Tuesday, September 28, 2010

Can a Bulked up Southwest Airlines slow down Airline Fees?

With the expected acquisition of AirTran by Southwest going through, this combination may give pause to several competing carriers that are planning on increasing their fees in the near future.

Southwest, despite its size, has not been taken seriously by the legacy carriers since they primarily operate point-to-point routes and do not have major presence in key markets, major hubs and airports.

Now with the AirTran addition, the Southwest livery colors will start showing up in LaGuardia, Washington National, Dulles, Boston, Atlanta and other airports.

The Southwest campaign "Bags Fly Free" will carry more weight (no pun) and so would their low change/cancellation fee, especially that rumors are beginning to circulate that major carriers are contemplating increasing the penalties on change fees on domestic travel from $150 to a whopping $300.

www.premieretravel.com

Monday, September 27, 2010

Another Merger: Southwest acquires AirTran

Southwest Airlines announced today that it has entered a definitive agreement to acquire AirTran Holdings, Inc., the parent company of AirTran Airways.

The acquisition will immediately expand Southwest's footprint, especially in Atlanta and the southeast and will allow Southwest, known for it's successful low cost model, to move into the Delta Airlines backyard.

This acquisition is actually good news for the traveler as it creates a more competitive environments in many key markets.

Saturday, September 25, 2010

Emerging Markets Low cost Airlines create Pilot shortages

The quick economic recovery in Asia along with cheap sources of financing, and relaxed regulation have created the perfect conditions for the proliferation of several low-cost carriers. India, Malaysia, the Philippines and Singapore are among countries that are seeing many of these low cost carriers come on line.

This development has resulted in many jet orders that should benefit companies such as Boeing and EADS (Airbus). The race to be first means more pilots are being hired resulting in shortages among the more established carriers in the region. Even the "legacy carriers" are throwing their hats in the ring by starting new low cost subsidiaries to protect their market shares.

www.premieretravel.com

Friday, September 24, 2010

Holiday Travel Planning-how to get the lowest rates

As we get closer to thanksgiving, and December holidays, travelers will realize that fares will average about 10% higher than they were a year ago. Due to lower capacity, airlines continue to increase fares and add more fees resulting in higher overall costs to the traveler.

Flexibility is the key for paying less. By avoiding a Wednesday afternoon departure and specially a Sunday return thanksgiving week, passengers can save an average of 25% or more. A Tuesday to Tuesday may work out best but many other factors such as the origin, destination and level of competition among carriers will have an impact.
Christmas day travel might be one of the best relative bargains out there.

www.premieretravel.com

Wednesday, September 22, 2010

Coming Soon to your (shorthaul) Airplane Cabin

Just as you thought that certain airlines cannot possibly make the flying experience more miserable, here comes the "SkyRider" seat. With a saddleback feel and the weight almost entirely shifted to the legs, this new airline seat is a mere 23 inches away from the passenger in front of you or behind you. The arm rest is a sliver and you will get to know your seatmate even more intimately...

Introduced at the Aircraft Interiors Expo Americas trade show last week, this vertical seat concept is getting attention from discount airlines such as Ryanair.

As few airlines such as Spirit and Ryanair have discontinued reclining seats, they turn their focus to cramming even more passengers into the cabin. Aviointeriors Group, the Italian company behind this "clever" concept claims that the seats are actually more comfortable than regular seats and are pitching them for flights of up to 3 hours.

Ryanair is taking the concept to the highest extreme by floating the idea of standing seats if the regulators would approve the design. Could shrink-wrapping passengers and storing them in the cargo bin be too far away?

Tuesday, September 21, 2010

General Strikes in Western Europe May Disrupt Travel Plans

General strikes are planned in France and Spain in the upcoming few days that may disrupt or impact travel plans.

A planned strike in France will take place on September 23 and in Spain on September 29. Some airlines are issuing travel waivers for travelers that may be impacted.

Please check with your travel counselor at www.premieretravel.com

Global airline industry rebounding strongly in 2010

The rebound to profit of major global airlines is proceeding nicely. After a tough 2009 and 2009, airlines are on pace to post about $9 billion dollars in profit in 2010 according to The International Air Transport Association (IATA).

Asia will lead growth this year with a $5.2 billion profit while Europe will remain the only region to lose money, the IATA said. North American airlines should earn $3.5 billion this year as U.S. carriers keep capacity limited, according to the group.

www.premieretravel.com

Monday, September 20, 2010

Shareholders approve United-Continental merger

Shareholders in Continental and United Airlines have voted to approve a proposed merger between the rivals – creating the largest airline in the world.

The all-stock merger was announced on May 3, 2010, and has already cleared U.S. Department of Justice and the European Commission.

The new combined airline will be called "United" and will be based in Chicago. Jeff Smisek, the Continental CEO will run the combined carrier.

The merger will close by October 1, 2010 and it will take several months to combine and integrate the airlines operations.

www.premieretravel.com

Wednesday, September 15, 2010

Are Airlines Ancillary Fees Reaching the Ridiculous Stage?

Airlines continue to concoct and come up with ever more creative ways to charge travelers fees for almost anything they can get away with.

The U.S. Department of Transportation (DOT)accepting industry comments until September 23 on a Notice of Proposed Rule Making (NPRM) regarding enhanced passenger protections. Among DOT’s proposals is a requirement that airlines make ancillary fee information available on their websites for the 50% of travelers who purchase their tickets there. As it relates to the other 50% of travelers who use online travel agencies and travel management companies (TMCs), such as business travelers, DOT is asking for comments on whether airlines should also be required to make fee information available to these distributors via any global distribution system in which a carrier participates.

Please check this funny clip from Youtube: (credit to jdyken):
http://www.youtube.com/watch?v=rYFNNlSS8QY

www.premieretravel.com

Thursday, September 9, 2010

STATE DEPARTMENT ISSUES GLOBAL TRAVEL ALERT

The Department of State is issuing this Travel Alert to caution U.S. citizens of the potential for anti-U.S. demonstrations in many countries in response to stated plans by a church in Florida to burn Qurans on the anniversary of the Sept. 11, 2001, terrorist attacks. Demonstrations, some violent, have already taken place in several countries, including Afghanistan and Indonesia, in response to media reports of the church's plans. The potential for further protests and demonstrations, some of which may turn violent, remains high. U.S. citizens are urged to pay attention to local reaction to the situation and to avoid areas where demonstrations may take place. This Travel Alert expires on Sept. 30, 2010.

www.premieretravel.com

Friday, September 3, 2010

SECURE FLIGHT PASSENGER DATA (SFPD)

Airlines and travel management companies are on notice that full compliance with TSA mandates will be applied with no exceptions. Passengers must provide full names as they appear exactly on government issued identification/passports along with the date of birth. Some international travel may require additional documentation such as passport number, date of issue, expiration date and place of issue of the passport.

Passengers lacking this data will be denied security clearance and the airlines and/or travel management companies will be subject to large fines.

This data must be in the passenger record at least 72 hours prior to the first part of the journey.

We appreciate our clients' cooperation in order to avoid cancellations and fines.


www.premieretravel.com
http://www.tsa.gov/what_we_do/layers/secureflight/index.shtm