Aviation Industry Updates: Nov 7, 2023

FedEx Tells Pilots To Go Fly For Regional As Cargo Demand Slows

KEY POINTS:

• FedEx said on Monday it is encouraging pilots to seek work flying for a unit of American Airlines Group as the U.S. parcel giant grapples with a slowdown in e-commerce demand.
• The global shipping downturn has been a margin drag for most operators in the logistics sector and FedEx too was met with a daunting task of matching costs to lower demand after the e-commerce bubble burst with customers returning to their pre-pandemic lifestyles.
• “Given the softness in air cargo demand across the industry and current FedEx flight operations staffing levels, we shared information about this unique opportunity with our pilots,” FedEx said in a statement.
• FedEx in the last year has slashed jobs, retired planes, shuttered offices and pared back profit-sapping Sunday deliveries to cut $4 billion in permanent costs by the end of its 2025 financial year.
• Meanwhile, the U.S. airline industry has also been struggling with industry-wide pilot shortage, worsened by pandemic layoffs and retirements as pent-up demand for travel remains unabated.
• Regional carrier PSA Airlines, a subsidiary of American Airlines, is now recruiting experienced FedEx pilots for entry-level captain’s position.

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The 4 Big US Airlines Hedge Different Bets On Demand For Premium, International Travel

KEY POINTS:

• After a summer of sky-high demand for international travel and premium cabins, the "Big Three" U.S. airlines — American Airlines, Delta Air Lines and United Airlines — all reported record profits.
  Now, those airlines are hoping those trends are long-term.
• "Overseas, we think there's just a lot more opportunity," Andrew Nocella, United's executive vice president and chief commercial officer, said at the Skift Aviation Forum in Fort Worth on Wednesday.
• "And, at the end of the day, it's not that it's just so amazing on average. It's amazing when you have the seven gateways that United Airlines has."
• Nocella said he believed the U.S. market has matured due to having many different carriers operating in different markets. He added that he forecasted the industry's domestic growth would be tied to the gross domestic product by the end of the decade, making it difficult for airlines to achieve high growth rates domestically.
• American Airlines CEO Robert Isom shared a similar sentiment, saying that the Fort Worth-based carrier isn't necessarily worried about an oversaturated transatlantic schedule next summer and pointing to its partnerships with Iberia and British Airways as part of the Oneworld alliance.

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American Airlines Pilot Union Hit With Ransomware

KEY POINTS:

• The American Airlines pilot union is working to restore its systems following a ransomware attack, the latest in a rash of cyber incidents affecting the aviation industry.
• The union, which represents more than 15,000 of the airline’s pilots, posted a notice on its website explaining it first discovered the cyberattack on October 30.
• The unnamed cybersecurity firm hired to conduct an investigation confirmed that the union was hit with ransomware and said some systems were encrypted.
• “As a result, the restoration of those systems has entailed a methodical and time-consuming process for our IT team and outside experts,” it said. “As we work to recover from backups, we are also continuing to assess potential impacts to data, including member data. Investigations of this nature often take time to complete.”
• The organization's IT team is working with outside experts to restore their systems and noted that efforts “are progressing,” allowing them to soon bring some services back online.
• “Once the initial restoration is in place, we will continue to restore additional services over the coming hours and days, placing a priority on pilot-facing products and tools,” the union explained.
• “We are working diligently to be fully operational as soon as possible, while keeping the security of our systems front and center.”

The Record

Delta Co-Pilot Threatened To Shoot Plane's Captain In Dispute Over Ill Passenger, Feds Say

KEY POINTS:

• A former Delta Air Lines co-pilot accused of threatening to shoot the plane's captain during a flight is facing a felony federal charge in connection to the August 2022 alleged crime and has been fired from his position, officials said.
• Jonathan J. Dunn was indicted on Oct. 18 and charged with interfering with a flight crew, according to court papers filed last month in U.S. District Court in Salt Lake City.
• According to the two-page document signed by Assistant United States Attorney Michael Kennedy, Dunn assaulted and intimidated a crew member of an aircraft, "interfering with the performance of the duties of the crew member and lessening the ability of the crew member to perform those duties."
• In addition, the indictment continues, Dunn used a weapon during the assault.
• The U.S. Department of Transportation Inspector General's office reported Dunn was the co-pilot on the flight and threatened to shoot the captain "after a disagreement over diverting the flight to take care of a passenger with a medical issue," the Associated Press reported.

Reuters

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