Mar
16
2020
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Why Banning Travel Has Little Effect On Coronavirus Spread
U.S. Airlines Looking To Pick Your Pockets For $50 Billion
Mar
16
2020
We’re now way beyond reduced landing fees at airports (moving the financial hardship onto government-owned airports) and a tax holiday on tickets (which would have to be made up by the government to continue funding aviation). Don’t forget Congressman Jim Moran after 9/11, “It’s an open grab bag, so let’s grab.”
14 Things You Need To Know About Working From Home But Were Afraid To Ask
Mar
16
2020
Work from home tips are like a cottage industry now, but I’ve got a real head start on you and I think I can offer solid concrete advice. I transitioned out of being in the office every day back in 2014, and I’ve worked from home and on the road ever since. It’s the best decision I ever made, but it isn’t for everyone and it isn’t ‘natural’ for someone that isn’t used to it. Some people thrive, and others flounder.
Important Principles For Government Aid To The Airline Industry
Mar
16
2020
What we care about as a society is that an airline industry exists. The reason for government intervention is to prevent economic contagion (the spread of one failure to another). That was the argument for bailing out banks during the financial crisis, and it doesn’t exist in the same dimension with airlines. Nonetheless the industry is an important one once we’re ready to recover.
However the planes will still exist. The airports and gates will still exist. Skilled pilots and mechanics will still need work. The only reason to intervene will come later, if at all. Once airlines are in bankruptcy the relevant question is if they keep flying. And that’s dependent on available new capital during the bankruptcy process. Shareholders should take their haircut first.
When A Travel Provider Keeps Your Money, Remember The Credit Card Chargeback
Mar
16
2020
As some travel providers fight to hold onto cash without delivering services you may need to turn to credit card charge backs – putting your credit card issuer on your side to get your money back.
Is Not Cutting Flights As Deeply As Competitors A Brilliant Strategy Right Now? [Speculative]
Mar
16
2020
The normal approach is to cut spending everywhere possible, from capital expenditures to labor. It’s harder to cut employee salaries but Delta is throttling down spend on contracting firms and consultants. It is parking up to 300 planes.
So far flight loads haven’t been as bad as you’d expect, overall think of planes as 60% full towards the end of last week. That’s probably higher than we’ll see going forward.
United Airlines Tells Employees To Expect Job Cuts
Mar
15
2020
United Airlines sent out a press release this evening, a copy of a letter to employees under the signatures of outgoing CEO Oscar Munoz and soon-to-be CEO Scott Kirby in which they lay out how bad they expect the novel coronavirus to be for the business – and in the middle of the letter they reveal that it “no longer appears realistic” to “avoid [taking] steps that affect [employee] paycheck[s].”
The airline reports that this weekend they have been in discussion with its unions to reduce “payroll expense.”
Insane: American Airlines Is Still Spending Money To Add Seats To Aircraft
Mar
15
2020
American Airlines has cut its international schedule by 75% and its domestic schedule by 30%. Load factors are dropping. People aren’t buying tickets. The one thing American Airlines has too much of is seating capacity. And the one thing American Airlines has too little of to make it through this crisis is money. That’s why they’re running to the government for assistance.
And yet they’re continuing their ‘Oasis retrofit’ program where they replace the interiors of domestic aircraft to add seats to planes, making them less comfortable for passengers.
Islamic State Ceases Non-Essential Business Travel, Jihad Will Have To Take Place Remotely
Mar
15
2020
You know that business travel done when the Islamic State declares non-essential trips to be haram. All Islamic State employees will have to conduct jihad as remote workers for the forseeable future.
American Airlines Parking Jets, Down To 3 Long Haul Routes, Cuts Domestic By 30%
Mar
15
2020
American Airlines, slow off the dime in its moves to protect its business compared to United and Delta, already began major capacity cuts in response to the administration’s ban on non-U.S. residents entering the country if they’ve been to Schengen Area countries of Europe within the past 14 days.
With the government extending that restriction to the U.K. and Ireland, and with demanding drying up more and more each day, they’ve now taken things a step further. They are reduce international capacity by 75% year-over-year. Ostensibly this will apply March 16 to May 6, but many of these cuts will almost certainly last longer.
