USAirways, which recently emerged from bankruptcy, posted a “profit” last quarter. It’s $13 million in the black included $214 million from the federal government, so this news doesn’t say too much about the airline’s business effectiveness. So call me skeptical when the company’s president says “We have made great strides in executing the key elements of our restructuring plan related to increasing revenue, reducing costs and improving liquidity, all against the backdrop of a challenging industry environment” Continental, Northwest, and Delta are all in the same boat.
About Gary Leff
Competition is Good
In order to differentiate themselves and win more business, the three largest online travel booking sites are introducing new features and offering more information.While no one site is uniformly best, and travelers often check more than one sites before booking, each is trying in their own way to offer products that consumers most want.In my own experience, Orbitz consistently finds the best fares on complex and last minute itineraries. That isn’t because Orbitz has the best agreements with the airlines that founded it, either. It’s because Orbitz has the “best math” — the best search functions that are able to piece together flights that the other sites don’t think of. I’ve often found cheap flights on Orbitz that other engines couldn’t find, and then picked my flights one by one on Expedia only to find…
Where do Reality Shows Find these People?
Remember Rick Rockwell from Who Wants to Marry a Multi-Millionaire? A previous girlfriend had obtained a restraining order against him for roughing her up and threatening to kill her. And he wasn’t as wealthy as advertised, either. Now we have Jeffrey W. Chodorow? Viewers of NBC’s “The Restaurant” know him as the investor behind Rocco DiSpirito’s television efforts to launch an Italian dining experience in New York. Aviation enthusiasts remember him as the investor who bought Braniff, revived from bankruptcy by Chicago billionaire Jay Pritzker in 1983, out of its second bankruptcy in 1988. Chodorow’s Braniff was back in bankruptcy in 1989. In 1990, Chodorow and fellow investor Arthur Cohen sought to revive Braniff for a third go-round. They formed a holding company called BNAir, Inc. and purchased the Braniff name from the bankruptcy estate.…
The end to the Delta-United alliance
As expected, with Delta forming a partnership with Continental and Northwest, and with United in partnership with USAirways, the partnership between United and Delta is being terminated. Members of Delta’s SkyMiles frequent flyer program may continue to earn SkyMiles and book award travel on United through Oct. 15, 2003. Members of United’s frequent flyer program may continue to earn Mileage Plus
Who’s Going to Give United More Money?
The Chicago Tribune carried a piece today speculating about equity investors for United’s exit from bankruptcy. Will they go for just a government loan? Will they get outside financing? Will it come from Lufthansa? Will any new investors demand a new management team? The piece is long on speculation but offers little prediction.One curious thing is the last line of the article, considering a Lufthansa equity stake in United: having another airline as a shareholder would be a first for United, although one that might be a lot less wrenching than other alternatives.Surely that can’t be true. I seem to recall National Air Transport owning part of United’s corporate predecessor in the early 1930s. And I also recall some equity ownership on the part of Western Air Lines when United and Western introduced the very…
Alaska Airlines Upgrade Plans
Alaska Airlines lays out its plans for first class on an employee website. It sounds like they get it. They’re going to keep first class. While only 10% of first class seats are occupied by paid first class travelers, upgrades for their elite flyers drive alot of ticket purchases. They need to differentiate themselves from lower cost one-class carriers like Southwest. They’re looking to generate an extra $25-30 per first class seat. They might allow upgrades only on higher fares (bad idea), charge a small premium for upgrades (better idea), or reduce the price difference between coach and first to encourage more first class ticket sales (best idea). Read the whole thing.
Welcome Instapundit Readers
See why I’m “angling for Secretary of Transportation” in a Glenn Reynolds administration! Let me suggest that you take a look at the ‘Greatest Hits’ list on the column to the right. In particular, consider checking out: Discounted travel Rental car discounts Four star hotels on the cheap Free upgrade certificates Concentrate all your flying on one airline Instant Starwood Gold Spend miles or money? And, of course, bookmark this page and visit frequently! If you have any questions you’d like answered about travel or miles and points, drop me a line.
Double Shopping Miles
Northwest is offering double miles in the Worldperks Mall in August and September. Be sure to register.
Instapundit for President?
If the blogosphere is increasingly important, then a Glenn Reynolds administration can only make sense.. but the position of Secretary of Transportation is apparently vacant. Seems like I’d be a perfect fit! That would be even better than impeaching Norm Mineta!
Musings
This week’s newsletter from David Rowell is uniquely good, so I’m going to reproduce some interesting snippets: VS also enjoy having provocative slogans on the side of their planes. Not long ago, they had the slogan ‘Ours is Longer’ painted on their new A340 planes – presumably referring to the fact that the A340-600 is longer than a 747-400. And now they are painting the slogan “BA Can’t Keep It Up” on the side of its aircraft, – presumably referring to BA’s refusal to sell the Concordes to Virgin. VS will keep the slogan until the Concorde ceases flying in October. … Delta..has announced that it will eliminate its quarterly dividend, while forecasting a loss of $200 – $250 million in the upcoming third quarter. … Russia’s Aeroflot announced a net profit for 2002 of…
