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…
Good news, one micro step at a time
I recently mentioned my hope for more flights out of Washington National. The House Transportation committee has taken one more small step towards increasing flights out of Washington National airport — although fewer than originally proposed.
How the world works
I subscribe to several travel e-newsletters, and while sometimes useful it’s also surprising how little many of these writers know about matters beyond their immediate purview — and how often this fact fails to stop them from commenting. David Rowell, a.k.a. “the Travel Insider,” complains about United’s $2.8 million payment to McKinsey & Co. for consulting services. I agree that United isn’t getting their money’s worth! But this statement bothers me: One assumes that the $2.8 million which McKinsey billed UA for their mystery work in December, January and February is not also being treated as an unsecured creditor outstanding, but rather has already been paid in full! I’m shocked. Shocked, I tell you! Or at least I would be if I didn’t know that expenses incurred by a company after entering bankruptcy take priority,…
Ouch. I can feel my knees aching already
American Airlines has announced that it will be adding seats to about 174 aircraft. This is a major retreat from their strategy to differentiate themselves from their competitors by offering a better coach product. (The aforementioned link is to the American website, so it may change with this new news.) Before you book your next flight, check the schedule, check the price, and make sure you check the legroom. Only American Airlines offers more room throughout the entire Coach cabin. Some airlines have more room in the first few rows of Coach. But ONLY American Airlines has removed seats from every plane to give you more room throughout the entire Coach cabin. Wherever you travel, choose American, and treat yourself to More Room and more comfort. (Emphasis added.) They are likely to deplot the new,…
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