This Week in Airlines
by Holly Hegeman (MF Wings)

Dallas, TX (March 23, 1997) --Foolish readers this week saw the markets sitting back, doing their best version of the Wall Street Interest Rate Tango (uncannily similar to doing the "Timewarp" from the Rocky Horror Picture Show) in anticipation of the Federal Reserve Board's meeting this next week. As a result, the markets were skittish and not quite sure in which direction to place their toes.

While Warren Buffett was talking about how he thought the market was probably "overheated", (put your right foot out) other observers pointed out that the historically high average P/E ratios alone were no cause for alarm, and that economic indicators did not lend themselves to the Fed raising rates (put your left foot out). Then again, with the continued record level of money flowing into mutual funds, what else is the market to do when there is this tremendous flow of funds inward? That's right--go up. (Raise hands into the air and SHOUT!)

The Wall Street Interest Rate Tango was a factor in this past week's performance of the Motley Flock. As all good students of MF Wings' should know by now, any threat of higher interest rates usually has a marked effect on this sector. Why? Because airlines are the most heavily leveraged sector on the planet. Higher interest rates affect these flyers quite dramatically--just as a rise in fuel prices.

Consequently, of the 36 airline stocks we track, the majority of stocks were either down or flat on the week. Anchoring the list were two high flyers with double digit gains and two goats with double-digit losses.

AIRTRAN <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AAIR)") else Response.Write("(Nasdaq: AAIR)") end if %> the airline subsidiary of Airways Corporation, was the Motley High Flyer of the week, posting an 18% gain on the week, closing at $5 5/8. AirTran, which you may not be too familiar with but just might want to be, provides low-fare 737 service from its base in Orlando to 24 locations in the eastern United States. AirWays Corporation (the parent of AirTran) had its origin as a wholly owned subsidiary of the AirTran Corporation, whose principal subsidiary was Mesaba Aviation, which began scheduled service in 1973. In September 1995, AirWays Corporation was spun-off from AirTran Corporation, which subsequently changed its name to Mesaba Holdings. Got that? (I know--it is just a tad confusing--let's just say that the company that is now known as Mesaba and the company that is now known as AirTran were once brothers.)

The stock was hammered this last year, as increased maintenance and operating expenses took their toll, in addition to lowered passenger levels the third and fourth quarters. (Another low-fare carrier that was stung by the after-effects of the ValuJet crash.)

However, since the end of the year, this one has been one little volatile mover. The stock hit its 52-week low the end of December, and has seen nothing but blue sky ever since then. The stock is the Motley High Flyer for the year, as it has now returned a cool 96% since the beginning of the year.

Trading in AirTran stock was especially heavy this past Tuesday and Wednesday prior to the announcement on Thursday that Lawrence H. Brinker had been appointed to the newly-created position of general counsel for AirTran. As General Counsel, Brinker will serve as a corporate legal advisor including governmental relations.

For the past year, Brinker has worked as an attorney for Patton Boggs, L.L.P. based in Washington, D.C. Prior to joining Patton Boggs, Brinker started his own practice in 1991, where he represented clients throughout the world in aviation litigation, regulation, transactional, and labor management related matters.

As can be the case with these lower-priced issues, any such announcement can cause the stock to jump, and jump it did--right through a high hoop.

TWA <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: TWA)") else Response.Write("(AMEX: TWA)") end if %> was next on the list this week. The beleaguered carrier just had one heck of a week--ending the week up 11% to close at $8, after they finally announced earnings that were far, far worse than expected. Now, I can hear you asking--why would the stock go UP, if earnings were so awful? Well, as an example of just how daffy this sector is--let me answer you by saying this. Turns out the only sound you heard associated this week from TWA was not the thud of the stock plummeting--no, it was the TWA Board of Directors singing desperately "Someday my Prince will come..." And, by golly, he just did!

On the same day the carrier announced its earnings, TWA also announced that Saudi Arabia's Prince Al-Waleed Bin Talal Bin Abdulaziz Al-Saud had called TWA Chairman Gerald Gitner and said he had purchased about five percent, or 2,088,000 shares, of the company's common stock.The prince also said he is hopeful that management will succeed in its effort of bringing TWA to long-term profitability. [MF Wings' note: Aren't we ALL?]

This man is no lightweight--he has built a multi-billion dollar business empire with interests in construction, real estate, banking, travel, broadcast media, supermarkets and other sectors. His investments include shares in Citicorp and Euro Disney.

So, as a result, the stock began to trade like crazy this past week. Volume was in some cases three to four times normal.

Go figure. The reasoning? The stock has been hammered, the Wall Street playmakers think this could signal some kind of major change, so--all of a sudden, the stock was one hot potato.

But, in all this frenetic trading, let us not forget the earnings. And, let us not forget the fact that TWA has a cash problem on its hands.

TWA posted a fourth-quarter net loss of $258.6 million, or $5.56 a share, after $88.3 million in charges. Before the charges, TWA's fourth-quarter loss totaled $170.3 million.

Although the airline didn't give a per-share figures for the loss from operations, three analysts polled by Zacks Investment Research provided a mean estimate for a loss of $2.18 a share.

In the year-ago period, TWA reported a net loss of $27.8 million, or $0.84 a share, after a $3.5 million gain.

Revenue in the latest quarter slipped to $803.3 million, from $804.6 million in the year-ago period.

For the full year, TWA's net loss widened to $284.8 million, or $7.27 a share, on $95.7 million in charges, compared with a 1995 net loss of $227.5 million after a charge and a gain that nearly offset each other. The company said year-to-year comparisons of per-share net aren't meaningful due to its 1995 restructuring.

The airline's load factor, or percentage of seats filled, slipped to 62.8% for the fourth quarter, compared with 63.3% a year ago. For the year, load factor inched up to 66.8% from 65.7% in 1995.

In 1996, the company flew 27.1 billion revenue passenger miles, an 8.9% increase from 24.9 billion flown in 1995.

TWA said its decision to expand its route system by flying used aircraft led to reliability problems that increased maintenance and crew expense. In turn, the practice also resulted in revenue losses from excessive flight cancellations and inconvenienced customers. Steep increases in fuel prices and unexpectedly high maintenance expenses compounded this problem, the company said. [MF Wings' translation: POOR management.]

Here are some other tidbits to chew on:

Aircraft fuel and oil expense rose 27.6% in 1996 to $585.2 million.

Maintenance materials and repair expenses rose 41% to $208.2 million for the year.

TWA's fourth quarter loss QUADRUPLED last year's deficit.

Revenue per seat-mile dropped 7.6% year over year for the fourth quarter as compared to a 2.8% gain for the industry.

TWA's cost per seat-mile (excluding charges) for the fourth quarter increased 11% year over year, more than ANY other U.S. major carrier.

TWA had $181.6 million in cash at the end of 1996 compared with $304.3 million in cash at the end of 1995. It is considered rule of thumb that airlines generally need about $200 million in cash to survive the first quarter, during which airlines typically lose money.

This week Standard & Poor's affirmed its CCC corporate credit rating and CC preferred stock rating of TWA. However, the ratings outlook has been revised to negative from stable.

S&P based its outlook change on TWA's operational difficulties, reflected in the worse-than-expected fourth quarter 1996 net results. As they pointed out, these contrast dramatically with the strong results reported by other major U.S. airlines in what is considered to be a healthy revenue environment.

S&P also noted that TWA's cash balance of $182 million at Dec. 31 is small for an airline of its size, given its lack of credit lines and limited unencumbered assets. However, S&P did feel that it appeared to be sufficient to carry the company through the remainder of the seasonally weak winter period.

While management seems to be attempting to restructure the airline, and the initiatives should, over time, bolster results -- S&P feels that TWA's liquidity and financial condition leave little room for error or adverse developments.

Ratings could be lowered further if TWA suffers further erosion in earnings and cash flow performance. Results are expected to improve in the second and third quarter, but the company must build up cash to weather the winter of 1997-1998.

Stephen Klei of Standard and Poors added, "They are making it appear that these problems [maintenance, labor, and fuel] are temporary. The question is whether they are going to continue to lose money to a life-threatening degree or muddle through until they can right themselves."

Goldman Sachs also dramatically revised its 1997 earnings estimates for TWA this past week. The firm now estimates a loss of $4.50 from $1.45 and a 1998 estimated loss to $3.25 from $0.50.

Bottom line? The carrier is suffering from poor yields, an aging fleet, poor management decisions and cash problems.

Watch for TWA to begin to look for ways to generate much-needed cash in the near future.

Year to date, TWA is up 22%.

MESA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MESA)") else Response.Write("(Nasdaq: MESA)") end if %> gained 6% on the week, to close at $6 7/8. Mesa is currently trading at around its 52-week low, with the high of $13 7/8 having been hit last April. Mesa Air Group is the largest independently owned regional carrier in the world, currently comprised of six different airline operations serving 166 cities in 30 states, plus the District of Columbia, with a fleet of 174 aircraft.

The company has been in the midst of a major corporate restructuring of late. In addition the carrier has been making the transition to becoming a full FAR 121 carrier. Mesa has now completed the conversion to the new requirements, and ALL flights that it operates now comply with the higher standards. The new regulations cover pilot training, pilot rest requirements, safety equipment, dispatching procedures and every other area of airline and aircraft operations.

Mesa also has a new Web site for interested Foolish readers. It can be found at www.mesa-air.com.

Year to date, Mesa is up 2%.

ATLAS AIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ATLS)") else Response.Write("(Nasdaq: ATLS)") end if %> was also up this week, posting a 5% gain to close at $24 3/4. The carrier announced this week that it has extended two current contracts with China Airlines. The first existing 5-year contract has been extended from April 1998 to October 2001 and a second existing 3-year contract has been extended from March 1998 to February 2001 with an option to extend to 2003. The value of the combined contracts to Atlas is approximately $150 million. China Airlines was Atlas Air's first customer, and MF Wings' sees this extension of the China Air contracts as an indication that Atlas is taking good care of its customers.

PAN AM <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: PAA)") else Response.Write("(AMEX: PAA)") end if %> had a volatile week. The carrier first continued it surge of late, with two VERY heavy trading days, then it was confirmed that the carrier had struck a deal to purchase Carnival Air Lines. The stock promptly dropped--then regained a bit--to end the week at $10 1/8, down 6% on the week.

This deal will make Carnival Air owner Micky Arison the largest shareholder of Pan Am. Pan Am said Arison, a Miami billionaire who is Carnival's primary shareholder, will invest $30 million for about 42% of Pan Am's outstanding stock, or about 9.5 million common shares. The airline stated it is planning a private placement of up to $30 million of a new series of convertible preferred stock. This noncontingent financing, when combined with Arison's investment, will provide the new company with some $60 million in additional liquidity.

The transaction has been approved by both companies' boards, and is only subject to the approval of Pan Am's shareholders and the appropriate regulatory agencies.

This, Foolish readers, explains the runup in Pan Am stock of late that we had been tracking.

Year to date, Pan Am is up 34%.

UPGRADES, DOWNGRADES-- THE ANALYSTS SPEAK

United Airlines NYSE: UAL)

Gruntal & Co. announced this week it is downgrading UAL Corp. to outperform speculative from outperform.

Gruntal noted that UAL Corp. shares have risen 43% in less than five months.

Atlantic Coast Airlines <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ACAI)") else Response.Write("(Nasdaq: ACAI)") end if %>

Morgan Stanley announced this week it has initiated coverage of Atlantic Coast Airlines with an outperform rating.

USAirways <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: U)") else Response.Write("(NYSE: U)") end if %>

SBC Warburg Inc. upgraded its rating on shares of US Airways to add from hold this week.

The firm stated US Airways should have near-term earnings growth due to sustained traffic growth, an absence of negative climatic influences, cost control and development of the Philadelphia hub.

SBC Warburg raised its earnings estimates to $4.27 a share, from $3.16 for 1997.

SBC raised its target price to $30 from $25. US Airways shares currently trade at around $24.75.

Continental Airlines

Gruntal has reiterated its speculative outperform rating on Continental Airlines.

The firm raised 1997 full-tax earnings estimate to $4.50 per share from $3.50, citing "excellent" February operating performance, despite weak bookings in Asia as a result of the dollar's strength versus the yen.

Steve Lewins and Clara Squirewell, Gruntal analysts, recommended buying Continental shares on weakness, with a price target of 41. Continental shares were trading at $32 3/8, up 1/2, on Thursday.

Delta Air Lines <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DAL)") else Response.Write("(NYSE:DAL)") end if %>

Steve Lewins also downgraded Delta's rating to neutral from speculative outperform--the stock fell $3.25 after trading at a new high.

ValuJet <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VJET)") else Response.Write("(Nasdaq: VJET)") end if %>

Candace Browing of Merrill Lynch raised her mid-term rating on Valujet to neutral from sell and her long term rating to neutral from reduce.

Atlas Air

Alex. Brown announced analyst Will Wrightson initiated coverage of Atlas Air with a buy rating.

A FOOLISH TALE:

Pena's Palace of Planes--is there a Revolution in the Making?

And now, a little update on the ongoing airline soap opera in Colorado. What airline soap opera you ask?

Well, you see, we have this very expensive new airport in Denver that MF Wings like to call Senor Pena's Palace of Planes. Right now, there is this one big brute of an airline called United that controls about 77% of the traffic in and out of this cozy little hideaway on the Colorado plains. Also sharing just a teeny bit of this marble-floored palace is a much smaller airline called FRONTIER AIRLINES INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FRNT)") else Response.Write("(Nasdaq: FRNT)") end if %>. Frontier has oh, all of about 3-4% of all the traffic in and out of the palace.

Now, a few years ago, a man by the name of Ed "Expand-at-all-Costs" Beauvais, (or "Mr. Ed" as MF Wings likes to call him) thought, as he was pondering the bankruptcy of his previous airline (America West) from his cozy hideaway in Colorado Springs, "Why don't I start another airline..here?"

And, well, Foolish readers, he went out, put the old dog and pony show back in gear, and well, the next thing you know, Salomon Brothers underwrote the IPO, and WESTERN PACIFIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WPAC)") else Response.Write("(Nasdaq: WPAC)") end if %> was in the skies.

Now, a funny thing happened. Or, actually several.

First, Mr. Ed had the town of Colorado Springs at his beck and call. Mr. Ed told them that Western Pacific was there for the duration--but only if the town gave him what he needed: more gates, more parking, more hangar space.

The town was in a quandry. The city council was in a dither. Mr. Ed would go elsewhere unless they spent the money he needed to expand. Meanwhile Mr. Ed announced new destinations right and left--Western Pacific was touted as the new...SOUTHWEST.

Consequently, the small airport at Colorado Springs was swamped. Gates were used and reused by different carriers as everyone tried to accomodate the new hoards of passengers.

Meanwhile--farther north, in the Palace of Planes, United and Frontier were co-existing--not unlike those cartoons of the rhinos in the water, with those little birds on their head. United was the rhino. Frontier was the tiny bird--making meals from the symbiotic tidbits it found by hanging around the rhino.

Then, somehing happened to upset this happy fairy tale. Or, actually TWO things.

Far, far away, a plane crashed into the Everglades. Secondly, fuel prices started to increase at a fast clip.

The effects were swift and strong.

Passengers were reluctant to fly on low fare start-up carriers like the one that had crashed. All of a sudden, ALL low fare carriers were suspect. In addition, those darn fuel prices continued to increase.

Well, up in the Palace of Planes, the rhino saw his moment of opportunity and decided he had had enough of the pesky little bird. All of a sudden, Frontier was under attack. United was going after them on the routes they both flew--lowering fares, increasing flights, increasing capacity. As we all know, the airline business is a dog-eat-dog world, and suddenly Frontier had on Milkbone underwear. (My compliments to Norm on Cheers for that line, and for MF Rockies for reminding me of it.)

In Colorado Springs, Mr. Ed finally got so unnerved that he left (cashing in some nice stock options before he did)--handing over the day-to-day reins to another person.

Western Pacific continued to lose money, Frontier continued to lose money, and United? United was just fine, thank you very much.

Then, out of the blue, Frontier announces it is going to seek permission to go after United--one on one--and fly directly to LaGuardia. The little bird had gotten some bravado, flapped its wings, and just decided that dive-bombing was the best approach.

So, where are we now?

Western Pacific blames a 15% decrease in traffic due to lowered fares in Denver at the Palace, (of course, it just might be due to the fact that passengers could not get through to make reservations for hours, sometimes days due to a major telephone line capacity shortage) Frontier blames United for predatory pricing, (United may in fact just be doing what all rhinos can do--stomp on smaller creatures that get in their way) and now Western Pacific sounds as though it is going to desert Colorado Springs and move to Pena's Palace of Planes as well.

Will Western Pacific merge with Frontier? (They did announce that they had "discussed" codesharing.) Will the DOT agree with Frontier that United has been just a little "too" aggressive? Will Frontier get authority to fly Denver/LGA in direct competition with United? Will Western Pacific just go away? Will Frontier? And how many of you think Herb is just sittin' on his Harley in Dallas.....just watching? (But then again, Denver WAS the only major market that Southwest has ever attempted and abandoned--long story there too--but we have kept you long enough.)

Stay tuned for the next chapter of "Pena's Palace of Planes: Is there a Revolution in the making?"

Frontier, after getting a nice bump earlier this month on the news of the DEN/LGA request, lost 11% this past week to close at 3, Western Pacific STILL has not issued their fourth quarter earnings (guys--this is getting a little ridiculous) and was down 2% on the week to close at 6 3/8, and United Airlines was down 4% to close at $67 1/8.

The rest of the week's stock activity went like this: VANGUARD <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VNGD)") else Response.Write("(Nasdaq: VNGD)") end if %> was up 6% to close at $2 1/8, MIDWEST EXPRESS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MEH)") else Response.Write("(NYSE: MEH)") end if %> was up 6% to close at $37 3/4, AIRBORNE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ABF)") else Response.Write("(NYSE: ABF)") end if %> was up 5% to close at $29 1/8, FEDERAL EXPRESS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FDX)") else Response.Write("(NYSE: FDX)") end if %> was up 4% to close at $56 1/4, ALASKA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ALK)") else Response.Write("(NYSE: ALK)") end if %> was up 2% to close at $27, COMAIR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COMR)") else Response.Write("(Nasdaq: COMR)") end if %> was up 2% to close at $22 3/4, AMERICA WEST <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AWA)") else Response.Write("(NYSE: AWA)") end if %> was up 1% to close at $15 4/8, CONTINENTAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CAI/B)") else Response.Write("(NYSE: CAI/B)") end if %> was up 1% to close at $32 3/8, ATLANTIC SOUTHEAST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASAI)") else Response.Write("(Nasdaq: ASAI)") end if %> was up 1% to close at $22 3/4, RENO <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RENO)") else Response.Write("(Nasdaq: RENO)") end if %> was flat, closing at $7 17/32, AMTRAN <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AMTR)") else Response.Write("(Nasdaq: AMTR)") end if %> was flat, closing at $8, AMERICAN AIRLINES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMR)") else Response.Write("(NYSE: AMR)") end if %> was flat, closing at $85 5/8, SOUTHWEST AIRLINES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LUV)") else Response.Write("(NYSE: LUV)") end if %> was down 1% to close at $23 3/8, USAIRWAYS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: U)") else Response.Write("(NYSE: U)") end if %>was down 1% to close at $25, WORLD AIRWAYS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WLDA)") else Response.Write("(Nasdaq: WLDA)") end if %> was down 2% to close at $7 7/8, HAWAIIAN <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: HA)") else Response.Write("(AMEX: HA)") end if %> was down 2% to close at $3 9/16, SKYWEST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SKYW)") else Response.Write("(Nasdaq: SKYW)") end if %> was down 2% to close at $13 1/4, MESABA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MAIR)") else Response.Write("(Nasdaq: MAIR)") end if %> was down 2% to close at $12 3/8, VALUJET <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VJET)") else Response.Write("(Nasdaq: VJET)") end if %> was down 2% to close at $7 7/8, DELTA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DAL)") else Response.Write("(NYSE: DAL)") end if %> was down 3% to close at $83 5/8, NORTHWEST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NWAC)") else Response.Write("(Nasdaq: NWAC)") end if %> was down 4% to close at $39 1/4, TOWER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TOWR)") else Response.Write("(Nasdaq: TOWR)") end if %> was down 7% to close at $2 3/4, and ATLANTIC COAST <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ACAI)") else Response.Write("(Nasdaq: ACAI)") end if %> was down 12% to close at $14 1/2.

FOOLISH NEWS BRIEFS

Delta Signs Exclusive 20-year deal with Boeing

Delta Air Lines finally did it. It announced a huge order with Boeing after months of speculation as to whether the carrier was going to go with Airbus equipment or with Boeing. Not only did they go with Boeing, they went all the way with Boeing, entering into an exclusive 20-year contract with them.

The plan includes 106 firm aircraft orders through the year 2006 at a value of $6.7 billion, based on list price. The plan also includes 124 options and 414 rolling options for aircraft through 2018. Options are guaranteed delivery slots. Rolling options are a pool of aircraft delivery positions that replace options as the options expire or are exercised. This understanding includes firm base pricing on the firm, option and rolling option aircraft.

Boeing will be the exclusive supplier of new aircraft for Delta through the 20-year life of this fleet acquisition plan, subject to specific conditions.

Current Score: STILL American 3, Pilots 1

In a little different turn of events this week, the mediators working with both the American Airlines and APA negotiators asked to continue the mediation process--instead of presenting the final Presidential Emergency Board recommendation to both sides. If the final recommendation had been presented, then there would have been no further opportunity for negotiations, as either side could then have elected to accept or reject the recommendations. However, the way all this was handled, it gave both sides a bit more time to negotiate.

And, while it was announced that a tentative agreement had been reached this week, I'm not so sure that is an accurate statement. It was apparent that there are still a number of issues and language that still have not been formally agreed upon--including what appears to still be the deal-maker or breaker--the regional jet (RJ) issue.

As of yesterday, the Board of the APA had disbanded--having decided to meet again in around 2 weeks, without having voted on the proposal that is now on the table.

It is reported that there is strong opposition to the proposal with members of the Board.

However, it is interesting to note that this agreement that is on the table now is better, in terms of compensation, than the formal PEB recommendation that was never "technically" presented. However, as has been the case since the beginning, the issue of the RJ's is the problem. But looking forward, this is an important point. If the APA Board votes no to the proposal, the pilots threaten to strike, and Congress then is pressured and decides to intervene, you can bet your winglets that Congress will pretty much do what the PEB has recommended.

At least that is what I think.

Mailing List

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That's it for this week's edition of the MF Wings' Weekly Update. And, oh, yes, I know I said last week we would talk about Delta and Continental this week. Well, current events and the possible revolution at Pena's Palace of Planes got in the way. My apologies!

Have a good week everyone!

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