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Tags: Airline Hell / Airline Bankruptcy / SkyEurope / LCCs / Airline News / → All Tags

SkyEurope LCC Folds, Strands Thousands of Passengers Around Europe

There will be no more SkyEurope in the sky...um, over Europe, as the low-cost airline based out of Slovakia ceased operations this morning thanks to bankruptcy. As a result, its five planes (down from 15 in the past) had their flights cancelled, stranding passengers at airports like Bratislava, Prague, and Paris-Orly.

Not only has the deep-sixed airline left their customers in the lurch, but they've also pulled a jerk move in refusing to refund any of the tickets. Instead, they posted a statement to their website encouraging would-be SkyEurope passengers to dispute the ticket charge with their credit cards and then book a flight home on another airline, at additional expense. Them's fighting words!

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Tags: Airline News / Southwest Airlines / Frontier / US Airways / Airline Bankruptcy / Northwest Airlines / → All Tags

US Air Travel Is Way, Way Down For First Half of 2009

Apparently we now have an answer to that question about whether people are flying more because of cheap airfare. Not so much, no:

U.S. airlines served 282 million passengers in the first five months of this year, a 9.5-percent decrease on a year-on-year basis, U.S. business news outlets reported Friday. Figures released by the U.S. Bureau of Transportation Statistics also show that, in the current economic downturn, nearly all U.S. airlines, except Southwest Airlines and US Airways, suffered steep drops in the number of passengers during the period.

Major airlines were hit much harder than LCC's, with Northwest Airlines leading the decline by posting a -20.2% plastering. Southwest served the most passengers, but even they took a 5.3% hit.

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Tags: Airline News / Airline Bankruptcy / Frontier / Southwest Airlines / Republic Airlines / → All Tags

Who Bought Frontier Airlines If It Wasn't Southwest?

Have you got a spare $108 million dollars burning a hole in your pocket, just itching to purchase a bankrupt airline? Well, too bad you missed your chance; yesterday saw the sale of ailing Frontier Airlines to Republic Airways.

And now you ask: "Who/what/where is this 'Republic Airways?!?!'" We know, it's a surprise victor since Southwest was clearly the favorite and even bid $170 million to Republic's measly $108. Airline dorks who love this sort of drama—ok, ourselves—know Republic as the company behind airline brand extensions to smaller, regional service; they specifically run AmericanConnection, Continental Express, Delta Connection, Midwest Connection, United Express and US Airways Express.

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Southwest Looking to Buy Frontier in Bankruptcy Court Bid

The bad news? Frontier Airlines is bankrupt! (Actually, they have been since April 2008.) The good news? Southwest is looking to buy the ailing airline next month in bankruptcy court for a minimum bid of $113 million.

Southwest has posted a Q&A with Ron Ricks, Executive Vice President Corporate Services and Corporate Secretary on their blog. Some highlights?

Southwest is still preparing the [bidding] proposal, so it's premature to comment on the specifics at this time. What we can say is that we are interested in a substantial investment in Frontier and to operate Frontier as a wholly-owned subsidiary, independently and separately from Southwest Airlines, for a period of time until the carrier could be combined into Southwest.

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Tags: Skybus / Airlines / LCCs / Airline Bankruptcy / → All Tags

Skybus Still Settling All Kinds Of Claims

You know we love Skybus, and even though it’s long gone, every once in a while a little tidbit trickles out from its former base in Columbus, Ohio. Nearly a year after its demise, it looks like the airline is finally settling things up with its former workers. They’ve agreed to settle a class-action lawsuit that was filed by employees who were less than thrilled when they found out that their jobs were abruptly terminated.

The lawsuit alleged that Skybus violated the Workers’ Adjustment and Retraining Notice Act by not giving employees advance notice of at least 60 days. If the employees are anything like us—we found out by watching the Today show and throwing the remote across the room—they didn't get any warning.

The details are still being worked out in bankruptcy court—sounds exciting—so no specific settlement figure has been announced yet. The Columbus Regional Airport is trying to get some $5 million in change as well, and it looks like when everything is finalized, Skybus will be able to pay about 76 cents on the dollar to those who it left high and dry—guess that’s better than getting nothing.

Related Stories:
·Skybus To Settle Ex-Workers' Suit [Columbus Dispatch]
·2008's Most Missed Industry Casualty Is... [Jaunted]
·Airline Bankruptcy [Jaunted]

[Photo: msmail]

Tags: Midwest Death Watch / Midwest Airlines / Airline Bankruptcy / Zagat Survey / Virgin America / Singapore Airlines / → All Tags

Despite Death Watch, Midwest Remains Zagat Favorite

The annual Zagat Survey look at airlines is out today, and leather seats are in. Despite a monumentally rough year, Midwest Airlines is still the favorite "mid-sized" airline for coach of the nearly 10,000 people Zagat polled this year. Among bigger players, JetBlue took the top slot with Southwest coming in second. Yep, those chairs are leather, leather and leather.

Midwest, however, didn't show up in the list of winners for "mid-sized" premium product--which isn't surprising given that passengers now have to pay extra for the swanky seats that used to be free. Virgin America, instead, pulled first place for first class; in-seat massages probably helped, uh, finesse the results.

Among legacy carriers, Continental did better than its peers, apparently because survey respondents think free airline food is priceless. (We'd call it worthless.) For international trips, Singapore was the top pick either up front or in coach, but you won't go wrong, Zagat says, with either Emirates or Cathay Pacific either.

Related Stories:
· Global Air Travel Survey Results [Zagat Survey]
· Zagat Airline Survey: The Winners and The Losers [Jaunted]
· Midwest Airlines coverage [Jaunted]

[Photo: md11forever]

Tags: Travel Hell / Alitalia / Airline Bankruptcy / → All Tags

Is It Safe To Fly Alitalia Again?

Short answer: Probably not. While the European Union said Wednesday that a group of new investors could take over the money-hemorrhaging airline, Alitalia will also have to pay back a €300 million ($377 million) rescue loan it received from the Italian government. No one's quite sure where that money's going to come from.

Meanwhile, some staff are organizing impromptu (i.e. wildcat) strikes at airports, delaying departures and forcing flight cancellations. Italian newspaper La Repubblica says even the corpse of a woman headed to Albania can't get where its going, languishing instead at Fiumicino. While Italy's labor minister has suggested the strikes are illegal, that's of little consolation to stranded fliers.

The new Alitalia is supposed to debut on December 1. Will it be ready to fly by then? And will Ryanair's allegation that this takeover is against EU rules further stall the much-needed makeover? We're not planning to find out.

Related Stories:
· EU Backs Proposed Alitalia Takeover [AP, via Google]
· Alitalia Protests Continue, Government Eyes Options [Reuters]
· Ryanair to Appeal EU's "Corrupt" Support [AFP, via Google]
· Fiumicino: Even a Corpse, Delayed for Days [La Repubblica, in Italian]

[Photo: Alessio85]

Tags: Airline Bankruptcy / Asia Travel / Jet Airways / Singapore Airlines / → All Tags

Airline Meltdown Hitting Asia Hardest

And we thought Michael O'Leary was overstating the likelihood of airline failures.

The situation is particularly dire in Asia, an emerging market where airlines surged ahead to suit growing demand, only to see their bookings fall dramatically when the economy took a hit. Carriers from India’s Jet Airways to Singapore Airlines are all frantically selling off planes and reducing routes in an attempt to mitigate hemorrhaging profits.

Says one industry consultant:

There is no airline in this region--and that probably goes for most of the world too--that can be confident they will still be here this time next year.

This is going to be a watershed, if it's not already, not just for the industry but for the global economy... Any airline that thinks otherwise is seriously at risk.

At least the service is still good. The day Asian airlines start cutting amenities so their in-flight service resembles the stiff and starving flights within the United States, we’re just going to give up traveling altogether.

Related Stories:
· Analsysts Warn of Asia Airline Failure as Tourism Slows [Reuters]
· "Dark years" Ahead for Asian Airlines [AFP, via Google]

[Photo: alex-s]

Tags: Flight Reviews / Alitalia / Airline Bankruptcy / → All Tags

First-Person Flight Reviews: How's Alitalia Doing?

As we mentioned less than a month ago, Alitalia is still holding on--and somehow has found enough money to fill the fuel tanks. Though the airline is still flying, not many reviews have been trickling in. But on ReviewCentre, one user doesn't have anything nice to say:

We flew Alitalia from AMS-MIL-AMS. It was one of the worst airlines I've ever flown and I will avoid Alitalia from now on. The service was terrible, the plane was ancient. Never again. I don't understand how KLM can partner with such a terrible company!

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Adventures of Link: Alitalia *Still* Exists

Maybe we were a little early with this lolspeak macro for Alitalia?

After weeks of financial dealings that make the congressional bailout package look like third grade math, the carrier announced a deal with unions to keep it alive. Now that flight attendants have signed off on the rescue plan, it's time to (attempt to) sell Alitalia off piece-by-piece to investors.

At the very least, the airline has earned a re-up for its license by bringing all its unions on board: Alitalia has permission to fly until at least March 2009--as long as it can come up with the cash to buy fuel.

Related Stories:
· ENAC Confirms Provisional License [AGI]
· Alitalia Investor Board Meeting Thursday [Reuters]
· Unions Clear Way for Relaunch [Guardian]
· Alitalia Rescue Hits Next Stage [FT]
· Flight Attendants Sign Rescue Plan [CNN]

Tags: Alitalia / Airline Bankruptcy / Silvio Berlusconi / → All Tags

Your Daily Alitalia Soap Opera Update

Alitalia apparently still has some hope of staying alive, after a couple of key unions signed on for a rescue plan that might also include selling a small stake of the carrier to Air France-KLM. The Italian airline could lose its license to fly if a plan to pull it out of bankruptcy doesn't come together by the end of today.

Little problem though: Pilots and flight attendants still haven't agreed to the latest deal. And that interest from Air France is--at this point--not guaranteed. (That carrier actually tried to take over Alitalia earlier this year but gave up because of trouble with unions, among other things.)

So while there's a glimmer of hope today, we're not rushing out to buy tickets on Alitalia. Then again, we never were. Maybe that was part of the problem?

Related Stories:
· Italy PM Aide Seeks to Revive Deal [Reuters]
· Last-Minute Hope to Save Alitalia [IHT]
· Alitalia coverage [Jaunted]

[Photo: Wikimedia]

Tags: Alitalia / Airline Bankruptcy / Silvio Berlusconi / → All Tags

Adventures of Link: Alitalia Not Quite Finished... But Close!

The Alitalia saga continues today, though so far the airline hasn't been grounded by Italy's civil aviation authority.

When we checked the carrier's website on Friday, it was still offering trips around the country and even internationally. Today, though, you'll also find a last-ditch effort from the airline asking for buyers. (It'll be published in some European newspapers tomorrow.)

You've got to admire the tenacity of Alitalia's "special administrator," who's been charged with finding any way possible to keep the airline aloft. But Silvio Berlusconi's spokesman said it best:

Buyers are not queueing up for Alitalia.

Related Stories:
· Alitalia's Days Numbered [Reuters]
· Alitalia Sends up SOS for Bids [AFP, via Google]
· Alitalia Could Be Grounded in Three Days [Telegraph]
· What if Alitalia Fails? [TIME]
· Alitalia's Not Quite Dead [TCF]