More bad news for the Milwaukee-based airline: Northwest Airlines' 47-percent share in the carrier has lost so much value that NWA has written off its $213 million investment in Midwest Airlines, which it bought with TPG Capital in January.
Paying passenger traffic for Midwest also dropped 16 percent in July compared to last year's numbers with 324,002 brave souls taking the ailing carrier. Northwest ended up buying Midwest to keep budget carrier AirTran from gaining a toehold in Milwaukee; now it's looking like they just ended up with a white elephant.
AirTran will shed 480 pilots and flight attendants in September, reducing the carrier's total in-flight workforce by 14 percent. The announcement comes on the heels of company-wide salary cuts that will reduce pay by an average of 10 percent.
Along with the staff reductions, overall capacity on AirTran will decline by about five percent in September, though it's not yet clear what cities or routes could be eliminated. One assumes Orlando is safe, given the city's recently announced advertising agreement with the carrier.
Like so many airlines before it, AirTran blames the cuts on escalating fuel prices. Says a spokesman:
It's a necessary step that's part of adapting to a more difficult economic environment. It is largely driven by fuel.
Not long ago, American Airlinesdecided to cut back service to San Juan and by extension the rest of the Caribbean. Almost immediately, JetBlue decided to scoop up some of that extra capacity. Now AirTran wants a piece of the action, too.
The LCC will add a seasonal flight this winter from Baltimore, and additional flights from Orlando and Atlanta will also go on the schedule.
American was pretty much screwed either way, deciding between raising fares--and losing customers--to pay for jet fuel or losing money while maintaining a schedule that would keep smaller, low cost airlines like JetBlue and AirTran out of its market. We'd feel bad for AA, except, well, you remember what happened this April.
As Chicago O'Hare tries to expand, another airport is clinging to life. Stewart International in Newburgh, New York was looking good at the beginning of this year, with new Skybus service and a $500 million investment plan from the Port Authority that had recently taken it over. (The agency envisioned it as the New York area's potential fourth major airport.)
Now, just months after the Skybus meltdown, AirTran says it will pull out of the airport on September 3. As carriers abandon Stewart and carriers across the country cut back, though, the Port Authority is moving ahead with its plans:
"We know that this is a remarkably resilient industry. Stewart is key for us for providing greater capacity for the region," says spokesman Pasquale DiFulco. "And we remain committed."
Even Congress is getting involved: Rep. John Hall penned a note to AirTran, asking the carrier to stay at Stewart. No telling if that'll work, but he might want to ready more letters: Delta, Northwest and US Airways all serve SWF.
It's not quite a MILF promotion, but AirTran is definitely aiming for the 18-to-35-and-male set with its newly christened 717, "AirTranica Won." Named in honor of Danica Patrick, the plane's special livery celebrates her historic IndyCar racing victory on Sunday.
AirTran is also hoping to lure race fans with its new Flash game, AirTran Raceway. It's not as much fun as some of the internet timewasters we've enjoyed, but it's a decent lunchtime diversion. (While its fun to imitate Michael Bluth, we don't recommend driving the stair car.)
If that's still not enough IndyCar for you, it's worth mentioning that AirTran has XM radio on all its flights. You'll find racing news and updates on channel 145.
With apologies to George Orwell, some airline seats may be more equal than others. And the airlines know it. That's why you may find yourself shelling out for better seats these days, even if you're still stuck in coach.
On Virgin America you'll pay $15 or $25 extra for a bulkhead seat, depending on the length of your flight. Northwestfamously started charging $15 for exit row seats last year and AirTran now takes $20 for its spacious seats. Spirit Airlines keeps a cache of sweet spots in the front of the plane, but you won't get 'em without a $30 surcharge.
We can hardly blame airlines teetering on the brink of profitability for this nickel-and-diming, but creating a separate, bookable premium service like foreign carriers have would certainly look less sleezy. (And, heaven forbid, might actually create some customer loyalty!)
Virgin Atlantic created the "premium economy" class in 1992, and Air New Zealand, BMI and British Airways now all offer not-quite-business-class seats, perfect for long-hauls. Those seats may cost a little more, but you'll still be able to move your legs by the time you touch down.
You could drive the (roughly) 400 miles from Atlanta to Memphis a couple of weekends from now, or you could save a bit of time and energy and gorge yourself on BBQ when you get there. The world famous Memphis in May World Championship Barbecue Cooking Contest ("Superbowl of Swine," "College of Pig Knowledge") will take place on May 17, 18 and 19 in downtown, bringing together eaters and grillmasters from around the country and around the world. Single day tickets cost $7. We pulled up this sample fare for flight dates of May 16-19, as AirTrain prices jump for Sunday returns. For what it's worth, NWA is matching the deal...if you're into that.
The faux-scandal involving AirTran's decision to boot a family with an unruly child from one of its flights is still getting attention, unfortunately. We tried to brush over it given the family's mediawhoring, and abounding vague suggestions that AirTran actually did something wrong. But we kept hearing about it this weekend. Many people not only agree with the fact that AirTran honored its responsibility to the 100+ other passengers on the flight, but don't think the airline should have offered any sort of compensation to the family beyond re-booking on another flight.
You can view their appearance on Good Morning America here, but make sure to check out the still-popping FlyerTalk thread for important details on the case--like the fact that the child's parents couldn't get her to stay in her seat (an FAA requirement). For the record, while we have a tiny bit of sympathy for parents of demon children everywhere, we're with AirTran on this one. So much so, in fact, that we might have to test out their newly-announced service to San Diego sometime. The only sad thing about this story is the realization that it won't lead to loud babies being banned from flight anytime soon...or ever, sadly.
