In a rare cooperative alliance move, Expedia announced that, in light of the AA action against Orbitz in not making its inventory available, that Expedia would drop AA fares and selections to a second click thru level (non preferential display). This is a preemptive move that is almost unprecedented.
In response, American Airlines spokesman Ryan Mikolasik called the action "discriminatory" and "unwarranted."
"This is especially considering that American has taken no action against Expedia and continues to operate in good faith with Expedia," Mikolasik said.
Mikolasik said American would explore its options to "correct" the situation.
It is against distribution contract to actively refuse to sell one airline, it is not illegal to make it non preferential.
I think that all consumers and the distrubution model for airline ticket sales should be watching closely AA's actions and respond as a collective market to communicate and express their feelings about AA's decisions. We cannot support efforts that we believe are fundamentally bad for travelers and the open market. I acknowledge that airline, as any business, can make many business decisions without influence and that is their right. However, with air service being a fundamental back bone of our economy, we have to pay attention to airlines decisions and how they affect the market. In this case, their business obligations go beyond the boardroom and shareholders and reachs our entire nation/economy.
Pothos: Travel news, travel industry updates, corporate and business travel
Monday, December 27, 2010
Friday, December 24, 2010
American Airline's pulls inventory from Orbitz
You can no longer book American flights on Orbitz or Orbitz for Business!
A court ruling authorizing American Airlines to withdraw its content immediately from Orbitz is merely the opening salvo in a bigger battle that may extend to other GDSs and airlines.
Reaction to yesterday’s ruling by the Circuit Court of Cook County in Illinois was swift and came from all quarters of the travel sector.
Paul Ruden, ASTA's president for legal and industry affairs, said that although the ruling did not spell the end of the case, it was "not a good sign." predicting similar moves “before long”.
"What the ruling effectively does is give American Airlines the freedom to execute its threat to remove its inventory from Orbitz, but it is putting at a risk a great deal of its business," he said
American Airlines responded within hours of the decision, discontinuing the listing of fares on Orbitz and Orbitz for Business.
Travelport, which owns a 48% stake in Orbitz Worldwide, said although the motion for a preliminary injunction was denied, the case will continue on its merits until the request for a declaratory judgment is adjudicated. Orbitz said it would continue to seek an arrangement with AA to distribute the airline’s tickets.
Revenue earned on American Airlines tickets and the associated ancillary products – including destination services, car, hotel and insurance – booked on our Orbitz.com and Orbitz for Business sites accounted for approximately 5% of Orbitz Worldwide's total revenue for the nine months ended Sept.30.
Ruden said AA must either believe it can recover the lost Orbitz business through other channels or does not consider this revenue to be significant. He also said the general public would in some cases not even realize that American Airlines’ fares do not appear in the Orbitz search results.
"The general public isn’t aware of the Orbitz-American Airlines issue and also doesn’t know which carriers fly in which market, so I think they may well lose business as travelers use Orbitz for their fare searches," Ruden said.
The Business Travel Coalition meanwhile said single-supplier direct connect proposals, like that of American Airlines, can cause "massive fragmentation of airfares and ancillary fees, depriving consumers of the ability to compare the total cost of air travel options across all airline."
Describing the battle as an "unprovoked assault" on Orbitz by American, BTC Chairman Kevin Mitchell alleged that the airline has repeatedly changed its rationale for why its direct-connect solution is needed.
"The failure of these shifting explanations to convince airline industry stakeholders to embrace the unproven system then led to a new strategy from American Airlines of blunt threats aimed at Orbitz," Mitchell said.
The Consumer Travel Alliance added its voice to the fray, criticizing American for its "heavy-handed attempt" to prevent consumers from easily searching and comparing its fares against those of other airlines.
CTA Director Charlie Leocha said the move would prevent comparison-shopping and "hide the real cost" of travel.
GDS company Sabre Holdings put its support behind Travelport, saying American's actions will make it "much harder and more costly" for agents and consumers to easily comparison shop among airlines, which will result in increased prices for consumers.
Travelport predicted AA’s plans to "force a more restrictive" distribution model would result in "inefficiencies and added costs" and would be "detrimental" to airline customers, travel agencies and consumers. American Airlines denied this.
"In today's competitive marketplace, it is important for American to be free to customize its product offerings to improve the customer experience as well as distribute its products in a way that does not result in unnecessary costs," said Derek DeCross, American's vice president of sales.
DeCross added that the airline would continue to provide its fare content to travel agency partners, both through GDSs and through American’s own direct connection powered by Farelogix.
While there is no charge for using American’s direct connection, there is an initial technology cost to integrate agency’s systems with the airline’s direct connection.
It is interesting for me to remember that, when launched, Orbitz was the development child of the airlines (just like the GDS's were orginally developed by the airlines as the distribution channel) and the darling of the beginning of OTA's (online travel agency's). It was the first and "go to" website for leisure and shortly after, business travelers.
I urge all consumers (individual's and businesses) to recognize that when the airline try to drive you to only their website/distribution network, you are NOT guaranteed of the lowest fare! This practice is not good for the open market. Only travel agencies can give you the fair & unbiased picture.
A court ruling authorizing American Airlines to withdraw its content immediately from Orbitz is merely the opening salvo in a bigger battle that may extend to other GDSs and airlines.
Reaction to yesterday’s ruling by the Circuit Court of Cook County in Illinois was swift and came from all quarters of the travel sector.
Paul Ruden, ASTA's president for legal and industry affairs, said that although the ruling did not spell the end of the case, it was "not a good sign." predicting similar moves “before long”.
"What the ruling effectively does is give American Airlines the freedom to execute its threat to remove its inventory from Orbitz, but it is putting at a risk a great deal of its business," he said
American Airlines responded within hours of the decision, discontinuing the listing of fares on Orbitz and Orbitz for Business.
Travelport, which owns a 48% stake in Orbitz Worldwide, said although the motion for a preliminary injunction was denied, the case will continue on its merits until the request for a declaratory judgment is adjudicated. Orbitz said it would continue to seek an arrangement with AA to distribute the airline’s tickets.
Revenue earned on American Airlines tickets and the associated ancillary products – including destination services, car, hotel and insurance – booked on our Orbitz.com and Orbitz for Business sites accounted for approximately 5% of Orbitz Worldwide's total revenue for the nine months ended Sept.30.
Ruden said AA must either believe it can recover the lost Orbitz business through other channels or does not consider this revenue to be significant. He also said the general public would in some cases not even realize that American Airlines’ fares do not appear in the Orbitz search results.
"The general public isn’t aware of the Orbitz-American Airlines issue and also doesn’t know which carriers fly in which market, so I think they may well lose business as travelers use Orbitz for their fare searches," Ruden said.
The Business Travel Coalition meanwhile said single-supplier direct connect proposals, like that of American Airlines, can cause "massive fragmentation of airfares and ancillary fees, depriving consumers of the ability to compare the total cost of air travel options across all airline."
Describing the battle as an "unprovoked assault" on Orbitz by American, BTC Chairman Kevin Mitchell alleged that the airline has repeatedly changed its rationale for why its direct-connect solution is needed.
"The failure of these shifting explanations to convince airline industry stakeholders to embrace the unproven system then led to a new strategy from American Airlines of blunt threats aimed at Orbitz," Mitchell said.
The Consumer Travel Alliance added its voice to the fray, criticizing American for its "heavy-handed attempt" to prevent consumers from easily searching and comparing its fares against those of other airlines.
CTA Director Charlie Leocha said the move would prevent comparison-shopping and "hide the real cost" of travel.
GDS company Sabre Holdings put its support behind Travelport, saying American's actions will make it "much harder and more costly" for agents and consumers to easily comparison shop among airlines, which will result in increased prices for consumers.
Travelport predicted AA’s plans to "force a more restrictive" distribution model would result in "inefficiencies and added costs" and would be "detrimental" to airline customers, travel agencies and consumers. American Airlines denied this.
"In today's competitive marketplace, it is important for American to be free to customize its product offerings to improve the customer experience as well as distribute its products in a way that does not result in unnecessary costs," said Derek DeCross, American's vice president of sales.
DeCross added that the airline would continue to provide its fare content to travel agency partners, both through GDSs and through American’s own direct connection powered by Farelogix.
While there is no charge for using American’s direct connection, there is an initial technology cost to integrate agency’s systems with the airline’s direct connection.
It is interesting for me to remember that, when launched, Orbitz was the development child of the airlines (just like the GDS's were orginally developed by the airlines as the distribution channel) and the darling of the beginning of OTA's (online travel agency's). It was the first and "go to" website for leisure and shortly after, business travelers.
I urge all consumers (individual's and businesses) to recognize that when the airline try to drive you to only their website/distribution network, you are NOT guaranteed of the lowest fare! This practice is not good for the open market. Only travel agencies can give you the fair & unbiased picture.
5 thousand Moscow debtors refused departure from Russia to go abroad
It seems that the Russian tourists, who didn’t return the debts to the creditors, have to forget about New Years holidays abroad. It’s interesting to note that the majority of the debtors found out about the prohibition of departure only on passport control in the airport. At the same time, it’s likely impossible to pay on the spot and the prohibition is valid at least for 1 week after payment of the debt. So, it will be hard to depart even for those who paid the debts.
So the tourists can only rely upon themselves: it’s possible to find out about the debts by the special notification of the bailiff or by contacting the bailiff’s service office in Moscow.
So the tourists can only rely upon themselves: it’s possible to find out about the debts by the special notification of the bailiff or by contacting the bailiff’s service office in Moscow.
Tuesday, December 14, 2010
need more reasons to use a travel agency?
With the first big seasonal snowstorm to hit the US, can you imagine that the travelers that did what the airline seem to "want" them to do, which is book on their websites, called to change flights and got a recording that said in essence "we are busy now, call back later" and hung up on you. This was the experience with many of the major carriers and OTA's (online travel agencies) as they are just simply not set up for a high call volume model anymore. Travel agencies changed staffing and answered their phones to service the clients & customers.
What do you do when at the airport and the airline tells you that due to bad weather, the earliest you can be rebooked on next flight is 3 days from now? (With airline running at 80%-90% capacity, if just a few flights cancel and they do not run additional service, this is the scenario you will be faced with). You call your travel agent to find the best value hotel room available and maybe even use the benefit from the travel insurance you purchased from that agency. Now, except for the inconvenience of time, (which you cant avoid with weather), you are out of pocket zero additional money and have received quick customer service. If you think the airline agent at the airport is ready, willing & able to help you source a hotel to go to, think again. That is just not something they will do.
Use travel agencies, Use POTHOS!
It is smart business!
What do you do when at the airport and the airline tells you that due to bad weather, the earliest you can be rebooked on next flight is 3 days from now? (With airline running at 80%-90% capacity, if just a few flights cancel and they do not run additional service, this is the scenario you will be faced with). You call your travel agent to find the best value hotel room available and maybe even use the benefit from the travel insurance you purchased from that agency. Now, except for the inconvenience of time, (which you cant avoid with weather), you are out of pocket zero additional money and have received quick customer service. If you think the airline agent at the airport is ready, willing & able to help you source a hotel to go to, think again. That is just not something they will do.
Use travel agencies, Use POTHOS!
It is smart business!
Wednesday, December 8, 2010
Southwest policy update
BREAKING NEWS
This past week we were advised that Southwest will no longer allow unused ticket credits to be used by other passengers. In the past Southwest was the only airline that would allow an unused ticket for John Doe to be credited and used by John Smith. This new policy goes into effect on January 28, 2011. The good news however, is that Southwest still is one of the only major airlines that does not charge a $150change fee to change a ticket. Add the fact that Southwest does not charge for luggage and you can see why many people love Southwest.
However, dont be fooled by their slick "low fare" campaign's. For the last minute corporate traveler, POTHOS has proven time & again that this is not necessarily true. Since SWA doesnt participate in any GDS or comparative service, it is almost impossible to see this at first glance.
Another reason a good corporate travel agent is so important.
This past week we were advised that Southwest will no longer allow unused ticket credits to be used by other passengers. In the past Southwest was the only airline that would allow an unused ticket for John Doe to be credited and used by John Smith. This new policy goes into effect on January 28, 2011. The good news however, is that Southwest still is one of the only major airlines that does not charge a $150change fee to change a ticket. Add the fact that Southwest does not charge for luggage and you can see why many people love Southwest.
However, dont be fooled by their slick "low fare" campaign's. For the last minute corporate traveler, POTHOS has proven time & again that this is not necessarily true. Since SWA doesnt participate in any GDS or comparative service, it is almost impossible to see this at first glance.
Another reason a good corporate travel agent is so important.
Fiji VAT tax increases
Seems like most governments are getting on board for fee & tax hikes.
On November 25, 2010 the Fiji Government announced it will increase the Value Added Tax (VAT) on goods and services from 12.5% to 15%. There was no grace period granted for existing bookings and the increase will affect all clients traveling to Fiji effective January 1, 2011.
On November 25, 2010 the Fiji Government announced it will increase the Value Added Tax (VAT) on goods and services from 12.5% to 15%. There was no grace period granted for existing bookings and the increase will affect all clients traveling to Fiji effective January 1, 2011.
Wednesday, November 17, 2010
reflections on Prague
I really do like this city, but it has some uniquenesses that I will share. The area, controlled by the Knights Templar in the 13th century fell into feudal hands in 1310 when Templars were disbanded but then the Jesuits took up the "management" of the region. Then the Hapsburg Empire, then country formed the Czechoslovakian government, then the Nazi rule, then the Soviets and now, after 21 years ago (today is the National holiday of the Velvet Revolution), the Czech Republic. So, use this as a base to understanding the culture. The region, Bohemia, has almost always been occupied. I hate generalities as there are always exceptions.
1. Czech people are nice but they have a Eastern European way of showing it! Do not expect smiles, warm welcomes or open "arms". If they speak to you kindly (more than a scour and grunt), consider yourself welcomed.
2. Czech food is simple; mostly pork... roasted, red & white cabbage and potatoes/bread and sausages. I think this is typical as they did with meager foods for so many years. This is not the place to load up on vegetables.
3. Do NOT expect anything extra with your meal. If it is not stated in the menu, there is an additional charge; catsup with those fries? bread & butter? sauce of any kind? these are are about $.50 additional
4. I like November here; it is cool but not bitter cold, no snow, just overcast every day and maybe some misting but thats ok for me.
5. The buildings fascinate me. Some in city center are from 13th century. Many are 17th, 18th & 19th and then you have the big clunky Soviet era gigantasoruses. Many look univiting from street but go thru the car sized gate and you will find a courtyard (meant for horse & carriage arrivals) or the most beautiful artisan work. Really very deceptive and then surprising.
6. It seems expensive here, and it is! There are ways to economize but for the most part, this city is like the Paris of the East. Be prepared to spend. To economize; buy at the mini markets like the locals for snacks and beverages. Eat off beaten tourist path. You will sit with locals but hey, thats half the fun. Look for hostels and railway stations. There are always good take away pizza and doner kebab stores close to these locations. A typical Czech meal (entree, starch and cabbage) should cost 159czk or about $9. Czechs eat smaller meals thru out the day. They do not have buffet restaurants. McDonalds sells tons of just a single cheeseburger to people stopping in for a quick take away bite. 20czk or about 50cents, the transaction is 5 seconds and they are out the door cheeseburger in hand.
7. Take the tours! All of them! They are informative and gets you to the off the beaten path places and out of the city.
8. Use the subway all that you can. For 26czk, about $2, you can tool all over the place. You can not even get into a taxi for $2 much less go anywhere. It was built by Soviets and has the feel of the Moscow subway; very steep, very fast escaltors but also cool artwork.
9. The city is safe, learn how to say no to the throngs of people that want to sell you something and watch for gyspy pick pockets. Don't carry your wallet in back pocket or purse full of stuff. Just be cautious and self aware.
10. Take a whole day to tour the Castle district. Start with changing of the guard (as this is still the Office of the President) and look thru every museum! It is worth it.
This is my two cents about Prague.
Next blog; Italy!
Ciao
1. Czech people are nice but they have a Eastern European way of showing it! Do not expect smiles, warm welcomes or open "arms". If they speak to you kindly (more than a scour and grunt), consider yourself welcomed.
2. Czech food is simple; mostly pork... roasted, red & white cabbage and potatoes/bread and sausages. I think this is typical as they did with meager foods for so many years. This is not the place to load up on vegetables.
3. Do NOT expect anything extra with your meal. If it is not stated in the menu, there is an additional charge; catsup with those fries? bread & butter? sauce of any kind? these are are about $.50 additional
4. I like November here; it is cool but not bitter cold, no snow, just overcast every day and maybe some misting but thats ok for me.
5. The buildings fascinate me. Some in city center are from 13th century. Many are 17th, 18th & 19th and then you have the big clunky Soviet era gigantasoruses. Many look univiting from street but go thru the car sized gate and you will find a courtyard (meant for horse & carriage arrivals) or the most beautiful artisan work. Really very deceptive and then surprising.
6. It seems expensive here, and it is! There are ways to economize but for the most part, this city is like the Paris of the East. Be prepared to spend. To economize; buy at the mini markets like the locals for snacks and beverages. Eat off beaten tourist path. You will sit with locals but hey, thats half the fun. Look for hostels and railway stations. There are always good take away pizza and doner kebab stores close to these locations. A typical Czech meal (entree, starch and cabbage) should cost 159czk or about $9. Czechs eat smaller meals thru out the day. They do not have buffet restaurants. McDonalds sells tons of just a single cheeseburger to people stopping in for a quick take away bite. 20czk or about 50cents, the transaction is 5 seconds and they are out the door cheeseburger in hand.
7. Take the tours! All of them! They are informative and gets you to the off the beaten path places and out of the city.
8. Use the subway all that you can. For 26czk, about $2, you can tool all over the place. You can not even get into a taxi for $2 much less go anywhere. It was built by Soviets and has the feel of the Moscow subway; very steep, very fast escaltors but also cool artwork.
9. The city is safe, learn how to say no to the throngs of people that want to sell you something and watch for gyspy pick pockets. Don't carry your wallet in back pocket or purse full of stuff. Just be cautious and self aware.
10. Take a whole day to tour the Castle district. Start with changing of the guard (as this is still the Office of the President) and look thru every museum! It is worth it.
This is my two cents about Prague.
Next blog; Italy!
Ciao
Monday, November 15, 2010
a day at Brussels airport
I loathe extra long flight connections! Alas, the Brussels Airline flight to Prague that connects with the United arrival is a 6.5 hour connection! But, in that time, I was able to make some observations......
1. Our European cousins really do know how to properly build a toilet. Americans are used to stalls that have walls half way down, where the toilet experience becomes shared with all in the room. But not in Europe! They have complete rooms; full walls for the their toilet stalls, with their own sinks! Nirvana!
2. If you're the kinda person that enjoys paying $1.80 for ethos bottled water at Starbucks and you think the extra $.80 is worth buying into the "halo effect" of Starbucks marketing, then I got a great one for you. For the extra high price of $2,50EUR (or about $4), you can buy a bottle of Belgium spring water in the Brussels airport or on the airplane! Enjoy.
3. I just love it when airports make you get screened again after you disembark an international flight and connect to a domestic one. Just in case you received something from someone unknown to you at 35,000ft in the last 7 hours. (footnote; this is not just Europe, the US does this too. So annoying)
4. I love the cool/cold weather of Europe; it is refreshing when you live in San Diego to have some alternate weather. But I always forget that Europeans like to keep the inside areas 85F +++++ when the mercury dips outside. I have never sweat so much inside in my life; the SAS club lounge was a sauna where I prayed for someone to walk by and make a breeze. I was seriously dehydrating.
5. Why do airports not have places travelers can take cat naps and feel their luggage is safe? Maybe a little room like the Japanese do? You either have to spread out on a bench and hope no one steals your hand luggage or you force yourself to stay awake (I did the later) and become very bored and grumpy.
6. Outlaw bidets! There may have been an era they were useful, but now all they promote is bad hygene. To my EU cousins; just because you washed your face and *** doesnt mean the rest of your body does not reek in odor!
7. lastly, airline club lounges are worth their weight in gold in Europe. I got snacks, beverages, sandwich's for lunch and free internet access. All of which would have cost me at least $100.00EUR in the main terminal.
Haza!
1. Our European cousins really do know how to properly build a toilet. Americans are used to stalls that have walls half way down, where the toilet experience becomes shared with all in the room. But not in Europe! They have complete rooms; full walls for the their toilet stalls, with their own sinks! Nirvana!
2. If you're the kinda person that enjoys paying $1.80 for ethos bottled water at Starbucks and you think the extra $.80 is worth buying into the "halo effect" of Starbucks marketing, then I got a great one for you. For the extra high price of $2,50EUR (or about $4), you can buy a bottle of Belgium spring water in the Brussels airport or on the airplane! Enjoy.
3. I just love it when airports make you get screened again after you disembark an international flight and connect to a domestic one. Just in case you received something from someone unknown to you at 35,000ft in the last 7 hours. (footnote; this is not just Europe, the US does this too. So annoying)
4. I love the cool/cold weather of Europe; it is refreshing when you live in San Diego to have some alternate weather. But I always forget that Europeans like to keep the inside areas 85F +++++ when the mercury dips outside. I have never sweat so much inside in my life; the SAS club lounge was a sauna where I prayed for someone to walk by and make a breeze. I was seriously dehydrating.
5. Why do airports not have places travelers can take cat naps and feel their luggage is safe? Maybe a little room like the Japanese do? You either have to spread out on a bench and hope no one steals your hand luggage or you force yourself to stay awake (I did the later) and become very bored and grumpy.
6. Outlaw bidets! There may have been an era they were useful, but now all they promote is bad hygene. To my EU cousins; just because you washed your face and *** doesnt mean the rest of your body does not reek in odor!
7. lastly, airline club lounges are worth their weight in gold in Europe. I got snacks, beverages, sandwich's for lunch and free internet access. All of which would have cost me at least $100.00EUR in the main terminal.
Haza!
Wednesday, October 27, 2010
TSA Secure Flight Enforcement Starts November 1, 2010
Travelers: Expect more questions when new Transportation Security Administration rules become effective Nov. 1. Secure Flight requires all passengers to supply their full name, gender and date of birth within 72 hours of departure. If passengers do not provide the required information, TSA officials can deny them the right to board.
The requirements apply to all passengers on U.S. airlines, flying into or out of U.S. airports and over U.S. airspace. For more information, check out the TSA website.
In addition to requiring the above information, airlines will also ask certain passengers to enter a redress number, a TSA-issued code assigned to passengers who have mistakenly been named on a watch list in the past.
Many concerns over privacy arose in response to Secure Flight. The Electronic Privacy Information Center created an online database with more information about privacy concerns and the program.
Consumer Reports offered some tips for travelers planning to take or book flights after Nov. 1.
• Double-check all personal information when making travel reservations.
• Names and dates provided to airlines must exactly match the identification you plan to use.
• Be careful to avoid typing incorrect letters or numbers, an error that could lead to flight cancellations.
• For those traveling in early November, allow yourself extra time at the airport. The new regulations could lead to unforeseen check-in and security delays.
The requirements apply to all passengers on U.S. airlines, flying into or out of U.S. airports and over U.S. airspace. For more information, check out the TSA website.
In addition to requiring the above information, airlines will also ask certain passengers to enter a redress number, a TSA-issued code assigned to passengers who have mistakenly been named on a watch list in the past.
Many concerns over privacy arose in response to Secure Flight. The Electronic Privacy Information Center created an online database with more information about privacy concerns and the program.
Consumer Reports offered some tips for travelers planning to take or book flights after Nov. 1.
• Double-check all personal information when making travel reservations.
• Names and dates provided to airlines must exactly match the identification you plan to use.
• Be careful to avoid typing incorrect letters or numbers, an error that could lead to flight cancellations.
• For those traveling in early November, allow yourself extra time at the airport. The new regulations could lead to unforeseen check-in and security delays.
Saturday, October 23, 2010
Russian carrier makes 6 passengers stand for 5-hour flight
Oct 05, 2010
A Russian airline forced six passengers to stand on a five-hour flight from Turkey to Russia, according to media reports.
Daily Mail reported that six adults had no seats on the overcrowded Boeing jet as it took off from Antalya airport in Turkey, used by thousands of Britons each week.
These passengers did not have oxygen masks or life vests on the overcrowded jet, said reports in Moscow.
According to Daily Mail, the passengers on the Tatarstan Airlines flight from Antalya to Ekaterinburg, Russia’s fourth largest city, were told an aircraft with 148 seats had been replaced at the last minute by another Boeing 737 with space for only 142.
Those who complained were told by the crew to put a child on their lap - but the children were far too big.
The incident on Septmber 24 came to light after angry passengers demanded £3,000 each in compensation.
The tour company which booked their flight offered them only £130.
"The adults had no choice but to fly standing for five hours," said one passenger.
"When the plane flew through turbulence, they went from standing to sitting in the aisle, where naturally they had no safety belts."
A Tatarstan Airlines official said last night: "We cannot deny this happened to our customers. But the company will not share any details until everything is clarified. Our own investigation of this accident is about to begin."
Evgenia Fedorova, a manager of Anex-Tour, which booked many passengers on the flight, said, "People had a choice - to fly on that plane standing up or wait seven hours for another plane.
"All the tourists decided to fly back despite uncomfortable conditions."
Aviation regulators are understood to be probing the incident.
A Russian airline forced six passengers to stand on a five-hour flight from Turkey to Russia, according to media reports.
Daily Mail reported that six adults had no seats on the overcrowded Boeing jet as it took off from Antalya airport in Turkey, used by thousands of Britons each week.
These passengers did not have oxygen masks or life vests on the overcrowded jet, said reports in Moscow.
According to Daily Mail, the passengers on the Tatarstan Airlines flight from Antalya to Ekaterinburg, Russia’s fourth largest city, were told an aircraft with 148 seats had been replaced at the last minute by another Boeing 737 with space for only 142.
Those who complained were told by the crew to put a child on their lap - but the children were far too big.
The incident on Septmber 24 came to light after angry passengers demanded £3,000 each in compensation.
The tour company which booked their flight offered them only £130.
"The adults had no choice but to fly standing for five hours," said one passenger.
"When the plane flew through turbulence, they went from standing to sitting in the aisle, where naturally they had no safety belts."
A Tatarstan Airlines official said last night: "We cannot deny this happened to our customers. But the company will not share any details until everything is clarified. Our own investigation of this accident is about to begin."
Evgenia Fedorova, a manager of Anex-Tour, which booked many passengers on the flight, said, "People had a choice - to fly on that plane standing up or wait seven hours for another plane.
"All the tourists decided to fly back despite uncomfortable conditions."
Aviation regulators are understood to be probing the incident.
Dubai airline refuses to fly blind passenger
Oct 05, 2010
DUBAI, United Arab Emirates — Dubai's FlyDubai airline refused to allow blind American passenger to fly because of his disability.
According to the Associated Press, Zuhair Mahmoud says he was told by FlyDubai airline staff members that the carrier's policies did not allow blind travelers to fly unless accompanied by someone else.
The airline's chief executive said in an e-mail to AP on Tuesday that the incident never should have happened and that the airline doesn't discriminate against passengers with special needs. CEO Ghaith al-Ghaith says the airline plans a full investigation and is sorry for the incident.
AP reports that the 37-year-old Mahmoud, of Arlington, Virginia, is staying with family in Dubai until he can catch another flight out to Jordan before heading back to the U.S.
DUBAI, United Arab Emirates — Dubai's FlyDubai airline refused to allow blind American passenger to fly because of his disability.
According to the Associated Press, Zuhair Mahmoud says he was told by FlyDubai airline staff members that the carrier's policies did not allow blind travelers to fly unless accompanied by someone else.
The airline's chief executive said in an e-mail to AP on Tuesday that the incident never should have happened and that the airline doesn't discriminate against passengers with special needs. CEO Ghaith al-Ghaith says the airline plans a full investigation and is sorry for the incident.
AP reports that the 37-year-old Mahmoud, of Arlington, Virginia, is staying with family in Dubai until he can catch another flight out to Jordan before heading back to the U.S.
Thursday, October 21, 2010
Violent protests continue in France
Protests over planned pension reforms in France continued to be violent on Wednesday, as riot police clashed with protesters in Paris and Lyon for a second straight day.
According to reports, rioting youths in Lyon have burned cars, looted stores and thrown objects at police. In Nanterre, a Paris suburb, riot police have reportedly used tear gas when confronted with youths throwing stones and lighting fires.
Addressing a fuel-shortage crisis, police began to break up blockades of fuel depots established by striking workers. Interior Minister Brice Hortefeux said that three depots in western France were forced open last night “without incident,” reported the New York Times.
Also, protesters have either blocked or threatened to block access roads to airports in Marseilles, Lyon, Nice and Paris’ Charles de Gaulle.
Meanwhile, a strike of air traffic controllers continues to affect airline operations. France’s civil aviation authority said that about 50% of Paris Orly flights were canceled Wednesday, and that about 30% of flights were canceled at all other airports.
Strikes by rail workers continued to affect train service, although international service (Eurostar, Thalys) appeared to be less affected than intercity trains, according to reports.
According to reports, rioting youths in Lyon have burned cars, looted stores and thrown objects at police. In Nanterre, a Paris suburb, riot police have reportedly used tear gas when confronted with youths throwing stones and lighting fires.
Addressing a fuel-shortage crisis, police began to break up blockades of fuel depots established by striking workers. Interior Minister Brice Hortefeux said that three depots in western France were forced open last night “without incident,” reported the New York Times.
Also, protesters have either blocked or threatened to block access roads to airports in Marseilles, Lyon, Nice and Paris’ Charles de Gaulle.
Meanwhile, a strike of air traffic controllers continues to affect airline operations. France’s civil aviation authority said that about 50% of Paris Orly flights were canceled Wednesday, and that about 30% of flights were canceled at all other airports.
Strikes by rail workers continued to affect train service, although international service (Eurostar, Thalys) appeared to be less affected than intercity trains, according to reports.
Spain Says Adios to Smoking in Bars and Cafés
Spain set the stage yesterday for a tough new anti-smoking law that will rid the country of its dubious status as one of Western Europe's easiest places to light up. The bill, passed by parliamentary commission, calls for making all bars and restaurants no-smoking zones, bringing Spain in line with the European Union's strictest anti-smoking nations and many U.S. states that bar smoking in enclosed public places. The measure is expected to pass the Spanish senate and become law on Jan. 2
Wednesday, October 6, 2010
Airlines don't like federal proposal for baggage fee refunds
Interesting article......
________________________________________________
By Hugo Martín, Los Angeles Times
September 27, 2010
In the 12-month period ended in June, the nation's top 10 airlines collected more than $3.1 billion in baggage fees.
So it's no surprise the airline industry opposes a move by the U.S. Department of Transportation to mandate that all airlines offer refunds of the fees when your bags are lost or delayed.
What's interesting are the objections raised by the Air Transport Assn., the trade group that represents most of the nation's largest airlines.
In comments filed with the federal agency last week, the association said each airline should have the choice of offering a refund, depending on competition in the marketplace.
Only a few airlines, including Alaska Airlines, now offer automatic refunds if a bag is lost or delayed. Most major airlines will consider refunding your bag fee — only after you file a claim, and the refund will usually come in the form of a discount on future travel.
The airline group also said it opposed the refund idea because a government mandate like this would only raise fares for everyone, including people who don't check bags.
Finally, the association said a refund won't work because the requirement for "timely delivered" bags is a "subjective standard" and would "not account for varying conditions."
The DOT said it hadn't included a definition of a timely delivered bag, leaving that up to the airlines and the public to suggest.
Traveler Daniel Cope of New York submitted a comment to the DOT suggesting that passengers get a refund if a bag is not delivered to the luggage carousel within one hour of the aircraft arriving at the gate.
"Furthermore," he added, "a bag not making a connection with a passenger should not be an excuse. If a passenger can make the connection, this is proof that the bag could have made the connection as well."
The comment period for the proposed rule and other passenger protection policies ended Thursday. The DOT hopes to adopt a rule by spring.
Six months ago, the DOT began to enforce a new rule that allows the agency to fine airlines that leave passengers stranded on the tarmac for more than three hours.
Since the law took effect, a handful of airplanes have been reported as being stuck beyond that limit, but the DOT has not yet fined any carrier.
However, the DOT fined United Air Lines $12,000 last week for reporting a three-hour delay that turned out not to be a violation.
The case dates from May 26, when four United planes were stuck on the tarmac at Colorado Springs Airport because of bad weather. The United crews gave passengers food and water after two hours and then offered them the option of getting off the planes after three hours, as required by the new rule.
But because the planes sat on the tarmac more than three hours, United reported the incident as a possible violation. The DOT concluded that it was not, and fined United for prompting an unnecessary investigation.
United isn't happy. "It is unfortunate that our effort to be fully transparent resulted in our inadvertently reporting four flight delays where we complied with regulations," United spokesman Rahsaan Johnson said in a statement.
If high fees and long delays at airports are getting you down, American Airlines has an offer for you: Starting Oct. 1, most drinks at the Admirals Club lounges will be on the house.
Beer, house wine and "brand liquors" will be complimentary at the domestic lounges, but you must pay for premium wines and liquors. Club membership costs as much as $500a year or $50 for a one-day pass.
American isn't the first airline to give away booze at its airport lounges. Free drinks are also offered at most Delta Sky Club and US Airways Club lounges, among others.
Although the offer is indefinite, an American Airline spokesman noted that the bartenders reserve the right to cut you off.
________________________________________________
By Hugo Martín, Los Angeles Times
September 27, 2010
In the 12-month period ended in June, the nation's top 10 airlines collected more than $3.1 billion in baggage fees.
So it's no surprise the airline industry opposes a move by the U.S. Department of Transportation to mandate that all airlines offer refunds of the fees when your bags are lost or delayed.
What's interesting are the objections raised by the Air Transport Assn., the trade group that represents most of the nation's largest airlines.
In comments filed with the federal agency last week, the association said each airline should have the choice of offering a refund, depending on competition in the marketplace.
Only a few airlines, including Alaska Airlines, now offer automatic refunds if a bag is lost or delayed. Most major airlines will consider refunding your bag fee — only after you file a claim, and the refund will usually come in the form of a discount on future travel.
The airline group also said it opposed the refund idea because a government mandate like this would only raise fares for everyone, including people who don't check bags.
Finally, the association said a refund won't work because the requirement for "timely delivered" bags is a "subjective standard" and would "not account for varying conditions."
The DOT said it hadn't included a definition of a timely delivered bag, leaving that up to the airlines and the public to suggest.
Traveler Daniel Cope of New York submitted a comment to the DOT suggesting that passengers get a refund if a bag is not delivered to the luggage carousel within one hour of the aircraft arriving at the gate.
"Furthermore," he added, "a bag not making a connection with a passenger should not be an excuse. If a passenger can make the connection, this is proof that the bag could have made the connection as well."
The comment period for the proposed rule and other passenger protection policies ended Thursday. The DOT hopes to adopt a rule by spring.
Six months ago, the DOT began to enforce a new rule that allows the agency to fine airlines that leave passengers stranded on the tarmac for more than three hours.
Since the law took effect, a handful of airplanes have been reported as being stuck beyond that limit, but the DOT has not yet fined any carrier.
However, the DOT fined United Air Lines $12,000 last week for reporting a three-hour delay that turned out not to be a violation.
The case dates from May 26, when four United planes were stuck on the tarmac at Colorado Springs Airport because of bad weather. The United crews gave passengers food and water after two hours and then offered them the option of getting off the planes after three hours, as required by the new rule.
But because the planes sat on the tarmac more than three hours, United reported the incident as a possible violation. The DOT concluded that it was not, and fined United for prompting an unnecessary investigation.
United isn't happy. "It is unfortunate that our effort to be fully transparent resulted in our inadvertently reporting four flight delays where we complied with regulations," United spokesman Rahsaan Johnson said in a statement.
If high fees and long delays at airports are getting you down, American Airlines has an offer for you: Starting Oct. 1, most drinks at the Admirals Club lounges will be on the house.
Beer, house wine and "brand liquors" will be complimentary at the domestic lounges, but you must pay for premium wines and liquors. Club membership costs as much as $500a year or $50 for a one-day pass.
American isn't the first airline to give away booze at its airport lounges. Free drinks are also offered at most Delta Sky Club and US Airways Club lounges, among others.
Although the offer is indefinite, an American Airline spokesman noted that the bartenders reserve the right to cut you off.
airport code humor
Rick Seaney, CEO of FareCompare.com wrote a humorous story about airport codes recently.
“Most of you fliers out there are familiar with JFK, LAX and DFW -- the airport codes for New York's Kennedy, Los Angeles International and Dallas-Ft. Worth. But how many of you have flown to SUX?
Yes, SUX - the airport code for Sioux City, Iowa. Luckily, residents there have a sense of humor; instead of bemoaning their unfortunate appellation, they celebrate it. The airport's website sells souvenirs including t-shirts and caps emblazoned with the bold SUX logo. It could be worse. It appears a kindergartner might have had a hand in picking some of these airport codes. Russia's Bolshoye Savino Airport is stuck with the unlovely designation PEE, while Brazil's Poco De Caldas Airport has to live with POO. Then there's Rotorua, New Zealand ROT while Louisiana's Barksdale Air Force Base is just plain BAD.”
“Most of you fliers out there are familiar with JFK, LAX and DFW -- the airport codes for New York's Kennedy, Los Angeles International and Dallas-Ft. Worth. But how many of you have flown to SUX?
Yes, SUX - the airport code for Sioux City, Iowa. Luckily, residents there have a sense of humor; instead of bemoaning their unfortunate appellation, they celebrate it. The airport's website sells souvenirs including t-shirts and caps emblazoned with the bold SUX logo. It could be worse. It appears a kindergartner might have had a hand in picking some of these airport codes. Russia's Bolshoye Savino Airport is stuck with the unlovely designation PEE, while Brazil's Poco De Caldas Airport has to live with POO. Then there's Rotorua, New Zealand ROT while Louisiana's Barksdale Air Force Base is just plain BAD.”
Wednesday, September 29, 2010
Airbus Considers Transparent Fuselage
Hold on for this news bit...........
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Airbus is toying with the idea of creating a passenger aircraft with completely transparent fuselage, allowing passengers to take in the scenery — from a see-through cabin — at 35,000 feet.
According to the International Business Times, Airbus will create a dream-like cabin, with morphing seats (seats will change shape depending on passenger comfort preferences), walls that become clear at the touch of a button and holographic projections of various decors, transforming cabins into whatever the passenger desires — from an office or bedroom to a garden and more.
Not only does the new design allow for 360-degree views of the sky, but it is also more eco-friendly. Aircraft will be lighter, more cost efficient and made from renewable materials.
_________________________________________________________
Airbus is toying with the idea of creating a passenger aircraft with completely transparent fuselage, allowing passengers to take in the scenery — from a see-through cabin — at 35,000 feet.
According to the International Business Times, Airbus will create a dream-like cabin, with morphing seats (seats will change shape depending on passenger comfort preferences), walls that become clear at the touch of a button and holographic projections of various decors, transforming cabins into whatever the passenger desires — from an office or bedroom to a garden and more.
Not only does the new design allow for 360-degree views of the sky, but it is also more eco-friendly. Aircraft will be lighter, more cost efficient and made from renewable materials.
Sunday, September 12, 2010
Company designs stand-up seat, says airlines are interested
Aviointeriors, an Italian manufacturer of airline seats, has designed and patented a stand-up seat, and the company says carriers around the world — including U.S. airlines — have "strong interest."
Dominique Menoud, the company’s director general, called the seat, known as the SkyRider, a "winning argument for airline economics and passenger comfort."
Aviointeriors suggests that airlines could sell cheaper fares in a "SkyRider section" and "fill the aircraft to the maximum certified passenger capacity."
Gaetano Perugini, Aviointeriors’ research and development director, said SkyRider passengers would "assume a dynamic upright position, which is not only comfortable but also very healthy."
The company said seats can be configured with a pitch of 23 inches, or less if rows "partially overlap."
The design allows for space beneath the seat for a carry-on. A foldable shelf provides support for baggage without infringing upon passengers’ foot space, said Aviointeriors
Dominique Menoud, the company’s director general, called the seat, known as the SkyRider, a "winning argument for airline economics and passenger comfort."
Aviointeriors suggests that airlines could sell cheaper fares in a "SkyRider section" and "fill the aircraft to the maximum certified passenger capacity."
Gaetano Perugini, Aviointeriors’ research and development director, said SkyRider passengers would "assume a dynamic upright position, which is not only comfortable but also very healthy."
The company said seats can be configured with a pitch of 23 inches, or less if rows "partially overlap."
The design allows for space beneath the seat for a carry-on. A foldable shelf provides support for baggage without infringing upon passengers’ foot space, said Aviointeriors
Tuesday, September 7, 2010
France strike disrupts flights and rail services
If it is summer, it is time for Europe to strike for some reason or another!
___________________________________________________________
Travellers to France are facing transport disruption over the coming days as workers take industrial action over proposed pension reforms.
A national strike began on Monday evening, and is expected to last until early on Wednesday morning.
Air travel between the UK and France is likely to be disrupted, while a number of rail services could also be delayed or cancelled.
British Airways has warned that flights to other destinations may also be affected, and has advised passengers to check the status of their flights before travelling to the airport.
All long-haul Air France services will operate, according to the airline, but only 90 per cent of short-haul flights from Charles de Gaulle airport and half of short-haul flights from Orly airport will run.
Eurostar said its services will operate normally, but is giving passengers who have already purchased tickets the option of postponing their journeys in case other connecting services are cancelled.
The Paris metro has said that its network will run at about 50 per cent, while around half of high-speed SNCF trains will be in service.
The strike, involving transport workers from this evening, and – from tomorrow – school, post office and civil service staff, is in response to the French government’s proposals to increase the minimum retirement age from 60 to 62. Demonstrations are also planned in 137 towns and cities.
Meanwhile, London Tube workers will walk out for 24 hours later today in a dispute over job cuts.
___________________________________________________________
Travellers to France are facing transport disruption over the coming days as workers take industrial action over proposed pension reforms.
A national strike began on Monday evening, and is expected to last until early on Wednesday morning.
Air travel between the UK and France is likely to be disrupted, while a number of rail services could also be delayed or cancelled.
British Airways has warned that flights to other destinations may also be affected, and has advised passengers to check the status of their flights before travelling to the airport.
All long-haul Air France services will operate, according to the airline, but only 90 per cent of short-haul flights from Charles de Gaulle airport and half of short-haul flights from Orly airport will run.
Eurostar said its services will operate normally, but is giving passengers who have already purchased tickets the option of postponing their journeys in case other connecting services are cancelled.
The Paris metro has said that its network will run at about 50 per cent, while around half of high-speed SNCF trains will be in service.
The strike, involving transport workers from this evening, and – from tomorrow – school, post office and civil service staff, is in response to the French government’s proposals to increase the minimum retirement age from 60 to 62. Demonstrations are also planned in 137 towns and cities.
Meanwhile, London Tube workers will walk out for 24 hours later today in a dispute over job cuts.
Hotel revenue from phone calls, in-room movies drying up
below is an LA Times article that I think is important. In my opinion, internet connectivity should be FREE and it seems like many of the chain hotels are agreeing with me. Frequent guests at Hilton, Starwood & Marriott no longer pay to be connected and they don't have to stay at the limited service properties to get this service!
_____________________________________________________________
More guests are bringing their own devices, taking a small but significant bite out of the bottom line as the hospitality industry struggles to pull out of a deep slump.
The nation's hotel industry, already struggling to pull out of its worst slump in decades, is now suffering from another loss in revenue because of the booming popularity of cellphones and laptop computers.
In the past, hotel operators could expect to collect extra money by charging guests for in-room phone calls and on-demand movies.
But today most guests check into a hotel packing cellphones and laptop computers that are linked to the Internet and loaded with movies, games and music.
Proceeds from phone calls and movies have represented only a small share of a hotel's overall cash flow, but the sharp decline in revenue from those sources comes as the recession-wracked hospitality industry tries to rebound from the lowest occupancy numbers and room rates in decades.
It has hotel managers scrambling to make up for the loss by offering other entertainment, such as Saturday night movies by the pool, Sunday morning brunches, live music and spa treatments.
"In this economy, any loss of revenue and you are going to pull your hair out," said Bruce Gorelick, general manager of the Renaissance Hollywood Hotel.
Hotel managers such as Gorelick have been frustrated by the loss of revenue since the start of the recession, when demand for hotels plummeted, pushing room rates to their lowest levels in years.
The industry's recovery has been slow, even though leisure travelers began to loosen the purse strings a bit on summer travel. Analysts with Smith Travel Research forecast a modest 4.4% increase in occupancy rates for 2010 and daily room rates that remain flat.
But the industry has a long way to go to overcome a slump that pushed down the average hotel occupancy rate in the U.S. to about 56% in 2009 — the lowest it's been in more than 20 years. Revenue per room dropped so sharply that hotel foreclosures in California quadrupled last year.
"Occupancy is starting to inch up," said Jeff Higley, a spokesman for Smith Travel Research. Still, he said analysts believe that room rates won't return to pre-recession levels for at least two or three years because managers are reluctant to charge too much. "Rates have really taken a beating."
At the same time, revenue from phone calls and in-room entertainment has been drying up.
Annual revenue collected by U.S. hotels from phone calls dropped to an average of $178 per room in 2009 from $1,252 in 1999, a decline of 86%, according to Colliers PKF Hospitality Research. Meanwhile, income from in-room movies and games dropped to $126 per room from $171, a decline of 26%, according to the research firm.
Cheryl Anker is a prime example of the trend.
She travels often managing Off 'N Running Tours, a Los Angeles-based company that organizes running tours and races. During a business trip to San Antonio last year to manage a 5-kilometer race, she said she entertained herself in her hotel room by watching Alfred Hitchcock's "North by Northwest," which she uploaded from the Internet onto her laptop computer.
"So I nestled in with my wine and snacks," she said. "A very good evening."
But hotel entertainment companies such as Lodgenet Interactive Corp. would not call it a good evening. The Sioux Falls, S.D., company is one of the nation's largest providers of in-room entertainment systems, serving nearly 2 million hotel rooms worldwide.
In 2009, Lodgenet revenue dropped by nearly $50 million, or 9.3%, to $484.5 million from the previous year, according to a company earnings report. Lodgenet attributed most of the decline to a drop in sales of on-demand movies, games, music and other interactive services delivered through hotel televisions.
Lodgenet's downward trend continued through the second quarter of 2010 when the company reported a net loss of $3.1 million, according to an earnings report.
Lodgenet blames some of the losses on the recession and predicts that the future rollout of interactive, high-definition televisions in hotel rooms will "allow for the introduction of a broader array of services for guests and new revenue opportunities for hoteliers," company spokeswoman Ann Parker said in a statement.
As for hotel operators, many have given up hope of recapturing the boost from in-room entertainment.
"That revenue is gone," said Matt Greene, general manager of the Hard Rock Hotel in San Diego. "It's nonexistent."
In fact, by embracing the technology that guests demand, such as free Internet access, free computer applications and docking stations for iPod media players, hotels have cut off potential revenue sources. According to a recent survey by J.D. Power & Associates, 55% of U.S. hotels offer online access at no charge.
"The reality is that hotels have to find different ways to drive revenue," Greene said.
At the Renaissance Hollywood, Gorelick is trying to do just that by offering guests new entertainment options, such as a Sunday brunch accompanied by live jazz and outdoor movie nights every Saturday at the pool, to entice families to stay at the hotel for food and entertainment.
"Today, every penny count," he said. "Every revenue stream counts."
hugo.martin@latimes.com
Copyright © 2010, Los Angeles Times
_____________________________________________________________
More guests are bringing their own devices, taking a small but significant bite out of the bottom line as the hospitality industry struggles to pull out of a deep slump.
The nation's hotel industry, already struggling to pull out of its worst slump in decades, is now suffering from another loss in revenue because of the booming popularity of cellphones and laptop computers.
In the past, hotel operators could expect to collect extra money by charging guests for in-room phone calls and on-demand movies.
But today most guests check into a hotel packing cellphones and laptop computers that are linked to the Internet and loaded with movies, games and music.
Proceeds from phone calls and movies have represented only a small share of a hotel's overall cash flow, but the sharp decline in revenue from those sources comes as the recession-wracked hospitality industry tries to rebound from the lowest occupancy numbers and room rates in decades.
It has hotel managers scrambling to make up for the loss by offering other entertainment, such as Saturday night movies by the pool, Sunday morning brunches, live music and spa treatments.
"In this economy, any loss of revenue and you are going to pull your hair out," said Bruce Gorelick, general manager of the Renaissance Hollywood Hotel.
Hotel managers such as Gorelick have been frustrated by the loss of revenue since the start of the recession, when demand for hotels plummeted, pushing room rates to their lowest levels in years.
The industry's recovery has been slow, even though leisure travelers began to loosen the purse strings a bit on summer travel. Analysts with Smith Travel Research forecast a modest 4.4% increase in occupancy rates for 2010 and daily room rates that remain flat.
But the industry has a long way to go to overcome a slump that pushed down the average hotel occupancy rate in the U.S. to about 56% in 2009 — the lowest it's been in more than 20 years. Revenue per room dropped so sharply that hotel foreclosures in California quadrupled last year.
"Occupancy is starting to inch up," said Jeff Higley, a spokesman for Smith Travel Research. Still, he said analysts believe that room rates won't return to pre-recession levels for at least two or three years because managers are reluctant to charge too much. "Rates have really taken a beating."
At the same time, revenue from phone calls and in-room entertainment has been drying up.
Annual revenue collected by U.S. hotels from phone calls dropped to an average of $178 per room in 2009 from $1,252 in 1999, a decline of 86%, according to Colliers PKF Hospitality Research. Meanwhile, income from in-room movies and games dropped to $126 per room from $171, a decline of 26%, according to the research firm.
Cheryl Anker is a prime example of the trend.
She travels often managing Off 'N Running Tours, a Los Angeles-based company that organizes running tours and races. During a business trip to San Antonio last year to manage a 5-kilometer race, she said she entertained herself in her hotel room by watching Alfred Hitchcock's "North by Northwest," which she uploaded from the Internet onto her laptop computer.
"So I nestled in with my wine and snacks," she said. "A very good evening."
But hotel entertainment companies such as Lodgenet Interactive Corp. would not call it a good evening. The Sioux Falls, S.D., company is one of the nation's largest providers of in-room entertainment systems, serving nearly 2 million hotel rooms worldwide.
In 2009, Lodgenet revenue dropped by nearly $50 million, or 9.3%, to $484.5 million from the previous year, according to a company earnings report. Lodgenet attributed most of the decline to a drop in sales of on-demand movies, games, music and other interactive services delivered through hotel televisions.
Lodgenet's downward trend continued through the second quarter of 2010 when the company reported a net loss of $3.1 million, according to an earnings report.
Lodgenet blames some of the losses on the recession and predicts that the future rollout of interactive, high-definition televisions in hotel rooms will "allow for the introduction of a broader array of services for guests and new revenue opportunities for hoteliers," company spokeswoman Ann Parker said in a statement.
As for hotel operators, many have given up hope of recapturing the boost from in-room entertainment.
"That revenue is gone," said Matt Greene, general manager of the Hard Rock Hotel in San Diego. "It's nonexistent."
In fact, by embracing the technology that guests demand, such as free Internet access, free computer applications and docking stations for iPod media players, hotels have cut off potential revenue sources. According to a recent survey by J.D. Power & Associates, 55% of U.S. hotels offer online access at no charge.
"The reality is that hotels have to find different ways to drive revenue," Greene said.
At the Renaissance Hollywood, Gorelick is trying to do just that by offering guests new entertainment options, such as a Sunday brunch accompanied by live jazz and outdoor movie nights every Saturday at the pool, to entice families to stay at the hotel for food and entertainment.
"Today, every penny count," he said. "Every revenue stream counts."
hugo.martin@latimes.com
Copyright © 2010, Los Angeles Times
Monday, September 6, 2010
Airport Fights Panhandlers
After a decades-long battle to regulate solicitors at Los Angeles International Airport (LAX), airport officials have finally prevailed. The U.S. 9th Circuit Court of Appeals banned Hare Krishna representatives and other panhandlers from seeking donations at the facility.
A 1997 L.A. city law banned panhandlers from soliciting travelers in airport terminals, parking areas and airport sidewalks. The ban prompted the International Society for Krishna Consciousness to file a lawsuit 13 years ago, claiming the city ordinance was a violation of the group’s right to free speech. The Hare Krishnas stated non-secure areas should be considered public gathering spots.
In 2002, the Los Angeles City Council passed an ordinance limiting solicitors to areas marked with blue tape inside the terminals or along sidewalks. A 2006 ruling by a federal judge upheld the decision that LAX is not a public forum. The Krishnas appealed to the U.S. Court of Appeals, who turned the ruling over to the California Supreme Court in 2008. The March 2010 Supreme Court ruling declared solicitation at the airport was not protected speech.
According to the DailyBreeze.com, panhandling was so problematic at the airport that airport police were specifically assigned to locate and arrest aggressive donation seekers. The court’s ruling will allow police to prevent passengers from being solicited and violators will face up to six months in jail and a $1,000 fine.
The DailyBreeze.com article quoted Gina Marie Lindsay, executive director of Los Angeles World Airports, following the ruling: “This is a huge step forward in ensuring the comfort and safety of the traveling public at LAX. From now on the traveling public will not have to worry about solicitors asking for money.”
The traveling public will, however, still have to worry about being approached by organizations. The ruling bans organizations from soliciting for and collecting money at the airport, but does not ban organizations from talking to travelers, passing out literature and providing information on how to contribute
A 1997 L.A. city law banned panhandlers from soliciting travelers in airport terminals, parking areas and airport sidewalks. The ban prompted the International Society for Krishna Consciousness to file a lawsuit 13 years ago, claiming the city ordinance was a violation of the group’s right to free speech. The Hare Krishnas stated non-secure areas should be considered public gathering spots.
In 2002, the Los Angeles City Council passed an ordinance limiting solicitors to areas marked with blue tape inside the terminals or along sidewalks. A 2006 ruling by a federal judge upheld the decision that LAX is not a public forum. The Krishnas appealed to the U.S. Court of Appeals, who turned the ruling over to the California Supreme Court in 2008. The March 2010 Supreme Court ruling declared solicitation at the airport was not protected speech.
According to the DailyBreeze.com, panhandling was so problematic at the airport that airport police were specifically assigned to locate and arrest aggressive donation seekers. The court’s ruling will allow police to prevent passengers from being solicited and violators will face up to six months in jail and a $1,000 fine.
The DailyBreeze.com article quoted Gina Marie Lindsay, executive director of Los Angeles World Airports, following the ruling: “This is a huge step forward in ensuring the comfort and safety of the traveling public at LAX. From now on the traveling public will not have to worry about solicitors asking for money.”
The traveling public will, however, still have to worry about being approached by organizations. The ruling bans organizations from soliciting for and collecting money at the airport, but does not ban organizations from talking to travelers, passing out literature and providing information on how to contribute
Friday, September 3, 2010
Beware Airport Internet Service
Business travelers are always on the go and down time at the airport can seem like the perfect time to catch up on emails and other work. However, according to a report from CNET News, airport Internet may not be secure at all and travelers may want to think twice before logging on.
The warning stems from a blog posting on Symantec Hosted Services’ website, following an employee’s discovery of fake antivirus software on a computer at an Internet terminal in a U.K. airport. Known as “scareware,” the malware claims a computer is infected with a virus and urges users to purchase software to correct the problem. The malware then disables or uninstalls existing antivirus software.
Symantec cautions that the presence of this malware indicates airport computers and available networks are not protected and possibly infected with other hidden malwares, such as keylogger. There is no way to spot keyloggers, which capture the information users type into the computer. Public computers and networks could be storing travelers’ user names, passwords and other private information. Reversing the damage done by these types of malware can be costly and timely.
The warning stems from a blog posting on Symantec Hosted Services’ website, following an employee’s discovery of fake antivirus software on a computer at an Internet terminal in a U.K. airport. Known as “scareware,” the malware claims a computer is infected with a virus and urges users to purchase software to correct the problem. The malware then disables or uninstalls existing antivirus software.
Symantec cautions that the presence of this malware indicates airport computers and available networks are not protected and possibly infected with other hidden malwares, such as keylogger. There is no way to spot keyloggers, which capture the information users type into the computer. Public computers and networks could be storing travelers’ user names, passwords and other private information. Reversing the damage done by these types of malware can be costly and timely.
Czech Airline to Withdraw from UK Market
After 72 years of service, Czech airline CSA will withdraw from the UK market at the end of October.
The shock decision comes at a time when the loss-making Czech national carrier is being forced to slim down its European network in order to save money.
It means that besides the complete axing of flights from Prague to London Heathrow and Manchester, Skyteam member CSA will be reducing flight frequency on other European routes too.
In a statement issued to ABTN's sister publication, Business Traveller, Philippe Moreels, CSA's VP for sales, marketing and finance said: "Our flight schedule for the winter season reflects the next stage on the path to creating a more flexible, efficient airline.
"Unlike previous approaches to restructuring, which were based primarily on cost cuts, the main point of the strategy now is a new network concept where the least profitable flights are cut."
A further and not well translated statement issued by CSA's head office notes: "As of the upcoming winter season, the CSA network does not count [sic] on a presence in the UK market, ie the operation of flights to London and Manchester."
CSA's UK network has been trimmed in recent years in face of stiffer price competition not just from British Airways but also from budget carriers like Easyjet, Bmibaby and Wizzair.
In its heyday CSA served no fewer than seven UK airports: London Heathrow, Gatwick and Stansted plus Birmingham, Manchester, Glasgow and Edinburgh.
Its current schedule covers just Heathrow and Manchester and with timings that are not particularly convenient for business travellers.
Withdrawing from Europe's largest single travel market does not seem to be a sensible move. But it is understood that CSA's decision was influenced by the fact it can earn many millions of dollars from the sale of its Heathrow slots.
At the time of writing CSA's UK website continues to display flight schedules from November 1. But a CSA spokeswomen verbally confirmed tthe carrier's UK flights will cease from the start of the winter timetable.
by Alex McWhirter
The shock decision comes at a time when the loss-making Czech national carrier is being forced to slim down its European network in order to save money.
It means that besides the complete axing of flights from Prague to London Heathrow and Manchester, Skyteam member CSA will be reducing flight frequency on other European routes too.
In a statement issued to ABTN's sister publication, Business Traveller, Philippe Moreels, CSA's VP for sales, marketing and finance said: "Our flight schedule for the winter season reflects the next stage on the path to creating a more flexible, efficient airline.
"Unlike previous approaches to restructuring, which were based primarily on cost cuts, the main point of the strategy now is a new network concept where the least profitable flights are cut."
A further and not well translated statement issued by CSA's head office notes: "As of the upcoming winter season, the CSA network does not count [sic] on a presence in the UK market, ie the operation of flights to London and Manchester."
CSA's UK network has been trimmed in recent years in face of stiffer price competition not just from British Airways but also from budget carriers like Easyjet, Bmibaby and Wizzair.
In its heyday CSA served no fewer than seven UK airports: London Heathrow, Gatwick and Stansted plus Birmingham, Manchester, Glasgow and Edinburgh.
Its current schedule covers just Heathrow and Manchester and with timings that are not particularly convenient for business travellers.
Withdrawing from Europe's largest single travel market does not seem to be a sensible move. But it is understood that CSA's decision was influenced by the fact it can earn many millions of dollars from the sale of its Heathrow slots.
At the time of writing CSA's UK website continues to display flight schedules from November 1. But a CSA spokeswomen verbally confirmed tthe carrier's UK flights will cease from the start of the winter timetable.
by Alex McWhirter
Germany introduces air passenger tax
The German government has approved the controversial green tax on air travel.
The air travel levy, which must be paid on all departures from German airport as of January 1, is expected to raise €1 billion a year.
Passengers will be forced to pay €8 for flights within Germany and short-haul European flights, while for medium-haul flights the fee will be €25 and for long-haul €45.
Budget carrier Germanwings condemned the new tax as a major distortion of competition, as passengers will choose to fly with airlines outside of Germany.
Thomas Winkelmann, Germanwings management spokesman, said: "It places jobs at risk, restricts people's mobility and acts as a brake on economic recovery in our country. The winners with this new levy are the airports in Holland, Belgium, Poland and Switzerland."
Passengers will lose out, he added: "We will have to pass on the levy introduced by the government to our customers. The levy drains economic power out of Germany and displaces it into neighbouring countries."
Giovanni Bisignani, CEO of the International Air Transport Association (IATA), called the tax "short-sighted policy irresponsibility".
He said: "It's a cash-grab by a cash-strapped government. Painting it green adds insult to injury. There will be no environmental benefit from the economic damage caused."
According to Bisignani, when the Dutch government tried to raise €300 million with a similar tax, it cost the Dutch economy €1.2 billion in lost business.
"It also failed as an environmental measure," he said, "sending travelers across the border to start their journey from more tax-sensible regimes. The Dutch had the good sense to repeal their tax. Why repeat past mistakes?"
by Sara Turner
The air travel levy, which must be paid on all departures from German airport as of January 1, is expected to raise €1 billion a year.
Passengers will be forced to pay €8 for flights within Germany and short-haul European flights, while for medium-haul flights the fee will be €25 and for long-haul €45.
Budget carrier Germanwings condemned the new tax as a major distortion of competition, as passengers will choose to fly with airlines outside of Germany.
Thomas Winkelmann, Germanwings management spokesman, said: "It places jobs at risk, restricts people's mobility and acts as a brake on economic recovery in our country. The winners with this new levy are the airports in Holland, Belgium, Poland and Switzerland."
Passengers will lose out, he added: "We will have to pass on the levy introduced by the government to our customers. The levy drains economic power out of Germany and displaces it into neighbouring countries."
Giovanni Bisignani, CEO of the International Air Transport Association (IATA), called the tax "short-sighted policy irresponsibility".
He said: "It's a cash-grab by a cash-strapped government. Painting it green adds insult to injury. There will be no environmental benefit from the economic damage caused."
According to Bisignani, when the Dutch government tried to raise €300 million with a similar tax, it cost the Dutch economy €1.2 billion in lost business.
"It also failed as an environmental measure," he said, "sending travelers across the border to start their journey from more tax-sensible regimes. The Dutch had the good sense to repeal their tax. Why repeat past mistakes?"
by Sara Turner
Sunday, August 29, 2010
Gun battle at Intercontinental Hotel in Rio de Janeiro
By FELIPE DANA | Aug 21, 2010
RIO DE JANEIRO – Gunmen engaged in a shootout with police took 30 people hostage Saturday at a luxury hotel popular with foreign tourists but within hours freed the captives and surrendered to police.
The upscale, beachside neighborhood where the Intercontinental Hotel is located was transformed into a virtual war zone as the 10 suspects — armed with high-caliber rifles, grenades and pistols — exchanged fire with police in a shootout that killed a bystander as she was getting out of a taxi.
Dozens of other suspects fled into a nearby slum where the shootout began. Spent casings from high-caliber weapons littered the pavement in front of the hotel and residents of the neighborhood said they were awakened by the shooting.
"It seemed as if I was in Iraq," Jose Oliveira e Silva, a resident of the Sao Conrado neighborhood, told the Globo television network.
Amateur video aired on Globo showed a group of black-clad police taking heavy fire and returning it as they took cover behind a garbage truck. Sanitation workers in bright orange jumpsuits huddled behind the truck, waiting for the onslaught to end.
Globo also broadcast images of the shooting victim's body, which lay on the street partially covered by black plastic sheeting.
Another witness, Ricardo Valladares, told Globo: "We are all frightened to death. No one is leaving the building because we don't know if there are more criminals nearby."
The police spokeswoman, who could not be identified because she was not authorized to discuss the matter, said that the gunmen held hostages in the hotel's kitchen "but we negotiated with them."
"All of the hostages are freed and 10 suspects are in custody," she said, adding that police searched the hotel for other gunmen but found none hiding inside.
Other television images showed an elite unit of Brazil's military police entering the hotel and evacuating approximately 400 guests, many of whom were staying there for a dentists' convention.
Security in Rio de Janeiro is of great concern as the city prepares to host the final of the 2014 football World Cup and the 2016 Olympic Games. Officials have vowed to fight violence, and in the past year started an aggressive program of invading slums where heavily armed drug gangs hold sway, driving them out and creating police posts in those poor communities.
The program has managed to clear drug gangs from about 10 slums located in Rio's rich southern zone.
The Intercontinental is a favorite among foreign tourists, but the nationalities of those taken hostage was not immediately known.
Source: AP
RIO DE JANEIRO – Gunmen engaged in a shootout with police took 30 people hostage Saturday at a luxury hotel popular with foreign tourists but within hours freed the captives and surrendered to police.
The upscale, beachside neighborhood where the Intercontinental Hotel is located was transformed into a virtual war zone as the 10 suspects — armed with high-caliber rifles, grenades and pistols — exchanged fire with police in a shootout that killed a bystander as she was getting out of a taxi.
Dozens of other suspects fled into a nearby slum where the shootout began. Spent casings from high-caliber weapons littered the pavement in front of the hotel and residents of the neighborhood said they were awakened by the shooting.
"It seemed as if I was in Iraq," Jose Oliveira e Silva, a resident of the Sao Conrado neighborhood, told the Globo television network.
Amateur video aired on Globo showed a group of black-clad police taking heavy fire and returning it as they took cover behind a garbage truck. Sanitation workers in bright orange jumpsuits huddled behind the truck, waiting for the onslaught to end.
Globo also broadcast images of the shooting victim's body, which lay on the street partially covered by black plastic sheeting.
Another witness, Ricardo Valladares, told Globo: "We are all frightened to death. No one is leaving the building because we don't know if there are more criminals nearby."
The police spokeswoman, who could not be identified because she was not authorized to discuss the matter, said that the gunmen held hostages in the hotel's kitchen "but we negotiated with them."
"All of the hostages are freed and 10 suspects are in custody," she said, adding that police searched the hotel for other gunmen but found none hiding inside.
Other television images showed an elite unit of Brazil's military police entering the hotel and evacuating approximately 400 guests, many of whom were staying there for a dentists' convention.
Security in Rio de Janeiro is of great concern as the city prepares to host the final of the 2014 football World Cup and the 2016 Olympic Games. Officials have vowed to fight violence, and in the past year started an aggressive program of invading slums where heavily armed drug gangs hold sway, driving them out and creating police posts in those poor communities.
The program has managed to clear drug gangs from about 10 slums located in Rio's rich southern zone.
The Intercontinental is a favorite among foreign tourists, but the nationalities of those taken hostage was not immediately known.
Source: AP
quality and service is in direct relationship to price; NOT always
I am in the mood for a rant.
Earlier this year, I was in Omaha and decided to stay at a Holiday Inn with a very large aquatic park as part of hotel facility. I knew there would be kids and heck, I wanted to swim too but the sleeping rooms were so old and felt so dirty that I wore my socks to walk on the carpet. Haven't hotels every heard of steam cleaning carpets... maybe once a quarter would be good. I dont even want to think about what was spilled or the amount of dead skin we all shed.
On my current trip I first stayed at the Four Points at Chicago Ohare. I realized quickly there was a reason that room was so cheap. Maybe in bottom 10 of all Four Points.
Then on to a Doubletree in Little Rock. Wow, that property rocked; new renovation and property was fresh and up to date even though it was build in early 70's. I can certainly tell that more than 60% of its business is corporate. Very friendly staff, horrible breakfast; just no passion and flavor (eggs were so old they were green! which is the reaction they have with the aluminum chaffing dish. Not harmful as we ate green eggs all the time in Navy but not appetizing). I cant wait to go there again in 3 weeks. I will just eat breakfast elsewhere.
Then to Sheraton Atlanta Airport. Rooms are fine (only so much you can do with really small bathrooms; just part of construction and this building is at least from 70's) but, the public space carpets and bar & restaurant are in desperate need of a face lift renovation.
Lastly, I have a client at Ritz Carlton Maui. Not a cheap place; $1000+ a night for the residential suite. I arranged for hotel to pick him up at airport in a limo. I get a call that no limo is there and he is sitting there waiting. I call the hotel; took 5 times before they answered. I called Carey Limo in Maui (this is the vendor the hotel uses); they run on Island time, closed after 7:30pm! So, after 30 minutes of trying, the hotel manager on duty, Chris, said he will call the guests mobile and tell him to take a taxi. Seriously!? Ritz Carlton service?!?!?!?!!? Take a taxi when a limo was booked? I suggest they have a frank discussion with Carey Limo (their preferred vendor) and the PBX at hotel at 9:30pm Maui time.
Geez!
Earlier this year, I was in Omaha and decided to stay at a Holiday Inn with a very large aquatic park as part of hotel facility. I knew there would be kids and heck, I wanted to swim too but the sleeping rooms were so old and felt so dirty that I wore my socks to walk on the carpet. Haven't hotels every heard of steam cleaning carpets... maybe once a quarter would be good. I dont even want to think about what was spilled or the amount of dead skin we all shed.
On my current trip I first stayed at the Four Points at Chicago Ohare. I realized quickly there was a reason that room was so cheap. Maybe in bottom 10 of all Four Points.
Then on to a Doubletree in Little Rock. Wow, that property rocked; new renovation and property was fresh and up to date even though it was build in early 70's. I can certainly tell that more than 60% of its business is corporate. Very friendly staff, horrible breakfast; just no passion and flavor (eggs were so old they were green! which is the reaction they have with the aluminum chaffing dish. Not harmful as we ate green eggs all the time in Navy but not appetizing). I cant wait to go there again in 3 weeks. I will just eat breakfast elsewhere.
Then to Sheraton Atlanta Airport. Rooms are fine (only so much you can do with really small bathrooms; just part of construction and this building is at least from 70's) but, the public space carpets and bar & restaurant are in desperate need of a face lift renovation.
Lastly, I have a client at Ritz Carlton Maui. Not a cheap place; $1000+ a night for the residential suite. I arranged for hotel to pick him up at airport in a limo. I get a call that no limo is there and he is sitting there waiting. I call the hotel; took 5 times before they answered. I called Carey Limo in Maui (this is the vendor the hotel uses); they run on Island time, closed after 7:30pm! So, after 30 minutes of trying, the hotel manager on duty, Chris, said he will call the guests mobile and tell him to take a taxi. Seriously!? Ritz Carlton service?!?!?!?!!? Take a taxi when a limo was booked? I suggest they have a frank discussion with Carey Limo (their preferred vendor) and the PBX at hotel at 9:30pm Maui time.
Geez!
Thursday, August 26, 2010
Troubled Mexicana Airline bought by business group
Here was a news piece about Mexicana andtheir Bankruptcy from the other day, but newest info is they have hored a nw CEO.... however, analysts dont expect them to survive. What amazes me if one of the expenses to control is labor. I thought labor was cheap in Mexico!?
_______________________________________
Aug 21, 2010
A consortium of Mexican businessmen has bought a 95 percent stake in the holding company that controls troubled Mexican airline Mexicana de Aviacion, a spokesman for private equity group Advent International said on Saturday.
Advent International helped put the deal together, but the U.S. private equity firm is not participating as a shareholder in the consortium, called Tenedora K, according to a statement obtained from Advent's Mexican public relations office.
Mexicana, one of Mexico's two major airlines, has halted more than a dozen international routes and stopped selling tickets after requesting creditor protection earlier this month under Mexico's insolvency law.
The consortium bought 95 percent of Nuevo Grupo Aeronautico, which controls Mexicana as well as domestic airlines Mexicana Click and Mexicana Link, the statement said.
"Tenedora K is a company formed by a group of Mexican businessmen as a vehicle to capitalize the mentioned airlines, with the aim of rescuing them from the critical financial and operating situation they are in," the statement said.
Grupo Industrial Omega and Grupo Arizan are among the shareholders of Tenedora K, the statement said.
Mexican hotel operator Grupo Posadas (POSADASL.MX) said on Friday that it had sold its 30 percent share of Nuevo Grupo Aeronautico.
The remaining 5 percent state in the holding company is held by the pilots union, the statement said.
Source: Reuters
_______________________________________
Aug 21, 2010
A consortium of Mexican businessmen has bought a 95 percent stake in the holding company that controls troubled Mexican airline Mexicana de Aviacion, a spokesman for private equity group Advent International said on Saturday.
Advent International helped put the deal together, but the U.S. private equity firm is not participating as a shareholder in the consortium, called Tenedora K, according to a statement obtained from Advent's Mexican public relations office.
Mexicana, one of Mexico's two major airlines, has halted more than a dozen international routes and stopped selling tickets after requesting creditor protection earlier this month under Mexico's insolvency law.
The consortium bought 95 percent of Nuevo Grupo Aeronautico, which controls Mexicana as well as domestic airlines Mexicana Click and Mexicana Link, the statement said.
"Tenedora K is a company formed by a group of Mexican businessmen as a vehicle to capitalize the mentioned airlines, with the aim of rescuing them from the critical financial and operating situation they are in," the statement said.
Grupo Industrial Omega and Grupo Arizan are among the shareholders of Tenedora K, the statement said.
Mexican hotel operator Grupo Posadas (POSADASL.MX) said on Friday that it had sold its 30 percent share of Nuevo Grupo Aeronautico.
The remaining 5 percent state in the holding company is held by the pilots union, the statement said.
Source: Reuters
Wednesday, August 25, 2010
Entry Fees for the U.S. will be collected from tourists in September
The Department of Homeland Security announced that it will begin collecting fees on travellers from Visa Waiver countries beginning Sept. 8, 2010. Travellers will be charged a $14 fee when applying for an Electronic System for Travel Authorization (ESTA). A portion of the fee will go toward funding the Corporation for Travel Promotion, created by the 2009 Travel Promotion Act. “This is an important milestone in the implementation of the Travel Promotion Act,” Commerce Secretary Gary Locke said. “Creating a tourism promotion program to encourage international visitors to vacation in America will help spur economic growth and create more jobs.”
Travel and tourism is the top services export for the United States, totaling $120 billion and supporting more than one million American jobs.
Overseas visitors spend an average of $4,000 per person per trip in the United States.
Oxford Economics estimates the travel promotion program under the Travel Promotion Act will generate $4 billion in new visitor spending and 40,000 new jobs. According to the Congressional Budget Office, the program will reduce the federal budget deficit by $425 million in the next 10 years.
President Obama signed the Travel Promotion Act of 2009 (TPA) into law earlier this year, putting into place a new public - private partnership between the U.S. government and the nation’s travel and tourism industry. Under the TPA, Commerce Secretary Locke will appoint the board of directors for the Corporation for Travel Promotion. Commerce will work closely with the board to ensure the Corporation achieves its goals.
Travel and tourism is the top services export for the United States, totaling $120 billion and supporting more than one million American jobs.
Overseas visitors spend an average of $4,000 per person per trip in the United States.
Oxford Economics estimates the travel promotion program under the Travel Promotion Act will generate $4 billion in new visitor spending and 40,000 new jobs. According to the Congressional Budget Office, the program will reduce the federal budget deficit by $425 million in the next 10 years.
President Obama signed the Travel Promotion Act of 2009 (TPA) into law earlier this year, putting into place a new public - private partnership between the U.S. government and the nation’s travel and tourism industry. Under the TPA, Commerce Secretary Locke will appoint the board of directors for the Corporation for Travel Promotion. Commerce will work closely with the board to ensure the Corporation achieves its goals.
Southwest Airlines: God now has a hand in carrier's mechanical problems
I think this article has GREAT importance for all of us to be aware of
_________________________________________________________________
If there's a God who controls floods and earthquakes, does the deity also have a hand in an airline's mechanical problems?
Apparently so, according to Tucson's most popular airline, which recently added "mechanical difficulties" to the list of acts of God and other events for which the carrier will not be liable if travel is delayed.
Southwest Airlines quietly made the change a few weeks ago, to the puzzlement of some industry analysts.
It appears on page 11 of 32 pages of fine print called a "contract of carriage," which many passengers don't read, but which spells out their recourse in mishaps such as flight interruptions or baggage loss.
Mechanical difficulties - what type is not defined - now appears on a list of events such as wars, riots, storms, earthquakes and other acts of God that are "outside of (Southwest's) control."
In such cases, the contract says, passengers are entitled to refunds only on the used portion of their tickets. Southwest has no obligation to provide compensation for "any type of special, incidential or consequential damages."
Southwest spokesman Chris Mainz downplayed the significance of the change.
Mainz said Southwest would continue to assist passengers just as in the past, for example by putting them up in hotels if they are stranded during travel.
Asked why Southwest would change its contract if it doesn't intend to change its practices, Mainz said in an e-mail that the modification was made to "limit our exposure to liability."
Mainz also said the change would make Southwest "more consistent with the industry standard." However, when the Arizona Daily Star reviewed passenger contracts for four other major airlines - Delta, American, Continental and United - none included "mechanical difficulties" as an event outside the carrier's control.
Robert Mann, an airline industry analyst based in Port Washington, N.Y., called it "surprising" that Southwest, which has a reputation for stellar customer service, would make a change that puts passengers at a legal disadvantage if an aircraft breakdown delays their travel.
Keeping a fleet mechanically sound "is certainly within the control of any airline," Mann said. "Putting mechanical issues in the same category as an act of God - I don't think that's what God intended."
Even if Southwest sticks to its current level of customer aid, Mann said, the new contract wording sets a bad industry precedent.
"While I take Southwest at their word to do the right thing for customers, there are others in the industry who will adopt this on a 'me, too' basis and hold to the letter of that language, really disadvantaging customers on an issue that is absolutely within a carrier's responsibility and control."
Industry analyst Michael Boyd of Evergreen, Colo., agreed other airlines are likely to follow suit.
"The way the industry is today, airlines are sitting around watching each other," he said. "If the other guy does something that makes money and the consumer doesn't revolt, they're going to do it, too."
"I can see (carriers) saying, 'It wasn't our fault the airplane broke down,' and I also can see customers saying, 'I bought a ticket from you and I have reasonable expectation that the airplane is going to work,' " Mann said.
Southwest is the top choice of passengers at Tucson International Airport, used by nearly a third of the 3.6 million travelers who flew into or out of TIA last year.
By Carol Ann Alaimo Jul 25, 2010
_________________________________________________________________
If there's a God who controls floods and earthquakes, does the deity also have a hand in an airline's mechanical problems?
Apparently so, according to Tucson's most popular airline, which recently added "mechanical difficulties" to the list of acts of God and other events for which the carrier will not be liable if travel is delayed.
Southwest Airlines quietly made the change a few weeks ago, to the puzzlement of some industry analysts.
It appears on page 11 of 32 pages of fine print called a "contract of carriage," which many passengers don't read, but which spells out their recourse in mishaps such as flight interruptions or baggage loss.
Mechanical difficulties - what type is not defined - now appears on a list of events such as wars, riots, storms, earthquakes and other acts of God that are "outside of (Southwest's) control."
In such cases, the contract says, passengers are entitled to refunds only on the used portion of their tickets. Southwest has no obligation to provide compensation for "any type of special, incidential or consequential damages."
Southwest spokesman Chris Mainz downplayed the significance of the change.
Mainz said Southwest would continue to assist passengers just as in the past, for example by putting them up in hotels if they are stranded during travel.
Asked why Southwest would change its contract if it doesn't intend to change its practices, Mainz said in an e-mail that the modification was made to "limit our exposure to liability."
Mainz also said the change would make Southwest "more consistent with the industry standard." However, when the Arizona Daily Star reviewed passenger contracts for four other major airlines - Delta, American, Continental and United - none included "mechanical difficulties" as an event outside the carrier's control.
Robert Mann, an airline industry analyst based in Port Washington, N.Y., called it "surprising" that Southwest, which has a reputation for stellar customer service, would make a change that puts passengers at a legal disadvantage if an aircraft breakdown delays their travel.
Keeping a fleet mechanically sound "is certainly within the control of any airline," Mann said. "Putting mechanical issues in the same category as an act of God - I don't think that's what God intended."
Even if Southwest sticks to its current level of customer aid, Mann said, the new contract wording sets a bad industry precedent.
"While I take Southwest at their word to do the right thing for customers, there are others in the industry who will adopt this on a 'me, too' basis and hold to the letter of that language, really disadvantaging customers on an issue that is absolutely within a carrier's responsibility and control."
Industry analyst Michael Boyd of Evergreen, Colo., agreed other airlines are likely to follow suit.
"The way the industry is today, airlines are sitting around watching each other," he said. "If the other guy does something that makes money and the consumer doesn't revolt, they're going to do it, too."
"I can see (carriers) saying, 'It wasn't our fault the airplane broke down,' and I also can see customers saying, 'I bought a ticket from you and I have reasonable expectation that the airplane is going to work,' " Mann said.
Southwest is the top choice of passengers at Tucson International Airport, used by nearly a third of the 3.6 million travelers who flew into or out of TIA last year.
By Carol Ann Alaimo Jul 25, 2010
Sunday, August 8, 2010
Rabid dogs create serious problem for Bali, prompt US travel warning
By Mary Papenfuss | Aug 02, 2010
At least 78 people have been killed over the last two years by bites from rabid dogs roaming Bali, a top tourist hotspot. The island is dangerously short of rabies vaccines for humans, and overwhelmed by more than 30,000 dog bites each year. Officials recently killed some 200,000 dogs instead of initially conducting mass animal vaccinations, as recommended by the World Health Organization. "We are very short of treatment across the island," warned the chief of Bali's provincial health ministry. "We need help." So far no Bali tourists have died of rabies, but a number of nations, including the US and Australia, have issued travelers warnings.
The first case of rabies was discovered in 2008 and the disease has spread rapidly since. It's difficult to wipe out the rabies in part because of the esteem the Balinese hold for dogs. Packs of flea-bitten Bali dogs at beaches, markets and parks are allowed to roam and breed freely as part of the island's Hindu tradition, reports AP. In the traditional Balinese faith, people believe that dogs will take them to heaven. Some 55,000 people a year die of rabies, most of them in Asia. Post-exposure rabies is easily cured with a vaccine, but once symptoms appear, it's too late.
Source: newser.com
At least 78 people have been killed over the last two years by bites from rabid dogs roaming Bali, a top tourist hotspot. The island is dangerously short of rabies vaccines for humans, and overwhelmed by more than 30,000 dog bites each year. Officials recently killed some 200,000 dogs instead of initially conducting mass animal vaccinations, as recommended by the World Health Organization. "We are very short of treatment across the island," warned the chief of Bali's provincial health ministry. "We need help." So far no Bali tourists have died of rabies, but a number of nations, including the US and Australia, have issued travelers warnings.
The first case of rabies was discovered in 2008 and the disease has spread rapidly since. It's difficult to wipe out the rabies in part because of the esteem the Balinese hold for dogs. Packs of flea-bitten Bali dogs at beaches, markets and parks are allowed to roam and breed freely as part of the island's Hindu tradition, reports AP. In the traditional Balinese faith, people believe that dogs will take them to heaven. Some 55,000 people a year die of rabies, most of them in Asia. Post-exposure rabies is easily cured with a vaccine, but once symptoms appear, it's too late.
Source: newser.com
Saturday, August 7, 2010
Greek extremists threaten tourists
By Helena Smith | Aug 01, 2010
Greek security forces have warned of a wave of violence reminiscent of the terror that stalked Italy in the seventies after urban guerillas threatened last week to turn the country into a "war zone".
"Greece has entered a new phase of political violence by anarchist-oriented organisations that are more murderous, dangerous, capable and nihilistic than ever before," said Athanasios Drougos, a defence and counter-terrorism analyst in Athens.
"For the first time we are seeing a nexus of terrorist and criminal activity," he said. "These groups don't care about collateral damage, innocent bystanders being killed in the process. They are very extreme."
The threats came from a guerrilla group called the Sect of Revolutionaries, as it claimed credit for the murder of Sokratis Giolas, an investigative journalist. Giolas was shot dead outside his Athenian home on 19 July, in front of his pregant wife.
The gang promised to step up attacks on police, businessmen, prison guards and "corrupt" media – and, for the first time, threatened holidaymakers.
"Tourists should learn that Greece is no longer a safe haven of capitalism," its declaration said.
"We intend to turn it into a war zone of revolutionary activity with arson, sabotage, violent demonstrations, bombings and assassinations, and not a country that is a destination for holidays and pleasure."
In an accompanying picture, the group displayed an arsenal that included AK 47 assault rifles, semi-automatic pistols and brass knuckledusters.
"Our guns are full and they are ready to speak," it said. "We are at war with your democracy."
The terror threat comes as Greek authorities endure a summer of strikes and escalating upheaval. Military trucks and petrol company vehicles were employed yesterday to alleviate a fuel shortage as more 30,000 lorry and tanker truck operators ignored a government order to return to work on pain of prosecution. Shortages were reported on many holiday islands and destinations in northern Greece where thousands of tourists are stranded.
The far more serious scourge of domestic terrorism was thought to have been eradicated in 2004, with the disbandment of the 17 November group.
Born out of the turmoil that followed the collapse of US-backed military rule, 17 November murdered the CIA station chief, Richard Welch, in 1975.
For the following 27 years it targeted Turkish envoys, juntists, US military personnel, industrialists and western diplomats, including a British military attaché in Athens, Brigadier Stephen Saunders, who was murdered in 2000.
Unlike 17 November, Greece's new generation of urban guerrillas has not tried to garner popular support.
The Sect of Revolutionaries emerged from the rioting after a teenager, Alexis Grigoropoulos, was shot dead by a policeman in December 2008. The men and women thought to comprise its closely guarded ranks are in their late twenties and thirties and appear to espouse violence almost for the sake of it.
"We don't do politics, we do guerilla warfare," its members announced in the proclamation placed on the boy's grave within hours of their first attack, on a police station, in February 2009. Two weeks later they sprayed the offices of a private television station with bullets. Three months after that, they claimed their first victim, Nectarios Savvas, a police officer protecting a state witness. Six people have died in separate attacks this year.
Last month another group, yet to be named, sent a parcel bomb wrapped up as a gift to the office of Michalis Chrysohoidis, the minister in charge of public security. It killed his chief aide.
The surge in violence comes amid rising social tensions over the austerity measures enforced by the government in exchange for €110bn in emergency aid, the biggest bailout in history.
Mounting social unrest, waning support for political parties and record levels of unemployment among an increasingly radicalised youth are believed to have augmented the ranks of anti-establishment groups.
"The economic crisis has most definitely played a role in aggravating the violence," Chrysohoidis said. "And the violence we are seeing is worst than ever before because society as a whole is more violent than ever before."
To date Chrysohoidis, who oversaw the break-up of 17 November during a previous stint in the same post, has ordered police to tread a fine line.
But anger is growing. Security officials say it is only a matter of time before one of the three groups currently active in Greece strikes again.
More worrying, they say, are their connections to the Balkan criminal underworld that has made access to weapons dangerously easy.
"In other European countries, home-grown terrorism has been on the decrease for years," said Drougos. "But in Greece the situation is not unlike pre-Bolshevik revolutionary Russia or Italy at the start of the terror campaign by the Red Brigades… it's very unpredictable and tourists should be vigilant."
Source: The Observer
Greek security forces have warned of a wave of violence reminiscent of the terror that stalked Italy in the seventies after urban guerillas threatened last week to turn the country into a "war zone".
"Greece has entered a new phase of political violence by anarchist-oriented organisations that are more murderous, dangerous, capable and nihilistic than ever before," said Athanasios Drougos, a defence and counter-terrorism analyst in Athens.
"For the first time we are seeing a nexus of terrorist and criminal activity," he said. "These groups don't care about collateral damage, innocent bystanders being killed in the process. They are very extreme."
The threats came from a guerrilla group called the Sect of Revolutionaries, as it claimed credit for the murder of Sokratis Giolas, an investigative journalist. Giolas was shot dead outside his Athenian home on 19 July, in front of his pregant wife.
The gang promised to step up attacks on police, businessmen, prison guards and "corrupt" media – and, for the first time, threatened holidaymakers.
"Tourists should learn that Greece is no longer a safe haven of capitalism," its declaration said.
"We intend to turn it into a war zone of revolutionary activity with arson, sabotage, violent demonstrations, bombings and assassinations, and not a country that is a destination for holidays and pleasure."
In an accompanying picture, the group displayed an arsenal that included AK 47 assault rifles, semi-automatic pistols and brass knuckledusters.
"Our guns are full and they are ready to speak," it said. "We are at war with your democracy."
The terror threat comes as Greek authorities endure a summer of strikes and escalating upheaval. Military trucks and petrol company vehicles were employed yesterday to alleviate a fuel shortage as more 30,000 lorry and tanker truck operators ignored a government order to return to work on pain of prosecution. Shortages were reported on many holiday islands and destinations in northern Greece where thousands of tourists are stranded.
The far more serious scourge of domestic terrorism was thought to have been eradicated in 2004, with the disbandment of the 17 November group.
Born out of the turmoil that followed the collapse of US-backed military rule, 17 November murdered the CIA station chief, Richard Welch, in 1975.
For the following 27 years it targeted Turkish envoys, juntists, US military personnel, industrialists and western diplomats, including a British military attaché in Athens, Brigadier Stephen Saunders, who was murdered in 2000.
Unlike 17 November, Greece's new generation of urban guerrillas has not tried to garner popular support.
The Sect of Revolutionaries emerged from the rioting after a teenager, Alexis Grigoropoulos, was shot dead by a policeman in December 2008. The men and women thought to comprise its closely guarded ranks are in their late twenties and thirties and appear to espouse violence almost for the sake of it.
"We don't do politics, we do guerilla warfare," its members announced in the proclamation placed on the boy's grave within hours of their first attack, on a police station, in February 2009. Two weeks later they sprayed the offices of a private television station with bullets. Three months after that, they claimed their first victim, Nectarios Savvas, a police officer protecting a state witness. Six people have died in separate attacks this year.
Last month another group, yet to be named, sent a parcel bomb wrapped up as a gift to the office of Michalis Chrysohoidis, the minister in charge of public security. It killed his chief aide.
The surge in violence comes amid rising social tensions over the austerity measures enforced by the government in exchange for €110bn in emergency aid, the biggest bailout in history.
Mounting social unrest, waning support for political parties and record levels of unemployment among an increasingly radicalised youth are believed to have augmented the ranks of anti-establishment groups.
"The economic crisis has most definitely played a role in aggravating the violence," Chrysohoidis said. "And the violence we are seeing is worst than ever before because society as a whole is more violent than ever before."
To date Chrysohoidis, who oversaw the break-up of 17 November during a previous stint in the same post, has ordered police to tread a fine line.
But anger is growing. Security officials say it is only a matter of time before one of the three groups currently active in Greece strikes again.
More worrying, they say, are their connections to the Balkan criminal underworld that has made access to weapons dangerously easy.
"In other European countries, home-grown terrorism has been on the decrease for years," said Drougos. "But in Greece the situation is not unlike pre-Bolshevik revolutionary Russia or Italy at the start of the terror campaign by the Red Brigades… it's very unpredictable and tourists should be vigilant."
Source: The Observer
Vatican tells tourists to cover up
Jul 27, 2010
Tourists in skimpy summer clothing were being told to cover up before entering Vatican City today.
The ban had previously applied only to St Peter's Basilica but guards manning the official entry point into the tiny, walled state begun pulling visitors aside overnight for sporting "inappropriate" attire, Italian news agency ANSA reported.
The new decree, particularly targeting those in shorts and shoulder-revealing shirts, sent several tourists trudging off to local stores to buy shawls, scarves and pairs of trousers.
Immodest clothing has been specifically barred from St Peter's for decades and Vatican officials are seemingly sick of visitors flouting the dress-code.
However, locals just nipping inside the Vatican City walls to use its pharmacy, post office and store were particularity bewildered by the clothing crackdown.
Most are accustomed to treating the Vatican like any other part of Rome, ANSA said.
Source: heraldsun.com.au
Tourists in skimpy summer clothing were being told to cover up before entering Vatican City today.
The ban had previously applied only to St Peter's Basilica but guards manning the official entry point into the tiny, walled state begun pulling visitors aside overnight for sporting "inappropriate" attire, Italian news agency ANSA reported.
The new decree, particularly targeting those in shorts and shoulder-revealing shirts, sent several tourists trudging off to local stores to buy shawls, scarves and pairs of trousers.
Immodest clothing has been specifically barred from St Peter's for decades and Vatican officials are seemingly sick of visitors flouting the dress-code.
However, locals just nipping inside the Vatican City walls to use its pharmacy, post office and store were particularity bewildered by the clothing crackdown.
Most are accustomed to treating the Vatican like any other part of Rome, ANSA said.
Source: heraldsun.com.au
Plague outbreak in Peru
Really? The bubonic Plague in 2010?
___________________________________________________
Aug 02, 2010
Peru Health Minister Oscar Ugarte says authorities are screening sugar and fish meal exports from the Ascope province, located about 325 miles (520 kms) northwest of Lima. Popular Chicama beach isn't far away.
An outbreak of plague has killed a 14-year-old boy and infected at least 31 people in a northern coastal province.
Ugarte says the boy, who had Down syndrome, died of bubonic plague July 26.
He said Monday that most of the infections are bubonic plague, with four cases of pneumonic plague. The former is transmitted by flea bites, the latter by airborne contagion. The disease is curable if treated early with antibiotics.
___________________________________________________
Aug 02, 2010
Peru Health Minister Oscar Ugarte says authorities are screening sugar and fish meal exports from the Ascope province, located about 325 miles (520 kms) northwest of Lima. Popular Chicama beach isn't far away.
An outbreak of plague has killed a 14-year-old boy and infected at least 31 people in a northern coastal province.
Ugarte says the boy, who had Down syndrome, died of bubonic plague July 26.
He said Monday that most of the infections are bubonic plague, with four cases of pneumonic plague. The former is transmitted by flea bites, the latter by airborne contagion. The disease is curable if treated early with antibiotics.
Mexicana airlines files for Bankruptcy & stops selling tickets
Although Mexicana states they will continue to fly their scheduled routes, clearly they can not do so for long without selling tickets. The FAA instructed all code share carriers (Delta & Continental) that has sold Mexicana operated flights to immediately reissue the tickets on alternative service.
If you are holding a Mexicana ticket, go to the source that booked it for you for re-accommodation. Your travel insurance (hopefully you purchased some) will cover any out of pocket expenses liked increased airfare on another carrier
If you are holding a Mexicana ticket, go to the source that booked it for you for re-accommodation. Your travel insurance (hopefully you purchased some) will cover any out of pocket expenses liked increased airfare on another carrier
Thursday, July 15, 2010
What American traveler's dont know
Practical Traveler
Delayed? They’ll Put You Up
By SUSAN STELLIN
Published: July 12, 2010
When Keith Brown was stranded in Florida in April because of the volcanic ash cloud that closed European airports, he spent a week at the Westin Lake Mary near Orlando before flying home to England. But the extended holiday was not a financial burden — his airline, the British charter Thomson Airways, paid for his meals and hotel.
That’s not exactly the kind of treatment most American travelers would expect when a flight is canceled. But unlike the United States, where airlines make their own rules on how passengers are compensated when flights are delayed or canceled, the European Union requires airlines to pay penalties of up to 600 euros, or about $750, when the problem is the carrier’s fault, and cover hotel rooms and meals even when it is not.
The law, EC 261, in effect since 2005, applies to any European Union airline flying to or from a member state. But here’s a detail that American carriers would prefer their customers not know: it applies to all flights departing from the European Union, regardless of the passengers’ nationality.
That means travelers flying on American, Delta, Continental, United and US Airways from Europe to anywhere else in the world are covered by the European Union’s passenger rights laws — a fact that representatives from those airlines (except United) reluctantly confirmed, after multiple phone calls and e-mail messages.
Only Delta and American said that they have actually paid claims related to EC 261. Continental and US Airways declined to answer. United referred questions to the Air Transport Association, the trade group representing American carriers.
So the following advice comes with an important caveat: although the Transportation Department, the Air Transport Association, the European Commission and even the State Department say these rules apply to American carriers, it is not clear how willingly airlines actually pay compensation, and how effectively the rule can be enforced. Still, it is worth knowing the law and trying to pursue a claim if you are on a flight from Europe that is canceled or delayed. If you are flying on a European carrier, you’re covered both ways — something to consider the next time you book a flight to Europe.
International Flights: A Look at the Rules
Even within Europe, many people do not know about these passenger rights rules, so the European Commission recently started a publicity campaign to educate travelers about the law.
“If passengers get to the airport and something happens — a flight is delayed or canceled — they may not know what to do if they don’t fly a lot,” said Dale Kidd, a spokesman for the European Commission. “We want to ensure that travel remains a pleasant experience, because sometimes airline travel can be a bit stressful.”
The rules themselves are fairly simple. When a flight is canceled, regardless of the cause, a passenger can choose to get a refund for the unused portion of the ticket or be rerouted on another flight. If this results in an overnight stay, the airline has to pay for a hotel, meals and transportation between the hotel and the airport, even if the cancellation is due to weather or any other factor outside the airline’s control.
If the cancellation is considered within the airline’s control —such as when the plane has mechanical problems — the carrier must also pay each passenger between 125 and 600 euros, depending on the length of the flight and the delay.
For example, if you’re on a flight from Paris to New York that is canceled because of engine trouble and you’re put on another flight that lands more than four hours after your original arrival time, your compensation would be 600 euros.
Delays don’t generally qualify for financial penalties, but if you get stuck overnight — regardless of the reason — the airline has to pay for meals and a hotel. Even for some shorter delays, the carrier has to pay for meals, depending on the length of the flight and how long you’re delayed.
How to Pursue a Claim
Theoretically, airline employees should offer compensation and arrange for accommodations at the time a flight is canceled, but you can also submit a claim later if this doesn’t happen. Many European carriers have instructions on how to do this on their Web sites. British Airways, KLM and Virgin Atlantic all have clear explanations about EC 261 on their Web sites — including instructions on filing a claim.
None of the American carriers I contacted would say how passengers should go about filing a claim, but Mr. Kidd of the European Commission said: “The first place a passenger who wants to make a claim should go is the airline itself — the airlines know this.”
Since the regulation is enforced by government bodies in each member state (not by the European Commission), Mr. Kidd said that if the problem occurred on a European carrier, and the airline itself was not responsive, passengers should contact the enforcement body in the European country where the airline is based. These groups are listed on the commission’s passenger rights Web site, apr.europa.eu, and on some carriers’ sites.
“If it’s an E.U. airline, they’re bound to respect the law so you have recourse as a passenger,” Mr. Kidd said. “The majority of carriers are doing their best to comply.”
That has not always been the case, and a recent report ordered by the European Commission found that there are still problems with carriers’ avoiding paying claims.
Seeking compensation is especially challenging for passengers flying non-European airlines, since there are no enforcement agencies outside the European Union, including in the United States, although travelers can also try contacting the enforcement group in the country where the incident happened.
The Question of Compliance
Steve Lott, a spokesman for the International Air Transport Association, a trade group, said EC 261 has been a source of contention since it was adopted, and that carriers mostly object to the law for penalizing them for things outside of their control — especially the volcano eruption, which the group estimated cost the airline industry nearly $2 billion in lost revenue and compensation paid to passengers.
“There have been cases when somebody has paid $250 for their ticket but they’re getting $400 back in compensation,” he said, adding that the murky enforcement of the law as it applies to non-European carriers creates another point of friction.
“It’s not a level playing field,” Mr. Lott said. Because this issue gets into complex areas of international law, there are no easy answers.
“As a legal matter, we don’t challenge the authority of the European Union to regulate air transportation emanating from its territory,” said John Byerly, the deputy assistant secretary for transportation affairs at the State Department, who is involved in negotiating aviation treaties.
Although Mr. Byerly confirmed that Europe’s passenger rights regulations apply to American carriers leaving Europe, he conceded that there is no body that enforces them in the United States, creating a gap that has yet to be addressed.
“One of the areas you’ll find us talking about in the future is in the area of consumer protection,” he said.
Delayed? They’ll Put You Up
By SUSAN STELLIN
Published: July 12, 2010
When Keith Brown was stranded in Florida in April because of the volcanic ash cloud that closed European airports, he spent a week at the Westin Lake Mary near Orlando before flying home to England. But the extended holiday was not a financial burden — his airline, the British charter Thomson Airways, paid for his meals and hotel.
That’s not exactly the kind of treatment most American travelers would expect when a flight is canceled. But unlike the United States, where airlines make their own rules on how passengers are compensated when flights are delayed or canceled, the European Union requires airlines to pay penalties of up to 600 euros, or about $750, when the problem is the carrier’s fault, and cover hotel rooms and meals even when it is not.
The law, EC 261, in effect since 2005, applies to any European Union airline flying to or from a member state. But here’s a detail that American carriers would prefer their customers not know: it applies to all flights departing from the European Union, regardless of the passengers’ nationality.
That means travelers flying on American, Delta, Continental, United and US Airways from Europe to anywhere else in the world are covered by the European Union’s passenger rights laws — a fact that representatives from those airlines (except United) reluctantly confirmed, after multiple phone calls and e-mail messages.
Only Delta and American said that they have actually paid claims related to EC 261. Continental and US Airways declined to answer. United referred questions to the Air Transport Association, the trade group representing American carriers.
So the following advice comes with an important caveat: although the Transportation Department, the Air Transport Association, the European Commission and even the State Department say these rules apply to American carriers, it is not clear how willingly airlines actually pay compensation, and how effectively the rule can be enforced. Still, it is worth knowing the law and trying to pursue a claim if you are on a flight from Europe that is canceled or delayed. If you are flying on a European carrier, you’re covered both ways — something to consider the next time you book a flight to Europe.
International Flights: A Look at the Rules
Even within Europe, many people do not know about these passenger rights rules, so the European Commission recently started a publicity campaign to educate travelers about the law.
“If passengers get to the airport and something happens — a flight is delayed or canceled — they may not know what to do if they don’t fly a lot,” said Dale Kidd, a spokesman for the European Commission. “We want to ensure that travel remains a pleasant experience, because sometimes airline travel can be a bit stressful.”
The rules themselves are fairly simple. When a flight is canceled, regardless of the cause, a passenger can choose to get a refund for the unused portion of the ticket or be rerouted on another flight. If this results in an overnight stay, the airline has to pay for a hotel, meals and transportation between the hotel and the airport, even if the cancellation is due to weather or any other factor outside the airline’s control.
If the cancellation is considered within the airline’s control —such as when the plane has mechanical problems — the carrier must also pay each passenger between 125 and 600 euros, depending on the length of the flight and the delay.
For example, if you’re on a flight from Paris to New York that is canceled because of engine trouble and you’re put on another flight that lands more than four hours after your original arrival time, your compensation would be 600 euros.
Delays don’t generally qualify for financial penalties, but if you get stuck overnight — regardless of the reason — the airline has to pay for meals and a hotel. Even for some shorter delays, the carrier has to pay for meals, depending on the length of the flight and how long you’re delayed.
How to Pursue a Claim
Theoretically, airline employees should offer compensation and arrange for accommodations at the time a flight is canceled, but you can also submit a claim later if this doesn’t happen. Many European carriers have instructions on how to do this on their Web sites. British Airways, KLM and Virgin Atlantic all have clear explanations about EC 261 on their Web sites — including instructions on filing a claim.
None of the American carriers I contacted would say how passengers should go about filing a claim, but Mr. Kidd of the European Commission said: “The first place a passenger who wants to make a claim should go is the airline itself — the airlines know this.”
Since the regulation is enforced by government bodies in each member state (not by the European Commission), Mr. Kidd said that if the problem occurred on a European carrier, and the airline itself was not responsive, passengers should contact the enforcement body in the European country where the airline is based. These groups are listed on the commission’s passenger rights Web site, apr.europa.eu, and on some carriers’ sites.
“If it’s an E.U. airline, they’re bound to respect the law so you have recourse as a passenger,” Mr. Kidd said. “The majority of carriers are doing their best to comply.”
That has not always been the case, and a recent report ordered by the European Commission found that there are still problems with carriers’ avoiding paying claims.
Seeking compensation is especially challenging for passengers flying non-European airlines, since there are no enforcement agencies outside the European Union, including in the United States, although travelers can also try contacting the enforcement group in the country where the incident happened.
The Question of Compliance
Steve Lott, a spokesman for the International Air Transport Association, a trade group, said EC 261 has been a source of contention since it was adopted, and that carriers mostly object to the law for penalizing them for things outside of their control — especially the volcano eruption, which the group estimated cost the airline industry nearly $2 billion in lost revenue and compensation paid to passengers.
“There have been cases when somebody has paid $250 for their ticket but they’re getting $400 back in compensation,” he said, adding that the murky enforcement of the law as it applies to non-European carriers creates another point of friction.
“It’s not a level playing field,” Mr. Lott said. Because this issue gets into complex areas of international law, there are no easy answers.
“As a legal matter, we don’t challenge the authority of the European Union to regulate air transportation emanating from its territory,” said John Byerly, the deputy assistant secretary for transportation affairs at the State Department, who is involved in negotiating aviation treaties.
Although Mr. Byerly confirmed that Europe’s passenger rights regulations apply to American carriers leaving Europe, he conceded that there is no body that enforces them in the United States, creating a gap that has yet to be addressed.
“One of the areas you’ll find us talking about in the future is in the area of consumer protection,” he said.
Monday, June 28, 2010
FDA report reveals airline food could pose health threat
By Gary Stoller, USA TODAY
Many meals served to passengers on major airlines are prepared in unsanitary and unsafe conditions that could lead to illness, government documents examined by USA TODAY show.
Food and Drug Administration (FDA) inspectors have cited numerous catering facilities that prepare airline food for suspected health and sanitation violations following inspections of their kitchens this year and last, according to inspection reports obtained through the Freedom of Information Act.
REPORT: FDA inspectors found live roaches
The inspections were at U.S. facilities of two of the world's biggest airline caterers, LSG Sky Chefs and Gate Gourmet, and another large caterer, Flying Food Group.
The three caterers operate 91 kitchens that provide more than 100 million meals annually to U.S. and foreign airlines at U.S. airports. They provide meals for nearly all big airlines, including Delta, American, United, US Airways and Continental.
The FDA reports say many facilities store food at improper temperatures, use unclean equipment and employ workers who practice poor hygiene. At some, there were cockroaches, flies, mice and other signs of inadequate pest control.
"In spite of best efforts by the FDA and industry, the situation with in-flight catered foods is disturbing, getting worse and now poses a real risk of illness and injury to tens of thousands of airline passengers on a daily basis," says Roy Costa, a consultant and public health sanitarian.
Conditions open the door to food-poisoning outbreaks, says Costa, a former Florida state food inspector who volunteered to review the FDA reports obtained by USA TODAY.
All three caterers say they work hard to ensure food is safe. And airlines say they monitor the food that goes onto their planes.
LSG Sky Chefs has "comprehensive and multilayered quality-control standards in place to ensure our customers receive safe, healthy and high-quality food," says spokeswoman Beth Van Duyne.
Norbert van den Berg of Gate Gourmet says findings are taken "very seriously" and the company uses an independent auditor for quality assurance. Glenn Caulkins of Flying Food Group also says his company's facilities are independently audited for quality assurance
________________________________________
My comments:
That $6 meal with packaged snack food from other vendors is looking kinda good now. I remember when they tested the potable water (from tap) stored in airplane and found really bad bacteria. I will only drink bottled water inflight now. Now food is off the list too!? Remember, this is all catered food menaing anything not in another food distributor packaging; sandwiches in pay snack boxes and everything you get on an international flight... shall I also add, in all classes of service!
Many meals served to passengers on major airlines are prepared in unsanitary and unsafe conditions that could lead to illness, government documents examined by USA TODAY show.
Food and Drug Administration (FDA) inspectors have cited numerous catering facilities that prepare airline food for suspected health and sanitation violations following inspections of their kitchens this year and last, according to inspection reports obtained through the Freedom of Information Act.
REPORT: FDA inspectors found live roaches
The inspections were at U.S. facilities of two of the world's biggest airline caterers, LSG Sky Chefs and Gate Gourmet, and another large caterer, Flying Food Group.
The three caterers operate 91 kitchens that provide more than 100 million meals annually to U.S. and foreign airlines at U.S. airports. They provide meals for nearly all big airlines, including Delta, American, United, US Airways and Continental.
The FDA reports say many facilities store food at improper temperatures, use unclean equipment and employ workers who practice poor hygiene. At some, there were cockroaches, flies, mice and other signs of inadequate pest control.
"In spite of best efforts by the FDA and industry, the situation with in-flight catered foods is disturbing, getting worse and now poses a real risk of illness and injury to tens of thousands of airline passengers on a daily basis," says Roy Costa, a consultant and public health sanitarian.
Conditions open the door to food-poisoning outbreaks, says Costa, a former Florida state food inspector who volunteered to review the FDA reports obtained by USA TODAY.
All three caterers say they work hard to ensure food is safe. And airlines say they monitor the food that goes onto their planes.
LSG Sky Chefs has "comprehensive and multilayered quality-control standards in place to ensure our customers receive safe, healthy and high-quality food," says spokeswoman Beth Van Duyne.
Norbert van den Berg of Gate Gourmet says findings are taken "very seriously" and the company uses an independent auditor for quality assurance. Glenn Caulkins of Flying Food Group also says his company's facilities are independently audited for quality assurance
________________________________________
My comments:
That $6 meal with packaged snack food from other vendors is looking kinda good now. I remember when they tested the potable water (from tap) stored in airplane and found really bad bacteria. I will only drink bottled water inflight now. Now food is off the list too!? Remember, this is all catered food menaing anything not in another food distributor packaging; sandwiches in pay snack boxes and everything you get on an international flight... shall I also add, in all classes of service!
Monday, June 7, 2010
Germany Plans Air Travel Tax to Help Plug Country's Deficit
Germany plans to impose a tax on air travel as part of a four-year plan to reduce the budget deficit, Chancellor Angela Merkel told reporters in Berlin today.
The levy will yield 1 billion euros ($1.2 billion) a year in revenue for the federal government, the government said in an e-mailed statement. It will be paid by passengers departing from German airports, with the level depending on factors such as the flight’s noise level and fuel consumption, according to the statement.
Germany’s national levy will be replaced by a Europe-wide measure once aviation is subject to European Union carbon- emissions trading, the statement said.
The levy will yield 1 billion euros ($1.2 billion) a year in revenue for the federal government, the government said in an e-mailed statement. It will be paid by passengers departing from German airports, with the level depending on factors such as the flight’s noise level and fuel consumption, according to the statement.
Germany’s national levy will be replaced by a Europe-wide measure once aviation is subject to European Union carbon- emissions trading, the statement said.
Sunday, June 6, 2010
Bumped fliers could see higher compensation
By Dan Reed, USA TODAY
UPDATE: DOT proposes airlines pay bumped passengers up to $1,300
The compensation for getting bumped from your airline seat could be going up soon.
Transportation Secretary Ray LaHood plans to announce today a proposed "inflation adjustment" for passengers who are bumped off flights, along with other proposals aimed at protecting airline consumers.
Currently, most bumped passengers who reach their destination less than two hours later than originally planned get $400 in cash. Those who are delayed longer get $800.
The Transportation Department wouldn't discuss details of LaHood's proposals pending his announcement. But over the years, some travel consumer advocates have suggested that the compensation limits be pushed to $800 and $1,200, respectively. After inflation, that's roughly equal to the $200 and $400 compensation levels set in 1978, when the government first began regulating the practice of "overbooking."
Thirty years ago, when most airline tickets were fully refundable, no-shows were a big problem for airlines. Today, however, a majority of tickets are deeply discounted and are non-refundable, so the problem of no-shows is greatly diminished.
Still, a small percentage of travelers — mostly business people whose higher-priced tickets are fully refundable — don't show up for their flights. As a result, most airlines continue to sell a few more tickets for a flight than there are seats on a plane.
Airlines use computer programs to predict how many no-shows there'll be for a given flight. And they've gotten good at it. Last year, there were only 13 passengers bumped out of every 10,000 domestic passenger boardings. Historically, that number had been more than 20 per 10,000.
"It's getting to be a smaller and smaller problem all the time, thanks to the more sophisticated revenue-management systems," says Bill Swelbar, research engineer at MIT's International Center for Air Transportation.
Still, 762,422 passengers were bumped from domestic flights in 2009. Of that number, 69,234 involuntarily gave up their seats, according to the Transportation Department's Bureau of Transportation Statistics. Statistically, those are very small numbers. But for passengers who are bumped involuntarily, the experience often means great disruption to personal or professional lives.
And it's getting harder to get seats on later flights. In response to the recession, high oil prices and $60 billion in losses since 2000, airlines have trimmed the seats they make available on domestic routes by about 10.5% from 2008
UPDATE: DOT proposes airlines pay bumped passengers up to $1,300
The compensation for getting bumped from your airline seat could be going up soon.
Transportation Secretary Ray LaHood plans to announce today a proposed "inflation adjustment" for passengers who are bumped off flights, along with other proposals aimed at protecting airline consumers.
Currently, most bumped passengers who reach their destination less than two hours later than originally planned get $400 in cash. Those who are delayed longer get $800.
The Transportation Department wouldn't discuss details of LaHood's proposals pending his announcement. But over the years, some travel consumer advocates have suggested that the compensation limits be pushed to $800 and $1,200, respectively. After inflation, that's roughly equal to the $200 and $400 compensation levels set in 1978, when the government first began regulating the practice of "overbooking."
Thirty years ago, when most airline tickets were fully refundable, no-shows were a big problem for airlines. Today, however, a majority of tickets are deeply discounted and are non-refundable, so the problem of no-shows is greatly diminished.
Still, a small percentage of travelers — mostly business people whose higher-priced tickets are fully refundable — don't show up for their flights. As a result, most airlines continue to sell a few more tickets for a flight than there are seats on a plane.
Airlines use computer programs to predict how many no-shows there'll be for a given flight. And they've gotten good at it. Last year, there were only 13 passengers bumped out of every 10,000 domestic passenger boardings. Historically, that number had been more than 20 per 10,000.
"It's getting to be a smaller and smaller problem all the time, thanks to the more sophisticated revenue-management systems," says Bill Swelbar, research engineer at MIT's International Center for Air Transportation.
Still, 762,422 passengers were bumped from domestic flights in 2009. Of that number, 69,234 involuntarily gave up their seats, according to the Transportation Department's Bureau of Transportation Statistics. Statistically, those are very small numbers. But for passengers who are bumped involuntarily, the experience often means great disruption to personal or professional lives.
And it's getting harder to get seats on later flights. In response to the recession, high oil prices and $60 billion in losses since 2000, airlines have trimmed the seats they make available on domestic routes by about 10.5% from 2008
Will Customers Be the Excess Baggage of Airline Consolidation?
May 28, 2010
Wharton School of Business article
Size matters -- or does it?
Airline carriers in the United States would seem to say yes. The industry has lost $60 billion in the last decade and took a big hit more recently due to a cloud of volcanic ash that grounded flights across Europe. Major airlines are looking to consolidate as a way to return to profitability amid continued struggles with high fuel prices, competition from low-cost carriers, and a limited customer pool that shriveled even more when the recession curbed travel for business and pleasure. Two years ago, Delta and Northwest merged, making Delta the nation's largest carrier. United and US Airways recently broke off merger talks, but many believe those discussions were simply a way for United to entice Continental to come to the bargaining table -- a strategy that has reportedly worked.
But experts are skeptical about the "bigger is better" strategy. They acknowledge that, if the deal is done right, merging two carriers into one will cut down on competition, reduce capacity in a saturated industry that already has too many planes in the air, and allow the newly consolidated company to trim its employee ranks and merge costly operations for services like reservations and gate maintenance. If profits return, the carriers could invest them into improving customer service and possibly waiving fees for baggage and in-flight meals that have raised the ire of travelers. But the key words are "if done right." Many observers say the carriers have proved downright flighty at following through on changes that improve operations and put the customer first.
"[Consolidation] doesn't mean you can't have fewer players in the market that are still competing like crazy," says W. Bruce Allen, a Wharton professor of business and public policy. "If you learn to play the game correctly, fewer carriers should equal higher ticket prices and higher profits. But the airlines have never learned to play the game correctly."
The path to prosperity for the airlines lies in reducing flight capacity -- taking planes out of the air or using smaller aircraft for the majority of domestic routes, Allen says. He argues that much of the cost of operating a flight is fixed, while there are only so many travelers who will fly more often due to plunging ticket prices. Thus, it makes more sense for airlines to save money by shrinking the number, or size, of flights, than to battle it out for the limited profit that can be made from bargain-hunters. "We love price wars as consumers," Allen notes. "But they are bad for the airlines."
The average price of a domestic airline ticket in the third quarter of 2009 was $306 -- the lowest level for a summer season since 2005 and more than 14% less than what it was during the same time in 2008, according to the most recent data compiled by the federal Bureau of Transportation Statistics. Raising prices has become more difficult for carriers for several reasons, notes airline industry consultant Jay Sorensen. Low-cost carriers such as Southwest, AirTran and JetBlue have expanded rapidly in recent years -- they controlled 15% of the market in 2000 but accounted for 25% last year, according to the Bureau of Transportation Statistics. And long gone are the days when airlines could price tickets with a degree of obscurity. Any traveler logging onto Orbitz or Priceline can immediately see how one carrier's fare stacks up against the others.
"America has enjoyed a fantastic deal [due to falling ticket prices] for many years. It can't keep going on because the industry simply needs profits and more investment," Sorensen says. "The American airline industry is pretty darn threadbare. If you look at the condition of the airplanes or ... the gates, they're not shiny and new like they should be. It's an industry that is suffering from a lack of fresh capital."
With the exception of JetBlue, all of the major U.S. carriers have cut their capacity over the last two years. United's decreased by nearly 10% between the second quarter of 2008 and the second quarter of 2010, while Continental's went down by 9%, American by 8.5%, Delta by 7.3% and US Airways by 5.1%, according to the Air Transport Association, an industry trade group.
"No airline is really expanding," says Basili Alukos, an airline analyst with Morningstar. "If you go back to the recession after [the September 11, 2001, terrorist attacks], Southwest expanded aggressively, JetBlue and AirTran became public, and regional flying took off. Even the best of airlines -- Southwest -- has [now] cut capacity. They've entered new markets, but on an absolute basis, their market is down.... The industry has reached its saturation point.... It hasn't been profitable because you have too many costs chasing a limited amount of revenue."
Is Consolidation a Cure?
Despite cuts to capacity, the airlines continue to struggle. As the carriers reported their quarterly earnings last week, only Alaska Airlines and Southwest were in the black. United's parent company lost $82 million for the quarter that ended March 31, although the loss was less than analysts expected. Meanwhile, Continental lost $146 million in the first quarter. Although passenger revenue increased, the Houston-based company was hurt by higher fuel costs. The cost of running aircraft has been a constant challenge for the airlines in recent years; in 2008, passenger and all-cargo carriers spent $16 billion more on fuel than in 2007 and $42 billion more than in 2003, according to the Air Transport Association.
But will consolidation help the ailing industry? Experts agree that a partnership between Continental and Chicago-based United makes more sense than a deal between United and US Airways. A combined Continental and United would leapfrog Delta for the title of world's largest airline, and the two companies have limited overlap in their current routes, meaning less scrutiny from antitrust regulators. A merger between the two could lead to more consolidation, Allen says. "If something happens here, American has got to be in play. American is not just going to sit by itself."
The U.S. airline industry was regulated by the government until the late 1970s, and that oversight kept capacity issues in check. For the airlines to lower capacity on their own is easier said than done, notes Wharton management professor Peter Cappelli. Airlines have to pay to maintain grounded aircraft, and eliminating one route could throw others into turmoil if they feed passengers to each other. "It's not like manufacturing where you can just cut back a shift." A merger, however, naturally leads to flight reduction. "Studies have shown pretty convincingly that fares were a lot higher at airports where there was a dominant carrier. If you take a carrier out of the system, there are more of those [kinds of] airports," he says.
But there are plenty of examples in the industry of partnerships that fell apart, or created additional challenges for the newly combined company. Merger talks in 2008 between Continental and United broke down due to the former's concern over the latter's financial health. It has been five years since US Airways merged with America West, but the Arizona-based company is still mired in labor conflicts involving how to merge two pilot seniority lists. Seniority determines pilots' pay, schedules and the types of planes they fly. "Every airline that merges has to [consolidate its seniority lists]," Cappelli says. "The politics of actually working that out are pretty unpleasant because of problems between the union and the airline and, for example, the pilots at Continental versus the pilots at United."
When two large companies consolidate, advance planning and strategizing is key because "if you don't worry about redundancy and union problems or some of the other things that pop up to threaten a merger like this, you're going to have some trouble," says Wharton management professor Lawrence G. Hrebiniak. "One of the hurdles they have to get over is that, when it comes to consolidation or mergers and acquisitions, [airlines] worry so much about plans and executives and the complexity of the labor dimensions that they forget the customer. Sometimes the customer becomes the victim of this process, even if the airlines don't intend it that way."
Bag Fees and Volcanoes
The airlines aren't responsible for the cloud of volcanic ash from Iceland that grounded millions of passengers in Europe. But they are responsible for other customer woes -- such as the announcement by Florida-based Spirit Airlines that it plans to start charging passengers up to $45 for carry-on bags. The ash cloud, which closed European air space for days, is expected to cost the global airline industry more than $1.7 billion in lost revenue, according to the International Air Transport Association, a trade group. But the actual loss over time could be even greater, says Wharton marketing professor David J. Reibstein. The ash cloud reminded customers "how vulnerable air travel is to some of the climactic conditions. Suddenly it makes every flight look a little riskier.... Millions of people have been affected and are going to have second thoughts when they have a choice about flying," Reibstein points out.
Spirit's announcement about carry-on fees followed the 2008 introduction of charges for checked bags. Most airlines now charge $15 to $25 for a customer's first checked bag, with additional fees for more luggage. Some have also started charging fees for in-flight meals and snacks. The airlines collected $740 million in baggage fees in the third quarter of 2009, according to the Bureau of Transportation Statistics.
"It would be nice, for a change, to have a somewhat profitable carrier that is not simply thinking about survival, [but about] 'How do I get ahead now that I'm not dying anymore?' and 'What can I do to attract more customers?'" notes Wharton operations and information management professor Serguei Netessine. That means better customer service. The airlines are "starting to charge for carry-on luggage and starting to charge for everything because they're trying to make money anyway they can. Carriers in bankruptcy or close to bankruptcy are just trying to cut corners.... Ultimately, consumers end up suffering," he says.
Netessine had personal experience with airline customer service dilemmas when he was stranded in Paris due to the ash cloud. He says the airlines did not have enough personnel working at customer service centers to handle the call volume; the carriers' websites were not able to handle the sharp upturn in traffic, and employees who could be reached said they were too busy to talk, or had no information to offer. It's these kinds of operations that airlines could make more efficient while in the process of consolidation, Netessine suggests. He and other experts pointed out that Dallas-based Southwest, the largest U.S. carrier in terms of number of passengers, has been able to consistently remain profitable through efficient turnaround of planes, travelers and baggage. Southwest has also been able to play the role of "good guy" in the airline fee fights, with an advertising campaign built around the fact that the carrier does not charge for travelers' first two checked bags.
"A culture transformation is integral to this kind of turnaround," Netessine says. "You definitely need strong leadership that declares: 'Look, this cannot stand anymore.... We are going to invest in reengineering the entire way that we operate; we're going to go back to the mode where we actually cared about customers.' But to do all that, you need some money. It's an investment that pays back, but if you are near bankruptcy and if you keep losing money, that's just not a good place to start."
Wharton School of Business article
Size matters -- or does it?
Airline carriers in the United States would seem to say yes. The industry has lost $60 billion in the last decade and took a big hit more recently due to a cloud of volcanic ash that grounded flights across Europe. Major airlines are looking to consolidate as a way to return to profitability amid continued struggles with high fuel prices, competition from low-cost carriers, and a limited customer pool that shriveled even more when the recession curbed travel for business and pleasure. Two years ago, Delta and Northwest merged, making Delta the nation's largest carrier. United and US Airways recently broke off merger talks, but many believe those discussions were simply a way for United to entice Continental to come to the bargaining table -- a strategy that has reportedly worked.
But experts are skeptical about the "bigger is better" strategy. They acknowledge that, if the deal is done right, merging two carriers into one will cut down on competition, reduce capacity in a saturated industry that already has too many planes in the air, and allow the newly consolidated company to trim its employee ranks and merge costly operations for services like reservations and gate maintenance. If profits return, the carriers could invest them into improving customer service and possibly waiving fees for baggage and in-flight meals that have raised the ire of travelers. But the key words are "if done right." Many observers say the carriers have proved downright flighty at following through on changes that improve operations and put the customer first.
"[Consolidation] doesn't mean you can't have fewer players in the market that are still competing like crazy," says W. Bruce Allen, a Wharton professor of business and public policy. "If you learn to play the game correctly, fewer carriers should equal higher ticket prices and higher profits. But the airlines have never learned to play the game correctly."
The path to prosperity for the airlines lies in reducing flight capacity -- taking planes out of the air or using smaller aircraft for the majority of domestic routes, Allen says. He argues that much of the cost of operating a flight is fixed, while there are only so many travelers who will fly more often due to plunging ticket prices. Thus, it makes more sense for airlines to save money by shrinking the number, or size, of flights, than to battle it out for the limited profit that can be made from bargain-hunters. "We love price wars as consumers," Allen notes. "But they are bad for the airlines."
The average price of a domestic airline ticket in the third quarter of 2009 was $306 -- the lowest level for a summer season since 2005 and more than 14% less than what it was during the same time in 2008, according to the most recent data compiled by the federal Bureau of Transportation Statistics. Raising prices has become more difficult for carriers for several reasons, notes airline industry consultant Jay Sorensen. Low-cost carriers such as Southwest, AirTran and JetBlue have expanded rapidly in recent years -- they controlled 15% of the market in 2000 but accounted for 25% last year, according to the Bureau of Transportation Statistics. And long gone are the days when airlines could price tickets with a degree of obscurity. Any traveler logging onto Orbitz or Priceline can immediately see how one carrier's fare stacks up against the others.
"America has enjoyed a fantastic deal [due to falling ticket prices] for many years. It can't keep going on because the industry simply needs profits and more investment," Sorensen says. "The American airline industry is pretty darn threadbare. If you look at the condition of the airplanes or ... the gates, they're not shiny and new like they should be. It's an industry that is suffering from a lack of fresh capital."
With the exception of JetBlue, all of the major U.S. carriers have cut their capacity over the last two years. United's decreased by nearly 10% between the second quarter of 2008 and the second quarter of 2010, while Continental's went down by 9%, American by 8.5%, Delta by 7.3% and US Airways by 5.1%, according to the Air Transport Association, an industry trade group.
"No airline is really expanding," says Basili Alukos, an airline analyst with Morningstar. "If you go back to the recession after [the September 11, 2001, terrorist attacks], Southwest expanded aggressively, JetBlue and AirTran became public, and regional flying took off. Even the best of airlines -- Southwest -- has [now] cut capacity. They've entered new markets, but on an absolute basis, their market is down.... The industry has reached its saturation point.... It hasn't been profitable because you have too many costs chasing a limited amount of revenue."
Is Consolidation a Cure?
Despite cuts to capacity, the airlines continue to struggle. As the carriers reported their quarterly earnings last week, only Alaska Airlines and Southwest were in the black. United's parent company lost $82 million for the quarter that ended March 31, although the loss was less than analysts expected. Meanwhile, Continental lost $146 million in the first quarter. Although passenger revenue increased, the Houston-based company was hurt by higher fuel costs. The cost of running aircraft has been a constant challenge for the airlines in recent years; in 2008, passenger and all-cargo carriers spent $16 billion more on fuel than in 2007 and $42 billion more than in 2003, according to the Air Transport Association.
But will consolidation help the ailing industry? Experts agree that a partnership between Continental and Chicago-based United makes more sense than a deal between United and US Airways. A combined Continental and United would leapfrog Delta for the title of world's largest airline, and the two companies have limited overlap in their current routes, meaning less scrutiny from antitrust regulators. A merger between the two could lead to more consolidation, Allen says. "If something happens here, American has got to be in play. American is not just going to sit by itself."
The U.S. airline industry was regulated by the government until the late 1970s, and that oversight kept capacity issues in check. For the airlines to lower capacity on their own is easier said than done, notes Wharton management professor Peter Cappelli. Airlines have to pay to maintain grounded aircraft, and eliminating one route could throw others into turmoil if they feed passengers to each other. "It's not like manufacturing where you can just cut back a shift." A merger, however, naturally leads to flight reduction. "Studies have shown pretty convincingly that fares were a lot higher at airports where there was a dominant carrier. If you take a carrier out of the system, there are more of those [kinds of] airports," he says.
But there are plenty of examples in the industry of partnerships that fell apart, or created additional challenges for the newly combined company. Merger talks in 2008 between Continental and United broke down due to the former's concern over the latter's financial health. It has been five years since US Airways merged with America West, but the Arizona-based company is still mired in labor conflicts involving how to merge two pilot seniority lists. Seniority determines pilots' pay, schedules and the types of planes they fly. "Every airline that merges has to [consolidate its seniority lists]," Cappelli says. "The politics of actually working that out are pretty unpleasant because of problems between the union and the airline and, for example, the pilots at Continental versus the pilots at United."
When two large companies consolidate, advance planning and strategizing is key because "if you don't worry about redundancy and union problems or some of the other things that pop up to threaten a merger like this, you're going to have some trouble," says Wharton management professor Lawrence G. Hrebiniak. "One of the hurdles they have to get over is that, when it comes to consolidation or mergers and acquisitions, [airlines] worry so much about plans and executives and the complexity of the labor dimensions that they forget the customer. Sometimes the customer becomes the victim of this process, even if the airlines don't intend it that way."
Bag Fees and Volcanoes
The airlines aren't responsible for the cloud of volcanic ash from Iceland that grounded millions of passengers in Europe. But they are responsible for other customer woes -- such as the announcement by Florida-based Spirit Airlines that it plans to start charging passengers up to $45 for carry-on bags. The ash cloud, which closed European air space for days, is expected to cost the global airline industry more than $1.7 billion in lost revenue, according to the International Air Transport Association, a trade group. But the actual loss over time could be even greater, says Wharton marketing professor David J. Reibstein. The ash cloud reminded customers "how vulnerable air travel is to some of the climactic conditions. Suddenly it makes every flight look a little riskier.... Millions of people have been affected and are going to have second thoughts when they have a choice about flying," Reibstein points out.
Spirit's announcement about carry-on fees followed the 2008 introduction of charges for checked bags. Most airlines now charge $15 to $25 for a customer's first checked bag, with additional fees for more luggage. Some have also started charging fees for in-flight meals and snacks. The airlines collected $740 million in baggage fees in the third quarter of 2009, according to the Bureau of Transportation Statistics.
"It would be nice, for a change, to have a somewhat profitable carrier that is not simply thinking about survival, [but about] 'How do I get ahead now that I'm not dying anymore?' and 'What can I do to attract more customers?'" notes Wharton operations and information management professor Serguei Netessine. That means better customer service. The airlines are "starting to charge for carry-on luggage and starting to charge for everything because they're trying to make money anyway they can. Carriers in bankruptcy or close to bankruptcy are just trying to cut corners.... Ultimately, consumers end up suffering," he says.
Netessine had personal experience with airline customer service dilemmas when he was stranded in Paris due to the ash cloud. He says the airlines did not have enough personnel working at customer service centers to handle the call volume; the carriers' websites were not able to handle the sharp upturn in traffic, and employees who could be reached said they were too busy to talk, or had no information to offer. It's these kinds of operations that airlines could make more efficient while in the process of consolidation, Netessine suggests. He and other experts pointed out that Dallas-based Southwest, the largest U.S. carrier in terms of number of passengers, has been able to consistently remain profitable through efficient turnaround of planes, travelers and baggage. Southwest has also been able to play the role of "good guy" in the airline fee fights, with an advertising campaign built around the fact that the carrier does not charge for travelers' first two checked bags.
"A culture transformation is integral to this kind of turnaround," Netessine says. "You definitely need strong leadership that declares: 'Look, this cannot stand anymore.... We are going to invest in reengineering the entire way that we operate; we're going to go back to the mode where we actually cared about customers.' But to do all that, you need some money. It's an investment that pays back, but if you are near bankruptcy and if you keep losing money, that's just not a good place to start."
Tuesday, June 1, 2010
Israel attack's Turkish Aid flotilla
Israel's assault on an aid convoy sailing to Gaza has pushed already strained relations with Turkey to breaking point, with trade, tourism and defence ties all likely to suffer, analysts said Monday.
Israeli trade unions might renew their explicit boycott of Turkey as a destination for their members, in view of Ankara's role in organizing the aid flotilla to the Gaza Strip.
"The repurcussions will be at a scale that will not be possible to repair in a short time ... Turkish-Israeli ties are at a breaking point," Sinan Ogan from the TURKSAM think-tank wrote in an online article.
Turkey, once Israel's main regional ally, recalled its envoy from Tel Aviv, scrapped joint military drills and called an emergency meeting at the UN Security Council after the deadly assault on the flotilla of six ships, including three from Turkey.
Ties between NATO's sole mainly Muslim member and the Jewish state had already been damaged amid vehement Turkish criticism of Israel's devastating war on Gaza last year and Ankara's improving ties with Iran.
Some Turkish analysts interpreted the assault as a deliberate warning from the Israeli government towards Prime Minister Recep Tayyip Erdogan's Islamist-rooted administration.
Sedat Laciner, head of the USAK think-tank, also argued the Israeli raid on the flotilla, including its lead ship, the Turkish Mavi Marmara, was "a deliberate act of revenge against Turkey over its attitude on Gaza and Iran."
Many of the dead were Turks, according to activists involved in the campaign to break the blockade of Gaza and deliver supplies to its impoverished people.
"Israel has a professional army. It could have intervened without causing casualties if it wanted. It preferred to act in this way," Ogan said.
Foreign policy analyst Sedat Ergin said Erdogan's government had prompted "a questioning of Israel's security paradigm" with its vocal criticism of the war on Gaza and improving ties with Iran and Syria.
"Israel has come to perceive Turkey as a threat I don't see how relations can be put back on track," he said on NTV television.
Erdogan has defended Iran's nuclear programme and on May 17, together with Brazil's president, brokered a nuclear swap deal with Tehran to avert fresh UN sanctions on the Islamic republic.
In a memorable outburst, Erdogan stormed out of a debate at the World Economic Forum last year, accusing Israel of "barbarian" acts in Gaza and telling President Shimon Peres, sitting next to him, that "you know well how to kill people."
Sentiment in Ankara was further inflamed in January when the Turkish ambassador was given a public dressing down by Israeli Deputy Foreign Minister Danny Ayalon who made him sit on a low couch in a meeting called to protest a television series deemed to be offensive to the Jewish state.
The Israeli commentator Amos Harel, writing in the Tel Aviv-based Haaretz daily, said the envoy's humiliation "now looks like small change".
"Even before then, relations with Turkey had deteriorated over Israel's Operation Cast Lead in Gaza and the generally anti-Israeli stance taken by Turkey's moderately Islamist government. The new crisis is likely to lead to a total break in ties," he wrote in the liberal daily.
Tens of thousands gathered to protest in Istanbul in the aftermath of the assault, with the crowds chanting "Damn Israel!" and "A tooth for a tooth, an eye for an eye, revenge, revenge!".
Israeli trade unions might renew their explicit boycott of Turkey as a destination for their members, in view of Ankara's role in organizing the aid flotilla to the Gaza Strip.
"The repurcussions will be at a scale that will not be possible to repair in a short time ... Turkish-Israeli ties are at a breaking point," Sinan Ogan from the TURKSAM think-tank wrote in an online article.
Turkey, once Israel's main regional ally, recalled its envoy from Tel Aviv, scrapped joint military drills and called an emergency meeting at the UN Security Council after the deadly assault on the flotilla of six ships, including three from Turkey.
Ties between NATO's sole mainly Muslim member and the Jewish state had already been damaged amid vehement Turkish criticism of Israel's devastating war on Gaza last year and Ankara's improving ties with Iran.
Some Turkish analysts interpreted the assault as a deliberate warning from the Israeli government towards Prime Minister Recep Tayyip Erdogan's Islamist-rooted administration.
Sedat Laciner, head of the USAK think-tank, also argued the Israeli raid on the flotilla, including its lead ship, the Turkish Mavi Marmara, was "a deliberate act of revenge against Turkey over its attitude on Gaza and Iran."
Many of the dead were Turks, according to activists involved in the campaign to break the blockade of Gaza and deliver supplies to its impoverished people.
"Israel has a professional army. It could have intervened without causing casualties if it wanted. It preferred to act in this way," Ogan said.
Foreign policy analyst Sedat Ergin said Erdogan's government had prompted "a questioning of Israel's security paradigm" with its vocal criticism of the war on Gaza and improving ties with Iran and Syria.
"Israel has come to perceive Turkey as a threat I don't see how relations can be put back on track," he said on NTV television.
Erdogan has defended Iran's nuclear programme and on May 17, together with Brazil's president, brokered a nuclear swap deal with Tehran to avert fresh UN sanctions on the Islamic republic.
In a memorable outburst, Erdogan stormed out of a debate at the World Economic Forum last year, accusing Israel of "barbarian" acts in Gaza and telling President Shimon Peres, sitting next to him, that "you know well how to kill people."
Sentiment in Ankara was further inflamed in January when the Turkish ambassador was given a public dressing down by Israeli Deputy Foreign Minister Danny Ayalon who made him sit on a low couch in a meeting called to protest a television series deemed to be offensive to the Jewish state.
The Israeli commentator Amos Harel, writing in the Tel Aviv-based Haaretz daily, said the envoy's humiliation "now looks like small change".
"Even before then, relations with Turkey had deteriorated over Israel's Operation Cast Lead in Gaza and the generally anti-Israeli stance taken by Turkey's moderately Islamist government. The new crisis is likely to lead to a total break in ties," he wrote in the liberal daily.
Tens of thousands gathered to protest in Istanbul in the aftermath of the assault, with the crowds chanting "Damn Israel!" and "A tooth for a tooth, an eye for an eye, revenge, revenge!".
Tuesday, May 18, 2010
Outrage over UK police secretly investigating 47,000 ailine passengers
May 16, 2010
Police secretly investigated the travel habits, family, friends and backgrounds of 47,000 innocent people last year after they bought plane tickets to fly into and out of Britain.
The intrusiveness has provoked fury among civil liberties campaigners and now may be stopped by Britain’s new coalition Government.
The flyers were singled out by the ‘terrorist detector’ database, introduced by Labour, monitoring millions of British tourists and other travellers.
Checks included scrutiny of the police national computer, financial records and analysis of ‘known associates’ before people were cleared for travel.
Yet it is understood the £1.2billion system has never led to the arrest of a terrorist – and police now use it to target ‘sex offenders and football hooligans’.
Police have also used it to produce 14,000 intelligence reports on travellers for ‘future use’. They can be shared by security services worldwide.
‘Suspect’ requests likely to lead to innocent holidaymakers receiving ‘red flags’ as potential terrorists include ordering a vegetarian meal, asking for an over-wing seat and travelling with a foreign-born husband or wife.
The system will also ‘red flag’ anyone buying a one-way ticket and making a last-minute reservation and those with a history of booking tickets and not showing up for flights.
A history of travel to the Middle East, Pakistan, Afghanistan or Iran will also trigger an alarm. The new figures, produced by the Association of Chief Police Officers, cover the ten months to this February.
Police arrested 2,000 people – out of a total of 48,682 investigated – after they were flagged up by the computer system.
It is tied into airlines’ ticketing networks and makes judgments about travel habits and friends and family to decide if passengers are a security risk.
All information passengers give to travel agents, including home address, phone numbers, email address, passport details and the names of family members, is shared with an unknown number of Government agencies for ‘analysis’ and stored for up to ten years.
The Home Office claims the system has led to arrests of murderers and rapists – and to 1,000 people being denied entry to Britain.
But it refused to say if any terrorists had been caught by the system, despite it being a counter-terrorist measure.
Even as the ‘profiling’ system went live, its reliability was being called into question. An internal Home Office document revealed that during testing one ‘potential suspect’ turned out to be an airline passenger with a spinal injury flying into Britain with his nurse.
Last night a police source said the e-borders system was proving an invaluable tool to covertly track terrorists and their associates and had also led to large numbers of serious criminals being brought to justice.
The highly-placed source acknowledged that because travel data was being examined on an ‘industrial scale’, ‘mistakes were made’ but said the system was designed to minimise intrusion into innocent lives.
Source: dailymail.co.uk
Police secretly investigated the travel habits, family, friends and backgrounds of 47,000 innocent people last year after they bought plane tickets to fly into and out of Britain.
The intrusiveness has provoked fury among civil liberties campaigners and now may be stopped by Britain’s new coalition Government.
The flyers were singled out by the ‘terrorist detector’ database, introduced by Labour, monitoring millions of British tourists and other travellers.
Checks included scrutiny of the police national computer, financial records and analysis of ‘known associates’ before people were cleared for travel.
Yet it is understood the £1.2billion system has never led to the arrest of a terrorist – and police now use it to target ‘sex offenders and football hooligans’.
Police have also used it to produce 14,000 intelligence reports on travellers for ‘future use’. They can be shared by security services worldwide.
‘Suspect’ requests likely to lead to innocent holidaymakers receiving ‘red flags’ as potential terrorists include ordering a vegetarian meal, asking for an over-wing seat and travelling with a foreign-born husband or wife.
The system will also ‘red flag’ anyone buying a one-way ticket and making a last-minute reservation and those with a history of booking tickets and not showing up for flights.
A history of travel to the Middle East, Pakistan, Afghanistan or Iran will also trigger an alarm. The new figures, produced by the Association of Chief Police Officers, cover the ten months to this February.
Police arrested 2,000 people – out of a total of 48,682 investigated – after they were flagged up by the computer system.
It is tied into airlines’ ticketing networks and makes judgments about travel habits and friends and family to decide if passengers are a security risk.
All information passengers give to travel agents, including home address, phone numbers, email address, passport details and the names of family members, is shared with an unknown number of Government agencies for ‘analysis’ and stored for up to ten years.
The Home Office claims the system has led to arrests of murderers and rapists – and to 1,000 people being denied entry to Britain.
But it refused to say if any terrorists had been caught by the system, despite it being a counter-terrorist measure.
Even as the ‘profiling’ system went live, its reliability was being called into question. An internal Home Office document revealed that during testing one ‘potential suspect’ turned out to be an airline passenger with a spinal injury flying into Britain with his nurse.
Last night a police source said the e-borders system was proving an invaluable tool to covertly track terrorists and their associates and had also led to large numbers of serious criminals being brought to justice.
The highly-placed source acknowledged that because travel data was being examined on an ‘industrial scale’, ‘mistakes were made’ but said the system was designed to minimise intrusion into innocent lives.
Source: dailymail.co.uk
80th anniversary of stewardesses
United Airlines has marked the 80th anniversary of its first stewardesses taking to the air. On 15 May 1930 United's first stewardesses, led by student pilot and registered nurse Ellen Church, make their inaugural flight on a Boeing 80A aircraft from Oakland/San Francisco to Chicago. The 20-hour journey at a cruising speed of 125mph carried 14 passengers and made 13 stops.
Wednesday, May 5, 2010
Ford Fusion rental from Hertz
I have long said that the best consumer exposure to a car is to rent it.
I read an article the other day that commented that for the first time in Canada, GM is within a few hundred thousand vehicles in 2009 away from loosing their #1 spot. The #2 spot was Toyota (and they likely will not see those kind of sale numbers post for 2110) and #3 was Ford.
I can see why Ford is becoming the darling car company; no government bailout; just good management and their cars are surprisingly nice. The Ford Fusion, which is a cousin of the old Escort, is a nice vehicle. Of course I see them advertised on American Idol and such but never drove one. I am pleasantly surprised.
I already make every effort to not pick Chevy's at rental car companies as I know Chevy does not make one vehicle I like. I used to look for any foreign maker but I think now I will add Ford's to that list.
I read an article the other day that commented that for the first time in Canada, GM is within a few hundred thousand vehicles in 2009 away from loosing their #1 spot. The #2 spot was Toyota (and they likely will not see those kind of sale numbers post for 2110) and #3 was Ford.
I can see why Ford is becoming the darling car company; no government bailout; just good management and their cars are surprisingly nice. The Ford Fusion, which is a cousin of the old Escort, is a nice vehicle. Of course I see them advertised on American Idol and such but never drove one. I am pleasantly surprised.
I already make every effort to not pick Chevy's at rental car companies as I know Chevy does not make one vehicle I like. I used to look for any foreign maker but I think now I will add Ford's to that list.
Tuesday, April 27, 2010
Understanding the Thai political crisis
Source: AP
By GRANT PECK Apr 26, 2010
BANGKOK – Thailand's ailing king spoke publicly Monday for the first time since his country descended into political chaos, but the man seen by many as the best hope for securing a peaceful resolution failed to address the deadly crisis that has shut down parts of the capital.
Speaking at the hospital where he has been for more than seven months, King Bhumibol Adulyadej told newly appointed judges that they should faithfully carry out their duties and help keep the country stable.
"In the country, there might be people who neglect their duties, but you can set an example that there are those who perform their duties strictly and honestly," the 82-year-old king said.
At least 26 people have been killed and nearly 1,000 wounded since anti-government protesters known as the Red Shirts began occupying parts of Bangkok in mid-March, closing down five-star hotels and shopping malls and devastating the country's vital tourism industry.
"The king's words will be interpreted by some as a statement of support for those who have been arguing that the police and military have been failing in their duties to maintain peace, law and order," said Prof. Kevin Hewison, a Thai studies specialist at the University of North Carolina. "But as is often the case in recent times, his words can be interpreted in multiple ways."
The king's lack of a clear statement signaled he was not prepared to take a public role in resolving the crisis, as he did in 1973 when he stopped bloodshed during a student uprising and again in 1992 during antimilitary street protests. As a constitutional monarch, he has no formal political power, but the respect he commands makes him one of the country's few credible mediators.
The U.S.-born Bhumibol, the world's longest-reigning monarch, has been hospitalized since Sept. 19, when he was admitted with fatigue and loss of appetite. The palace has said he is recovering from a lung inflammation, but not explained why he has been hospitalized for so long.
"For many, what may be more significant is yet another display of a king in declining health and the specter of succession adding to the politically chaotic times that seem set to drag on for some time," said Hewison, referring to unease about whether the king's heir-apparent, Crown Prince Vajiralongkorn, can keep the monarchy in its same exalted position.
The government said Monday it hopes to resolve the problem peacefully, despite a breakdown in negotiations, but added it could not allow the protests to go on indefinitely.
"We're required to keep peace and return the area to normalcy," government spokesman Panitan Wattanayagorn said.
The Red Shirts consist largely of poor, rural supporters of former Prime Minister Thaksin Shinawatra and pro-democracy activists who opposed the military coup that ousted him in 2006 on corruption allegations. The group — formally called the United Front for Democracy Against Dictatorship — believes that Prime Minister Abhisit Vejjajiva's government — backed by the urban elite — is illegitimate, having been helped into power by the country's powerful military.
The conflict has been characterized by some as class warfare, and a pro-establishment group known as the Yellow Shirts has demanded that authorities crack down on the demonstrators — even implying they might take matters into their own hands.
"The government has the responsibility to protect the people, but instead shows its weakness and inability to enforce the law," Suriyasai Katasila, a leader of the Yellow Shirts, said Monday.
The Yellow Shirts, formally known as the People's Alliance for Democracy, in 2008 took over the prime minister's office for three months and Bangkok's two airports for a week to try to force two pro-Thaksin prime ministers from office. Their self-appointed mission is to keep Thaksin from returning to power.
Many Red Shirt supporters around and outside the capital tried Monday to prevent police reinforcements from moving into Bangkok.
In at least six places around the country, Red Shirt supporters scattered nails along roads, set up checkpoints and searched vans and buses for police officers headed to the capital.
Some police heading to Bangkok were forced to return to their bases, while police in the central province of Phitsanulok, impatient after a five-hour standoff with the Red Shirts, broke through a cordon of protesters who hurled rocks and wooden sticks at them, Thai media reported.
While there was no violence in the central Bangkok shopping area where protesters remained camped for a 24th day, an explosion injured eight people late Sunday near the home of former Prime Minister Banharn Silapa-archa, who is allied with the ruling coalition.
Thaksin, who fled Thailand ahead of a conviction on corruption charges, said Monday that he is in contact with the protesters and defended their cause.
"We just fight for democracy. Let them fight for democracy and justice," he said in Montenegro, one of several countries that have offered him passports, generally in return for investments by the telecommunications billionaire. His appearance belied rumors in Bangkok that he was dead or critically ill.
The government appears to have left itself few immediate ways out of the crisis.
Over the weekend, Prime Minister Abhisit rejected a softened deadline for Parliament's dissolution by the Red Shirts, dashing hopes for a peaceful end to the standoff. He said the priority is stopping "terrorists" whom the government hold responsible for violence associated with the protesters.
There remains the possibility that the courts could force a resolution. The Election Commission has ruled that Abhisit's Democrat Party violated the electoral law in two 2005 cases, and it could be dissolved if the Constitutional Court concurs it is guilty. One of the two cases was submitted to the court on Monday.
By GRANT PECK Apr 26, 2010
BANGKOK – Thailand's ailing king spoke publicly Monday for the first time since his country descended into political chaos, but the man seen by many as the best hope for securing a peaceful resolution failed to address the deadly crisis that has shut down parts of the capital.
Speaking at the hospital where he has been for more than seven months, King Bhumibol Adulyadej told newly appointed judges that they should faithfully carry out their duties and help keep the country stable.
"In the country, there might be people who neglect their duties, but you can set an example that there are those who perform their duties strictly and honestly," the 82-year-old king said.
At least 26 people have been killed and nearly 1,000 wounded since anti-government protesters known as the Red Shirts began occupying parts of Bangkok in mid-March, closing down five-star hotels and shopping malls and devastating the country's vital tourism industry.
"The king's words will be interpreted by some as a statement of support for those who have been arguing that the police and military have been failing in their duties to maintain peace, law and order," said Prof. Kevin Hewison, a Thai studies specialist at the University of North Carolina. "But as is often the case in recent times, his words can be interpreted in multiple ways."
The king's lack of a clear statement signaled he was not prepared to take a public role in resolving the crisis, as he did in 1973 when he stopped bloodshed during a student uprising and again in 1992 during antimilitary street protests. As a constitutional monarch, he has no formal political power, but the respect he commands makes him one of the country's few credible mediators.
The U.S.-born Bhumibol, the world's longest-reigning monarch, has been hospitalized since Sept. 19, when he was admitted with fatigue and loss of appetite. The palace has said he is recovering from a lung inflammation, but not explained why he has been hospitalized for so long.
"For many, what may be more significant is yet another display of a king in declining health and the specter of succession adding to the politically chaotic times that seem set to drag on for some time," said Hewison, referring to unease about whether the king's heir-apparent, Crown Prince Vajiralongkorn, can keep the monarchy in its same exalted position.
The government said Monday it hopes to resolve the problem peacefully, despite a breakdown in negotiations, but added it could not allow the protests to go on indefinitely.
"We're required to keep peace and return the area to normalcy," government spokesman Panitan Wattanayagorn said.
The Red Shirts consist largely of poor, rural supporters of former Prime Minister Thaksin Shinawatra and pro-democracy activists who opposed the military coup that ousted him in 2006 on corruption allegations. The group — formally called the United Front for Democracy Against Dictatorship — believes that Prime Minister Abhisit Vejjajiva's government — backed by the urban elite — is illegitimate, having been helped into power by the country's powerful military.
The conflict has been characterized by some as class warfare, and a pro-establishment group known as the Yellow Shirts has demanded that authorities crack down on the demonstrators — even implying they might take matters into their own hands.
"The government has the responsibility to protect the people, but instead shows its weakness and inability to enforce the law," Suriyasai Katasila, a leader of the Yellow Shirts, said Monday.
The Yellow Shirts, formally known as the People's Alliance for Democracy, in 2008 took over the prime minister's office for three months and Bangkok's two airports for a week to try to force two pro-Thaksin prime ministers from office. Their self-appointed mission is to keep Thaksin from returning to power.
Many Red Shirt supporters around and outside the capital tried Monday to prevent police reinforcements from moving into Bangkok.
In at least six places around the country, Red Shirt supporters scattered nails along roads, set up checkpoints and searched vans and buses for police officers headed to the capital.
Some police heading to Bangkok were forced to return to their bases, while police in the central province of Phitsanulok, impatient after a five-hour standoff with the Red Shirts, broke through a cordon of protesters who hurled rocks and wooden sticks at them, Thai media reported.
While there was no violence in the central Bangkok shopping area where protesters remained camped for a 24th day, an explosion injured eight people late Sunday near the home of former Prime Minister Banharn Silapa-archa, who is allied with the ruling coalition.
Thaksin, who fled Thailand ahead of a conviction on corruption charges, said Monday that he is in contact with the protesters and defended their cause.
"We just fight for democracy. Let them fight for democracy and justice," he said in Montenegro, one of several countries that have offered him passports, generally in return for investments by the telecommunications billionaire. His appearance belied rumors in Bangkok that he was dead or critically ill.
The government appears to have left itself few immediate ways out of the crisis.
Over the weekend, Prime Minister Abhisit rejected a softened deadline for Parliament's dissolution by the Red Shirts, dashing hopes for a peaceful end to the standoff. He said the priority is stopping "terrorists" whom the government hold responsible for violence associated with the protesters.
There remains the possibility that the courts could force a resolution. The Election Commission has ruled that Abhisit's Democrat Party violated the electoral law in two 2005 cases, and it could be dissolved if the Constitutional Court concurs it is guilty. One of the two cases was submitted to the court on Monday.
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