We Need an
Airline Passenger Bill of Rights |
We have more consumer protection if
we buy a loaf of bread or a car than if we buy an airline
ticket.
The current situation allows the
airlines to profit from poor customer service. We need to
change the model so they profit from good customer service and
are penalized for bad customer service. We need an Airline
Passenger Bill of Rights.
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Airline Competition
1980 - 2010 : RIP |
Little by little, our airlines have
transitioned from too much regulation (prior to 1980) to too
little regulation now. They've exploited their anti-trust
immunity rights and have ended up, internationally, with 50+
international carriers individually competing across the
Atlantic now being replaced with three mega-monolithic monsters.
It is claimed this benefits the
public. There's no evidence to support this claim, which
on the face of it is economic nonsense. Read our six part
series for more.
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Is
Airline Competition Always Fair? |
Should established carriers be
allowed to sell tickets below cost, and below startup carriers'
fares, so as to starve the startup carrier into bankruptcy?
Does this benefit us, the traveling
public? To see new carriers promising lower priced travel,
then failing after predatory tactics by established airlines?
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US
Airline Regulation 1911 - 1979 |
Should the US have deregulated the
airlines in 1979? Are we better off or worse off? In
this new series, we look at the history of airline regulation in
the US, why and how it evolved, and why it was eventually
abandoned in 1979.
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The Overcapacity Excuse |
If a dinosaur airline executive
claims the sun is shining, you better bring an umbrella.
Whether it be due to stupidity or
dishonesty, the latest excuse for the dinosaur airlines'
financial disaster fails to stand up to a factual examination.
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United's Undisclosed $15
billion Asset |
United has been in
bankruptcy since December 2002 and keeps delaying its exit from
Chapter 11, seemingly unable to bring itself back to financial
health.
It has laid off staff and reduced
salaries of those that remain. It has taken a $6.6 billion
taxpayer bailout. And still it is in bankruptcy.
But read here about a $15 billion
asset which you won't find the airline admitting to - indeed, on
its balance sheet, this asset is valued as a $840 million
liability!
What gives?

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How
and Why Airfares Change When You Go to Book Them |
How frustrating is it when you go to
buy an airfare that you've just found online, but in the few
minutes between finding the fare and making a booking, it has
disappeared. Is this just bad luck?
Or is there something more sinister at play here?
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Are the
Airlines Seeking to Create Unique Fares Custom Priced for
Every Passenger? |
The recent purchase of ITA by Google
might open the door to allow airlines to uniquely customize the
fares they offer every different potential passenger.
This is currently illegal, but if it were allowed, would it be
good or bad for us and why?
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Is
the DoT Trying to Embarrass the Airlines? |
The Dept of Transportation includes
165 pages of comments and submission excerpts in its new notice
of final rulemaking. The airline
comments excerpted range from outrageous to ridiculous - is this
really the level of intellectual honesty and discussion the
airlines offer in their submissions?
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How to
Avoid Trapping Passengers on Planes |
Although the airlines have lots of
excuses, this article shows how easy it would be to ensure that
passengers never get stranded on planes for many hours at a
time, while the plane is still on the ground at an airport.
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Southwest merges with AirTran - but Why? |
Southwest Airlines announced a plan
to buy AirTran, paying 69% above the present value of AirTran to
do so.
Why is Southwest paying so much over
the odds for this airline? Will the changes Southwest
brings to AirTran enhance or detract from AirTran's value.
Oh - and how about us? Will we,
the traveling public, be better off or not?
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Can and Will
Qantas Survive? |
The world's longest
continually operating airline - and for many years, perhaps the
world's finest airline - is within ten years of marking its
centenary. But will it survive to celebrate this event?
This question, once unthinkable, is now
being increasingly asked. Read our analysis, and our
suggestions, for Qantas.

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AA Puts on the Squeeze |
After putting the
squeeze on its employees and its suppliers, it was perhaps
inevitable that financially struggling AA would next put the
squeeze on its customers.
But in a mindlessly gratuitous insult
to its customers, AA chooses to squeeze more seats into its 757s
and A300s, even though it is suffering the lowest percentages of
filled planes of any of the big six carriers.
How stupid is that - adding more
seats when you can't even fill the seats you already have?

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The
Airlines' Unique Approach to Customer Satisfaction |
Have you ever
encountered any other industry that cares so little about its
customers? Truly the airlines set a universal low that no
other competitive industries come close to reaching.
Why is this? Don't the usual
competitive market pressures apply to airlines too? Maybe -
gasp - the airlines aren't actually competitive? Aren't the
airlines negatively impacted if/when we resolve to 'take our
business elsewhere'?

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A New
Business Model for the Airlines |
After enjoying perhaps
more profit than they deserved in the past, regional carriers are
now suffering from less profit than they need to survive.
But perhaps there's an opportunity -
indeed two opportunities - for the regional carriers to adapt and
to change their business model to reflect the changing environment
and relationship they have with their major carrier 'partners'.

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BA Bait
and Switch? |
How can one explain
the situation where BA offers fares variously for $576, $626 or
$702, but in reality, the lowest fare available is $868 - on the
same web pages that promise a $626 fare?
This is either very bad web
programming, or something more sinister and nefarious.
What do you think?

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Concorde
- An Untimely and Unnecessary Demise |
Undoubtedly, Concorde
is the most beautiful and best known passenger plane in the world.
Although the planes are no longer
new, they have been lovingly maintained and upgraded. They have
comparatively low flight hours and are certified as airworthy
until 2009 (with further extensions possible).
But now, British Airways and Air
France announce a double blow : They will both withdraw their
planes from service in October 03, and they are refusing to sell
them to any other airline to operate. Why?

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All About Overbooking Flights |
A six part series that tells you why
airlines book flights, and why it is good for you, and what to
do when you may be suffering the consequences of an overbooked
flight yourself, plus specific details on airline obligations
and your rights in such cases.
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Ten
Reasons Why People are Flying Less |
After steady growth for decades, air
passenger numbers have turned around and have registered an
alarming decline for nine months in a row (April - December
2008).
The airlines claim it isn't their
fault. It is due to economic problems, they say. We
disagree. Read this three part series to see the facts and
figures about why people are flying less.

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Where is Boeing Going? |
In only a decade in the 1950s-60s,
Boeing won itself unquestioned dominance as the world's best
passenger aircraft manufacturer.
But after two decades of resting on
its laurels, Boeing is now equally obviously losing the right to
that title, while Airbus is winning on every front, with every
airplane type.
In this five part series, we
chronicle Boeing's rise to success, explain how it then lost its
dominant position, and offer suggestions for its future.

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Airbus
Fires the First Shot in the New A320/737 War with Boeing |
Stakes have never been higher in the
airplane building industry than they are at present with Airbus'
announcement of a new model A320, an essential response to the
increasingly real presence of new competitors-to-be.
Boeing has yet to respond, and more
to the point, has few easy options to select in response.
Read the full fascinating story of
this very high stakes game and how it may be that Boeing has
outsmarted itself. A four part series.

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Should We Allow Foreign Ownership of US
Airlines? |
One of the fundamental
tenets of American capitalism is that competition is good for
everyone, including even the competing companies.
Maybe part of the problem in the
airline industry at present is due to its protected nature.
Let's not continue to give them taxpayer handouts to perpetuate
their loss making inefficiencies.
Instead, we should fully implement
the American ideal and bring full free competition to our skies,
by allowing international investors and airlines open access.
This article rebuts every possible reason naysayers advance in
an attempt to preserve the status quo.

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Does Emirates
enjoy an Unfair Advantage? |
Emirates is an amazing airline.
It combines high rates of growth and high quality service with
high levels of profitability.
This has caused some detractors to
suggest that Emirates enjoys unfair advantages because it
allegedly gets a break on its jet fuel purchases and gets
unlimited capital for investment from its owner, the Dubai
government.
Is there any truth in either of these
two claims? We run the numbers and come up with clear
answers.
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Are
Portable Electronics Safe to Use on a Plane? |
You're probably used to be told the
FAA requires us to turn our electronics off prior to a plane
taking off, and prior to it descending to land again.
But, - why? What is the risk?
And what are the official FAA rules?. The answers to both
questions will surprise you.

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The
Dinosaurs Fight Back - Futilely? |
The market dominance of the major
traditional airlines is no longer guaranteed.
New low cost competitors not only
offer lower fares, but also, in many cases, better service. And
with massively lower operating costs, these new airlines can
withstand the price slashing tactics the major airlines have
used in the past to bully small airline startups out of
business.
The traditional response of major
airlines to new startups - to slash prices and increase flights
on competitive routes - may, this time, do more harm than good
to the dinosaur airlines.
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Another Airline Bailout? Just Say No! |
Should the airlines be
treated as a special case and given still more cash (after the $5
billion in payments just over a year ago)?
What would happen to our ability to
travel conveniently and affordably if several major airlines
went bankrupt? Are there alternatives to simply giving more
billions of dollars to the airlines to keep them alive?
Find the answers these questions in
this article.

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The Failing Airline
Industry - Suffering from Self Inflicted Wounds? |
Described as having
'made a number of mind-numbingly irresponsible financial decisions
over the past year' by his own staff, United Airlines' Chairman
James Goodwin is now predicting the once proud carrier may perish
within a year.
But, in my opinion, the most
mind-numbingly irresponsible action of all was Goodwin's
semi-public letter, released just two days ago.
This, along with many other examples of
strange actions by the airlines, makes me wonder if the airlines
are suffering from a collective death wish.

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There Are No Easy Solutions |
I bounce some ideas
to improve the current airline service problems off Aloha
Airline's Senior VP of Business Development. The sad conclusion -
it will never be as easy as pre-11 Sept, and those lines aren't
getting any shorter any time soon.
Read an online transcript of our
discussion.

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Airline Zen : Less is More |
Read about how
Europe's success story airline is proposing to give away, for
free, up to 10% of its tickets, and often charges no more than $15
for roundtrip flights to destinations as far as 1000 miles away.
Then wonder with me, why it is that our US carriers can't copy
some of low fare carrier Ryanair's three part recipe for success?
Also, will your favorite airline go
broke and this week's stupidest airfare sale.

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Air Fares Aren't Fair |
Even the airlines now
agree that their present pricing no longer seems to work. But they
don't seem able to come up with a better system!'
This article explains the challenges
that airlines face, and also dispels the myth that 'discount'
carriers make money from selling cheap tickets.

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Fixing Fares : A Do-It-Yourself Guide |
Here are some
suggestions from readers about what should be changed to restore
fairness and encourage air travel. These suggestions are in
response to the article 'Air Fares Aren't Fair'.
Send a copy of this article to your
favorite airline CEO!

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The Airlines' Fatal Mistake |
With an ineptness
that only airline executives can achieve, the airlines are
adopting the totally wrong strategy to reverse their present death
spiral. And, inevitably, the main victims of their errors are us,
their long suffering customers.
Here, in simple language - intended to
be understood even by airline executives - is an analysis of what
went wrong and what needs to be corrected.

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Is Delta
Going to Buy an Oil Refinery - and Why? |
Although close to 1
April, it is apparently not a joke that Delta is close to buying
its own oil refinery.
At first glance, maybe this could be a
good idea. But read our analysis to appreciate the colossal
foolishness of this.

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Your Rights with Bankrupt Airlines |
The last time there
was an airline bankruptcy, some airlines failed to follow the
obligations imposed on them by the Aviation and Transportation
Security Act of 2001.
Here's an explanation of their
obligations - and your rights - in such situations.

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This Bird Won't Fly |
Delta announced plans
to create another low cost subsidiary airline. This will replace
its already existing low cost subsidiary, Delta Express, which
apparently is not a commercial success.
Is there any reason to expect that
Delta's next attempt will be any more successful? I think not!

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Six Steps to Success for United
Airlines |
Six Steps to Success
for United Airlines : With a new CEO from outside the industry,
and a Chapter 11 enabling them to start afresh, UA are at a major
crossroads.
In a desperate search for solutions,
they are paying $1.5 million monthly to a management consultancy
for ideas and advice. I give them six action items for free.

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Don't Do It, Delta! |
It is one thing to
preferentially reward one's 'best' frequent fliers, but it is an
entirely different thing to penalize other frequent fliers.
Delta's recent changes to its frequent
flier program have a major sting in their tail that we must not
allow to continue. This column suggests what you should do in
response.

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Sir Richard Branson writes a
letter - and sends a picture - to Qantas |
Sir Richard Branson
is a genius at scoring public relations coups.
His open letter to Geoff Dixon creates
a spectacular 'win-win' for Branson (and perhaps a lose-lose for
Dixon!).
Whatever now happens, the certain
result is that Branson will earn substantial more publicity for
himself and his airline, in the 'underdog' role that he portrays
so well.

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The
Exciting Future of In Flight Entertainment Systems |
Just as all other consumer
electronics have massively evolved and improved (and continue to
do so) the same is true of airline IFE systems too.
This article chronicles the evolution
of IFE from its origins in 1921 and looks foward to the exciting
but challenging future of this technology.

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Airline Slogans |
A fascinating collection of more than 560
different airline slogans from over 200 different airlines.
Some are clever, some are funny, some are ironic, and some are
just plain stupid.

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