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…
Assessing Blame
Megan McCardle thinks that if the airlines collapse, it’s the executives’ faults (rather than the unions’). (Link via Instapundit.)
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!
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!
USAirways Survey for 500 Miles
Take a survey on fare rules and service charges for 500 USAirways miles. Do note that these surveys don’t always post.
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…
Another AA Sweepstakes
This time, they’re offering a chance to win a trip to a National Park including airfare for four, car rental, and lodging.
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.
Free Delta Miles
Apply by May 15 for the Delta Skymiles American Express and you’ll get bonus miles for signup and they’ll waive the fee for the first year. Get the card, charge something, get the miles, and you’re free to cancel. No cost.
Membership has its privileges
Double Continental’s 1000 mile online booking bonus (through May 31) by paying with American Express.
