I had a completely different post lined up for today, but really, when news like this breaks, it’s hard to stay away. For those who haven’t yet heard, JetBlue will issue a bunch of new shares to Lufthansa giving them 19% of the company for about $300m. So far, there is no relationship between the two airlines in a commercial sense, but Lufthansa will hold a seat on JetBlue’s board, and after listening to their conference call this morning, it’s clear that they want more.

First thought? Enjoy your bitch-slap, United. Oh sure, that young little hussy JetBlue can’t replace you . . . yet, but Lufthansa is clearly not as faithful to you as you might have hoped. Maybe you shouldn’t have let yourself get so out of shape over the years.

Second thought? This is great for JetBlue. They get a bunch of cash, which is nice, and they get some solid external guidance from a very large, profitable European airline on their board. And yes, there are so many opportunities for cooperation here. Sweet.

Third thought? What exactly is Lufthansa thinking? This is why my brain hurts right now. They’ve already got a very strong presence in the US with both United and US Airways in the Star Alliance. Why not buy into them? Maybe they don’t like where things are going with those guys. But point-to-point JetBlue?

Even at the bare minimum, I think this makes sense. JetBlue’s shares, like those of most other airlines right now, are in the toilet. It’s a nice cheap investment that’s made even cheaper by the exchange rate. So, they have a good investment that also can give them a little presence in NYC with even the most basic of interline agreements, something that Star Alliance doesn’t have.

At most, it could be much bigger. I’m not really worried about US Airways in this equation, because they’ve never been a major Star Alliance player. But Lufthansa and United were founding Star members, lovers, and they share revenue on flights over the North Atlantic.

But let’s say that Lufthansa is sick and tired of United not paying attention to their business. Maybe they aren’t happy with management and they want something different. Hello, JetBlue.

United isn’t going to walk away from Lufthansa, because they have nowhere else to go (unless someone buys them). They need Lufthansa and Star more than the other way around. So, Lufthansa can keep United around while JetBlue has the chance to build up its domestic operation into a strong network. Does that take years? Most definitely. Can Lufthansa wait? Yeah, sure.

But what about international flying? Who cares? Right now, Lufthansa has to split Transatlantic revenues with United. So, they can kick them out and do the flying themselves with JetBlue waiting on the other end to fill up their planes. Remember, now with open skies, Lufthansa can fly from anywhere in Europe to anywhere in the US.

What about Pacific routes? Eh, ANA, Thai, Air China, Air India, Singapore . . . the list goes on and on. There are plenty of carriers on the other side that can take care of that market. So, JetBlue can become a major domestic powerhouse and then auf wiedersehen, United. They would lose US government traffic across the pond (since they have to fly US carriers), but I’m not sure how much business that is for them now.

Am I crazy? Probably. But remember, United has been talking about mergers for a long time. They may go run off with someone else and leave Star Alliance anyway. If Tilton can make enough money for him and his investors, don’t think he won’t do it.

Do I think this is going to happen? Nah, but it’s fun to think about it. We’ll probably see something happen that’s more in between these two extremes where Lufthansa gets to play with everyone. Pretty cool.

It’s easy for me to sit here in sunny SoCal and complain when the temps drop into the 60s during the day, but pics like these (which came from a contact at AA) help remind me how lucky I am to live here. These were taken in Tulsa on Monday after the ice storm. Yikes. Something tells me they needed to de-ice before they left.

It wasn’t that long ago that I questioned Virgin America’s decision to focus more on short hauls. Well, they’ve announced their latest city, and once again, they aren’t going far.

This time, the winner is Seattle. They start 3 flights a day from SFO on March 18 and then 3 daily from LAX on April 8. LAX will get a fourth flight on May 11.

They’re definitely staying away from transcon flights. Fuel prices are probably making that a tough market for them. But at least LAX-SEA is a longer haul route so people can enjoy the onboard amenities. Only problem? Alaska Airlines.

People in the Pacific Northwest tend to actually like Alaska Airlines. You don’t hear that about airlines very often, but this is an exception. Can VX really go up against these guys? Their biggest problem, as it has been in every market they’ve entered, is lack of frequency. In this case, Alaska smokes them with 12 daily from LAX to SEA and 8 daily from SFO. That, of course, doesn’t include 19 flights to four other LA Basin airports and 13 to other Bay Area airports.

Yes, VX will be dropping prices when they enter, but you know Alaska will match (they probably have already). This one isn’t going to be easy.

This one is just mind-boggling. US Airways has quietly slipped in a $5 surcharge when you book flights at usairways.com, their own f*&*’n website! I’m not sure when it started, but it had to have been recently. Combine this with the expiration of the online booking bonus at the end of November and they have not only eliminated any incentive to book on the website, they’ve actually created disincentives. Add in the fact that they bury this surcharge into the base fare so you won’t find out it’s there and US Airways gets the first fire-red-with-anger Cranky Jackass.

First of all, let me show you what I found. I always participate in the Phoenix HeartWalk every spring, so I looked up flight options from Long Beach to Phoenix leaving Feb 29 and returning Mar 2. I usually start with a metasearch site like Kayak or Sidestep and then go directly to the website for booking. This time, I tried Farecast and saw this:

I clicked through to US Airways and the price didn’t show up as $117 but rather $122.30, as you can see here:

I started trying to figure out what was going on, so I looked around at a bunch of other sites. You can see I’ve cobbled together the prices from the OTAs below:

They’re all also $122.30 except for Orbitz with its penny rounding error and Priceline with its $117.30 price. So while Orbitz, Travelocity, and Expedia add their $5 service fee, US Airways has quietly decided to do the same for bookings on their own site. What’s even more shady about this entire thing is that US Airways has buried it into the base fare so you would never know that you were paying $5 more than the base price. And since Priceline no longer has booking fees, you can actually get the flight for less money by booking on Priceline.

Now my curiosity got the better of me, so I called up reservations to see what they’d say. They told me that fare would be $122.65 plus a $10 reservation fee. I have no idea how they ended up being $.35 more than anywhere else, but it’s clear the $5 fee applies to phone reservations as well. And that’s on top of the $10 fee they already charge. At this point I decided to see if I could get to the bottom of this, so I opened up the KVS Availability Tool and looked at the surcharge fare rules in the SABRE system. Unfortunately, this is what it gave me:

Though this won’t show me the surcharge, I have to think there is one in there or it wouldn’t be hidden from agency view.

This makes absolutely no sense to me on so many levels. First of all, all US airlines, including US Airways, have spent years trying to convince customers that the best place to go to find the cheapest fare is their own websites. It was an unwritten agreement between airline and customer that you could go to the website and not find it cheaper anywhere else except for possibly from the stray consolidator or when packaged with hotels and car rentals. Now, US Airways has decided to chuck that right out the window. The years and money they’ve spent on building up that reputation have been flushed right down the toilet. And the fact that they try to hide it in the base fare so the customer can’t see it makes it even worse.

What does this mean to me? Well, if I do fly US Airways (and this does make me slightly less likely to do so), I’ll book at Priceline. There’s no reason to spend more money to buy on the US website if I can get it cheaper elsewhere.

Did they really think people wouldn’t find out about this? Did they think they could charge more and nobody would change their behavior? I asked my PR contact at the airline and he wasn’t aware that this was happening he said “the $5 increase you’re seeing is essentially a fare increase to fares booked at usairways.com.” (updated 12/11 @ 1002p)

I’m sure they’ve done the calculations. They’re smart people. The bet is that they can make more money with that $5 hidden surcharge than they’ll lose from people ditching the airline, migrating to Priceline for cheaper fares, or booking via other OTAs for more amenities and better service. Sadly, that bet is probably right in the short term and potentially right even in the long term but that’s harder to predict. That’s why if they had done this so that people could clearly see the fee, it might be hard for me to argue even though I don’t agree with the decision. But the sneaky nature of this just leaves me feeling cheated.

What does this mean for the OTAs? Will Priceline re-institute a booking fee or will they continue to have a price advantage? If I were Priceline, I’d keep the advantage and enjoy the influx of people who will book on the site. But you have to think that US Airways will pressure them to add a fee again. If not, lower back-end commissions may be in their future. (I’m assuming they still get some.) For all the other OTAs, well, things just got interesting. Many of them offer customer service above and beyond what customers get through the airline, so if the price is the same, why not get more for your money by booking through OTAs?

And what about the metasearch guys? After I found that issue on Farecast, I looked at Kayak and Sidestep as well, but USAirways.com didn’t even show up as a seller. Maybe US Airways will plan on backing away from all metasearch guys now that they won’t look as competitive as they did before. If not, metasearch sites like Farecast will have to adjust their USAirways.com fares by $5 to be accurate.

Wow. This one is just incredible.

It’s been a long time since I put one of these together, but there were so many, well, random bits of info around that I decided to do it this way today. Unfortunately, most of the news is bad today as some routes and even some airlines becomes endangered species.

It would be nice to have some happier news, but, well, at least I’ve tried to end on a high note at the bottom. Just be glad you aren’t stuck in the ice storms in the middle of the country. (If you are stuck in those storms, well, um, I’ve got nothing.)

• Delta’s LAX Hub – Looks like Delta is pulling down some LAX flying. Just after the new year, nonstops to Columbus, Jacksonville, Raleigh/Durham and more disappear. Sure, some of them seem to come back in a few months, but I wouldn’t put money down on that staying put. Interesting that Skybus flies from Columbus and Greensboro to the LA Area. I’m not convinced these are connected, but it could very well be the straw that broke the camel’s back. More likely, Delta’s realizing that LAX isn’t working for them as well as they’d hoped.




• United’s Intra-LA Basin Flying – There’s nothing more fun for an airline/LA dork than flying from Ontario or Orange County to LAX. I’ve flown the latter, and it’s a great ride. You depart Orange County to the south and then make a big backwards “S” before landing at LAX shortly after departing. Sadly, those days are numbered as both routes get the axe from United. Those little Brasilias are going to be phased out, and these short hauls had to get the axe first, especially with fuel prices where they are.




• Icelandair’s Home in North America – Icelandair may still have their US headquarters outside of Baltimore for now, but as of early January, they will no longer actually FLY to Baltimore. In my college days, my friends and I took a far-too-cheap Spring Break trip from BWI to Glasgow for 3 nights and then Reykjavik for three nights. Why was it cheap? Um. Iceland in March? Exactly. The flights were great, but the hostel that doubled as a homeless shelter left much to be desired. BWI will miss you, Icelandair.




• MAXjet – We knew MAXjet was losing a bunch of money, but the recent request to have shares suspended from trading made the situation seem much more dire. Mark over at Upgrade: Travel Better has good coverage of this. Hopefully they’ll keep going . . . I haven’t had a chance to try them yet.




• Emirates Across the Pond – Those Dubai runs may be working well for Emirates (check out Towers and Tarmacs’ coverage of the Houston inaugural), but apparently that one run from New York that goes through Hamburg is getting killed. Don’t worry. The few of you who want to go from New York to Hamburg can still fly from Newark on Continental.

See, lots of doom and gloom. Let’s try to end on a happier note. Delta put out their latest in their Planeguage video series, and this is a great one. Every time I get an empty middle on a full flight, it does seem like divine intervention. Though sadly, the first question I had after watching this video was, “How did they get all those wrapped presents past the TSA?!” Enjoy.