More efficient airports to help our travel…Maybe?

November 5, 2009 by Global Marine Travel. GMT

The inefficiency of airports and check in procedures has been a pet hate of mine for years, but just maybe an end is in sight.

Most of the world’s leading airport operators (80 per cent according to SITA IT trends survey) are moving towards paperless travel and intend to make passenger self-service the primary channel for check-in. 

52 per cent also rated the introduction of ‘electronic documents’ as the technology which will have the most significant impact at airports in the near future, initially driven by the adoption of bar-coded boarding passes sent directly to mobile phones – a key enabler for genuinely paperless travel.

While one problem is solved it creates other issues. Airports are also recognizing that passengers bypassing check-in counters may be faced with new bottlenecks and queues at baggage drop-off and security screening areas. As a result, airports are turning to various automation tools to track wait times at different checkpoints such as security and immigration.

Top priorities for airports to look at are 1. Passenger Processing and Services ; 2. Passenger Security 3. Airport Operations and 4. Baggage processing and management

Will we ever get all these segments to jive together just right to create a truly paperless and hassle free journey through an airport?

Air Baboo !!

September 29, 2009 by Global Marine Travel. GMT

During my recent visit to Europe to attend the Monaco show I found myself in Athens but then needing to get to Nice. None of the well know scheduled carriers had a schedule that suited my timetable and they were also very expensive. After a little more research we found an off line carrier called Air Baboo.  Air Baboo!!!, a name like that does that install confidence and security and want to make you fly on an airline named Air Baboo. I figured it was worth a shot trying this Swiss based airline and pitched up in Athens not knowing what I was getting myself into.

A bright red and white plane was waiting for us on the tarmac, it was a brand new Brazilian Embraer E190 X 3. The flight attendants and the pilot greeted each passenger and we were shown the way to our brand new leather seats each with their own satellite TV in the back of each seat. Did I mention the  flight attendants? An all female crew on my flight to Zurich, all of whom could have easily been a Victoria Secret model smartly dressed in a semi formal business suit with a bright red tie. They were friendly, authoritative and very efficient what a difference from some other low cost carriers.

We departed on time and even though our flight was short our Victoria Secret models were serving food ! A delicious Sandwich, followed by a Tiramisu washed down by a complimentary beverage service. I couldn’t believe it! I was very comfortable in the leather seat, fed and watered so to speak and feeling very safe and secure on an Air Line few of us had ever heard of.  Right before the flight ended we all got a bar of Swiss chocolate to take home with us. A memorable flight and if I get the chance I’ll definitely hop on Baboo again.  It’s great to see a carrier bring back the joy of travelling again. I got no sense of cost cutting to the bear bones and the service was great.

Give us a call at GMT and we’ll happily set you up on a flight with Air Baboo.

Qantas Increase

September 22, 2009 by Global Marine Travel. GMT

Good News for our down under crew as Qantas continues it’s fleet expansion.

Qantas’ recent delivery on September 7, 2009 of a fourth Airbus A380 has allowed its Sydney-Singapore-London services to grow from three to five per week and its Sydney-Los Angeles services to increase from three to four per week.

Qantas has ordered 20 of these Airbus super jumbos – the largest after Emirates – and expects to complete the acquisition by 2014.

The 5th and 6th A380s will arrive by year-end and will be deployed on the Sydney-London and Sydney-Los Angeles routes, which will then go daily and increase the Melbourne-Los Angeles service from two to three per week.

Next year, Qantas will take delivery of three more of these super jumbos, which will enable travellers on the Melbourne-Hongkong-London to enjoy the A380 experience. Currently, a Boeing B747 is used on the route.

For more details contact GMT www.flygmt.com

Holiday Travel deal’s

August 31, 2009 by Global Marine Travel. GMT

How long should you wait to book holiday travel plans?

It’s the eternal conundrum with airline tickets: buy now or wait in hopes that prices will go lower. Through the economic downturn, it has paid to wait—airlines have often slashed ticket prices a few weeks before departure as they faced the prospect of flying a seat empty.

Public Holidays such as Thanksgiving and Christmas are a bit trickier because, in general, demand for seats exceeds supply, and airlines know they will fill planes at peak holiday periods. So they keep prices relatively high for popular holiday travel days. Buying early means you typically pay a high price (higher than you would during non-holiday periods) and buying closer to the holidays usually means you pay even higher prices.

Airlines are cutting more capacity this year, meaning the supply of holiday seats will be tighter at year’s end. But demand is still very weak.
Now may be a good time to buy holiday tickets if you can plan that far in advance. One caveat: since 2006, airlines have offered sales in October on holiday itineraries. Of course, you may then see a great price and not be able to find it on the convenient flights you want. Waiting is a gamble.

Despite the discounting, prices will always go higher as seats sell. As the economy picks up, demand may increase faster than airlines return planes to their schedules. In other words, if you’re used to waiting for great last-minute deals, you may want to rethink.

Contact us at GMT for quotes.

WSJ

Airline losers?

August 27, 2009 by Global Marine Travel. GMT

Today’s Contents
Analysts forecast tough times for airlines this fall
DALLAS — Airlines cut fares to get more passengers on planes and salvage the summer travel season, but now their job gets harder heading into the slower fall and winter months.
The nine largest U.S. carriers lost nearly $600 million in the second quarter of this year. Bigger losses are predicted in the third and fourth quarters, and some analysts have raised the possibility of another round of bankruptcies.

America’s airlines have been in a defensive crouch for two years. They’ve cut flights and fired workers — first to absorb rising fuel prices, then to ride out the recession. But revenue is down one-fifth or more from a year ago at the four largest carriers.

Because they’ve cut costs, sold new stock and borrowed money, the airlines have plenty of cash for now. But even in good years, airlines build cash during the busy summer travel period, which ends around Labor Day in early September, to get through the slower months.

Airlines need enough cash to pay employees, buy fuel and pay other bills, including payments on the money they’ve borrowed. If cash falls too low, they can be pushed into bankruptcy protection, as happened earlier this decade with Delta, United, Northwest and US Airways.

United, US Airways and American are often mentioned as the airlines in the most precarious financial positions. They rely on business travelers who pay hundreds of dollars per ticket to sit in first-class. Many of those people are grounded or flying in cheaper coach seats due to the recession. Meanwhile fuel costs, although lower than last year’s record levels, have been rising. The spot price of jet fuel has jumped about 70% since March.

One leading analyst, JPMorgan’s Jamie Baker, estimates that by the fourth quarter, American Airlines parent AMR Corp. will burn more than $11 million a day, while United Airlines’ parent UAL Corp. will be going through $7 million a day.

As of June 30, AMR had about $2.8 billion in unrestricted cash and short-term investments, UAL had $2.6 billion, and US Airways had about $1.7 billion. If Baker is right about how much cash they’ll burn this winter, all three will have a thinner cash cushion than did the carriers who filed for bankruptcy protection in 2004 and 2005.

United and US Airways were among several airlines that made bankruptcy protection filings from 2001 through 2005. They used bankruptcy to shed debt and lower labor and pension costs.

Standard & Poor’s analyst Philip Baggaley says, however, that the two have little to gain by doing it again and would face “more risk that if they go into bankruptcy they might not come out.” That’s because they might not find the financing they would need in the current tight credit market.

In most airline bankruptcies, the carriers have kept flying and passengers hardly noticed any difference. In the worst case — liquidation — employees would lose their jobs, shareholders would lose their investments, and stranded travelers could be forced to ask their credit card company for ticket refunds.

More mergers are also a possibility. Delta and Northwest combined last year, three years after each went through bankruptcy court. The current US Airways is the product of a combination with America West. United and Continental talked but didn’t reach a deal.

Consolidation or liquidations could reduce competition, at least temporarily, leading to fewer flights on the surviving carriers.

“Who gets hurt in consolidation? The customer,” says Morningstar Inc. analyst Basili Alukos, “because prices go up. If anyone has benefited from the airlines’ misery, it’s been customers, because prices have fallen.”

Some analysts think talk of further consolidation is premature. Airlines have a knack for borrowing more money and living to fly another day.

“Undertaking a merger takes time, money, management attention and labor cooperation,” says S&P’s Baggaley. “If you’re fighting for survival, it’s risky to add that to your plate.”

The airlines say they can survive the slow season.

“We don’t think any airline will have liquidity issues this winter,” says US Airways Chief Financial Officer Derek Kerr.

There are factors working in the airlines’ favor. Vacation travelers kept planes nearly full this summer. Fees for checked bags and other items are raising hundreds of millions of dollars.

Although it’s been lumped in with United and US Airways, American parent AMR has some advantages. It has about $3.7 billion in assets to sell or mortgage. That includes planes, the American Eagle regional subsidiary and miles in its frequent-flier program.

But AMR also has $1.3 billion in debt maturities and what CFO Thomas Horton called “several hundred million dollars” in pension funding due next year.

US Airways has little left to sell or hock. CEO Doug Parker says his airline has more cash than other network carriers except Continental when restricted cash is included. “So it’s hard to accept the view that we get into trouble before others,” he says. But restricted cash comes with limits on how it’s used.

UAL could be forced to set aside noncash collateral if its cash kitty shrinks, under an agreement with a credit-card processor. CFO Kathryn Mikells says her company has modest debt payments, low capital spending and no defined-benefit pension obligations.

During the last big slump in air travel following the 2001 terror attacks, the airlines turned to Washington for help. So far the carriers say they don’t need the kind of bailout money given to banks and automakers.

Kerr, the US Airways CFO, doubts Congress would approve a bailout. “We’re not counting on that, and we’re not lobbying for it.”

USAToday/AP

________________________________________

Airlines and Their service fees

August 17, 2009 by Global Marine Travel. GMT

 

The recent decision by two airlines to back down on new charges may sound like good news for air travelers.  After an outcry from passengers, US Airways did an about-face earlier this year, ending a program that required economy-class passengers to buy water and soft drinks.  And last year, United reversed a plan to charge for food on certain transatlantic flights.  But airlines aren’t giving up.  Consider what happened to Spirit Airlines, which last year slapped a $5 “web convenience fee” each way on tickets booked online.  It withdrew the charge after passengers protested and regulators raised questions about how the fee was being disclosed.  A year later, after checking with the government to make sure it was legal, the airline revived the surcharge as a $5 “passenger usage fee” (included in taxes). Not only are fees here to stay, but they will probably go higher.

Christopher Elliott

Gender, Dates of Birth and No Nicknames

June 10, 2009 by Global Marine Travel. GMT

The Transportation Security Administration is getting ready to take over responsibility from the airlines for checking passengers’ names against terrorist watch lists, and is advising travelers to start booking airline tickets using their full name as it appears on their driver’s license or passport.

Later this summer, the agency will also begin requiring airlines to ask passengers for their birth date and gender during the ticketing process, information the carriers will then transfer to the T.S.A. The goal is to help make the watch list matching process more accurate.

But it turns out that what’s in a name is more complicated than many reservation systems are currently prepared to handle. So the airlines are telling passengers not to worry if there is no place to enter a middle name when purchasing a ticket, or no field for a date of birth.

While the T.S.A. has announced Aug. 15 as a target date for the airlines to begin asking for each passenger’s full name, gender and date of birth, and has already begun publicizing the program, called Secure Flight, the agency acknowledged that it would go into effect in phases as the airlines update their systems.

“What we’re trying to do is make the public aware that these changes are coming,” said Paul Leyh, the agency’s director for Secure Flight. “If your name is Jonathan Smith and you travel as John Smith and your license says Johnny Smith — get all those things aligned.”

The government’s aim is to streamline the process of checking travelers’ names against its watch lists — a task currently handled separately by each airline — and to collect more detailed information so passengers with names similar to those on the watch list are less likely to be mistakenly detained.

Asking for a birth date, for instance, decreases the likelihood that a child with a name close to one on the list would be subject to an additional search — one example of a false match that has led to complaints.

As part of the Secure Flight program, travelers who have gotten caught up in some type of name problem and go through the process to get their identity cleared will be assigned a “redress number” that they can then enter when booking a flight.

This number, along with the other passenger information, will be sent to the T.S.A., which will check it against terrorist watch lists and tell the airline whether the traveler is cleared to get a boarding pass, should be subject to an additional search or is not allowed to fly.

“Secure Flight is going to allow us to clear over 99 percent of passengers,” Mr. Leyh said.

For travelers who are cleared, the T.S.A. will keep passenger information on file for seven days. For those who are a potential match, it will be kept for seven years and for confirmed matches, it will be stored for 99 years.

Concerns about data storage and privacy were among the issues that held up the transfer of name-matching duties from the airlines to the government, which was mandated by Congress in 2004.

While many of those objections have been addressed by narrowing the scope of the information collected, there are still concerns about the quality of the watch list data.

“To be precise, we support the fact that the government is now trying to make its matches more accurate,” said Marc Rotenberg, executive director of the Electronic Privacy Information Center, which has been advocating for stronger privacy protections since Secure Flight’s inception.

“The problem with Secure Flight is that there’s still not adequate transparency or redress for people who are placed on the list,” Mr. Rotenberg said. “As we know from the latest report from the inspector general, the list is riddled with errors.”

The change will probably also create frustrations for people who go by different names and have to standardize the name listed on their passport, driver’s license and possibly frequent-flier accounts.

“I’ve got Francis on my passport but I’ve always gone by Frank — my state I.D. and all of my frequent-flier accounts are Frank,” said Frank Ritchotte, who handles logistics for an audio and visual equipment manufacturer and flies about 150,000 miles a year.

“Now I have to go back and change everything to Francis, which is going to be a pain,” he said.

Complicating matters, he said, “I’m a ‘Jr.’ as well. None of my documentation says ‘Jr.’ except my passport.”

Mr. Ritchotte said he heard about the coming change through his company’s travel department, but felt the information released by the T.S.A. so far had been confusing.

“There hasn’t been a clear message about what you have to do and exactly when you have to do it,” he said. “It’s another thing that’s a hassle.”

Among the concerns raised by fliers are names with hyphens, foreign characters, spaces or just initials and people who have two middle names or have not fully adopted a married name.

“Nicknames are going to be one of the bigger issues,” conceded Paul Flanigan, a spokesman for Southwest, which aims to start collecting the Secure Flight data in October.

Currently, many airlines do not offer a place to supply a middle name when booking online, but for now, the message seems to be: If we don’t ask for it, you don’t have to tell us.

“We’re telling customers, do business with us as you’ve always done,” said Kent Landers, a Delta spokesman. “When the systems are ready to accept the data, we’ll advise passengers.”

NYT

Less Leg room More Seats !!

June 4, 2009 by Global Marine Travel. GMT

If you thought legroom on commercial airlines was already cramped, get set to be squeezed some more. New Boeing 737-800s now being delivered to American Airlines have the same-size cabins as the existing 737-800s in American’s fleet. But the new planes have 12 more coach seats, pushing the total number of seats to 160. Delta Air Lines Inc. has also added 10 seats to its 737-800s, raising the total to 160. So has Continental Airlines Inc.

The seat squeeze shows how airlines are aggressively cramming more seats into jets. The trend has been going on for years, but has picked up momentum of late as airlines take food galleys out of airplanes since they’ve stopped serving free meals. Some carriers also are replacing seats with new ones made with slimmer frames and cushions, creating additional rows. Slimmer seats free up space. But instead of giving it to customers, airlines are using it to try to make their fleets more profitable, taking all those inches and adding more seats to jets.

A few extra passengers on each trip can spell the difference for tight-margin airlines between losing money and making money. In American’s case, some customers will lose some legroom. The airline says it standardized the “seat pitch” — the distance from a point on one seat to the same point on the seat in the next row — at 31 inches throughout the coach cabin. Some rows in the old configuration had as much as 33 inches of seat pitch, and American’s Web site says the old configuration averaged 32 inches. Exit rows still have more legroom in the new layout — about the same 39-40 inches as in the old configuration. But “bulkhead” seats in the first row of the coach cabin won’t be as roomy as frequent fliers are accustomed to.

A spokesman for American says there’s a “slight reduction” in legroom for the first row of the economy section. AMR Corp.’s American says the room for the two added coach rows was freed up by several changes besides just newly designed seats with thinner seatbacks squeezed closer together. Two service-cart storage cabinets behind the last row of seats were eliminated because, well, there’s not as much food and beverage service onboard flights these days. The space between the two cabins was shrunk using a new contoured divider. Despite the squeeze, American believes the new seats won’t feel more crowded to travelers. The seat bottoms pivot forward a bit like movie-theater seats to give the person behind you more knee room when reclining. “The new seat design does not make you feel cramped,” said spokesman Charles Wilson. “It has everything to do with a combination of both the way the seat reclines and the new material used for the seat cushions.” There are other benefits as well. The new 737s come with regular power ports available at all seats, bigger overhead bins and 20 drop-down LCD video units for entertainment programming.

The 737-800s will also burn 35% less fuel per-seat than the MD-80s they replace. Still, seat pitch at 31 inches may well feel tight to many travelers. American once had 34 inches in coach when it marketed itself as the “More Room” airline from 2000-2005. The MD-80s being phased out in favor of the 737-800s will replace MD-80 jets that have 31- to 33-inch pitch in coach.

While some low-cost airlines still offer 32-34 inches of seat pitch on planes, 31 inches has become the standard in coach at many carriers. Delta, for example, had 32 inches in its 737-800s when it had 150 seats. A reconfiguration completed last summer on all 71 737-800s in Delta’s fleet pushed that to 160 seats, using slimmer seats. But seat pitch did decline: The first seven rows in coach have 32-inch pitch, but the 15 rows behind the exit doors have 31-inch pitch. More passengers on a plane means more travelers competing for the same overhead bin space. And bathrooms, too. Most 737-800s are delivered from Boeing with three bathrooms — one in the front for first-class passengers and two in the rear for coach customers. Continental and Alaska Airlines are notable exceptions. Continental opted to add an extra mid-cabin bathroom to some of its 737-800s and use those planes primarily on trans-continental flights. That version also has an extra row of first-class seats and carries a total of 155 seats. The bathroom retrofit began after the airline’s president at the time, Greg Brenneman, was quoted in a 1999 page one story in this newspaper acknowledging that the new 737-800 was “one bathroom shy of what it needs.” With only two lavatories in the rear for then 140 coach seats (and today 144 coach seats), lines for the bathroom, especially when movies end, can be long.

 Wall Street Journal

Qantas to withdraw first class from 3 long haul routes

May 21, 2009 by Global Marine Travel. GMT

During the summer months Qantas has decided to withdraw first class from three long-haul routes owing to the downturn in traffic.

According to the industry publication Air Transport World, Qantas will not offer a first class cabin between July 6 and October 31 on flights between Sydney, San Francisco and Buenos Aires in addition to its Melbourne-Hong Kong-London service.

First class availability on these three Qantas routes has now been withdrawn from airline booking systems between the above dates.

The decision to withdraw first class between London and Melbourne on flights QF29 and QF30  will impact on those travellers using Qantas as an alternative to British Airways, Cathay Pacific, Virgin Atlantic and Air New Zealand between London and Hong Kong.

Qantas expects to operate its B747-400s on the London-Hong Kong-Melbourne route with the existing business, premium economy and economy seating.  It’s not clear whether first class will remain empty or whether Qantas will accommodate some of its favoured business class passengers in the premium cabin with the more spacious seating (but with business class catering and so on) at no extra cost.

For more information visit qantas.com.au.

Report by Alex McWhirter

Dubai’s New airport to open.

May 21, 2009 by Global Marine Travel. GMT

As reported by Business traveller Dubai’s new international airport – Dubai World Central-Al Maktoum International (DWC-AMI) is on course to open in June 2010.

The new airport is part of Dubai World Central (DWC) – a 140-square-kilometre aviation and logistics city in Jebel Ali.  Paul Griffiths, chief executive of Dubai Airports Company, which has the mandate to operate both Dubai International and Dubai World Central-Al Maktoum International (DWC-AMI), has confirmed that phase one of the DWC-AMI will be open by June 2010, despite rumours of further delays.

“As we are expanding capacity within the Dubai International, the pressure to open DWC-AMIA is less,” he says “But the new airport will open in June 2010 with the first runway and terminal and will be able to handle nine million passengers. We expect that airport initially to take some of the heat out of the peak traffic out of Dubai International (DIA). Initially it will handle some of the general aviation, some of the executive aviation, some of the cargo flights and some of the passenger aircraft, but because of our very liberal open skies policy we are optimistic that it will attract new carriers who will want to establish new operations and we are optimistic we will get some low cost operators in there.”