Airlines are beginning to assess new fuel surcharges as jet fuel prices surges up to the highest level of the year.
Lufthansa on Monday increased its fuel surcharges, and similar moves by other airlines could be on their way after oil prices on Tuesday hit a two-year high in New York at $87.63 a barrel.
Airlines don't waste any time when fuel prices go up. Despite some hedging, they are quick to implement the surcharges and very slow to remove them when prices decline.
www.premieretravel.com
Wednesday, November 10, 2010
Monday, November 8, 2010
A Tiff Worth Keeping Track Of...
American Airlines announced last week that it would end an agreement with Orbitz Worldwide in displaying American's inventory in search results of the online booking company. Orbitz will not be able to display or sell seats on American Airlines.
This move could be the beginning of a long anticipated move by airlines to redefine the diplays of availability and selling that travel companies have through their Global Distribution Systems (GDS).
American Airlines wants travelers and travel providers to book American's seats through a "Direct Connect" system bypassing the general display of showing all flights. If implemented, this opening salvo will have a profound change on the way air travel is distributed. American wants to have more control over its content and wants to cut their distribution costs even further.
But is this practical?
If all carriers adopt the same strategy, it will eliminate the platform of being able to compare availability and pricing throughout the system, and travelers will not be able to receive efficient information that would allow them to make the best decisions.
American is choosing to pick on Orbitz, one of the smaller online players. But nothing precludes American or other airlines to apply the same strategy towards larger or smaller travel management companies.
Clearly, this step would be a setback for the traveling public if adopted widely.
The cost of airline ticket distribution is at an all time low of less than 2 percent of the fare, among the very lowest in any industry.
www.premieretravel.com
This move could be the beginning of a long anticipated move by airlines to redefine the diplays of availability and selling that travel companies have through their Global Distribution Systems (GDS).
American Airlines wants travelers and travel providers to book American's seats through a "Direct Connect" system bypassing the general display of showing all flights. If implemented, this opening salvo will have a profound change on the way air travel is distributed. American wants to have more control over its content and wants to cut their distribution costs even further.
But is this practical?
If all carriers adopt the same strategy, it will eliminate the platform of being able to compare availability and pricing throughout the system, and travelers will not be able to receive efficient information that would allow them to make the best decisions.
American is choosing to pick on Orbitz, one of the smaller online players. But nothing precludes American or other airlines to apply the same strategy towards larger or smaller travel management companies.
Clearly, this step would be a setback for the traveling public if adopted widely.
The cost of airline ticket distribution is at an all time low of less than 2 percent of the fare, among the very lowest in any industry.
www.premieretravel.com
Saturday, November 6, 2010
Indonesia Volcano forces Flight Cancellations
Several airlines have temporarily suspended flights between Singapore and Jakarta because of volcanic ash spewing from Mount Merapi in central Java, Indonesia.
The Merapi, one of the world's most active volcanoes, began erupting two weeks ago. Carriers affected included Singapore Airlines, Japan Airlines, Lufthansa and Cathay Pacific.
The Merapi, one of the world's most active volcanoes, began erupting two weeks ago. Carriers affected included Singapore Airlines, Japan Airlines, Lufthansa and Cathay Pacific.
Friday, November 5, 2010
A380 Engine May Have a Design Flaw
The midair incident involving a Qantas Airbus A380 is being investigated.
Qantas said faulty engine design or material failure were the most likely causes of an engine blowout on one of its Airbus A380 superjumbos, and confirmed Friday that pieces from the engine had pierced the plane's wing.
The focus is on Rolls-Royce engines that Qantas A380 fleet is equipped with. Other carriers such as Lufthansa and Emirates that also fly the same aircraft have conducted inspections and have not decided to ground their aircraft.
www.premieretravel.com
Qantas said faulty engine design or material failure were the most likely causes of an engine blowout on one of its Airbus A380 superjumbos, and confirmed Friday that pieces from the engine had pierced the plane's wing.
The focus is on Rolls-Royce engines that Qantas A380 fleet is equipped with. Other carriers such as Lufthansa and Emirates that also fly the same aircraft have conducted inspections and have not decided to ground their aircraft.
www.premieretravel.com
Thursday, November 4, 2010
Qantas Grounds A380 Fleet After Mid Air Engine Problem
Qantas grounded its new fleet of six Airbus A380 super jumbos after an engine blew out in midair Thursday November 4. The plane, with 459 aboard made a safe landing in Singapore.
www.premieretravel.com
www.premieretravel.com
Wednesday, November 3, 2010
United Airlines Mileage Plus seats on Sale Through November 12!
United Economy Plus seating offers you up to five extra inches of legroom on all domestic and international United flights and explusSM from United Express®.
Economy Plus purchase reserves a seat within the Economy Plus seating area. Specific seat assignments are not guaranteed.
United offers complimentary Economy Plus seating to its premium customers and one companion, including:
Mileage Plus® elite members
United Global Services® members
Member must have elite status at the time of travel to retain complimentary reserved Economy Plus seats. For multiple companions, members can purchase Economy Plus seats for each additional companion when viewing an itinerary via My Itineraries on united.com.
Take advantage of more legroom all year by purchasing an Economy Plus annual option. As a member, you can reserve seats for yourself and a companion in Economy Plus whenever available-for an entire year.
This product is also available to international travelers.
For more information:
Call Premiere Travel at 703-893-2288
www.premieretravel.com
Economy Plus purchase reserves a seat within the Economy Plus seating area. Specific seat assignments are not guaranteed.
United offers complimentary Economy Plus seating to its premium customers and one companion, including:
Mileage Plus® elite members
United Global Services® members
Member must have elite status at the time of travel to retain complimentary reserved Economy Plus seats. For multiple companions, members can purchase Economy Plus seats for each additional companion when viewing an itinerary via My Itineraries on united.com.
Take advantage of more legroom all year by purchasing an Economy Plus annual option. As a member, you can reserve seats for yourself and a companion in Economy Plus whenever available-for an entire year.
This product is also available to international travelers.
For more information:
Call Premiere Travel at 703-893-2288
www.premieretravel.com
IATA Warns Against Unilateral Actions to Terror Threats
Officials at the International Air Transport Association (IATA) has warned governments around the world not to act unilaterally, as the aviation industry seeks to minimize the fall out from the Yemeni bomb plot.
Both passenger and cargo carriers are concerned governments around the world will tighten security to such an extent that measures will be detrimental to business.
In turn the IATA has called for a measured response.
“Effective solutions are not developed unilaterally or in haste,” said IATA director general Giovanni Bisignani at the opening of AVSEC World in Frankfurt.
“We have seen many cases where these have unintended consequences. It is still early days. Industry is cooperating with government directives on targeted actions for Yemen-origin cargo."
www.premieretravel.com
Both passenger and cargo carriers are concerned governments around the world will tighten security to such an extent that measures will be detrimental to business.
In turn the IATA has called for a measured response.
“Effective solutions are not developed unilaterally or in haste,” said IATA director general Giovanni Bisignani at the opening of AVSEC World in Frankfurt.
“We have seen many cases where these have unintended consequences. It is still early days. Industry is cooperating with government directives on targeted actions for Yemen-origin cargo."
www.premieretravel.com
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