Travel Industry Archive

Earlier this month, I predicted that Delta Air Lines would be the carrier with the most job cuts in 2009 and it seems to be heading in that direction. Delta chief executive Richard Anderson told reporters in Tokyo that the company expected 2,000 employees to take early retirement or severance packages and the company’s revenues have dropped to the lowest point since the aftermath...

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Yesterday I wrote about how I would think airlines would feel about the potential elimination of the perimeter rule in Washington. Today, I’m going to focus on New York’s LaGuardia. As I mentioned, there is a rule prohibiting operations beyond 1,500 miles from New York/LaGuardia (with limited exemptions) today. How would the airlines feel if the rule were eliminated, something...

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Mesa Air Group posts $31 million loss — Mesa Air Group posted a $31 million loss in the fourth quarter and enumerated a list of problems plaguing the Phoenix-based regional airline. Mesa Air operates commuter flights for US Airways, United and Delta, and is on the hook for about $92 million in bonds due in the next 60 days, has a contract dispute with Delta and is trying to cash...

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In one of his first acts back in the Senate, Senator John McCain has decided to tackle the perimeter rules in Washington and New York. In short, there are rules in place limiting flights from Washington/National airport to 1,250 miles away and from New York/LaGuardia to 1,500 miles away. If you want, you can learn more about perimeter rules and their quirky exemptions. But what you really...

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Just when he thought he was out, they pulled him back in. Former Southwest spokesman Ed Stewart has decided to come back to the industry by joining Delta as Managing Director of External Communications. Seems like a good move for an airline that can certainly use some PR help. Stewart was with Southwest for years before leaving for Ticketmaster and ultimately the PR firm Fleishman-Hillard....

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Fresh off the news that CityCenter’s Harmon Hotel & Resort cut their tower project in half, Harrah’s Entertainment decided to postpone the opening of its Octavius Tower at Caesars Palace until the hotel market improves. The tower was supposed to open this summer. (Convention space, three villas and an expanded pool and garden will still open.) “It was not prudent to...

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Remember all those nasty winter storms that pummeled the Pacific Northwest? Well those weather problems are going to take a bite out of Alaska and Horizon’s numbers for December. In an 8-K, Alaska says that the storms caused them to reduce capacity by 2 percent in December and the total cost will be between $7 and $9 million. Ouch. Between $6 and $8 million in cost was based on...

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Qatar Airways wants compensation for Boeing delay – Qatar Airways said it was seeking compensation after Boeing Co. revised delivery of their 787 Dreamliner jets for the fourth time in a year, affecting the airline’s business and expansion. The airline has about 60 planes and has been expanding with 200 planes on order, including 30 787 Dreamliners. Boeing’s Dreamliner...

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You might have thought that with oil prices down so much, airlines would have abandoned their efforts to pursue alternative fuels. Fortunately, that hasn’t been the case, and a slew of tests have been in progress lately. Apparently, the airlines still realize that long term dependence on oil will not be the best plan. First, Air New Zealand conducted a test on a 747 using a mixture of...

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I know that I was just crowing about how load factors started creeping up again in December, but not all the signs have been good. If you look at Delta’s December traffic report, for example, you’ll see that international traffic is suffering. That’s quite alarming news for those carriers who have put all their eggs in that basket over the last few years. It’s funny,...

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