Freighter Captain

Hello Everyone,

Okay, the 3rd quarter financial results are now out. The first report came in over three weeks ago but for whatever reason(s), US Airways and Delta waited until this week.

So here goes:

THE WINNERS:
JetBlue Airways reported a net income of $2.7 million.
Continental Airlines reported a net income of $61 million.
Alaska Airlines reported a net income of $90.2 million.
Southwest Airlines reported a net income of $227 million.

CHUMP CHANGE:
AirTran Airways reported a net loss of $200,000.

THE LOSERS:
US Airways reported a net loss of $87 million.
American Airlines reported a net loss of $153 million.
Northwest Airlines reported a net loss of $475 million.
Delta Air Lines reported a net loss of $1.1 Billion.
United Airlines reported a net loss of $1.8 Billion.

Despite the $87 million quarterly loss reported by US Airways, the stock continues to rise, thanks (mostly) to decreasing oil prices. Don't look now, but Nymex Crude Future closed yesterday at 57.67/bbl.

The new US Airways stock initially had mixed reviews. Three Wall Street firms rated the stock at neutral and two, Merrill Lynch and J.P. Morgan, I believe, said "buy." Well, the "buys" have it as the stock has continued to climb, closing yesterday at 32.80 (up 1.50)

Unfortunately, I noticed in an SEC filing earlier this week that some bad habits are hard to break. It seems that the new US Airways has just increased the salaries of four senior executives. This appears to be based on competition and not merit, particularly in one person's case.

Derek Kerr (senior vp and cfo), Scott Kirby (evp sales and marketing), Jeffrey McClelland (evp chief administrative officer) and, wait a minute, what the hell is this? Al Crellin (evp operations) are all seeing generous increases in their salaries. See for yourself at:
http://www.shareholder.com/Common/Ed...1377/05-00.pdf

The company also adopted a nice Performance-Based Award Plan for the company officers. Humm. Also, and you heard it here first, I would not be surprised if some other not-so-senior officers received raises as well. My oh my, for a company that just emerged from bankruptcy and just reported a quarterly loss, it appears that there's plenty of money to go around --- as long as you are in Tempe, Arizona.

As I said earlier, these raises are based on what other airlines are doing and they are certainly not based on merit. As I wrote in one of my recent newsletters, Mr. Crellin's operational performance at US Airways speaks for itself. And, as you saw last week with the DOT report, US Airways continues to do poorly in baggage complaints and was the worst airline for consumer complaints.

The solution? Give the head of operations a nice salary increase and celebrate with an Appletini. Well, don't forget you can call 1-800-US Daily today and see if Doug Parker gives an explanation for these pay raises.

AND SPEAKING OF AL CRELLIN:
So you're thinking about going to the movies this weekend are you? Perhaps you'll be interested in the heart-warming story of 50-cent's 'Get Rich or Die Tryin.'' Or, you can stay at home, save your ten bucks and read Dawn Gilbertson's article on Al Crellin's relocation to Tempe. It's available at:
http://www.azcentral.com/arizonarepu...crellin06.html

Now in this article there's a quote from the head of the pilots union for old US Airways, Bill Pollock. Mr. Pollock says of Al Crellin, "he's the guy that is the fall guy for the things that don't go right?"

Well, just one question for you Mr. Pollock. Who do you suggest be held responsible for poor operational performance? The Comptroller?

THE WRIGHT AMENDMENT:
The battle between Southwest Airlines and the Dallas-Fort Worth International Airport over the Wright Amendment has been interesting - to say the least. I'll make it simple for you:

What is the Wright Amendment you ask?
http://en.wikipedia.org/wiki/Wright_amendment

What Herb Kelleher had to say yesterday:
http://www.southwest.com/about_swa/p...testimony.html

The Dallas-Fort Worth International Airport response:
http://www.dfwairport.com/mediasite/...51110-post.pdf

ZAGAT AIRLINE SURVEY:
And you thought Tim and Nina Zagat only rated Restaurants. Here's a look at the results of this recent survey. Sorry, but neither America West nor US Airways made the cut.

For U.S. Airlines, go to:
http://www.zagat.com/img/usairline05.pdf

For International Airlines, go to:
http://www.zagat.com/img/intairline05.pdf

NOTHING SHORT OF AMAZING:
11,664 nautical miles (more than half-way around the world)
22 hours, 42 minutes
Boeing 777-200 Long Range
Hong Kong
London

Wow! The B777-200LR left Hong Kong on Nov. 9 and landed at London's Heathrow Airport yesterday and in the process, set a new world record for distance traveled. Hey, how many bags of Spinzels do you get on a flight that long? Anyway, here's the story and a few pictures at: http://www.boeing.com/news/releases/...r_051110g.html

VIVA LA FRANCE?
Okay, when the U.S. State Department issues Travel Warnings, that means the State Department recommends that Americans AVOID a certain country. A Travel Warning HAS NOT been issued for France.

The State Department also issues Consular Information Sheets for every country of the world with information on such matters as the health conditions, crime, unusual currency or entry requirements, any areas of instability, and the location of the nearest U.S. embassy or consulate in the subject country.

So, this past Monday, the State Department did issue a Public Announcement regarding the idiot violence in France and if you are going to be traveling there, you may want to check this out:
http://travel.state.gov/travel/cis_p...a/pa_2743.html

If this newsletter has been forwarded to you and you would like to receive it directly from my list server, just send a blank email to: [email protected]

Regards,

John McCorkle
Wilmington, NC