Archive: July, 2008
For the almost-dog days of August, there sure is a lot of airline news this week. I'm catching up on several stories that are of interest to travelers, both international fliers and those who just use the big carriers domestically.
First, Delta revamped its frequent-flier progam, and this is something you need to pay attention to even if you're not a member of that program. Delta's changes boil down to one fact: It's going to cost most travelers more miles to get the flights they want. Why should all airline customers care? Watch for the other carriers to mimic Delta's move. If your favorite airline doesn't adopt similar higher requirements for award tickets, count yourself lucky and continue to patronize it. Read the most complete story we found on this topic here:
A day before Delta's announcement, there was industry consolidation news but this time it's about European airlines. British Airways and Iberia, Spain's flag carrier, said they were in talks to merge. The carriers also want to broaden their code-sharing alliance with American Airlines; all three of them already are in the oneworld alliance. Here's more detail on that:
http://www.philly.com/philly/wires/ap/business/26037524.html
Also yesterday, United sued its pilots' union, asking a federal court to stop a loosely organized work slowdown that has forced hundreds of flight cancellations recently. United alleged that some of its members were using the Internet to ask pilots not to answer calls to fill in when other pilots call in sick. United doesn't have a good track record getting along with its pilots. They caused enormous havoc, late and delayed flights, in 2000 in an organized work slowdown. More info on that one is here:
http://www.philly.com/philly/wires/ap/business/26113729.htmla
This sounds like the kind of thing that used to happen routinely at PHL, until US Airways got its act together: A conveyor belt system at JFK broke down today, slowing or halting the process of bags getting on the same flights as their owners. If you are flying on American out of JFK in the next few days, use carry-on bags or face the possibiity of seeing luggage take days, at best, to get back to you.
Here's this morning's AP report:
Wednesday's story is here:
http://www.philly.com/inquirer/breaking/business_breaking/260970ppy 04.html
That bit of happy news follows Delta's announcement that it would start charging $50 for a second checked bag, unless you pay a lot or are a very frequent flier. At least the first bag is free on Delta, unlike other major carriers. Read more about that:
http://www.startribune.com/business/26082204.html?location_refer=Your%20Money
The Inquirer had an update this morning on the story over the weekend, about a Qantas jet enroute to Australia that had to make an emergency landing after an explosion ripped a hole in its side. Experts say the oxygen tanks involved are completely different from those that caused a ValuJet Airlines crash in 1996. Read yesterday's story here:
http://www.philly.com/philly/wires/ap/news/nation_world/25977609.html
And this morning's story here:
The White House receives a letter, signed by more than 140 companies and organizations, asking the president to call a special session of Congress just to deal with energy issues. Read the details and why it's a good idea in this morning's column:
http://www.philly.com/inquirer/business/20080728_Winging_It__Writing_Congress_to_solve_oil_woes.html
Low-cost airlines, those like Southwest, AirTran and JetBlue that have experienced rapid growth in recent years, are victims of high fuel prices as much as major carriers are. Read more about their problems here:
House Democrats were defeated today on a measure to open the Strategic Petroleum Reserve as a way to try to stop oil price increases. The airline industry had lobbied hard in favor of the legislation. A majority of House members supported the bill, but it lost on a procedural issue explained in this story:
http://www.philly.com/philly/wires/ap/business/25862339.html
Southwest reported better earnings than some analysts expected in the second quarter. Read more about it:
The AP has a good story today detailing how US Airways and other carriers are using fees to help offset high fuel costs. US Airways CEO Doug Parker even says it's possible the industry could make money next year because of capacity and staffing cuts, and if fuel prices stabilize. That's radically different from what we've been hearing for months, based on the assumption that oil prices were going to continue to go up.Read the story:
http://www.philly.com/philly/wires/ap/business/25771044.html
The Dallas Morning News had an exclusive yesterday: The Business Travel Coalition, with support from retired American CEO Robert Crandall, call for Congress to have a special session to deal with energy issues and create a national transportation policy. Read more:
http://aviationblog.dallasnews.com/archives/2008/07/travel-industry-call-for-natio.html
United added its second-quarter report to the gloomy airline picture, but cheered some analysts with plans for more deep cuts in flights and staffing. Here is that story:
http://www.philly.com/philly/wires/ap/business/25753124.html
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