Showing posts with label Continental Airlines. Show all posts
Showing posts with label Continental Airlines. Show all posts

Wednesday, June 22, 2011

Can't Get No Satisfaction

It's not exactly a Stop the Presses moment, but a new survey of American consumers shows that U.S. commercial airlines are among the least-liked businesses in the United States. Business travelers, who spend a lot of time in the sky - and often have to pay high walk-up fares to go with added fees that airlines have tacked on to try to make a profit in a time of sky-high jet fuel - are especially disgruntled.

Every year, the American Customer Satisfaction Index records the results of a survey of selected U.S. consumers, and every year the section on air travel makes melancholy reading. Only 65 percent of fliers describe themselves as very satisfied or fairly satisfied.

Southwest Airlines, the perennial leader, ranks highest for the 18th consecutive year. It may not be entirely coincidental that Southwest is the major holdout in not charging fees for checked bags - a pet peeve of passengers. Continental Airlines, which merged with United Airlines - also known as Misery Air among regulars - saw its customer satisfaction score drop 10 points from last year.

Any good news? Yes. Most U.S. travelers are satisfied with U.S. hotels, giving the indstry as a whole a respectable score of 77 points.

Monday, August 9, 2010

Self-Boarding, a Little Late

As is so often the case with travel in the United States these days, U.S. airlines are coming in a day late and a dollar short when it comes to innovation.

The latest example is Continental Airlines' experiment with passenger self-boarding, being trialed at George Bush Intercontinental Airport, in Houston. Basically, this consists of printing out your boarding pass at home, then swiping it at a turnstyle-like device at the airport gate. If it works as intended, you are cleared for boarding; you don't hand the boarding pass to an airline employee to do a swipe. The idea is to speed up the boarding process, according to Continental.

"One gate has been tested, and so far we've been pleased with what we've learned with the experience,'' the New York Times quotes airline spokeswoman Christen David saying. There are still gate agents around if you need them for assistence with anything, she added.

Jeez. One gate. One airport. One airline.

Continental is the first U.S. major to test self-boarding. But self-boarding is not new. I did it with Japan's All Nippon Airways in January 2008 - two and a half years ago - at Tokyo's Haneda airport - this was after booking the flight and getting my seat assignment, all on a handset. To board the plane, one places the handset and flight bar code down on a display panel at the turnstyle, and the turnstyle reads the bar code. It was simple and easy, even for a confirmed technophobe like me.

One gets the feeling that by the time America catches up to this, Japan and other world leaders in travel technology and infrastructure will have moved on to something else. "Beam me up, Scottie,'' perhaps.

At least Continental is trying, unlike some of its peers. Now, all we have to worry about is Continental's planned merger with United Airlines, which may go through by the end of this year. Continental has built a reputation in recent years for good customer service, at least by feeble U.S. standards. United, which used to advertise its service in the Friendly Skies, now has some of the surliest, don't-bother-me customer service there is. It will be interesting to see whose corporate culture prevails after the merger.

If it's United's, watch out.

Friday, May 14, 2010

Bumpy Ride Ahead for Beseiged British Air

Like Gordon Brown after Tony Blair and Tony Blair after he buddied-up with George W. Bush, British Airways can't seem to win for losing. Bounced about by skyrocketing fuel prices, weighed down by security costs and fears, grounded by an enormous, drifting volcanic ash cloud that brings a near-supernatural quality to flying, BA not only faces the travails other airlines do, but also has a tsunami of industrial action - i.e., strikes - to look forward to this spring.

"Bloody hell,'' as the Brits are wont to say.

Unite, a union that represents BA cabin crew, has already led two short but costly walkouts this year over the money-losing airline's attempts to reduce its operating costs and rewrite work rules. Now, it plans to launch four more walkouts: from Tuesday, May 18 to Saturday, May 22; again from May 24-28; and again from May 30 to June 3; and yet again from June 5-9.

Between erupting volcanos and volcanic union leaders, BA executives say the carrier is on-track to lose 1 billion pounds sterling (nearly $1.5 billion USD) in 2010. That would come on top of losing 401 pounds (nearly $600 million USD) last year.

BA says it will fly - albeit at reduced capacity - through the forthcoming walkouts, as it did through the earlier ones. Even so, the labor actions can't help but disrupt and perhaps ruin travel plans for many BA customers who hope to enjoy their Whit Sunday holiday or jet to the World Cup tournament in South Africa. BA says it will operate all flights out of London's Gatwick and City airports. The carrier also claims it will fly about 60 percent of international flights at London Heathrow airport and 50 percent of domestic flights there, using cabin crew who want to work and leasing aircraft from other airlines.

"We are confident that many crew will ignore Unite's pointless strike call and support the efforts of the airline to keep our customers flying,'' BA's CEO, Willie Walsh, said in a statement. Ironically, Walsh, who has taken a tough stand with labor, was the chief pilots' union negotiator early in his career at Aer Lingus, the Ireland carrier.

Stakeholders - workers, executives, investors and travelers - can argue over the particulars of BA's downsizing plans - and the devil, as they say, is always in the details. But it is hard to quibble with the broad strokes or the need. I can say as a frequent BA flier and aviation industry reporter that this historic, high-quality airline could well be in a fight for its survival. It needs to reduce costs, or no airline.

I sympathize with cabin crew members. I was on staff at a daily newspaper - newspapering being perhaps the only industry that is losing altitude more quickly than commercial civil aviation - and I saw my workplace downsized, employee benefits cut and my pension slashed by one-third. I have felt the pain of restructuring, and it really hurts. That said, BA needs to cut costs in this very turbulent environment. Taking down the company won't help anyone.

As a sympathetic but skeptical observer, it looks to me that Unite has embraced kamikaze logic. If it can't get what it wants, it will attack, attack, attack, and damage whatever it can.


I have seen this before, too. I watched over the past decade as employees - led most visibly by cabin crew - at United Airlines turned the once-friendly skies downright frosty when management cut staffing, salaries and benefits during United's long bankruptcy restructuring, and senior management, led by CEO Glenn Tilton and his most golden of parachutes, made millions. That hurt United workers and retirees. Unfortunately, United cabin crew took it out on the easiest targets, United's customers, without which there would be no airline and workers would have no jobs, no benefits, no snazzy uniforms. One has to hope that the planned merger of United and Continental Airlines - which will, if regulators agree, create the world's largest airline - will go forward with Continental's kinder, gentler corporate culture in the lead.

As for beseiged British Airways, may the gods of the sky save BA from destructive unions. And for Unite, may it straighten up and fly right with new, less self-destructive leadership.

Monday, May 3, 2010

United and Continental: What the Merger Means

Now that the will-they/won't-they dance is over, and the straight-up merger of United Airlines and Continental Airlines is agreed in principle, what will it mean? To the airlines? To the unions? To U.S. government regulators? To travelers?

For the companies: They will survive to fly another day, gaining greatly expanded route networks, realizing economies of scale by becoming the world's largest airline by passenger traffic and saving money by running one frequent-flier program, one advertising compaign, one reservations system and so on. As you may have heard by now, the merged company will be called United, will be headquartered in United's hometown of Chicago, fly white Continental-style planes and be run chiefly by Continental's strong top management team. CO, like UAL, has downsized with a vengence in recent years, battered by Sept. 11, volatile fuel prices, SARS and swine-flu fears, security scares and the Great Recession. Getting bigger and stronger will help the new company compete. Barring major delays, the deal could go into effect by the end of 2010.

For workers: a promise of no involuntary layoffs - though it's hard to see how that will hold up when duplicated jobs in the present, separate companies are accounted for. Management may struggle to seamlessly integrate two seniority systems and two pay scales. Unions are keeping a wary eye out for layoffs or frozen pensions and pressure to provide additional contract concessions.

For government regulators: The Obama administration promises to be more gimlet-eyed on antitrust matters than the Bush administration was when it quickly approved the 2008 merger of Delta Air Lines and Northwest Airlines. Still, CO and UAL complement each other. Continental is eentrenched in its hubs in Newark and Houston, in Latin America and across the Atlantic to Europe. United is strong on Asia-Pacific routes and at its hubs in New York, Los Angeles, Chicago and San Francisco. They don't duplicate each other a great deal, and they promise no loss of service. We'll see, but that could encourage regulators to give the merger a green-light.

Most important of all, what does a new world's largest carrier mean for air travelers, both in the United States - home of these two carriers - and internationally?

For travelers, the merger could accelerate a trend toward higher fares that has already begun, albeit quietly and gradually. Passenger demand has been strong since late last year; that's having an upward effect on fares. That will continue, though fares may not go significantly higher in the short-term. 2011 could be another story, but aggressive low-fare carriers like Southwest and JetBlue should keep fares from shooting sky-high, especially in competitive major markets.

Elsewhere, cost-reductions and the diversification of annoying (for travelers) but profitable (for airlines) fees for things like in-flight meals, extra leg room and checked bags are putting pricing power back in the hands of airlines. This increases the overall cost of flying or consumers. There will be some consumer-friendly synergies, too, however, such as shared frequent-flier plans and shared access to airport lounges. Some of this, too, is already happening with CO and UAL, who are partners in Star Alliance, where they cooperate on marketing, scheduling and code-shares.

In short, nothing too startling is likely to happen following the merger of these two airlines - except possibly to push other carriers into mergers, too. American? Do you read me? US Airways, are you listening? The U.S. Big Six legacy carriers are giving way to the U.S. Big Four, and a U.S. Big Three may not be too far off. Most airline executives and aviation pundits think that's a good thing in a typically money-losing industry that has too many seats chasing too few customers. At the very least, airline mergers should help the bottom line for the survivors - and it shouldn't cause any great hurt for travelers.

Monday, January 11, 2010

Like a Virgin

They play hardball in the travel biz. Ask anyone at Virgin America, a San Francisco-based, low-fare, high-style airline that launched commercial passenger service more than two years ago - and hasn't stopped fending off legal challenges ever since.

I don't know if Virgin America - which licenses its name from minority owner Richard Branson's UK-based Virgin Group - ever truly expected a smooth ride, but if so, I imagine the carrier has lost its innocence by now.

First, the fledgling airline's application to the U.S. Department of Transportation to begin service was held up when several mainline U.S. competitors, led by Continental Airlines, charged it wasn't in compliance with U.S. laws that restrict foreign ownership of any U.S. airline to a minority share. The application was approved, but only after the airline jettisoned its founding CEO, Fred Reid, who the DOT thought was too close to Branson. Branson tapped Reid, a former Delta and Lufthansa executive, to get Virgin America off the ground. Virgin America's first flight finally took off in August 2007.

Then, in early 2009, the Alaska Air Group Inc., which operates Alaska Airlines, similarly charged that Virgin America was not U.S.-owned and controlled. After renewed deliberation, DOT ruled last week that it is, while prompting several changes in the stakes of investors and the appointment of the airline's current CEO, former American Airlines executive David Cush, to the board of directors. This expands the board to nine members from eight, with seven of the directors being U.S. citizens.

As if all that wasn't enough, U.S. aviation legend Chuck Yeager, the former aircraft-test pilot - a main figure in Tom Wolfe's book "The Right Stuff'' and the 1980s movie adaptation of the same title - has sued Virgin America. Yeager claims the airline used his name "maliciously, oppressively and fraudulently,'' in promotional material, according to Andrew S. Ross's The Bottom Line column in the Jan. 8 business section of the San Francisco Chronicle. Virgin America, according to the Chronicle, praised Yeager in passing in an e-mail sent to its frequent fliers to ballyhoo on-board Wi-Fi, which it has pioneered among U.S. airlines.

"Not unlike Buzz Aldrin or Chuck Yeager, you have the opportunity to be part of a monumental moment in air travel,'' the e-mail reads, as quoted in Ross's reporting. Yeager says the airline didn't ask permission to use his name, and is asking for "the revenue and profits'' derived from its use, as well as "exemplary and punitive charges.'' The Chronicle's headline on the column: "Yeager's Suit - the Wrong Stuff.''

Jeesh.

Virgin America might prefer the exposure it will be getting on a new reality TV show, "Fly Girls,'' premiering on the CW network. "Fly Girls'' follows five young, not-average-looking female flight attendants who fly a lot and party a lot. The FAs work for Virgin America. That should be a boost to brand awareness.

As for Branson and foreign ownership, I can only say this: Most countries, convulsed by national security fears and worried about potential job losses, limit foreign ownership and control of their airlines. But, why? Business is global now, and the airline business is the main mode of transport for global commerce, especially travel and tourism. As much as any industry, civil aviation makes business more international than it's ever been. (I'll revisit this subject, and argue that such ownership rules are outdated and mercantilist, in another post.)

The British? Speaking as an American, I daresay the Brits haven't harmed the United States since they burned the White House during the War of 1812. You'd think we'd be over it by now. They're mainly a good lot. Of course, the British did give us Slade, Princess Di and Madonna faking a lady-of-the-manor English accent, so maybe it's OK to fear them after all. Probably not in aviation, though.

Virgin America, which flies to 10 U.S. cities and has ambitions to fly to 50, deserves a break. It's a good airline, a leader in in-flight technology, and a spur to much-needed competition in the U.S. domestic market. Allowing the airline to operate on that level playing field that everyone keeps nattering on about wouldn't be such bad thing.

Wednesday, December 2, 2009

Award-winning Airlines, Zagat Department

There are but a handful of more over-used words in the English language than "award-winning.'' I'm award-winning, you're award-winning, we're all award-winning. Still, there is undeniably a feel-good factor in winning an award, and some awards do mean something: The Nobel Prize, the Man Booker Prize, the Pulitzer Prize, a MacArthur 'genius' grant, and some others.

In the travel and entertainment fields, the Zagat Awards mean something - along with awards from Conde Nast Traveler, Travel and Leisure, Global Traveler and a few others. Starting out by publishing grassrootsy dining guides written by ordinary people, Zagat in effect anticipated the user-written reviews now found everywhere on the Net. In the meantime, Zagat has grown into something of a media empire - an empire that gives out awards, of course.

All of which brings us to Zagat's 2009 Airline Survey of passengers and travel agents. The results were recently announced, and the winner is - the envelope, please - Singapore Airlines, which won for best international carrier, as well as for best premium class and best economy class. No surprise; Singapore wins a lot of awards, partly because the airline is indeed very good and partly because it carries a halo effect and voters automatically think of Singapore.

Cathay Pacific Airways and Emirates Airways tied for second in premium class, with Emirates also winning second for its economy class service. Virgin Atlantic Airways and Air New Zealand deadlocked for third in premium class, with All Nippon Airways, Air New Zealand and Thai Airways bunching up at third for economy class.

"The 2009 Airline Survey ... covered 73 international airlines and 16 domestic U.S. carriers, rating premium and economy classes on a 30-point scale, covering factors such as comfort, food, in-flight entertainment and luggage polices,'' Zagat said in a statement.

The top U.S. carrier? Continental Airlines, though it scored only 15 points on the 30-point scale. I recently flew from London to New York with Continental. I liked the airline, but its relatively anemic Zagat score shows - accurately, I think, due to aging fleets and flawed customer service - just how far even the best U.S. carriers have fallen compared to the world's best.

In a statement announcing the airline awards, Tim Zagat, CEO of Zagat Survey, sought to explain the low scores of Continental - and lower scores by other U.S. carriers - thusly:

"The newer airlines continue to do well in the survey. Being less expensive to operate, they can therefore afford to provide better service.''

With all due respect to Tim Zagat and his company's accomplishments, I don't think so.

Being new isn't the reason for success - as shown by the overall winner. Singapore Airlines traces its roots to 1947. It became known by its present name in 1972, when it hived off from Malaysian Airlines. The carrier is nearly 40 years old by the most conservative estimate.

Cathay Pacific? Founded in 1946. ANA? Almost as old. Virgin Atlantic? It's been flying since the 1980s. Air New Zealand is not new, nor is Thai. The only young carrier in the winners' circle is Emirates, and Emirates is unusual because it is owned and subsidized by the government of Dubai and fueled by petrodollars - hardly a common business model.

No, the reason some airlines please customers much more than other airlines do has little to do with age. It's because they want to please customers. They make customer service a priority and they work at it. Having adequate funding always helps, to be sure, but staff training, staff attitudes and management priorities shape airlines - and every other business.

That's the secret of success in the travel field - and it's an open secret.

Monday, November 23, 2009

Saturday Night and Sunday Morning

NEW YORK - Getting to New York was the hard part. Not in the air, where Continental Airlines did a fine job bringing me to the USA from London - on the ground, where cab fare, Lincoln Tunnel toll and tip for the ride from Newark Liberty International Airport set me back $90.

After that, things could only get better. And they did, with gratifying speed. After checking in to the grandly restored Hotel Pierre, on Fifth Avenue, across from the southeast corner of Central Park, I set off on foot to have a look around town. It was Saturday night, Thanksgiving was nearly at hand, Christmas was not far off, and Manhattan positively glistened. Night had fallen, but it wasn't cold - maybe 50 degrees F, and dry. The sidewalks were alive with people.

Fifth Avenue was electric, figuratively and literally. Lights and decorations everywhere. The Cartier store wrapped in an electronic "ribbon'' for the shopping and gift-giving season, and every shop illuminated inside and out. I people-watched and walked. At Rockefeller Center, I strolled off the avenue and stopped by the ice-skating rink, which went in Nov. 18. The icy surface was ready to receive skaters but literally no one was skating - only crowding round the outside of the rink, as though expecting something exciting to happen any minute. Maybe Michael Bloomberg and Donald Trump were making themselves ready to come out on skates, or maybe Nancy Kerrigan and Tanya Harding were set to re-enact their 1990s battle as part of a fond reunion tour, I dunno. The place looked great but nothing was happening just then. I soaked up the mood for a New York minute and moved on.

I passed a long line outside Radio City Music Hall, and pushed on to Times Square. It was absolutely jammed, with tourists sitting at the cafe-style tables that the city put out in blocked-off portions of the famous intersection this past summer. What's a little frosty November weather? The tables and chairs are still there, and still occupied. Huge outdoor video screens and neon advertisements throbbed and looked ready to explode. The city seems to have amped-up and at least trebled the available wattage from five years ago. You could read a newspaper by the overhead lights, if people still read newspapers.

Sunday morning, I had a lovely breakfast at Le Caprice, at the Pierre, and then went for a walk in Central Park. It was a sunny, crisp, breezy morning. The sky was a clear blue of the type seen best in Fall on the U.S. East Coast. It was about 9:30 a.m. The horse-drawn carriages were fully booked and making their aromatic way through the park. Joggers were jogging, dog-walkers led pooches around. Chestnuts were roasting on grills and buskers were already busily busking. It was a delightful way to start the day.

When it was time to head out to JFK airport for the last leg of my round-the-world trip - home to California - I returned for a thankfully brief time to Taxi Purgatory. This time, fare and tip were a measly $60. I, having been overseas for a month, was short of cash and wanted to pay with a credit card. When we got to the airport, the cabbie mournfully informed me that it was to be cash-only; his credit-card machine was "broken.'' I informed him it is illegal to operate a yellow cab in New York without a working card-reading machine. He shruggged. In New York, as elsewhere around the planet, the taxi-driving tribe continues to wage its long-running war on the world's travelers. There are two sterling exceptions: The polite, scrupulously honest, white-glove-wearing cabbies of Tokyo, and the super-informed, witty drivers of London black cabs.

I was on the curb outside the terminal. "Home, Jeeves,'' I wanted to say. But of course this was to be an airplane journey, and Jeeves doesn't fly. I strolled, wheelie and briefcase in hand, into JFK terminal 7, sailed through security and headed to United Airlines' Red Carpet Club, boarding pass in hand.

Sunday, November 22, 2009

Across the Atlantic with Continental Airlines

NEW YORK - I crossed the Atlantic Ocean yesterday - restfully, uneventfully, right on time - on board Continental Airlines, the newest member of the Star Alliance group of carriers.

Continental's late-October shift to Star is so recent, it has yet to fully play out. When I arrived at London Heathrow airport's terminal 4 for my flight to New York, I was directed to a lounge run by SkyTeam, the alliance Continental left so it could join Star. I imagine full integration into Star Alliance is proceeding apace and that this lounge arrangement will soon cease. Indeed, airline locations at Heathrow are changing quickly as it is. After Heathrow terminal 5 went into operation in March 2008, the multitudes lightened up at terminal 4, which, like much of Heathrow, is undergoing extensive renovation for the 2012 London Summer Olympics.

We flew west with the sun, passing over the symmetrical walls of Windsor Castle. Minutes later, clouds shrouded the Irish Sea, not clearing until just before we landed at Newark Liberty International Airport. During the 7 and a half hour flight, Continental flight 111 hummed right along. The U.S.-national staff was friendly, funny and off-hand in the way that Americans typically are. When a young mother and her 2-year-old daughter sat down next to me, attentive flight attendants promptly moved me to another seat, so I could have a comfortable flight. I hoped, too, to give the mother a seat of her own, so she would not have to hold her little girl throughout the trans-oceanic flight. Late in the journey, I noticed a bleary-eyed Continental pilot on break occupying the seat I had vacated. The long-haul flight included two meals. The wines were not identified on the business class menu, but when I ordered beef, a flight attendant poured a decent French red to accompany the meal.

Like other major U.S. carriers, Continental has lost millions in recent years, buffeted by an economic storm of volatile fuel costs, deep recession, flu fears and security costs. Continental does a good job in straited circumstances; indeed, it is often cited by aviation pundits as the most highly regarded U.S. legacy carrier. It is widely regarded as the U.S. airline most competitive with global leaders - some of which have not been hit as hard as airlines in the United States during the current crisis. In this case, SkyTeam's loss is Star Alliance's gain.

Tuesday, October 27, 2009

Booking a Round the World Trip with Star Alliance

As mentioned in my most recent post, I am traveling on an around the world trip on board eight Star Alliance member airlines. I booked the journey at http://www.staralliance.com/ the Web site of this global airline alliance - the largest of the world's three airline alliances, with more than 20 members and counting. As I write, the U.S. carrier Continental Airlines is formally becoming the alliance's latest member.

You can book a RTW trip through individual airlines and travel agents, to be sure. But if you are comfortable on the Internet, the entire process can now be done online, a change that Star Alliance effected in July.

My advice to travelers wishing to do this is to, first and foremost, have a reasonably clear idea where you want to go before signing on. This will speed up the process considerably, as there are pivotal decisions to be made, and you want to keep moving forward. I knew where I wanted to go. I booked the trip, down to dotting the I's and crossing the T's, in just under two hours. Net-smart people can probably do it faster. I am a refugee from the Age of Steam, you see.

So, sign on to Staralliance.com and click on 'Book and Fly' on the lower right of the home page, then click on 'start now,' which brings up the next page.

Here, you can access links to FAQ in boxed text on the right side of the page. When you've done that, click on 'book a RTW journey' and wait for a short time for the next page to load.

That brings up the third page, where you enter 'traveler details' - chiefly, your country of residence - which will eventually give you a fare estimate in your country's currency - and the cabin class you want to travel in. When you've done that, hit 'next' in the lower right.

By now, you'll have the hang of it. All things considered, it's pretty transparent and straightforward.

On the fourth page, you start to build an itinerary. You'll be seeing some cool maps that show major hubs and other destinations that Star Alliance members serve - an impressively large number - and the regions shown will change as your flight plan advances. Once you've entered your city of original departure in the box provided, you start adding additional places that will take you around the world and back to your original city. Note that you can have up to 16 segments and 15 stopovers. You have a year to use whatever ticket you end up booking.

Once you plug-in the sequence of cities and dates, you'll be presented with rosters of flights operated by relevant Star carriers. Some of the flights are code-shares. As you might expect, popular places served by many carriers give you lots of choices, and lesser-known and less-served destinations offer fewer choices, maybe just one, though that's rare. I try whenever possible not to change planes, but of course, getting nonstop flights is harder and they are not always available. On some flights, you may be told you have to upgrade or downgrade from your preferred class - and again this is most likely to happen with popular destinations - your Romes, your Londons, your New Yorks. Booking far ahead helps, though there's no guarantee, as some cities don't seem to have an off-season.

Once you've gone through the construction process, you can review your itinerary before finalizing it. My wife and I built imaginary wishlist itineraries, so we could test-drive the system. We both clicked on business class. Once or twice, when my wife wanted to omit a choice, she was sent back to the beginning of the process. This didn't happen to me, though I am the more tech-challenged of the two of us. If you decide to book, you'll be asked your personal details, make your payment with a credit card, and then you will get a confirmation.

On our RTW scenarios, we received estimated pre-booking fares of around $10,000 (hers, for a proposed 29,000-mile journey) and $12,000 (mine, for a 34,000-mile trip), though the site notes that these are best-guess figures. This is cheap for journeys of this magnitude and complexity. Note that you do have to be as flexible as possible about travel dates and cabin classes to get the very best deals. Individual member airlines decide how many designated RTW seats to provide, and on which flights and which dates.

Prior to this past summer, Star allowed prospective travelers to build an itinerary online but Staralliance.com wasn't set up to actually book the trips and handle payments. Now that it is possible, there is an addditional useful tool on hand for setting up ambitious and exciting airborne global journeys.

1

Monday, September 7, 2009

More Fall Travel Deals and Discounts on Offer

The travel deals that have characterized most of 2009 are rolling right along, heading deep into the fall, as industry vendors continue to try to pump up business during the recession - and this traditionally slow time of year.

Here's a line on some interesting deals that have filled my inbox in recent days. As always, be detail-oriented and check the terms with providers if you consider booking.

*American Airlines is offering double elite-qualifying miles for various levels of its AAdvantage frequent-flyer program for travel on American through Dec. 15 (www.aa.com/elitestatus). Book with the promotion code DBLEQ.

* United Airlines, Virgin America and others are offering discounted fares to and from the San Francisco Bay Area for fall and winter travel. Deals center on San Francisco International Airport and Oakland International Airport, as reported by the travel bargain Web site TravelZoo.com. Sample fares - one-way, based on round-trip purchases, before taxes and fees - include San Francisco-Las Vegas from $49 and Oakland-Boston from $109. For more information, go to www.virginamerica.com, www.united.com or www.travelzoo.com/Newsflash).

* Speaking of airfare sales, Continental Airlines has a good business-class fare from its U.S. hubs in Newark, Cleveland and Houston to prime locales in Europe (www.continental.com). The catch: Deals are for travel during the U.S. Thanksgiving and Christmas holidays. Prices are as low as $1,130 roundtrip and nonstop from Newark to Europe from Nov. 21-Nov. 27, and back to Newark from Nov. 26-Dec. 4. Slightly higher but still good fares obtain on the same routes for those willing to fly over the Christmas holiday.

* The designer boutique hotel Opposite House, in Beijing (www.oppositehouse.com), is offering a third night free for guests who book two previous consecutive nights. Rates start at $337 U.S.
Offer is good through Dec. 31, and includes add-ons such as breakfast for two on weekends and a guided cultural walk around Beijing on Saturdays.

* Another American Airlines promotion: Selected destinations in the Caribbean, Mexico, the Bahamas and Bermuda are on sale through Sept. 15, good for travel to and from the United States till Nov. 19. There are no advance purchase requirements and no embargo dates. The terms include a minimum 2-day and maximum 30-day stay. Sample fares - one-way based on round-trip purchase, before taxes and fees: Washington, D.C.-Kingston, Jamaica, $95; Chicago-Montego Bay, Jamaica, $100. (www.aa.com).

* Some 75 California winemakers, hotels and restaurants are rolling out special deals throughout September, dubbed California Wine Month in the Golden State. Deals encompass the prime winemaking regions in northern California's Napa and Sonoma valleys and southern California's productive Paso Robles area (www.visitcalifornia.com).

Here's wishing you a fabulous fall.

Footnotes:

I'll be departing late tonight to Asia, to experience and write about "voluntourism'' - the giving-back by travelers to communities in need.

I'll also be blogging frequently about the high points of some great Asian destinations. You'll be hearing more about the latest happenings in Beijing, Shanghai, Hong Kong and Bangkok, among others, as well as impressions of my airline journeys (I'm booked on Cathay Pacific Airways and Dragonair) and no fewer than six Shangri-la hotels and resorts in east Asia.

Tuesday, August 11, 2009

Passengers' Bill of Rights: An Idea Whose Time Has Come?

How would you like to be kept pent-up in a commercial jetliner for, say, six, eight, even 12 hours, along with crying babies, overflowing toilets, no food, little water and a general feeling of frustration and claustrophia?

Thought so. Me neither. And yet, thousands of airline passengers have had just that experience - due to mechancial difficulites with planes, bad weather, very long back-up queues for take-off and so on - at airports across the United States in recent years.

Is this the year an airline passengers' bill of rights - hanging in the air, lo, this past decade or so, as an idea - comes into being? There's no way to know for sure, but continuing and well-publicized incidents like the all-night stranding on a Minnesota tarmac of a cramped regional jet operated under Continental Airlines increases the possibility that a passengers' bill of rights is an idea whose time has come.

The key provision of pending federal legislation in the House (HR 624) and Senate (S.213)
is a rule that would allow passengers held on a stationary jetliner for more than three hours to leave the plane - apparently by moveable stairs rolled out on the airport tarmac - provided the captain thinks it is safe and the plane isn't slated for take-off within the next 30 minutes.

Similar bills have been proposed before, only to die in Congress, as leading U.S. carriers said they could lessen the number of such incidents on their own. To allow intrusive federal law, they said, would hamstring airline operations and perhaps even result in more delays. Individual airlines and the industry group the Air Transport Association (www.airlines.org) are firmly against it.

Even large stakeholders in the U.S. air transporation system, such as the Business Travel Coalition, which represents major corporate travel planners, are uncertain whether a 'bill of rights' would be a good thing or a bad thing. Today, Kevin Mitchell, the respected head of the BTC, put out a call to members and industry experts for ideas about should be done.

On the other side are passengers' advocates such as the Coalition for an Airline Passengers' Bill of Rights (www.flyers rights.org), many of whose members have been kept stranded, and steaming, for hours, on the tarmac - or who have other complaints against the airlines.

Me, I dunno. I have some sympathy for the airlines, as they have to work in close concert with busy airports, they've taken a lot of shots lately from the global recession, swine flu fears and volatile fuel prices. Working with the public isn't always a piece of cake, either. But the public is the only reason airlines are in business, and when the inevitable uptick in air travel returns someday, more-congested airports could only make this hard-to-take situation worse.

In the meantime, maybe taking the time-honored path of letting your Senator or Congressperson know what you think - politely, constructively, not like the shoutfest town meetings Americans are seeing on the critical issue of health reform - is a way to move forward.

Sunday, July 26, 2009

Green Shoots of Recovery?

After housing and automobile manufacturing, travel has been hit about as hard as any industry in America by the Great Recession. Airlines in particular are hurting, hammered by weak consumer demand, volatile oil prices and fears of a surge of swine flu come fall.

The most recent financial results, taken from the second quarter of 2009, show what might be - in the current phrase - the green shoots of recovery. That is to say some airlines actually made money in the generally dismal second quarter; not many, and they didn't make much, but any profit is cause for cautious optimism at this point.

Two of the six U.S. majors made money: US Airways, with a modest $58 million profit, and discount leader Southwest Airlines, with just a nudge more: $59 million. There were also money-makers among the smaller U.S. carriers: Alaska Airlines made $29.1 million, JetBlue Airways recorded a profit of $76 million and AirTran eked out a $78.4 million profit.

True, these gains were more than outweighed by losses at four of the six U.S. majors: Minus $213 million at Continental Airways, $257 million in losses at Delta Air Lines, a whopping $323 million shortfall at chronically ill United Airlines and an even more whopping $390 million loss at American Airlines, which announced nearly simultaneously that it will raise fees for checking bags for most economy class fliers on domestic routes.

Starting Aug. 14, travelers on American will pay $20 for the first checked bag, up from $15, and $30 for their second checked bag, up from $25. First-class, business-class, full-fare economy and frequent flier club members won't be charged. This fee rise is no coincidence, as loss-making airlines are finding adds-ons like these to be reliable revenue streams at a time when carriers can't raise fares as much as they'd like to for fear of further alienating customers.

What to make of this decidedly mixed-bag of financial results? Just this: Airlines have a long way to go to return to solid profits, but a start, however tentative, has been made. Air travelers have got to hope a recovery sets in and quickly accelerates, so airlines have money to restore slashed frequencies and routes, buy new aircraft and go back to bigger planes. Until they do, fewer, more crowded planes, fewer non-stop flights and ever-tinier aircraft with worrisome safety records will continue to be the new normal, with all the discomfort that implies for travelers.

Sunday, July 12, 2009

Continental Drift

So, Continental Airlines this week won limited antitrust immunity from the U.S. Department of Transportation so it can it can launch a trans-Atlantic marketing and code share operation with three members of the Star Alliance: United Airlines, Air Canada and US Airways.

If the hook-up works as it's supposed to, consumers could benefit from coordinated schedules and access to partner airlines' airport lounges. Fares could fall, too, provided the deal helps the airlines reduce their operating costs - and crucially, that the cash-strapped carriers pass on some of those savings to consumers. Will they? I'd say definitely maybe.

Continental, which is withdrawing from the SkyTeam alliance led by Air France and Delta/Northwest, will join the Star Alliance on Oct. 25. That will allow Houston-based Continental to cooperate more broadly with the 20-plus Star members, in addition to the deal it has cut with the three aforementioned North American members of Star.

Star and SkyTeam are two of the three global airline alliances that have sprung up over the past 15 years; oneworld, led by American Airlines and British Airways, is the third big alliance.

Why should you care? Isn't this just inside-baseball, airline style?

No. These arrangments - which allow airlines to coordinate schedules, allow passengers to earn reward points on partner airlines and share airport lounges - can benefit travelers by making travel more truly global and eliminating inconveniences, like the need to change terminals when pressed for time to make a connecting flight. Oneworld members have moved from four terminals at London's Heathrow aiport, for example, into just two, while Star carriers have moved under one roof to share single terminals - check-in, lounges and gates - at Tokyo Narita and Beijing Capital airports. This is a real convenience for air travelers.

The three major airline alliances are actually substitutes for outright mergers. Airlines have wanted to merge into fewer but stronger carriers for years. But issues of antitrust, national security and national pride have kept most mergers from happening, especially cross-border actions. A few recent exceptions: Air France/KLM and Lufthansa/Swiss.

Objections to mergers are to some extent red herrings. Governments can commandeer aircraft in time of war, and while having a high-profile national flag carrier was heady stuff in the pioneering days of civil aviation just before and just after World War II, major airlines girdle the globe now and their branded aircraft are common sights on the runways of the world.

Antitrust issues are another story. When the USDOT gave the go-ahead for a trans-Atlantic deal to Continental and its partners, it made certain to scrutinize fares on certain routes where the carriers overlap. The department also stipulated that member airlines must report on their alliance activities every year to government regulators.

As it stands, alliances are halfway measures, but they do some good things. The outmoded rules limiting foreign ownership of airlines - only up to 25 percent in the U.S., for example - should be scrapped; they are outmoded in today's globalized world. In the meantime, consumers can benefit from the increased flexibility that global alliances give to airlines. Simply put, parliaments and regulators should take the protectionist blinders off and allow airlines to operate like other modern businesses.