International Premium Travel Sees First Uptick in Nearly Two Years
The International Air Transport Association reported that international premium travel was up 1.7 percent in December 2009 over a year earlier. That’s the first increase since May 2008. Economy travel was up five percent over a year earlier.

The recession hit airlines hard throughout the first half of 2009, but a post-recession upturn began in the second half. May marked the low point for premium travel while February marked the low point for economy travel. (Source: IATA press release).

Global Air Capacity Grows for the Sixth Month in a Row More good news came from OAG, the aviation data tracking company.

It reported that in February, global airline capacity was up five percent, the sixth month in a row that it has increased. The single exception: North America, which reported a one percent decline in February in both flight frequency and capacity.

However, North America saw positive growth of three percent and two percent for frequency and capacity in flights to and from the region. Decreases continue on service between North America and Western Europe, where routes have five percent fewer seats and five percent fewer flights for the month.

Still, the OAG said airlines are adding routes in North America—108, with most being domestic flights. (Source: OAG press release).

U.S. Airline Revenue Up for First Time in More Than a Year
Other positive airline news: The Air Transport Association reported that passenger revenue rose 1.4 percent in January, reversing 14 consecutive months of declines.

Traffic was down very slightly--.4 percent—and the average price to fly one mile was up very slightly--.6 percent. James C. May, president and CEO of the ATA, said that the small revenue increase, coupled with a 17 percent increase in cargo traffic, could be the sign of a recovery. (Source: ATA press release).

Business Travel Continues Slow Recovery
Business travel continues its slow recovery with more than one in seven (15 percent) adults planning at least one business trip during the next six months, up from 13 percent recorded one year earlier.

According to the travel horizons survey co-authored by Ypartnership and the U.S. Travel Association.The U.S. Travel Association projects a slight increase in both business and leisure travel for 2010 over 2009. The "perceived safety of travel," declined from 93.8 in October 2009 to 84.8 in February 2010, presumably due to lingering concerns about the "Christmas Bomber" incident that occurred in Detroit over the recent holidays. (Source: Ypartnership and U.S. Travel Association press release).

Virgin America Ups Baggage Fees, American Charges for Blankets
Airlines continue to add on fees. American Airlines, following the lead of other airlines, will charge $8 for blankets and pillows in coach starting May 1.

Virgin America upped its baggage fee for all checked bags to $25 from $20. First Class passengers continue to check two bags for free; Main Cabin select and Main Cabin passengers with refundable fares can check their first bag for free. (Source: Virgin America press release, American statement).

Road Warriors Biggest Worry is Those at Home
Nearly 74 percent of business travelers say their stay-behind spouse has expressed concern about being left home alone, according to a survey commissioned by Logitech, a Swiss technology company.

Even more, 79 percent frequently worry about their significant other when traveling for business. Fifty-nine percent said they would look for a job with less business travel when the economy improves. And 54 percent would take a $5,000 paycut if it meant never having to travel for work again. (Source: Logitech press release)

Demand continues to fall faster than airlines can cut capacity; capacity cuts were two percent. The decline was biggest in Asia, 8.4 percent; North America was second with 6.2 percent.

The Middle East was the only region to see traffic grow, 3.1 percent. There was one bit of good news: the fact that fuel prices remain well below last year’s levels. But IATA projects that airline revenues will drop $35 billion to $500 billion this year. (Source: IATA press release).

Southwest Offers Free Wi-Fi on Four Planes
Southwest Airlines expects to have four aircraft with in-flight Wi-Fi this month –you’ll be able to tell if you’re aboard one from the placards you see upon boarding and onboard instruction sheets.

Southwest is offering the service for free during the test period. Passengers will be able to log on using Wi-Fi enabled devices such as laptops, iPhones and smart phones. Southwest is also offering an in-flight homepage with the service. It includes an in-flight homepage with a flight tracker and local news and information.

Passengers can follow the plane’s flight path and view points of interest they’re flying over. Cellular technology will not work. (Source: Southwest press release).

More Airlines Go Cash-Free
United Airlines and American Airlines are phasing out cash in flight and will only accept major credit cards and debit cards after a transition period. United is introducing EasyPurchase March 23.

After a brief transition, it will only accept credit and debit cards on flights within the United States, including Hawaii, and on flights to and from Canada, Mexico, Central America and the Caribbean. It will continue to accept cash on flights to and from Europe, Asia, the Middle East and South America. On United Express, it will continue to accept cash.

American will begin its transition to credit and debit cards only this summer on flights within the United States and to and from Canada. (Source: United, American press releases).

Delta Enables Mileage Transfers Between Sky Miles, Worldperks
Delta Air Lines said that Delta SkyMiles and Northwest WorldPerks members now can link frequent flyer accounts and transfer miles between both accounts at no charge. Members who link their accounts before March 15, 2009 will earn 500 bonus miles.

This means members who have SkyMiles and WorldPerks accounts can visit delta.com to link their accounts and transfer any amount of miles into either account on an unlimited basis. Both accounts will remain open and functioning until late 2009 when Delta plans to merge the two programs. (Source: Delta press release).

More Accidents But Fewer Fatalities in 2008
On the bright side, aviation safety performance improved, with the total number of aviation fatalities dropping from 692 in 2007 to 502 in 2008, a 56 percent improvement in the fatality rate, according to IATA.

There were more accidents in 2008—109 compared to 100—and the number of fatal accidents increased from 20 in 2007 to 23 in 2008. There were regional differences. North Asia had zero losses.

North America, Europe and the Asia Pacific performed better than the global average; Africa’s accident rate was 2.6 times worse than the world average, but that was a vast improvement over 2005, when it was the worst in the world. Separately, the U.S. Department of Transportation said that the U.S. has seen a 65 percent reduction in the aviation fatal accident rate between 1997 and 2006.

Before the fatal crash in Buffalo last month, the DOT said that there had been no fatal commercial accidents for more than two years. (Source: IATA, DOT press releases).

American AAdvantage Reduces Mileage Accrual, But Drops FF Booking Fee
American Airlines’ AAdvantage no longer offers minimum mileage guarantee for its non-elite status members for shorter flights on American Airlines, American Eagle, AmericanConnection, oneworld member airlines, AAdvantage participating airlines as well as rail service and codeshare service booked under an AA flight number.

Customers now will earn AAdvantage miles only for the actual miles flown or, in some cases, for the applicable percentage of miles flown. But, in a give-back for travelers, American has eliminated the $5 fee to book frequent flyer miles. (Source: American Airlines press release).

New Delta Three-Tiered Award Structure Gives More Flexibility for Redeeming Miles
Delta Air Lines new three-tiered Award structure allows customers to combine dates, as well as Economy, First and BusinessElite cabin seating at various mileage levels to create their itineraries.

SkyMiles members also are able, once again, to use miles to book the last seat on a flight. For booking a round-trip flight, tiers now start at 25,000, 40,000 and 60,000 miles rather than 25,000 and 50,000 miles. Customers may search for and book Award Travel using the new structure online. Members cam earn miles with Delta, Delta Shuttle, the Delta Connection carriers, Delta AirElite and other SkyTeam airlines as well as with more than 100 partners, including the Delta SkyMiles Credit Card from American Express. (Source: Delta press release)

American Offers Priority Check
in and Boarding to Eite and Premium Travelers at JFK American Airlines is now offering PriorityAAccess privileges at John F. Kennedy International Airport to AAdvantage elite status members, First and Business Class travelers, AAirpass customers, and full-fare Economy Class customers.

They get a dedicated check-in area at the ticket counter, go through exclusive security screening lanes and have a separate boarding lane at JFK departure gates.

Signs clearly mark special check-in areas and security lanes. Priority AAcess security lanes are also available at Dallas/Fort Worth, Chicago O’Hare, Miami, Los Angeles, New York La Guardia, St. Louis, San Francisco, Boston and San Juan, Puerto Rico. (Source: AA press release).

Global Entry Program Speeds Frequent Travelers Through Passport Control
at Chicago
US. Customs has opened Global Entry centers at Chicago O’Hare International to expedite international arrival processing for returning U.S. citizens and lawful permanent residents.

Global Entry travelers go to a special kiosk and insert their U.S. passports or lawful permanent resident cards into a document reader. The kiosk will direct travelers to provide digital fingerprints and will compare that biometric data with the fingerprints on file.

Global Entry is in place at JFK, George Bush Intercontinental in Houston and Washington Dulles airports. (Source: U.S. Customs and Border Protection press release).

TSA, Continental Test Paperless Boarding in Cleveland
The Transportation Security Administration (TSA) and Continental Airlines are testing Paperless Boarding Passes at Cleveland Hopkins International Airport.

The boarding passes are passengers’ cell phones or PDAs. The passes have bar codes and passenger and flight information; security officers check them with handheld scanners. (Source: Continental press release).

TSA Expands Self Select Lanes to Newark
The Transportation Security Administration has expanded its Self-Select Lanes to Newark International Airport; 44 airports now have these lanes, which direct travelers based on their travel needs and knowledge.

Casual are for less frequent travelers, Family/Special Assistance for those traveling with small children or strollers or with elderly people or those who need special assistance. (Source: TSA press release).

Airlines continue to seek scale by working ever more closely together. The latest example of this is the business agreement between American Airlines, British Airways and Iberia. The airlines say the deal will give their customers more destinations to choose from while helping the airlines to save money and attract new customers, which in turn would ease the upward pressure on airfares due to rising fuel costs.

Fuel prices are dropping but continue to take their toll, as evidenced by the shutdown of the discount transatlantic carrier Zoom Airlines (Source: American, BA, Iberia press releases and Zoom website).

American, Delta Offer WiFi
In-flight Delta Air Lines made its´ announcement first but American Airlines was first out of the gate with in-flight WiFi. American now has inflight WiFi on its Boeing 767-200s flying between New York and San Francisco and Los Angeles.

The service costs $12.95 on flights of more than three hours; travelers simply turn on their WiFi enabled devices, including laptops, smart phones and PDAs, once they hit 10,00 feet and are connected to Aircell’s Gogo portal, the WiFi provider, where they sign up for the service. Delta, meanwhile, will offer WiFi on its domestic fleet of 330 mainline aircraft, also with Gogo, introducing it on its MD 88/99 aircraft this fall and rolling it out fleet wide in the first half of 2009. The service will cost $9.95 on flights or three hours or less and $12.95 on flights of three hours or more. (Source: American, Delta press releases).

TSA Lets You Leave Your Laptop in Some Bags
The Transportation Security Administration will now let you leave your laptop in its bag when you go through security as long as it meets new checkpoint friendly standards.

These bags should have a designated laptop-only section; they must completely unfold to lie flat on the X-ray belt; no metal snaps, zippers or buckles inside, underneath or on top of the laptop-only section; no pockets on the inside or outside of the laptop-only section and packed in the laptop-only section other than the computer itself.

The TSA worked with laptop bag manufacturers to come up with the new standards. (Source: TSA press release).

Airline Eliminates Life Jackets
Air Canada Jazz is eliminating life-jackets, calling them redundant since seats act as flotation devices. Transport Canada permits flotation devices, like the seats, instead of life jackets if the planes fly within 90 kilometers of shore.

The seat cushions lift off and have restraints on the bottom through which passengers can slip their arms through. There will be life jackets available for infants. The idea is to save on weight
and fuel. (Source: Travel Pulse Daily).

United Furloughs Flight Attendants, Tests Charging for Meals Over Atlantic
United Airlines is furloughing 1,500 flight attendants as a result of flight reductions it announced this summer. That is about 10 percent of its cabin workers and part of its efforts to cut 7,000 jobs by the end of 2009. It also began testing charging for in-flight meals over the Atlantic.

On transatlantic flights out of Dulles, it is testing selling Buy on Board options, including sandwiches, salads and snack boxes. It will evaluate results at year’s end. (Source: press reports, United press release).

Americans Divided on Inflight Cell Phone Use
In-flight wireless services could presage in-flight cell phone use. Americans are divided on whether or not passengers should be able to use their cell phones in-flight, according to a study by the Department of Transportation.

The younger you are, the more likely you are to favor it-almost half (47.7 percent) of 18- to 34-year-olds approved of the idea. Only a quarter of those over 65 favored the move; those between 35 and 64 almost evenly divided-40 percent say they should allowed, 46 percent said they should not and the rest aren’t sure. Source: DOT press release).

Loews Hotels Introduces Baggage Buy Back Program

In the wake of American Airlines’ new $15 fee for checking bags, , Loews Hotels has introduced a new “Baggage Buy Back” incentive that will reimburse guests for their $15 checked baggage fee.

Arriving guests simply present any airline bag fee receipt at the front desk to receive the rebate, which will be issued in the form of a credit to their bill at checkout. The Baggage Buy Back rebate is available at Loews’ 18 properties in the U.S. and Canada, from June 15 through Labor Day, Sept. 1.

Loews Hotels will offer credit for up to two bags for a maximum of $30 per occupied room per stay. (Source: Loews press release).

Cars

Airline Loyalty Programs Offering Savings, Bonus Miles to Car Renters Airlines are giving their frequent flyer members a chance to earn more miles or get discounts when they rent cars.

Delta Air Lines and Advantage Rent A Car are partnering to allow SkyMiles members
to earn 200 miles per day on any class of vehicle rental through Advantage. with a maximum of 2,000 miles per rental. Additionally, SkyMiles members may earn up to 6,000 miles for rentals completed through July 13.

Northwest Airlines is partnering with Hertz to allow WorldPerks members to save 50 percent and earning double miles on weekend rentals in the U.S., Canada and Puerto Rico through June 30. WorldPerks members can earn 50 WorldPerks miles per day for Hertz rentals of one to four days, and 500 WorldPerks miles for Hertz rentals of five days or more.(Source: Advantage, Northwest press releases).

Spotlight On…..What You Really Dislike About Flying

It’s not the individual airlines that so frustrate air travelers, according to a new Travel Industry Association survey of air travelers. What irritates you most is the air travel process.

The TIA survey of more than 1,000 air travelers found that the more you fly, the more frustrated you get.

• Seventy-eight percent of air travelers believe the air travel system is either broken or in need of moderate correction
• Sixty-two percent believe the air travel system is deteriorating
• Thirty-three percent of air travelers are dissatisfied with the air travel system and 48 percent of frequent air travelers (those who do five trips or more per year) are dissatisfied
• Thirty-nine percent feel their time is not respected in the air travel process and that increases to 51 percent among frequent travelers.

The TIA is blaming flight delays caused by an outdated air traffic control system as a fundamental cause of the aviation industry’s problems and is holding a summit later this money to push Congress to address the problem.

United Airlines initiated what was the 16th fare hike to stick since the beginning of the year, with fare increases that ranged from $10 to $60, depending on the route. Other legacy carriers—Continental Airlines, US Airways and Northwest matched.

American Airlines upped some fares and other carriers tacked on increases as well.

Rick Seaney, CEO of FareCompare.com, an airline comparison website, said that airlines have no choice but to pass on the cost of fuel to consumers and when passengers do begin to push back in significant numbers the airlines have no choice but slash capacity by that same amount. (Source: FareCompare.com.)

American Cuts Flights, Staff, Charges for First Checked Bag, Ups Other
Fees
American Airlines said it would charge its passengers $15 for their first checked bag as well as cut domestic flights by 11 to 12 percent as part of its efforts to cope with fuel costs.

At press time, no other carrier had followed American’s lead in charging for the first checked bag; Southwest Airlines, in fact, pointedly stated that it continues to let its customers check two bags—for free.

American, meanwhile, upped other fees, including those for oversized bags (from $100 to $15); ticket change fees from $100 to $150 for domestic tickets and from $100 to $200 to $150 to $250 for international tickets. It also upped its reservation service fee and AAdvantage Award ticket fees up by $5 each to $20. US Airways took another tactic—it said it would eliminate free snacks, although it will continue to serve free soft drinks.

And Midwest Airlines said it would begin charging $20 to check a second bag.
(Source: American, Southwest, Midwest Airlines press releases).

Major Carriers Continue to Experiment With All-Business Class Flights
The number of air travelers flying first or business class is dropping at increasingly faster rates, according to the International Air Transport Association, an industry group.
And three transatlantic carriers that offered premium seating—MAXJet, Eos and Silverjet—have ceased flying. But major carriers continue to experiment with the oncept. Singapore Airlines has introduced all-business class flights between New York and Singapore.

In October, Lufthansa will introduce all-business class service between Boston and Munich. That’s in addition to the all-business class service it operates between Chicago and Düsseldorf, Newark and Düsseldorf and Frankfurt and Düsseldorf.

Meanwhile, on June 19, OpenSkies, a British Airways-backed carrier that has three classes of service but has allocated nearly two-thirds of the plane to premium seats, will begin to fly between New York and Paris. And L’Avion, the all-business class French carrier, is now code sharing with OpenSkies to offer three flights daily between Paris and JFK (Sources: IATA, Singapore Airlines, Lufthansa, OpenSkies and L’Avion press releases.)

Network Carriers Add International Flights, Low Cost Carriers Add
Domestic
Some U.S. carriers are adding flights, many focusing on international routes. Northwest Airlines has begun flying between Memphis and Columbia, Mo., and began serving Taipei via Tokyo. Delta Air Lines began flying from New York to Georgetown, Guyana and will start flight from Atlanta to Kuwait in November.

On the domestic front, JetBlue has begun daily service from Boston’s Logan International Airport to Chicago O’Hare and New Orleans. Southwest Airlines is adding flights from Denver to San Francisco and from Denver to Omaha in September.
(Source: Northwest, Delta, JetBlue and Southwest press releases).

New Virgin Atlantic Boston Clubhouse
At last, it’s here – the new Boston Clubhouse has opened its doors and is now accepting Upper Class flyers and Flying Club Gold members for some preflight rest, relaxation and pampering. Boston Clubhouse features a deli counter and bar, dedicated business area with PCs, free WiFi connection, charging facility for mobiles and blackberries, dining, lounge seating, free newspapers and magazines.