Airlines continued to cut jobs – 25 months in a row

by Tom Johansmeyer on

There’s a reason why airlines have positioned themselves for a solid performance in 2010: in addition to charging all those extra fees, they have been cutting positions (and thus expenses). In July alone, the industry in the United States trimmed 2.3 percent of its workforce relative to July 2009. That made 25 consecutive months of net job losses in the domestic airline sector.

According to the Department of Transportation‘s Bureau of Transportation Statistics, 378,100 people were employed full-time by the airline industry in the United States in July 2010, a decline of 8,700 from July 2009. Five of the six network carriers cut positions, with Delta adding headcount only because of its Northwest acquisition. Only two low-cost carries reported net cuts for this period (Southwest and AirTran).

According to the Associated Press, maintenance and ticket agent positions are getting hit most:

While the number of in-flight airline employees like pilots and flight attendants is regulated by the Federal Aviation Administration, the bulk of airline employees-maintenance crews, reservations and ticket agents-work on the ground and aren’t subject to federal minimums. Airlines are operating with less staff to save money, but they’re also outsourcing maintenance and other work to other countries where labor is cheaper.

[photo by aflcio via Flickr]

Five business travel factors for Obama and the midterm elections

by Tom Johansmeyer on

Leisure travel is irrelevant during the election season, but the woes of business travelers seem to resonate. With the midterm contests two months away, all eyes are on the White House … and President Obama‘s success rate with road, rail and runway repair.

This is the one time business travelers make the presidential agenda, according to Portfolio.com: “Presidents (or people campaigning for any office) only talk about business-travel infrastructure during election season. Our issues almost never seem to rate presidential attention at any other time in the cycle.”

Well, let’s take a look at what Obama’s done for the white collar travel crowd. Here are five business traveler issues that could attract some attention in November:1. Secretary of Transportation appointed: With passengers’ rights considered and a solution implemented (and one that seems to be working), Ray LaHood seems to have been a savvy secretary. And, airlines have been slapped with some hefty fines, proving that they need to take responsibility for their actions.

2. Not so much at the TSA, though: While Portfolio.com gives Obama high marks on behalf of business travelers for LaHood, it’s a little tougher on his choice for top dog of the TSA. The president waited a year to tap someone for the job, suffered through Senate procedural tricks and eventually had to go with his third nominee.

3. Security is solid: The system is relatively safe, Portfolio.com opines, but expect some rancor over the body scans that are set to be implemented, as “the TSA is about to ratchet up the security kabuki at airport checkpoints.”

4. Travel consumer rights on the rise: It took 47 passengers getting stuck overnight on a Minnesota runway, but passengers finally got some rights. The airline industry warned of (self-servingly) of unintended consequences … which have yet to materialize. The Obama administration has airline fee structures on the agenda now.

5. Merger-mania managed: Despite the fact that the “balancing act is tricky,” the administration has done a decent job of facilitating healthy competition without impeding too much of the urge to merge.

[photo by jurvetson via Flickr]

Airline law ends long Tarmac delays, fine threat improves performance

by Tom Johansmeyer on

The world didn’t end. No logistical disasters emerged. In fact, everything got a hell of a lot better.

Several months ago, the prospect of a maximum three-hour tarmac delay had the airline industry proclaiming the arrival of the four horsemen. They claimed that it would severely disrupt the industry to have to give passengers the option of getting off the plane would lead to chaos. People would be furious by a lone passenger wanting to bring the plane back to the gate, and crews would be forced to operate within the constraints of customer demands (you know … like other businesses).

Well, the airline industry doesn’t appear to be any worse off than it was. In fact, it looks like the new three-hour rule is having a positive effect. Three-hour tarmac delays have effectively disappeared, and on-time arrivals have improved overall. Everything seems to be running better than it was before the airlines faced fines of up to $27,500 per passenger.

How big a different did it make?Well, only four planes sat on the tarmac for more than three hours in April. In March, 25 hit that mark, and April 2009 had an astounding 81 planes on the tarmac for that long.

So, you’re probably wondering if the airlines stacked the deck, canceling flights to protect their stats and mitigate the risk of having to yank planes back to the gate or shell out big bucks fines. Year over year, the DOT reports that cancelations fell approximately 50 percent, with only 3,637 of 529,330 flights getting chopped.

Overall, on-time performance for the 18 airlines that report to the U.S. Department of Transportation climbed to 85.3 percent in April – up from 79.1 percent in April 2009 (and better than March’s 80 percent. Most of the late arrivals were caused by aviation system delays (e.g., bad weather or heavy traffic).

Efficient use of New York airspace and generally calm weather contributed to the improvement. LaGuardia‘s on-time rate surged to 87.4 percent from 67.4 percent. JFK showed a similar improvement – from 67.3 percent to 83.5 percent.

U.S. Airways led the pack in on-time performance among major airlines and followed Hawaiian and Alaska Airlines in the total market. American Airlines was the bottom of the barrel for the large carriers, with its sister carrier, American Eagle, sucking most among all airlines.

Let’s do the math on this. Holding airlines accountable and offering up the threat of hefty fines for mistreating passengers didn’t jeopardize their ability to operate. If anything, it led to improved results. For once, it seems, the government got it right. If that sounds weird, think of an airline that takes off and lands on time. Weird, right?

Annual “DOTTY” awards honor traveling fools

by Laurel Miller on

Those crazy kids at the U.S. Department of Transportation (DOT) have released the winners of their annual DOTTY awards. Since 2008, the government travel industry watchdog has exhibited a most uncharacteristic sense of humor for a federal agency. Honorees are those travelers who have displayed the most moronic behavior. This year, the awards were issued just as DOT put new regulations into effect to provide increased security for travelers. Unfortunately, they can’t provide increased IQ, as well.

msnbc.com contributor Rob Lovitt breaks it down, pot cookie overdose, bomb scare ploy, monkey-disguised-as-pregnancy, tighty-whitey amphibian smuggling, and all.

DoT gives airlines $175,000 reminder ahead of Thanksgiving

by Tom Johansmeyer on

Three airlines just scored a first with the U.S. government: they were fined for leaving passengers in the lurch. Continental Airlines, ExpressJet (a Continental affiliate) and Mesaba (part of Delta) racked up a total punishment of $175,000 when their combined efforts left fliers on a plane in Minnesota for six hours.

Continental and ExpressJet were slapped with a fine of $100,000, while Mesaba was nailed for $75,000, according to the Department of Transportation.

With the busiest travel day of the year right around the corner, the timing couldn’t have been better. Airlines that let their guards down could face stiff fines. And, let’s face it: these airlines can’t afford peanuts, let alone five- and six-figure fines.

On August 8, 2009, 47 passengers were stuck on a Continental Express plane, which was diverted to Rochester, Minnesota (the original plan was Houston to Minneapolis), where they were forced to spend the night. ExpressJet operated the flight, while Mesaba, the only airline working the airport, refused to let passengers leave the plane.