airlineindustry posts
by Sean McLachlan (RSS feed) (2 years ago)
Jan 12th, 2011 at 7:30AM:
The terrible floods in Queensland, Australia, have destroyed thousands of homes, done billions of dollars of damage, and have left at least a dozen people dead. Queensland is a major coal exporter, and with the rising waters hampering shipments and flooding mines, world coal prices have risen. A major consumer of Queensland coal are Asian steel mills, which are already feeling the pinch. This ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 11th, 2011 at 8:00AM: I guess it would make sense for American Airlines to turn to litigation. After all, this approach worked well against Orbitz.
Here's the situation: the battle between airlines and online travel agencies escalated from the beginning of November – with American's announcement that it would pull out of Orbitz – through the new year. The latest move was by global distribution system ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 10th, 2011 at 8:00AM: Over the past two years, the fees that airlines have figured out have been seemingly endless. Baggage and cancellations are just the tip of the iceberg. Now, passengers are stuck with a healthy dose of fee fatigue, but the good news is that there doesn't seem to be anything left for which to charge – except maybe access to the flotation devices in the event of an emergency.
Well, don't ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 7th, 2011 at 11:00AM: Everyone seems to think this is about the passengers. It's not. In true airline industry fashion, nobody cares about the customer.
Okay, now that I have your attention, an analyst note from Avondale Partners was sent to me last night. While most people don't get excited about this sort of thing, I have to admit that I still do. Nerdy, maybe. Insightful ... in this case, it definitely is.
The ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 7th, 2011 at 9:00AM: Okay, we all saw this coming. The battle that was expected between airlines and online travel agencies as a result of improving market conditions has reached a high level of intensity, centered on American Airlines (with Delta playing a supporting role).
The situation is running deep, as both American and Delta have stepped back from online travel agencies (though for slightly different ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 5th, 2011 at 3:00PM: And, the developments just keep coming. The latest in the airline booking battle is that global distribution service Sabre has given American Airlines a bit of a shove nudge. According to a statement from the Business Travel Coalition, "Sabre took steps to protect the interests of an independent travel distribution system from American Airlines' (AA) attempt to impose a new model that heaps huge ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 4th, 2011 at 12:00PM: American Airlines wanted out of Orbitz ... and then it was bounced by Expedia (preemptively, it seems). Delta wanted out of CheapOair ... and OneTravel ... and BookIt. Nobody knows what's next, but it appears that something is on the horizon, given the magnitude of change in the airline/online travel agency landscape over the past few weeks. I wrote a month ago that a "brand war" was brewing, a ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Jan 4th, 2011 at 11:00AM: If you were running a business that just pulled in record profits after two years of business hell, what would you do? Some companies would show their customers some appreciation. Others would find new lines of business or products in which to invest. The airlines, however, seem poised to jack up their fees.
Let's face it: ancillary fees have been good to the airlines. Paying extra for food, ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 30th, 2010 at 2:00PM: Yesterday, American Airlines announced that it was thanking its customers for their continued loyalty to the airline. It was a fairly predictable move, following the airline's decision to pull out of Orbitz ... which was followed quickly by Expedia's making it more difficult to find American Airlines fares.
At the same time, the company engaged in a bit of chest-thumping – again, expected ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 24th, 2010 at 9:00AM: American Airlines' decision to pull out of Orbitz has triggered a war in the travel industry, as airlines and online travel agencies vie for ownership of the customer. The latest step was Expedia's decision to minimize the exposure of American Airline options in searches on its site, likely a play to reduce the risk of a move by American to pull out of Expedia, too.
According to a statement by ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 23rd, 2010 at 3:30PM:
Could the battle between airlines and online travel agencies have gotten any more intense? This week, American Airlines got the green light in court to yank its fares from Orbitz, and Delta announced that it was pulling out of several smaller sites – CheapOair, OneTravel and BookIt. Travel industry experts are saying it's about time, but that doesn't lessen the shock to the business, ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 23rd, 2010 at 12:00PM: The endless people crowded at gate areas over the next week or so will probably feel what it means to be an impotent traveler. When you're at the mercy of the airlines, there's little you can do to affect change. Sure, they can't control the weather, and legitimate problems do arise from time to time (no business is perfect). But, when you want information, have a legitimate grievance or would ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 22nd, 2010 at 3:00PM: When you go to a buffet, you know what to expect: take as much as you want. You pay once, and then you can consume all that you like. It's the nature of the environment. This stands in stark contrast to other restaurants, where you pay for an entrée and get nothing more. If you want an appetizer, you have to shell out a few extra bucks – likewise dessert. As a society, we have learned ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 22nd, 2010 at 1:00PM: 'Tis the season, right? Regardless of beliefs, we're all secretly wishing for something, even if we're not hoping for a big fat guy to slide down a slim chimney to deliver it. And, I don't think I'm unusual in having my own list of wishes. I'm not so naïve as to think the airline industry will turn my Christmas list into its New Year's resolutions, but I can always dare to dream!
So, here ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 22nd, 2010 at 11:00AM: It's been a busy week. The action with airlines and online travel agencies has been brisk, and in the end, it affects you as much as it affects them. Sure, there's plenty of money involved for the travel sites and the airlines, but in the end, it all comes down to what you experience during the buying process. These changes – with American Airlines and Orbitz and Delta and CheapOair – ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 22nd, 2010 at 8:00AM: As you've read here on Gadling, the battle between airlines and online travel agencies is poised to heat up. For the past few years, a dismal economy has sent many bargain-hunters to online travel sites with the hopes of finding fantastic deals and minimizing the pain in their wallets. Yet, with the travel market and the broader economy showing signs of recovery, airlines' brand power will gain ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 21st, 2010 at 5:30PM: The verdict is in! In the legal battle between Travelport and American Airlines over the latter's decision to pull its inventory out of Orbitz, Judge Martin Agran decided in favor of American Airlines. Orbitz has been ordered to stop selling the airline's tickets and displaying its fares.
American announced last month that it would be withdrawing its inventory from Orbitz as early as December ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 21st, 2010 at 3:00PM: Soon, airlines could make all their profits on the extra fees you pay. Seriously. Yesterday, the Department of Transportation revealed that airlines have had their most profitable year since it started tracking the data back in 2002. And, a good chunk of revenue came from baggage fees, reservation change fees and ancillary fees. In the third quarter alone, it was good for more than $2 billion. So, ...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 21st, 2010 at 9:00AM: Wow, there's a headline I never thought I'd write! Though I suspect it has little to do with actual customer demand – after all, the airlines don't even call us customers – several are starting to bring small, small perks back into the cabin. Two factors help, of course: (1) they aren't expensive and (2) airlines have shown solid profits this year (at least in the United States).
...
by Tom Johansmeyer (RSS feed) (2 years ago)
Dec 20th, 2010 at 3:30PM: Every time you pay to check an extra bag you're making someone's life better. The latest data from the U.S. Department of Transportation reveals that the third quarter of 2010 was the most profitable for the U.S. airline industry since the department began keeping score in 2002. The industry's operating profit margin hit 10.5 percent in aggregate. Low-cost carriers, as a class, had an operating ...
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