A Vague Worldwide Travel Warning-The Message: Please Be Careful!

Here's the warning that was issued this afternoon to U.S. Citizens WORLDWIDE.  Quite ominous, but  of course lacking substance and specifics.  Such warnings do nothing but sow fear and confusion:


The State Department alerts U.S. citizens to possible risks of travel due to increased terrorist threats. Current information suggests that ISIL (aka Da’esh), al-Qa’ida, Boko Haram, and other terrorist groups continue to plan terrorist attacks in multiple regions.  These attacks may employ a wide variety of tactics, using conventional and non-conventional weapons and targeting both official and private interests.  This Travel Alert expires on February 24, 2016.

Authorities believe the likelihood of terror attacks will continue as members of ISIL/Da’esh return from Syria and Iraq.  Additionally, there is a continuing threat from unaffiliated persons planning attacks inspired by major terrorist organizations but conducted on an individual basis.  Extremists have targeted large sporting events, theatres, open markets, and aviation services.  In the past year, there have been multiple attacks in France, Nigeria, Denmark, Turkey, and Mali.  ISIL/Da’esh has claimed responsibility for the bombing of a Russian airliner in Egypt.

U.S. citizens should exercise vigilance when in public places or using transportation.  Be aware of immediate surroundings and avoid large crowds or crowed places.  Exercise particular caution during the holiday season and at holiday festivals or events.  U.S. citizens should monitor media and local information sources and factor updated information into personal travel plans and activities.  Persons with specific safety concerns should contact local law enforcement authorities who are responsible for the safety and security of all visitors to their host country.  U.S. citizens should:

Follow the instructions of local authorities.  Monitor media and local information sources and factor updated information into personal travel plans and activities.
Be prepared for additional security screening and unexpected disruptions.
Stay in touch with your family members and ensure they know how to reach you in the event of an emergency.
Register in our Smart Traveler Enrollment Program (STEP).
Foreign governments have taken action to guard against terrorist attacks, and some have made official declarations regarding heightened threat conditions.  Authorities continue to conduct raids and disrupt terror plots.  We continue to work closely with our allies on the threat from international terrorism.  Information is routinely shared between the United States and our key partners in order to disrupt terrorist plotting, identify and take action against potential operatives, and strengthen our defenses against potential threats.

For further information:

See the State Department's travel website for the Worldwide Caution, Travel Warnings, Travel Alerts, and Country Specific Information.
Enroll in the Smart Traveler Enrollment Program (STEP) to receive security messages and make it easier to locate you in an emergency.
Call 1-888-407-4747 toll-free in the United States and Canada or 1-202-501-4444 from other countries from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays).

PARIS!

Repetitive Lufthansa Strikes Taking a Toll on Travelers and Carrier

It seems that labor strikes at Lufthansa has become a new normal.  Yet again, this time cabin crew union announced a strike that will affect mostly short-haul flights.  Another strike is also scheduled for next week.  There has been several labor issues that resulted in major travel disruptions in 2014 and 2015.  The airline and its unions cannot seem to agree on anything and travelers pay the price.

It has been a tough year for Lufthansa which suffered a tragedy earlier this year with the German Wings crash, multiple strikes and the dreaded surcharge that penalizes the distribution system (travel agencies) if they do not book directly on the group's website.

Delta Quits Airline Lobbying Group

Delta Air Lines announced yesterday that it is quitting the lobbying outfit calling itself "Airlines for America".  This move comes after a disagreement over strategy about FAA air traffic control privatization.  By doing so, Delta would save itself the annual fee of $5 million.
Billing itself as an industry group "fighting higher taxes" and "unnecessary regulation", Airlines for America (a.k.a, A4A) has mainly focused recently on an aggressive protectionist campaign against three gulf carriers claiming that they are being "unfairly" subsidized by their governments and attempting to lobby U.S. Congress and Government to intervene to stop their expansion in the U.S.
This effort has suffered setbacks as other carriers and the vast majority of travelers disagree with A4A position despite a huge dollar budget on lobbying and advertising.

More Airline and DHS Computer Glitches on Horizon

The Department of Homeland Security's computer systems joined Southwest, American and United by adding misery to travelers' experience dogged by technical glitches to their computer systems. United had experienced multiple failures in the past few years, and Southwest was the latest to have issues last Sunday and Monday.  Fasten your seat belts as American will complete its merger of  with USAirways this weekend, consolidating two computer systems into one.  The puzzling failure of DHS Customs and Border Protection computers are the most troubling yet as the cause remains unknown.  The frequency and randomness of these outages have now become the new normal.

Spirit Airlines Consistent Track Record Continues...

The latest rankings of airlines on-time performance for August have been released, and there is no surprise who was at the bottom of the pile.  Once again Spirit Airlines took the honors for the worst performer (#13) and they are most probably proud of it and and of the most complaints per 1000 passengers.  Spirit thinks that no publicity is bad publicity, so we just provided them with a free service here at Premieretravel.com

Apology Tour Continues for United's New CEO

On the fifth anniversary of United Airlines merger with Continental, new CEO Oscar Munoz issued an apology stating that the merger was poorly managed and the integration was "rocky".
The CEO is on a tour to speak to United's rank and file and to lift the sagging morale of 85,000 employees, who were "allowed to be disengaged, disenchanted, disenfranchised-the three nasty D's".
Add another D or D- for the performance of the airline in the past year and CEO Munoz is dealing with quite many D's.  Passengers can think of another letters, like "F" for performance,especially in how the most loyal customers were disenfranchised, and the grade that most have given to United's service. It is notable that CEO Munoz has been a board director at United since its inception and has suddenly realized that United has issues that must be dealt with.  The sooner he can act, not an easy task, the better.

October 20, 2015
Brett Hart becomes interim CEO of United after Oscar Munoz was hospitalized with a heart attack.
We wish Mr. Munoz a speedy recovery

Car Rental Taxes and Fees Going Haywire

Socking travelers with exorbitant taxes and fees has become a sport.  Airlines, hotels and car rental companies are now cash cows for cities, states, municipalities, airports for revenue generation.  Travelers do not vote in the places they visit, so they have become easy targets. For international airline tickets, taxes and fees are often higher than the "base fare" of a ticket.  Airlines have added their own surcharges since they only pay taxes on base fares.
Car rental companies taxes and fees are approaching parity with the "base" rental rates.  On a recent example, we requested a quote for a passenger needing a car in Austin, Texas, one of the lower jurisdictions for taxes and fees in the country, and were quite surprised to see this breakdown:

Taxes & Fees

Here is a breakdown of the estimated taxes, fees, and surcharges that apply to your reservation when you pick-up your rental car:
Weekly Rate (2 x $144.90)          $289.80

Airport Concession Fee	35.97
Local Tax	66.46
CUSTOMER FAC FEE	83.30
VEH LICENSE FEE	28.00
ENERGY RECOVERY FEE	6.00
Total Taxes, Fees and Surcharges	219.73

Grand Total: $509.53

"Vehicle License Fee"?, "Energy Recovery Fee"?, "Customer FAC Fee"? These names actually make the airlines look good!  How about a "Steering Wheel Fee"? or "Tire Tread Fee"?

www.premieretravel.com

The 3 Gulf Carriers Nobody Talks About

Emirates, Qatar and Etihad  (AKA: EQE) have been the three carriers making the headlines lately.  Expanding aggressively worldwide with new fleet of planes, state of the arts facilities and excellent amenities and on board services, these carriers have taken the lead in opening up new markets and giving passengers attractive choices.

In the same geographical area, well endowed, but keeping low profiles, three other gulf carriers are only there to serve limited markets and without the fanfare and the frills of the EQE.
Kuwait Airways is not known for great on board service and they have not attempted to bring their brand to the 21st century as evidenced by their logo.  Gulf Air had the opportunity to shine in the eighties but chose not to expand even though they were the largest "gulf" carrier then.  Finally Saudia is the most serious of all. No fun, no alcohol served, and ultra conservative in the way they operate.  All 3 carriers are averse in having connecting passengers through their airports, a key point in the success of the EQE. www.premieretravel.com

FAA Software "Upgrade" Grounds over 1200 Flights

The FAA, notorious for shooting itself in the foot, claimed another act over the weekend.  While the FAA did not disclose the nature of the problem that grounded hundred of flights Saturday and Sunday,  the likelihood of a software upgrade glitch remains the probable cause.
The FAA's seemingly endless string of glitches continues as the NEXTGEN satellite upgrade, well behind schedule, inches on with costs of over $40 Billion.
www.premieretravel.com

Weather and Competition Snag Brash Spirit

Spirit Airlines , sometimes referred to as the "in your face", "customer be dammed"  and "Bare Fare" airline (among others that shall not be published here) is blaming weather and competition for the poor numbers and margins posted in June.  We are always skeptical when companies blame the weather for their poor performance.  Another explanation, not given by analysts or the company is that perhaps travelers finally figured out the "unbundling" gig that ends up costing more when it is all said and done.  Remember that Spirit back in 2012 more than doubled the carry-on luggage fee to a $100 and made no apologies.  The applause from Wall Street was deafening.  Reality is finally setting in, and Wall Street is showing no love for Spirit today.
www.premieretravel.com

JetBlue Joins the Legacy Nickel and Dime Club

JetBlue, which for years distinguished itself as different and better than the domestic legacy carriers, and one of the last holdouts in charging for checked bags, finally succumbed to the temptation and will start charging for checked bags for bookings made as of June 30, 2015.  While this is not a surprise, JetBlue added couple of wrinkles by associating the fees with the fares paid.  Southwest Airlines remains the only major carrier not to charge a bag fee.  www.premieretravel.com

The Dogfight Over Love

Dallas Love Field that is.
Lawsuits are erupting involving the City Of Dallas, DOT, FAA, Southwest and Delta over the chaotic situation with the gates.  Southwest controls the vast majority of the gates at Love Field, a new hot favorite among travelers tired of American Airlines' dominance at Dallas-Ft. Worth.  Delta operates from 5 gates at Love Field but is supposed to surrender the gates to Southwest on July 6.  Delta however continues to book flights into and out of Love Field beyond the dates and their presence at Love Field will terminate on July 6.  DOT added to the confusion saying Delta has the right to continue to operate beyond the July deadline.

Wall Street Stands In Way of Airline Capacity Increase

When Southwest Airlines announced last week plans for increasing seat capacity starting November, Wall Street analysts and investors were very quick in taking the entire airline sector to the shed.  All airline stocks lost 2-3% when the announcement was made, as analysts were "concerned" about empty seats.
This misguided notion disregards the reality that airlines have been cutting capacity across the board for the past four years and a mere increase of 7% by one airline does not spell the doom of an entire industry.

There are many under-served airports and regions in the country that have seen high growth rates since the 2008 recession.  Airports like Austin and Dallas, along with many west coast cities have experienced double-digit growth on an annual basis.  Yet, airline service has decreased over the past few years.  The capacity increase announced by Southwest should be viewed as a healthy sign of demand not dilution by Wall Street, the investors and the "expert analysts".

www.premieretravel.com

TSA Failure Rate: 95%

Investigators were able to smuggle  banned (fake) weapons showing a high rate of failure in TSA screening at the nation's busiest airports.

The breaches and lapses from the investigation resulted in the "reassignment" of Melvin Carraway, the acting administrator.

The silver lining and  one thing perhaps worth noting was that TSA agents were good at barking orders better than 95% of the time.www.premieretravel.com

Flying Somewhere? Your Checked Baggage May Not Be On Your Flight

The first text notification you might receive upon  arrival at your destination may be from your carrier advising you that your bag may have been put on an earlier flight or a later flight.

This is one of many examples of airlines' notifications to passengers, which include among other things flight delays, change of gates, missed connections and protection.
It is highly recommended that passengers provide airlines and/or their travel management companies their mobile phone numbers for better service. www.premieretravel.com

Airline "Misery Index" Hits an All-Time High

Airlines promised better service and cheaper fares to get their mergers approved.  After USAirways and American were the latest pair to tie the knot, passengers' frustration with airlines and the travel experience hit another high.  In every category, airlines fared worse than years before:

• On-time arrivals dropped 2 percent;
• A slight increase in the percentage of passengers bumped from flights;
• Mishandled baggage climbed 11 percent.

The good news? Airlines like United climbed from #12 (last year) to #9 overall.  Part of the reason is there are less airlines to rate because of mergers. www.premieretravel.com

Searching for Answers....

Airlines' Waivers and Flexibility Not So Flexible

The 2015 winter has been brutal for the Northeast, Midwest, Mid-Atlantic and even the south.  When flights are cancelled or delayed, the effect cascades throughout the system and airlines have to react.
While we all know this is not easy for anyone, the tight capacity and limited options can wreak havoc for days even when the weather improves.  Airlines have very limited slack and changes cannot easily be made.  So who loses? The traveler is always the number 1 loser in these events.  Airlines grant "waivers" and "flexibility", but when you are going to a specific event on a certain day and you hold a non-refundable ticket, this flexibility does not mean much.

Here's an excerpt of one airline's policy:
Due to weather in the Eastern U.S., XYZ Airlines offers the following flexibility options to ticketed customers whose travel may be impacted by this event. Customers ticketed to travel , departing from the affected airports  may change flights
On the following dates: February 16, 2015 - February 17, 2015
And your ticket was issued no later than: February 15, 2015
You may travel: February 16, 2015 - February 20, 2015
Original inventory required? No
Origin/Destination/Stopover Changes allowed? No
The ticket reissue charge will be waived for one ticket change.
To change travel dates, contact our Reservations personnel at 1-800-XXX-XXXX within the United States or Canada.

As you see from above, the flexibility offers the same dates that flights are cancelled (February 16 and 17), and only allows 3 additional days to make the trip.  Problem #1, you may no longer have the need to travel.  Problem #2, if you do travel, you have to compete with other passengers on what looks like already oversold flights in a very tight window.  Problem #3, if you choose not to travel or cannot find seats, you will have to pay a penalty for using your ticket on a future flight.

U.S. Legacy Carriers Launch Offensive Against Gulf Carriers

A multi-pronged attack was launched by United, Delta and American on Qatar, Emirates and Etihad claiming that Gulf carriers compete unfairly as they receive direct and indirect subsidies from their governments.  The offensive includes robust lobbying and an attack on the "Open Skies" treaties that the three U.S. carriers championed for the longest time.  Now that the three U.S. carriers have already received approvals for anti-trust immunity by joint venturing with their foreign carrier partners, competition, which was the unintended result, is no longer convenient.  U.S. Carriers want the U.S. to impose restrictions and modify treaties to "level the playing field". www.premieretravel.com