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May 2008 Archives

Maybe next year: the UAL-US Airways deal is off

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Maybe next year: two houses divided against themselves cannot merge, and it's a good question if they can stand. That's the parable of the two airlines that have been trying to mere since the year 2000, when United parent UAL and US Airways made their first moves toward each other. They've been dancing since then but and have come close to touching cheeks, but, no, it's no tango. The latest is that it's officially off, with Doug Parker, the US Airways chief, telling his troops, "It is simply unlikely that anything will happen in 2008 as our industry continues to struggle with how to function in a world with $130 a barrel oil prices." Glenn Tilton, the boss at United, said United would "size the business appropriately, leverage our capacity discipline to pass on commodity costs to customers, and accelerate development of new revenue sources."

 

 

Spiritual Journeys: Vatican chooses Sabre

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Nice work if you can get it. The Vatican it seems has a travel office. It makes sense when you think that it is place that puts a lot of people on the road, many of them pilgrims. And that's just what the travel office calls itself - Opera Romana Pellegrinaggi. The office, which means Office of Roman Pilgrimages, just launched a website its calls Journeys of the Spirit, a portal that provides package tours to religious sites. (Our Lady of Fatima, three days, two nights, many miracles, double occupancy?) JOSP chose Sabre's Travelocity for white label packages, meaning that the end user never knows that it's Sabre or anyone else doing the heavy lifting. The site comes in several languages and is actually a way into some very cheap deals..

NUTS. Pretzels too, or the shrinking snack

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US Airways has been filling its employee newsletter with word of its shrinking workforce. It's not firing people, but it's encouraging its workers to lose weight by eating better and exercising. In fact, one employee has lost 9.7 pounds so far and another, 8 pounds, while one Charlotte maintenance guy lost 118 pounds over 13 months. This is very impressive, and now US Airways is trying to help its passengers lose weight. As of June 1, it will no longer serve pretzels or any other complimentary snacks on board domestic coach.

Antler comeback, or carry on punning

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Okay. We don't like to toot our own horn (yes, we do, but we like to try to be subtle about it) but our friend Terry Maxon of The Dallas Morning News and of that paper's blog Airline Biz noted that we had mentioned Frontier Airlines is now charging for antlers as a checked baggage fee. He does suggest that a dead deer could be taken on board as a passenger's single carrion.

 

Yak Yak, hear Left Field talk cuts

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Yak yak. Left Field, aka Uncle Dave, took a holiday the other day but went into National Public Radio's Morning Edition to talk about airline cuts and cutbacks. You can hear him here. The next day, American announced it was ending its flights between Chicago and both Buenos Aires and Honolulu in January, and will offer Hawaii fights only on peak days between September 3 and that day. It is also cancelling its Boston-San Diego non-stop flights as of September 3. It is pulling down its San Juan, Puerto Rico, hub from 55 to 33 daily departures during the winter peak season starting in September. American Eagle will move some of its 64-seat ATR-72 turboprops to Dallas Fort Worth, grounding its 26 Saab 340s, which have 34 seats.

Broken China: new routes are off, for a while. Or more

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platebefore.jpg They fought so hard for the routes and now....US Airways is the latest US carrier to seek to put off a new route to China despite its intense efforts to win the route in the first place. Back in September, Tempe, Arizona-based US Airways won the rights with the proviso that it begin flights from Philadelphia to Beijing by March 25, 2009. It would have no problem, the airline said. Now, US Airways says it remains committed to China service, has worked out a code share with fellow Star ally Air China that brings feed to both carriers, and says it has negotiations for local commercial arrangements well under way. But....

 

 

Sneaking on board: bag fees and more

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How to follow: if no one has yet to adopt American's fee for a first checked bag, that may be because a few stragglers are catching up with the fee for a second bag. The few who hadn't seemed the use the hubbub to sneak their fee through. Midwest, the former Midwest Express, did so, saying it would start immediately, exempting only its most frequent flyers and military flyers; Frontier Airlines did the same, but also came out with whole list of baggage charge changes that, it said, reflects the economic realities of today's flying. Frontier is also putting in lighter-weight leather seats, ending its animals in the cabin policy and instituting a few new charges. Among them is a new charge for - drum roll - antlers, accompanied or not. Yes, antlers, as in they were on a moose but then the passenger shot the moose and is bringing home the antlers to mount over the fireplace to impress people with his manliness, bravery, and deep pockets.

  

Bags, bags, bags: who will match American?

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It's our bag. Or not. American Airlines rocked the airline world with word that is going to start charging for every checked bag, not just a second bag. The $15 fee is set to go into effect in a few weeks, with only the airline's premier-level frequent flyers exempted. Like every other legacy carrier, American is already charging for second checked bag ($25, with the same exemption for elite-level members).

The response from the travelling public was predictable, with nickel and dimes mentioned as the world waited watched and held its breath to see if others would match. One carrier that made it clear it wouldn't was the one carrier that never planed to and never even thought about it: Southwest. At the core of the Southwest philosophy is giving people little, charging them little - and being funny and wearing a smile as they do it. The airline has never charged an extra fee (except for oversized bags, etc.) and they don't intend to now. They even went so far as to put out a statement subtly chastising The New York Times for not making this clear. "That is not true," said the airline of the Grey Lady's suggestion that it was considering the fee.

Praise for chairmen past, from AMR's Crandall to Southwest's Kelleher

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Kudos, or even kudoses. Well, several congratulations anyway. One to Herb (Kelleher, but he's known by his first name almost universally). Herb stepped down as chairman of Southwest Airlines at its annual meeting the other day, and promptly ceded his title to the youngster who has taken his other past job, chief executive: That's Gary Kelly, who became chief executive 2004 in and will become president in July, when another one of Southwest's icons, Colleen Barrett, retires form that post. The trio was effusive in their praise of each other. And Southwest pilots joined in the praise, lamenting the fact that they are negotiating their first contract without Herb.

Fuel surcharges? What are they using them for?

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What's it for? Airline fuel surcharges are mounting. With fuel at about $150 or so barrel, fuel surcharges are approaching $100 a flight on some routes. And one group that questions them are corporate travel departments. Take, for instance, attendees at the Association of Corporate Travel Executives meeting in Washington this week. John Caldwell, who advises travel firms from Washington, asked "how do we audit it?" Duane Futch, who manages travel for a little company called Wal-Mart, raised a number of questions, including, "how do we know that they'll use it for fuel?" and with ancillary fees such as charges for window seat and the like, "how do we know it's for that?"

Air Midwest: from corpses to collapse

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Everything's not up to date in Salina, Visalia, and Kingman. They're among the cities, or rather towns, that will have little or dramatically changed air service now that Mesa is shutting down its Air Midwest unit. The parent company, Phoenix-based Mesa Air group, said it January it would probably get rid of the airline, selling or liquidating it, and now it is doing just that. The Beech 1900D carrier, which was first started 43 years ago to carry human remains in Kansas, has becoming essentially an EAS carrier, but even with subsidy couldn't make ends meet with its little planes and thin routes.

 

 

Frontier farrago: Fargo and other spots

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Frontier went back into Fargo, North Dakota, for the second time; this time it’s on Frontier’s Lynx unit, which flies the Bombardier Q400. p313610-Fargo_Theater.jpgDenver-based Frontier had been in Fargo when it started up in 1994, pulling out in 1996 when it gave up in the entire state. It had also been in Fargo way back in 1975-1986, when the original Frontier flew there before Continental bought it. Either way, Fargans or Fargoans are glad to have them back at their airport, which is called Hector after the family that gave the city the land for the airport back in 1927. Yesterday was also Frontier’s last flight to Sioux City, Iowa, where its arrival in November of 2007 had boosted passenger numbers. That leaves the Sioux Gateway Airport with one carrier, Northwest Airlines. Frontier ends service at Missoula, Montana, on Friday, although that airport will have plenty of service from others.
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Nuts, nuts, nuts: Southwest reboots and reblogs

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They wuz first. And they are the the one with mostest. That’s Southwest, which has changed its corporate blog, Nuts About Southwest. Never mind that they keep saying that they are nuts, even though when people startnuts-about-sw-header.jpg talking about being nuts, you know that they’re not. The site offers a new look and some new features including a videoblog and a podcast as well as a Flickr feed. Flickr is a free photo-sharing site and on-line community, and even though many of its contributions clearly, or rather unclearly, reflect the skill of its members, it can be interesting. Except when they're out of focus. So far this is mostly pictures of Southwest airplanes plus a few shots of people in airports, but this too will sharpen.

The tree is empty as the FAA bill is again pulled

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When Harry Reid, the Democrat from Nevada who runs the party in the Senate, came out the other week and said he’d block amendments Filling_in.jpg from the FAA reauthorization bill, he took a gamble. 'Filling the tree', as this manuevre is called, is to many objectionable: it limits debate, which is what they love to do in the world’s greatest deliberative body. On the other hand, it may well be the only way a measure gets moved from debate to actual action, which is just what may be needed when it comes to the FAA bill.
But it didn’t work. Republicans objected, and the Democrats responded with a vote on limiting debate called the cloture vote (this is the way to end filibusters). The manuever failed, with only 49 votes on the Democratic side. “We find ourselves in a stalemate,” said Mitch McConnell, the Senate’s top Republican. Hutchison, a Texas Republican, added, “We should go back to the drawing boards.”

FAA resignation demanded - again

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Off with his head. That is the recommendation of the Business Travel Coalition, where chairman Kevin Mitchell is again gathering his members’ wrath and preparing to call for Bobby Sturgell’s head. bobby_sturgell.JPGThe latest impetus in his demand for the resignation of Sturgell (right)from his temporary leadership of the FAA - along with other unspecified FAA leaders - is the revelation that the FAA had failed to perform over 100 safety checks at major US airlines. The inspections, part of ATOS, the Air Transportation Oversight System, are system checks of the way in which the airlines collect data and analyze it; they include engine-monitoring and pilot-training. The ATOS checks in question are five-year checks that became mandatory last year. Mitchell, whose group is composed of corporate travel managers, is also running a member poll on airline consolidation; he recently testified against the Northwest/Delta merger. His group is working with Teamsters on legislation that would compel tightened FAA inspections and oversight of outsourced maintenance, especially overseas airline maintenance.

Neeleman returns to the familiar for his new carrier

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No, he’s not blue. That’s just David Neeleman’s new name for his new airline in Brazil, Azul. The JetBlue founder says it “may seem vaguely familiar 953776024_63077ea2dd_o.jpgto American travellers,” and Neeleman also notes that the name wasn’t really his choice (sure, Dave). He says he chose the name from 157,000 entries to his new airline’s website, voceescolhe.cm.br (Portugese for 'your choice'), and narrowed the list down to two entries. One was Azul and the other was Samba. Samba actually received more votes, but Neeleman chose Azul anyway. Azul, says Dave, “is a metaphor for security, serenity, loyalty and quality, as well as connoting flight, as the color of the sky.” Neeleman has sent free lifetime passes to the people who entered Azul, but also sent passes to the Sambaistas. The airline itself will begin service sometime early next year, when its Embraer 195s are delivered.

Chasing that fare

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The headlines about Microsoft have been busy; Yahoo was going to be party of the 'softworld, then wasn’t. Lost in much farecast_screen_x220.gif of the 'softnews has been the Seattle-based giant’s purchase of Farecast.com, a small potatoes deal at $115 million but still big deal. Farecast –originally called Hamlet – is a typical .com start-up in that it was the brainchild of a single individual. But there the .commonality starts to end, because few scientists such as Oren Etzioni, the University of Washington computer guy who began Farecast, are playing with airlines. What Farecast does is to use data-mining to power an on-line travel search engine that predicts whether or not airfares would rise or fall on a specific route for a specific period.

FAA bill's last chance?

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‘Filling the Tree.’ That’s what they call it in the Senate when a floor manager or member of the leadership invokes a rule (Rule XV) that essentially lets him (or her) block amendments from coming to the floor topic02.jpg modify a bill under consideration. While some people object to this tactic, it may well be the only way a measure gets moved from debate to actual action and that is what may be needed when it comes to the FAA bill. The bill has languished in the Senate for months, even though the House passed its version in September; a move by Sen. Jay Rockefeller to bring it up last week was met with another kind of tree decoration, in which a bill is loaded up with amendments that not only bog it down but break its limbs. A pension amendment that would have forced major airlines into millions of dollars in extra payments was one, and it was finally defeated by Sen. Kay Bailey Hutchison, but other amendments, including one that punished any US company that moved offshore to avoid taxes, were also piled on.

Back to Plattsburgh

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The little airport Cartrailer6-700.jpg in far Upstate New York, just 25 or 30 miles from the Canadian border, made news last year and this year with its ambitious plans, plans that were undaunted by the failure of Big Sky, the regional carrier. The airport even persuaded New York State transportation authorities to put French-language signs along the north-south highway to Montréal. Now it’s begun a newsletter in French. This francophone effort includes something we didn’t know about and find entertaining: links to Coastal Express, a trucking company that will haul your car from Plattsburgh to Florida - and back. (And you thought we just liked pictures of trucks!) All in all, for an airport that's just coming up on its first anniversary as a commercial airport (it used to be a US Air Force base), not too shabbe, as the French don't say.

Travel slowdown? Yes, but...

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It’s the other guy. It always is. While the general consensus is that things are slowing down, lots of travel companies are saying that their business is okay. We don’t question them, but if we had to make a corptravel.bmpchoice between one truth and another, we’ll take the negative. Take for instance the survey just completed by UBS and reported by that bank’s airline securities analyst, Kevin Crissey. This found corporate planning. About 42% of the 80 managers surveyed said that their firm is likely to spend less on air travel this year. That compares to 26% just six months ago. And 34% of those surveyed said that their cuts are not yet fully reflected in airline results. Overall, 65% expect their travel spending to be flat or down this year. And IATA found that the slowdown had already begun to show up in world-wide airline traffic statistics, and that the US increase was largely on international routes.

Allied Pilots contract is now open

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You mean all that was for nothing? The last year or year-and-a-half has been a tough one for American Airlines, American%2520Airline%2520Pilots.jpgnot least because it’s been in bickering, er, we mean, negotiations, with its pilot union. We thought all the back and forth was important, but it turns out it was all really a mere vorspeis, an appetiser, for the main course. That’s because the Allied Pilots Association’s contract with American didn’t actually become amendable until May 1, and that the last 18 months or so of forth, back, and forth has largely been for naught.
"The early-opener provision was designed to enable the two parties to reach a new agreement by the contract's amendable date," says APA president Lloyd Hill. "Clearly, this provision has not produced the desired result, as evidenced by the lack of progress at the bargaining table." Hill noted that management triggered the early-opener provision in the contact.

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