Is the reported "recovery" just the upside of the jetfuel roller coaster?
November 4, 2008
US airlines pull out of a tailspin | us.ft.com
Airlines are enjoying much lower fuel costs than they did in the summer of 2008. Perhaps the use of the word "enjoy" and the notion that recovery is around the corner is a bit like a weatherman in the middle of a hurricane talking about tomorrow's sunshine. At least that was the observation of a writer in Airline Weekly this week. When the prices were high, the airlines kicked into high gear, cutting costs, trimming schedules, parking aircraft in the desert and finding ways to charge passengers for various services, previously offered gratis. Now that the prices are low (remembering that everything is relative), will they hand off a slice of those profits to consumer? Not likely! And what will be the impact on the other sectors of the industry? The GDS companies depend on airline ticket sales for 90% of their revenues. And the hospitality industry also caters to the air traveler as their primary market. What will become of them?
September US airline traffic results will not be pretty - more capacity cuts to come
October 6, 2008
Continental Airlines Reports September 2008 Operational Performance | www.tradingmarkets.com
CAL is the first to report September traffic and it is NOT pretty, while capacity was cut - traffic declined even further. There will be more cuts to come as load factors fall across the US System. CAL is one of the airlines better positioned to handle the downturn so their numbers are likely to be at the better end of the results.
September 18, 2008
Airline Stocks Fly Through the Downturn | www.thestreet.com
Airlines have been milking their frequent flyer programs and essentially selling something for nothing. But with IFRIC13 there is now a significant impact on their balance sheets. Are airlines opening themselves up for a problem that will haunt them for the future?
Totally myopic view of the travel industry will not stimulate growth
September 9, 2008
Sector Snap: US online travel stocks mostly fall | biz.yahoo.com
Orbitz stock fell 7.2% on Thursday, largely attributed to the fact that 87% of its bookings are US domestic and 74% of their product sold is comprised of air tickets. Priceline also fell, but not as substantially. Only Expedia reported a rise in value. The following facts substantiate this observation about the online industry being myopic in its approach to the travel marketplace. • Just 15% of US overnight travel is by air • 85% is by car, motorcycle, RV or other • Just 8% of all travel in the US is for pure vacation travel to top 100 destinations • Just 26% is business travel • That leaves 66% that do day trips, weekend jaunts close to home, visit friends and family and "life event" travel (weddings, funerals, sports tournaments, graduations, family reunions, etc.) to the other 86,900 cities, towns and villages in the US. The online players (and their offline counterparts alike) virtually ignore all but the vacationing and business travelers.
A Mature Virgin Desires an Old Midland
September 2, 2008
Virgin Atlantic ready to take on BA | www.telegraph.co.uk
The proposed commercial alliance of British Airways, Iberia and American - lets call it BAAABI represents a strong consolidation on the most lucrative part of the Transatlantic market - UK-USA. Virgin Atlantic and its chairman have been waging a "BA-AA No Way" battle for years. Now its very intense. But rather than rail against the establishment - Virgin is striking now at the possibility of a hook up with BMI. Andwhat of BMI's other suitors?
Austrian struggles as deadline approaches
August 25, 2008
Austrian struggles to find strategic partner | uk.biz.yahoo.com
Today all interested parties must submit their expressions of interest to acquire the Austrian Government's 43% shares in the former national carrier Austrian Airlines. Any party can express interest but it has been made clear that Lufthansa is the preferred family member to win. There is a small chance a minor player may make it but who really needs vs who can cause an upset seems to be the politics of this game.
Until we get to "intent-based, situationally relevant" search, there is no vision
August 25, 2008
Is Microsoft's Vision of Search Enough to Catch Google? | www.businessweek.com
We are still in the world of Search 1.0 at best. As long as search engines don't care what my intent is or what my current circumstances are, then I will still get 563,000 results when I enter Travel Tampa in a search bar. Is there anyone out there that really thinks that this is effective search?
And now the end is near, and so I face the final curtain...
August 14, 2008
Travelport Announces Second Quarter 2008 Results | www.examiner.com
The GDS model has sustained the neutral travel distribution model for a very long time. From its less than humble beginings with IBM and American Airlines to the peak years of the mid- 1990s to to twilight zone it now finds itself in. So the time has come to accept its short comings and move forward with a new set of technologies and service models more accurately reflecting the value of the players and the services they provide.
Ryanair and the EC. Time for a Truce?
August 13, 2008
Commission targets 'rip-off' air ticket sites | www.euractiv.com
The EC and Ryanair are at constant loggerheads over the 3 main issues of fare displays, Subsidies from cities wanting service and of course the Aer Lingus acquisition. Given the economic climate and benefits that air transportation provides, the EC should perhaps consider rethinking at least one of these policies. the issue of stimulus packages to entice airlines to fly to particular airports.
The winter of Discontent will blow cold winds at United.
August 13, 2008
United's pilots want Tilton out | www.chicagotribune.com
United's management is now embattled in both a legal and commercial fight with its pilot's the very people who brought in Tilton in the first place. United must cut more heads and deeper across the board to match the fleet reductions
Toyota's California Plant Exit Makes Sense
September 17, 2009
It's Possible Berkshire Hathaway Could Help Kraft Acquire Cadbury
September 10, 2009
California's Impact on the Las Vegas Strip, City Center & the port of LA
September 8, 2009
Toyota Will Feel The Heat Of California Lawmakers In NUMMI Plant Closing
September 1, 2009
US Hotel Industry Recession Enters New Rate Erosion Phase
September 1, 2009