PlaneBuzz

First terrorist plots.

Then the TSA and no liquids or gels. (Don't forget the gel in those gel-filled bras either.)

Now it's clear the days of flying in peace and quiet are coming closer and closer to certain death.

Today Tom Espiner in CNET writes,

"Ryanair plans to allow passengers mobile access to voice and text communications on all of its flights. The airline expects to launch the service in mid-2007.

The budget airline announced on Wednesday that it will partner with OnAir, an Airbus and Sita joint in-flight communications venture, which plans to fit the entire Ryanair fleet with technology called Mobile OnAir. Initially, 50 aircraft will be equipped by mid-2007, with further installations following."

You can read the article here.

Meanwhile I'm sure this news is great for those companies like Bose and Sony, who make noise-canceling headphones. I would think demand for these will soar once major airlines start "offering" cellphone jabber and screaming all flight long.

As I've said in the past -- text communications and the ability to web surf while flying would be cool. (Although I guess the airlines who ponied up big bucks to equip their aircraft with Boeing Connextion hardware are probably not too happy they chose to go that route now.)

Voice communications -- ugh. It's bad enough having to listen to obnoxious cell phone users at the gate -- at least now we know that at some point they have to shut up.

Posted by Holly at 1:04 PM | Permalink | Comments (1)

This is certainly not a good way to wake up on a Sunday morning when I'm supposed to be on vacation.

Or any morning for that matter.

I thought tracking Hurricane Ernesto yesterday was bad news enough. But while news about his future exploits seem to be more favorable to those of us in the New Orleans area this morning, unfortunately there was bad news of another kind.

This morning Comair flight 5191, which was on its way from Lexington, Ky., to Atlanta crashed shortly after take-off. The flight had 47 passengers and three crew members. One report says there is one survivor. Other reports say all aboard were killed in what was described as a "fiery" crash.

The aircraft was apparently a Bombardier CRJ-100.

As the Associated Press reminded us this morning,

"The crash marks the end of what has been called the "safest period in aviation history". There has not been a major crash since November 12, 2001, when American Airlines Flight 587 plunged into a residential neighborhood in the Queens borough of New York City, killing 265 people, including five on the ground.

On January 8, 2003, an Air Midwest commuter plane operated by Mesa Air Group crashed on takeoff at Charlotte/Douglas International Airport, killing all 21 aboard.

Last December, a seaplane operated by Chalk's Ocean Airways crashed off Miami Beach, Florida, when its right wing separated from the fuselage shortly after takeoff, killing the 18 passengers and two crew members. That plane, a Grumman G-73 Turbo Mallard, was built in 1947 and modified significantly in 1979."

Posted by Holly at 9:59 AM | Permalink | Comments (0)

I know, I know. I've been picking on the folks at Delta lately for their oh-so-stylish gushing press release.

Yes, well they need to be picked on for that.

But on the financial side, I realized that I had not talked about the airline's recent earnings numbers here -- numbers which we at PBB just analyzed as part of our PlaneBusiness Airline Industry Relative Performance Analysis for the second quarter.

Because Delta reported earnings so late in the quarter, and because they are in bankruptcy, the number that caught most people's attention when the numbers were finally announced was the huge loss the airline reported for the quarter. The airline posted a loss of $2.2 billion. But net income before special items and reorganization was $175 million. More impressively, operating income was $369 million, up from a loss of $129 million for the same quarter last year. Operating revenue was up 9.6% while operating expenses were down 2.1%.

Nice combination.

Okay, let's look at the operational numbers -- which we took a harder look at in our quarterly analysis.

The airline saw yield up 15%, passenger revenue per ASM was up 17%, and cost per ASM was up 5%. Cost per ASM excluding special items and fuel was up 5.5%.

Bottomlne, Delta has now climbed out of the muck and mire of the basement. In fact, looking at the airline's revenue performance quarter over quarter, we see an airline that took top honors of the group of airlines we track in our quarterly analysis. Besides Delta, that group includes JetBlue, Southwest, US Airways, Continental, Alaska, United, America West (AWA and LCC are still compared as separate entities), Northwest and American.

The airline that posted the lowest quarter over quarter increase in revenue? American Airlines.

But the news only gets better for Delta, as it not only posted the largest increase in revenues quarter over quarter, it also produced the lowest increase in expenses. (Continental posted the largest increase of the group.)

Not surprisingly Delta also posted, by a very wide margin, the largest increase in profit margin for the entire group.

This is good stuff.

We were also glad to see the airline put their regional flying up for bids this week. It sounds like Delta is going to mix up its current regional mix a bit -- and that is also good thing. We had been critical of the airline previously because they had not yet renegotiated these contracts -- so we see progress being made here as well.

Although I'm sure if you are an employee of one of the airline's regional partners, this is necessarily good news.

Unless you work for SkyWest or ASA.

All that flying was reaffirmed shortly after Delta entered the dank and dark halls of bankruptcy court.

Posted by Holly at 3:00 PM | Permalink | Comments (1)

Yea! It's vacation time. Not only that but there's no hurricane in the vicinity. Well, at least not yet.

This week's issue of PlaneBusiness Banter, which includes our 25 page quarterly supplement, the PlaneBusiness Airline Industry Relative Performance Analysis (try to say that in one breath) is now posted.

A reminder for PBB subscribers. We are now officially on our two-week annual summer hiatus. We'll see all of you again on Sept. 14.

As for PlaneBuzz, they'll be some lurking around in here during our supposed "time-off." We'll also be moving some of the furniture around -- changing up our column content, adding some stuff. That type thing.

So ....we'll be around. Just don't expect a lot. Kind of like flying on an airplane these days. Only we won't require you to give up your liquids before reading.

Posted by Holly at 11:13 PM | Permalink | Comments (0)

This doesn't even classify as a "Dead Tree" award nominee.

This is in a class by itself.

Tuesday Delta Air Lines issued this release:

From 'Project Runway' to Airport Runway, Delta Launches 'Flying in Style' Promotion to Celebrate Sponsorship of Bravo's Hit Reality TV Show

Flight attendants will award stylish passengers with SkyMiles certificates, Crown Room Club passes and coupons for the airline's signature cocktails on select Delta flights from Aug. 23 through Sept. 6

ATLANTA, Aug. 22, 2006 (PRIMEZONE) -- From ``Project Runway'' to the airport runway, high fashion is taking flight on Delta Air Lines. Delta is launching a ``Flying in Style'' promotion on select transcontinental flights from Atlanta, Los Angeles and New York to celebrate the airline's sponsorship of the new season of The Weinstein Company and Bravo's hit reality TV show, ``Project Runway,'' and its role in two upcoming episodes on Aug. 30 and Sept. 6. On select flights between Aug. 23 through Sept. 6, Delta flight attendants will award passengers who are ``flying in style'' -- sporting stylish, fashionable looks while traveling -- with prizes that highlight the airline's distinctive products and services. On Aug. 30, when Delta is featured on the first of two ``Project Runway'' episodes, special premium prizes also will be awarded.
``In support of Delta's sponsorship of 'Project Runway' and our ongoing efforts to create a more entertaining on-board experience for our customers, we're having some fun and recognizing our passengers who are spotted traveling in high style,'' said Joanne Smith, vice president of Marketing for Delta. ``It's only fitting that our incredibly stylish flights attendants, wearing the sophisticated and elegant Richard Tyler collection for Delta, will be recognizing and rewarding our most fashionable customers.''
Delta's stylish passengers will be awarded by stylish flight attendants sporting stunning new uniforms from world-renowned designer Richard Tyler. On May 1, Delta flight attendants, customer service agents and Crown Room Club began wearing the Richard Tyler Collection for Delta, which was inspired by the era of glamorous air travel and are designed to reflect timeless elegance.
Starting next month, Delta will unveil a new innovative domestic product on its transcontinental routes. The product, offered in both first and coach classes, will provide a distinctive on-board experience for customers, with comfortable all-leather seats, signature drink offerings and an industry leading in-flight entertainment system that features live television, movies and music (all available on demand), as well as a suite of video games. With this new product, Delta will be the only domestic carrier to provide customers with a two-class aircraft equipped with video on-demand entertainment available at every seat.

"It's only fitting that our incredibly stylish flights attendants, wearing the sophisticated and elegant Richard Tyler collection for Delta, will be recognizing and rewarding our most fashionable customers.''
Delta's stylish passengers will be awarded by stylish flight attendants sporting stunning new uniforms from world-renowned designer Richard Tyler. On May 1, Delta flight attendants, customer service agents and Crown Room Club began wearing the Richard Tyler Collection for Delta, which was inspired by the era of glamorous air travel and are designed to reflect timeless elegance.

So let me get this straight. With everything else going on in the industry these days, Delta has decided that it's a good thing to reward those travelers who wear Jimmy Choo shoes with a Coach bag thrown over their shoulder, while attired in a Diane von Furstenberg wrap dress? All in an effort to recapture a sense of the days of "glamorous air travel."

As I said, words fail me.

You know, I could have seen this working with Song. Because that product's "brand" image would have fit right in with this promotion. But what I fear is that someone at Delta thought -- "Oh, we can import some of those "good ideas" we had with Song to the mainline -- this is perfect."

Ahhhhhhhh........don't think so.

Now here is an example of the "glamorous days of air travel."

Here we have the dining room of Pan American's Yankee Clipper, a Boeing 314 flying boat, which flew Pan Am's first transatlantic passenger flight in June 1939. The photograph's caption states that the dining tables are made of black walnut, the upholstery features a "spirited blue pattern," and the walls are silvery-beige.

Now, until Delta tells me they are putting in walnut dining tables and providing dining room seating attended to by attentive flight attendants dressed in those "glamorous stunning" uniforms onboard as part of their new "upgraded" service , I'm afraid this little promotion fails to make the cut.

Posted by Holly at 12:25 PM | Permalink | Comments (0)

SOMEWHERE OVER THE PACIFIC OCEAN -- I don't really have a lot to say in this post (so hopefully Holly won't delete it while I'm sleeping in the almost-flat business seat), but I just wanted to say "Hello" from onboard ANA flight 2 as we fly from Tokyo to Washington Dulles.

I'm here onboard the Boeing 777-300ER enjoying the after-lunch chocolate and cognac while a very, very energetic toddler bounces back and forth, around, and between the first class cabin curtain.

ANA's new style business class is quite amazing. Business travel definitely still has life.

While waiting in ANA's lounge, I saw quite a variety of big Boeing metal. 747s, 777s, and 767s from ANA, JAL, Northwest, Lufthansa, Asiana, Korean, Singapore, Austrian (OK, actually that was an Airbus), American, and others... Very interesting assortment.

Posted by Jonathan at 12:32 AM | Permalink | Comments (1)

From MarketWatch:

"Two former auditors of Boeing have alleged that parts used to assemble the Boeing 737NG between 1994 and 2002 were made with parts the airline knew were defective, the U.K. television news channel Sky News reported Monday.

Former auditors Taylor Smith and Jeannine Prewitt told the news station that Boeing accepted defective parts from Ducommun, a Californian supplier, and installed them even though they knew them to be faulty and potentially dangerous, the report said. The components are crucial to the safety of an aircraft's fuselages, the report added.

The auditors making the allegations were demoted and dismissed, the report said, and filed a lawsuit in 2005 under whistleblower laws, where evidential hearings haven't taken place. Boeing said the auditors' case didn't have merit and said the airplane maker has a multi-tiered control process to maintain quality and safety."

Posted by Holly at 3:57 PM | Permalink | Comments (0)

Last week Steve Lott in Aviation Daily wrote about the mounting financial problems plaguing yet-to-fly Virgin America. The airline revealed last Wednesday that it has been forced to raise another $53 million in a disclosure to the DOT. This is in addition to the original $177 million raised more than a year ago that was supposed to be adequate for the start-up airline.

In addition to mounting start-up costs, and escalating legal fees, the airline continues to take new Airbus aircraft deliveries. According to Steve's article, the airline is now sitting on eight aircraft -- six Airbus A320s and two A319s.

But the airline remains much like the now dearly departed dodo. Flightless.

The airline filed its latest reply to concerns voiced by competitors to the DOT just last week, but there's no question that now new questions will certainly be raised as to the nature and the origination of the additional cash infusion.

Meanwhile -- while the airline has picked up some expensive legal eagle help of late, in an attempt to help the airline fight the "foreign ownership" issue, the airline has also begun to lay off some employees.

In Steve's article the airline was quoted as saying that it may start to look for leasing opportunities for its now non-flying fleet.

As we've said from the beginning on this one, I've not been impressed by much with this effort. Not by the money the airline has spent, not with the way upper management is structured, not with stories I've heard concerning aircraft decisions, and just why they were made, not with what little has been disclosed about how Virgin America would be that much better than alternatives already in the air, and certainly not with the attitude the airline's management has taken from the start with almost everyone -- which has been -- we're going to do this -- screw you.

Or as one longtime airline observer and consultant said Monday, "My negativity on Virgin is all about the top leadership. Reid is arrogant, he played the SFO card poorly (rich area to launch a company, but hey, he lives there), he played the DOT card poorly and should have anticipated all the ownership questions, he raised expectations too early (see the many proclamations about starting soon), he hired Stacy Geagan for PR (who's hated by the media) when you desperately need positive PR to sell your case to DOT, he built a headquarters like the Taj Mahal, took planes too early, pressured DOT too stupidly, and they're treating suppliers like crap."

Meanwhile, as I wrote in this week's PBB, the administration has now backed off its former "hell-bent" desire to go ahead with the DOT rule change concerning foreign ownership. It was rumored that the DOT was going to enact the change before the end of August, in an attempt to prevent Congress from derailing the change before Congress' actions could take effect in October.

But as a result of the "foiled terror plot" in the U.K., the DOT has now said it will "wait" and proceed more slowly with the intended changes.

This will not only delay a new "Open Skies" agreement with the EU, but I think it clearly is going to continue to make an eventual DOT certification of Virgin that much more protracted. Meanwhile that high-priced list of expenses just continues to add up.

Oh, and one last tidbit. I think maybe there was one fact the high-powered PR machine for Virgin has been negligent on.

Today I found out the airline has been awarded its IATA code.

The code? VX.

Nice.

VX, as in nerve gas.

Think I would have passed on this one and asked for another one.

Posted by Holly at 1:08 PM | Permalink | Comments (1)

TOKYO -- Columnist Lucy Kellaway suggests in her Monday column in the Financial Times (subscription required) that business travel should end. Why?

It is tiring. It is disorientating. It takes forever to get to the airport. Aircraft are horrible. You eat too much because you are bored. Your feet swell up. You get jet lag. You do not see your family. Then when you do see them again they are cross with you because they think you have been having a fun time and should now pull your weight. You are shattered and see no reason why you should pull your weight at all.

Business hotels are beastly with their dark wood panels, their overheated, over-airconditionitioned rooms with ugly curtains and windows that do not open. In them you feel lonely an alienated.

I could go on, but I'm getting bored reading this all again. Lucy does not present a strong argument against business travel, and never feels it necessary to give a perspective on how an end to business travel would affect the airline industry.

Instead, her "sensible alternative" to business travel is essentially using video conferencing. Yeah, surprise! But wait, there's more. Instead of just going to the video conference room and talking to whoever it is in Los Angeles, Tokyo, London, or Hong Kong, you actually first spend "three hours, seven hours, 13 hours, or whatever" in a room that simulates flying.

These virtual flights would be idea for the businessperson who can only seem to get away from the office and get any actual work done while flying, says Kellaway. Once they land, and exit the virtual plane, they go do their video conference, and maybe stay at a local hotel too before coming back, uh, home on another virtual flight.

Just think about it, "The savings in costs would be prodigious, as would the saving in air fuel. There would be no jet lag, no flight delays, and no chance of being blown up in mid-air."

Lucy, I agree that business travel is not a lot of fun, but I don't think many executives really feel that the day spent flying is really all that productive. Video conferencing is going to cut down on the number of business trips, but it's not going to replace them. People still need to meet in person and there's usually only one way to do that over long distances... flying.

Business travel is here to stay.

Posted by Jonathan at 4:20 AM | Permalink | Comments (0)

TOKYO -- It looks like I will have one more chance to use Connexion by Boeing before the company permanently shuts off the service when I fly back home next week.

On my flight to Japan, having the Connexion service was great and I used it extensively to chat with friends, family, and coworkers, surf the Web, and send e-mail messages. It was well worth the $26.95 for the 14-hour flight.

Now Boeing has announced they will take a $320 million charge through the third and fourth quarters of 2006 as they allow for "orderly phase out of the Connexion by Boeing service."

The company expects to benefit by 15 cents per share starting in 2007 after killing Connexion.

No word on what will happen to the substantial infrastructure, including orbiting satellites that the company built for Connexion.

Posted by Jonathan at 2:17 AM | Permalink | Comments (0)

The PlaneBusiness Banter issue for this week is now posted.

Posted by Holly at 8:01 PM | Permalink | Comments (0)

Okay folks, I'm writing today, so I can't get into this too much right now, but here's the gist of U.S. Bankruptcy Judge Alan Gropper's decision concerning Northwest Airlines' request for an injunction against the AFA.

No. Nada. Zip.

The AFA's right to strike has been upheld, as Gropper has denied a request from Northwest for an injunction that would have prevented the Northwest flight attendants from striking.

Posted by Holly at 12:27 PM | Permalink | Comments (0)

Bruce Schneier is an internationally renowned security technologist and author. Described by The Economist as a "security guru," Schneier is best known as a refreshingly candid and lucid security critic and commentator. He is also the founder and CTO of Counterpane Internet Security, Inc. The guy knows his stuff.

Too bad he's not head of the Department of Homeland Security.

Here's his take on the latest airline security issues, "Focus on Terrorists, Not Tactics," which appeared as an Op-Ed piece in the Minneapolis Star-Tribune Sunday.

As he says:

"Security measures that require us to guess correctly don't work, because invariably we will guess wrong. It's not security, it's security theater: measures designed to make us feel safer but not actually safer.

Airport security is the last line of defense, and not a very good one at that. Sure, it'll catch the sloppy and the stupid -- and that's a good enough reason not to do away with it entirely -- but it won't catch a well-planned plot. We can't keep weapons out of prisons; we can't possibly keep them off airplanes."

Amen.

Posted by Holly at 8:15 PM | Permalink | Comments (0)

Just as I figured.

Thanks to Eric Olesen, who did a little online dumpster diving of his own online this afternoon -- the list has been found.

As I suspected, the "101 Ways to Save Money" that Northwest included in their materials to laid-off employees? Came right off the web. The list was apparently originally distributed by various consumer credit counseling services. But the interesting thing? Apparently even they must have decided some of the things on the list were a little out of line, because Eric says he could only find the list in old cached pages.

Old outdated web pages. I guess that's what Northwest was referring to when they said the information had come from a "third party vendor."

Hey guys -- you're busted! You are guilty of dumpster diving online!

Eric tells me there are a number of versions floating around of this patronizing piece of drivel, but this one sounds pretty close to the one that Northwest felt compelled to include in their employee materials.

Happy reading. The entire list is included below.

BTW -- thank you to Eric, who confesses he is a "cheap bastard." As a result, he knows the "saving money" territory quite well.

101 Ways to Save Money

1. Set your thermostat to 64 and turn it down to 60 at night.

2. Use the phone book instead of directory assistance.

3. Use coupons at the grocery store.

4. Carpool.

5. Ask for generic prescriptions instead of brand name.

6. Do your own nails.

7. Rent out a room or garage.

8. Replace 100-watt bulbs with 60-watt bulbs.

9. Make long distance calls at night and on weekends, instead of mid-day, mid-week.

10. Throw pocket change in a jar and take it to the bank when it’s full.

11. Always grocery shop with a list.

12. Buy spare parts for your car at the junkyard.

13. Go to museums on free days.

14. Quit smoking.

15. Get hand-me-down clothes and toys for your kids from family and friends.

16. Meet friends for coffee instead of dinner.

17. Request to get interest on the security deposit for your apartment.

18. Take a five-minute shower.

19. Write letters instead of calling.

20. Brown bag your lunch.

21. Make your own baby food.

22. Use public transportation.

23. Drop duplicate medical insurance.

24. Buy old furniture at yard sales and refinish it yourself.

25. Apply for scholarships and financial aid.

26. Exercise for free - walk, jog, bike, or get exercise videos from the library.

27. Form a baby-sitting cooperative with friends and neighbors.

28. Buy your clothes off season.

29. Go to a matinee.

30. Share housing with a friend or family member.

31. Hang clothes out to dry.

32. Do not use your calling card.

33. Volunteer two hours a month for reduced cost food through the Share Program.

34. Change the oil in your car yourself regularly.

35. Get pre-approval from your medical insurance company before undergoing any procedures or tests.

36. Buy “no frills” vitamins.

37. Take a date for a walk along the beach or in the woods.

38. Make cards and gifts for friends.

39. Shop in thrift stores.

40. Have the water company do an audit so you are not charged sewage fees for water used in your garden.

41. Refinance your mortgage.

42. Grocery shop on double coupon days.

43. Trade down your car for a less expensive, lower maintenance one.

44. Convert your cash value life insurance to term.

45. Shop around for eyeglasses.

46. Don’t be shy about pulling something you like out of the trash.

47. Recycle.

48. Move to a less expensive place to live.

49. Use low flush toilets or water saving devices in the tank.

50. Drop unneeded telephone services like call forwarding or caller ID.

51. Buy fruits and vegetables in season.

52. Avoid using your ATM card at machines that charge a fee.

53. Bicycle to work.

54. Shop around for auto insurance discounts for multiple drivers, seniors, good driving records, etc.

55. Ask your doctor for samples of prescriptions.

56. Borrow a dress for a big night out, or go to a consignment shop.

57. When you buy a home, negotiate the sales price and closing costs.

58. Turn the hot water heater down and wrap it with insulation.

59. Never grocery shop hungry.

60. If your income is low, file for Earned Income Credit on your taxes.

61. Shop around for prescriptions including mail order companies (AARP 800-456-2277).

62. If you pay for childcare, make use of the dependent care tax credit or your employer’s dependent care flexible spending account.

63. Buy, sell, and trade clothes at consignment shops.

64. Shop around for the lowest banking fees.

65. Caulk windows and doors.

66. Iron your own shirts.

67. Plan your weekly food menu before shopping.

68. Buy a good used car instead of a new model car.

69. Purchase all of your insurance from the same company to get a discount.

70. Cut your cable television down to basic.

71. Go to an optometrist for routine vision tests or to change an eyeglass prescription.

72. Buy pre-owned toys and children’s books at garage sales.

73. Have potluck dinners with friends and family instead of going out.

74. Use the library for books, videotapes, and music.

75. Inspect clothing carefully before purchasing it.

76. Don’t use your dishwasher dry cycle; open the door and let them air dry all night.

77. At the grocery store, comparison shop by looking at the unit price.

78. Make your own coffee.

79. Use old newspapers for cat litter.

80. Shop at discount clothing stores.

81. Skip annual full mouth X-rays unless there is a problem; the ADA recommends X-rays every 3 years.

82. Water your garden at night or early in the morning.

83. Shop around for long distance rates.

84. Hand wash instead of dry cleaning.

85. Grow your own vegetables and herbs.

86. Shop around for auto financing.

87. Donate time instead of money to religious organizations and charities.

88. If you are leaving a room for more than five minutes, turn off the light.

89. Shop at auctions or pawnshops for jewelry and antiques.

90. Keep your car properly tuned to cut down on gas usage.

91. Request lower interest rates from your creditors.

92. Trade in old books, records, and CDs at book and record exchanges.

93. Pay bills the day they arrive; many credit card companies charge interest based on your average daily balance.

94. Buy software at computer fairs.

95. Search the internet for freebies.

96. Compost to make your own fertilizer.

97. If your car has very little value, you probably only need liability insurance.

98. Cut the kids hair yourself.

99. Increase your insurance deductible.

100. Buy in bulk food warehouses.

101. If your income is low, contact utility companies about reduced rates.

Posted by Holly at 7:22 PM | Permalink | Comments (0)

Fortunately, readers seem to like the concept of BuzzBombs.

Unfortunately Northwest Airlines keeps doing things that warrant an award.

This week, by overwhelming popular demand (measured very scientifically ..... your emails on the subject have clogged up my email box), we once again have to award the brain trust at Northwest Airlines a coveted PlaneBuzz BuzzBomb award.

And just what did Northwest do this time to merit such an honor?

It appears the airline wrote and distributed a little 165 page booklet to employees last week. The booklets were sent to 60 ground workers facing layoffs in Bozeman, Montana, and Austin, TX. Included in that booklet were two pages of "Money-Saving Tips."

Those tips were also posted on the airline's employee website.

The two pages of tips were entitled, "101 Ways to Save Money." Included were such intelligent suggestions as “Brown bag your lunch,” and “Always grocery shop with a list.”

But it also included ideas such as “Don’t be shy about pulling something you like out of the trash,” and “Take a date for a walk along the beach or in the woods.”

Now first of all, if someone is about to be laid off, I doubt they have to worry about "brown-bagging" their lunch.

And if there is no paycheck, I would think shopping for groceries becomes a bit more difficult as well. With or without a list.

But clearly the suggestion that has caused the greatest outcry was the one that employees should, in effect, become dumpster divers.

Northwest's excuse?

The material was provided by a "third-party vendor."

I wonder if they actually paid for this stuff, or if some lackey just pulled it off some website somewhere.

“Regrettably, this list, which included some insensitive material, was inadvertently published in this resource guide without being reviewed by Northwest management,” the company said in a statement.

Sorry guys, but that's just not good enough.

To accompany this particular BuzzBomb, we offer this inspirational graphic. We suggest Northwest have it enlarged and printed by the thousands. They could adorn the walls not only at the company's headquarters, but each employee lounge as well.

Posted by Holly at 1:18 PM | Permalink | Comments (2)

Oh, I couldn't help myself. In between reading subscriber notes detailing continued inconsistent TSA treatment at domestic airports, (not to mention a couple that also mentioned weirdness in-flight with flight attendants refusing to give cans of coke to passengers saying it was now "prohibited,") what did my eyes read this morning, but this tidbit. Not that we weren't already aware of the fact. But it just served to start the day off on the, er, wrong foot.

And I quote from Leslie Miller of the Associated Press,

"X-ray machines that screen airline passengers' shoes cannot detect explosives, according to a Homeland Security Department report on aviation screening.

Findings from the report, obtained by The Associated Press, did not stop the Transportation Security Administration from announcing Sunday that all airline passengers must remove their shoes and run them through X-ray machines before boarding commercial aircraft.

The shoe-scanning requirement was ordered as the government fine-tunes new security procedures since British police last week broke up a terrorist plot to assemble and detonate bombs aboard as many as 10 airliners crossing the Atlantic Ocean from Britain to the United States.

Among the new procedures are a ban on liquids and gels in airline passenger cabins, more hand searches of carryon luggage, and random double screening of passengers at boarding gates.

On Sunday, the TSA made it mandatory for shoes to be run through X-ray machines as passengers go through metal detectors. They were begun in late 2001, after the arrest of Richard Reid aboard a trans-Atlantic flight when he tried to ignite an explosive device hidden in his shoe. The shoe scans have been optional for several years.

In its April 2005 report, "Systems Engineering Study of Civil Aviation Security - Phase I," the Homeland Security Department concluded that images on X-ray machines don't provide the information necessary to detect explosives."

I'm shaking my head. I might actually be forced to get another cup of coffee. Or maybe a valium would be better. At least I'm not screaming... yet.

Meanwhile for those of you who have a trip to Heathrow in your future, good luck. But other than that admonition, as of today, a "small" carry-on bag can be taken onboard flights out of Heathrow, but the size of that bag is barely big enough to squeeze in a 17-inch MacBook Pro inside. Much less the iPod, the headphones, a good book to read, and all the rest.

But at least there's been some "give" in the onboard limitations that had previously been in effect for those flying in and out of Her Majesty's Palace of Planes. Along with that second-tier place of planes, Gatwick.

Posted by Holly at 9:22 AM | Permalink | Comments (1)

I know. This has nothing to do with airplanes. Then again, we all need to broaden the discussion. If not, we'd be limited to depressing topics.

I don't know about you, but I've about had enough of Daimler-Chrysler's Dr. Z. In fact, I've had too much.

This campaign is not only annoying, it's just downright stupid. And apparently not very successful if Chrysler's sales figures for July are any indication.

Frankly I think it also picks away at the previously enviable Mercedes-Benz reputation. Oh, I get it. Chrysler wants you to think you're really buying a Mercedes when you buy that Pacifica.

But the problem is -- what does that mean a Mercedes owner is getting these days?

Please. Someone. Help make our airwaves more enjoyable. Give this guy the boot.

Posted by Holly at 10:02 PM | Permalink | Comments (1)

There were some changes made to the TSA banned list of items that you are allowed to carry onboard today. Why mascara is now on the list when it wasn't before is beyond me. But anyway, you can read the modifications for yourself.

Although I'm sure you can find better things to do with your time.

Then again, if you are a Mac user using Safari as your internet browser, forget trying to access the TSA website. Apparently updating the list of banned items onboard was not the only thing the techno-nerds did at TSA in the last few days. There is apparently some code on those pages that Safari chokes on. When I try to access the site using Safari, the page chokes and then Safari eventually quits.

Thanks guys.

I did find that Firefox worked.

Reminds me of last year when I tried to register with FEMA after the storm that began with "K," and when calls to the agency when unanswered for hours at a time. You could register online, according to news reports. Yes, you could register online -- but only if you 1) had a PC 2) had XP installed and 3) had the latest version of Internet Explorer on there as well.

Really bright thinking guys. Especially when those at Red Cross shelters were oftentimes using donated computers which were not the latest and greatest -- thus making it impossible for those there to register people with FEMA.

So for those of you with Macs using Safari, you'll just have to look elsewhere to get caught up on the latest list of contraband at the TSA site. Or use Firefox.

Then again for those of you who are lucky enough to have one of the new Intel-chipped Macs that can run Windows or OSX, have at it.

Meanwhile, while security lines continued to snake through an airport near you here in the U.S., things at London's Heathrow airport were once again a mess today. Reports said that some passengers were forced to wait as long as seven hours, simply to check in and go through screening. 68 flights were cancelled out of Heathrow, while 27 were cancelled out of Gatwick.

Posted by Holly at 9:35 PM | Permalink | Comments (0)

For those of you who missed it -- we have no hot news to report from bankruptcy court tonight concerning the situation between the flight attendants and Northwest Airlines.

Friday AFA said that because of present "security concerns," the flight attendant union had set a new deadline -- 9:01 p.m., CDT, August 25.

Meanwhile, according to the National Mediation Board, who checked in with both sides today, there are currently no plans for any talks between the two sides scheduled.

As for Judge Gropper? He did not rule Monday on the airline's request to block any work action by the union.

Posted by Holly at 9:01 PM | Permalink | Comments (0)

In the "News We Know You Can't Live Without" category tonight (and we all need some diversion these days), the Korea Times announced today that Asiana Airlines has chosen a new model for their advertising campaigns.

And I quote,

Asiana Airlines has chosen a new model to represent Korea’s second largest air carrier _ Park Chae-kyung.
After screening hundreds of models, talents and actresses for six months, the airliner announced its final call on Park. Park is a recent graduate of the Seoul Institute of the Arts’ Film Department and is relatively new as she has not yet started her career in the entertainment world.

Asiana Airlines chose the 19-year-old talent as her image closely matches the direction the company is trying to head toward _ to emerge as a fresh world-class carrier with high-quality service for all passengers in the world. Asiana Airlines is known to choose fresh people with talent including Lee Boyoung and Han Ga-in, who both moved on to become well-known actresses in Korea.

Posted by Holly at 8:43 PM | Permalink | Comments (0)

Re: our post Friday in regard to Delta's expansion out of LAX. Here's the official press release.

Posted by Holly at 1:59 PM | Permalink | Comments (0)

A funny thing happened today as I was rewriting and editing this week's PBB. A note came in from a reader asking me if I had heard any of the online chatter concerning a build-up by Delta Air Lines out of LAX.

No, I hadn't, since I'd had my head in my, er, computer keyboard pretty much nonstop all day. (The last week of Acute Airlines Earnings Euphoria, thank god.)

Well, guess what?

The new routes were included in Lehman Brothers' capacity report this morning, and this afternoon the additions to the tapes were confirmed.

Seems like Delta decided to just dump the new routes with no fanfare whatsoever. But they are in there.

According to Lehman,

"Delta added a number of Los Angeles markets this week, which given the tentative nature of schedules bears watching, in our opinion. Effective in December, Delta adds service to Las Vegas (twice daily) as well as international service to Guatemala City, Le Paz (Mexico) and Liberia (Costa Rica). Further, Delta added a number of markets in January and beyond, including twice daily service from Los Angeles to Oakland, San Francisco, San Jose and Sacramento as well as a number of Latin markets. Current schedules for February 2007 and beyond show Delta scheduling an average of 60 daily departures to 32 destinations, including 18 domestic destinations."

I'm not sure what my response here is. Maybe "wonderment" would be a good choice. "Shock" would be a bit too strong. "Perplexed" could work.

Posted by Holly at 4:00 PM | Permalink | Comments (2)

This week's issue is now up and ready to be read.

Posted by Holly at 2:52 PM | Permalink | Comments (0)

TOKYO -- At least one U.S. domestic airline, Alaska Airlines (and corporate sibling Horizon), is advising passengers to just check all bags and avoid extra hassle at the security checkpoints.

Checkpoints?

Yep.

The TSA announced that random screenings at the gate will start today for all flights, not just those headed to Great Britain. The move harkens back to the post-Sept. 11, 2001 "random" security screenings that passengers endured at the gate before boarding flights.

"We recognize that many of our customers prefer to carry their luggage onboard," said Steve Jarvis, Alaska Airlines' vice president of sales and customer experience in a press release issued late Thursday night by the airline. "However, we also are striving to minimize flight delays. We plan to maintain our scheduled departure times as much as possible. Eliminating carry-ons by checking all baggage will help expedite the security process for all passengers and reduce the likelihood of missed flights."

Meanwhile, the prohibition of all carry-on bags continues for travelers departing airports in the United Kingdom.

During a press conference Friday, the transportation minister confirmed that the emergency regulations on carry-on bags would continue until the threat had passed.

I don't envy anyone stuck in cattle class without a laptop, iPod, PSP, or even a book or magazine for six or eight hours.

Since yesterday, I've read a number of online posts asking for information on rugged laptop cases that can go in the hold and keep the computer safe.

What's next?

My planned return to the U.S. is a week from Saturday. I can't imagine 14 hours in the air with just the ANA in-seat TV entertainment system to keep me occupied if I was forced to check my MacBook Pro and iPod and Nintendo DS Lite and...

It also makes me wonder if the current heightened security will accelerate the death knells of Connexion by Boeing.

Posted by Jonathan at 2:09 AM | Permalink | Comments (1)

Okay, now that we've all had time to digest the news from today and, as we hear now, there are even more changes that are going to be made in U.S. airport security procedures tomorrow by the Transportation Security Administration -- just a couple of comments.

One, if Scotland Yard did indeed foil a grand plot to blow up a series of aircraft, then that's great. And that is what they should be doing. Bravo to them.

Two, so now we have the details of yet another way to blow up an airplane. Not surprisingly, now millions of people have to be treated as potential terrorists with the latest TSA restrictions concerning any "liquids" being brought onboard.

But British Airways continues to ban any electronic equipment onboard as well. As least as of tonight. Will TSA officials on this side of the pond move towards a similar ban?

So where is all of this going to end?

Not happily I'm afraid.

And yes, "afraid" is the key word.

For five years we have had to live with a TSA that is about as effective as FEMA. And just about as cost-effective.

As I wrote earlier this year in PlaneBusiness Banter, given the then-current screening processes the TSA had in place, did any of us really feel that much safer?

Not really. Reading email feedback after that column it was clear most of our subscribers felt the same way. The most effective change that had been made to affect onboard security? The securing of cockpit doors. Oh, and the fact there might be a few guns on the airplane -- in any number of hands.

Meanwhile, there is the TSA. A whole lot of money and a whole lot of bureaucracy, but not much else. Oh, and then there are those color codes from Homeland Security. Yes, those are so very helpful.

What concerns me now is that the TSA and the powers behind TSA are going to go "overboard" as they attempt to "protect" the U.S. airline passenger. Why? We all know why. Because the TSA wants people to think it's doing something to protect us. This is, after all, the war on terror. It's important to look like the TSA is being effective.

But if the TSA is truly effective, then why isn't all checked baggage screened for bombs?

Why is it that cargo that is shipped on our passenger aircraft is not screened?

But oh no, that $22 bottle of Clinique some woman had to ditch this morning before she boarded her flight is important. It could contain peroxide.

Bottomline my concern is, as it usually is, for the financial health and well-being of a very fragile industry -- ours. The airline industry.

We saw how the industry was hit twice after the attacks of 9/11. First by the event itself, and then by the effects of long security lines, ever-changing TSA mandates at airports, inadequate screening areas, and more.

We'll see how the next couple of weeks pan out.

But yes, I'm concerned.

Not about a potential attack. But more about the TSA imposing such heavy-handed "security" mandates that the airline industry finds itself impacted quite negatively as passengers decide, for any number of reasons, that perhaps that next trip is not necessary after all.

Like I say, we'll see.

Posted by Holly at 9:15 PM | Permalink | Comments (0)

According to the latest TSA posting on their website, here is the latest official TSA position on electronic items. Note: this is only for U.S. domestic flights.

Question: Media have also reported that laptops, cell phones and electronic items are no longer allowed. Is that true?

Answer: No. TSA continues to allow laptop computers, cell phones and other electronic items.

Unfortunately the good news stops when it comes to ANY liquid substance. Deodorant, make-up, liquid medicine, eye drops, hair spray, you name it. It also sounds like conditions and restrictions continue to be different at different airports.

Here's s snippet of a post from yet another flight attendant this morning:

"The entire SFO operation was a zoo to put it mildly. No liquids allowed on the plane period. Then they began re-searching bags at the podium because they discovered some passengers came in from the Islands and were connecting. TSA kept changing their policies as they were learning of them and it was at first no liquids period, then the policy extended to aerosol cans, then next came aerosol cans were allowed then the shoes off policy went into effect and everything kept changing. All this happened in the 15 minutes I was in line to get screened (I went to the front of the line)."

Posted by Holly at 1:00 PM | Permalink | Comments (0)

Just a note to PlaneBusiness Banter subscribers. Look for this week's issue to be posted Friday. As you can imagine, an almost completed issue that was slated for posting this afternoon now has more than a couple of pages that need to be updated and rewritten, given this morning's news and its ramifications. I tend to believe that the most current news is probably of more importance to our subscribers than static earnings call reviews and analysis at this point in time. But oh, they're in there as well!

So -- we're in the midst of rearranging some furniture here at the Worldwide Headquarters.

In the meantime, we'll continue to update everyone here in PlaneBuzz during the day today with any new developments concerning airlines and the people who fly them and fly on them.

Posted by Holly at 12:29 PM | Permalink | Comments (0)

eWeek.com reports this morning,

"The U.S. Transportation Security Administration is only restricting liquids and gels on all flights originating in the United States, a spokesperson told eWEEK Aug. 10. But that doesn't mean you can take electronic devices on all flights as carry-on luggage.

As a result of the change in the terrorist threat level to Code Red, or Severe, on flights to the United States from the United Kingdom, significant restrictions exist on those flights, including, in some cases, elimination of all electronics of any kind from carry-on luggage.

In a statement released early in the morning on Aug. 10, British Airways said it will not allow electronics of any kind in carry-on luggage on its flights. This includes, according to the statement, iPods, laptop computers, cell phones, BlackBerrys, and even electronic car keys and key fobs. eWEEK has also been told by several sources that screeners at some airports in the United States are similarly restricting electronics. However, a spokesperson at the TSA has not been able to confirm this.

U.S. airlines contacted by eWEEK, including United Air Lines, American Airlines and Continental Airlines, say that they are not placing any such restrictions on domestic flights, but said they are following the lead of transportation officials elsewhere."

Well, I guess this means I'm not flying anywhere anytime soon, as I am not checking my laptop in checked baggage. Not even my cell phone. No way. And we all know there are two reasons for this. One, laptops are not made to be thrown around in baggage holds, and two, they are just way too tempting for TSA employees with sticky fingers.

Clearly the big problem with reports such as these coming out this morning? There does not seem to be consistency in what is being asked of passengers at different airports.

Posted by Holly at 11:33 AM | Permalink | Comments (1)

A check of the stocks we track at PlaneBusiness shows that as of 11:55 AM EDT, the sector seems to be faring quite well -- all things considered. Most airline stocks that did track downward at the opening bell have moved upward since that time, and, as you can see, we have a fair mix of gains and losses. Not unlike any other ordinary day.

However I do note that shares of American, Continental, and United -- all mentioned in the potential terrorist plot that was apparently broken up this morning by British Authorities -- are all down as of this posting.

Posted by Holly at 11:02 AM | Permalink | Comments (0)

A PlaneBusiness Banter subscriber who is a flight attendant with a major airline checks in with his account of how things are going this morning:

Subject: It sucks at the airport this AM

Unbelievable!!

There is no distinction between domestic and international, everyone is being told to toss ANY iquid/gel, including toothpaste, perfume/cologne, contact solution, hair products.

There is no distinction between passengers and crewmembers. All are being told to take off their shoes and toss their items. What happened to being a "certified", "background checked" crewmember????

On the positive side, I have a turn line this month, meaning I was only carrying a backpack anyway, as I'm home every day.

Just ugly, and I don't feel a bit safer, in a tube full of pissed off passengers.

Have a great day!!!!

Oh, yes, you too!

Posted by Holly at 10:42 AM | Permalink | Comments (0)

Gary Chase, analyst with Lehman Brothers issued a note this morning on the news out of London. Gary gives us his take on possible effects the news could have on particular airline stocks in the short-term. Chase said in this note, "Some flights have been canceled as a result of these threats, but the larger issue is the threat of demand destruction in the near-term. Below, we review what we believe to be the relevant facts of this situation and offer our quick takeaways."

"The quick facts:

* In overall exposure to European revenue, Continental is the largest,
followed by Delta, Northwest, and American Airlines

* Of the European exposure, American is most exposed to the UK,
followed by Continental, United, and US Airways

* Most exposed to the UK on a percentage of revenue basis is American Airlines
(6%), followed by Continental (6%), and United" (4%)

Our Takeaways:

* This is obviously an incredibly unfortunate situation with
unpredictable ramifications. However, in the past, these types of
circumstances have created buying opportunities in the group, and that
is our bias for today.

* We believe it entirely plausible that these events will have
some measurable near-term impact on demand, but we are almost through
the peak season for European travel and we do not expect an enduring
impact on demand. Therefore, we do not expect a long-term impact from
these events on airline fundamentals or valuation."

Photo Credit: CNN.com

Posted by Holly at 9:37 AM | Permalink | Comments (0)

TOKYO -- Suspects in the terror plot uncovered in the United Kingdom were planning on destroying multiple flights using liquid explosives and electronic devices, Michael Chertoff, secretary of the Dept. of Homeland Security, confirmed in a press conference.

Sources have told CNN and other news outlets that electronic detonators may have been disguised as automobile remote control key fobs.

Chertoff also said that additional sky marshals are being sent to the U.K. to provide additional protection on flights between the U.K. and United States.

Interesting advice from TSA Administrator Kip Hawley:

1. "De-clutter your bag" so that TSA screeners have a clear view through the X-ray machine.
2. "Enjoy your trip."

Update: Chertoff confirmed U.S.-flagged carriers were the target in the late-stage planning by the suspects, but did not name specific airlines.

Posted by Jonathan at 7:05 AM | Permalink | Comments (0)

TOKYO -- Counter-terrorism officials in Washington, D.C. have told The Associated Press that the bombing plot uncovered by British authorities targeted three U.S. airlines, American Airlines, United Airlines, and Continental Airlines.

Update: British Home Secretary John Reid said that the loss of life would have been "unprecedented" had the suspects carried out their attacks and destroyed the targeted flights. According to Reid, 21 people are now in custody in Britain.

Posted by Jonathan at 5:38 AM | Permalink | Comments (0)

TOKYO -- The United States Department of Homeland Security has raised the terrorism threat level to red, its highest level, for all flights departing airports in the United Kingdom and bound for the U.S., the AP reports.

The remainder of commercial aviation has been elevated to the orange, or "high" risk, level.

A statement from DHS includes additional information on prohibited items.

"Due to the nature of the threat revealed by this investigation, we are prohibiting any liquids, including beverages, hair gels, and lotions from being carried on the airplane. This determination will be constantly evaluated and updated when circumstances warrant. These changes will take effect at 4:00 AM local time across the country."

The change follows the uncovering of a bomb plot in the United Kingdom.

DHS plans an 8 AM EDT press conference to discuss the threat level change. In the mean time, the press release indicates there is no imminent threat domestically.

"Currently, there is no indication, however, of plotting within the United States. We believe that these arrests have significantly disrupted the threat, but we cannot be sure that the threat has been entirely eliminated or the plot completely thwarted."

Posted by Jonathan at 4:01 AM | Permalink | Comments (0)

TOKYO -- Authorities in the United Kingdom have arrested 18 and airlines there have banned carry-on luggage following a bomb plot that would have targeted U.S.-bound flights from the U.K., Reuters and The Associated Press are reporting.

"A major terrorist plot to allegedly blow up aircraft in mid-flight has been disrupted in a joint, pre-planned, intelligence-led operation by the Metropolitan Police anti-terrorist branch and security services," a London police spokesman said, according to Reuters.

In an press release, British Airways cited an official advisory:

"British Airways, acting on instruction from the UK Government, wishes to advise passengers that no items of hand baggage can be carried on board any aircraft departing any UK airport.

"The UK Government has advised that this instruction will apply to all airlines operating from UK airports."

No information has been posted to the web sites of Ryanair or bmi British Midland. An advisory on EasyJet's site gives additional details.

"[W]ith immediate effect NO hand-baggage will be allowed on aircraft. Only certain essential items will be allowed into the cabin - provided they are contained in transparent plastic bags, which will be issued at airports. All other items are required to be packed into hold baggage and checked-in on arrival at the airport."

British Airways specifically mentions all battery-operated devices, noting that cell phones and laptop computers are not allowed in the cabin.

Virgin Atlantic posted a list of permitted items that could be carried on board, but noting that no items may be carried in a passenger's pockets.

There was no information released on how long the ban would last.

Update: A spokesman from United Airlines says the U.S. airline is complying with the order and has restricted passengers from carrying any bags on board flights leaving the U.K.

Other European airlines are canceling flights to the U.K. in the wake of the bomb plot, including Air France and Spain's Iberia. Both airlines cited the lengthy delays at London Heathrow as reasons for their cancellations of flights to the airport through 10 AM GMT. (Reports from Reuters.)

The BBC reports that Heathrow has been closed to all incoming flights not already in the air at the request of airport operator BAA. Passengers at Manchester and Glasgow airports are also experiencing lengthy delays.

Posted by Jonathan at 1:35 AM | Permalink | Comments (0)

TOKYO -- Today I present the first installment of "Creating Boredom Around Our Airline" -- not as exciting sounding as CHAOS, but it still has a fun ring to it -- OK, we'll work on a better name. Anyway, this could be a regular feature here on PlaneBuzz that highlights the boring and silly press releases that airlines are apt to distribute to the masses.

Our first inductee is the American Airlines Credit Union, who proudly informs us of its newest branch opening in (drum roll, please) Hurst, Texas, though a PR Newswire/NewsCom photo release.

Pictured are, left to right: John Mcintyre, Member-Owner, AA Credit Union, Teresa Meyer, Hurst Branch manager, AA Credit Union, John Tippets, president and CEO, AA Credit Union, Kenny Marchant, U.S. Congressman, and Kent Ash, regional director, AA Credit Union. (Photo courtesy of PRNewsFoto/American Airlines Federal Credit Union.)

We are now awaiting the press release letting us know that the Southwest Airlines' Credit Union is going to open a competing location, but that regulators will only let them make loans to customers from the states immediately surrounding Texas.

On second thought, maybe this isn't such a great idea for a regular feature, we might have to rename PlaneBuzz to PlaneZzzz.

I think I'm going to need another cup of coffee...

If you find a press release worthy of mention here, please send Jonathan an e-mail at jonathan at planebusiness dot com.

Posted by Jonathan at 8:33 PM | Permalink | Comments (1)

Talk about going down to the wire.

Today both sides showed up in U.S. Bankruptcy Judge Allan Gropper's courtroom to present their sides of the "A strike is legal, strike is not legal" argument.

The verdict?

Come back Monday. Yes, that is Monday, as in August 14. One day before the AFA says it will begin CHAOS, or targeted work stoppages, against the airline in protest over the contract Northwest recently imposed on the group.

The judge listened to arguments presented by Northwest Airlines and attorneys representing the airline's flight attendants, and correctly assessed his situation in our opinion, as he said, "The question before me today is a fairly narrow one of the intersection between the bankruptcy code and the Railway Labor Act."

Exactly right.

Posted by Holly at 6:25 PM | Permalink | Comments (0)

Sources tell us today that Delta Air Lines has asked Republic Holdings to backstop for competitor Mesa Airlines -- because of Mesa's inability to provide aircraft as provided for in its contract with Delta for part of its expanded JFK service.

Under an agreement between Delta and Mesa, Mesa, under its Freedom Airlines operation, is slated to fly 12 37-seat De Havilland Dash 8 aircraft in support of Delta's expanding hub operations out of JFK.

But this week it was announced that Delta was replacing Dash-8 aircraft with Beech 1900s on several Delta Connection flights that are slated to begin next week. Additional new service is slated to begin in September.

Yeah. That's right. Beech 1900s. Goes right along with Delta's latest advertising image of a "sanctuary in the sky" doesn't it?

Today we were told by sources that the problem appears to be that Mesa apparently leased Dash 8 100s from a Canadian lessor. Fine, but one big problem. The aircraft did not have GPWS kits installed.

We understand that Mesa now has one aircraft equipped with the necessary GPWS, but that availability of additional GPWS systems for the aircraft is nil. None to be had. Maybe for months.

As a result, Mesa apparently has only one Dash 8 and 2 1900s available to start the new Delta Connection service out of JFK next week.

Not surprisingly, we understand the folks at Delta are none too happy about this situation. They are so unhappy, in fact, that we understand they have contacted Republic Holdings about providing aircraft.

As one of our sources told us, Republic would certainly have no problem getting 10-12 Embraer 135s up and running to provide feed -- if that is what Delta chooses to do. Tuesday, Republic folks were told, according to one source, "to ramp up."

Not sure how all of this is going to work out -- but it's clear Delta does not want to run its new highly-touted JFK service utilizing Beech 1900s.

As for Mesa, it's clearly not a good week.

This news comes the same week load factors for its new "go!" Hawaiian operation came in lower than what the company had previously indicated. Load factor for July was 73.9%. Not surprisingly the airline promptly announced yet another fare sale for its Hawaiian operation after the traffic numbers were released -- with select $29 one-way fares through the end of the year on sale through the end of this week.

Finally, Mesa posted poor numbers in the DOT Air Travel Consumer Report for June that was released this week. Not only did the airline post a 5% cancellation rate in June, it also posted the most complaints of any airline. On-time performance for the airline was 66.7%.

Posted by Holly at 5:31 PM | Permalink | Comments (0)

Just a reminder.

Tomorrow is a big day for Northwest Airlines and its flight attendants. Not to mention airline executives and labor union leaders. And airline industry history buffs like us.

Wednesday, attorneys for Northwest will be in U.S. Bankruptcy Judge Allan Gropper's courtroom -- attempting to convince the judge to block a potential strike or strike actions by the Association of Flight Attendants/CWA, which represents the flight attendants.

For its part, AFA has said publicly this week that it is prepared to continued to fight -- whether the judge awards the airline an injunction or not.

This is not an easy one to bet on folks.

Both sides have way too much at stake here to walk away. And I can't see the airline backing down on its concessions it just imposed on the flight attendant group. That wouldn't sit well with other employee groups.

But the fact of the matter is, at this point in time, if AFA wants to continue to fight, there's not much the airline can do about it. Meanwhile, progress towards the airline's exit from bankruptcy is on hold.

Keep your antennas up and your ears open. Even if the Judge agrees with the airline and rules to block strike action by AFA, AFA has said it will appeal the ruling.

Meanwhile, as far as chit-chattin' across the negotiation table is concerned, as far as we can tell, ain't nobody been chattin' from either side since the flight attendants voted down the last TA.

Posted by Holly at 7:34 PM | Permalink | Comments (0)

Yes, while those of us who tend to hang out here have an incurable (and some might say unhealthy) fascination with airlines -- we also have to be fairly computer literate to get here in the first place.

Taking that into consideration, I couldn't help but pass along this tidbit about AOL.

It seems that, for whatever reason, AOL this weekend posted to a publicly available website a list of every user who accessed the web during a 3-month period and every website they visited.

Think about this. This gives spammers a list of every actively used AOL address. It also reveals to friends, employers, etc. the private web browsing habits of every active AOL member.

You can catch the details here at Michael Arrington's TechCrunch blog.

Interestingly, as of this posting, the mainstream press seems to be too preoccupied with AOL's financial problems and its move to a "free" access option for those with broadband access to pay any attention to the company's blatant invasion of user's privacy.

Posted by Holly at 1:02 PM | Permalink | Comments (0)

BP reported Sunday that it has had to shut down half of its Alaska North Slope production because of what the company termed, "severe corrosion" in its main Prudhoe Bay oil pipeline.

Can't argue with that decision. I'd much rather them fix the problem than have a horrible oil spill in that beautiful part of the world.

However, this shutdown to see just how bad the "corrosion" problem is does not come without an immediate side-effect -- a healthy uptick in the price of crude oil. Not only could BP not give a timetable as to how long it would take to completely shut down the pipeline Monday morning, it could not give an estimate as to how long the pipeline could be out of service, as repairs are made. The severity of the problem has not yet been determined.

As of 1 p.m. Monday, crude futures were trading at about $76.65, almost $2 above where they closed on Friday.

Oh joy.

Not a surprise, given that the shutdown will cut U.S. oil production by some 400,000 barrels a day, or about 8% of total U.S. oil production.

Reading comments that BP issued Monday morning, it doesn't sound like this is going to be a "quick-fix" deal. In fact, the company already has another pipeline down -- the result of an oil spill in March. That spill revealed corrosion, resulting in the company having to put in a bypass on that line.

As we noted in last week's PBB, the problem the last few weeks for the things with wings -- and those who have to pay the fuel bills for them -- has not been so much the price of crude as it has been an increase in the crack spread -- a situation that results in the price of jet fuel rising higher in proportion to the increase in the price of crude.

Posted by Holly at 12:09 PM | Permalink | Comments (0)

Late Thursday, finally, the U.S. Senate passed a 900 plus page pension reform bill. I have very mixed feelings about some of the aspects of this bill -- speaking on a grander scale -- but clearly the main focus for those in the airline industry was what the bill contained that affected those in the airline industry.

To be more specific, four airlines in particular.

As late as Thursday afternoon, American and Continental were still fighting to get the same 17 year payback period as Northwest and Delta were eligible for under the proposed legislation. But it never happened.

Essentially American and Continental can now stretch out their pension payments out over 10 years, while bankrupt Northwest and Delta get a total of 17 years to do so. However, if either Continental or American wants to freeze their remaining employee pensions -- before Dec. 31, 2007 -- they too can then qualify for the 17 year time period to play catch-up on the frozen plans.

While Northwest and Delta are clearly the big winners in this one -- you can't really say that American and Continental are hurting. American in particular was looking at at least $1 billion or more in pension payments due in 2007, without the bill having been passed.

But, according to Trebor Banstetter, who wrote Saturday in the Ft. Worth Star-Telegram, Sen. Kay Bailey Hutchinson (R-Tex) says she hopes to amend the bill that was passed last week, after Congress returns from its August hiatus, so that both American and Continental get the same 17-year pay-back time extension.

We'll see. Makes for a nice sound bite for the Senator who represents two Texas-based airlines, but my suspicion is that if Congress reopens this can of worms, it could be worse than if the can is just left on the shelf. As is.

Posted by Holly at 12:02 PM | Permalink | Comments (0)

This week's issue of PlaneBusiness Banter is now posted.

Posted by Holly at 8:57 PM | Permalink | Comments (0)

Wheeeeee. We're suffering from AAEE -- "Acute Airline Earnings Euphoria."

Well, maybe not.

For PBB subscribers, look for this week's issue to be posted on-time, later today. I'll post a note here when it is ready for your perusal.

Posted by Holly at 1:58 PM | Permalink | Comments (0)

Grab your gloves and pick your sides.

If you are Continental or American, get over here. If you are Northwest or Delta, you go in that corner over there.

As the Senate continues to fight over the details in a pension bill that Senate Majority Leader Bill Frist, (R-Tenn) has said has to be passed this week before he and his colleagues leave to frolic in the August heat -- friction between the four airlines appears to be taking center stage.

As of last week it appeared that changes had been made to the bill that affected the "catch-up" periods for airlines to fund their pension plans. At least the special provisions for the airline industry were still intact, even though the new proposed periods had been reduced.

But this week, when it became clear that the Senate was now leaning towards a deal that would give Delta and Northwest 17 years to fully fund their pensions, while American and Continental, who are NOT in bankruptcy protection, would be given only 10 years to do so -- well, you could say that is when the gloves came off.

Not surprisingly, Continental and American think the new proposed regulations are discriminatory. To them.

This latest free-for-all comes just weeks after both Delta and particularly Northwest imported hundreds of airline employees to Washington, in an attempt to arm-twist members of both the House and Senate to retain special exemptions for airlines in bills that were then being hashed out.

It's Thursday. The clock is ticking.

Meanwhile, cries for caution in pushing through the legislation before Friday continued to mount from many fronts this week. An editorial in Thursday's Tennessean, for instance, called for the Senate not to rush to judgment.

Considering the bill in front of them is some 900 pages long, the editorial advised, "Senate Majority Leader Bill Frist is pushing for a Senate vote this week. While the House-passed bill includes many necessary elements, it is 900 pages long, and few senators have been able to read the fine print. As desperate as the nation is for pension reform, senators shouldn't support until they are familiar with all its provisions."

Posted by Holly at 11:27 AM | Permalink | Comments (1)

Okay, if you were surprised by this move, raise your hand.

Just as I thought.

Late Tuesday Northwest Airlines asked U.S. Bankruptcy Judge Allan Gropper to prevent any kind of strike or concerted job action against the airline by the Association of Flight Attendants.

AFA has already notified the airline that it intends to strike, or engage in sporadic targeted strikes against the airline, as soon as 10 p.m EDT., Aug. 15. This move came not too long after Northwest terminated the flight attendants' current contract Tuesday and imposed new terms that go back to the defeated Mar. 1 tentative agreement between the airline and the PFAA.

We're into unknown legal waters here folks.

No one is really sure if a strike against the airline would be legal of not. While the Railway Labor Act permits a walkout by airline workers after mediation fails to resolve a dispute -- we've never actually seen this particular situation in the airline industry before.

AFA contends workers cannot be forced to work under terms they did not agree to. Northwest says it has a right to impose those terms, and that any job action by the flight attendants is forbidden by the Railway Labor Act.

Next Wednesday Judge Gropper will hear arguments from both sides on the airline's request.

I'd love to be in that courtroom.

Posted by Holly at 2:49 PM | Permalink | Comments (0)

From AvWeb this AM:

"A controversial new requirement for landing distance safety margins is drawing fire from the National Air Transportation Association (NATA), which claims the proposal should be shelved. The FAA was spurred to action in the wake of a Dec. 8, 2005, accident at Chicago Midway in which a Southwest Airlines 737-700 skidded off a wet runway and onto a highway beyond, running into a car and killing a 6-year-old boy. In an audit afterwards, the FAA discovered nearly half of the operators they asked had no policies for assessing sufficient landing-distance margins in various conditions. In instances where manufacturer’s data was being used, the feds still had a problem, saying that wet and contaminated landing distances were figured using certification data based on dry and smooth services ... so the numbers are not real-world.

Under the new requirement that will take effect on Oct. 1, an operator would not be allowed to land without 15 percent more runway available for the actual landing distance given current weather conditions and use of available equipment such as thrust reversers and spoilers. NATA has a problem that a study of aircraft operated under Part 121 is being applied Parts 125, 135 and 91K as well. "A blanket approach to these varying operations is not acceptable."

NATA is particularly incensed with the FAA's definition of time of arrival, calling it a trap that will lead to second-guessing by the feds and possible enforcement action taken against pilots, saying, "If the meteorological conditions change when the aircraft is 500 feet above ground level, must the pilot then mathematically recalculate landing distance at this critical phase of flight?" Though NATA is asking the FAA to use normal rulemaking channels before implementing such a big change, the feds say it is a done deal and that operators should be ready with new procedures by Sept. 1."

Posted by Holly at 11:35 AM | Permalink | Comments (0)

Late Tuesday Ralph Hunter, head of the Allied Pilots Association (APA represents the pilots at American Airlines) issued yet another one of his thoughtful takes on the situation that now exists between the pilots at the airline and management.

His message: shared sacrifice is dead.

No surprise, given recent actions by management at American Airlines -- not the least of which was the recent article in the New York Times that we cited here last week. Throw in some salary increases, more stock options for management team members, but more importantly -- an attitude from management now that basically says, "Screw you" to its unions (said with a strong sense of entitlement) and well, you get the message.

I've always been a fan of Ralph's measured approach -- unlike the usual heated rhetoric and threats we tend to hear from other union leaders. Re: the recent predictable public rantings from both the America West pilot union leadership and US Airways' pilot leadership in regard to negotiations between both groups and US Airways -- after US Airways posted a nice profit for the second quarter.

Having watched, and well, at one time, having been involved in, the relationship between APA and American closely for more than 13 years -- I understand that writing "shared sacrifice is dead," was extremely hard for Ralph. Ralph and his team have worked tirelessly to try and work with the airline to better the previous negative relationship that had existed at the airline between management and labor.

A lot of other people on both sides here have also invested hours, days, weeks, months and years working to improve the previous situation. A situation that was all confrontational -- all the time.

Those who are not familiar with the history here will be quick to say, "Oh, the pilots just want more money now that the airline is making money." Or, "This is just your typical, 'Unions don't think management deserves raises' problem."

But this meltdown goes much deeper, as I have discussed in PBB for months. For whatever reason, the management bonus payment issue that went to arbitration earlier this spring became a "personal" issue for CEO Gerard Arpey. If that sounds familiar, it should. It is exactly what happened to his mentor, Robert Crandall.

Someone on the American side, or with the Overland Group, should have stepped in at that point this spring and put the relationship between management and labor back on track. Forced the issue.

But obviously there is no one in the AMR "inner circle" with the balls to do so. In fact, my suspicion is that there was pressure -- but it was pushing Arpey in the opposite direction.

This is not a good omen going forward for the airline, as Arpey has now effectively blown any positive credibility he had succeeded in building up with labor over the last three years.

What a waste.

As a result, Ralph had no choice in writing what he did on Tuesday. And that is a damn shame.

A round of the PlaneBusiness kazoo dirge for the death of shared sacrifice.

Posted by Holly at 11:23 AM | Permalink | Comments (2)