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Monday, February 16, 2009
Bill introduced to put slots at BWI

Airline passengers may soon be able to play slots in the Baltimore Airport between flights. The Associated Press writes, "with the bidding process off to a shaky start for five slots parlors in Maryland, a state delegate has introduced a bill to place slots inside BWI-Marshall Airport. The bill would allow a slots parlor to be opened inside the airport terminal with up to 3,000 machines. Voters would have to approve it as an amendment to the state constitution." --Rebecca Heslin

Singapore Airlines to cut capacity, ground planes

The Associated Press is reporting that "Singapore Airlines Ltd. said it plans to reduce flights and ground more than a dozen planes as people travel less amid the global economic slowdown. The carrier said it will reduce capacity by 11% between April and March 2010 from the previous twelve months and decommission 17 aircraft after air cargo shipments fell 20% recently." --Rebecca Heslin

Airport Check-in: Delta lowers airfares at Cincinnati airport

From USA TODAY reporter Roger Yu's Airport Check-in column: "

Following years of complaints from customers and local business leaders, Delta is lowering ticket prices at its Cincinnati/Northern Kentucky hub.

Delta's cuts at the nation's most expensive airport will range from 5% to 60%, and are effective immediately for all types of fares. About 80% of the airport's customers would benefit from lower prices, the airline says.

The lack of competition at Cincinnati, where about 90% of the flights are operated by Delta, has driven fares higher at the airport for years, and many residents drive to nearby airports to get cheaper flights. Its average fare was nearly $600 in the third quarter of 2008, compared with the national average of $362." Read more. --Rebecca Heslin

Bunk beds on the A380?

For those passengers who walk longingly past the premium cabins to spend many hours in a cramped seat with limited flexibility, Airbus may have a solution: bunk beds.

The Times (of London) reports that the European aircraft manufacturer is studying ways to let coach passengers lie flat. “It’s been the holy grail to find a way of allowing premium passengers to sleep horizontally," Airbus design official Robert Lange tells The Times, who adds, as quoted by The Telegraph: "It’s some way off, but bunk beds could be the answer, as we are not currently using the full volume of the cabin.”

That means an A380 cabin could be configured in a way "not dissimilar to the old-fashioned sleeper trains," aircraft-interior specialist Howard Guy tells The Times. But there's a hitch: Because safety regulation won't allow passengers to lie in bed during takeoff and landing, it's not as simple as installing mattresses instead of seats. “So beds will have to convert to seats - and that’s when it becomes expensive,” adds Guy.

Among the possible solutions: Finding a way to convert upright seats to lie flat beds (while still retaining coach seating capacity), or running beds stacked in a staggered pattern around the edges of the fuselage.   

The Telegraph story also claims that Airbus is looking at providing wider seats, as more passengers are becoming obese. It cites a UK survey indicating that "half of all British holidaymakers are too fat to fit into conventional airline seats." -- Ben Abramson

Friday, February 13, 2009
Long Beach officials suspend airport privatization talks

City officials in Long Beach, Calif., are temporarily suspending further discussions about privatizing the Long Beach Airport, according to the Los Angeles Times.

"Our plate is full right now, and a lot of things are happening," Long Beach City Manager Patrick West told the newspaper. The privatization proposal "went to the back burner."

The Long Beach City Council had planned to discuss the controversial issue in a closed session Jan. 6, but postponed it after local citizens and several council members called for opening it to the public. The hearing was postponed, but never re-scheduled.

Late last year, the city received unsolicited inquiries about the sale or long-term lease of the airport from several Wall Street firms, including Citigroup, J.P. Morgan, Goldman Sachs, Merrill Lynch and Morgan Stanley, the LA Times reports.

Privatizing an airport would initially generate a financial windfall, but the controlling public entity — typically, a city government or an aviation authority — would relinquish operational control and future revenue to the private operator.

Long Beach and several other cities are contemplating the option as airport revenues dwindle along with the economy and travel demand. Long Beach is facing a projected $15.7 million revenue shortfall this year, the LA Times says.

The federal government has an experimental program that would allow five airports in the country to be privatized, only one of which can be a hub airport. Chicago Midway is the only applicant still being actively considered, while four other non-hub slots remain available. -- Roger Yu

Atlanta Hartsfield: Security wait time down to less than 10 minutes

The wait time at Atlanta Hartsfield-Jackson's security checkpoints is down to less than 10 minutes, the airport says.

In October 2008, the world’s busiest airport opened 10 more checkpoint lanes, bringing the total to 32. The airport says its goal for the $26 million investment was to reduce the screening wait time to less than 20 minutes during peak times and less than 10 minutes during off-peak hours.

In the first 100 days of operation, there were only five instances when the wait time for passengers to be screened reached 20 minutes, compared with 160 instances in the same period the previous year, according to the airport.-- Roger Yu

Airport Check-in: Expect smaller airport crowds through 2011

From USA TODAY's Airport Check-in column: "U.S. airlines operating at 146 domestic airports will carry 41 million fewer passengers in 2009, and the decline will continue through 2010, according to a report by aviation consulting firm Boyd Group. About 578 million passengers will fly in 2009 vs. 619 million in 2008, the report estimates. Depending on the depth of the recession, the traffic volume could fall again in 2010 by 93 million."

" 'Our model assumes a return to economic stability in 2011,' says Michael Boyd, president of the Evergreen, Colo.-based firm. 'But in the meantime, there will be significant contractions in revenue streams in several areas of aviation.' U.S. airports will collect $573 million less in passenger facility charges — a major source of construction funding — from 2009 to 2011, the report says."

Delta CEO gives bleak assessment of demand

"In a recorded message to employees, [Delta] CEO Richard Anderson did not specifically say the world's biggest carrier plans to cut more jobs or capacity than previously announced, though he did suggest the erosion in demand that the airline has seen has been very difficult," The Associated Press writes.

"Passengers, our customers, are not buying tickets at rates they were buying tickets a year ago," Anderson told employees. "Obviously, we wish we didn't have to decrease our capacity, but we cannot fly our airplanes around at low load factors."

In the latest round of buyouts offered to employees, the airline has said it expects 2,000 to take the voluntary severence. The airline plans to cut its capacity between 6% and 8% over the course of 2009. --Rebecca Heslin

Union: American CEO won't meet on pilot contract talks

Pilots' union officials are complaining that the CEO of American Airlines won't meet with the union's president to discuss stalled contract talks, The Associated Press is reporting. CEO Gerard Arpey is arguing that both sides should instead give federal mediators more time to broker an agreement.

"The standoff, detailed in letters back and forth between the two leaders, is the latest sign of tension between AMR Corp.'s American Airlines and its three unions," AP writes. "Federal mediators have been enlisted to help in all three negotiations. Employees want to recover wage cuts they took in 2003, but the company, which lost $2.1 billion last year, wants to hold the line on spending."

Susan Gordon, a spokeswoman for American, told AP that "'it's not typically the role of the chairman and CEO' to take part directly in negotiations. She added that Arpey had invited Hill to attend regular meetings with himself and other top executives outside of negotiations, but that the union chief had declined." --Rebecca Heslin

Airport Check-in: More room to park at Minneapolis-St. Paul

From USA TODAY's Airport Check-in column: "Minneapolis-St. Paul has completed expanding its main parking garage at the Humphrey Terminal. With 4,000 additional spaces, the eight-story facility now accommodates 9,500 cars."

Delta supports 'date of hire' seniority integration for flight attendants

"Backed by management, a group of flight attendants at Delta Air Lines Inc. who were with the company before its acquisition of Northwest Airlines want the two carriers' seniority lists combined based on date of hire, and they are pushing the union that represents Northwest flight attendants to move forward with the plan," The Associated Press writes.

According to the Dayton Business Journal, Delta "said Thursday it supports a 'date of hire' integration strategy pitched by a committee of pre-merger Delta flight attendants to the union representing Northwest Airlines' attendants."

This is different than how the pilots of the newly merged airline decided their seniority plan.The pilots opted for an arbitration panel. "In the case of the pilots, the panel ruled that their seniority lists should be combined based on pilots' status and aircraft category, though pilots from one carrier will not be able to fly for a period of time certain planes that the other carrier brought to the combination." --Rebecca Heslin

Friday morning news roundup

The Dallas Morning News: United Airlines employees will get $100 bonuses for January because the carrier ranked first among hub-and-spoke carriers in on-time performance.

Wall Street Journal: "Air passengers may be able to claim millions of pounds in compensation for canceled flights after a settlement between British Airways and a group of complainants, U.K. newspaper The Times reported Thursday. European Union law requires that EU-based carriers compensate passengers for canceled flights, unless carriers can rebook passengers."

The Dallas Morning News: "WestJet said its fourth-quarter profit fell 46 percent, from $75.4 million (Canadian) in 2007 to $40.8 million in 2008. For full year, its profits fell 7.6 percent, from $192.8 million in 2007 to $178.1 million in 2008. SkyWest said its fourth-quarter profit fell 48 percent, from $40.9 million in 2007 to $21.2 million in 2008. For full year, its profits fell 29 percent, from $159.2 million in 2007 to $112.9 million in 2008."

The Associated Press
: "Brazil's newest airline says it will add more planes and increase its destinations this year. Azul Airlines says it will double its destinations to 10 by April and add five planes to its fleet of seven by June." Azul Airlines founder David Neeleman is the former JetBlue CEO. --Rebecca Heslin

A Continental plane crashes near Buffalo

A Continental plane with 48 people aboard crashed near Buffalo late Thursday.

An emergency director told the Associated Press there have been "multiple fatalities" after Continental Flight 3407, with 44 passengers and four crew members on board, hit a house in Clarence, N.Y. around 10:20 p.m. Thursday.

Citing state police officials, MSNBC reported early Friday that there were no survivors. Several reports, including Buffalo News, said at least one person on the ground died in the crash, and 12 homes near the crash site have been evacuated.

The plane, which departed from Newark Liberty, was approaching Buffalo Niagara International. The Bombardier Dash 8 Q400 plane was operated by Manassas, Virginia-based Colgan Air.

Colgan Air, a regional airline founded in 1991, was acquired by Pinnacle Airlines in 2007.

"At this time, the full resources of Colgan Air's accident response team are being mobilized and will be devoted to cooperating with all authorities responding to the accident and to contacting family members and providing assistance to them," Colgan Air said in a statement. "Airline personnel and local authorities have already begun working to confirm the number of people on board and their identities." Relatives and friends of those traveling on flight 3407 who want to give or receive information may telephone the family assistance number at 1-800-621-3263, it said.

UPDATE: The Associated Press confirms that all 48 people on board and one person on the ground were killed in this crash. -- Roger Yu

NTSB: Birds in ditched jet's engines were geese

According to The Associated Press, "Bird remains found in both engines of the North Carolina-bound US Airways jetliner that ditched into New York's Hudson River last month have been identified as Canada geese, federal safety officials said Thursday."

The National Transportation Safety Board used experts from the Smithsonian Institution to examine 25 samples of bird remains to come to this conclusion.

According to the Federal Aviation Administration and the Agriculture Department, "from 1990 to 2007, there were nearly 80,000 reported incidents of birds striking nonmilitary aircraft, about one strike for every 10,000 flights," AP writes. --Rebecca Heslin

AirTran adds bite to its inflight menu

The Dallas Morning News' Airline Biz blog is reporting that "AirTran is going to start selling snacks, called Sky Bites, on 60 of its flights immediately, other flights in the near future. Individual items will cost $1 to $4, and combo packages with premium beverages will cost $4 to $6. Think cookies, crackers, nuts, raisins and the like."

According to the Witchita Business Journal, "A la carte selections include Kraft Foods snacks, such as Oreo Cakesters, Chips Ahoy! cookies, Nilla Wafers, Cheese Nips crackers; or a snack box containing Wheat Thins crackers, Planters Smoked Almonds, Oreo cookies, Garden Veggie Cheese Spread and Sun-Maid Raisins. A variety of combo meals include a snack and a premium beverage. Purchases of Sky Bites may be made with credit or debit cards." The Business Journal also reports that the airline is adding two new beverages to its menus: FUZE Slenderize Strawberry Melon and Glaceau smartwater. --Rebecca Heslin

Delta lowers fares at CVG, offers up to 25,000 bonus miles

For a long time, Cincinnati-Northern Kentucky Airport has held the record for having the highest airfares in the USA. But times are changing.

According to the Wall Street Journal's Middle Seat Terminal, Delta last week announced fare cuts between 5% and 60%. Those cuts include both business and leisure tickets. "Delta Airlines’ connecting traffic accounts for more than 70% of CVG’s total passengers. And the Atlanta-based carrier accounted for roughly 92% of total passenger volume in 2007," the Terminal writes.

Delta Spokeswoman Betsy Talton told the WSJ that the airline is “always evaluating our fares in every market and making changes as needed to stay competitive. In Cincinnati, we’ve closely watched customer buying habits and found an increase in the number choosing to fly out of alternate airports in close proximity.”

The Terminal also spoke to aviation experts to get their take on the cuts. "Aviation consultant George Hamlin suggested that one could see the decision to cut fares at Cincinnati as a way of providing some cover for any eventual pullout from the hub," WSJ reports. "'This enables Delta to say, 'Well, we tried. We put in low fares, and the economics weren’t there,' Hamlin told the Terminal in brief interview."

In addition to airfare cuts, Delta announced on Thursday that they will offer up to 25,000 bonus reward miles for Cinncinnati flights.

"The promotion is available to Delta SkyMiles members who register at delta.com/cvgbonus and fly on or before May 12," the Business Courier of Cinncinnati reports. --Rebecca Heslin

SkyTips: Writing an effective airline complaint letter

Earlier this week, United announced that it would pull the plug on the phone line it uses to take calls regarding complaints. "We did a lot of research, we looked into it, and people who e-mail or write us are more satisfied with our responses," says United spokeswoman Robin Urbanski.

With that in mind, what tips do you have for writing an effective complaint letter or e-mail to an airline. What information should you be sure to include? And what should you leave out? What strategies seem to have worked for you in the past? Share your tips.

Previous SkyTips
Feb. 6: What to do when you have a legitimate reason to miss a flight?
Jan. 30: Flying within Europe
Jan. 23: Finding the best seats on your flight
Jan. 16: Using elite status on 'partner' airlines
Jan. 9: What to do when you miss a connecting flight
Jan. 2: Finding 'lost' luggage
Dec. 19: Reveal your airport secrets
Dec. 12: Guarding against unexpected e-ticket snafus
Dec. 5: Taking advantage of foreign airlines' frequent-flier programs
Oct. 24: Donating miles to charities, good causes
Oct. 17: Killing time in an airport
Oct. 10: Renting cars at airports
Oct. 3: How to cope when you're bumped from a flight
Sept. 26: Getting to and from the airport
Sept. 19: Share your advice on how to pack carry-on bags
Sept. 12: How to kill time in the airport
Sept. 5: Dealing with rude passengers
Aug. 29: Traveling with children and the elderly
Aug. 22: Getting work done at the airport
Aug. 18: How do you sleep on a plane?
Aug. 8: Gaining access to airport lounges
Aug. 1: Do you make contingency plans when you fly?
July 28: Using mobile devices to ease your travel
July 17: Finding the lowest airfares
June 27: How to navigate your way through security
June 20: How do you find available dates for frequent-flier tickets
June 13: Getting customer-service results
June 6: How to avoid checking a bag

Thursday, February 12, 2009
American Airlines updates amenity kits for premium passengers

Responding to feedback from customers and flight attendants, American Airlines says it's sprucing up amenity kits for passengers in first and business class. The zipper-case kit includes Burt’s Bees lotions and lip balm, Colgate toothpaste, a toothbrush with a re-sealable cap, thicker plush socks and larger eyeshades. The carrier last updated the kit in 2007. --Roger Yu

U.S. airlines carry 13% fewer passengers in November

The federal government has more data confirming what airline industry watchers already suspect -- passenger traffic is falling fast.

The number of scheduled domestic and international passengers on U.S. airlines in November 2008 declined by 12.8% from November 2007, says the Department of Transportation's Bureau of Transportation Statistics in a press release Thursday.

In November, 54 million traveled on U.S. airlines, dropping by 7.9 million. It's the largest year-to-year decline in a month since January 2002, soon after the 9/11 attacks.

Domestic travelers on U.S. carriers fell by 13.6% compared to November 2007, and it's the largest year-to-year decline since November 2001. International traffic fell 6.8%.

For the first 11 months of 2008, the number of passengers fell 3.5% to 684.1 million.

Still, the industry's load factor - or the amount of seats filled - fell only 0.7 percentage points in the first 11 months to 79.6%, largely due to the airlines heavily cutting back capacity in the second half of 2008.
Southwest carried more domestic passengers for the first 11 months than any other U.S. airline.  American Airlines led the industry in international passenger count. --Roger Yu

Berlin airports face two-hour strikes on Thursday

Reuters is reporting this morning that "German public sector workers will stage token strikes lasting about two hours at Berlin's two international airports on Thursday morning to back their demands for an 8% raise, union Verdi said on Wednesday. The service sector union said the strike at Tegel, Berlin's main international airport, would last from 6 a.m. to 8 a.m. local time and the walkout at Schoenefeld would be staged from 7 a.m. to 9 a.m. local time."

Bloomberg writes that "at least 10 flights at Tegel and Schoenefeld airports were canceled this morning and at least 10 more flights were delayed, according to the Berlin Airports Web site."     --Rebecca Heslin

Continue reading
Virgin America launches Boston service

Bransonskyxlarge Virgin America began its daily service from Boston to the West Coast on Wednesday. Operating Airbus A319, the airline will fly three daily roundtrips to Los Angeles and two daily roundtrips to San Francisco. Virgin America founder Richard Branson, never shy about displaying his flair for showmanship, helped celebrate the launch by conducting a press event in what appeared to be a cheerleader outfit. The New England Patriots cheerleaders were also hired for the event. -- Roger Yu

Photo of Richard Branson and New England Patriots cheerleaders by Bizuayehu Tesfaye, AP Images/Virgin America.

Ryanair threatens to cut 200 jobs

The Irish government has proposed a new tax that would affect outbound flights from Irish airports. If imposed, this new tax would force budget-airline Ryanair to cut 200 jobs in Dublin, The Associated Press reports.

"The carrier said traffic through Dublin Airport, the nation's busiest, was down 9% compared to last year, and said it believed that decline would 'accelerate on 30th March next when the Irish government's idiotic euro10 ($12.80) tourist tax is introduced.'"

Ryanair's CEO Michael O'Leary told AP that the cuts "can and will be reversed if the government's suicidal euro10 tourism tax is reversed on or before" March 30 of this year. O'Leary went on to say the U.K. and Dutch markets have tried similar travel taxes and that they both failed. "'This government must realize you can only promote tourism by welcoming visitors, not taxing them,' O'Leary added."

MarketWatch is reporting that this tax would also call for the airline to reduce "aircraft by four to 18" and drop "traffic by 20% in Dublin for the summer of 2009."

Meanwhile, The Press Association is reporting that Ryanair is introducing a new daily service from Belfast City to Bristol in Northern Ireland. --Rebecca Heslin

Wind delays at NYC-area airports

This just in from The Associated Press: "The wind is causing some substantial delays at New York City area airports. The FAA says delays at New York's LaGuardia Airport are averaging 3 hours and 14 minutes. At Newark, N.J., it's about 2 hours. Some wind gusts of 48 mph were being reported on Thursday." --Rebecca Heslin

Boeing bracing for aircraft order deferrals

The economic downturn has Boeing bracing for aircraft order deferrals.

In an industry conference, Boeing Commercial Airplanes CEO Scott Carson said Wednesday the manufacturer is "cautiously optimistic" regarding 2010, but is "prepared" to cut production if necessary, according to Air Transport World. The webcast can be heard here.

Carson said the deteriorating economic conditions have been "a significant concern of ours for some time," and the company has seen "a lot of activity" from customers wanting to defer aircraft. So far, orders have been deferred by "a couple of fiscal periods in most cases," he said.

Still, its production rate hasn't slowed because Boeing filled slots with planes delayed due to the recent machinists' strike and to additional planes quoted to customers beyond its production capacity, he said.
Carson estimated that deferrals for longer periods may trigger production cuts by about 10%. Boeing stands ready with a billion dollars to help customers with financing, he said. --Roger Yu

Top airlines want aviation emissions in climate pact

"Four leading airlines called on Thursday for aviation emissions to be included in a broader climate pact, after growing criticism from green groups that the sector was not doing enough to fight global warming," Reuters reports. "Air France/KLM, British Airways, Cathay Pacific, Virgin Atlantic and airport operator BAA issued the call in Hong Kong and outlined a series of principles a new global deal for aviation must adhere to."

The European Commission reports that "while the EU's total greenhouse gas emissions                     fell by 3 % from 1990 to 2002, emissions from international                     aviation increased by almost 70 %."

Dominic Purvis, Cathay Pacific's general manager for environmental affairs, told Reuters that since the aviation industry is contributing to climate change, airlines need to play their part in helping to curb emissions.

"The move is the first step by the world's airlines, which account for around two percent of global pollution, to steer the debate on an emissions pact towards a deal they are happy with, rather than having one imposed on them," Reuters writes.

The New York Times' Green Inc. blog is reporting that by 2012, all airlines going in or out of European airports will be regulated under the European Emissions Trading System. This means airlines, including American carriers, may have to purchase carbon permits according to EU law. "Under the European system, each European Union country will be responsible for selling permits to individual airlines that use that country’s airports most frequently. The idea is to reduce the administrative burden, but it also potentially means big revenues for countries with busy airports," Green Inc. writes.

According to Reuters, many airlines think this plan is unfair because it forces airlines to pay up for entire routes, not just the time they are in EU airspace. Airlines believe this problem can only fairly function as a global approach. --Rebecca Heslin

British Airways, American Airlines see antitrust approval by summer

"A British Airways executive said Wednesday the carrier expects U.S. and European antitrust approval for expansion of its alliance with American Airlines by late summer," The Associated Press is reporting.

"Simon Talling-Smith, British Airways' executive vice president of the Americas, said he is 'relatively confident' that the carriers will be able to expand the partnership later this year, telling reporters he doesn't believe there will be any hold ups in antitrust approval despite the recent change of administration in Washington," AP writes.

This antitrust immunity would allow the two airlines to work together on pricing and scheduling on flights across the Atlantic Ocean. Currently, the airlines have a codesharing agreement, which allows some bookings on each other's flights.

Both the U.S. and the European Union have to approve this antitrust agreement. If approved, passengers would be able to earn and redeem reward miles on both carriers. --Rebecca Heslin

American Airlines to go cashless this summer

American Airlines has announced plans to transition to cashless cabins onboard flights within the USA and Canada.

           

"On those flights, American will only accept major credit cards or debit cards for onboard purchases such as headsets, meals, snacks and alcoholic beverages," The Associated Press writes. "The airline said the change will allow it to streamline the in-flight sales process. Flight attendants will use hand-held electronic devices that will scan credit cards." --Rebecca Heslin

Delta to consolidate feeder airport functions

In an attempt to provide a more consistent customer service experience for passengers, Delta Air Lines plans to consolidate some aspects of the three regional feeder carriers it owns. Certain functions of Comair, Mesaba and Compass will be operated under a new subsidiary called Regional Handling Services, including ticket counter representatives, gate agents and baggage handlers. Pilots, flight attendants and mechanics will not be affected by this and will continue operating under their respective carrier.

"The goal of the consolidation is to match the airport customer experience provided by the three regional carriers to that of mainline Delta," The Associated Press writes. Comair has struggled with on-time performance and baggage handling, AP goes on to write.

"Delta's new RHS team will be headquartered alongside Delta Connection in Minneapolis and will be led by Comair's Don Stephens," AP writes. "Besides the three regional carriers it owns, Delta has contracts with six other regional carriers that provide primarily domestic connecting service to its passengers." --Rebecca Heslin

Today in the Sky schedule update

Hello blog readers. I'll be out of the office on vacation through Monday, Feb. 23. This will be my last post until I return, but my colleagues Rebecca Heslin, Roger Yu and Ben Abramson will help keep the blog going in my absence. Today in the Sky blog updates will return to their normal frequency on Feb. 24.

Airport Check-in: Lufthansa opens elite lounge at Frankfurt

From USA TODAY's Airport Check-in column: "Lufthansa will open later this month at Frankfurt International a new lounge that caters to first-class passengers and its most elite category of frequent fliers.  The new lounge, in Concourse B of Terminal 1, will primarily benefit U.S. and other transfer passengers who previously had to exit the airport to use the airline's First Class Terminal. The lounge will provide many of the services offered at the First Class Terminal — a dedicated security clearance area, computer stations, food and drinks, shower facilities and day beds. The 13,100-square-foot lounge will also feature a spa."