March 1, 2021

Delta Pays Bonuses to Management Staff

Despite no profit-sharing payout for its frontline staff this year, Delta Air Lines is paying bonuses to its managers, directors, and senior vice presidents. The management bonuses range from thousands of dollars to hundreds of thousands of dollars. Delta said that after a pay review of its staff, it found that those below the executive level were disproportionately impacted because of the pandemic, and it chose to make a one-time adjustment payment to those employees. No front line employees nor lower level management and administrative staff were included.

Delta cut employees hours and pay by as much as 50% last year as it navigated through the pandemic. Full pay was restored this year, along with this one-time payment to restore some of the lost 2020 income. In addition to the cash layout, employees were offered one-years’ worth of Biscoff cookies and Woodford Reserve bourbon.

Delta received $5.6 billion in federal funding last year courtesy of the CARES Act and is expecting another $2.9 billion this quarter when the CARES Act 3.0 goes into effect. Delta’s pilots’ union criticized the move, saying it went against the spirit of the CARES Act. Delta’s flight attendants are not unionized, but those looking to unionize the workgroup were most likely dancing in the streets to celebrate the dramatic improvement of their chances after hearing about management’s bonus plan.


United Agrees to Pay $49 Million to Resolve Mail Fraud Case

United Airlines has agreed to a non-prosecution agreement (NPA) with the USPS to settle both criminal and civil charges relating to alleged fraud on postal service contracts with regards to the transportation of international mail.

The airline agreed to pay just over $17 million in criminal penalties to resolve an investigation into a fraud scheme concocted by former employees of the airline’s cargo division. The valued rogue employees held up the delivery of mail that UA was contracted to ship to other countries on behalf of the USPS. When asked about the penalty paid by United, USPS spokesman Newman declined to comment. According to the Acting Assistant Attorney General assigned to the case, the airline defrauded the government by providing falsified delivery information and accepting millions in payments for work that was not…delivered.

The remaining $32 million was paid in a separate transaction after United settled with the Civil Division’s Commercial Litigation Branch. This came after the airline admitted it concealed problems related to the scanning of the mail that would have led to financial penalties. Certain employees at United worked to hide the information from the USPS knowing the data was fabricated. And anyone who’s worked with the post office knows that when you control the mail, you control…information.

Civil rights groups geared up to protest that the cruel, gender-based crime of “male fraud” was still in existence. Once they found out it was about postal mail problems from years ago, they quickly backed down.


Rex Bites Back at Qantas, the Government

Good boy Rex is angry at Qantas for not playing nice and is finally going to do something, gosh darn it. According to Rex, Qantas is using taxpayer funds to subsidize losing regional routes that Qantas is flying for the sole purpose of flexing its muscles to force Rex off the routes. Even worse, the government doesn’t plan to do anything about it.

Rex’s board has decided that not only will it not allow Qantas to dictate its route network, but its high time that Rex bite back.  The regional carrier will continue to serve the eight routes that Qantas shoved its way into, regardless of what it means to the bottom line just to stick it to Qantas. But to help cover its losses, Rex is being forced to cut service on five other routes, four from Sydney and one from Adelaide. Service from Sydney to Bathurst (BHS), Cooma (OOM), Lismore (LSY), and Grafton (GFN) will halt at the end of March along with Adelaide to Kangaroo Island (KGC). Our sources in Australia tell us these are all actually places with airports and everything.

In addition, proving what’s good for the goose is good for the gander, Rex is going to give Qantas a taste of its own medicine showing that turnabout is fair play. The regional carrier is going to begin service on two routes this April that — since Virgin Australia pulled out — have been flown only by Qantas. Those two are Sydney to both Coffs Harbour (CFS) and Port Macquarie (PQQ) with four other Qantas-dominated routes under strong consideration to be added as well.


Three U.S. Airports Receive Airport Improvement Grants

Chicago/O’Hare, Dallas/Ft Worth, and Fort Lauderdale were selected as the first three airports to receive Airport Improvement Grants in 2021. The trio will divide $76 million amongst themselves, a figure which represents the first of $3.2 billion the DOT will allot to airports this year.

The Airport Improvement Grant allows for the planning and development of public-use airports. Private airports that are identified by the FAA as a reliever airport or have scheduled service and at least 25,000 enplanements can still qualify for the cash. The only exception is if the airport name rhymes with “HaWardia,” as all airports that fall under that distinction are considered beyond help.

O’Hare’s $25 million will be used to pay for construction of Runway 9C/27C which opened late last year. DFW will receive $31 million to pay for an improved taxiway system that its hoping to complete by 2025. Lastly, FLL will receive $20 million from the federal government. It plans to use the funding to pay for a huge maskless keg party… along with an extension to Runway 10R/28L, a project which was first completed in 2015.


Qantas Updates International Baggage Allowances

When Qantas resumes international flying this fall, it will have new baggage allowances on most flights, with a mix of winners and losers depending on the flight, class of service, and the level of authenticity in the passenger’s Australian accent.

Oneworld Sapphire, Emerald, and non-elite members flying business class will lose one free checked bag, with Sapphire and non-elite dropping from three to two and Emerald members dropping from four to three. Premium Economy travelers are the big winners in this bizarre game show, with additional 9 kg in weight being added to allowances on most itineraries.

Meanwhile, in an effort to confuse anyone who wasn’t yet confused, economy travelers will receive one less free bag down from two to one, but will be able to pack more in the bag thanks to a a higher weight limit.

Qantas plans an aggressive marketing campaign to educate travelers on the new baggage requirements, with the expectation that once most travelers are familiar with the standards it will overhaul the system once again.


Airline Potpourri

  • Air Côte d’Ivoire has taken delivery of its first A320neo aircraft.
  • Austrian Airlines is increasing North American flying as part of its summer schedule. The airline will resume flightS to both Montreal and New York/JFK with 3x weekly service this May.
  • China Eastern Airlines will be the launch customer for the C919 jetliner from Chinese manufacturer COMAC.
  • LATAM plans to convert up to eight of its 767-300ER passenger aircraft into freighters.
  • Porter has again delayed its resumption of flights, this time to May 19.
  • RwandAir the flag carrier of Luxembourg Rwanda, is the first African airline to trial the IATA travel pass. The pass is designed to help passengers verify their compliance with virus requirements for any countries they are traveling to or transiting through.
  • Silk Way, an Australian cargo airline that carries much more than just silk, is shifting much of its focus to transporting the COVID vaccine and other vital supplies related to fighting the pandemic.
  • United has added 25 planes to its current order of 737 MAX aircraft.
  • WestJet has reached a tentative agreement on a collective bargaining agreement with its cabin crew union.

Andrew’s Moment of Levity

I was just reminiscing about the herb garden we had when I was growing up.

Good thymes.