Ongoing events

Delays to be delayed

by laytosplaytosp (08 Dec 2008 00:44)

Delays to be delayed…

The week of 11/24/08:

crowd

Although there may be less traveling this thanksgiving holiday delays in flights are promisingly lowering. Although for travelers this is great news and lessens the stress of traveling, especially during the holiday season the same can't be said for the industry. The reason for less delays comes as a result of reduced flight schedules. Alan Levin, of the USA Today, reports, "Delays over 45 minutes, meanwhile, fell 20%." In addition to reduced flight schedules the government has actually took measures to reduce the New York air traffic. This is baffling because it goes against the deregulation standards. The hopes are passengers will notice the decline in delays and start looking on the airline industry in a more positive light. This is the time for airlines to really crack down on delays.


Safety Measurements Still Taking Place

by laytosplaytosp (08 Dec 2008 00:44)

Safety Measurements Still Taking Place

The week of 11/18/08:

ticket

This week in the airline industry the government is putting an end to the ability to counterfeit a boarding pass from home. This is very scary to think about because it has been an well-known loophole and the government is just addressing it. Now the tickets will have barcodes that will make it very difficult to forge. Wired reports, "By 2010, the same barcode system will be required on all airlines’ paper passes." The requirement to show I.D. will still stay in place. This for many travelers makes sense. As a traveler myself I was not aware that some tickets didn't have barcodes. With the terrorist attacks in 2001 it is uneasy for me to think this measurement wasn't taken earlier.


Bad news for the industry…

by laytosplaytosp (08 Dec 2008 00:45)

Bad news for the industry…

The week of 11/10/08:

people

This week in the airline industry the costs of travel are lowering. In all sectors: flight, cruise, and hotels. Although this is great news for travels, but the lower prices came as a result of the financial crisis. This has led airliners to drop prices in order to fill spaces. The financial crisis has led many travelers to stay grounded. Many tourist attractions are forced to follow suit with the airline industry and are coming up with various schemes in hopes of bringing people out of their houses and spending money. The financial scare has left many Americans holding back and watching their spending and the effects are rippling in all sectors.


Delta and Northwest Join Forces

by laytosplaytosp (08 Dec 2008 00:46)

Delta and Northwest Join Forces

The week of 10/29/08:

nwa

This week in the airline industry the Delta and Northwest merger deal has been approved by the federal antitrust regulators. Delta offered $2.6 billion for Northwest. The employees of both companies still worry about job security. In an article on reported on Reuters reports this merger "would create the world's biggest airline by passenger traffic." The U.S. Justice Department adds, "the Division has determined that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit US consumers."


Your flight a la cart

by laytosplaytosp (08 Dec 2008 00:46)

Your flight a la cart

The week of 10/6/08:

aa

American Airlines is going to try a new pricing strategy where they "unbundle" many of the options included in the average fare price. The customer will have the ability to add other options to their basic airfare for small fees. This plan will be played into action next year. Air Canada is currently using this strategy. Many travelers are unsettled by this change in pricing because they feel American Airlines is just going to get all that they can out of them. Daniel Garton, American Airlines' executive vice president of marketing, said, "We as an industry have opted to not just raise (ticket) prices but to raise prices and change the fee structure." The rising ticket prices are a result of the rising costs the airline industry is currently facing. Many are left wondering what the airline industry won't charge for?


Safety Restrictions

by laytosplaytosp (08 Dec 2008 00:47)

Safety Restrictions

The week of 10/2/08:

liquid

The Transportation Security Administration reported that the 3-ounce fluid in a baggie restriction may be did away with by the end of the year. They have been testing different software and security steps in their current systems to detect bomb-making fluids. They have already developed X-ray technology, but they must ensure that it works. Scott McCartney, of the Wall Street Journal, reports, "Six hundred of the new machines will be in airports by the end of 2008, with 300 more in place by the end of the '09 fiscal year. This would be great news for the efficiency of getting passengers to their gates quicker. This could lessen the stress of traveling for many.


Shareholders OK Delta-Northwest Merger

by laytosplaytosp (08 Dec 2008 00:47)

Shareholders OK Delta-Northwest Merger

The week of 9/25/08:

delta

This week in the airline industry the shareholders of Delta and the shareholders of Northwest voted on the approval of their merger. The vote was nearly unanimous. The next step in the merger is getting the federal antitrust regulators to approve the deal. Although the shareholders are all in an agreement the workers of Northwest are finding it hard to accept. Many are worried about job security when the firms integrate. Atlanta Journal-Constitution reports, "If the deal goes through, Northwest shareholders will receive 1.25 shares in the new firm, to be called Delta, for each Northwest share they own."


Overworked

by laytosplaytosp (08 Dec 2008 00:48)

Overworked

The week of 9/12/08:

pilot

This week in the airline industry pilots are fighting back claiming to be overworked. The airline pilots are suggesting the amount of hours that are federally mandated do not realistically reflect the effect of fatigue. This may be a result of the airline industry feeling the affects of a sluggish economy. Airline carriers are currently looking for any possible way to cut their costs and save a few pennies. The current allotted hours have been in place since the 1960s, which leads many to believe it is time to reevaluate them. In a Newser article they spoke of an incident that occurred in Honolulu. The flight missed its destination by 26 miles because the pilots were unresponsive. This is scary to read as a passenger. I know the effects of little, to no sleep and how it effects every part of your system. Having to be a pilot working on little sleep and knowing I have the passengers life in my hands would make me very frustrated.


Winter Iced

by laytosplaytosp (08 Dec 2008 00:49)

Winter Iced

The week of 12/05/08:

ice

This week in the airline industry airline carriers are struggling to get a hold of the necessary liquid to de-ice runways. This comes a result of the mineworkers' strike taking place in Canada. With the winter season in full effect this has the potential to cause many delays. Many carriers are reporting that they are going to switch to other chemicals, but this will result in higher costs. The last thing the airline industry needed. This will also have an affect on the environment. The FAA said in a report by USA Today, "The shortage of the runway de-icing chemical means airports can expect prices to be as much as three times higher than last year." This is not good news for airports located in winter prone locations, especially Detroit. This news is almost the worst that could happen to the airline industry.


Tough Quarter for Industry

by laytosplaytosp (08 Dec 2008 00:49)

Tough Quarter for Industry

The week of 10/27/08

fuel

United Airlines, Delta, and Southwest Airlines all recorded quarterly losses partly because of a fuel cost contract gone wrong. The airline carriers all lock in their jet fuel contract far in advance. This ended up working against them when they locked their prices in way higher than jet fuel ended up being at the time. This move cost them millions. Although this hurt many airlines they are still looking to the future optimistically. In an article entitled "UAL, Delta Hedge Losses May Herald Airline Profits" Kevin Crissey, an analyst at UBS Securities in New York says, "The perception is that the airlines are in more trouble than they actually are." Crissey projects profits for the airline industry next year, which is great news for the industry!

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