Travel News

The FAA reauthorization bill is now pretty much dead for several months.  Unfortunately the bill included funds to build and modernize the Air Traffic Control system.  The agency is currently being funded by temporary extensions and it will continue to be funded that way until after the election.

The New York Times has a story today about Fordham University offering a course on how to deter airline passengers from causing bodily harm to airport workers.  About 40 workers from airlines, parking facilities, concession shops and other terminal operations gathered in Terminal 4 at JFK to learn how to deal with passengers who have been infuriated by cancelled flights, slow baggage inspections or packed planes.  The 75 minute seminar was the first of what could become a regular offering for industry workers.  The program is called “Resiliency edge" and refers to the ability of a worker to bounce back from stressful actions, like passenger insults.

Orbitz posted first quarter loss of $15 million, up from a loss of $10 million for the same period last year.  The company went public last July.  Gross bookings were flat while international bookings rose 41% on higher bookings but the weak dollar made up about 1/3rd of the increase.  Domestic bookings were down 6%.  There is now more competition on the web and many companies such as American and Delta are encouraging customers to book direct with them.  Bargain shoppers have more choice of web sites when looking for cheaper fares and tours.

The Travel Industry Association has introduced a new web site www.PowerofTravel.org that has economic impact data on travel and tourism, trends in international travel and additional travel facts and information.  Users have access to travel spending, tax revenues generated and numbers of jobs produced by the tourism market.  The TIA created the site to give more visibility to the power of travel.

JetBlue announced yesterday it was shelving the startup of its Los Angeles service for an indefinite period.  The airline had intended to launch three daily flights to JFK and one daily flight to Boston on May 21, but rising fuel costs got in the way.  Yesterday oil was up over $122 a barrel.  The cost of fuel had risen some 29% since the decision to use Los Angeles was first made.  Other new flights scheduled for May 21 will remain.  They are Burbank to Las Vegas and Washington Dulles, Long Beach to San Jose and Seattle, San Diego to Seattle and two seasonal flights from Long beach to JFK and Boston.

Former JetBlue Chairman and CEO David Neeleman has started a new airline in Brazil called Azul.  The name was chosen, following a public vote.  The losing name was Samba.  The airline is expected to start service next January.  United said yesterday it was able to amend its existing $1.5 billion revolving credit facility with the approval of its lenders, and a 7% fee.  The airline must maintain a minimum unrestricted cash balance of $1 billion, up $250,000 million over what was previously required.  United plans to launch nonstop passenger and cargo service to Dubai and Moscow from Dulles October 26.  Singapore Airlines is raising its fuel surcharges on May 12.  The surcharge will now be from $150 for flights between Singapore and the US and $35 from Singapore and other Southeast Asian countries.  Frontier reported a 6.5% increase in passengers during April, even though the airline declared bankruptcy.  That’s a good sign for the airline.  JetBlue reported April traffic increased 0.8% on a capacity increase of 7.4% while Northwest reported an increase of 1% on a capacity increase of 2.1%.

British Airways did not fare well with its April operation figures showing a drop of 7.9% which the airline blamed on changes to the date of Easter school holidays and the problems at T5.  Premium passenger figures rose 3.4% while economy passengers dropped 8.8%.

Delta will close nine of its airport lounges by early summer.  The Business Elite lounges at Atlanta and JFK will be converted to Crown Room Clubs.  The lounges to be closed are Boston, Cincinnati, Kansas City, Seattle, San Juan, Puerto Rico, Phoenix, Denver, Honolulu and London Gatwick.  Phoenix and Kansas City are the only markets where Delta's Crown Room members will not have reciprocal access to other club rooms.  The closings will leave Delta with 38 Crown Room Clubs worldwide and passengers will still have access to about 100 rooms through its partnerships with other carriers, including air France, Aero Mexico, Northwest and Continental.

NCL's Pride of Aloha cruise ship failed a sanitation inspection last December with a 78 score.  There were a variety of infractions including poorly refrigerated foods, inadequate sneeze guards on buffet lines, improper chlorine levels in a whirlpool and insect larvae in pooled water on the floor near a beverage station.  NCL reports that the problems have been addressed and many new routines were put into place.  The ship is leaving the American fleet and will be renamed the Norwegian Sky and be based in Miami.

News is courtesy of ARTA Online.

Minnesota officials are very unhappy that they are losing Northwest headquarters to Atlanta, and Delta says there is nothing that can be done about it.  Delta said it will keep Minneapolis-St. Paul as a hub and that jobs would be kept, but the Northwest headquarters would move to Atlanta. 

The FAA has undergone a recent evaluation that revealed the agency did not perform several recommended safety reviews at major carriers in recent years.  The FAA is supposed to do reviews of such things as flight crew training and aircraft de-icing at least once every five years but they have been lax in doing so.  The acting head of the agency said that the agency hasn't performed dozens of five-year reviews at seven other major airlines besides Southwest.

The owner of the Tropicana Casinos in Las Vegas and Atlantic City filed for Chapter 11 bankruptcy protection yesterday, almost five months after New Jersey regulators took away the Tropicana Casino and Resort's license.  Tropicana Entertainment said it would continue to operate its remaining properties throughout the country and keep staff.  The company reports it generates a positive cash flow and has lined up some $67 million in debtor-in-possession financing.

The US Embassy in Beijing has issued the following Warden Message:  "American citizens are advised of an ongoing outbreak in China of an intestinal virus called enterovirus 71, or EV71.  This virus causes a variant of hand, foot and mouth disease.  There are no specific precautions for this other than the general hygiene recommendations for living in China.  The symptoms of EV71 are similar but more sever than the common hand, foot and mouth disease.  Typically it starts with a generalized illness, poor appetite, and sore throat, followed by a fever, rashes on the hands, feet and buttocks along with mouth ulcers.  It is often confused with foot-and-mouth disease of cattle, sheep, and swine.  Although the names are similar, the two diseases are not related at all and are caused by different viruses.  Infection is spread from person to person by direct contact with nose and throat discharges, saliva, fluid from blisters, or the stool of infected persons."

American Airlines is canceling all service in and out of Oakland International airport effective September 3 and three roundtrips between Oakland and Dallas Fort Worth will disappear.  American will accommodate passengers with flights out of San Francisco or San Jose.  The airline cited the high cost of fuel for the cancellations.

Delta has added a fuel surcharge of $110 on all Los Angeles/Honolulu flights.  ATA and Aloha declared bankruptcy last month and seats between the west coast and Hawaii dropped to 94,000 a month.  Hawaiian added one daily flight between Oakland and Honolulu May 1.  Air Canada is offering "On My Way" a new customer service program which claims to provide a "dedicated agent" to help book you on another flight, if your original flight is cancelled;  this is for a cost of $25 each way.  This whole thing of additional fees is getting ridiculous.  Does this mean if the airline dumps you, you get no help unless you pay for it?  Aer Lingus has increased its check-in and baggage charges for all short-haul flights to match Ryanair's fees.  The airline appears to be following Ryanair who increased its fees last week.

American Airlines traffic dropped 6.6% during April compared with the same period last year.  American Eagle saw a drop of 7.6%.  United's domestic April traffic is down 6.3% on a capacity decrease of 6.5% and international traffic dropped in all markets except transatlantic which increased 6.1% on a capacity increase of 13%.  The airline asked its lenders to waive an applicable fixed-charge coverage covenant to its lending agreements and is willing to pay a 7% fee to get a waiver.  Delta's domestic traffic dropped 3.7% on a capacity decrease of 3.8% while system-wide traffic increased 2.5% and international traffic and capacity increased 16.5%.  US Airways mainline traffic fell 2.6% in April.  The airlines say traffic was less because Easter fell in March this year.

Oil prices rose to $121.49 a barrel in electronic trading early today, another record breaking price, so we should be looking for another fuel surcharge or fare increase shortly.

The Latvian Coast Guard evacuated 651 passengers from the Mona Lisa after it ran aground on a sand bank in the Baltic Sea about 10 miles off Latvia's coast.  The ship ran aground early Sunday on its way to Riga.  The captain finally agreed to evacuate the ship after several unsuccessful attempts to free it from the sand bank.  Tugs were used to try and pull it off after ballast water was pumped out of the ship and then fuel was pumped out.  It took five hours to get the passengers off, most of who were elderly Germans.  They climbed down stepladders to two naval ships and no one was injured.  The Coast Guard said the ship was not damaged and passengers were never at risk.  The crew stayed with the ship.

Royal Caribbean will homeport the Mariner of the Seas in Los Angeles in 2009.  The ship will sail seven night itineraries to the Mexican Riviera.  This is the first time a next generation Voyager class ship has been based west of Texas.  The Radiance of the seas will be sailing four and five night itineraries out of Los Angeles starting in the fall of 2009.  The Mariner will call at Cabo San Lucas, Puerto Vallarta and Mazatlan while the Radiance will call at Cabo and on five night itineraries at Ensenada.

News is courtesy of ARTA Online.

Senators Claire McCaskill (D-MO) and Arlen Specter (R-PA) have added an amendment to the FAA reauthorization bill to address oversight gaps that the DOT Inspector General has identified over the past several years, and to provide funding to deal with the significant shift in maintenance work to overseas facilities.  The amendment requires the FAA to identify non-certification repair facilities and to expand surveillance and oversight of them; that significant maintenance work be performed or directly supervised by FAA-certified personnel; that the FAA inspect certificated foreign repair stations twice a year with at least one inspection without advance notice; have drug and alcohol testing for employees of foreign repair stations who perform safety-sensitive functions; foreign repair stations to comply with TSA security protocols; the FAA to update its fee schedule for foreign repair station certification and recover the fully burdened costs of inspection programs for these stations; the FAA to receive annual reports from the DOT Inspector general on the implementation of the amendment.

The EU has ruled that airlines under their jurisdiction will continue to be allowed to set the size of carry-on luggage they accept.  The EU's executive body dropped plans to bring in EU-wide laws earlier today.  The laws were dropped because of the inconvenience of additional limits would outweigh the advance in security.  The EU had planned to limit the size of carry-ons on the assumption that bigger bags were more difficult for airport security staff to scan than smaller ones.  Studies showed that the size of a carry-on was far less significant than other factors and its effectiveness would not justify the additional costs and inconvenience and decided to rescind the proposal.  The EU retained the right to impose stricter limits if necessary to suit local circumstances or to respond to a terrorist threat.

The Occupational Safety and Health Administration has proposed fines of $215,500 against United Airlines for allegedly committing dozens of violations of workplace safety standards at O'Hare.  The airline has 15 days to file an appeal.  OHSA has issued 43 serious violations and four repeat violations.  The most serious ones concern fall protection, storage of fuel-gas cylinders and other issues.  The repeat violations cover machine guarding and electrical issues.  United said it would evaluate OSHA's findings and is taking steps to improve safety in employee work areas.

American Airlines filed a report with the department of Transportation over last month's shutdown of the airlines MD-80 fleet.  The groundings came the same week that the FAA removed the Southwest Region Manager-Flight Standards from his position after the Dallas office was portrayed as being dysfunctional.  The airline suggests that the FAA's actions regarding the MD-80s could have been influenced by the Dallas Office's relations with Southwest and an agreement reached with the Dallas office on the MD-80's repair timing was reversed, causing the grounding of the fleet and leaving thousands of passengers stranded.

The latest on the Alitalia soap opera has Lufthansa working with an Italian bank on a role in the bidding process for the carrier.  Lufthansa says three conditions must be met.  They want to see Alitalia's finances, the airline's turnaround strategy and the formation of a prospective consortium of Italian investors to remove union obstacles.  It's now over a year since the Italian government put their stake in Alitalia up for sale and they are no farther ahead.

Southwest reported an increase of 5.7% during April and a capacity increase of 5.3% and had a load factor of 72.6%.  Alaska reported traffic increased 3.4% on a capacity increase of 3.4% resulting in a load factor of 76.9.  United Airlines is going back to its bankers to try and change the terms of its credit facility to give it more financial flexibility.  Northwest has asked its lenders to do away with fixed-charge coverage ratios for the next 12 months.  It is a concern that airlines will be able to comply with bank covenant and loan agreements because of high fuel costs.   Ryanair is increasing passenger check-in charges by 1 pound to 4 pounds and the cost of checking a bag from 2 pounds to 8 pounds, effective tomorrow.  Passengers already pay a 3 pound charge for using a credit card and 4.37 pounds to check in at the airport.  The airline has stated it will keep increasing the cost of checking a bag until half of the passengers check in online.  That will allow the airline to reduce check-in and handling costs.

The Hawaii Superferry has added a second voyage between Oahu and Maui effective May 9 that will sail four days a week in the afternoon.  This second sailing will operate Sunday, Monday, Wednesday and Friday afternoons.

NCL is pleading guilty to a criminal charge of being grossly negligent in the operation of the Norway ship resulting in the May 2003 boiler explosion that killed eight crew members and injured 10.  The cruise line must pay a fine of which the amount is not yet known.  The National Transportation Safety Board determined the probable cause was a deficient boiler operation, maintenance and inspection practices by the cruise line, allowing deterioration and metal fatigue to weaken the boiler.

A cruise ship, the Mona Lisa, is reported to have run aground near the coast of Latvia.  The ship was carrying 984 people and was on its way to Riga.  The ship was built in 1966 and is owned by Kyma Ship Management based in Miami.  The ship was marketed in Germany.

News is courtesy of ARTA Online.

TripAdvisor has released the results of its 2008 Travelers' Choice Destinations Awards.  The winners were chosen by a combination of TripAdvisors traveler's favorite places and overall popularity.  Travelers' choice World Destinations in order of popularity are Milford Sound, Queenstown, Philipsburg, St. Maarten, Cayo Largo, Cuba, Rhodes, Charlotte Amalie, Cruz Bay, Bridgetown, Banff, Lake Tahoe.  Europe destinations were Rhodes, Salzburg, Amalfi, Bath, Siena, Dingle, Bruges, Lucerne, Vatican City and Edinburgh.

The EU has released a new European Standard EN15565 that supports the EU's efforts to facilitate free movement of provision of services within its member states but also emphasizes the importance of area-specific tourist guides.  The new standards set out requirements and recommendations such as competencies (e.g. representing the area, site, city, region, country, guiding groups or individual visitors, interpreting for visitors the cultural and natural heritage as well as the environment, helping visitors to experience and understand what they are viewing and/or visiting, using the appropriate language, presenting the appropriate information in a comprehensive and communicative way.)  Other requirements include theoretical knowledge, presentation techniques, communications techniques, group management, practical training and qualification of trainers.

New York hotels have enlisted beagles to sniff out bedbugs.  Carl Massicott is an exterminator who uses highly trained dogs to sniff out bedbugs, a problem that has been plaguing hotels across the US.  The dogs have all been acquired from dogs' homes and have to like to hunt.  Each dog is trained for an average of 18 months by learning to identify a bedbug's scent.  Each dog can check out 150 hotel rooms a day.  The dogs have a 98% success rate although the University of Florida says it is 100%.  Massicott serviced over 30 hotels in 2007 as well as private apartments, university housing and even cruise ships.

You might say its tip for tat.  American Airlines says it will no longer allow skycaps to accept tips from passengers checking in bags at curbside at Logan International.  This comes after the skycaps won a lawsuit for lost tips.  The airline has asked the court to throw out the jury's verdict.  The airline said it banned the tipping because of the jury's verdict and a new amendment to state wage and hour laws that will make triple damages automatic for companies who do not pay full wages or overtime.  The new policy does not apply to any other airport in the country.  American contracts with G2 Services who will raise the hourly wages of skycaps to $12 to $15 per hour, well above the states $8-per-hour minimum wage.  Skycaps said they now earn $5.15 per hour and that traditionally they have made most of their money through tips.  The lawyer for the skycaps at Logan said, "Tipping is a universal practice among passengers and this is how skycaps have earned their livings for decades.  Clearly American's decision to try to stop people from tipping skycaps is in retaliation against these skycaps who asserted their rights under the state tipping law."  The $2 fee charged was split between the airline and G2 Services.

Hawaiian Airlines raised fares May 1 and added service fees on longer inter-island flights and phone reservations and for checking a second bag.  Inter-island fares now start at $54, up from $49; there will be an extra $5 fee between Honolulu and the Big Island and a $5 fee for booking a reservation over the phone.  Passengers will pay $25 for checking a second bag between Hawaii and the mainland beginning June 10.  The fee will not apply on inter-island flights or international flights.

Virgin Atlantic is dropping its in-flight beauty therapy service and the staff will either end up as beauty therapists on the ground in Clubhouse lounges or as cabin crew.  Russia is test-flying its first new airliner since the fall of the Soviet Union.  Plattsburgh, with its small international airport in upstate New York, is now publishing its newsletter in both English and French.  The airport, which bills itself at "Montreal's US Airport”, is sending the newsletter to travelers across the northern border.  The airport is getting most of its business from Canadians because it is located only 65 miles from Montreal and flights are much cheaper.

European cruisers have increased so quickly that they broke the 4 million mark May 1.  It had been projected that the 4 million mark would not be reached until 2011.  The number of cruisers increased 17% in 2007.  The Mediterranean and Atlantic islands were the most popular destinations chosen by 60% of Europeans, while 24% chose the Caribbean and other parts of the world and 16% chose Northern Europe.  The UK is the largest market with 1.3 million passengers.  We have only to look at the increased number of ships sailing in European waters to see why the numbers grew so quickly.  Germany is the second largest market followed by Italy.

News is courtesy of ARTA Online

A bill to revamp the FAA's core functions, provide funds to upgrade the old air traffic control system and change methods for safety regulation has been delayed by the Senate.  Some of the objections to the bill include an amendment that would prevent the DOT from auctioning off takeoff and landing slots at LaGuardia and another that could force the FAA and the National Air Traffic Controllers Association to settle a long-running issue over pay and work rules.  Another amendment would force the administration to stop filling the nation's Strategic Petroleum Reserve.

The Canadian Transportation Agency has dismissed a claim by Air Canada that the airline only accepts personal property for transportation and isn't liable if a checked bag belongs to an employer instead of the employee.  The issue involved a passenger traveling to a mining conference and one of the bags was lost.  A claim was filed but the airline denied the claim saying the bag contained two mining drill cores and other business items for the exhibit and was the property of the employee's company and not her personal property.  The airline said the company was not a party to the Contract of Carriage so was not eligible for compensation.  The passenger filed a complaint with the transportation agency.  The agency dismissed the claim by the airline saying "the baggage at issue qualifies as personal property because the baggage that was checked in by the passenger and given a claim tag was necessary or appropriate for her use and for the purpose of the trip.”  The ruling strikes down air Canada's narrow definition of personal property for business travelers and because it struck down a key section of Air Canada's Canadian General Rules of Tariff that sets out the airline's limitation of liability.  Though this ruling concerns international travel on Air Canada, it could apply to other cases of lost checked luggage and the agency is informing all airlines that fly within Canada of the "Precedent-setting decision.”

Yesterday a new law went into effect in Venice.  It is now illegal to feed the pigeons in St. Mark's Square.  The sale of grain to feed the birds is now banned, ending a tradition that attracted the birds and their droppings, and putting the grain sellers out of work.  The pigeons have been away at the city's marble statues and buildings by pecking at small gaps in the facades to reach for scraps of food blown inside.  It costs each taxpayer in Venice about $500 a year to repair the damage.

British Airways has confirmed in a statement yesterday it is "exploring" opportunities for cooperation with American and Continental and further details will be announced when appropriate.  Cooperation between the three carriers would change the dynamics of the transatlantic market.  American also confirmed the talks but Continental made no comment.  Continental backed out of merger talks with United last Sunday and said it was reviewing its alliances with other carriers.  If Continental joined with BA and AA it would probably end its alliance with Virgin Atlantic.

Hawaiian and Mesa Air Group have settled their lawsuit and Hawaiian will receive $52.5 million of the $80 million judgment by a bankruptcy court last year.  This ends the legal dispute over Mesa's misuse of Hawaiian's confidential information.  Mesa is still involved in a suit with Aloha over the same issue.

US Air Marshals are mandated to fly on commercial airlines.  To be able to do this job it would seem that they would have to go through thorough investigations by the TSA.  But some of these marshals are repeatedly delayed, or denied boarding on flights because their names are on a terrorist watch list.  They are denied boarding the very flight they are supposed to protect.  It’s only now that something is going to be done about it.  You would think it can't be that difficult to find a way with all of the technology that is out there.

American Airlines is going to test retail sales on long domestic flights.  Flight attendants will be selling mostly items that can be used during the flight such as books or electronics as well as meals and snacks.  The airline said there will be a wide variety of items with a wide price range.  Part of the test is to determine what the customer wants.

Ambassador Cruise Line is putting its Majestic America Line up for sale to focus on Windstar.  The line will operate the itineraries for 2008.  Majestic was formed when Ambassador bought American West Steamboat Co. and the Delta Queen Steamboat Co. The company has suffered several problems over the past year.  The Empress of the North ran aground in May of last year and last month there was a fire in the engine room of the Queen of the West forcing the cancellation of several cruises.  The Columbia queen had to leave dry-dock early to take over the itinerary of the Queen of the West.  There is the question of whether the Delta Queen will be able to continue sailing the Mississippi.  A rally was held in Louisville yesterday in support of keeping the Delta Queen and another will be held this week in Cincinnati.

Princess' Star Princess and Caribbean Princess will be getting some new amenities.  An adults-only Sanctuary area, a Crown Grill steak and seafood restaurant, a relocation of the casino and seven new ocean view suites will be added.  The atria on the two ships will be remodeled into the piazza-style street cafe and the sports court, the Internet cafe and the wedding chapel will be moved.  The Star Princess will enter dry-dock in September in San Francisco and the Caribbean Princess will go into dry-dock next January.

News is courtesy of ARTA Online.

AIRINC and Gate Gourmet are entering into a partnership to market on-board sales programs for the world's airlines and rail systems.  Gate Gourmet will offer AIRINC's SkyBuy sales technology as a standard in its buy-on-board programs while AIRINC will work exclusively with Gate Gourmet on outsourced catering and buy-on-board projects.  Airlines will be able to sell food and beverages, in-flight entertainment, duty-free items, rail passes, even tickets to ground shows and entertainment with the facility of payment by credit card, cash, or smartcard, and in multiple currencies.

According to a survey by AOL and Zogby International, 57% of Americans said they would have less money to spend on travel this summer than they did in 2007.  33% said they would stay with family or friends instead of hotels and 37% plan to drive rather than fly.  20% are planning to stay in a vacation rental instead of a hotel.  69% said increases in the cost of gas or terrorism would not affect travel plans.  Some 53% of respondents said they are planning week-long or longer vacations and 60% are planning to travel to destinations that are more than 6 hours from home.  10% of Americans plan to go to Europe, 19% to travel internationally to destinations other than Europe and 12% are planning to cruise.  51% of those surveyed plan to book all of their vacation on the Internet but 42% said they prefer to speak with a real person when booking summer travel.

Air New Zealand is raising domestic fares by an average of 3%.  US Airways increased change fees by $50 per ticket yesterday.  The change fee is now $150 for all domestic flights and those between the US and Canada, Mexico, the Caribbean and Latin America.  The change fee for all other international flights is $250 unless otherwise specified in the fare rule.  This matches change fees initiated previously by United and Continental.  Virgin Atlantic is offering a special fare to stranded travelers booked on bankrupt Eos.  The special one-way fare in Upper Class starts at 799 pounds from London and includes all taxes and charges and can be booked via Virgin Atlantic's contact centers or their ticket desk at Heathrow's Terminal 3.  Those holding tickets for travel on an Eos flight between April 29 and June 30, 2008 are eligible for the price.   The price is $1,299 for those flying from JFK, Newark, Boston or Washington to Heathrow and that fare can be booked through reservations or at the airport ticket counter.  Silverjet is also helping out the stranded passengers as reported earlier.

Delta is having a new economy seat and layout designed for its economy class on international flights beginning in 2010.  The seats would be staggered and resemble office cubicles slanting across the cabin allowing one extra seat added per row.  The new design would offer more privacy for each passenger even though the distance between rows will not change.  The seats will have a wrap-around back which will remain stationery and seat bottoms that will move back and forth and up and down, to give passengers more leg room.  The airline hopes the FAA will approve the seat design this fall so the seats will be manufactured and be installed on its Boeing 767s and 777s in 2010.

The leader of the United Airlines pilot's union said a merger between United and US Airways would be "extremely negative, and while United has its own problems and issues, US Airways problems run even deeper."  He also said the reports of an imminent merger have generated enormous concern among the pilots at United.  The pilots at US Airways have not reached an agreement and that merger happened in 2005.  They work on separate contracts and have been through arbitration and now have just elected a new union to represent them.  Does US Airways need a third group of unhappy pilots?  The pilots have also issued a statement protesting the compensation package for CEO Glenn Tilton of $10.3 million when the airline posted a loss of $545 million in the first quarter.

Two more airlines have reported a profit for the first quarter.  West Jet reported a profit of $52.5 million as revenue passenger miles rose 17.9% and capacity rose 19.1%.  The strong Canadian dollar played a big role as the airline's costs of new planes and fuel are priced in US dollars.   Allegiant posted a profit of $9.7 million on higher load factors, ancillary revenue and a more even spread of departures.

Tomorrow is May 1 the International Labor Day.  There will be demonstrations and protests worldwide and violence is possible in some areas.  Travelers can expect transportation delays in most locations.  Protests will likely take place in all major European cities with extensive transportation delays.  Turkish unions are calling for a large scale demonstration in Taksim Square and violence has occurred there on past May Days.  There will be a heavy security presence there.  In the US, unions and immigrant groups will hold several rallies, demonstrations and marches across the country so expect major transportation disruptions in all major cities.

NCL is being sued by a woman from California who traveled on the Norwegian Star and could not get reservations in the specialty restaurants.  The lawsuit was filed in Fort Lauderdale and the attorney will try for class action status on behalf of all passengers that have booked standard cabins on an NCL cruise since April 2005 "who were unable to make reservations to eat in a specialty dining room of their choice while on their cruise.”  The suit claims that NCL marketed its cruises on the Freestyle Dining concept of having many restaurants to choose from, but did not disclose that making reservations in the specialty dining rooms "might be impossible to get, in part because the cruise line gave priority seating to those who spent more money when buying a cabin.”  I would add that reservations also have to be made in the main dining rooms.

Celebrity's Galaxy will be the first ship in the new TUI Cruises fleet.  TUI is a joint venture between TUI AG and Royal Caribbean Cruises, Ltd. that will market specifically to the Germans.  The company has spent some $4 million in upgrading the ship, including new carpeting, upholstery and lighting in some of the public spaces and staterooms.

News is courtesy of ARTA Online.

The company that owns Alamo and National car rentals has filed a lawsuit against Orbitz.  Vanguard alleges breach of contract and deceptive business practices in its relationship with the company since it was purchased by Enterprise Rent-A-Car last year.  Orbitz demanded an additional $1.5 million from the company under an existing contract that ends at the end of this year which Enterprise-Vanguard refused to pay.  Orbitz then removed the two car rental companies from its booking engine.

The Department of Homeland Security has a new initiative that is now being used at the Baltimore-Washington airport.  Called Checkpoint Evolution, the project includes soothing music and soft lighting at checkpoints, easy to read signage and plexiglass conveyor belts to allow passengers to see their belongings at all times.  The DHS thinks this can help security screeners to do a better job.

British Airways has unveiled a major online project called "Inspiration."  The airline joined with Microsoft to develop research and a booking tool for its website.  The software is based on Microsoft Silverlight rich media technology and has moved away from the traditional web selling by trying to inspire customers with detailed tourist information, pictures, video and other graphics so they can put together their own personal holiday.  It’s all about what is called dynamic packaging.  BA is also going to test a similar project using a technology by a Microsoft rival so the airline can choose the best one.

Yesterday Delta started another round of fare increases by raising its fuel surcharge some $10 to $40 roundtrip.  The increases cover most of Delta's routes.  So far the increase has been matched by United who applied the amount of increase depending on airfare and city pairs.  This is the 14th try since January 1, nine of which have been successful.  This increase will depend on the other four major carriers matching it.  The average cost of a ticket in the US was up 10.2% last month compared with a year ago while inflation was up 4%, according to the Bureau of Labor Statistics.

American will begin charging $25 for a second bag for coach passengers.  The fee goes into effect May 12.  Exceptions are members of the AAdvantage program who have achieved Gold, Platinum and Executive Platinum levels, those who have purchased full-fare tickets in Economy, Business and First Class and those flying international except to/from Canada, Puerto Rico and the US Virgin Islands.  Lufthansa says it will use its call option to purchase the 50%-plus-one-stake in BMI that is held by Chairman Michael Bishop.  Lufthansa already holds a 30%-minus one-share in the UK airline.  The remaining stake is held by SAS who will put it up for sale.

British Airways is raising their fuel surcharge again.  Short Haul flights will go up by $12 one-way while long-haul flights up to 9 hours will increase by about $40 and those over nine hours will increase by about $55, with pricing depending on the exchange rate.

What a difference a day makes.  Until Continental jilted United on Sunday media reports had them being married and living happily after.  But Continental got cold feet and today you have United and US Airways in the final stages of planning a trip up the aisle.  At least, that's what the media is reporting this morning.  United Airlines certainly wants to marry someone, anyone, as long as its quick, because their financial situation is not a pretty one.  United's CEO said, "We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders.”  I hope US Airways knows what it is doing.

Disney Cruise Line will begin charging passengers a fuel surcharge on any booking made on or after May 28.  The fee of $8 per person per day applies to the first two passengers in a stateroom up to a maximum of $112 per person per vacation.  For more than two persons in a stateroom the charge will be $3 per person a day up to a maximum of $42 per person.  The surcharge will be dropped when oil drops below $70 per barrel.

News is courtesy of ARTA Online.

It’s no surprise that the lawsuit several skycaps won in Boston against American a few weeks ago has spawned several more.  Three more lawsuits have been filed against United, US Airways and American by skycaps who claim they lost tips when carriers began charging a $2 fee for curbside check-in.  The lawsuits were filed in Boston and are similar to the one filed against American.  Most skycaps do not work for an airline but a company contracted by an airline.  American is considering appealing the decision.

Travel Insured International now has an upgraded line of plans under its Worldwide Trip Protector.  The new offerings are available to sell as of today.  They include, depending on the selected plan, Kids are Free coverage, Cancel for any Reason and Cancel for Work Reasons options, a sports coverage option, ID theft recovery assistance, Pet Care coverage, Missed Port of Call and School Year Extension protection.  Each plan offers a list of included and optional items.  To learn more about the program go to www.travelinsured.com

Federal officials have reported that Dallas Air traffic controllers systematically covered up their involvement in safety errors that brought planes too close together.  The FAA already has problems over Southwest airlines by allowing that carrier to fly planes that had not received critical safety inspections.  They then decided to tighten up their reviews of other airlines resulting in a large number of groundings of American planes after more safety violations were found.  It was found that controllers claimed that 62 incidents of planes being too close together were the fault of pilots when in fact it was the fault of the controller that caused the error.  The FAA is hiring a new head of safety within its air traffic division who will oversee a review of all controller errors to local facilities and will not be tempted to alter data.

All the major airlines have joined in the last fare increase of 2% to 5% initiated by United last Thursday.  Air Canada will charge $25 for a second checked bag May 15 on flights within Canada and the US, including Hawaii for Tango and Tango Plus passengers.  Northwest and Finnair have added carbon emissions calculators to their websites.  Travelers can see the estimated carbon emissions associated with their particular flight.  Qantas is raising fares by up to 3.5% on May 9.  Domestic fares will rise about 3.5% and international tickets will rise by 3%.

The rumor mill was working overtime last Friday and on into Sunday that United was either going to merge with US Airways or Continental with Continental being the favorite, or Continental was ready to merge with American, but Continental scotched that idea on Sunday when it sent a letter to employees stating it would remain a stand alone carrier.  The message said that now is not the time for the airline to combine with another carrier and the board agreed unanimously the risk of merging with United outweighed the potential rewards and that the company will continue to look at alternatives to SkyTeam and carefully evaluate which major alliance will be best for the airline over the long term.  Today's latest rumor has Continental and British Airways negotiating a marketing alliance.

Air New Zealand engineers are threatening to strike May 9 for up to two weeks over a pay dispute.  The two unions involved represent about 1,500 engineers.  During the first week the engineers could refuse to work overtime and during the second week would not check aircraft to make sure they are airworthy.  This could have an effect on flights.

EOS, a business class airline flying between New York and Stanstead, declared bankruptcy over the weekend and flew its last flights yesterday.  Silverjet, another business class airline, has offered to fly stranded passengers for the same price as their EOS ticket if space is available.  To take advantage of the offer, call 877-359-7458 before 7pm EST on May 10.  EOS is the second all business class airline to shut down, following MAXjet which shut down before Christmas.  EOS filed for bankruptcy in the US Bankruptcy court in the Southern District of New York.  April has certainly been a busy month for airlines going under.

Royal Caribbean Cruises Ltd. posted a first quarter profit of $75.6 million compared to net income of $8.8 million in the same period last year.  The cruise line attributed the increase to higher yields and increased capacity even with higher fuel prices.  Capacity will increase some 5.1%in 2008 and forward bookings are strong.

The house passed the Coast Guard Authorization Act that would require the Coast Guard to maintain statistics on missing persons and alleged crimes committed on cruise ships.  The crimes would have to be posted online for everyone to see and the cruise lines would have to provide a link to the site from their own sites.  In a statement, the co-sponsors of the bill said, "The cruise industry has a responsibility to keep their customers safe.  Increased transparency of reported crimes and increased oversight of cruise security standards will achieve this goal and make sure that the public is aware of the potential for crime to happen on the high seas."

News is courtesy of ARTA Online.

The British Air Transport Association says it will cost British families who want to leave the country about $500 up from some $320 now, if a new aviation duty is levied on every departing aircraft to replace the Air Passenger Duty.  Industry experts say this will create significant competitive disadvantages for airline flying long-haul service from the UK, and this includes American and Canadian carriers.  Travelers would find it cheaper to connect through airports on the continent instead of the UK.  This new duty is connected to emission control but in fact does nothing to encourage investment in more environmental aircraft and is not linked to the emissions of a particular type of aircraft.  If passed this new tax will take place in 2011.  IATA has called on the government to ditch the proposed tax.

Some UK airports are getting facial recognition technology to try and improve security and reduce passenger congestion.  Unmanned gates will be available for holders of new UK and EU biometric passports to scan their faces and match them to records.  If successful the project will be extended to all major UK airports.  Border security officials believe the new technology will be more effective at screening passports and preventing identity fraud.

India is suffering from a lack of hotel rooms in many parts of the country and especially in large cities.  The country has only 86,000 hotel rooms in a country of 1.1 billion people while there are more than 4.3 million hotel rooms in the US with about 74,000 in New York City alone.  This has led to a large increase in hotel rates with rooms in a five star hotel going for more than $500 a night.  The country hopes to double the amount of rooms by 2010 and firms such as Marriott and Hilton are putting up new hotels.  Marriott is building some 24 hotels and all will be open by 2011 and Hilton is building 75 hotels in the next 7 years.  Starwood Hotels and Resorts have plans for 12 Sheraton and Westin Hotels in the next three years.

The Association of Corporate Travel Executives (ACTE) has issued a warning to members worldwide and to all business travelers.  You need to limit proprietary information on laptop commuters when crossing US borders, and to eliminate any personal data, including photographs, finances and Email that you do not want examined by Border Protection authorities.  This warning follows a decision by a federal appeals court on April 21, 2008, giving customs officials the unfettered authority to examine, copy, and seize traveler’s laptops - without reasonable suspicion.  This ruling could have a disastrous impact on business travelers who have no idea their data is subject to search and seizure.  ACTE took a survey this year that showed 81% of responding travel managers were unaware that laptops and other electronic devices that were seized could be held indefinitely.  ACTE suggests that if your laptop also serves as your major home computer, get another one for travel purposes and limit the amount of proprietary business information you carry on your computer and transmit it before crossing the border so you have access to it in the event your computer is seized.

Here's a new airline policy that seems to bucking the trend to higher baggage costs.  Iberia is launching a new baggage policy to reduce complications and costs for passengers.  On long haul flights to the Americas or Africa, economy passengers can check up to 46 kilograms in two pieces each weighing a maximum of 23 kilos.  That's a maximum of 50 pounds per bag.  The charges for excess baggage will be cut by about 50%.  When paid in advance on the airline's website the cost is reduced by 30%.

Alaska and Horizon will increase the charge for booking through reservations and airport sales agents from $10 to $15 effective May 21.  The fee for overweight luggage goes from $25 to $50.  The cost to transport a pet in the cabin goes from $75 to $100 one-way and the unaccompanied-minor fee goes from $30 to $75 one-way on nonstop flights and from $60 to $75 for connecting flights.  Hawaiian Airlines will launch daily Honolulu-Oakland service May 1 using a Boeing 767 with 264 seats.

United initiated the 13th attempted fare increase yesterday, raising fares from $4 to $60 roundtrip for leisure fares and $4 to $70 for business travelers.  So far this has been matched by both American and Delta.  The other three major carriers could raise their fares today, especially since none of the major carriers posted a first quarter profit.  The increases went into effect last night.  If you are planning to travel around the country or internationally this summer it’s a good idea to buy now and not to wait for prices to drop.

The Independence of the Seas, now the world's largest cruise ship, has arrived in Southampton where it will spend the summer.  The ship will be christened next Wednesday by the winner of a nationwide search to find an ordinary woman who has done extraordinary things for young people in her local community.  The ship is 1,112 feet long and holds more than 4,300 passengers.  It is the largest ship to sail from the UK.  Just think, walking up and down the corridors five times would equal more than a mile.

NCL has released some information on their new F3 ships, the first of which will launch in 2010.  The ships are being designed to create a cutting-edge resort vacation experience.  New Wave Deluxe staterooms will feature a seating area, flat screen TV, mini-bar, balcony and expanded living space.  New Wave Balcony rooms will have new bathrooms, curved walls, seating area, flat-screen TV, Mini-Bar, and Balcony.  Standard rooms will have the new bathrooms, Flat-screen TV, and mini-bar while inside rooms will feature the back-lit domed ceiling.  One new design has the toilet and shower separated, each with its own door.  The new ships will offer 66% more guest space than the cruise lines current ships, which will be used to provide more onboard activities, amenities and stateroom options.  All outside staterooms will feature private balconies.

Regent Seven Seas Cruises had raised their fuel surcharge to $10 per person, per day, effective May 1.  The increased surcharge applies to any booking after that date.

News is courtesy of ARTA Online.

A new hospitality study found that Atlantic City came out ahead of Las Vegas in virtually every category from value for price, to sophistication and pampering.  Market Metrix surveyed 35,000 travelers and about 10,000 of those were in the gaming markets.  78% of Atlantic City visitors were very likely to recommend the gaming area to others while 59% of Las Vegas visitors would recommend the area to others.  Atlantic City guests are more satisfied with their hotel and casino experience.  This was a surprise to those running the survey.

The Jamaican government has agreed to legalize gambling casinos in Jamaica and has already approved a development by a group of international investors but it must be approved by parliament.  There has been strong opposition to allowing casinos although there are now slot machines and other gaming devices to be found in bars and hotels across the island.  The government said that studies showed gambling would be a viable industry and bring employment.   Licenses will be granted on a condition that an investor commit at least $1.5 billion towards the project and the project must involve a hotel with no fewer than 1,000 rooms.  The casino portion of the project would be limited to no more than 20% of the total project.

Hawaii Volcanoes National Park has been evacuated for the second time this month as elevated levels of sulfur dioxide came from Kilauea volcano yesterday.  About 2,000 people had to leave the park because of lack of wind to keep the gas from moving away from Halemaumau Crater.  A park spokesperson said they were in close contact with the National Weather Service and looked for more favorable winds by the end of the week.  The Volcano House Hotel and the Kilauea Military Camp was also evacuated.   Kilauea is one of the world's most active volcanoes. 

Thai Airways International is raising its fuel surcharge by 20-25% on April 28.  United not only raised it fees for changing domestic tickets but raised fees to $250 for changing international tickets.  These changes affect Lufthansa tickets as well where they code share with United.

Two more airlines posted their first quarter results this morning.  US Airways reported a net loss of $236 million compared with a profit of $66 million for the same period last year.  Alaska Air Group reported net loss of $35.9 million.  US Airways says it will return six Boeing 737-300 aircraft when the carrier's leases on the planes expire this year and next year.  As airlines report their losses they are also reporting cutbacks in the number of planes they use.  By year's end domestic capacity will be way down and fares will be way up.

Delta and Northwest CEO's are in Washington today to give testimony before the House and Senate antitrust panels regarding their merger.  Lawmakers want to know just how the merger will affect consumers but we already know the answer to that question.  Also appearing before the panel are the president of the International Association of Machinists union and the international vice-president of the Association of Flight Attendants, Kevin Mitchell of the Business Travel Coalition and Darren Bush, Associate professor of law at the University of Houston Law Center.

Louis Cruise Lines is buying the Norwegian Dream and the Norwegian Majesty from Star Cruises for $380 Million. The Norwegian Dream will be chartered back to Star Cruises until November of 08 and the Norwegian Majesty until December 08.  Louis Cruise Line said the purchase would increase its position in the Mediterranean cruise market.

The Carnival Dream will call Port Canaveral home.  The Dream is the largest ship to be built for Carnival and will enter the fleet in the fall of 2009.  The Dream will carry 3,652 passengers.

Oceania Has increased its fuel surcharge to $10 per person per day for the first two guests in a stateroom.  There is no charge for additional guests or a cap.  The surcharge applies to each day of a sailing no matter how long the voyage.

News is courtesy of ARTA Online.

The Department of Homeland Security announced yesterday its proposals for new rules that will establish biometric exit procedures at all US air and sea ports of departure. Non US citizens who provide biometric identifiers for admission will also be required to provide digital fingerprints when departing the country from any air or sea port of departure. Biometrics confirms that travelers are who they say they are and the purpose of their travel is as they claim it to be. The proposed rule does not change current exit procedures for departing visitors. The proposed rule change would require commercial air carriers and cruise line owners and operators to collect and transmit international visitor’s biometric information to the DHS within 24 hours of leaving the US. Airlines are already required to transmit biographic information to the DHS prior to their departure. The DHS plans to implement air and sea biometric exit procedures by June 30, 2009. The notice of proposed rulemaking will be published in the Federal Register and will provide the general public an opportunity to submit written comments electronically or by mail.

A group of industry players have joined together to work towards "carbon-neutral growth" and to reducing the industry's contribution to global warming. The group includes Embraer, Bombardier, Boeing, Airbus, airlines, airports and air traffic controllers. All signatories to the declaration agreed, "We are committed to a pathway to carbon-neutral growth and aspire to a carbon-free future."

Travelers renting cars at New Orleans Louis Armstrong International Airport will soon be paying a $5-per-day customer facility fee on airport car rentals. The airport plans on using the funds collected on a 2,600-space consolidated rental car garage it plans to build by 2012. Construction on the facility will start in 2010 and be completed by 2012. Car rental counters and service facilities will be consolidated in the new building and the number of cars near the main terminal will be increased. Moving sidewalks will connect the garage to the main terminal.

Both Delta and Northwest posted first quarter results this morning and the figures are mind boggling. Delta reported losing $6.4 Billion and Northwest reported a loss of $4.1 Billion, together a loss of $10.5 Billion. Delta posted a $6.1 billion impairment of value established under the so-called fresh-start accounting when the airline left bankruptcy. The write-down shows the difference in the assumed cost of fuel and the real cost of fuel and its effect on the airline's market capitalization. Northwest's loss also included an impairment charge of $3.9 billion. The loss for Northwest translates into $15.78 per share but shares were selling this morning around $7.15. Delta loss was $16.15 per share and their shares are selling this morning at $6.95. How can a merger improve the situation? Both airlines announced reductions in capacity for the fall.

Federal investigators checking out a US Airways 757 found cracked wing fasteners on the plane that lost a wing panel over Maryland last month. They also found cracked wing clips on seven of the 18 older Boeing 757s. The National Transportation Safety Board said all planes had been repaired and it is in the process of checking the 757 fleets of other airlines to see if the problem is widespread. Back in the 80s the FAA ordered operators of the 757s to install a redesigned fastening system and it was these redesigned fasteners that failed on the US airways plane. The NTSB is continuing to evaluate the design, installation, inspection and maintenance of the failed components to determine the cause of the failure and the effect on the 757 fleet.

Three skycaps are suing US Airways and a contractor to recover lost tips since the airline started charging customers a fee for curbside baggage check-in. The airline imposed the fee last year. The suit claims the defendants violated the Fair Labor Standards by paying skycaps between $2 and $3 an hour, even though tips no longer bring their wages up to the federal minimum wage of $5.85 per hour. Several American skycaps won a suit against American Airlines over the same issue earlier this month. The skycaps want class-action status to sue as a group.

The Italian government has committed to giving Alitalia a bridge loan of $475 million, risking the wrath of the EU in doing so. The government wants to keep the airline running while they try and find a buyer for their 49% of the airline. The EU has threatened court action over any further aid for the airline. The carrier has agreed to repay the loan by the end of the year. The loan will keep the airline out of bankruptcy until then.

JetBlue will charge $20 for a second checked bag effective for travel on or after June 1. Mexicana will add a $5 fuel surcharge for each segment on a ticket between the US and Mexico. Spirit Airlines will begin nonstop service to Port of Spain from Fort Lauderdale effective June 12. This will be Spirit's 22nd Caribbean/Latin America destination and its 43 destination city. Southwest is adding new nonstop service from Denver to Indianapolis and Portland and one additional flight between Denver and Las Vegas effective June 4. The airline will also add one additional daily nonstop between Denver and San Antonio effective August 23.

Congratulations to Andy Stuart for being promoted to Executive Vice-President and Chief Product Officer of NCL. Stuart was formally Executive Vice-President of Sales, Marketing and Passenger Services and led the implementation of Freestyle Cruising across the NCL fleet. He will serve as project chief of the new F3 ships which will include planning, coordination and oversight of the ships as well as design, building, commercial, marketing the launch, product development and operational delivery of the new ships.

RCCL has increased its fuel supplement. First and second guest in a stateroom will pay $8 per person-per day and no more than $112 per person per cruise. Additional guests will be charged $3 per person per day to a maximum of $42 per person per cruise. The fuel charges apply to all ships in the RCCL fleet, the Celebrity fleet and the Azamara fleet.

News is courtesy of ARTA Online.