In other airline industry news this week…

• Air New Zealand was named Airline of the Year by Air Transport World Magazine as part of its 38^th Airline Industry Achievement Awards. ATW bestowed the honor to NZ due to “industry-leading innovation and motivation of its staff which resulted in exceptional performance across market position, customer service, financial performance, fiscal management and operational safety.” The only U.S. carrier to receive an award was Alaska Airlines – the Joseph S. Murphy Industry Service Award – for service benefitting the airline industry and being involved in numerous environmental and corporate-giving initiatives.
• United Airlines, read Continental Airlines, received a lot of heat this week for their numerous amount of flights from Europe to the East coast that have recently required fuel stops due to unusually strong headwinds. The Wall Street Journal reports that United confirmed 43 flights operated with Boeing 757 aircraft had to stop for fuel last month due to the winds and limited range of the aircraft, up sharply from 12 the year earlier. That caused delays and misconnections for thousands of passengers and brought using the limited range jet into question. To the airline’s credit, though, the headwinds are the most extreme they’ve seen in the past 10 years.
• American Airlines will cut their Chicago-New Delhi nonstop March 1^st and totally withdraw from Burbank effective February 9^th, as well as lay off 150 employees citing “operational and business changes” resulting from its bankruptcy filing. The carrier is also hoping to delay their lawsuit against Sabre, a GDS, by three months while it focuses on reorganization. The still separate regional entity American Eagle, meanwhile, has hired Bain & Co. – to the tune of $525,000 per month – to assist in labor-cost assessment and negotiations.
• Tony Webber, a former Qantas executive, has boldly come out and proclaimed, “People weighing more than average should pay more for their airfares than slimmer passengers.” Ouch. He claims the extra fuel needed comes out to about $472 per plane and is affecting the airlines’ profits. As it stands, the airlines have an average weight they predict per passenger and while I don’t remember the figure from my days in Flight Dispatch with United Airlines, I do recall it being awfully low. Instead of an airfare increase, airlines need to up their average passenger weights and adjust their loads accordingly. Would you step on a scale at an airport?
• Horrible airplane etiquette continues in 2012 with a 65-year old man having been arrested for allegedly assaulting a Delta Air Lines flight attendant on a Tokyo to Honolulu flight. He was forced to surrender his passport and stay on Oahu to appear at a hearing on January 20^th. His bad behavior was apparently due to over imbibing on multiple glasses of wine.
• Southwest Airlines will launch a daily flight from Atlanta to Los Angeles beginning June 10^th. This is in addition to AirTran’s existing three daily flights already in the market. Southwest officially launches service February 12^th with 15 daily nonstops to five cities: Baltimore, Chicago (MDW), Denver, Houston (HOU) and Austin. Las Vegas and Phoenix service from Atlanta commences March 10^th.
• Finally, Hawaiian Airlines set a new company record for the most passengers carried in a single year – 8,666,319 in 2011 – a 17% increase from 2010. I imagine 2012 will be another record year as the airline continues to expand on the mainland with new service to JFK beginning in June.

In other airline industry news this week…

• As I expected and not at all surprising, American, Delta, United and US Airways have added a $6 roundtrip surcharge for flights to Europe to offset the EU’s Emission Trading Scheme. United’s 767-300s that fly to Europe hold a total of 183 passengers. If it goes out full in both directions, United will collect $1,098 in surcharge fees. I haven’t looked into what type of fees airlines will pay if they go over their allocated carbon emissions, but I can’t help but wonder if this might be a new mini-profit center for them.
• In fantastically pleasurable news to myself – and many, many others – United Airlines has officially confirmed that “Rhapsody in Blue” will continue as their theme song. Phew. The tulip has wilted, but I’m happy to cling onto at least one aspect of “my” carrier that I’ve grown to love.
• Staying with United for a moment, the carrier opened up exclusive experiences via MileagePlus that allow members to bid on a variety of auctions. I blogged back in April that I’d like the option to redeem miles on once-in-a-lifetime type events and United now offers some of them, including flight simulator rides, tickets to PGA Tour events and a host of other items.
• American Airlines was officially delisted from the New York Stock Exchange this week for failing to hold a minimum share price of more than $1 for a consecutive 30 days. I remember when United suffered the same fate, but they’ve bounced back and I’m certain American will, too. Sadly, current shareholders will likely see their stake in the airline wiped out while the carrier reorganizes in bankruptcy.
• AirTran Airways was fined $60,000 for failing to include a “prominent link” in an advertisement last fall that would take a customer to a page fully detailing additional taxes and fees. These type of fines will certainly be less frequent come January 26^th when airlines will be required to advertise prices inclusive of such fees. I look forward to it, actually, as the prices we see will be all-in and represent the actual amount we have to pay.
• With their reduction of international services, about 150 Qantas pilots have taken unpaid leave. The carrier has offered the option since the 2008 financial crisis and many pilots end up accepting jobs with overseas airlines. This is total conjecture, but one of my Cathay Pacific pilots on my trip last year had an Australian accent, so now can’t help but think he might be a Qantas pilot on leave.
• Brussels Airlines, a Star Alliance member, is set to begin service to the United States on June 1, 2012. Daily flights between Brussels and New York’s JFK airport will commence at that time with two-cabin Airbus A330 aircraft, either the -200 or -300 series, according to the carrier.
• Finally, the International Air Transport Association (IATA) reported this week that the world’s airlines netted $5 billion in profits for the third quarter of 2011, down from $9.71 billion for the same period in 2010. IATA also said passenger yields continue to increase due in part to “careful capacity management, particularly in the United States.”

I follow the Australian airline industry pretty closely and one of my favorite websites to read every day is Australian Business Traveller. This week a reader asked the question, “Why does (Qantas) not want to sell me SYD-ORD via LAX on the A380?” I plugged in some sample dates on the Australian version of Qantas.com.au to find the following results for such an itinerary:

I’m only showing the first several options from the results page and as you can see, the top choices offer connections via Dallas-Ft. Worth and another through Los Angeles to eventually arrive in Chicago. Scrolling through the whole list, not one flight pairing included Qantas’ flagship A380 aircraft that flies from SYD-LAX, namely QF11. The original reader continues:

Another reader, Christopher, responded, “Conspiracy theory: they want to sell more flights on the DFW route because they’re not selling well.” It’s certainly no conspiracy theory… it’s fact. Here are the two SYD-LAX nonstops with QF11 being the A380:

Los Angeles has long been the preferred destination and/or connection point for Australians visiting the United States, and Qantas knows its load factors will be high on those two flights and that they can demand a premium for the A380. I even plugged in the same Sydney to Chicago itinerary looking to purchase a Business Class fare and the resulting options still left the A380 off.

It makes good business sense to drive as much traffic as possible onto routes where demand is softer and as the original reader notes, booking the A380 can still be done by using the multi-city booking tool at the same price. There’s nothing illegal about it and I agree with the practice.

In fact, it happened to me when I was booking my trip to Ireland next year. My preferred flight pairings were never shown online and I had to use the multi-city tool to piece my itinerary together.

This ‘screen bias,’ if you will, isn’t new to the industry. Back when GDSs were airline-owned, carriers would display their own flight pairings – American in Sabre, for example – before any other carriers’ flights would appear. When I worked at a couple of travel wholesalers in the 1990s, I was able to ascertain this bias went even deeper and the airlines had the ability to flow preferential availability to top corporate clients. Some would see seats available in the S-bucket, for example, while others wouldn’t. I have a feeling this practice still exists today.

Airline divestiture of ownership in GDSs and other governmental action has minimized such activity, but with the increase of customer-direct bookings via the web and the development of “Direct Connect” technology to bypass traditional GDSs, airlines can still divert traffic when needed.

In other airline and travel industry news last week…

• Southwest Airlines placed a monumental order for 208 Boeing 737 aircraft this week that includes 150 of the manufacturer’s newest Max version, making the carrier the official launch customer. The first delivery to Southwest won’t occur until 2017. At list prices, the order value is $19 billion and $4.7 billion for the aircraft and engines respectively.
• In addition to his new role as CEO of American Airlines, Tom Horton has been elected Chairman of the oneworld alliance this week. He offered to have another of the alliance carriers’ executives take the post, but “the unanimous view was that the alliance would benefit greatly at this time from the continuity in our leadership that Tom represents – while at the same time underlining the commitment of oneworld to American while it undergoes its restructuring.”
• Cathay Pacific opened their new lounge at San Francisco’s International Airport, the first CX-owned facility in the United States. A grand opening reception was held this past Thursday and Loyalty Traveler has a great review of it. The carrier also introduced details of its new Premium Economy Class product that will be rolled out beginning in March next year. The seats will feature 38 inches of pitch, enhanced recline, footrests, in-seat power and much more.
• Hearings for the dispute between Qantas and the pilots union won’t occur until June next year due in part to the complexity of the matter. The carrier has until March 19^th to submit key witness statements and expert evidence to the panel of “workplace umpires,” while the pilots union has to do the same by April 30^th. Other hearings will take place earlier between the carrier and baggage handler and engineer unions.
• The FAA granted certification to the passenger Boeing 747-8 Intercontinental this week, green lighting deliveries to begin early next year. Lufthansa is the launch customer for the passenger version. The FAA also approved extended operations (ETOPS) of Boeing 777s to 330-minutes, up from 240-minutes this week. This will allow carriers to fly more direct routes between airports and reduce carbon emissions.
• On the passenger front, a Frenchman was arrested this week for his excessive pilfering of items from Air France First Class cabins, which he then resold online. Among the items stolen were napkins, glasses, plates and blankets. The article claims he made about 10,000 euros off the sales of the items during the past three years. I’d be lying if I said I didn’t take a glass or two over the years, but I never resell the tiny amount of stuff I’ve taken.
• Speaking of fraud, the Airlines Reporting Corporation has seen a “marked increase” in unauthorized airline tickets issued. Last year, 18 of these incidents were reported, but the figure to-date for 2011 is 113 and those tickets are valued at more than $1 million. Phishing scams are the main culprit where travel agents receive what they think is official communication from trusted GDS companies and click the link to enter their credentials.
• Finally, staying on the GDS front, Travelport will begin charging travel agencies more for services they currently use for free. Beginning January 1^st, the company’s Agility program that allows agents to use certain client databases, PNR search capabilities, fulfillment services, queues and more will come with a $35 fee per terminal per month. Agency incentives for using GDS technology still remain, but new costs such as this are pointing to a changing landscape in the GDS-Agency relationship.

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.

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:

• 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.

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

[Edited last minute to include:] Qantas CEO Alan Joyce has taken severe action and cancelled all flights in response to continued pressure by three union groups at the airline. He states, ”They are trashing our strategy and our brand. They are deliberately destabilising the company and there is no end in sight.” Paging Prime Minister Julia Gillard… would Julia Gillard please pick up the nearest white courtesy phone.

• All the major air carriers released their third quarter 2011 financial results in the last week. Most missed analyst expectations and all cited the approximate 40% increase in jet fuel prices from the previous year’s quarter as the main reason. Starting with the winners, United Airlines – Continental Airlines posted a combined net income of $653 million, down 23% from 2010, Delta Air Lines posted a profit of $549 million, up from $366 million in 2010 and US Airways netted $95 million, down from $243 million in 2010. Not unsurprising, American Airlines posted a $162 million loss this past quarter compared to a $143 million profit in 2010.
• The Chicago Tribune recently interviewed the founder of AirplaneFood.net, Luis Ramirez, after the reporter read an announcement that American Airlines will be working with two top chefs to provide in-flight meals on some flights. In my opinion, first class meals today are the free coach meals of 1990 and it’s a favorite gripe among travelers. Not surprisingly, Ramirez’s top three carriers for meals are foreign, namely Singapore Airlines, Cathay Pacific and Emirates. His bottom three are United Airlines, US Airways and Alitalia. I particularly like his quote about United’s meals: “Uninspired, unattractive, predictable, and most importantly, lacks minimum quality.”
• Even though domestic airlines claim they’re not seeing a drop in demand in business travelers, IATA – the International Air Transport Association – points to slowing growth for premium traffic. The association reports international premium traffic growth in August slowed to 2.3%, down sharply from July’s 7.5% rate. Routes within North America declined, actually, and were down 13.2%.
• When Google Flight Search launched last month it only offered links to book a ticket on the websites of the carriers it featured. It seems they’ve had a change of heart and now show the ability to “try this search” on the major Online Travel Agency (OTA) websites. I’m sure they had a bit of pressure from the OTAs and a Google spokesperson stated, “While this is just a start, we look forward to expanding our advertising efforts with partners and to continue experimenting with different formats, placements and targeting capabilities.” I honestly haven’t been back since I gave it a rather scathing review.
• Flight diversions make for a stressful situation for passengers, but some of the stress was shared this week with workers at Abilene Regional Airport. Dense fog at Dallas-Fort Worth Airport caused seven flights to divert to the small airport, which generally never sees that much traffic. One café ended up selling out of some items and had lines 25 people deep. A kind passenger reportedly helped the café out by changing out the trash bag!

I actually had a lot more to cover from the week, including bonus mileage and point offers from airlines and hotels, but the other fine bloggers here at BoardingArea covered them nicely. As this post goes live, I’ll be listening to View From The Wing’s Gary Leff give his Award Bookings presentation at the Chicago Seminars.

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.

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

• The Transportation Security Administration has officially started a “trusted traveler” program this week. According to the TSA, “This pilot program will help assess measures designed to enhance security by placing more focus on pre-screening individuals who volunteer information about themselves prior to flying in order to potentially expedite the travel experience.” I was actually offered an invitation to participate in this program, but declined since it currently only covers domestic passengers flying out of Atlanta, Detroit, Dallas and Miami. I fully look forward to such a permanent program and will definitely apply.
• Our air traffic control system here in the United States is totally antiquated with even Jeff Smisek, CEO of United Airlines, poking jabs at it. Eventually it will be satellite-based offering efficiency unmatched by current ground radar capabilities. The $2.1 billion enhancement is still underway, but the FAA this week has stated “software problems” exist that will delay full deployment. The NextGen system was scheduled to go into effect by the end of 2012, but now won’t likely be a reality until 2014.
• Rising airfares are always a hot topic and the mainstream media is quick to note when fares increase or when airlines add additional surcharges, such as those seen around the holidays. We are still, however, paying relatively much less when looking at it from a historical perspective. A Wall Street Journal reporter notes, “Average domestic airfares, adjusted for inflation, have fallen 16% since 1995.” When demand for air travel falls, such as it did post-9/11, airfares are noticeably cheaper. There are still, of course, sales and periods of the year when prices are incredibly cheap (January & February), but we all should recognize just how inexpensive it remains to travel hugely far distances in a matter of hours. Do I like it when fares rise? Of course not, but if you really think of the incredibility of what air travel offers, a rise in airfare shouldn’t be such an earth-shattering shock.
• American Airlines was largely in the news this week due to its nearly 40% drop in stock price and rumors over a possible bankruptcy filing. Also, as you might recall, the carrier placed one of the largest aircraft orders in history recently. I’ve read so many articles claiming “yes they should,” or “no they wont” file Chapter 11, but do any of us really know? It’s all speculation and I think had they filed back when many of the other majors did, they’d be posting profits akin to what Delta Air Lines and United Airlines are today. Once I hit million-miler status with United, I might likely jump ship and become loyal to American as they really impressed me this year.
• Advertisements are everywhere. Just today inside the United Club at LAX I noticed a huge ad appearing on one wall. Medford airport in Oregon is looking for additional revenue through offering up the placement of ads on its control tower. Exposure would be significant both for people at the airport and those driving nearby as the picture in the article shows. Can’t we go anywhere without ads? Yes, you can just ignore them, but I’m tired of being bombarded by them. I absolutely love that Wimbledon has consistently disallowed ads appearing around the courts. It’s so refreshing. There is one brand seen… Rolex on the clock, but otherwise it’s a clean ad-free environment.
• I seem to write about this every week, but it’s worth mentioning again. Qantas once again has cancelled and delayed flights this week due to labor unrest. I’ll give unions credit for championing in the benefits even we non-union workers enjoy, but I think the disruptions they cause in events such as this is just ridiculous. On a more positive note for Qantas, the carrier will begin daily Sydney to Dallas service – up from four times weekly – beginning in July 2012. The Boeing 747s on that route will feature the fully-flat Skybed seats in business class and Recaro Premium Economy seats.
• It’s common for airlines to be fined for false or misleading advertising or failure to comply with government standards, but this is the first time I’ve read that an Online Travel Agency (OTA) got dinged. France has fined Expedia $484,000 for “misleading marketing practices.” Among the charges, France claims Expedia showed hotels as being fully booked when they weren’t, incorrectly displaying hotel phone numbers and advertising prices as promotional rates when they were just standard prices. Half a million dollars, though? Ouch!

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.