Posts with category: business

Ryanair to allow inflight mobile phone calls by month's end

To the disgust of millions of quiet-airplane activists, the scales are starting to tip in the direction of mobile phones being allowed on aircraft. Today, word leaked from the UK indicates that Ryanair, the continent's largest budget carrier will start to allow inflight mobile phone calls on a limited basis.

If these trials pan out and and model is profitable, you can expect that the service will be expanded to all aircraft in the Ryanair fleet -- and further into the European Union.

All of this micro buildup from several international carriers testing out inflight mobile service is just prolonging the inevitable, unfortunately -- at some point I get the feeling that we're all going to have to sack up and deal with loud talkers on our flights.

Interestingly, however, Ryanair is taking a different approach to fees associated with the service than other carriers -- they don't plan to enforce any wild roaming fee from which they take a giant cut. Instead, CEO Michael O'Leary says that passengers will only be subject to normal roaming fees. Perhaps the profit that he plans to make from increased fare revenues will make up for the mobile phone equiment.

It's a cruel world - departing Continental Airlines CFO gets free airport parking for life

The airlines giveth, and the airlines taketh away. This has never been more true than in recent years. From pretzels and pillows to in-flight movies, we have all been robbed of the few things that made flying bearable.

But none of this applies to the airline executives that helped create the current situation. Most retiring executives leave the airline with hefty retirement packages, often including free flights and free medial care for life.

Departing Continental CFO Jeffrey Misner is clearly more creative than any of his colleagues. As part of his retirement package, he has secured a lifetime free executive parking spot at Jacksonville airport "in a lot that is the same or similar to the lot available to airport-management personnel".

He's also taking a cool $3 Million in unrestricted Continental stock with him, which is ironic since that is the same amount of money CO lost in their second quarter.

It's all spelled out in his retirement agreement posted online by the SEC. None of the other juicy details were described, but one can expect a pretty healthy chunk of our ticket money to head his way for years to come.

Misner joined Continental in 1995 and became their CFO in 2004. During his tenure, shares of the airline rose to the upper $40's in 2006, only to plummet back into the single digits in 2008.

So, next time you spend $26 a day for parking at the airport and another $20 for a snack on the flight, think of poor retired Jeffey Misner.

Source: Footnoted.org

Are frequent flyer programs dying?



With all of the recent cutbacks in the airline industry, frequent flyer programs are taking a beating. While passenger loyalty rewards are a great perk to air travel, any freebies given away by the carriers cut into the bottom line -- a mark that has fallen under intense scrutiny over the last six months.

To mitigate some of the loss from award mileage and ticket redemptions, airlines are making it harder and more expensive to use to earn and use your miles. Just last month, Delta Airlines instituted a fuel surcharge for booking an award flight; now in addition to taxes that you pay for that ticket you'll have to pony up up to fifty dollars for the privilege of booking it. Others, like American Airlines, are increasing the number of miles that you have to redeem for certain tickets and charging an additional fee to upgrade your seats into a higher class.

All of these changes are provoking industry analysts to worry about the future of frequent flier programs. George Hobica, founder of Airfarewatchdog.com, points out that some alternative reward credit cards are now more beneficial then keeping a miles card. Others, like Clark Howard point to the devaluing mile and wonder if it's even worth accruing miles at all, saying "Don't waste any effort chasing frequent flyer miles, which are like fool's gold."

Is the situation really this dire?

Emirates' A380 is on the way!

It's not very often that we Americans are privy to a taste of the Airbus A380, the new supermega jumbo jet that took to the skies last year.

Singapore Airlines was the first customer of the aircraft and though they took a quick zip around the United States, as our friend Mr. Cranky talked about last year, most folks have barely seen or heard much about the aircraft -- after all, none of Singapore's A380 flights regularly touch American soil.

Emirates, Dubai's glorious national carrier, however, has more appeasing plans. Starting later this summer, the airline is opening flights on the A380 between New York's JFK and Dubai, while routes from Los Angeles and San Francisco are planned for later in the year.

The airline plans to kick off its festivities with an inaugural flight reception at JFK on August 1st, where the media will be treated to inbound airport goodies from tarmac access to interviews with Emirates' staff and general merriment. Then, the aircraft flies cross country to California where two "acquaintance" flights are scheduled for the media and other interested parties. Too bad that's on the wrong coast for me.

If you've got any friends in the media world, now might be a good time to cash in your chips for a ride on the A380 -- otherwise you're going to have to wait to fly revenue. Last time I checked, those flights were going for about two grand.

Stay tuned for pictures and coverage from the Emirates reception.

Flight attendant wins trip into space -- on Rocketplane!

I thought that Rocketplane was a show on the cartoon network until I read an article this morning reporting that a French Flight Attendant won a trip into sub-orbit with the galactic airline.

First, about the flight attendant: Mathilde Epron was working her daily flight schedule when she grabbed a quick Kit Kat snack, tossed the wrapper in the garbage and went on about her normal duties. Suddenly, struck with a feeling that she should have checked the wrapper, she went back to the trash two hours later, dug out the refuse lo and behold, won one of the first trips into space on fledgling space tourism company, Rocketplane.

Secondly, Virgin Galactic has competition? Where did Rocketplane come from? Tell us more about yourselves and your crazy moniker, Rocketplane, we're delightfully curious.

Apparently, Ms. Epron is scheduled to get four days of astronaut training at Rocketplanes headquarters in Oklahoma then will be on one of the first flights scheduled in 2010.

Only a shade behind Virgin Galactic, which plans to unveil its White Knight Two later this month and carry passengers in 2009.

If Rocketplace sticks to its guns and testing goes well, we could have an interesting commercial space competition in the next ten years. Maybe all of this competition will drive the price of a flight down from 200-250k down to 100k. Time to start saving!

Other tales from the skies
Amazing and insane stories from a real-life flight attendant and co-pilot

Be hospitable in China: Tips for American travelers and athletes

One of the best things a person can do before traveling to a new country is to find out cultural norms in order to know how to be polite. It's a great way to make friends, get the best prices when bargaining, and to not create a situation where someone is mad at you because you've made a faux pas without realizing it.

Jim Wells at behospitable traveler.com of the Hilton Hotels hooked us into travel tips to help Americans (or anyone else for that matter) know how to behave when heading to China for the Olympic games.

This is part of the Hilton Hotels' campaign to help people be the stellar travelers we love to love. Hilton Hotels is one of the sponsors of the games and have been getting involved big time. (No, I'm not being paid to say that, it's just an observation.)

Whether you're one of the athletes or a couch potato, follow these tips and you'll leave China happy and the Chinese will be happy to have had you as a visitor.

The tips are presented by athletes in videos and print form. These are a good read whether you are going to China or not since they offer a glimpse into the Chinese value system. From this link, click on the hospitableTraveler: A call to Act box. This will lead you the tips. Click on the learn more tabs to "Thoughtfulness," "Character" and "Awareness." If you have problems accessing that link, try this one. Under the heading "Dining," you'll even find rules for using chopstick rules.

There is also a link to helpful Mandarin phrases like "Where is the bathroom?" When I was in Beijing, I used the bathroom at McDonald's several times. I bet that by the time the Olympics start, Beijing will be flush in Western style toilets.

Jelly Belly now offering exclusive candy-making tours

If you've ever wondered exactly how Jelly Belly jelly beans are made, you can do more than just watch candy being made through observation windows. The Jelly Belly Candy Company in Fairfield, California has opened its doors for exclusive tours called Jelly Belly University Tours. The tours are reservation only and cost a pretty penny.

For $47 you'll get to don a white coat, gloves and a hairnet for a personal tour through the actual factory. Reading about this reminded me a bit of Willy Wonka, except when you taste the good stuff and the experience won't turn you into a blueberry, shrink you to a tiny size, or have you taken away by squirrels.

The reason why the tour is so expensive is that it's exclusive. Only six people are taken through at a time so you'll have an up close and personal experience while surrounded by the sweetness.

If you don't want to pay this kind of cash, you can still take the company's free factory tour but it doesn't give you that personal touch. Here's the link to factory tour information.

For anyone who loves Jelly Belly jelly beans, the store would be a blast. All those flavors. My son, though, would need some coaching beforehand, or he would go totally nuts with the excitement of seeing such splendor.

How much are those Heathrow landing slots worth?

Now that Open Skies is in full effect, carriers left and right are scrambling to take advantage of all of the sweet landing slots in the EU's congested airports.

Case in point, London's Heathrow Airport. Most travelers flying into the United Kingdom prefer landing at Heathrow because of better connections and proximity to London via the Tube. But landing slots at LHR are all full, so whenever one opens up, competition is hot to fill it in. Similarly, carriers want to hold on to their high-value slots to make sure that any competition doesn't come in and snatch up some capacity.

So what do you do when you can't book enough passengers to justify flying in and out of your slot? This case might show up if, say hypothetically, you've been cutting capacity like crazy to save cash and demand is low because travel is so expensive. Sound like any economy you know?

In that case, what do you do with your landing slot? Well, according to BMI, or British Midland Airways, you keep flying. Without passengers.

British Airways did the same thing earlier this year to try to preserve landing slots and we figured that the subsequent disgust with their MO combined with the price of fuel would be a deterrent for other carriers to do the same thing. But I guess those slots are just too valuable.

Why not at least auction off the empty seats on the aircraft? I know that you have to pay flight attendants if you have passengers onboard, but I feel like you can make enough to pay a few employees and offset the price of jet fuel a bit. But I guess that would make too much sense.

Beginning today: Boarding pass advertisements

Six of the legacy carriers carriers announced today that they're participating in a new program to implement advertisements into their boarding passes. So now when you try to save time by checking in online you'll be bombarded with a Carnivial Cruise ad that you have to print out and carry around with you while you're at the airport.

Anything to make money, right? I'm kind of surprised that we don't have ad space on the inside of aircraft -- on the ceiling, walls and seat backs -- US Airways already tried putting advertisements on the air sickness bags.

Today, Delta will be the first carrier to test drive the service, called Sojern, on its routes into Vegas, but the ads will quickly multiply around that route. Bacteria reproducing in a host body is a good way to think about that.

What I'm most curious about is whether the 3rd party ads will be custom tailored to the specific passenger. Will I, a young male be getting ads for Lane Bryant? Or will Sojern work with the airline to study my travel behavior, look at my past trips and send me a coupon for happy hour in New York?

Either way, you can kiss your old print-at-home boarding passes goodbye. Which is fine with me, as long as they don't raise ticket prices.

Midwest Airlines cuts 40% of workforce

Further adding to the speculation about the future of Midwest Airlines, the embattled airline today announced that it is cutting forty percent of its workforce via furloughs and layoffs. In light of the escalating fuel crisis, this cut follows the announcement that it will be grounding all of its MD-80 aircraft.

Sad news for a small airline that is struggling to make its mark in the ultra competitive and expensive market that currently is the airline industry. Will they make it through the oil surge?

Over the Fourth of July weekend my girlfriend flew Midwest through Kansas City and generally had good things to say about the airline. Seats are nice, leather and spacious while food and beverage is not only existent and free but also quite supple. Her main observation? "There are only like ten people on this flight."

If, even over a holiday weekend, you can't fill up your planes, then you either have a serious pricing or a serious consumer confidence problem. Why? Since many people have been hearing rumors about the airline going under, demand for tickets has probably gone down. What's an airline to do to inspire confidence?

Well, you could always promise 100% refunds on your tickets if you liquidate. With so many people booking flights and losing their money on flops like Skybus and Maxjet, I think that the least they deserve is a guarantee that they'll get their money back if you take the plunge.

Featured Galleries

Catching bats in Costa Rica
Soulard Mardi Gras: St. Louis, Missouri
A drive down Peru's coast
A Chinese tiger farm
Cockpit Chronicles: Versailles Bike Tour
Cockpit Chronicles: Night Bike Tour
Galley Gossip:  Venice (Cannaregio)
GALLEY GOSSIP:  Prepare for takeoff
Cockpit Chronicles: The Tuileries, Seine and Latin Quarter

 

Sponsored Links