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Volume 6, Issue 50, December 17, 2008 |
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As the worldwide economy looks toward an uncertain 2009, industries are prepared for the worst. Predications for airlines are varied, but many believe the industry is better prepared than most.
Most U.S. airlines are predicting 2008 losses between $4 and $6 billion. However, the summer fuel crisis has prepared the industry to weather the storm ahead. The extreme adjustments implemented during the fuel crisis helped airlines survive as the economy declined. At this point, domestic carriers do not appear to be at great risk for bankruptcies and will not need to ask for any federal bailouts.
As oil prices rose, airlines made numerous cuts and also added passenger fees, charging for checked bags, drinks and more. The new fees are bringing in hundreds of millions of dollars and helping the airlines survive the recession. Passengers will continue to experience fees in 2009. On the bright side, however, many airlines are drastically reducing ticket prices in an effort to lure passengers, so travelers will be able to find good deals in the upcoming year.
Continental Airlines recently announced that advance domestic bookings have increased 2-3 percent from last year. Bookings for Latin America flights are also ahead.
A recent Destination Analysts’ The State of American Traveler survey revealed that domestic travelers are remaining optimistic about future leisure travel and spending. In July 2008, 28.8 percent of surveyed travelers reported they were planning less travel, but the new survey reveals only 21.2 percent of travelers plan on cutting out leisure travel in 2009. One-third of survey respondents also reported travel is a high/very high priority in the upcoming year and 65.6 percent of travelers will actively look for deals and bargains when booking travel in the next 12 months.
While the airlines may not experience clear skies ahead, the industry is poised to make it through the New Year relatively unscathed. 
Domestic carriers made a number of announcements this week. Virgin America announced plans to launch twice-daily service between Boston (BOS) and San Francisco (SFO) and three weekly flights between Boston (BOS) and Los Angeles (LAX). Service will begin Feb. 12, 2009. Continental Airlines has added an AVOD entertainment system to the economy cabin of all its B757-200s. The system, featuring personal video screens and a large selection of movies, TV and music, is available on trans-Atlantic flights. United Airlines announced plans to sell “fast-track” access through airport security and boarding lines. For an extra $25, economy passengers may join premium passengers in designated lines at select airports. AirTran Airways announced it will be the first airline to secure space at Branson Airport, the first
privately financed and operated commercial airline in the United States. Service between Branson (BKG) and Atlanta (ATL) will begin in May. And in airline alliance news, Brussels Airlines will join Star Alliance.
A three-judge panel in the U.S. Court of Appeals has blocked the plan to auction landing slots at the three New York airports. The plan was strongly opposed by airlines and the Port Authority of New York and New Jersey, both of which stated the plan was illegal and would raise costs for passengers. The plan was an attempt to decrease flight delays at LaGuardia (LGA), Kennedy (JFK) and Newark (EWR). It would have required airlines to surrender up to 10 percent of their airport slots over the next five years. The court granted a stay that suspends all plans for auctions pending a court review.
Protestors overran Stansted Airport (STN) last week. More than 50 Plane Stupid protestors cut through airport fencing and chained themselves to runway railings. The airport was forced to close, but was able to reopen five hours after the protest. The activists were protesting plans for a second airport runway. Tens of thousands of passengers were stranded or delayed and 57 activists were arrested. Plane Stupid activists announced that Heathrow (LHR), currently considering plans for a third runway, will be their next target.
The Department of Transportation instituted a new rule that raises the monetary reimbursement limit for lost luggage. Beginning Dec. 22, airlines are liable for up to $3,300 for lost luggage, a $300 increase from the previous limit. The new limit is based on Consumer Price Index inflation. This is the first periodic increase since February 2007. The new rule applies only to domestic service. Airlines can set peak payment for lost luggage as high as they prefer, but most domestic carriers limit their payout to the DOT-enforced peak amount.
The American Society of Travel Agents is urging President-elect Barack Obama to reconsider the current travel restrictions between the United States and Cuba. In a letter dated Dec. 4, ASTA and other business organizations called on the Obama administration to make immediate changes to U.S. policy, including removal of the travel ban. During the 2008 campaign, Obama announced his support of some policy changes, including suspending restrictions on family visits and care packages.
Newark (EWR) to Toronto (YTZ)
888 619 8622
www.flyporter.com
If there is one thing to be said for Porter Airlines it is that they offer an incredibly convenient service. I arrived at Newark with plenty of time and was checked in and through security in less than 10 minutes. When the check-in agent handed me my boarding pass, I commented that I couldn’t believe I was done already!
Our flight was not full and we were able to sit wherever we pleased. The planes are strictly economy class, but the seats are rather comfortable with movable armrests. As I had the row all to myself, I lifted the armrest and made myself comfortable. We boarded and took off on time.
Another nice perk on Porter? They serve complimentary meals and drinks, even though the flight between Newark and Toronto is very short. The meal service included chicken pate, crackers, cheese and a small dessert. Vegetarian and kosher options were also available. The service was efficient and the flight was pleasant.
Porter is the only airline that flies into Toronto City Centre (YTZ), which is incredibly convenient. I was through customs in a few minutes and checked luggage arrived surprisingly quickly. I was supposed to be picked up outside the airport doors, without having to take the quick (less than a minute) ferry ride to the parking lot. However, my ride was nowhere to be found and the Porter staff was more than happy to call and help me locate my driver. I hopped on the ferry, which runs every 15 minutes, and was on my way, thanks to the helpful, courtesy Porter crew.
My return trip to Newark was a bit bumpier — flight delays followed by a canceled flight due to mechanical problems. Once again, the accommodating Porter staff offered constant updates and were very helpful.
Score: ••••• Kimberly Krol
A number of great deals are available at Occidental Hotels & Resorts. At the Royal Hideaway Playacar in Mexico, couples looking for some romance this holiday season can enjoy two special packages. Book by Dec. 21 to enjoy a five- to seven-night stay, valid for travel through Jan. 26, 2009, with a $500 air credit and a night of romance including chilled champagne, chocolate covered strawberries and a couple’s massage. If you book a three- or four-night stay, you will receive a $300 air credit and the same amenities. For a last-minute holiday special, plan a visit to Occidental Grand Cozumel, with no minimum stay requirement, or Occidental Grand Xcaret, three night minimum stay, for a rate of $150 per night, Dec. 24 – 31. For more information on other great deals, visit the Web site.
SAA Vacations just enhanced the luxury of its Royal Treatment package. The 13-day African vacation, which includes accommodations at top resorts and sightseeing packages, has added a private wine tour at Bouchard Findlayson and a one-hour spa treatment to the itinerary. The value of the package is $6,999. Book before Jan. 31, 2009 and the package includes a hot-air balloon ride (a $400 value) over a game reserve — an excellent way to view the wildlife. Call 800 722 9675 or book online.
In celebration of its expanded marketing alliance with Alaska Airlines, Delta Air Lines is offering a special bonus for SkyMiles members. The new agreement between the airlines provides additional route access and increase connections. All SkyMiles members who enroll online, buy a ticket and fly through Feb. 28, 2009 receive 1,000 bonus miles for each ticket with a Delta and Alaska/Horizon Air flight within the same itinerary. Visit the Web site to register.
New York ’s Algonquin Hotel is offering holiday shoppers a spectacular package. Through Dec. 31, the Shopping Spectacular package includes two-night accommodations, a $50 spa gift certificate (per person) for Le Cachet Day Spa, two tickets for a NYC shopping tour with Shop Gotham, coupons for department stores and a complimentary gift-wrapping service. The Algonquin will also arrange personal shoppers, shipping, theater tickets and dining arrangements upon request. Rates start at $699. Call 866 406 5341 or email for reservations.
Starwood Preferred Guest has made booking flights and hotels a cash-free process. New programs have made SPG more appealing than ever. Starpoints are redeemable at more than 890 worldwide hotels and resorts. Gift-giving is a cinch when you redeem Starpoints for gift certificates and more. SPG Moments allows members to participate in an online auction for extraordinary getaways, like Hollywood movie premieres and more. For a complete list of moments, visit the Web site. SPG Flights, launched in September, allows members to redeem points to cover the entire cost of flights, including taxes and booking fees. Visit the Web site to enroll.
