The topic has been raised here recently a couple of times. After decades of including prayer cards with meal trays, Alaska has decided to discontinue the practice. It had been reduced in scope when free meals disappeared from the coach cabin, but it was still in First Class meals. Do you agree that they should be gone? Read the full text of the decision here.

Earlier this week, I had the chance to tag along on a media tour of the progress being made on the new Bradley Terminal concourse at LAX. It’s a big, impressive terminal, that’s for sure. I just wish they hadn’t wasted quite so much money. (I know, I know, I sound like a broken record.)

Looking Northeast Toward the New Bradley Terminal Concourse

Let’s start with a brief history. If you’ve never been to the Bradley Terminal at the western end of the horseshoe of terminals at LAX, you know that once you get past security, the concourse are very small with limited seating and almost non-existent amenities. It really is a poor experience, and I think few would argue that something new was needed. LA World Airports (LAWA) spent over $700 million fixing up the pre-security area (ticket counters, etc), but the concourse needed to go, so they came up with a plan to knock down the existing concourse and build an all new one immediately behind it.

When I wrote about this in 2008, it was expected to open with 14 gates beginning this month. The entire project was around $2 billion, which included a new taxiway, fire station, etc. The price hasn’t changed much (the terminal will now be $1.7 billion on its own without the other improvements) but one more gate was added (plus 3 existing gates that are staying for a total of 18) and it has slipped a year. The first phase will open in March 2013.

For those who prefer visuals, take a look at this 2:49 video walkthrough of the project. Then stick around for the explanation.

Travelers will enter as they do today, into the main ticketing area. But instead of going either to the left or to the right to get into one of the two security lines, there will be a new central security area that feeds into the new concourse. Once you go through security, you’ll come out into the Great Hall.

Looking North

This is where all the big shops, restaurants, and lounges will be. They kept talking about it being a town square, or something like that. To the north, there will be a short concourse with a larger one to the south. You can see this area under the shorter ceilings.

From North to South

Travelers will all board through the same gate entrance, but some will walk immediately upstairs to board on the upper deck if on an A380 while other stay downstairs. That might be a bottleneck. Arriving passengers will get off the airplane and then promptly go UPstairs. There will be a glassed-in sterile corridor that goes above the departure gates for arriving passengers. They’ll walk to the middle of the terminal where they’ll have to then go all the way back down to the basement for customs. It’s a lot of up and down.

When it first opens, the 10 gates on the west side of the building will be operational. The east gates will have to wait until they demolish the old concourse, which they will do one side at a time so that they can keep enough gates operating.

On the very northern end, three gates from the old concourse will actually remain and will be attached via a walkway at that end. Why? Because the LAX master plan has a line north of which no building will occur. That’s for future plans to separate the runways further for safety purposes. Even though new construction can’t occur, old construction is grandfathered in. So they’re keeping those three gates, as awkward as it might seem.

Eventually, there will also be connectors between the Bradley Terminal to Terminals 3 and 4 behind security to make for better connections. If they could only open up that Terminal 4-5 connector, the entire airport would be connected behind security except for Terminals 1 and 2.

Bradley Terminal Model Overview
Photo courtesy of LAWA

So is it worth the $1.7 billion (part of a larger $4 billion+ renovation at the airport)? No. I mean, the new terminal was needed, but did they really need to spend so much money on this crazy roof? I’m sure they could have gotten something just as light and airy but without looking like a copy of Mexico City’s Terminal 1 for a lot less.

The airport CEO, Gina Marie Lindsey, keeps hammering on how this takes no money from the LA general fund so it costs taxpayers nothing. Yeah, right. That money ends up coming from higher operating costs. According to Gina Marie, the cost per enplanement at the airport will rise from $12 today to “only” $17 somewhere around 2016. I’d be amazed if that held true considering the $4 billion being spent, but even if it does, that $5 per head will be problematic, especially for domestic flights.

Gina Marie was quick to say that they were working to spread the cost of these projects around the entire airport. That means that Southwest, sitting alone in Terminal 1, will still have to pay for some of this even though it gets none of the benefit. Oh, I’m sorry, airport officials kept dismissing my questioning along those lines with “everyone benefits from a better airport.” I’d like to see what the airlines say about that.

While international carriers will grin and bear it, the domestic guys, especially those flying shorter haul flights, could see real pressure on some flights. I don’t dispute that much of this work needed to be done; I just wish there was more concern about cost control in order to keep as many flights viable as possible.

But hey, what’s done is done at this point. We’ll see how things look next March when the concourse opens for business.

[See more of my photos on Flickr]

When the news broke that Delta was sniffing around the possibility of making a bid for American while it sits in bankruptcy, there were a lot of people shaking their heads, thinking that the mere thought was ridiculous. I couldn’t disagree more. Delta could and should have a real interest here.

Delta is Crazy Like a Fox

What we’re seeing is Delta being really smart, and really aggressive. That’s fun to watch from an airline that used to just be a sleepy old Southerner. The first thing people say about this is . . . there’s no way it would pass anti-trust review. But is that true? I’m not an expert in anti-trust law, but I have no doubt that Delta has been actively working with its lawyers to see what would work and what wouldn’t. If Delta is truly expressing an interest, then it’s done its homework to make sure that it would even be a possibility under the law.

I think the key here is that I imagine Delta isn’t entirely interested in walking away with all of American. Remember when I first wrote about how US Airways should buy American, I suggested that maybe US Airways wouldn’t have much interest in LA or New York? Well, guess who would be interested? That’s right, Delta.

In LA, the market is highly fragmented. I can’t imagine any sort of anti-trust concern if Delta took over American’s operation there. It might even benefit LA by finally building up a stronger single carrier. Sure, the Asian oneworld partners would have a fit, but that’s not Delta’s problem, or the US government’s.

In New York, it might be a tougher sell, but it’s not really that much of a stretch. At JFK, JetBlue carries around 40 percent of the passengers already. So Delta and American combined wouldn’t be a monopoly by any measure. LaGuardia would probably be more of a concern, but the DOT could require some more slots to be auctioned off to low cost carriers and fix that problem right up. I’m sure Delta would be happy to comply if it means eliminating a full service competitor and sprinkling the slots around to other low cost guys.

Of course, this is just one possible scenario, Delta might want Miami as well here, or some other pieces. The point is that the default assumption that the big three airlines can’t combine isn’t true. There are creative ways that they could try to come together with other entities to make a proposal that could work. With American in bankruptcy, it’s really anybody’s game to win, except American’s.

Sure, American could stay as a standalone entity, but the oddsmakers (analysts) aren’t giving that a good chance of happening. When you go into bankruptcy, you lose absolute control of your company. That doesn’t mean that you can’t get out unscathed, but it means that others are going to take a real shot.

Do I think it would be better if Delta bought American? Nah. I mean, I think it’s good to have three large airlines in three separate airlines that can compete with each other. That doesn’t mean, however, that I’m against bits and pieces being moved around to make each remaining airline stronger. But would American be able to survive if Delta took New York and LA?

I don’t see why it couldn’t work if US Airways took the rest. Were I the surviving American in this case, I’d look to buy Alaska Airlines immediately to solidify at least one strong position on the west coast and take that partnership away from Delta. Not sure if that could happen or not, but the point is that there are opportunities for three large airlines to survive even if Delta “buys” American in some fashion.

Will it happen? I have no clue, but Delta would be stupid not to be sniffing around. (And in case you were wondering, United would be stupid TO be sniffing around because it’s hands are very full right now.)


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