Posted by: Justin Bachman on November 20
Air France flew its first Airbus A380 today, with the inaugural flight from Paris to New York carrying 538 people, with most of the passengers having bid for their seats to raise money for charity.
The flight generated about $447,000 which will go to five charities. Air France said the bidding for seats raised more than expected, so it selected an additional two projects to fund, one in Madagascar and the other in Brazil. A new A380 flight is no longer all that noteworthy, but I think it’s worthy when a flight is used to generate funds to help charitable causes.
Posted by: Justin Bachman on October 29
Is Boston destined to be a hub airport? Not, of course, in the traditional sense with a network airline aggregating passengers the way they do in Atlanta and Chicago. But JetBlue’s (JBLU) aggressive expansion in Beantown – including a major push planned for 2010 – coupled with Southwest’s (LUV) arrival two months ago makes Boston the next big front in the battle to wrest market share from the legacy carriers.
JetBlue aims to double its operations at Logan in five years, including a 30% jump in flights it announced on Thursday. Most of these are increased frequencies to existing destinations, but they’re notable: three flights per day to O’Hare; seven to Washington-Dulles; two to Denver, San Diego, and San Francisco; five to Baltimore; and four to Fort Lauderdale. All these destinations have fierce nonstop competitors, including Southwest. By next summer, JetBlue will have 78 daily flights to 33 destinations. It is already the largest carrier at Logan with a 17% share of passengers, according to federal data.
Continue reading "Why JetBlue Loves Boston So Much"
Posted by: Justin Bachman on October 28
US Airways (LCC) will slash 1,000 jobs and reduce red-ink routes by the middle of 2010, continuing the trend of U.S. airlines focusing on their hubs as a way to return to sustained profits. By the end of next year, US Airways says 99% of its seat capacity will be concentrated at its three hubs and Washington-Reagan National, up from 93% now. As part of the moves, US Airways will end flights to five European cities: Birmingham, England; London, Milan; Shannon, Ireland; and Stockholm. Two others, Brussels and Zurich, will get year-round service instead of seasonal flights. The airline also is dropping plans to begin flights to Beijing.
Two cities, Colorado Springs and Wichita, will be dropped from the airline’s network, and Las Vegas will see further cuts as the company goes from 64 to 33 daily flights at one of its former hubs. US Airways will also close crew bases at Boston, LaGuardia and Las Vegas. As for its hourly Shuttle service, the airline plans to swap 124-seat Airbus A319s for smaller 99-seat jets on the New York-Boston route.
“By focusing on our strengths and eliminating unprofitable flying we will increase the likelihood of returning US Airways to long-term profitability, which is in all of our best interests,” US Airways CEO Doug Parker said Wednesday in a statement. Last week, the company reported an $80 million loss for the third quarter.
U.S. airlines, which are nervously watching crude oil flirt with $80 per barrel, have taken a hard look at marginal routes in recent months and decided to focus on where the money is. That means the places where they dominate, ie, their hubs. American announced similar plans on Sept. 17, and in August US Airways swapped 125 slots at LaGuardia with Delta, in exchange for 42 slots at Reagan-National and access to Japan and Brazil.
If 2008 was the year of deep capacity cuts amid the crisis of $147 oil, 2009 has been the year of even further strategic pruning. Executives no longer tolerate flights that are not consistent financial performers.
Posted by: Justin Bachman on October 27
Continental (CAL) formally joined the 25-carrier Star Alliance on Tuesday after a 16-month transition. It becomes the first major airline to switch from one such partnership to another, and the company expects some $100 million in new annual revenue from the shift. At Continental’s Newark hub each airline CEO gathered for a welcoming ceremony, seated before a Continental 757 freshly painted with the white/back Star Alliance livery, a flight attendant from each Star carrier standing by the plane.
For business travelers who need a truly global network, Continental helps Star cover Latin America and Mexico, the two most glaring destination gaps for the 13-year-old alliance. Continental’s road warriors will now also get a huge new roster of destinations in Asia, thanks to the six Asian carriers in Star. “If there’s a destination in the world that the Star Alliance doesn’t fly to, I’d suggest you may want to rethink your decision to go there,” joked Continental President and COO Jeff Smisek, who will become chief executive on Jan. 1.
Continental’s divorce from SkyTeam after five years was precipitated by Delta’s (DAL) acquisition of Northwest, which changed the balance of power for Continental and many others, Smisek said. Delta’s ability to buy its way into the largest airline spot last year was a jolt to the industry and demanded a competitive response. Continental’s shift to Star is one. The closer AA-BA relationship across the Atlantic is another, as is Lufthansa’s acquisitiveness.
Continue reading "With Continental the Star Alliance Fills Some Gaps"
Posted by: Justin Bachman on October 14
Could there be labor-management détente underway at United Airlines (UAUA)? United pilots elected a new leader on Tuesday, signaling to many aviation observers a more conciliatory approach after years of bare-knuckle brawling between the chapter and management.
Wendy Morse, a 24-year United veteran and 777 captain, will take over Jan. 1 as the first woman to lead the Air Line Pilots Association chapter at United. Morse has previously served as vice chairman of the United ALPA unit, and was elected on a close 8-7 vote. She will replace Capt. Steve Wallach, who was elected in October 2007, and built his tenure on aggressively challenging United management and calling repeatedly for the ouster of CEO Glenn Tilton. Some pilots also wore wristbands on duty that said “Glenn’s Gotta Go.” Additionally, Wallach wrote to the Federal Aviation Administration in 2008 suggesting a link between then-recent engine problems on 737s and less maintenance oversight as a result of company financial decisions.
“I think they realized this confrontational grudge match is not getting them anywhere,” says Hunter Keay, an analyst with Stifel Nicolaus Capital Markets. Longer term, he thinks, “it’s good not only for United but potentially for the industry as a whole” if pilots decide to pursue their goals by collaborating with airline executives.
Continue reading "Are United Pilots Calling a Truce?"
