FAA Rules To Become Slightly Less Antiquated

From the same people that still believe the majority of us do not know how to fasten our seat belts, now comes the news that certain use of electronic devices will be allowed during takeoffs and landings.

For the longest time, the experts who run the FAA believed that anything that has "an on/off switch" must be turned off.  Never mind that there is no scientific evidence that the "On" devices have no impact on flight operations, and the fact that a significant percentage of travelers either forget to turn their devices off or simply put them in "Airplane mode".  The best part about this potential new rule is that passengers will have one less instruction to listen to before takeoff.  FAA must have finally concluded that with tens of millions of devices that remained on during takeoffs and landings, and the even larger number of devices that are on within proximity of gates and runways, airplanes managed to take off, fly and land safely without a single incident.  While mobile phone conversations should continue to be prohibited, all other uses should be allowed. www.premieretravel.com

Call for Rally in Favor of Airline Merger Attracts 300

Union members of USAirways and American Airlines called for a "rally" that attracted about 300, mostly union members of both airlines to demonstrate their "grassroot" support for the merger and to urge the Department of Justice to drop its opposition to the merger.

The sides will appear in court in November to argue the lawsuit brought by the carriers against the DOJ.  The airlines contend that DOJ granted previous airline mergers, so therefore, they should also approve this one.

It is notable that the carriers insisted on keeping all their slots at Reagan National (71% of the slots) and threatened to cut off services to/from smaller airports if they were forced to give up slots.

A United Bonus Worth Checking

United Begins Three-Day Promotion Offering Big Bonus to MileagePlus Members   United today launched a three-day promotion offering MileagePlus members a bonus of up to 60 percent on award miles purchased between September 3 - 5, 2013.   The promotion is a chance for MileagePlus members to maximize their bonus opportunities by spreading the word to family and friends.   By going to united.com/peoplepower to purchase miles, MileagePlus members can share the promotion through social media channels and view the progress of the bonus. Each participating member will receive a minimum 30 percent bonus on award miles purchased through the promotion. The bonus will increase to as much as 60 percent if there are more than 1,500 qualifying transactions.     Promotion terms and conditions are available at united.com/peoplepower. Participating MileagePlus members must purchase at least 5,000 award miles.

 

New Travel Warnings Likely Due to Possible Action in Syria

The U.S. State Department will most certainly be updating its travel warnings based on imminent action against Syria.

In past conflicts such warnings came after the fact.  U.S. citizens and travelers are well advised to be prepared to alter plans based on what might happen in the next few days. 

From the State Department website:
Travel Warnings are issued when long-term, protracted conditions that make a country dangerous or unstable lead the State Department to recommend that Americans avoid or consider the risk of travel to that country. A Travel Warning is also issued when the U.S. Government's ability to assist American citizens is constrained due to the closure of an embassy or consulate or because of a drawdown of its staff. The countries listed below meet those criteria:
Algeria 08/23/2013
Afghanistan 08/23/2013
Egypt 08/15/2013
Haiti 08/13/2013
El Salvador 08/09/2013
Pakistan 08/09/2013
Yemen 08/06/2013
Saudi Arabia 07/25/2013
Mali 07/18/2013
Niger 07/15/2013
Mexico 07/12/2013
Philippines 07/05/2013
Kenya 07/05/2013
Somalia 06/21/2013
Israel, the West Bank and Gaza 06/19/2013
Honduras 06/17/2013
Chad 06/11/2013
Libya 06/07/2013
Nigeria 06/03/2013
Iran 05/24/2013
Mauritania 05/21/2013
Cote d'Ivoire 05/16/2013
Eritrea 05/10/2013
Central African Republic 05/10/2013
Congo, Democratic Republic of the 04/24/2013
Burundi 04/22/2013
Sudan 04/16/2013
Colombia 04/11/2013
Lebanon 04/01/2013
Republic of South Sudan 03/29/2013
Korea, Democratic People's Republic of 03/14/2013
Guinea 03/14/2013
Tunisia 03/13/2013
Syria 03/01/2013
Iraq 02/25/2013

American's Exit From Bankruptcy Delayed

At U.S. Bankruptcy Court today, judge Sean Lane withheld approval of American Airlines' plan to exit from bankruptcy in light of the challenge that the Department of Justice did earlier this week blocking the merger with USAirways.

Judge Lane said he has "lingering doubts" about the viability of the plan that is highly contingent on a merger that is in serious trouble. www.premieretravel.com

Justice Department Blocks USAirways-American Proposed Merger

In a surprise move, the U.S. Department of Justice filed suit to block the merger between American and USAirways on grounds that the combined carriers would reduce competition and result in higher fares.

The combined carriers have refused to surrender slots at Reagan National Airport and threatened to cut services to smaller airport if Justice forced the surrender of slots. 

The intransigence of Doug Parker, CEO of USAirways and the expected CEO of the combined carrier has obviously backfired and the proposed merger is in serious trouble unless the merged carriers will agree to give up some slots and address major anti-competitive concerns. The expectation of USAirways/American was for the Department of Justice and Transportation to rubberstamp whatever deal these two carriers put on the table.  That did not fly.

Update:
The parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that they intend to mount a "vigorous and strong defense" to the U.S. Department of Justice's ("DOJ") effort to block their proposed merger.
www.premieretravel.com

Jetblue's Upmarket Gambit

Jetblue is having an identity crisis.  The carrier which had a successful launch in 2000 is having a mid-life crisis.  It wants to be all things to all people.  Jetblue came into being as a discount carrier that provided unheard of amenities at the time such as live feed of direcTV, leather seats and excellent service, all at a discount.

Over the years, Jetblue started its rapid expansion and now flies to/from Caribbean destinations and have competed head on with legacy and deep discount carriers. 

In a major departure from its initial core, now Jetblue plans to add premium seats to its transcontinental routes once again positioning itself to compete head-on with the legacies (United, American, Delta).  Jetblue mistakenly thinks that the legacies are charging an average of $4,000 or more for the first class seats.  The reality is that those legacy carriers have very potent frequent flyer programs enabling their elite travelers to upgrade to business and first class.  Only a small percentage of travelers actually pay the "suggested retail" of $4,000 plus.  It is also doubtful that travelers want to pay for sleeper lie flat seats. 

www.premieretravel.com