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AIRLINES
Delta Air Lines says it will probably close its
Cincinnati crew base as it focuses on the
Pacific Northwest for more flights to Asia. About
225 pilots would be affected by the move, and the
airline also extended its buyout offer to some
1,000 additional employees at CVG.
Report suggests Southwest's no-bag-fee strategy
could pay off. Many airlines are charging
increasingly higher fees for passengers to check
their luggage in an effort to bolster revenue. But
Southwest has maintained its commitment to forgo
luggage fees. The consultancy IdeaWorks recently
issued a report that says Southwest has lost out on
millions of dollars of revenue, but the strategy
likely will benefit the carrier in the long run as
more passengers switch airlines to avoid the
charges.
Experts see better 2010 for the airlines, but
caution a slow recovery. Analysts and industry
insiders see a better year for airlines in 2010,
though they caution that the nascent recovery
appears slow and uncertain. During January earnings
calls, airline CEOs reported improved revenue
trends but noted that comparisons were easy due to
extremely poor numbers for the previous year.
Meanwhile, Standard & Poor's Ratings Service
warned in a report last Friday that improving
economic conditions could have a downside for the
industry. "We are concerned that global economic
growth, particularly in healthier regions such as
Asia and the Middle East, could cause an upturn in
oil prices that outpaces weak economic (and
consumer) recovery in the U.S., causing a drag on
airlines' earnings and cash flow gains," the
company said. Reported by The Dallas Morning
News
Airlines Adding Checked-Baggage Charges.
Emboldened by the revenue success of
checked-bag fees, several carriers this week said
they are implementing new charges, including Alaska
Airlines' plan to follow legacy carriers in
implementing a first-checked-bag fee, US Airways'
plan to add a $5 surcharge for customers paying to
check bags at the airport and Delta Air Lines'
intention to bring its second-bag fee to
international markets. US Airways said economy
customers traveling on or after July 9 would have
to pay an additional $5 if they elect to settle
checked-bag charges at the airport. The carrier,
like all of its domestic legacy carrier
competitors, already levies a $15 fee for the first
bag and $25 for the second. The carrier today began
enabling customers to prepay first- and second-bag
fees as they check in online through its Web
site.

Delta Air Lines and United airlines have added
more days next year that will be subject to
holiday- and peak-travel airfare
surcharges.
Most airlines have imposed $20 one-way surcharges
on peak days near Thanksgiving and Christmas and
heavy-traffic days in the spring.
Delta, which merged with Northwest, and United have
upped the going rate, now charging an extra $30 for
March 14, 20, 21 and 28, and April 5 and 11.
New surcharges and dates include $10 on March 7-10,
15, 18, 19, 22, 25-27 and 29; April 1-4 and 8-10;
and $20 on Feb. 12.
A $50 one-way surcharge will be imposed by Delta/
Northwest on Feb. 8 &emdash; the day after Super
Bowl XLIV in Miami &emdash; for travel from South
Florida airports to most of the cities it serves,
said Rick Seaney, whose FareCompare.com also tracks
fares.
US Airways, which has not matched the new
surcharges, plans a 5 percent surcharge for all
flights beginning May 8, Parsons said. Other
airlines will watch how the traveling public reacts
to US Airways' higher fares. Parsons said airlines
are looking for new revenue in a down economy, and
the surcharges may mean higher fares next
summer.
British Airways and Spain's Iberia is delaying and
could even ground the carriers' plans to merge
due to the global financial uncertainty,
sources close to the deal and analysts have said.
Analysts say that volatile markets have made it
almost impossible to value the two airlines, both
are more focused on fighting the worst sector
downturn in a generation, and a power struggle for
control of Iberia's biggest shareholder has put the
deal in jeopardy. The Spanish airline said on
Thursday it was unlikely to make a profit this year
and would propose scrapping its 2008 dividend in
the light of weak demand from Spaniards, sliding
business traffic and general price pressure. An
official at Spain's UGT union said on Thursday the
Spanish flag carrier made a EUR100 million euro
operating loss in the first two months of 2009.
Friday's edition of Spain's La Vanguardia newspaper
cited sources close to Iberia as saying business
was so uncertain at the moment that it made it
practically impossible to move merger talks
forward. A Spanish source familiar with the matter
said that if a deal was done, it was unlikely to be
struck before Spaniards returned from their summer
breaks in September. "We are hearing that the
merger could be delayed until after the summer," he
said. A spokesman for Iberia said only that "merger
talks are ongoing".

Delta
Air Lines. said Friday it will begin flights to and
from Dallas Love Field this summer. The move
will put Delta, the world's largest airline
operator, head-to-head against Southwest Airlines,
the dominant carrier at close-in Love Field. To
meet with legal restrictions at Love Field, Delta
will operate three daily nonstop flights between
Dallas and Memphis, Tenn., with 50-seat regional
jets. Federal law limits nonstop flights from Love
Field to states far from Texas, including
Tennessee, but there is an exception for planes
with 56 or fewer seats. Atlanta-based Delta said
the service would begin July 6 and be operated by
Pinnacle Airlines under the Delta Connection name.
Delta affiliates already offer three daily flights
to Memphis from Dallas-Fort Worth International
Airport.
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