Jaunted - Tag: Airline Analysis

Virgin Atlantic, BA Squabbling over Heathrow Slots

pbb — 2008-08-18T15:45:12-05:00

Now that British Airways, American Airlines and three other carriers have announced their merger-which-isn't a merger, Virgin Atlantic is making a serious stink. After all, Richard Branson's baby holds just three percent of the slots at Heathrow, while BA and its newest pals control 47 percent of the landing rights at the airport.

This is actually the third time that British has tried to link up with American, but it's the first such attempt since the latest Open Skies provision was enacted, ostensibly to improve competition in the transatlantic market. But Branson says that hasn't yet happened--and won't if a tie-up between BA and AA is approved:

Open Skies has not delivered the greater competition that was promised because Heathrow is full. BA/AA and Iberia would still be unacceptably dominant, with nearly half of all of the slots at Heathrow, leaving competitors powerless to take them on.

For his part, British Airways CEO Willie Walsh says his airline doesn't plan to give up any market share to appease regulators. The UK Times asked him if he'd consider giving up any slots, which can sell for as much as �20 million ($37 million) a pair. His response?

I won't

Branson to U.S. Presidential Candidates: BA & AA Alliance Spells Bad News for Competition

Victor Ozols — 2008-08-10T12:50:07-05:00

Sir Richard Branson, a groovy rich guy from England who owns Virgin Atlantic airlines and enjoys doing fun, crazy stuff, sent a letter to U.S. presidential candidates John McCain and Barack Obama on Sunday warning that the proposed British Airways/American Airlines alliance would stifle competition and hurt consumers.

Not one for understatement, Branson also plans a nearly $6 million advertising and lobbying campaign intended to derail the pending deal.

Even though Branson has his own financial reasons to hope a deal doesn't go down, his complaints may well resonate with the candidates and consumers, as rising fares, disappearing routes, and lackluster service combine to make air travel a much bigger hassle than it ought to be.

HI: Seat Scarcity May Make Hawaii Trips More Expensive This Fall

ASalkever — 2008-08-08T14:00:07-05:00

Get ready for packed airplanes on the routes to the islands this fall--and possibly more connections to get there: The number of airline seats landing in Hawaii from the US mainland and other parts of the world is expected to fall by roughly 13 percent this fall.

Seats from the West Coast should fall by 15 percent; from the East Coast capacity is only declining by six percent. Seat tallies into Hawaii from Japan, Australia and New Zealand will all fall by double-digits.

The news does make some sense considering that two of the largest fliers into Hawaii--ATA and Aloha--both went belly-up recently and that the cost of long-haul flights has skyrocketed with the ever-increasing price of fuel. The upshot? A Hawaii seat squeeze is likely here to stay for some time.

[Alex Salkever is the editor and founder of Hawaiirama, a Hawaii travel blog]

Related Stories:
· Projected Air Capacity to Hawaii off 13 Percent [Biz Journals]
· Hawaii Travel coverage [Jaunted]

[Photo: eye of einstein]

Chicago: O'Hare Having a Party, No One Coming

pbb — 2008-06-17T11:00:02-05:00

While the government is maintaining caps on takeoffs and landings at New York area airports--and some aviation insiders pray for re-regulation--officials at Chicago O'Hare are rolling out the welcome mat. The head of the FAA, Bobby Sturgell, says there will be no more flight caps at ORD, citing a new runway that's scheduled to open this fall.

But airlines aren't exactly clamoring to fill the extra capacity, says the Chicago Tribune:

The flight caps are no longer necessary, or even relevant, because the airline business is in the midst of an unprecedented downturn spurred by record fuel prices and a weak economy.

Both American and United, big-time carriers at O'Hare, have recently announced major cuts in service. JetBlue has all but halted growth--save for some new flights in the Caribbean.

This should help Virgin America with its planned expansion at the airport, right? Possibly, says spokeswoman Abby Lunardini:

[It's] encouraging, but we don't have official word back on our FAA filing yet.

UPDATE: Now Virgin America says it will cut capacity by 10 percent in the fourth quarter of 2008, due to higher fuel costs.

Related Stories:
· Flight Caps to Vanish at O'Hare [CT]
· O'Hare coverage [Jaunted]
· New Airline Routes coverage [Jaunted]

[Photo of the ORD disco lights: diongillard]

JetBlue Drinking American Airlines' Milkshake

pbb — 2008-06-10T11:21:52-05:00

Now that American Airlines is pulling back flights to the Caribbean, JetBlue is expanding its service to Puerto Rico. The low cost carrier is spinning the new flights to San Juan as part of its "commitment to the island," but this is obviously a cutthroat business decision to get AA's newly abandoned customers.

Not that we have a problem with that. American is more than halving its service to San Juan, making it harder to get to PR, and if JetBlue didn't step in, airfares would likely soar.

B6 isn't the only carrier swooping in to pick up capacity given up by another carrier. Southwest is slowly taking over Denver International as Frontier circles the drain.

Related Stories:
· American Airlines Flying Away from the Caribbean [Jaunted]
· JetBlue coverage [Jaunted]

[Photo: Aaron Gustafson]

Staff Cuts Coming to an Airline Near You

pbb — 2008-06-03T15:00:01-05:00

Tacky advertiser and low cost carrier Spirit Airlines may be laying off about half its in-flight staff. The airline notified union leaders this weekend, saying cuts are planned for August 1, though a final decision hasn't yet been made. Any accompanying route cuts haven't been announced either, but you've got to expect them.

New York Times Without a Leg to Stand On For SRO Story

AVB — 2006-04-26T15:39:56-05:00

Well well! How the worm turns, Airbus. After yesterday's fiasco in the New York Times, which published a story asserting that Airbus had been quietly pitching standing-room seats to Asian carriers that included a graphic of what they would look like, Airbus is denying such plans were ever in place. More than that, an Airbus spokesman called it "crap", according to a CNN report.

We don't think that the graphic just magically appeared, Airbus. We understand that you have to deny everything--after all, you were quietly pitching it, not shouting it to the high heavens--but we don't think the report was crap. After all, why would you certify the A380 for so many people (853) when the only way to fit them would be with all-economy seating?

Of course, SRO seats might allow you to have multiple classes and still fit that many. So, if you want to stand and fly, don't lose hope just yet. Maybe they can hook up some stationary bicycles to run the electricity and save on fuel costs? It'll be called the "fitness fare", perfect for those flights back from extravagant vacations.

[Image via Joseph Robertson/Flickr]

Related Stories:
· Stand Up for Your Rights [Jaunted]
· Airbus Denies Report [CNN]