Friday, March 25, 2011

Fare Increases and Ancillary Fees Taking a Toll on Travel Demand

Travelers are getting accustomed to paying an ever increasing number of ancillary fees that airlines keep dreaming of.

With the big increase in fuel costs, airlines did not waste any time in implementing seven fare increases in 2011 alone. Fuel surcharges have also moved up for international travel.

Airlines have also responded by cutting capacity further by an average of 1.5% of the available seats in 2011. Many discounted fares have been quietly removed from inventory.

While flights might appear to be jam-packed, let us not forget that the reduction in the number of flights and the downsizing of aircraft is giving the false appearance that things are going well for the airlines.

However, the sky rocketing fares are finally catching up with the cost conscious travelers and many are beginning to push back. Some fares to destinations with little or no competition are at historic highs.

Some airlines will probably log losses for the current quarter as many have been unable to hedge for their fuel costs which account for 35-40% of their total operating costs.

www.premieretravel.com

Thursday, March 24, 2011

Major Fuel Fire Disrupts Miami International Airport

March 24-A major fuel fire erupted at Miami International Airport overnight. While the runways are far from the fire, the loss of some fueling operations will cause delays to flights leaving Miami on Thursday.

American Airlines, with a major hub in Miami will likely experience most of the disruption.

www.premieretravel.com

Who's On First? Reagan National Control Tower Went Silent...

The control tower at Reagan National Airport went silent Wednesday, forcing the crews of two planes carrying 165 passengers total to land without any help. The two planes were communicating with controllers at a separate facility in the region that doesn’t handle landings, but the pilots of both planes had to take matters into their own hands. The incident is the second time in two years the control tower at Reagan National has gone silent for a period of time.

An investigation into the incident is underway, but there is still no version, what caused the silence from the tower. Shortly after the incident, U.S. Secretary of Transportation Ray LaHood ordered inspection of all airports in the country. He also ordered to have two, instead of a one, traffic controllers on duty at the control tower of the Reagan National Airport between midnight and 6 a.m.

www.premieretravel.com

Wednesday, March 23, 2011

District Of Columbia Sues Online Booking Agencies

Attorneys for the District of Columbia filed a lawsuit Tuesday against online travel companies including Expedia, Orbitz, Travelocity and Priceline, alleging the companies owe the city millions of dollars per year in sales tax that they aren't paying.

The lawsuit in Superior Court in Washington is similar to more than 40 others pending around the country, and cities have met with mixed success in cases already decided by courts. The District's lawyers, like their counterparts elsewhere, contend the companies charge customers hotel tax on the full price of a room but only return tax to the city based on the wholesale rate the company paid.
(Associated Press)

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Friday, March 18, 2011

Boeing blames Japan Earthquake For Another Dreamliner Delay

Boeing said that it was assessing the impact of the Japanese earthquake disaster on aircraft production, warning of a potential supplies crunch if disruptions continued for several weeks.

The Chicago-based aerospace giant relies on Japanese companies for 35% of the content of the much-delayed 787 Dreamliner.

Factory disruptions may affect availability of key components for the Dreamliner.

www.premieretravel.com

Friday, March 11, 2011

Tokyo Narita and Haneda Re-open for Some Outbound Flights

Both Airports have re-opened for limited outbound flights.

www.premieretravel.com

Airlines Scramble to Cancel Flights to/from Japan

Commercial air service to/from Japan have been halted due to the massive earthquake that hit Northeast Japan this morning. Aftershocks and tsunami warnings may affect a much wider area potentially affecting travel not just in Japan, but in the rest of east Asia.

www.premieretravel.com

Wednesday, March 9, 2011

A Fee to Recline Your Seat!

Another convoluted thought drummed up by some clever airline executive adamant to make the travel experience even more miserable than your worst expectations...seats that don't recline, or if they do, ka-ching!

This is meant to squeeze more seats into an already crowded cabin. Next step: Sardine seating..translation: No Leg Room!

Nothing surprises anymore. In this post, the upright seating was mentioned and so was the lavatory charge...

And yes, thank you for choosing our airline, we aim to please!

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(A Charlie Sheen-free website)

Monday, March 7, 2011

Airlines Hike Fares For the 6TH Time in 2011

In case travelers are wondering why domestic fares have become so high so quickly, look no further than six fare hikes just in 2011...

While we are still in the first quarter of the year, and the oil prices are making highs not seen since 2008 when oil hit $147/barrel, the quick-to-react airlines waste no time every week to take advantage.

When oil prices roll back on the other hand, airlines really take their time to roll back their fares and fuel surcharges.

The recent Department of Justice charges against 21 airlines for price fixing is the tip of the iceberg. Airlines do act in concert, and when one or more competitor would not "go along" with fare hikes, something amazing happens: those who do increase fares cancel those increases "for competitive reasons".

www.premieretravel.com

Saturday, March 5, 2011

21 Airlines Fined For Price Fixing

During the recession years of 2000-2006, airlines were scrambling to survive the downturn in the economy and stay alive. But according to federal prosecutors, what they came out with was a massive price-fixing scheme that artificially inflated "fuel surcharges" and cargo rates for international travelers and shippers.

The court cases brought by prosecutors alleges a conspiracy to fix rates and fees for flights originating and ending in the U.S.

The airlines accused have already paid fines in excess of $1.7 billion, and many executives involved have been charged by the U.S. Department Of Justice. Four executives are serving time in jail.

Among the culprits convicted are British Airways, KLM, Air France, and Korean Airlines.

All airlines, none of which are U.S. flag, were convicted in violating the Sherman Anti-Trust Act.

www.premieretravel.com

Tuesday, March 1, 2011

Not "Up In the Air"...American Airlines Cuts Flights

American Airlines is continuing the trend of airlines trimming capacity as the industry tries to grapple with rising fuel costs by reducing flights and hiking fares.

Capacity would be reduced by about 1% overall.

In addition to sky rocketing fuel prices, airlines had to contend with serious weather disruptions in January and February that increased costs and will likely result in some losses.

www.premieretravel.com