Air Travel News

Cincinnati/Northern Kentucky has had quite a come-down since its glory days as a major hub for Delta Air Lines – so much so that it is now studying whether it should downsize its physical presence from three terminals to just one.

The Cincinnati Enquirer reports that the airport has commissioned an architectural consulting firm to investigate that possibility. The airport already has plans to consolidate all of its airline tenants into Terminal 3 by the middle of next year, moving five carriers out of Terminal 2 into Terminal 3’s Concourse A; Delta already operates out of Terminal 3’s Concourse B. The Terminal 1 building is currently used only for administrative offices.

As expected, a travel distribution technology firm has introduced a new online calculator that consumers can use to figure out how much they’ll have to pay for checked baggage – no matter what it is, or which airline it’s going on.

Farelogix, based in Miami and Toronto, said the new web site is at www.iflybags.com, and promised it can handle calculations on everything “from scuba equipment and oversized luggage to golf clubs and guitars.” The company said the new calculator is updated every hour, so any changes in fee policies are quickly captured, with data from more than 300 airlines worldwide.

In U.S. airline news, JetBlue has added another international carrier to its collection of interline partners; American Airlines is adding a mileage partnership with a leading carrier from India; airlines name the busiest travel days around Thanksgiving; and Spirit Airlines flight attendants vote to authorize a strike.

• JetBlue’s newest interline partner is India’s Jet Airways, which offers daily non-stops from New York JFK to Brussels and onward travel to Delhi, Mumbai and Chennai. From those gateways, connections are available to 53 cities within India. The partnership means customers can book a JetBlue-Jet Airways connecting itinerary on a single ticket, with one-stop check-in and baggage transfer. Interline trips can be booked online, through travel agents, or through Jet Airways reservations lines.

The U.S. House of Representatives last week passed a bill ordering the Transportation Department to bar American carriers from participation in a controversial European carbon cap-and-trade program due to start next year – but the Europeans say that won’t change their plans.

The new E.U. law brings all airlines – European and foreign -- into its existing cap-and-trade scheme, by which companies must acquire emissions permits for greenhouse gas production. In the first year, airlines would get up to 85 percent of the emission permits for free, but over time the scheme could add to airlines’ costs and potentially raise the price of air travel.

The controversial part is that the law covers all airlines flying into the E.U., and the carbon measurements are based on their flights’ full itineraries – even the part that doesn’t occur over European airspace. Major international airlines worldwide have protested the program’s expansion, and the U.S. House passed a measure last week that would protect American airlines from being subjected to what is essentially a unilateral carbon tax.

According to press reports from Europe, an E.U. official said after the House vote that Europe will not change its legislation, although it is open to discussion on the matter. The House-passed bill still requires Senate approval and the President’s signature before it becomes law.

The airline industry and some foreign governments have argued that any effort to control greenhouse gases by the aviation industry should be global in scope. U.S. airlines filed a lawsuit in Europe challenging the new E.U. law, but it appeared headed for defeat last month. Some observers have expressed concern that failure to resolve the issue could lead to other nations retaliating by imposing their own emissions laws on airlines, leading to a global trade war.

In U.S. airline news last week, three of the nation’s largest carriers turned in solid profits for the third quarter; American takes on a new code-share partner in the Pacific; Delta outranks other airlines in revenues from checked bag fees; Virgin America changes weight limit for checked bags; and Frontier’s parent is said to be looking for new ways to raise cash.

• While American Airlines continues to bleed red ink despite the ongoing recovery, its major competitors were solidly in the black for the third quarter, although in some cases their results slipped from last year’s. Delta turned in net income for the quarter of $549 million, up from $366 million a year earlier. Delta’s traffic fell slightly, but higher fares gave it an 11 percent increase in revenue per passenger. United Continental reported a third quarter profit of $773 million, down 14 percent from a year ago; and US Airways said its net income fell by 68 percent year-over-year to $76 million. Both companies cited much higher jet fuel costs – 33 percent higher at United Continental and 45 percent at US Airways.

• The newest code-sharing partner for American Airlines is Air Pacific, based in Fiji. American said that after government approvals are obtained – expected in 30 to 60 days -- it will put its AA code on Air Pacific’s Los Angeles-Nadi, Honolulu-Nadi and Nadi-Suva flights, while Air Pacific’s code will go onto 20 American routes out of Los Angeles.

• According to fresh statistics from the U.S. Bureau of Transportation Statistics, U.S. airlines hauled in nearly $1.7 billion from checked baggage fees in the first six months of the year. Delta posted the greatest bag revenues at $424 million, followed by American ($293 million), US Airways $256 million), Continental ($168 million) and United ($137 million).

• Effective this week, Virgin America Airlines has a new policy for overweight checked bags. The previous maximum weight of 70 pounds has been lowered to 50 pounds. A first checked bag that weighs more than 51 pounds but less than 70 incurs a $50 overweight fee, and one that’s more than 71 pounds but less than 100 will cost $100 extra. That’s in addition to the standard checked bag fee.

• Bloomberg News said it obtained an internal memo from Republic Airways Holdings CEO Bryan Bedford to employees in which Bedford said the company may sell assets to boost its cash reserves. Republic is the parent of Frontier Airlines as well as regional carriers. The memo reportedly said the company is close to finishing a $120 million restructuring for Frontier, a move that could include the sale of takeoff and landing slots at Washington Reagan National Airport as well as 10 Embraer E190 regional jets. It also reportedly said Frontier’s A318s and A319s might be altered by removing one of the three lavatories on each plane and adding a few more seats.

Two new studies and the latest report on international air travel volume suggest that fears of a new economic downturn could have an impact on the number of trips taken by corporate travelers in the months ahead.

A September survey of 152 corporate travel managers conducted by AirPlus International found that almost half – 47 percent – said they expected their company travel program “to feel immediate pressure to control volume/costs in light of some economic indices and public sentiment about recovery turning from flat to negative.” Forty-one percent said they didn’t expect to see such pressure, and 12 percent were unsure.

The latest annual forecast from American Express Global Business Travel predicts that air fares and hotel prices will show moderate growth for 2012, although the increases will be higher in some places than others.

“As business travel is both an essential part of global economic performance as well as an enabler of business growth, we expect the combination of demand and effective travel supplier yield management to likely push rates business travelers pay up across the board in 2012” said Christa Degnan Manning, research director for the company.

As one of Europe’s busiest gateways, Frankfurt International Airport had been facing a capacity squeeze with the ongoing growth of travel. But a new runway should go a long way to giving the facility room to expand – and that’s what its primary tenant, Lufthansa, is doing there.

The airport just cut the ribbon on its fourth runway, an addition that airport officials said will increase the facility’s overall flight capacity by about 50 percent – from 83 takeoffs and landings per hour to 126. The airport plans to bring in additional services gradually, boosting total operations by 4 to 7 percent a year. The airport’s current schedules accommodate flights from 114 airlines to 300 destinations in 110 nations.

Lufthansa has already announced plans to expand at its Frankfurt hub. New destinations to be added from Frankfurt by Lufthansa this winter include Rio de Janeiro, with five flights a week; Aberdeen, Scotland with three a day; and London Gatwick with two a day. According to Lufthansa spokesperson Kay Kratky, the addition of a fourth runway at FRA “will not only mean more punctual and reliable flights, but also an increase in our offerings. However, the unexpected court ruling in favor of a ban on light flights has posed huge challenges for all network planners.”

The new runway is just one element of a longer-term expansion plan for Frankfurt International. Coming next is an extension of FRA’s Pier A, due to open in mid- 2012, giving the facility seven more gates, four of them capable of handling the giant Airbus A380. Pier A will serve as the consolidated base for Star Alliance carriers. A new Terminal 3 is also planned, but it won’t be ready for another five years.

In hotel news this week, Sir Richard Branson’s fledgling Virgin Hotels has picked the site of its first U.S. property; Starwood asks guests for property reviews; and two leading boutique chains merge.

• Virgin Hotels, the newest travel venture in Sir Richard Branson’s corporate family, has purchased a landmark building in Chicago for conversion into its first property. The Old Dearborn Bank Building, located in the Loop at the corner of Wabash and Lake, is expected to open in fall of 2013 as the 250-room Virgin Hotel Chicago. The 27-story Art Deco building dates back to 1928. In making the announcement, Virgin Hotels said it now has “an active pipeline of properties in gateway cities,” including Los Angeles, Miami, New York, San Francisco, Washington D.C. and London.

• Some observers have questioned the validity of hotel reviews posted on consumer travel websites, so Starwood Hotels is offering a new venue for criticism -- “both the positive and the negative,” the company promises – on its own websites. The company said 85 percent of its Preferred Guest members indicated in a survey that they find consumer reviews and ratings useful. In its new online comment program, called Ratings & Reviews, Starwood said it is “making sure all comments are from guests who actually stayed at the hotel. Reviews are verified by a hotel reservation confirmation.” The reviews will include ratings on room comfort, staff, cleanliness and Preferred Guest recognition as well as overall ratings, Starwood said. Consumers will see “reviews displayed directly on the hotel page they are viewing,” the company noted.

• Two leading U.S. boutique hotel brands have announced a merger. San Francisco-based Joie de Vivre Hotels has 33 properties, mostly in California; and Thompson Hotels has five hotels in Manhattan, two in Los Angeles and others in Chicago, Toronto and Washington D.C., and is adding properties in London and Miami Beach. The two groups’ combined revenues are about $500 million. “The new group, provisionally called JT Hospitality, will be formally renamed early next year in concert with the completion of a comprehensive joint branding exercise that is currently underway,” the companies said.

In U.S. airline news last week, holders of certain Chase credit cards can now transfer points into United/Continental’s frequent flyer program; American is making curbside check-in available for more flights; and airlines are ranked based on the comments made by their customers on social media.

• Chase Card Services is adding a new option to its rewards program for holders of its Chase Sapphire Preferred, Ink Plus and Ink Bold credit cards: They can now transfer points from the cards’ Ultimate Rewards plan into United Continental’s Mileage Plus frequent flyer program. One Ultimate Rewards point will be converted into one mile in Mileage Plus. There are no restrictions to the number of points that can be transferred, Chase said. Chase’s Sapphire Preferred is its premium consumer card, while Ink Plus and Ink Bold cards are designed for business owners.

• American Airlines said that by the beginning of November, it will have expanded to dozens of U.S. airports the option of curbside check-in for passengers traveling on international itineraries, including those going to countries that require a visa. “Curbside check-in to international locations will coincide with regular ticket counter hours and will be available to customers who use online flight check-in, electronic tickets, and those with or without pre-reserved seats,” American said.

• A firm called Amplicate has issued a report on social media users’ views of the airlines they fly, based on an analysis of comments posted on Facebook and Twitter. Overall, 57 percent of the comments about U.S. airlines were negative. But not all carriers were on the negative side; the company said three airlines drew mostly positive remarks, including Virgin America, Southwest and JetBlue. The lowest rating went to American, with only 12 percent positive comments. A majority of postings about United, US Airways and Delta were also negative, the report said.