Main News June 21st 2013

 

A drop in the ocean?

United Airlines has confirmed a deal with the low carbon fuel maker AltAir Fuels that will see it purchase biofuel and other renewable products for future flights. Under the terms of the contract AltAir Fuels will produce the fuel from a retrofit portion of an existing refiner.

As many readers will be aware, biofuel is a substitute for traditional petroleum-based jet fuel, and it requires no modification for use with existing engine technology. United has said that it has plans to buy 15m gallons of the fuel at a rate of 5m gallons per year over a three year period: this will start in 2014. Further, United has the option to purchase more if required. Perhaps the most interesting fact is that United has revealed that it is purchasing the biofuel at a cost that equates to that of traditional fuel.

This Los Angeles facility thus becomes AltAir’s first fuel production project. Although in terms of the environment the quantities under discussion are minute, nonetheless the initiative should be welcomed by the sector.

 

 

 

Knife ruling overturned

It’s been some time coming but finally a decision has been made on the topic of blades on board aircraft. The TSA’s John Pistole has decided not to permit passengers to carry small knives on aircraft: this comes in the wake of much criticism from both the public and airline cabin crew.

John Pistole had earlier proposed to slacken the regulations over knife carriage, regulations that date back to the 9/11 disasters. April 25 was mooted as the date that the law would change but this announcement caused so much outcry that the TSA was obliged to reconsider its stance. This latest decision seems likely to restore the status quo.

 

 

Air Canada looking for savings

Canada’s principal carrier has announced that it will be looking to trim costs by up to 15% in the medium term. To achieve this it will seek to add capacity whilst introducing more fuel-efficient aircraft; also planned is the launch of a low cost carrier.

The airline believes that capacity for the coming year will be expanded by 9-11%, this in part occasioned by the acquisition of five B777-300ER aircraft along with seven Dreamliners. Air Canada added that its transfer of Embraer 175 aircraft to Sky Regional would assist it in reducing the overall cost per seat mile by up to 15%.

 

 

Staff representation still far from clear

The Teamsters union has been escalating its campaign to oust other unions within the industry.

Teamsters’ officials have said that they have filed a petition with a federal labor agency to try and force an election against the Transport Workers Union in the representation of mechanics at American Airlines. Moreover, the Teamsters are seeking to represent mechanics at US Airways who are currently represented by the machinists’ union. The outcome of both elections will determine which union will eventually negotiate with the newly-merged airline. It is expected that American and US Airways will seal the merger deal within the next few months.

The Transport Workers and the International Association of Machinists and Aerospace Workers said earlier that they would share the representation of the mechanics and other ground workers after the two carriers merge. However, such a deal would be unworkable if either loses an election to the Teamsters.

By law, the Teamsters need the support of at least half of the American Airlines’ mechanics to force an election.

 

 

Delta to scale down at Memphis

Delta Air Lines has said that it is planning to drop Memphis as a hub later this year. This will entail making 230 staff redundant, whilst it cuts back on flights to make the location more profitable. Delta has said, though, that some staff will be offered buy-out packages and that others will have the option of other jobs. The carrier added in a memorandum to its staff that escalating fuel costs and its reliance on uneconomical 50 seat regional jets have contributed to an essentially unprofitable situation. The job cuts, which will involve customer service staff and Delta Cargo workers, will take effect from the start of September.

 

In Brief

According to data recently released by the US Department of Transportation’s Bureau of Transportation Statistics, US scheduled passenger airlines employed 2.7% fewer staff in March this year compared to figures from March 2012. This represents the seventh consecutive month that employment levels have been lower than those of a year ago.

Main News June 5th 2013

 

March statistics: good overall

Airlines reported no tarmac delays of more than three hours’ duration on domestic flights in March, although there was one tarmac delay of more than four hours on an international flight. This data was gleaned from the US Department of Transportation’s Air Travel Consumer Report, which was released recently. It is understood that the long tarmac delay, which involved a Bogotá flight, is under investigation by the Department.
All the big US airlines have been required to file complete reports on extended tarmac delays for domestic flights since October 2008. Moreover, in 2011, carriers operating international flights mere not entitled to permit tarmac delays at US airports to last longer than four hours without giving passengers an opportunity to disembark. The only exceptions to the time limits for domestic and international flights are those involving safety, security or air traffic control-related reasons.

 

Travel light for better treatment

American Airlines has extended preferential boarding to customers flying with small bags or no carry-on bags.

The carrier says that customers not needing to stow a bag in an overhead storage bin will be able to board between the Group 1 and Group 2 boarding queues. Currently, American gives boarding priority to its first class and elite level fliers before moving on to Groups 1 through 4. The carrier adds that it successfully trialed the new process at seven airports earlier this year and in conclusion, it has now rolled out the change system-wide, in an effort to reduce its boarding times.

American cites on-time performance as being a key factor in the airline’s dependability rating: simply put, every minute saved during boarding allows American to push back from the gate earlier, thereby resulting in a more timely departure and arrival.

The other side of the coin also relates to airline behavior. Airline officials reckon that boarding times have increased in the last few years: this is because the airlines have cut back on flights, which in turn makes aircraft more crowded; added to this are charges for checking baggage, which encourages passengers to take their luggage on board the aircraft. The subsequent scenario is not difficult to imagine… less space in the bins can cause tempers to rise.

However, American believes that this initiative should trim around two minutes off the boarding time, which constitutes a useful saving.

In a further announcement, American has said that customers at the gate who decide they’d like to board prior to Group 2 will be able to gate-check their carry-on bag at no charge. Clearly, some fliers may want to benefit from this and move up the queue although the corollary is that these passengers could effectively fly without paying a baggage fee. And, by extension, if more and more travelers decide to gate-check their bag, then that will tie up the check-in staff, to the detriment of the whole operation that is seeking to be more efficient and improve departure times.

 

Better conditions on the horizon?

Low paid workers within the ground handling sector is not exactly news. Whatis news, though, is when activists start lobbying a city council to improve the working conditions and wages of airport handlers. Exactly this has happened at Philadelphia International, where community activists, along with an inter-faith group, have been trying to secure better conditions for the 1,500 or so workers employed at the airport.

To that end, the POWER group (Philadelphians Organized to Witness, Empower and Rebuild) has held a prayer vigil and been vocal in its representations for the staff affected, who are employed by a subcontractor, PrimeFlight Aviation Services, of Nashville.

Part of the problem hinges on the two year lease extension that will allow for a US$734m cash injection at the hub. However, the lease must secure council approval first – and the deadline for this falls at the end of June. Unless that is in place, then airlines would be bereft of a contract and would be able to pull out of the airport with just 30 days’ notice.

Check out the check-in check

Airlines are collecting record baggage fees – this fact has been aired at length in the media. In fact, some 55% of all travelers still check in their luggage, either all or some of the time. These were the findings of a recent survey conducted by The GO Group, an international ground transportation service provider and GO Airport Express, a GO member and Chicago-based ground transportation company that serves O’Hare International and Midway airports.

In the recent survey, more than 570 travelers were questioned on their luggage habits. Just 27% said that they always check in their luggage, while 28% said that they both check in and carry-on bags. A mere 19% admitted that they always carry luggage on board.

According to the Bureau of Transportation Statistics, the country’s 15 largest carriers collected in total US$3.5bn in bag fees in 2012 as part of their attempts to boost their balance sheets.