The results are now flooding in - a clear picture is emerging.
The traffic is off. The yield is way down. the number is best expressed by AMR's recent results.
Traffic off by 8+% and total revenues down 20%.
However judging by the last few flights I have been on you wouldn't think so. This also seems to be reflected by the airports numbers. So the travel is stabilizing. But as my recent poll shows - we are not going to see the rebound until 2010 at least.
So are we seeing a fundamental shift?
For once I have to agree with the esteemed Mr Walsh. Traffic is not going to come back the same way. We will see a real change in the corporate market. The business man is actually learning new tricks. The use of Skype and such tools as Webex etc has changed how we do things. The drop in business travel is permanent.
It is however interesting that yesterday I received an email froom British Airways telling me how they have commissioned a study of Harvard Business Review readers who astoundingly it would appear believe that face to face meetings are the best thing.
I reprint the whole text right here:
Dear Professor,
British Airways commissioned a survey of Harvard Business Review readers and the poll shows that nothing can take the place of a face-to-face meeting. We also believe that the bond formed during these meetings can make all the difference.
As you are a loyal Executive Club member and business traveller, I would encourage you to
read the research summary and enter to win a free business trip on British Airways.
Beginning in September, we are dedicating three entire planes from New York, Chicago and Los Angeles to London Heathrow. Simply tell us how connecting face-to-face will help your business grow. If your submission is selected, you and a colleague will be on one of those free international flights.
In the meantime, please feel free to review the highlights of the Harvard Business Review
research. And discover for yourself how face-to-face meetings can help your business grow.
Warm regards,
Anne Tedesco
Vice President, Marketing
I recall that great expression from Microsoft about eating your own dog food. BA has a policy of not allowing its people to travel for business. I think its still in place.... I am sure that Anne must have been in receipt of that memo.
OK so I am perhaps unfairly picking on BA. I am an unloyal customer but my decision to use them remains consistent. From this I have learned that an airline decision is not really about being positive. It is really about the least worst. I realize that a lot of you will not think DUH! the Professor has lost it. But humour me here. The use of a product by its consumers is driven by so many factors. What the airlines must learn is that they need to be far more nimble. The airlines have never been truly tactical in their marketing. The maturity of the internet and its attendant new tools like social media is finally bringing about that change. Airlines are however consistently behind the curve.
What I find very hard to appreciate is that after now about 12 months of the GFC, the airlines are only just now starting to do something seriously different. It could be because all the traditional tools they have used to modify their positions in the market (laying off staff, slashing budgets and yes stopping business travel), have largely failed to move the needle. Only the truly nimble and dare I say it smart airlines (particularly in the LCC category) are making sense of this current market.
So airlines after this pretty harsh half year - I hope that you will finally realize that it is NOT business as usual. And that you will examine ALL aspects of your current marketing and of course this means you are going to have to change how you reach your customers. The easy path is no longer working. Welcome to the brave new world.
And if you need some help... give me a ping
Cheers
16 July 2009
Scenes From A Consultant’s Toolbox – Part 2
I have been playing with mobile data. What a frustrating experience. Commercial models get into the way of the technology. But increasingly it is the way of the future. We are seeing (FINALLY) some real time 3G based services. But don’t buy the hype and be careful in what you buy.
Let me give you some examples. My Crackberry account in the USA is with AT&T. I can have an 3G mobile internet data package and I can have tethering – just not both!!!! How stupid is that!!!! I know a lot of US frustrated iPhone users who are really ticked off at the way the iPhone is locked out of some features and services by AT&T’s hobbled network and commercial practices. Hence my nickname for it – the CryPhone.
Yet the iPhone has tethering capability in the UK with the iPhone licensee O2. You just cannot tether with any other device on O2’s network. Instead you have to buy a dongle (on sale this month for 15 pounds on a pay as you go plan. Now I don’t know about you but typically my PC usage is about 1GB of transmission activity per day (there are several free tools you can use to track the throughput on your PC). So using metered activity is a pain in the rear. However O2 has an interesting set of plans – 500MB costs just 2 pounds per day. So think about this if you are travelling to the UK.
One of the best tethering devices is my other phone (my contract is with O2 in the UK but the phone is unlocked so I can use it with other sim cards). My phone is the excellent SonyEricsson C902. I have the stylish James Bond version – it also comes in basic black and red. As a tethering device it is in my humble opinion far superior to Nokia’s products. However I haven’t tried the new N97 yet. In Australia I bought a Sim and was very happy with the performance. Too bad that it cost me about 1 dollar per MB. So it could have easily cost me 500 dollars a day for my regular usage. Bah Humbug. However that’s better than O2’s roaming rates for mobile data in Europe which is 3 pounds per MB.
So here are some advice points for you if you travel and want international mobile data.
The best plans on the planet are the mobile email plans from T Mobile (USA) and AT&T. Your Blackberry unlimited email including attachments is only 50 dollars worldwide unlimited. Just don’t use voice or surfing.
For mobile data – always look to the number 2 carrier in each market they tend to be cheaper. However some times their plans are a little screwy. For example Optus in Oz has a really bad set of plans. In the UK O2 is better but costs still quite a lot. Consider the purchase of a dongle package. One benefit is that frequently they provide free access to a local Wifi network. For example in the UK the O2 program gives you access to the Cloud Network.
In the USA look at Boingo for a good service with wifi hotspots. Skype zones had a lot of promise but it has become yet another Skype failed initiative.
One thing I really want to try is the Samsung dual sim card phone. Currently a first generation effort – I would really like to see an advanced product. I am still waiting.
Cheers
Let me give you some examples. My Crackberry account in the USA is with AT&T. I can have an 3G mobile internet data package and I can have tethering – just not both!!!! How stupid is that!!!! I know a lot of US frustrated iPhone users who are really ticked off at the way the iPhone is locked out of some features and services by AT&T’s hobbled network and commercial practices. Hence my nickname for it – the CryPhone.
Yet the iPhone has tethering capability in the UK with the iPhone licensee O2. You just cannot tether with any other device on O2’s network. Instead you have to buy a dongle (on sale this month for 15 pounds on a pay as you go plan. Now I don’t know about you but typically my PC usage is about 1GB of transmission activity per day (there are several free tools you can use to track the throughput on your PC). So using metered activity is a pain in the rear. However O2 has an interesting set of plans – 500MB costs just 2 pounds per day. So think about this if you are travelling to the UK.
One of the best tethering devices is my other phone (my contract is with O2 in the UK but the phone is unlocked so I can use it with other sim cards). My phone is the excellent SonyEricsson C902. I have the stylish James Bond version – it also comes in basic black and red. As a tethering device it is in my humble opinion far superior to Nokia’s products. However I haven’t tried the new N97 yet. In Australia I bought a Sim and was very happy with the performance. Too bad that it cost me about 1 dollar per MB. So it could have easily cost me 500 dollars a day for my regular usage. Bah Humbug. However that’s better than O2’s roaming rates for mobile data in Europe which is 3 pounds per MB.
So here are some advice points for you if you travel and want international mobile data.
The best plans on the planet are the mobile email plans from T Mobile (USA) and AT&T. Your Blackberry unlimited email including attachments is only 50 dollars worldwide unlimited. Just don’t use voice or surfing.
For mobile data – always look to the number 2 carrier in each market they tend to be cheaper. However some times their plans are a little screwy. For example Optus in Oz has a really bad set of plans. In the UK O2 is better but costs still quite a lot. Consider the purchase of a dongle package. One benefit is that frequently they provide free access to a local Wifi network. For example in the UK the O2 program gives you access to the Cloud Network.
In the USA look at Boingo for a good service with wifi hotspots. Skype zones had a lot of promise but it has become yet another Skype failed initiative.
One thing I really want to try is the Samsung dual sim card phone. Currently a first generation effort – I would really like to see an advanced product. I am still waiting.
Cheers
Scenes From A Consultant’s Toolbox – Part 1.
Oh Best Beloved! (For those of you who like Kipling. )
As you know my day job is running a consulting business. I am often asked if there is a good tool for communicating Given today’s harsh economic climate reducing costs when traveling as well as reducing travelling in total is important. Online presentations are a cost effective way to save on travel and get your message across. Of course being in the travel business it is probably not necessarily the best thing to be promoting a tool that reduces total travel – well welcome to today’s harsh realities.
So I thought it would be useful for me to give you some little advice on some of the tools that I use.
By now there is probably no one left on the planet who is online who hasn’t heard of skype. But in case you haven’t – it’s a great tool. www.skype.com. My team and I live on Skype. I know many who do too. Too bad it has become a bit of an orphan child at eBay. I have been waiting for months in anticipation for a Skype for Crackberry which was promised for delivery right after the Skype for CryPhones. So far its still “coming Soon” I guess they didn’t actually specify which year.
Speaking of Blackberries – and if you are looking for a cheap alternative to Skype out (to regular phone lines) then look no further than truphone. www.truphone.com. I have been using it for about 6 months and its pretty darn good. It does create a bit of an overhead on the Bold that I have which lengthens the time for call set up. But given my travel profile its worth it, What it does – is to offer a low cost IP connection in many markets to then dial out at greatly reduced cost. My biggest bug bear for international calls is the calls between countries not involving my home market. EG calling country B from Country C and your plan is in Country A. This is rape pillage and other bad things.
For Online Presentations – Webex is the gold standard. But it costs money. So is there a free one? Well there is its called dim dim. And unabashed if you go here and you sign up – I will get an increase in my size of audience. So please do this!. estore.dimdim.com/user/paidSubscription?referralID=[LinkVar-DB-DimdimID] the tool is pretty good too – at least for PCs.
In my next post I will attack the issue of Mobile Data.
Cheers
As you know my day job is running a consulting business. I am often asked if there is a good tool for communicating Given today’s harsh economic climate reducing costs when traveling as well as reducing travelling in total is important. Online presentations are a cost effective way to save on travel and get your message across. Of course being in the travel business it is probably not necessarily the best thing to be promoting a tool that reduces total travel – well welcome to today’s harsh realities.
So I thought it would be useful for me to give you some little advice on some of the tools that I use.
By now there is probably no one left on the planet who is online who hasn’t heard of skype. But in case you haven’t – it’s a great tool. www.skype.com. My team and I live on Skype. I know many who do too. Too bad it has become a bit of an orphan child at eBay. I have been waiting for months in anticipation for a Skype for Crackberry which was promised for delivery right after the Skype for CryPhones. So far its still “coming Soon” I guess they didn’t actually specify which year.
Speaking of Blackberries – and if you are looking for a cheap alternative to Skype out (to regular phone lines) then look no further than truphone. www.truphone.com. I have been using it for about 6 months and its pretty darn good. It does create a bit of an overhead on the Bold that I have which lengthens the time for call set up. But given my travel profile its worth it, What it does – is to offer a low cost IP connection in many markets to then dial out at greatly reduced cost. My biggest bug bear for international calls is the calls between countries not involving my home market. EG calling country B from Country C and your plan is in Country A. This is rape pillage and other bad things.
For Online Presentations – Webex is the gold standard. But it costs money. So is there a free one? Well there is its called dim dim. And unabashed if you go here and you sign up – I will get an increase in my size of audience. So please do this!. estore.dimdim.com/user/paidSubscription?referralID=[LinkVar-DB-DimdimID] the tool is pretty good too – at least for PCs.
In my next post I will attack the issue of Mobile Data.
Cheers
Social Media and Airline Customer Service (Continued)
If I may – I want to weigh in (again) on this subject.
I think it is now very clear that the control over the public image of an airline by one party alone (the airline and its PR hacks) has irrevocably passed. The recent UA Guitar incident has demonstrated the power of the Social Network Community to blow up a single incident into a cause célèbre. However there are implications that many seem to have ignored. The speed with which this incident caught the web’s attention is just as easily aroused as it is diminished. What goes up must come down. Like many things – there will be a spate of copycat incidents that will catch the attention of the “network” and then they will move on something else will happen as it invariably does.
One item I did not previously comment on is the long term residual value. I speak some times to college and school graduates. I am constantly reminding these new entrants to the work force that they need to be very careful what they have on their social networks. A Facebook entry is not just for the short term – once its out there – it can be there forever. The same therefore can be said of a customer service incident. The UA Guitar incident is now immortalized in web annals.
There is something now fundamental that has occurred with regard to brands. Brands are now even more volatile and obviously much less controlled in this environment. Personally I do not subscribe to the notion that brands are dead. However the principle of airline product obfuscation that I have oft written is going to be a dying art. Now that makes, in my humble opinion, a more just and transparent market. Airlines are learning the lessons like everyone else. Let’s just hope that they learn the good lessons like the users of Facebook.
Cheers
I think it is now very clear that the control over the public image of an airline by one party alone (the airline and its PR hacks) has irrevocably passed. The recent UA Guitar incident has demonstrated the power of the Social Network Community to blow up a single incident into a cause célèbre. However there are implications that many seem to have ignored. The speed with which this incident caught the web’s attention is just as easily aroused as it is diminished. What goes up must come down. Like many things – there will be a spate of copycat incidents that will catch the attention of the “network” and then they will move on something else will happen as it invariably does.
One item I did not previously comment on is the long term residual value. I speak some times to college and school graduates. I am constantly reminding these new entrants to the work force that they need to be very careful what they have on their social networks. A Facebook entry is not just for the short term – once its out there – it can be there forever. The same therefore can be said of a customer service incident. The UA Guitar incident is now immortalized in web annals.
There is something now fundamental that has occurred with regard to brands. Brands are now even more volatile and obviously much less controlled in this environment. Personally I do not subscribe to the notion that brands are dead. However the principle of airline product obfuscation that I have oft written is going to be a dying art. Now that makes, in my humble opinion, a more just and transparent market. Airlines are learning the lessons like everyone else. Let’s just hope that they learn the good lessons like the users of Facebook.
Cheers
RyanAir Takes Delivery of 40 New Aircraft in H1 2009
There are published reports of Ryanair taking delivery of 40 brand new 737-800s during the first 6 months of 2009. I have not been able to independently verify this yet. However this bears a lot of credibility. Taking delivery of just less than 1 new aircraft every week has the FR delivery crews being very busy. Indeed only having one such crew would put them out of hours pretty quickly.
So Ryanair which has one of the highest utilization of the 738 on the planet is clearly turning them over fast.
The wily FR team is clearly not resting on their hands while the rest of the market suffers down customer numbers and yield erosion.
Cheers
So Ryanair which has one of the highest utilization of the 738 on the planet is clearly turning them over fast.
The wily FR team is clearly not resting on their hands while the rest of the market suffers down customer numbers and yield erosion.
Cheers
STAR and CO get Green Light – but at what price?
Much has been made of the DOT’s decision to proceed with minimal restrictions on the approval of the enlargement of the Star Alliance with CO and the approval of the new A++ group.
It seems that the DoJ had little influence over the decision despite laying out very clear anti-competitive objections to the proposed (and now approved) action. This would indicate a clear differing of opinions in the matters of air transport amongst the new Administration.
Looking behind the scenes therefore we can expect that there will be a number of future issues where Airline related matters are brought before the two Departments. For example should UAL and CO decide to enter into a merger agreement – a matter that the DoT clearly did not address in their ruling – then Justice would likely form a distinct barrier to that smooth approval process.
I believe that this is going to be a war that will entail many battles and that neither department is likely to give quarter on the subject. There will be heightened sensitivity by DoJ to matters of competition in Aviation related actions in the coming 3 years before the next Administration takes office. That should be interesting for all of us.
Interesting Non?
Cheers
It seems that the DoJ had little influence over the decision despite laying out very clear anti-competitive objections to the proposed (and now approved) action. This would indicate a clear differing of opinions in the matters of air transport amongst the new Administration.
Looking behind the scenes therefore we can expect that there will be a number of future issues where Airline related matters are brought before the two Departments. For example should UAL and CO decide to enter into a merger agreement – a matter that the DoT clearly did not address in their ruling – then Justice would likely form a distinct barrier to that smooth approval process.
I believe that this is going to be a war that will entail many battles and that neither department is likely to give quarter on the subject. There will be heightened sensitivity by DoJ to matters of competition in Aviation related actions in the coming 3 years before the next Administration takes office. That should be interesting for all of us.
Interesting Non?
Cheers
Tripbase Blog Awards
While the Professor didn’t win (well there was not category for Genius Commentator on Travel) Tripbase did a nice job in highlighting some of the best blogs on travel.
Here is the link to the nominees and the winners: Travel Blog Awards
It's worth a peek
http://www.tripbase.com/awards/
Cheers
Here is the link to the nominees and the winners: Travel Blog Awards
It's worth a peek
http://www.tripbase.com/awards/
Cheers
The Ryanair Website Down Issue.
Firstly I am not being an apologist for FR or MOL.
The issue of taking the website down seems to have irked a lot of people. It has to be remembered that FR is a bus company. It is not a fancy airline.
I always felt that Southwest did an excellent job of lowering expectations and then raising them with the delivery. FR doesn’t bother about raising the expectations after lowering them. Its delivery is what it is. HOWEVER unlike LCCs (including WN) it consistently has lower fares than its competitors. Sure there is more than anecdotal evidence that FR charges higher prices in certain instances than its direct competition. However all things considered, they offer lower fares. So that makes it a” what you see is what you” get arrangement between the customer and the airline. Rather than being subtle about it, they just tell you upfront. I can point to innumerable times when I have been confronted with legacy airlines who have the exact same policies and do the exact same things as FR however WITHOUT telling you first.
Bottom line, FR did a good job in getting the word out. The people who will be impacted need to be ready for the outage. If they are not then its Caveat Emptor. Plain and Simple.
Cheers
08 July 2009
The Professor Welcomes The Beat
I am pleased to say that The Beat - David, Jay and Mary Ann amongst a cast of thousands - has started to syndicate The Professor's Wisdom.
If you are a reader for the first time, then welcome and I hope you find my blog postings of value to you.
If you are a previous (lapsed?) reader then welcome back.
The Professor promises to provide informed opinion on the topics of Aviation, Travel and Tourism.
Cheers!
If you are a reader for the first time, then welcome and I hope you find my blog postings of value to you.
If you are a previous (lapsed?) reader then welcome back.
The Professor promises to provide informed opinion on the topics of Aviation, Travel and Tourism.
Cheers!
Watch Out Seattle (Redmond) Here Comes Google OS
The rumours are now possibly future fact. Google has confirmed one of the worst kept secrets that there will be a Google PC OS arriving second half 2010. That means that we can expect "beta" versions sooner than that most likely on netbooks.
This will put pressure on Microsoft to step up to the game. So far however Google has not put a dent into MS's business with Google desktop and webtop based apps. Frankly neither Open Office nor Google docs are really any good other than for perhaps occasional use.
But over time Google will get better.
So here is an interesting thought. If Microsoft was sued by the EC and the US DoJ for tying the web browser to the OS. Should Google be sued for tying the PC OS to the Web browser (Google's OS will be Chrome based)?
Enquiring minds want to know...
Cheers
This will put pressure on Microsoft to step up to the game. So far however Google has not put a dent into MS's business with Google desktop and webtop based apps. Frankly neither Open Office nor Google docs are really any good other than for perhaps occasional use.
But over time Google will get better.
So here is an interesting thought. If Microsoft was sued by the EC and the US DoJ for tying the web browser to the OS. Should Google be sued for tying the PC OS to the Web browser (Google's OS will be Chrome based)?
Enquiring minds want to know...
Cheers
Reed Finally Offloads Travel Weekly
The grande old dame of Travel Business Publications has found a new home with Reed selling the Travel Weekly portfolio still in its possession to the founder of Holiday Autos.
Perhaps now he can reunite the various members of the group and build a true Travel Industry Media source spanning print and web distribution.
Perhaps now he can reunite the various members of the group and build a true Travel Industry Media source spanning print and web distribution.
Star Current and Future Members Unhappy
So the DoJ has taken the gloves off on the ATI for CO to join the Star Alliance.
Justice is clearly sending a message that the concentration of the Alliance model cannot impede competition. And more power to them for finally waking up to that fact. The Europeans up till this point have perhaps been more aggressive - however the fait accompli of several alliances and mergers in the face of airline shut downs has muted their voice in decrying the behavior.
I believe that the DoJ is right in recommending dis-approval of the ATI. At the same time they should also not allow the BA AA transatlantic ATI to proceed. Approving one means by definition approving the other. But what of the existing DL/AF alliance? well there is already and existing Star set of immunity so the balance is really still there. So overall - it probably should be allowed to remain albeit with certain caveats based on performance in the next few years.
Let's hope that rationality trumps expediency.
Cheers
Justice is clearly sending a message that the concentration of the Alliance model cannot impede competition. And more power to them for finally waking up to that fact. The Europeans up till this point have perhaps been more aggressive - however the fait accompli of several alliances and mergers in the face of airline shut downs has muted their voice in decrying the behavior.
I believe that the DoJ is right in recommending dis-approval of the ATI. At the same time they should also not allow the BA AA transatlantic ATI to proceed. Approving one means by definition approving the other. But what of the existing DL/AF alliance? well there is already and existing Star set of immunity so the balance is really still there. So overall - it probably should be allowed to remain albeit with certain caveats based on performance in the next few years.
Let's hope that rationality trumps expediency.
Cheers
07 July 2009
Don't Panic Seattle (Yet!) Boeing and the Second Line
There has been much speculation on the reasons for the Boeing purchase of the 787 Aft fuselage fabrication facility in South Carolina. Before anyone rushes to conclusion - chill out a moment.
It should be remembered that Boeing's grand plan for this Automotive style Just-in Time production process for the 787 was deeply flawed. The 787 is not a Smart Car. (Although at this rate it could end up being a bit of an expensive proposition tying down Boeing as Smart has Mercedes). It is a very complex and highly sophisticated integrated system. The plan to outsource technology and essentially risk to partners all over the world and to essentially out Airbus Airbus has not worked. Boeing will not make the same mistake again.
So Boeing has been quietly bringing back all the services in-house and taking direct control of the major subsystems assembly and indeed the design. With so many problems with the project related to a lack of control - ultimately the fault lies with Boeing. It was too ambitious and too complex. Couple this with a corporate culture that was based on a certain degree of elitism and voila - with the benefit of hindsight it didn't work.
However one must applaud Boeing for recognizing the error of its ways. What one cannot be in admiration of has been how the spin has oozed out of Boeing on the 787 transformation.
Using the threat of the so called second line move to another location outside of Washington State has the politicians all up in a tizzy. Chill people!
For Boeing to move and manage 2 separate production lines given the less than stellar performance in getting just the first plane built does not bode well for the company and its long term stock performance. It also is a bit of a smoke screen to move attention away from Boeing's performance on the project so far.
However the Unions must share a certain level of responsibility in making the project work. So far they have acted responsibly and Boeing should at the very least acknowledge this. Should the Unions start to agitate in the next 24 months - then all they are doing is playing to Boeing's game.
And that's the Professor's opinion. What's yours?
It should be remembered that Boeing's grand plan for this Automotive style Just-in Time production process for the 787 was deeply flawed. The 787 is not a Smart Car. (Although at this rate it could end up being a bit of an expensive proposition tying down Boeing as Smart has Mercedes). It is a very complex and highly sophisticated integrated system. The plan to outsource technology and essentially risk to partners all over the world and to essentially out Airbus Airbus has not worked. Boeing will not make the same mistake again.
So Boeing has been quietly bringing back all the services in-house and taking direct control of the major subsystems assembly and indeed the design. With so many problems with the project related to a lack of control - ultimately the fault lies with Boeing. It was too ambitious and too complex. Couple this with a corporate culture that was based on a certain degree of elitism and voila - with the benefit of hindsight it didn't work.
However one must applaud Boeing for recognizing the error of its ways. What one cannot be in admiration of has been how the spin has oozed out of Boeing on the 787 transformation.
Using the threat of the so called second line move to another location outside of Washington State has the politicians all up in a tizzy. Chill people!
For Boeing to move and manage 2 separate production lines given the less than stellar performance in getting just the first plane built does not bode well for the company and its long term stock performance. It also is a bit of a smoke screen to move attention away from Boeing's performance on the project so far.
However the Unions must share a certain level of responsibility in making the project work. So far they have acted responsibly and Boeing should at the very least acknowledge this. Should the Unions start to agitate in the next 24 months - then all they are doing is playing to Boeing's game.
And that's the Professor's opinion. What's yours?
25 June 2009
United Credit Card Move - Smart or Dumb?
IS THERE A SUBTEXT PLOT ABOUT THE COST OF CLEARING?
By now the debate is ranging far and wide about the wisdom of United Airlines decision to push credit card fees down to the agent in certain circumstances. The airline has been vilified on the subject by the Travel Agent press. No one seems to be springing to their defense - and at this stage neither am I - however I do think the issue needs a little deeper evaluation.
My take on this is simple. Now was not the time to do it.
UAL like many airlines is trying to change the model from supplier paid to user paid. Good if you can make it happen. For now however when you need all the distribution channels you can get - particularly if they result in higher yields then you would not want to be pushing them away. There is no doubt that there are instances where the agent may be using UA's merchant agreement in a not so direct and useful way to UA. For example plating on UA in order to get an unusual ticket issued. However the selective imposition would not be a good idea in my humble opinion today. I just think that United should not have chosen now to have this fight.
Longer term this situation does however represent a skirmish in a bigger set of battles - perhaps even a war of Tolkien proportions. That is the issue of the cost of financial fulfillment.
There is a very clear move on behalf of the credit card companies to shore up their business models. With near banks exiting the financial services market and the big banks getting very much bigger - the number and amount of fees on all transactions is rising and rising rapidly. UA is clearly being mindful of the long term trend of this and are trying to do something about it. They should be commended for starting to bring attention to the subject.
So chaps - this is one issue I am going to be following in the coming months. We are definitely going to see this issue stay near the front burner. I do believe we are going to see a strong focus by the supplier community - particularly airlines - on credit card fees.
Cheers
By now the debate is ranging far and wide about the wisdom of United Airlines decision to push credit card fees down to the agent in certain circumstances. The airline has been vilified on the subject by the Travel Agent press. No one seems to be springing to their defense - and at this stage neither am I - however I do think the issue needs a little deeper evaluation.
My take on this is simple. Now was not the time to do it.
UAL like many airlines is trying to change the model from supplier paid to user paid. Good if you can make it happen. For now however when you need all the distribution channels you can get - particularly if they result in higher yields then you would not want to be pushing them away. There is no doubt that there are instances where the agent may be using UA's merchant agreement in a not so direct and useful way to UA. For example plating on UA in order to get an unusual ticket issued. However the selective imposition would not be a good idea in my humble opinion today. I just think that United should not have chosen now to have this fight.
Longer term this situation does however represent a skirmish in a bigger set of battles - perhaps even a war of Tolkien proportions. That is the issue of the cost of financial fulfillment.
There is a very clear move on behalf of the credit card companies to shore up their business models. With near banks exiting the financial services market and the big banks getting very much bigger - the number and amount of fees on all transactions is rising and rising rapidly. UA is clearly being mindful of the long term trend of this and are trying to do something about it. They should be commended for starting to bring attention to the subject.
So chaps - this is one issue I am going to be following in the coming months. We are definitely going to see this issue stay near the front burner. I do believe we are going to see a strong focus by the supplier community - particularly airlines - on credit card fees.
Cheers
The Not Quite So Strange Case of Qantas
The Professor is currently on a round the world roadshow trip for one of our clients. In doing so - I have been engaging in a social experiment of doing the entire trip in coach. As I chose BA/QF's low RTW fare - I am experiencing the joys of coach travel much of it on Qantas.
Qantas is an airline in transition. It is moving from a pure legacy carrier and under Joyce aiming to remake its future as a feisty HVC - Hybrid Value Carrier. Let me assure you there are no sacred cows anywhere inside Qantas now (perhaps a sacred 'Roo though!!!)
The business strategy under the Dixon era regime seemed to be almost Microsoft like - Embrace and Extend. Betting on the ability to support multiple brands and multiple business models shoring up the uber Brand.
The new guy - another Irishman - Joyce seems to have understood that the GFC is not going to let that model be sustained. So he has started the arduous process of remaking the airline from the inside out. Bringing with him some of his key Lieutenants from Jetstar - he is determined to lower the cost base and at the same time to enhance the organization to adopt new thinking. This type of behavior would not be possible under the old regime - it is still not without risk given the testy nature of the relations with the Unions. Australian Labour relations are not the easiest to deal with. So delicate would be the description of the negotiations that have to be undertaken. But we can expect to see a brighter smarter definitely more agile QF.
The corridors in Mascott (QF's HQ area) are getting more like ghost towns. Whole departments have been axed or merged. Gardening leave has been ordered for many. Indeed outsourcing the IT area to IBM will put many of that team out to grass for a long time.
Joyce is not mincing any words or so his actions are demonstrating. He is determined to make the mainline airline viable in the face of low cost competition and encroachment from external sources. The traditional battle for maintaining the status quo - and thus ensuring QF's protected position seem to be regarded as lost. Now the airline must compete on its product and conventional market tools. The last vestige of the Flying Kangeroo as a matter of public pride and therefore worthy of public protection has vanished. It can only be a matter of time before the Pacific really opens up. Contrast this with the debate over a possible bail out of BA in the UK.
So QF's protected world is now open. The threats come from local (Virgin Australia group with its 4 airlines), Traditional advisaries - SQ and CX etc, The occassional foray into the Oz market by the US airlines - Delta being the latest one this month to start the service. But perhaps one of the most threatening is the encroachment by the GCC airlines - Qatar, Etihad and of course Emirates that has seen that airline rise to being a major carrier on the Trans Tasman routes.
Today's news shows that QF is now not prepared to tolerate Boeing's BS on the 787. Cancelling part of the 787 order is a major psycholigical blow to the program. Nothing earth threatening but definitely a kick in the teeth. Given the severity of the problem in the 787 program - they are looking at a significant additional delay in deliveries to the early customers. Scuttlebutt says that the redesign could add many many months of delay to the program. This puts another issue BACK on the table with the weight/performance. QF was hoping for the ability to operate SYD-LHR nonstop. That is not going to be on the cards for a while in my opinion.
So watch out world. If Joyce gets his way - QF will emerge from the current crisis a much better animal.
Cheers
Qantas is an airline in transition. It is moving from a pure legacy carrier and under Joyce aiming to remake its future as a feisty HVC - Hybrid Value Carrier. Let me assure you there are no sacred cows anywhere inside Qantas now (perhaps a sacred 'Roo though!!!)
The business strategy under the Dixon era regime seemed to be almost Microsoft like - Embrace and Extend. Betting on the ability to support multiple brands and multiple business models shoring up the uber Brand.
The new guy - another Irishman - Joyce seems to have understood that the GFC is not going to let that model be sustained. So he has started the arduous process of remaking the airline from the inside out. Bringing with him some of his key Lieutenants from Jetstar - he is determined to lower the cost base and at the same time to enhance the organization to adopt new thinking. This type of behavior would not be possible under the old regime - it is still not without risk given the testy nature of the relations with the Unions. Australian Labour relations are not the easiest to deal with. So delicate would be the description of the negotiations that have to be undertaken. But we can expect to see a brighter smarter definitely more agile QF.
The corridors in Mascott (QF's HQ area) are getting more like ghost towns. Whole departments have been axed or merged. Gardening leave has been ordered for many. Indeed outsourcing the IT area to IBM will put many of that team out to grass for a long time.
Joyce is not mincing any words or so his actions are demonstrating. He is determined to make the mainline airline viable in the face of low cost competition and encroachment from external sources. The traditional battle for maintaining the status quo - and thus ensuring QF's protected position seem to be regarded as lost. Now the airline must compete on its product and conventional market tools. The last vestige of the Flying Kangeroo as a matter of public pride and therefore worthy of public protection has vanished. It can only be a matter of time before the Pacific really opens up. Contrast this with the debate over a possible bail out of BA in the UK.
So QF's protected world is now open. The threats come from local (Virgin Australia group with its 4 airlines), Traditional advisaries - SQ and CX etc, The occassional foray into the Oz market by the US airlines - Delta being the latest one this month to start the service. But perhaps one of the most threatening is the encroachment by the GCC airlines - Qatar, Etihad and of course Emirates that has seen that airline rise to being a major carrier on the Trans Tasman routes.
Today's news shows that QF is now not prepared to tolerate Boeing's BS on the 787. Cancelling part of the 787 order is a major psycholigical blow to the program. Nothing earth threatening but definitely a kick in the teeth. Given the severity of the problem in the 787 program - they are looking at a significant additional delay in deliveries to the early customers. Scuttlebutt says that the redesign could add many many months of delay to the program. This puts another issue BACK on the table with the weight/performance. QF was hoping for the ability to operate SYD-LHR nonstop. That is not going to be on the cards for a while in my opinion.
So watch out world. If Joyce gets his way - QF will emerge from the current crisis a much better animal.
Cheers
16 June 2009
The Professor Will Be Away... Again + Google
It seems I am not a master of my own destiny these days. So I shall be away from home base for over a month.
During this time I will not be able to post on this blog as often as I like. So my apologies dear readers.
And here is a comment on Google.
Of late I am starting to think that Google has become a passionate force for not so good. I used to admire them a lot more than I do now.
I have also learned to my cost that form dominates function. Making a change on my blog image resulted in Google's spider dropping me and also their new functions have started to bypass sites such as my blog. Apparently I was not alone - but while others have picked back up - I am languishing and falling behind.
A plot... accidental - deliberate?
Not sure dear reader but it shows the unnecessary power they wield without check
Cheers
During this time I will not be able to post on this blog as often as I like. So my apologies dear readers.
And here is a comment on Google.
Of late I am starting to think that Google has become a passionate force for not so good. I used to admire them a lot more than I do now.
I have also learned to my cost that form dominates function. Making a change on my blog image resulted in Google's spider dropping me and also their new functions have started to bypass sites such as my blog. Apparently I was not alone - but while others have picked back up - I am languishing and falling behind.
A plot... accidental - deliberate?
Not sure dear reader but it shows the unnecessary power they wield without check
Cheers
Ryanair - The First Airline Ever To Publicize An Outage
Well you have to hand it to the boys and girls in Dublin. Calling a spade a spade has never been a problem
So announcing that they will shut the site down on June 24th is a bold but actually pretty fair move.
It is one of the only times I can remember when an airline says it will shut down its site and sets the expectations for how it will handle itself in the process.
I find this very refreshing
Cheers
So announcing that they will shut the site down on June 24th is a bold but actually pretty fair move.
It is one of the only times I can remember when an airline says it will shut down its site and sets the expectations for how it will handle itself in the process.
I find this very refreshing
Cheers
15 June 2009
Do Travel Agents Matter Eh?
In Canada - Yes Sire they do ...
The recent spat over commissions in the vast North of Canada has the Travel Agents - well somewhat in vogue again.
I wont bore with details about the Air Canada and Westjet raise/lower/raise commissions only to make the point that the spat proves that in today's buyer's market the agents are actually very important.
Why? Well if your yield is in the toilet (as it is) it has become an issue of economics for the supply side. Thus the minimal amount that the agents represent in cost compared to the loss of yield actually makes the agents seem like a good deal. For the neighbor to the south, the revenue is off by nearly 30% on only a 6% reduction in passenger numbers (ARC figures for May). That clearly shows that any way to mitigate this drop is good.
What have we seen publicly? Delta introduced 10% on certain routes in the NY market. AC and Westjet settled on 7%. etc etc. So compared to the 10-15% drop in yield for the airlines these commission numbers look actually attractive.
Does this signify that there is a lot of cash awash in the market? Actually when you look behind the numbers we see that the GDSs are still getting wads of cash from the Airlines in GDS transaction costs/fees, commissions are actually rising, the amount of money the publicly traded intermediaries are getting seems to be going north not south. And of course the deals out there for consumers are unheard of.
The airlines are in turmoil and despite the words of wisdom coming from Chairman Willie, we are seeing an about face by the supply side who just 12 months ago still spurned the Agency channel.
So as the pendulum has swung more - let's just take a moment to reflect that there is an opportunity for new found cooperation by the Travel Distribution System as long as people don't get too greedy. That means that the airlines and the user community must continue to look where the costs are and vigorously pursue rooting them out and making the channel(s) more and more efficient. Woe betide anyone who thinks this state of affairs is permanent and they can sit back and sing "Happy Days Are Here Again". Anyone who enables cost reduction in a win win for the suppliers and sellers should be embraced.
But ultimately - this too shall pass. So remember on whose head you trod on the way up. They might just kick you on the way down. As the Emperor Augustus said - Festina Lente - hasten slowly.
Cheers
The recent spat over commissions in the vast North of Canada has the Travel Agents - well somewhat in vogue again.
I wont bore with details about the Air Canada and Westjet raise/lower/raise commissions only to make the point that the spat proves that in today's buyer's market the agents are actually very important.
Why? Well if your yield is in the toilet (as it is) it has become an issue of economics for the supply side. Thus the minimal amount that the agents represent in cost compared to the loss of yield actually makes the agents seem like a good deal. For the neighbor to the south, the revenue is off by nearly 30% on only a 6% reduction in passenger numbers (ARC figures for May). That clearly shows that any way to mitigate this drop is good.
What have we seen publicly? Delta introduced 10% on certain routes in the NY market. AC and Westjet settled on 7%. etc etc. So compared to the 10-15% drop in yield for the airlines these commission numbers look actually attractive.
Does this signify that there is a lot of cash awash in the market? Actually when you look behind the numbers we see that the GDSs are still getting wads of cash from the Airlines in GDS transaction costs/fees, commissions are actually rising, the amount of money the publicly traded intermediaries are getting seems to be going north not south. And of course the deals out there for consumers are unheard of.
The airlines are in turmoil and despite the words of wisdom coming from Chairman Willie, we are seeing an about face by the supply side who just 12 months ago still spurned the Agency channel.
So as the pendulum has swung more - let's just take a moment to reflect that there is an opportunity for new found cooperation by the Travel Distribution System as long as people don't get too greedy. That means that the airlines and the user community must continue to look where the costs are and vigorously pursue rooting them out and making the channel(s) more and more efficient. Woe betide anyone who thinks this state of affairs is permanent and they can sit back and sing "Happy Days Are Here Again". Anyone who enables cost reduction in a win win for the suppliers and sellers should be embraced.
But ultimately - this too shall pass. So remember on whose head you trod on the way up. They might just kick you on the way down. As the Emperor Augustus said - Festina Lente - hasten slowly.
Cheers
HKG Traffic Falls again
6% might not seem like a lot but for the first 5 months of 2009 this is not good news. Worse is that the losses are not abating. May's numbers shows pax were off nearly 13%. Cathy must be suffering badly as the majority of these are going to be business travelers cutting back.
Even the airport is predicting more bad news for June
With China in the doldrums and Swine flu further compounding matters, the recovery will not necessarily be arriving any time soon. Finally the impact of the loss of the trans-shipment (flight from Taiwan can now go direct) Cathay's poisition is looking pretty awful at the moment.
Freight continues to collapse which is the worrying thing for everyone.
Yields are going to stay low for a long while yet.
Cheers
Even the airport is predicting more bad news for June
With China in the doldrums and Swine flu further compounding matters, the recovery will not necessarily be arriving any time soon. Finally the impact of the loss of the trans-shipment (flight from Taiwan can now go direct) Cathay's poisition is looking pretty awful at the moment.
Freight continues to collapse which is the worrying thing for everyone.
Yields are going to stay low for a long while yet.
Cheers
14 June 2009
Swine Flu in Context
The death reported today of the first H1N1 patient in the UK should not be cause for undue alarm. Coming 3 days after the official declaration of pandemic by WHO - the number of cases have risen in the UK by another 11% to over 1400. This shows that the disease is a threat and should not be taken lightly.
However I believe we should not panic.
On my recent travels - I have seen quite a few people sporting facemasks and the like. At the same time - people openly sneezing or with other sundry bad habits continue unabated.
Just remember there is one key thing you can do - WASH YOUR HANDS FREQUENTLY - that is a pretty good way to keep the spread of any disease contained.
Cheers
However I believe we should not panic.
On my recent travels - I have seen quite a few people sporting facemasks and the like. At the same time - people openly sneezing or with other sundry bad habits continue unabated.
Just remember there is one key thing you can do - WASH YOUR HANDS FREQUENTLY - that is a pretty good way to keep the spread of any disease contained.
Cheers
Speculating On The Ryanair Order
So Ryanair is getting a lot of interest in its potential order for up to 300 Aircraft.
Most people poo poo Michael O'Leary as a crank. He frequently floats ideas just for effect. 1 Pound Toilets anyone?
This time however we think he is in deadly earnest and no one can afford to ignore him.
In a year when the NET airline bookings for both Airbus and Boeing have JUST cracked double figures, these sort of numbers are astronomical and terribly important to the stock of both companies. (EADS and Boeing).
The big question really is the likely outcome. So there are 4 doors:
Behind Door #1 is an all Boeing deal. Conventional money is on this one because its somewhat obvious.
Behind Door #2 is an all Airbus deal. This is the risky profile by JL is the master salesman.
Behind Door #3 is a composite deal. This will be expensive for both parties because both suppliers will have to pay extra to allow it.
Behind Door #4 is the goat. IE a laughing MOL.
I am not making any bets - just yet... except the side bet that THERE WILL BE A PR statement during Paris.
I also have a secret bet on something else. I will share with you if it happens. It has to do with a slightly different proposition.
Cheers
Bad Luck Story
Dr Addison Schonland runs the very well put together Podcast and Blogs over at IAG. despite the fact that he is a closet Republican - we do enjoy working together having co-authored 2 studies on LCCs.
Over at his blog is the really sad story of the couple who missed AF447.
http://blackprogram.blogspot.com/2009/06/bad-luck-story-of-week.html
Over at his blog is the really sad story of the couple who missed AF447.
http://blackprogram.blogspot.com/2009/06/bad-luck-story-of-week.html
13 June 2009
Is It Time To Rethink Safety?
We take safety for granted.
We are complacent.
We are in danger.
There are so many studies on the subject of safety that you can drown in the amount of information. It is clear that the travelling public has been essentially "lucky" in that the number of accidents is not higher than it is. Hopefully this luck is not an accident of chance but a result of systematic focus on safety.
One of the most dramatic improvements in cockpit management has been the Electronic Flight Bag - EFB. However the recent incident involving an Emirates A340 at MEL highlights that there is still a problem with the overall safety of the system - namely the human factors side.
http://www.flightglobal.com/articles/2009/05/29/327075/emirates-incident-highlights-electronic-flight-bag-human.html
There is no answer to the question of how to manage safety - it is essentially unmanageable. We just have to hope and pray that the combination of factors that can cause an accident either never happen or that we can create mitigation for them.
Reading the reports of the AF447 accident, it would seem to the layman (and that includes me) that there are circumstances when things go wrong and nothing can be done to fix them if there is a major external distracting event going on. The lessons of Eastern Flight 401 have been researched and analyzed yet the core combination of factors continue to cause either accidents or almost accidents.
The recent revelations of the CO commuter Q400 accident reveals some things that should never have happened. Yet they still do. Crews commuting from more than 2000 miles away and sleeping on couches in a ready-room. Etc Etc.
We all as public and as professionals must be vigilant. We have to ensure that safety is not someone else's job. Its all our job. There is an excellent article in ATW June 2009 entitled back to basics. It makes a sobering read. We cannot just look for politically expedient solutions. We have to bring a culture of endemic focus on safety that embraces us all. We are all part of the solution. We can be thankful to the boys and girls in the front who guide the tubes to their destinations. But they are just part of a machine. That machine needs to work at 100%, all of the time.
Cheers
We are complacent.
We are in danger.
There are so many studies on the subject of safety that you can drown in the amount of information. It is clear that the travelling public has been essentially "lucky" in that the number of accidents is not higher than it is. Hopefully this luck is not an accident of chance but a result of systematic focus on safety.
One of the most dramatic improvements in cockpit management has been the Electronic Flight Bag - EFB. However the recent incident involving an Emirates A340 at MEL highlights that there is still a problem with the overall safety of the system - namely the human factors side.
http://www.flightglobal.com/articles/2009/05/29/327075/emirates-incident-highlights-electronic-flight-bag-human.html
There is no answer to the question of how to manage safety - it is essentially unmanageable. We just have to hope and pray that the combination of factors that can cause an accident either never happen or that we can create mitigation for them.
Reading the reports of the AF447 accident, it would seem to the layman (and that includes me) that there are circumstances when things go wrong and nothing can be done to fix them if there is a major external distracting event going on. The lessons of Eastern Flight 401 have been researched and analyzed yet the core combination of factors continue to cause either accidents or almost accidents.
The recent revelations of the CO commuter Q400 accident reveals some things that should never have happened. Yet they still do. Crews commuting from more than 2000 miles away and sleeping on couches in a ready-room. Etc Etc.
We all as public and as professionals must be vigilant. We have to ensure that safety is not someone else's job. Its all our job. There is an excellent article in ATW June 2009 entitled back to basics. It makes a sobering read. We cannot just look for politically expedient solutions. We have to bring a culture of endemic focus on safety that embraces us all. We are all part of the solution. We can be thankful to the boys and girls in the front who guide the tubes to their destinations. But they are just part of a machine. That machine needs to work at 100%, all of the time.
Cheers
12 June 2009
Once Was Not Enough - Airlines Cut More
Twice was not enough
Will the third round of cuts be enough to bring capacity inline with demand?
Just in time for the Paris Air Show next week we see another dose of (new and really real this time) reality hitting the market. Pursuing the conventional pendulum (aka knee jerk response) to a down turn - we are watching another round of cuts take place in the market. Delta and American shaved another 1-3 points off their capacity in total for the post Labor day schedule. BA is warning of cuts across the board from labour to shuttering OpenSkies. In this month's Air Transport World, Editor Aaron Karp ("Were They Tough Enough? " - http://www.atwonline.com/magazine/currentTOC.html ) makes the case that the bloodletting at the end of 2008 and the first quarter of this year was just not sufficient for the airlines to sustain their business model. The empirical data in support is stark. Yields are in the toilet. US travel agency derived airline passenger revenues were off almost 30% in the month of May 2009 on only a less than 9% drop in passengers. That is pretty bad by any measure.
Those of you who are regulars of this blog will recall that I singled out United last year for not cutting their head count costs commensurate to match the reduction in their fleet.
Now we see the new Boeing CMO 2009-2028 being released and for the first time ever (as far as I can tell) the plane maker is actually cutting its long term forecast. So the pull back is not just temporary. We are seeing a structural change in the market.
http://www.boeing.com/commercial/cmo/index.html
As an aside here it is a great tool and this years version is much easier to use and gives better quality data.
With oil prices rebounding and headed north of $100/ppb, the spectre of the gas guzzling uneconomic fleet is rising again. with effective deflation, rising costs and still declining demand - the airlines are in this perfect storm of bad news. As Willie has exhorted his boys and the rank and file - standard solutions and behavior are not acceptable. However I wonder if the rhetoric matches the execution. And of course while BA is a poster child for this perfect storm of bad news but they are by no means the worst and the sole victim of this situation. At least BA has the ability to control much of its own destiny (Unions willing we think!).
So chaps - brace yourselves for the long haul. There will be more cuts and more belt tightening.
However - while this would be a good time to think about how to radically change the airline cost model not just applying the scalpel, I am just not seeing any evidence of this occurring. Chaps - wake up and smell the coffee. You are being presented with a golden opportunity to make your businesses stronger for the long haul.
Not taking this chance means that the airlines are going to be condemned to having to cut again, and again... Then the opportunity missed will be looked on as a luxury! I hope that in future time I wont have to write about the time when the airlines missed their golden moment.
Cheers
Will the third round of cuts be enough to bring capacity inline with demand?
Just in time for the Paris Air Show next week we see another dose of (new and really real this time) reality hitting the market. Pursuing the conventional pendulum (aka knee jerk response) to a down turn - we are watching another round of cuts take place in the market. Delta and American shaved another 1-3 points off their capacity in total for the post Labor day schedule. BA is warning of cuts across the board from labour to shuttering OpenSkies. In this month's Air Transport World, Editor Aaron Karp ("Were They Tough Enough? " - http://www.atwonline.com/magazine/currentTOC.html ) makes the case that the bloodletting at the end of 2008 and the first quarter of this year was just not sufficient for the airlines to sustain their business model. The empirical data in support is stark. Yields are in the toilet. US travel agency derived airline passenger revenues were off almost 30% in the month of May 2009 on only a less than 9% drop in passengers. That is pretty bad by any measure.
Those of you who are regulars of this blog will recall that I singled out United last year for not cutting their head count costs commensurate to match the reduction in their fleet.
Now we see the new Boeing CMO 2009-2028 being released and for the first time ever (as far as I can tell) the plane maker is actually cutting its long term forecast. So the pull back is not just temporary. We are seeing a structural change in the market.
http://www.boeing.com/commercial/cmo/index.html
As an aside here it is a great tool and this years version is much easier to use and gives better quality data.
With oil prices rebounding and headed north of $100/ppb, the spectre of the gas guzzling uneconomic fleet is rising again. with effective deflation, rising costs and still declining demand - the airlines are in this perfect storm of bad news. As Willie has exhorted his boys and the rank and file - standard solutions and behavior are not acceptable. However I wonder if the rhetoric matches the execution. And of course while BA is a poster child for this perfect storm of bad news but they are by no means the worst and the sole victim of this situation. At least BA has the ability to control much of its own destiny (Unions willing we think!).
So chaps - brace yourselves for the long haul. There will be more cuts and more belt tightening.
However - while this would be a good time to think about how to radically change the airline cost model not just applying the scalpel, I am just not seeing any evidence of this occurring. Chaps - wake up and smell the coffee. You are being presented with a golden opportunity to make your businesses stronger for the long haul.
Not taking this chance means that the airlines are going to be condemned to having to cut again, and again... Then the opportunity missed will be looked on as a luxury! I hope that in future time I wont have to write about the time when the airlines missed their golden moment.
Cheers
11 June 2009
1 Swallow? Try 5 - Assessment of ARC 2009 Year to Date
So we now have 5 full months under our belt and the variances shown from the extra day in 2008 and the differences in Easter now all mitigated, what can we see from the ARC data.
Well we see that the transaction numbers have been slowly improving. But where the big hole exists - its in yield. This bodes badly for the rest of the year for the airlines.
Transactions improved to only being down 8.4% BUT the sales totals are off just under 30%. That means that the airlines must be heavily discounting to maintain revenues. With commissions creeping back into the Airlines and agencies lexicon - something has to be done to improve yield. The airlines don't have the bounce of a strong book of revenue to fall back on either. this puts the airlines into that nastiest of all quandaries. Whether to discount further to capture just about any cash that's out there or to start investing in smart distribution arrangements to boost traffic and reduce COGS.
The drop in sales tracks directly with the drop in commercial traffic. We estimate across the board as a generalization that the market is off 15%. Stories coming from BA, LH and premier GCC and Asian carriers indicate that premium traffic is just off by 30%. No amount of 2 for 1's are going to improve this yield. Further the corporate wallets are going to stay shut for at least through the summer months. Even the last 2 quarters of 2009 are not going to look that much better as the Corporate traveler adjusts to the lack of approved spending.
Chaps we are not anywhere near the bottom yet.
Cheers
Well we see that the transaction numbers have been slowly improving. But where the big hole exists - its in yield. This bodes badly for the rest of the year for the airlines.
Transactions improved to only being down 8.4% BUT the sales totals are off just under 30%. That means that the airlines must be heavily discounting to maintain revenues. With commissions creeping back into the Airlines and agencies lexicon - something has to be done to improve yield. The airlines don't have the bounce of a strong book of revenue to fall back on either. this puts the airlines into that nastiest of all quandaries. Whether to discount further to capture just about any cash that's out there or to start investing in smart distribution arrangements to boost traffic and reduce COGS.
The drop in sales tracks directly with the drop in commercial traffic. We estimate across the board as a generalization that the market is off 15%. Stories coming from BA, LH and premier GCC and Asian carriers indicate that premium traffic is just off by 30%. No amount of 2 for 1's are going to improve this yield. Further the corporate wallets are going to stay shut for at least through the summer months. Even the last 2 quarters of 2009 are not going to look that much better as the Corporate traveler adjusts to the lack of approved spending.
Chaps we are not anywhere near the bottom yet.
Cheers
Longevity, The Gene Pool and ...Travel?
Mortality - we all to some extent (other than the odd monk or two) fear it.
At my mother's passing a few weeks ago, it fell to me to write the Eulogy and I had to assess what defined her life. She was born in India, moved to Canada, then back to England all before the age of 18. During her marriage to my father - they traveled the world extensively and were a part of what constituted then, the jet set. Of course her real passion was always her dogs!
Travel and the cultures they encountered defined the life of my family. My father also was born in a then exotic locale - Shanghai. As I go through the process of closing down the family home - I was struck by how much of what is in the house and was part of my family's life, symbolized that essence of travel - the small mementos and the (in some cases quite large) artifacts they acquired along the way.
Returning to my own home - it struck me that I too have followed that same path. However what was a past time for both parents has turned into a passion for me both professionally and personally.
Travel is far less glamorous today than it was in my parents' time. I recall personal encounters in airports as a child which seemed all quite normal yet today would be regarded as extraordinary. Still the lure of travel affects us all.
However the risk of travel was brought home to us last week with the loss of AF447. My father missed a flight on the original Comet only to be waiting at the airport the next day when news came of the total loss due to a design fault.
My mother lived to a right old age of 98. The week before she died we discussed her coming to visit all her family in the USA this summer. She really loved to travel and frequently - by that I mean every few months - she did so, short and long haul. The family eventually decided to entitle the Eulogy and the service as "A Life Well Lived". I only hope that when it comes time for me to board the great jetliner in the sky, that others will say that Travel defined my life as much as it did hers.
Keep traveling and spread the passion. Travel does indeed make us better people and the world a better place. The longer we live the greater the opportunity to learn and contribute to a better place on this planet. Hopefully that really does get into the gene pool.
Cheers
PS The Professor would like to again thank everyone who sent in emails and wrote cards, Facebook entries and even texts. We encourage everyone who would like to commemorate her life to contribute to her favorite charity which was Guide Dogs for the Blind. There are many such organizations around the world for example:
US: http://www.guidedogs.com/site/PageServer
UK: http://www.guidedogs.org.uk/
I thank you.
At my mother's passing a few weeks ago, it fell to me to write the Eulogy and I had to assess what defined her life. She was born in India, moved to Canada, then back to England all before the age of 18. During her marriage to my father - they traveled the world extensively and were a part of what constituted then, the jet set. Of course her real passion was always her dogs!
Travel and the cultures they encountered defined the life of my family. My father also was born in a then exotic locale - Shanghai. As I go through the process of closing down the family home - I was struck by how much of what is in the house and was part of my family's life, symbolized that essence of travel - the small mementos and the (in some cases quite large) artifacts they acquired along the way.
Returning to my own home - it struck me that I too have followed that same path. However what was a past time for both parents has turned into a passion for me both professionally and personally.
Travel is far less glamorous today than it was in my parents' time. I recall personal encounters in airports as a child which seemed all quite normal yet today would be regarded as extraordinary. Still the lure of travel affects us all.
However the risk of travel was brought home to us last week with the loss of AF447. My father missed a flight on the original Comet only to be waiting at the airport the next day when news came of the total loss due to a design fault.
My mother lived to a right old age of 98. The week before she died we discussed her coming to visit all her family in the USA this summer. She really loved to travel and frequently - by that I mean every few months - she did so, short and long haul. The family eventually decided to entitle the Eulogy and the service as "A Life Well Lived". I only hope that when it comes time for me to board the great jetliner in the sky, that others will say that Travel defined my life as much as it did hers.
Keep traveling and spread the passion. Travel does indeed make us better people and the world a better place. The longer we live the greater the opportunity to learn and contribute to a better place on this planet. Hopefully that really does get into the gene pool.
Cheers
PS The Professor would like to again thank everyone who sent in emails and wrote cards, Facebook entries and even texts. We encourage everyone who would like to commemorate her life to contribute to her favorite charity which was Guide Dogs for the Blind. There are many such organizations around the world for example:
US: http://www.guidedogs.com/site/PageServer
UK: http://www.guidedogs.org.uk/
I thank you.
Social Media And The Act of Hooking Up: No Intimacy And No Loyalty
As I live in America - I am somewhat starved of conventional media's thinking opinions. The BBC and the commercial channels in the UK seem to have a better way of looking into issues - not too superficial and not too self serving. My favorite non-musical radio station where I live is my local NPR outlet KUOW.
On driving to an appointment on Monday I heard a very interesting piece on Sex without Intimacy (a link to the broadcast is below) - this got me thinking of the impact of Social Media on the current generation. If they just want sex without intimacy then surely they have no need for conventional loyalty. And so it seems that as we have changed our channels of communication - the ensuing attachments to (previously) conventional mores seem to have been lost. Perhaps because I am a little older - I value things like loyalty, honour and duty. Today loyalty from Millenials and even Gen X and Gen Y'ers is primarily to one's friends and not to the greater good. Definitely they don't feel the same attachment to brands. If they are the attachment is governed more on the basis of convenience rather than values.
So this got me thinking about brands and loyalty in travel in the age of social media. Bear with me on this one - I think its one of those observations that I hope you will think about.
Therefore it is important for us to consider when pitching to these groups to understand their motivation. While this is probably not a light bulb idea for most people who read this blog - it has taken me quite some time to appreciate it and the depth of the sentiment. It must be that nostalgic streak in me.
http://www.npr.org/templates/story/story.php?storyId=105008712
Listening to the young ladies that were interviewed for the program it somewhat unnerved me to think that they had come to separate the essence of their relationships by splitting the concept of Love Making, Friendship and Intimacy. So too one can infer that these same people have the ability to separate their sentiments and desires when it comes to making purchases - especially for life-style products such as Travel. Please note I am not criticizing this behavior, merely trying to understand the impact of the core thinking by this class of people who are clearly very important to our market.
I put this down to the ability of the young to multi-task like never before and to compartmentalize their emotions and decision making skills. Both left and right sides of the brain. Would that I had that natural skill or that my own brain was rewired in this way. (Banishment of guilt!!!!)
The challenge of brand building in this environment must be enormous. It is probably more relevant today than at any time in the past when one appreciates how difficult it is to build a long lasting brand in this "noisy" environment and just how quickly it can evaporate.
Think about it... ponder the question. Can loyalty actually exist in today's Social Media?
Comments please at your convenience. And don't worry - I wont shout at you nor attempt a virtual Hook Up!
Cheers
On driving to an appointment on Monday I heard a very interesting piece on Sex without Intimacy (a link to the broadcast is below) - this got me thinking of the impact of Social Media on the current generation. If they just want sex without intimacy then surely they have no need for conventional loyalty. And so it seems that as we have changed our channels of communication - the ensuing attachments to (previously) conventional mores seem to have been lost. Perhaps because I am a little older - I value things like loyalty, honour and duty. Today loyalty from Millenials and even Gen X and Gen Y'ers is primarily to one's friends and not to the greater good. Definitely they don't feel the same attachment to brands. If they are the attachment is governed more on the basis of convenience rather than values.
So this got me thinking about brands and loyalty in travel in the age of social media. Bear with me on this one - I think its one of those observations that I hope you will think about.
Therefore it is important for us to consider when pitching to these groups to understand their motivation. While this is probably not a light bulb idea for most people who read this blog - it has taken me quite some time to appreciate it and the depth of the sentiment. It must be that nostalgic streak in me.
http://www.npr.org/templates/story/story.php?storyId=105008712
Listening to the young ladies that were interviewed for the program it somewhat unnerved me to think that they had come to separate the essence of their relationships by splitting the concept of Love Making, Friendship and Intimacy. So too one can infer that these same people have the ability to separate their sentiments and desires when it comes to making purchases - especially for life-style products such as Travel. Please note I am not criticizing this behavior, merely trying to understand the impact of the core thinking by this class of people who are clearly very important to our market.
I put this down to the ability of the young to multi-task like never before and to compartmentalize their emotions and decision making skills. Both left and right sides of the brain. Would that I had that natural skill or that my own brain was rewired in this way. (Banishment of guilt!!!!)
The challenge of brand building in this environment must be enormous. It is probably more relevant today than at any time in the past when one appreciates how difficult it is to build a long lasting brand in this "noisy" environment and just how quickly it can evaporate.
Think about it... ponder the question. Can loyalty actually exist in today's Social Media?
Comments please at your convenience. And don't worry - I wont shout at you nor attempt a virtual Hook Up!
Cheers
10 June 2009
BA AA IB - last chance? Maybe, Maybe Not...
The guns are drawn the submissions are in and the old protagonists are lined up ready for the great shoot out at the Heathrow Coral.
Could this be the last chance for the BAAABI alliance to get its long sought anti-trust alliance approval?
In my humble opinion - there is no certainty one way or the other.
So lets do a quick review.
BA+IB. This has gone nowhere lately due to the GFC and the impact on the premium business market especially LHR-NYC. IB is feeling the pain but perhaps to a lesser extent that BA how is publicly wearing its hair shirt with Willie Walsh being surprisingly open about the extent of the impact on the former UK Flag Carrier. With the pound's fall against the Euro the value proposition would be hard to make in pure financial terms. Therefore I believe that this part of the deal is dead for now.
The Star and DL/AF alliances have powered ahead and built a considerable legal and commercial framework for Transatlantic service. While the product doesn't match the commercial model yet - and it will take some time to do so - these make a compelling case for equal consideration for BA and AA.
Virgin's unaligned status is perhaps the biggest fly in the ointment for the proposed tie up. Sir Richard is vociferous in his opposition. He knows full well that should the alliance be approved then his position as an independent will become almost if not actually untenable.
On the regulatory front - the Regulators have bowed to airline pressure and suspended some key anti-competitive measures such as the use it or lose it rule at major EU airports.
So will it happen?
My personal opinion is that judging from recent approvals under the current incumbent of the EC's Transportation Czar that their will be tacit approval. However not so fast. The EC has launched investigations into the LH dominance while at the same time approving LH's acquisition of BD. There is no rush on anyone's part at the moment. The sea of red ink - with IATA screaming BASTA - will likely be $9 billion this year. There really is no urgency to get this done. The impatience of BA and AA even if Transportation gives them approval will have to wait for significant anti competitive investigation that frankly could take years.
Like I said at the beginning - this has yet to run its course and while another battle with the old gunslingers shooting at each other doesn't mean the end is in sight.
I think we can rest easy in our beds knowing that there will not be any major casualties and even if someone does get wounded - they are going to get up and fight another day. Wyatt Arpy and Doc Walsh are not going to be the heroes, not today anyway.
Cheers
08 June 2009
WIT Program Focuses on Startups
I have always had a soft spot for start ups. In my career I have probably reviewed hundreds of business plans and heard innumerable pitches of good ideas and frankly some real corkers.
For WIT in Singapore October 20-23 entrepreneurs will be given the chance to pitch to some of the most experienced people in the field and a crack at a 50,000 dollar grant. For full details go here:
http://www.webintravel.com/index.php/newsroom/39-news/492-wit-start-up-pitch-in-full-swing.html
The process starting now will lead up to a chance to pitch in front of a live audience during WIT's 5th anniversary session.
May the best idea win!
Cheers
For WIT in Singapore October 20-23 entrepreneurs will be given the chance to pitch to some of the most experienced people in the field and a crack at a 50,000 dollar grant. For full details go here:
http://www.webintravel.com/index.php/newsroom/39-news/492-wit-start-up-pitch-in-full-swing.html
The process starting now will lead up to a chance to pitch in front of a live audience during WIT's 5th anniversary session.
May the best idea win!
Cheers
The Professor Returns
Dear Readers
I hope you will forgive my silence over the last 3 weeks. I took some urgent time due to the passing of my mother who made it to the grand old age of 98.
I hope to return to regular posting in the coming days.
Thanks for your understanding and all the notes of condolences.
Cheers
I hope you will forgive my silence over the last 3 weeks. I took some urgent time due to the passing of my mother who made it to the grand old age of 98.
I hope to return to regular posting in the coming days.
Thanks for your understanding and all the notes of condolences.
Cheers
15 May 2009
Brits Want It Warm - But Where?
Those nice people at Skyscanner have been happy to share their search data with us.
Here are the list of risers:
Going Up – the biggest rising summer holiday destinations for Brits
1. Bangkok, Thailand (+271%)
2. Los Angeles, USA (+170%)
3. Porto, Portugal (+163%)
4. Dalaman, Turkey (+160%)
5. Orlando, USA (+158%)
6. Istanbul, Turkey (+157%)
7. Sharm El Sheik, Egypt (+156%)
8. Bodrum, Turkey (+153%)
9. Burgas, Bulgaria (+152%)
10. Oslo, Norway (+143%)
And the Biggest Losers?
Going Down – biggest falls in interest of summer holiday destinations for Brits
1. Prague, Czech Republic (-15%)
2. Cork, Republic of Ireland (-13%)
3. Paphos, Cyprus (-11%)
4. Geneva, Switzerland (-6.5%)
5. Palma, Spain (-6%)
6. Pisa, Italy (-5.5%)
7. Nice, France (-5%)
8. Bordeaux, France (-4.5%)
9. Menorca, Spain (-4%)
10. Venice, Italy (-3%)
Biggest rises and losses in flight searches on Skyscanner.net for summer 09 (May 1st-Aug 30th) compared to summer 08. Flights from UK airports.
Interesting - draw your own conclusion. For more details go to www.skyscanner.net
Cheers
Here are the list of risers:
Going Up – the biggest rising summer holiday destinations for Brits
1. Bangkok, Thailand (+271%)
2. Los Angeles, USA (+170%)
3. Porto, Portugal (+163%)
4. Dalaman, Turkey (+160%)
5. Orlando, USA (+158%)
6. Istanbul, Turkey (+157%)
7. Sharm El Sheik, Egypt (+156%)
8. Bodrum, Turkey (+153%)
9. Burgas, Bulgaria (+152%)
10. Oslo, Norway (+143%)
And the Biggest Losers?
Going Down – biggest falls in interest of summer holiday destinations for Brits
1. Prague, Czech Republic (-15%)
2. Cork, Republic of Ireland (-13%)
3. Paphos, Cyprus (-11%)
4. Geneva, Switzerland (-6.5%)
5. Palma, Spain (-6%)
6. Pisa, Italy (-5.5%)
7. Nice, France (-5%)
8. Bordeaux, France (-4.5%)
9. Menorca, Spain (-4%)
10. Venice, Italy (-3%)
Biggest rises and losses in flight searches on Skyscanner.net for summer 09 (May 1st-Aug 30th) compared to summer 08. Flights from UK airports.
Interesting - draw your own conclusion. For more details go to www.skyscanner.net
Cheers
Indaba-2009 - More of the Same
The Professor was not able to go to Indaba in Durban ZA this year... I do hope to next!
So how was it? From a distribution and general sentiment point of view - the optimist in me would say quiet.
The Professor's local spy noted that it was much quieter and wetter than last year, crowds were well down. The opening night beach party was postponed for an hour, but the rain was coming down so hard that not many people went anyway. They do need to think about this in future.
Travelport had a breakfast function and announced nothing (again).
Announcements of a new deal between Travelport and SAA have been imminent for some time but don't hold your breath.
Cheers - there is always next year
So how was it? From a distribution and general sentiment point of view - the optimist in me would say quiet.
The Professor's local spy noted that it was much quieter and wetter than last year, crowds were well down. The opening night beach party was postponed for an hour, but the rain was coming down so hard that not many people went anyway. They do need to think about this in future.
Travelport had a breakfast function and announced nothing (again).
Announcements of a new deal between Travelport and SAA have been imminent for some time but don't hold your breath.
Cheers - there is always next year
US ARC numbers - Getting Better?
Pre-Swine/Pig/Mexican/H1N1 Flu numbers have just been published for Jan-April 2009 for US agency sales.
They may show a little bit of hope - however the possibility has been dashed with the early returns for May as reported by Travelport that show transactions dropping yet again.
Sorry chaps... lets hope for a recovery in June.
Cheers
14 May 2009
Do Web Ads Have Time Period Sensitivity?
This is a fascinating question - is there a prime time to the web when advertising is better received.
As we all know (or should know by now) the web is now absorbing as much mindshare as TV. For certain population segments the web has surpassed that of TV. Conan O'Brien who takes over from Jay Leno on the Tonight Show June 1st is even running ads on the US Network NBC touting that his show looks better on TELEVISION.
eMarketer using UK research drawn from Lightspeed Research and the Internet Advertising Bureau (IAB UK), show that the best time is (not surprisingly) night time.
http://www.blogger.com/post-create.g?blogID=34367341
Now note that because effectively you live in REAL time on the web - yet you can time shift tv - this is more effective information that can be used. Thus Evening viewers really are evening viewers rather than slotting a commercial into US Prime Time TV that has a greater than 40% chance that it will be time shifted.
But perhaps we should accept that the amount of influence formal advertising has over us has diminished over time and now the new "Hidden Persuaders"* are those who run Google and Facebook.
Time to finally move over Madison Avenue - its all about the Valley now.
Cheers
* For those who are tender in their youth and don't get the reference - go here: http://en.wikipedia.org/wiki/Vance_Packard
As we all know (or should know by now) the web is now absorbing as much mindshare as TV. For certain population segments the web has surpassed that of TV. Conan O'Brien who takes over from Jay Leno on the Tonight Show June 1st is even running ads on the US Network NBC touting that his show looks better on TELEVISION.
eMarketer using UK research drawn from Lightspeed Research and the Internet Advertising Bureau (IAB UK), show that the best time is (not surprisingly) night time.
http://www.blogger.com/post-create.g?blogID=34367341
Now note that because effectively you live in REAL time on the web - yet you can time shift tv - this is more effective information that can be used. Thus Evening viewers really are evening viewers rather than slotting a commercial into US Prime Time TV that has a greater than 40% chance that it will be time shifted.
But perhaps we should accept that the amount of influence formal advertising has over us has diminished over time and now the new "Hidden Persuaders"* are those who run Google and Facebook.
Time to finally move over Madison Avenue - its all about the Valley now.
Cheers
* For those who are tender in their youth and don't get the reference - go here: http://en.wikipedia.org/wiki/Vance_Packard
Latest Airline TLA/Buzzword - ATI
So the airlines all want it - legislators (as if they don't have enough to do are very happy to enjoy this distraction) - what the heck am I talking about ATI?
Anti
Trust
Immunity
So frankly I am not a huge fan of creating specific exemptions from good laws. Anti-Trust Immunity means that you are engaging in a practice that you freely admit is anti-Trust (and therefore against the law) yet you want to be exempt so you can engage in something that well is not exactly consumer friendly.
I prefer Black and White. Grey/Gray is not a good color combination.
At the moment there is a significant debate driven largely by Continental's shift from Skyteam to Star and by the expansion of the 3 big alliances. BA-AA-IB (that's BAAABI to regulars of this blog) is still out there. Now the BTC has thrown its voice in support of AA in this manner.
So let's see if I get this right. Several OneWorld airlines are requesting ATI so that they can combine their resources at LHR and across the Atlantic (in normal times among the most profitable routes on the planet), OK fair enough so far. But by combining them - they have a footprint that is at least bigger than all their competitors combined? The justification? the other ATI players have bigger footprints in their home markets. Following their logic this safeguards competition?
Sorry I just don't and cannot buy that argument.
Interestingly enough Air Transport World in their latest editorial penned by Perry Flint is voicing its objection to the EC proposal to make the ATI automatically reviewed at least every 3 years.
I really think that we need to have good competition. We need to have fair competition. I am against ATI. I hope that in future - there will be a clear formula that can emerge that will allow airlines to compete truly competitively without Government Intervention except for consumer protection.
Right now I don't see it. I guess I am more in the Richard Branson camp on this one.
This is going to be a battle that will run for some time yet. May the fairest of them all win out.
Cheers
Anti
Trust
Immunity
So frankly I am not a huge fan of creating specific exemptions from good laws. Anti-Trust Immunity means that you are engaging in a practice that you freely admit is anti-Trust (and therefore against the law) yet you want to be exempt so you can engage in something that well is not exactly consumer friendly.
I prefer Black and White. Grey/Gray is not a good color combination.
At the moment there is a significant debate driven largely by Continental's shift from Skyteam to Star and by the expansion of the 3 big alliances. BA-AA-IB (that's BAAABI to regulars of this blog) is still out there. Now the BTC has thrown its voice in support of AA in this manner.
So let's see if I get this right. Several OneWorld airlines are requesting ATI so that they can combine their resources at LHR and across the Atlantic (in normal times among the most profitable routes on the planet), OK fair enough so far. But by combining them - they have a footprint that is at least bigger than all their competitors combined? The justification? the other ATI players have bigger footprints in their home markets. Following their logic this safeguards competition?
Sorry I just don't and cannot buy that argument.
Interestingly enough Air Transport World in their latest editorial penned by Perry Flint is voicing its objection to the EC proposal to make the ATI automatically reviewed at least every 3 years.
I really think that we need to have good competition. We need to have fair competition. I am against ATI. I hope that in future - there will be a clear formula that can emerge that will allow airlines to compete truly competitively without Government Intervention except for consumer protection.
Right now I don't see it. I guess I am more in the Richard Branson camp on this one.
This is going to be a battle that will run for some time yet. May the fairest of them all win out.
Cheers
LAN Loses Baggage Container To JAL 747
Or better known as LD2 meets outboard starboard engine
At LAX a passing JAL 747-400 pax aircraft sucked in a loose LAN owned LD1 lower deck container. It could have been a LD3 we cannot tell - LAN owns both types. The exact details are on Monday 11 May 2009, a metal baggage container - measuring approximately 5 feet by 5 feet by 4 feet - was sucked into the engine of a Japan Airlines Boeing 747 with 245 passengers from Los Angeles International Airport. The accident occurred about 1:30 p.m. when Flight 61 to Narita, Japan, pulled back from Gate 101 at the Tom Bradley International Terminal. Airport officials said the vacuum created by the air intake of the left outboard engine was so strong it pulled the empty container off a baggage cart that was either parked or driven too close to the aircraft. There were no injuries and other arrangements were made for the 245 passengers and 18 crew members
The result - a great day for Youtube: http://www.youtube.com/watch?v=picE8ZvknpA
At LAX a passing JAL 747-400 pax aircraft sucked in a loose LAN owned LD1 lower deck container. It could have been a LD3 we cannot tell - LAN owns both types. The exact details are on Monday 11 May 2009, a metal baggage container - measuring approximately 5 feet by 5 feet by 4 feet - was sucked into the engine of a Japan Airlines Boeing 747 with 245 passengers from Los Angeles International Airport. The accident occurred about 1:30 p.m. when Flight 61 to Narita, Japan, pulled back from Gate 101 at the Tom Bradley International Terminal. Airport officials said the vacuum created by the air intake of the left outboard engine was so strong it pulled the empty container off a baggage cart that was either parked or driven too close to the aircraft. There were no injuries and other arrangements were made for the 245 passengers and 18 crew members
The result - a great day for Youtube: http://www.youtube.com/watch?v=picE8ZvknpA
EC Gets Tough On Air Ticket Pricing (Update - see at end)
The European Commission is on a mission to force airline tickets to be displayed to the consumer as clearly and as plainly as well as - er - paint. Thus the price offered is the price you pay. A collision course you might say with the airlines and their distributors who are trying to drive ancillary revenue from add-ons. Something that many airlines believe and are now demonstrating is actually saving their behinds.
The EC has a clear position and has enacted legislation to ensure that the conditions are clear and unambiguous. EC Vice President Antonio Tajani (ITALY), in charge of Transport said, "Applying full price transparency is an obligation under the air services regulation. It is a duty for airlines to impose high standards across the industry; it is our responsibility to ensure that all players respect the same rules. This is of first and foremost importance for the consumer who wants to compare prices across airlines and make a real choice."
Thanks to Professor Andrew in Saint Louis for this tip. Today (May 14th) the EC published is second report. There are several links to go to:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/783&format=HTML&aged=0&language=EN&guiLanguage=en
For the first round of tables go here:
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/287&format=HTML&aged=0&language=EN&guiLanguage=en
So far they are not naming the bad people only the good ones or the ones "not yet in compliance".
Bottom line folks - the US could learn a thing or two about this form of consumer protection. You can be sure the Obama Administration and Jim Oberstar http://oberstar.house.gov/ are all over this one. Will we see a US bill of rights or a charter of the same sort WITH teeth? not likely at this stage.
However it is clear that if the airline play the ancillary revenue obfuscation game - it is inviting re-regulation. Be careful what you wish for!
Cheers
The EC's enforcement page was down when I wrote the first version of this post. Therefore you can now find the enforcement details updated here:
http://ec.europa.eu/consumers/enforcement/sweep/index_en.htm
The EC has a clear position and has enacted legislation to ensure that the conditions are clear and unambiguous. EC Vice President Antonio Tajani (ITALY), in charge of Transport said, "Applying full price transparency is an obligation under the air services regulation. It is a duty for airlines to impose high standards across the industry; it is our responsibility to ensure that all players respect the same rules. This is of first and foremost importance for the consumer who wants to compare prices across airlines and make a real choice."
Thanks to Professor Andrew in Saint Louis for this tip. Today (May 14th) the EC published is second report. There are several links to go to:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/783&format=HTML&aged=0&language=EN&guiLanguage=en
For the first round of tables go here:
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/287&format=HTML&aged=0&language=EN&guiLanguage=en
So far they are not naming the bad people only the good ones or the ones "not yet in compliance".
Bottom line folks - the US could learn a thing or two about this form of consumer protection. You can be sure the Obama Administration and Jim Oberstar http://oberstar.house.gov/ are all over this one. Will we see a US bill of rights or a charter of the same sort WITH teeth? not likely at this stage.
However it is clear that if the airline play the ancillary revenue obfuscation game - it is inviting re-regulation. Be careful what you wish for!
Cheers
The EC's enforcement page was down when I wrote the first version of this post. Therefore you can now find the enforcement details updated here:
http://ec.europa.eu/consumers/enforcement/sweep/index_en.htm
Busy Week... Lots of Stories!
So this has been a busy few weeks. While I have been on the road - I have spent some time trying to understand the state of the travel "economy". There are some noticeable representative signs of the recession. Hotels have fewer staff. Whole floors have been shut off. Restaurants are noticeably less full. etc etc.
The big question for many remains are we there yet? There being the bottom of the curve. Even if we are "there" which a few people seem to believe - the next sequential question is what sort of recovery will we have and how long will it take to return to "normal" - whatever that is.
The general consensus seems to be that the general market is down around 12 points. Consistent with what I have been saying so far - this is the 15%. What we are seeing continues to confirm the position that the GDSs are suffering far worse than the overall market. This is due to the nature of the bulk of their business being dependent on the corporate market. Travelport's numbers this week are stark evidence of the depth of the downturn. Worldspan's numbers continue to plummet Galileo is not doing much better.
The retraction is affecting just about everyone. We do see some bright spots. Norwegian is a good example - they seem to be profiting from the re-trenchment of SAS. LAN is another example who is determined to face the recession by expanding. Despite some pretty awful numbers - Lufthansa seems determined to bulk up through acquisition of some smaller players in Europe.
So here are some other stories that have caught my eye and a few comments:
Ryanair continues its relentless push towards the automated airline. One major new charge - lose your automated boarding pass and you have to pay the equivalent of $55. To the relief of Americans coming to Europe, FR has announced that it will not be charging the fat tax - with a caveat. As soon as they figure out how to collect it without disrupting 25 minute turn arounds - then you can expect it to come back.
Air Jamaica has a new twist on the second bag price. Oh yes we make you pay and we dont guarantee delivery on this flight. Come back tomorrow was a headline in Travel Weekly. Not that JM's bag services have been anything to write home about of late!
Chris Rodrigues is relinquishing the CEO title to his deputy at Visit Britain. Looks like he wants a more political focus in the run up to the UK Olympics in 3 years.
ATM was great say the organizers. You know my opinion. It really was a lot less than last year. So far I have not seen official statistics other than the number of stands - I wonder of that quantity - how many of them were actually occupied.
Speaking of Dubai - this week's stupid vendor tricks award goes to FlyDubai.
Here is a snap shot of their announcements page.
As you can see - even though they dont start service until June they want to default the booking widget to today's date. Tsk Tsk. For a professional outfit like FZ, they (and their provider Radixx) should do better. Still I wish them all the best for their first flights that take off on June 1st. Air Arabia watch out - these guys are coming for your blood!
Also Emirates (no relation to FlyDubai) has concluded a deal with BT to consolidate their call centers into a single global comms entity. More power to them on this one - their 9 CCs and then various CTOs will now be linked by a new network provided by BT.
SITA announced one of the first deliverables in its next gen PSS - the Customer Journey CJ to replace the former passenger record we all know and love called the PNR. Best of luck to Jim Peters and his crew on this one.
And finally - latest to hold out the hand or more accurately point the nose into the stimulus trough is Sabre. They are raising dire warnings of hell fire and brimstone if the government doesnt do something to stimulate travel (and consequently improve Sabre's GDS bookings!).
The big question for many remains are we there yet? There being the bottom of the curve. Even if we are "there" which a few people seem to believe - the next sequential question is what sort of recovery will we have and how long will it take to return to "normal" - whatever that is.
The general consensus seems to be that the general market is down around 12 points. Consistent with what I have been saying so far - this is the 15%. What we are seeing continues to confirm the position that the GDSs are suffering far worse than the overall market. This is due to the nature of the bulk of their business being dependent on the corporate market. Travelport's numbers this week are stark evidence of the depth of the downturn. Worldspan's numbers continue to plummet Galileo is not doing much better.
The retraction is affecting just about everyone. We do see some bright spots. Norwegian is a good example - they seem to be profiting from the re-trenchment of SAS. LAN is another example who is determined to face the recession by expanding. Despite some pretty awful numbers - Lufthansa seems determined to bulk up through acquisition of some smaller players in Europe.
So here are some other stories that have caught my eye and a few comments:
Ryanair continues its relentless push towards the automated airline. One major new charge - lose your automated boarding pass and you have to pay the equivalent of $55. To the relief of Americans coming to Europe, FR has announced that it will not be charging the fat tax - with a caveat. As soon as they figure out how to collect it without disrupting 25 minute turn arounds - then you can expect it to come back.
Air Jamaica has a new twist on the second bag price. Oh yes we make you pay and we dont guarantee delivery on this flight. Come back tomorrow was a headline in Travel Weekly. Not that JM's bag services have been anything to write home about of late!
Chris Rodrigues is relinquishing the CEO title to his deputy at Visit Britain. Looks like he wants a more political focus in the run up to the UK Olympics in 3 years.
ATM was great say the organizers. You know my opinion. It really was a lot less than last year. So far I have not seen official statistics other than the number of stands - I wonder of that quantity - how many of them were actually occupied.
Speaking of Dubai - this week's stupid vendor tricks award goes to FlyDubai.
Here is a snap shot of their announcements page.
As you can see - even though they dont start service until June they want to default the booking widget to today's date. Tsk Tsk. For a professional outfit like FZ, they (and their provider Radixx) should do better. Still I wish them all the best for their first flights that take off on June 1st. Air Arabia watch out - these guys are coming for your blood!
Also Emirates (no relation to FlyDubai) has concluded a deal with BT to consolidate their call centers into a single global comms entity. More power to them on this one - their 9 CCs and then various CTOs will now be linked by a new network provided by BT.
SITA announced one of the first deliverables in its next gen PSS - the Customer Journey CJ to replace the former passenger record we all know and love called the PNR. Best of luck to Jim Peters and his crew on this one.
And finally - latest to hold out the hand or more accurately point the nose into the stimulus trough is Sabre. They are raising dire warnings of hell fire and brimstone if the government doesnt do something to stimulate travel (and consequently improve Sabre's GDS bookings!).
10 May 2009
"Brits Want It Warm" Says Skyscanner
Skyscanner like several other sites does these nice polls. I like the ones they do as they provide a nice little insight to the minds of the consumer from different perspectives.
Of course I would caution anyone in reading too much into such research. So they asked Britons why they travel. For the full results go here:
http://news.skyscanner.net/articles/2009/05/002355-warm-weather-wins-over-value-say-skyscanner-holidaymakers.html
Commenting on the results - Barry Smith one of the founders said “Our poll shows that Britons’ love of sun is still the most important driving force behind holiday location choice. Although the recession is influencing travel choices, escaping Britain’s gloomy climate is the most essential goal. Sunny countries that are non-euro such as Turkey and Croatia are likely to be especially popular this summer.”
Now here is the conundrum. Brits like many other nationalities in Europe have kept their wallets, purses, handbags and cash closed. Thus there has been far less advance booking this year. If the UK summer is going to be good then the chances for a late booking bonanza is not likely. The weather prognostication is just that - a hot British Summer. People are going to be staying at home and spending their money at B&Q and Homebase rather than Ryanair and Thomas Cook.
Look for the volume of special offers to pick up in the coming weeks.
Cheers
Of course I would caution anyone in reading too much into such research. So they asked Britons why they travel. For the full results go here:
http://news.skyscanner.net/articles/2009/05/002355-warm-weather-wins-over-value-say-skyscanner-holidaymakers.html
Commenting on the results - Barry Smith one of the founders said “Our poll shows that Britons’ love of sun is still the most important driving force behind holiday location choice. Although the recession is influencing travel choices, escaping Britain’s gloomy climate is the most essential goal. Sunny countries that are non-euro such as Turkey and Croatia are likely to be especially popular this summer.”
Now here is the conundrum. Brits like many other nationalities in Europe have kept their wallets, purses, handbags and cash closed. Thus there has been far less advance booking this year. If the UK summer is going to be good then the chances for a late booking bonanza is not likely. The weather prognostication is just that - a hot British Summer. People are going to be staying at home and spending their money at B&Q and Homebase rather than Ryanair and Thomas Cook.
Look for the volume of special offers to pick up in the coming weeks.
Cheers
09 May 2009
ATM and Dubai – A Perspective
I did say I would try and avoid doom and gloom stories- but I think that this is a story that should be told.
This week the Professor was in Dubai during Arabian Travel Mart. I use the opportunity to both catch up with clients, friends and even people who don’t fall into either of these categories. The marketplace is very subdued. There are grim faces everywhere. Rumours are flying of the doom and gloom variety. I can attest to several first hand observations of the depth of the collapse in Dubai. I do not use that word lightly. While there are some positive signs from Emirates of stable passenger numbers, EK is not immune from the same pressures that Legacy carriers such as BA and Delta are experiencing. The International Herald Tribune had an article May 8th 2009 on the impact of the biz travel downturn on SQ, BA and others. It is clearly a state of affairs that has astounded everyone by the depth and breadth of the reductions.
The ATM show itself was down in exhibitor volume. The halls that handled the property groups were actually closed. Throughout the show there were empty stand positions, something I do not recall from prior shows. I attended all 3 days and on no day did the attendance look anything like prior years. It was frankly very quiet, I had meetings at the coffee shop in the center of the halls and I could observe the traffic on both entrances – there was no rushing, no bunching . I am sure numbers must be down at least 20% probably a lot more. The building program exacerbated the problems of taxis and I am sure that this upset and frustrated many a show goer. I went out of my way to talk to hoteliers to get their perspectives. I was so taken aback by their war stories. Typical responses: “ we don’t know when we will be back to above 40% occupancy” and “I doubt we are even covering our opex let alone debt coverage.”
One night I went with some colleagues to the new Atlantis resort at the end of the first completed Palm. To say that it was quiet would be like saying a mortuary was a busy place. Rates are down universally. I spoke to several people who gave me first hand stories of deals they had received. Even the top hotels like the Jumeriah properties, The Fairmont and the Grand Hyatt all had evidence of heavy discounting.
The exodus of the expat community is also significant. While no hard numbers exist – I was again quite taken aback by the number of people I knew personally who had left or were leaving.
It is going to take a long time for normality to return. By normality – I mean reasonable yield and occupancy levels. Clearly Dubai has to do a lot to remarket itself and lower its costs. The Saudi traveler who is the most coveted customer these days has so many choices elsewhere that he needs to be courted and sold to rather than held at arms length.
New skills like selling rather than order taking will need to be learned.
Cheers
This week the Professor was in Dubai during Arabian Travel Mart. I use the opportunity to both catch up with clients, friends and even people who don’t fall into either of these categories. The marketplace is very subdued. There are grim faces everywhere. Rumours are flying of the doom and gloom variety. I can attest to several first hand observations of the depth of the collapse in Dubai. I do not use that word lightly. While there are some positive signs from Emirates of stable passenger numbers, EK is not immune from the same pressures that Legacy carriers such as BA and Delta are experiencing. The International Herald Tribune had an article May 8th 2009 on the impact of the biz travel downturn on SQ, BA and others. It is clearly a state of affairs that has astounded everyone by the depth and breadth of the reductions.
The ATM show itself was down in exhibitor volume. The halls that handled the property groups were actually closed. Throughout the show there were empty stand positions, something I do not recall from prior shows. I attended all 3 days and on no day did the attendance look anything like prior years. It was frankly very quiet, I had meetings at the coffee shop in the center of the halls and I could observe the traffic on both entrances – there was no rushing, no bunching . I am sure numbers must be down at least 20% probably a lot more. The building program exacerbated the problems of taxis and I am sure that this upset and frustrated many a show goer. I went out of my way to talk to hoteliers to get their perspectives. I was so taken aback by their war stories. Typical responses: “ we don’t know when we will be back to above 40% occupancy” and “I doubt we are even covering our opex let alone debt coverage.”
One night I went with some colleagues to the new Atlantis resort at the end of the first completed Palm. To say that it was quiet would be like saying a mortuary was a busy place. Rates are down universally. I spoke to several people who gave me first hand stories of deals they had received. Even the top hotels like the Jumeriah properties, The Fairmont and the Grand Hyatt all had evidence of heavy discounting.
The exodus of the expat community is also significant. While no hard numbers exist – I was again quite taken aback by the number of people I knew personally who had left or were leaving.
It is going to take a long time for normality to return. By normality – I mean reasonable yield and occupancy levels. Clearly Dubai has to do a lot to remarket itself and lower its costs. The Saudi traveler who is the most coveted customer these days has so many choices elsewhere that he needs to be courted and sold to rather than held at arms length.
New skills like selling rather than order taking will need to be learned.
Cheers
Stupid Vendor Tricks
It never ceases to amaze me how some suppliers treat their customers.
I most cases the customer is treated like an idiot. Or worse that he is given a useless offer that is just not deliverable,
Let me give you an example.
Avis… I rent them all the time. They tell me how wonderful I am and that they award me free rental weekends. So far I have NEVER been able to use them.
Now comes news of their latest offer. Rent for one week a premium car and you can have for 2 days a GPS for free. So of course we will all want to go through the hassle of returning the unit. And really we want to rent a unit for the whole 5 other days….
Hello people!!!
Note to vendors, treat your users with respect and they will respond to you. And ALWAYS remember Newton’s second law:
To every action there is an equal and opposite REACTION.
Cheers
I most cases the customer is treated like an idiot. Or worse that he is given a useless offer that is just not deliverable,
Let me give you an example.
Avis… I rent them all the time. They tell me how wonderful I am and that they award me free rental weekends. So far I have NEVER been able to use them.
Now comes news of their latest offer. Rent for one week a premium car and you can have for 2 days a GPS for free. So of course we will all want to go through the hassle of returning the unit. And really we want to rent a unit for the whole 5 other days….
Hello people!!!
Note to vendors, treat your users with respect and they will respond to you. And ALWAYS remember Newton’s second law:
To every action there is an equal and opposite REACTION.
Cheers
Capacity continues to fall – dramatically – Are we there yet?
I have just spent nearly a week in the UK and have been looking at the current situation of the market. I think we all know that premium traffic is just a disaster. Last week British Airways announced a 2:1 sale on business class. This on top of their free seats for SMEs.
Capacity continues to fall globally. On this scale, the world's airlines have cut 6% flights for April 2009 Y/Y with a 3% drop in seat capacity. According to the latest statistics from OAG, frequencies and capacity within the UK for April are down year on year by 13% and 14% respectively, the last time the April figures for the UK were lower than this was in 2001. International services to and from the UK are down by 10%. The LCC sector is not immune either with a 12% reduction in capacity. In the USA another metric is the reduction of the number of routes. In one year according to anna aero the number has dropped domestically by 300.
So have we reached the bottom yet? Sorry – I don’t think so. With a bumper summer being promised for the UK – I don’t see people opening their wallets for flights. Instead they are going to be spending it in their back gardens and working on some DIY. This past April – while not the warmest on record was the 10th warmest April ever recorded. People are not going to be too keen to travel….
Of course if this week’s Bank Holiday is anything to go by – then we know that every bank Holiday this summer will be guaranteed to rain!
Cheers
Capacity continues to fall globally. On this scale, the world's airlines have cut 6% flights for April 2009 Y/Y with a 3% drop in seat capacity. According to the latest statistics from OAG, frequencies and capacity within the UK for April are down year on year by 13% and 14% respectively, the last time the April figures for the UK were lower than this was in 2001. International services to and from the UK are down by 10%. The LCC sector is not immune either with a 12% reduction in capacity. In the USA another metric is the reduction of the number of routes. In one year according to anna aero the number has dropped domestically by 300.
So have we reached the bottom yet? Sorry – I don’t think so. With a bumper summer being promised for the UK – I don’t see people opening their wallets for flights. Instead they are going to be spending it in their back gardens and working on some DIY. This past April – while not the warmest on record was the 10th warmest April ever recorded. People are not going to be too keen to travel….
Of course if this week’s Bank Holiday is anything to go by – then we know that every bank Holiday this summer will be guaranteed to rain!
Cheers
GDSs Glorify Their Fare Performance! But Can You Trust Them?
You can tell I have been contemplating the issue of Trust.
As some of you may know there is much debate around the “who gets the lowest fare really” question.
Sabre is touting its Topaz based study. Now it has even gone to the expense of creating a website devoted to the achievements.
I make no judgment of the study or its methodology. However in our private studies – we can assure you that there are differences – frequently significant – between the results of the GDSs, the results of the OTAs and the results of the Airline.com sites. The results vary significantly market by market. (And don't get me started on the meta-search companies). Now we also see that as caching is being used more frequently we see difference that are frequently driven by the caching. The “look in one place book in another” only works when it comes with a performance guarantee from the inventory owner. This has been one of my gripes about meta searches. Quality measurements in the performance area is always going to be interesting and probably never coming. Obfuscation is still the order of the day. But I do think there is a glimmer of hope in that less and less people are relying on the GDS as the source of the fares and as a result (particularly outside North America) the issue of a trusted fare is being understood.
Inside the GDS the guarantee of a seat and fare via the PCA (participating carrier agreement) is passed onto the travel intermediary through the subscriber contract. Now that the GDS infrastructure cannot handle the sheer volume of searches on an economic basis – the current answer is to use Cached fares+availability such as via ITA’s engine. However by the time it gets handed off to another source for booking the cache may be out of date or just plain wrong. In the GDS world this is handled somewhat. But in the new world of open access this commercial coverage is still not quite there yet. However it will have to be.
Anyone willing to forward a solution to this problem and its very complex set of issues? (and no I am not accepting that everyone has to use the GDS as the answer).
Answers on a post card or the back of an envelope please….
Cheers
As some of you may know there is much debate around the “who gets the lowest fare really” question.
Sabre is touting its Topaz based study. Now it has even gone to the expense of creating a website devoted to the achievements.
I make no judgment of the study or its methodology. However in our private studies – we can assure you that there are differences – frequently significant – between the results of the GDSs, the results of the OTAs and the results of the Airline.com sites. The results vary significantly market by market. (And don't get me started on the meta-search companies). Now we also see that as caching is being used more frequently we see difference that are frequently driven by the caching. The “look in one place book in another” only works when it comes with a performance guarantee from the inventory owner. This has been one of my gripes about meta searches. Quality measurements in the performance area is always going to be interesting and probably never coming. Obfuscation is still the order of the day. But I do think there is a glimmer of hope in that less and less people are relying on the GDS as the source of the fares and as a result (particularly outside North America) the issue of a trusted fare is being understood.
Inside the GDS the guarantee of a seat and fare via the PCA (participating carrier agreement) is passed onto the travel intermediary through the subscriber contract. Now that the GDS infrastructure cannot handle the sheer volume of searches on an economic basis – the current answer is to use Cached fares+availability such as via ITA’s engine. However by the time it gets handed off to another source for booking the cache may be out of date or just plain wrong. In the GDS world this is handled somewhat. But in the new world of open access this commercial coverage is still not quite there yet. However it will have to be.
Anyone willing to forward a solution to this problem and its very complex set of issues? (and no I am not accepting that everyone has to use the GDS as the answer).
Answers on a post card or the back of an envelope please….
Cheers
So Who Do You Trust?
In the current economic environment – everyone has to work harder for their daily bread. I dont think there are many people in the Travel Industry who would doubt that statement. Even Prince Waleed (Kingdom Holdings) is down quite a lot. The Evening Standard is even speculating that he may have to cancel his order for the second Private Airbus A380.
So against this backdrop – it is probably a good idea to ask “who do you trust?” As Media goes through a radical change this is a very pertinent question. eMarketer has just published a little piece from TNS Media Intelligence. In this the online players should take heart that their trust levels seem to be pretty high. However there are some really dark clouds in the study.
There is some very interesting data of differences in countries – so its well worth a click on over to this link to see it:
http://www.emarketer.com/Article.aspx?R=1007067
However – some bad news for people like the Professor. Private Blogs are trusted among the least. The most trusting are the Italians at a measly 14%. Everyone else is well below 10%. Makes you want to cry doesn’t it….
Sob Sob
So against this backdrop – it is probably a good idea to ask “who do you trust?” As Media goes through a radical change this is a very pertinent question. eMarketer has just published a little piece from TNS Media Intelligence. In this the online players should take heart that their trust levels seem to be pretty high. However there are some really dark clouds in the study.
There is some very interesting data of differences in countries – so its well worth a click on over to this link to see it:
http://www.emarketer.com/Article.aspx?R=1007067
However – some bad news for people like the Professor. Private Blogs are trusted among the least. The most trusting are the Italians at a measly 14%. Everyone else is well below 10%. Makes you want to cry doesn’t it….
Sob Sob
07 May 2009
Delta Introduces - ehemmm - Commissions
Say WHAT????
Yes... as a "trial" DL introduces 10% commission... from NYC area to LATAM
And who said generosity is dead?
Cheers
Yes... as a "trial" DL introduces 10% commission... from NYC area to LATAM
And who said generosity is dead?
Cheers
05 May 2009
ATM 2009 - Quiet and Very Subdued
So the 2009 Arabian Travel Mart opened today.
Very quiet and very subdued. I participated in many events and spoke to a lot of people who are attending - many for the regular n'th time.
General perception.
UGH!
it is bad.
I can honestly say the overall management was its usual high standard - but the level of attendees was noticeably down.
No crowds at the reception/entrance.
The new taxi process however really sucks.
Cheers
Very quiet and very subdued. I participated in many events and spoke to a lot of people who are attending - many for the regular n'th time.
General perception.
UGH!
it is bad.
I can honestly say the overall management was its usual high standard - but the level of attendees was noticeably down.
No crowds at the reception/entrance.
The new taxi process however really sucks.
Cheers
04 May 2009
The Icelandic Raiders Vanquished
What a difference a year makes. Just 2 years ago the Icelanders were tackling stakes in such companies as Easyjet and taking a large stake in American Airlines. Now look how far they have come. The last of the raiders is FONS. And this story (roughly translated from Norwegian) tells the story of the bankruptcy filing. Thanks to Professor Kai for this one.
"The district court of Reykjavik approved today to take Fons, holding company of Palmi Haraldsson and Johannes Kristinsson into bankruptcy procedure. The company owns Securitas and Plastprent. Palmi says this is a shock. The company has been in a better position than many other companies.
Fons has been a major company in the Icelandic economy for the past years and amongst other owned a large part in FL Group. With Securitas and Plastprent owns Fons a part of the English toy stores Hamleys and the Nordic travel agency Ticket.
"This is of course an enormous shock," says Palmi but does not want to comment further on the position of the company. The request had been made to put the copany into bankruptcy which the district court approved today. "
This is sad in my view. We need entrepreneurial talent to inject fresh blood into our industry.
"The district court of Reykjavik approved today to take Fons, holding company of Palmi Haraldsson and Johannes Kristinsson into bankruptcy procedure. The company owns Securitas and Plastprent. Palmi says this is a shock. The company has been in a better position than many other companies.
Fons has been a major company in the Icelandic economy for the past years and amongst other owned a large part in FL Group. With Securitas and Plastprent owns Fons a part of the English toy stores Hamleys and the Nordic travel agency Ticket.
"This is of course an enormous shock," says Palmi but does not want to comment further on the position of the company. The request had been made to put the copany into bankruptcy which the district court approved today. "
This is sad in my view. We need entrepreneurial talent to inject fresh blood into our industry.
Subscribe to:
Posts (Atom)