Boondoggles: Way less funny than they sound

by Aaron Hotfelder on

As if U.S. taxpayers needed another reason to doubt whether their taxes were being spent well. Yesterday, USA Today reported on the Essential Air Service program: “Each day, about 3,000 passengers enjoy mostly empty, heavily subsidized flights, financed by a 30-year-old program that requires the government to guarantee commercial air service to scores of small communities that can’t support it themselves.”

The Department of Transportation apparently pays about $110-million dollars a year to a couple small airlines, ostensibly to keep citizens of rural communities a cheap flight away from an urban hub. What the program has actually done, according to its critics, is to keep small airlines artificially profitable and “waste money by providing what amounts to luxury travel to people within driving distance of a larger airport.”

To get an idea of the effect of the program, the article provides a number of examples. Here’s one: “[A] round-trip in Montana from Miles City to Billings – a two-hour drive away – costs passengers just $88 with a 30-day advance purchase on Big Sky Airlines because the government kicks in $779.”

Still more on this boondoggle:

“In October, the DOT agreed to one of the program’s largest subsidies ever – $2 million a year to Atlantic Southeast Airlines. That pays 60% of ASA’s cost to fly two round-trips a day between Macon, Ga., and Atlanta’s Hartsfield-Jackson International Airport, 81 miles away.

The airline projects that passengers will pay an average of $78 for a one-way ticket – and that flights, typically on planes with fewer than 70 seats, will run 83% empty. That means the DOT will pay $145 per passenger for the 19-minute flight.

“That’s a tremendous waste of money,” aviation consultant Michael Boyd says, noting that Macon residents can easily drive or take a bus to Atlanta. Groome Transportation, for example, runs hourly vans from Macon to the Atlanta airport. Cost: $31 a ticket.”

Whole thing here, via Marginal Revolution.

[Note: Not paying your taxes, while being a surefire moneysaver in the short term, is actually not a wise strategy to cure your money woes.]

Who is winning the commercial space race?

by Neil Woodburn on

Every so often we like to bring our readers up to date regarding the future of commercial space flight.

As you know, a number of entrepreneurs are trying to cash in on the potential billion dollar industry and are currently in an all-out-race to corner the market.

So, who is winning the race?

Portfolio Magazine has kindly published a report card this month rating the major players in the field and detailing the various problems they’ve encountered and the current risk factor involved with each of their products. Sadly, two of the five companies are labeled as “very risky,” receiving four out of four danger rockets in their score. Surprisingly, all five hope to be up and running explosion-free within the next decade. The following are the anticipated operational dates–they’ll be here before you know it, so start saving your money now.

Bigelow Aerospace: 2012
Blue Origin: 2010
SpaceX: 2010
Armadillo Aerospace: “in the next several years”
Virgin Galactic: 2009

Travel tip: Do not hide monkey in hat during flight

by Grant Martin on

Next time you want to bring your favorite animal friend on your flight, consider getting a cage or maybe at least a box. As a man this week flying from Lima – New York City just established, it’s not a great idea to store your furry friend in your hat.

Somehow he was able to smuggle the animal through security in Peru (although we’re not sure how tight that is) then get through customs in Fort Lauderdale with the primate in tact. Only on the flight from Fort Lauderdale to New York was the animal discovered when it crawled out of the man’s hat and onto his pony tail. By the end of the flight, the poor monkey was dead.

The authorities are still trying to determine the cause of the animal’s death. After the CDC quarantine, they did however determine that the monkey was not sick. Perhaps it was because he was stuck in a man’s hat for an entire day.

CDC says TB patient on plane may have infected others

by Aaron Hotfelder on

Officials from the Centers for Disease Control (CDC) are saying that a woman who was diagnosed with a drug-resistant strain of tuberculosis may have exposed others to the disease on a December 13 flight from New Delhi to Chicago.

According to a USA Today story, “Altogether, 44 passengers sat in five rows close enough to the woman that they might have been exposed to her illness. Health authorities recommend that they all undergo testing for tuberclosis, with follow-up in eight to 10 weeks. They’re concerned because the woman reportedly was coughing on the plane.”

The woman, a 30-year-old native of Nepal, is currently being treated in isolation at a California hospital.

More coverage here and here.

And a bonus prize for whomever can find the first “Andrew Speaker: Where is he now?” article in response to this new TB scare.

And now for the bad news…

by Aaron Hotfelder on

Soaring gas prices, a weak dollar, passport delays, hurricanes– these were just some of the hassles that travelers had to deal with in 2007. In the Chicago Tribune, James Gilden says all these problems– and more– will be back in 2008.

On gas prices: “With increased global demand, instability in the Middle East and hurricanes in the Gulf of Mexico, we might look back fondly on $3.03.”

On the weak dollar: “2008 may be the year to stick around the U.S. or visit a country with a more favorable exchange rate unless $5 for a cup of coffee in London doesn’t faze you.” My take: As long as you avoid the Euro and the pound, travel shouldn’t be prohibitively expensive. And perhaps U.S. travelers can take the poor exchange rate as an excuse to visit a part of the world they wouldn’t ordinarily– Asia, North Africa, Eastern Europe, South America– all of which remain relatively affordable.

On frequent flier programs: “Most major airlines this year adopted rules allowing frequent-flier miles to expire if there is no account activity, usually within a three-year (or shorter) period… Redeeming miles for seats is tougher than ever.”

Whole thing here.

Enough pessimism, Chicago Tribune! Now for the good news…

Flights are, generally speaking, getting cheaper every year. The world is more accessible to us than at any time in history. Traveling in most parts of Asia and South America is still ridiculously cheap, and I’ve got a year-long trip planned starting in July. Now that’s good news!