Bullets found on Southwest flight by CNN photographer going to cover Sarah Palin

by Tom Johansmeyer on

Let your kids kick the seats in front of them: it could save your life. If you’re the passenger being inconvenienced, it may behoove you to find a way to cope.

A kid who would otherwise be branded a royal pain found a loaded gun magazine … that should have been in the hands of a law enforcement official … on a Southwest Airlines flight. To make matters worse, the media was actually on the plane!

Here’s how it happened:

1. A kid was sitting on his mother’s lap during a flight from Burbank, California to Phoenix, Arizona
2. The plane landed, and the kid crawled across the seats in his row
3. His foot knocked an item to the floor – it was a loaded gun magazine
4. A flight attendant picked it up, but not before someone from a CNN crew, photographer Gregg Canes, saw it
5. The CNN passenger asked to take pictures of it, but the flight attendant would not let him
6. The gun magazine was turned over to the authorities

It’s that simple, folks … but it does get a lot more interesting.According to a statement by Southwest, “The item was immediately turned over to the crew working the flight who called in the local authorities to handle the investigation,” continuing, “The passengers who were remaining on that flight were rescreened and the plane was thoroughly inspected before returning to service.” They were ten allowed to get off the plane.

Southwest spokeswoman Brandy King told CNN that the officer who left the gun mag behind did follow the proper procedures to bring his gun on the plane. CNN adds:

“The full magazine was found in a back seat pocket,” a TSA official told CNN. “We believe it was left by a law enforcement officer on a flight that originated in San Jose and landed in Burbank. The officer was not an air marshal and we are trying to establish contact with the agent.”

Canes put it best: “It was actually almost funny, given the amount of scrutiny that we’ve been paying to the [Transportation Security Administration] and personal security. It seemed almost funny to see a magazine with bullets in it just sort of lying on the floor of a commercial jetliner.”

Need a bit of irony to round this out? Canes must have been in a gun state of mind; he was headed to Phoenix to cover a Sarah Palin book signing.

[photo by gcfairch via Flickr]

Airline profits may mean more elbow room for a little while

by Tom Johansmeyer on

The airline industry wants to thank you. Last year, it was mired in despair. The post-financial crisis recession left the carriers beleaguered and desperate for a turn of fortune. Corporate and leisure travel had fallen precipitously, and doubling down on extra fees, though prudent for profits, alienated both those considering a flight and the passengers with little choice but to hit the road. The brutality of 2009 was evident, and it seemed as though all there was for 2010 was the hope for something better.

Well, hope paid off.

Three quarters into this year, money is again beginning to flow, as a result of (finally) climbing fares, additional fees and an increase in passenger traffic. United Continental, Southwest and JetBlue have reported strong profits for the third quarter using a variety of tactics, but an increase in sales and higher prices appear to be the universal driver. And, this may translate to a bit more elbow room for you.
According to the Associated Press, airlines are beginning to bring back some of the routes they cut last year, as indicated by decisions at Delta and American Airlines to hire more flight attendants. The challenge, however, will be to increase capacity (and thus headcount) without imperiling this year’ hard-won profits.

The business of satisfying pent-up demand isn’t easy for the airline sector. After all, capacity can’t be added one seat at a time. Restoring a route to handle more passengers comes with it the obligation to fill the plane (to the extent possible) each time, in accordance with revenue per available seat mile (RASM) targets.

Nonetheless, the carriers seem ready to rise to the challenge. JetBlue is amping up fourth quarter capacity by up to 10 percent, with Delta looking at an increase of 5 percent to 10 percent. This follows even faster growth in September, according to the Associated Press:

Still, most of the airlines saw traffic rise even faster than capacity in September suggesting they have enough business to support the additional flights. The only exception was Delta, which added capacity slightly faster than traffic rose.

The moves come in anticipation of a strong 2011, according to Ray Neidl, an analyst for Maxim Group. He tells the associated press that the growth in capacity “is a little more long-term,” adding that “[d]espite the lackluster economy, it’s going to be a big year for airlines, especially as consolidation kicks in.”

So, what does this mean for the flying public?

Well, you may not have to occupy that middle seat for a little while, and the odds that someone else will be in it may be improving. The increase in capacity necessarily precedes an increase in sufficient demand to make it profitable, so enjoy it while you can! If the airlines can’t fill those new seats, a return to austerity could send you back to sharing an armrest.

[photo by Joe Shlabotnik via Flickr]

Airlines getting scammed online, fighting back

by Tom Johansmeyer on

Airlines lose a boatload of cash – tens of millions of dollars a year – because of online fraud. Think about it: you pay for your pillow and to check a bag because some degenerate can’t bother to work for a living. The airlines are keeping their customers in mind (shockingly), though, and they’re fighting back. Better protection systems, increased staff and a higher priority for prevention are now on the agenda as carriers seek to protect their coffers.

The stakes are high, and airlines are exposed. A Deloitte UK survey conducted in 2009, with 50 U.S. and global airlines responding, report that 48 percent have seen increases in fraud year-over-year, with average losses of $2.4 million a year. Yet, it could be far, far worse. CyberSource and Airline Information conducted a poll and came to an estimated loss amount of $1.4 billion in 2008.

According to USA Today:

“The general feedback from everybody … is that they see it getting worse,” says Graham Pickett, partner in charge of aviation services for Deloitte UK, which conducted its survey for the International Association of Airline Internal Auditors. “The main driver has been … the Internet, and in particular credit card type bookings.”

Airlines have invested in protecting their profits over the past two years, especially the larger companies. Of course, they aren’t all that willing to talk about specific measures:

“Common sense on this issue limits a discussion of what we do to track, prevent and seek prosecution of such occurrences,” says Tim Smith, a spokesman for American Airlines. “We’re just not interested in providing a ‘how to’ lesson on the subject.”

The cyber-attack on airlines comes after online travel agencies, such as Orbitz, steeled their systems. For a while, they were the primary targets, with Orbitz, for example, getting spanked for millions of dollars a month by fraudsters.

The anti-fraud measures appear to be working. AirTran‘s team has reduced fraud losses to less than 1 percent of revenue, and Southwest says it has cut fraud by 73 percent.

How much does this matter? Think about all the small cuts you’ve had to deal with as a passenger. Every dollar matters to the airlines. Cutting fraud losses is just putting cash back in your pocket.

[photo by jepoirrier via Flickr]

Airline mergers could lead to fare “creep”

by Tom Johansmeyer on

The Southwest/AirTran merger isn’t expected to push fares much higher. The disappearance of seats that comes with airline consolidation would make you think that prices are about to rise, as the fundamental commodity of the airline industry becomes increasingly scarce. But, we’re not close to that point yet, notes USA Today:

“We’re not at the tipping point,” says George Hobica, founder of Airfarewatchdog.com. “I don’t think fares will be impacted much until we have three legacy carriers and one discount carrier remaining.”

The number of seats, however, is shrinking across the airline industry. Since September 2007, the number of domestic seats available has fallen 10 percent.

According to Hobica, look for fares to “creep upward,” but not at a rate that will horrify customers, a position supported by Frank Werner, associate professor of finance at Fordham University. He tells USA Today: “Generally, airline mergers remove competition from the skies, leading to higher prices. This will happen in markets where the combined Southwest/AirTran will not have a dominant market share.”

[photo by SkilliShots via Flickr]

Five reasons airline fees up 50% year-over-year

by Tom Johansmeyer on

Does your wallet feel a little bit lighter? A new USA Today analysis reveals that airline fees are on the rise, with some up more than 50 percent relative to a year ago. The study compares the extra fees (not to be confused with fares) of 13 airlines and shows just how important this revenue source is to the airline sector.

According to USA Today, “The numerous fees are a sore subject for many fliers, but their dissatisfaction hasn’t deterred airlines from bringing in record revenue from additional fees.”

The fees were good for $2.1 billion last quarter, with $893 million of it coming from checked bags and $600 million from changed reservations.

So, where did all this money come from? Here are five ways airlines have turned those extra charges into a big business:

1. First checked bag: most airlines in the United States hit you for up to $25 for the first bag you check, with only Southwest and JetBlue abstaining. Most charged $15 a year ago, according to USA Today, with four not playing this aspect of the fee game.

2. Change fee spikes: a year ago, the most expensive coach change fee was $250, charged by Continental, Delta, United Airlines and US Airways. This year, it surged to $300, an increase of 20 percent, charged by American Airlines for some international flights.

3. Pay to call: still resisting the internet? Booking by phone costs an extra $35 on US Airways, while Allegiant Air hits you for a $29.98 round-trip booking fee and another $14.99 for “convenience.”

4. Preferred seating: United asks for up to $159 for preferred seating, which can give you up to five more inches of leg room. A year ago, it would have set you back only $119.

5. Get a receipt: Continental (for which this isn’t new) – along with American, Hawaiian and US Airways – have an extra fee for passengers who want a receipt after they have taken their flights.

[photo by Deanster1983 via Flickr]