Sky Talk

Airline bankruptcy ranking

J.P. Morgan recently issued a report looking at the liquidity and balance sheets of the major airlines, and included a ranking of bankruptcy risk.

Here's the breakdown, ranked from most likely to file Chapter 11 to least likely, according to the firm:

1. U.S. Airways
2. Northwest
3. United
4. American
5. Continental
6. JetBlue
7. AirTran
8. Delta
9. Alaska
10. Southwest

- Trebor Banstetter

AA: Curbside fee change unrelated to Boston case

American Airlines spokesman Tim Smith says the airline's decision to drop its $2 fee for curbside check-in nationwide is part of its broader restructuring of fees that will go into effect on June 15. He denied that it was related to a recently-settled lawsuit in Boston over tips for skycaps.

"The timing with the Boston situation was entirely coincidental," he said. The airline felt it would be easier to implement its new $15 fee for the first checked bag if the curbside charge was no longer required, he said.

- Trebor Banstetter

United, US Air break off their dance

It looks like United and U.S. Airways aren't going to be merging any time soon. Airline shares dipped on the news, with the Amex Airline Index down more than 1 percent at mid-morning.

- Trebor Banstetter

AMR's secret document

The Securities and Exchange Commission has granted AMR Corp. the right to keep a financial document secret until 2010, according to a filing disclosed by the agency today. The document in question was a exhibit to a quarterly report filed with the SEC on October 18 of 2007. At the time, AMR requested that the document be kept secret because it "qualifies as confidential commercial or financial information."

The SEC ruled that the document can be kept from public view until Oct. 18, 2010.

Hmmmm ... now what topic could that report possibly be about? Fee free to post your theories here.

UPDATE, 2:15 p.m.

A source tells me that the document in question is related to AMR's sale of its interest in ARINC, and that certain terms of the sale were redacted when filed with the quarterly report.

And as several of our readers have pointed out, the exhibit listing also suggests that the document contains details of the ARINC deal. Which is a shame, since I was hoping it was UFO-related.

- Trebor Banstetter

Dutch to rethink F-35 commitment, Israel ready to buy

Aviation Week's scribe Bill Sweetman, who digs deeply into the minutest details of fighter jet minutia, reports on the Ares blog that Dutch lawmakers have succeeded in pushing that country's Ministry of Defence to hold a full evaluation and competition for new jet fighters.

The Dutch are charter members of the JSF fan club, having contributed big chunks of cash to the development effort but proponents of European fighter jets have been arguing the country needed to look closer at other, possibly less expensive alternatives.

Parliament, according to the reports, did approve some funding for the purchase of test F-35 aircraft.

Israel, on the other hand, isn't waiting for much of anything, even a successful test flight. Lockheed Martin Chief Executive Bob Stevens confirmed today that the Israeli government has formally asked the U.S. government for permission to purchase F-35s.

Details would still have to be worked out between Israel and the U.S., but a formal order from Israel would likely come in 2011 with the first planes being available for beginning pilot training in 2011.

Lockheed expects to conduct the first test flight of the second F-35 within the next week or two.

- Bob Cox

American pulls TWU contract offer

Earlier this month, the Transport Workers Union rejected a proposal from American Airlines for a two-year contract that would have given ground workers some money in the form of bonuses, but wouldn't have raised pay rates.

Since the proposal was rejected, American has announced plans to shrink the carrier by up to 12 percent, a move that will probably result in thousands of layoffs. CEO Gerard Aprey presented a dire outlook for the airline's near-term future, saying that current fuel prices were simply unsustainable.

I've heard from a few union members who now think they should have taken the deal. I've also heard from some who remain thrilled that the union booted it.

Regardless, it's apparently too late, now, for the union to change its mind on the proposed contract. According to a message today on the union's hotline, American sent the labor group a letter  informing it that the offer has been withdrawn.

- Trebor Banstetter

AA gearing up for first Moscow flight

Amid all the cutbacks at AA, it's easy to forget that the airline is also beginning some new service soon. Next week, the carrier will start flying nonstop from Chicago to Moscow. American will be the second U.S. carrier to fly nonstop to Russia, and the first to fly there from Chicago.

The flight will start at six days a week, and move up to daily frequency next year. It will be flown on a Boeing 777 outfitted with the upgraded "Flagship Suites" in first class and the next-generation lie-flat business class seats.

- Trebor Banstetter

AA media operative departing

You don't see the name Allan Koenig in the news very often (or ever, really). But most reporters covering American Airlines know him well. Koenig, a senior vice president at PR firm Weber Shandwick, has been doing media relations for American since 2005, and he's generally handled hot topics like the Wright Amendment battle and American's heated contract negotiations.

A former assignment editor at WFAA Channel 8, Koenig pretty much always flew under the radar in his work for AA. On more than one occasion, a union official spotted him hanging around the edges of a protest and asked reporters, "Who is that guy?"

He told us this week that he's leaving Weber to join TXU subsidiary Luminant as director of corporate communications. He'll be working with Lisa Bailey Singleton, another AA alum. We wish him the best of luck in his new job.

- Trebor Banstetter

No union for Delta attendants

Flight attendants at Delta have rejected a drive to unionize. The airline says that more than 60 percent of attendants voted against a plan to join the Association of Flight Attendants/Communication Workers of America.

Airline officials say it was a vote of confidence in Delta's management. Union officials blame a voter suppression campaign waged by management.

- Trebor Banstetter

AA cuts JFK-London Stansted flights

American Airlines said today that it will discontinue flights between New York's JFK Airport and London's Stansted Airport effective July 2. AA launched the flight in October 2007.

"American Airlines will continue to offer its full schedule of flights between JFK and London's Heathrow Airport," the company said.

AA said this is the latest of changes to its flight schedule it will make to get a handle on skyrocketing fuel costs.

Readers probably recall that American jumped into the Stansted market after Eos and Maxjet began all-business-class service to the airport from JFK. Now that both of those airlines are gone, it's probably no surprise that American has pulled the flight.

- Trebor Banstetter and Scott Nishimura