Federal Court reverses ban on US Airways New Mexico liquor license

by Scott Carmichael on

This week, a federal appeals court overturned a ban the had been preventing US Airways from serving alcohol on flights to and from the state of New Mexico. The ban was put in place back in 2006 after an incident involving a drunk passenger.

The passenger, Dana Papst had been served two drinks on his US Airways Albuquerque flight, despite already being intoxicated. On his drive back home from the airport, he smashed into oncoming traffic, killing himself and five others.

For years, the airline had been in court trying to get the ban overturned, but it took a federal judge to rule in their favor.

US Airways had argued that airline alcohol laws are regulated by the U.S. Department of Transportation, and not local states. Part of the states decision to ban the airline from serving alcohol was based on a history of citation for over-serving passengers.

What do you think? If an airline has a history of over-serving, should states be allowed to revoke their liquor license?

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[Photo credit: AP]

US Airways inflight Wi-Fi service available on all A321 aircraft – with a freebie

by Scott Carmichael on

After a brief introduction period, US Airways has become the next big airline to bring the Gogo Inflight Internet service to most of its planes. Starting this week, the service will be available on all US Airways Airbus A321 planes, and for the next seven days, access will be free of charge (June 1st – June 8 11:59pm)

When you board a Gogo enabled plane, you’ll see a Wi-Fi symbol next to the boarding door, as well as an instruction card in the seat pocket. Once the plane passes 10,000 feet (and the captain permits it), you can turn on your laptop, PDA, iPad or smartphone, and access the network.

After this week, access will cost $4.95 on flights up to 1 1/2 hours, $9.95 ($7.95 for small mobile devices) on flights up to 3 hours, and $12.95 ($7.95 for small mobile devices) on flights over 3 hours. On select flights, you’ll even be able to access the service up to 100 miles beyond the U.S. border.

To learn more about the service, how to connect, and where it’ll be available – check out the US Airways Gogo Inflight Internet page.

Next candidates for an airline merger – United Airlines and US Airways?

by Scott Carmichael on

In what can probably be described as “just a matter of time”, rumors are heating up about a possible United Airlines / US Airways merger.

The push for this kind of consolidation is being fueled by the last big airline merger – that of Delta Airlines and Northwest Airlines. Of course, anyone who has followed the aviation world will know that a United/US merger has been in the news before. The two tried to merge back in 2000, and again in 2008. At one point they had already put their signatures on the deal, but had to cancel the party when the government and unions voiced their opposition.

Despite the size of the two airlines, a combination would still only make them the second largest in the nation.

All these mergers mean fewer airlines (US Airways merged with America West several years ago), and a United/US merger may force Continental to go shopping for similar arrangement.

Of course, things are still in a very early stage, and have not moved beyond “speculation”. Time will tell whether three times really is a charm for these two airlines.

US Airways the latest to increase extra bag fee

by Tom Johansmeyer on

US Airways has joined the ranks of airlines increasing their fees for extra baggage. The low cost carrier is raising its extra baggage fees by $5 each way, which is comparable to the increases levied by Delta, Continental and United. With the new charge, US Airways will be charging $25 for the first bag checked, with a second bag costing you $35 each way. The new fee takes effect on February 1, 2010. If you pay in advance, you can pick up a $2 discount on the first bag and a $3 on the second bag. American Airlines is still charging $20 each way for the first checked bag and $30 for the second one. On JetBlue, the first checked bag is free, and Southwest will let you check two bags sans charge.

The increased fees aren’t terribly surprising. The travel market slump is likely to continue through much of 2010, especially with the job market unlikely to improve until the middle of the year. And, airlines have become accustomed to all the extra cash they pick up from these fees. Since you’re a captive audience, they know you’re likely to pay … what other choice do you have?

So, get ready to cram everything you have into the overhead compartment. You’ll draw the ire of everyone else on the plane, but you’ll have the satisfaction of a few Andy Jacksons sitting in your pocket.

A gloomy travel market for 2010 will follow an ugly 2009

by Tom Johansmeyer on

Everybody seems to want the travel market to recover next year, but it looks like more time will be spent in yards, instead. According to a new USA Today/Gallup poll, only 16 percent of us are going to hit the skies or crash in hotels more than we did in what will go down in history as a dismal 2009. Close to a third said they are going to spend less time in guestrooms and cramped plane seats. The main reason, of course, continues to be the state of the economy.

Slow improvements to the economy, according to some industry analysts, should push demand for tickets and hotel rooms higher – not to mention services related to the convention and meetings business. But, the baseline is set pretty low, with 2009 having been so weak. American Express, the largest travel agency in the world, doesn’t see a recovery coming anytime soon.

The bar has been reset, and it’s low. It will stay low for a while.

The big beast to be tamed in the travel market, doubtless, is business travel. Until the corporations start to send people on the road more liberally, the airlines, hotels and other businesses involved in travel will continue to feel the squeeze.

What’s going to happen by sector? See below.

Airlines: Industry analysts see hints that the market is turning, with demand for seats up year-over-year (by month) since May. United Airlines sees “a very encouraging trend line,” and US Airways notes a steady improvement. But, the latter continues that a decline of 30 percent to 35 percent in corporate spending has been a drag, and November was the first month in which it was up year-over-year. And, November 2008 wasn’t a tough month to beat.

Analysts believe that “even a modest rise in the USA’s gross domestic product,” says USA Today, will kick the airlines back into profitability. Gary Kelly, CEO of Southwest, isn’t that optimistic, telling the newspaper, “Business travel still lags, and I don’t know that I’m comfortable in reporting that we’ve seen any improvement in that market.” He doesn’t expect business travel to bounce back next year.

Hotels: What can I say that Melanie Nayer hasn’t? Not much, really. The past year has been miserable, with PricewaterhouseCoopers reporting occupancy plunging to 55.2 percent this year, from a 2006 peak of 63.3 percent. Next year, it’s expected to tick up only to 55.8 percent.

Room rates fell precipitously in 2009 relative to 2008, causing an average decline of 16.4 percent in the industry’s average revenue per available room-night. PwC expects 2010 to be worse than 2009, conflicting with the Business Travel Monitor report from American Express. But, there’s room for both views. Leisure travelers will have to spend a bit more, but hotels in business-heavy markets will still win some favorable pricing.

Conventions: Look for a slight increase next year – again, relative to a brutal 2009. For the good news about the conventions, you’ll have to wait until 2011 and 2012, says Roger Dow, president of the U.S. Travel Association. Through the end of 2010, approximately 40 percent of corporate and association meeting planners, reports USA Today, are likely to postpone or sink off-site meetings for the next year.