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FEATURE INDUSTRY

National Public Radio, in which a former Mr Callaghan said the current claims of the order book.
Vice President of Continental Airlines, by United Airlines, Delta Air Lines and The fleet age of US airlines is typically
Pete Garcia, was quoted as saying: American Airlines that they were being double that of the world average.
“Bankruptcy, for the airline industry in harmed by Etihad Airways were baseless, US airline face stiff competition from
particular, is just a way to refinance the and an attempt to obstruct higher-quality airlines across the globe such as Etihad,
business. It is a financial move to keep competition. Emirates, Air New Zealand, Singapore
you in business and give you time to “There is no evidence whatsoever of any Airlines and Cathay Pacific.
renegotiate with your lenders.” harm caused by Etihad Airways to any of the These airlines are innovative, vibrant
The Risk Advisory Group identified three big US airlines,” Mr Callaghan said. and understand the customer and aviation
the largest beneficiaries of Chapter “The US Open Skies policy has - and thus the consumer – is far better off
11 restructuring and bailouts from the delivered more choice and better service for their success.
Pension Benefit Guaranty Corporation as: for millions of consumers, more airline And as Air New Zealand has proven
1. United Airlines, with combined benefits access to and from America, and record you don’t have to be a global giant to lead
estimated at US$44.4 billion; profits for the biggest airlines in the US. the pack while making record profits.
2. Delta Air Lines with combined benefits It is time to refocus on the real issue here The airline has won Airline of the Year
estimated at US$15.02 billion; and – that the Open Skies policy is delivering awards in four of the last five years and
3. American Airlines with combined the benefits it was designed to deliver, and created its own award winning seats.
benefits estimated at US$12.05 billion. that everyone is a winner.” US airlines need to rediscover the
The lack of profitability – until recently magic that made them great rather than
Of these figures: - has left US airlines well behind the rest point the finger at rest of the world.
1. United achieved one-time bankruptcy of the world in their ability to compete
debt relief totalling US$26 billion, and with new aircraft types and better in-flight
pension termination benefits totalling product.
US$16.8 billion; Were once US airline launched all new
2. Delta Air Lines achieved bankruptcy aircraft – today they are late adopters
debt relief totalling US$7.9 billion, and because of a scarcity of profits.
pension termination benefits totalling While the US accounts for 25 per cent
US$4.55 billion; and of the world’s air traffic its airlines only
3. American Airlines achieved bankruptcy debt make up a paltry 10 per cent of the orders
relief totalling US$1.56 billion, and pension for the revolutionary 300-seat A350 and
termination benefits of US$8.08 billion. Boeing 787 – planes that burn up to 20
percent less fuel than the aircraft they Air New Zealand was the
These figures include restructuring and replace. launch customer for the
bailout benefits achieved by other US Compare this to 1980 when the 250- revolutionary Boeing 787 but
airlines, since absorbed by Delta, United seat Boeing 767 rolled out, when US US airlines only account for
and American. airlines accounted for almost 75 per cent 15 per cent of the order book
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