Monthly Archives: June 2008

United Airlines Annual Meeting: Why Is It Being Held in Woodland Hills, CA?

United

The UAL Corp. annual meeting is tomorrow, and I still haven’t been able to get a viable answer as to why the airline is holding it in Woodland Hills, CA.

Anyone have the answer?

Other than the fact that it almost guarantees that fewer unhappy employees are going to show up?

I mean, maybe American should take a clue here. Next year they could hold their annual meeting in Bangor, Maine.

One other note. We’ve been getting notes on and off for the last week from folks asking us if we have heard that Glenn Tilton, Pete McDonald, and Jake Brace are going to be leaving the company, effective with the annual meeting.

Dream on.

The UAL Corp. board is a Glenn Tilton hand-picked board, so I do not see this happening.

The second safety demo seemed better than the first…

SAN FRANCISCO — In this day and age of continuous airline service, wage, staff, and in-flight cutbacks, plus a myriad of new fees, it’s sometimes hard to remember that the industry is driven by humans.
We see the faces of the gate agents, baggage handlers, pilots, and flight attendants every day. But we also might forget that they’re humans too. On Sunday night, June 8, I saw some of the brightest shining examples of airline employees doing everything they could to keep a plane full of passengers from bouncing off the walls in a riot.
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I was one of those passengers on Midwest Airlines flight 421, scheduled to depart Milwaukee at 7:45 PM for Washington Reagan National Airport. I’ll save you the suspense and spill the secret. We didn’t get to DCA until 2 AM Eastern, having spent an extra three hours sitting in the plane, on the ground in Milwaukee, as waves of severe weather blew through. The radar image here shows the first line of storms about to hit Milwaukee, as we boarded and pushed back from the gate.
After finally making it back to DCA, I had another hurdle to face, a transcon trip to San Francisco for a conference, on a flight that left at 6 AM. Yep, four hours after landing, I was back in the air on a Delta flight to Atlanta where I connected to SFO. After being awake for close to 36 hours, I recounted my experience to Holly in an e-mail:

On the bright-side, we had a great crew on Midwest last night. They did everything they could to make it bearable. We had taxied out just before the storms went though, hoping to takeoff before the weather hit… but we got to the threshold of the runway and the wind really started to blow. So we parked out there for a couple hours. Brenda and Vicki [the flight attendants] served cups of water and warmed up the chocolate chip cookies for us.
Finally we taxied back to the gate, and they made sure we got replenished with more jugs of water and a fresh batch of cookies for later in the flight. Vicki searched the terminal for any snacks they could serve us during the delay. The pilots and dispatchers worked for another couple hours getting a new route and more fuel loaded before we finally left. They were all amazing, and I can only imagine how other crews would have been after that much time in the plane dealing with us. “Nasty” and “unpleasant” are adjectives one might expect utilized to describe what might have been.
Brenda, the lead flight attendant, came on the PA after we landed and apologized and then thanked us for being the most patient plane full of passengers they’d ever had. In fact, I was in row 2 and there wasn’t one single complaint or unhappy passenger during the entire delay. Several had questions about possible rebooking in the morning and one woman did get off when we got back to the gate, but nobody was impatient or rude… even though we definitely could have made it out before the weather if we’d pushed on time (we were about 10 minutes late out of the gate).

Brenda even managed to make many of us laugh and smile when she explained that they had to do the safety demo a second time, just in case we forgot in the prior three hours. (Of course, it’s also an FAA requirement, she went on to clarify.)
In the end, it wasn’t an experience I would want to replay anytime soon. Or ever. Or even wish on my worst enemies. But it’s also nice to recount the tale and hope that Vicki, Brenda, the flight crew, and ground staff of Midwest 421 get some recognition for their amazing work Sunday night and early Monday morning.
Thank you.

Wings On the Road: ATME Conference

Lasvegassign

I’m back on the road again today. I’m off to Las Vegas where I will be speaking about the abysmal economic status of the U.S. airline industry, and the abysmal state of the economy as a whole, tomorrow at the Association of Travel Management Executives Travel Marketing Conference.

I thought about showing up in a dark robe with a scythe in my hand (you know, my attempt to be the Grim Reaper) but alas, I doubt Southwest Airlines would let me take the  required implement (the scythe) on the plane.

Hope to meet some of you there. We can commiserate in tandem.

My thanks to Henry Harteveldt, VP and Principal Analyst at Forrester Research, who invited me to participate in the conference this year.

I don’t know. With Henry and me in the same enclosed space, things could get pretty wild, as neither of us are known for our shy and retiring ways.

I’m looking forward to it.

First Mesa, Now Pinnacle; Delta Lowers the Boom On Another Regional Carrier

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This morning Delta Air Lines announced that it intends to cancel its regional flying contract with Pinnacle Airlines, effective July 31.

Delta contends that Pinnacle did not meet minimum arrival-time performance requirements for a period since flights began late last year.

Pinnacle entered into a new capacity purchase agreement with Delta in April 2007 to operate 16 CRJ-900 aircraft as a Delta Connection carrier and began operations under the agreement in December. Pinnacle has currently taken delivery of nine of the 16 CRJ-900 aircraft on order.

For its part, Pinnacle says that there are many factors that are “out of the airline’s control” when it comes to on-time performance. The operational schedule created by Delta is a key factor affecting on-time performance, Pinnacle CEO Phil Trenary told reporters today.

Under the capacity purchase agreement, Delta is required to collaborate with Pinnacle to create a mutually acceptable operating schedule. According to Trenary, Delta has created Pinnacle’s operational schedule since the beginning of operations in December 2007.

“We are extremely surprised and disappointed that Delta is attempting to take this drastic and improper action,” Trenary said today.

Not surprisingly, the news has not been kind to shares of Pinnacle stock, which are, as of this posting, down 28% on the day, trading at around 4.30.

Ticker: (NYSE:DAL); (Nasdaq:PNCL); (Nasdaq:MESA)

Is the APA Fantasizing or is American Airlines in Denial?

Story

You know — I figured that APA-created Top Ten List from yesterday was going to be problematic. it was too good.

As I said, the boys and girls on the communications committee of APA contend that American CEO Gerard Arpey flew on a corporate jet to Puerto Rico last week. And hence, the Top Ten List we posted here yesterday.

However, I got a note this morning from an American Airlines’ employee reader who said Arpey never went. Then I sent a note to one of my APA acquaintances, who told me he did. Then I wander over and read Terry Maxon’s blog today at the Dallas Morning News and he says that American is also telling him that Gerard never went.

Somebody is not telling the truth.

Anyone want to make bets on what the real story is?

Anyway, I still think the Top Ten list was funny. But I bet the underlying premise was bogus.

Maybe the truth will unequivocally sift to the top of the slag heap of airline lore by next week.

Ticker: (NYSE:AMR)

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Oil Prices Surge Off the Charts To New Record High Price –$138.75

Oil-Prices

Ah, I’m not sure you want to look at the price of oil. Much less jet fuel.

But, I guess, alas, there is no choice.

After oil futures posted their biggest one-day surge in history yesterday — $5.49 — oil prices closed up almost $11 Friday, ending trading at $138.75/barrel after European Central Bank President Jean-Claude Trichet suggested the bank could raise interest rates. This news caused the  euro to climb against the dollar.

As all good readers of PlaneBuzz know, when interest rates rise in Europe, or fall in the U.S., the dollar tends to fall against the euro. The falling dollar then also makes oil that much cheaper for buyers everywhere except the U.S.

The current record high of $135.09 was hit on May 22.

Prices were also pushed today by comments made by analyst Ole Slorer of Morgan Stanley, who wrote in a note that he expects a “short-term spike” in oil prices — the result of rising demands in Asia.

I’ll be back in a bit with an update on jet fuel prices.

I’d Prefer to Do My Own Scratching, Thank You Very Much

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From today’s ATA daily missive,

‘”We’re just scratching the surface of what we can do with whole-body imaging,” said James Schear, TSA security director at Baltimore-Washington International Airport.’

Nah, I don’t like the sound of this. At all. Haven’t. And no, I’m sure the scanners don’t automatically attach a little strategic piece of whatever that is in just the right place as shown in this demonstration film either.

This is no different than a virtual strip search, and I can’t believe that we are going to allow the government to do this — to us — as a requirement for simply boarding an aircraft.

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