Archive for the 'Uncategorized' Category
July 18 2008
Bollywood film legend Amitabh Bachchan has learned the hard way about British Airways’ miserable record losing bags (it misplaces 23 bags for every 1000 passengers): The actor says that his bags were lost on a recent trip with his family to Toronto, marking the 18th time the airline has lost his luggage. There really isn’t any more to the story, but I thought that was impressive.
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July 18 2008
God knows how much of this story is true, but a woman is suing Continental Airlines after she claims that a flight attendant who was mad at her had authorities detain her upon her arrival in Newark. It seems she “shushed” the flight attendant while she was trying to sleep, and that all hell broke loose after that. The link has the details.
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July 17 2008
Joining the ranks of just about everyone else, Continental has rolled out a few new changes for their OnePass program and you can probably guess that they won’t involve making it easier and cheaper to fly for free.
In short:
- No more holding reservations - you reserve, you purchase. On a plus note, you have 24 hours to cancel.
- Fees to re-deposit miles or change a reward ticket are now $150. Yes, those same fees used to be about $50.
- Want to book a reward ticket less than 21 days in advance? That’ll cost ya $75. For some reason, I find this one the most annoying.
- And Continental’s much beloved upgrade co-pays have increased (you can see the details in the link).
What can ya do? It’s the new reality. Or you can fly Southwest (though good luck getting a free business class ticket to Singapore on Southwest).
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July 17 2008
We’re in airline earnings season, and we’ve seen the first few airlines post what most newspapers are reporting as giant losses. But look beyond those headlines of billions of dollars of red ink and you’ll see that most of those losses are one-time non-cash charges, and that Delta actually posted a nice little $137 million profit (excluding 1-time items) even with fuel costing $1 billion more in the quarter than last year. Continental and American posted small losses.
Delta’s increased fares, new fees and shift to international travel all seemed to make a positive impact. The 2nd quarter is traditionally their best, so we may not be seeing profits again any time soon. But I think it shows that the industry re-structuring is beginning to work. Sure, oil prices need to come down and from everyone says the carriers could stand to get rid of a bunch more seats, but it would appear that, for the first time in a while, the airlines may be headed in the right direction. Nice to see some not-so-horrible news for a change.
(Note: Yes, I know that all of the improvements have come on the backs of consumers, who are paying for higher fares and fees for everything. Get over it, that’s how it’s going to be. You’re free to fly Southwest.)
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July 15 2008
A quick link to a fun little article about what the airlines have removed from their planes to save weight. My favorite? Alaska Airlines took 5 magazines off each plane and saved $10k.
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July 14 2008
It’s horrible over at Midwest: In conjunction with their previously announced plans to eliminate the MD-80 from their fleet, they said today that they will need to lay off 40% of their workforce. The airline, which once had a great little niche providing near-business-class service at coach prices, isn’t long for this world and will likely be the next to go in the US.
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July 11 2008
(Thanks to reader Doug for the heads up)
The 12 major US carriers sent out an email (copied at the bottom of this post) blaming oil market speculation as the reason for the increase in the price of fuel (they say up to $60 of the cost of a barrel of fuel is due to this speculation). There are lots of reasons why fuel has gotten so expensive, but these airlines are speaking out of both sides of their mouth when they call for the government to step in and regulate oil “market speculation.” Har har har har. That is a good one.
Airlines are in favor of de-regulating their industry, and in favor of pricing immunity when they’re in an alliance. They’re against oil speculation but in favor of fuel hedging (um, where do you think those fuel prices are hedged?) They want a fair marketplace for oil, but they want foreign ownership caps for airlines.
This makes me a bit sick.
Oh, and airlines have never engaged in questionable pricing behaviors of their own? This is extremely annoying…
Let the government step in and regulate the oil market so airlines can compete. Then let the government step in an let Virgin, Lufthansa and Singapore flight from New York to LA and see how long United stays in business. Please.
Here’s the email:
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An Open letter to All Airline Customers:Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.The nation needs to pull together to reform the oil markets and solve this growing problem.
We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com. |
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July 10 2008
(Thanks View from the Wing)
Spirit Airlines has a deal with Planet Hollywood Casino in Vegas to offer 1,250 square foot suites for $177/night mid-week in July and August (details in the link). It’s a steal!
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July 10 2008
United delayed a Denver to Des Moines flight by 6 hours after a passenger reported seeing a tick on the plane (3 ticks were later found). You’ll see this story elsewhere if you want to know the details.
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July 09 2008
In a move that will surprise no one, ExpressJet will cancel its commercial flights as of September 2. Don’t worry, you probably weren’t flying them anyway. (As I noted when they launched last year, it was going to be an ugly ride for them. And it was.)
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Bollywood Star Finds that British Airways Has Lost His Bag…for the 18th Time