Bad news for the world’s airlines – nobody is going to make any money this year

by Scott Carmichael on

How bad is the current economic climate for airlines? Well, assuming your number one priority as an airline, is to make money, then it is pretty safe to say that things royally suck.

Virgin Atlantic chief executive Steve Ridgway says that a combination of low fares, high fuel prices and reduced passenger numbers will prevent any of the world’s major airlines from earning a single penny in 2009.

This is not the news that they’ll make a little less, or that only some airlines will suffer, apparently nobody is going to have a good year.

This bad news has already forced some airlines to ditch their first class service on some routes, and others to ground planes awaiting better times.

What this means to us travelers is probably not going to make the airlines any happier either – raising prices won’t help them, so they’ll most likely be forced to keep the low fares coming.

Some airlines (like Virgin Atlantic) are hurting, but were smart enough to see this coming, and were able to take some precautions. The airline slowed down orders for new planes, and took some profitable gambles on fuel prices. Their actions have paid off – sales at the Virgin group actually increased by 8.4%, none of which will mean much if there is no profit left. Still, it beats the $640 Million in losses British Airways suffered.

Fear-free vacation, part I: look busy while you recharge

by Tom Johansmeyer on

Many are afraid to take vacations these days, according to a recent study by Challenger, Gray & Christmas. The 200,000 layoffs in the United States in January alone underscore the importance of looking essential in the workplace. But, you can’t push on forever. Fatigue will catch up with you, and you’ll just need a break. Instead of skipping your vacation and burning out – or taking your trip and worrying the whole time – just look busy. Get credit for being a committed company guy without actually getting committed.

It’s not hard to look busy in the wired age. Armed with a laptop, Blackberry and easy access to the web, you can swap e-mails, review documents and stay on top of your workload. This, however, is exactly what you should not be doing. That’s action work – which you need to avoid for a bit. So, instead of being a slave to your devices, the advice below to look like a machine even when your mind couldn’t be farther away from the office.

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1. Take care of the easy stuff fast
Yes, this involves doing work … but it’s easy work. If you see an e-mail that doesn’t take a whole lot of brain power to answer, click away at the keyboard. You’ll look responsive, helpful and generally in touch.

2. Buy time
For more involved questions, reply quickly with something like, “Give me a few days to wrap my head around this. Can we catch up when I get back?” Again, you look engaged, even though you really give less than a damn about your colleague’s needs.

3. Save some e-mails for later
You don’t have to reply to all the easy messages right away. Put some off until right before you go to bed. It’ll look like you’re blocking out time late at night to address company issues.

4. Reply from your laptop
If the recipient gets an e-mail from your laptop (rather than your Blackberry), the e-mail signature should show the difference. Even if you clear the “Sent by Blackberry” message from your account, you won’t have the benefit of your sig line – name, address, phone number, etc. Someone will notice the difference. Using your laptop means your laptop is open (duh) … and implies that you’re on the clock.

5. Hold back some productivity
Everybody tries to tie up loose ends before going on vacation (or should). The mistake they make, though, is sending everything before they leave. Save some stuff to send when you arrive at your destination and hint that you took care of it on the plane.

6. Print a tree’s worth of documents
When you do this, make sure people at the office see you. It’ll look like you’re bulking up for the flight.

7. Check in
Don’t be too showy. Shoot a simple e-mail to your boss, asking, “Anything blowing up I need to know about?”
Risk: The answer may be “yes.”

8. Schedule your e-mail
If you’re running on certain e-mail systems, you can schedule messages to send at a specific time. Use this to push e-mails while you’re on the beach, at the bar or in the spa. Be careful, though, as someone may reply.

9. Make up a contact
Here it goes: “I met this really interesting [choose profession]. We spent half a day by the pool talking about [something relevant to your job].” Then, tell your boss you need a few days to digest it. If he remembers – or cares – about what you were “digesting,” just say that your company “isn’t there yet” and sigh or roll your eyes.

Not enough for you? Don’t worry, this is just the beginning. We’ll have more tomorrow!

Guilt and fear: balancing vacations, work and getting away with either

by Tom Johansmeyer on

People are nervous. They’re afraid to appear unnecessary in a market where employees are being shed regularly. The strain is brutal. We’re all “doing more with less,” which increases stress and compounds the need for a break. If you decide to take that vacation, you have two options: look valuable or be valuable.

Looking valuable is tough. Skillful deceit is necessary to create the various digital smokescreens that will conceal your revelry and inspire awe and sympathy in your colleagues. The trick is to enjoy every minute of your trip but look like you’ve pissed the entire experience away for the sake of supporting your colleagues back home. Done properly, you recharge your batteries and get credit for commitment. One misstep, however, can show that you’re nothing but an opportunist.

Tread lightly.

Of course, there’s a group of people out there who would never try merely to appear productive. Why? They are – they’re machines. Vacations don’t exist, and these folks try to stretch the work day by every minute they can scrounge. Bosses may love this quality, but spouses and kids don’t. You’ll need a ruse, and getting caught can cost you.

Don’t worry, Gadling‘s here to help.

Between my own experiences as both a workaholic and a shameless corporate actor and those of the Gadling team, be ready for tk days of advice on how to be who you want to be. The first two days will help you be a better screw-off, enjoying your vacation while looking like Mr. Corporate America. The two days after that – we’ll help you look like you’ve put your family first without neglecting they guy who signs your paycheck.

Along the way, drop a comment with your ideas. We’re all in this wretched recession together, after all.

Flexjet cards moving, as even the rich feel the sting

by Tom Johansmeyer on

The days of the private jet may be over – or at least put off for a while – but those with means are still doing all they can to avoid commercial flights. Fuel prices have come down over the past year, but it still costs a bundle to put a private jet in the sky, especially when much of that “extra cash” has disappeared.

So, it looks like uncooperative financial markets are making private jet alternatives, such as the Flexjet 25 Jet Card, pretty attractive. In fact, sales for this particular solution are up this year … pretty surprising in this market. The company had a record-setting month in January and is about to double its sales team. When you look a little deeper, though, you can see why the wealthy are going with a “debit card” for flying.

In addition to the sheer cost of owning, managing and operating a private jet, this group of travelers is looking to the future. The effective price per flight increases when you consider the expenses that come with keeping a jet on the ground – from crew to storage. Even if the worst of the financial crisis is behind us, the absence of recovery means that jet owners are worse off than they were 12 months ago. Without a distinct change for the better, this population needs to reconsider its commitment to private flying.

With fewer flight hours logged, the ground costs become proportionately higher, leading many to question the sense of having a jet at all. The Flexjet 25 Jet Card is among the solutions that can help the truly upscale traveler cut personal expenses without luxury. Since it offers the best of both worlds – conspicuous luxury at a lower price – it’s hardly surprising that the card is gaining traction right now.

Flexjet’s good news may be indicative of a broader trend in the travel industry, particularly among high net worth travelers. Doubtless, financial pressures lead people to make cuts, and the rich are no exception. But, it would be hasty to conclude that a dip in the Dow means total abstinence from the good life. Gradual change, when possible, is the likely course of action. As the recession runs its course, it may give life to a new breed of luxury travel companies that make comfort, convenience and style more affordable … but hardly cheap.

Wealthy jetsetters and the recession – All work and no playboys?

by Annie Scott on

I recently attended a presentation hosted by Dr. Jim Taylor, vice chairman of Harrison Group and Cara David, senior vice president of corporate marketing and integrated media of American Express Publishing, to hear about how the wealthy have been affected by the economic downturn.

The “Annual Survey of Affluence and Wealth in America,” as the yearly presentation is called, culls information from a group of Americans (1,300 this year) representing the country’s highest earners; all respondents pull in a minimum of $100k in discretionary income (income after tax, mortgage, home maintenance and child education). If you want to read about how they’re spending that money now that the market’s tanked, read my article on our sister site, Luxist: “How The Wealthy Are Spending Their Money This Year.”

On to more important things: How the wealthy are traveling.

Of these 1,300 affluent Americans, 78% of whom say that the crisis has affected their sense of financial security, only 19% anticipate that their weekend getaway spending will increase. But guess what? That’s exactly how many of them said it would decrease. 62% of respondents said that their weekend getaway spending would stay exactly the same. What’s more, “increasers” have been increasing steadily since quarter 2 of 2008, when just 9% anticipated spending more. Rich people: 1, Recession: 0.

Slightly fewer, but still 55% said that their vacation spending wouldn’t change this year in general, but a whole 27% said that it would decrease, on the whole. I smell fear. Point for the recession. A few more, 29% said they planned to decrease their spending at fine hotels and resorts. Rich people: 1, Recession: 2.

In an interesting development, though a full 44% said “My personal travel will be pretty much the same as in recent years,” a winning 46% said “I will stay in the same tier of hotel, but expect to find better deals.” That means the wealthy are being pickier, and when they’re not just spending willy nilly? It’s a consumer’s market. Point for rich people. Frankly, a point for all consumers.

While we’re looking at this data, we must note that only 54% of the affluent Americans surveyed had taken a vacation to a resort destination in the last year … maybe that’s why they have money. They’re working, not jetting off to Spain (only 9% have been there in the last three years). Wanna see where the wealthy are going? Behold their data, courtesy of The Survey of Affluence and Wealth in America, presented by American Express Publishing and Harrison Group:”

The right hand column there is first “Upper Middle Class (UMC) to Super Affluent” responders, and the “Wealthy” percentage refers to those with a discretionary income over $500k. And still, only 18% want to go to Spain. Why doesn’t anyone want to go to Spain?

Also note the low numbers for Australia and South America. Why? Because if you’re not wealthy, you can probably go there for cheaper right now. And if you are wealthy, you can probably get a better deal — it’s a good time to go!

What does the rest of this information mean for all of us? It’s generally good news. The travel plans of the rich aren’t changing that much, so though the recession is tough in all kinds of ways, the travel industry isn’t getting hit too hard — as long as they’re coming up with good values. No one’s saying they’re not gonna travel, but they’re willing to wait longer for better deals. That’s good for everybody. Maybe the vacation that was just out of your reach last year will be within your reach this year.

Oh, and if you’re trying to look wealthy to your friends? Talk about how much you can’t wait for your next Caribbean or West Indies vacation.

Happy Friday, everyone! Don’t forget to stop by The Goose Island Clybourn Brewpub tomorrow if you’re in Chicago — the Gadling team (darn near everyone but me, typing away in New York) will be there! Read “THEY DO EXIST! Meet Gadling next weekend in Chicago” for more info.