As many of you know, I typically focus on legacy airlines when reporting on news, but something shocked me earlier today by Frontier Airlines that warrants a post and apology for a tweet I sent out:

My initial reaction was shock because I still hold Frontier in a class above Spirit and Allegiant, who basically charge for everything. But after reading the full press release and recalling that they’re significantly adjusting their strategy to stay alive, I’ll recant my disagreement with charging for all drinks (except water, I assume).

Why? Because I wouldn’t be shocked or upset to purchase coffee, soda, etc. on Spirit or Allegiant since it’s already in my brain that they’re an ultra low cost carrier. And as Frontier directly points out in the release:

As part of the transformation into an Ultra Low Cost Carrier…

And:

Frontier continues to make it easier for customers flying with Frontier to pay only for the services they use, which allows us to continue lowering fares…

So I recant my “not a good move” tweet-reaction to the news regarding this policy. If you can’t beat them, join them! Spirit, after all, has been quite profitable for some time. $1.99 here and there isn’t going to do it (which is the new fee for drinks for most fliers), but I understand why they’ll begin charging the fee.

And speaking of being Spirit-like, Frontier will also start charging for carry-on bags requiring overhead bin space – anywhere from $25 to $100 – for passengers who purchase “basic fare” tickets on websites other than FlyFrontier.com.

If you’re interested in the specifics of the new fees (and other changes, including modified EarlyReturns mileage accrual rates), click here.

Barry Biffle, Spirit’s chief marketing officer, spoke at the Association of Travel Marketing Executives conference today in Miami. I wasn’t there, but it sort of felt like I was reading Henry Harteveldt’s real-time Twitter updates from the event.

Henry, if you don’t follow him, is a veteran airline and travel industry analyst working for Hudson Crossing and often shares the best quotes from these types of events. And his selection today from Barry Biffle didn’t disappoint. Here’s a rundown of a few insightful remarks from earlier:

Spirit’s business model caters to the leisure and O&D (origin & destination, point-to-point travel) segments, and his remarks here reflect that strategy. It’s sort of shocking for an airline to come out and say they’re not for business travelers, but it works for Spirit.

I grouped the three above together, but I could be taking them out of context. Passengers not wanting to be pissed off probably refers to the amount of ancillary fees and their cost. Spirit does show their lengthy menu of fees on their website, but I bet it is a challenge for them to deal with unaware customers who’ve booked through some travel agents.

Ha! Well, yeah, that’s some marketing spin… but it’s true. Those options certainly come with fees, though.

Spirit definitely offers a low-ball base service price and I can see a lot of truth in these two remarks. While they don’t have another airline trip to compare it to, I wonder how Spirit’s first time fliers rate the experience?

Separately, Spirit’s CEO Ben Baldanza was speaking at another event today and made a rather honest remark concerning Spirit’s fees:

How true, indeed. The round-trip baggage fees on Spirit would likely be more than the total airfare for the family.

One of my goals this year is to step out of my comfort zone and fly on both Spirit and Allegiant, just for the experience of it (well… and to blog about it). Allegiant will likely be first as they fly into my home airport. Stay tuned!

• American’s inaugural of its Boeing 777-300ER occurs tomorrow flying from Dallas to Sao Paulo. We’ve all seen the exterior and interior images from American, but here are some new ones from the Dallas Morning News blog.
• Sheraton Hotels (part of Starwood) will open 30 new hotels over the next 12 months. Half of the new properties will open in China with additional new locations sprouting up in Latin America, the Middle East and Turkey.
• Spirit Airlines will be adding several new routes, including Houston to LAX, Baltimore and Philadelphia to Las Vegas, and Minneapolis to Denver. Fingers crossed for a fare war, though legacy airlines tend to distance themselves from Spirit’s “sales.” One of these days I’ll fly Spirit just for the sake of trying them out.
• Brussels Airlines announced that Washington Dulles will be their next U.S. destination. Service is slated to begin June 18th with five weekly flights IAD-BRU using Airbus A330 aircraft. One Mile at a Time (Ben) just flew them from JFK in business class. At the minimum, it’ll bring another Star Alliance mileage redemption option to Europe from the East coast.
• Emirates Skywards members can now redeem miles for JetBlue flights. The partnership between the two airlines previously only allowed Skywards members to earn miles on JetBlue.

Related posts:

Notable Airline, Hotel and Travel News: January 29, 2013

Notable Airline, Hotel and Travel News: January 28, 2013

• I blogged about it separately, but American Airlines  unveiled a new identity today, ahead of any announcement regarding a merger with US Airways. The intro video is #avgeek spectacular, in my opinion.
• Delta Air Lines officially announced a new Medallion Qualifying Miles requirement starting in the 2014 program year. I shared my thoughts on it in a post yesterday. Which U.S. airline will be next to introduce a spend threshold for elite status? My guess: United, and within the next three months.
• Alaska Airlines officially announced Emirates as a Mileage Plan redemption option. Earning miles when flying Emirates has been offered to Alaska’s members since March 2012.
• United Airlines sent emails to MileagePlus members offering buy-up Premier Qualifying Miles to achieve a higher elite status. Many Flyertalkers reported their targeted offers in the linked Flyertalk thread.
• Leave it to Spirit Airlines to launch a fare sale surrounding the confusing Manti Te’o scandal/controversy/hoax/whatever you want to call it. Always good for media exposure. Per the Spirit sale/website, “So, if your girlfriend is around (and real), plan that trip that you’ve been talking about without paying too much for it. And tell those high fares to RIP!”
• Starwood Hotels has signed on to be the exclusive hotel partner for the Chicago Cubs, Wrigley Field and other related businesses/charities. SPG members will have a chance for exclusive access to events and other experiences as part of the SPG Moments program.

Related posts:

Notable Airline, Hotel and Travel News: January 16, 2013

Notable Airline, Hotel and Travel News: January 15, 2013

Notable Airline, Hotel and Travel News: January 14, 2013

• United Airlines had a major SHARES outage late this afternoon, bringing their website down and halting operations at some airports. United is apparently offering a travel waiver for impacted customers, but as of this posting, no link has been posted online. [Edited (thanks Kris): The waiver is now posted.]
• In other not-so-good United news, a Boeing 767 bound for Chicago returned to London’s Heathrow Airport after pilots reported an engine surge. Firefighters had to spray the smoking engine down upon landing.
• A gay couple is suing United Airlines for “severe emotional trauma” and “intentional harassment” after their bag made the rounds on the carousel with a rather large sex toy prominently displayed taped to the outside after the bag allegedly broke. My take on the lawsuit: really? First maybe consider leaving it at home and second, will the article with your picture prominently displayed on it not cause even more trauma? Get over it and move on. [Edited to add: Yes, I agree the baggage handlers were very wrong in their actions... more in the comments below.]
• Southwest Airlines is adding new routes. Beginning March 9, 2012, Southwest will add flights from Newark to Nashville, New Orleans and Austin. Also new will be Dayton to Orlando and Key West to New Orleans.
• Spirit Airlines also announced new routes. Service from Houston Intercontinental to Chicago O’Hare and Las Vegas begins in October. Service from Denver to Phoenix-Mesa Airport also begins in October, and flights between Portland and San Diego commence in November.
• JetBlue launched fixed-price “Go Packs,” where by September 6, you can buy blocks of 10 one-way tickets for a single price. Rates start at $899 plus $7 per flight for a “Pittsburgh to Boston and New York” pack to $2,499 plus $7 per flight for a “Boston or New York to Los Angeles and San Francisco” pack.
• Vienna’s first Ritz-Carlton hotel opened. The 202-room hotel includes 43 suites and a rooftop bar. And Malaysia’s first Grand Hyatt hotel opened in Kuala Lumpur, offering 412 rooms and 42 suites.
• The TSA fired six “officers” and suspended 14 others at Boston’s Logan Airport for inattention on the job. These agents all happened to work in the same checked bag screening room. Guess they missed the gay couple’s sex toy and can’t be blamed.
• Lufthansa flight attendants could strike beginning tomorrow after refusing the latest offer of a 3.5% pay raise from the airline. Flight attendants were looking for 5% after a three-year pay freeze.
• With business travel picking up and successful growth in overall market share, Virgin Australia enjoyed a AU$22.8 million net income for its recent fiscal year. Business travelers now make up 20% of the airline’s domestic revenue.

Previous news:

Monday, August 27, 2012

Friday, August 24, 2012

Thursday, August 23, 2012

In other airline industry news this week…

• Delta Air Lines announced this week new interiors featuring lie-flat seats in BusinessElite and “slim line” seats with individual entertainment units as well as an Economy Comfort section in coach will be seen on all 747-400 aircraft by October 2012. A total of 48 seats will occupy the BusinessElite cabin in an angled herringbone configuration allowing aisle access from every seat. The Economy Comfort section will seat 42 passengers and offers up to four inches of additional legroom and 50 percent more recline than standard economy seating.
• A handful of original People Express executives announced the return of a rebranded PeoplExpress carrier on Monday. The new airline will be based at the Newport News-Williamsburg Airport in Virginia and expects to begin service this summer to Newark, Pittsburgh, Providence and West Palm Beach. COO Mike Morisi said service will be operated with single-cabin Boeing 737-400s and fares will be at a “pricing structure that is significantly more affordable than regional service provided by feeder airlines.”
• American Airlines posted a $1.1 billion loss in the fourth quarter of 2011, accounting for half of the airline’s $2 billion loss for the full year. Executives mentioned much of the quarter’s loss stemmed from one-time charges attributed to reorganizing the company in bankruptcy. Jet fuel prices were also a factor and American paid an average of $3.01/gallon in 2011 versus $2.32 in 2010. The carrier expects to slash 13,000 jobs this year and is being very closely monitored by both Delta and US Airways for a possible acquisition.
• United Airlines this week confirmed it will adopt Continental’s “PetSafe” policy for transporting animals who don’t travel in the passenger cabin effective March 3. According to a company spokesperson, the rates aren’t significantly higher than the now current fees for checking an animal, with the exception of Japan whose government requires an extra fee be paid to a third-party handler. This change has many military families outraged as what cost some $130 when moving to Japan with their pet will now be in the $1,400 range under the new policy. PetSafe has been praised by pet transport professionals for taking exceptional care of animals in their care.
• Speaking of pets traveling in the cargo hold, more pets died on Delta Air Lines last year than any other carrier – 19 out of the total 35 reported deaths. Delta claims less than 0.2 percent of pets carried were injured or died while in its care and noted its size as the country’s largest carrier in terms of passengers carried often means it transports more pets than other airlines. Delta did institute changes to its policy and now bans certain types of dogs that are prone to respiratory problems. The Humane Society of the United States advises owners should not transport pets by air “unless absolutely necessary.”
• Low-fare carrier Spirit Airlines will resume service out of Denver this May. Daily nonstops to Chicago, Dallas, Ft. Lauderdale and Las Vegas will commence on May 3 and enable passengers to connect to an additional 29 cities in the U.S., Caribbean and Latin America. Denver is a hub for United, Frontier and (effectively based on passenger volume) Southwest. While I’ve noticed United tends not to match Spirit’s fares, it remains to be seen what impact Spirit’s entry will have on Southwest and Frontier fares.

Finally, here are some Quick Hits:

• Regional carrier SkyWest posted its first annual loss since 1988.
• Qantas is discontinuing LAX-Auckland flights, pointing to higher Air New Zealand fares on the route.
• Spirit Airlines intends to increase capacity by 23% in 2012 vs. 2011.
• Southwest Airlines officially launches service in Atlanta.

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

• American Airlines announced their intention to cut costs by more than $2 billion annually this past Wednesday through a combination of job cuts, pension overhaul and fleet optimization. The carrier is expected to work with the labor groups targeted for layoffs and if they can’t come to an agreement, American will ask the court to cut about 4,600 maintenance workers, 4,200 baggage handlers, 2,300 flight attendants, 400 pilots and 1,400 management positions.
• A long-term bill funding the FAA passed in Congress this past week finally ending a string of “short-term” extensions of the previous version that expired in 2007. The full agreement includes provisions for a Next Generation air traffic modernization program slated to end ground-based radar and bring the U.S. into the 21^st century with GPS technology. Other changes will include tweaking the Essential Air Service program where smaller communities receive scheduled airline service, modifying the rules of airline union voting practices and a slot allocation for transcontinental flights out of Washington’s Reagan-National Airport.
• Spirit Airlines has added a new fee to all one-way fares in defiance of the new U.S. DOT rules requiring fares to be advertised inclusive of all government taxes and fees and allowing a 24-hour period with which to pay for airline tickets. Calling it the “Department of Transportation’s unintended consequences fee”, the carrier claims the 24-hour policy will hurt availability of seats causing load factors to fall. Fares with the airline now include this $2 one-way surcharge.
• The “No-fly” list recently doubled and now includes about 21,000 names, including 500 Americans. According to TSA head John Pistole, federal, state and other law enforcement agencies “continue to identify people who want to cause us harm, particularly in the U.S. and particularly as it relates to aviation.”
• While not as severe as American’s losses, Hawaiian Airlines reported a net loss of $2.6 million for 2011 and noted net income on an adjusted basis was $43.2 million, excluding fuel expenses and a non-recurring lease termination charge of $70 million for 15 Boeing 717 aircraft. The carrier’s CEO is optimistic looking ahead and remains committed to operational growth while at the same time controlling costs.
• Early next month, Virgin Atlantic will open a new Clubhouse at JFK airport in Terminal 4. The new lounge will be near the gates vs. outside of security as is the current situation. Senior Vice President-North America, Chris Rossi, said “the new space will create a unique experience for our passengers to complement our flagship Clubhouse and Revivals Lounge at London Heathrow Terminal 3.”
• LodgeNet, the largest provider of hotel room television services, has a free mobile app out there now that turns smartphones into hotel room remote controls. There are about 2,000 hotels in the U.S. with the LodgeNet service and this new app includes information about the specific hotel you’re staying at, local events, attractions, directions and restaurants in addition to acting as a remote control. The company’s CEO quoted research that “forty percent of users ages 18 to 34 prefer to control their TVs with a smartphone or tablet instead of a remote.”

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.

The great thing about BoardingArea bloggers, if I can toot our respective horns, is that we’re true road warriors with intricate knowledge of the airline, hotel and travel industry. We post our hearts out with often highly specific details about our travel experiences all in the desire to impart wisdom to other travelers. Then there’s the mainstream media.

I’m going to nitpick on another Peter Greenberg article posted this week where he has a discussion with Wall Street Journal travel editor Scott McCartney about preferential seats on airlines. As with the previous Greenberg article, I agree with some points and disagree with others.

First up, Peter claims middle seats shouldn’t be considered preferred:

Okay, yes, middle seats are generally not preferential, but in United Airlines’ Economy Plus, middle seats still offer greater seat pitch than the back of the cabin. A couple booking a window and middle together in “E+” would have to agree they’re getting preferred seats in this case. Also, if only middle seats are left, those up front offer you to disembark quicker when you arrive.

Next, Scott says he sees some seat maps where an unusual pair of seats are roped off:

I might agree with him, but here’s my experience. On United, if you look at many flights ridiculously far out in the future where probably no one has a booking yet, they “rope off” a couple of pairs of seats, often the D & E ones. On many aircraft, those particular rows have armrests on the aisles that extend fully upward to allow a wheelchair passenger to easily slide in. Now if those are actually roped off as preferred for purchase, that’s an obvious no-no. Without knowing what he was looking at specifically, I’ll just give my partial disagreement here.

Here, I’ll sort-of agree with Peter:

American’s new Preferred Seating program has gotten some criticism as huge swaths of seats are now considered preferred, often stretching far back into the cabin. Peter’s example of 21 out of 27 seats open being preferred means American designated the windows and aisles as preferred with six “regular” seats (middles, I’m sure) open for free. Ah ha! Did I contradict myself about the middle seats? I don’t think so in American’s case since they’re focusing on windows and aisles as premium. A $4 seat is one of those windows or aisles, Peter, probably further back.

Scott then continues that paying a preferred seat fee is outrageous:

What you get when you buy an airline ticket is a confirmation of travel from Point A to Point B. Every airline’s contract of carriage explicitly states, “seat assignments are not guaranteed.” Do people really read the CoC? Probably the same amount of people who actually read the “I’ve read and fully accept the terms and conditions” of any online agreement, but I digress. Also, unbundling has been around now in the airline industry for a while, so Scott shouldn’t be so shocked, and he noted earlier that, “You buy your ticket, but that doesn’t guarantee you a specific seat.”

Those points aside, I’d encourage you to read the full article. They do hit correctly on some hot topics, including:

• How United is screwing their low-level elites out of E+ seats until time of check-in.
• Being pressured into paying for a preferred seat out of worry of being bumped off the flight.
• The delay-inducing effect of more people trying to carryon their bags by avoiding the checked bag fee.
• Efficiencies gained by charge-happy carrier like Spirit Airlines.

Anyway, I have a love-hate relationship when I see articles like this. I tend to nitpick, but I also believe in putting more truth out there.

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.