I am a huge fan of smart people who can work the system to their advantage. One of the last bastions of the airline old school system has finally been publically breached. FareCompare has actually called the airlines bluff.
http://www.farecompare.com/articles/cheapest-airline-guarantees/same_day_cheapest_airline_ticket_guarantees_hype_or_hope.html
Read the article and start collecting the bonus certificates. It will take a few weeks for the airlines to start reacting. But NOW they also have a new tool to change their fares. It makes reading fare notices from ATPCo even more fun.
Sadly the fix will be that the airlines will "cheat" and push out the effective dates of the fare change so this "freebie" process will only work for a short time. But its still a great day that the consumer is able to compete on fair terms with the airlines historical obfuscation processes.
Again - Bravo to Neil and Rick!
Gentlemen my hat is off to you
Cheers
Timothy
07 April 2007
Airline Product Unbundling - A comment
This is a view of the unbundling of airline products and services.
The basic laws of economics work pretty simply. The airline business has traditionally been exempt from them due to - well lets just say unwise management decision. However in this current boom cycle - we are now seeing some interesting trends. One of which is the unbundling of services.
Clearly this is not new. However in the more recent past what has happened has been the imposition of fees for services normally provided. Examples of this are Ryanair charging for bags (now followed by both other LLCs and even a few Network Carriers). The model was add a service - then consider adding a fee.
However we are now seeing a trend towards unbundling on a greater scale. IE you pay for everything. Airlines have ALWAYS been afraid of pricing changes. But its not hard to see if the airline is moving - lets say 10 million passengers and the GDS fees are $5 per segment - then that is going to be more than the traditional net profit for that airline. Ditto in many other areas of cost vs revenue..
Examples of product unbundling come from all areas. Air Canada for example has unbundled services with its line of Tango fares. Resulting in the now famous GDS clause to accommodate it. Interestingly the results of such a GDS clause came to light during the recent Expedia vs AA cat fight. Spirit Airlines, not known for following conventional wisdom now offers its best discounts to people who will pay to join a club. Many European airlines charge for food on short haul runs. A recent example crossed my desk from AA. www.traavelperks.com Not sure I want to sign up for that just yet.
Apart from the economic situation - why are the airlines doing this and why now?
I have 3 basic reasons:
1. The core economic - supply vs demand situation. Tight supply gives pricing power to the airlines, something they have not had for a long while
2. Because they can. Emboldened by recent wins against distributer, the airlines now feel they are pretty powerful and they are flexing this power
3. There is no more savings to be had anywhere in the system. We postulated last year that when the GDS fee issue had been "resolved" the airlines would be hard pressed to find any other sources for net yield growth by cutting further costs. So this is the other shoe, revenue growth - IE more fees
We are going to see more examples of this as the airline accountants scour the system looking for more revenue opportunities. This will continue to boost the bottom line of many airlines. However be prepared for the backlash from the consumer. Remember she/he is getting smarter and will not tolerate gouging. Further expect during a run-up to the next US presidential election that the issue of price gouging by the airlines could become a popular target by at least one of the large field of candidates from either side.
Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
Tel (US) +1 425 836 4770
Mobile (US) +1 425 785 4457
Mobile (International) +44 7770 33 81 75
Fax +1 815 377 1583
UNIVERSAL VOICEMAIL BOX +1 425 749 4221
www.t2impact.com
The basic laws of economics work pretty simply. The airline business has traditionally been exempt from them due to - well lets just say unwise management decision. However in this current boom cycle - we are now seeing some interesting trends. One of which is the unbundling of services.
Clearly this is not new. However in the more recent past what has happened has been the imposition of fees for services normally provided. Examples of this are Ryanair charging for bags (now followed by both other LLCs and even a few Network Carriers). The model was add a service - then consider adding a fee.
However we are now seeing a trend towards unbundling on a greater scale. IE you pay for everything. Airlines have ALWAYS been afraid of pricing changes. But its not hard to see if the airline is moving - lets say 10 million passengers and the GDS fees are $5 per segment - then that is going to be more than the traditional net profit for that airline. Ditto in many other areas of cost vs revenue..
Examples of product unbundling come from all areas. Air Canada for example has unbundled services with its line of Tango fares. Resulting in the now famous GDS clause to accommodate it. Interestingly the results of such a GDS clause came to light during the recent Expedia vs AA cat fight. Spirit Airlines, not known for following conventional wisdom now offers its best discounts to people who will pay to join a club. Many European airlines charge for food on short haul runs. A recent example crossed my desk from AA. www.traavelperks.com Not sure I want to sign up for that just yet.
Apart from the economic situation - why are the airlines doing this and why now?
I have 3 basic reasons:
1. The core economic - supply vs demand situation. Tight supply gives pricing power to the airlines, something they have not had for a long while
2. Because they can. Emboldened by recent wins against distributer, the airlines now feel they are pretty powerful and they are flexing this power
3. There is no more savings to be had anywhere in the system. We postulated last year that when the GDS fee issue had been "resolved" the airlines would be hard pressed to find any other sources for net yield growth by cutting further costs. So this is the other shoe, revenue growth - IE more fees
We are going to see more examples of this as the airline accountants scour the system looking for more revenue opportunities. This will continue to boost the bottom line of many airlines. However be prepared for the backlash from the consumer. Remember she/he is getting smarter and will not tolerate gouging. Further expect during a run-up to the next US presidential election that the issue of price gouging by the airlines could become a popular target by at least one of the large field of candidates from either side.
Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
Tel (US) +1 425 836 4770
Mobile (US) +1 425 785 4457
Mobile (International) +44 7770 33 81 75
Fax +1 815 377 1583
UNIVERSAL VOICEMAIL BOX +1 425 749 4221
www.t2impact.com
05 April 2007
BA Bags... Stardate 4-1-2007
No this is not the April fool's joke.
BA lost over 1 million bags last year based on 36 million passengers. So lets assume that on average one bag for every 1 people is checked. That means that the airline looses one bag for every 36 that it handles. Either way you cut it that's a pretty poor number. So what was BA's answer to this problem? New baggage procedures including limiting the the number of bags to be checked etc. Oh yes and lets not forget the outsourcing of bags at LHR.
What is our insight into this?
You have a 1 in 36 chance of having your bag not arrive with you on BA. But wait... just dont forget that you are ONLY allowed 1 carry on at/in/through LHR. So that means that now you have a really tough time.
So BA - do you think this is a good number? Or should you perhaps recall some of those baggage handlers you let go and SOLVE the problem. Of course let's not ask the question whether the percentage of bags lost affected the back of the bus passengers or the front more?
Having had my bag either damaged, destroyed, delayed and well mis-routed countless times on BA, I can tell you that in my experience it is better not to fly on BA if you can possibly avoid it. Particularly if you are transiting or leaving from LHR.
And this is no joke. BA fix this PLEASE
BA lost over 1 million bags last year based on 36 million passengers. So lets assume that on average one bag for every 1 people is checked. That means that the airline looses one bag for every 36 that it handles. Either way you cut it that's a pretty poor number. So what was BA's answer to this problem? New baggage procedures including limiting the the number of bags to be checked etc. Oh yes and lets not forget the outsourcing of bags at LHR.
What is our insight into this?
You have a 1 in 36 chance of having your bag not arrive with you on BA. But wait... just dont forget that you are ONLY allowed 1 carry on at/in/through LHR. So that means that now you have a really tough time.
So BA - do you think this is a good number? Or should you perhaps recall some of those baggage handlers you let go and SOLVE the problem. Of course let's not ask the question whether the percentage of bags lost affected the back of the bus passengers or the front more?
Having had my bag either damaged, destroyed, delayed and well mis-routed countless times on BA, I can tell you that in my experience it is better not to fly on BA if you can possibly avoid it. Particularly if you are transiting or leaving from LHR.
And this is no joke. BA fix this PLEASE
Caveat Emptor
OK... this is a real doozy of a story. A cautionary tale for anyone who takes as gospel what you read online.
Most people have a perception that humans can make mistakes but machines cannot. Therefore what ever you see posted by a machine (for example Expedia or Orbitz) engine then it must be accurate.
This was posted on Register.com by a SF based Attorney. I am sure he was pretty fuming by the end. However he realizes that the outcome is really his own fault. I doubt a class action suit will come of it. Just think you too could have made this mistake...
Orbitz TLC campaign leads to online booking bloodbath
Reg hack in serious condition as inscrutable itinerary blows up in face
By Burke Hansen in Dakar → More by this author
Published Wednesday 4th April 2007 16:50 GMT
Like this story? Receive others like it in your inbox Find your perfect job - click here from thousands of tech vacancies
Product review Who knew that the online booking crew recently threw their throwback jerseys on?
In a bizarre series of events that brought back the flying nightmares of yesteryear, the Register's ICANN Lisbon correspondent found himself living out of an airport hotel in Dakar, Senegal, on a flight path only Google Maps could love.
The quickest route from Lisbon to San Francisco at this point most definitively does not pass through Dakar.
After a last-minute non-refundable booking went through online travel service Orbitz's approval routine, which proved to be the only available booking that returned to SFO in time for my annual UIGEA-approved fantasy baseball draft, your hard-pressed author clicked the "I ACCEPT" button and went about his business. Only later did I check the itinerary and realize that Orbitz's booking software had an unsavory return itinerary of Lisbon-Dakar-New York-and-about-fucking-time-San Francisco.
Uh, you mean Dakar...in Africa?
Here's the final timeline, from start to finish.
Hour 0:
9pm, Portugal time. Check in at Transportes Aereos Portugueses (TAP) counter. Joke with lady at counter about checked luggage making it from Portugal to San Fran via Senegal. Priority means priority to make it or priority to get snagged? Asks why I am routed through Senegal to get to New York, with all the major airports in Europe to go through. Not quite sure, I say.
Hour 1.35:
Hour and a half layover in Dakar scheduled. Should be easily makeable in a backwater airport like Leopold Sedar Senghor Aeroport in Dakar, Senegal. Only 20 minutes behind schedule.
Hour 2.00:
File in to what looks like the approach to the plane, only to find that it funnels us into a motorcoach, which then chugs off across the tarmac toward the plane. Stop in front of the plane - feeling pretty good, until I realize they're not actually opening the glass doors for us.
Pressed to the glass like sardines, and forced to observe the unnerving efforts of the flight crew flailing around desperately trying to get the back door of the plane to close. Guy on tarmac driving ladder truck repeatedly bashes the extended stairway into the stubborn door, finally knocking the jam loose.
Now 45 minutes behind, and cutting it close, but at least we're on the go. Quickly pass out after long week.
Hour 3.25:
Shake myself out of strange dream to the whirring of jet engines and the scrape of tires on tarmac. Check the time on my cell - over 1 hour spent waiting on tarmac. Latent anxiety rises to surface.
Hour 7.50:
Rubber hits road in Dakar. Grab carry-on. Final call for flight to NY over PA. Flash copy of itinerary to airport security. Waves me over to mass of flesh in disembarcation area. Transit line mysteriously closed.
As situational urgency sets in, long lost high school French makes comeback. Find helpful security agent, who takes me to the line for boarding. Am informed that flight is closed. Shamelessly beg to grab checked luggage and go. Luggage nowhere to be found. Adios, flight to NY.
Hour 8.00:
Last piece of luggage rolls off baggage claim. Thar she blows.
Hour 8.50:
Warren of offices in depths of Dakar airport. Argue with local TAP rep for hotel room for night. No dice.
It's not our fault, he says. Why should we pay?
Your flight was two hours late. It's your responsibility.
How were we supposed to know you had a connecting flight to New York? Who ever heard of such a thing?
Point, counterpoint. Too tired to argue any longer.
Hour 9.00:
Now in office of South African Airlines, one of four airlines somehow involved with this trip. Am told there is only one flight daily to NY. Am promised slot on next flight. Come back tomorrow.
Hour 9.25:
Slog upstairs to airport hotel. Besieged by late night scumbags offering assistance. Can't they clear these vermin out of the airport?
Hotel closed until 6am, local time. 45 min to go. Wait it out with beer at 24 hr restaurant across from hotel with other stranded travelers. Part of airport marketing plan? Slip 1 euro piece to meth-addled asshole to be left alone at last.
Tomorrow is the Prophet's birthday, they tell me. It's a national holiday.
Hour 10.00:
Check in to hotel. "Concierge" checks out bald eagle-bedecked passport.
So, you are American. Just one night?
Yes, I'm on my way to New York.
So what are you doing here? he laughs.
I don't know.
Enter room. Disgusting. Undershoots even my already abysmal expectations. Hotel Hellhole is almost a palindrome. Crash out.
Hour 23.50:
Back in SAA offices. No way I will miss this one. Promises me I am connected all the way to SF.
Back to 24 hour restaurant to wait it out. Fading quickly. Just enough afro-francs left for a beer. Last beer and testament.
Hour 26.50:
Down to check in. Absolute chaos. Now traveling on expired ticket, which exasperates my African hosts.
Hoping security's real tight on the Prophet's b-day.
Hour 27.00:
Tight enough- not letting me through due to expired ticket. Manage to flag down SAA manager from night before, who smiles and waves me through.
Hour 27.50:
At counter at last.
This ticket was for last night, the lady says.
Yes, my flight from Portugal arrived two hours late. I had to spend the night.
Well, have you paid the penalties?
Penalties?! They told me last night I didn't have to pay any penalties! That's crazy - I already had to pay for a hotel and this wasn't even my fault.
Who told you you didn't have to pay the penalties? Who?
The manager, last night. He was just here...
A tall man?
Yes, where is he...
Don't actually remember anything about penalties, but am starting to figure out how this game works. Huge and growing crowd behind getting restless.
Well if you don't pay the penalties, then I have to pay the penalties. A manager must approve this.
Continue eyeballing stirring crowd. She folds.
Hour 28.00:
Security keeps squinting at me over lapsed ticket. Retell story.
Hour 29.50:
Out on tarmac at last. One more carry-on inspection. Happy for that.
Only xanax can help me now. Now that's a palindrome.
Hour 43.50:
Arrive at JFK. Attempt to check in.
Sorry, but all the flights to San Francisco are booked.
But they told me in Senegal I was booked all the way through to SFO?
Well, they did something wrong. You can fly standby. It's the start of the holiday week.
You've got to understand, I've been travelling for two days. I'll take anything, whatever you've got. Through Denver, Chicago, anywhere.
I explain the situation about TAP and the itinerary. He's Portuguese and we chat about how much I loved Lisbon.
Well, I'll see what I can do. Tap, tap on the magic keyboard.
Well, we have a flight at 1 through Chicago, but it's out of La Guardia?
I'll take whatever you can guarantee me.
Hour 44.00:
Now on bus from JFK to La Guardia for flight to O'Hare. La Guardia, airport number 4 of 6 on return trip alone.
Hour 47.50:
Guy at JFK at least gave me real travel vouchers. Security no longer giving me the look. Chicago, here I come.
Hour 50.50:
O'Hare at last. Layover in Chicago at this point is nothing. I piss on your layover.
Hour 53.25:
Home stretch - O'Hare to SFO. Forgot how ghetto United is.
Hour 57.00:
Hard to believe I'm back. Thank god I've got Limost picking me up. I need a beer.
Grand total: 57 hours, 6 airports, and 8,362 miles.
Now that's what I call TLC. ®
Most people have a perception that humans can make mistakes but machines cannot. Therefore what ever you see posted by a machine (for example Expedia or Orbitz) engine then it must be accurate.
This was posted on Register.com by a SF based Attorney. I am sure he was pretty fuming by the end. However he realizes that the outcome is really his own fault. I doubt a class action suit will come of it. Just think you too could have made this mistake...
Orbitz TLC campaign leads to online booking bloodbath
Reg hack in serious condition as inscrutable itinerary blows up in face
By Burke Hansen in Dakar → More by this author
Published Wednesday 4th April 2007 16:50 GMT
Like this story? Receive others like it in your inbox Find your perfect job - click here from thousands of tech vacancies
Product review Who knew that the online booking crew recently threw their throwback jerseys on?
In a bizarre series of events that brought back the flying nightmares of yesteryear, the Register's ICANN Lisbon correspondent found himself living out of an airport hotel in Dakar, Senegal, on a flight path only Google Maps could love.
The quickest route from Lisbon to San Francisco at this point most definitively does not pass through Dakar.
After a last-minute non-refundable booking went through online travel service Orbitz's approval routine, which proved to be the only available booking that returned to SFO in time for my annual UIGEA-approved fantasy baseball draft, your hard-pressed author clicked the "I ACCEPT" button and went about his business. Only later did I check the itinerary and realize that Orbitz's booking software had an unsavory return itinerary of Lisbon-Dakar-New York-and-about-fucking-time-San Francisco.
Uh, you mean Dakar...in Africa?
Here's the final timeline, from start to finish.
Hour 0:
9pm, Portugal time. Check in at Transportes Aereos Portugueses (TAP) counter. Joke with lady at counter about checked luggage making it from Portugal to San Fran via Senegal. Priority means priority to make it or priority to get snagged? Asks why I am routed through Senegal to get to New York, with all the major airports in Europe to go through. Not quite sure, I say.
Hour 1.35:
Hour and a half layover in Dakar scheduled. Should be easily makeable in a backwater airport like Leopold Sedar Senghor Aeroport in Dakar, Senegal. Only 20 minutes behind schedule.
Hour 2.00:
File in to what looks like the approach to the plane, only to find that it funnels us into a motorcoach, which then chugs off across the tarmac toward the plane. Stop in front of the plane - feeling pretty good, until I realize they're not actually opening the glass doors for us.
Pressed to the glass like sardines, and forced to observe the unnerving efforts of the flight crew flailing around desperately trying to get the back door of the plane to close. Guy on tarmac driving ladder truck repeatedly bashes the extended stairway into the stubborn door, finally knocking the jam loose.
Now 45 minutes behind, and cutting it close, but at least we're on the go. Quickly pass out after long week.
Hour 3.25:
Shake myself out of strange dream to the whirring of jet engines and the scrape of tires on tarmac. Check the time on my cell - over 1 hour spent waiting on tarmac. Latent anxiety rises to surface.
Hour 7.50:
Rubber hits road in Dakar. Grab carry-on. Final call for flight to NY over PA. Flash copy of itinerary to airport security. Waves me over to mass of flesh in disembarcation area. Transit line mysteriously closed.
As situational urgency sets in, long lost high school French makes comeback. Find helpful security agent, who takes me to the line for boarding. Am informed that flight is closed. Shamelessly beg to grab checked luggage and go. Luggage nowhere to be found. Adios, flight to NY.
Hour 8.00:
Last piece of luggage rolls off baggage claim. Thar she blows.
Hour 8.50:
Warren of offices in depths of Dakar airport. Argue with local TAP rep for hotel room for night. No dice.
It's not our fault, he says. Why should we pay?
Your flight was two hours late. It's your responsibility.
How were we supposed to know you had a connecting flight to New York? Who ever heard of such a thing?
Point, counterpoint. Too tired to argue any longer.
Hour 9.00:
Now in office of South African Airlines, one of four airlines somehow involved with this trip. Am told there is only one flight daily to NY. Am promised slot on next flight. Come back tomorrow.
Hour 9.25:
Slog upstairs to airport hotel. Besieged by late night scumbags offering assistance. Can't they clear these vermin out of the airport?
Hotel closed until 6am, local time. 45 min to go. Wait it out with beer at 24 hr restaurant across from hotel with other stranded travelers. Part of airport marketing plan? Slip 1 euro piece to meth-addled asshole to be left alone at last.
Tomorrow is the Prophet's birthday, they tell me. It's a national holiday.
Hour 10.00:
Check in to hotel. "Concierge" checks out bald eagle-bedecked passport.
So, you are American. Just one night?
Yes, I'm on my way to New York.
So what are you doing here? he laughs.
I don't know.
Enter room. Disgusting. Undershoots even my already abysmal expectations. Hotel Hellhole is almost a palindrome. Crash out.
Hour 23.50:
Back in SAA offices. No way I will miss this one. Promises me I am connected all the way to SF.
Back to 24 hour restaurant to wait it out. Fading quickly. Just enough afro-francs left for a beer. Last beer and testament.
Hour 26.50:
Down to check in. Absolute chaos. Now traveling on expired ticket, which exasperates my African hosts.
Hoping security's real tight on the Prophet's b-day.
Hour 27.00:
Tight enough- not letting me through due to expired ticket. Manage to flag down SAA manager from night before, who smiles and waves me through.
Hour 27.50:
At counter at last.
This ticket was for last night, the lady says.
Yes, my flight from Portugal arrived two hours late. I had to spend the night.
Well, have you paid the penalties?
Penalties?! They told me last night I didn't have to pay any penalties! That's crazy - I already had to pay for a hotel and this wasn't even my fault.
Who told you you didn't have to pay the penalties? Who?
The manager, last night. He was just here...
A tall man?
Yes, where is he...
Don't actually remember anything about penalties, but am starting to figure out how this game works. Huge and growing crowd behind getting restless.
Well if you don't pay the penalties, then I have to pay the penalties. A manager must approve this.
Continue eyeballing stirring crowd. She folds.
Hour 28.00:
Security keeps squinting at me over lapsed ticket. Retell story.
Hour 29.50:
Out on tarmac at last. One more carry-on inspection. Happy for that.
Only xanax can help me now. Now that's a palindrome.
Hour 43.50:
Arrive at JFK. Attempt to check in.
Sorry, but all the flights to San Francisco are booked.
But they told me in Senegal I was booked all the way through to SFO?
Well, they did something wrong. You can fly standby. It's the start of the holiday week.
You've got to understand, I've been travelling for two days. I'll take anything, whatever you've got. Through Denver, Chicago, anywhere.
I explain the situation about TAP and the itinerary. He's Portuguese and we chat about how much I loved Lisbon.
Well, I'll see what I can do. Tap, tap on the magic keyboard.
Well, we have a flight at 1 through Chicago, but it's out of La Guardia?
I'll take whatever you can guarantee me.
Hour 44.00:
Now on bus from JFK to La Guardia for flight to O'Hare. La Guardia, airport number 4 of 6 on return trip alone.
Hour 47.50:
Guy at JFK at least gave me real travel vouchers. Security no longer giving me the look. Chicago, here I come.
Hour 50.50:
O'Hare at last. Layover in Chicago at this point is nothing. I piss on your layover.
Hour 53.25:
Home stretch - O'Hare to SFO. Forgot how ghetto United is.
Hour 57.00:
Hard to believe I'm back. Thank god I've got Limost picking me up. I need a beer.
Grand total: 57 hours, 6 airports, and 8,362 miles.
Now that's what I call TLC. ®
03 April 2007
GOL inches towards GDS wide distribution - signs with Worldspan
Being the 3rd of 4th in a two horse race is always a problem. But in Brazil Worldspan does have some reach. As GoL's aspirations rise so does its need for distribution. But not TOO far. Recognizing that it has a growing corporate travel market - we believe that GOL's distribution strategy is not changing rather subtly it will open up the spigot for the higher yielding fares to these "more expensive" channels.
In like a Lion - out like a Lamb - BA signs WSP deal
Well clearly someone caved... and pretty quickly.
Given that most of the WSP management are lame ducks I suspect no one had the energy or inclination for a battle so they basically took what BA offered them and rolled over.
So interestingly this looks a heck of a lot like last year when AA was making nasty noises about Sabre and sidling up to WSP. Look how that changed. Now the ONLY GDS not signed up is Amadeus. I doubt that there is going to be a huge fight there. BA has still many years to run on its Res hosting contract (remember that Altea is in fact -according to some - just a sooped up version of BABS.
Reading the press release... there are the same superlative words like "Preferred" How BA can give all 4 GDS the same status is of course beyond the logic of mere mortals like you or I.
I do wonder what happened to that scrappy old Worldspan of yore?
Soon to be swallowed into the Blackstone debt laden abyss
Given that most of the WSP management are lame ducks I suspect no one had the energy or inclination for a battle so they basically took what BA offered them and rolled over.
So interestingly this looks a heck of a lot like last year when AA was making nasty noises about Sabre and sidling up to WSP. Look how that changed. Now the ONLY GDS not signed up is Amadeus. I doubt that there is going to be a huge fight there. BA has still many years to run on its Res hosting contract (remember that Altea is in fact -according to some - just a sooped up version of BABS.
Reading the press release... there are the same superlative words like "Preferred" How BA can give all 4 GDS the same status is of course beyond the logic of mere mortals like you or I.
I do wonder what happened to that scrappy old Worldspan of yore?
Soon to be swallowed into the Blackstone debt laden abyss
01 April 2007
Heathrow Slot Action - Comment
The recent spate of activity at LHR indicates a further rush to gain access to the arguably most important airport in the world.
Certainly access is some of the most expensive. As noted earlier - this is the most fun in years.
However did Sir Michael Bishop sell the slots too cheap? Is there something else about this deal we don’t know about? The deal sounds pretty darn good. BMED had 73 slots, BMI sold 51 slots. That leaves 22 slots (enough for 3 daily RTs and then the odd RT to a funky destination). You can be damn sure it’s not going to use all of those slots if it can make money out of them elsewhere.
The BMED slots (the only real assets acquired by BMI) and some funky route authority it operated on behalf of BA under Franchise agreement still smacks of something that is missing here. Agreed BMI picked them up for a song right under the nose of BA who was then forced to pay GBP 30 million for something that is not actually supposed to be traded and was possibly theirs to start off with. Perhaps this is part of the new BA which is striving for the sort of domination in its home markets as AF/KLM (in AMS and CDG) and LH (in FRA and MUC) have. Lets consider the following:
BA sold BA connect (the old Brymon and co regional services) to Flybe but in return granted Flybe some pretty good code sharing deals. Since BMED is under contract to BA for Franchise services to Central and Eastern Europe and the Middle East you can be sure that there will be a follow on agreement between BA and BMI for code sharing and co-servicing at LHR. And these routes wont all go away. So where will BMI move the routes to? If there are no slots at LHR and LGW is pretty constrained those services could be combined into multi-hop flights in the region with larger aircraft. For example running a A321 to Damascus and Lebanon on a triangle would save a slot even without any 5th or 6th Freedom rights.
This creates a new order in the UK. With BA once again reaching a dominance unheard of since it acquired BCAL. With only Virgin on the Long Haul as the indiginous challenger BA is starting to look positively imperial again. But it needs to do that to fend off the challenge of the American Carriers.
So lets consider now the whole picture. BMI is no stranger to code-sharing and being everybody’s "Ho". At one time there was a BD morning flight LHR-LBA with no less than 23 code shares on it... ON A DC9!!! BMI continues to be all things to all people (imagine a flight with both Star and BA passengers on it!) BA gets market coverage additional and market carve up. Can anyone say the word monopoly???
But still this is but a mere raindrop compared to the whopping market shares that AFKL and LH have in their home markets.
All in all its starting to look like fun. My long time dream of One Terminal at LHR for each of the Alliances is starting to look very realistic. Too bad LHR will continue to be a 3rd world airport for the next few years even after T5 opens. Darn it but I do so hate changing planes there.
Cheers
Timothy
Certainly access is some of the most expensive. As noted earlier - this is the most fun in years.
However did Sir Michael Bishop sell the slots too cheap? Is there something else about this deal we don’t know about? The deal sounds pretty darn good. BMED had 73 slots, BMI sold 51 slots. That leaves 22 slots (enough for 3 daily RTs and then the odd RT to a funky destination). You can be damn sure it’s not going to use all of those slots if it can make money out of them elsewhere.
The BMED slots (the only real assets acquired by BMI) and some funky route authority it operated on behalf of BA under Franchise agreement still smacks of something that is missing here. Agreed BMI picked them up for a song right under the nose of BA who was then forced to pay GBP 30 million for something that is not actually supposed to be traded and was possibly theirs to start off with. Perhaps this is part of the new BA which is striving for the sort of domination in its home markets as AF/KLM (in AMS and CDG) and LH (in FRA and MUC) have. Lets consider the following:
BA sold BA connect (the old Brymon and co regional services) to Flybe but in return granted Flybe some pretty good code sharing deals. Since BMED is under contract to BA for Franchise services to Central and Eastern Europe and the Middle East you can be sure that there will be a follow on agreement between BA and BMI for code sharing and co-servicing at LHR. And these routes wont all go away. So where will BMI move the routes to? If there are no slots at LHR and LGW is pretty constrained those services could be combined into multi-hop flights in the region with larger aircraft. For example running a A321 to Damascus and Lebanon on a triangle would save a slot even without any 5th or 6th Freedom rights.
This creates a new order in the UK. With BA once again reaching a dominance unheard of since it acquired BCAL. With only Virgin on the Long Haul as the indiginous challenger BA is starting to look positively imperial again. But it needs to do that to fend off the challenge of the American Carriers.
So lets consider now the whole picture. BMI is no stranger to code-sharing and being everybody’s "Ho". At one time there was a BD morning flight LHR-LBA with no less than 23 code shares on it... ON A DC9!!! BMI continues to be all things to all people (imagine a flight with both Star and BA passengers on it!) BA gets market coverage additional and market carve up. Can anyone say the word monopoly???
But still this is but a mere raindrop compared to the whopping market shares that AFKL and LH have in their home markets.
All in all its starting to look like fun. My long time dream of One Terminal at LHR for each of the Alliances is starting to look very realistic. Too bad LHR will continue to be a 3rd world airport for the next few years even after T5 opens. Darn it but I do so hate changing planes there.
Cheers
Timothy
First there was CPC then CPA now PPA
Good article from WebPro News on Google's hush hush beta trial of PPA - Pay Per Action.
Way back when the world was new we used to surmise that the infinite real estate of the web would mean lower marketing and advertising costs. We surmised that everyone would have an equal chance at each sale whether you were a conglomorate or a Mum an Pop shop. Boy were we ever wrong. Clearly that has not happened and we are back to the sharp pyramids of havs vs have nots.
With Google Keyword search and CPC rates continuing to climb to almost obscene levels Google needs something new to drive new forms of ad revenenue. Enter PPA.
I cant help thinking that (and those who read this blog will know I have espoused this view before) - that Google is fast becoming a bigger (and badder) monopoly than Microsoft ever was. Hello - anyone awake at the DoJ??? Elliot Spitzer are you too busy with your politcal ambition. Nellie where are you? However just one caveat. I am a huge fan of what Google has done. So my concern is the level playing field for everyone particularly the small guys with niche products who cannot hope to compete with the big players.
Read on:
Google Whispers More Details About PPA
David A. Utter Staff Writer
The pay per action beta test for Google AdWords recently debuted, and spurred plenty of advertiser interest.
Since last week's announcement that Google would start offering AdWords PPA ads, where the advertiser pays only when a predetermined conversion has taken place, plenty of buzz has swirled around the plan.
A lot of that buzz has focused on a few distinct questions about PPA on AdWords. The Inside AdWords team at Google posted answers to some of the more frequently asked questions they have received about the plan.
International advertisers will have to wait to participate, as Google has opened this limited test only to US-based clients.
Advertisers must have a billing address in the United States, so even if an international business focuses on US customers, that isn't enough to be eligible yet.
PPA ads only show up through being displayed on sites that participate in Google's content network. They won't appear on Google or in its search network.
An advertiser concern of content networks has been the prospect of being displayed on less than desirable partner sites. Since the condition of PPA requires some kind of conversion to take place, typical worries about click fraud with pay per click ads should not be a problem.
On the content network side, AdSense members can sign up for a referrals program. Search marketers managing clients through the AdWords 'My Client Center' product can select individual accounts to participate in the PPA beta.
The fixed rate provision of PPA through the new program probably won't change in the near term. Some advertisers had asked about paying the PPA as a percentage of a sale, but Google is only doing the beta with a fixed price as the cost of conversion.
Way back when the world was new we used to surmise that the infinite real estate of the web would mean lower marketing and advertising costs. We surmised that everyone would have an equal chance at each sale whether you were a conglomorate or a Mum an Pop shop. Boy were we ever wrong. Clearly that has not happened and we are back to the sharp pyramids of havs vs have nots.
With Google Keyword search and CPC rates continuing to climb to almost obscene levels Google needs something new to drive new forms of ad revenenue. Enter PPA.
I cant help thinking that (and those who read this blog will know I have espoused this view before) - that Google is fast becoming a bigger (and badder) monopoly than Microsoft ever was. Hello - anyone awake at the DoJ??? Elliot Spitzer are you too busy with your politcal ambition. Nellie where are you? However just one caveat. I am a huge fan of what Google has done. So my concern is the level playing field for everyone particularly the small guys with niche products who cannot hope to compete with the big players.
Read on:
Google Whispers More Details About PPA
David A. Utter Staff Writer
The pay per action beta test for Google AdWords recently debuted, and spurred plenty of advertiser interest.
Since last week's announcement that Google would start offering AdWords PPA ads, where the advertiser pays only when a predetermined conversion has taken place, plenty of buzz has swirled around the plan.
A lot of that buzz has focused on a few distinct questions about PPA on AdWords. The Inside AdWords team at Google posted answers to some of the more frequently asked questions they have received about the plan.
International advertisers will have to wait to participate, as Google has opened this limited test only to US-based clients.
Advertisers must have a billing address in the United States, so even if an international business focuses on US customers, that isn't enough to be eligible yet.
PPA ads only show up through being displayed on sites that participate in Google's content network. They won't appear on Google or in its search network.
An advertiser concern of content networks has been the prospect of being displayed on less than desirable partner sites. Since the condition of PPA requires some kind of conversion to take place, typical worries about click fraud with pay per click ads should not be a problem.
On the content network side, AdSense members can sign up for a referrals program. Search marketers managing clients through the AdWords 'My Client Center' product can select individual accounts to participate in the PPA beta.
The fixed rate provision of PPA through the new program probably won't change in the near term. Some advertisers had asked about paying the PPA as a percentage of a sale, but Google is only doing the beta with a fixed price as the cost of conversion.
31 March 2007
World Exclusive: SABRE NAME RETIRED, NEW BRAND ANNOUNCED
World Exclusive to the T2IMPACT BLOG – EMBARGOED until April 1st 2007 0001 AM
On assuming control of the Sabre Business, TPG – Texas Pacific Group - has great pleasure in announcing the retirement of the SABRE name in favor of a more modern and appropriate branding. NEW COMPANY NAME FABLE. Formally the new company will be known as FABLE Holdings LLC.
Asked why the sudden change in name after over 20 years – commenting - a spokesperson close to the company said
“ We were really tired of the acronym that comprises SABRE, IE SEMI-AUTOMATED BUSINESS RESEARCH ENVIRONMENT. You can only imagine the jokes have made over the years about our brand.”
“ So we just had to come up with a new brand name. The embarrassment of having <> was pretty galling for a high tech IT based company such as us, but worse to be regarded as a <> when we had been an operational company for so long just didn’t make sense – so we had to find something more appropriate. Besides – it wasn’t even our own brand name – it was originally coined by IBM of all people.”
“ We are really proud of the new name. We paid a sizeable fee to the leading eBusiness Global Travel Consulting firm (we cannot divulge here due to confidentiality) to come up with the name. “
We believe, and the spokesperson has confirm it, that the new name should be FABLE. Again speaking on the condition of anonymity…
“The new name had to be cutting edge and be representative of the company post the buyout. We also wanted to be memorable and long lasting. The new name FABLE we believe does just that. ” So what does FABLE stand for ? or is it just another trendy name from Madison Avenue?
“On the contrary it – like the prior name of SABRE, the new name actually stands for something.
FULLY AUTOMATED BUSINESS LIABILITY COMPANY”. So what does this mean and what is its relevance. Again the Spokesperson
“That’s easy:
FULLY - we don’t want the company to do things in halves do we?
AUTOMATED - lets keep this IT flavor going
BUSINESS - well let’s face it - it is a commercial entity
LIABILITY - OK so this is a tough one but since we have seen how much debt Blackstone has loaded up to Travelport we can only assume that our new owners TPG and Silver Lake wanted to do the same to Sabre - er - I mean FABLE.
ENTERPRISE - lets think BIG here, not just a simple company we want to be a HUGE enterprise with Global ambitions. “
So there you have it... the new company, a new brand and a new identity. We anticipate over time that we will be renaming most of the product subgroups. For example we understand that the consumer brand will be renamed to reflect the growing emphasis on Desert Tourism. It will henceforth be known as CAMELOCITY with the Joe Camel brand brought back to life in a positive setting and a new role model for the next generation of travelers while still resonating with a sizeable portion of Baby Boomers who are ex-smokers.
Further details will be available from the new FABLE website in due course www.Fable.Global
<>
This is officially a spoof, just in case you didn’t know.
On assuming control of the Sabre Business, TPG – Texas Pacific Group - has great pleasure in announcing the retirement of the SABRE name in favor of a more modern and appropriate branding. NEW COMPANY NAME FABLE. Formally the new company will be known as FABLE Holdings LLC.
Asked why the sudden change in name after over 20 years – commenting - a spokesperson close to the company said
“ We were really tired of the acronym that comprises SABRE, IE SEMI-AUTOMATED BUSINESS RESEARCH ENVIRONMENT. You can only imagine the jokes have made over the years about our brand.”
“ So we just had to come up with a new brand name. The embarrassment of having <
“ We are really proud of the new name. We paid a sizeable fee to the leading eBusiness Global Travel Consulting firm (we cannot divulge here due to confidentiality) to come up with the name. “
We believe, and the spokesperson has confirm it, that the new name should be FABLE. Again speaking on the condition of anonymity…
“The new name had to be cutting edge and be representative of the company post the buyout. We also wanted to be memorable and long lasting. The new name FABLE we believe does just that. ” So what does FABLE stand for ? or is it just another trendy name from Madison Avenue?
“On the contrary it – like the prior name of SABRE, the new name actually stands for something.
FULLY AUTOMATED BUSINESS LIABILITY COMPANY”. So what does this mean and what is its relevance. Again the Spokesperson
“That’s easy:
FULLY - we don’t want the company to do things in halves do we?
AUTOMATED - lets keep this IT flavor going
BUSINESS - well let’s face it - it is a commercial entity
LIABILITY - OK so this is a tough one but since we have seen how much debt Blackstone has loaded up to Travelport we can only assume that our new owners TPG and Silver Lake wanted to do the same to Sabre - er - I mean FABLE.
ENTERPRISE - lets think BIG here, not just a simple company we want to be a HUGE enterprise with Global ambitions. “
So there you have it... the new company, a new brand and a new identity. We anticipate over time that we will be renaming most of the product subgroups. For example we understand that the consumer brand will be renamed to reflect the growing emphasis on Desert Tourism. It will henceforth be known as CAMELOCITY with the Joe Camel brand brought back to life in a positive setting and a new role model for the next generation of travelers while still resonating with a sizeable portion of Baby Boomers who are ex-smokers.
Further details will be available from the new FABLE website in due course www.Fable.Global
<
This is officially a spoof, just in case you didn’t know.
30 March 2007
Great Piece on Fare Strategy from Fare Compare
I am a huge fan of the "reverse yield management" tools that we predicted would emerge over time. The leading two are Fare Compare and Farecase.
Here is a great piece from Fare Compare on the insider column.
Cheers
Timothy
Insider Tip of the Week
Traveling 4 months or more in the future?
Be very careful purchasing U.S. domestic airline tickets.
Airlines manage their revenue in 4 month windows, and raise prices for travel outside this departure time window.
They will gladly sell you a mid-tier price outside of that window.
Many people have been told to buy very early, which can be the worst possible time to buy.
The most dramatic examples are prices in Southwest Airlines' markets. Southwest does not sell tickets for departure after a shrinking 4 1/2 month window (currently August 24th). Southwest usually increases the departure time window every few months.
The classic example is shown at the following link:
http://www.farecompare.com/search/month.html?departure=SAN&destination=PVD&cabin=Coach&date=20070801&days=20070824,20070825
Notice how the major airlines raise their lowest prices by $148 (over 60%) on August 25th -- exactly on the last departure date that Southwest sells tickets.
Here is a great piece from Fare Compare on the insider column.
Cheers
Timothy
Insider Tip of the Week
Traveling 4 months or more in the future?
Be very careful purchasing U.S. domestic airline tickets.
Airlines manage their revenue in 4 month windows, and raise prices for travel outside this departure time window.
They will gladly sell you a mid-tier price outside of that window.
Many people have been told to buy very early, which can be the worst possible time to buy.
The most dramatic examples are prices in Southwest Airlines' markets. Southwest does not sell tickets for departure after a shrinking 4 1/2 month window (currently August 24th). Southwest usually increases the departure time window every few months.
The classic example is shown at the following link:
http://www.farecompare.com/search/month.html?departure=SAN&destination=PVD&cabin=Coach&date=20070801&days=20070824,20070825
Notice how the major airlines raise their lowest prices by $148 (over 60%) on August 25th -- exactly on the last departure date that Southwest sells tickets.
Baseball Season's here again - banning transfats
This has very little to do with Travel and Distribution in particular but I could not resist.
Being a somewhat occasional US resident (heck I do more than the required IRS days out of the country to be officially regarded as Stateless!) I really enjoy spending a few relaxing hours at the ballpark. My home team is nothing to write home about and let’s hope that this "rebuilding" year is more productive than the last 2.
They have just banned Transfats at my local stadium. Great. But that got me thinking how much the airlines could do to ban the evil stuff. Suffering (genetically AND from a so-so diet) from high cholesterol I have to say that airlines could do a lot more about banning the stuff. So here is what I want you to do airlines. BAN TRANSFATS and all snacks containing them. Yes that means Southwest will probably need to find a new peanut vendor.
Thanks
Timothy
Being a somewhat occasional US resident (heck I do more than the required IRS days out of the country to be officially regarded as Stateless!) I really enjoy spending a few relaxing hours at the ballpark. My home team is nothing to write home about and let’s hope that this "rebuilding" year is more productive than the last 2.
They have just banned Transfats at my local stadium. Great. But that got me thinking how much the airlines could do to ban the evil stuff. Suffering (genetically AND from a so-so diet) from high cholesterol I have to say that airlines could do a lot more about banning the stuff. So here is what I want you to do airlines. BAN TRANSFATS and all snacks containing them. Yes that means Southwest will probably need to find a new peanut vendor.
Thanks
Timothy
Sabre goes Private control passes to TPG and Silver Lake Partners for $5 Billion
So its official - while only 62% voted for it - they represented over 85% of the stock so yes Sabre is now part of Mr Brondeman's empire. Interesting to think that the company is now in the same stable as ... Ryanair! Not to mention other memorable current and former inhabitants of TPG:
America West (Now the NEW US Airways)
Continental Airlines
Gate Gourmet
Burger King
Soon to be joined by Qantas (well that’s a definite maybe) Iberia (that’s a remote possibility- what the heck is he doing – buying all of OneWorld?) , and Harrah’s Casinos not to mention Matsushita (JVC and Panasonic).
We can only assume that they will load up the company with debt and offload it after cashing out their chips and pocketing a bunch of money. The likelihood is that Travelocity will be spun out separately from Sabre thus allowing all 3 of the major online brands to be floating freely AND creating a unique category in the process. (Analysts do love it when industry segments do this sort of thing). I once lamented that this would bring focus on our little corner of the world and this would disrupt the business of people like us at T2Impact. But on the other hand – well welcome chaps this makes for a great ride.
Cheers
Timothy
29 March 2007
Flying High in a Competitive Industry - Book Review
Cost-effective service excellence at Singapore Airlines.
Loizos Heracleous, Jochen Wirtz Nitin Pangarkar
Published by McGraw Hill 2006
With both a title and subject matter of immense potential this book is a bit of a let down. Sadly it doesn’t even start well. Rather is reads like a management consultant's tome that seeks to justify a business case through an over abundance of fact with little insight. I was in Singapore at the airport changing planes (actually from United to Tiger!) when I spied this book for sale and immediately bought it.
it is clear that the writers had insider access to SQ's people and documents. For this they should have been able to write a real cracker of a book. What makes SQ tick? Why is SQ so good at what it does? Perhaps it sadly personifies the whiter than white world of Singapore Airlines and the city nation itself without any constructive and objective criticism of what is has done wrong and where things have not gone well for SQ. All of us (me included for sure!) can learn from our mistakes. Not illustrating and then examining failures makes the successes seem more routine and perhaps less interesting. Clearly for me it lessens the value of the underlying story that despite the presentation I still find compelling. For example the disastrous partnership with Air New Zealand and the participation by SQ in the demise of Ansett Australia is not even mentioned.
Much of the early data indeed over 25 % of the book is spent on a flawed analysis of the airline industry. Nice useful data but both the facts are somewhat dated and the analysis far too simplistic for meaningful application and background to the rest of the book. You are left feeling unsatisfied.
Still Singapore Airlines is arguably a great airline. Driven by the notion of cost effective service excellence - they have risen to the top of the heap. SQ - you deserve better than this
Cheers
Timothy
Loizos Heracleous, Jochen Wirtz Nitin Pangarkar
Published by McGraw Hill 2006
With both a title and subject matter of immense potential this book is a bit of a let down. Sadly it doesn’t even start well. Rather is reads like a management consultant's tome that seeks to justify a business case through an over abundance of fact with little insight. I was in Singapore at the airport changing planes (actually from United to Tiger!) when I spied this book for sale and immediately bought it.
it is clear that the writers had insider access to SQ's people and documents. For this they should have been able to write a real cracker of a book. What makes SQ tick? Why is SQ so good at what it does? Perhaps it sadly personifies the whiter than white world of Singapore Airlines and the city nation itself without any constructive and objective criticism of what is has done wrong and where things have not gone well for SQ. All of us (me included for sure!) can learn from our mistakes. Not illustrating and then examining failures makes the successes seem more routine and perhaps less interesting. Clearly for me it lessens the value of the underlying story that despite the presentation I still find compelling. For example the disastrous partnership with Air New Zealand and the participation by SQ in the demise of Ansett Australia is not even mentioned.
Much of the early data indeed over 25 % of the book is spent on a flawed analysis of the airline industry. Nice useful data but both the facts are somewhat dated and the analysis far too simplistic for meaningful application and background to the rest of the book. You are left feeling unsatisfied.
Still Singapore Airlines is arguably a great airline. Driven by the notion of cost effective service excellence - they have risen to the top of the heap. SQ - you deserve better than this
Cheers
Timothy
Boeing vs Airbus - Book Review
Subtitled The Inside Story of the Greatest International Competition in Business
John Newhouse - published by Knopf
For those of us who follow the epic battle between Airbus and Boeing this is a great read. It covers a lot of territory most of which is public information. Essentially drawing a lot on his previous book "The Sporty Game" this is a story that is written about pride and fall from both sides.
Newhouse takes the view from the protagonists as individuals - disappointingly he doesn’t dwell much on the one player who has had as much to do with the downfall of Airbus namely Noel Forgeard. The book probably spends way too much time laying the blame for Boeing's fumble on Phil Condit who comes off very badly. Neither does he spend much time on the complex multi-national management structure that has hampered Airbus' decision making for so long. So if there is bias in the book it is in the lauding of Boeing's recovery and the success of the 787 vs. the (now) well documented issues of the A380.
Still for those who are on the periphery of the business this is a solid tale - really about people. For those on the inside there is much that is new. The insights from the perspective of Harry Stonecipher and Jean Pierson is especially appealing. Highly recommended to get a second hand copy or read it at the library or Borders ;-)
Cheers
Timothy
John Newhouse - published by Knopf
For those of us who follow the epic battle between Airbus and Boeing this is a great read. It covers a lot of territory most of which is public information. Essentially drawing a lot on his previous book "The Sporty Game" this is a story that is written about pride and fall from both sides.
Newhouse takes the view from the protagonists as individuals - disappointingly he doesn’t dwell much on the one player who has had as much to do with the downfall of Airbus namely Noel Forgeard. The book probably spends way too much time laying the blame for Boeing's fumble on Phil Condit who comes off very badly. Neither does he spend much time on the complex multi-national management structure that has hampered Airbus' decision making for so long. So if there is bias in the book it is in the lauding of Boeing's recovery and the success of the 787 vs. the (now) well documented issues of the A380.
Still for those who are on the periphery of the business this is a solid tale - really about people. For those on the inside there is much that is new. The insights from the perspective of Harry Stonecipher and Jean Pierson is especially appealing. Highly recommended to get a second hand copy or read it at the library or Borders ;-)
Cheers
Timothy
28 March 2007
All that glitters... the sad market for Canada
Canadian Flyers - listen up... you WILL be paying more for your tickets.
The notoriously fickle Canadian market claimed another victim. Harmony Airlines will end all scheduled traffic on April 9th. While not a bankruptcy like CanJet or some of the other players in recent years - you can be assured that the prices in Canada will edge higher in the coming months. Sadly for border passengers on both the north and south sides - there is no real relief from hopping over the border to a nearby airport either. The restrictions at border crossings such as the Peace Arch in Blaine Washington mean that it is no easy deal to use a nearby airport.
Surely the duopoly enjoyed by WestJet and Air Canada should encourage the opportunity for another airline to make it - at least in niches. Sadly not so.
Even on the competitive transatlantic market we see little local competition.
For the Summer 2007 both Zoom Airlines and Globespan offer prices significantly below that of behemoth Air Canada or Charter favorite Air Transat. In our brief search we found prices 40-50% below for comparable routings YVR-LON/AMS/MAN/CDG.
Well - you could emigrate to another duopoly market like Australia. At least the cents per mile are a little cheaper. And of course its a tad warmer
Cheers
Timothy
The notoriously fickle Canadian market claimed another victim. Harmony Airlines will end all scheduled traffic on April 9th. While not a bankruptcy like CanJet or some of the other players in recent years - you can be assured that the prices in Canada will edge higher in the coming months. Sadly for border passengers on both the north and south sides - there is no real relief from hopping over the border to a nearby airport either. The restrictions at border crossings such as the Peace Arch in Blaine Washington mean that it is no easy deal to use a nearby airport.
Surely the duopoly enjoyed by WestJet and Air Canada should encourage the opportunity for another airline to make it - at least in niches. Sadly not so.
Even on the competitive transatlantic market we see little local competition.
For the Summer 2007 both Zoom Airlines and Globespan offer prices significantly below that of behemoth Air Canada or Charter favorite Air Transat. In our brief search we found prices 40-50% below for comparable routings YVR-LON/AMS/MAN/CDG.
Well - you could emigrate to another duopoly market like Australia. At least the cents per mile are a little cheaper. And of course its a tad warmer
Cheers
Timothy
Troogle-ettes - arriving at a mobile near you?
More evidence that Troogle may be a myth. Here is a new partnership established with FlightStats: Just text 466453 for flight status. Enter code and flight number and itsends you back the status for any US departing flight.
At the same time on Google Base search box users can enter an airline name and flight number and check the status via links to Travelocity, Expedia or Fboweb.com.
But never say never
Cheers
Timothy
At the same time on Google Base search box users can enter an airline name and flight number and check the status via links to Travelocity, Expedia or Fboweb.com.
But never say never
Cheers
Timothy
27 March 2007
Ah the sweet smell of Slots in the morning
Indulge me a little with speculation. I am sure that someone is REALLY kicking themselves at BA right now that they didnt pick up BMED when they had the chance. BMI paid GBP30 million for BMED. Lets assume that this includes assets and leases etc etc. But what of the slots?
Welcome to the world's most expensive 2 minute experience. A slot at London's Heathrow Airport.
Currently at LHR BMED has 73 listed slots a week. (Source BMED website). The current valuation for slots at LHR ranges from GBP 10 million per slot (paid by Qantas for 2 slots in 2004) and GBP 5 million at the low end. So lets just say its in the middle then the value of BMED for slots alone at just under GBP 80 Million. Can you hear the weeping wailing and gnashing of teeth from Waterside. But this was before the US - EU Open Skies agreement. So added to this that there are going to be some very interested parties in acquiring at least some of those slots and you can see that the actual value could - well - DOUBLE. This puts BMI itself in a very commanding position as the #2 slot holder at LHR. And do we expect that HM Government will step in and regulate this process? probably not - although BAA remember is controlled by the Spanish and we all know what the Brits think about Spaniards invading our shores!
So the have not legacy airlines - from the USA - DL, NW, CO (all Skyteam members) and US (Star Alliance) are going to be anxious to fill the holes in their networks at a premium price. DL paid $21 million for the JFK-LGW route authority in 2006. So you know DL will pay a pretty penny. CO already filed for the route. DL would like to buy at least 4 slots initially - (2 for JFK-LHR and 2 for ATL-LHR) Over time they would like to buy at least 4 more - additional slots for JFK and ATL plus a slot each at CVG and SLC. Even horse trading with its Skyteam partners AF and AZ wont solve that problem.
Well folks roll up for the show - this is going to be one of the most expensive shopping sales in history. Lets sit back and enjoy it.
Cheers
Timothy
Welcome to the world's most expensive 2 minute experience. A slot at London's Heathrow Airport.
Currently at LHR BMED has 73 listed slots a week. (Source BMED website). The current valuation for slots at LHR ranges from GBP 10 million per slot (paid by Qantas for 2 slots in 2004) and GBP 5 million at the low end. So lets just say its in the middle then the value of BMED for slots alone at just under GBP 80 Million. Can you hear the weeping wailing and gnashing of teeth from Waterside. But this was before the US - EU Open Skies agreement. So added to this that there are going to be some very interested parties in acquiring at least some of those slots and you can see that the actual value could - well - DOUBLE. This puts BMI itself in a very commanding position as the #2 slot holder at LHR. And do we expect that HM Government will step in and regulate this process? probably not - although BAA remember is controlled by the Spanish and we all know what the Brits think about Spaniards invading our shores!
So the have not legacy airlines - from the USA - DL, NW, CO (all Skyteam members) and US (Star Alliance) are going to be anxious to fill the holes in their networks at a premium price. DL paid $21 million for the JFK-LGW route authority in 2006. So you know DL will pay a pretty penny. CO already filed for the route. DL would like to buy at least 4 slots initially - (2 for JFK-LHR and 2 for ATL-LHR) Over time they would like to buy at least 4 more - additional slots for JFK and ATL plus a slot each at CVG and SLC. Even horse trading with its Skyteam partners AF and AZ wont solve that problem.
Well folks roll up for the show - this is going to be one of the most expensive shopping sales in history. Lets sit back and enjoy it.
Cheers
Timothy
Travelocity India
Tsk Tsk - Sabre heads need to take a lesson in geography. Bombay is not the name of the city - Mumbai is. Or at least be consistent with your errors.
In the new Travelocity India website www.travelocity.co.in when you do a search for a city using the rather convoluted search function (just like that awful global weather search on CNN.com) you will find there is no city called Mumbai. Although, there is a city called Bombay. However the display of hotels comes back with the correct name.
So Travelocity - which is it - Bombay city or Mumbai?
While we are on the subject of the new website - does the use of the name "Travelocity" spell the end of Zuji? Zuji which is now controlled by Sabre has never been a huge success. In fact its performance has and is rather dismal. Traffic at the other websites for travel in many Asian markets, particularly the branded supplier sites, report much better returns.
Get with the program Sabre. Wasting the value of a global brand by having a poor cousin in Asia makes no sense at all. Given the rather embarassing failure of the Japanese website Tabini - carefully hushed up mind you - its time to get the house in order. Perhaps those nice people at TPG will put some sense into the Sabre management. Or at least they can book some considerable savings from supporting a single brand.
Heck if AT&T can flip flop its brand presence in wireless AT&T Wireless --> Cingular (or is that Xingular) --> AT&T Wireless again in the space of 3 years, Travelocity can put Zuji out to pasture now.
Cheers
Timothy
In the new Travelocity India website www.travelocity.co.in when you do a search for a city using the rather convoluted search function (just like that awful global weather search on CNN.com) you will find there is no city called Mumbai. Although, there is a city called Bombay. However the display of hotels comes back with the correct name.
So Travelocity - which is it - Bombay city or Mumbai?
While we are on the subject of the new website - does the use of the name "Travelocity" spell the end of Zuji? Zuji which is now controlled by Sabre has never been a huge success. In fact its performance has and is rather dismal. Traffic at the other websites for travel in many Asian markets, particularly the branded supplier sites, report much better returns.
Get with the program Sabre. Wasting the value of a global brand by having a poor cousin in Asia makes no sense at all. Given the rather embarassing failure of the Japanese website Tabini - carefully hushed up mind you - its time to get the house in order. Perhaps those nice people at TPG will put some sense into the Sabre management. Or at least they can book some considerable savings from supporting a single brand.
Heck if AT&T can flip flop its brand presence in wireless AT&T Wireless --> Cingular (or is that Xingular) --> AT&T Wireless again in the space of 3 years, Travelocity can put Zuji out to pasture now.
Cheers
Timothy
22 March 2007
New Ryanair deal with Expedia
A bloody nose for Travelport/Gullivers/Octupus Travel
A good deal probably for Expedia and another GREAT deal for Ryanair
For the past 2 weeks the website "Ryanairhotels.com" has been displaying random corporate information. Today its very different...
Yes folks Octopus is out and Expedia WWTE is in. I would definitely say its a coup.
Now can the Bellevue boys deliver? That is to be seen
Cheers
Timothy
A good deal probably for Expedia and another GREAT deal for Ryanair
For the past 2 weeks the website "Ryanairhotels.com" has been displaying random corporate information. Today its very different...
Yes folks Octopus is out and Expedia WWTE is in. I would definitely say its a coup.
Now can the Bellevue boys deliver? That is to be seen
Cheers
Timothy
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