Cranky on the Web (November 24 – 28)

What are Scope Clauses and Why Are People Fighting Over Them? – BNET
If you’ve heard people talking about scope clauses and wondered what they are, here’s your guide.

Think a Lot of People are Using Wifi In the Air? Think Again – BNET
Runway Girl Mary Kirby caught on to some numbers that AirCell mentioned regarding onboard wifi usage. They’re pretty low.

Hey Los Angeles: Customers Pay for Airports Improvements Regardless of How They’re Structured – BNET
The LA City Council just voted to support an increase in the Passenger Facility Charge. That comes straight out of your pocket, and it’s not a great idea.

US Airways Adds Cash for the Next Couple Winters, Defers Airplanes – BNET
Yes, US Airways has done it again. They’ve played with the cash gods and walked away with more in their pocket. This time it’s mostly expense reduction via aircraft delays.

Brett

3 responses to “Cranky on the Web (November 24 – 28)”

myriam

Nov 30, 2009

So CF, what are your thoughts on the USAirways thing? Good idea? Is there any kind of long-term fallout when an airline defers deliveries?

Reply
Dan

Nov 30, 2009

Crank,

So, do you really think that increasing the PFC’s by $3 at LAX is going to cause the passengers to leave in droves?

Also, did you mean to say that the city council has no legal right to raise the max PFC? If not, then who does?

Reply
CF

Nov 30, 2009

myriam wrote:

So CF, what are your thoughts on the USAirways thing? Good idea? Is there any kind of long-term fallout when an airline defers deliveries?

I think it’s a smart move. There’s no reason to spend that cash if they can keep the old aircraft for longer. It’s just a good cash management strategy, and cash management is pretty important right now.

Dan wrote:

Crank,
So, do you really think that increasing the PFC’s by $3 at LAX is going to cause the passengers to leave in droves?
Also, did you mean to say that the city council has no legal right to raise the max PFC? If not, then who does?

The point is that raising PFCs are ultimately the same as raising rates for the airlines. The customer has to pay in the end. So a PFC is not like finding magic money. Remember, this isn’t just like having an extra $3 on a ticket. That was the same rationale used when they first put this thing out there. It’s just a continued increase in fees that are out of the control of the airline. And remember, if it’s at a connecting airport, you will get charge twice on a roundtrip. If airlines could just raise all fares $3 across the board, then they’d do it.

Right now, the feds have capped the PFC at $4.50, so it takes action on their part to be able to increase it above that point. That’s what’s being debated in Congress with the FAA reauthorization.

Reply

Cranky on the Web (November 24 – 28)

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3 responses to “Cranky on the Web (November 24 – 28)”

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