CO was revealed to be the purchaser of a recent set of slots at LHR.
A Continental Airlines filing to the US Securities and Exchange Commission has revealed it paid $209m for four pairs of take-off and landing slots at Heathrow Airport.
The most recent price at LHR was pegged at $40 million last year. So clearly a nice fat increase even allowing for the fall of the dollar against the pound. And who did they pay that money to? We believe it was the parent company of GB Airways (then a BA Franchisee). After selling the airline to Easyjet – they retained 4 slot pairs at LHR. This is where they went. A nice tidy profit.
Pity poor BAA and its Spanish owners. I bet they were wishing they had been able to pocket that cash and use some of it to either pay down their debt or improve some services at LHR.
08 March 2008
The electric chair… Literally on BA
One of my fellow bloggers is Tim Hughes who writes THE BOOT
Tim has been on a truly acerbic tear on what he thinks is a personal plot against him by Qantas. Well I am beginning to think the same from BA. As regular readers know – I am pretty vociferous about the way BA is being run and its various misfortunes. Well I am beginning to think its personal.
Disclosure – I am a Gold Card holder (sorry Delta this is where my extra flights went) So I really like the upstairs on a 744. This was a new version of the seats. (Much better by the way from the older ones). But as I sat there – as soon as I touched bear metal I kept getting shocked. So since BA knows I am a Gold holder (for the first time they are actually making an effort to ID me)I think it could be personal. Oh but wait it was ME who chose the seat. So it MUST be all seats…. Sure enough more than one seat has the problem. Not sure if this is due to this particular aircraft or others – but I seem to recall that I had felt it before and just ignored it.
Anyone else felt that electrifying feeling on BA?
Tim has been on a truly acerbic tear on what he thinks is a personal plot against him by Qantas. Well I am beginning to think the same from BA. As regular readers know – I am pretty vociferous about the way BA is being run and its various misfortunes. Well I am beginning to think its personal.
Disclosure – I am a Gold Card holder (sorry Delta this is where my extra flights went) So I really like the upstairs on a 744. This was a new version of the seats. (Much better by the way from the older ones). But as I sat there – as soon as I touched bear metal I kept getting shocked. So since BA knows I am a Gold holder (for the first time they are actually making an effort to ID me)I think it could be personal. Oh but wait it was ME who chose the seat. So it MUST be all seats…. Sure enough more than one seat has the problem. Not sure if this is due to this particular aircraft or others – but I seem to recall that I had felt it before and just ignored it.
Anyone else felt that electrifying feeling on BA?
Expedia's formula rolls into India
After nearly 2 years of dancing with different potential partners including the big 4 Indian Portals – (Makemytrip, Yatra, Cleartrip and TravelGuru) Expedia is now rolling out its own site developed in house.
Starting with Hotels, as it has done in all but the first few makets, and a bit of content might not seem to be a big deal in India where there are very few hotels to even book. However Expedia has one advantage over everyone else – it is already the largest booker of Hotels in India thanks to its worldwide clout.
Domestically Expedia will probably do OK as it connects to the local LCC airlines such as Kingfisher. And this is where it will start to get interesting. The LCCs fall in and out of love for the portals on a regular basis. So it is not uncommon for a carrier not to be present in the portal. This is both by design and by accident or problem.
No one is making much money out of the local LCCs. The yields are too low. Expedia has the advantage of better international reach so should have a better shot at the making money on the international flights as does Makemytrip. Much like the airlines themselves there will have to be a shakeout sooner or later. For now – welcome to the zoo that is India Expedia. Good luck. Good luck also figuring out the taxes on hotels….
Starting with Hotels, as it has done in all but the first few makets, and a bit of content might not seem to be a big deal in India where there are very few hotels to even book. However Expedia has one advantage over everyone else – it is already the largest booker of Hotels in India thanks to its worldwide clout.
Domestically Expedia will probably do OK as it connects to the local LCC airlines such as Kingfisher. And this is where it will start to get interesting. The LCCs fall in and out of love for the portals on a regular basis. So it is not uncommon for a carrier not to be present in the portal. This is both by design and by accident or problem.
No one is making much money out of the local LCCs. The yields are too low. Expedia has the advantage of better international reach so should have a better shot at the making money on the international flights as does Makemytrip. Much like the airlines themselves there will have to be a shakeout sooner or later. For now – welcome to the zoo that is India Expedia. Good luck. Good luck also figuring out the taxes on hotels….
29 February 2008
The Professor will be away for a week.
I will try and write but I am going to enjoy the rigors of ... Berlin and the world's largest travel trade show - ITB.
So if you are there and want to contact me (ply me full of alcohol etc) then please email me timothyo@t2impact.com
Cheers and have a good week
Timothy
So if you are there and want to contact me (ply me full of alcohol etc) then please email me timothyo@t2impact.com
Cheers and have a good week
Timothy
28 February 2008
Allegis again?
OK Hands up those who remember the name Allegis?
Well it seems that a small part of it must live on in people's memories. United and Westin are cooperating on the PS service (premium 757 transcon). Nice pillows and blankies an an Oasis of Calm in the red carpet clubs.
It was a cool idea... too bad it didn't work.
Cheers
Timothy
Well it seems that a small part of it must live on in people's memories. United and Westin are cooperating on the PS service (premium 757 transcon). Nice pillows and blankies an an Oasis of Calm in the red carpet clubs.
It was a cool idea... too bad it didn't work.
Cheers
Timothy
27 February 2008
Gunfight in the West
The West Coast Market Heats Up.
It has been a bit sleepy on the West Coast of late. Sure we have seen a lot of service that went to hubs but not a lot that went North to South. But that is about to change.
Despite an interesting but short lived incursion from Skybus, there has been very little brand new service.
The new services started in 3rd quarter 2007 with a little heralded but very useful new service from Delta’s new partner ExpressJet. Flying Embraer 145s this is not going to set the world alight. Virgin America’s new service though between the major Southern California cities – particularly into San Francisco did spark a reaction. Southwest and Jetblue moved across the Bay and added service from SFO in addition to their OAK service. But this year the Northwest’s airline (Alaska Air based in Seattle) wanted to ensure that no one stepped into their market and offered a very strong schedule of hourly service from LA to Seattle. Beefing up also San Franscico and more flights from PDX sees AS becoming the largest individual airline between the Pacific Northwest and California.
Not to be outdone Virgin announced new service from LAX and SFO to SEA. Then JetBlue started to connect the dots similarly announcing service between LAX and SEA as well as from LGB.
So for one who lives in the Seattle metro area – thanks guys. I appreciate you picking on this market to have a battle. With new service to Germany (LH, FRA-SEA), UK (NW LHR-SEA) and already beefed up service from BA and last year’s addition of flights from CDG to SEA, the place is a hopping. We are looking forward to Air China coming this year.
Cheers
TImothy
It has been a bit sleepy on the West Coast of late. Sure we have seen a lot of service that went to hubs but not a lot that went North to South. But that is about to change.
Despite an interesting but short lived incursion from Skybus, there has been very little brand new service.
The new services started in 3rd quarter 2007 with a little heralded but very useful new service from Delta’s new partner ExpressJet. Flying Embraer 145s this is not going to set the world alight. Virgin America’s new service though between the major Southern California cities – particularly into San Francisco did spark a reaction. Southwest and Jetblue moved across the Bay and added service from SFO in addition to their OAK service. But this year the Northwest’s airline (Alaska Air based in Seattle) wanted to ensure that no one stepped into their market and offered a very strong schedule of hourly service from LA to Seattle. Beefing up also San Franscico and more flights from PDX sees AS becoming the largest individual airline between the Pacific Northwest and California.
Not to be outdone Virgin announced new service from LAX and SFO to SEA. Then JetBlue started to connect the dots similarly announcing service between LAX and SEA as well as from LGB.
So for one who lives in the Seattle metro area – thanks guys. I appreciate you picking on this market to have a battle. With new service to Germany (LH, FRA-SEA), UK (NW LHR-SEA) and already beefed up service from BA and last year’s addition of flights from CDG to SEA, the place is a hopping. We are looking forward to Air China coming this year.
Cheers
TImothy
Congratulations to Heifer International
I am a huge fan of sustainability in development. And despite being in the Travel and Tourism business – I am a big fan of programs that enable people to help themselves. For the past several years we have supported Heifer International as a part of both the T2 and my personal annual charity activity. I have encouraged clients and other members of the T2 team to do the same. Now comes news that they have been recognized with a grant from the Gates Foundation. Here is the official blurb:
On January 25, Heifer announced a four-year $42.8 million grant from The Bill & Melinda Gates Foundation to fund a project to help poor rural farmers in East Africa double their incomes by increasing their production of high quality raw milk to sell to dairies. This is the largest single grant in Heifer's history
I urge you to sign up with Heifer. It is probably one of the most effective forms of giving out there.
Cheers and thanks
Timothy
On January 25, Heifer announced a four-year $42.8 million grant from The Bill & Melinda Gates Foundation to fund a project to help poor rural farmers in East Africa double their incomes by increasing their production of high quality raw milk to sell to dairies. This is the largest single grant in Heifer's history
I urge you to sign up with Heifer. It is probably one of the most effective forms of giving out there.
Cheers and thanks
Timothy
Don’t say its over already? DL+NW merger rumours.
I hear Dusty Springfield in the background singing – you don’t have to say forever just be close at hand….
It looks like things are not going well with the merger discussions at DL and NW. First it was the pilots arguing over the seniority lists. Now it is rumoured (totally unsubstantiated so far) that AF-KL may not be too happy with the current arrangement. However anyway you cut it – things are not rosy with the merger. Both parties on Tuesday put out notes saying “we want to but..”
We remain clearly unimpressed with the merger concept in general at this stage without a clear policy of opening up competition from external sources. Mergers cause less competition and higher prices in the airline market. Therefore by definition failing to meet one of the key criteria established publically by Delta. So any illusions of efficiency are not going to positively impact the consumer. If the US Administration (either current or next) wants to approve it – then they should do so ONLY if there are safeguards to open competition. The easiest way to ensure that is by removing the foreign restrictions and allowed 7th, 8th and 9th freedom traffic. Over at IAG they have been discussing this. Here is the podcast:
Cheers
Timothy
It looks like things are not going well with the merger discussions at DL and NW. First it was the pilots arguing over the seniority lists. Now it is rumoured (totally unsubstantiated so far) that AF-KL may not be too happy with the current arrangement. However anyway you cut it – things are not rosy with the merger. Both parties on Tuesday put out notes saying “we want to but..”
We remain clearly unimpressed with the merger concept in general at this stage without a clear policy of opening up competition from external sources. Mergers cause less competition and higher prices in the airline market. Therefore by definition failing to meet one of the key criteria established publically by Delta. So any illusions of efficiency are not going to positively impact the consumer. If the US Administration (either current or next) wants to approve it – then they should do so ONLY if there are safeguards to open competition. The easiest way to ensure that is by removing the foreign restrictions and allowed 7th, 8th and 9th freedom traffic. Over at IAG they have been discussing this. Here is the podcast:
Cheers
Timothy
25 February 2008
Dude - where's my audience? Facebook (Shock Horror) Audience Decline
In October while preparing a piece on Web Trends I noticed that MySpace on Alexa was starting to show some declines. At the time when I showed this data to an audience in Singapore I was almost booed off the stage for such heresy. Well dearly beloved - it does seem that there are quite a few swallows around so we may actually be witnessing the decline of vanilla Social Networking.
No lesser authority than the UK TIMES online is reporting the same thing now. Here is the article in its entirety.
Speaking purely personally and from a bar stool research study of - well one, I can tell you that I have noticed this fatigue occurring more frequently and persistently. I am a true experimenter. I am always trying new things. However managing all of the distractions is VERY HARD. In January - I turned off Facebook alerts. (Sorry MySpace never really got going). I also unsubscribed to most of the Facebook apps after one of them caused me a lot of bad spam and other assorted nasties to appear on my computer.
Honestly I do not have enough time for a lot of this junk. Facebook is OK but i cannot say I am a huge fan. I cannot see how people live their lives there. Although I empathize with those who do. There are only so many hours in the day. Some times just resting my fingers feels really good. So I am no web socialite (of course being a Cambridge Man don't necessarily support Oxford folks like Boris) but i think I am probably a representative sample of others who are - well just too damned busy for this stuff.
ENJOY!
From The Times
February 22, 2008
Web socialites succumb to ‘Facebook fatigue’Adam Sherwin, Media Correspondent
From politicians to film stars, anyone who was anyone had a Facebook profile. But the social networking phenomenon may have peaked now that the number of British users of the site has fallen for the first time.
Analysts are speaking of “Facebook fatigue” after figures showed a 5 per cent decline from 8.9 million unique visitors to the website in December to 8.5 million last month. The fall could be a seasonal dip - Facebook’s audience is still 712 per cent higher than it was a year ago and 9 per cent higher than three months ago.
The actress Sienna Miller and the Tory MP Boris Johnson are Facebook members. Yet in the fickle world of internet “cool”, the popularity of the site, where users socialise, discuss their passions and exchange photographs, may have reached a plateau.
Facebook, which has an implied valuation of £7 billion after Microsoft took a minority stake, annoyed members last November by publicising details of their shopping habits without their permission.
Facebook: The bluffer’s guide
Forced to sign up by repeated friend requests? Hit the virtual ground running with our virtual guide
Multimedia
Facebook section - full coverage
Background
Careless Facebook users ‘open to identity theft’
Ten essential Facebook accessories
Parents are turning into online spies
Networkers who click with 1,000 ‘friends’
Nic Howell, of the internet industry magazine New Media Age, said: “Social networking is as much about who isn’t on the site as who is. When Tory MPs and major corporations start profiles on Facebook its brand is devalued, driving its core user base into the arms of newer, more credible alternatives.”
Alex Burmaster, European internet analyst at Nielsen Online, which compiled the statistics, believes that Facebook users are finding that managing their virtual life too demanding. “There could be an element of Facebook-fatigue. While building up the number of friends and getting all the alerts was fun for a while, people are possibly finding it hard to manage their networks and the sheer amount of information/updates they now get from this network. For some of the early adopters the novelty has possibly worn off.” He added: “One month of falling audiences doesn’t spell the decline of Facebook or social networking. At some point its phenomenal growth rate would have to end and it’s simply a case of having reached that point.” Other social networking sites panel of nearly 40,000 internet users who have a meter attached to their suffered a decline during the last quarter, including MySpace, owned by News Corporation, the parent company of The Times, which was down 14 per cent and Bebo (8 per cent).
Networks on Yahoo! and Google-owned sites experienced falls of 16 cent and 30 per cent respectively, while Piczo, a site intended for teenagers, lost 56 per cent of its audience.
Nielsen predicted that the next generation of social network sites would cater to specific interests such as travel, business, or wealth. WAYN (Where Are You Now), a travel networking site, had a 25 per cent increase in its British audience in the past year to 461,000, and LinkedIn, a network for professional and business people, recorded a jump from 161,000 to 433,000 users.
Fears over the dissemination of personal information may be affecting Facebook. Members have been warned that they could become victims of identity fraud after giving personal details to strangers.
Neilsen found that 19.2 million (58 per cent of the active UK Internet population) visited a social networking site in January, with the average visitor spending 2 hours 26 minutes on it.
Facebook is being challenged by the BBC’s community web pages, which recorded a 21 per cent increase in the last quarter. The BBC said traffic to the pages was being driven by the popularity of its iPlayer “on demand” service, which has recorded 17 million programme downloads in seven weeks.
Nielsen Online's dtat comes from a panel off nearly 40,000 internet users who have a meter attached to thier computers
No lesser authority than the UK TIMES online is reporting the same thing now. Here is the article in its entirety.
Speaking purely personally and from a bar stool research study of - well one, I can tell you that I have noticed this fatigue occurring more frequently and persistently. I am a true experimenter. I am always trying new things. However managing all of the distractions is VERY HARD. In January - I turned off Facebook alerts. (Sorry MySpace never really got going). I also unsubscribed to most of the Facebook apps after one of them caused me a lot of bad spam and other assorted nasties to appear on my computer.
Honestly I do not have enough time for a lot of this junk. Facebook is OK but i cannot say I am a huge fan. I cannot see how people live their lives there. Although I empathize with those who do. There are only so many hours in the day. Some times just resting my fingers feels really good. So I am no web socialite (of course being a Cambridge Man don't necessarily support Oxford folks like Boris) but i think I am probably a representative sample of others who are - well just too damned busy for this stuff.
ENJOY!
From The Times
February 22, 2008
Web socialites succumb to ‘Facebook fatigue’Adam Sherwin, Media Correspondent
From politicians to film stars, anyone who was anyone had a Facebook profile. But the social networking phenomenon may have peaked now that the number of British users of the site has fallen for the first time.
Analysts are speaking of “Facebook fatigue” after figures showed a 5 per cent decline from 8.9 million unique visitors to the website in December to 8.5 million last month. The fall could be a seasonal dip - Facebook’s audience is still 712 per cent higher than it was a year ago and 9 per cent higher than three months ago.
The actress Sienna Miller and the Tory MP Boris Johnson are Facebook members. Yet in the fickle world of internet “cool”, the popularity of the site, where users socialise, discuss their passions and exchange photographs, may have reached a plateau.
Facebook, which has an implied valuation of £7 billion after Microsoft took a minority stake, annoyed members last November by publicising details of their shopping habits without their permission.
Facebook: The bluffer’s guide
Forced to sign up by repeated friend requests? Hit the virtual ground running with our virtual guide
Multimedia
Facebook section - full coverage
Background
Careless Facebook users ‘open to identity theft’
Ten essential Facebook accessories
Parents are turning into online spies
Networkers who click with 1,000 ‘friends’
Nic Howell, of the internet industry magazine New Media Age, said: “Social networking is as much about who isn’t on the site as who is. When Tory MPs and major corporations start profiles on Facebook its brand is devalued, driving its core user base into the arms of newer, more credible alternatives.”
Alex Burmaster, European internet analyst at Nielsen Online, which compiled the statistics, believes that Facebook users are finding that managing their virtual life too demanding. “There could be an element of Facebook-fatigue. While building up the number of friends and getting all the alerts was fun for a while, people are possibly finding it hard to manage their networks and the sheer amount of information/updates they now get from this network. For some of the early adopters the novelty has possibly worn off.” He added: “One month of falling audiences doesn’t spell the decline of Facebook or social networking. At some point its phenomenal growth rate would have to end and it’s simply a case of having reached that point.” Other social networking sites panel of nearly 40,000 internet users who have a meter attached to their suffered a decline during the last quarter, including MySpace, owned by News Corporation, the parent company of The Times, which was down 14 per cent and Bebo (8 per cent).
Networks on Yahoo! and Google-owned sites experienced falls of 16 cent and 30 per cent respectively, while Piczo, a site intended for teenagers, lost 56 per cent of its audience.
Nielsen predicted that the next generation of social network sites would cater to specific interests such as travel, business, or wealth. WAYN (Where Are You Now), a travel networking site, had a 25 per cent increase in its British audience in the past year to 461,000, and LinkedIn, a network for professional and business people, recorded a jump from 161,000 to 433,000 users.
Fears over the dissemination of personal information may be affecting Facebook. Members have been warned that they could become victims of identity fraud after giving personal details to strangers.
Neilsen found that 19.2 million (58 per cent of the active UK Internet population) visited a social networking site in January, with the average visitor spending 2 hours 26 minutes on it.
Facebook is being challenged by the BBC’s community web pages, which recorded a 21 per cent increase in the last quarter. The BBC said traffic to the pages was being driven by the popularity of its iPlayer “on demand” service, which has recorded 17 million programme downloads in seven weeks.
Nielsen Online's dtat comes from a panel off nearly 40,000 internet users who have a meter attached to thier computers
Virgins seem to be everywhere - and not so cheap
For some time we have seen Virgin Blue evolve from a LCC into - well something that looks remarkably like Ansett except better managed and making some money. However in recent years after the initial blush it too has seen its share of back room ownership struggles that I am sure is still making dear Sir Reg spin in his grave.
Now days after reporting that we believe Virgin Blue is no longer a true LCC airline - it seems the management paid attention and has fallen in love with Air Asia's model. It is rumoured to be looking at setting up JV based in OZ for a true new LCC based on Air Asia.
Virgin Blue is still not quite fish nor fowl and has not been able to achieve the stellar results of some of its fellow (now former) brethren such as RyanAir. Its yields last year were only 9.7% compared to the 21.1% for the aforementioned Irish LCC.
So far Virgin has not done well in trying to get a formal LCC operating, sustaining profits in the model. Perhaps it should not try again! Indeed the last 2 Virgin operations have been anything but LCC.
Cheers
Now days after reporting that we believe Virgin Blue is no longer a true LCC airline - it seems the management paid attention and has fallen in love with Air Asia's model. It is rumoured to be looking at setting up JV based in OZ for a true new LCC based on Air Asia.
Virgin Blue is still not quite fish nor fowl and has not been able to achieve the stellar results of some of its fellow (now former) brethren such as RyanAir. Its yields last year were only 9.7% compared to the 21.1% for the aforementioned Irish LCC.
So far Virgin has not done well in trying to get a formal LCC operating, sustaining profits in the model. Perhaps it should not try again! Indeed the last 2 Virgin operations have been anything but LCC.
Cheers
New Brazillian Airline - the Richard and David show?
Rampant rumours floating around concerning a possible new airline to start in Brazil with David Needleman and Richard Branson as investors.
While it would seem to make sense - this has to be a little on the outside of credibility. Why don't I think this will fly?
Well....
Brazil is a notorious pit of failed airlines. But $200 million is a nice round number.
The purported plan for Embraer E Jets flying all over the country would be rather nice.
But I think TAM and GoL might have something to say about this. With landing slots at both Sao Paolo airports pretty tight, anything else is going to be tough.
Anyway the rumour of adding Branson to the mix would create even greater mystique. But what would they call it? Virgin Blue is already taken. Jet Virgin seems to be somewhat prosaic how about Virgin Agogo. Yes - that will do nicely.
Cheers
While it would seem to make sense - this has to be a little on the outside of credibility. Why don't I think this will fly?
Well....
Brazil is a notorious pit of failed airlines. But $200 million is a nice round number.
The purported plan for Embraer E Jets flying all over the country would be rather nice.
But I think TAM and GoL might have something to say about this. With landing slots at both Sao Paolo airports pretty tight, anything else is going to be tough.
Anyway the rumour of adding Branson to the mix would create even greater mystique. But what would they call it? Virgin Blue is already taken. Jet Virgin seems to be somewhat prosaic how about Virgin Agogo. Yes - that will do nicely.
Cheers
21 February 2008
The World is going crazy...
I swear that there are forces causing mass craziness to occur in the Universe.
Consider the evidence:
1. Qantas Holidays will be now part of Jetset Group
2. Virgin Blue is for sale (Again!!!)
3. Reed Trade Magazines which includes everything from Variety to Flight to Travel Weekly is for sale.
What is the world coming to....
I think I need to take a deep breath and sit this one out.
Consider the evidence:
1. Qantas Holidays will be now part of Jetset Group
2. Virgin Blue is for sale (Again!!!)
3. Reed Trade Magazines which includes everything from Variety to Flight to Travel Weekly is for sale.
What is the world coming to....
I think I need to take a deep breath and sit this one out.
UPDATE: British Airways +m Virgin Price Fixing Lawsuit
Looks like I gave you all bad information.
So here is the good info.
The esteemed law firm of Cohen Milstein Hausfeld & Toll () represented the plaintiffs on both sides of the Atlantic. There are separate websites for the UK () and the USA ()
Each of these sites will give you what you need to register your claim and see the official documentation.
I am busy collecting all my BA segments....
Cheers
Timothy
So here is the good info.
The esteemed law firm of Cohen Milstein Hausfeld & Toll () represented the plaintiffs on both sides of the Atlantic. There are separate websites for the UK () and the USA ()
Each of these sites will give you what you need to register your claim and see the official documentation.
I am busy collecting all my BA segments....
Cheers
Timothy
20 February 2008
Unbundled Pricing Everyone is doing it! MORE INSIDE
But wait - don't order yet - there are more fees and taxes we can charge you....
Many people (HM Government in particular via the OFT) have been railing on the Low Cost Carriers about their pricing practices. In their defense I provide evidence exhibits A and B both concern British Airways.
Exhibit A. British Airways has been fined on both sides of the Atlantic for Price Fixing on Fuel Surcharges. The fact that they get charged at all rather than put into the ticket should be reason enough to demonstrate my point - but there is more.
Exhibit B. British Airways offer of discounted Business Class. (Email dated 2/20/08)
Here is the fine print:
Terms and conditions
* New Club World is available on most flights from IAD, JFK, LAX, MIA, ORD, PHX, SEA, SFO and currently rolling out across the rest of the long-haul fleet. Fares shown are each way based on round-trip 42-day advance business class purchase for outbound travel June 1 — August 31, 2008 from select US gateways to London on British Airways only. Higher fares apply for other travel dates and from other US departure gateways. All fares subject to government approval and do not include government fees and taxes of approx. $265 plus $2.50 September 11th Security Fee. Minimum stay Saturday night. Maximum stay of 11 months. Valid for new bookings only made February 12 — March 13, 2008. Subject to availability. Other significant restrictions apply. Full terms and conditions (click).
Ah but I thought I would check and see what other airlines charge on their special business class. I checked with Delta (who just also happen to be having a biz class sale). Here is Delta's fine print:
Taxes/Fees:
Fares do not include a $3.40 ($3.50 for tickets issued on or after January 1, 2008) Federal Excise Tax, Passenger Facility Charge(s) of up to $4.50 for each flight segment, or the September 11th Security Fee of up to $2.50 for each flight segment. A flight segment is defined as a takeoff and a landing. International fares do not include U.S. International Air Transportation Tax of up to $30.20 ($30.80 for tickets issued on or after January 1, 2008) and U.S. and foreign user, inspection, security or other similarly based charges, fees or taxes of up to $280, depending on itinerary. These taxes and fees are the responsibility of the passenger and must be paid at the time the ticket is purchased.
So - its the same for everyone. It makes the LCCs look not so bad.
So anyone who complains about the LCCs in future - please look at the whole trend.
I thank you for reading
Timothy
Many people (HM Government in particular via the OFT) have been railing on the Low Cost Carriers about their pricing practices. In their defense I provide evidence exhibits A and B both concern British Airways.
Exhibit A. British Airways has been fined on both sides of the Atlantic for Price Fixing on Fuel Surcharges. The fact that they get charged at all rather than put into the ticket should be reason enough to demonstrate my point - but there is more.
Exhibit B. British Airways offer of discounted Business Class. (Email dated 2/20/08)
Here is the fine print:
Terms and conditions
* New Club World is available on most flights from IAD, JFK, LAX, MIA, ORD, PHX, SEA, SFO and currently rolling out across the rest of the long-haul fleet. Fares shown are each way based on round-trip 42-day advance business class purchase for outbound travel June 1 — August 31, 2008 from select US gateways to London on British Airways only. Higher fares apply for other travel dates and from other US departure gateways. All fares subject to government approval and do not include government fees and taxes of approx. $265 plus $2.50 September 11th Security Fee. Minimum stay Saturday night. Maximum stay of 11 months. Valid for new bookings only made February 12 — March 13, 2008. Subject to availability. Other significant restrictions apply. Full terms and conditions (click).
Ah but I thought I would check and see what other airlines charge on their special business class. I checked with Delta (who just also happen to be having a biz class sale). Here is Delta's fine print:
Taxes/Fees:
Fares do not include a $3.40 ($3.50 for tickets issued on or after January 1, 2008) Federal Excise Tax, Passenger Facility Charge(s) of up to $4.50 for each flight segment, or the September 11th Security Fee of up to $2.50 for each flight segment. A flight segment is defined as a takeoff and a landing. International fares do not include U.S. International Air Transportation Tax of up to $30.20 ($30.80 for tickets issued on or after January 1, 2008) and U.S. and foreign user, inspection, security or other similarly based charges, fees or taxes of up to $280, depending on itinerary. These taxes and fees are the responsibility of the passenger and must be paid at the time the ticket is purchased.
So - its the same for everyone. It makes the LCCs look not so bad.
So anyone who complains about the LCCs in future - please look at the whole trend.
I thank you for reading
Timothy
It's Official G-YMMM is headed for the Knackers Yard
As we predicted on January 18th - The B737-200ER that had a lucky escape at LHR - is going to be headed for the scrap heap.
BA and the CAA have announced that the aircraft is beyond economic repair.
Interestingly - and I hope no one is superstitious... this aircraft is only the second 777 to be written off. The first one was a GE powered example that when returned to the Lessors by (old) Varig was so clapped out that they decided to declare it a write off and call for Steptoe. G-YMMM also spent a little time with (old) Varig. Let's hope this is not a trend
Cheers
Timothy
BA and the CAA have announced that the aircraft is beyond economic repair.
Interestingly - and I hope no one is superstitious... this aircraft is only the second 777 to be written off. The first one was a GE powered example that when returned to the Lessors by (old) Varig was so clapped out that they decided to declare it a write off and call for Steptoe. G-YMMM also spent a little time with (old) Varig. Let's hope this is not a trend
Cheers
Timothy
IF you are so inclined... Send your comments to the EC Parliament on the new Code
The EC Code of Conduct has been prepared by Jacques Barrot and his team. Despite a lot of opposition to the plan and new code from the broad spectrum of the industry, the new code seems to favor European based GDS companies.
Since there is only one of these animals - it would seem to focus on the benefit to them.
Regular readers know that I am against half hearted regulation. Either manage or don't. As Ted Turner used to have on his desk a sign that said "Either lead, follow or get out of my way", this is a good place to pay attention to that advice.
If you would like to add your voice to this poorly defined legislation - then I suggest going here:
While I have a lot of respect for M Barrot - I believe that here he has been misled. At least they could have joined the rest of the world and called the class GDS... rather than CRS which still persists in the legislative text.
Since there is only one of these animals - it would seem to focus on the benefit to them.
Regular readers know that I am against half hearted regulation. Either manage or don't. As Ted Turner used to have on his desk a sign that said "Either lead, follow or get out of my way", this is a good place to pay attention to that advice.
If you would like to add your voice to this poorly defined legislation - then I suggest going here:
While I have a lot of respect for M Barrot - I believe that here he has been misled. At least they could have joined the rest of the world and called the class GDS... rather than CRS which still persists in the legislative text.
19 February 2008
GDS are the most cost effective distribution Channel?
Meet The New Profit Champ - Air Arabia
Move over Ryanair, Easyjet, Air Asia and Gol. Say hello to the new king.
OK so my mathematical skills are not always the best but I think I can use a spreadsheet. (Should anyone be able to prove me wrong I will immediately retract this story!)
It looks like we have a new Champion in the airline yield stakes. Its one that most people in Europe and the US - probably Asia have never even heard of let alone flown on.
Its Air Arabia.
For its 2007 results go here: http://www.airarabia.com/Air%20Arabia%20Net%20Profit%20Soars%20to%20AED%20376%20million.html
Frankly the numbers really shocked me. I was expecting a good result but this was very good. So net yield is 29.3% vs 13.5% last year. That is pretty much at the highest I have seen in any carrier. Higher even than Ryanair (2006 FR's numbers put them at the top of the Airline Business profitability league with 21.1% yield). With fares at about the right level for a Low Cost Carrier ($130 each way) they are doing a lot right.
Congrats to Adel Ali and his team.
Cheers
Timothy
OK so my mathematical skills are not always the best but I think I can use a spreadsheet. (Should anyone be able to prove me wrong I will immediately retract this story!)
It looks like we have a new Champion in the airline yield stakes. Its one that most people in Europe and the US - probably Asia have never even heard of let alone flown on.
Its Air Arabia.
For its 2007 results go here: http://www.airarabia.com/Air%20Arabia%20Net%20Profit%20Soars%20to%20AED%20376%20million.html
Frankly the numbers really shocked me. I was expecting a good result but this was very good. So net yield is 29.3% vs 13.5% last year. That is pretty much at the highest I have seen in any carrier. Higher even than Ryanair (2006 FR's numbers put them at the top of the Airline Business profitability league with 21.1% yield). With fares at about the right level for a Low Cost Carrier ($130 each way) they are doing a lot right.
Congrats to Adel Ali and his team.
Cheers
Timothy
British Airways and Virgin pay the price of Price Fixing
Lest anyone think that price fixing and signalling in the airlines is a closed shop affair - BA and VS will both have to fork out $200,000,000 to ticket holders of Long Haul seats from Aug. 11, 2004, through March 23, 2006. And yes folks I sat on quite a few of those seats. During that time BA flew a total of 50 million passengers short and long haul but the fuel surcharge only affects "long haul" seats whose passengers will get up to 10 pounds. Virgin flew about 7.5 million passengers during that time of which 100% was long haul. Virgin passengers get the same amount and of the fund BA pays 2/3rds the balance is Virgin.
This makes an interesting formula as it implies that Virgin is now 1/2 the size of BA long haul.
This is a sorry story as it resulted in casualties on all sides. There are no heroes in this story except perhaps the honesty of Virgin to come clean about the affair and spill the beans. I would be there are either other airlines quaking in their boots about this or others thanking their lucky stars they didn't get caught.
Strangely enough the alliances are one of the best places for refuge. You have to be SO careful not to talk about collusion that in any major discussion on the topic they have a lawyer present!
So anyway - I will be filling out my forms and claiming back my money.
When it comes up this is supposed to be the website to file:
http://www.virginbapassengerrefund.com/
It is showing under construction or a 400 error at the moment.
Sad....
This makes an interesting formula as it implies that Virgin is now 1/2 the size of BA long haul.
This is a sorry story as it resulted in casualties on all sides. There are no heroes in this story except perhaps the honesty of Virgin to come clean about the affair and spill the beans. I would be there are either other airlines quaking in their boots about this or others thanking their lucky stars they didn't get caught.
Strangely enough the alliances are one of the best places for refuge. You have to be SO careful not to talk about collusion that in any major discussion on the topic they have a lawyer present!
So anyway - I will be filling out my forms and claiming back my money.
When it comes up this is supposed to be the website to file:
http://www.virginbapassengerrefund.com/
It is showing under construction or a 400 error at the moment.
Sad....
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