Sunday, April 11, 2010

Airlines Suffer Largest Losses in History

The headline says it all.

Last year the world wide loss for airlines was $11 billion. That's more the the annual budget for some small countries. And it is the old fashioned stand by traditional airlines that lost the most.

Amazingly there are always new people with lots of cash in their pockets lined up to invest in yet another money loser, although every new upstart believes they have a better formula.

And it is clear the formula of the low cost carriers is working better than the tradional airlines.

But is that just because the old carriers are doing something wrong?

Not entirely, although they can in part be blamed for their own woes.

More significantly however, the corporate traveller is yet to come back. They were the geese that laid golden eggs, paying for business class tickets at best and last minute full fare carriage at worst.

As the economy soured corporations put a huge vice on company travel.

And they put restrictions on the kind of fares their employees could use when they did go away on business.

The bigger they are the harder they fall.

British Airways is going through a terrible time and Japan Airlines couldn't make it without restructuring.

Major hotel chains are also suffering with the growth coming from the less expensive brands only, as the business traveller has become accustomed to simpler tastes in rooms and hotel service.

There are signs that some of the business travel is coming back but they are weak signs and it seems that only the oil producing nations are still into the high life travel North Americans had become accustomed to in the past.

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posted by That Travel Guy @ 6:58 AM  |  0 Comments

Thursday, April 8, 2010

Don't Fear the Body Scanning Equipment.

A few weeks ago I received a comment concerning the potential harm that can be caused by radiation from the new body scanning equipment.

A local doctor, Dr. Gifford-Jones expressed his concern to a reporter and it received a fair bit of coverage, at the same time bringing fear to some people who would have to pass through the scanners to travel.

For me personally, while I respect Dr Gifford-Jones position and others who make similar arguments, particularly as it relates to frequent travelers, it does not change my views on the subject.

I believe we will continue to be challenged with security breaches, which may prove more tragic than the last one was. As a result I still prefer that maximum means to protect travelers be taken. Concerns are extremely valid, and many will prefer the pat down method, but so will the bad guys. That frightens me!


Many of these are personal decisions, and while I don’t have huge confidence in bureaucracies, I somehow don’t think a United States or Canadian government is going to subject is citizenry to death by cancer to prevent death by terrorism.

I accept that study should be on-going to research the facts. In the meantime I will acknowledge everyone’s right to reject the scanner in favour of a pat down…at least until the next terrorist tragedy.

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posted by That Travel Guy @ 1:06 PM  |  0 Comments

Carry on Luggage Restrictions Eased to U.S.


It took a while but it happened.

As of today Canadian passengers travelling to the United States can again carry two pieces of luggage on board,as announced by Transport Minister John Baird.

Transport Canada restricted travellers bound for the U.S. to one carry-on item after the December 25, 2009, event in which Umar Abdulmutallab tried, but did not succeed in bring downing a passenger jet going to Detroit. He had explosives hidden in his underwear which lead to the introduction of new body screening devices in major airports.

"The Government of Canada is unwavering in our commitment to implement the most effective measures possible for a safe and secure aviation system, while upholding a level of comfort and convenience for air travellers," Baird said in a press release. "With more robust air security measures in place for passengers, we are able to remove the temporary carry-on baggage restrictions put into place following the December terrorist attack."

Full body scanners were quickly put in place in all of Canada's larger international airports to screen U.S. bound passengers.

Baird said the federal government is also "strengthening explosive trace detection" and plans to develop a passenger behaviour observation program.

As of today,Thursday, April 8, passengers flying to the U.S. will be permitted to bring two carry-on bags and one personal item, such as a purse.

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posted by That Travel Guy @ 9:11 AM  |  0 Comments

Sunday, April 4, 2010

Westjet Points Program Has Advantages

The following is from Saturdays Ask Journeys column. It fills in some of the information left out of my earlier blog.

A reader asked . I understand Westjet is coming up with its own reward points program. What will it be like and does it mean I can no longer book Westjet through my Airmiles reward points?

My response was...

You will still be able to use your Air Miles points for Westjet after their program is started. Air Miles will simply be buying seats form Westjet as they do for any number of airlines they currently use on behalf of their members.

However, you cannot collect Air Miles points directly from Westjet when you book with them. If you use an Air Miles credit card like the specific American Express or MasterCard partner cards to book your flights, you will collect points on that purchase the same as all other purchases on your card; but you will not be able to use your Air Miles Collector Card with Westjet.

What Westjet has done, and I think they will be extremely successful with it, is launch their own credit card in partnership with RBC.

It is a unique program whose points are cash, which can only be redeemed for Westjet flights or Westjet Vacations packages.

There are two different card options, each have a different annual fee and each returning a different percentage with every purchase.

Because it is a cash-based program, you will not be faced with blackout periods or advance booking requirements.

While cardholders cannot use the dollars collected for more than $500 on a Westjet Vacations package, there are no restrictions on flight purchases at all.
I don’t know what the future plans for the program are, but it looks like the most transparent program in existence at this time.

No product options, no seat sale restrictions, and no hassles based on flight availability. If it’s in the system you can book it.
Westjet may have a winner in this one.

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posted by That Travel Guy @ 5:45 PM  |  0 Comments

Westjet's New Points Program Will be a Winner

Westjet Airlines, after a couple of hiccups, has finally introduced its new concept for reward points exclusively on their own.

They terminated, then re-instated their agreement with AirMiles, as they struggled to come up with the right mix for their own program.

I think the extra planning was worth it.

Don't confuse me with the details must have been one of their planning criteria. They have managed to come up with a plan that is absolutely simple.

Book your trips and receive points that convert easily to straigtforward cash when you want to use them later.

Book on their credit cards, the points go into the program and you can use them as cash as well. No blackouts, no blocking from sale and promotion fares, just straitforward cash.

The only limit is the $500 maximum on booking for their package vacation tour operator division Westjet Vacations.

It's fair, it's simple, and you are not going to be hit with the nickle and dime extra charges currently being attached to Aeroplan and Airmiles points bookings.

A tip of the hat to Westjet...Thinking of their customers as real people who have the capabiltiy of thinking and seeing throught the BS of others.

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posted by That Travel Guy @ 1:02 PM  |  0 Comments

Wednesday, March 24, 2010

Why People are so Loyal to Westjet

By airline standards Westjet Airlines is still a very young company.

On the face of it they followed the formula of other successful low cost carriers like Southwest in the States.

But they really did more, and it has kept paying dividends for them.

They found the means to co-opt there staff in a meaningful way.

What makes this amazing is that Westjet staff likely do not make the salaries that Air Canada employees do.

Yet there is a definite difference.

I contend it is not the people but the companies and their management philosophies.

In my opinion Air Canada employees are excellent workers whose jobs have been under fire for years.

Many will argue that their salaries went out of line in tough times.

But do we want our pilots to be under stress and in conflict.

Can Air Canada not find the means of making its employees owners.

And does every negotiation need to be leading to extreme demands and counterdemands.

I still view Air Canada as a great airline...and I think some steps by new management will take the company in a new direction.

But a spark needs to be lit on the employee side, not by money, but by appreciation, communication, and like Westjet, through a freedom to have fun

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posted by That Travel Guy @ 5:26 PM  |  0 Comments

Tuesday, December 29, 2009

What is Airline Security?

It's an old expression. We close the barn after the horse has escaped.

Today there is a massive overreaction to the failed terrorist attempt over the holidays.

No longer can we take on wheeled carry on luggage. We can take a small purse...or a camera...or a couple of other small items.

The guy had the explosives in his shorts. what does that have to do with what is happening now.

We all fear body scanners will destroy our privacy.

What privacy...Have you seen the images that the scanners portray. There is nothing to see and if one or two losers in security get turned on by that against the thousands who want to protect us, so be it.

These scanning devices are expensive and we will all pay for them...but tests seem to confirm that they are are viable option.

How in the world are airlines going to justify charging for second bags now as security issues force us into second bags.

And if the hold is more full with these new bags which once resided above our heads, will they be happy losing cargo revenue. this revenue is very important to airline bottom line.

The current solution cannot be permanent. But there is a solution waiting to be implemented.

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posted by That Travel Guy @ 6:52 PM  |  0 Comments

Friday, April 3, 2009

Two Realities for the Canadian Air Traveller

It is almost certain that Air Canada, by the end of the year will be in bankruptcy protection. But let me offer one certainty.

The Air Canada name will live on and we don't have to fear losing our tickets as a result of bankruptcy or restructuring.

But you can be sure routes will be cut and frequency to some markets decimated.

The second certainty in my mind is that Westjet, even though it is suffering from some of the same challenges, will not only not need to go into bankruptcy protection, but will use Air Canada's misfortune to gain even a larger share of the domestic market.

It will also grow into the United States and its careful strategy of expanding its Westjet Vacations divisions suggest it too will grow and erode some of the other tour operators, including Air Canada Vacations.

We are seeing a slow down in overseas bookings and it is likely to hasten Air Canada's decision to restructure. And I have suggested, don't worry, there are always people willing to through more money at an industry that taken over history has likely never made anybody any money for any sustained period of time.

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posted by That Travel Guy @ 3:44 PM  |  0 Comments

Sunday, August 17, 2008

The Cell Phone Battle in the Air May Be Over

As the cell phone debate in the United States went on with the FCC first saying they would not allow them on aircraft, the Europeon Union was quietly moving to approve their usage.

While still not allowed it now seems clear that there are no roadblocks; notwithstanding the 70% of consumers surveyed who oppose them.

Now even the FCC seems to agree they are ok from a safety perspective and have concluded technology can not be halted at the door of the aircraft.

So airlines will have to make some decisions. Are they enough of a nuisance factor to make airlines say no to their customers who demand them? And unfortunately it is usually the high paying corporate ticket holders who feel they need them most.

Stand by for gossip in the sky.

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posted by That Travel Guy @ 9:43 AM  |  0 Comments

Sunday, August 3, 2008

Rembember when water was free?

It had to happen didn't it?


U.S. Air has now taken the expression 'there's no free lunch' to the absolute extreme. There has not been free food for any meal for economy passengers on an airline for a long time.


Then came the airline rush to charge for the second bag, the first bag, the increase in price for the second bag and the first bag before many were even aware the charges were in place as they went to book their first flights since the fee eruption took place.


We couldn't very well know what the new fees were because airlines were falling over each other doing internal research to see what portions of the old fare they could piece off into a separate charge to make the base fare look less intimidating.


As the old Chinese proverb goes it appears the airlines prefer the 'death of a thousand cuts' approach.


But now, even as medical experts warn us that airline travel can have a dehydrating effect, U.S. Air will start charging for water onboard their aircraft. And if you are expecting that little bag of pretzels, forget it.

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posted by That Travel Guy @ 9:41 AM  |  0 Comments

Sunday, July 27, 2008

Naked Man in Airplane Poses Terror Threat

At first it seemed like a sad but funny story. A man disrobes completely and starts running up and down the aisles of a plane in the United States.

Obviously disturbed, the flight attendants convince him to put his clothes back on. Then the real trouble starts as he tries to open the emergency door, giving new meaning to wanting a breath of fresh air.

Members of the Boston professional soccer team take him down, tie him up, and the plane is diverted to the nearest airport to turn the crazy guy over to police.

Now the greater debate emerges. Had he succeeded in opening the door would that have endangered anyone else in the aircraft, particularly those who were not buckled in? Could the aircraft have landed safely?

And is this an education for terrorists who might find a way of getting seats in all the emergencey exit rows.

This week the plane that had an engine explosion that caused part of the cabin to buckle did land safely...And the pilots are supposedly locked in to their section of the aircraft.

But the question arises still. What are the dangers and should we be worried. More importantly is there a message to the secutity people at both the airlines and the government levels.

I for one will be casting a questioning eye at the people seated in these aisles for the next few trips I take by air.

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posted by That Travel Guy @ 5:52 AM  |  0 Comments