FAA rejects proposal to cut training hours for co-pilots

September 22, 2022

Categories: AirlinesTags: , , Views: 215

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The Federal Aviation Administration rejected a proposal to cut the necessary training hours for co-pilots on Monday. The proposal, offered by a regional airline with codeshare agreements with United Airlines, Delta Air Lines, and American Airlines($NASDAQ:AAL), suggested regulators cut the number of training hours required to become a co-pilot in half, to 750 hours from a typical 1,500. The FAA said that it “does not support reducing the minimum number of flight training hours for first officers,” citing safety concerns.

The agency added that it would continue to work with the airline industry on ways to improve safety. The regional airline that proposed the cuts said it was disappointed by the FAA’s decision, but would continue to work with the agency on ways to improve safety.

Share Price

On Tuesday, the Federal Aviation Administration rejected a proposal from American Airlines to reduce training hours for co-pilots. American Airlines stock opened at $14.20 and closed at $14.00, down by 1.7% from its last closing price. This news comes as a setback for the airline, which has been struggling financially in recent months.

American Airlines has been cutting costs in an effort to stay afloat, and this proposal was seen as a way to further reduce expenses. The FAA’s rejection of the proposal means that American Airlines will have to continue to incur the costs of training its co-pilots for the time being.

VI Analysis

A company’s fundamentals reflect its long term potential. The below analysis on AMERICAN AIRLINES is made simple by VI app. The VI Star Chart shows that AMERICAN AIRLINES has a low health score of 3/10 with regard to its cashflows and debt, is less likely to pay off debt and fund future operations. AMERICAN AIRLINES is strong in profitability, and weak in dividend and growth.

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Summary

The proposal was strongly opposed by the pilots’ union, which said it would compromise safety. American Airlines has been struggling financially, and this rejection is a setback for its efforts to cut costs. Despite this setback, the airline remains committed to finding ways to reduce expenses and return to profitability.

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