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Virgin Atlantic, BA Squabbling over Heathrow Slots
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 ฃ20 million ($37 million) a pair. His response?
I won't
Related Stories:
· Willie Walsh Vows Airline Will Not Surrender Slots [UK Times]
· Airline Mergers: American, British and Iberia Finally Make a Deal [Jaunted]
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Branson to U.S. Presidential Candidates: BA & AA Alliance Spells Bad News for Competition
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.
Tags: Hawaii Travel / Airlines / Airline Analysis / → All Tags
Seat Scarcity May Make Hawaii Trips More Expensive This Fall
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]
Tags: ORD / Bobby Sturgell / Airports / Airline Analysis / Virgin America / → All Tags
O'Hare Having a Party, No One Coming
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]
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JetBlue Drinking American Airlines' Milkshake
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]
Tags: Spirit Airlines / Skybus / United / American Airlines / Airline Bankruptcy / Airlines / LCCs / Low Cost Carriers / Airline Analysis / → All Tags
Staff Cuts Coming to an Airline Near You
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.
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New York Times Without a Leg to Stand On For SRO Story
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]
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Stand Up for Your Rights
Are there plans afoot to make flying even more miserable than it already is? Beyond whatever nickel and dime policies carriers are toying with these days, a new concept for airlines could be headed to an Airbus near you: Standing room only seats, first reported in the New York Times. Passengers would be secured to a padded backboard with a harness like wearing a backpack; Airbus is pushing hard for this configuration on their new A380.
Is it safe? According to the Times, there are no legal impediments to standing room seats here in the U.S.:
The Federal Aviation Administration does not mandate that a passenger be in a sitting position for takeoffs and landings; only that the passenger be secured. Seating must comply only with the agency's rules on the width of aisles and the ability to evacuate quickly in an emergency.
The Air Transport Association, the trade association for the airline industry in the United States, does not have any seat-comfort standards. Nor does it issue any recommendations to its members regarding seating configurations.
The standing room configuration is just one solution available to airlines as they contemplate how to fit more passengers in each plane. Slimmer seats and a inch less of legroom can combine create another six seats on a 737. Presto! Instant revenue.
Given the choice between hideously cramped seats and standing, we choose standing. Is it any worse than taking the subway?
Related Stories:
· A Place to Stand [NY Times]
· Airbus considering SRO Seats [Today in the Sky]
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The Hidden Costs and Garish Colors of Affordable Europe
Great round-up from this weekend's New York Times Travel section on affordable Europe (sample advice: public transportation is cheaper than a taxi!) on the different ways to get around the continent without blowing your budget. The usual suspects all make appearances--a Eurail Pass, long-distance bus travel, Ryanair--but there are some interesting nuggets as well.
One, low-cost carriers are multiplying like rabbits, so much so that each European nation has one--just like the old days of air travel on the continent! New carriers that we hadn't heard of before include Spain's Vueling and KLM-owned Transavia. Looks like Wizz Air has some company.
Beyond that, all those taxes and add-ons for LCC tickets add up. A Ryanair ticket between Stansted and Dublin or Berlin, advertised for less than a dollar, works out to $62 round-trip. It's enough to make a budget traveler in Europe support the flat tax. Almost.
[Image via lorentey/Flickr]
Related Stories:
· Getting Around Europe Cheaply [NY Times]
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Good Circulation is Overrated
When it comes to the airline industry, being wedded to an idea spells trouble. British Airways is learning just that. They are feeling the heat from Ryanair and easyjet, and have responded by cutting fares within Europe by about ten percent. Their fares will remain higher than their competitors, but they offer free luggage check-in, food and other amenities than the low-cost carriers do not give away. Even in these tough times, B.A. is shooting for ten percent margins on their tickets. Ryanair, however operates on a twenty-five percent margin; that's tough competition for B.A. to match.
Northwest, meanwhile, is already tweaking their horrible $15 charge for exit row seating. They plan to set aside some of the quality coach seats for frequent fliers who amass 25,000 miles a year in their World Perks program. That's right, getting an aisle seat has officially become a perk. Frequent fliers will get a crack at the seats for free the same time they go on sale for everyone else. Northwest will stop selling the best coach seats to regular fliers entirely, setting them aside for World Perks members. Northwest is trying to enrage just about everyone this with this new program, and it looks like they are succeeding.
Of course, if you don't get a coveted coach seat, you'd better bring your special socks. According to a British study, "flight socks", which compress the leg to regulate blood flow, reduce the risk of Deep Vein Thrombosis by 90%. Unless you're Alfonso Soriano, they look dorky, but wearing them is still preferable to giving Northwest that extra $15 for an aisle seat.
[Image via jecate/Flickr]
Related Stories:
· BA Slashes Prices [Times of London]
· Northwest Drops Legroom Fee for Some Fliers [USAT]
· Flight socks can cut risk [Guardian]
· Previous Airline Analysis [Jaunted]
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Flight Attendant Pin-Ups
Coffee, tea, or me? If you need to get attention, taking off your clothes is always effective. That's why some long-standing (geddit?) stewardesses have created their second annual pin-up calendar -- to raise awareness about the cutbacks flight attendants have had to endure in their retirement packages and pay. This week marks the upcoming release of the 2007 edition. Sadly, there are no pics from the new calendar online just yet.
Of course, if the ladies are old enough to worry about their retirement pacakges, they may not all be pin-up material. Even so, the proceeds goes toward helping fellow flight attendants who are in financial trouble, and that's all right by us.
They've got really strong legs, though. Look at those gams!
Related Stories:
· Stewstripped [via Fleshbot]
· Surrendering Modesty but Cloaked in a Purpose [NYT]
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Fueling Paranoia
The news is grim this week from the world of airlines. From the struggle of low-cost carriers to compete with rejuvenated legacy airlines, to possible strikes at others, it's hard to say when the outlook will ever be rosy for the industry. So what else is there to do other than keep on expanding and focus on branding, right?
Well, that's what JetBlue is doing. Everyone is hurting from increased fuel costs--even Southwest, who heavily hedged their purchases of fuel back when oil was about $30 a barrel--since hedges eventually run out. JetBlue announced this week that they will begin flights from JFK to Charlotte and Raleigh. Both are huge hubs; Charlotte for US Airways, Raleigh for American. JetBlue may not be ready for that kind of competition, but they're diving in headfirst nonetheless.
Many of the low-cost carriers are moving into tough markets because they are desperate to find additional revenue. Southwest is looking for gates in Dulles and Philadelphia, which is a serious turnaround from an operator whose only presence in the New York City area is at Islip airport. Still, the LCC's are likely to start reevaluating where excess capacity can be trimmed very, very soon if this new strategy doesn't work.
Delta, meanwhile, is facing serious pilot problems; they are negotiating with their pilots, asking them to take an 18 percent pay cut, which amounts to $305 million. If they don't agree, the pilots could strike as early as Tuesday. Where do we stand in this labor dispute? Let's just say that a lot of that money could come from executive pay, and that the pilots took a 32 percent pay cut, or $1 billion, in 2004. Delta needs to look elsewhere for that money. Maybe getting rid of Song wasn't such a good ideal after all.
[Image via yuzu/Flickr]
Related Stories:
· Delta Stays Quietly Hopeful [WaPo]
· Cost Advantage of LCCs Eroding [Reuters]
· Carolina Blue? [Today in the Sky]
· Previous Airline Analysis [Jaunted]
