Travel Industry Archive

October 2008

For Horizon Airlines, a subsidiary of Alaska Airlines, the Pendleton City Council’s decision to drop them as the carrier of choice for the Eastern Oregon Regional Airport in Pendleton, Ore. came as a direct snub. “It was small-town politics,” said Horizon spokeswoman Jen Boyer from her Seattle office. “We’ve been there 26 years. . . . And the Pendleton City...

More...

Although the recession hit many areas across the nation and abroad, a few locations seem to be vying for the title of the travel industry’s biggest loser. This list is subjective, but based on news reports in the last month. Not surprisingly, three of these areas were regions with a lot of real estate speculation and the highest rates of foreclosure activity in the nation. 5. Whistler,...

More...

Carnival pulls out of UK to Europe route – Carnival Cruise Lines yanked European plans for the Carnival Liberty, deciding to base the cruise ship in Miami instead of the U.K., citing economic uncertainty and the flailing market. The 2009 scheduled route would have taken passengers on a 12- and 13-night cruise from Dover. Passengers already booked on the cruises will be offered a...

More...

Below you’ll find mainline CASM for the third quarter 2008. This includes special charges. Airline Mainline CASM YOY % Change in CASM AirTran 11.56 cents 21.8% Alaska 15.14 cents 45.4% American 13.99 cents 22.2% Continental 13.19 cents 21.6% Delta 12.42 cents 18.4% JetBlue 10.80 cents 31.5% Northwest 14.76 cents 37.2% Southwest 10.67 cents 17.4% United 14.75 cents...

More...

Recently I posted an item about how the International Air Transport Association is backing the use of second and third generation biofuels to lower jet emissions — and they have set their target on algae. Unfortunately, algae biodiesel is decades and billions of dollars away. While some fuel savings can be achieved by streamlining operations and reducing weight, the IATA is looking to...

More...

Here’s a look at various airline cash positions as of the end of September 2008. Airline Revenues (in millions) Unrestricted Cash and Cash Equivalents(in millions) AirTran $673 $318 Alaska $1,065 $1,067 American $6,421 $4,621 Continental $4,156 $2,886 Delta $5,719 $3,081 JetBlue $902 $870 Northwest $3,798 $3,095 Southwest $2,891 $3,431 United $5,565 $2,931 US...

More...

American hawking sandwiches during flights – American Airlines announced today it will begin selling more $6 sandwiches on its flights, this time a panini and a roast beef ciabatta. Sandwiches are only offered after 10 a.m. and on flights lasting at last three hours. [Source: American Airlines] Horizon Airlines rubs decision in Pendleton, Ore.’s face – In an attempt to...

More...

About a month ago, I noted that while Delta and Northwest had both approved their merger, we were still waiting for the most important approval - the US Department of Justice (DOJ) - to come through. Earlier today, that happened, and the merger is now official. I think what was most surprising about the DOJ’s approval is that it didn’t require a single change. No slots needed to...

More...

Lufthansa looks set to exercise its right to buy Bmi (which used to be British Midland International). Majority shareholder Sir Michael Bishop is expected to sell his 50 per cent stake plus one share to the Frankfurt-based carrier for an estimated £318m. Bmi is relatively small, but it holds 12 per cent of the sought after landing slots at Heathrow, Europe’s busiest airport. It also operates...

More...

A domestic flight for $1,000? – Sabre Airline Solutions studied thousands of airline tickets during the Thanksgiving holiday and found that 3.8 percent of round-trip tickets cost $1,000 or more. Another 5.2 percent were at least $900. [Source: Today in the Sky Blog] Hertz raises prices in North America and Europe — Hertz will start raising prices at its retail rental...

More...