March airline plunge softens in April

Passenger traffic is still falling. That’s not going to change for a while. But, the decline slowed in April, signaling that the prolonged sharp dips may be behind us. Some optimists even believe that the worst is over – though I maintain a healthy skepticism.

Note the metric being used: passenger traffic. There’s a lot of mileage between asses in seats and money in the bank. On a positive note, increased passenger traffic means that more people are spending money on travel. Of course, deep discounts are responsible in large part for the increasing traffic. The value of these passengers in dollar terms, therefore, is quite low.

United Airlines reported a traffic drop of 10.5 percent in April 2009 relative to the same month in 2008. Delta and American sustained smaller declines. Southwest, meanwhile, showed a 4.1 percent increase.

And, fares fell.

The average one-way domestic fare paid in the first quarter of 2008 was $213 – compared to $246 for full-year 2008.

For now, however, the airlines believe it’s better to sell seats at any price, especially if they have to put a plane in the air anyway.

Extra seat charges: big bias or svelte snobbery?

As airlines are scrambling for any shred of extra revenue they can find, some policies are getting more attention than others. The so-called “fat passenger policies,” which govern the accommodation of passengers who require more than one seat, have attracted the ire of the NAAFA. Never heard of it? It’s a new one on me, too: the National Association to Advance Fat Acceptance. On the other hand, passengers who pay for one seat and use only one seat wonder why the hell larger passengers should consume two of the airlines’ fundamental units for sale (i.e., the use of a seat on a plane) for the price of one.

Here’s the perspective that’s been lacking: revenue per available seat mile (RASM). Check “Making Sense of the Airline Industry” for a deeper look at how this measure works. Then, come back here and think about what it means for the sale of seats on planes. Cash-strapped airlines are forced to give up revenue.

United Airlines seems to have found a way to balance both sides of this argument. If there is an extra seat available on a flight, a passenger who can’t fit into one seat will be given the extra at no charge. On full flights, larger passengers can wait for a later one that has space and can occupy two seats at no extra charge.

Southwest, Alaska Airlines and Continental have policies, as well. Though the specifics vary, the armrest is pretty much the decision maker. If you can’t put it down, you can’t occupy only one seat. Southwest and Alaska Airlines require the purchase of an extra seat but will refund that part of the fare if the flight is not full. Continental, on the other hand, won’t refund the difference. In fact, the airline requires the purchase of an additional seat on each segment flown at a “hefty day-of-travel rate [read the original article, “hefty” was not my word, though I applaud the writer for being gutsy].”

JetBlue has no formal policy and claims that its larger seat size is already a step in the right direction. Delta and Northwest say that they’ll do what they can to accommodate larger passengers, but a purchase may be necessary. Virgin America asks that the big folks buy two, with one refunded if there’s an empty on the flight.

You can get my thoughts after the jump.At the end of the day, there is only one point that matters. Airlines are businesses run in the interests of their shareholders. Since most of these businesses are struggling, they need to do what they can to maximize revenue. If that means charging for two seats for passengers who can’t fit in one, so be it. If an airline feels that that’s a public relations nightmare and would rather accept the degradation RASM … it’s up to them.

It’s a numbers game – and not the numbers on the scale.

I’ve always been a believer in “pay to play.” You want a seat? Cough up. You want two? Cough up twice as much. “Buffet-style” air travel – in which you pay once and take as much as you want – simply doesn’t work.

And, I respect airlines for addressing the rights of all passengers. Everyone has a “sitting next to a fat guy” story. Yes, some are really just infantile bitching because planes are generally cramped. But, some are legitimate. A larger passenger who wants to save a few extra dollars and can’t put the armrest down is having his ticket subsidized by mine. That has an effective financial impact on me, and it’s unacceptable.

It’s not an issue of weight. However you look at it, the concern is financial. Take the word “fat” out of the equation, and it’s much easier to solve.

Daily Travel Deal: United launches mega fare sale

United Airlines just launched an outstanding fare sale to the American Southwest, with fares starting as low as $39 plus tax. Texas is one of the focal points, with destinations such as El Paso, San Antonio, Houston and Dallas boasting the great prices, but other locales like Albuquerque and Oklahoma City are also a steal.

Check out United’s promotional site to see a full list of fares and destinations. Each-way fares are based on required round trip purchase and availability is limited, so make sure that you book early. And don’t forget about United’s Double Elite Qualifying Miles promotion that’s currently underway which will get you extra perks for your trip.

And make sure to keep checking the top five travel deals for the latest greatest travel deals.

United crew – it’s time to serve drinks to the idiots in coach

There is not much I like about United Airlines, but their Channel 9 in-flight audio is one perk you won’t find on any other carrier. Channel 9 is the audio channel that lets you listen in on the cockpit communications with Air Traffic Control. I’ve always found it a great way to pass the time, and get a better idea what is going on when the plane is delayed.

A reader on The Consumerist apparently shares my love for Channel 9, but got a rude awakening when he noticed that the Channel 9 audio was relaying the flight attendant phone communications instead of the cockpit.

Unfortunately for the cabin crew, the things they were exchanging over the phone were really not intended for the passengers, especially when one of them told a colleague that they’d soon “start on drinks for the idiots in coach”.

Ouch.

I’ve always known coach class passengers were sometimes referred to as “roach class”, or “self loading freight”, but to actually refer to your paying customers as “idiots” seems rather harsh.

One of the passengers who heard the remarks let a crew member know they were able to hear what they were saying, at which point they stopped using the phones. Of course, no apology was issued, nor did anyone at United Airlines respond to the story.

(Via: The Consumerist)


Stories of booze gone bad in the skies

United Airlines bringing 165 call center jobs back home

Here is a bit of feel good news from the travel world – hidden between all the bad news was an announcement from United Airlines that they were going to move 165 call center positions from their International Call Center back to the USA.

The new jobs will be added to their existing centers in Chicago and Honolulu.

This news is great for several reasons – it creates new (and badly needed) jobs here in the US, and it means you can call the call center without having to explain everything twice.

No offense to the hard working people in their International Call Center, but if I’m completely honest, it was always quite the hassle to deal with them, especially if it involved anything a little more complicated than a simple itinerary change.

Of course – with good news also comes some bad news; none of these new workers will be anxiously awaiting your reservations. All the new positions will be used to respond to complaints sent to the airline.

In fact – United Airlines is so tired of people picking up the phone to complain, that as of April 2009, you will no longer be able to call them with your rants, and complaints will only be accepted through email or regular mail.

So much for progress.