Monthly Archives

Monthly Archives for April 2003.

Maybe if we subjected Norm Mineta to this, we’d get some reform?

Howard Kurtz reports that White House Press Secretary Ari Fleischer was subjected to extra security screening at National Airport. Security Risk? When Ari Fleischer was in a long line for the Delta Shuttle to head to New York for NBC correspondent David Bloom’s funeral, an airline employee offered to escort the president’s press secretary directly onto the plane. Fleischer declined, saying he would wait like everyone else. A moment later, another worker pulled him out of line and subjected him to a random search. No such indignities on Air Force One.

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The drama at American isn’t over yet.

On Thursday it looked like American had averted a chapter 11 filing for now. Now, with all the hubbub over their executive compensation, the flight attendants union has backed out of its concessions and revote. This could get ugly in a variety of ways. On the one hand, American could throw them a few more bones and then they’ll just revote for the concessions. On the other hand, they could vote the concessions down and then the airline could declare chapter 11. The airline might then retaliate against the union by asking the bankruptcy court to impose even more cuts on the flight attendants, as a way of making an example of them. American’s labor relations could really tailspin from that. Their labor relations could also take a nosedive just by having the flight attendants…

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Delta’s Advantage

Fascinating article on Delta’s use of information technology to cut costs and better understand its operations. Delta’s bet may be that they’re better able to squeeze efficiencies out of their system, so that they can compete against low cost carriers without equivalent wage rates and work rules. The article contends that Delta is years ahead of its major airline rivals in information technology — and that the lead is growing. Fascinating. Now if they could just stop losing a billion dollars a year…

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Stupid Security Awards

After 5000 nominations from 35 countries, the winners of the Stupid Security Awards are in. The complete list of winners is available here. My favorite: [At Heathrow airport, security flagged] a dual quarter pound cellophane wrapped cardboard package of loose leaf Chinese tea. Unfortunately, it was of a well known variety known as Gunpowder Tea… Obviously this was of such importance, that, despite already forcing the passenger to check his hand bag as hold luggage, it was decided that the tea was allowed, but that the evil word “Gunpowder” was not. Consequently the security staff … confiscated the cardboard packaging!

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No Blogging Until Monday

I’m headed off for the weekend and don’t plan to take my laptop. I may post something later this evening or Sunday evening, but odds on you’ll be hearing from me again Monday morning. Safe travels!

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The hotel I never stayed at

On April 10th I received a mailing from the Wyndham Carmel Valley Ranch in California. It was a copy of a bill for recent two-night stay. However, I did not stay at this hotel. The bill was for a guest with the same name as I have. The person’s credit card number (not mine!) was printed on the bill in its entirety. I emailed Wyndham through their website and received a call back from the hotel a few hours later. A nervous staffer said that someone with the same name as me stayed at the hotel and didn’t give them an address because the booking was done through a travel agent. Since they never got the person’s address, they found a Wyndham ByRequest number matching the name and used the address in my profile to…

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The future of American Airlines

American’s labor groups — including Flight Attendants — have now approved new wages, averting bankruptcy for the airline. American projects $1.8 billion in annual savings from these agreements. However, the airline lost $3.5 billion last year. While they have made other cuts that they say will save $2 billion, some of those cuts were in force while they were losing $3.5 billion — so they’re farther off from profitability than just adding $1.8 billion and $2 billion together. The airline needs bookings to pick up and the economy to improve or they will continue to lose large sums of money. These labor agreements buy them time to get their house in order and for external conditions to change. But both of those must happen or American will find itself staring bankruptcy in the face again.

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