Categories: Airline Industry

American's Views on Restructuring and Rivals

Posted by: Justin Bachman on February 06

American Airlines' new CEO, Thomas Horton, makes a compelling case that the airline can prosper after it reorganizes in bankruptcy. His argument, however, is predicated largely on American successfully implementing...

Hawaii Gets New Nonstop Flights. Why Now?

Posted by: Justin Bachman on February 03

For years, East Coast travelers headed to Hawaii had one nonstop option, a daily Continental flight from Newark, N.J. Otherwise, the tropical islands were a one-stop destination. That's changing this...

Why Spirit is Fighting the New DOT Fare Rules

Posted by: Justin Bachman on January 31

In the past week, the Dept. of Transportation imposed new rules requiring airlines to display their prices with tax included, and to give customers a 24-hour window to cancel a...

Teaser Fares Die. How Will Airlines Respond?

Posted by: Justin Bachman on January 25

With the U.S. government banning so-called "teaser fares" this week, I trolled a few airline sites to see how the carriers are implementing this new regulation. The results vary and...

American and Why Different Didn't Work

Posted by: Justin Bachman on November 29

With its bankruptcy filing, American belatedly joined its domestic peers in commencing what will be a dramatic, unpleasant, overdue restructuring. The question for many: What the heck took so long?...

Boeing's Future, Circa June 2001

Posted by: Justin Bachman on October 26

As the long-delayed 787 Dreamliner finally entered commercial service today in Asia, it's worth remembering that this was not the jet Boeing initially planned to build. The 787 is sold...

Air France's Thoughts on New Book

Posted by: Justin Bachman on October 14

On Thursday I wrote about a new book from France that discloses the complete transcript of cockpit discussion in the final minutes of an Air France flight that crashed into...

How to Board an Airplane Faster

Posted by: Justin Bachman on September 02

Here's what happens when you annoy an astrophysicist as he waits to get to his airplane seat: First, he fumes for a year, viewing the process as an inefficiency that...

The Airlines Have a Netflix Problem

Posted by: Justin Bachman on July 27

U.S. airlines have been taking some heat this week for boosting fares to compensate for the end of the 7.5 percent federal excise tax that expired July 23 amid partisan...

Higher Airfares, Better Compensation

Posted by: Justin Bachman on April 20

An interesting confluence of events today: Federal regulators imposed new consumer-friendly rules on airline travel; crude oil futures topped $111 per barrel; and the airlines achieved their seventh successful fare...

FAA Hopes JetBlue Can Deliver a 'Next-Gen' Boost

Posted by: Justin Bachman on February 04

JetBlue Airways is getting $4.2 million from taxpayers to equip 35 planes with advanced satellite navigation gear for a test the federal government hopes will persuade other carriers to begin...

Continental Will 'Lock' Your Fare for a Fee

Posted by: Justin Bachman on December 16

Continental Airlines introduced an intriguing new fee-product this week that lets you pay to secure a fare. The idea behind the new FareLock is simple: Pay a fee to lock...

American Takes Happy Hour to 35,000 Feet

Posted by: Justin Bachman on November 18

Two years ago, as U.S. airlines floundered under crushing oil prices, new revenue schemes were popping up practically daily. It was a virtual free-for-all in which carriers sought to extract...

About That Airline Capacity Discipline...

Posted by: Justin Bachman on October 22

This week airlines wowed Wall Street with robust profits built on rebounding business travel and the industry's restraint about restoring flights. "We will not grow for growth's sake," Jeff Smisek,...

Air Travel Insights From Pilots

Posted by: Justin Bachman on October 21

There are certain maxims of air travel: severe turbulence is much more dangerous for humans than for aircraft; engine failures are manageable; and clear weather at your departure city or...

Airline Fares and Profits Rise -- Will the Service?

Posted by: Justin Bachman on October 20

U.S. airlines began rolling out summer earnings today that topped Wall Street's already-optimistic forecasts: American, Delta and US Airways earned a collective $746 million for the July-September quarter, typically the...

Airline Security Change Spurs a Scramble for Passenger Data

Posted by: Justin Bachman on October 19

A slight change in the federal Secure Flight program could have implications for some travelers. Secure Flight is the Transportation Security Administration's effort to bolster airline security by matching passengers...

Southwest Airlines' Big Deal: It Had Little Choice

Posted by: Justin Bachman on September 27

Chances are good this autumn Monday morning that many are questioning the wisdom of Southwest- an example of a "successful" airline, i.e., one its customers do not despise - buying...

Ryanair Sees a Limit in its Hardcore Business Model

Posted by: Justin Bachman on September 23

Funny things happen when you grow up as an airline. The easiest bits of leisure travel fruit are plucked from the tree. Expansion slows. Capitalism demands change. So you court...

Germany Seeks to Boost Foreign Airlines

Posted by: Justin Bachman on September 01

Ok, not exactly. But that's the probable effect of a new levy the German government approved today on tickets for flights leaving the country, beginning Jan. 1. The predictable uproar...

An Airline That Brags About Its Food, With a Cookbook

Posted by: Justin Bachman on August 25

Rare is the time when an airline is so proud of its food that it publishes a cookbook. Then again, rare is an airline that makes dining - "a topic...

All-You-Can-Fly Deals Need More Airlines

Posted by: Justin Bachman on August 17

JetBlue is back this August with its air travel version of the "all-you-can-eat" buffet. The airline's "All You Can Jet" promotion comes in two flavors this fall, a $699 version...

Flight Attendant Gone Wild

Posted by: Justin Bachman on August 10

A JetBlue flight attendant lost his cool Monday at JFK, cursed a passenger over the PA system and used an emergency exit slide to bolt from an airplane - and...

The Mystery Behind Airline Bumping

Posted by: Justin Bachman on July 21

A wild airline tale made the Internet rounds this week, in which United allegedly bumped passengers from a flight from Vermont to Washington based upon how much each had paid....

Why Airlines Need Their Alliances

Posted by: Justin Bachman on June 24

Over the past year or so there has been a flurry of recruitment among the three main global airline alliances. The SkyTeam alliance, which celebrated its 10th anniversary on June...

The Feared Tarmac-Delay Rule? It Works

Posted by: Justin Bachman on June 03

I had my first encounter with the new federal rule that limits U.S. tarmac delays to three hours. (It was a first for the captain of the flight, too.) The...

US Airways: We Are Not the 'Ugly Girl'

Posted by: Justin Bachman on May 05

The expressive chief executive of Continental Airlines, Jeff Smisek, miffed plenty of US Airways workers on May 3 when he called his company the "pretty girl" in the courtship by...

United Gets Its Way in Airline Merger Talks

Posted by: Justin Bachman on April 22

Why do I feel as if I've just watched a not-so-masterful theater performance? US Airways announced Thursday it was ending merger/sale talks with United, just days after United and Continental...

A Carry-on Bag Fee Tax Won't Fly

Posted by: Justin Bachman on April 16

One of the dumber developments in the airline world took form this week as several U.S. Senators exercised themselves into indignation about Spirit Airlines' new carry-on baggage fee. To say...

Spirit, Ryanair Stoke Fee Fury, but Will They Matter to You?

Posted by: Justin Bachman on April 08

The announcement that Spirit Airlines will charge as much as $45 for a carry-on bag provoked a torrent of reaction. Spirit described its change as “the next phase of unbundling”...

Southwest Airlines: Angling for Access at LaGuardia and National

Posted by: Justin Bachman on March 26

What if your company were allowed to select its competitors? An aggressive upstart could be dispatched in favor of competing against a plodding, bureaucratic rival that doesn’t watch its...

Why the New EU-U.S. Open Skies Accord Leaves Europeans Grimacing

Posted by: Justin Bachman on March 25

The United States and European Union on Thursday announced an accord for the second phase of the 2007 Open Skies treaty that opened the EU to U.S. airlines. The...

JAL Picks American, but Delta's Hardly a Loser in This Tussle

Posted by: Justin Bachman on February 09

The decision by Japan Airlines to retain its membership in oneworld is a stark reminder that no matter how much airlines contend such alliances are for customer service, they truly...

Southwest Grabs More Traffic; Rivals Yawn

Posted by: Justin Bachman on February 04

Southwest Airlines today threw a bit more fuel on the fiery debate about whether baggage fees are helping the airline industry when it reported its January traffic data. Its load...

First Airfare Hike of 2010 Fails -- But for How Long?

Posted by: Justin Bachman on January 26

The airline industry’s first effort this year to raise fares collapsed on Jan. 25 after Delta (DAL) rolled back a $6-$16 per roundtrip fare increase it had matched six...

American Shows Why Domestic Fares Are Headed Higher

Posted by: Justin Bachman on January 20

American Airlines kicked off the airline industry’s fourth quarter reporting on Wednesday, with a $344 million loss, slightly better than the $347 million it lost in the last three months...

Airlines Seek 'Cyber' Monday Sales, Too

Posted by: Justin Bachman on November 30

It’s not just online retailers hoping to cash in on “Cyber Monday” this year – a few airlines are pitching for business, too. United (UAUA), JetBlue (JBLU) and Virgin America...

US Airways Defers 54 Jets Amid Finance Squeeze

Posted by: Justin Bachman on November 24

US Airways (LCC) has gained further financial breathing room, announcing a deal on Tuesday to defer 54 Airbus jets it had been scheduled to receive over the next three...

US Airways Cuts Routes, Retrenches to its Hubs

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...

With Continental the Star Alliance Fills Some Gaps

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...

Airlines' Holiday Surcharges Expand to More Dates

Posted by: Justin Bachman on October 06

This news was just a matter of time: The “peak travel” surcharge American (AMR) added for three busy travel days this year has expanded to ten other dates, according to...

JetBlue, Lufthansa Launch a Unique Code-share; Is This the Future?

Posted by: Justin Bachman on October 01

A glimpse into the possible future of domestic air travel occurred Oct. 1 when Lufthansa began selling seats on JetBlue (JBLU) flights to a dozen cities. In this small code-sharing...

Sully's Back -- Time for a Media Circus

Posted by: Justin Bachman on September 30

Capt. Chesley "Sully" Sullenberger, US Airways’ Hudson River “hero pilot,” returns to his flying job on Thursday, with flights to and from New York’s LaGuardia – the same airport where...

Airlines Set New ‘Premium’ Charge For Holiday Travel

Posted by: Justin Bachman on September 25

A new $10 surcharge for three popular travel dates this winter could make visiting family more expensive. American Airlines (AMR) imposed a $10 charge on domestic flights for Nov. 29...

American Nabs New Funds, Bolsters Hub Flying

Posted by: Justin Bachman on September 17

American Airlines’ parent AMR Corp. (AMR) moved to shore up its balance sheet, announcing $2.9 billion in financing on Sept. 17. The company also said it will revamp broad portions...

Time to Buy Airline Stocks, JP Morgan Says

Posted by: Justin Bachman on September 10

A prominent Wall Street analyst says it’s time to buy into airlines. And not just their public debt, but the actual equity. The rationale -- in a report Thursday by...

Airlines Unbundle, and a Reader Asks: 'Is This Good or Bad?'

Posted by: Justin Bachman on September 09

A Traveler’s Check reader, Lauren, posed an interesting question after reading the summary I posted Tuesday on the enormous leap in airlines’ ancillary revenues. “Is this good or bad?” she...

Airline Fees are Big Money; a Whopping 345% Jump

Posted by: Justin Bachman on September 08

Everyone knows the growth of airlines' ancillary revenues has been extraordinary, but now there’s a worldwide figure on just how extraordinary: $10.25 billion in 2008. That tally represents a stunning...

You're the New Airline Czar. What Would You Do?

Posted by: Justin Bachman on September 04

What if you could impose by fiat your solutions for the U.S. airline industry, becoming a benevolent dictator dispensing fixes in your role as airline czar? Uncle Sam set up...

Continental Express 'Nightmare' Flight Delay Caused by Mesaba, DOT Says

Posted by: Justin Bachman on August 21

A Continental Express pilot tried fervently to get her passengers into the Rochester, Minn., airport on Aug. 8 after being diverted from Minneapolis-St. Paul because of bad weather, according to...

Southwest Rejected in Auction for Frontier Airlines

Posted by: Justin Bachman on August 13

Southwest Airlines (LUV) did not prevail in its bid for Denver-based rival Frontier Airlines, a somewhat surprising development on the first day of the Aug. 13 auction for the bankrupt...

Passengers' 'Rights' Bills Get New Ammunition

Posted by: Justin Bachman on August 10

Like the kid who drops an easy fly in the bottom of the ninth inning of a tie game, Continental Express (CAL) is today likely garnering heaps of scorn throughout...

Southwest and Denver, a Few More Thoughts

Posted by: Justin Bachman on July 31

Analysts are beginning to contemplate the ramifications of Southwest’s (LUV) surprise bid for Frontier and a few areas of consensus are emerging. First, United Airlines (UAUA) is likely to...

Airline Profits and Industry Pessimism

Posted by: Justin Bachman on July 23

Given the Sturm und Drang in the airline industry these days, I thought it might be useful to consider a few points that were given only the tiniest amount of...

Continental Gets a New CEO, Highlighting Smooth Transitions

Posted by: Justin Bachman on July 17

When is an airline CEO’s departure hailed as a sign of corporate health and management strength? When that airline is Continental (CAL). The company said late on July 16 that...

British Airways Wants a Business Meeting

Posted by: Justin Bachman on July 14

When the recession hit with full fury in 2008, many a company slashed its travel spending. Marginally important trips were discarded, while vital ones were curtailed – and business...

Continental, United Win Antitrust Bid on trans-Atlantic Flights

Posted by: Justin Bachman on July 10

Continental (CAL) and United (UAUA) scored a big win today when the Dept. of Transportation agreed to their request to coordinate flight schedules, prices and marketing efforts on trans-Atlantic flights....

Will U.S. Airlines Need a Bailout, Too?

Posted by: Justin Bachman on July 09

Is there a federal bailout coming for U.S. airlines? For a long time, I’ve thought this idea was beyond far-fetched, with about as much basis in reality as Uncle Sam...

Airlines 101: Cheap Fares Spur Leisure Travelers

Posted by: Justin Bachman on June 18

US Airways’ (LCC) chief executive Doug Parker made a bit of news earlier this week when he described a “material” increase in leisure travel bookings the company had seen in...

British Airways Seeks Volunteers – From Staff

Posted by: Justin Bachman on June 16

It’s not every day you see a company soliciting free labor from employees, but that seems to be the way of the world these days. British Airways (BAY), which reportedly...

Weak Airline Demand Shows in the Fares

Posted by: Justin Bachman on June 11

U.S. carriers presenting today at the Bank of America-Merrill Lynch airline conference raised alarm bells about how weak demand appears to be this summer, traditionally the profitable part of an...

Airline on-time records in April

Posted by: Dean Foust on June 09

The Transportation Dept. released its monthly report on the on-time performance of the largest carriers. I know, and you know, that the airlines game the process by overestimating how long...

United's Plane Order: No Longer for Sale?

Posted by: Dean Foust on June 05

I pulled together a story last night for our web site (story link here) on United Airlines’ plans to discuss a potential $10 billion aircraft order with Boeing and Airbus....

Is Seniority Killing the Airline Industry?

Posted by: Justin Bachman on May 04

For decades it’s been a maxim of the airline industry that workers are captive, bound by a seniority system that doles out the choicest wages and work schedules. Seniority is...

Swines and airlines (the swine flu impact)

Posted by: Dean Foust on April 27

The swine flu epidemic that, as of early afternoon on April 27 had claimed the life of nearly 150 Mexican citizens is clearly roiling the airline industry. The good news...

Delta and Australia, Update

Posted by: Justin Bachman on April 22

It seems I was not alone in wondering why Delta Air Lines (DAL) is going to start new service to Australia July 1 amid economically perilous times. Bob McAdoo, an...

Airfares: Why Now May Be Time to Buy

Posted by: Justin Bachman on April 13

U.S. airlines begin releasing their first-quarter earnings reports this week and the news is expected to be dreadful. Traffic plunged compared to the same period of 2008 and the...

Boeing Cuts 777 Output Amid Downturn

Posted by: Justin Bachman on April 09

It seems that Seattle may have just heard the economic alarm Boeing’s largest customer warned about last month. As many expected, the global economy's sharp contraction is beginning to buffet...

Airline Quality and a Little Bad Weather

Posted by: Justin Bachman on April 06

The annual quality rankings for airlines from two college professors are out today, with the headlines trumpeting marked industry improvement in 2008 over the prior year. The rankings consider denied...

Ailing Air Canada Revising a La Carte Strategy?

Posted by: Justin Bachman on April 02

For those who despise the plethora of fees airlines now charge, an intriguing story showed up today in the (Toronto) Globe and Mail. The newspaper reported that Air Canada’s new...

United's Performance Imperatives

Posted by: Justin Bachman on March 17

J.P. Morgan Chase & Co. had a widely attended aviation conference with analysts and investors on March 10, one of the periodic events Wall Street hosts for various sectors to...

Airlines: Capacity Cuts Go Abroad

Posted by: Justin Bachman on March 10

The airline capacity reductions that commenced last year are being reprised for 2009, this time with a global focus. Both Delta (DAL) and United (UAUA) released details Mar. 10 of...

All Nippon's 'Personal' Touch

Posted by: Justin Bachman on March 10

Talk about getting creative to drum up business. My colleague Kenji Hall, in Tokyo, has this great blog post today about All Nippon, the top airline in Japan, asking its...

Airlines and Capital: Ownership Questions Loom

Posted by: Justin Bachman on February 20

Last year, the Open Skies Treaty between the U.S. and European Union opened new routes across the Atlantic. The first phase dealt with liberalization of so-called “cabotage,” the rules that...

JetBlue's Job-Loss Insurance

Posted by: Justin Bachman on February 17

Here’s one way to spur ticket sales: Offer a refund for customers who get laid off and want to cancel a trip. That’s the tactic JetBlue Airways (JBLU) is trying...

Airline CEO Pay vs. Performance

Posted by: Justin Bachman on February 12

The next time you fly and encounter a rude, clueless or generally unpleasant airline employee, recall one of the chief complaints these workers express repeatedly: the compensation of top airline...

Branson’s Take on Aussie Competition

Posted by: Justin Bachman on February 09

My colleague Cliff Edwards has an interesting news analysis on the site today about the pending battle in the U.S.-Australia air travel market, with Virgin and Delta looking to jump...

Further Notes on the US Airways Crash

Posted by: Justin Bachman on February 03

For those of us still in amazement over the successful US Airways ditching on the Hudson River Jan. 15, some new accounts have emerged offering greater detail. Among the more...

Airline Stocks: To Like Or Not to Like?

Posted by: Justin Bachman on January 27

It was a brutal day for Delta Air Lines’ (DAL) shareholders, with the stock down 20% on Tuesday. The company, which is now the world’s largest airline, said Jan. 27...

Why Not Outsource the Flying?

Posted by: Justin Bachman on January 26

For years, the slick travel magazines and trade journals have surveyed their subscribers about airline quality. These queries have produced relatively consistent results in recent years: Carriers such as Singapore,...

Airline P&L: How Does This Story Play Out?

Posted by: Justin Bachman on January 21

The airline industry offered more unfortunate financial data for the last quarter of 2008, with United (UAUA) leading the way in showing how fuel hedging can return to haunt the...

An Airline Bill of Rights, Redux

Posted by: Justin Bachman on January 14

The debate about a “bill of rights” for airline passengers will soon heat up Congress again, as two senators introduced a new version of their 2007 bill on Jan. 13....

Obama Inauguration: A ‘Revenue Premium’

Posted by: Justin Bachman on January 05

Washington D.C. will soon take center stage for the planet’s focus as Barack Obama becomes the 44th U.S. president on Jan. 20, amid a dizzying array of inauguration celebrations. Millions...

China No Longer an Airline Gold Mine?

Posted by: Justin Bachman on December 30

Remember the days when practically every U.S. carrier with a long-range jet wanted to break into China? Delta (DAL), Continental (CAL), US Airways (LCC), American (AMR) – all waged fierce...

Holiday Travel: Not a Pretty Time

Posted by: Justin Bachman on December 29

One of the more common quips heard about flying in America is that domestic airlines are essentially “all the same,” meant usually in reference to the fact that the...

Bargain Fares Are a Holiday Treat, But…

Posted by: Justin Bachman on December 18

Crude oil contracts for January slid below $36 a barrel Thursday in New York floor trading. This occurred the very same week that OPEC chopped production by 2.2 million daily...

Airlines and Crisis

Posted by: Justin Bachman on December 09

It’s become nearly a cliché in just a few short weeks: “You never want a serious crisis to go to waste.” Thus spoke Rahm Emanuel, President-elect Obama’s chief-of-staff, in an...

How to Make Money (Even When Business Stinks)

Posted by: Justin Bachman on December 03

More than a dozen airlines trooped to New York this week for a Credit Suisse aviation conference, where they outlined current business conditions and their plans for 2009. The big...

Southwest Takes a Bite at the Big Apple

Posted by: Justin Bachman on November 19

We're now seeing one spot where Southwest (LUV) aims to mine revenue when its vaunted fuel hedges expire in 2010: New York City. The airline has a relatively thorough account...

Delta Adopts First-Bag Fee

Posted by: Justin Bachman on November 05

The charge for checking a bag has made it to all six legacy carriers. Delta Air Lines (DAL) announced today that effective Dec. 5 it will assess a $15 fee...

Airlines to Public: Time to Get Real

Posted by: Justin Bachman on October 21

A shocking bit of news today as United Airlines (UAUA) reported $252 million in red ink, not counting its unrealized losses on underwater fuel hedges: The fees are here to...

Airlines and a La Carte Pricing

Posted by: Justin Bachman on October 20

On Wall Street, innovation turned out an alphabet soup of new financial products that brought collapse and ruination to the world’s capital markets. Yet we are seeing an arguably more...

Airline Earnings: Not So Bleak?

Posted by: Justin Bachman on October 14

I spent a few days off in Texas, and returned to find generally upbeat assessments about the airlines’ pending income reports. Those red-ink recitations – um, I mean earnings releases...

U.S. Airlines’ Mad Dash for Cash

Posted by: Justin Bachman on October 01

The scramble for liquidity, which most U.S. airlines embarked upon earlier this year, has gone into overdrive. There’s the global credit freeze, which went from chilly to Arctic-blast-frigid in the...

Airlines Also Show the Power of Cash

Posted by: Justin Bachman on September 20

Cash is king. We’ve all heard that old bromide a thousand times, and yet it was really driven home this week as we saw the headlines top each other about...

Virgin America Parties On

Posted by: Justin Bachman on September 13

Virgin America pipes lounge music into its lavatories. This made me chuckle, on my “virgin” flight Thursday with the airline. As did the lavender mood lighting, the deep-black leather...

The wild ride in United parent UAL's stock

Posted by: Dean Foust on September 08

Shares of UAL, the parent of United Airlines, went into a tailspin briefly on Sept. 8 after reports that the (Fort-Lauderdale) Florida Sun-Sentinel inadvertently published a story on its web...

The Future of Advance-Purchase Fares

Posted by: Justin Bachman on August 29

Another airline, the trans-Atlantic budget venture Zoom Airlines, shut down this week, the latest casualty of fuel prices. In the U.S., Zoom flew between London and New York, Fort Lauderdale...

Should BA-American Be Immune?

Posted by: Justin Bachman on August 14

The long-awaited ABI (American-British Airways-Iberia) tango became official today when the trio said it will seek antitrust immunity for its trans-Atlantic flying. My colleague Kerry Capell has a thorough...

A morning cupful of good reads from the Web

Posted by: Dean Foust on August 13

A roundup of some of the most insightful posts in the blogosphere in the past 24 hours: Traveler 2.0 Blogger James Martin discusses his experience in running the security gauntlet...

The Pilots' War At United

Posted by: Justin Bachman on August 11

The war between United Airlines (UAUA) and its pilots took a new turn today with the pilots renewing their call for the resignation of CEO Glenn Tilton. It’s not the...

The Money in Airline Miles

Posted by: Justin Bachman on August 06

No matter what you say about U.S. airlines – and plenty is said, most of it negative – you cannot say that their revenue-generation people have not been working overtime....

Alaska Air's Not-so-Secure Payments

Posted by: Justin Bachman on August 06

Here’s a nightmare scenario: A call-center worker diverts customer money to a personal account and no one detects the theft. That’s what Alaska Airlines is dealing with today, notifying...

Back to the Fare Hikes

Posted by: Justin Bachman on July 31

So much for that respite from the near-weekly airfare raising seen throughout 2008. After a nearly 30-day hiatus, Northwest Airlines went for a hike late Wednesday and raised fares $80...

A New City for OpenSkies

Posted by: Justin Bachman on July 28

The British Airways premium upstart OpenSkies is expanding to a second European city this fall: Amsterdam. The airline, which closed its acquisition of rival L’Avion last week, currently flies from...

No Joke: (Short-term) Airline Profit

Posted by: Justin Bachman on July 23

When it comes to Worst Investment contests, it’s usually hard to top the U.S. airline industry. The costs are enormous, the revenues shaky, the margins razor-thin and the public generally...

Hope Amid the Airlines' Red Ink

Posted by: Justin Bachman on July 22

Continued hemorraghing of red ink today from airlines. Three big ones, United, US Airways and JetBlue, all swung to losses in the second quarter because of high fuel costs. From...

The Airlines' Convenient Villain

Posted by: Justin Bachman on July 10

In times of economic stress, it’s often useful to find a scapegoat on which to heap the populace's scorn and anger. So it is these days with the U.S....

If We Help Save the Airlines (Again)

Posted by: Justin Bachman on June 26

As crude oil futures cracked $140 per barrel for the first time on June 26, the alarms about a pending catastrophe for U.S. aviation clanged loudly. In testimony before Congress,...

Readers speak: How to save airlines

Posted by: Dean Foust on June 25

I recently challenged the readers of this blog to share their ideas on how to improve the flying experience, and in a way that allows the money-losing airlines to turn...

The Star Alliance Gets Even Bigger

Posted by: Justin Bachman on June 19

Continental Airlines’ departure from the SkyTeam alliance with Delta and Northwest was just a matter of time. The real question was where Continental would land with its future partnership,...

Yep, a New Airline Takes Flight

Posted by: Justin Bachman on June 19

For the airline industry, it’s definitely not what you’d expect these days: A new airline. The British Airways-backed offshoot, Open Skies, had its first flight today from Paris to JFK....

It's Friday, a 13th

Posted by: Justin Bachman on June 12

Fans of Hollywood blockbuster openings and the superstitious among us will note that today is Friday the 13th. It’s the only one of 2008; there were two last year and...

Feeling the Love from United

Posted by: Justin Bachman on June 12

If you still harbor any quaint notions that major airlines consider all their customers VIPs, here’s a funny little factoid to help disabuse you. United, as many predicted, is following...

Bob Crandall: How I'd Save The Industry

Posted by: Dean Foust on June 11

During Bob Crandall’s long tenure as CEO of American Airlines, the airline was truly an innovator--so much so that employees at AA had a certain swagger about them. They knew...

Is This The Future of Flying?

Posted by: Dean Foust on June 11

I wrote a story (with the help of my blog co-conspirator Justin Bachman) for the print edition of BusinessWeek recently predicting what the industry -- and the flying experience...

Delta v. Regional, Part Two?

Posted by: Justin Bachman on June 10

Fresh off a legal setback to regional carrier Mesa, Delta Air Lines is moving to cut ties with Pinnacle Airlines, citing poor on-time arrivals. The company handles 23 flights...

JetBlue's Expansions

Posted by: Justin Bachman on June 09

Two bits of news from JetBlue this morning. First, the company’s LiveTV subsidiary has agreed to buy Verizon’s Airfone network for an undisclosed amount. This is the in-seat handset business...

AMR: Smoothing Over the Bag Fee

Posted by: Justin Bachman on June 05

The public relations response to the new $15 checked bag fee has begun at American Airlines. Check out this AP story from Dallas. American was relatively quiet last month after...

Lose Weight or Pay a Higher Fare

Posted by: Justin Bachman on June 04

It’s a deliciously logical idea: airlines should factor a traveler’s poundage into the fare mix, given that fuel consumption correlates directly to weight. Lug five heavy bags, pay more....

UAL: Farewell 737s, Ted, and 1,600 Others

Posted by: Justin Bachman on June 04

The long-awaited next shoe dropping at United Airlines just fell. The Chicago carrier is shedding 1,600 employees and grounding 100 planes by the end of next year, including its...

The Huge Importance of Hubs

Posted by: Justin Bachman on May 28

The headlines are awash today in reports about the city pairs American Airlines is cutting as it reduces capacity. Boston to San Diego, Chicago to Buenos Aires and Honolulu, JFK...

Yeesh, Calm Down About the Bags

Posted by: Justin Bachman on May 22

The blogoshere erupted quickly after American Airlines went where no one else had dared to tread and imposed a $15 charge to check a bag. No doubt, this represents a...

American’s Desperate Move to Shrink

Posted by: Justin Bachman on May 21

American Airlines is chopping capacity by as much as 12% in the fourth quarter, eliminating at least 80 older planes and trimming jobs in a major bow to the...

Uh Oh: Airlines' Premium Traffic Falls

Posted by: Justin Bachman on May 20

As if oil just a whisper under $130 isn’t enough to make an airline executive cry, another stroke of bad news emerged that is potentially even more worrisome. Premium...

Air Traffic: Off Only 1% This Summer?

Posted by: Justin Bachman on May 13

U.S. airlines are predicting a small dip in the number of passengers this summer, 211.5 million, down from 214.2 million last year. I am not certain I buy this figure,...

Continental Needs to Think Bigger

Posted by: Justin Bachman on May 01

The aviation world is geared up this week about alliance talks Continental is having with American and British Airways. Ostensibly, this would lead to Continental’s departure from the SkyTeam alliance...

Independent in Texas

Posted by: Justin Bachman on April 27

So is M&A perhaps not the path to success in this era of sky-high jet fuel prices? That seems to be what Continental Airlines is saying, deciding that it...

Behind the Delta-NW Mega Loss

Posted by: Justin Bachman on April 23

Delta Air Lines and Northwest made a bit of a financial splash on Apr. 23, reporting a combined loss of $10.5 billion. This red ink wasn’t, however, an operating number....

The Wake-Up Alarm From United

Posted by: Justin Bachman on April 22

When Americans reminisce about the era of flights that often cost less than a baseball game, there may be one day that encapsulates the true end of our great domestic...

United's Quarterly Loss

Posted by: Justin Bachman on April 22

If you still had any doubt about whether Delta-Northwest would be the first and last of the big 2008 merger stories, doubt no more. Here’s the latest from United Airlines...

Southwest's Singular Achievement

Posted by: Justin Bachman on April 17

Even with oil prices raging, Southwest’s remarkable milestone remains intact: 68 quarters of profitability in an industry widely considered the financial equivalent of the Ebola virus. The discount pioneer reported...

Delta's Deal: Is There a Math Problem Here?

Posted by: Justin Bachman on April 15

The early reviews on Delta’s deal for Northwest are rolling in, and investors appear unimpressed. Granted, the transaction was elucidated on the same morning that crude oil futures soared...

New Expectations Needed for Airlines

Posted by: Justin Bachman on April 14

It’s been a remarkable two weeks in the U.S. airline industry. Historic, in fact. On Mar. 31, bankrupt Aloha Airlines stopped flying and dismissed 1,900 employees – the first domino...

ATA, R.I.P

Posted by: Justin Bachman on April 03

ATA Airlines ended service today, scrubbing all flights as of 4 a.m. EDT. The immediate cause of its demise was the loss of a military charter contract, but oil above...

A Chat With a 'Retired' Airline CEO

Posted by: Justin Bachman on March 14

Have you heard the one about the airline executive who retires, only to end up with three new jobs? That would be Don Carty, (left) the former CEO at...

Biofuels Head to Houston

Posted by: Justin Bachman on March 13

Continental is the latest airline to jump into the biofuels tent. The company said today it will fly one of its next-gen 737s next year in a biofuels flight test...

Free flights (no kidding)

Posted by: Dean Foust on March 11

You can fly for free one of two ways: By accruing enough frequent-flier miles, or simply by buying tickets at the right time. And that time is now. With oil...

The Splintering Air Travel Market

Posted by: Justin Bachman on March 10

No, that’s not some hip new nightclub. It’s the redesigned 1-2-1 interior Singapore Airlines will fly on its new, all-business class nonstop flights from Newark and LA. The A340s...

A ‘Climate Change Crime,’ Or… ?

Posted by: Justin Bachman on March 05

American Airlines is the subject of a modest row across the Atlantic, where environmentalists are furious that the company proceeded with a flight from Chicago to London with only five...

Branson's Latest Green Schemes

Posted by: Justin Bachman on March 03

Sir Richard Branson jetted into New York this morning, not-so-fresh from Mumbai, looking enthused but sleep-tortured by all his time-zone traversals. The Virgin Atlantic founder had a news conference...

A Hitch on the Path to Airline Consolidation

Posted by: Justin Bachman on February 26

Merger talks between Delta (DAL) and Northwest (NWA) may have struck a rocky patch. That's the takeaway from a memo sent to Delta employees today by CEO Richard Anderson and...

No Room at the Inn (Airport)

Posted by: Justin Bachman on February 21

One of the central topics in the debate about U.S. airline consolidation has been the role of low-cost discounters. Over the past 15-20 years, the rise of such airlines squeezed...

All This Merger Talk in the Air

Posted by: Justin Bachman on February 08

Delta and Northwest will unveil their grand merger plans next week. Everyone is saying so: analysts, journalists, bloggers, et al. It's certainly plausible that a big airline proposal will be...

Do You Check Bags?

Posted by: Justin Bachman on February 04

United revved up its revenue-generation machine today. The target? Luggage. The company will now charge you an extra $25 to check a second bag. The policy affects all non-refundable domestic...

A Memo to Northwest Pilots

Posted by: Justin Bachman on January 22

It appears the pilot union leadership at Northwest Airlines is following the same tack as their brethren at Delta. Their message: "Get ready for consolidation, and here's what we need...

AMR: You're Not Paying Enough

Posted by: Justin Bachman on January 16

The parent of American Airlines kicked off the domestic airlines' fourth-quarter earnings season today, reporting a quarterly loss of $69 million and a full-year profit of $504 million. Record oil...

Silverjet: Premium players will weather '08

Posted by: Justin Bachman on January 14

The chief of Silverjet, Lawrence Hunt, dropped round the BusinessWeek offices today to say hello, and to chat about the current state of airline affairs. (We'll post a video of...

United's Angry Pilots

Posted by: Justin Bachman on January 07

It has been a truly horrible winter for United, the nation's second-biggest carrier. Snow, fog, and torrential rains have socked its three hubs at Chicago, Denver and San Francisco, causing...

Is the Aussie Duopoly Facing Extinction?

Posted by: Justin Bachman on January 03

Encouraging news today from Down Under. One of the world's most profitable -- and priciest -- air routes, Australia to the U.S., could see new entrants under government talks beginning...

MAXJet, Nov. 2005 - Dec. 2007

Posted by: Justin Bachman on December 26

"Is this the beginning of the end for premium class carriers?" That was the question posed by one of them, Eos Airlines, in a press release on December 24th, the...