Flying for the rest of the year – fewer seats, higher fares

by Scott Carmichael on

As the financial brainiacs of the world slowly start to see some gradual improvement in the global economy, the worlds airlines are pushing through some far reaching changes to their Q4 2009 schedules.

Because the recession hit the airlines so suddenly, none of them were able to make any major cuts to their schedules (these schedules are set in stone in advance).

Overcapacity has meant that 2009 was actually a very good year for passengers, with some of the lowest airfare we’ve seen in years.

Of course, now the airlines are looking at their new schedules, they are making sure that the overcapacity is a thing of the past, and that means trimming the schedule.

Obviously, fewer seats means more people fighting for the cheapest seats, which will naturally result in higher prices. The schedule cuts will bring airlines back to the levels post 9/11.

According to an AP report, American Airlines will be hit the hardest, with a 10.5% drop in passenger miles on its domestic routes. United Airlines is hit equally hard, with a 9% drop. It isn’t all bad news though – JetBlue expects a modest increase in passenger miles for the rest of the year.

Bottom line is – don’t expect any more amazing fare deals any time soon and think about booking early, because flights are probably going to be filling up pretty quickly.

(Image from Flickr, stevelyon)

Airline fees continue, necessary evil

by Tom Johansmeyer on

Yes, you’ve heard about this all year, and you’ll probably hear about it for a while to come. Airlines are still looking for ways to pull every dollar they can out of your wallets, but the reality is that they have no choice. Seven of the nine largest airlines in the United States had a rough time in August, making these measures more important than passengers might realize.

The second bag, according to an article in USA Today, remains the most popular fee target for airlines. Continental Airlines, US Airways and American Airlines recently announced that they are going to charge for this, and Hawaiian Airlines is going to charge passengers for the first checked bag on flights between islands beginning September 14, 2009.

I understand charging for checked luggage (the money has to come from somewhere), and I honestly don’t see charging for a second bag as a bad idea. Frankly, it can be pretty frustrating to stand in line behind someone who’s fumbling with more luggage than he or she can move along. The first bag? That’s a bit different. This fee could cause passengers to push the envelope with carry-ons, which is likely to trigger arguments with gate agents and flight attendants, tie up the boarding process and result in hefty doses of frustration for everyone else on the plane.

I’m more a fan of Southwest‘s new policy, which will put passengers at the front of the line – even ahead of frequent fliers and those paying premium fares – for a fee of $10 each way. Since the airline doesn’t assign seating, this small sum offers the chance to get the best seats on the plane. I’m not crazy about the notion that it comes at the expense of frequent flier comfort (alienating your best customers is rarely a good idea), but the price is low enough that these passengers would probably pay it anyway. For this perk, I’d definitely pay more than $10.

There’s money in extra fees, as we’ve discussed on Gadling in the past. Some analysts predict that these charges could be good for more than $2 billion a year for an industry that could definitely use it. The airlines need to be careful, though, as going to far could lead to disgruntled (and lost) customers.

Passengers, however, should be realistic. Fares are cheap. To make ends meet, airlines have been cutting flights and services, generally making the experience incredibly uncomfortable.

In fact, taking this approach to the extreme might be a good idea. Airlines could offer dirt-cheap prices for passengers who want nothing more than to get from one place to another. Then, if you want to enhance your experience – with a meal, cocktail or better seat – you can pay a little more. This à la carte approach would empower passengers to create their own experiences, ultimately improving customer service and airline responsiveness. To an extent, it’s already happening, but to make the strategy work, it would have to become part of a cohesive offer.

That said, airlines would have to be careful with their general cuts. Fewer flights, less legroom and degraded customer service affect everybody, and there’s no way to work improvements in based on price (with the exception of flying in business or first class, which involves a considerable price gap). Finding a middle ground could change both the airline industry and passenger perception of the flying experience.

American Airlines cleared on racism charges

by Tom Johansmeyer on

Six Iraqi-American passengers sued American Airlines, claiming that racism drove the cancellation of their flight. The men were all residents of Michigan and were employed by a security contract firm and had been participating in training with members of the U.S. military. Their flight was canceled, they believe, because of their nationality.

U.S. District Judge Paul Borman decided that the captain’s decision to return the August 28, 2007 flight to the gate in Chicago wasn’t “arbitrary and capricious.” The flight crew was accused of racial profiling, but Borman’s opinion recognized that the crew was right to be alarmed by unusual behavior. One passenger covered his head with a blanket – “mummy-like” and “menacing” – while the flight attendant provided the safety briefing. Another passenger claimed to be traveling alone, though he’d been seen earlier in the terminal with a group.

“All of these unusual actions by the passengers reasonably concerned the flight attendants, and justified their calls to the pilot,” the judge decided. “Based on the facts as (the captain) knew them to be when he decided to return the airplane to the gate, this court holds that his decision was not arbitrary and capricious.”

Paris pins its tourism hopes on Americans. . . and shopaholics

by Katie Hammel on

Poor Paris. The city was recently voted “most overrated in the world” and tourism is down by 11% (or more, according to some reports) compared with the first half of 2008. The number of British and Japanese visitors dropped nearly 25% each, while the number of tourists from China declined by over 17%.

Mon Dieu! What’s a city to do? Well, according to the AP, the director of the Paris Tourism Office is “counting on Americans” to make up for the drop in visitors from other countries. Because the United States was hit first by the economic crisis, it is expected to recover sooner, which means more American tourists may be looking to travel before others. And the plan for luring those tourists to Paris: the promise of extended shopping hours.

Most French stores are closed on Sunday, but a new law would allow more stores, particularly those in areas popular with tourists, to stay open. The Paris Tourism Office thinks this would encourage visitors to stay through the end of the weekend instead of leaving Sunday morning.

It’s an interesting idea, but somehow I don’t think shopping is the key to the city’s survival. I like to shop as much as the next girl, and I’ve always wanted to go to Paris, but what has stopped me wasn’t the fact that I couldn’t hit the stores on Sunday, so much as a desire to score a better deal on airfare. I can never seem to find Chicago to Paris flights that aren’t at least $200 more than any other European destination. Until that changes, sorry Paris, but you can’t count on this American to help with your tourism troubles.

On Southwest, the internet’s no longer free

by Tom Johansmeyer on

Starting tomorrow, Southwest Airlines is going to start charging for internet access on four of its planes. The fees will range from $2 to $12, based on how long you’re in the sky and how you connect. For the past few months, access has been free, but the lure of additional revenue must have been hard to resist.

Yep, another extra fee to add to the list …

Both Delta Airlines and American Airlines are planning to add internet access to more than 300 planes each, but they’re still in the early stages. The fee to connect can reach $12.95, though less on shorter flights or when you use a handheld device instead of a laptop. I tested out Delta’s offer on a flight from New York to Atlanta and had great results. If you’re looking to recapture a few hours of your professional life, the price is well worth it.

For once, there’s a fee well worth paying.