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Continental Contributes Additional Money to Pension Plans October 15, 2005

Posted by Andrew in Uncategorized.
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As major US carrier Delta Airlines warned that it would default on pension payments to its retirees without a congressional bailout, the Atlanta-based airline’s fierce rival Continental Airlines announced that it would contribute an additional $84 million to its employees pension plans on Tuesday. In a statement found in a Continental press release dated October 10, Larry Kellner, Continental’s chairman and chief executive officer wrote that “Continental’s recent $84 million pension contribution demonstrates that we are working hard to fulfill our obligations and keep our promises to employees.” Despite an industry-wide downturn that began following September 11, 2001, Continental has contributed over $800 million to its pension plan program. The one-time $84 million contribution brings Continental to the $304 million minimum set for the 2005 plan. As Northwest Airlines and Delta management are working to stem an exorbitant negative cash flow, Continental is looking towards the future with a firm order for ten of Boeing’s revolutionary 787 aircraft.

New York Stock Exchange to Delist Delta Airlines October 10, 2005

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Photo: Aeroposte Editor

The New York Stock Exchange (NYSE) has submitted a formal request to the Security & Exchanges Commission for the delisting of Delta Airline’s stock from their stock exchange. Pending approval, NYSE intends to delist Delta’s stock by October 13. Delta received notification on October 4, as the “average closing price of its common stock fell below the continued listing minimum share price standard of $1 over a consecutive 30-trading-day period.” The legacy carrier responded that it would not seek to rectify this problem and would not fight the delisting. The removal of Delta from the New York Stock Exchange is indicative of the airline’s current state and it’s need to restructure into a leaner enterprise. Rival United Airlines faced bankruptcy twice over the past four years, yet sources close to the matter report that that carrier will emerge from bankruptcy protection within the next few months. Delta likely will follow the same steps of its rival by drastically cutting salaries, inefficient aircraft in operation, and destination served.

Horizon Air Reaches Agreement with Mechanics October 10, 2005

Posted by Andrew in Uncategorized.
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Horizon Air, the regional subsidiary of Seattle based Alaska Air Group, announced Friday evening that it had signed a tentative agreement with its mechanics. The contract will last for three years and cover over four- hundred mechanics and fleet service agents. Futher details are unavailable at present, as terms are being withheld pending the ratification of the agreement by the mechanics union, the Aircraft Mechanics Fraternal Association. This new agreement is one of the steps parent company Alaska Air Group, the owner of Alaska Airlines and Horizon Air, is taking to lower costs and increase profitablity.