Fortune has come out with a new list: 21 Dumbest Moments in Business 2008 — and as noted, the airlines aren’t anywhere in sight.
Good for them — they “managed smart” this year and yet were still able to offer folks deals. There was, however, one aviation-related matter on the list, and it had to do with private planes — the ones the automakers flew to Congress for their bailout request.
The opening line, describing this bone-headed move, is priceless:
“Like someone arriving at a food bank in a limousine, the chief executives of the three major U.S. automakers spark outrage when they fly their corporate jets to WashingtonD.C. to beg Congress for a multi-billion dollar bailout.”–Fortune’s “21 Dumbest Moments in Business 2008″
Remember how the automakers were roundly criticized for going to Washington to plead for a bailout — in their private jets?
Well, they’re getting rid of those fleets — which is not good news for the private jetmakers. Especially since now, everyone (or many corporations, anyway) seem to be ditching “personal aircraft” — which makes sense, especially if you have to lay people off.
But every action ripples somewhere else in the economy, and it’s the many people who make private jets or work in that industry that are facing tough times now (like so many others). Here is the money quote from a New York Times article on the subject from the CEO of Netjets, a private jet company:
“The jet market stinks,” said Richard Santulli. I guess that says it all.
There were more than a few horror stories from the weekend — with its terrible winter weather — most notably the saga of that Continental jet that slid off a runway in Denver. No one was killed — which one firefighter on the scene characterized as “a miracle” — but many were hospitalized.
At other airports, it was a waiting game. One of my staffers was supposed to pick up her teen at LAX at 7pm Saturday — the kid was coming in from her college in the Midwest — unfortunately that Northwest arrival was delayed and delayed, until 4:30am Sunday.
It could have been worse. Some passengers departing from the Seattle-Tacoma airport on Saturday were told they wouldn’t be leaving until today — or later.
Wouldn’t this be something? Several companies involved in the air travel industry — notably, the Boeing Co. — believe algae could be powering the jet planes of the not-too-distant future.
As reported in Tacoma’s News Tribune, Boeing is one of the leaders behind the Algal Biomass Organization which hopes to gain the same tax breaks and subsidies that other biofuel proponents get.
Why algae? You can grow it almost anywhere, it can be easily genetically modified, and the resulting fuel could be used alone or as a blend with petroleum products. And the future is now: a San Diego company called Sapphire Energy has already “made a gasoline using algae that meets fuel quality standards, is compatible with current gasoline manufacturing infrastructure and achieved a 91 octane rating.”
Why Boeing? Well, Boeing is in the business of building planes, and as the News Tribune notes, commercial airplanes burn 70 billion gallons of aviation fuel a year, and the resulting greenhouse gases are not a good thing. Boeing wants to be part of changing that — and thinks planes will fly on some kind of algae fuel within the next 3 to 5 years.
You know how much flak the heads of Detroit’s automakers got last week when they flew their private jets to Washington — to ask for a bailout.
Now, there is talk that they are going to go to D.C. for round-two – in a caravan of cars — fuel efficient cars.
I want to say to those execs, you know,there is a middle ground:instead of choosing between private luxury aircraft and automobiles — just check with FareCompare.com — for the best deals on the commercial airlines.Unfortunately, they didn?t ask me.
The FAA just released a report about “wild life strikes” to aircraft from 1990 to 2007, and here’s what they found:
82,000+ collisions between animals and aircraft were reported, with birds involved in most of those collisions. And the birds alone were responsible for more than $290 million in damages.
Airports have tried all sorts of things to combat this, and now about 20 airports have gone to the dogs. According to a USA Today report, dogs (many of them border collies it seems) run around and scare the birds away.
Is this a simple and cheap solution? Well, one private firm reportedly charges up to $100,000 a year for a specially trained dog and handler. But I suppose it’s a lot cheaper than the cost of repairing a jet.
The strike by Boeing’s machinists - which began Sept. 6 - has ended, pending ratification of its new 4 year contract. Boeing announced the workers were to begin returning to their jobs last night after the 58-day walk-out.
One of the results of the strike, according to an MSNBC report: further delay of the debut of Boeing’s 787 Dreamliner, which already is at least 15 months behind schedule (it had been hoped it would be in the air this month).
According to the report, the machinists say the new contract gives them “improved job security language”. But the report also notes that some analysts are wondering who won what - analysts who suggest that Boeing could eventually move some operations to “Southern states with weaker unions.”
Austrialia’s Virgin Blue was supposed to launch its new international long haul airline, V Australia, with flights between Sydney and Los Angeles - starting Dec. 15.
The launch has now been pushed back until February - because the airline is waiting on three Boeing 777’s in advanced production at Boeing’s Seattle plant. However, production has been halted by a strike.
27,000 members of the International Association of Machinists and Aerospace Workers have been on strike for nearly a month now, and according to the Dow Jones Newswires, there are signs that the work stoppage is turning into “a protracted standoff”.
If you have a ticket for a now non-existent flight, contact the airline - they have some options for you.
Machinists at Boeing are in the third day of a strike over wages, job security and benefits.
As Bloomberg put it, the union’s 27,000 members in Washington, Kansas and Oregon are “using the leverage of a record order backlog and the tight timetable of Boeing’s delayed 787 Dreamliner in an effort to gain a sweetened deal from the planemaker”.
The company had planned to test fly the long-delayed Dreamliner in November - and begin shipments of the big aircraft in the third quarter of next year.
Analysts say, if history is any guide, this strike could last for weeks.
If you do a lot of transatlantic flying or other long-haul trips, this may not appeal to you - but I thought it was fascinating: the chance to spend the night in a hostel - that’s actually a Boeing 747.
This 747, anchored to a spot at the Stockholm airport, was built in 1976, and has been converted into a lodging appropriately named, the Jumbo Hostel. It has 85 beds, configured mostly as 3 bunkbeds to a room (and thanks, Gadling, for the heads-up). As hostels go, it sounds fairly luxurious - while there are typically 3-beds to a room, they all have flat screen TVs, Wifi and more.
I can’t find any information about room prices just yet. But keep checking the hostel’s site - and note that they won’t start taking reservations until December.
File this under “Sign of the Times”: this weekend, I was watching some U.S. Open tennis and saw a Continental Airlines commercial where onlookers were cooing over the delivery of a newborn. The proud papa, of course, was a pilot and his offspring was a “newborn” jet — he explained he was taking delivery of a number of them this year (the jet appeared to be a 737).
It wasn’t readily apparent that any U.S. based airlines planned on a 787 “newborn”, but after closer inspection it appears there are in fact 2 out of the dozens of “buyers” — Northwest and Continental. Conspicuously absent were most western European airlines who I presume are Airbus aficianados.
I suppose a lot has to do with the weak dollar, the price of fuel and the state of U.S.airline financials — I am wondering, however, how things will look in 3-4 years when oil is not an issue anymore and some of the “non-U.S. airlines” begin flying these spanking new, state-of-the-art planes to/from the U.S. — how easy will it be for U.S. airlines to compete?
You can play airline “Concentration” on this Boeing site (remember Concentration, that old TV game show?) by clicking on the interactive picture at left — simply click on a tail in the picture, and finding out exactly who is going to be “taking delivery” of these coveted newborns …
American Airlines continues with its fleet renewal plans by ordering an additional 26 Next-Generation Boeing 737-800 aircraft. The carrier is also accelerating delivery on aircraft ordered in previous years, which should bring American’s 2009 - 2010 total delivery of Boeing 737-800 aircraft to 76.
While that’s an understandable reaction, it’s important to look beyond the initial cost of the aircraft. The Boeing 737-800 is set to replace American Airlines’ aging fleet of MD-80s. The 737-800 is a more efficient plane that is designed to conserve fuel. In fact, reports from Alaska Airlines have shown that the 737-800 burns about 20% less fuel per hour than the smaller MD-80. This fuel efficiency, according to American, should give air travelers a positive view of their fleet renewal plan:
“Tom Horton, AMR’s executive vice president of Finance and Planning and chief financial officer said, ‘American Airlines continues to execute its fleet renewal plan to control costs while prudently reinvesting in the travel experience for customers. Replacing MD-80s with 737s at current fuel prices provides financial benefits while enhancing the customer experience.’” (from RTT News)
There’s no question that fuel costs will continue to influence almost every decision airlines make in the near future, and it’s important to note that a move towards Next-Generation, more fuel efficient aircraft is not the sole practice of American Airlines. Other major carriers are engaged in similar fleet renewal processes at the same time they are retiring as many old gas guzzlers as possible during the drastic cutbacks over the coming months.
However, what remains to be seen is whether we as air travelers will benefit from those potential future savings or if air travelers will get stuck footing the bill with higher airline ticket pricesand fees inthe coming years.
I did a post a few days ago on airport morning departure times to avoid and from the comments it was clear I needed to clean it up a bit to be more useful. So here goes.
This time I picked a typical Monday (August 18, 2008) and counted both departures and arrivals per hour (previously I had only done departures) to get a more accurate picture of what is happening in the skies in a particular hour of the day. I also included more hours during the day for a fuller picture (instead of just the morning hours).
The chart above shows the top 7 busiest airports for the morning hours, notice how Hartsfield (Atlanta) and O’Hare (Chicago) dominate hourly airport activity.
I thought it would also be interesting to show the New York Area in a bit different form combining the 3 airports together:
Below is the data for the Top 50 Busiest Airports (2 tables to fit), if your airport is not in the top 50 it probably isn’t going to have an issue (for my friends in Canada I will post similar information next week). These are scheduled departures and arrivals and does not take into account seasonal weather issues, habitually late aircraft or the domino effect that occurs as flights back up in one airport causing issues throughout the country (that I leave to our friends at FlightStats who do a great job):
Did you happen to catch the video of that American jet that made an emergency landing at LAX this week because passengers reported smelling smoke?
Those passengers exited the craft on evacuation slides — per orders of the flight attendants. Note: ultimately, investigators found no evidence of smoke, fire or any mechanical problem.
Meanwhile, the evacuation temporarily closed two runways — and now, according to a Wall St. Journal report, the flight attendants are under scrutiny for not consulting with the pilot before deploying the slides. They didn’t have to, but it is “routine” to.
People can get injured evacuating by slides. On the other hand, smoke and the possibility of fire is nothing to fool with. What do you think?
Those huge new A380 aircraft being flown by the Emirates airline offer a special perk for first class passengers:
Showers.
You should know, though, that the showers are limited to 5-minutes. Not enough time? Oh, yes it is.
Here’s a tip from a colleague who lives in “drought country” where water-rationing is occasionally in-force: first, get in the shower, quickly get wet, then turn it off. Next, soap up, and put on the shampoo. Then turn the water back on, and rinse.
Emirates Airline, as you know, will be first to fly the huge (yes, Godzilla-like) A380 to the U.S.
The enormous aircraft will arrive at JFK from Dubai on August 1.
Then on August 4, “invited guests” in San Francisco can take a “familiarization” flight — as will other “invited guests” in Los Angeles on August 5.
Not an “invited guest”? Well, just head on down to the airport if you simply want to see a great big bird.
Did You Know? according to a report in Dubai’s Khaleej Times, the Airbus A380 gets “better fuel economy per passenger mile than most hybrid passenger cars”.
Did you know, that there are more than 10,000 private jets in the U.S.?
If you’re on one now, I’m delighted for you; but the Los Angeles Times quotes some new reports that claim you’re not paying your fair share toward aviation safety.
Some highlights:
A little over $2 billion of $7 billion in federal funds for airport improvements was used to fix up airports that mostly serve private jets (i.e., Aspen)
Private plane passengers avoid the 7.5% ticket tax for ATC services
Interestingly, the authors of these studies don’t seem to like so-called “rich people” very much — as you’ll see if you keep reading.
The mystery of who would be the first to fly the Godzilla of planes to the U.S. has been solved.
Beginning on August 1, Emirates airline (the largest airline in the Middle East) will begin non-stop service between Dubai and New York (JFK) aboard the gargantuan Airbus A380.
And more U.S. flights on the “big boy” are on the way:
Look for non-stops between Los Angeles and Dubai starting September 1, and flights between San Francisco and Dubai are scheduled to begin sometime in October.
Even if you’re not going to Dubai, you might be interested in heading over to the airport just to look at one of these planes.
I was looking over an analysts report this morning on Allegiant Airlines and was struck by the chasm between “the lowest of low cost airlines” and the legacy airlines.
Allegiants fuel bill went up at approximately the same percentage as the un-hedged legacy airlines and they still squeezed out a pretty impressive profit.
For those that are not familiar with Allegiant they fly a fleet of MD-80’s (just shy of 40 planes) with service to Vegas, Reno, Phoenix and popular Florida destinations from under served smaller cities, to leisure destinations at off the beaten path airports.
They tend to fly leisure travelers with non daily flight schedules and from all accounts tend to do a pretty good job at it — I am wondering if we’ll end up with more “Allegiants” in the near future for those cities that have been given up on by the bigger boys… Congrats Allegiant for hanging tough in what is definitely the most “trying” environment in history for air travel.
With fuel prices continuing to rise and questions surrounding the state of the airline industry, the prognosticators have begun to prognosticate:
What will air travel be like in the future?
Many think they have the answer…but some of the answers sound like scenes from Back to the Future or an episode of “The Jetsons:”
“‘Globally, no more than 25 airports will be functional by 2025…only one of them in the Pacific Northwest.’ And that airport will be a ‘travelport,’ featuring high-speed electrical rail interconnections designed to carry passengers to and from all points around Cascadia.” (from the Vancouver Sun)
The above is from Simon Fraser University professor Anthony Perl, and it’s similar to predictions futurists have been making for nearly a century.
Some of the most exciting predictions of the past? Keep reading…
There is plenty of egg to go around for all the faces of the officials with the FAA and the airlines, after the past month’s revelations on lackadaisical compliance with “air worthiness directives”.
Neither side has had a very proud month; and now we have the FAA trying to “save face” and re-instill confidence in the safety of air travel, by swinging from one extreme to the other. One day, it seems, the agency tells the airlines, “No problem, we’ll catch that inspection later…” But now, the agency has completely changed its tune: “Ground the entire fleet of MD-80’s immediately!”
And stuck in the middle is you…and me. Keep reading!