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AIRLINES
US
Airways and United Airlines negotiating possible merger. US
Airways Group and UAL's United Airlines have been negotiating a
possible tie-up that would alter the industry, sources said. Combining
the carriers would result in the second-largest U.S. airline and put
pressure on rivals, particularly American Airlines and Continental
Airlines. "United and US Air are already in the Star Alliance, so
that's a hurdle that's already been cleared," said Hunter Keay, an
analyst at Stifel Nicolaus. "Both of their top executives are the
biggest proponents of consolidation in the industry. And they tried
twice before to merge."
Ryanair.
Ryanair works on plan to charge passengers to use
lavatory. Ryanair is aiming to encourage passengers to use airport
restrooms before they board the plane. The airline is working with
Boeing on a coin-operated door release system that would require
passengers to deposit either a euro or a British pound to use the
bathroom on flights that last less than an hour.
Airline
industry
group
IATA
called on Monday for steps to reopen European
airspace shut down by a volcanic ash cloud and the European
Commission said it may approve compensation for airlines losing USD$250
million a day.
IATA head Giovanni Bisignani criticised authorities in Europe who he
said had "missed opportunities to fly safely".
"This volcano has crippled the aviation sector, firstly in Europe and
is now having worldwide implications. The scale of the economic impact
(on aviation) is now greater than 9/11 when US airspace was closed for
three days," Bisignani said, referring to the September 11, 2001
attacks in the United States.
"We must move away from this blanket closure and find ways to flexibly
open air space, step by step," he told a news briefing in Paris.
Airline shares fell in early trade on Monday and the European Union's
competition chief Joaquin Almunia said the EU Commission is considering
loosening stringent rules for state aid to help airlines hit by the
flight cancellations.
After the September 11 attacks the Commission allowed aid to compensate
airlines for losses directly resulting from the attacks and made it
easier for airlines to coordinate capacity.
European transport ministers were due to discuss the airspace crisis
after a meeting of the European aviation control agency Eurocontrol,
which said on Monday it expected between 8,000 and 9,000 flights to
operate in Europe.
That would represent just 30 percent of normal flight traffic, compared
to earlier predictions by European Union officials that half of flights
could be operating on Monday.
European
Airport
Shutdown
List
US
Airways and United Airlines negotiating possible merger. US
Airways Group and UAL's United Airlines have been negotiating a
possible tie-up that would alter the industry, sources said. Combining
the carriers would result in the second-largest U.S. airline and put
pressure on rivals, particularly American Airlines and Continental
Airlines. "United and US Air are already in the Star Alliance, so
that's a hurdle that's already been cleared," said Hunter Keay, an
analyst at Stifel Nicolaus. "Both of their top executives are the
biggest proponents of consolidation in the industry. And they tried
twice before to merge."
Ryanair. Ryanair works on plan to charge
passengers to use
lavatory. Ryanair is aiming to encourage passengers to use airport
restrooms before they board the plane. The airline is working with
Boeing on a coin-operated door release system that would require
passengers to deposit either a euro or a British pound to use the
bathroom on flights that last less than an hour.
Spirit
Airlines. Passengers increasingly frustrated as airlines launch
more fees: The announcements that Spirit Airlines will charge for
carry-on luggage and Ryanair is looking to charge passengers to use the
lavatory are prompting outrage among travelers. Airline passengers are
wondering what other kinds of fees they will be subjected to as
airlines seek new revenue streams. "There are basic necessities that
are expected on flights -- air to breathe, a seat and a restroom. I
think it's ridiculous to charge passengers to use the toilet," a
CNN.com user wrote.
Macau's
Air Operating Certificate revoked due to financial problems.
The low-cost airline cancelled several flights starting from 26 March
after it failed to pay for fuel, says the Macau government. Flights to
Jakarta, Tokyo, Hanoi and Melbourne were cancelled, leaving hundreds of
travellers stranded at the Macau International Airport. The government
subsequently obtained resident carrier Air Macau's consent to terminate
its sub-concession contract with Viva Macau, say Macau authorities.
Viva Macau started operations in 2006 under a sub-concession agreement
with Air Macau, which had previously held a monopoly on services from
Macau.
Lufthansa pilots have voted to go
on strike for four days this week. The industrial action will
bring chaos to German airports and will cost the airline tens of
millions of euros.
German airports look set to face chaos after Lufthansa pilots voted to
strike in what will be the largest industrial action affecting the
airline in years.
The pilots' union Vereinigung Cockpit announced Wednesday in Frankfurt
that over 90 percent of its members had voted in favor of industrial
action at Lufthansa, Europe's largest airline by sales. The union
represents the majority of Lufthansa pilots, who are now expected to
hold a four-day strike from Monday to Thursday of next week. The
airline reacted by calling the strike "disproportionate" in a statement.
The strike will affect around 4,500 pilots at Lufthansa, its freight
subsidiary Lufthansa Cargo and the low-cost airline Germanwings, a
wholly owned Lufthansa subsidiary. The campaign has the potential to
cause massive disruptions to air traffic and lead to delays and
cancellations affecting domestic, European and long-haul flights.
Last year U.S. airlines turned in their best on-time
performance since 2003. They were helped by fewer flights, a little
schedule padding and a greater focus on improving their operations. The
U.S. Transportation Department said on Friday that the 19 U.S. airlines
averaged a 79.5 percent on-time arrival rate in 2009. Flights count as
on-time if they arrive less than 15 minutes late. Among the largest
carriers, Southwest Airlines had the best record, with 83 percent of
its flights on time. United was tops among the big traditional
carriers, with 81 percent of flights on-time. Hawaiian Airlines, which
operates a fraction of the flights of the big carriers, was first
overall. Airlines have increasingly padded their schedules for flights
to congested airports to improve the chance of arriving on time. They
say the extra time accounts for unpredictable delays, especially at the
three busy New York-area airports, which finished in the bottom third
of the big U.S. airports for on-time departures in 2009. United
finished 2008 with the second-worst on-time record among the big
airlines, just ahead of American. To turn that around, United offered
workers bonuses for first- or second-place monthly finishes, built more
time into its schedules and added spare planes, President John Tague
said on Friday. He said United's on-time improvement was greater than
the amount of time it added to its schedule. He credited United workers
with the improvement. The bonuses added up to $825 per worker for 2009.
Still, only Delta Air Lines had a higher rate of customer complaints
among the big carriers, although United had fewer complaints than in
2008. Tague said the on-time improvement is leading to higher customer
satisfaction levels. Feb 13, 2010
Air New Zealand unveils first
lie-down economy bed. Airline unveils " the first major
improvement in economy class travel comfort in 20 years". When it comes
to a long-haul flight to New Zealand, the thought of 24 hours in an
up-right economy seat is enough to make anyone shudder. But
economy-class passengers will soon have the chance to lie flat like
their envied fellow travellers in business and first. Air New Zealand
has unveiled plans to introduce "beds" in economy class, in what it is
calling the first major improvement in economy class travel comfort in
20 years.
Developed in-house by the airline's designers and engineers, the 22
"Skycouches" will take up the first 11 rows in the economy cabin of the
carrier's new Boeing 777-300 planes, and will be formed out of three
economy seats abreast that fold out to create a lie-flat space
(complete with full size pillows) stretching right up to the seats in
front. The increased space could also provide a valuable play and sleep
area for those travelling with small children. For two adults
travelling, purchasing the Skycouch will be based on buying two seats
at standard prices with the third seat at approximately half price.
Full airfare details will be announced when it goes on sale in late
April.
"For those who choose, the days of sitting in economy and yearning to
lie down and sleep are gone," Chief Executive Officer Rob Fyfe told
reporters. "The dream is now a reality, one that you can even share
with a travelling companion &endash; just keep your clothes on,
thanks." The first routes to offer travellers the Skycouch will be
between Auckland and Los Angeles from December 2010 and Auckland and
London from April 2011. All other services will feature the seats by
around 2012. The airline's Premium Economy Cabin will also be getting
an upgrade and will feature "Spaceseats," set two abreast (it is
currently three abreast) and designed so that the centre aisle seats
can angle together to allow couples to dine at a shared table.
Air Canada
Nut 'buffer zone' ordered on Air Canada flights. The country's largest
airline has been ordered to create a nut-free zone on flights to
accommodate passengers with serious nut allergies. The government
agency overseeing airline consumer complaints on Thursday gave Air
Canada 30 days to come up with a plan to create a "buffer zone" for
each aircraft type when passengers with nut allergies warn them ahead
of time. In addition to proposing the size of the zone, Air Canada must
also tell the Canadian Transportation Agency what it deems adequate
advance notice to institute the specified nut-free area in the cabin.
The agency issued the directive in response to applications by two
passengers, who argued that Air Canada lacked a formal policy to deal
with travellers with peanut or nut allergies. The agency ruled that the
passengers in question are considered persons with a disability, so the
airline must lift any obstacles to their mobility through a formal
policy. The decision, however, provides Air Canada with an out. The
airline can suggest another option to accommodate passengers with nut
allergies if buffer zones constitute an "undue hardship, such as
significantly affecting the commercial viability of its service." In
its decision, the agency says it recognizes that "for operational
reasons," it may not always be possible to provide a buffer zone when a
passenger does not provide advance notice. In such instances when
advance notice is not provided, and where Air Canada is unable to
institute a nut-free zone at the last minute, the airline could place
the passenger on the next practicable flight to give it time to
institute a buffer zone, the decision states. Air Canada spokesman
Peter Fitzpatrick said the airline is reviewing the newly released
decision, and will have more to say later, reported CanWest news. Feb
12, 2010
American Airlines
Southern storm adds to travel woes: Just as severe weather exited the
Northeast, a new system further south canceled hundreds of flights from
Dallas to Atlanta. American Airlines grounded about 240 flights Friday
after a record 12.5-inch snowfall at its Dallas-Fort Worth hub, while
Delta Air Lines canceled about 400 flights at Atlanta's
Hartsfield-Jackson International. Feb 12, 2010
Several big airlines waived fees for passengers who want to change
their flying dates to avoid potentially serious winter storms in the
East, including New York. So-called weather waivers were issued on
Thursday by Delta, United, Continental, US Airways, and AirTran.
Passengers who change their tickets, however, must rebook on flights
within the next few days. The waivers from Continental, United, and US
Airways apply to flights through Sunday. United said its waivers apply
to tickets for travel passing through Washington, Maryland, North
Carolina, New Jersey, New York, Pennsylvania and Virginia on United,
United Express or United code-share flights. Travelers who change their
ticket have to keep the same origin and destination, and rescheduled
travel must take place within seven days of original travel date.
Customers with canceled flights are eligible for a full refund. The
policy covers flights to and from New York's LaGuardia; Pittsburgh,
Philadelphia, Allentown and Harrisburg, Pa.; Atlantic City, N.J.;
Baltimore-Washington; and Reagan National, Dulles, Newport News and
Richmond airports in Virginia. Feb 7, 2010
Continental adds extra New York-London Heathrow flight. Competition
on
the
key business route across the Atlantic will increase this year
after Continental Airlines announced it was adding an extra two daily
services between London Heathrow and New York Newark airports.
The airline will add an early-evening departure from Heathrow from 28
March and an early morning departure from 31 October, taking its
schedule to five times daily.
Continental has also announced that all services in the route and from
Heathrow to Houston will feature flat bed seats in BusinessFirst, its
business-class cabin. The flat seat started to appear on the airline's
services in November 2009.
The seat offers a flat spleeping space of 6 feet 6 inches when fully
extended and is 27 inches wide on the Boeing 777 when the armrest is
flush with the seat cushion. The seats also offer 15.4 inch screens,
laptop power, USB and iPod sockets.
Airlines add "block time" to cut down
on late flights. Airlines are adding minutes to the scheduled
duration of their flights in order to boost their on-time arrivals.
Passengers are noticing the difference. It used to be that "(i)f you
leave late, you know you will arrive late. But now you leave late and
arrive early," said frequent traveler Steve Edmonds.
American considers fill-ins if flight attendants strike.
American Airlines is "committed to the mediation process" with flight
attendants but is willing to train management employees to step in if
attendants go on strike. A company spokeswoman said American has
notified the FAA of its contingency planning, which is standard
operating procedure during contract negotiations. American and its
flight attendants failed to reach an agreement during "lockdown"
negotiations last month, but further talks are scheduled Feb. 27-March
3 in Washington, D.C.
Frequent fliers earning fewer
upgrades, experts say. Frequent fliers are finding it harder to
score first-class upgrades, experts say, with more members qualifying
for elite status even as airlines cut back on capacity. Randy Petersen
estimates that 1% to 3% of frequent flier program members have
traditionally qualified for elite tiers, though that number could soon
reach 5% due to bonus offers for non-flight activity, such as credit
card use. "Over the next two years, unless you're at the mid-tier elite
level and upwards, you're probably never going to be able to get any
upgrades," Petersen says.
Luggage fee rise prompts closer
scrutiny of service. Major airlines recently increased their fees for
passengers to check luggage, prompting some to wonder whether the
increases should spur the carriers to do more to ensure bags arrive
when and where they should. However, government data show that
occurrences of mishandled baggage are down, and experts point out that
luggage is usually misplaced rather than lost. Many carriers are
employing new technology and equipment to further improve baggage
service.
American Airlines
Judge okays class action over skycap tips. A federal judge ruled
Wednesday that skycaps across the country may join a Massachusetts
class-action suit against American Airlines. Hundreds of skycaps say
their earnings plunged after American imposed a $2 charge for curbside
bag checks, and a jury in Boston has already awarded $325,000 to nine
local skycaps. Other airlines have been named in similar suits, but
Wednesday's decision marks the first time that a class has been
certified in such a case. A spokesman for American says the carrier
"respectfully disagrees" with the ruling and is considering an appeal.
Feb 8, 2010
Republic Airways, Bombardier
Republic to restructure Lynx, switch to all-jet
service. Republic Airways said Thursday it will phase out the
Bombardier Q400 turboprops operated by its Lynx Aviation division,
converting the routes to Embraer regional jets flown by Republic
pilots. About 400 Lynx jobs will be affected, and employees will be
offered positions elsewhere at Republic or Frontier, according to a
company spokesman. Republic's chief operating officer said the move
"allows us to better utilize our existing aircraft resources and lower
our cost of operating and maintaining multiple fleet types, while
providing our customers with outstanding jet service." Feb 8, 2010
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".
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