The Last Frontier is Delta’s Next Frontier
Delta Air Lines is expanding its offerings to the 49th state just in time for summer as it announces four new routes to Alaska that will launch this spring and several other increased frequencies on currently-flown routes.
On May 5, Delta will begin daily service from Salt Lake City to Fairbanks (FAI). Then on May 28 it will begin weekend-only service from Detroit, Los Angeles, and New York/JFK to Anchorage. On SLC to FAI and DTW to ANC, Delta will be the sole carrier on the route. It will face competition on the other two, as JFK-ANC is theoretically served by one of the several reincarnations of Eastern Airlines, while both Alaska and United also operate LAX to ANC.
Delta’s increased frequencies in the state will add flights from both Anchorage and Fairbanks.
- SEA to ANC increases to 7x-daily on June 19
- MSP to ANC increases to 3x-daily on May 5
- SLC to ANC will become year-round on May 5 and adds a 2nd daily during the summer.
- SEA to FAI increases to 3x-daily on June 19
- MSP to FAI doubles to 2x-daily on June 19
These additions for Delta in Alaska are no-doubt in response to the shifting demand for travel it’s expecting this summer, especially to places that lend themselves to outdoor activities. But at the same time it gives Delta a chance to nudge its friend-turned-foe in Seattle, Alaska Airlines, by gaining a stronger foothold in its backyard.
AA PAAid RAAises to MAAnagement Last Month
American Airlines found yet another way to follow in Delta’s footsteps, this time as the airline reportedly paid out management raises last month as it was also sending WARN notices to 13,000 employees. View From the Wing, which first reported the news of Delta’s management bonus payments last month, is also reporting that American provided manager-level employees and above raises in February despite the tenuous status of its the rank and file employees.
In response, AA stated the payments weren’t necessarily raises but were restoring salaries to pre-pandemic levels from 2019. It says there was no change in compensation for the managers except to see their salaries return to pre-pandemic levels, something that the front line employees would have been eager to see as well. AA first tried to offer the raise in 500-mile upgrade certificates and with artifacts from the soon-to-be destroyed gate 35X at National Airport in Washington but ultimately offered cash instead.
With the CARES Act 3.0 being signed into law by President Biden this week, the burden to pay for most of the pay hikes will fall on taxpayers. Management salary boosts are permitted to be covered by CARES Act footage provided they don’t exceed limits placed by the government which these raises do not. The good news, thanks to the CARES Act, is that American won’t be needing to lay anyone off this time around as all employees are safe through the fall when demand for air travel has hopefully, actually, rebounded to something resembling pre-pandemic levels.
JetBlue Returns to Group Boarding
JetBlue Airways is rolling back one of the policies it introduced at the onset of the pandemic last year as it returns to boarding its aircraft by group. When the pandemic struck, most airlines abandoned their group or zone boarding process to board the aircraft from back to front. The idea was that back-to-front boarding would discourage close contact and prevent spread of the virus.
It’s likely that back-to-front boarding was just window dressing, but it was window dressing at a time that many felt better because of it. With the noticeably light loads airlines experienced last spring, it really didn’t matter what the boarding process was, as overhead space was rarely at a premium. Neither were seats.
But with loads slowly returning to normal, JetBlue consulted with medical professionals, the DOT, and the guy who makes the donuts in those old Dunkin commercials and believes that reverting back the new (old) system will not put anyone at any further risk. The airline will continue to offer early boarding to those who need extra time, followed by priority boarding for elite members in its Mosaic loyalty program and all passengers with a cup of Dunkin Donuts coffee in their hand.
Czech Mate: Czech Bankruptcy Approved
The Municipal Court of Prague declared that despite its two-letter IATA code, CSA Czech Airlines is not OK. In fact, it is bankrupt, so the court approved the airline’s request it made when coming to the courthouse and turning its empty pockets inside-out. The court named administrators to oversee the airline’s debts which currently are in the neighborhood of $82 million.
The airline’s creditors must submit claims to the administrators prior to a creditor meeting this June to claim what’s theirs. In the meantime, the airline is awaiting a decision from the court as to whether it will continue flying or will be forced to sell off its assets.
Czech currently has 266 creditors and 230,000 outstanding tickets to customers for future travel. Suppliers claim about $37 million of the airline’s outstanding debt while passengers contain a combined $46 million worth of future travel.
The airline pointed out to the bankruptcy court that it did not take any government aid through the pandemic which could have changed it fate, passive-aggressively asking for a stay of execution from the Czech government. At this point it has no reorganization plan. If it is permitted to continue flying, it is considering eliminating all international routes except Amsterdam, Kiev, Moscow, and Paris.
Boeing Completes Another MAX Sale
Boeing and the inaccurately-named private investment firm 777 Partners announced an agreement for the sale of another 24 737 MAX aircraft with the option for the firm to purchase 60 more.
777 Partners has a wide-ranging portfolio in the aviation industry including investing in all sorts of aviation-related businesses from operating carriers to technology solutions, like the little voice that tells you what time zone you’re in at the airport. The firm leases aircraft to airlines, primarily LCCs, throughout the world. The addition of these MAX aircraft will give it new opportunities to grow its leasing business at a time when MAX aircraft can be acquired on the cheap.
The company has no intention of changing its name to 737-8 Partners despite the acquisition of the new aircraft for its portfolio. Boeing tried to slip some more expensive 777s into the deal, hoping the firm wouldn’t notice due to its name, but it did notice and the larger aircraft were removed from the transaction.
Airline Potpourri
- Delta has named a building at its headquarters after former Atlanta Mayor and United States Ambassador to the United Nations Andrew Young.
- Etihad is pushing back delivery of its A350 aircraft until 2023.
- Fiji Airways signed a US$65 million Liquidity Support Facility with the Asian Development Bank (ADB) despite not actually being in an Asian country.
- JetBlue is adding a nonstop from Miami to Hartford beginning June 24. In the release, JetBlue mentions its role as Connecticut’s largest airline, which apparently is a good thing.
- SKY express is adding daily service to Rhodes (RHO) from its Athens hub, beginning March 15.
- Spirit is adding a 4x-weekly nonstop between two cities that were clamoring for a flight between them, Indianapolis and Pensacola. The new service will begin on June 11. Indy’s air service development director has quit, saying this is the pinnacle of her career, so she wants to go out on top.
- Viva Air took delivery of a new A320neo on Thursday.
- Wizz Air is adding four new aircraft to its base in Tirana (TIA). It will be adding new routes from the airport to Malmö (MMX), Stockholm/Skavsta (NYA), Pescara (PSR), Genoa (GOA), and Rome/Ciampino (CIA).
Andrew’s Moment of Levity
A sign in the window reads CURED MEATS. Inside, a salami takes his first steps since the accident. A prosciutto learns to forgive.