NBTA Preview Report
I was chatting with Forrester's Henry Hardeveldt and we both were bemoaning the fact that the process of travel arranging is still stuck in the dark ages. He shared with me some of the results from their recent piece on the 3 types of business traveller.
Here is a summary http://www.forrester.com/Research/Document/Excerpt/0,7211,46033,00.html
The heavily managed travellers who fly the most frequently basically don't like the process at all. (I realize this comes as a great shock to everyone).
While not having an epiphany and revolutionizing the process of travel arranging - Sabre has made a step in the right direction with their new Travel Arranger portal on GetThere.
I am looking forward to getting a demo of this tool because the general process is still stuck in the dark ages.
For those of you not going to NBTA in LA next week here is a microsite with some of the functions explained:
http://www.getthere.com/travelarranger/
I still live in hope that there will be a better solution across the board. While I am looking forward to a revolution in this whole process - I fear we will be forced to accept evolutionary steps. This tool sounds like at least its movement in the right direction.
Cheers
Timothy
EK's A380s have Showers on board!
OK so Emirates is using the term "indulgence" to describe their premium classes on the upper deck of the new A380 services which start DXB-JFK on August 1st - that's next week.
Outdoing Singapore Air - EK will offer a premium service which initially looked rather tame - but the actual pictures (and from sneak peaks comments from a few who have actually been on the ship) this is going to be one humdinger of a service.
The Biz Class cabins are none too shabby either. You get your very own minibar at your seat.
The clear water in product differentiation of the Middle East Carriers from the rest of the world is going to be growing.
Thank you Emirates for bringing back a little of the opulence to the process of travel. Now if I can only figure out a way to wangle a seat on one of these puppies.
Cheers
Timothy
Outdoing Singapore Air - EK will offer a premium service which initially looked rather tame - but the actual pictures (and from sneak peaks comments from a few who have actually been on the ship) this is going to be one humdinger of a service.
The Biz Class cabins are none too shabby either. You get your very own minibar at your seat.
The clear water in product differentiation of the Middle East Carriers from the rest of the world is going to be growing.
Thank you Emirates for bringing back a little of the opulence to the process of travel. Now if I can only figure out a way to wangle a seat on one of these puppies.
Cheers
Timothy
The Professor is travelling and will be in LA for NBTA annual Shindig
I hope to bring you some tidbits from what is happening and the general sentiment of the corporate travel managers.
Direct from the bar stool research council - I think we should be able to put a thermometer in the mouths of the corporate travel market and see what's making them sick and what the various doctor's think are the remedies to what ails the patients.
Cheers
Timothy
Direct from the bar stool research council - I think we should be able to put a thermometer in the mouths of the corporate travel market and see what's making them sick and what the various doctor's think are the remedies to what ails the patients.
Cheers
Timothy
Qantas's Geoff Dixon outlines a new world order - is he right?
So we are now headed for the era of the mega carrier and little else. Oh yes by the way your fares are going to double and your service will suck but apart from that we will be all right Jack.
http://www.congresscheck.com/2008/07/25/qantas-boss-predicts-%E2%80%98new-world-order%E2%80%99/
I have to take issue and point out a few salient points to Mr Dixon's self serving remarks.
Lets start with the supposition that the airline network model is the right one. Clearly he doesn't think so because he has put his eggs into the LCC model with Jetstar. Just because the FNC (Full Service Network Carrier) model is broken in so many places doesn't mean that other models can fly. If you will pardon the pun.
The LCC model is alive and well. (Ryanair and Air Asia)
The HVC (Hybrid Value Carrier) model is alive and well (Aer Lingus and EasyJet)
The niche market is constantly evolving. The results have been mixed over the last year. We have seen the outright failure of the business only carriers. Yet the niche business services continue to flourish. (Eg LH/AF/KL/BA/LX biz class services).
Where he is right is that this is a step up in terms of what an airline must do. This is where the current crop of legacy airline managements need to have their heads examined. The model needs changing and some airlines will be successful at this and others will just fail. The airline business is high risk and not necessarily high value. There is a great deal of clear water between the consistently successful players and the rest of the market.
As Exhibit A in the "fuel is the root cause of all evil" debate - I present Allegiant Airlines. An airline that is continuing to fly allegedly fuel inefficient MD80 series aircraft.
So the view of the world dominated by the mega boys is not necessarily one I can subscribe to. I suggest you go and read a previous blog entry that I posted earlier this year. I believe now is actually a good time to start an airline. Critical lift in certain markets is needed. If you have planes and can move them to those markets - then you can now make money without fear of intervention by the incredibly shrinking big boys.
If Mr Dixon's view of the world is right we are in for a large amount of grey mice. Let's hope there are a lot of colorful parrots out there who will seize the opportunity and bring in a new crop of airlines with low costs and more appropriate business models that will hopefully make the industry more fundamentally sound.
Its nice to dream
Cheers
Timothy
http://www.congresscheck.com/2008/07/25/qantas-boss-predicts-%E2%80%98new-world-order%E2%80%99/
I have to take issue and point out a few salient points to Mr Dixon's self serving remarks.
Lets start with the supposition that the airline network model is the right one. Clearly he doesn't think so because he has put his eggs into the LCC model with Jetstar. Just because the FNC (Full Service Network Carrier) model is broken in so many places doesn't mean that other models can fly. If you will pardon the pun.
The LCC model is alive and well. (Ryanair and Air Asia)
The HVC (Hybrid Value Carrier) model is alive and well (Aer Lingus and EasyJet)
The niche market is constantly evolving. The results have been mixed over the last year. We have seen the outright failure of the business only carriers. Yet the niche business services continue to flourish. (Eg LH/AF/KL/BA/LX biz class services).
Where he is right is that this is a step up in terms of what an airline must do. This is where the current crop of legacy airline managements need to have their heads examined. The model needs changing and some airlines will be successful at this and others will just fail. The airline business is high risk and not necessarily high value. There is a great deal of clear water between the consistently successful players and the rest of the market.
As Exhibit A in the "fuel is the root cause of all evil" debate - I present Allegiant Airlines. An airline that is continuing to fly allegedly fuel inefficient MD80 series aircraft.
So the view of the world dominated by the mega boys is not necessarily one I can subscribe to. I suggest you go and read a previous blog entry that I posted earlier this year. I believe now is actually a good time to start an airline. Critical lift in certain markets is needed. If you have planes and can move them to those markets - then you can now make money without fear of intervention by the incredibly shrinking big boys.
If Mr Dixon's view of the world is right we are in for a large amount of grey mice. Let's hope there are a lot of colorful parrots out there who will seize the opportunity and bring in a new crop of airlines with low costs and more appropriate business models that will hopefully make the industry more fundamentally sound.
Its nice to dream
Cheers
Timothy
Sold - One Airline - Cheap. Frontier gets funding
Frontier managed to find a savior at the last minute. For $79 million DIP financing - Perseus basically picked up the ailing Denver based carrier. They will end up with the option to purchase just under 80% of the airline for $100 million.
http://www.marketwatch.com/news/story/frontier-airlines-receives-commitment-75/story.aspx?guid={F34ECFC2-4879-4D00-8054-DDDB7E6CFD01}&dist=hppr
I think they got a good deal. Whether it is a wise deal will remain to be seen.
I have high hopes for the chaps at F9. They will need all the luck they can get with UA squeezing them from the top and WN from below. However consider the situation. WN is not going to grow that much (however given their size "not much" is actually quite a lot since they are now the world's #1 passenger mover). UAL is dropping 25% of its fleet. So F9 may just be able to dodge the bullet if they can price their product right and get the mix right. I think they will unless they are incredibly stupid. Well this is the airline industry so you know what that means.
Cheers
Timothy
http://www.marketwatch.com/news/story/frontier-airlines-receives-commitment-75/story.aspx?guid={F34ECFC2-4879-4D00-8054-DDDB7E6CFD01}&dist=hppr
I think they got a good deal. Whether it is a wise deal will remain to be seen.
I have high hopes for the chaps at F9. They will need all the luck they can get with UA squeezing them from the top and WN from below. However consider the situation. WN is not going to grow that much (however given their size "not much" is actually quite a lot since they are now the world's #1 passenger mover). UAL is dropping 25% of its fleet. So F9 may just be able to dodge the bullet if they can price their product right and get the mix right. I think they will unless they are incredibly stupid. Well this is the airline industry so you know what that means.
Cheers
Timothy
25 July 2008
In the river of blood red ink there are .... 1st Half Financials Reviewed Podcast
Come here the professor and Mrs O'Leary (not from Europe) debate the sea of red ink that is the 1/2 year reporting results.
A light hearted delivery of a bad situation
Cheers
A light hearted delivery of a bad situation
Cheers
24 July 2008
Whose missing in the Star Crossed Love Fest?
The announcement today of Continental's formal application to join the Star Alliance and join with United Airlines and 8 other Star members in creating a gigantic transatlantic alliance has a missing member.
It looks like US Airways is being cold shouldered here.
Additionally a special "gang of 4" (AC, CO, UA, LH) has been formed to compete with the other SkyTeam "gang of 4" (AF, KL, NW, DL) and the proposed "gang of 3" (BA, AA, IB) Oneworld members to create another transatlantic JV.
I hope you are following so far.
Well the Skyteam4 made a great deal of noise about this when they started 3 services LHR-LAX, SLC-CDG and JFK-LYS. True seamless experience right?
Actually no.
I tried to purchase a ticket and upgrade from LAX-LHR using my super wonderful status on DL and was told (in no uncertain manner) that no this was actually an Air France flight and that therefore no upgrade for Delta passengers was allowed.
So much for this great idea. This new Star love fest (sans US Airways) should be a true seamless service but like many things in the airline business - its all show and PR rather than any actual substance.
When will they ever change? Comments directly to the Professor or leave them here.
Cheers
Timothy
It looks like US Airways is being cold shouldered here.
Additionally a special "gang of 4" (AC, CO, UA, LH) has been formed to compete with the other SkyTeam "gang of 4" (AF, KL, NW, DL) and the proposed "gang of 3" (BA, AA, IB) Oneworld members to create another transatlantic JV.
I hope you are following so far.
Well the Skyteam4 made a great deal of noise about this when they started 3 services LHR-LAX, SLC-CDG and JFK-LYS. True seamless experience right?
Actually no.
I tried to purchase a ticket and upgrade from LAX-LHR using my super wonderful status on DL and was told (in no uncertain manner) that no this was actually an Air France flight and that therefore no upgrade for Delta passengers was allowed.
So much for this great idea. This new Star love fest (sans US Airways) should be a true seamless service but like many things in the airline business - its all show and PR rather than any actual substance.
When will they ever change? Comments directly to the Professor or leave them here.
Cheers
Timothy
23 July 2008
Today's show is brought to you buy the word STAYCATION
I am not a huge fan of trendy words - a few years ago it was Metro-sexual. Last year's word was a Colbertism - Truthiness.
But now we have this year's word - STAYCATION.
In true objective journalistic tradition of seeking out the truth wherever it may be - I bring you today's example which has now spread into the vernacular and of course has been picked up by Advertising. Special thanks to Professor Stuart for this one.
So the attached ad has been emailed out to Aer Lingus's newsletter recipients and is now shown on their website. Click on the title and you will also be taken to their website.
I leave you to judge the merits of the use of the term.
Cheers
Timothy
PS Someone please forward this to Leno before he goes off the air.
An Island of Black in a Sea of Red Ink - Allegiant
NOTE TO READERS - please read all of this post.
Allegiant announced profits today. A stellar achievement it would seem in the labours of all the other Hercules wannabes.
There is clearly something that they are doing right that the Network Legacy Carriers are not. T2 and Flight are working on a Low Cost Carrier study and our analysis seems to bear out some interesting truths as to why the legacy carrier model is broken. Please ping me directly if you are interested in getting early preview access.
In the mean time - big airlines - read this and weep.
Allegiant bucks trend, remains profitable
Leisure carrier Allegiant Airlines posted a second-quarter profit of $2.6 million (13 cents per share). The Lansing State Journal says that's "down sharply from a profit of $10 million, or 50 cents per share," from the same period a year ago. Still, that result allowed Allegiant to hold on to its status as one of the few U.S. carriers to turn a profit during the current industry downturn. "We had very good results during our second quarter. In spite of exceptional headwinds from fuel, we are yet again one of the few companies in our space who were profitable," Allegiant CEO Maurice Gallagher Jr. says in a statement (PDF file).
And just a little postscript. Allegiant does this with Fuel inefficient planes such as the MD80s of mixed heritage that makes up their fleet.
Allegiant announced profits today. A stellar achievement it would seem in the labours of all the other Hercules wannabes.
There is clearly something that they are doing right that the Network Legacy Carriers are not. T2 and Flight are working on a Low Cost Carrier study and our analysis seems to bear out some interesting truths as to why the legacy carrier model is broken. Please ping me directly if you are interested in getting early preview access.
In the mean time - big airlines - read this and weep.
Allegiant bucks trend, remains profitable
Leisure carrier Allegiant Airlines posted a second-quarter profit of $2.6 million (13 cents per share). The Lansing State Journal says that's "down sharply from a profit of $10 million, or 50 cents per share," from the same period a year ago. Still, that result allowed Allegiant to hold on to its status as one of the few U.S. carriers to turn a profit during the current industry downturn. "We had very good results during our second quarter. In spite of exceptional headwinds from fuel, we are yet again one of the few companies in our space who were profitable," Allegiant CEO Maurice Gallagher Jr. says in a statement (PDF file).
And just a little postscript. Allegiant does this with Fuel inefficient planes such as the MD80s of mixed heritage that makes up their fleet.
Malev's Dilemma - same as everyone else's
Malev is axing its two long haul routes to Toronto Pearson and New York JFK.
So this is a good indicator of the dilemma of the marginal carriers. It is actually a good example of how the network carrier model is broken.
For Malev to make money it would need to charge an increment over its fares last year of approx $2000 in C class and about $500 in Y class to cover just the increase in direct fuel costs alone. Malev has 2 767s - a -300 and a -200. Remember it probably has to rotate one out for one day a week for a B check and then hire in a replacement when they go for C and D checks.
Not sustainable.
So Malev - wise decision.
Cheers
Timothy
So this is a good indicator of the dilemma of the marginal carriers. It is actually a good example of how the network carrier model is broken.
For Malev to make money it would need to charge an increment over its fares last year of approx $2000 in C class and about $500 in Y class to cover just the increase in direct fuel costs alone. Malev has 2 767s - a -300 and a -200. Remember it probably has to rotate one out for one day a week for a B check and then hire in a replacement when they go for C and D checks.
Not sustainable.
So Malev - wise decision.
Cheers
Timothy
If you long for the Nostalgia of Flying
The Professor is very nostalgic when it comes to old aircraft.
So for those of you who also share this sense of nostalgia for airlines and airliners.
Go here: if not look away and click on something more mundane and current.
Hint - turn on your sound and turn off other sound based apps.
Cheers
Timothy
http://www.funstufftosee.com/goodbye.html
So for those of you who also share this sense of nostalgia for airlines and airliners.
Go here: if not look away and click on something more mundane and current.
Hint - turn on your sound and turn off other sound based apps.
Cheers
Timothy
http://www.funstufftosee.com/goodbye.html
United Cuts 100 Aircraft 7,000 jobs but not enough
.......Says the Professor
OK so United is shocking everyone with its dramatic cuts for the fall. 100 Aircraft (all its B737s and a few widebodies) and 7,000 staff.
However the Professor is going to say it's not enough.
Using our standard review of publicly available data - we believe that the number should be closer to 13,000 staff cuts. (FTEs).
This would only enable United to stay at the same rates as it is today. The metric I am using is employees per plane. So from our analysis the cuts do not do the job of reducing the red ink.
Let me drill into the numbers a little further. United is second only to Northwest in reducing its maintenance workers. (Down nearly 70% 2000 to 2007). Thus even if it outsourced all its maintenance it would not make a big enough dent in its employee numbers and of course it would not lower the costs that significantly. So just cutting for the sake of cutting needs a pretty decent plan.
So message to Mr Tilton - if you want to improve your numbers go back to the drawing board and cut more - OR change the model. Oh yes and if you gave back some of your Chapter 11 exit cash bonus that would be nice.
Message to everyone else - its not cutting its changing the model.
Cheers
Timothy
OK so United is shocking everyone with its dramatic cuts for the fall. 100 Aircraft (all its B737s and a few widebodies) and 7,000 staff.
However the Professor is going to say it's not enough.
Using our standard review of publicly available data - we believe that the number should be closer to 13,000 staff cuts. (FTEs).
This would only enable United to stay at the same rates as it is today. The metric I am using is employees per plane. So from our analysis the cuts do not do the job of reducing the red ink.
Let me drill into the numbers a little further. United is second only to Northwest in reducing its maintenance workers. (Down nearly 70% 2000 to 2007). Thus even if it outsourced all its maintenance it would not make a big enough dent in its employee numbers and of course it would not lower the costs that significantly. So just cutting for the sake of cutting needs a pretty decent plan.
So message to Mr Tilton - if you want to improve your numbers go back to the drawing board and cut more - OR change the model. Oh yes and if you gave back some of your Chapter 11 exit cash bonus that would be nice.
Message to everyone else - its not cutting its changing the model.
Cheers
Timothy
How the Recession is Biting - Part 1 Corporates
Dearly Beloved,
I have been writing about the impact of the downturn on the supply side of the equation for quite some time. So I thought I would look at the other side of the fence for a while and see how it is impacting the market from the users perspective. As you could call me an unmanaged traveler - I don't work directly for a large corporation - however I do work as a consultant for corporations and government entities who have differing levels of a corporate travel policy. These range from the ultra strict to the "do what you have to."
In this first piece - I was writing my own extensive story and looking to report on some real world examples. In fact I was about half way through writing the dang thing. However I had today's Travel Weekly newsletter cross my desk. In this edition a long article addressing the subject came from Nadine Godwin - probably one of the more senior industry writers going back many years and a former TW Editor. Her perspective and article could not be bettered so I encourage you to go and read it. You will need to sign up but it is worth the weight.
Also my old friend Steven Schoen the Travel Manager for Siemens and probably one of the real experts of this space has bared his soul on what can be done. So read the side bar story as well.
http://www.travelweekly.com/article.aspx?id=176914
In a follow up article I will talk about the impact on the leisure side of the house.
Cheers
Timothy
I have been writing about the impact of the downturn on the supply side of the equation for quite some time. So I thought I would look at the other side of the fence for a while and see how it is impacting the market from the users perspective. As you could call me an unmanaged traveler - I don't work directly for a large corporation - however I do work as a consultant for corporations and government entities who have differing levels of a corporate travel policy. These range from the ultra strict to the "do what you have to."
In this first piece - I was writing my own extensive story and looking to report on some real world examples. In fact I was about half way through writing the dang thing. However I had today's Travel Weekly newsletter cross my desk. In this edition a long article addressing the subject came from Nadine Godwin - probably one of the more senior industry writers going back many years and a former TW Editor. Her perspective and article could not be bettered so I encourage you to go and read it. You will need to sign up but it is worth the weight.
Also my old friend Steven Schoen the Travel Manager for Siemens and probably one of the real experts of this space has bared his soul on what can be done. So read the side bar story as well.
http://www.travelweekly.com/article.aspx?id=176914
In a follow up article I will talk about the impact on the leisure side of the house.
Cheers
Timothy
22 July 2008
Are Airlines Cheating on Flight Cancellation Compensation?
Dearly beloved
Every year there are a large number of hassles with equipment and weather outages. But this is to be expected in any times. In 2007 we had several major - indeed spectacular - disruptions in the winter of discontent that saw jetBlue meltdown its operations on two separate occasions.
So where are we now? In 2008 so far this year according to published news reports things are not good. Thus far for the first 6 months of the year there have been over 65,000 flights canceled. That is twice for all the number of 2007.
http://seattletimes.nwsource.com/html/travel/2008043947_webcanceledflights10.html
But don't worry the FAA and DOT have implemented new compensation for passengers whose flights are disrupted. That should fix it right?
Er - actually no. Now anything that is what it is gets labeled as a "weather disruption" and is not subject to any compensation.
For your reading pleasure I enclose a response to a request for compensation due to Delta's policy - not weather disruption.
Start with my formal complaint (at the bottom) and work back up to the reply at the top.
Sounds remarkably like a catch 22 problem. Don't you think? So are the airlines cheating? The numbers indicate that they are - the amount paid out according to the DOT has not increased yet the number of flights canceled is running at 4x. Something doesn't sound or feel right
Thanks Delta - my loyalty to you shows no bounds.
Timothy
EMAIL CONVERSATION FOLLOWS:(Hint start at the bottom first).
Dear Mr. O'Neil Dunne,
Thank you for your e-mail describing the problem you experienced.
Our goal is to make your travel experience as smooth and enjoyable as possible, and we regret you didn?t receive the high level of service we strive to provide. Our airport representatives are expected to always be responsive, and offer precise, complete information. It sounds like that didn?t happen in this case, and we will continue to make efforts to improve in this area.
When traveling from U.S. Cities, Puerto Rico, and the U.S. Virgin Islands, all passengers must be at the gate at least 15 minutes before the scheduled departure time. Passengers who do not comply with the published check-in times are subject to having their seats released and subject to re-assignment.
Federal regulations require an airline to give compensation to a passenger who is denied boarding on a flight due to an oversold situation. This particular rule is not applicable in the event of a flight irregularity such as a mechanical or weather delay. Accordingly, we must respectfully decline your request.
Mr.O'Neil Dunne, thank you again for giving us an opportunity to respond to your concern. We very much appreciate your Medallion loyalty to Delta and look forward to the privilege of serving you again soon.
Sincerely,
Mandisa T. Reid
Manager
Customer Care
Original Message Follows:
------------------------
PERSONAL INFORMATION:
Name: Mr Timothy O Neil Dunne
Email Address : timothyo@t2ni.com
SkyMiles Number: 0543535041
COMMENT DETAILS:
Email about Past/Future travel: Past
Nature of Comment: Complaint Concern
Email Pertaining to: Flight_Delay_Cancellation Email about Other topic:
Comments:
Below (in reverse) is my itinerary.
03 Jul 2008 Delta Flight 1051 from Atlanta, GA to Seattle, WA (YV)
02 Jul 2008 Delta Flight 4481 from Manchester, NH to Atlanta, GA (L)
30 Jun 2008 Delta Flight 5169 from Cincinnati, OH to Manchester, NH (K)
30 Jun 2008 Delta Flight 1632 from Seattle, WA to Cincinnati, OH (KV)
The nature of my complaint is twofold.
1. The decision to fly or not fly was not provided by Local Staff in Manchester and no attempt to accommodate passengers was made. Given that the flight would have been an illegal connection, the ground staff should not have boarded passengers such as myself with tight connections.
2. At Atlanta we arrived technically early and i could easily have made the connection except for the fact that the ground staff took 30 minutes to get the hand bags off the aircraft.
3. On arriving at the gate with 10 minutes to spare (the agent closed the door on me) I was told i had arrived late. On looking at the boarding list I saw that in fact the ground agent had in fact closed the flight early (at 2025)and had actually given away my seat BEFORE the due time.
4. The accomodation desk in the terminal was inaccurate with information provided to passengers and failed to accommodate me correctly. I was told SPECIFICALLY that i had a confirmed reservation on the next day - which turned out not to be true. If you investigate the PNR history you will see that in fact the seat was only cleared when I called to the agent and had them re-book the seat on the flight as opposed to the standby status the airport agent had booked me on.
Therefore in light of the fact that I was unable to travel on the correct flight - not to mention the appalling way customers are being treated by your airport staff - i request a DOT mandated compensation as the misconnect was due to Delta action not the stated Weather related delay which contributed but did not actually cause the misconnect.
Would you like a reply to your e-mail?:yes
FLIGHT 1:
Flight Number : 4481
Date : 02jul08
Departure City : MHT
Ticket Number : 2347270848
Every year there are a large number of hassles with equipment and weather outages. But this is to be expected in any times. In 2007 we had several major - indeed spectacular - disruptions in the winter of discontent that saw jetBlue meltdown its operations on two separate occasions.
So where are we now? In 2008 so far this year according to published news reports things are not good. Thus far for the first 6 months of the year there have been over 65,000 flights canceled. That is twice for all the number of 2007.
http://seattletimes.nwsource.com/html/travel/2008043947_webcanceledflights10.html
But don't worry the FAA and DOT have implemented new compensation for passengers whose flights are disrupted. That should fix it right?
Er - actually no. Now anything that is what it is gets labeled as a "weather disruption" and is not subject to any compensation.
For your reading pleasure I enclose a response to a request for compensation due to Delta's policy - not weather disruption.
Start with my formal complaint (at the bottom) and work back up to the reply at the top.
Sounds remarkably like a catch 22 problem. Don't you think? So are the airlines cheating? The numbers indicate that they are - the amount paid out according to the DOT has not increased yet the number of flights canceled is running at 4x. Something doesn't sound or feel right
Thanks Delta - my loyalty to you shows no bounds.
Timothy
EMAIL CONVERSATION FOLLOWS:(Hint start at the bottom first).
Dear Mr. O'Neil Dunne,
Thank you for your e-mail describing the problem you experienced.
Our goal is to make your travel experience as smooth and enjoyable as possible, and we regret you didn?t receive the high level of service we strive to provide. Our airport representatives are expected to always be responsive, and offer precise, complete information. It sounds like that didn?t happen in this case, and we will continue to make efforts to improve in this area.
When traveling from U.S. Cities, Puerto Rico, and the U.S. Virgin Islands, all passengers must be at the gate at least 15 minutes before the scheduled departure time. Passengers who do not comply with the published check-in times are subject to having their seats released and subject to re-assignment.
Federal regulations require an airline to give compensation to a passenger who is denied boarding on a flight due to an oversold situation. This particular rule is not applicable in the event of a flight irregularity such as a mechanical or weather delay. Accordingly, we must respectfully decline your request.
Mr.O'Neil Dunne, thank you again for giving us an opportunity to respond to your concern. We very much appreciate your Medallion loyalty to Delta and look forward to the privilege of serving you again soon.
Sincerely,
Mandisa T. Reid
Manager
Customer Care
Original Message Follows:
------------------------
PERSONAL INFORMATION:
Name: Mr Timothy O Neil Dunne
Email Address : timothyo@t2ni.com
SkyMiles Number: 0543535041
COMMENT DETAILS:
Email about Past/Future travel: Past
Nature of Comment: Complaint Concern
Email Pertaining to: Flight_Delay_Cancellation Email about Other topic:
Comments:
Below (in reverse) is my itinerary.
03 Jul 2008 Delta Flight 1051 from Atlanta, GA to Seattle, WA (YV)
02 Jul 2008 Delta Flight 4481 from Manchester, NH to Atlanta, GA (L)
30 Jun 2008 Delta Flight 5169 from Cincinnati, OH to Manchester, NH (K)
30 Jun 2008 Delta Flight 1632 from Seattle, WA to Cincinnati, OH (KV)
The nature of my complaint is twofold.
1. The decision to fly or not fly was not provided by Local Staff in Manchester and no attempt to accommodate passengers was made. Given that the flight would have been an illegal connection, the ground staff should not have boarded passengers such as myself with tight connections.
2. At Atlanta we arrived technically early and i could easily have made the connection except for the fact that the ground staff took 30 minutes to get the hand bags off the aircraft.
3. On arriving at the gate with 10 minutes to spare (the agent closed the door on me) I was told i had arrived late. On looking at the boarding list I saw that in fact the ground agent had in fact closed the flight early (at 2025)and had actually given away my seat BEFORE the due time.
4. The accomodation desk in the terminal was inaccurate with information provided to passengers and failed to accommodate me correctly. I was told SPECIFICALLY that i had a confirmed reservation on the next day - which turned out not to be true. If you investigate the PNR history you will see that in fact the seat was only cleared when I called to the agent and had them re-book the seat on the flight as opposed to the standby status the airport agent had booked me on.
Therefore in light of the fact that I was unable to travel on the correct flight - not to mention the appalling way customers are being treated by your airport staff - i request a DOT mandated compensation as the misconnect was due to Delta action not the stated Weather related delay which contributed but did not actually cause the misconnect.
Would you like a reply to your e-mail?:yes
FLIGHT 1:
Flight Number : 4481
Date : 02jul08
Departure City : MHT
Ticket Number : 2347270848
There WILL be Blood - Podcast
This week's podcast is worth a listen.
Henry Hardeveldt, Addison and I wax lyrically about the current state of red ink. It is not a pretty sight.
Good quick overview of the industry. Henry is always insightful and one of the best analysts around.
Cheers
Timothy
http://iagblog.podomatic.com/entry/2008-07-22T10_55_29-07_00
Henry Hardeveldt, Addison and I wax lyrically about the current state of red ink. It is not a pretty sight.
Good quick overview of the industry. Henry is always insightful and one of the best analysts around.
Cheers
Timothy
http://iagblog.podomatic.com/entry/2008-07-22T10_55_29-07_00
21 July 2008
Crisis Open Letter from Bob Crandall and BTC
Dear Readers
In the interests of at least getting this Administration's attention on energy and the environment - I think you should read the attached letter from BTC and if you are so moved take a copy and send it on to the powers (however diminished) that be.
Please note I am not endorsing this effort as frankly I think it will fall on deaf ears. But I do think everyone should be focusing all political leaders on practical solutions and a clear policy on energy and the environment. Last week Al Gore challenged the US to be self sufficient in Electricity Generation in 10 years using renewable energy sources. That is both a practical and achievable goal that we should all endorse. Bio Fuels could be created using existing technologies and all we would lose is the state of West Virginia to a Bio Fuel farm (not my joke BTW).
In all seriousness though we need a decent policy and we need a plan to go forward. "Drilling for More Oil" is not the answer. Perhaps our industry, as a user of oil based products even if it is only generating 2% of the carbon footprint, needs to be a leader in this battle.
The TEXT of Crandall's letter with the BTC follows:
Cheers
Timothy
Dear Travel Industry Colleagues,
As you all know, our airlines – and every participant in the travel and tourism industry – are severely threatened by rapidly rising fuel prices.
While there is little doubt that increasing demand and diminishing supplies are partially responsible, the extraordinary increase in the dollar price of fuel has much to do with the government’s failure to articulate and implement either a national energy policy or a national transportation policy. While many factors have had an impact, the failure of our national leaders to do realistic energy and transportation planning is by any measure the primary problem.
We ask that you consider signing an “Open Letter” to President Bush. Assuming widespread support from leaders in the travel industry, we believe the letter might be published in the Op-Ed pages of one or more newspapers and would attract widespread attention on the Internet. More importantly, we believe that by adding our collective voices to those of others who have called for urgent attention to the energy crisis, we might energize all the players in this year’s political drama.
The proposed “Open Letter” is pasted in below for your review. If you can lend your signature to this letter, please go to http://tinyurl.com/5n3e8l by COB on Monday, July 28.
Please consider sending this email invitation to your colleagues around the industry. We seek the support of the entire travel and tourism industry.
Best wishes,
Bob Crandall, former Chairman and CEO, American Airlines
Kevin Mitchell, Chairman, Business Travel Coalition
+++
OPEN LETTER
July [ ], 2008
The Honorable George W. Bush
President of the United States
The White House
Washington, DC 20500
Dear President Bush,
Sixty years ago this month, President Truman convened the last special session of Congress of modern times. “The urgent needs of the American people require our presence here today,” implored the President before a joint session of Congress which grappled with rising inflation, a shortage of electrical power and concern about commodity speculation.
Mr. President, America is now engulfed in a full-blown and deepening energy crisis which is causing irreparable harm to American families, workers, businesses, communities and the economy – and worse lies ahead.
We must find solutions to our energy problem – but each day of delay worsens the problem. T. Boone Pickens, Al Gore and others have proposed ways to harness existing and new technologies. But national leadership – your leadership – is needed to translate aspirations to reality and transform fear into hope.
We urge you to call a special session of Congress beginning August 9, 2008 for the sole purpose of debating our energy alternatives and enacting a coherent national energy policy.
Members of Congress should welcome such an initiative. The public knows we are now importing 70% of our petroleum and that continuing as we have is impossible. In the absence of a sound, long-term energy policy, the fear now taking its toll on businesses and jobs will spread. In such an environment, no Congressional seat will or should be safe this November.
Many in Congress believe that speculation lies at the root of the problem. Our view is that some steps to curb speculation may be necessary; however, simply curbing speculation will not solve our long-term energy problem. Congress’ focus on some meaningful short-term solutions is laudable, but we do not want to squander an unprecedented opportunity to focus our citizens’ concerns and create a critically needed long-term plan.
Many of us in the travel industry – which is being decimated by rapidly rising fuel prices and uncertainty about the future -- believe that curbing speculation may have merit, but know it is not the whole answer. And we, like other citizens, are weary of partisan posturing, which pits one against another, i.e. those seeking more intensive drilling against those who advocate limiting speculation or those urging use of the U.S. Strategic Petroleum Reserve or those supporting other solutions. Our view is that we need to do all we can on every front, but that optimizing our efforts requires an integrated, comprehensive, well thought out national energy policy.
Our central problem is confidence – confidence now eroded by the perception that the most powerful country in the world, a country consuming 24% of the world’s output and spending $700 billion annually to continue doing so, lacks the political will to address the problem.
We believe that speculation is a symptom of our problem, and not its cause. Speculation would be less virulent were it not for the expectation that oil prices will increase and the dollar will weaken because the United States has neither energy nor fiscal policies adequate to the challenges ahead.
A coherent, long-term national energy policy framed and supported by a bipartisan majority of the Congress, before the Democratic and Republican conventions, would reverse the perception that America can no longer deal with her problems.
Truman once said, “Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”
Mr. President, the time for leadership is now!
Sincerely,
[signatory]
[signatory]
[signatory]
The following physical address is associated with this mailing:
Business Travel Coalition
214 Grouse Lane, Suite 210
Radnor, PA 19087
In the interests of at least getting this Administration's attention on energy and the environment - I think you should read the attached letter from BTC and if you are so moved take a copy and send it on to the powers (however diminished) that be.
Please note I am not endorsing this effort as frankly I think it will fall on deaf ears. But I do think everyone should be focusing all political leaders on practical solutions and a clear policy on energy and the environment. Last week Al Gore challenged the US to be self sufficient in Electricity Generation in 10 years using renewable energy sources. That is both a practical and achievable goal that we should all endorse. Bio Fuels could be created using existing technologies and all we would lose is the state of West Virginia to a Bio Fuel farm (not my joke BTW).
In all seriousness though we need a decent policy and we need a plan to go forward. "Drilling for More Oil" is not the answer. Perhaps our industry, as a user of oil based products even if it is only generating 2% of the carbon footprint, needs to be a leader in this battle.
The TEXT of Crandall's letter with the BTC follows:
Cheers
Timothy
Dear Travel Industry Colleagues,
As you all know, our airlines – and every participant in the travel and tourism industry – are severely threatened by rapidly rising fuel prices.
While there is little doubt that increasing demand and diminishing supplies are partially responsible, the extraordinary increase in the dollar price of fuel has much to do with the government’s failure to articulate and implement either a national energy policy or a national transportation policy. While many factors have had an impact, the failure of our national leaders to do realistic energy and transportation planning is by any measure the primary problem.
We ask that you consider signing an “Open Letter” to President Bush. Assuming widespread support from leaders in the travel industry, we believe the letter might be published in the Op-Ed pages of one or more newspapers and would attract widespread attention on the Internet. More importantly, we believe that by adding our collective voices to those of others who have called for urgent attention to the energy crisis, we might energize all the players in this year’s political drama.
The proposed “Open Letter” is pasted in below for your review. If you can lend your signature to this letter, please go to http://tinyurl.com/5n3e8l by COB on Monday, July 28.
Please consider sending this email invitation to your colleagues around the industry. We seek the support of the entire travel and tourism industry.
Best wishes,
Bob Crandall, former Chairman and CEO, American Airlines
Kevin Mitchell, Chairman, Business Travel Coalition
+++
OPEN LETTER
July [ ], 2008
The Honorable George W. Bush
President of the United States
The White House
Washington, DC 20500
Dear President Bush,
Sixty years ago this month, President Truman convened the last special session of Congress of modern times. “The urgent needs of the American people require our presence here today,” implored the President before a joint session of Congress which grappled with rising inflation, a shortage of electrical power and concern about commodity speculation.
Mr. President, America is now engulfed in a full-blown and deepening energy crisis which is causing irreparable harm to American families, workers, businesses, communities and the economy – and worse lies ahead.
We must find solutions to our energy problem – but each day of delay worsens the problem. T. Boone Pickens, Al Gore and others have proposed ways to harness existing and new technologies. But national leadership – your leadership – is needed to translate aspirations to reality and transform fear into hope.
We urge you to call a special session of Congress beginning August 9, 2008 for the sole purpose of debating our energy alternatives and enacting a coherent national energy policy.
Members of Congress should welcome such an initiative. The public knows we are now importing 70% of our petroleum and that continuing as we have is impossible. In the absence of a sound, long-term energy policy, the fear now taking its toll on businesses and jobs will spread. In such an environment, no Congressional seat will or should be safe this November.
Many in Congress believe that speculation lies at the root of the problem. Our view is that some steps to curb speculation may be necessary; however, simply curbing speculation will not solve our long-term energy problem. Congress’ focus on some meaningful short-term solutions is laudable, but we do not want to squander an unprecedented opportunity to focus our citizens’ concerns and create a critically needed long-term plan.
Many of us in the travel industry – which is being decimated by rapidly rising fuel prices and uncertainty about the future -- believe that curbing speculation may have merit, but know it is not the whole answer. And we, like other citizens, are weary of partisan posturing, which pits one against another, i.e. those seeking more intensive drilling against those who advocate limiting speculation or those urging use of the U.S. Strategic Petroleum Reserve or those supporting other solutions. Our view is that we need to do all we can on every front, but that optimizing our efforts requires an integrated, comprehensive, well thought out national energy policy.
Our central problem is confidence – confidence now eroded by the perception that the most powerful country in the world, a country consuming 24% of the world’s output and spending $700 billion annually to continue doing so, lacks the political will to address the problem.
We believe that speculation is a symptom of our problem, and not its cause. Speculation would be less virulent were it not for the expectation that oil prices will increase and the dollar will weaken because the United States has neither energy nor fiscal policies adequate to the challenges ahead.
A coherent, long-term national energy policy framed and supported by a bipartisan majority of the Congress, before the Democratic and Republican conventions, would reverse the perception that America can no longer deal with her problems.
Truman once said, “Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”
Mr. President, the time for leadership is now!
Sincerely,
[signatory]
[signatory]
[signatory]
The following physical address is associated with this mailing:
Business Travel Coalition
214 Grouse Lane, Suite 210
Radnor, PA 19087
Devaluing one of the major currencies - FF miles
For those people who live inside the airline world - Frequent Flyer miles are not that important. For those who live outside - they are like a drug. Point Hounds, FF Junkies Mileheads - all good names for people who would other exhibit normal behavior. I have written before on the devaluation of the currency and now its here in spades.
Tim Hughes blog - The BOOT - has an excellent piece on the Qantas debacle which itself was a headline in yesterday's Sydney Morning Herald. One of the grant journalistic rants of all time.
http://www.smh.com.au/news/paul-sheehan/qantas-burns-a-precious-resource/2008/07/20/1216492247143.html?page=fullpage#contentSwap1
But this is not the only one.
BA has been really sneaky about theirs - it costs 5x in fees vs a Delta FF award to the UK from the USA. Why? I cannot figure out - they are both "free" tickets.
Delta has a new option which is based on the same calculator system as Qantas - its called Pay with Miles. So in fact that endearing behavior of Airlines - Obfuscation - now has a new face - multiple versions of the same currency - all designed to confuse the crap out of you.
Delta has another little trick up their sleeve too - You cannot use an upgrade coupon on Delta's Transatlantic Alliance flights if Delta is not the metal???
Wait - I remember that this was a totally equal JV between Delta and Air France. They share everything - right? Apparently not. DL's FF desk assured me that because the flight was operated by DL that I could not upgrade a ticket purchased and plated on DL.
So moral of the story - is that huge bank of FF miles out there has been silently devalued. Trillions of miles have had their real value - evaporate.
You have been warned.
Cheers
Timothy
Tim Hughes blog - The BOOT - has an excellent piece on the Qantas debacle which itself was a headline in yesterday's Sydney Morning Herald. One of the grant journalistic rants of all time.
http://www.smh.com.au/news/paul-sheehan/qantas-burns-a-precious-resource/2008/07/20/1216492247143.html?page=fullpage#contentSwap1
But this is not the only one.
BA has been really sneaky about theirs - it costs 5x in fees vs a Delta FF award to the UK from the USA. Why? I cannot figure out - they are both "free" tickets.
Delta has a new option which is based on the same calculator system as Qantas - its called Pay with Miles. So in fact that endearing behavior of Airlines - Obfuscation - now has a new face - multiple versions of the same currency - all designed to confuse the crap out of you.
Delta has another little trick up their sleeve too - You cannot use an upgrade coupon on Delta's Transatlantic Alliance flights if Delta is not the metal???
Wait - I remember that this was a totally equal JV between Delta and Air France. They share everything - right? Apparently not. DL's FF desk assured me that because the flight was operated by DL that I could not upgrade a ticket purchased and plated on DL.
So moral of the story - is that huge bank of FF miles out there has been silently devalued. Trillions of miles have had their real value - evaporate.
You have been warned.
Cheers
Timothy
What's Behind Carnival's Sudden U Turn on Agents?
It is interesting to see that Carnival - the world's largest cruise company - is suddenly rediscovering agents, at least in the USA market.
Why are they making such a big deal about this when they had been going down the direct path for quite a few years and why now?
I believe the answer could possibly lie in a number of factors over and above the stated reasons.
Obviously there is the simple issue of the product complexity. You should talk to an expert before plonking down your cash. But there are two very good reasons that lurk behind.
1. Risk of Buyers's remorse. Given the number of calls that a cruise generates - it is clear that the buyer wants to minimize the risk of making an incorrect decision.
2. Lack of air capacity.
The cruise companies are now just starting to see the impact of the lack of air. Having heaved a huge sigh of relief last year when they gave up commissions on air, the process this year has been - "don't bother us with air - get it yourself." I have spoken to several cruise lines reservations centers over the last few weeks and that is the standard answer from their call centers.
Well this has come unglued when the airlines cut back capacity. So paying full wack for the airline tickets is discouraging a lot of people from buying a cruise.
Oops!
So back to the trusty agents to put that right since agents have more patience and will actually do the searching for the customer for a seat to match the cabin. Thus its a win for everyone - the consumer gets someone to handle the hassle, the cruise supplier gets a willing and able partner and the agents get a rise in sales.
So everyone is happy right? Sure - at least until the buyers return and the air capacity comes back - then, well I am sure you can figure out what happens then.
Cheers
Timothy
Why are they making such a big deal about this when they had been going down the direct path for quite a few years and why now?
I believe the answer could possibly lie in a number of factors over and above the stated reasons.
Obviously there is the simple issue of the product complexity. You should talk to an expert before plonking down your cash. But there are two very good reasons that lurk behind.
1. Risk of Buyers's remorse. Given the number of calls that a cruise generates - it is clear that the buyer wants to minimize the risk of making an incorrect decision.
2. Lack of air capacity.
The cruise companies are now just starting to see the impact of the lack of air. Having heaved a huge sigh of relief last year when they gave up commissions on air, the process this year has been - "don't bother us with air - get it yourself." I have spoken to several cruise lines reservations centers over the last few weeks and that is the standard answer from their call centers.
Well this has come unglued when the airlines cut back capacity. So paying full wack for the airline tickets is discouraging a lot of people from buying a cruise.
Oops!
So back to the trusty agents to put that right since agents have more patience and will actually do the searching for the customer for a seat to match the cabin. Thus its a win for everyone - the consumer gets someone to handle the hassle, the cruise supplier gets a willing and able partner and the agents get a rise in sales.
So everyone is happy right? Sure - at least until the buyers return and the air capacity comes back - then, well I am sure you can figure out what happens then.
Cheers
Timothy
Good Resource on Climate Change Effect
Dear ALL
Today the Professor is going to provide a little education.
I have been looking at climate change with all the brouhaha over the European ETS - I thought it would be useful to see if someone had done a map interpretation. Well they have. The WEF (World Economic Forum) has the Global Risk Network. This is an emerging tool for coordinating resources. It still suffers from the subjective assessment of what determines a risk, that is a political issue more than anything else, but the facility is useful.
Click on the headline or copy this link into your browser for a cool set of maps. It says the last update is from 2006 but I suspect the resources themselves are more up to date.
Still it paints a very specific picture of the areas and hotspots of risk and the scale of climate change impact.
http://maps.maplecroft.com/loadmap?template=min&issueID=32&close=y
Cheers
Timothy
Today the Professor is going to provide a little education.
I have been looking at climate change with all the brouhaha over the European ETS - I thought it would be useful to see if someone had done a map interpretation. Well they have. The WEF (World Economic Forum) has the Global Risk Network. This is an emerging tool for coordinating resources. It still suffers from the subjective assessment of what determines a risk, that is a political issue more than anything else, but the facility is useful.
Click on the headline or copy this link into your browser for a cool set of maps. It says the last update is from 2006 but I suspect the resources themselves are more up to date.
Still it paints a very specific picture of the areas and hotspots of risk and the scale of climate change impact.
http://maps.maplecroft.com/loadmap?template=min&issueID=32&close=y
Cheers
Timothy
20 July 2008
How Bad Could It Get? A Look At History
Disclaimer - I am not trying to breathe doom and gloom into everyone but I was looking for some historical perspective on recessions in the last century. I came across some interesting statistics from the CAA (UK's Civil Aviation Authority - regulator). They have a great statistic set from their library. It showed total passengers (in those days by ship) from UK to US by class of service.
It shows that traffic feel from a peak in 1929 to less than half four years later. Although American gross domestic product recovered to 1929 levels by 1936, the UK-US route did not, and only after the Second World War did passenger numbers recover and exceed those of the late 1920s.Interestingly enough the make up of passengers from the premium classes to the economy classes changed dramatically and stayed changed.
The original image can be seen at their website, the quality is poor for a scan so try and look at its original here:
http://www.caa.co.uk/docs/80/20080623%20Aviation%20Trends%20-%20Q1%202008.pdf
Just a little food for thought.
Cheers
Timothy
It shows that traffic feel from a peak in 1929 to less than half four years later. Although American gross domestic product recovered to 1929 levels by 1936, the UK-US route did not, and only after the Second World War did passenger numbers recover and exceed those of the late 1920s.Interestingly enough the make up of passengers from the premium classes to the economy classes changed dramatically and stayed changed.
The original image can be seen at their website, the quality is poor for a scan so try and look at its original here:
http://www.caa.co.uk/docs/80/20080623%20Aviation%20Trends%20-%20Q1%202008.pdf
Just a little food for thought.
Cheers
Timothy
A Travel Agent's Lament - Anon
I was sent this by an an old colleague - thanks Professor Gill - so a little frivolity for today.
A Travel Agent's Lament
Last night as I lay sleeping
I died or so it seemed,
Then I went to heaven
But only in my dream
Up there St Peter met me
Standing at the pearly gates,
He said "I must check your record
Please stand here and wait."
He turned and said "Your record
Is covered with terrible flaws,
On earth I see you rallied
For every losing cause."
I see that you drank alcohol
And smoked and partied too,
Fact is, you've done everything
A good person should never do.
We can't have people like you up here
Your life was full of sin,
Then he read the last of my record
Took my hand and said "Come in."
He led me up to the Big Boss and said
"Take her in and treat her well",
She used to work in Travel
She's done her time in hell."
We cannot attribute it other than I think it comes from a Travel Agent or BA in the UK. If you find the originator - please advise and I will attribute it correctly.
Cheers
Timothy
A Travel Agent's Lament
Last night as I lay sleeping
I died or so it seemed,
Then I went to heaven
But only in my dream
Up there St Peter met me
Standing at the pearly gates,
He said "I must check your record
Please stand here and wait."
He turned and said "Your record
Is covered with terrible flaws,
On earth I see you rallied
For every losing cause."
I see that you drank alcohol
And smoked and partied too,
Fact is, you've done everything
A good person should never do.
We can't have people like you up here
Your life was full of sin,
Then he read the last of my record
Took my hand and said "Come in."
He led me up to the Big Boss and said
"Take her in and treat her well",
She used to work in Travel
She's done her time in hell."
We cannot attribute it other than I think it comes from a Travel Agent or BA in the UK. If you find the originator - please advise and I will attribute it correctly.
Cheers
Timothy