Singapore & Qantas to Merge?

Singapore Government Urges SIA, Qantas to Consider Merger Agence France Presse reports that Singapore's government now is urging Singapore Airlines to consider merging with Australia's Qantas -- joining discussion from Australia's top politician last week. The Singapore government, which indirectly owns a majority stake in SIA through its Temasek holding company, said SIA and Qantas should keep their "options open." "There's a consolidation process going on on a worldwide basis and I think it's to be expected that both SIA and Qantas should also be thinking of what they need to do to remain one of the key players in the global aviation sector," Singapore Transport Minister Yeo Cheow Tong was quoted as telling reporters Qantas already has been doing business with Singapore, through its partnership on Jetstar Asia. That low-fare carrier, of which it owns 49 percent, also is 19 percent owned by Temasek. SIA and Qantas initially rebuffed merger talks after Australia's trade minister raised the issue last week but retreated slightly after favorable comments from Australian Prime Minister John Howard. ------- Wow - how much is the SYD-LAX market worth? Enough to justify merger talk?

New Product Enables Legacy IFE Systems for Onboard Internet, Email for Passengers

Delta Beta and IAG will provide airlines with a timely solution that cost-effectively solves the challenges of updating legacy IFE systems and simultaneously enables considerable improvements in customer service. --------- Besides the PR link above, here are the key drivers. - The solution allows airlines to update their legacy IFE systems fast. Examples would be the 777s at United, Delta & American. - The solution allows airlines to lower entertainment costs (buying fewer crappy movies) and charging for Internet access where passengers get the content they want. - Finally airlines can use the solution as an input to their CRM systems. This will update information and enable airlins to improve their customer service. For example, by providing more customized offerings based on this information. Better targeted marketing means lower costs and higher ROI. How's that for a win-win?

Cleaner breathing on your next flight

There has been a great debate for some time about the health risks of breathing re-circulated air aboard your favorite airline. With the recent scares from new strains of flu viruses and their lethal abilities, Cirrus Healthcare Products have solved your worries with AirRight. You might have guessed from the picture that the unit is a filter for the gasper that is right above you head. Just plug the AirRight filter into it and you get air that has some 99.5% of the viruses and germs removed for your protection. While most aircraft do have air filters on board there is always some question to the quality of air that is partially re-circulated. Additionally, flight crews who have real concerns about continued exposure are probably at risk for airborne pathogens, pesticides, contaminants, and other breathable maladies. If you want to read more about the problem, try this website http://www.afanet.org/legislative/default.asp?id=2 Costing under 10 bucks, the disposable AirRight most probably does protect you from some of the circulated pathogens, but passengers who locally cough and sneeze in to your airspace will be more effective in sharing their bugs with you. However, you could hold you nose and try breathing thru it? Better yet, airlines could make ill passengers breathe thru it, thus protecting everyone else!

US LCC goes offshore

Low Fare Carrier Approved to Serve Cancun from Atlanta and Tampa ORLANDO, Fla., June 28 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc., today announced it has received approval from the United States Department of Transportation to begin service to Cancun International Airport. AirTran Airways' nonstop flights to Cancun will start December 15, 2005, with service from both Hartsfield-Jackson Atlanta International Airport and Tampa International Airport. Schedules and fares for the new service will be announced next month. The low-fare carrier hopes to soon receive approval for the addition of a Cancun route from Orlando International Airport. --------- We did not consider Mexico or Canada, but have been saying that the LCCs were going to grow byond the US domestic market. Here is the first move then by AirTran. It is a good move as it will teach AirTran what they need to know about these services. No doubt other Mexican cities are being looked at. Note AirTran has a flight to the Bahamas already.

Maybe its an Africa thing....

Allegations of Impropriety Made Against Former SAA Chief According to South African media reports, former South African Airways chief executive André Viljoen finds himself at the center of allegations that he personally profited from abuses of the company's payroll system -- allegations Viljoen has dismissed as "absurd nonsense." According to reports from South Africa's Business Day, which quoted "highly placed sources" at SAA, an internal investigation has uncovered irregularities in the payroll system at SAA through which some employees are alleged to have claimed overtime that they did not work. Bonuses also reportedly are alleged to have been paid to employees who did not exist. The irregularities reportedly include up to ZAR 60 million ($9 million) in unaccounted payroll funds. SAA confirmed to Business Day that an investigation had taken place but did not provide additional details. Viljoen shot back that allegations against him were an attempt to deflect attention from the lavish spending practices of his successor, Khaya Ngqula. Last week, Ngqula reportedly had to defend himself in South Africa's parliament after spending ZAR 350,000 ($52,000) on 15 helicopter trips to attend meetings over the past six months. He also reportedly has spent lavishly on accommodations and other expenses. The allegations come on the heels of the dismissal of the last remaining executive of Viljoen's former top management team. Last week it was reported that the airline's general manager for human resources, Nolwazi Qata has been dismissed. No reason was provided for the dismissal. --------- Elsewhere on this blog you will see that Air Zimbabwe appears to be run rather loosely. Now this. Could it be a regional thing? This is very odd for an established, old airline, with a great track record until recently. One could accuse Viljoen of making a monumental mistake with the currency hedging. But at the time, the SA Rand looked weak and going weaker....anyone could have made that sort of decision. The new guy seems to like spending money on himself - imagine that sort of spending on helicopter flights happening at a US airline?

Memphis International Airport asks to join SkyTeam Alliance

As Memphis International Airport gets ready to celebrate the 10th anniversary of regularly scheduled airline service between Memphis and Amsterdam, Memphis Airport Authority President Larry Cox filed a request Monday with the Department of Transportation that could mean more service from Memphis to Europe. -------- Now this is ground breaking. The thought is that with such DOT approval, new service to Paris might be started. The Memphis to Amsterdam rote has been popular, transporting 1.5 million passengers over the last decade. According to a recently released study by the Sparks Bureau of Business and Economic Research/ Center for Manpower Studies at the University of Memphis, each Amsterdam/Memphis passenger who stays in Memphis spends an average of $174 a day. This passenger value comports with what the US Dept of Commerce (OTTI) has been publishing for years. International air service is valuable for a community. Indeed international travelers spend about seven times what a domestic traveler spends. What we find particularly compelling here is the creative way this airport is exploring its marketing options. This should be a guide to other airports around the US. The arrival of long range aircraft like the 787 offers many communities a chance to "plug and play" in the global economy. Airports should be seeking out creative ways to attarct direct service because, frankly, there is very little downside. Dehubbing is predicted to be one of the most powerful issues in the travel industry over the next decade. The early movers will be richly rewarded.

ATA extends Hawaii codeshare with Southwest

ATA Airlines has been flying Southwest Airlines customers to Hawaii through Phoenix. Now it will do that through Las Vegas as well. The expansion of the alliance means Southwest can sell tickets to Hawaii in 10 more Southwest markets and provide more flight options in 19 other markets, without flying to Hawaii itself. -------- The great experiment continues. Watch this go very well - its grown already. We bet the next hop is over the North Atlantic.

Continental Airlines Continues to Offer Full Service Product on Domestic Flights at No Cost

As passenger traffic increases during an already-busy summer travel season, Continental Airlines continues to be the only major U.S. carrier to offer a full array of complimentary amenities to customers traveling in economy on domestic flights including meals, entertainment, non-alcoholic beverages, pillows, blankets, magazines and curbside check-in. ---------- This blog comes to you from London - after a particularly unpleasant day in the hands of a legacy carrier (definitely not CO). So the thought of amenities is very fresh. Between having 3 different routings thrown our way in 90 minutes and then rushing through a lerge hub airport for an international connection in 15 minutes.... I need a holiday! Never mind amenities. All the flights were full - 100% so; being seated at the back enables you to confirm that every seat id taken. The crew were harrassed by people who refuse to be seated when the flight hits turbulence and then of course, on final, remember one last thing they want to put in the overhead bin.... With $5 for anything liquid that did contained a hint of alcohol, I can only say the idea of a legacy carrier offering amenities says a lot. You might also expect the crews to be in good moods. The passengers happier and the whole travel experience a positive one. If you can get a seat, give Continental a ride this summer. It might bring back fond memories of how things used to be.

Been "dinged" yet?

Southwest has again proven why it is the smartest, best run airline in the world. The link above takes you to a software tool that is, in a word, remarkable. You download this and the airline's res system "dings" you with special fares. Word is they have over 1 million people using it. This tool is the beginning of somethign awesome - personal fares. Dings sometimes prices you won't even see on the web site. You're happy because you get exactly what you are looking for. Southwest is happy becuase you are a "sticky" customer. Download this tool; fly cheaper and smarter. Watch for every other airline to rush into developing this type of solution ASAP. We have to wonder, how come so few people even know about this? Yet there are a million users. Go figure.

New Israeli system IDs terrorists without profiling

SPECIAL TO WORLD TRIBUNE.COM Friday, June 24, 2005 TEL AVIV — An Israeli company has developed a system to identify past and potential terrorists. The company said the system uses polygraph-like tools to identify insurgents — even when they do not have weapons — within three minutes. The passenger places his passport on a scanner and the other hand on a sensor. He is then asked to answer written questions indicated by the passport while a special detector measures physiological responses. Executives said the SDS-VR-1000 system, meant to replace human selectors, was based on the expertise of former officials from the Mossad and Israel Security Agency. Suspect Detection Systems said it has developed what it called an advance automated filtering tool to identify potential attackers to airports and other crowded facilities, Middle East Newsline reported. "Our system makes an initial assessment within three minutes," SDS chief executive officer Shabtai Shoval said. "If the system identifies a suspect, he can be sent to a personal agent to complete the investigation." They said the system assumed that insurgents were able to reach their target without weapons and using their real identity. The SDS-VR-1000, through the use of artificial intelligence in software, measures psychological and physiological parameters to detect hostile intent. "What this does is collect objective data out of the passenger's ID — and it analyzes the data compared to the subjective data it collects while the passenger is asked different questions," Shoval said. "The process takes about three minutes, and the passenger either receives a transfer printout authorizing him to advance to the next stage of entry to the country, or an announcement that he is required for further questioning. A monitoring official will then escort the passenger to another area for further questioning." Executives said that in trials the SDS-VR-1000 achieved a success rate of 95 percent. They said Israeli authorities have approved the system and would undergo testing later in 2005 in Israel at an unidentified U.S. airport. SDS has been negotiating with Boeing regarding a strategic partnership in the United States. Executives said the system was expected to cost about $200,000. "It's like a robot selection process," Shoval said. "We don't make the decision to take someone out of line and put him in jail. We only take someone for further investigation. There's no profile selecting and no human rights violations." -------- Wow, this cool.

Alaska Airlines Opposes Southwest Move to Boeing Field

Southwest Airlines' interest in moving its Seattle flights to Boeing Field in the Seattle has raised concerns of Seattle-based Alaska Airlines. According to the Seattle Times, King County, where Boeing Field is located, has been in discussions with Southwest about the low-fare airline moving its Seattle operations to Boeing Field . The airline currently operates out of Seattle-Tacoma International Airport, but is concerned about rising costs at the airport. In addition to being lower cost, Boeing Field -- which does not currently have commercial traffic -- is closer to downtown Seattle. But Alaska Airlines, which is the biggest carrier at Sea-Tac, says it may move some of its flights to Boeing Field as well if Southwest does. Speaking with the Times, the airline's head of government and public affairs, Joe Sprague, said that if Southwest relocates, the county needs to consider that it may not get 30 or 40 flights, but double or triple that. Also not happy about the news is the Port of Seattle, which operates Sea-Tac. The port says that the effective loss of revenue for the port from Southwest leaving would be worse than the loss after Sept. 11. ------ Read this again. Then ponder the power of even a threat of competition. It is remarkable. The solution is for Sea-Tac to cut its costs. Airports that do not feel they are in a competitive situation clearly feel bold to raise prices. But competition is a wonderful thing. Now we might understand why O'Hare does not want another airport near Chicago - remember the new airport being planned for Indiana? It also tells you about DFW's concern about removing the Wright Amendment. Airports hate competition because their percieved monopoly is threatened and they have to start running like a business, not a government-type institution.

Air India 182 - 20 years later

Twenty years ago today, a Canadian Pacific Airlines (CP) customer service agent at Vancouver International Airport checked in two separate passengers to India aboard Air-India, via CP flights to Toronto and Tokyo. Hours later, 331 people were killed in the worst act of aviation terrorism before Sept. 11, 2001. The tragedy of Air-India 182 was exacerbated by the bungled manner in which the criminal investigation appears to have been handled and the revelation that the accident may have been avoided had Canadian intelligence and security officials done more about an extremist group already under surveillance. Canada's young intelligence agency, the Canadian Security Intelligence Service (CSIS) even had the eventual Air-India suspects under surveillance at the time of the bombings. But poor communications between CSIS and the Royal Canadian Mounted Police (RCMP) charged with investigating the crimes and the erasing of key evidence haunted the long and arduous investigation. -------- And here we are 20 years later. What have we learned? Essentially this, people continue to fret about their perceived "loss" of privacy in a world where murderers are given more protection than victims. Its awful to think that crime prevention has not improved much in the commercial aviation arena - we should never have had 9/11. What is the deal with law enforcement not being allowed to review every passenger's background? We are totally in favor of scouring a person's threat potential prior to being allowed into an airport as a passenger (never mind an airplane)- if this saves one life its worth it. We are in favor of Interpol having a global list of threats which are kept off trains & ships and not allowed near an airport. Yes its dacronian. But the people who threaten public transportation want to die and take hundreds of innocents with them. Only a zero tolerance policy provides the protection needed.

Olympic Airlines Sale As Planned

(Reuters) - The privatization of Greek flag carrier Olympic Airlines is going as planned, the country's finance minister said on Tuesday, amid press reports of a delay in the sell-off to next month. "Everything is going according to procedure," George Alogoskoufis told reporters after meeting Prime Minister Costas Karamanlis. He did not provide details. Financial daily Imerisia reported on Tuesday that the Olympic Airlines sale had been delayed to early July. The paper said the delay was to allow talks between the government and one of the bidders, Olympic Investors, to be completed by end-June or early July. Athens had previously said it expected to complete the sale of loss-making Olympic by early June. Last month, it confirmed holding talks with three bidders but did not name them. Greece's transport minister has said the sale is the carrier's last chance for survival. The government may shut down Olympic if the latest sell-off attempt fails and relaunch the carrier in order to sell off all its profitable activities, Imerisia said. ------------ Its about time! Olympic has been on its knees for so long we can't remember when it last made a profit. Has it ever? Governments need to get out of the airline business. Its too risky for tax payers to get into the business. Justifying such an investment on the basis of creating jobs is simply illogical. Take a look at the ratios of employees per passenger at successful airlines - it drops over time. Southwest even has a cap on employee numbers to protect its ratio. Although airlines are a service industry, there are only a few places where people numbers matter - at customer interfaces like airports and on-board for example. Elsewhere automation and technology mean less people is better.

Minority chambers support Wright Amendment

Six minority chambers of commerce have formed a coalition encouraging Southwest Airlines Inc. to drop its campaign to have the Wright Amendment repealed. The represented chambers include the American Indian Chamber of Commerce of Texas, Fort Worth Metropolitan Black Chamber of Commerce, Fort Worth Hispanic Chamber of Commerce, Dallas Black Chamber of Commerce, Greater Dallas Asian American Chamber of Commerce and the Greater Dallas Hispanic Chamber of Commerce. The coalition said it will voice its support of Dallas-based Southwest moving some of its operations to the Dallas/Fort Worth International Airport. ----------- Now why would these chambers support the Wright Amendment and DFW? How does a chamber of commerce come to the conclusion that higher fares are better for their members? How does a chamber propose to its members that an artificial tax on the community is a good thing that needs to stay in place? We would love to hear this. By the way, what about the other "non-minority" chambers - do they agree with this position?

United Airlines Increases Ticket Fares by Three Percent

CHICAGO (AP) -- United Airlines has announced a 3 percent fare increase on most of the carrier's domestic and international flights, citing the rising cost of oil as the reason. The fares have been increased by an average of 3 percent, though sale fare levels and some specialty fares are not affected by the increase, United said. ------ OK let's see how long this one lasts. Airlines have not been able to make increases stick lately.

Users Want In-Flight Data, Not Voice, Survey Finds

A survey worldwide covering 50,000 people found only a small number -- about 11 percent -- approve of in-flight voice calling but that a strong majority support in-flight use of cellular data, according to market research firm IDC. While a small majority supported in-flight voice access, about 64 percent supported in-flight use of cellular devices for data, IDC said in a statement. Of the various types of data, text messaging is most likely to be popular during flights, the survey found. Overall, the more interactive the wireless data application was, the more likely it was to be popular, according to the survey. These results open the way for increased profits for both airlines and for wireless carriers, the market research firm said. Specifically, it would enable both the carriers and the airlines to provide new types of mobile commerce and to encourage data usage as a way of generating revenue. "By comprehending the needs and criteria specific to the user segment and location, mobility companies can enhance their products to better serve and target the desired customers and market segments," Dana Thorat, an IDC research manager, said in a statement. While the U.S. Federal Communications Commission and Federal Aviation Administration are re-considering their ban on in-flight cell phone use, the move has garnered little support either among users or the airline industry. For example, Cingular Wireless said last week that it does not favor in-flight voice access, although it did support in-flight data usage. --------- The IDC information is no surprise to us - we found similar results in our surveys. This is support for for those of us wanting to be in touch while out of sight.

Possibe guide for in-flight Internet?

SEATTLE, June 16, 2005 - Connexion by Boeing a business unit of The Boeing Company (NYSE:BA), and TeliaSonera, the leading telecommunications company in the Nordic and Baltic region, announce that as of today all TeliaSonera customers across Denmark, Norway and Sweden can access the Connexion by Boeing SM real-time, high-speed in-flight Internet service through their TeliaSonera accounts. "TeliaSonera is a strategic provider of mobile services to passengers of Scandinavian Airline Systems (SAS)," said Connexion by Boeing vice president of Marketing and Direct Sales David Friedman. "Having joined this partnership, Connexion by Boeing's service now becomes available to all TeliaSonera customers who want to stay connected to what's important while traveling." TeliaSonera's customers, who already have Internet access in SAS' airport lounges, can now seamlessly connect to the entire Internet on board all SAS long-haul flights, simply by accessing the Connexion by Boeing homepage and entering their TeliaSonera HomeRun user name and password. TeliaSonera customers can also use their existing information to connect to the Internet on all Connexion-enabled flights on Lufthansa, Japan Airlines, ANA and Singapore Airlines. -------- So can expect to see more of these deals. Terrestrial WiFi that are big in airports (read T-Mobile and ICOA in the US) make natural onramps to in-flight access. Unfortunately for US travelers, Boeing has not yet sold any US carriers which would allow in-flight Internet on domestic flights.

Troubling Signs Ripple Through Airlines

Item 1 - Air Canada cancels its huge Boeing order because its pilots won't agre to concesions. Item 2 -America West pilots express concern with the US Airways merger because of their seniority. Unrelated items it seems - just the same old pilots union actions, right? Actually not in this case - the implications are bigger. Air Canada was going to help fund the America West takeover of US Airways. Some of the Air Canada 330s were likely to go to this merged airline as its new 777s came on stream. Now both airlines' pilots are chafing and the deals are starting to unravel. Air Canada actually cancelled their Boeing order (which may still cost them ~$200m in deposits). If the merger collapses, US Airways will not emerge from Chapter 11. And America West could explore doing business with another airline - maybe United. Now as Air Canada still wants to fly 777s, it might look to Varig which declared bankruptcy because of its commitments to aircraft lessor ILFC. Varig is flirting with TAP about some sort of merger. This is reported to still be in progress and TAP is an Airbus customer. It is possible that Varig might get help from TAP and Airbus. TAP's older 310s might go to Varig. Confused yet?

$10 airline fare hike crumbles

Four airlines -- all serving Sacramento International Airport -- made a push to boost fares, trying to lift them above the $499 fare cap set by Delta Air Lines early this year, but the effort fizzled by Friday afternoon. On Friday, US Airways jumped aboard, but American Airlines didn't join the latest effort, and by late Friday, Northwest and America West had dropped the fare increase. ---------- Isn't this amazing? Basic economics of oligopoly dictate these fare increases should stick. Especially with oil nudging $60. Southwest is the #1 carrier in Sacramento and yet it was AA that did not raise fares....we would have expected Southwest to hold the line on the lower fares. What do we take away from this? Don't buy airline stocks. Don't! But their fares are a bargain - buy as many seats as you need because its safer than driving yourself.

El Al Free To Choose Airbus Or Boeing

El Al Israel Airlines will be allowed to buy new aircraft from either Boeing or Airbus when it next purchases planes, Israeli Transport Minister Meir Sheetrit said on Thursday. "If El Al wants to buy Airbus, the government won't interfere. If it wants to buy Boeing, we won't interfere," Sheetrit's spokesman quoted the minister as saying at the Paris Air Show. "The government won't try to persuade El Al either way to buy planes from one company or another," Sheetrit said. "It should be based on El Al's financial considerations." During the Paris show, Sheetrit met top Boeing and Airbus officials. His spokesman said Sheetrit was "greatly impressed" with the new Boeing 787 Dreamliner. --------- Do you see the same crazy thinking we do? Why is Sheetrit in Paris if he no longer buys planes? And who cares if he's impressed with the 787 - since he no longer buys planes, right? OK so here's our bet, after lengthy analysis (really conducted by a Bair vs. Leahy contest), ElAl buys 787s & 777s powered by GE. All with Boeing Connexion service.

Cingular: Keep ban of cellphone calls on flights

NEW YORK — Cingular, the USA's biggest wireless carrier, thinks cellphone conversations should continue to be banned on commercial flights while planes are airborne — and it's told the Federal Aviation Administration as much. We believe there is a time and a place for wireless phone conversations, and seldom does that include the confines of an airplane flight," Cingular wrote in a June 8 letter to the FAA. "Cingular will encourage passengers to 'tap, not talk' — that is, to use discreet services such as text messaging and e-mail as opposed to voice communications in flight," the carrier wrote. ------- Now here is a case of Xenophobia. Do you really think we need a government regulation to stop people speaking on their phones? Or maybe, more to the point, Cingular has no way of offering you in-flight Internet and Verizon can and will. So even if Cingular is the biggest wireless carrier in the US, maybe you might think of switching your service to Verizon? You can take your number with you. And when in-flight Internet is launched you can make your own decision about when to make a voice or data call in the confines of an airplane.

Boeing sees airline cell phone service in '06

LE BOURGET, France (Reuters) - Boeing Co. unit Connexion expects to start selling cellular phone services to airline passengers as early as next year, its president said on Thursday, despite opposition from the flying public. "We expect that once the regulatory issues and the social issues are ironed out we'll be introducing that (mobile phone) service as well," said Laurette Koellner, president of Connexion by Boeing, the unit which offers in-flight Web access. "We're projecting that to be some time next year." "The technology is pretty well figured out," she told Reuters at the Paris Air Show. The U.S. Federal Aviation Administration is reviewing its ban on the use of phones and other wireless devices on planes. However, U.S. passengers overwhelmingly oppose lifting the ban, according to an April poll by the National Consumers League and a flight attendants' union. But Koellner said she expected some kind of compromise solution that would either mandate certain quiet periods on flights or create quiet zones, with the first being the most likely solution. Koellner, who took the unit's helm in December after its former president, Scott Carson, was made Boeing's head of sales, said the cell phone service would remain smaller than its main business of providing in-flight broadband hook-ups. While Connexion is by far the dominant player in providing in-flight broadband access, it would face more competition in the area of cellular service. Privately-held AirCell, based on Colorado, is developing an in-flight cellular network, as is Geneva-based OnAir, whose investors include Boeing archrival Airbus. Koellner confirmed that Connexion is likely to break even in 2008. She declined to give revenues or say what percentage of passengers on planes with the system are using it. The broadband access service will be installed on 120 passenger jets by year-end, up from 64 now, Koellner said. There are some 12,000 commercial airliners in service worldwide, of which 8,000 would be suitable for the service, Boeing estimates. Connexion has also started offering its service for use on cargo ships, a market it has said could be worth a billion dollars. It won a first order this week from U.S.-based Teekay Shipping. Koellner said the maritime market would probably comprise close to one third of the company's business "at some point." ---------- Couple of issues here. First, there is overwhelming support among travelers for this service. Not necessarily for voice comms, but for data. The survey mentioned in the story indicating people did not want this is basically concern for more cabin noise. However, in our surveys people have said they want to be able to access data - email and SMS. Second, technology has a habit of rolling over everything in its path. Cabin unions' concerns cannot stop the move towards in-flight information access. Clearly users will have to develop some sort of etiquette regarding voice calls. But forget about stopping in-flight comms - its coming.

United up for grabs?

(Reuters)- The unsecured creditors committee for bankrupt United Airlines have indicated that outside parties may be interested in making a bid for the carrier, a court document showed. The committee filed the motion on June 9 supporting United's request for an extension of its exclusivity period, during which only the airline may file a reorganization plan. The creditors committee, however, injected a sentence in the motion implying that others are considering filing their own reorganization plans. "The committee does not acquiesce in or endorse any implication in the debtors' motion that there are not qualified parties interested in submitting alternate plans of reorganization," the creditors said in the motion. The committee made no mention of who those likely suitors might be. Jean Medina, a United spokeswoman, said the airline was unaware of any competing plans under development. United, which has been in Chapter 11 since December 2002, has asked a the bankruptcy court for a 60 day extension of its exclusivity. The current period expires July 1. ---------- This little tid bit nearly slipped by. Who might be interested in taking over UAL? We'll be watching. Despite huge cost problems, UA has a superb route network. Wringing more efficiencies could generate huge upside because this airline has a big customer base.

747A coming soon?

(Reuters)- Boeing will hold a board meeting this month to consider the launch of a stretched version of its 747 jumbo jet, a plan which the head of Boeing Italy said on Tuesday looked set to go forward. The plan comes as rival Airbus prepares to deliver its mammoth 555 seat A380. "Boeing will launch a new version of the 747 to counter the A380. Boeing has decided on the relaunch, with a larger version, of this glorious airplane which is 30 years old," Rinaldo Petrignani, head of Boeing Italy and vice president of Boeing International, told Italian reporters at the Paris Air Show. Another senior executive at Boeing confirmed that a board meeting this month would consider the idea of launching the new model, called the 747 Advanced, but added it was premature to speak of definite plans. "The airplane looks good. We have a fair amount of interest," said Mike Bair, Boeing vice president and head of its 787 program. ------- Good. There is apparently interest from Asia and with each 380 induced hiccup in Toulouse the 747A looks better. Airlines will be better served by having a choice. We would not see the 747A without the 380 and but for the 747, we would not see the 380.

Southwest wants to quit Sea-Tac

By JIM FORMAN / KING 5 News SEATTLE – Southwest Airlines wants to expand and grow in Seattle, but right now, the airline says, it can't because it would simply cost too much at Sea-Tac International Airport. Southwest says it's now looking at its options, and one of them is build new a new terminal, parking lot and other facilities at another airport. King County Executive Ron Sims says Southwest approached the county looking to trim costs of operating its more than 40 flights a day out of Sea-Tac by relocating its Seattle operations to King County Airport – better known as Boeing Field. The talks with Southwest are still preliminary, but are at a stage where Sims says it's time to go public. "They are very serious about being at King County Airport," he said. "We have another major airport out at Sea-Tac. We don't need another one right here in the middle of the city," said Dwight Pelz, King County Councilman. Pelz says Southwest at Boeing Field is an idea that will never take off. Sims acknowledged late Tuesday afternoon the idea will be a tough sell in some communities like Magnolia and Beacon Hill where residents already complain about noise from jets coming into and out of Boeing Field. "We are going to be concerned about noise and traffic and flight pattern and that is going to be very critical to our decisions," said Sims. Sims says in addition to creating jobs, the added income would help Boeing Field come out of the red. Right now it costs the county more to run the airport than the airport takes in. All this is still years and millions of dollars away. The president of the commission for the Port of Seattle said Tuesday he was surprised about the announcement because Sea-Tac is equipped to handle growth for 20 years and he doesn't see how the public is well-served by this idea. ----- This is interesting. As SW grows it will run into constraints - here we see how they wil try to deal with such constraints.

Airbus' Paris Orders

Kingfisher Buys Airbus Jets Worth $3 Billion India's Kingfisher Airlines on Wednesday signed contracts for 15 Airbus aircraft, including five superjumbo A380s, in a USD$3 billion deal designed to capitalize on India's fast-growing air traffic market. The recently launched low-cost airline is the brainchild of tycoon Vijay Mallya, whose UB Group makes Kingfisher beer, India's top-selling brand, and a host of lifestyle goods. --------- One has to wonder about such an order from what is essentially a start up. This feels risky. Or maybe its just too many people over-excited about India. Indian travel company InterGlobe Enterprises Limited has announced plans to launch IndiGo as an Indian nationwide low-cost airline, according to an Airbus statement. And now they order 100 A320s. It sounds more risky with each hyped order. IndiGo's order with Airbus is worth USD$6 billion at list prices for single-aisle aircraft, bringing to USD$13 billion the value of Indian deals at the Paris Air Show. We simply don't see Indian as a free wheeling and dealing aviation market. they love regulation too much.

Australia Denies Singapore Air Sydney-LA Route

Australia has decided not to grant Singapore Airlines access to the lucrative Sydney-Los Angeles route, a decision the airline says points to a further delay but not an outright rejection of its bid. "The issue of trans-Pacific access has been considered at the highest levels by the Australian government, which has decided the time is not right for Singapore Airlines to be granted access to the route," a spokesman for Australian Transport Minister John Anderson said on Wednesday. Anderson met Singapore's Deputy Prime Minister Tony Tan in Canberra earlier on Wednesday. Singapore Air said it was unsurprised but disappointed by the Australian decision to "protect Qantas from competition". "It is not a rejection, but another delay of Singapore Airlines' request to be allowed to compete on the Transpacific route, according to information provided to us by the Australian Government today," it said in a statement. Qantas and bankrupt US carrier United Airlines are the only two airlines offering direct flights from Australia to the mainland United States. Discount carrier Virgin Blue has also said it wants access to the route. -------- We predicted that the Australians might do this. Now Qantas may have to find another way to LHR instead of SIN.

United & Verizon to offer in-flight Internet

IAG recently undertook an online survey among its travel panel and readers of Tripso.com to ascertain travelers’ response to an announcement by United Airlines and Verizon that they are planning to offer in-flight Internet access. This service is available on selected international flights on non-US carriers. To date, this announcement is the first from a US-based carrier that such a service is being considered. There are rumors that other airlines are considering this service too, but no formal announcements have been made. The survey gathered 280 responses and provides an overall 90% confidence level. The survey is located at http://iag-inc.com/int/interview.cfm?id=44. The results are quite enlightening and are as supportive of this service as similar surveys conducted by IAG regarding in-flight Internet access. Key results: o Among all respondents, less than 10% think in-flight Internet is “An awful idea”. Among those who would not switch to United for this service, 84% rate such a service as “Its great” or “I’m not sure”. Even among respondents uncertain whether they would switch to United for this service, less than 3% think “Its an awful idea”. The data seems to be strongly in favor of United and Verizon providing in-flight Internet access. We think that the fact that nearly half the respondents who would not switch airlines for this service still regard it as “Its great” makes a compelling statement. o 40% of all respondents stated they would make use of this service on every flight. Another 44% would use it occasionally. This data indicates that the service is likely to have a relatively inelastic demand curve – respondents to this survey, while perhaps a biased group of travelers, are precisely at whom this service is aimed. It would appear that these respondents are eager to make better use of what is currently “dead time”. o Among respondents who do not fly United regularly, a perceived mean value per flight of $7.76 and median of $5 was generated. Among respondents who fly United regularly, a perceived mean value of $8.10 and median of $8 was generated. These numbers are interesting since the currently services are priced at $30 per long haul flight or $10 per hour. It appears respondents are giving guidance that they would likely use the service for about an hour in-flight. o Preliminary approval has been given for Boeing 757s, of which United has 100. IAG projects that United and Verizon could see 45 in-flight Internet users per flight at $8 per flight. There are ~200 seats on a 757. Previous surveys show that we can expect to see over 50 laptops on a flight. Our data suggests that many (most?) of laptop users will use in-flight Internet - especially at this price. Bear in mind that people will have a flat fee added to their Verizon account (say $20/mo based on what T-Mobile charges). Therefore we expect to see most laptops up and running for as long as possible on each flight. Assuming each aircraft has 2 flights/day, United and Verizon could see a revenue bump of over $500,000 per week. For the report including charts & tables: www.iag-inc.com/data/tripso#1.pdf

Another wheel well stowaway story

Reuters reports - Pieces of a man's body fell from the wheel well of a South African Airways passenger plane bound for New York's Kennedy Airport on Tuesday and landed in the yard of a suburban home, police said. A US customs inspector discovered the rest of the man's body at 7:30 a.m. (1130 GMT) after Flight 203 landed in New York from Johannesburg, said a spokesman for the Port Authority of New York and New Jersey, which oversees area airports. A South African Airways spokeswoman said it appeared to have been a stowaway attempt. She said the plane had stopped in Dakar, Senegal, on its way to New York. The pilot reported feeling vibrations at takeoff but conducted a check and found nothing amiss, said Nassau County, New York, police detective Kevin Smith. During the flight, Smith said the pilot felt more "vibrating sensations and heard pounding, but nothing appeared wrong with the plane." The body parts, which included the right leg, part of the spine and a hip, struck a garage roof of the home in South Floral Park, New York, before landing in the backyard, police said. ----------- This is awful - how is it that people can get to the aircraft? Was this person even authorized to be on the apron? Its very odd.

Now the A350 seems delayed too

Reuters reports - Airbus parent EADS said on Wednesday it aimed to launch its Airbus A350 model by the end of September, dashing hopes of a formal go-ahead at next week's Paris air show. Orders for the A350 model are expected to be a highlight of the world's largest air show, where both Airbus and rival Boeing traditionally make major announcements. Weak demand for the mooted A350 has triggered a series of design changes aimed at winning enough customers to allow the EADS and BAE boards to approve construction of the plane. -------- And then of course there's that little issue about "launch aid". This summer is playout to be a horrible time for Airbus. They started the season with a magnificent A380 first flight though.

Boeing Has Airbus on the Ropes

Spiegel Online reports - After years of losing market share to its European rival, Boeing is now quickly making up ground. Its new Dreamliner looks to be a hit and Airbus seems to prefer squabbling to strategizing. Delays in manufacturing their super-jumbo A380 could turn the prestige project into the company's biggest-ever flop. Boeing's new 787 Dreamliner is giving Airbus super-jumbo-sized ulcers. [snip]... just as the intense power struggle between rivals Airbus and Boeing is coming to a dramatic head, the management of the European aviation group seems more concerned with internal rivalry than with international supremacy. -------- This is a great article summarizing the state of play. It pulls no punches and leaves us with more sober view of Airbus management issues and puts Boeing's own recent management fracas into perspective.

New US-Stanstead service coming?

WSJ reports - Much of the action is part of a broader series of moves to court the luxury traveler, who has money to spend again and who has in part become disillusioned with commercial aviation and post-Sept. 11 security measures. The premium trans-Atlantic market is valued at $10 billion a year, and is growing annually by double-digit percentages. --------- This is interesting, who knew the market was this big?

AirTran Airways goes with G2 Switchworks

AirTran Airways is the first low cost carrier to support the G2 SwitchWorks TRUEconnect network. The deal allows AirTran Airways to reduce its cost of distribution while providing travel sellers with broad access to content along with cost savings and automation. This agreement offers more than 80 percent savings in distribution costs versus the traditional GDS fees, thus ensuring AirTran Airways' low cost leadership in the airline industry. ----- This is interesting because it addreses the more expensive GDS model. It also means the airline's web site is not enough as a sales channel.

Do they need money this badly?

Wash Post reports - On a recent Alaska Airlines flight, passengers were told to remain buckled and seated for the last 30 minutes before landing at Reagan National Airport. It was a standard security measure for flights heading into restricted airspace over Washington. It also turned a planeful of passengers into captive customers who were then pitched a Bank of America Visa card -- with little chance of tuning it out. Over the intercom, a flight attendant encouraged passengers to sign up for the Bank of America credit card. Then other flight attendants went down the aisle handing out applications. -------- This is awful! As stated later in the story another reason to buy noise-cancelling headphones. Maybe its an easy way for the airline to make a few bucks. But passengers have to esndure this - there is no way to opt-out. This sort of thing gives new meaning to captive audience.

Bush to ask EADS for aircraft plant

Gov. Jeb Bush and economic development officials Thursday will be in Arlington, Va., to formally ask EADS North America to locate an engineering center and aerial tanker assembly plant in Brevard County. If EADS North America, a U.S. holding company of the European Aeronautic Defence and Space Co., selects Melbourne International Airport as the site for its project, it would immediately mean 200 higher-paying engineering jobs. And if the company gets a major Air Force tanker assembly project, it would result in 1,100 new assembly jobs for Brevard. ------- Now this gets interesting. You can only imagine how the folks in Washington, Missouri, California and Kansas (traditional US aviation factory sites) will react. Of these California most needs the jobs with the slow industry demise in Long Beach. There are lots of skilled people around the Seattle area, too.

EasyJet Introduces Pay-Per-Use Lounges

EasyJet announced yesterday it has reached an agreement with ground handler and lounge operator Servisair/GlobeGround to launch easyJetLounges. EasyJetLounges give easyJet's 26 million customers access to lounges at all but three of easyJet’s 14 European bases (excludes Belfast, Basel and Paris Orly). Travelers can book the facility at a total of 33 airports throughout Europe online at rates starting at £12.00 (€18). The lounges offer complimentary beer, wine and spirits, beverages, snacks, and access to business facilities. Servisair/GlobeGround has developed a new lounge at Nottingham East Midlands Airport, which will open in June. More airport lounges will be available over the next few months. ----- Cool idea. Another way to get some more money out of the traveler's wallet in return for a real benefit. Lets hope these clubs offer WiFi. Might this be an idea we could use over here in the USA?

More on United & Verizon

The approval was granted after the two companies demonstrated that the usage of 802.11 b/g wireless technology within the cabin does not affect the aircraft's operation. Most laptop computers sold today are equipped with the wireless 802.11 b/g standard. The two companies have worked in conjunction for more than a year, including months of preparation and testing for safety and functionality, to obtain FAA approval for the service. The approval currently applies to the cabin of United's Boeing 757-200 aircraft, as it was used to test the technology, and is part of a larger strategy to enable high-speed wireless Internet access on board all United aircraft. The date that customers may begin using Wi-Fi devices on United ultimately will be determined by the Federal Communications Commission's (FCC) scheduled "Air-to-Ground" spectrum auction to be held in the coming months, where service rights and range of frequencies will be awarded to one or more providers for onboard passenger access to the Internet. Once a service provider is selected by the FCC, United says it is positioned to act quickly to implement the service. ---------- This is very good news - US travelers typically have longish flights domestically and this service will be a huge positive for business travelers.

More Air Zimbabwe fiasco stories

Air Zimbabwe Opens New Route, But Suffers Fuel Shortage and IATA Problems Air Zimbabwe has used its new Chinese-built MA-60 to launch a new route connecting the Zimbabwean capital of Harare with Malawi's capital of Lilongwe, the Zimbabwe Standard reports, but at the same time the airline is suffering fuel shortages that have led to delayed and cancelled flights and is in trouble with IATA. The Standard reports that Air Zimbabwe has begun operating a daily flight between Zimbabwe and Malawi using its new aircraft. The airline also recently has launched a new route to Dubai, but the new routes come amid word that the airline is suffering a fuel shortage crisis that has disrupted flights. Flights reportedly were cancelled and delayed the week before last when the airline had trouble securing fuel from its sole provider. Meanwhile, Air Zimbabwe is in trouble with the International Air Transport Association (IATA). According to a report from Zimbabwe's Financial Gazette, Air Zimbabwe owes IATA some $1.5 million in unpaid fees and is facing another suspension from the organization's clearing house. Just last year, the Gazette reports, the airline was temporarily suspended from IATA's clearing house due to $1.3 million in unpaid fees. -------- There's a joke doing the rounds.... what did Zimbabwe have before candles? Electricity.

BIG news from United & Verizon

NYT reports - United Airlines Approved for In-Flight Internet Service By JEREMY W. PETERS United Airlines plans to announce today that it is the first domestic airline to receive approval from regulators to install wireless Internet networks on its planes. United passengers will not be able to take advantage of the service just yet. The airline is still at least a year away from having its in-flight Wi-Fi service up and running. When it does, sometime in mid- to late 2006, passengers will be able to check e-mail, send instant messages and surf the Web at 30,000 feet. Similar services are already available on international flights operated by Lufthansa and Japan Airlines, among other carriers Wi-Fi is also available in terminals across the country. Many airports, like LaGuardia in New York, charge a flat daily rate to use a wireless Internet connection, while JetBlue Airways offers free Wi-Fi at some of its gates. Dennis Cary, United's senior vice president for marketing, said the airline would charge for the in-flight service but had not yet determined what the cost would be. "We're certainly aware of what the mental price points are for our customers," he said. Lufthansa, which offers Wi-Fi on many of its international flights, charges a flat fee of $29.95 for an entire flight or $9.95 for a half-hour. Major domestic airlines like United are trying to find new sources of revenue and rein in costs. Many are cutting back on perks or charging for things that used to be free, including food. American Airlines eliminated pillows from coach on its domestic flights last year, prompting Northwest and Delta to follow suit. More high-tech amenities have traditionally been a marketing tool of low-fare carriers like JetBlue, which offers in-flight DirecTV service at every seat and is now installing XM Satellite Radio in its planes. Song, the low-fare subsidiary of Delta, offers a touch-screen audiovisual system with on-demand movies, video games and music. United, a unit of the UAL Corporation, said it was not reacting to competitors but responding to what its customers have said they want. "Regardless of the competitive landscape, it's something we have heard loud and clear from our customers," Mr. Cary said. Whether in-flight wireless Internet will entice more customers to fly United, which is operating under bankruptcy protection, is up for debate. "It's more bells and whistles that people like," said Betsy Snyder, an airline analyst at Standard & Poor's. "But does it actually lure people? I don't know. I think it's all ticket price." United's Wi-Fi system will piggyback on its existing onboard phone network, which is operated in a partnership with Verizon. Data will be transmitted to and received from the planes through towers on the ground. Mr. Cary said the Wi-Fi system would not interfere with communication between the cockpit and ground control. "Between our safety experts and those at the F.A.A., they are completely comfortable that this technology does not conflict with any of the other on-board technology," he said. With Wi-Fi making its way to the nation's airplanes and the Federal Communications Commission seeking public comment on easing rules banning cellphones in flight, will cellphones be next for United? Mr. Cary said United had no current plans to begin accommodating cellphones, but "where it goes next, we'll have to wait and see." -------- This is HUGE. The other players will now start to move in response. Its really interesting to see UAL decide to work with Verizon and not Connexion - United is an offshoot of Boeing going way back to Bill Boeing. What we find remarkable is that United - even though in Cahp 11 - has been thinking along these lines. This indicates the folks there are on their game - good for them! They made this move before Southwest or even AA and JetBlue.

More A350 details emerge

Seattle PI reports - "Boeing argues they have a little more headroom on their plane, so we changed the shape of the sidewall to have similar width," Leahy said of the recent A350 changes. The A350-800, with more seats than the 787-8, will be able to fly about 300 miles farther than the Boeing plane with about 4 percent lower fuel burn per seat and lower maintenance cost per seat, Leahy said. The cash operating costs to the airline per seat will be less than for the 787-8, as will the plane's empty weight per seat, he said. And not only does the A350-900 beat the 787-9 on any seat-cost comparison, but it is also beats the 777-200, Leahy said. "We have about same number of seats, and I can fly about same range, within a couple hundred miles, but burn 30 percent less fuel and I'm doing it with a much quieter airplane," Leahy said of the A350-900 versus the 777-200. Scott Carson, Boeing's jetliner sales chief, said he's not worried about the latest A350 changes. "We are happy, from both a 787 and 777 point of view, with the tactic they have chosen," he said in an interview at the same airline conference in Tokyo that Leahy attended. "We think we can hold our own in any toe-to-toe competition." Taking on the 787 as well as the 777 with the A350 represents a big switch in the Airbus strategy, Carson said. Moving the crew rest below the cockpit as Airbus did on the A350 eats up valuable cargo space, Carson said. "From a 787 view, that's neat because our plane has huge cargo volumes," Carson said. "And from a 777 view, that's an interesting competitive place to be (for Airbus and the A350) because we have the cargo market." ------- You have to love these guys - at each other every day until the air show.

Emirates key to Airbus's fortunes?

Gulf News reports - Emirates is by far the biggest customer for the A380, accounting for close to a third of the order book for the world's biggest passenger jet. At the same time Airbus is desperately seeking the crucial initial orders for the A350, so that it can announce the industrial launch for the project, ideally at the Paris Airshow in two weeks' time. ---------- Emirates is expect to provide the biggest order for the 350, too. One has to wonder about Airbus being exposed so much to one customer. What happens if Emirates growth slows down? If the growth slows to single digits(4%-6% annually which most airlines consider normal) would have a serious impact on Airbus. How deep are the pockets in Euroland?

World's best: Top 10 airlines named

NEW YORK (CNN/Money) - Does the notion of air travel conjure images of gate agents bickering over carry-on bags, harried flight attendants and adult-sized bodies crammed into a child-sized seats? Well, guess what: on some airlines, a flight is a trip to be enjoyed, not endured. A massive survey released Thursday names airlines that customers actually like to fly. The poll, conducted by London-based consultancy Skytrax, asked people to grade the world's airlines according to a broad variety of criteria. Taken over the course of a year, it tallied more than 12 million responses, from citizens of 94 countries. The winner was Cathay Pacific, the Hong Kong-based carrier most Americans only get to fly if they're making the long haul to Asia. (Click here to see complete results.) Cathay won particular praise for its first-class and business-class service, but Skytrax made it clear that the best airlines keep folks happy back in the cheap seats, too. "This is the most representative survey of airline passengers across the globe," said Miller in a statement. "It encompasses all passenger types, be they business travellers, vacationers or backpackers." The study looked at the entire travel process, from booking a ticket to arriving at your destination. Airlines were graded for their performance both on the ground and aloft. At the airport, that meant the efficiency of check-in and boarding procedures, handling of delays, even whether gate crew were friendly. In flight, respondents were asked to assess onboard amenities and the conditions of the planes, as well as service in the sky. Premiums were placed on cabin cleanliness and the comfort and layout of seats, as well as the food. Where's the United States? As is typical with surveys of this sort, few U.S. carriers scored very highly. It's tempting to say that's a function of their financial problems -- except for the fact that business conditions are challenging for airlines all over the world. Or, you could argue that some of the best performers are national airlines that receive generous financial assistance from their governments. Credible -- until you remember those billion-dollar bailouts Washington handed out after September 11. In fact, the problem for U.S. airlines is partly logistical. Americans hop around the country on a series of short flights. Delta can only offer so much service on a 30-minute shuttle flight, for example. Covering longer distances domestically often means confronting the hub-and-spoke systems, too. Even if the Southwest flight attendants make you chuckle, you're still changing planes in Dallas. Most of the survey's top performers -- Qantas from Australia, or Dubai-based Emirates -- fly a greater percentage of long haul trips. On a 12-hour flight, your staff had better be nice. "Cathay Pacific was repeatedly singled out for the high quality and consistency of its front-line staff, in both the airport environment and onboard flights," according to Miller. "Cathay certainly seems to have achieved its motto of 'service straight from the heart' and wowed passengers accordingly." Cultural factors might also be at play. Robert Crandall, the crusty former boss at American Airlines, used to say that customers always talk in surveys about food and legroom. But when it comes to buying tickets, the only thing that ever matters to them is price. In other words, good service is nice but we'll put up with a lot if it means a cheaper seat. Americans, as a rule, won't pay more for a plusher seat or better food. And U.S. airlines know it. Actually, the U.S. carrier that performed best on the Skytrax survey was JetBlue. The scrappy New York-based discounter was named the world's top low-cost airline. That makes sense to me. After all, JetBlue combines some of its nation's best cultural values. It's innovative -- love that satellite TV service -- with an energetic workforce. On the operations side, the company hums with an efficiency to make an MBA proud, streamlined from seats to fleet. Efficiency is good for investors and bargain-hunting consumers, of course. But what if you long for a bit of luxury? Fly the friendly skies -- of Asia.

Suppliers Gain from Online Travel Buyers' Promiscuity– PhoCusWright Survey Finds That More Airline Shoppers Are Disloyal to Online Travel Agencies

– PhoCusWright Survey Finds That More Airline Shoppers Are Disloyal to Online Travel Agencies – Four in 10 online travel shoppers have shopped an online travel agency site, but ultimately purchased direct from a supplier, according to a new report published by PhoCusWright Inc. This behavior is more pronounced for air than any other segment. Findings from the newly released The PhoCusWright Consumer Travel Trends Survey Seventh Edition, which surveys "online travelers" in the U.S., found that nearly half of online travel shoppers have looked at online travel agencies but ultimately purchased direct from an airline (either through the call center or Web site). That compares to three out of 10 who have shopped online travel agencies but ultimately purchased direct from a hotel or car rental company. Clearly loyalty remains elusive for online travel agencies and suppliers alike. But in the past two years, online travel agencies have been losing coveted customers to the supplier-direct channel, which includes the supplier Web site and call center. Low price guarantees, loyalty points, and improved Web site navigation and services have impacted this shift. In fact, more than twice as many online travelers (36%) believe that the supplier-direct channel provides the best customer service compared to 15% who choose the online travel agency channel. Even offline agencies, which are coveted for their personal touch in a technology-driven world, did not fare as well, with 33% claiming they provide the best customer service. An even more compelling finding is that nearly four out of 10 (38%) online travelers believe that suppliers offer the lowest prices, up from just 14% in 2002 - a 24-point gain in two years. Despite this improvement, more shoppers (45%) still think that online travel agencies offer the lowest prices - by far their largest asset in the minds of consumers. Online shoppers believe that suppliers offer the lowest fees (44% vs. 29%), most bonus miles/loyalty reward points (51% vs. 14%), and an easier change/cancellation policy (39% vs. 17%) compared to online travel agencies. "Online agencies have lost their footing with leisure travelers in 2004 as a result of aggressive supplier efforts to better manage inventory and win business through a combination of online and offline direct channels," according to Susan Steinbrink, PhoCusWright analyst and author of the report. "The key to their long-term, Internet survival will be in successfully upselling the customer with valued multiple travel components." The PhoCusWright Consumer Travel Trends Survey Seventh Edition examines consumers' online packaging habits and compares "switchers" and "loyalists." For the past seven years, PhoCusWright Inc. has conducted a nationally representative Consumer Travel Trends Survey among online travelers to ascertain data on travel shopping and purchase behavior. To qualify for this study, respondents had to indicate if they 1) had personally taken a trip by commercial airline in the last 12 months, and 2) had used the Internet in the last month. A total of 500 interviews were conducted via telephone from International Communications Research/ICR's centralized telephone center between Oct. 6 and Oct. 16, 2004. The PhoCusWright Consumer Travel Trends Survey Seventh Edition combines seven years of data providing a perspective on the evolution of online travel through the consumers’ eyes, distinguishes among leisure and business travelers and monitors some of the industry’s hottest trends, including impact of service fees, price guarantees and loyalty programs. It is the first report in this series to monitor online timeshare/vacation rental purchases. The 43 page report containing 45 tables is available for individual purchase.

BREAKING: Virgin Atlantic Flight Sends Out Hijack Signal

Foxnews is reporting a hijack code is being transmitted on a London-JFK Virgin flight. It is being diverted with by Canadian fighter jets. The BBC is reporting the code was sent in error (no link, just the front page ticker) Virgin Atlantic Flight Sends Out Hijack Signal

Friday, June 03, 2005

WASHINGTON — Canadian fighter jets scrambled to intercept a Virgin Atlantic flight from London's Heathrow Airport to New York's John F. Kennedy International Airport that is sending out a hijack code, FOX News has confirmed.

Virgin Atlantic Flight 45 has been diverted to Halifax, Nova Scotia in Canada. According to the Virgin Atlantic Web site, the flight departed London at 9:35 a.m. local time and was scheduled to arrive at JFK at 12:12 p.m. EDT. The arrive time has now been delayed until 2:05 p.m. EDT.

Contact has been made by the pilot, who says everything is fine, U.S. homeland security officials said, yet the flight continues to issue the hijack code, 7500. The fighter jets were sent out of extreme caution.

The Federal Aviation Administration would not comment on the incident and was directing all inquiries to the Department of Homeland Security.

An aviation source told FOX News that there are no matches from any terrorism watch lists for any individuals on that flight.

The source said the fighter jets had already met the flight in the air and the pilots reported not seeing anything unusual on board. The fighter jets fly along side the plane in question and the pilots are able to see both the pilots in the cockpit, as well as the passengers. No one looked particularly alarmed, the aviation source told FOX News [ed- I'd be alarmed if fighter jets were looking through my window and diverting my flight!].

Update: Foxnews is reporting that the A340 has landed in Halifax. Update: BBC is reporting that Virgin confirmed it was an error. How a pilot of a reputable airline can transmit and hold the transponder code to a hijack signal is beyond me.

A380 Delys explained - sort of

The link is to an IHT article that suggests a "supplier problem" is in in Airbus' own Hamburg Germany factory. It seems the problems have something to do with wiring. Reading between the lines this problem might be related to poor internal communications within Airbus and of course impacted by the ongoing succession problems. Can you believe that a problem identifiedd a year before original delivery has resulted in a six month delay to first delivery? There has to be more too this.

How to make money in the airline business

Indonesia/Singapore Air Service Agreement Excludes Low-Cost Carriers Singapore's Business Times reports that a new air service agreement between Indonesia and Singapore will broaden traffic rights for full-service carriers, but maintains a ban on foreign low-cost airlines serving Indonesia. According to the report, Singapore carriers gain a 15 percent increase in capacity from Indonesia in exchange for Garuda securing additional fifth freedom rights beyond Singapore. But Singapore was unable to get the Indonesian government lift its ban on foreign low-cost carriers, halting Tiger Airways' and Jetstar Asia's expansion plans. Tiger Airways reportedly flies to Indonesia's Padang, which it started before the ban, but is barred from other cities. Also affected is AirAsia's AWAIR, which has its Jakarta/Singapore route plans frozen as a quid pro quo because of the ban. ValuAir, which already serves Jakarta and reportedly is not considered a low-cost carrier by the Indonesian government, is unaffected by the ban but will have to compete for the new traffic rights. -------- Its great to have the government as your partner. Nothing more effective than an indirect taxation on travelers. This is appalling public policy. Singapore is supposedly a free market society. Not too sure about Indonesia.

Airbus vs. India - Round 3

NEW DELHI: In a new twist to the controversy over the purchase of aircraft by the Air-India at an estimated cost of over $7 billion, Europe-based aircraft manufacturer Airbus has sough fresh evaluation for the 18 189-seater planes that have been selected for Air-India Express, a fully-owned subsidiary of the national carrier. In a letter to the airline, Airbus has said that selection of aircraft should be done on a typical low-cost configuration. A-I had evaluated the deal on a two-class configuration but finally chose to buy the 18 planes with an all-economy configuration. The Maharajah has favoured purchase of 18 Boeing B737-800 for its low-cost subsidiary and the proposal is now under the consideration of the Centre. ----- Wow - this is a never ending saga.

New US-Africa service

North American Airlines Introducing Nonstop Scheduled Service to Ghana North American Airlines, a wholly owned subsidiary of World Air Holdings, Inc. has announced it will introduce a weekly nonstop Boeing 767-300ER scheduled service from John F. Kennedy International Airport to Accra, the capital of Ghana, starting July 1. World says it is prepared to introduce additional flights on the route, which initially will be the only direct route between the U.S. and Ghana, if demand warrants. ---- How much longer before they continue these flights to Jo'burg? This has to be one of the most under-served US international markets with one carrier and the market roughly equivalent to that of Malaysia.

US air traffic keeps on growing

1.46 Billion Passengers Traveled Through North American Airports in 2004 (that's 4 million people per day) Airports Council International-North America (ACI-NA) last week announced that more than 1.46 billion passengers traveled through North American airports in 2004. Both passenger traffic and cargo grew by eight percent and five percent respectively, while total operations increased one percent. Hartsfield-Jackson Atlanta International Airport retained the number one worldwide ranking for passenger traffic, counting 83.6 million passengers in 2004, an increase of 5.7 percent over 2003. Atlanta was followed by Chicago O’Hare International Airport (75.5 million) and Los Angeles International Airport (60.7 million). Memphis International Airport remained the busiest cargo airport in the world, handling over 3.6 million metric tones — an increase of 4.8 percent over its final 2003 numbers. Chicago O’Hare remained in the highest position in total operations worldwide with a yearly total of 992,427 movements. Atlanta posted a 5.8 percent increase in operations at 964,858 movements. Dallas/Ft. Worth International Airport ranked third with 804,865 operations with an increase of 5.2 percent. Toronto’s Lester B. Pearson International Airport was Canada’s busiest airport in two of the three categories, ranking 17th in North America for passengers (28.6 million) and 19th in total movements (403,778). The top-ranked Canadian cargo airport was Vancouver International Airport, which ranked 29th in North America (234,015 metric tones). “The aviation system now has to accommodate record numbers of passenger demand and it is more important than ever that we have funding to meet airport and system needs,” said ACI-NA president David Z. Plavin. “Unfortunately, the current FAA budget proposal leaves a significant gap in the funding necessary for the entire aviation industry infrastructure. Accordingly, ACI-NA and member airports will work harder than ever this year to get a budget that ensures critical safety and capacity projects are built and passengers receive the level of service they deserve." The ACI-NA Traffic Report contains passenger, freight/mail and aircraft operations data for 187 North American airport members.

Ethopian leads with 787

Ethiopian Airlines yesterday announced that it has increased its firm orders for the Boeing 787 Dreamliner to 10 aircraft by exercising purchase rights obtained with its initial order announced Feb 4. Ethiopian Airlines is the first Boeing 787 customer to exercise purchase rights or options for the Boeing jetliner. It is a move that came with the signing of a formal contract for the aircraft, valued at $1.6 billion at list prices. "Having been the first to bring jet service to the African continent, Ethiopian Airlines is excited to once again be the first by launching operations in Africa with this revolutionary airplane," Ethiopian Airlines CEO Ato Girma Wake said in a statement. ---------- Wow - this is impressive. Good for them at being such pioneers.

Aboulafia tears into Canada

Use this link to read a very funny piece on the launch of Bombardier's C-series.

United reaches tentative deal with IAM on cost cuts

ATW reports - United Airlines appears to have avoided potentially crippling strike action after reaching an agreement in principle on a new contract with 20,000 ramp agents and customer contact employees represented by the International Assn. of Machinists.Terms of the deal were not released, but it is believed that the airline was seeking $180 million in annual savings from the group. News of the agreement came shortly after United's mechanics, represented by the Aircraft Mechanics Fraternal Assn., announced that members had ratified their new five-year deal reached earlier this month (ATWOnline, May 18). Terms of that contract were not disclosed, but reportedly it will save the carrier $96 million a year and includes a 3.9% pay cut as well as reductions in sick time and holiday benefits. ------------- And so it seems that organized labor, long the bane of this industry, has either begun to understand how bad things are, or they are waiting for later to try again. How does threatening to strike make sense to the unions? Killing United only makes sense if you have another job - and these people don't. Organized labor is at its weakest its been. These threats are simply nuts.

Verizon talks up In-Flight WiFi

Click the attachment to download the PDF file. Subject to being awarded a license by the FCC, Verizon is talking about going into in-flight WiFi. This is big news and an endorsement of you have been reading here for weeks. Verizon has a big footprint in the US with its in-flight phone service - those handsets nobody uses anymore. This means they are "in" with the major airlines. No doubt Verizon has a revenue share relationship they can simply expand to include WiFi.