Boeing's (NYSE: BA ) 787 Dreamliner just returned to the skies after a four-month grounding, but already there's trouble. The director of the Airline Pilots' Association of Japan, Toshikazu Nagasawa, said that pilots weren't satisfied with the changes Boeing made to it's lithium-ion battery and are concerned that they won't receive appropriate in-flight warnings if there's an issue. Some scientists and battery experts are also expressing concern about the safety of Boeing's battery.
Officials at All Nippon Airways and Japan Airlines said they're satisfied with Boeing's changes and have resumed flights, but investors may have cause for concern knowing that that the pilots -- the people whose lives depend on the safety of Boeing's battery -- aren't satisfied. Here's what you need to know.�
Source: H. Michael Miley, Wikimedia Commons.�
Are the issues in the past?
In March, Japanese pilots raised 30 safety concerns about the Dreamliner. One of their major concerns was that they didn't think Boeing had provided enough proof that the 787 would be safe to fly if the batteries failed. They also expressed concern that the warning indicator for a battery malfunction didn't indicate the severity of the problem.
Hot Gold Companies To Buy Right Now: US Airways Group Inc (LCC)
US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company�� airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.
The Company had approximately 53 million passengers boarding its mainline flights in 2011. During 2011, the Company�� mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company�� prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.
In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pursuant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers��planes, approximately 44% of whom connected to or from its mainline flights.
The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.
Advisors' Opinion:- [By Travis Hoium]
The merger of US Airways (NYSE: LCC ) and American Airlines took another step closer to reality, and airline stocks across the industry cheered the news. But there's another side to the creation of another giant airline. Fewer airlines, particularly national airlines, means lower supply, and that means higher prices for you and me. So while investors are celebrating today, those looking to plan a vacation will pay the price.
5 Best Airline Stocks To Buy For 2014: Indonesia Transport & Infrastructure Tbk PT (IATA)
PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:- [By Shereen El Gazzar]
The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.
5 Best Airline Stocks To Buy For 2014: AMR Corp (AAMRQ.PK)
AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.
American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.
To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines , British Airways, Cape Air, Cathay Pacific, China Eastern ! A! irlines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.
American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products an d services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.
The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.
Advisors' Opinion:- [By Insider Monkey]
Last but not the least is US Airways Group (LCC), in which Y/Cap slightly increased its position, now owning around $7.9 million. U.S. Airways is currently on the minds of many investors, mainly due to its plans to merge with American Airlines parent AMR Corp (AAMRQ.PK). While European regulators approved the merger, the U.S. Department of Justice put a spoke in the wheel, and is trying to block the move. The companies filed a motion to the court to set the trial date for November 12. Amid these actions, U.S. Airways and American Airlines prolonged the outside date at which one of the companies can terminate the proposed merger.
5 Best Airline Stocks To Buy For 2014: AMR Corp (AAMRQ)
AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.
American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.
To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.
American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.
The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.
Advisors' Opinion:- [By Ben Levisohn]
Airlines have performed better this week, but how could they not following last week’s devastation after the Justice Department said it would try to block the merger between AMR Corp. (AAMRQ) and US Airways (LCC).
- [By Adam Levine-Weinberg]
A competitive threat
For the most part, Spirit has been successful by flying under the radar of the major carriers. It is still a very small carrier compared to the major airlines: AMR (NASDAQOTH: AAMRQ ) , Delta Air Lines (NYSE: DAL ) , Southwest Airlines (NYSE: LUV ) , and United Continental (NYSE: UAL ) . Moreover, it generally appeals to a different type of customer than those carriers: one who is extremely price-sensitive. - [By Adam Levine-Weinberg]
United Continental (NYSE: UAL ) and American Airlines (NASDAQOTH: AAMRQ ) could be affected the most. The two carriers were already at the bottom of last year's Airline Quality Rating survey. Furthermore, both airlines have a strategy of building hubs in the top business markets. These cities ��such as New York, Chicago, and Los Angeles ��tend to have the most crowded airspace. As a result, these carriers are likely to have multiple hubs hit with significant delays on peak travel days, which could snarl operations across their systems. JetBlue Airways (NASDAQ: JBLU ) could also see a disproportionate effect because its main base of operations is at New York's busy JFK Airport.
No comments:
Post a Comment