Browsing Posts published in July, 2011

Secrets to avoiding flight delaysCNN Out of the Office
CNN may call these secrets, but a lot of it is just common sense. Still, here are some good tips for avoiding delays.

In the Trenches: To Train or Not To Train?Intuit Small Business Blog
Finding someone who can really use a GDS is a tough thing to do.

Southwest rolled out its latest schedule extension this week, and along the way it decided to axe some flights. Boise and Philly are hardest hit losing three and four nonstop short haul routes respectively. What’s your take on these moves?

I’ve written many times about the US Airline Pilots Association (USAPA), and it’s never been in a good light. This week, the group which represents the pilots at US Airways has once again topped itself by taking out a full page ad in USA Today talking about how US Airways is unsafe. Though there are other groups in the running, I think USAPA has demonstrated that it is the most ineffective, poorly run union group out there. For Cranky Jackass Awardthe misguided representation it provides its pilots, USAPA gets the Cranky Jackass award. This has been a long time coming.

You may already know the story. USAPA was created when the US Airways “East” (pre-merger US Airways) pilots didn’t like the seniority agreement that was decided upon in binding arbitration (yes, “binding” is apparently a loose term) with the US Airways “West” (pre-merger America West) pilots. So they marched off and voted in a new union, casting off the arbitration result. The West pilots didn’t like that (it’s been working its way through the courts), but they didn’t have the numbers to prevent the move. You can read more of the history here. In short, USAPA has done absolutely nothing good for its members, but it wrongly likes to blame US Airways management for its failings.

And that brings us to USAPA’s current strategy . . . try to burn down the company and apparently put all of its members out of a job.

The latest shameful tactic is the taking out of a full page ad in USA Today claiming that US Airways is unsafe. Let’s see. You work for an airline that pays your salary with revenue that comes in the door, and now you’re going to turn around and try to shut off that revenue by falsely claiming your airline is unsafe? Simply pathetic. It’s such a blatant negotiating tactic, but how will the general public react? That’s unclear, though this hasn’t received much press at all considering all the more important “real” news in the aviation world in the last week.

The ad itself used a single pilot incident that happened on June 16 to show the supposed danger of flying the airline. Apparently there was a flight scheduled to cross the Atlantic from Philly that evening and there were a couple of mechanical issues. There are some mechanical issues that aren’t considered crucial to be fixed, and that appears to be the case here, but the captain refused to fly the airplane and then, according to the union, she was escorted out of the airport by corporate security. The next crew refused to fly the airplane as well. Over the next couple hours, some maintenance work was done and the airplane went on its way with a third crew.

This is why the union says US Airways is an unsafe airline. It says the airline is intimidating its pilots and pushing them to fly even if it’s not safe. Then if they refuse, it has security remove them. Sounds bad, right? Too bad it’s a crock.

Now, regarding the mechanical incident itself, I don’t know whether the captain did the right thing by refusing to fly the airplane. I do know that the FAA found US Airways did nothing wrong. Here’s the statement:

The FAA manager assigned to the US Airways certificate reviewed the June 16, 2011 incident. The APU shutdown the aircraft experienced is a failure that pilots are well aware can happen and that they are trained to recognize. The battery apparently was depleted by attempts to restart the APU. Flying an aircraft with an inoperative APU is not an unusual event and normally poses no safety issues when proper limitations are applied. The Captain simply chose to exercise her pilot-in-command authority of not accepting an aircraft. Our information indicates that US Airways followed their approved MEL procedures, and all maintenance procedures were followed in accordance with the operator’s approved maintenance program. We found no violations of Federal Aviation Regulations.

That being said, if a captain doesn’t feel comfortable flying an airplane, then it’s his or her right to deny it. The problem arises when that privilege is abused just to delay or cancel flights without good reason. I’m not saying that happened here. I don’t know, and frankly, it’s not central to my point. I have no problem in theory with her walking away from the flight.

But why would security come escort the captain from the airport? USAPA wants you to believe it’s because she refused to fly the airplane. Not quite. According to US Airways, “the Captain was escorted out of the airport by corporate security (after being released from duty) not for her refusal to fly but for her comments made to customers regarding the safety of the aircraft.” Unfortunately, I don’t know details about what she said to the passengers, but it was apparently highly inappropriate. See more in this a.net discussion. I would have had her carted off the airplane as well.

In reality, there is nothing pointing to US Airways being unsafe but rather more evidence of the airline having good safety practices. It recently passed the IATA Operational Safety Audit, for example. But that won’t stop the union from trying to sully the airline’s reputation. (Get it? Sully? I crack myself up.)

In the end, USAPA simply wants to damage US Airways as if this will somehow convince the airline to throw a ton of money at the union and solve all its problems. Unfortunately, the union needs to solve its own problems regarding seniority before it can even be ready to talk to management, and it doesn’t seem any closer to doing so. I feel really bad for those pilots who never even wanted this union to represent them in the first place. This whole thing is simply pathetic and more than worthy of the Cranky Jackass Award.

[Thanks to Johosofat for the excellent Cranky Jackass Award]

After years of back and forth, the Department of Transportation has finally decided to do the right thing and let US Airways trade a host of slots at New York’s La Guardia for a bunch of Delta’s slots at Washington National Airport. This swap is not a simple transaction. There are a lot of logistics behind it, and it took major creativity and commitment from both parties to make something like this work. Hopefully American is taking notice. And I say that not because Delta has made a move that will once again hurt American in New York, but rather because American needs to get off its butt and start doing some bold things like this to fix its business.

American Acts Like a Sloth

After last week’s post on American’s decision to order 460 new airplanes, I had some great offline conversations with people about it. I still stand by my belief that it was a good move. I have no doubt American beat up the manufacturers to get a great deal, and it will certainly help to lower operating costs when the airplanes start coming in, probably at little to no additional cost to American. But that doesn’t mean that American’s problems are solved. If American thinks this is the solution, and I really can’t imagine that’s the case, then the airline is screwed. This doesn’t touch American’s revenue problems at all.

The news that Delta and US Airways received approval of the slot swap provids a great contrast between Delta/US Airways and American. Delta and US Airways have been very proactive at doing the right thing and improving their respective businesses. For US Airways, it’s been all about focusing the business on reliability, convenience, and appearance while re-forming the route network to fit its strengths. US Airways shut down the money-losing Vegas operation. It got rid of all the non-hub flying on the east coast that was a drain. It cleaned up its airplanes, and focused on on time performance. And now, it’s ditched its turboprop-based hub at La Guardia in favor of strengthening its position at Washington’s National Airport where it’s a much stronger player and can draw better revenue.

For Delta, the change has been no less significant. It has pulled down flying at minor hubs like Cincinnati and more recently Memphis. It’s parking smaller airplanes and cutting service to small cities that simply aren’t profitable. The airline built up a more comprehensive premium product and has worked on setting product standards from its 70 seaters on up. It has positioned itself as a technology leader in a variety of ways, and it has worked hard to improve the airport experience. Now, it can trade its Washington position in order to strengthen its already strong capabilities in New York.

For both US Airways and Delta, this is yet another effort to play to their strengths, and it’s going to provide a great deal of benefit to both. Let’s contrast that with American.

Instead of doing hard work on its own, American is relying on partners to fix its problems. It has put its eggs in the joint venture basket – saying that its partnerships with British Airways/Iberia as well as with Japan Air Lines will spike revenues. It’s built up a partnership with JetBlue to feed its flights in New York and Boston. That’s nice, but it doesn’t fix the structural problems. It’s just a patch.

If you didn’t see the investor report issued by Bob McAdoo back in May, then you missed out on a scathing review. Bob noted some very simple things, like the fact that American’s 10 worst routes lose about $450 million a year, more now that oil has spiked. He uses Chicago to London as an example. American gets a much lower fare than United but it flies larger airplanes and has more frequencies. The same goes from JFK to LA and San Francisco. The average fare to LA has dropped over $100 since 2000 but the level of service stays the same, losing money all along the way.

Instead of addressing these big problems, American pokes around the edges. Sure, it made some moves, like slowly killing the San Juan hub, and cutting some vestigial flying, but it’s been mostly minor changes. It stops flying routes like San Francisco to Honolulu and starts flying to Helsinki and calls that a strategy. (This week, it’s building up Ft Lauderdale a little. Woohoo.) It has its cornerstone strategy of focusing on LA, Dallas, Chicago, New York, and Miami. That’s fine. But instead of just culling service around those cities, it seems the problem is how American serves those cities in the first place, at least that’s what the McAdoo report makes very clear. Then there’s New York. Delta has made huge strides in New York, and it will now have a ton of new service from La Guardia to offer up to its corporate clients. American stands still.

It’s not just the route network but the onboard product as well. The most glaring deficiency is that American is the only long haul domestic airline without a plan for flat beds in business class. It rolled out its substandard business class about the time United went fully flat, so it was obsolete from the start, and nothing has changed. Even US Airways has been actively rolling out flat beds.

Even when American has been a leader, it’s quickly fallen behind. It was an early adopter of gogo inflight internet, but it only put it on a limited portion of the fleet. While Delta put it everywhere, American stuttered and is only now catching up. Hopefully some of its more forward-thinking moves, like working on streaming video with gogo will actually go past the testing stage and give the airline a leadership position in . . . something.

I’m sure many of you will say a merger is the answer, but it’s most definitely not. American’s costs are higher than any potential merger partner, so it would effectively kill an airline that works well today on its own. The math becomes 1+1=0.5 if they were to do an ill-advised combo. So the weight falls squarely on American to do the hard work. It has spent a lot of time raising cash, but it keeps losing money while others profit. Instead of slowly bleeding cash, American needs to invest that money into fixing its problems.

The airline might want to take a hint from its partner Qantas, which is about to make some major changes on August 24 in order to get its house in order. Will these be popular? Not all, but that’s not the point. The point is turning the business around at all costs.

Get bold, American. Do something to get those revenues jumping.

Congress has once again shown its inability to get anything done by actually letting the FAA reauthorization bill expire. What does that mean? Well, when Friday ended, so did the FAA, at least temporarily. Different airlines have used different tactics to profit, but for the general public, there is no benefit to this impasse at all. To be honest, the entire situation is simply pathetic.

Congress Earns Its Dunce Cap

Politics has gotten in the way of progress, probably to the surprise of nobody. The FAA has continued to be funded over the last few years with a series of extensions because Congress couldn’t agree on a new reauthorization, something that’s desperately needed so that we can move forward with programs like next generation air traffic control. While both sides of the aisle squabble over the details, at least they were smart enough to keep issuing extensions to keep the wheels of FAA going. This time, they apparently decided to take a stand and let it expire.

What’s the upshot? Until the FAA is reauthorized, all non-essential employees are laid off. (Yes, air traffic controllers still work and air travel remains unaffected operationally.) Funds for federally-assisted projects also dry up until this is done, so construction projects around the nation lie in peril. On top of that, the FAA no longer has the ability to collect taxes. This is a bonanza for airlines and sometimes for customers.

There are two distinct camps in the airline industry. Some took this as an opportunity to implement a “fare increase.” I put that in quotes, because the fare paid by the customer doesn’t change – it’s just that the airlines increased fares to replace the amount no longer being paid in tax. All of the bigger airlines are doing this, including Southwest and JetBlue. (Airline Reporter is keeping tabs on this in detail.)

The little guys, on the other hand, are just passing on the savings to customers and they’re not being shy about talking about it. The airlines in this camp include Alaska, Frontier, Hawaiian, Virgin America, and Spirit. Spirit is probably the most interesting, because it is using this as an opportunity to promote two things. One, it says it’s on the side of the people by passing back the savings and being transparent about it. Two, it’s encouraging people to write to their reps to tell the feds to allow taxes to be broken out in the future. (This is scheduled to change in the near future as part of new regulations from the DOT.)

You have to hand it to Spirit. When Spirit implements a new fee, it usually lowers fares. And when the feds stop charging taxes, Spirit gives it right back. This really does make Spirit look good, though to be honest I can’t blame the other airlines for trying to get a revenue spike at the same time. In other words, all airlines will get a temporary benefit one way or the other.

With any luck, this will end sooner rather than later and we can finally get moving forward with important projects. What’s the hold up anyway? It seems to be two things right now, and both are political games. First is over Essential Air Service Funding. The Republicans approved a bill that would change which cities would be eligible, and it just happens to leave out airports in important Democratic districts. The other is over union issues. Democrats pushed through a change before that made it easier for unions to organize at airlines. Republicans are trying to reverse that.

For an agency which has a multi-billion dollar budget, these little skirmishes are a complete joke and should in no way hold anything this important from going through. Unfortunately, that seems to be the way Congress works. So, take advantage of the tax decrease on those airlines that let you, and just shake your head at the incompetence in Washington for letting something like this happen.



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