Star Alliance News

[Pieter C. 5]

FAA Proposes Safety Fines Against United, US Air

 

October 14, 2009

 

US aviation regulators proposed on Wednesday USD$9.2 million in safety related fines against US Airways and United Airlines.

 

The Federal Aviation Administration proposed a USD$5.4 million fine against US Airways for allegedly operating eight planes while out of compliance with certain safety directives or its own maintenance programmes.

 

The proposed USD$3.8 million fine against United alleged the airline flew one plane on more than 200 flights after violating its own maintenance procedures.

 

Both companies can appeal the fines.

 

(Reuters)

[Pieter C. 5]

Air New Zealand Cuts Domestic Fares

 

October 16, 2009

 

Air New Zealand will cut its domestic fares by up to 23 percent and simplify the fare structure in a bid to stimulate domestic travel, the airline said on Friday.

 

Shares in Air New Zealand, 77 percent owned by the New Zealand government, last traded up 0.8 percent at NZD$1.33. The stock has gained around 46 percent so far this year, compared with an 18 percent rise in the benchmark top 50 index.

 

In August Air New Zealand reported a 90 percent fall in profit and said there were signs demand for air travel is stabilising, although the environment remains turbulent.

 

Air New Zealand dominates domestic air routes, competing with Australian airlines Virgin Blue and Qantas Airways' low cost carrier Jetstar.

 

(Reuters)

[Pieter C. 5]

EgyptAir expects profitable year, hopes to leverage Cairo hub

 

Friday October 16, 2009

 

EgyptAir Holding Co. Chairman and CEO Hussein Massoud said in Cairo that the airline has not been affected by the industry downturn as deeply as others and that it expects another profit in fiscal 2009-10.

 

MS's net earnings in the fiscal year ended June 30 were down 8% from the prior year, but Massoud said the carrier "expects more improvement" during the first half of 2010. It expects to carry around 8 million passengers in 2009-10, up some 14%. The biggest threat is expected to come from LCCs, which he said "are targeting our 80 million people in Egypt more and more, especially in Cairo."

 

EgyptAir does not plan to launch its own LCC. Instead, it is sticking to its long-term strategy and even has asked aircraft manufacturers to deliver ordered aircraft earlier. It is scheduled to take delivery of its 12th 737-800 today and has arranged to take the first of its eight A330-300s in August 2010 instead of August 2011, the CEO said.

 

The carrier expects to add 4-5 new African destinations each year as it looks to leverage its new membership in Star Alliance. The long-haul connections offered by the group and EgyptAir's potential to be Star's preferred African carrier led it to convert two 777-300ER orders into eight 737-800s. It still has six -300ERs on order. Its first -300ER should arrive in March, and the aircraft eventually will replace five 777-200s.

 

Massoud said three new West African destinations are expected to come online in 2010. Cairo International's Terminal 3 is the planet's only dedicated Star terminal, and he said MS needs to do more to get the word out. "It is working as a hub for Africa, the Middle East and Europe very well. But we have to do more advertising for Cairo as a hub," he said.

 

The current fleet plan is scheduled to be complete in 2014. "In 2003 we had 32 aircraft. Today we have 62 and by 2014 we will have 72, including replacing older aircraft," he said. MS also plans to lease an additional A300-600F and phase out two A300B4 freighters in the near future. By 2019, Massoud hopes to be flying the A380. "The day we feel we can operate the A380, we will start," he said.

[Pieter C. 5]

Thai Airways Plans Share Issue Next Year

 

October 19, 2009

 

Thai Airways plans to issue shares next year to raise funds for repaying short-term debt, its newly appointed president said on Monday.

 

Piyasvasti Amranand did not say how much money the flag carrier will raise. But THB29 billion baht (USD$869 million) of debt matures next year, he added.

 

Kosin Sripaiboon, a senior analyst with UOB Kay Hian Securities, said he expected Thai Airways to raise almost THB0 billion (USD$600 million), or issue 800 million new shares, half of its current registered capital of 1.7 billion shares.

 

The carrier has total debts of THB160 billion.

 

"We need to raise capital because we have a lot of short-term debt to be repaid," Piyasvasti said.

 

"We are also trying to convert our short-term debt to longer maturities. As the long-term debt has a maturity of six years, that doesn't match our funding for plane procurements," he told reporters on the first day of his job.

 

The capital-raising would also help to cut the airline's debt-to-equity ratio to 2 times from more than 3.0 times now, Piyasvasti said.

 

The national carrier, which made a record net loss in the fourth quarter of 2008 because of the global economic slowdown and airport closures caused by political protests, is in the process of overhauling operations and restructuring management.

 

Earlier, Thai Airways' board approved plans to seek up to THB35 billion of loans in short-to-medium term funding to finance its restructuring. So far, the airline has received THB18 billion in loans from banks and was expected to get another THB1 billion loans soon.

 

REVENUES TO IMPROVE NEXT YEAR

 

The airline should generate revenue of THB157 billion this year, down 21 percent from last year, Piyasvasti said, adding that he expected improving passenger numbers to drive up revenue to THB186 billion next year.

 

"For net earnings, it remains unclear. But passenger numbers recovered in the third quarter and also cabin factors are better," he said of the percentage of seats sold.

 

Thai Airways, 68 percent state-owned, reported revenue of THB76 billion in the first six months and a net profit of THB2.47 billion.

 

The airline has said it aims to boost its percentage of seats sold, or cabin factor, to 73-74 percent for 2009, similar to last year's 75 percent. It reported 71.2 percent in the first half.

 

Second-quarter cabin factor was 64-65 percent, down from more than 80 percent in the first quarter, hit by a drop in tourist arrivals due to the global impact of the H1N1 flu virus, and fallout from political violence in Thailand in April.

 

The airline has said it ordered eight A330 aircraft from Airbus, six of them to be delivered this year. It will take delivery of its first three A380s in 2012 and another three in 2013.

 

(Reuters)

[KK Lee 5]

SIA suffers second straight quarter loss

 

SINGAPORE, Nov 11 — Singapore Airlines has reported its second straight quarterly loss – the first time this has happened since the company went public in 1985.

 

But there is a sliver of good news – the S$159 million (RM387 million) loss for the three months to Sept 30 was a lot better than the S$307 million of red ink it racked up in the first quarter.

 

Revenue for the second quarter hit S$3.1 billion, 7.3 per cent higher than the preceding three months’ figure.

 

While spending during the period was higher than the total expenditure in the first quarter, due mainly to higher fuel prices, SIA also got some relief from lower losses from fuel hedging.

 

It posted an operating loss of S$182 million for the second quarter, compared with S$319 million for the first three months of the financial year.

 

The year-on-year numbers were far grimmer. Turnover for the second quarter dropped almost 30 per cent while expenditure fell 21 per cent, from S$4.1 billion to S$3.3 billion.

 

The S$159 million loss compared with a profit of S$324 million a year earlier.

 

SIA carried 4.2 million passengers in the three months, 14 per cent fewer compared with the same period last year.

 

Lower earnings at its maintenance arm SIA Engineering and at SIA Cargo and SilkAir also hit the bottom line.

 

Half-year losses were S$466 million against a profit of S$682 million a year ago.

 

The results mean staff pay cuts for three more months at least.

 

Under agreements signed with its three unions, SIA will cut 25 per cent of the monthly variable component (MVC) built into staff salaries if the airline makes an operating loss of S$50 million or more in any given quarter.

 

All of the MVC, which comprises 10 per cent of an employee’s total pay, will go if losses exceed S$200 million.

 

Captain P. James, president of the Air Line Pilots Association-Singapore, is disappointed with the results.

 

“After all the efforts that the company and staff have taken to cut costs, the results are disappointing,” he said. “Although losses have reduced, we were hoping for a greater improvement.”

 

Apart from the pay cuts, employees have also been put on a shorter work month scheme and pilots have agreed to give up 65 per cent of one day’s pay a month.

 

SIA, which has been hit not just by falling passenger numbers but by lower yields as well, has also made capacity cuts and route adjustments to help it cope with the tough times.

 

For example, the unprofitable service to Vancouver via Seoul was dropped in April, while services to Moscow via Dubai, and to Tokyo via Bangkok were suspended.

 

Advance bookings indicate that demand for air travel has stopped declining and is gradually recovering.

 

The capacity programmed for the rest of the year also “appears well-matched to the demand”, SIA said.

 

But while market conditions allow for some rollback of promotional pricing, yields are unlikely to get back to pre-crisis levels within the next six months, the airline said.

 

Alan Tan, president of the SIA Staff Union which represents cabin crew and other rank-and-file staff, is hoping for the best.

 

“Given the financial results, staff have no choice but to continue to bite the bullet but I am confident that the current third quarter will be better,” he said.

 

Earnings per share for the July-September quarter dropped from 27.3 cents a year ago to a loss of 13.4 cents, while net asset value per share was S$10.51 as on Sept 30, down from S$11.78 as on March 31.

 

No interim dividend has been declared. — The Straits Times

[Aiman 0]

Hudson River Crash Documentary *The Miracle on Hudson River* - US Airways 1549

 

http://www.youtube.com/watch?v=QkKL29F4C4E

 

http://www.youtube.com/watch?v=bZuoZKwoBz4

 

---------

 

Actually this documentary will premier aired this night weekend on Discovery Chanel.

 

---------

 

Error appear "Sorry, but you have posted more media files than you are allowed to" need to separate it.

 

 

 

 

It seem that its only can slot 2 media at time, required to view manually by other tab. Sorry for inconvenience.

Edited November 12, 2009 by Aiman

[Kenneth T 0]

It looks so real.....even though it's in animation term....

[Li Ren 2]

Thanks you for sharing,Aiman.

[KK Lee 5]

SIA starts hiring cabin crew again

 

SINGAPORE, Nov 14 — Singapore Airlines (SIA), which froze cabin crew recruitment in February because of the business downturn, has started hiring again.

 

No major career fair is being planned, but The Straits Times understands that the airline has been contacting those who applied earlier, to fix interviews.

 

SIA girls who gave up their wings to have children are also being called back, as part of a re-employment scheme that allows them to pick up where they left off.

 

Airline spokesman Nicholas Ionides confirmed that hiring had resumed to address attrition.

 

But he did not say how many people SIA planned to recruit this time round.

 

On average, about four or five staff retire every month and several more resign.

 

The airline has a pool of about 7,000 cabin crew.

 

Hit by the downturn, which began when the global economy went into a tailspin in September last year, SIA introduced broad measures that included cutting capacity and grounding planes.

 

This led to excess manpower, addressed in part through a voluntary leave programme, a shorter work month scheme, and early retirement.

 

Those schemes are still in place.

 

While there is still some surplus manpower, Ionides said: “Given attrition rates and the lengthy training lead times for cabin crew, operational requirements dictate that we must prepare in advance to build up necessary crew numbers.”

 

It takes up to six months to train cabin crew.

 

As for cockpit crew, the airline has no plans to recruit new cadet pilots until the second half of next year, at the earliest.

 

There are currently 360 cadet pilots at various stages of training.

 

Qualified captains were last hired in October last year, Ionides said.

 

Alan Tan, president of the SIA Staff Union, which represents cabin crew and other rank-and-file staff, said the resumption of cabin crew recruitment was a positive sign that things were on the up.

 

“Given that the company is hiring new people again, we also hope it will consider more contract extensions for those who retire,” he said.

 

Under current rules, stewards retire at 57, while the women leave after 15, 20 or 25 years of service, depending on their rank.

 

But there is an option for the company to extend these contracts for another three years.

 

SIA is still not out of the economic storm. Earlier this week the airline stated it had lost S$159 million (RM387.5 million) in the three months to Sept 30.

 

This equates to S$466 million in total losses for the first half of the current financial year, which ends next March.

 

While conditions remain challenging and yields per passenger are still low, the airline is confident the next six months will see growth.

 

At a post-results briefing for media and analysts on Wednesday, chief executive officer Chew Choon Seng said the ongoing Asia-Pacific Economic Cooperation meetings, as well as February’s Singapore Airshow and the opening of the integrated resorts, should help boost traffic numbers. — Straits Times

 

Light at the end of tunnel

[KK Lee 5]

Abstract of ‘Fly by Wire’ by William Langewiesche is available at;

http://www.timesonline.co.uk/tol/news/world/us_and_americas/article7013967.ece

 

Edited February 7, 2010 by KK Lee

[Eugene Koh 4]

QUOTE

February 22, 2010

 

THE federal government has opened the way for another Middle Eastern airline to enter the hotly contested route between Europe and Australia after the signing of an air-services agreement with Turkey.

 

The prospect of Turkish Airlines flying to Australia is another irritant for Qantas, which warned last week that yields from its international routes will continue to lag behind a recovery in the domestic market.

 

The agreement will allow Turkish Airlines to immediately begin up to five direct flights a week between Australia and Turkey. Qantas will have the right to do likewise but it said yesterday that it had ''no current plans'' to fly direct to Istanbul.

 

Turkish Airlines wants at least three flights a week between Istanbul and Sydney. Its chief executive, Temel Kotil, visited Australia last August as part of a push for the route.

 

Last year about 60,000 people travelled between the two countries. More than four-fifths of them were Australians, highlighting the large number of people here of Turkish background and Turkey's popularity as a tourist destination.

 

Qantas has faced mounting competition on the so-called kangaroo route from Middle Eastern airlines such as Emirates, Etihad and Qatar Airways. The Gulf airlines were responsible for a 14 per cent increase in capacity between Australia and Britain last year, despite the global financial crisis curbing demand for travel.

 

The latest agreement comes a week after the Rudd government granted Etihad the right to increase flights to Australia from 28 to 42 a week by March next year. Another airline from the United Arab Emirates, Air Arabia, has been allowed to operate up to seven services a week to Australia from early next year.

 

However, advances from Emirates to the government for an extra quota of services were rebuffed this month. Over the past 13 years the airline has increased flights from three a week to 70.

 

Qantas has long campaigned about the threat it says is posed by ''government-owned'' Middle Eastern airlines. Last week Qantas's chief executive, Alan Joyce, reiterated concerns about Middle Eastern airlines flying to Australia when they did not have to worry about their bottom lines.

 

The agreement will also allow Turkish and Australian airlines to enter into code-share arrangements with third-country carriers to provide services via intermediate destinations.

UNQUOTE

 

What aircraft will Turkish Airlines use to fly direct from Istanbul? I know they have B777-300ER however when their lease expires, can their A340-300s do the job? Or perhaps via KLIA hehe...

[KK Lee 5]

Does anyone know how is MH doing between IST and AUS?

 

[Pieter C. 5]

Air Canada Takes Aim At Emirates' Expansion Plans

 

March 10, 2010

 

The chief executive of Air Canada accused Emirates on Tuesday of wanting to "flood" Canadian skies with airline seats so it can scoop up passengers and divert them through Dubai.

 

Such a move by the Dubai government-owned airline would be "severely damaging" to airports and airlines operating in Canada as it would steal away the connecting passengers they depend on to make their routes profitable, Calin Rovinescu, CEO of Canada's biggest airline, said.

 

"While its argument may be seductive, what Emirates' strategy will do is constrain the growth of Canadian airports by turning them from hubs into stubs at the end of a spoke that leads only to Emirates' hub in Dubai," Rovinescu said in a speech in Vancouver.

 

Emirates has been lobbying the Canadian government to allow it to expand its three-day-a-week Dubai-Toronto service. It also wants to fly to Calgary and Vancouver.

 

A study, commissioned by Emirates and released two weeks ago, concluded that Canada could reap economic benefits of CAD$480 million (USD$466 million) a year and create 2,800 jobs if the Mideast airline was given more flying slots.

 

"It is well known in the industry that Emirates is trying to push hard to divert as much global flow traffic via Dubai in order to deploy its massive fleet of wide-body aircraft, including A380s it has purchased or has on order," Rovinescu said.

 

He said statistics showed that the number of people travelling daily to Dubai from Canada last year was "barely enough to fill a mid-size, 213-seat Boeing 767".

 

Last month Emirates' senior vice-president of international affairs, Andrew Parker, told Toronto's Globe and Mail newspaper that Air Canada and its Star Alliance partner, Lufthansa, were unnecessarily worried about losing passengers to Emirates.

 

He said Emirates' Toronto-Dubai flights have been more than 90 percent full.

 

(Reuters)

 

We're 'Big Threat' To Delta - Continental CEO

 

March 9, 2010

 

Continental Airlines said its strength in Latin America, Asia and New York poses a "big threat" to its larger rival and former alliance partner Delta Air Lines.

 

Continental, the world's fifth-largest airline, was part of the SkyTeam alliance until last October, when it quit the airline network following Delta's merger with Northwest.

 

"In our prior alliance, we were partners with somebody who wanted to kill us," chief executive Jeff Smisek said on Tuesday. "And it was a lot like being married to a woman who wants to poison your food -- it's just generally not a good idea."

 

Alliances allow airlines to share pricing and flight information, as well as save on costs. Smisek said Continental's switch to Star Alliance was helping to drive passenger traffic.

 

He added that Continental's operations in New York, Asia and Latin America were a looming threat to Delta's network.

 

"We're a growing threat to them in the Pacific," Smisek said. "You watch the fight over JAL and they were taking out their cheque book and spinning like drunken sailors."

 

Delta ultimately lost its bid to fold JAL into SkyTeam.

 

Continental's switch also brought it closer to United Airlines, which is a founding member of the Star Alliance. The two talked extensively about merging until talks broke off two years ago.

 

Continental has said it would prefer to stay independent, rather than merge with another airline.

 

Smisek said the airline would continue to watch "the competitive dynamics" of the industry in the wake of Delta's merger with Northwest Airlines. He added that the merger so far has gone smoothly, although it is "premature" to gauge its success.

 

"When we chose not to merge with United, it was a point in time decision," Smisek said, adding that he voted against the merger at the time.

 

"If we think it's in our best interest to bulk up defensively, we'll do so," Smisek said. "But I think it's premature to make that decision at this time."

 

(Reuters)

[Hakan 2]

What aircraft will Turkish Airlines use to fly direct from Istanbul? I know they have B777-300ER however when their lease expires, can their A340-300s do the job? Or perhaps via KLIA hehe...

 

Hello Eugene, now I saw your question. Turkish Airlines has a contact with Australia but not to be realise yet. Altought they couldn't be start this flight, they are thinking to use technical stop in Singapore and probably they operate 777-300ER or A340-300 on this route. There is no plane which has capability to make nonstop from IST-SYD on THY fleet now (plane's ranges too close but not enough for safe non stop flight).

I'm sure Turkish Airlines would be enter southeast market about Aussie travellers via Singapore. As far as I know Kualalumpur wouldn't a part of future plan of Turkish Airlines becouse of Malaysia Airlines is very successfull on this route between KUL-IST-KUL.Turkish Airlines preparing for interesting destinations in Asia for next months. I'm sure Pieter can be give the fresh news when new routes opened.

[Pieter C. 5]

Let's revive this thread:

 

United Broaches Alliance With US Air, Continental

 

April 19, 2010

 

United Airlines is continuing separate merger talks with US Airways and Continental Airlines, and has also discussed the option of deepening a three-way marketing alliance between the carriers absent a merger, people familiar with the matter said.

 

Continental restarted merger talks with United last week, two years after walking away from almost sealing a deal. The talks are progressing fast, as much of the groundwork was laid in 2008. They are also intensifying, as United is much farther along in its discussions with US Airways, two of the sources said.

 

The sources spoke on condition of anonymity because details of the talks are not public.

 

US Airways and United's talks have been going on for months. The two parties still have some important issues to resolve, but a deal could potentially happen in a matter of weeks, one of the sources said.

 

United and Continental came very close to merging in 2008, but the talks fell apart as Continental chose to pursue an alliance instead. Such a merger would create an airline larger than Delta Air Lines, which bought Northwest Airlines in 2008 to become the world's biggest carrier.

 

United and Continental had resolved all the major issues in 2008 so there is little left to do this time around, sources said.

 

Under the terms discussed in 2008, Continental's then-CEO Larry Kellner would have been chief executive and then-President Jeff Smisek would have been president of the combined company, sources said at the time. Smisek is now the chief executive of Continental.

 

United CEO Glenn Tilton was to get a seat on the board of the combined company.

 

The two sides have not agreed to any management terms this time around and talks are not in advanced stages yet, the sources said on Sunday.

 

United and US Airways declined comment. Continental was not available for comment.

 

THREE-WAY ALLIANCE

 

United, Continental and US Airways are all part of Star Alliance, and United has broached the topic of deepening that three-way alliance with each party, but the three carriers have not discussed the subject together yet, the sources said.

 

The three major global air alliances -- Star, SkyTeam and oneworld -- are global networks of carriers that allow members to streamline costs while sharing revenue. Within Star, United and Continental have permission to share international routes and jointly set fares on those routes.

 

If the three were to form a deeper alliance that would seek antitrust immunity, getting regulatory approval -- and labour support -- could be difficult.

 

When United and US Airways announced a USD$4.3 billion merger in 2000, the deal fell apart on opposition from unions and the Department of Justice.

 

Those issues will likely come up again as the two carriers would end up with a large number of hubs and extensive operations in the Washington area. Regulatory approval for a three-way alliance with antitrust immunity will be even tougher, given the size of the airlines and the overlap in the markets they serve.

 

The three carriers would have an unparalleled presence in the Northeast, with overlaps in New York, Philadelphia and Washington DC.

 

Continental, which has long said it would prefer to remain independent, could opt for a deeper alliance instead of a merger. But at a conference in March, chief executive Jeff Smisek did say the carrier would "bulk up defensively" if it was in its best interest.

 

Many airline executives have called for consolidation, saying it was a necessity for the industry to return to profitability.

 

Airlines, struggling with high fuel prices and a pullback in consumer spending amid a weak economy, have lost USD$50 billion in the past 10 years, according to the International Air Transport Association. The industry lost USD$11 billion in 2009 alone.

 

(Reuters)

[Pieter C. 5]

Continental, United Meeting On Potential Deal

 

April 29, 2010

 

The boards of Continental Airlines and United Airlines parent UAL are meeting this week to consider a potential merger and news of a deal could come as early as Friday, sources said.

 

A merger of the two US carriers would create the world's largest airline, surpassing Delta Air Lines in traffic and revenue.

 

Continental's board met on Wednesday, one source said. Continental and United declined to comment.

 

The two US airlines resumed merger negotiations earlier this month, two years after walking away from similar talks.

 

Earlier this week, a source said the two companies disagreed over the exact ratio of shares that United planned to pay for Continental in the potential stock-for-stock merger.

 

Continental wanted to use the so-called "unaffected share prices," which is the price of the stock before the recent spate of news of airline merger talks, while United wanted to use a later market price, the source said.

 

UAL's share price has risen to USD$21.75 on Wednesday from USD$18.95 on April 7, when news of talks between United and US Airways first broke. Those talks have since ended. Over that same period, Continental shares rose to USD$22.17 from USD$20.50.

 

Other aspects of the potential deal have already been agreed to, including naming United chief executive Glenn Tilton as chairman and Continental CEO Jeff Smisek as chief executive, sources previously said. United would be the surviving brand and the combined company would be based in Chicago, they added.

 

(Reuters)

 

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United, Continental To Announce Merger On Monday

 

April 30, 2010

 

United Airlines and Continental Airlines are expected to announce that they are merging to form the world's largest airline on Monday, the Wall Street Journal reported on Thursday, citing unnamed sources.

 

Continental's board would meet on Friday and Sunday, and United's would meet on Friday, the newspaper said on its website.

 

United declined to comment and Continental did not immediately respond to a request for comment.

 

Meanwhile, a source close to the situation said concern over the share-price ratio to be used in a potential stock swap was "no longer an issue" and added that an announcement of the deal would likely be made early next week.

 

The two US airlines resumed merger negotiations earlier this month, two years after walking away from similar talks.

 

Other aspects of the potential deal have already been agreed to, including naming United chief executive Glenn Tilton as chairman and Continental CEO Jeff Smisek as chief executive, sources previously said. United would be the surviving brand and the combined company would be based in Chicago, they added.

 

The Journal report, citing people familiar with the matter, said that Tilton would be non-executive chairman for two years, after which Smisek would also take on that post.

 

Shares of United fell 1.3 percent to USD$21.47 on Thursday, while Continental rose 2.4 percent to USD$22.70.

 

(Reuters)

[Pieter C. 5]

Continental, United Agree Exchange Ratio

 

April 30, 2010

 

Continental Airlines and United Airlines have ironed out the last remaining wrinkle in their merger talks, paving the way for a deal that would create the world's largest carrier, two sources familiar with the matter said on Friday.

 

The airlines have agreed to an exchange ratio of 1.05 UAL shares for each Continental share in all-stock deal yet to be approved by the companies' boards, the sources said.

 

Based on United's stock price of USD$21.83 on Friday afternoon, and Continental's 139.6 million outstanding shares as of April 21, United would pay USD$3.2 billion for Continental.

 

That value would be determined by the market, and could change quite a bit by the time the deal closed and the shares were exchanged.

 

Based on current shares outstanding, a combined company would have 314.5 million shares, and UAL shareholders would own roughly 53 percent of the new company.

 

United's board will meet on Friday, while Continental's board will hold meetings on Friday and Sunday to discuss the deal, the sources said.

 

Under the terms being discussed for the all-stock merger, UAL chief executive Glenn Tilton would become non-executive chairman of the combined carrier while Continental CEO Jeff Smisek would become chief executive.

 

The combined carrier would operate under the United brand name and would be based in Chicago, sources had previously said.

 

United and Continental declined comment.

 

UAL shares closed at USD$21.60, up 0.6 percent on Friday while Continental shares closed at USD$22.35, down 1.5 percent.

 

The two airlines restarted merger talks in April, two years after walking away from almost sealing a deal. Continental's board voted down a similar plan two years ago, but industry experts have said an approval is more likely this year because UAL is in better financial shape.

 

UAL posted a narrower first-quarter loss of USD$82 million, compared with a year-earlier loss of USD$382 million. Revenue rose 15 percent to USD$4.2 billion.

 

Many airline executives have called for consolidation, saying it is a necessity to allow the industry to return to profitability.

 

Airlines, struggling with high fuel prices and a pullback in consumer spending amid a weak economy, have lost USD$50 billion in the past 10 years, according to the International Air Transport Association.

 

The industry lost USD$11 billion in 2009 alone.

 

Still, Continental has long said it would prefer to remain independent. But at a conference in March, CEO Smisek said the company would "bulk up defensively" if it would be in its best interest.

 

(Reuters)

 

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US Would Likely Approve A United/Continental Merger

 

April 30, 2010

 

United Airlines and Continental Airlines can expect to win US government approval of any merger proposal as their combined operations do not appear to raise serious competition issues.

 

The Obama administration would likely approve a deal to create the world's biggest airline but could first require the sale of certain routes or other assets to boost competition, antitrust attorneys and industry experts said.

 

"Given the nature of the airline industry, the antitrust regulators will not block this merger, in my judgment," said antitrust expert Evan Stewart of Zuckerman Spaeder.

 

But the carriers should not expect a Justice Department review to be as swift as the 2008 acquisition of Northwest Airlines by Delta Air Lines, which was deliberately timed to be considered by the business-friendly Bush administration.

 

"It will take a long time and there will be a lot of people complaining behind the scenes, especially the unions," said John Briggs of Axinn, Veltrop and Harkrider.

 

Sources familiar with the discussions have said that United and Continental are close to proposing a merger for the second time in two years, and a deal could be announced within days. Discussions in 2008 ended with Continental walking away, concerned about bigger United's financial health.

 

Neither United nor Continental have confirmed they are talking again.

 

Analysts have trumpeted such a deal as good for all US carriers and the 700 million passengers they fly each year due to expectations the merged entity would remove excess capacity and prompt greater efficiency.

 

With passenger demand on the upswing in an improving economy, the timing of any deal is better than 2008 when airlines were in financial turmoil amid recession.

 

Although the Justice Department has experience analysing airline merger proposals, the Obama administration's senior antitrust enforcer, Christine Varney, has not concentrated on traditional industries.

 

"She is focused on technology and those sorts of issues because that's where America has competitive leadership. There's some important issues here but I don't think it's her priority," Stewart said.

 

UNITED TURBULENCE

 

United's experience with the US government has been anything but smooth since 2000.

 

A proposed merger with US Airways in 2001 foundered over competition concerns. United's bid for a federal loan guarantee in 2002 was rejected by a Treasury board, stunning the carrier and pushing it into bankruptcy.

 

United's latest application, a waiver from antitrust law as part of an overseas alliance with Continental, was approved earlier this year by the Transportation Department over strong objections by Justice antitrust officials.

 

It is unclear if any concerns from the contentious antitrust waiver case would spill over into a merger review.

 

Antitrust review of a merger's impact on consumers focuses on nonstop routes where parties compete directly, proximity of hubs and other big operations, and the potential for fare increases in concentrated regions.

 

Big airlines with merger aspirations argue that concerns about competition should be muted because of the fragmentation of the US airline market where more than a dozen carriers and regional affiliates operate.

 

Airlines are no longer haemorrhaging financially but there are key players, such as United chief executive Glenn Tilton, who believe consolidation is crucial for industry health. Airline mergers historically have an uneven success rate, but the Delta deal has generated cost savings, and the carrier has narrowed losses and expects to be profitable this quarter.

 

Continental flew more than 30 million passengers between February 2009 and January 2010, according to Transportation Department figures. Its two biggest hubs are Houston and Newark.

 

United flew 47 million passengers over the same period, more than half of them using hubs in Chicago, Denver, San Francisco, Washington Dulles and Los Angeles.

 

The carriers have no overlaps in their hubs or top 10 domestic nonstop flights, according to a review of their biggest operations.

 

"That is definitely a plus," said Beau Buffier, an attorney with Shearman & Sterling.

 

Another antitrust attorney said the Justice Department could require the carriers to give up some routes or other assets to boost competition, perhaps in the greater New York area, where operating rights to key airports is heavily regulated. Access there is coveted as a destination and jumping off point for premium domestic and international business travel.

 

"Because Continental controls Newark and United is not tiny at (John F Kennedy) and LaGuardia, they could require something at those airports," he said.

 

(Reuters)

 

-------------------------------------------------------------------------------------------

 

United/Continental Merger Would Boost Fares

 

April 30, 2010

 

A merger of United Airlines parent UAL and Continental Airlines would be an explosive development for the airline industry, but its impact on fares could be imperceptible to the travelling public for months to come.

 

The two US airlines are in the final stages of closed-door merger talks that may conclude with a deal announcement as early as Sunday, sources say. A merger would create the world's largest airline, presumably with lower net costs and strategic advantages in the hyper-competitive airline business.

 

It also would remove excess service on some routes, giving a merged carrier leverage to raise ticket prices. Experts agree that higher fares are inevitable, but it won't happen overnight and other factors could blunt the impact on travellers.

 

"It's not necessarily good for consumers, but that remains to be seen," said airline consultant Robert Mann. "There's still a lot of price discipline out there from the low-fare carriers."

 

Sources say the combined carrier would operate under the United brand and be based in Chicago. Neither airline has commented or even acknowledged the talks.

 

REACHING HIGHER

 

The airline industry, which suffers from razor-thin profit margins, has struggled to boost fares this year despite widespread capacity cuts in 2008 and 2009. Those cuts might have given them renewed pricing power were it not for an economic recession that drained travel demand.

 

Doug Parker, chief executive of US Airways, which last week called off its own merger talks with United, said the airline industry is in serious need of pricing power and that all US airlines would benefit from less competition and lower airline capacity.

 

"A transaction between UAL and Continental would be good for the airline business," Parker said.

 

Data from FareCompare show that air fares of 2009 were at 10-year lows as the airline industry wrestled with the recession.

 

Rick Seaney, chief executive of FareCompare, said higher fares are sure to result from the combination of UAL and Continental, which would leapfrog current leader Delta Air Lines in terms of traffic.

 

"One of the biggest drivers of airline ticket prices is competition," Seaney said. "Any time you take a major player like Continental off the board, the bottom line is that prices are going to go skyward. It's just simple supply and demand."

 

Air fares were poised to move up anyway, Seaney said, because demand is improving after last year. "The question is how much," he said.

 

Price increases could hit smaller and regional markets harder as discount airlines such as Southwest Airlines will help limit fare rises in larger markets, Seaney said.

 

"In the bigger cities where the low-cost airlines have a pretty good presence, usually the top 60 or 70 cities, basically they're going to keep what will be the four network airlines honest, to some degree," Seaney said.

 

NOT SO FAST

 

Experts agree that a major airline merger would support fares, but by how much and how quickly is still in debate. It depends in large part on how much capacity United and Continental remove from their combined system.

 

Furthermore, it could take several months for the two airlines to blend their flight schedules.

 

Joe Schweiterman, a transport expert at DePaul University in Chicago, noted that the impact on consumers could also be muted by the fact that low-cost carriers such as Southwest and its peers still keep industry-wide fare increases in check.

 

"The days of worrying about cartel type dominance is over," he said. "There are just too many discount carriers now.

 

Schweiterman said that any impact a merger has on fares could be imperceptible to many travellers.

 

(Reuters)

[Denny Yen 0]

http://www.nytimes.com/2010/05/03/business/03merger.html?src=mv

 

May 2, 2010

United and Continental Said to Agree to Merge

By JAD MOUAWAD and MICHAEL J. de la MERCED

 

United Airlines and Continental Airlines agreed Sunday to a $3 billion merger that would create the world’s biggest airline, according to people briefed on the negotiations.

 

United’s purchase of Continental, to be announced officially on Monday, would form a coast-to-coast behemoth with a leading presence in the top domestic markets, including New York, Chicago and Los Angeles, along with an extended network to Asia, Latin America and Europe. The deal was completed in a remarkably swift two weeks, and would give the airlines the muscle to fend off low-cost rivals at home and to take on foreign carriers abroad.

 

The combined company would keep the United name and be based in Chicago. Jeffery A. Smisek, Continental’s chief executive, would run the company. If the deal wins antitrust approval, the merged airline would replace Delta Air Lines as the top carrier.

 

The boards of both companies met Sunday to approve the all-stock deal, according to people familiar with the companies who spoke on condition of anonymity because the negotiations were delicate. The UAL Corporation, United’s parent company, would issue 1.05 shares for each Continental share, valuing the acquisition at $3.17 billion, based on Friday’s closing price. The merger is expected to be completed before the end of the year.

 

Airlines view consolidation as a way to reduce capacity in an industry that still has too many seats chasing too few passengers. Even with the steep cuts made in the last two years, airlines are still losing money. For much of the last decade they have suffered a succession of powerful blows — from the terrorist attacks of 9/11 to rapidly rising fuel costs and the recession. They have also been straining to keep up with low-fare competition.

 

But with the economy starting to improve and passenger traffic picking up, the industry is generally healthier now, with more cash and less debt. Credit markets have also thawed, allowing access to capital.

 

For air travelers, the disappearance of another major carrier could mean less competition on some routes and, potentially, higher fares. Still, previous mergers have had a muted effect on ticket prices, especially on routes served by low-fare carriers — Southwest Airlines and JetBlue Airways among them.

 

“Airlines are struggling to find a business model that makes sense,” said Scott Sonenshein, an assistant professor at the Jones Graduate School of Business Rice University. “Consolidation gives them more leverage. As a consumer, you will have less choices, fewer routes, higher prices and more fees.”

 

Combined, United and Continental have 21 percent of domestic capacity, in terms of so-called available seat miles, or one seat flown one mile. Delta has a market share of 20 percent. Globally, the merged companies would have a 7 percent market share.

 

The merger would put pressure on American Airlines, which was once the market leader, but which would drop to third place. While American’s executives say they do not feel threatened by industry mergers, Wall Street analysts have been displeased by the company’s performance.

 

US Airways, which three weeks ago began its own merger talks with United, is now left on the sidelines, raising questions about its ability to survive as a stand-alone carrier.

 

The United-Continental deal has some major hurdles to clear. The airlines need to win approval from the Justice Department’s antitrust division, a challenge given the renewed regulatory zeal in Washington. Unlike the Bush administration’s six-month review of the Delta-Northwest deal, analysts expect a lengthier and more complex review of this merger.

 

The merger also needs the backing of employee unions, whose opposition to mergers in the past has undone many of the proposed savings. One factor in favor of the deal is that United’s pilots’ union indicated last month it would not oppose a deal with Continental, whose own pilots have so far remained silent.

 

The board approvals end nearly a month of intrigue after United initiated talks to combine with US Airways. Those negotiations caught Continental executives by surprise, according to people with knowledge of the matter. Many analysts said United’s talks with US Airways were intended all along to lure Continental to the table.

 

United and Continental were close to a merger two years ago, but Continental walked away because of United’s poor financial health.

 

The earlier talks allowed for swift negotiations this time. United and Continental executives quickly settled some potentially divisive issues, like the name of the combined company, where its headquarters would be and who would run it. United’s chairman, Glenn F. Tilton, would remain for two years. After that, Mr. Smisek of Continental would become the executive chairman.

 

The Chicago connection could provide additional benefits. Mr. Tilton has been courting local politicians, and he was already planning to move some operations to the Willis Tower, formerly the Sears Tower, this summer. The city is eager to retain a major business, and United now could use that leverage with the Obama administration, whose ties to Chicago run deep.

 

United shareholders would own 55 percent of the combined company, with Continental shareholders owning the rest. Management would be roughly split between the sides. The new entity would expect annual cost savings of $1 billion to $1.2 billion, and would still fly to 370 cities in 59 countries.

 

The combined airlines would have a 40 percent market share at San Francisco International and 35 percent at Chicago O’Hare International, according to data compiled by Cambridge Aviation Research, a consulting company. At Houston Intercontinental, one of the city’s two airports, they would have 64 percent of the market and at Newark Liberty International, 55 percent.

 

A merger could yield more than $2 billion in additional revenue and cost savings, according to estimates by Vicki Bryan, an analyst at Gimme Credit.

 

The deal is a personal success for Mr. Tilton, a former oil executive who ran the Texaco Corporation until it was acquired by Chevron. He took over United in 2002 as it was on the verge of bankruptcy, and has since pushed relentlessly for a merger.

 

It also vindicates the work of Kathryn A. Mikells, United’s chief financial officer since November 2008, who is the highest-ranking woman in an industry dominated by men. Analysts have praised her for United’s cost-cutting efforts in the last year, Jeff Straebler, a strategist at RBS Securities, said.

 

United’s improved finances have allowed for a major turnaround in its fortunes. In 2008, it was Continental that was close to buying United. But as that deal was being negotiated, United reported steeper-than-expected losses, leading to doubts about the company’s health even as soaring oil prices were crippling the entire industry. Just hours before a deal was to be announced, Continental executives walked away.

 

But in the last two years, United has improved its cash position, aggressively reduced capacity, raised new revenue from bag and other fees, and cut costs. It now has $4.5 billion in cash.

 

The merger would retire one of the oldest names in airline history, joining other prominent brands like TWA, Pan Am and Eastern in the history books. Continental’s roots go back to a carrier formed in 1934 in El Paso, Tex., which named itself Continental three years later.

[Tamizi Hj Tamby 1]

So,my guess that UA will be retired after the merge.But anything can happen right?

[BC Tam 2]

So,my guess that UA will be retired after the merge.But anything can happen right?

No Tamizi, the UA brand will apparently soldier on, Continental to dissapear

It reads more like a purchase of Continental

 

United’s purchase of Continental, to be announced officially on Monday,.....

 

The combined company would keep the United name and be based in Chicago.

[Mohd Suhaimi Fariz 2]

No Tamizi, the UA brand will apparently soldier on, Continental to dissapear

It reads more like a purchase of Continental

 

From what I've read online, Continental have the better reputation than United, although United's more well known throughout the world. Surprised they didn't keep the reputable Continental name. I mean, it's easier to build a good brand up rather than changing people's perception toward a failed brand.

 

But I wonder, with all the conslidations that are going on in the US & Europe, will we see a similar situation here in Asia? CX with SQ perhaps, or even QF/MH?

Edited May 3, 2010 by Mohd Suhaimi Fariz

[Y. J. Foo 0]

The New CO-UA livery:

 

 

http://www.unitedcontinentalmerger.com/

 

http://www.united.com/

 

 

 

 

Looks fugly IMO...

 

 

[Tamizi Hj Tamby 1]

Urgh,looks awful for me.

 

That's mean the brand new United Airlines will incorporate CO livery.

 

From their site,the holding company will be known as United Continental Holdings,Inc.

 

After the incorporation,Looks like the original 'Big 5' (AA,DL,UA,CO,NW) will be 'Big 3' (AA,DL,UA)

Edited May 3, 2010 by Tamizi Hj Tamby

[Pieter C. 5]

United, Continental Boards Approve Merger

 

May 3, 2010

 

United Airlines parent UAL will buy Continental Airlines for USD$3.2 billion, forming the world's largest carrier in a merger that further shrinks the embattled US airline industry and could drive up air fares, sources said on Sunday.

 

The boards of directors of both companies unanimously approved the deal, which was expected to be announced by the carriers on Monday morning, sources familiar with the discussions said. UAL and Continental declined to comment and neither airline has confirmed the votes.

 

If given regulatory approval, the carrier would be called United Airlines and would be based in Chicago, with over USD$29 billion in annual revenue, a source said. The deal would generate up to USD$1.2 billion in revenue and cost benefits for the combined company.

 

"The combined firm would have more staying power than each of them individually," Robert Mann, airline consultant at RW Mann, said. "Part of it is the consolidation provides pricing power and the opportunity for pricing power for the entire industry."

 

"The margins on the combined business would be better," Mann said. "The share of revenue that's consumed by revenue will be lower. Margins will be better."

 

The airline industry is recovering from an economic downturn that drained travel demand and forced carriers to downsize.

 

Experts have said consolidation would lend much-needed stability to the industry, which has been dogged by low-fare competition, terrorism concerns, volatile fuel prices and overcapacity.

 

ALL-STOCK DEAL

 

United and Continental have agreed to an exchange ratio of 1.05 UAL shares for each Continental share in an all-stock deal, the sources said. That value would be determined by the market, and could change by the time the deal closed.

 

Based on United's stock price of USD$21.83 on Friday afternoon, and Continental's 139.6 million outstanding shares as of April 21, United would pay USD$3.2 billion for Continental.

 

Based on current shares outstanding, a combined company would have 314.5 million shares, and UAL shareholders would own roughly 53 percent of the new company.

 

Under the terms for the all-stock merger, UAL chief executive Glenn Tilton would become non-executive chairman of the combined carrier while Continental CEO Jeff Smisek would become chief executive.

 

The carriers are planning a 16-member board with six directors from each airline, plus Tilton and Smisek, and two seats from unions. The airlines hope for US regulatory approval of the proposed merger by year's end.

 

The new company on paper now would have a combined work force of nearly 90,000 employees and a combined fleet of 693 planes.

 

United Airlines took in more than USD$16 billion in operating revenue for 2009. The carrier has hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, DC. The carrier boasts a strong presence on Asia-Pacific routes, Europe and Latin America.

 

The carrier has 46,000 employees and a mainline fleet of 360 planes.

 

Continental, which saw USD$12.6 billion in annual revenue for 2009, has about 41,000 employees and hubs in Newark, New Jersey, Houston and Cleveland. Continental has a mainline fleet of 333 jets.

 

The unions representing pilots at UAL and Continental did not have immediate comment.

 

Although Captain John Prater, the president of the Air Line Pilots Association, which represents UAL and Continental pilots, said in February that a merger of the two carriers made more sense than other possible combinations because they have less route overlap.

 

UAL and Continental are both members of the global Star Alliance of airlines. UAL shares trade on Nasdaq. Continental shares trade on the New York Stock Exchange.

 

LONG TIME COMING

 

The leaders of both airlines have engaged in merger talks before, the most recent being in 2008, when Continental walked away at the last minute out of concern for UAL's then-fragile financial position.

 

Continental and UAL later agreed to link up in a strategic global alliance. The most recent round of talks were completed in about three weeks, a source familiar with discussions said.

 

Some industry experts believe that one airline merger could spur others and that several different combinations of major airlines are possible. The last major airline merger was in 2008 between Delta Air Lines and Northwest Airlines to form what is currently the world's largest airline.

 

UAL and US Airways also were in merger talks this year, but US Airways pulled out last month. US Airways CEO Doug Parker, a vocal proponent of airline consolidation, has said that any mergers are good for the industry because they pull capacity out of the bloated system.

 

"I think it's going to force other carriers to raise the question (of consolidation)," said Hunter Keay, airline analyst at Stifel Nicolaus. He said a merger between US Airways and American Airlines parent AMR makes sense from a "network perspective."

 

"It certainly raises the question," Keay said. "I don't see it happening in the short-term."

 

(Reuters)

 

-------------------------------------------------------------------------------------------

 

Timeline - Recent Airline Mergers

 

May 3, 2010

 

United Airlines and Continental Airlines plan on Monday to announce their proposal to merge. The following is a snapshot of other big airline mergers that have been completed over the past decade or are in the pipeline.

 

2010 - British Airways and Spanish carrier Iberia signed a merger agreement on April 8, sealing a long-awaited deal to create the world's third largest airline by revenue.

 

2009 - Germany's Lufthansa agreed to a number of acquisitions, including Austrian Airlines and bmi.

 

2008 Delta Air Lines and Northwest Airlines combine under the Delta name. The new company is considered a model for how to structure a deal and operate in an increasingly global market. Delta has narrowed losses and expects to report a profit in the current quarter.

 

2005 - Bankrupt US Airways is rescued by smaller America West Airlines, but the new company takes the US Airways name. The merged entity is stronger and its young management team is considered sharp. But integrating pilot unions has been most troublesome. United and US Airways talked twice over the past two years, but never struck a deal.

 

2004 - Air France acquired KLM Royal Dutch Airlines and became Air France KLM. The airlines still operate separately.

 

2001 - American Airlines acquired financially troubled TWA, an iconic US airline whose roots dated to 1930.

 

2001 - Air Canada acquired the country's No. 2 carrier, Canadian Airlines, which was close to bankruptcy.

 

2001 - Japan Airlines and Japan Air System merge to eventually form Japan Airlines Corporation.

 

(Reuters)

 

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-------------------------------------------------------------------------------------------

 

United, Continental To Form Largest Airline

 

May 3, 2010

 

United Airlines parent UAL said it will buy Continental Airlines for about USD$3.17 billion in stock, forming the world's largest carrier and further shrinks the US airline industry.

 

Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own. Based on United's stock price of USD$21.60 on Friday afternoon, and Continental's 139.6 million outstanding shares as of April 21, United would pay USD$3.17 billion for Continental, or USD$22.68 a share.

 

That represents a 1.5 percent premium over Friday's closing price.

 

The name of the combined airline will be United Airlines. The name of the holding company will be United Continental Holdings Inc.

 

Continental chief executive Jeff Smisek will run the Chicago-based combined airline with over USD$29 billion in annual revenue, while UAL chief executive Glenn Tilton will be non-executive chairman. Smisek, 55, will become executive chairman when Tilton steps aside, expected two years after the merger closes.

 

Based on current shares outstanding, the combined company would have 314.5 million shares, and UAL shareholders will own roughly 55 percent of it.

 

United's Tilton said in a message to employees on Monday that "some reductions in the salaried and management work force" for both companies would result.

 

If approved by regulators and shareholders, the deal is expected to produce USD$1 billion to USD$1.2 billion in annual revenue and cost benefits for the combined company by 2013. One-time costs of about USD$1.2 billion are expected over a three-year period.

 

The companies expect to complete the transaction in the fourth quarter of 2010.

 

The deal marks the first major US airline merger since Delta Air Lines' 2008 purchase of Northwest, and caps months of speculation that more industry consolidation was ahead.

 

United and Continental said their merger would expand service with minimal domestic and no international route overlap. The combined company will have 10 hubs, with Houston as its largest, and a work force of nearly 90,000.

 

The International Association of Machinists and Aerospace Workers said in a statement that it was concerned about the effect of the merger on benefits and job security of its more than 26,000 members at both carriers.

 

(Reuters)

 

-------------------------------------------------------------------------------------------

Continental, United Plane Orders Worth USD$22 Bln

 

May 3, 2010

The planned merger of two US carriers to create the world's largest airline will combine Continental's Boeing-dominated fleet with the mixed fleet and order book of United.

 

The move was expected to trigger a scramble between Boeing and Airbus, as well as engine makers, over the fate of almost USD$22 billion in outstanding plane orders and control of any future fleet replacement decisions.

 

United recently split a USD$10 billion wide-body order between Airbus and Boeing, and had been expected to return to the market later this year to renew its single-aisle fleet. The merger came weeks after United finalised the Airbus part of the wide-body deal, which is an order for 25 A350s provisionally announced in December.

 

Following are the jets on order and yet to be delivered for each airline, valued at latest published list prices:

 

 

CONTINENTAL

-----------

 

AIRBUS

None

 

 

BOEING

22 737-700 single-aisle $1,408m

13 737-800 single-aisle $998m

6 737-900ER single-aisle $489m

3 777-200ER wide-body $437m

11 787-8 wide-body $1,829m

14 787-9 wide-body $2,797m

 

Total Boeing $7,958m

 

Total Airbus + Boeing $7,958m

 

 

UNITED

------

 

AIRBUS

23 A319 single-aisle $1,711m

19 A320 single-aisle $1,547m

25 A350-900 wide-body $6,363m

 

Total Airbus $9,621m

 

 

BOEING

25 787-8 wide-body $4,156m

 

Total Boeing $4,156m

 

Total Airbus + Boeing $13,777m

 

 

MERGED AIRLINE

--------------

 

Airbus $9,621m

Boeing $12,114m

 

Airbus + Boeing $21,735m

 

(Reuters)

[Denny Yen 0]

Fantasy livery...

Edited May 4, 2010 by Denny Yen