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American Airlines CFO on fixing balance sheet after pandemic

Derek Kerr might have the hardest job in the airline business. Kerr is the CFO of American Airlines, and his task is to fix a balance sheet that has been battered by borrowing needed to survive the pandemic. American has the most debt among all US airlines, more than $36b. The airline is trying to fly through a bumpy recovery in travel during which revenue is rising but so are costs like fuel and labor. Story features transcript of interview. With quotes including: "Leisure is really, really strong. Small business is back 100% also, because those businesses had to survive, they are out flying. Corporate business is back about 65%, 75%. As we look out at bookings ... we don’t see any huge change from a revenue standpoint as we go forward." And: "A. "Hedging is insurance. It’s very expensive, and you can’t insure your entire portfolio of fuel. The airline industry is the No. 2 user of fuel. If we all hedged fuel, we’d move the fuel price and actually drive the fuel price up. Plus you put a risk on the company (if oil prices fall). And then the last thing is you have a natural hedge today — as fuel increases, the industry can raise revenues. We have passed on pretty much the fuel increases that are out there."<br/>

Two Muslim men file federal discrimination suit against Alaska Airlines after they say they were removed for texting in Arabic

Two Muslim men have filed a federal discrimination suit against Alaska Airlines for being removed from a plane prior to takeoff after a passenger alerted the crew that the men were texting and speaking in Arabic. According to a complaint filed last week in federal district court, the plaintiffs, Abobakkr Dirar and Mohamed Elamin, allege they boarded a flight from Seattle to San Francisco on February 17, 2020, and after being seated in their first-class seats, they started speaking and texting in Arabic. Another passenger, who did not speak Arabic the complaint says, saw some of Dirar's text messages and told the crew who removed Dirar and Elamin from the flight due to what they claimed to be a "ticket issue." Once Dirar and Elamin were off the flight, the men spoke with an Alaska Airlines manager who translated their text messages and the messages were deemed not to be a threat, but the men were subsequently surrounded by law enforcement, according to the complaint. Dirar and Elamin, the complaint says, felt humiliated for being taken off the plane and being surrounded by law enforcement while allowing other passengers to observe "humiliating Plaintiffs before their fellow passengers by unnecessarily deplaning said passengers and allowing them to observe Plaintiffs surrounded by uniformed law enforcement personnel." According to the complaint, they are seeking damages against the airline. The pair was booked on subsequent flights separately to San Francisco, but Elamin had to sit in a downgraded seat and both passengers arrived at their destinations hours later than originally intended. In a statement to CNN, Alaska Airlines says it takes discrimination complaints very seriously. "Our greatest responsibility is to ensure that our flight operations are safe every day, and that includes complying with federal regulations on investigating any passenger safety reports. Since this case remains pending litigation, we're unable to share any further comment or details at this time."<br/>

ATC halts Qantas takeoff over engine fire concerns

An air traffic controller alerted a Qantas pilot to a possible engine fire prior to takeoff on Sunday, after a witness reported seeing “some kind of flame” coming from one of its engines. Qantas flight QF91 from Sydney to Noumea was taxiing towards its runway at around 7:40am on Sunday, when air traffic control informed the pilot of the possible engine issue. “Qantas 91 just be advised the car behind you reports some kind of flame coming from the right engine,” the air traffic controller said, to which the pilot replied, “hope not.” The air traffic controller responded, “Qantas 91 affirmative, it’s flames,” causing the flight crew to declare a pan-pan emergency and request the aid of the fire brigade. The aircraft stopped on the taxiway and killed power to its engines. The Qantas Boeing 737 was then escorted back to the gate, and passengers were re-accommodated on a later flight. According to a Qantas spokesperson, there was no indication inside the cockpit that anything was amiss with either of the plane’s engines, leading the airline to believe that the reports of smoke were merely a false alarm.<br/>