American finds $2.9 billion: more routes added

It’s hard to see how the machinations of Wall Street affect the end consumer, sometimes. In the case of American Airlines and its recent pickup of $2.9 billion, you can draw a straight line from the money to the exit row.

The hefty infusion, a risky move because revenues are down and this is not a trivial amount of debt, has already prompted announcements of schedule changes … for the better. American is planning to increase flying in New York, Chicago, Los Angeles, Dallas-Fort Worth and Miami, though there will be fewer flights in Raleigh/Durham and St. Louis. Look for 57 new daily flights at O’Hare, six more from JFK, two in Los Angeles and anther 19 in Dallas-Fort Worth.

The news comes at a time when most airlines are cutting back service as a way to control costs due to reductions in passenger traffic.

Since we’ve seen what fewer flights can mean – more crowded flights, less legroom and higher odds of getting stuck in a middle seat – the financial breathing room that American has gained could actually give you more actual breathing room the next time you fly. If American fill these extra seats (at the expense of your throwing up the armrest and claiming two), it will generate more revenue, which could turn into real growth. Maybe some of that cash will be used to bring back some amenities.

Blankets, anyone?

Virgin America and V Australia “Get Stripped”


The Sunset Strip Music Festival heated up last Friday, September 11, when Virgin America and V Australia teamed up to hold the festival’s official party “Get Stripped” and raise money for the Los Angeles Firemen’s Relief Association’s Widows, Orphans and Disabled Firemen’s Fund.

They raffled off roundtrip flights on Virgin America and V Australia (complete with a hotel stay down under), which were won by the lucky Brooke George (see gallery). Celeb sightings included the Donnas, above — who played the first ever concert inside LAX for Virgin America’s Seattle-to-LAX launch back in April 2008 — Australian singer Ry Cuming, and Chris Cornell, as well as Kristin Bauer from “True Blood.”

For photos of the event (and yes, the celebrities), check out the gallery below! And if you live in LA, we hope you went to the SSMF, because it rocked all over the strip, from The Roxy Theater, House of Blues, The Cat Club, and Whiskey A-Go-Go to the legendary Viper Room.

So that’s what all the traffic was.
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Drunk Guinness brewing dynasty allegedly strips in flight, lets passenger grab her breasts

If you ever need an example of how too much booze in the air can backfire, then check out this story involving Clare Irby, one of the members of the Guinness brewing dynasty.

Ms. Irby was flying Kingfisher Air from Bangalore back to London when her overindulgence in airline booze led her to start stripping, show her g-string to fellow passengers, and allow a seat mate to grab her breasts.

Oh, and she let this all happen while her 2 year old son was crying in the seat next to her. Reports from the flight crew also claim she was swearing, slept while her son jumped up and down on his seat and put her hand on a flight attendants face while yelling at her. She was also overheard saying “all the opium had made her really relaxed”.

And to make the story even juicier, the passenger who was grabbing her breasts was traveling with his girlfriend. It’s like something that usually starts with “Dear Penthouse”.

Of course, all stories have two sides, and Ms. Irby claims this is all one big misunderstanding and that she only had a couple of glasses of wine, making her slightly tipsy. She also denies taking any drugs, or allowing anyone to grab her breasts. She does admit to talking loudly to her son, but only because he apparently doesn’t respond to whispers.

A London court will now decide whether to go ahead and press charges. Usually in cases like this, the reports from the flight crew are taken quite seriously, but someone with her background and cash may be able to get off with not much more than a warning.

More stories of booze gone bad in the skies

American Airlines employees busted for drug-smuggling

22 people were arrested Tuesday amidst allegations of smuggling drugs from Puerto Rico into the US on American Airlines planes. Nine of the people arrested were employees of the airline, who allegedly sent over 9,000 kilograms – almost 20,000 pounds – of cocaine to US destinations that included Miami, Orlando and New Jersey. According to the US Justice Department, the ring has been operating since 1999.

The workers are a mix of ground crew and baggage handlers who are suspected of using suitcases to smuggle the drugs onto the planes. According to the AP release, Puerto Rico is a popular entry choice for drug traffickers, as once the drugs reach the island, they don’t have to pass through customs in the US.

Agents from the FBI and DEA arrested the suspects at locations in Miami and Puerto Rico in a joint effort cleverly named “Operation Heavy Cargo”. If convicted, the suspects face life in prison and fines up to $4 million.

American Airlines issued a statement saying, “As a company, we hope that the actions of a few employees don’t reflect negatively on the tens of thousands of ethical American Airlines employees who work hard to serve the public daily.”

Relationship with JAL: Delta or American?

Fliers in the United States may get more options when traveling to Japan, but it’s unsure which airline will be the one to deliver. Both Delta and American are said to be in talks with Japan Airlines, and the winner is likely to have greater access to the largest travel market in Asia. Delta’s deal is reported to be worth several hundred million dollars, while the American Airlines offer is said to be in excess of $1 billion.

For travelers, the result will be more choices when traveling to Japan. In addition to route sharing, frequent flier programs will show the impact of the relationship that either Delta or American will win … assuming they can get past the regulators. For Delta, the main problem will be that the largest airline in the United States will have a significant relationship with the largest airline in Japan, raising issues about competition.

It’s still early in the game, and the talks aren’t even being revealed by the airlines themselves. A tough financial year for the airline industry is likely to be a factor in any final deal, as well. There are a lot of moving parts, and it will take time to show which ones will eventually fit together.