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AmericanAirlines
I Don't Want to Fly the Uninspected Skies
By Adam Hanft - Politics DailyIt's been a rough week for the airline industry. And an anxiety-provoking one for all those who fly. On Wednesday, the Federal Aviation Administration slapped American Eagle (owned by the parent of American Airlines) with a $2.9 million penalty for allegedly not maintaining landing gear doors on four regional jets. More than 1,100 flights were involved. A day later, the Department of Transportation jumped in with its own report. The Chicago Tribune wrote that "Federal inspectors failed to detect a troubling decline in the maintenance and upkeep of American Airlines aircraft in recent ...
Tighter Security, Terrorism Worries Could Cost Airlines Big
By David Sessions - Politics DailyIncreased security and worries about terrorism could result in major revenue losses for U.S. airlines, even if just 1 percent of their customers decide not to fly, USA Today reports. "A 1 percent drop in demand would be equal to a revenue hit of more than $1 billion," says analyst Vaughn Cordle at AirlineForecasts. "And because airlines are so highly leveraged, nearly all of that would come off their profit bottom lines." It would only take losing as few as two or three passengers per flight to create a 1 percent drop in revenue, showing how fragile the profit-and-loss picture is for an ...
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