One three-hour airline delay this summer … and the industry survived

The latest data from the Department of Transportation suggests that airlines are figuring out how to survive in a world of on-the-ground delays that can last no more than three hours. The summer travel season had only one delay that was affected by the rule. This is a 98.5 percent decline from the summer of 2009.

The airline industry mobilized, when faced with the prospect of the three-hour rule, to counter that there would be a substantial increase in canceled flights, as the threat of hefty fines would cause them to pull the plug. Yet, this hasn’t really happened either. Cancellation rates for the spring and summer were:

  • May: 1.24 percent
  • June: 1.5 percent
  • July: 1.43 percent
  • August: 1 percent

In fairness, May, June and July had cancellation rates higher this year than last, but August held steady, suggesting that it is possible to comply with the three-hour delay rule without sending cancellation rates sky-high.

According to MSNBC:

That’s an acceptable tradeoff, says DOT. “Although the rule has been in effect only a short time, we’ve seen no tangible increase in flight cancellations,” said spokeswoman Olivia Alair, “which means airlines are taking action to prevent delays without canceling flights, as some industry critics claimed they would.”

So, what were the dire consequences forecasted by the airline sector?

Those critics would no doubt include airline consultants Darryl Jenkins and Josh Marks, who published a report in July stating that the new rule would lead to an additional 5,200 cancellations per year (both directly and indirectly), at a cost to the public welfare of $3.5 to $3.9 billion over the next 20 years.

Jenkins and Marks stand by their projections, creating a situation in which the same data is leading to two perspectives. But, one thing is clear: in terms of percentage, flight cancellations have stayed consistently under the 15-year average for four consecutive months.

[photo by nafmo via Flickr]

New Mexican town created by hedge fund causes layoffs?!

Hedge fund DE Shaw laid off 150 employees a couple of weeks ago, and the reason is being traced back to a town the company tried to create in New Mexico. Trying to add to the map of a state, it seems, doesn’t pay.

DE Shaw and real estate developer SunCal Cos carved out 55,000 acres (twice the size of Boston, according to Business Insider) and sought to turn it into a new town. The financial crisis pretty much put a stop to the $250 million endeavor, but when the music stopped, the payments didn’t. Now it looks like DE Shaw has a $150 million tab.

The question that remains, according to Business Insider’s Courtney Comstock, is pretty simple:

DE Shaw is a quant fund that trades – we thought – exclusively computer-driven strategies. So what the heck were they doing trying to create a residential, industrial, and commercial community out in New Mexico?

Hopefully, nobody printed updated maps!

[photo by leiris202 via Flickr]

Park service dedicates ‘trail of time’ at Grand Canyon

The National Park Service is hosting a ribbon cutting ceremony along the South Rim of the Grand Canyon today as they dedicate a new trail that has been hundreds of millions of years in the making. The official ceremony will take place at 2:30 PM local time, with an informal hike along the trail taking place between 3:00 and 5:00 PM. The event is part of the park’s celebration of Earth Science Week.

The new path has been dubbed the “Trail of Time” and it is designed to be an interpretive walk that focuses on the amazing geologic processes that are on display in and around the Grand Canyon. The new exhibit follows an existing trail, but incorporates some interesting new elements that help to define the magnitude of the natural forces that are on display to visitors. For instance, there are now brass markers every meter along the route, with each of those markers representing 1 million years of geologic history. Viewing tubes have also been added which help to put into context where certain visible rocks fall along the Earth’s historical timeline.

The Trail of Time can be hiked in two different directions. If visitors start at the Yavapai Geology Museum they can walk backwards in time, slowly approaching the oldest rock in the park, the Elves Canyon gneiss. This ancient formation is more than 1.8 billion years old. On the other hand, hikers who begin at the Verkamp’s Visitor Center will actually move forward in time, approaching the youngest rock in the Grand Canyon the Kaibab Limestone, which is a mere 270 million years old.

The Grand Canyon is one of the best places on Earth to view first hand the impressive geological processes that go on around us on a daily basis. Those processes are so small that their effects can only be seen over the course of millions of years, but in the Canyon, more than a billion years of Earth history is open to examination, giving a all a very humbling glimpse into the powerful forces that are in play on our planet.

For more information on this fun and educational new trail, check out the virtual Trail of Time by clicking here.

[Photo credit: Micahel Quinn of the NPS]

Airlines had fewer runway close calls, down 50%

The federal fiscal year just came to a close, and that means it’s time for a look-back by government agencies. Well, the FAA has some good news for us: runway near-misses fell 50 percent, registering a second consecutive year of drops. There were six serious runway incursions in fiscal year 2010, the FAA says, down from 12 in fiscal year 2009.

This represents incredible progress from 2000, in which there were a whopping 67 close calls. The move in the right direction is in part because of efforts by federal regulators and airports, reports USA Today.

Okay, let’s all breathe a sigh of relief.

[photo by as737700 via Flickr]

Airline passengers want more self-service options

Hey, airlines: passengers don’t want your help. Seriously. We’d rather take control of our fates. Let us make our own choices and pay for what we consume.

Well, that’s what a new survey reveals. The fifth annual SITA/Air Transport World Passenger Self-Service Survey finds that air travelers would like a bit more independence. Seventy percent, this year, want automatic boarding gates – where scanning a boarding pass opens a turnstile – up from 57 percent. In fact, self-service is already the norm, with more than 70 percent using airport kiosks for flight check-in, and two-thirds want to see expanded kiosk use, including: paying baggage fees, purchasing meals, printing bag tags and getting delayed luggage.

I guess this provides support for that old saying: if you want it done right …

[photo by joiseyshowaa via Flickr]