USATODAY Travel News - June 20
Kingfisher
Leo van Wijk told reporters in New York he thinks it’s a “real possibility”
that Delta and Northwest could join forces, according to both Forbes and
Reuters. KLM is now part of the merged company Air France-KLM, a carrier
that counts Delta and Northwest among its SkyTeam alliance partners.
Addressing that partnership between the airlines, van Wijk says "it would be
easier to deal with one entity" –- apparently referring to some of the
benefits possible if Delta merged with Northwest. Ever since Delta and
Northwest filed bankruptcy within minutes of each other in 2005, speculation
has frequently paired the two as possible partners for a combination.
Officials from each carrier, however, have repeatedly said nothing is in the
works. Still, given Air France/KLM’s close relationship with Delta and
Northwest, van Wijk’s comments seem likely to fuel the rumor mill. Stay
tuned …
Northwest will no longer board its customers by row. Instead, the carrier
will let coach-class customers board whenever the want. Seat assignments
remain, however, and Northwest will still offer priority boarding to fliers
with a disability, families with children, first-class passengers and
elite-level frequent customers, USA TODAY reports. So, why the change?
Northwest says moving to a "general boarding call" can trim as much as 10
minutes off the boarding process, allowing it to get its planes back in the
air faster. That not only can help mitigate delays, but can also help an
airline squeeze more revenue-producing flying time out of its jets. "I
admit, I was a skeptic at first," Mike Carney, Northwest's director of
customer service and policy procedures, tells The Detroit News. He helped
implement the process across Northwest’s entire system 10 days ago. "It
didn't make sense in my head. But when we did some tests and I watched
passengers actually loading, suddenly a light bulb went on. It was great."
With Northwest’s change, major U.S. airlines now use at least six different
boarding methods. But one airline has already tried -– and retreated -– from
the general boarding option that Northwest is now using. "Our problem was
the passengers just didn't accept it," Alaska Airlines spokeswoman Caroline
Boren tells the News. The move did shorten the boarding process during the
year the airline tried it, but Alaska last month returned to a zone-by-zone
method that starts at the rear of the plane. "In the end, it just wasn't
comfortable for passengers. I don't think people thought it was an orderly
process. Perception is as important as reality," Boren says.
NWA asks bankruptcy court for more time
Northwest Airlines wants three additional months to complete a
reorganization plan, according to the Detroit Free Press/Bloomberg News. The
request for more time comes as the carrier negotiates with flight attendants
for more pay cuts. “Much more remains to be done to complete the task at
hand, including the resolution of labor issues with the Professional Flight
Attendants Association," Northwest said Monday in a filing with the U.S.
Bankruptcy Court in New York. "There is no question that the debtors should
be granted an extension." Northwest also said in Monday’s filing that it
must reduce its pension obligations, restructure some of its leases and
obtain financing before it can exit bankruptcy. Northwest filed for
bankruptcy on Sept. 14, 2005.
Kuwait airline to fly women for free
Kuwait's no-frills Jazeera Airways announced plan to fly women voters back
to the Persian Gulf state for free to take part in the June 29 elections,
according to USA TODAY's international edition. The election will be
Kuwait's first to include women. (Yahoo!/AFP)
GAO: Regulation no savior for U.S. airline industry
Despite the financial turmoil experienced by the airline industry during the
past few years, a return to regulation would likely undo consumer benefits
such as lower fares and probably would not save the pensions of airline
workers. Those findings come from a new study by the U.S. Government
Accountability Office (GAO), the St. Louis Post-Dispatch reports. One of the
top benefits to consumers since deregulation has come in the form of lower
airfares, which have fallen by 40% since 1980 when measured in 2005 dollars,
the GAO study says. As for the recent pension defaults by several U.S.
carriers, the report says those losses by airline employees "are
attributable to market forces, poor airline management, ... union decisions
and inadequate pension funding rules...These factors also led to the
termination of pensions in other industries with large legacy pension costs,
such as steel," Air Transport World reports. The GAO report says that
"increasing fares via government-imposed price floors similar to those that
existed prior to 1978 would be an inefficient" method of ensuring that
airlines could meet their pension obligations, "especially when most
airlines no longer offer defined benefit plans," ATW quotes the agency as
saying. Instead, the GAO suggests broad reforms to U.S. pension law.
Senator on delays: Airlines should tell it like it is
New York Senator Chuck Schumer wants airlines to be more candid with
customers about flight delays. The New York Daily News writes that Schumer
“unveiled a bill yesterday that would require airlines to tell
ticket-holders of delays immediately.” In theory, that would allow fliers to
“decide to cancel or change flights before they board a plane and sit for
hours on the ramp.” Schumer’s call comes as New York City’s three local
airports -– JFK, LaGuardia and Newark -– all rank in the bottom half of the
nation's 33 busiest airports for on-time performance, according to the
Bureau of Transportation Statistics. "Nothing is more frustrating than when
an airline knows that a flight is delayed but doesn't tell passengers until
they are sitting on a plane and stuck with their ticket," Schumer tells the
paper. "Airlines need to be honest with the public. Passengers deserve to
know that their flight is delayed, and should have the option of rebooking."
New Cleveland airport chief wants 'butts in seats'
Ricky Smith, the new airport director at Cleveland’s Hopkins International
Airport, says his most immediate goals in his new role are to spruce up the
facility and to help passengers navigate through the terminals, The
Cleveland Plain Dealer reports. “That might mean improving the bathrooms and
waiting areas, or rearranging or adding some signs to help people find their
way,” the paper writes. Ultimately, Smith hopes to give Hopkins a complete
makeover, though he’s unsure of when the airport will have the funds to do
that. Among Smith’s long-term goals: Increasing revenue and creating a
regional marketing plan.
As you would expect, Smith's goals also include trying increase flights
options from Cleveland. Local businesses could play a key role in supporting
that effort. "When we make a pitch to an airline to bring service or add
service, what they want to see is some commitment that the corporate
community will use that service," Smith says. He will also put the word out
for Clevelanders to support Hopkins by booking flights from the airport. "At
the end of the day, [airlines] want butts in seats," he says. "That's what
Clevelanders can do to support their airport: [Put their] butts in seats."
Air Canada adds non-stops to Shanghai, Mexico City
Air Canada on Saturday launched non-stop service between Toronto and
Shanghai. The flight is the only non-stop service from eastern North America
to Shanghai, the carrier says in a press release. Air Canada will operate
three weekly flights using 285-seat Airbus A-340-300 aircraft. The flight
will take 14 hours, 45 minutes westbound and 13 hours, 40 minutes eastbound.
Also on Saturday, Air Canada began daily non-stop service between Montreal
and Mexico City. That route will be flown on 120-seat Airbus A-319 jets.
Delta to add premium service for cross-country flights
While Delta pushes ahead with plans to expand and upgrade its international
service (see below), the carrier expects to upgrade some of its domestic
service. USA TODAY reports that Delta in August will launch “a high-end
transcontinental service” that will “heat up competition for perk-loving
long-haul fliers.” As part of the initiative, Delta will renovate 100 of its
477 full-size jets for long-haul routes to include two-class cabins and
digital TV and music throughout the plane. The planes slated for the
upgrades are all Boeing 757s or 737s and will be outfitted with 24 channels
of live TV, interactive video games and MP3 audio programming offering more
than 1,600 songs, USA TODAY writes. Delta hopes to have the renovated planes
flying on all domestic flights longer than 1,750 miles within the next two
years.
USA TODAY says Delta hasn’t detailed fares yet for its new service but notes
that “rival United Airlines has shown that luxury can command a high price
on transcontinental routes. On Friday, United was selling a short-notice,
coast-to-coast round-trip first-class ticket on its 'Premium Service,' or
P.S., for $4,631.” United’s P.S. service –- offered only on certain
transcontinental routes between New York and California -- offers perks like
lie-flat seating in first class and extra legroom throughout the cabin. The
carrier says its premium service has helped it win high-fare customers from
other airlines. As for Delta's premium upgrade, about half of the jets to be
overhauled previously had flown as part of Song, Delta’s single-class
low-fare unit that was discontinued May 1.
Delta continues rapid international growth plan
Delta continues to ramp up its international schedule, announcing today two
additional foreign destinations from its new hub at New York JFK. The
carrier will begin non-stop service to Mumbai (Bombay), India on Nov. 1, and
will add service to Accra, Ghana, starting on Dec. 11. As for the JFK-Mumbai
route, the service will be just the third non-stop option on any airline
between the USA and India. (American’s Chicago-Delhi route and Continental’s
Newark-Delhi flight are the others.) With the two new destinations –- Mumbai
in Asia and Accra in Africa -– Delta says in a press release that it “will
be the only airline to offer customers non-stop service to five continents
from metropolitan New York.” The airline will fly the new Mumbai service on
268-seat Boeing 777-200ER aircraft while the Accra flights will be on
214-seat Boeing 767-300ER jets.
Meanwhile, Delta’s new routes come as the carrier plans to “refurbish its
BusinessElite service on international flights … amid a push to add overseas
routes and draw more high-fare business travelers,” The Atlanta
Journal-Constitution (free registration) writes. The upgrades will include
more cushioning, new leather covers and improved headrests. BusinessElite is
Delta’s international version of first class, with the Journal-Constitution
reporting that the airline plans to make the upgrades on 75 long-range jets
by summer 2007. Four refitted jets are already flying. Business travel
expert Chris McGinnis observed that Delta is not installing the lie-flat
seats that are offered by many of its trans-Atlantic rivals. "We'll probably
have to wait until Delta is out of bankruptcy before we'll see a move to the
very expensive lie-flat seats," McGinnis says in his newsletter The Ticket.
But the Journal-Constitution says McGinnis did “laud the better video
systems and laptop outlets that don't require adapters.”
Yes, Toronto really is that expensive
Toronto’s Pearson International Airport has long been criticized by airline
officials for being one of the world’s most expensive airports. Now those
high expenses appear to be costing the airport business, the Toronto Star
reports. Israeli carrier El Al announced Friday that it would cut in half
its number of flights this summer to Canada’s biggest city. Additional cuts
are scheduled for fall. "Toronto has the highest operating costs of any
airport in the world," Stanley Morais, general manager for El Al in Canada,
tells the Star. "In order to grow the market properly and minimize our costs
in a substantial way, we had to eliminate as much as we could the number of
landings in Toronto."
El Al will drop from its current 10 weekly Toronto flights to five this
summer. By September, the carrier will fly to Toronto only three times a
week. Morais says the summer cuts are expected to save El Al about $2
million a year just from fees charged by Pearson. The Toronto airport’s high
airline fees are attributed largely to the high rent it must pay to the
Canadian government and by fees passed on to airlines that are helping pay
for a recent $4.4 billion redevelopment of the facility.
Report: JetBlue close to deal to sell 5 A-320s
JetBlue appears to be close to a deal to sell five of its Airbus A-320 jets,
according to Newsday/Bloomberg News. Following its second-consecutive
quarterly loss, the carrier in April announced plans to scale back growth
and sell between two and five of its A-320 aircraft. JetBlue CEO David
Neeleman said he "is very pleased with" the pending sale. He added: "It's
not certain, but it's in the works.” He did not say who the buyer might be.
With the sale of the A-320s, JetBlue’s capacity growth this year would fall
to 20%-22% -- down from the airline’s original projections of 28%-30%.
Neeleman predicted a similar growth rate for next year, but said it was
possible the company could consider selling additional jets “in the future
if the need warranted it.”
Midwest boosts Florida service 'to meet peak-period-demand'
Midwest Airlines will offer daily non-stop service between Milwaukee and
Fort Myers from Oct. 14 through April 30. On Oct. 1, the airline adds
non-stop service between Milwaukee and Fort Lauderdale on Oct. 1. Midwest
will also add a second daily non-stop flight during the winter travel season
between Milwaukee and Fort Myers, Fort Lauderdale and Tampa. The additional
flights on those routes will operate Nov. 16 through April 30.
Denver to Montreal, no stops
Air Canada today begins non-stop service between Denver and Montreal. The
carrier will operate one daily round-trip flight using Airbus A-319 aircraft
during the busy summer travel season and a 93-seat E190 at other times. Air
Canada will be the only carrier to operate non-stop service between the
cities.
It's true! There really is a compromise between AA, Southwest on Love Field
Finally, there’s a compromise on the Wright Amendment. A deal to phase-out
the amendment was officially announced yesterday, which could end “one of
the bitterest feuds in north Texas,” according to the Fort Worth
Star-Telegram (free registration). The deal has the backing of both the
cities of Fort Worth and Dallas and the two major airlines –- American and
Southwest -- that had been sparring over attempts to repeal the Wright
Amendment.
Highlights from the new agreement include: Flights from Love Field will be
allowed to depart for any U.S. destination in 2014 or eight years after the
compromise is officially approved by Congress. Love will see its number of
gates reduced from 32 to 20, with 16 going to Southwest and two each to
American and Continental. Before the eight-year waiting period is up,
however, airlines would immediately be allowed to offer connecting flights
from Love Field, provided the connecting flight’s stop comes in one of the
nine states allowed by current Wright Amendment restrictions.
“The measure also has teeth,” writes The Dallas Morning News (free
registration). The paper says that was a priority for American officials.
“Under the terms, if Congress passes new legislation allowing Southwest to
start non-stop long-haul service from Love within the next eight years, the
airline would have to give up half of its gates at the airport,” the paper
writes. “If, in the next 19 years, Southwest chooses to operate gates out of
other local airports within 80 miles of Love, it will have to give up an
equal number of gates at Love. That provision also applies to American for
airports other than DFW, its biggest hub.”
Compromise still faces tricky ride through Congress
While an agreement to repeal the Wright Amendment appears to signal a
breakthrough in the long-running feud, it’s not a done deal. “It's not in
the bag, yet. There's no deal unless Congress backs the agreement” writes
The Dallas Morning News (free registration). Texas Sen. Kay Bailey
Hutchinson told the paper she would do all she could to help get the Wright
compromise approved by Congress this year. The deal becomes void if
Congressional approval does not come by Dec. 31. Though Bailey said she’d do
what she could, she wouldn’t guarantee success. The Morning News writes that
“the Texas Republican must persuade recalcitrant House members to support
the deal. And even more difficult, she must persuade senators from other
states to wait eight years to get non-stop service to Dallas Love Field,"
the paper adds. "We cannot promise that we will be able to do it, but I am
certainly going to try," Hutchison said to reporters in her Capitol Hill
office Thursday after the deal was announced.
Still, whatever the hurdles may be in Congress, others think the worst may
have already been overcome. "I have been involved in litigation, legislative
struggles and cuss fights over Love Field since 1972 -– a period of 34
years," Southwest chairman Herb Kelleher says, offering that assessment with
his usual colorful demeanor. "The fact that Southwest Airlines stands here
today -– stands here with Fort Worth, DFW Airport, American Airlines and the
city of Dallas indicates, I believe, that there must be hope for world
peace."
Airports chief says NYC needs fourth airport … and soon
New York City needs a fourth airport by 2015, Port Authority chairman
Anthony Coscia tells WNYC public radio of New York. Saying that it typically
takes 12 to 15 years to build an airport, Coscia says the city must start
planning now –- or brace for problems ahead. “The truth is that I don't know
where exactly it should be sited,” he tells the station. “I'm very cognizant
of all the reason why people don't want an airport in (their) backyard, but
we are looking at a window that is closing on us. I mentioned the year 2015
because essentially if demand continues at its current pace, we will have no
additional capacity after that.”
Stewart International pushed as a ‘reliever’ airport for NYC
It’s not a “new” airport like the one Coscia mentioned to WNYC (see above),
but the Times Herald-Record of Middletown, N.Y., says one possibility for a
fourth New York-area facility is Stewart International Airport near
Newburgh, N.Y. – about 70 miles north of lower Manhattan. The paper writes
that officials from the Port Authority -– the agency that oversees New York’s
three commercial airports –- have visited Stewart in recent months. The
paper quotes Port Authority spokesman Marc La Vorgna as saying the agency
has engaged in "serious discussions at the highest levels" about reliever
airports, including the possibility of Stewart. "Are we going to turn it
into another LaGuardia? Probably not. But it could be a good reliever
airport," La Vorgna says. However, the hurdles for Stewart to become a
fourth New York-area airport are significant. Master project expansion
projects estimated at $300 million -– plus a proposed $200 million rail
link –- still would require approval and financing. The Port Authority’s
charter also would need to be changed since its jurisdiction currently
extends only 25 miles from the Statue of Liberty. "A lot of things would
have to happen," says Jeff Zupan, a senior fellow with the Regional Plan
Association
AA partner connects Buckeye State to the Tarheel State
Beginning Sept. 6, American affiliate American Eagle will add non-stop
service between Raleigh/Durham, N.C., and Columbus, Ohio. The carrier will
operate two daily round-trip flights between the cities on 37-seat Embraer
135 regional jet aircraft.
Australia rebuffs Singapore Air’s bid for U.S.-Australia flights
Singapore Airlines’ hopes of being allowed to compete on lucrative
U.S.-Australia routes were further dampened this week by comments from
Australian Transport Minister Warren Truss. He’s quoted by Reuters/Airwise
as saying on Tuesday that allowing extra trans-Pacific rights for Singapore
Airlines would be of little value to Australia, which itself is trying to
secure additional landing rights in key destinations in Europe and Japan.
"Essentially Australia has not closed off for all times the prospect of
Singapore Airlines being able to operate on that route, but it's not likely
to happen in the immediate future," Truss says. "Unless we've got a capacity
for some on-carriage beyond Singapore, additional rights into Singapore are
of little value." Australia in February blocked Singapore Air’s bid to
compete on the Sydney-Los Angeles route, something Reuters writes promoted
“Singapore to warn that Australia was taking their close bilateral ties for
granted.”
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