In other airline, hotel and travel industry news last week…

• United Airlines will begin new nonstop service from Raleigh-Durham International Airport to San Francisco on August 15. North Carolina Governor Beverly Perdue broke the news on Wednesday. United will operate a 154-seat Boeing 737-800 on the route and the flight will be timed to allow for connections to the popular international bank of departures leaving in the 11 o’clock hour from SFO.
• Sacramento International Airport is trying to court Virgin America. The airport received approval from the county to offer VX up to $400,000 to begin flights to Los Angeles. Also in the works for the debt-ridden airport are deals for two new airport hotels by 2014.
• Allegiant Airlines officially announced new service to Hawaii. The airline took delivery of its first Boeing 757s last year that it will use on the route, but they have yet to receive FAA certification. Allegiant plans to operate flights to Honolulu three times weekly from Las Vegas and one flight each week from Fresno. The planned service is scheduled to begin at the end of June.
• Free Wi-Fi will be coming to Dallas-Fort Worth International Airport in September this year. DFW reached an agreement with AT&T to offer the service in every terminal and passengers will have to view a 30-second commercial for every 40 minutes of network usage.
• The Qantas A380 that suffered an uncontained engine failure near Singapore last year will return to service later this month. Final testing is underway and the total cost of repairs came to about $143 million. The airline claims the entire cost is covered by insurance and represents more than a third of the current $389.9 million list price for a new A380.
• Hilton Hotels & Resorts will be shifting 447 properties up or down a category level on April 30. 330 hotels are going up a level while 117 are being downgraded. The full list of properties affected can be found here.
• Hong Kong International Airport will be getting the world’s first airport IMAX theatre in June. It will replace the former 4D Extreme Screen in Terminal 2 and is located before security. A mix of Hollywood movies and “edutainment” films will air in the 358-seat cinema at a cost of about $20 per ticket.
• Finally, my air-traveling idiot of the week goes to a woman who stripped naked at Denver International Airport on Tuesday. She was apparently smoking inside the terminal and decided to take her clothes off after being asked to put her cigarette out. An airport police spokesman said she wasn’t arrested, but instead taken to a hospital for evaluation.

In other airline, hotel and travel industry news this week…

• Southwest Airlines will be adding an extra row of seats on their entire fleet of 737s with the introduction of new seat cushions and seatback pocket materials. The carrier claims the new seats are more comfortable than what’s currently flying, though seat pitch will suffer an inch going from 32” to 31” to accommodate the extra row. Separately, the carrier announced it will drop service to several AirTran cities, including Allentown, Harrisburg, Lexington, Sarasota, Huntsville and White Plains.
• A woman was arrested this week after bringing a gun with her through security and onboard an American Airlines flight at DFW. What’s just amazing, though, is that TSA agents detected the gun in a scan, but the woman was able to get her bag from the conveyor belt and proceed into the terminal without being stopped. This is a clear failure of the TSA, actually, as that bag never should have proceeded to a point where she could pick it up off the belt. Oh vey!
• Hawaiian Airlines is increasing flights in Hawaii to 180 daily, up from 157 and will further expand service in Maui so it can serve as a hub for interisland flights and those to the mainland. I was surprised to read they didn’t already have nonstops between Maui and Kauai, but that route, along with flights to Hilo and Kona on the Big Island will begin on March 11. Also, during the peak summer months, Hawaiian will operate a daily nonstop from Maui to Los Angeles using a Boeing 767.
• Airbus raised the price of its A320neos by 6.1% and other aircraft by 3.9% at the beginning of the year. The company’s COO-Customers said the price increase “reflects the strong demand for our modern, eco-efficient aircraft families.” He further mentioned the A320neo offers a 15% fuel cost savings for airlines. In terms of revenue, Airbus has a 54% share of the global market to Boeing’s 46%.
• Airlines Reporting Corporation (ARC) advised the least expensive airfares processed by the clearinghouse in 2011 were bought six weeks in advance of flight time. Those fares were on average 5.8% lower than the overall average fare of $358.30. They warned that they’re not advising people to exclusively purchase tickets at that time because it’s not guaranteed that’s when the best deals are out there. Separately, ARC mentioned mega corporate travel agency air transactions (AMEX Travel, Carlson Wagonlit, etc.) dropped 4.6% in December, the biggest decline seen in 2011.
• The Occupational Safety and Health Administration (OSHA) ordered the reinstatement of a pilot who was fired from AirTran for his frequency in reporting mechanical problems. The pilot was terminated in 2007 and the carrier must now pay him more than $1 million in back wages, interest and compensatory damages. AirTran had no comment.
• Finally, President Obama signed an executive order to ease travel requirements for foreigners wanting to travel to the United States. This will entail expanding reciprocal trusted-traveler programs, adding countries to the Visa Waiver Program, streamlining visa processing, and other U.S. Travel and Tourism Advisory Board changes. The U.S. State Department issued 17% more visas in 2011 than 2010.

In other airline, hotel and travel industry news this week…

• Thai Airways will take delivery of two Airbus A380s next year and will initially operate their first whale on regional routes, of which Bangkok to Hong Kong is probable. Once they take delivery of their second A380, service to Frankfurt will begin, followed by London and Paris once additional aircraft come online.
• All Nippon Airways (ANA) announced this week they’d begin flying their internationally configured Boeing 787s between Tokyo and both Seattle, WA and San Jose, CA beginning April 1st and between Tokyo and Boston April 22nd. The aircraft will feature 46 seats in a staggered all-aisle access Business Class and 112 seats in Economy in a 2 x 4 x 2 configuration. Will United Airlines maintain their SEA-NRT daily roundtrip once that happens? I think not.
• The latest push to exclude U.S. carriers from the upcoming European Union Carbon Emissions Trading Scheme has failed. The highest court upheld the law that will begin charging airlines for exceeding their carbon emission allotment on flights to and from Europe beginning January 1, 2012. The article quotes one analyst who predicts the law will cost U.S. carriers $3.1 billion from 2012 to 2020. Where is that money going to come from? You and me. We’re now used to fuel surcharges, so why not throw a carbon footprint surcharge in the mix, too? Ugh.
• Curious to know what hotel rates look like in major North American markets between now and the end of February? Check out this summary showing the lowest and median prices for stays in three-, four- and five-star properties. Chicago, Las Vegas and Toronto have the most economical rates for three- and four-star properties. For those with deep pockets, the median rate for the Ritz Carlton Battery Park in New York is $1,023.88 per night in December.
• Airline transactions processed through the Airlines Reporting Corporation (ARC) were basically flat last month from the large travel agencies serving major corporations (e.g., American Express, Carlson Wagonlit, Omega World Travel), while tickets processed dropped for the second consecutive month from online travel agencies (OTAs) such as Expedia, Travelocity and Priceline.
• The FAA issued a final rule this week covering airline pilot flight times and rest periods. Now instead of eight hours between duty shifts, there will be a minimum 10-hour period with eight of those required to be in a hotel room. Duty times for single cockpit crews will be capped at 14-hours, but can still be extended two hours should delays strike. The new rules don’t apply to cargo operators and UPS pilots sued the FAA on Thursday for inclusion.
• Spirit Airlines reportedly made $50 million in its first year charging customers who have a carry-on bag that won’t fit underneath the seat in front of them. The fee is currently set at $30 per bag if you schedule it online in advance, $35 during online check-in or $40 if handled at the airport.
• British Airways may eventually see competition for its all-Business Class London City to New York Kennedy Airbus A318 service. A previously unnamed buyer of 10 Bombardier C-Series passenger jets has come forward saying they hope to begin similar service to New York and other locations. Named Odyssey Airlines, the carrier claims they’ll be able to fly nonstop versus the one-stop refueling British Airways currently has to do in Ireland on westbound flights. The carrier isn’t expected to get off the ground until 2014, if at all.

Here’s an absolutely spectacular video showing a Cathay Pacific Airbus A330 performing its “slow flight” capabilities. Part of any pilot’s flight training requires mastery of this maneuver – the point at which an aircraft remains ever so slightly above stall speed and is still able to fly. It’s normally done at very high altitudes to allow a student pilot to get the exact feel of how the manipulation of aircraft controls allows such a flight situation.

I trained on Cessna 172s and loved doing this maneuver. Well… not the first few times when I failed and upchucked breakfast when I stalled the aircraft and spun towards the ground. (Side personal note: I’ve never been able to eat cantaloupe since.) One time, wind conditions were strong enough where I was able to slow the aircraft, pitch the nose and fly backwards when looking at the ground. Pretty cool.

Anyway, here’s the video… the weather conditions in the video appear “safe” enough to attempt what they did so close to the ground, but if I were the PIC – pilot in command – I would never have approved such an attempt.

Special thanks to my BFF Eric for sending me this video.

Eastern Airlines pioneered the air shuttle concept in 1961 with hourly service from New York’s La Guardia airport to both Washington National and Boston. It was operated with Lockheed Constellations way back then and eventually included widebodies at peak times in the 1980s.

In 1989, Donald Trump bought the Air-Shuttle service and operated it for a short time. It eventually merged into USAir, now US Airways, and both they and Delta Air Lines currently operate hourly service in those markets.

Here’s the Eastern Airbus A300 B2 used on Air-Shuttle flights seating a total of 265 coach passengers. These flights were no-frills and didn’t even allow for advance seat assignments. No big deal, really, given they were short-haul routes. I’d definitely be in a window seat and would try for rows three, four, 14 or 15 (those last two for a view of the engine).

Where would you sit?

Here’s an incredible video showing how flight paths might be arranged in the future. The Institution of Mechanical Engineers in the UK proposes that aircraft enroute to their destinations fly as if they were a flock of birds in a V-shaped formation to reduce drag and improve lift.

The organization states flying in such a pattern could save airlines 12% on their fuel costs, as well as reduce emissions of greenhouse gasses by 25%. They continue:

It’s conceptionally appealing and an efficient formation, but current ATC system constraints could never handle such a pattern. If we eventually move to GPS and satellite-based technology, this indeed could become a reality. As far as the aircraft shown in the video, I’d much prefer Airbus’ forward-looking aircraft design with greater outward visibility as shown in the video below the following.

I hope I’m still around when such a flying format becomes reality. The aviation geek in me would fully sprout and I’d love to be in the third or fourth spot in such a pattern for the photo opportunities.

Last month a story was leaked claiming United Airlines will be placing a major order for narrowbody aircraft early next year. Industry analysts predict it will be for up to 200 aircraft in what would equate to a list price deal of approximately $18 billion. The article also notes Boeing and Airbus will be pitted against each other as is a common theme these days, with American Airlines recently splitting their major aircraft acquisition purchase between the two manufacturers.

Today I attended the United Family Day event in San Francisco (full review forthcoming), but feel compelled to post about my conversation with Captain Andy, an A319/320 pilot. While I was waiting for the airplane pull event – groups of about 25 people who literally pull a rope attached to the nosewheel to tug an A320 a designated distance by sheer manpower – I introduced myself to Captain Andy and had a pleasant chat.

I asked him what he thought about the new “rule” that pilots will be required to allow autopilot handle recovery during windshear or significant wind gusts and he replied, “it’s just a suggestion.” He mentioned A319s are easier to land as they don’t float as much as A320s when very close to touchdown. Then he said, “we’ll be ordering A321neos to eventually replace the 757s and they’ll have greater sized winglets than those seen on the A319/A320s.” WOW! That’s big news and he was certainly confident in revealing it.

So, I suppose you could file this under speculation, but as he’s the Chief Pilot in San Francisco I tend to take his word. I further asked, “Do they have the range and fuel capacity needed to replace the 757?” His answer was “yes” and I asked because I recently posted that US Airways was in discussion with Airbus as they were concerned A321s wouldn’t be able to match 757 performance. United must feel confident and Airbus obviously has come through.

Given this conversation, I think we might hear of a firm purchase announcement from United sooner than the new year. Here are a couple of pictures from today’s event to tide you over until I write up a full review.

In other airline, hotel and travel industry news this week…

• All Nippon Airways (ANA) took delivery of its first Boeing 787 this week and it flew to Tokyo’s Haneda Airport on Wednesday. Regularly scheduled service doesn’t begin until November 1^st, but the carrier plans to fly a charter flight from Narita to Hong Kong on October 26^th. The Dreamliner will be seen initially flying regionally with long-haul service from Tokyo to Frankfurt beginning in January 2012.
• Lufthansa has ordered two additional Airbus A380s and 10 other aircraft in a deal that carries a list price of about $1.3 billion. The carrier says the increased capacity is necessary for “short-term requirements.” The other additions are one A330-300, four A320s for regional intra-Europe flying and five Embraer 195 regional jets. Once delivered, Lufty will have a fleet of 17 A380s.
• The Air Line Pilots Association at United Airlines sued the carrier claiming pilots weren’t given enough time to learn, train and implement a new procedure when a jet is caught in a strong wind gust. The procedure in question is currently used at Continental Airlines and requires pilots to let the autopilot make the necessary adjustments vs. pilots taking control in those instances. Courts ruled with the airline allowing the changes to go ahead. Something tells me, though, that pilots against the change might disobey procedure and take over control of the airplane. Just a hunch as it’s something I might do.
• Courts also sided with US Airways this week forcing pilots to quit engaging in work slowdowns that have caused delays and cancellations impacting the carrier’s ability to handle reaccommodation of passengers. When the suit was filed, the US Airline Pilots Association claimed the carrier’s allegations were “categorically false” and instead said they were performing a “safety campaign.” The judge disagreed after reviewing the evidence and issued an injunction against the union.
• Many hotels require you to cancel a reservation by 6pm the day of arrival, or some even 24- to 48-hours out. It’s nothing new, but one hotel in Packwood, WA has a vague policy stating, “If Manager is able to re-sell Guest’s dates at net rates of at least equal to those charged to Guest, Manager will refund Guest’s Use Fee less a Re-Booking fee as specified by Manager.” Chris Elliott thinks hotels might adopt airline-like rebooking fees on some rates in addition to the already existing non-refundable ones. It’s an interesting concept where hotels could create a new revenue stream, but I don’t think it will catch on.
• Hilton HHonors revealed its fourth quarter promotion offering either double points or a free night certificate after four qualifying stays or 10 nights. Registration is required for stays between October 1^st and December 31^st this year. The list of non-qualifying properties is lengthy and includes two I have bookings at in October. As such, I signed up for the double miles since it wouldn’t pay off to do a couple of mattress runs just to get a free night.
• Even with the current economic downturn, it’s being reported business travelers are returning to booking premium cabins on airlines. Corporate travel managers saw a five percent increase this year in North American companies that allow premium-class travel. 56% of companies here have such a policy, with 46% of European firms, up from 34% last year. I always feel fortunate to get a complimentary upgrade on United’s A319 fleet with only 8 seats in First Class, but my luck might change should these figures continue to rise.
• Finally, Virgin Atlantic was fined $25,000 by the U.S. Department of Transportation for violating the rules for advertising taxes and fees clearly. They found the carrier, “displayed internet ads that did not provide direct access to information on taxes and fees that were in addition to the base fare.” If you clicked on the ad, the fees were there, but fairly well hidden in the fine print. This will all change come January next year, though, as all advertised prices will be required to include the fees.

In other airline, hotel & travel industry news this week…

• Analysts expect United Airlines to place a major aircraft order early next year for as many as 200 narrowbody aircraft, possibly splitting it up between Airbus and Boeing. In a much better financial position for such a large order than American, I would anticipate these new birds would eventually replace the 757 fleet and oldest A319 and A320s. Separately, United’s old world headquarters in Elk Grove Village, IL remains up for sale with no takers for the past two years. One real estate agent claims no corporation wants such a sprawling campus anymore and cites a changing workplace that desires “open, lots of light in a cubed environment.” Actually, that’s exactly what those buildings have. I worked in two of the buildings and while there are offices, the majority of the layout is open & light filled.
• For severe delays, United has historically sent a proactive email with compensation choices, but easyJet in Europe is taking a remarkably different approach. Here, if you’ve paid for the full ‘Flexi fare’ ticket and your flight is delayed more than 15 minutes, you’ll get a free ticket anywhere the carrier flies. Pretty generous, although their route network only goes so far as it’s more of an intra-Europe Southwest-style airline.
• Additional consumer protection rules for airline advertising will begin January 24, 2012 whereby airlines will be required to display advertised prices inclusive of all taxes and fees. Allegiant, Southwest and Spirit challenged the Department of Transportation claiming it would create an undue burden on internal systems and create confusion in the minds of travelers. Their motion for a stay was denied. Also coming in January will be the free 24-hour hold or cancellation policy for carriers who don’t have it today, notification on e-ticket receipts spelling out baggage allowances and fees, and a rule prohibiting post-purchase increases in airfares.
• Good and bad news for Qantas this week. The carrier announced it will begin offering in-flight internet on their flagship Airbus A380 aircraft early next year on a trial basis. Qantas’ former CEO John Borghetti promised onboard Wi-Fi back in 2007 for the superjumbo, which will also include internet and email access via the seat-back screens. For the bad news, Qantas experienced two days of strikes this past week by ground staff forcing them to cancel 30 flights on Tuesday and a few on Friday. Other flights were delayed anywhere from 10 minutes to an hour.
• Delta Air Lines and Virgin Australia’s codeshare agreement has won approval to officially begin selling each other’s flights on a limited amount of routes, extend lounge access to members of both frequent flyer programs and co-locate operations. In Los Angeles, V Australia flights will now arrive and depart from Delta’s Terminal 5 at LAX, which will undergo a renovation during the next several years. Delta is looking to modernize the terminal, lounge and boarding gates and will cover nearly $12 million in costs of the overall $229 million terminal refresh.
• Finally, American keeps losing battles in court with regard to restricting Online Travel Agencies from selling the carriers flight unless they adopt a direct connect system to bypass GDSs. This week an appellate court ruled American must allow Orbitz to sell the carrier’s flight as “Customers searching for travel packages want to book the flights they find.” Separately, a court date has finally been set to hear the arguments between American Airlines and Sabre where the airline alleges the GDS sponsored a boycott of the carrier and other anticompetitive practices. Both sides will present their cases beginning June 13, 2012.

In other airline, hotel and travel industry news this week…

• Delta Air Lines will be laying off 200 employees, the majority of which from their headquarters in Atlanta. This combined with another 2,000 employees taking voluntary buyouts, the airline claims soft demand, fuel prices and reduced capacity make the workforce reductions necessary.
• Engineers at Qantas have proceeded with one-hour work stoppages causing 17 flights to be delayed or cancelled this past Monday. Brisbane was the first city where the mini-strikes were held, with Adelaide, Sydney and Melbourne planned to follow. I didn’t, however, read of any other cancellations or delays for the rest of the week. As they should, the carrier is refusing to pay engineers overtime pay for the planned hour work stoppage. Come on unions… stop being so childish.
• The first Boeing 747-8 in Lufthansa colors rolled out of the Boeing paint shop. She’s a sexy bird in my opinion and I’ll look forward to booking a trip on it as the 747 is still my favorite airplane. Lufty ordered a total of 20 of the now longest passenger jet in the world and will begin taking delivery of them next spring.
• The first Disney property opened in Hawaii last week on the western side of Oahu about 25 miles from resort heavy Waikiki. Obviously catering to families, the price point for the Aulani resort is pretty steep with the lowest rates in October being $549 per night for a single as compared to the nearby JW Marriott Ihilani resort of $269 to $459 per night. The first ever teen-only spa at the property features frozen yogurt, Xbox Kinect fitness activites and even manicures and pedicures.
• While American Airlines and Sabre have extended their content agreement, the carrier filed a new complaint with the courts alleging the GDS “organized an unlawful group boycott against American.” The papers are heavily redacted, so there’s no publicly available detail into exactly what that supposed boycott entailed. No court date has been set for the original complaint that claims Sabre biased fares, blocked direct connect abilities and raised booking fees among other items.
• U.S. Homeland Security Secretary Janet Napolitano claims we’ll eventually be able to leave our shoes on here in America when passing through security. Many news outlets jumped on the story and I’m afraid some of them made it sound like it would be happening very soon. The original plan was to have a shoe scanner system in airports by 2015, but no decision has been made as to whether or not they’ll proceed with that technology.
• The U.S. Transportation Security Adminisration will be continuing full speed ahead with the Federal Air Marshal (FAM) and federal flight deck officer programs (FFDO). While no actual threats have been averted due to the programs, the TSA claims both are “success stories” and part of the “nation’s multi-layered approach to transportation security.” I’m all for the volunteer pilots who carry weapons, but think it should be extended to international flights. Restrictions by foreign countries prohibit the practice.
• US Airways is in talks with Airbus to see if the A321neo (new engine option) could be modified to become the replacement for the carrier’s aging 757 fleet. Currently, the A321 doesn’t have the range, power and fuel capacity for some of the carrier’s longest haul markets such as Phoenix-Honolulu, Charlotte-Dublin and Philadephia-Lisbon.

As widely reported, American Airlines announced an industry record aircraft order yesterday for 460 jets spread across Boeing and Airbus. American’s tweets came alive in the morning and I clicked through one and watched part of the live stream from a Dallas Admirals Club where American’s Chairman & CEO Gerard Arpey made the formal announcement with Airbus & Boeing executives flanking his sides. The carrier will introduce Airbus A319 and A321 aircraft beginning in 2013 along with adding additional next generation Boeing 737s to their fleet. In addition to eliminating MD80s, the eventual retirement of American’s 757s and 767-200s was also mentioned, and for a more descriptive breakdown of the order, check out AAdvantageGeek’s posting today.

Also yesterday, American announced a $286 million loss for the second quarter of 2011, worse than analysts had anticipated and an unfavorable signal pointing to dismal full year results. According to an article by Terry Maxon appearing in the Los Angeles Times on July 1st, airline analysts claim AMR Corporation “will lose more than $600 million in 2011 and more than $100 million next year.” This while Delta and United are predicted to post profits of $1.2 & $1.3 billion respectively this year, with both carriers likely earning $1.7 billion in 2012. How long can American continue to hemorrhage money like this? No wonder they were first at bat in the attempt to shake up the distribution model whose annual expense for an airline is near the top after direct operating costs.

Next up, the Irish Times reported yesterday that American is planning to close its Dublin Ireland reservations center where approximately 130 employees currently man the facility that has been around for the past 15 years. The carrier informed the Irish Communication Workers Union and is now in “a period of consultation to discuss a proposal to outsource the work to an offshore location.” No disrespect, but I’m hoping offshore from Ireland means those jobs will come back to the U.S.

Finally, according to the British Union for the Abolition of Vivisection (BUAV), American Airlines has clarified its policy on transporting non-human primates (monkeys) to outright ban the acceptance of such animals intended for “laboratory research, experimentation or exploitation purposes.” Very welcome news and how sad to think that some airlines still accept monkeys for this purpose. Only one U.S. airline remains on BUAV’s list of carriers that “do or would” fly primates destined for the research industry. Eh hem… paging Continental Airlines. I will follow up this post with a direct inquiry to United to see if they’re even aware Continental is on the list.