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Sunday, July 30, 2006

Airports: They Wreck the Air Travel Experience

Yesterday I flew United Airlines from Boston to Spokane, Washington via Denver. The flight itself was quite enjoyable. The check-in process was not.

Of course, United's check-in facilities in Boston were crowded, even at 6:45 in the morning. I spent close to half an hour waiting in line, and saw one check-in person even go on break and return fifteen minutes later, when there were still lots of people waiting to be processed. By the time my bags were checked and my boarding pass was handed to me, it was 7:15 - running quite a bit late for a 7:55 flight!

Then came that awful reality of air travel nowadays - the dreaded security line. I would have missed my flight had the security woman allowed us to cut in front of everyone else upon seeing my boarding pass.

Then, after being whisked through security, I showed up at the gate only to realize that the plane that that I was supposed to take to Denver had not yet arrived. Instead, a Ted (United's low-fare subsidiary) aircraft would be flying our route. And that meant that they had to deplane and clean the plane too (even though you can't notice the difference if they clean the plane or not). All that time spent worrying and looking at the clock had gone to waste!

Of course, the flights themselves were nice. United has a fabulous terminal at Denver, and the process of switching flights was not stressful at all. But I find that the check in process is always the most stressful of the air travel experience, along with security.

Friday, July 28, 2006

Best Airline TV Ad?

Here's a post that I hope some of the readers of this blog will get involved in: what, in your opinion, is the best airline TV ad ever? Even notable or just interesting ones would be nice to list. If possible, I'll try to find it online and post it here. (Please add your response in the form of a comment.)

Here are some interesting ones. Note that the first two don't feature aircraft too prominately:

Aeroflot:


Air France (1999):


Braniff Airways (1975:)


United Airlines (1994):

Delta Buys NYC-London Route From United

Delta Air Lines announced that it would purchase United's JFK-London route authority for up to $21 million, pending approval from the Department of Transportation and bankruptcy court (Delta is still in Chapter 11).

Delta has been trying unsucessfully to fly this route for over a decade. It has an international hub at JFK and flies to many European destinations from the airport but has yet to serve London. If all goes well, it plans to start its first service to London's Gatwick (not Heathrow) airport later this year and add flights next year.

Of course, if the route wasn't profitable for United then I would see reason to sell it off. But hopefully this won't turn out to be a repeat of the 1991 disaster where TWA sold it's JFK-London Heathrow authorities to American Airlines for some quick cash. In the short term, the deal paid off, but TWA really made lots more money on the route than they sold it for, and American pulled off a great deal at TWA's expense.

Also of note: United flew the route from JFK to London's Heathrow Airport, which is the city's primary international gateway and on the shortlist of the world's busiest airports. But under some law, only United and American are allowed to fly into Heathrow, since they purchased their route authorities from Pan Am and TWA, respectively. The other US carriers - like Delta, for example - have to go into Gatwick.

Clickair To Be Iberia's New LCC Product

Spanish flag-carrier Iberia has announced that its new low-cost carrier's name will be Clickair. The low-cost airline was originally called Catair, it being based in Barcelona, but in a statement Clickair said that the reason behind the change was that it had to do with computers, since its main sales medium will be the internet. (Strategic Name Development has more on the name change.)

However, Clickair's future may be shaky. Pilots at Iberia, concerned about salaries and job security, threatened a week-long strike last week, even though it was called off after promises of job security. However, the flight crews have not yet recieved their much sought-after wage increases.

And in bigger news, earlier today Iberia ground staff blocked one of three runways at the Barcelona airport to stage a protest after the Iberia lost a license to operate ground handling operations. They used buses and other vehicles to block the runway. This loss of the contract could be a major problem for Clickair's future, as the low cost airline had expected to share ground handling operations with Iberia (and thus save a lot of money).

Monday, July 24, 2006

United Posts Profit, Stays in Chicago

Chicago's Mayor Daley must be thrillled.

United Airlines, Chicago's self-proclaimed Hometown Airline, announced this morning that, after an amazing six years (!) of losses, the company was finally posting a (preliminary) modest quarterly profit. The reason? Mostly higher ticket prices and strong demand, two factors that have helped push up black ink (or at least stem the flow of the red ink) industry-wide. After this morning's announcement, the company's shares jumped up to thirteen percent.

United also announced on Saturday that it plans to move its headquarters from Elk Grove Township, Illinois to downtown Chicago, defeating rumors and speculation that it would move to Denver or San Francisco. Of course, like any Big Company Moving to Chicago (think: Boeing in 2001), United certainly got its fair share of goodies: $5.25 million in tax financing and $1.35 million in job grants from the Illinois Department of Commerce and Economic Opportunity.

These two announcements have to be good news for the company. The announcement of a profit, no matter how small, is the first in six years, and should help to ease the fears of shareholders, some of whom have seen their share prices fall from $43.00/share back in January to as little as $25.88/share last month.

And the announcement that United will stay in Chicago is good news for the company and the city; the company will get a bunch of benefits and the city will get the taxes.

And how could United be United if it wasn't based in Chicago?