Southwest Airlines 1Q profit falls, but higher fares help it beat Wall Street expectations (WashingtonPost)
Higher fares helped Southwest Airlines Co. (NYSE:LUV) make more money than Wall Street expected in the first quarter, but the company said Thursday that automatic federal spending cuts could hurt revenue in April. The average passenger fare on Southwest is now more than $150 one-way, 4 percent higher than a year ago. The airline also gave details on a new policy for no-shows, and it outlined changes for its operation in Atlanta, where it competes with Delta Air Lines, Inc. (NYSE:DAL).
Southwest Airlines to Implement ‘No Show’ Policy Next Month (TravelersToday)
Southwest Airlines Co. (NYSE:LUV) announced Thursday that it’s changing it’s policy and will now begin a new “no show” policy where fliers will forfeit their fares if they fail to show up for a flight. The policy is being implemented next month. The airline said it’s changing the policy to avoid having planes stuck taking off with empty seats at the last minute. Passengers who have booked the Wanna Get Away or DING fares, which are the least expensive fares, on or after May 10, for trips scheduled for on or after Sept. 13, will be operating under the “no show” policy. The airline will not just re-book or cancel their flight. The rest of their itinerary will also be canceled, and passengers will have to buy a new ticket.
Southwest to Slash 300 AirTran Jobs in Atlanta (AtlantaDailyWorld)
Southwest will reduce its AirTran Airways workforce at Hartsfield-Jackson International Airport by nearly 300 jobs as the airline restructures its operation in Atlanta. Southwest Airlines Co. (NYSE:LUV), which bought AirTran in 2011, began flights out of Atlanta last year and said it will eliminate 300 ground worker positions that will consist of baggage handlers, ticket counter and gate agents. Southwest said it has openings for the displaced workers in other cities where it operates, only if they are willing to relocate. If they choose not to relocate they will receive severance packages and leave the company.
US Airways Adds More Perks to International Flights (TravelAgentCentral)
US Airways Group, Inc. (NYSE:LCC) (www.usairways.com) is introducing new in-flight perks in its Economy and Envoy classes of service on international flights. Starting May 1, passengers traveling in the Economy cabin will receive complimentary headsets and complimentary wine with their main meal on flights to and from Europe, the Middle East and South America.
US Airways V. McCutchen Spurs Revision Of ERISA Plans (Law360)
Recently, the U.S. Supreme Court held in U.S. Airways v. McCutchen that in a Employee Retirement Income Security Act Section 502(a)(3) action for equitable relief to enforce an ERISA plan’s terms, the terms govern the specific right to relief, while equitable doctrines provide default legal rules. On one hand, the plan’s terms cannot be overridden by equitable doctrines of unjust enrichment that are at odds with those terms. On the other, in construing those terms, courts may use these doctrines to “fill in the gap” left…
US Airways CEO hoping for furlough resolution soon (ChicagoTribune)
US Airways Group, Inc. (NYSE:LCC) Chairman and Chief Executive Doug Parker said he was hopeful government leaders would come to a solution that would halt the travel disruptions in wake of U.S. staff cuts of air traffic controllers. “It’s untenable as it is,” Parker said in an interview on Wednesday in Scottsdale, Arizona, where US Airways Group, Inc. (NYSE:LCC) held briefings with media. “We can’t do this for long without having major disruption to the flying public. And nobody wants that. We’re highly hopeful something will get resolved soon.”
