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Notable Airline, Hotel and Travel News: February 11, 2013

Notable Airline, Hotel and Travel News: February 5, 2013

Notable Airline, Hotel and Travel News: February 1, 2013

Posted by Darren | 3 Comments

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

  • The Department of Transportation’s Bureau of Transportation Statistics released 2011 full-year data for a variety of airline metrics last week. Among them are several positive results when compared to 2010 and previous years, including the best on-time results in a December for the past 17 years, a record low rate of mishandled bags and fewer flights where passengers were involuntarily denied boarding. Complaints, however, were up 3% likely due to airlines reducing capacity causing packed flights.
  • United Airlines is selling a hotel it has owned for decades in Waikiki to an undisclosed buyer. The Waikiki Seaside Hotel has acted as a layover property for flight crews and a popular destination for United’s employees and retirees. Having previously worked very closely with Hawaiian hotels when I managed the Hawaii market of two vacation packaging companies, my best guess is it will become a low-to-mid range property in the Aston or Outrigger chain.
  • The USA Today recently sat down with five top hotel executives discussing trends in the lodging industry. One of the hot topics discussed was internet access and whether or not to charge for the service. It’s definitely an ancillary fee many chains would hate to see end, but at the same time executives are aware of the demands from business travelers wanting it for free. Other items discussed were the new Room Key hotel search site, customer reviews, smartphone capabilities, increasing nightly rates and property refurbishments.
  • InterContinental Hotels Group (IHG) will be overhauling the Crowne Plaza brand, as well as launch a new midscale brand in the United States and a five-star offering in China. The new brand names have not been disclosed and the company was quick to note the newest U.S. incarnation appearing in the next three years will result in “minimal cannibalization” to their current midscale offering, Holiday Inn. For Crowne Plaza, IHG plans to remarket the brand as an upper scale property through upgrades or having up to 41 properties leave the chain in the next two years.
  • Air Australia, who rebranded from a primarily charter operation last November, met its death this past week. The airline suddenly went into “voluntary administration” (bankruptcy) on Friday, stranding thousands of passengers from Thailand to Honolulu. The airline bluntly released a statement saying, “It currently appears that there are no funds available to meet operational expenses so flights will be suspended immediately.”
  • Hundreds of flights were canceled at Frankfurt Airport this past Thursday and Friday due to striking apron and runway workers. The airport’s operator, Fraport, claims it will lose approximately €5 million for every day workers strike. The union is demanding pay increases of up to 70%, for which Fraport deems ridiculous. Both parties are willing to return to the negotiating table, though further industrial action may occur this week.
  • The “idiot airline traveler of the week” award goes to a man who tried to bring a loaded handgun through security at California’s Ontario International Airport. TSA officers and airport police arrested the man who claimed he forgot the weapon and additional ammunition were in his bag. He was cited and released, though was not allowed to fly to Phoenix as planned.
  • Finally, many of my BoardingArea readers will thoroughly enjoy an article that appeared in the USA Today on Monday. It reviewed the recent oneworld MegaDo event where many mileage runners and “extreme fliers” participated in a multi-city (and country) behind-the-scenes experience. American Airlines and other oneworld alliance member airlines sponsored the event which allowed participants to meet with executives, ride in a flight simulator and slide down emergency evacuation slides at a flight attendant training center, among other things.

Posted by Darren | 3 Comments

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

  • Last year, Chicago took the top spot as being the city that charges the most taxes to travelers in the country and effective January 1, 2012, they’ve raised hotel taxes another percentage point. It brings the hotel portion on par now with New York and Las Vegas. Another article, however, states they don’t see “any move to raise taxes on the travel industry.”
  • Checks are beginning to arrive in mailboxes across the country with refunds of fees charged for using credit cards overseas. A class-action lawsuit that required filing a claim back in 2008 is finally being settled and people are getting surprises in the mail ranging from $18.04 to thousands of dollars. I quite honestly don’t remember if I filed a claim. I hope so, because the travel period was from February 1, 1996 through November 8, 2006 and I was overseas quite a bit during those 10 years. Were you?
  • The Department of Transportation extended the deadline for airlines to advertise fares inclusive of taxes and fees by two days. Now effective January 26th, American Airlines requested the delay since they claimed Tuesdays are the busiest day of the week for their website and the previous January 24th requirement would have been too burdensome. No other airlines objected.
  • Boeing orders are up 52% this year compared to last, in part due to a record-setting year for the 777. The manufacturer delivered 477 aircraft in 2011, but has a backlog of 3,771 unfilled orders. President and CEO Jim Albaugh stated, “As our current commitments become firm orders and we add even more customers, I have no doubt that 2012 will be the ‘Year of the 737 MAX’.”
  • A subsidiary of Delta Air Lines, MLT Vacations, is now the travel wholesaler selling Air France Holidays and Alitalia Vacations. They also run the Delta Vacations brand. Vacation packagers receive bulk fare contracts from airlines, hotels and other travel providers and then combine them to sell complete vacations at a price cheaper than what you’d be able to book individually with each unit. I worked for a couple of these outfits in the 1990s and really enjoyed a unique side of the industry not known by many.
  • Online retailer Overstock.com launched a travel page on their popular website. Powered by Priceline, you can book complete vacation packages or individual air, car and hotel reservations. It really acts like a portal, though, because as soon as you enter any type of search criteria, it redirects you to Priceline.
  • On January 1st, the former Las Vegas Hilton rebranded as The Las Vegas Hotel & Casino, ending its more than 40 years as a chain hotel. This past Tuesday, workers removed the Hilton logo from the side of the building.
  • GDS firm Travelport modified their planned re-pricing of certain functionality within Apollo, Galileo and Worldspan that would have cost travel agencies approximately $35 per month per terminal. Not unlike airlines, the company unbundled several integral features of the systems that were once free and wanted to start charging for those services. After backlash from agency groups, they relented and modified their planned changes.
  • Finally, a proposal for a third runway at Hong Kong’s airport has been submitted to the government for consideration. Cathay Pacific and Dragonair, as well as the Association of Asia Pacific Airlines, backed a study supporting the expansion to keep Hong Kong as “the regional and international leading aviation center.”

Posted by Darren | 4 Comments

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

  • United Airlines announced they will add a segment onto the existing Washington Dulles to Dubai flight and continue to Doha, Qatar beginning May 1, 2012. The news release claims the flights will be operated with United’s International Premium Travel Experience Boeing 777s, but there’s still always a risk of getting an unconverted bird until all 777s have been refitted.
  • American Eagle has been selected by the U.S. Department of Transportation to begin daily service from Chicago O’Hare to both Sioux City and Waterloo, Iowa. It’s a part of the Essential Air Service program where the government subsidizes airlines to serve certain routes to smaller communities that would otherwise be unprofitable to fly. The carrier is planning to begin flights next spring using Embraer regional jets.
  • Virgin America’s size will now warrant the carrier to report on-time data for its flights to the DOT in 2012. ExpressJet Airlines will also be required to do the same, but they’ve been doing so voluntarily this year. Meanwhile, Atlantic Southeast and Mesa no longer have to report the stats, but Mesa says they’ll continue to report on a voluntary basis.
  • The International Air Transport Association (IATA) lowered its 2012 profit forecast for global airlines by nearly 29% this week. European carriers are expected to lose a collective $600 million next year in part due to the meltdown of the Euro. Carriers in North America are expected to post $2.1 billion in profits.
  • Airlines are asking the DOT to delay part of the new passenger protection rules that are scheduled to take effect January 24, 2012. Many carriers issued sworn affidavits saying they need at least another year to comply with the rule related to baggage fees and allowances on multi-carrier itineraries. Current system constraints and the inability to access a passenger’s previous flight from another carrier on the same itinerary are causing the headaches for IT staff.
  • The Australian Labor Party is backing Qantas unions in their desire to keep the airline Australian-owned and controlled. Legislation is being considered to strengthen the Qantas Sales Act that will “keep the majority ownership, operation and governance of (Australian) airlines in Australia.” A carrier spokeswoman warned, “Any proposed plans to change the act that restricts Qantas from doing business will not protect Australian jobs.”
  • Expedia and United Airlines have extended their agreement for another multi-year term. While not confirmed, the news blurb about it sounds like Expedia might soon be able to sell Economy Plus seats and other ancillary products. One of Expedia’s brands, Travelscape, is the current provider of hotel listings on United.com.

Posted by Darren | No Comments

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

  • EVA Airways has come out and acknowledged they are “in aggressive talks” to join either the oneworld or Star Alliance by 2013. Here in the U.S. they fly to Anchorage, Seattle, San Francisco, Los Angeles and New York’s JFK. To me, Star seems more fitting with United Airlines’ stellar connection opportunities from LAX, SFO and SEA. American would have a slight advantage at JFK, but I feel the West coast presence would be the biggest draw. They also have a huge presence in China with service to 25 cities via their Taipei hub. It’s gotta be Star.
  • The U.S. Department of Transportation is keeping a close eye on airlines and their social media outreach on Twitter. Current rules requiring tax and fee disclosures must be adhered to even with the 140-character limit. Airlines must link any tweets with airfare advertisements to “a place on a separate screen where the nature and amount of taxes and fees are prominently and immediately displayed.” Come January 24, 2012, all-in fares inclusive of all taxes and mandatory fees will be required on all advertising, no matter the medium.
  • The DOT also this week granted antitrust immunity to American Airlines and Qantas. Both carriers can now set prices, schedule flights and provide enhanced benefits, connections and other services to travelers between the U.S. and Australia. An interesting tidbit from the article reveals that Qantas holds a 40% share of the U.S.-Australia market, followed by United Airlines & Air New Zealand holding 27% and Delta Air Lines and V Australia with 22%.
  • AAdvantage geek was first to report that American Airlines introduced new Flagship Check-in at Los Angeles International Airport with a rather hilarious “illustration” of the new layout at LAX. It’s available to Concierge Key, paid First Class and those who buy American’s Five-Star Service travel assistance. I have a feeling I’ll try it out for a couple of reasons. One, I love the elitist experience (yes, I’m that shallow) and two, just to review it for my blog.
  • American also expanded their agreement with the Transportation Security Administration and the trusted traveler program with the inclusion of additional airports. Las Vegas McCarran, Los Angeles International and Minneapolis-Saint Paul airports will be included next month in the test program to expedite “vetted” travelers through security. I received an invitation, but will pass since I’m gung-ho on achieving United million-miler status next year and won’t be flying American with any regularity.
  • American also launched an aggressive new television campaign with online contests and more, but I came across a neat non-contest ad featuring one of my favorite actors, Kevin Spacey. There are three new ads starring Mr. Spacey that highlight the “philosophy of understanding the individual flyer.” Here’s one of them:
YouTube Preview Image
  • Global Distribution Systems are a hot topic in the airline industry this year with American being the forefront challenger of their traditional booking methodology. Those issues aside, GDSs are making bank and two of them this week reported stellar third quarter results. Amadeus posted a net income of €136.8 million, or approximately $186.4 million, and Travelport (Apollo, Worldspan & Galileo) enjoyed a $51 million net income this past quarter. Not too shabby.
  • Finally, Asiana Airlines is reporting it will expand its long-haul routes and desires to become a world top-10 carrier in revenue and profit by 2015. A Star Alliance carrier, Asiana will take delivery of its first Airbus A380 in 2014 that will be used on Seoul to U.S.A. routes. I’m certainly saving some of my miles for an opportunity to ride on an OZ A380 and hope they don’t restrict award space on that bird in premium cabins as so many other carriers do. Separately, I’m flying Asiana in First and Business Class later this month, so look for a trip report soon.

Posted by Darren | 4 Comments

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

  • United Airlines CEO Jeff Smisek claims he doesn’t see any signs of an “imminent recession” when looking at advance bookings. A combination of capacity discipline and fare increases has kept the carrier in the black. Smisek remarked, “We’re not seeing it in our bookings [or] in our business travel,” as he told reporters after a speech at the Executives’ Club of Chicago. At the same conference he told reporters, “It’s easy to talk culture; it’s hard to walk it,” referring to the turbulence in challenges of merging two carriers and their respective unions. Captain Wendy Morse, chairwoman of the United Master Executive Council of the Air Line Pilots Association (ALPA) claims, “We will not stand by silently while United CEO Jeffrey Smisek inaccurately proclaims that the United-Continental merger is going along smoothly.”
  • American Airlines, on the other hand, fears a double-dip downturn in the economy. They’ve further cut capacity this year and will retire 11 Boeing 757s. Eight times the normal amount of pilot retirements also occurred in August and September this year contributing to some of the capacity cuts. It’s rumored pilots are bailing early to ensure they receive advantageous pension plans, and one post also claims it’s due to the raise in mandatory retirement age from 60 to 65.
  • Want to know more about mileage runners? Check out this amazing article that appeared this week on Fox News. BoardingArea’s founder Randy Petersen was interviewed for the article as would be expected since I consider him the “God” of frequent flyer programs. Here’s a teaser – “Would you ever fly around the world in 48-hours, or fly through Detroit eight times in a single trip just to get air miles?” We’re a unique bunch, but very passionate about why we do it.
  • A woman has sued United-Continental (and regional airlines Colgan Air and Pinnacle Airlines) claiming post-traumatic stress disorder from a flight she was on that experienced ‘extreme turbulence.’ The flight from College Station, Texas to Houston was operated by Colgan Air, which does business as Continental Connection. File this under ridiculous and the far too often litigiousness some people have thinking an opportunity has opened up. Shame on the lawyers for taking such a ridiculous case. Money, money, money rules, though.
  • Hotels in the United States posted impressive financials this summer. It has been reported, “U.S. hotel demand during the summer was higher than STR forecasted. Demand for the three months ended August 31 increased 4.2% from a year earlier, while revenue was up 8.1% to $31.2 billion.” Overall occupancy at hotels rose 3.5% and the average daily room rate similarly increased by 3.7%. No economic downturn signals this summer from the hotels.
  • The U.S. Department of Transportation is looking to ensure passengers with disabilities have equal access to booking and checking-in with airlines. “Currently, the nation’s air carriers fail to use updated, accessible technology on the internet and at the airport, openly discriminating against the blind.” As such, the DOT is proposing regulations that will amend the Air Carrier Access Act to include provisions that will allow sight-impaired people to access web-only sale airfars, as well as include Braille instructions on check-in kiosks. I have a feeling the proposals will pass… it’s about time.
  • More woes for travelers in Australia this week with Qantas cancelling or delaying flights due to labor unrest, Jetstar check-in agents taking “industrial action” by self-waiving excess baggage fees for 24-hours and Customs and Border Protection staff taking similar “industrial action,” by striking this past Thursday. The Australian Prime Minister is close to stepping in requiring Qantas and their unions to re-open discussions. It’s pretty unstable in Oz right now, in some cases benefiting passengers and in some cases not.

Posted by Darren | 2 Comments

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 1st, but the carrier plans to fly a charter flight from Narita to Hong Kong on October 26th. 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 1st and December 31st 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.

Posted by Darren | No Comments

The Department of Transportation has been taking a much more active interest in how airlines sell tickets and deal with passengers during delays and cancellations. The next round of passenger protections goes live January 24, 2012 and will require airlines to advertise all-in prices inclusive of taxes and fees, allow 24-hour holds or refunds and clearly identify baggage fees on itinerary receipts. George Hobica, founder of Airfarewatchdog.com, wrote an article last week for USA Today spelling out 12 regulations he’d like to see introduced and further discussed them with Peter Greenberg, a popular travel industry reporter, analyst and TV personality.

I fully respect George and actively follow his website via Twitter, where they often are first to report amazing airfare deals when airlines publish sale fares. I will, however, take issue with a few of his desired passenger protections from that USA Today article.

First up, he’d like to require that airlines protect you at their cost on another airline if a schedule change occurs pre-travel that no longer fits your schedule. The current policy offers a full refund or finds alternate flights on the same carrier. In my experience, most schedule changes are done more than 60 days from departure and are typically minor, being a matter of a few minutes in time change or a swap to a different aircraft type.

For those that are significant, which is what he’s referring to, a schedule change can cause a nonstop to become a connection or possibly even be as severe as an outright discontinuation of service to a city. George claims these most severe schedule changes will “force you to buy a much more expensive last minute fare on another airline.” Again, since these are generally done with a decent lead-time, there are usually acceptable options from which to choose alternate flights on the same carrier and if not, a refund is still acceptable. A DOT rule requiring rebooking on another carrier just isn’t going to happen.

Then, in the case where a carrier goes from daily service to, say, five times weekly, he’s calling for the airline to pay any additional costs the passenger would be forced to pay, such as hotel nights, extra car rental days and meals. Here, the carrier would likely have other flights from which to get you out the same day and if not, then I still agree with a full refund versus covering costs or booking you on another carrier. All passengers are bound by the airline’s contract of carriage when buying tickets, and those rules spell out what is done in the case of schedule changes. No, I don’t read the contract as I doubt any person really does, but the DOT would not create a passenger protection calling for reimbursement of expenses in these instances and instead agree with a full refund as exists today.

Another rule he’d like to see implemented that I disagree with might likely bring me some hate email. He’s proposing airlines add in one or two rows in economy with extra wide seats to accommodate passengers of size. Currently, they have two options: buy an extra economy seat or upgrade into a premium class. I think that’s fair since the cost for what he’s proposing would far exceed the limited amount of time such seats would be necessary. Airlines should not have to plan for passenger-unique contingencies when other options are currently available on every flight. Not going to happen.

Next, he’s calling for airlines to refund taxes paid on a non-refundable ticket if the passenger cancels the flight. Usually here you’re dinged a $150 fee and the residual value can be applied to a new flight. That’s pretty generous in my opinion. He used the example of buying something at Sears and then returning it mentioning they would refund the full amount, including sales tax. Apples to oranges here. What if that Sears item was labeled “no refunds, no returns,” as is the case for non-refundable fares. The airline seems pretty generous in this case, doesn’t it? I’d say returnable consumer items equate more to a refundable airfare on an airline.

Other items he mentions are worth their merit and I suggest you read the article in its entirety. Finally, I’ll nit pick over some of the comments made in Peter Greenberg’s article. I like Peter, but many road warriors know his tips and suggestions are aimed at the very basic occasional traveler.

His recent travels on United Airlines caused him angst when they called, “Global Services members followed by our Premier Executives, followed by our 1K, followed by our Premier, followed by our Gold, followed by Silver, groups 1, 2, 3, 4, 5” for boarding. Ugh. Maybe I’m being anal about this, but his order is incorrect. His status levels are out of place and some have been combined, plus there’s no group five. Anyway, his complaint is over how many different groups there are to board and calls for a simpler system.

George chimes in saying the “premiere flyers are clogging up the aisles for the people in the back of the plane.” No we’re not. We’re the expert flyers getting our bags in the overhead first and settling into our seats quickly. Peter wants us to board last claiming, “why would (elites) want to get on the plane early just to watch everybody board the plane?” Because we want the overhead space. We fly more than once or twice a year and are far more efficient when it comes to every activity at the airport from clearing security to boarding an airplane.

I’ll stop now, but I generally cringe when some of these articles appear and feel compelled to rebut them. George means well and I really do respect his experience and website. I just wish a bit more realism came with his suggestions, since he knows full well the constraints airlines are under and realistically what the DOT can accomplish. Am I being too harsh, or do you agree?

Posted by Darren | 6 Comments

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.

Posted by Darren | No Comments

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

  • Google launched a much-criticized Flight Search feature this week. Limited to airfare searches for travel within the United States, this is definitely just a teaser as confirmed by Google’s Inside Search blog where the company states, “This is just an early look, not the final destination.” The highly critical industry followers were expecting a fully functional Googled version of ITA Software, and while I agree with their reviews, I’m certain this is beta version for which the company will now get earfuls of “free” testing data and advice. I’ll make a separate posting in the future comparing it against what I’ve seen of Everbread’s Haystack.
  • Funding for the FAA has been given a stay of execution once again, now until January 31, 2012. This is the 22nd “temporary” extension for the administration, if you can call more than four years temporary. Labor rules, subsidies, airport slot issues and even arguments over bike paths and walking trails in the bigger-picture transportation bill will have to be dealt with in the coming months. Even with the 2012 elections becoming the focus in Washington, I hope both sides take heart and draft long-term funding as transportation and aviation interest groups have been urging.
  • I need to begin a trip originating at London’s Heathrow Airport soon to try out their new “laser-guided travel pods” that whisk travelers from the parking garage – sorry, car park – to the destination (terminal) of choice. Braniff envisioned something like this back in the 1960s assuming it would be available by 1975 (humorously). If Heathrow could get these pods to whisk you between terminals for connecting flights, now that would really be something.
  • Do you use hotel safes? You know, the in-room ones where you select your own numeric code? I do, but will certainly be sure to test out whether or not it has a default password as demonstrated in this short video clip. Most do, I’m sure, but I don’t think it should be as obvious as 0000.
  • The one-hour work stoppages by engineers at Qantas have been bad enough, but now 3,800 baggage handlers and other ground staff are planning a four hour strike this coming Tuesday September 20, 2011. Qantas will reportedly swap in larger aircraft on some routes in an attempt to more quickly reaccommodate passengers whose flights have cancelled. Here the unions are asking for five percent annual pay raises for the next three years, as well as job security entitlement.
  • The Department of Transportation fining airlines isn’t anything new, especially for the easiest breach requiring them, for example, to disclose that the “United” flight you’re on from Los Angeles to Reno is actually operated by Skywest Airlines. In a first for the Global Distribution System industry, the DOT has fined Amadeus $95,000 for failing to follow through with travel agencies to ensure their software correctly displayed these codeshare flights. Transportation Secretary Ray LaHood states, “We expect all companies that sell or facilitate the sale of air transportation – airlines, travel agents and GDSs alike – to comply with the laws we enforce.”

Posted by Darren | No Comments

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