42 million bags mishandled, more than 1 million lost for good

Airlines around the world now have their incompetence measured! The same companies that get irritated when you try to carry on everything you own mishandled (i.e., lost) 42 million pieces of luggage in 2007, according to the Air Transport Users Council (AUC). This is an unbelievable increase from the 2006 level of 34 million and 30 million in 2005. Making matters worse, 1.2 million were “irretrievably lost” in 2007.

Not only are the raw numbers increasing, the rate of stupidity is accelerating. The amount of mishandled luggage grew 13.3 percent from 2005 to 2006. From 2006 to 2007, it sped up to 25.3 percent. Clearly, the airlines are getting better at being worse.

But, why should we dwell on the past when we can fear for the future instead? AUC worries that the number of bags mishandled could reach 70 million a year by 2019, based on forecasts of a 100 percent increase in the number of passengers flying annually over the coming decade.

With all this mayhem, there’s one thing you can count on: not being reimbursed fairly for your lost bags. The AUC says that passengers were not compensated appropriately “on too many occasions” because they did not have receipts for the items inside. Let this be a lesson to you. When you buy that new shirt, put the receipt in your suitcase – likewise for your hat, gloves, shoes and cell phone. This is clearly the only place where you’ll need them.

Oh, wait! Don’t put the receipts in your suitcase! Your suitcase will probably get lost! Stash them in your favorite carry-on instead.

As we stop flying, the boneyard becomes more crowded

It is no secret that air travel is in a downwards spiral. The industry always manages to find excuses, it could be the crappy economy, high fuel prices, or a general sense of panic that is keeping people from flying.

And when air traffic drops, so does the demand for many of the planes operated by the airlines. When a route could once be served by a 747, low traffic may now demand a smaller plane, and when a 747 is idle, you can’t just pull into a parking spot at the local airport and throw some quarters in the meter.

There are several types of aircraft boneyards in the world – some specialize in ripping all the valuable parts out of the carcass, others devote their knowledge to preparing the plane for a long break, awaiting the return of paying passengers.

A plane that is destined for a long break will have all its fluids removed, as well as some instruments that don’t do too well when they sit still. The engines and other openings are then blocked, and the airline simply pays for the spot. Some airlines even pay to have the plane moved around a little, to keep the tires in good shape.

In total, 1200 planes were grounded and moved to the boneyard last year, with an additional 675 heading to a parking spot this year, making it one of the worst on record.

Airline biz to lose $2.5bn, but more flights on time

MSNBC continues to publish the same story, and I continue to reblog it. Fortunately, author Sholnn Freeman managed to sneak in some interesting stuff at the end.

It’s no secret that airline prices are dropping as fast as they possibly can. Broader economic conditions are responsible for this fact. How do we know? The fine folks at MSNBC have developed the unique skill of telling the same story over and over with different words.

So, here’s the reality: you can find domestic one-way fares for under $100. I’ve seen several international fares (one-way) for under $200, usually to Latin America. According to Rick Seaney, Chief Executive of FareCompare.com, “If you are paying over $300 for an airline ticket right now, you are probably paying way too much.” He continues that these prices do not occur outside a recession.

Nonetheless, passengers remain cautious. You know the drill … the savings may be great, but if you can’t afford to take advantage of it, you save nothing. A lot of people are canceling or scaling back vacation plans.

Thanks, MSNBC; we had no idea …

But, there is good news, and this is stuff MSNBC hasn’t reported before.

Airline on-time rates are at their best levels in years. Since there are fewer flights taking off, congestion has declined. So, all that time waiting on the runway last year is time in the sky this year. Of course, efficiency comes at a cost: the International Air Transport Association expects the global airline industry to lose $2.5 billion this year.

Southwest suffers softer stats

For Southwest Airlines, the numbers are down all over the place. The low-cost carrier flew 5.1 billion revenue passenger miles (RPMs) in February 2009 – a 6 percent drop from the 5.4 million in February 2008. Available seat miles were down 6.5 percent to 7.4 billion. This continues January’s trend. RPMs for the first two months of the year are down 6.2 percent (from 10.9 billion RPMs to 10.2 RPMs).

So, what does this mean in cash? Southwest’s revenue softened from January to February, with business travel one of the major culprits. The drops are hardly catastrophic, but they do suggest a tough year for the airline … as if we needed the data to know that.

Continental #1 in Fortune mag

Okay, the competition couldn’t have been all that stiff. Continental Airlines was rated the top airline in Fortune magazine‘s annual list of most admired companies. Its score of 7.71 was not good enough to push the company into the top 50, though. This is the sixth year in a row that Continental has taken the lead spot in the airline category. Somehow, Southwest is listed as #7 on the full list, though it scored behind Continental.

Looks like Fortune is suffering from a case of “journalist’s math.”

Chairman and Chief Executive Officer Larry Kellner said that “Continental’s more than 42,000 co-workers are the reason for our success, and I’m proud to see their hard work recognized again this year.” Apparently, he has forgotten that the passengers shelling out cash to fly on the airline’s 2,800 daily departures might have something to do with that, too.

Air France-KLM followed Continental with a score of 7.15. Southwest Airlines (6.89), Singapore Airlines (6.57) and Delta Airlines (6.18) were also recognized on the Fortune list.

Funny, JetBlue didn’t show up.

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