JetBlue’s Bold Move: Stop Chasing Business Travelers, Cut Costs, And Downsize To Profits

by Gary Leff

Jul 30 2024

JetBlue has been trying to retool its business, which has underperformed for 15 years but finally cost its Chief Executive his job. Now they’ve been looking for revenue anywhere they can find it (such as continuing to lead the industry in checked bag fee increases) while dropping unprofitable routes out of places like Los Angeles and scaling back loss-making adventures in Europe.

The big reveal was that they will be reducing plans to buy planes, deferring orders past 2030. And without new A321XLRs coming this decade that means a lot less Europe ahead than in earlier plans and a longer way to a fleet refresh.

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Spirit Airlines Abandons Business Model, Starts Selling Bundled Fares And First Class

by Gary Leff

Jul 30 2024

Consumers haven’t wanted what Spirit and Frontier have been selling. Those airlines have struggled. They’ve responded by shifting the routes that they fly, and the products they sell. Frontier has upended its fares and now sells a premium product with both extra legroom and blocked middle seats. Now Spirit is moving in that same direction.

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Court Halts Airline Fee Rules: What It Means for Your Next Flight

by Gary Leff

Jul 30 2024

DOT should certainly enforce refunds for services charged but not provided. But they shouldn’t lock airlines and airfare search sites into displaying specific charges in a standardized way, the same everywhere. We should be encouraging competition in meeting consumer needs, not making airline sites and Expedia displays the same forever. It’s not only seat and bag fees that matter – and even those don’t always matter!

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Viral Video Of Topless Tourist In Florence Fountain Sparks Massive Visitor Backlash

by Gary Leff

Jul 29 2024

I’m skeptical of most claims of overtourism. In some sense, the great historic attractions of civilization belong to everyone. There’s usually an ugly nativism to the claims. And locals often want tourist dollars – and only wealthier tourists – while providing as little as possible in return.

Occasionally, though, a tourist behaves so badly that it’s difficult to make this case.

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Doug Parker’s $54 Billion Heist: Ex-American Airlines CEO Takes Victory Lap After Destroying U.S. Commercial Aviation

by Gary Leff

Jul 29 2024

For Parker and American, this was the heist of a lifetime. He spent all his time in D.C. lobbying and Nelson played a key role. Without Nelson’s cover with the narrative about workers, and bringing along Democratic leadership, it would never have worked. Together, they robbed the American people of $54 billion in direct cash, $25 billion in subsidized loans, plus money for airline contractors and tax subsidies as well.

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