May this forever remain strictly a German phenomenon A German mother was fined $116.9 because her 8-year-old daughter refused to open her mouth for the school dentist. “The dentist wanted to check her teeth, but the girl was afraid and refused to open her mouth. So the dentist reported her,” a court spokesman in the central town of Wernigerode said on Thursday.
About Gary Leff
Marriott goodness
Marriott has introduced enhancements to it’s rewards program; especially it’s elite-level program. I got this news by email yesterday, and it seemed like no big deal — more marketing bluster than anything else. Perhaps because I’m not an elite member of Marriott’s loyalty program. But the Webflyer folks have convinced me that it’s worth noting.
Which way UA?
There are substantial disagreements between United Airlines management and it’s creditors, who have substantial say in it’s operations while in bankruptcy. United’s creditors object to the millions being paid to consultants McKinsey & Company. United wants to engage the consultants even more. But the disagreement really isn’t about the payments — it’s about the product being received. McKinsey recommends that United start a low cost carrier as a separate operation. The creditors committee sees that as a dubious strategy. And other than the cost cuts that United has already achieved, the airline has no other clearly articulated strategy. So the airline is at a crossroads. They may or may not be able to move forward with their consultant, and they may or may not be able to move forward with their strategy. Which means they…
The most creative flyer I know
Steve Belkin’s latest plan has made the news. New Zealand students are being offered free flights to Europe in exchange for US firms gaining their frequent flyer points. … He said the frequent flyer points, earned through Air Canada’s “Aeroplan” scheme, would be used by US companies to get cheap business-class flights. …Belkin says he is just recruiting the people to fly. Then he finds “employers” in the US who are “basically sponsoring these students to fly”. …The scheme works like this: * A flyer gives written permission allowing a third party to have access to his or her account and to redeem award tickets. The frequent flyer points are not transferred into anyone else’s account. * The four round-trip flights in economy class between New Zealand and Western Europe generate enough frequent flyer mileage…
Checking out
I’m not taking my laptop with me on my trip this weekend. So unless I post more a bit later today — see y’all Tuesday morning!
Notes on Freedom
Why are we at ‘orange alert’? Terrorism is actually at it’s lowest level since 1969 Acts of international terrorism fell by almost half from 2001 to 2002 — to the lowest figure since 1969. “Most centers for the study of global terrorism report unprecedented calm. Their analysis is backed by the latest annual U.S. State Department report and an interim study, to be submitted next month to the G-8 summit in [the eastern French spa town of Evian]. There were 199 ‘acts of global terrorism’ in 2002. There were no acts of terror in the United States, the United Kingdom, or Australia, designated as special targets by Al-Qaeda.” I first thought, “hey – we just invaded Iraq, of course terrorists are running scared!” But that makes no sense, because the data far predates our invasion.…
Wise words from Alan Greenspan
Greenspan to the Joint Economic Committee “The earnings of the airline industry since the turn of the last century is zero and that tells you that structurally something is askew here and we need to address this in a manner which makes them far more viable,” … “The technologies are just remarkable, it’s hard to believe that an industry that sophisticated is unable to make an adequate rate of return,” He’s really hit the nail on the head. The answer to the problems facing the airlines is not one bailout after another. It’s real competition, both here and abroad. The extent to which aviation is wrapped up in government is not nearly understood. It began with the Wright Brothers who immediately sought government subsidies for their new invention but it did not end with deregulation.…
Chicken wings, breast meat, and an expanded route network
Hooters Air is expanding with service to Baltimore. Just thought I’d let my fellow Washington, DC area readers know…
A blow against jingoism in aviation
The Department of Transportation wants to raise the ceiling on foreign ownership of U.S. carriers from 25% to 49% (free registration required). This would give airlines greater access to world capital markets and invite more entrepreneurs (along with more innovation) to enter what is otherwise a pretty stagnant industry. As I previously noted there are no good arguments against this proposal — expect perhaps that there shouldn’t be any ceiling at all.
You’re welcome, taxpayers
UBS Warburg sees several airlines doing well financially on the backs of their federal welfare payments. Turns out this ’emergency aid’ came at a time when business was picking up anyway. “As carriers cash their welfare . . . er, security refund checks, it’s safe to do a little Monday morning quarterbacking on the economics of the more recent federal airline bailout,” Buttrick said. “Essentially, a $2 billion war investment netted the industry $2.5 billion. As wars go, this was a good one for airline economics. Now if airlines could only run their core business as well,” Buttrick said. Atlanta-based Delta Air Lines got the biggest security reimbursement, $390 million, and has received about $1 billion from the two aid packages combined. Buttrick is cutting his 2003 loss estimate for the industry to $7 billion…
