AMERICAN AIRLINES Airbus A300 & Boeing 777 at JFK, New York, USA. Sept 2008.
At a time where airlines are cutting jobs, services, airplanes, while raising fees – it seems odd that American Airlines has decided to move forward with paying out $14million in bonuses — or does it?
There is no denying that moral at some airlines are reaching record low levels. About 72,000 American Airline employees might feel a little less down when they see their performance based bonuses (averaging $200).
According to American Airlines, the incentive program seems to be working – with customer service up 3% and on-time service up 23%.
I think it can be hard for airlines to realize what their greatest investment can be…not planes, new technologies, or routes, but investing into their employees. On a flight with all the “toys,” no fees, and on the newest plane can be great, but if the customer service received is horrid, it can leave a very lasting impression.
Source: Business Week Image: Tom Turner
Virgin Atlantic's Upperclass Suite
Unless you haven’t been watching the news and this is the first time reading this blog you are well aware of this wonderful global economic mess we are in. Businesses have been looking at ways to cut back and save a few dollars.
One of their solutions is putting their frequent travellers back in coach instead of paying for Business or First class. This leaves airlines with a large hole in their revenue with premium passengers down 21% in February and almost 17% in January of 2009.
With these additional empty front seats, airlines have to start asking – is it time to re-arrange their aircraft? Will business travellers be upgraded back to the front of the plane when the economic turmoil is over or will businesses enjoy the money it saved on airline tickets and continue to only pay for economy seats?
Airlines, like British Airways, who rely heavily on long-distance premium travellers for their revenue are hoping to see more frequent travellers returning to the front of the plane soon.
Source: Guardian Image: Start Creative
Alaska Airline MD83 at SeaTac
Alaska Airlines has gotten rid of all the blankets and pillows from all 114 planes in its fleet. The airline states it is in response to the recent Swine Flue outbreak and want to increase the sanitization efforts in its planes. They have also been using a virus killing cleaner inside the cabins to take care of any flu viruses left on their aircraft.
Although I have always been a little un-easy using a “shared” blanket and pillow, I wonder why they haven’t gone the route of some other airlines and allow passengers to purchase their own set of blanket and pillow they can keep?
Source: Business Journal Image: sfPhotocraft
Southwest Boeing 737
It has been about a year since all these wonderous bag fees have started. Southwest (which I have called the “new frills airline” a few times already) has resisted any of these fees and keep all their prices pretty straight forward. Now they are saying they feel they have earned more money with having no fees, since customers are choosing Southwest over airlines that do charge fees.
However, other airlines are sticking to their fees with bringing millions more in in revenue. In fact more airlines are increasing and adding new fees.
Alaksa Airlines just announced they will start charging fees and US Airways will charge $5 extra if a passenger doesn’t pre-pay for baggage fees.
Personally, I understand the fees. I mean the airlines are hurting and people are willing to pay for them. However, it has become nearly impossible to do a true cost comparison for tickets, not knowing what your final price will be.
Source: Dallas Morning News Image: MayorGreg
Boeing 747's at an airline graveyard
As airlines cut flights, that means they don’t have the need for as many planes. Some of those planes are still very airworthy and it is not time for them to be destroyed. A large number of these planes end up in one of a few desert holding yards (not graveyards, since some of them “come back to life”).
About 1,700 planes over the past few years have been taken out of service due to lower demand and older age. According to Ascent Worldwide, plane storage has increased 29% in the past year to over 2,300.
For planes that are still airworthy and hopefully will fly again one day, it can be quite costly to keep them passing their mandated maintenance. Storing a Boeing 747 with hopes of flying again can run about $60,000.00 per year. Yes, that is pricey, but much cheaper than having to buy another 747 in a few years if ticket sales go up again.
Visiting one of these desert parking lots can be very exciting and sad for an airline enthusiast.
Source: AP Image: AP