American finds $2.9 billion: more routes added

by Tom Johansmeyer on

It’s hard to see how the machinations of Wall Street affect the end consumer, sometimes. In the case of American Airlines and its recent pickup of $2.9 billion, you can draw a straight line from the money to the exit row.

The hefty infusion, a risky move because revenues are down and this is not a trivial amount of debt, has already prompted announcements of schedule changes … for the better. American is planning to increase flying in New York, Chicago, Los Angeles, Dallas-Fort Worth and Miami, though there will be fewer flights in Raleigh/Durham and St. Louis. Look for 57 new daily flights at O’Hare, six more from JFK, two in Los Angeles and anther 19 in Dallas-Fort Worth.

The news comes at a time when most airlines are cutting back service as a way to control costs due to reductions in passenger traffic.

Since we’ve seen what fewer flights can mean – more crowded flights, less legroom and higher odds of getting stuck in a middle seat – the financial breathing room that American has gained could actually give you more actual breathing room the next time you fly. If American fill these extra seats (at the expense of your throwing up the armrest and claiming two), it will generate more revenue, which could turn into real growth. Maybe some of that cash will be used to bring back some amenities.

Blankets, anyone?

JetBlue, United jump on Twitter for cheap tix

by Tom Johansmeyer on

JetBlue and United Airlines are pushing the first taste of cheap fares out on Twitter. They hope to use what USA Today calls the “uber-trendy form of messaging” to push seats on flights that may have vacant seats prior to wheels-up. After deals appear, they don’t always stick around long. JetBlue’s first “Cheep” (a variation on “tweet”) offered a $9 one-way fare from JFK to Nantucket. The model that’s emerging puts JetBlue’s fare tweets out on Monday mornings and offers around eight hours to act on them.

United Airlines has had its “twares” in action since May, and the element of surprise is a factor. The discounts can be released without warning, and there’s no discernable schedule. The deals can live for as little as two hours, forcing Twitter-using travelers to act fast.

NYC best city for singles (if you own a computer)

by Tom Johansmeyer on

Looking for love lust on your next vacation? Your next trip should be to New York, which has knocked Atlanta out of the top spot as the best city in the country for singles. And, why wouldn’t it? You have more than 8 million people chasing their dreams, so the choices are endless. There’s one of everything, so in one night, you could meet every flavor of scumbag available. But, there’s an upside to all this variety, so don’t give up hope yet!

Atlanta fell to the sixth position, with Boston, Chicago, Seattle and Washington, D.C. occupying the second through fifth spots in this annual survey by Forbes.com. San Francisco, Los Angeles, Milwaukee and Philadelphia round out the top 10.

This is New York’s first time in the #1 spot, which evaluates 40 of the largest cities in the United States for “coolness, cost of living alone, culture, job growth, online dting, nightlife, and ratio of singles to the entire population.” Notably absent are: willingness of hot girls in that city to talk to you, cost of buying several drinks for someone genuinely out of your league and adult bookstores nearby to help you when you strike out yet again.

Well … I think New York would win on that one, too.

What pushed New York into the winners circle, apparently, was the number of people with online dating accounts. The city has more people hitting the web to scratch their various itches than any other city in the country.

Top U.S. ports of entry

by Tom Johansmeyer on

Eighty-six percent of international arrivals to the United States come through only 15 ports of entry, according to data from the Department of Transportation. This represents an increase of one percentage point over last year (measuring the first five months of 2008 to the first five months of 2009.

The top three ports of entry are hardly surprising: New York (specifically JFK), Miami and Los Angeles. How insane is it that the leading first impression of our country is in Queens?! These three spots were responsible for 40 percent of all arrivals so far this year. Their share of all international arrivals – trending with the top 15 – increased by roughly one percentage point year-over-year. Miami, Orlando and Philadelphia were the only members of this group to post increases.

Six of the top 15 ports of entry into the United States sustained double-digit decreases in arrivals. The stream through San Francisco is off 18 percent, moving it into the #6 position on the list (behind Honolulu). Detroit dropped 32 percent, pushing it to fifteenth, behind Boston and Philadelphia, and Agana, Guam fell 9 percent, putting it behind Chicago on the list.

Some hotel futures at risk

by Tom Johansmeyer on

The number of hotels defaulting on their loans surged 125 percent in May and June this year. Travel is down (no shit), which has an obvious effect on the top line. When there’s no money coming in, it’s hard to send cash out to meet some pretty hefty obligations. So, if none comes in, none can go out … and defaults start to rise.

Some high-profile properties have defaulted already, including the Four Seasons and Renaissance Stanford Court Hotel – both in San Francisco – and the W Hotel in San Diego. Nobody’s safe in this market. Outside California, 13 hotel loans adding up to $596 million became delinquent in June alone. Most of the carnage came from Phoenix, Las Vegas and New York City.

Of course, the defaults don’t spell the end for these properties. There is always the chance that the loan terms can be changed or the hotels can be sold. There’s a long way between defaulting loans and closed doors.