An Open Letter to All Airline Customers:

Source: http://www.wtrg.com/daily/crudeoilprice.html

Well, while I'm sure many of you have already received this, Northwest is running a little behind. This letter started hitting the web yesterday, but just arrived in my inbox this morning.

The airline transport associate (ATA) and many of the major airlines' CEO have composed a little letter to bring airline oil struggles to the forefront of the public's mind.

Obviously, oil is something that I have been closely monitoring. It seems that about 50% of economists believe that this is a speculation bubble as ATA suggests, and the other 50% are saying "Get used to it," and believe that supply and demand is the driving force behind the astronomical growth in crude oil futures.

As this letter indicates, whatever the case may be, it’s a scary economic time for airlines and Americans, alike.

_________________________

An Open letter to All Airline Customers:

Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now. Visit www.StopOilSpeculationNow.com.

For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers.

Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

The nation needs to pull together to reform the oil markets and solve this growing problem. We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com.

Robert FornaroChairman, President and CEOAirTran Airways

Bill AyerChairman, President and CEOAlaska Airlines, Inc.

Gerard J. Arpey Chairman, President and CEOAmerican Airlines, Inc.

Lawrence W. KellnerChairman and CEOContinental Airlines, Inc.

Richard Anderson CEODelta Air Lines, Inc.

Mark B. DunkerleyPresident and CEOHawaiian Airlines, Inc.

Dave BargerCEOJetBlue Airways Corporation

Timothy E. HoeksemaChairman, President and CEOMidwest Airlines

Douglas M. SteenlandPresident and CEONorthwest Airlines, Inc.

Gary KellyChairman and CEOSouthwest Airlines Co.

Glenn F. TiltonChairman, President and CEOUnited Airlines, Inc.

Douglas ParkerChairman and CEOUS Airways Group, Inc.

The Real Price of Your Ticket...

Inflation splation! It's the fees that will be the demise of the free-market economy!

Yea, Ok, I'm being dramatic, but definitely check this out. Take your ticket, add applicable fees, and see what you'll really be spending--a highly handy tool for the summer travel months, with new fees popping up every day.These tables courtesy of Rick Seaney who has promised to keep the tables updated (and I will try to keep you updated here).

And You Thought We Were Done for the Day....

And another one bites and another one bites and another one bites the dust…

US Airways says “Hey!!! Me too! Me too!” and announces their new $15 per bag fee (up to two bags).

Additionally, they announced other fantastic (clearly dripping with sarcasm here) news like:

--They will be significantly cutting capacity.

--They will be cutting 1,700 jobs.

--They will be charging for in-flight beverages.

--They will be increasing buddy pass fees.

Then, following all of these announcements, there’s a big “pep talk” by CEO Doug Parker. As employees and passengers alike partake in a collective eye rolling, he states:

“All of the actions we’re announcing today, when combined with the capacity other airlines have already announced, will have a materially positive effect on the financial performance of US Airways going forward. Our team has been here before and we won’t sit by and wait for external circumstances to dictate our future. A lot of “experts” are counting us out – but like all of you, I can’t wait to prove them wrong again. As part of my commitment to achieve this goal, as well as reaffirming my belief in our company, I’ve made the decision to invest an amount equal to my 2008 salary into US Airways by buying stock in the open market at the next trading opportunity for insiders.”

Soooooo....ya. Delta says they will not be charging the fee, but I'm not so sure. Continental indicates that they will probably be charging it sooner, rather than later, and NWA has remained quiet (presumably due to the pending merger?), so I'm having a hard time believing that, if all of the other majors adopt the fee, Delta will not.

However, lets assume that they don't. Will this present a competitive advantage for Delta? Let's have a quick roundtable. Will the fee(s) affect where you buy your tickets?

Personally, I'm in the market for an international flight at the moment, and have been looking around at options, many of which require me to fly NWA part of the way, and then move carriers. American was one of these options, and I refused to fly them, choosing instead to look elsewhere, even if it meant paying more.

If Delta remains first-bag-fee free, will you forgo flying the other carriers in favor of Delta?
	Yes
	No
	It Depends (please comment below)
pollcode.com free polls

Another One Bites the Dust...

United (who coincidently or not, was also named "The Worst Airline-Ever" this week) announced this morning that it, too, will be charging for the first checked bag. The new fee will be $15 each way for each checked bag, and the fee for a third or an overweight bag will increase from $100 or $125 to $200 or $250.


::insert long, drawn-out sigh here::



I hope the oil bubble bursts, well, yesterday! Although, I'm afraid that even if it bursts today, there's no turning back from the new wave of airlines as we know them.



Welcome to your new life, fellow travelers.

Noooooooooooooooooooooooooooo!

And so it begins.

AMR Corp. just announced that it will begin charging for ALL checked luggage on all American Airlines and American Eagle flights, beginning with tickets purchased after 6/15/2008.

This is bad. bad. bad.

Besides the money issue, it's going to make life hell for those who normally carry-on only--say buh-bye to overhead bin space and hello to very cranky passengers. And while the charge doesn't affect elite passengers, surely the overhead bins will be affected, which, of course means even the "elites" will have a much less pleasurable flying experience.

BLEH!

And while we're at it...

I think this is going a little too far. I am crossing my fingers that other airlines don't follow suit, but you know how they are--if one says "Jump", the others say "How high?"


US Airways announced today that it's going to start charging a fee to reserve "Choice Seats." You may be saying, "Well, Ashley, the airlines have been doing this for a while now?" Well, not by THIS definition of "Choice Seats."


Basically, any seat in the first several rows of coach that's a window or an aisle seat will incur a fee--starting at $5 per leg. So, if you have connections, expect to pay for your seat for each and every flight.


If you're a member of US Airways' frequent flier program, Dividend Miles Preferred, you can choose (and pay for) your seat at any time after booking. If you're not a member, you can book (and pay for) your seat only after the 24 hour point before your flight.


Seriously?

http://www.usairways.com/awa/Content/FAQs/choiceseats.aspx?c=eml_dm_choiceseats_solo_00399_04162008#3

DAL+NWA=DAL

Taking a REALLY quick study break to update you in case you haven't heard the news.

As expected, Delta & Northwest officially announced their merger today.

You can view the website they have created explaining the merger here, and you can find the official announcement that WorldPerks members received below.

Of course, NWA is painting a very pretty picture for consumers about the merger, but only time will tell. As a small market consumer, I have my nervous reservations, but all we can do is wait and see.

If you have any questions regarding the merger & how it may affect you, I will try to put that handy-dandy bachelor's degree to use and answer what I am able to answer. Just leave a comment with questions. :)


*please excuse any typos/grammar errors--I meant what I said about a really quick study break. ;)
_______________________________________________

As a valued Northwest Airlines customer and WorldPerks® member, I wanted you to be among the first to hear that we have announced a merger with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America’s premier global airline which, upon closing of the merger, will be called Delta Air Lines.

By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles.

You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners like WorldPerks Visa®. And once the new Delta Air Lines emerges you can look forward to being a part of the world’s largest frequent flyer program with expanded benefits.

The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs – both Delta’s and Northwest’s – will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world’s major business centers in Asia, Latin America, Europe, Africa and around North America.

Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs – both Northwest’s and Delta’s – will be retained. In addition, building on both airlines’ proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S.

All of these positive benefits of our combination mean that we can:
-Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world’s best and most comprehensive frequent flyer program.
-Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo.
-Improve our customers’ travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins.


While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn – and retain – your preference.

As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight.

Sincerely,

Bob Soukup
Managing Director, WorldPerks

I [Heart] Food!

but, not necessarily airline food. ;)

Completely bored and wondering what you could be served on your next flight?

Check out Airline Meals.net for pictures, descriptions, and reviews of airline meals as well as menu cards for just about every airline out there. Look for a similiar route and voila!

Bon Appetit!

A Good Deal with....Northwest?

The title of this post is confusing, no?

Since you know that I live somewhere in the vicinity of Minneapolis-St.Paul, MN, and if you know anything about the airline industry at all, you know that my area is predominantly served by Northwest Airlines. In fact, it is SO predominantly served by NWA, that most people I know fly almost exclusively Northwest. While, I'll admit, at times I swear they are the worst airline on the planet (mostly due to the price gouging in their monopolistic markets due to the predatory nature of their EXTREME opposition to ANY sort of competition in their smaller markets, one of which I live in), they do occasionally have some redeeming qualities.

One of which is their World Clubs network. If you are a frequent business traveler or just have a really long layover (another common theme in my neck of the woods since they have decided to cut all flights between noon and 10 pm here--I'm not kidding...), they are actually a pretty decent value.

For a $45 day pass, an $85 60 day trial membership, or a $450 yearly pass (for you business travelers), you can secure yourself a refuge from the maddening crowds and horribly uncomfortable airport seating, as well as FREE DRINKS AND WIFI! Not a bad deal, when you think about airport drink pricing + the refuge from the chaos of the world outside. In addition, if you have a problem or get bumped from your flight, there are customer service agents with considerably shorter lines standing by.

Of course, other airlines offer similar services, but be sure to check with the airline ahead of time, as amenities (i.e. free booze) and prices vary.

Mile High, Virgin-style!

Get your minds out of the gutter!

I'm talking about the US's newest budget carrier, Virgin America. Given my aviation background, I've been following the saga surrounding Virgin getting its wings--lawsuits, domestic cabbotage, predatory airlines--all the makings of an aviation geek's soap opera!

Sir Richard Branson fought on, though, and VA has its wings!

What does this mean for you? Well, potentially a lot. Basic economics tells us that a new entrant into the market tends to drive competion, which lowers prices. Yes, please. The increased level of service provided by Virgin will likely impact the way other airlines treat you as well. Yes, sir--may I have another?. And, in the same respect, the gorgeous new equipment they're sporting promises to increase standards, as well. ::nodding profusely::. It's all-around great news for the American travelling public!

So, not only is it likely that the standards of American air service may rise in Virgin's markets and prices may go down, but it is a PIMP ride! Check it out!

Virgin has mood lighting! The lighting changes based on the time of day and is designed to promote relaxation.

What new budget carrier would be complete without in-flight entertainment! Your own personal screen includes dish network TV, 25 pay-per-view movies, 3000 mp3's for you to build your own playlist and listen too, and-check this out-an in-flight instant messaging system where you can IM anyone on board the aircraft! Your friends got seated away from you? No problem!

The first class cabin includes-get this-in chair massage systems!

Current promotions include San Francisco to NY, $149!!

http://www.virginamerica.com/

Airfare on Ebay?

We are back and CERTIFIED! :) Everything went great, and we enjoyed our mini-getaway to central Minnesota. The land of 10,000 lakes has some gorgeous (and UBER expensive) lakes--we had a blast. :)

Today's topic--airfare! Everyone loves airfare deals, right?

Ok, well, we're going to think outside the box a little--E-Bay!

Often (a simple search of your desired airline will give you multiple hits), travelers list coupons that they cannot use for sale on ebay. The picture below is a current Northwest Coupon. The current price on said coupon is $16. So, if you were buying a $400+ ticket, you would SPEND $16 and GET $100. For a couple, that's a savings of $160+!

As always, with ebay, you want to double and triple check the seller's feedback and you want to monitor expiration dates of the coupons--they all have them, so you want to make sure your travel period fits within those dates.

While you may be skeptical of this, I know several people who do this regularly, and it works like a charm! It's also usually instant because it's an e-code, so no waiting to buy the tickets is necessary. :)

I'll Take the Cheap Seats, Please....

Since my educational background is in business/aviation, it certainly seems appropriate that I would have a little something to say about watching fares...

Readers, I'd like to share with you the number 1 mistake that travellers make:


CHECKING AIRFARE.


I bet you're confused, huh? Well, let me explain a bit:


The airlines actually have a very complex pricing analysis algorithm. Since they use demand-based pricing, each and every time you hit that button to check the most recent fare, you are actually telling the airline that someone else is interested in that flight, therefore driving demand and, eventually, the price up.

Soooo...next time you're "just checking", think twice about it--you could actually be hurting your own pocketbook. ;)

(More airfare tips in future posts)