United Continental paid CEO Smisek $4.4 million

For United Continental CEO Jeff Smisek, running a bigger airline is paying off

Joshua Freed, AP Airlines Writer, On Friday April 22, 2011, 7:38 pm EDT

Jeff Smisek is running a bigger airline, and now he's getting a bigger paycheck.

The president and CEO of United Continental Holdings Inc. collected compensation worth $4.4 million last year, according to an Associated Press calculation from a proxy statement the newly merged airline filed on Friday.

When 2010 began, Smisek, 56, had just taken over as CEO of Continental Airlines. He helped negotiate a merger with United. After the deal closed Oct. 1, he took over as CEO of the combined company, which will be the world's largest airline and fly under the United name.

The compensation figure for last year includes his salary for his time at both airlines plus a cash incentive of $3.6 million and $9,766 in extras. His total compensation was $3.6 million in 2009, when he was president and chief operating officer of Continental.

As head of Continental, Smisek had said he would not take a salary or bonuses until it earned a full-year profit. It did -- $854 million, counting the results for both companies. Because of that, United Continental said in the filing, it paid Smisek's salary retroactively at the end of 2010, partly at the Continental rate and partly at a higher rate after the merger.

Smisek's base salary was $730,000 as head of Continental. The combined company's board raised his salary to $975,000 after the merger "in consideration of his enhanced responsibility and leadership," the filing said.

He also received $6,735 for a 401(k) contribution and $3,031 in tax reimbursement.

US Airways Rattles Anticompetitive, Anticonsumer Claims at Sabre

April 24, 2011
by Zvi Bar

US Airways (LCC) filed a federal civil lawsuit in the Southern District of New York against Sabre Holdings Corp. to halt anticompetitive and anticonsumer practices, and seeking to recover monetary damages. US Airways noted that the Antitrust Division of the United States Department of Justice and the United States Department of Transportation previously recognized that Sabre exercises significant market power over some airlines.

US Airways complains that Sabre's distribution of airline fares and content to travel agents shows a pattern of exclusionary conduct that prevents others from competing with what they allege is monopoly pricing power and a technologically-obsolete business model. US Airways contends that Sabre makes exclusionary and anticompetitive requirements that affect travel agents, other Global Distribution Systems ("GDSs") and US Airways, among other airlines, and that Sabre's actions hurt consumers through higher prices, reduced innovation and fewer choices.

Sabre is a large American GDS and US Airways revealed that over 35% of corporate revenue is booked through Sabre and Sabre's affiliated travel agents. Saber is also the parent company of Travelocity and is owned by private-equity companies Silver Lake and TPG. The complaint claims Sabre imposes economic penalties on travel agents for bookings not made using Sabre and that Sabre can threaten that it will remove an airline's flights from its offerings, resulting in an unlikelihood that travel agents would book that airline. US Airways alleges that it must comply with monopolistic Sabre practices because it cannot survive if it were to lose that business.

Sabre and US Airways actually executed a new distribution agreement in February of this year and Us Airways now claim's it was forced to succumb to Sabre's "my way or the highway" demands (such deals are more common to roadhouse deals than airway deals). The complaint also alleges that Sabre aggressively suppresses travel agents from booking tickets directly with airlines using "direct connections."

Unions blast American Airlines CEO's compensation

Gerald Arpey, Chairman of the Board, Chief Executive Officer of the Company and American Airlines

Unions, locked in stalled wage talks, blast increased compensation for American Airlines CEO

David Koenig, AP Airlines Writer, On Friday April 22, 2011, 6:48 pm EDT

DALLAS (AP) -- Unions locked in wage negotiations with American Airlines accused the CEO of greed on Friday because he got an 11 percent boost in compensation, to $5.2 million, while the company was losing money.

Garry Drummond, director of the airline division at the Transport Workers Union, said CEO Gerard Arpey's increase was "almost beyond belief and certainly shameless."

The airline's other two unions also attacked the CEO's compensation. "Whatever happened to pay for actual performance?" said flight attendants' president Laura Glading.

Labor unions said their members haven't gotten raises since at least 2008. All three are in contract negotiations.

"This is the type of rhetoric expected around contract talks and is aimed at putting public pressure on the company," American spokeswoman Missy Cousino said in response to the union comments.

Cousino said employees at American, which still has pension plans and retiree medical benefits, are better off than workers at many other airlines.

American has resisted wage increases, saying its labor costs are already too high. Two of the unions have asked federal officials for permission to start a countdown toward strikes, but the requests have not been granted.

In a regulatory filing Thursday, parent company AMR Corp. disclosed that Arpey received compensation valued at more than $5.2 million in 2010, when AMR was the only major U.S. airline operator to lose money. That was up from $4.7 million in 2009 because the value of Arpey's 2010 stock grants and options was higher than similar grants the year before.

The company said Arpey was paid below the median of CEOs at similarly sized companies.

United Continental: No more bag check discounts

United Continental drops $2-$3 discount for customers who prepaid for checked bags online

On Saturday April 23, 2011, 4:37 pm EDT

CHICAGO (AP) -- There's no more incentive to prepay online for your checked bags if you're flying United Continental. The carrier has done away with the $2 to $3 discount that passengers used to get if they paid for their luggage online instead of at the ticket counter.

The charge for domestic flights operated by Chicago-based United Continental Holdings Inc. is now $25 for the first bag and $35 for the second, no matter how or when you pay. The change began for tickets sold since March 9.

United and Continental used to offer a $2 discount on the first bag and $3 off the second to encourage passengers to pay up before arriving at the airport.

Delta Air Lines Inc. still offers a similar discount. Other carriers, including AMR Corp.'s American Airlines, never offered different prices.

Southwest Airlines Co. continues to allow passengers to check two bags for free.

Florida's presidential straw poll could help pick GOP frontrunner

In 2008, Florida's January primary made John McCain the clear frontrunner in the race for the Republican presidential nomination.

By WILLIAM MARCH | The Tampa Tribune
Published: April 24, 2011

TAMPA - Florida Republicans are taking advantage of the state's size and swing-voting status to try to make this the decisive state in the 2012 Republican primary contest.

If they're successful, Republicans in Florida, more than any other state, could pick the nominee to run against President Barack Obama in 2012.

In the last two weeks, party leaders have acted to hang onto an early presidential primary date, despite opposition from the national party.

They've also set up an early presidential straw poll for this fall that insiders believe could shape the primary contest – a straw poll designed to be a more valid test of the candidates than most presidential straw polls.

In the amorphous field of potential candidates with no clear frontrunner, the Presidency 5 straw poll could pick a frontrunner; or it could create momentum for lesser-known candidates, converting them into serious contenders.

The straw poll's importance will increase if Florida gets the primary date legislative leaders have said they want, immediately after the four small, early states now scheduled to hold primaries and caucuses in February.

"Florida arguably was the state that made the decision in 2008" in the GOP primary, said University of Virginia political scientist Larry Sabato, a long-time analyst of national politics.

"If Florida could maintain its 2008 position, it could probably decide the 2012 nomination also."

In 2008, Florida's January primary made John McCain the clear frontrunner in the race, effectively ending Rudy Giuliani's campaign and leaving Mitt Romney as McCain's only significant competitor.