It's getting tougher at the top at Air New Zealand where profits plunged in the second half of the past financial year.

With a wary eye on churning Tropical Storm Gustav, Continental Airlines today announced that affected customers will not be hit with a penalty for changing their travel plans.

JetBlue, an American low-cost airline, said Tuesday that one of its flights had returned to John F. Kennedy International Airport shortly after takeoff because the pilot reported smelling smoke in the cockpit.

Airbus is considering an extended 1,000 passenger version of the A380 aircraft. Louis Gallois, chief executive of the company has said two airlines, Lufthansa and Air France-KLM have already expressed an ...

Delta Air Lines Inc. plans to shift operations in January from one of its three concourses at the Cincinnati/Northern Kentucky International Airport to the remaining two.

If you're headed out of New Orleans by air, fleeing what appears to be the imminent arrival of Hurricane Gustav, here's what you should know. Officials at Louis Armstrong New Orleans International Airport (MSY) say the airport, which lies very,...

British entrepreneur Sir Richard Branson's comic book venture, Virgin Comics, has closed its New York office after disappointing sales.

Air safety investigators confirmed Friday that an exploding oxygen cylinder ripped a gaping hole in a Qantas jet's fuselage midflight last month, but said they were no closer to solving the mystery of why the tank failed.

The release of the interim report by Julian Walsh, acting executive director of the Australian Transport Safety Bureau, confirmed earlier suspicions by investigators that the tank was the cause.

'We don't really know why the bottle failed _ and that's the key question for the investigation,' Walsh told reporters in releasing the report.

The grip U.S. airlines have on travelers' wallets is about to get tighter as carriers go ahead with plans to trim their domestic schedules due to the high cost of fuel.

Frontier Airlines Inc. says in bankruptcy court filings that it lost three-point-two million dollars in July on revenue of 141 million.

Frontier Airlines Inc. says in bankruptcy court filings that it lost three-point-two million dollars in July on revenue of 141 million.

P Diddy has revealed that he can no longer afford to fuel his private jet. Diddy, who earned a reported $35million last year, complained in a blog about the sharp rise in oil prices, moaning that he cana t cope ...

Alitalia said in a statement that its board had asked the government to appoint an administrator and had declared insolvency to a Rome court.

By Jill Lawless London - Thousands of passengers scrambled to rearrange travel plans on Friday after the sudden collapse of trans-Atlantic budget airline Zoom, amid concerns that hundreds would not get their ...

In this file photo dated Sept. 14, 2004, Roberto Colaninno, right, chairman of the Italian "Piaggio" group and CEO Rocco Sabelli, left, are seen during a press conference in Munich, Germany.

This week saw a slew of sales and discounts on a number of routes, including AirTran's cheap fares for football fans. A good week for airlines (regardless of what's dominating the headlines), as a number of carriers have announced new...

Despite, or perhaps, because of the weather that can beset the tropics this time of year, now’s prime time for deep discount airfares to the Caribbean and Mexico. They aren’t going to get any better than this. If you’re willing...

Gulfstream International Airlines (Web site: gulfstreamair.com), operating under the Continental Connection banner, is slashing service, at least on a seasonal basis, out of Palm Beach International Airport (PBI). Most cuts take effect in September. Gone will be Continental Connection flights...

As Tropical Storm/Hurricane Gustav continues its deadly arch through the Caribbean, apparently headed for the United States Gulf Coast, airlines are allowing travelers to waive change fees for flights scheduled to select destinations. Yesterday, we told you about Delta’s plans....

Just as flyers headed for Los Angeles International Airport (LAX) to leave of town for Labor Day, members of the Service Employees International Union 1877 (Web site: www.seiu.org) headed for the exits, striking the Tom Bradley International Terminal – as...

American Airlines is offering sales on tickets to select destinations in Mexico and the Caribbean. Passengers must book tickets no later than September 12, and travel between September 2 and December 10. Travel is not valid November 22-30, and a...

Travel retailer Hudson Group has opened a Boswell's Harley-Davidson store at Nashville International Airport (BNA). In the front of the store is a Harley-Davidson Dark Custom Nightster, the new retro-look bike designed to appeal to younger riders. Arranged behind this...

SkyWest Airlines (Web site: www.skywest.com) is to start two daily flights between Klamath Falls and Portland from October 12. The new service comes after the carrier received a $626,000 cash guarantee from individuals, organizations and companies to break even, Associated...

Japan Airlines (JAL) (Web site: www.jal.com) has announced that it is offering 17 more chartered winter flights to Alaska. Dave Worrell, a spokesperson for the Alaska Travel Industry Association, told the Fort Mill Times that most of those charters will...

I became an Employee of SWA in December 2005.  However, as an attorney in private practice, I represented SWA in labor and employment matters for over 34 years before becoming an Employee.  Often, when people would learn that I represented Southwest Airlines, they would ask, “How does Southwest manage to remain non-Union?”  I would chuckle and explain that, in fact, Southwest is the most heavily unionized airline in the industry.  (We currently have ten collective bargaining agreements covering over 85% of our approximate 34,000 Employees.) 

But why was I so often asked this question?  I believe it is because there has been so little labor strife at Southwest.  But what is the explanation for such a remarkable labor relations history?  I believe it is attributable to two factors: (1) commitment to positive labor relations at the highest level of Leadership; and (2) our positive Employee Culture. 

Southwest Airlines began flying in June 1971, and I began representing Southwest in May 1972.  During those early years, I was privy to discussions at Southwest concerning what approach Southwest would take with regard to Union representation of its Employees.  Lamar Muse, the first operating CEO and President of Southwest, was of the opinion that we should not expend time and resources in an attempt to remain non-Union.  Lamar’s reason for doing so was both pragmatic and financial.  We were small and broke.  In Lamar’s opinion, if we were to be successful at remaining non-Union, we would have to lead the industry in wages and benefits, something we could not even begin to do.  Lamar also expressed the opinion, based on years of dealing with Unions at other airlines, that if Unions were voted in by our Employees, we could build and manage successful relations with them.  Herb Kelleher, recently retired Chairman of the Board at Southwest, believed that it was important for our Employees to have a voice.  He also strongly believed that we should not be adversaries, but rather partners, with any labor organization representing our Employees.  Although Lamar is now deceased and Herb is retired, there is still today at the highest levels of Leadership at Southwest a commitment to sustain and nurture the sound relationship we have with our labor organizations.

There is yet another factor that contributes to positive labor relations at Southwest: our Culture–how we view and treat our Employees.  At Southwest, our Employees come first; our Customers come second; and our stockholders come third.  The rationale is pretty simple.  If we treat our Employees right, they’re going to treat our Customers right.  If our Customers are treated right, they will come back and our stockholders will benefit.  Moreover, if we are committed to the proposition that we are going to treat our Employees right, then it follows a fortiori that we should treat the labor organizations that represent them no differently. 

My role at Southwest falls under the Labor & Employee Relations Department, and the mission of our Labor & Employee Relations is to promote effective and respectful relationships with all of our Employees, as well as the Unions and Associations who represent our Unionized Employees.

Of course, this sounds great in theory, but the challenge is in execution.  It requires a daily commitment to do the right thing in our dealings with our Employees and the labor organizations that represent them. 

To disagree without being disagreeable. 
To avoid character assassination and vilification when things don’t go our way.  To learn to listen, not just for the sake of being courteous, but with a goal of genuinely understanding and evaluating another point of view.  
Learning to appreciate the value of loyal opposition. 
To learn that we are not always right. 
To be willing to compromise and appreciate the value of joint resolution of disputes. 
To understand that a short term “win” at any cost can be destructive to a longterm relationship.

I believe Southwest and the labor organizations representing our Employees share two common goals: (1) to adequately and properly provide for the safety and economic wellbeing of our Employees; and (2) to keep our Company healthy and prosperous.  In these times of everincreasing costs and volatile fuel prices, it is a difficult challenge.  But we feel more confident knowing that our labor organizations are partners with whom we can join hands in this effort.

In summary, we value the relationship we have with our Employees and the labor organizations that represent them.  We believe that this relationship has contributed to the remarkable success of Southwest Airlines.  We are, after all,  in a Customer Service business that depends for its success upon our Employees.  As Colleen Barrett,  has often said, “We are in the Customer Service business.  We just happen to fly airplanes.”

In the entrance lobby at our HDQ building in Dallas, Texas, there is an inscription etched in glass that eloquently describes how the success of Southwest Airlines is attributable to our marvelous Employees: 

The people of Southwest Airlines are the creators of what we have become–and of what we will be.  Our people transformed an idea into a legend.  That legend will continue to grow only so long as it is nourished–by our people’s indomitable spirit, boundless energy, immense good will, and burning desire to excel.  Our thanks–and our love–to the people of Southwest Airlines for creating a marvelous family and a wondrous airline.

(See a video from Herb in our video blog section.)

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