Posted by Seth on May 22, 2012 under Flying, News | 
When Southwest bought out AirTran they were quite up front about their desire to get rid of the 717s in their newly acquired fleet. Thanks to a new agreement between Delta and their pilot union, it seems like there is a deal on the table which will allow them to do precisely that. Assuming the pilots ratify the new contract Delta will lease 88 of the 717s from Southwest, putting them in to operation while also retiring the DC9-50s and some CRJs as well. The replacements will be in a capacity-neutral manner, which suggests more aircraft will be retired than will be brought in based on the seating densities.
The good news in this move is that fewer tiny regional jets generally should lead to a better in-flight experience for passengers. The bad news is that it may also lead to decreased frequencies as there will be fewer planes flying. Plus, the AirTran 717s are not known to be the most comfortable aircraft in the skies. That said, they are equipped with gogo’s in-flight internet service and Delta is also a customer of gogo so that should see the connectivity remaining in service.
As part of the deal with the pilots to bring the 717s into the fleet Delta will also be allowed to increase the number of 76-seat jets they have operated by regional carriers. These are not mainline pilot jobs, but the total number of regional pilot positions will likely remain steady as the smaller regional jets are retired and these are brought in to the fleet.
The overall position with the pilots at Delta seems to be quite positive these days. More flying will be mainline which means more pilots working for the parent company rather than a regional affiliate. It also seems relatively good for customers, with fewer of the small CRJs and the new planes all offering wifi and first class cabins. Seems to be mostly smiles all around.
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Posted by Seth on May 16, 2012 under Review, Trip Reports |
There is only so much that can be done to make the airport gate experience enjoyable for customers. When you’re dealing with cramped old terminals like those at LaGuardia the options are even more limited. There’s not enough space to really make things nice and tearing down and rebuilding the facilities is not going to happen any time soon, either. These challenges haven’t stopped Delta from trying, however. The carrier has stepped up the experience in their terminal, working to make pre-flight actually enjoyable.
One of the aspects of the effort is replacing the typical gate area seating – rows of uncomfortable seats crammed too close together – with new seats, including tables and outlets, so people can work or eat more easily. The layout is definitely more comfortable and customer-friendly, so long as you can actually get a seat. The main problem with the setup is that the seating density is decreased, meaning there are a lot of folks left without seats. And at LaGuardia, with the crowds, that is definitely a challenge.
In addition to the booths for sitting there are also taller tables with bar stools set up in the area. Again, lots of power outlets available and a nice desk for working or eating. But the high tops have more than just power and space; they also provide pre-flight entertainment options.
There are iPads set up at the tables, offering a few pre-loaded apps (e.g. FaceBook) and also an ordering platform for the OTG concessions in the terminal. The OTG setup is similar to that which the company debuted in the JetBlue JFK T5 a couple years ago, allowing passengers to order meals to the gate area rather than having to walk over to one of the stands to get the food. And this version offers entertainment, too.
The setup is quite nice. It is definitely a big change from the traditional gate experience. Not quite perfect, but definitely a step in the right direction.
Posted by Seth on May 10, 2012 under Flying, Internet, News |
American Airlines announced that they are moving forward with a retrofit of their long-haul fleet, updating the cabin interiors to improve the premium cabin experience. Mostly. The upgrades will expand the deployment of the new business class product, previously announced for the 777-300s which the company will begin receiving later this year. It will also mean the removal of the first class cabin on those aircraft, continuing a trend in both the global and the US markets to limit the long-haul premium cabin offerings to select markets with demonstrated demand. The retrofits are slated to begin in 2014.
The new business class seats will be retrofit into the carrier’s 777-200ER aircraft and into a portion of their 767-300ER aircraft. The 767-300s which are not reconfigured will be retired from the fleet.
The carrier has also indicated that their Main Cabin Extra configuration, offering an additional 4-6″ of legroom, will be part of the redesign on the 763s and 772s. On the 772s there will be 5 rows of these seats, 45 of the 215 total economy seats. On the 763s there will be only two rows of Main Cabin Extra, 14 of the 181 total economy seats. Customers holding elite status in the AAdvantage program, as well as with oneworld partners, will have access to the MCE seats.
The new cabin configuration will also include major upgrades to the in-flight entertainment systems and in-flight connectivity options. The IFE system for the 772s has impressive spec’s. It will have roughly 700 hours of audio and video available, up to 120 movies, 180 TV programs, 350 audio selections and 30 games. In business class the screens will be 15.4″ while economy will have quite generous 9″ screens. All seats on the 772s will have 110V outlets and USB plugs as well.
UPDATE: AA has confirmed that the regular main cabin seats will be 3-4-3 on both the 777-200 and 777-300ERs, and without any extra pitch. That’s going to be quite tight.
The satellite-based WiFi service will allow for global connectivity for customers. That said, no vendor has been chosen for the implementation yet so there is plenty of time for the company to see how the various options in the market shake out in the coming months, particularly as others add similar service, to pick the correct product for their fleet.
The 763 refits will not include the new IFE systems; the company will continue to rely on personal tablets for business class passengers on those aircraft for the IFE systems. The 763s will also not receive the WiFi connectivity. Combine that with the very limited MCE seating and those might just become the aircraft to avoid in the American long-haul fleet.
I’ve read through the release now a few times, looking for some hint of a magic paragraph previously missed which makes the planned upgrades tremendous. I still cannot find it. The release has many exciting phrases like “among the first in the industry” and “Business Class suite.” These plans, unfortunately, seem to be mostly playing catch-up to the rest of the industry. The “new” business class seats are based on the same product that US Airways just completed deployment of on their A330 fleet. The IFE upgrades are great, assuming you’re on the 77s; the 763s, not so much. And the seating density of the new seats raises a few red flags.
Type for type, United will offer more premium cabin seats (admittedly not all with direct aisle access) and more economy seats with increased legroom., along with a comparable IFE and connectivity scheme. And United is rolling out the seating and IFE config this year, not starting in 18 months. Delta is similarly ahead of American in the offering, both in terms of timing and product.
I have to give AA credit for trying to build a buzz about the announcements. The press conference included a number of bloggers and other social media folks, trying to tap in to the newer venues for sharing such announcements. And the bit I managed to catch on Twitter suggests that it has worked in come circles. Still, the implementation of these changes are 20 months off. It is going to be hard to keep the buzz alive that long.
There is no doubt that it is increasingly difficult to both offer a top-notch product and to do so in a manner that allows a company to remain competitive in the ever-changing market. In this case, however, it seems that American is barely even able to play catch-up, much less leap ahead. And if this is supposed to revitalize the company, inspiring creditors to ride out the bankruptcy and see a strong future for the carrier I’m very concerned about their strategy. The phrase “too little, too late” comes to mind.
For a different, and somewhat more positive, take on the new seats check out Gary’s post here; he was at the event where they were unveiled.
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Tags: American Airlines, bankruptcy, Delta, Flying, IFE, in flight, internet, OneWorld, PaxEx, United, United Airlines, upgrade, US Air
Posted by Seth on April 11, 2012 under News |
Following the first phase of slot swaps a couple weeks ago, Delta launched a $160MM investment in the renovation of their facilities at LaGuardia airport today. The main focus of the work is an air-side connection between terminals C and D, allowing all Delta flights (other than the Shuttle) to operate from a single secure area. In addition the security areas will be upgraded and expanded and terminal C will see the conversion of the US Airways Club to a SkyClub.
The event was attended by a number of elected officials and there were the usual laudatory remarks made, focusing on the investment value and the new jobs it is expected to bring into the area. There was also mention of the impact to the aviation industry in general, noting that the move further cements New York City‘s position as the "aviation capitol of the nation," as Mayor Bloomberg noted. They only took a couple questions and nothing particularly pointed was asked. Little things, like how the 10,000+ additional daily passengers will find transportation in to the city, for example, were not addressed.
After the Q&A the whole crew headed out to a section of the tarmac that had been set aside for the actual ground breaking part of the event. Everyone – from the CEO and Mayor to ground and in-flight crew – grabbed a shovel and chipped in on the effort.
They even let me have some fun.
And then some folks collected souvenirs to take home. Seriously, when was the last time you saw someone walking through an airport terminal with a shovel in hand?
Overall it was a nice event, though nothing particularly surprising or "ground breaking" about it. Then again, I suppose that was the whole idea, so it makes sense.
Posted by Seth on April 2, 2012 under News |
Pinnacle Airlines, one of the larger regional operators in the United States, filed for bankruptcy protection late on Sunday. The carrier operates under a contract basis for Delta Airlines and, to a lesser extent United Airlines and US Airways. The company outlined plans to continue normal operations for the immediate future, thanks in large part to an investment by Delta reported at $74MM of which $30MM is new capital with a 12.5% interest rate, as well as longer-term plans to cut some of the less profitable services offered.
Facing aggressive cuts by the mainline carriers they contract for, Pinnacle claims it can no longer meet its operational needs in the current financial climate:
The result has been a race to the bottom, as the debtors and other regional airlines have been forced to bid ever-lower rates and accept increasingly unfavorable contract terms to win the business of major carriers,
The company also claims that part of its struggle stems from the inconsistent income patterns realized due to its operational agreements with the mainline carriers:
The Debtors‘ monthly cash flows fluctuate significantly within any given month because of variances in the amount and timing of payments due to and from the Debtors under their operating agreements, including the Delta Connection Agreements.
Their current cash position – about $45MM – is apparently insufficient to see them through the next couple months without this restructuring.
Pinnacle has been in trouble for several months now and has been working since late 2011 to restructure its operations in an effort to remain in business. In the filing they cite an inability to negotiate concessions with ALPA as the catalyst for their inability to restructure deals with Delta and United outside the auspices of the bankruptcy process.
While the company plans to operate normally in the coming days, they also intend to make significant operational changes in the coming months regarding their contracts with carriers. With Delta, the filings indicate an extension of the CRJ-200 Agreement, suggesting that those aircraft will remain in service for Delta beyond the current 2017 expiry. At the same time, they claim that the CRJ-900 flying is unprofitable and that it must be curtailed or renegotiated. To that end, the CRJ-900 aircraft currently operating for Delta will be removed from service in the first half of 2013.
For United the company plans to cease operations of its Saab 340 and Bombardier Q-400 turbo-prop fleets by July and November 2012, respectively. The prop fleets operate under a fixed-fee capacity purchase agreement set to run through 2021 at a rate which Pinnacle says is unsustainable over the long term. The company claims losses in excess of $11MM in 2011 on their contracts with United, with no relief in sight, save for rejecting the contracts. United recognized the issues earlier this year and temporarily granted higher rates to the company for operations but that deal expired and said expiry was one of the reasons cited for the filing.
Some of the ERJ-135 aircraft previously operated by ExpressJet for Continental have made it back in to the schedule replacing the Saab 340s so at least some of the contingency plans are already in place. It remains to be seen what other operational changes will be made following this news.
Sadly, despite the date of the filing, this is not a joke. The overall impact of these changes remains to be seen, but it is clear that United will be searching for a new operator of services for a number of aircraft and routes in the immediate future. If you want more of the nitty gritty details check out the docket filings here. They’re great if you’re suffering insomnia.
Posted by Seth on March 13, 2012 under Flying, News |
Washington, DC‘s National Airport is one of the "lucky few" airports in the country where the government has limited destinations which can be served. The so-called "perimeter rule" keeps the long-haul flights out at Dulles for the most part, but there are a few exceptions to rule and those are coveted by the airlines. As part of the most recent FAA budget authorization bill Congress has added a few perimeter exceptions to the pool at DCA and now airlines are scrambling to grab those slots. The filing deadline was yesterday, and here’s what the proposals look like.
New Entrants
The slots are split into two pools, one for legacy carriers and one for new entrants. In the new entrants category six carriers – JetBlue, Virgin America, Southwest, Air Canada, Frontier and Alaska Airlines have applied.
Alaska Airlines is going big with their application, hoping to offer transcon service from both their Portland, OR hub as well as San Diego. Virgin America is also hoping for hub service from San Francisco. Southwest is aiming to provide service to Austin, TX, with onward connections to San Diego and JetBlue has applied to serve both Austin and San Juan. Air Canada is hoping for Vancouver service and Frontier is looking to serve Colorado Springs.
There is some interesting overlap with the routes being requested and it seems somewhat unlikely that the DoT is going to approve such applications so perhaps the final approval will look something like this:
Legacy Carriers
For the legacy carriers the access to beyond perimeter slots comes with a slightly higher price, as they have to give up service to a destination inside the perimeter to get the new service. On the plus side, the route authorities are more or less guaranteed given that condition so the DoT has less work to do there. Of the eligible carriers, Delta, United Airlines and American Airlines all made their intentions known a couple weeks ago, with service to their Salt Lake City, San Francisco and Los Angeles hubs, respectively. Apparently US Airways has decided to not apply for an additional beyond perimeter slot. They already have service to Phoenix and Las Vegas but it is still somewhat surprising that they haven’t tried for more.
The new routes should be interesting to watch, especially with the potential for competition on the LAX and SFO routes.
Tags: Air Canada, Alaska Airlines, American Airlines, Congress, Delta, DoT, FAA, Frontier, JetBlue, Las Vegas, Los Angeles, Phoenix, San Diego, San Francisco, San Juan, Southwest Airline, United, United Airlines, Virgin America, Washington DC
Posted by Seth on March 1, 2012 under frequent flyer, News, points |
I’m generally a big fan of Scott McCartney’s The Middle Seat column in the Wall Street Journal so I was excited to read his post today about "Getting the Most Out of Your Frequent Flier Miles." I was hoping for some great insight into award pricing algorithms or inventory patterns. Instead I got a primer on how to not get any value from points. Such a disappointment.
There are a number of take-aways from the post but the main conclusion is this:
With domestic coach tickets, you generally get not much more than one penny per mile in value from airlines – that’s a $250 ticket for 25,000 miles. If the ticket now costs $400, you likely will have to pay 40,000 or 50,000 miles.
Not only is it simply wrong, but it is also very misleading in terms of getting the most from your points. Other than the programs of JetBlue, Virgin America and Southwest, (and also one option from Delta or American Airlines) the redemption rates are not tied directly to the selling price of the ticket. If there are no discounted seats left it is less likely that award flights will be available at the lower rates, but that’s tied to the inventory, not to the fare price. As the prices go up at the low end it actually means that the "value" realized for redeeming points is arguably higher since the cash option will be more expensive.
McCartney also picks a few random routes and tries to read into overall domestic award inventory based on his searches for economy class seats on one carrier for each route. His approach fails miserable in many ways.
First off, it appears that the searches he performed were based only on using the website of the carrier where the miles are sitting and then by just putting in the end points. This resulted in finding only a handful of seats for Boston-Ft. Lauderdale on Delta, Orlando-Seattle on American or Washington, DC – Austin on US Airways. For the Delta results this approach overlooks the issues that their website suffers from for award bookings; it is very limited, especially when searching for connections. For American I see very different results than McCartney did, with plenty of award seats open at the "Saver" level.
Both of those are questionable, but the US Airways one is the most egregious bad advice of the three:
And if you’re in Washington, D.C., and have US Airways miles you’d like to use to go to Austin, Texas, get ready to pay a heavy price—besides the $25 processing fee that US Airways charges for a “free’’ ticket. For the 10 months in the rest of this year, there are only five days when US Airways offered a flight to Austin at its basic mileage price.
In addition to only searching on US Airways’s website, McCartney ignores the fact that Dividend Miles can be redeemed for flights operated by United Airlines. Checking the award calendar there it is clear that finding an award seat from DCA-AUS is actually a rather trivial task on most days for the rest of the year. Yes, you’ll have to call in to book it, but that’s a small penalty for saving 25,000 points.
Sorry, Scott, but you missed the boat BIG TIME on this one.
Tags: American Airlines, award, Boston, Delta, frequent flier, frequent flyer, JetBlue, points, Seattle, Southwest Airline, United, US Air, Virgin America, Washington DC
Posted by Seth on February 24, 2012 under Flying, News |
As noted on AirlineRoute.net, Delta will be cutting two London routes this spring, Atlanta – Gatwick and Miami – Heathrow. The final eastbound flights will be on 16 April 2012 with the final return the following day.
Like most carriers, Delta launched their London service into Gatwick in 1978 because they had no rights to fly into Heathrow. With the cutting of this Atlanta route the carrier is ending their service at that station, having moved all service to Heathrow.
The Miami route is a more recent development. It was added in March 2011 as part of the approval of the BA/AA/IB ATI and their required divestiture of routes in certain markets, namely Boston and Miami. Delta picked up both of those routes and apparently the Miami route isn’t so profitable for them.
It is hard to know if this is really good or bad news for the London-USA market. Certainly the carrier cutting routes suggests that the market is soft in some areas, though it can also be seen that the the trimming of inventory is going to tighten the market and increase fares.
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Posted by Seth on February 15, 2012 under News |
Delta has announced major upgrades to their 747 cabin interiors in both the business and economy cabins. One aircraft is already converted and the company expects all their 747s to be in the new configuration by October, 2012. The changes are significant throughout the plane, mostly for the better, but there are a couple potential negatives that come with the announcement as well.
In the Business cabin the new seats will offer flat beds and direct aisle access for all customers. The seats are from Zodiac Aerospace and are the same as those in place on US Airways A330s and Cathay Pacific’s new business class. American Airlines has also confirmed that they will be using the sets for the new business class product on their 777-300s. The seats are nice and the IFE upgrades that will accompany them – 15" screen, more than 300 films, 88 hours of television programming, nearly 100 hours of premium programming from HBO and Showtime, 27 video games and more than 5,000 digital music tracks – are certainly top notch. The layout of the seats is also nice, with both single and "paired" seats so traveling with a partner in the comfy seats won’t mean being isolated from them.
It is somewhat strange, however, that the company is claiming the seats’ 20.5" width is 20% more than the old seats. That suggests the old seats are 17" wide, which is definitely not the case, or there is some other creative math going on. The other significant downgrade that is coming with the new seats is a sharp decrease in the number available on the planes. The current configuration has 65 seats; the new configuration has only 48. That’s going to hurt folks looking for upgrades or discounted business class seats.
In the economy cabin the best news is that the same IFE system that powers the business class cabin will also be available. Other than that, there will be new, slimline seats installed in the cabin. The general idea behind the slimline seats is to provide additional knee-space for passengers without requiring additional pitch in the cabin. This allows for more customer space without removing seats from the plane. I’ve only had one experience on the slimline seats – with Lufthansa on a short flight in Europe – and they were comfortable enough but I’m not so sure how they’ll fare over a 12-16 hour trip.
Definitely upgrades to the product overall, though, like everything else, a few sacrifices to realize those improvements.
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Posted by Seth on February 9, 2012 under News |
Since the announcement of the new routes that Delta will be serving from New York City‘s LaGuardia airport a few weeks back it has been clear that the carrier is looking to make a splash in the market and build their share of traffic in a big way. To reach this goal they’ve apparently gone to a rather unusual avenue for marketing domestic air service: Travel Agents.
Airlines have continually cut and cut again on air travel commissions to agents, essentially killing them off outright. But Delta is putting some back out there, at least in the short term, in an effort to drive bookings on their new routes. Here’s what the numbers look like:
I’m not sure how much demand there is going to be for the premium cabin on those routes but even a number of coach fares are getting in on the action. Not too shabby.
It is hard to know if this is Delta responding to soft future bookings on the new routes, trying to raise travel agent awareness of the new routes or something completely different. Regardless of the motivation, it is definitely a blast from the past with the commissions.
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Posted by Seth on January 18, 2012 under Flying, frequent flyer, News |
I’ll be the first to admit that I was definitely betting against Philadelphia scoring service from Virgin America in their announcement yesterday. There were a couple other destinations on their "short list" which seemed more likely to me. Alas, I was wrong, and the carrier will be launching five daily frequencies starting in April.
As part of the launch release Virgin America pulled no punches, describing their competition in less than flattering terms. Said company CEO David Cush:
Travelers deserve more options than just the typical legacy airline cattle car, and we hope our unique brand of low fares and inventive service will be a breath of fresh air for Philadelphians.
I didn’t expect Philadelphia to be the new market based mostly on the fact that transcons are expensive and it generally takes a lot of capacity to compete in those markets; once daily service, especially between larger cities, is often frowned upon by customers. Virgin America is coming in big, however, adding three flights to Los Angeles which will increase the daily frequencies from 7 to 10, a reasonably significant capacity upgrade. Similarly, the frequencies on the San Francisco route will increase from 8 to 10 with the two new Virgin flights.
But are there enough passengers – profitable ones at that – to make the service work? Virgin seems to think so, suggesting that roughly half of the passengers on each of those routes takes a connecting flight rather than a nonstop option. So maybe there are enough people looking for nonstop options; the question is whether they’re profitable. Time will tell.
With all the hating that goes on against US Airways, this route might seem like a perfect assault. But attacking them at Philadelphia with only a couple non-stop destinations seems unlikely to be the way to go. Even Southwest, which attacked many more routes, is pulling back in their assault there, suggesting that US Airways is reasonably stable and willing to fight their competitors.
One thing it might do, however, is convince US Airways to compete on pricing for the routes. A one-way fare is currently $850 on US from Phillly to LA; the new numbers with Virgin in the market look to be a bit lower:
Interestingly, while US hasn’t been matching Delta fares on the route (or United Airlines on flights to San Francisco) they appear to be taking the Virgin entry into the market a bit more seriously. They aren’t completely matching the fare, but they are much closer, at least for San Francisco. Apparently they’re banking on their frequent flyers or the more frequent schedules demanding a $20ish premium for the route.
For Los Angeles, however, the price disparity remains, at least as of this morning.
It is also worth noting that elites in the US Airways Dividend Miles program can confirm that $850 fare into the first class cabin at the time of ticketing. Virgin is selling their first class cabin – admittedly MUCH nicer than that of the US Airways A321s – for about $1,000, a premium for elites, though still $200 less than the non-elite upgrade fare from US. Both are significantly higher than Delta’s first class fare on the route.
What does it all mean? I have no idea. But there are enough interesting bits at play here that it is worth watching. Oh, and prices on some of the inaugural flights are still pretty reasonable, so I might be headed to Philly for some fun in early April.
Tags: Delta, elite status, Flying, frequent flier, frequent flyer, Los Angeles, Philadelphia, San Francisco, Southwest Airline, United, United Airlines, upgrade, US Air, Virgin America
