Airlines can breathe again – bottom of their recession may be in sight

There is no doubt that 2009 is a year that most airlines will want to put behind them as fast as they can.

In essence, it was the perfect storm combining everything that airlines hate.

A report published back in May told the doom and gloom story about airline profits – and that not a single airline in the world would earn anything this year.

As the first very small signs of economic recovery begin to show, airlines are starting to be a tad more optimistic, and are even projecting a growth in passenger traffic for 2010. In 2009, traffic was down 2%, but 2010 could bring a 4.9% rise, which is obviously just what the airlines need to stay alive.

Total losses between all the world’s airlines is $9 billion, which really doesn’t seem like that much in this new economy. Still, it’ll be at least 6 months till the airlines will know whether the worst really is over, especially as the busy summer travel months come to an end and passenger numbers drop. The real indicators will be business travel and freight – neither of which have recovered yet.

Once everything returns back to normal, we’ll emerge battered and bruised with lower airfares, higher (and newer) fees, a couple less airlines and some airlines that have removed premium seats. None of the major carriers vanished, but most of them did cut their workforce substantially.

Galley Gossip: Seattle – it’s all about kids, trains and food!

THE TRIP:

  • DAY 1: New York – Seattle
  • DAY 2: /
  • DAY 3: Seattle – New York
  • As soon as I saw that long Seattle layover on the bid sheet, I knew I had to have it. I can’t even remember the last time I had a whole day anywhere, let alone a layover with enough time to eat, sleep AND shower! This layover, I knew, would be like the good old days when flying was fun, which is why, I’m sure, several of my colleagues laughed when I told them I had bid for it.

    “You’re going to need at least twenty years seniority to hold that!” three different flight attendants informed me.

    Undeterred, and with only fourteen years at the airline, I bid for it anyway. Not only did I hold it, I held the princess position – coach aisle! As soon as bids were finalized I sent out a tweet to announce the big news. Two seconds later someone tweeted back, “Want to meet for breakfast?”

    The invitation came from mommy blogger extraordinaire, Debbie, of Deliciousbaby.com. If you have kids and love to travel, but would rather skip the Disney vacation, do yourself a favor and check out her blog. She makes traveling with kids enjoyable and easy.

    And that’s how the layover began. I met Debbie, as well as two of her three adorable kids, for breakfast at Belle Epicurean, a charming spot known for their freshly baked pastries and buns. As I sat outside waiting for Debbie to arrive, I couldn’t help but notice all the people popping in and out before heading off to work. Not that I was surprised, considering I’d done a little research early that morning and knew the place was going to be great. I also knew exactly what to order – a potato rosemary brioche bun ($3.89). It did not disappoint. Of course the coffee was fantastic, as well. The company, even better!

    Everest, a bright four year-old, has a passion for trains, so he could not hide his excitement when I asked about his favorite thing to do in Seattle. If not for him, I wouldn’t have known about the ride on the rail to Sea-Tac airport starting in December. After Everest told me all about the underground train system, he offered to take me on a little tour…

    After the train tour, we made a quick stop at Daiso, a Japanese dollar store, where I could have spent the entire day just staring at everything inside the store. There was so much to look at! Thank goodness Everest was there to help pick out a few items for my three year-old son, because I was quite overwhelmed. And I had no idea that mini soy sauce bottles could make a good toy. But Everest assured me they would. Guess what, he was right! My son not only loved the tiny squirt bottles, he spent half an hour playing with them – along with everything else that somehow, I don’t know how, ended up in my basket….

  • Bento box (for school lunches)
  • Glow in the dark bracelets
  • Animal / number stickers (for our long flight to Hawaii next week)
  • Kids apron (to protect clothing while cooking and painting)
  • Fire truck spoon and police car fork
  • plastic cups (to make Play-Doh cupcakes)
  • Star cutter (to make pancakes and eggs a little more exciting)
  • Because Everest had to get going to space camp later on in the afternoon, we said our goodbyes and I walked down to Pikes Place Market. You can not visit Seattle without visiting the market and grabbing a cup of clam chowder, which is exactly what I did after wandering around and taking in the hustle and bustle on the waterfront. If you’re looking for something else to do, try jumping on the ferry to Bainbridge Island. I highly recommend the 35 minute scenic ferry ride. Just don’t forget your camera. You’ll want to photograph all that beauty surrounding you.

    In case you can’t tell, travel, for me, is all about finding great places to eat. When I mentioned on Facebook I’d be laying over in Seattle, Flo, a flight attendant on my crew, reminded me that Bob, the singing pilot, had recommended the restaurant Black Bottle a few months ago. We decided to check it out.

    Now Bob isn’t like most pilots, he’s got style. I’m not just talking about his layover outfit. Which is why I knew I wouldn’t end up at a sports bar, like so many pilots do. That said, I was a bit shocked to find that not only does Bob have great taste in food (at affordable prices) he appreciates a cool modern vibe. The food is served family style. Flo and I shared bacon lemon scallops and frizzled kale ($12), roasted vegetables verjus ($9), and fresh arugula, tomato, and pesto flatbread ($8). After that amazing meal, it is I, not just Bob, who highly recommends the Black Bottle next time you’re in Seattle.

    Like all good things, the layover came to an end, and before I knew it we were flying back to New York. I can’t wait to bid for the trip again! Maybe, just maybe, I’ll actually hold it – 20 years seniority or not.

    Black Bottle photo courtesy of Bacon Sandwich

    Increased passenger ticket fee may help pay for airport expansions

    Ever paid attention to the breakdown of the fees tacked on to your ticket? In addition to the $2.50 9/11 security fee, and a government tax of about $4, you also pay a passenger facility charge (PFC) of $4.50.

    This PFC is how the government pays for all the horribly outdated airports in the country. That is right – proceeds from selling $9 airport sandwiches are not enough to maintain and expand airport facilities. And neither is the current PFC – which is why a proposal has been made to raise the PFC from $4.50 to $7.

    I’m guessing the government saw how the airlines were raking in the cash from luggage fees, and decided they wanted a piece of the action.

    The increase should bring in billions of additional Dollars – an airport like Chicago O’Hare sees 70 million passengers a year, multiply that by $7, and you have a nice chunk of change. Then again, with an upcoming $5.5 Billion expansion plan scheduled for O’Hare, they need all the help they can get.

    Thankfully, this $2.50 increase is actually very modest – international airports charge far, far more for the luxury of landing at their airport. Amsterdam charges a $90 “noise isolation charge and passenger service charge”, Glasgow airport charges $145 for the UK PSC. But the real winner here is London Heathrow, with a $155 PSC.

    When you fly to these airports in a premium cabin, the fees can be as high as $300. So really, $2.50 seems like a pretty good deal if you ask me (these charges are all averages – some flights can be lower, some higher).

    The proposal has been approved by the house, and is currently pending before the U.S. Senate, but chances are, it will become reality very soon.%Gallery-28218%

    %Gallery-65766%

    United Airlines follows the competition – also offering double elite miles

    Several days ago, Grant wrote about a new promotion from American Airlines, offering double elite qualifying miles. It was only a matter of time till the next airline followed – and United Airlines did just that.

    Between September 3rd and December 15th (which just happens to match the American Airlines dates), you’ll earn miles twice as fast on United Airlines. These miles are not redeemable though – they only count towards your yearly number for elite status.

    This means you’ll be able to reach Premier level with just 12,500 miles, or 1K with 50,000 miles. The promotion is not automatic, so head on over to their promo page and enter your Mileage Plus number.

    If you fly a lot of short flights, you can also opt to earn double earning segments – but you can only pick one of the two, miles or segments, so pick wisely.

    If you have any travel coming up this year, I highly recommend signing up for all these promotions – even if you end up falling short of the requirements, they can’t be applied retroactively, and it only takes a few minutes to enter your information.

    Airport staff indicted on human smuggling charges

    Two ticket agent contractors for Delta Airlines and an airport employee have been indicted for conspiring to smuggle illegal immigrants into the United States. Diana Telemaque and Felicia Brown, the ticket agents, were arrested Thursday along with baggage handler Daniel Confidente.

    According to a statement by the U.S. Department of Justice, Telemaque and Brown allegedly sold tickets to illegal immigrants. All three have been accused of aiding an unspecified number of illegal immigrants in getting into the United States from May 2008 to July 2009.

    Many illegal immigrants try to get into the U.S. Caribbean territory every year – some to stay, others to use it as a jumping-off point to the mainland United States.

    A Delta spokeswoman says that the airline is cooperating with the government and that Telemaque and Brown, who were contractors rather than full employees, have been dismissed.

    The three suspects were released on bail of $10,000. If convicted, they could face up to a decade in prison.

    [Photo by Ken_Mayer via Flickr, licensed under Creative Commons]