statement .......................................................................................... 16 Slaughter, Hon. Louise McIntosh, U.S. Representative from New York ............ 4 APPENDIX Air Line Pilots Association, TWA Master Executive Council, prepared state- ment ...................................................................................................................... 99 Bidwell, Richard, St. Louis Convention and Visitors Commission, prepared statement .............................................................................................................. 105 Brownback, Hon. Sam, U.S. Senator from Kansas, prepared statement ............ 95 Copland, Richard M., President and CEO, American Society of Travel Agents, letter dated February 7, 2001, to Hon. John McCain ....................................... 107 Fleming, Richard C.D., President and CEO, St. Louis Regional Chamber and Growth Association, letter dated January 31, 2001, to John M. Nannes 106 (III) VerDate 0ct 09 2002 11:12 Dec 01, 2004 Jkt 086771 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\86771.TXT JACK PsN: JACKF IV Page Griggs, Jr., Leonard L., Director of Airports—City of St. Louis, MI, prepared statement .............................................................................................................. 104 McCarthy, Karen, U.S. Representative from Missouri, letter dated February 7, 2001, to Hon. John McCain ............................................................................. 96 Reynolds, Hon. Thomas M., Congressman from New York State, prepared statement .............................................................................................................. 97 Santorum, Hon. Rick, U.S. Senator from Pennsylvania, prepared statement ... 95 Wytkind, Edward, Executive Director, Transportation Trades Department, AFL–CIO, letter dated February 1, 2001 to Hon. John McCain ...................... 100 VerDate 0ct 09 2002 11:12 Dec 01, 2004 Jkt 086771 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\86771.TXT JACK PsN: JACKF EFFECTS OF THE AMERICAN AIRLINES/TWA TRANSACTION AND OTHER AIRLINE INDUSTRY CONSOLIDATION ON COMPETITION AND THE CONSUMER THURSDAY, FEBRUARY 1, 2001 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Committee met, pursuant to notice, at 9:32 a.m. in room SR– 253, Russell Senate Office Building, Hon. John McCain, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. JOHN MCCAIN, U.S. SENATOR FROM ARIZONA The CHAIRMAN. Good morning. Eight months ago, United Airlines announced its intention to merge with US Airways, potentially creating the largest airline in the world. At that time I expressed my strong reservations about the proposal. I was concerned that the proposed transaction would lead to further industry consolidation, which would have a detri- mental effect on competition and in turn the consumer. As a result, this Committee passed a resolution disapproving the United-US Airways merger. Four months ago, the chairmen of the second and third largest airlines in the U.S., American and Delta Airlines respectively, sat in front of this Committee and warned that they would be forced to react to the proposed United-US Airways mergers, if approved, to remain competitive. Today, one of them, American, is here to discuss its proposed actions that would make American comparable in size to United if the currently proposed transactions are ap- proved. This would result in two airlines controlling approximately 50 percent of the U.S. market. It comes as no surprise that current news reports indicate that Delta is involved in negotiations with both Northwest and Conti- nental in order to remain competitive in light of these proposals. The move by Delta could result in three major airlines controlling
Load more

Recommended publications
  • AWA AR Editoral
    AMERICA WEST HOLDINGS CORPORATION Annual Report 2002 AMERICA WEST HOLDINGS CORPORATION America West Holdings Corporation is an aviation and travel services company. Wholly owned subsidiary, America West Airlines, is the nation’s eighth largest carrier serving 93 destinations in the U.S., Canada and Mexico. The Leisure Company, also a wholly owned subsidiary, is one of the nation’s largest tour packagers. TABLE OF CONTENTS Chairman’s Message to Shareholders 3 20 Years of Pride 11 Board of Directors 12 Corporate Officers 13 Financial Review 15 Selected Consolidated Financial Data The selected consolidated data presented below under the captions “Consolidated Statements of Operations Data” and “Consolidated Balance Sheet Data” as of and for the years ended December 31, 2002, 2001, 2000, 1999 and 1998 are derived from the audited consolidated financial statements of Holdings. The selected consolidated data should be read in conjunction with the consolidated financial statements for the respective periods, the related notes and the related reports of independent accountants. Year Ended December 31, (in thousands except per share amounts) 2002 2001(a) 2000 1999 1998 (as restated) Consolidated statements of operations data: Operating revenues $ 2,047,116 $ 2,065,913 $ 2,344,354 $ 2,210,884 $ 2,023,284 Operating expenses (b) 2,207,196 2,483,784 2,356,991 2,006,333 1,814,221 Operating income (loss) (160,080) (417,871) (12,637) 204,551 209,063 Income (loss) before income taxes and cumulative effect of change in accounting principle (c) (214,757)
    [Show full text]
  • Airport Press
    Vol. 31 No. 2 Serving New York Airports April 2009 JFK EWR LGA METRO EDITION SWF JFK CHAMBER TO CONTINUE SCHOLARSHIP GRANT PROGRAM The JFK Chamber of Commerce started date about their quest for a higher education last year to give degree. It does not have to be in the pursuit an “unrestricted” of an aviation degree or career. scholarship to two Last year, the Chamber awarded two stu- employees of JFK dents $500 each. This year they are looking Airport or its’ adja- to increase the dollar amount for each schol- cent industry part- arship. This will be based on the success at ners. their monthly luncheons. The method of This month Ed Bastion of Delta/North- earning the schol- west airline will speak at the Chamber Lun- arship remains the cheon on April 28th. Check out the Cham- same; it is to write ber web site www.jfk-airport.org for more an essay, written by the scholarship candi- details. DOLORES HOFMAN OF QUEENS DEVELOPMENT Back row: Wesley Mills, Manager, Boston Culinary Group; Warren Kroeppel, General Manager, OFFICE HONORED LaGuardia Airport, Port Authority of NY & NJ; Manuel Mora, Assistant Manager, Boston Culinary Group; Paul McGinn, President, Marketplace Development; Ousmane Ba, Manager, Au Bon Excuse us at Airport Press if we share in the pride about Pain; Syed Hussain, Manager, Airport Wireless; Front Row: Lillian Tan, VP/General Manager/ the honoring of Dolores Hofman of the Queens Develop- MarketPlace Development; Lacee Klemm, Manager, The Body Shop; Belkys Polanco, Assistant ment Offi ce as Top Woman in Business. She is not only a Manager, Au Bon Pain; Margherite LaMorte, Manager, Marketing & Customer Service, friend but a neighbor in Building 141.
    [Show full text]
  • Monday, December 9, 2013
    Corporate Communications 817-967-1577 [email protected] FOR RELEASE: Monday, December 9, 2013 AMERICAN AIRLINES GROUP ANNOUNCES EQUITY DISTRIBUTION UPDATE FORT WORTH, Texas – Today’s consummation of the merger between AMR Corporation and US Airways Group, Inc. and the effectiveness of AMR’s Plan of Reorganization (the “Plan”) will result in the distribution of American Airlines Group Inc. common stock (NASDAQ: AAL) and convertible preferred stock (NASDAQ: AALCP) to equity holders, creditors and employees of AMR Corporation. American Airlines Group Inc. has determined that holders of AMR common stock (formerly traded under the symbol: “AAMRQ”) will receive, for each share of AMR common stock, an initial distribution of approximately 0.0665 shares of AAL in connection with the occurrence of the effective date of the Plan. AAMRQ holders may in the future receive additional distributions based on the trading price of AAL common stock during the 120 day period after the effective date and the total amount of allowed claims, in each case, in accordance with the terms of the Plan. Additional Information and Where to Find It For questions about distributions under the Plan, please visit www.amrcaseinfo.com. For information about American Airlines Group Inc., including financial information, corporate governance and its SEC filings, please visit www.aa.com/investorrelations. About American Airlines Group American Airlines Group (NASDAQ: AAL) is the holding company for American Airlines and US Airways. Together with American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to 339 destinations in 54 countries from hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.
    [Show full text]
  • Speaker Bios
    Aircraft Builders Council 2018 Annual Conference Speaker Biographies Matt Barton, Partner Flightpath Economics, LLC Matt Barton is an aviation economist with twenty years of experience at the intersection of airline finance, labor dynamics, and strategy. His career to date has covered key portions of the industry, including: labor negotiations, fleet and network planning, and regulatory advocacy. During the bankruptcies of American Airlines, United Airlines, and Sun Country Airlines, Matt served as a financial advisor to creditors, labor groups, and other stakeholders. In 2010, Matt helped to facilitate the successful merger of two large US network airlines by leading an external analysis of synergies and financial performance. Outside the United States, Matt has led restructuring projects at China Southern, Shenzhen Air, Cebu Pacific, and Fiji Airways. At the negotiating table, Matt has modeled contract costs and represented pilots and flight attendants at United Airlines, American Airlines, US Airways, Frontier, AirTran, NetJets, Horizon Air, Atlas Air Worldwide, and others. He was part of the startup team for a new airline that operated small regional jets in Hawaii, and has participated directly in the planning and establishment of five other startup airlines worldwide. Prior to these consulting roles, Matt worked in corporate planning functions at US Airways. Matt earned an MBA from London Business School and a BA from the University of California. Itash Samani Global Head of FSTD Regulatory Affairs, CAE Training Strategy Itash has worked in flight simulation for over 35 years, in design and manufacturing as well training operations. He has extensive experience in aerodynamics and avionics systems simulation, and through his career held various managerial positions including Manager of Engineering, Manager of Acquisitions, Manager of Regulatory Compliance, Head of Regulatory for FAA Part 142, and currently holds the position of Global Head of Regulatory Affairs (FSTD).
    [Show full text]
  • RESOURCE Air Travel 2001
    RESOURCE SYSTEMS GROUP INCORPORATED Air Travel 2001 What do they tell us about the future of US air travel? An Industry Report by Resource Systems Group, Inc. December 2001 331 Olcott Drive, White River Junction, Vermont 05001 802.295.4999 www.rsginc.com www.surveycafe.com TABLE OF CONTENTS INTRODUCTION..........................................................................................................................................2 THE SURVEY SAMPLE ..............................................................................................................................2 TRIP CHARACTERISTICS..........................................................................................................................2 RESERVATIONS AND TICKETING............................................................................................................3 CHOICE OF TICKETING LOCATIONS ....................................................................................................3 SATISFACTION WITH TICKETING OPTIONS ........................................................................................4 TICKETING SEGMENTS .........................................................................................................................7 AIRPORTS ..................................................................................................................................................7 AIRLINE RANKINGS.................................................................................................................................12
    [Show full text]
  • US and Plaintiff States V. US Airways Group, Inc. and AMR Corporation
    Case 1:13-cv-01236-CKK Document 170 Filed 04/25/14 Page 1 of 28 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES OF AMERICA, et al. Plaintiffs, v. Case No. 1:13-cv-01236 (CKK) US AIRWAYS GROUP, INC. and AMR CORPORATION Defendants. FINAL JUDGMENT WHEREAS, Plaintiffs United States of America ("United States") and the States of Arizona, Florida, Tennessee and Michigan, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia ("Plaintiff States") filed their Complaint against Defendants US Airways Group, Inc. ("US Airways") and AMR Corporation ("American") on August 13, 2013, as amended on September 5, 2013; AND WHEREAS, the United States and the Plaintiff States and Defendants, by their respective attorneys, have consented to the entry of this Final Judgment without trial or adjudication of any issue of fact or law, and without this Final Judgment constituting any evidence against or admission by any party regarding any issue of fact or law; AND WHEREAS, Defendants agree to be bound by the provisions of the Final Judgment pending its approval by the Court; 1 Case 1:13-cv-01236-CKK Document 170 Filed 04/25/14 Page 2 of 28 AND WHEREAS, the essence of this Final Judgment is the prompt and certain divestiture of certain rights or assets by the Defendants to assure that competition is not substantially lessened; AND WHEREAS, the Final Judgment requires Defendants to make certain divestitures for the purposes of remedying the loss of competition alleged in the Complaint; AND WHEREAS, Defendants have represented to the United States and the Plaintiff States that the divestitures required below can and will be made, and that the Defendants will later raise no claim of hardship or difficulty as grounds for asking the Court to modify any of the provisions below; NOW THEREFORE, before any testimony is taken, without trial or adjudication of any issue of fact or law, and upon consent of the parties, it is ORDERED, ADJUDGED, AND DECREED: I.
    [Show full text]
  • Delta April 2003 Worldwide Timetable
    Airline Listing 3M Silver Airways Corporation KE Korean Air Lines Co. Ltd. 6G Sun Air Express, LLC KL KLM Royal Dutch Airlines AA American Airlines LH Deutsche Lufthansa AG AC Air Canada LW Pacific Wings, L.L.C AF Air France NH All Nippon Airways AM Aeromexico Aerovias OS Austrian Airlines AG dba Austrian de Mexico S.A. de C.V. PD Porter Airlines Inc. AS Alaska Airlines QR Qatar Airways (Q.C.S.C.) AV Aerovias del Continente Americano SA South African Airways S.A. AVIANCA SK Scandinavian Airlines System B6 Jetblue Airways Corporation SN Brussels Airlines N.V. BA British Airways SU JSC Aeroflot Russian Airlines CA Air China Limited SV Saudi Arabian Airlines CM Compania Panamena SY MN Airlines LLC de Aviacion, S.A. (COPA) TK Turkish Airlines, Inc. DL Delta Air Lines, Inc. UA United Airlines, Inc. EK Emirates US US Airways ET Ethiopian Airlines Enterprise VS Virgin Atlantic Airways Limited EY Etihad Airways VX Virgin America Inc. F9 Frontier Airlines, Inc. WN Southwest Airlines FI Icelandair DOMESTIC DOMESTIC Stops/ Stops/ Stops/ Stops/ Depart/Arrive Flight Equip Via Freq Depart/Arrive Flight Equip Via Freq Depart/Arrive Flight Equip Via Freq Depart/Arrive Flight Equip Via Freq AKRON/CANTON, OH (CAK) To AKRON/CANTON, OH (CAK) From AKRON/CANTON, OH (CAK) To ALBUQUERQUE, NM (cont) From ALBUQUERQUE, NM (cont) From National To National From Dulles (cont) To Dulles (cont) 2 00p 3 20p US5151* CRJ 0 6 6 30a 7 42a US5226* CRJ 0 7 12 31p 4 56p UA1090/UA4914* DEN 125 1 10p 9 02p UA3655*/UA652 DEN 6 Operated By US Airways Express - PSA Airlines Operated
    [Show full text]
  • The Impacts of Liberalization on Competition on an Air Shuttle Market
    The Impacts of Liberalization on Competition on an Air Shuttle Market Alessandro V. M. Oliveira§ Abstract This paper aims at assessing the impacts of deregulation on the most important airline market in Brazil: the air shuttle Rio de Janeiro – São Paulo. By making use of both a two-stages budgeting representation of the demand system, and a competition model with product heterogeneity among rivals, and based on the framework of the New Empirical Industrial Organization (NEIO), it was possible to infer whether a structural change on airlines' conduct parameters due to liberalization was observed. This exercise ultimately served as a test of the efficacy of the policy employed by the regulators since 1998. The main conclusions were that regulatory reform effectively stimulated firms to significantly increase the degree of competition in the market (via a decrease in market power), and that marginal-cost or even below-marginal-cost pricing was not rejected for some airlines. JEL: L13 – L50 – L93 Key words: deregulation – market power – conduct – airline Note: Paper competing to the Young Economist Award. § Center for Studies of Airline Competition and Regulation (NECTAR) - Instituto Tecnológico de Aeronáutica, Brazil. E-mail address: [email protected] 1. Introduction This paper aims at developing an empirical model for assessing the impacts of economic liberalization on competition in a relevant subset of the Brazilian airline industry: the air shuttle service on the route Rio de Janeiro - São Paulo. In this market the first air shuttle in the world, the ‘Ponte Aérea’, was created in 1959, by an agreement of airline managers, and had a dominant position in the airport-pair linking both city centers for almost forty years.
    [Show full text]
  • November 2015 Newsletter
    PilotsPROUDLY For C ELEBRATINGKids Organization 32 YEARS! Pilots For KidsSM ORGANIZATION Helping Hospitalized Children Since 1983 Want to join in this year’s holiday visits? Newsletter November 2015 See pages 8-9 to contact the coordinator in your area! PFK volunteers from ORF made their first visit to the Children’s Hospital of the King’s Daughters (CHKD). This group from Delta/VFC-12 and UAL enjoyed their inaugural visit in October and volunteers plan more visits through the holiday season. “100% of our donations go to the kids” visit us at: pilotsforkids.org (2) (3) Pilots For Kids Organization Pilots For Kids Organization President’s Corner... More Success for Dear Members, MCO Golf According to Webster’s Dictionary, the Captain Baldy was joined by an enthusiastic group of definition of fortunate is “bringing some good not golfers at Rio Pinar Country Club in Orlando on Sat- foreseen.” urday, October 24th. The golf event was followed by lunch and a silent auction that raised additional funds Considering that definition, our organization for Orlando area children. is indeed fortunate on many levels. We are fortu- nate to have members who passionately support Special thanks to all of the businesses who donated our vision, financially support our work, and vol- to make the auction a huge success. The group of unteer their valuable time to benefit hospitalized generous doners included the Orlando Magic, Jet- children. Blue, Flight Safety, SeaWorld/Aquatica, i-FLY, Embassy Suites, Hyatt Regency, Wingate, Double- Because of this good fortune, we stand out tree, Renaissance, Sonesta Suites, LaQuinta, the among many creditable charitable organizations.
    [Show full text]
  • 03-04-13 AMR-US HSR Release
    FOR IMMEDIATE RELEASE AMERICAN AIRLINES AND US AIRWAYS RECEIVE REQUEST FROM DOJ IN CONNECTION WITH PROPOSED MERGER FORT WORTH, TX, and TEMPE, AZ, March 4, 2013 – AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that, on March 4, 2013, each company received a request for additional information (“Second Request”) from the U.S. Department of Justice (“DOJ”) in connection with the proposed merger of the two airlines. A DOJ Second Request is a standard part of the regulatory process. A Second Request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, during which the parties may not close the transaction, until 30 days after American Airlines and US Airways have substantially complied with the Second Request (or the waiting period is otherwise terminated by the DOJ). American Airlines and US Airways expect to respond promptly to the Second Request and to continue working cooperatively with the DOJ as it conducts its review of the proposed combination. American Airlines and US Airways continue to expect the combination to be completed in the third quarter of 2013. The merger is conditioned on the approval by the U.S. Bankruptcy Court for the Southern District of New York, regulatory approvals, approval by US Airways shareholders, other customary closing conditions, and confirmation and consummation of the Plan of Reorganization. About American Airlines American Airlines focuses on providing an exceptional travel experience across the globe, serving more than 260 airports in more than 50 countries and territories.
    [Show full text]
  • 692-5000 in the Matter of the Application of the 31 NMB No. 110
    NATIONAL MEDIATION BOARD WASHINGTON, DC 20572 (202) 692-5000 In the Matter of the Application of the 31 NMB No. 110 INTERNATIONAL BROTHERHOOD FILE NO. CR-6842 OF TEAMSTERS FINDINGS UPON alleging a representation dispute INVESTIGATION pursuant to Section 2, Ninth, of the Railway Labor Act, as September 16, 2004 amended involving employees of ALLEGHENY AIRLINES, INC. AND PIEDMONT AIRLINES, INC. This determination addresses the applications filed by the International Brotherhood of Teamsters, AFL-CIO (IBT) and the Communications Workers of America (CWA). IBT requests the National Mediation Board (Board or NMB) to investigate whether Allegheny Airlines, Inc. (Allegheny) and Piedmont Airlines, Inc. (Piedmont or collectively with Allegheny as Carriers) operate as a single transportation system. The investigation establishes that Allegheny and Piedmont operate as a single transportation system for purposes of the craft or class of Fleet and Passenger Service Employees. PROCEDURAL BACKGROUND On February 13, 2004, IBT filed an application alleging a representation dispute involving the consolidated Fleet and Passenger Service Employees craft or class formed by the -528- 31 NMB No. 110 merger of Allegheny into Piedmont. IBT asserted that Allegheny and Piedmont constitute a single transportation system. The application was assigned NMB File No. CR-6842. The Board assigned Maria-Kate Dowling to investigate. On March 2, 2004, the Board requested that the Carriers provide information on whether Allegheny and Piedmont were operating as a single transportation system. The Carriers jointly responded on March 23, 2004. On March 26, 2004, CWA filed an application alleging a representation dispute involving the combined Allegheny/Piedmont Fleet and Passenger Service Employees craft or class.
    [Show full text]
  • Airline Scheduling: an Overview • Crew Scheduling • Time-Shared Jet Scheduling (Case Study)
    • Airline Scheduling: An Overview • Crew Scheduling • Time-shared Jet Scheduling (Case Study) Airline Scheduling: An Overview Flight Schedule Development Fleet Assignment Crew Scheduling Daily Problem Weekly Problem 8th = plane toooo , 000 - ( cost of - 500,000 guesses ) salary- 09,500900 1 Flight Schedule Development Flight Number Departure Arrival Aircraft Type location location time time . arty . Given: 1. Demand and revenues for every origin-destination pair ("market") over time-of-the-day and day-of-the-week 2. Route information • distances • times • operating restrictions 3. Aircraft characteristics and operating costs y 4. Operational and managerial constraints Find: A set of flights with • departure and arrival times and locations • aircraft assignment which maximize profits 2 Other issues in airline operations: • Concurrent flows of passengers, cargo, aircraft and flight crews through time • Aircraft maintenance • Management of ground resources: § ticketing, check-in, baggage drop-off, gates Fleet Assignment • Fleet: Group of flights confined to a specific aircraft type Example: US Airways typically flies about 2,500 jet flights to over 100 domestic, Caribbean and European markets using more than 400 aircraft of 14 different types • Assign an aircraft type to each flight in the schedule • Objective: maximize revenue by § matching seat capacity to passenger demand § reducing costs such as fuel, maintenance and airport gating • Requirements: § restrictions on the operating ranges of aircraft § curfews and runway limitations at airports 3 § aircraft must stay overnight at stations where maintenance work can be performed § there must also be enough time for passengers to deplane and enplane and for servicing the aircraft Today most major airlines use automated procedures based on mathematical optimization models to solve this problem.
    [Show full text]