June 2009 Archives

Continental Airlines (NYSE: CAL) today announced that it is taking delivery this week of another new Boeing 737-900ER, which is painted with a retro livery to commemorate the airline's 75th anniversary on July 15, 2009.

The new aircraft's retro livery, which was originally used on aircraft beginning in 1947 and is called The Blue Skyway, was selected by Continental employees. Continental will fly the new aircraft to its three hubs for anniversary celebration events for employees and retirees. The aircraft will make an appearance at Houston Bush Intercontinental on Thursday, June 25, and at New York/Newark Liberty and Cleveland Hopkins on Friday, June 26.

"I am proud to celebrate this exciting occasion with the Continental team, including both our current 43,000 co-workers, as well as the many retired co-workers who paved Continental's history and made the airline what it is today," said Larry Kellner, Continental's chairman and chief executive officer. "Not many 75-year-olds believe their future will be longer and more vibrant than their history, but that's exactly what we're looking forward to at Continental."

The Early Years

Continental traces its history to Varney Speed Lines, started in 1934 by Walter T. Varney primarily to carry U.S. mail. On July 15, 1934, the airline launched its first flight, carrying 100 letters and no passengers between Pueblo, Colo. and El Paso, Texas. At the time, Franklin Roosevelt was president, the average U.S. annual income was about $1,600, a new car cost $625 and a gallon of gas cost 10 cents.

Walter Varney focused on the new airline's fleet, called Continental "America's Fastest" due to its speedier aircraft. A focus on a strong fleet is one thing that hasn't changed over the last 75 years: Continental today flies the newest, most fuel-efficient jet fleet of all the major U.S. network carriers.

Varney earlier started a different airline, which became United Airlines. Later this year, the two carriers founded by Walter Varney plan to make an historic reunion by joining together as alliance partners in Star Alliance.

Longtime Leader: Bob Six

Varney Speed Lines became Continental Airlines in 1937 under the leadership of the legendary Robert F. Six, who captained the airline into the "jet age" and expanded its reach for more than 40 years.

Bob Six laid the groundwork for Continental's reputation for top-notch service and a customer focus.

In 1944, passenger revenue exceeded revenue from carrying mail for the first time in the airline's history. Under Six's leadership, Continental in the late 1940s became one of the first carriers to experiment with coach fares, and established first-class "Gold Carpet Service" in the late 1950s.

"One thing that's never changed goes back to Robert Six - we still want to give customers the best experience from the time they board the plane until they get to their destination," says Houston-based Administrator of Manuals and Publications Jo Strauss, who has been with the company since 1968.

Bob Six also secured a Continental stronghold in the pacific by creating Air Micronesia, which remains a wholly-owned Continental subsidiary today.

Times of Tumult

In the late 1970s, following the Airline Deregulation Act, through the early 1990s, Continental went through some of its darkest days, struggling through years of financial losses, a gaggle of challenging mergers and acquisitions, and two bankruptcies, as well as labor relations that strained to the breaking point. Even through these grim times, several bright spots emerged: in 1987, Continental established its OnePass frequent flyer program, and in 1992, the airline launched its premium product, BusinessFirst, which provides first-class service at business-class fares.

In addition, Continental's current domestic hubs were formed during this period. In the late 70s and early 80s, following deregulation, Continental's presence in Houston, which began with the airline's first flight into the city in 1951, strengthened into a true hub. In February 1987, Continental's merger with People Express provided the foundation for the carrier to grow and develop a leading presence in the strategic New York market, transforming Newark Liberty into one of the world's premier international global gateways. Continental remains the largest carrier in the New York area today. In July 1987, Continental's Cleveland hub opened, tripling the airline's presence in the city.

From Worst to First

Then, in 1994, Gordon Bethune became CEO and led the company through one of the most dramatic turnarounds in business history, taking it from "worst to first."

Much as Six set the tone on customer satisfaction, Bethune brought to the forefront a culture of employees working together. Bethune and Continental's senior management team also instituted the Go Forward Plan to make sure the whole team had their eyes on the same target. The same working-together culture and Go Forward Plan continue to underlie Continental's success even today.

Continental Today

Current Chairman and CEO Larry Kellner, who has been with the company since 1995, took the helm when Gordon Bethune departed in late 2004. Larry credits Continental's co-workers for the airline's success in recent years. As chairman and CEO, Larry stays focused on open, honest and direct communication with co-workers across the system, taking input from all directions as the company faces today's opportunities and challenges. Additionally, Larry has piloted Continental through years of international growth while continuing to focus on the fundamentals that his predecessors laid down before him: employee relations, customer satisfaction, and building a strong fleet.

"I never thought in my wildest imagination that someday I'd be able to fly all over the world," said DFW-based Customer Service Agent and Ramp Equipment Coordinator Joe Caudle, who in 1951 joined Trans-Texas Airways (later renamed Texas International), which originally served routes in Texas and merged with Continental in the early 1980s. Continental "has gotten better - for passengers, employees, and the airline in general. We probably have the best executive staff in the industry. I credit them for where we stand now - the most admired airline in the world."

During Larry's time with Continental, the carrier has received more awards for customer satisfaction than any other airline, including being named FORTUNE magazine's most admired global airline for six consecutive years on the magazine's annual airline industry list. Despite these honors, the carrier has no intention of resting on its laurels.

Symbolic of Continental's focus on the future, the new retro-painted Boeing 737-900ER will be delivered equipped with an advanced technology GPS Landing System (GLS) that will take advantage of a new NextGen satellite-based landing system being installed later this year at Newark Liberty. Continental is partnering with the Port Authority of New York and New Jersey, the FAA, Rockwell Collins and Gables to make this technology a reality. This is just one of many NextGen technologies and capabilities that Continental has pioneered over the years as the airline works to make operations safer and more reliable, fuel efficient, and environmentally friendly.

Other firsts being initiated in Continental's 75th anniversary year are the introduction of DIRECTV(R) service, installation of flat-bed seats in BusinessFirst, and service to Shanghai.

"I have been here for over 28 years," said EWR-based 757 Captain Tom Stephens. "I have worked with the best people that I could have wished for. There have been some serious ups and downs. There have been times when the future looked bleak and times when the future looked bright. Through it all we have survived and, for the most part, done it with good humor and the determination to get through the rough spots with confidence that there would be better days. We should look around us now with satisfaction at the Continental we each, in our own way, helped to create."

For historical photos and more information on Continental's 75-year history, please go to: continental.com/company/history.

Source: Continental Airlines

June 26, 2009 / category: Continental / link / comments (0)
Virgin America has teamed up with Google to take cloud computing to new heights with the Day in the Cloud Challenge - the first-ever online puzzle challenge that can be played in the air and on the ground. At the time of this release, filed from 35,000 feet from one of Virgin America's WiFi enabled planes, thousands of people flying and on the ground have already gone online to compete in the unique 24-hour challenge. As the first and only airline to offer Gogo(R) In-flight Internet on every flight, Virgin America is offering guests on all of its flights today complimentary WiFi to join in the fun. The all-day gamer challenge showcases how people are increasingly using web-based services like Google Apps to connect and work together "in the cloud," wherever they have access to the internet - even on a Virgin America flight at 35,000 feet.

"As the only carrier based in Silicon Valley and now with WiFi on every flight, Virgin America has fast become the airline of choice for tech-savvy road warriors," said Porter Gale, Vice President of Marketing for Virgin America. "Teaming up with Google Apps for an in-flight and on-the-ground live game is a fun way for us to celebrate what our guests already know: cloud computing is changing how we all travel, work and live for the better."

This May, Virgin America became the first and only airline to offer Gogo In-flight Internet on every flight. The carrier also offers standard power outlets - so guests can stay connected longer. Google Apps allow people to use the web to share collaborative documents, email and photos with family, friends and co-workers online "in the cloud."

As part of the larger Day in the Cloud Challenge, guests on two specially designated Virgin America commercial flights are currently competing live at 35,000 feet above the California coast for an additional prize: the chance to win everyone on his or her flight a free netbook, and of course - bragging rights for life. Right now commercial passengers and a few all-star guest gamers on Virgin America Flight 920 (SFO-LAX) and Flight 921 (LAX-SFO) are competing against each other in the ultimate sky-high gamer showdown.

The LAX-SFO versus SFO-LAX flight show-down is just one element in the 24 hour-long Day in the Cloud Challenge. The game went live at 12:01am today and will run until 11:59pm on June 24. The top five game scorers competing in the air and on the ground will receive A Year in the Cloud Prize Package that includes free flights and free in-flight WiFi from Virgin America, a netbook computer and 1 terabyte of online storage from Google for email and photos. The questions for the challenge will range in level of difficulty, so everyone from the novice to the expert puzzle master can take part in the fun. Participants can still register and play today at: www.dayinthecloud.com.

"People are increasingly using web applications wherever they are to connect with one another, whether it's through shared photos, collaborative documents, or video chat," said Bradley Horowitz, Vice President, Product Management at Google. "We look forward to seeing how people use in-flight WiFi and web tools in creative new ways to stay connected as they travel."

With power outlets at every seat and fleet-wide WiFi, guests on any of Virgin America's 100 daily flights have the option to surf the Web, check e-mail or log on to their corporate VPN - all from the comfort of their seats at 35,000 feet. The Gogo(R) service is available for $12.95 for daytime flights of over three hours, $9.95 for daytime flights of less than three hours and $7.95 for handheld devices. In November 2008, Virgin America launched Gogo(R) In-flight Internet on its first flight with a first ever "air-to-ground" video stream to YouTube Live - YouTube's first official real-world user event. Self-directed videos from some of YouTube's highest-viewed stars premiered on the RED(TM) system on planes across the country and were posted to the carrier's YouTube channel in November 2008 - where they received more than one million views.

Virgin America flies to San Francisco, Los Angeles, New York, Washington D.C., Seattle, Las Vegas, San Diego, Boston and Orange County. The airline offers daily flights from: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, LAX to JFK, LAX to IAD, SFO to SEA, SEA to LAX, JFK to LAS, BOS to LAX, BOS to SFO and SFO to SNA.

SOURCE Virgin America

June 25, 2009 / category: Inflight Services / link / comments (0)
Downturn in Flights Most Marked Within Europe; South America set for an Upturn

OAG (http://www.oagaviation.com) the world's leading aviation data business, has released its airline capacity outlook for the second half of 2009, to identify the projected trend in the global and regional supply of airline flights and seats.

The world's airlines will offer 3.67% fewer flights and 2.76% fewer seats than they did a year ago. The total number of flights (14,191,263) will be at the lowest level since the second half of 2005. The numbers reflect the airline industry's attempts to adjust to a weak economic climate, but capacity nevertheless remains almost 20% higher than the levels of the early 2000s.

The OAG analysis takes into account all future schedules filed by the airlines to date, to provide a comprehensive snapshot of planned airline activity for July to December 2009 with comparisons tracking back to 2001.

The OAG Capacity Outlook, with charts illustrating the trends, is available to download at http://www.oagaviation.com/reports.html.

OAG, part of UBM Aviation (http://www.ubmaviation.com), provides essential aviation workflow data and analytics sourced from its comprehensive proprietary airline schedules, fleet and MRO databases.

SOURCE UBM Aviation

June 24, 2009 / category: Capacity / link / comments (0)

At the Cincinnati-Northern Kentucky International Airport, passengers are so scarce that a long-term parking lot will soon be turned into temporary housing for 900 horses attending equestrian games in the nearby bluegrass countryside.

It is an apt image -- going from air power to horse power -- for the troubles that airports are face these days: too few passengers, too few flights, too little revenue. And to deal with these setbacks they have come up with a solution: cut every capital project they can.

Terminals that were on the drawing boards are now off. Ditto for new gates, taxiways, roads and lights, as airport executives put a stop to billions of dollars in modernization projects that are now seen as unneeded and unaffordable.

"It's a matter of waiting until passenger levels kick up again," said Sean Broderick, a spokesman for the American Association of Airport Executives. "Airports are really stuck. They are cutting back like any other business. They are in survival mode while still trying to keep an eye on the future."

That future may not be pretty. With passenger traffic down as much as 20 percent at some airports, the effects of these cuts are not expected to be felt immediately. But once the economy and air travel rebound, passengers may well go back to feeling miserable about the crowded terminals, outdated parking lots and far-away rental car sites.

Making matters worse is the reality that airport projects need a long lead time. It typically takes three to five years to build a new terminal, and 10 or more for a new runway. Projects shelved today probably cannot be built quickly when they're needed in the future.

"There is a cost of doing nothing," said Deborah McElroy, executive vice president for policy at the Airports Council International-North America. "It is in potential delays and inconvenience for passengers later on, and in increases in future operating costs."

Many of the projects being cut, airport executives say, seemed feasible -- and desirable -- as recently as last year.

At Oakland International Airport in California, for example, a $1 billion plan to build a third terminal was shelved last summer after ExpressJet withdrew from the market, Aloha Airlines went out of business and other carriers, especially Southwest Airlines, cut back on flights. Passenger traffic fell by 30 percent, creating a ripple effect at the airport's restaurants and car rental operations, which also generate cash. Food and beverage revenue dropped by 25 percent; car rental revenue by 20 percent.

Instead of building a new terminal, Oakland is doing a $200 million facelift of an existing terminal. Fewer passengers, officials say, makes it easier for workers to do the rehabilitation.

"One has to look ahead 10 to 20 years," said Steve Grossman, the Oakland aviation director. "But you have to be realistic about the short run. We could not afford to build the terminal and cover the carrying costs in the short run. We told that to the airlines and they thanked me. We've never seen anything like this decrease in traffic. Never."

Had Oakland gone ahead with the new terminal, Mr. Grossman said, "our cost per passenger to the airlines would have been the highest in the country."

Air carriers, when hit with a drop in demand, can quickly adjust by reducing flights and cutting routes. But airports are different. Given their high fixed costs, any reduction in flight traffic can have a drastic effect.

Two-thirds of all airport revenue comes from nonairline sources: rental payments from retail concessionaires, parking fees, car rental surcharges and facilities charges that are included in the ticket fees. All of these are falling.

For instance, for the first time since it was enacted in 1991, a federal program that charges passengers up to $4.50 to pay for airport capital projects has collected less money than the year before. Collections generally come to around $3 billion a year, but they fell by $150 million in 2008, and further drops are expected.

Also declining are airline landing fees, which represent the other third of airport revenue and are based on the number of landings and aircraft weight.

A May 28 credit analysis of airports by Standard & Poor's said that "airports have not experienced such bleak economic conditions in decades."

Even more, the S.& P. analysis points out, it is also difficult in this economy for airports to raise fees or issue new bonds.

"Airport operators typically can adjust over time," said Kurt Forsgren, author of the S.& P. report. "But what's new and different is that this may be a prolonged decline. There's a natural tension at airports between scaling back now because tomorrow is not good and planning for infrastructure for 10 to 15 years out."

Mr. Forsgren said that rescheduled projects would probably rise in cost. "A terminal that may have cost $300 million today, might cost $550 million two years from now," he said.

That may turn out to be the case at Dulles International Airport outside Washington, where a $2 billion terminal replacement program was halted, as was a new $400 million car rental center.

"As I look to the future, projects that were unscheduled will be rescheduled," said James E. Bennett, chief executive of the Metropolitan Washington Airports Authority. "Once a project gets back, it might get rescoped or re-engineered and be different. Once we see demand back, we will see many of these projects come back into play."

Dulles was one of a dozen case studies in a Government Accountability Office report in April on commercial aviation. Of the dozen airports studied, 10 reported delaying or canceling capital projects. And many, the report said, "remain airport priorities but cannot be completed for lack of available funding."

Tucson International Airport just refurbished its existing terminal but dropped a gate expansion program. Air traffic, which rose by more than 25 percent in the last four years, has "plummeted," said Bonnie Allin, chief executive of the airport. Tucson will continue with some smaller projects, however.

Ms. Allin considers Tucson lucky -- the airport was not caught midproject when the downturn occurred. "We're fortunate in terms of timing," said Ms. Allin. "We're in a position of being able to put these projects on hold and, when the growth starts, we can act quickly."

About $300 million, including money for a ticket lobby overhaul, was cut from a $1 billion expansion at Orlando International Airport. Orlando traffic is down 10 percent, but Steve Gardner, the airport's executive director, is not worried: "I'm cautiously optimistic it will turn around to whatever normal is."

One airport is moving differently. Kansas City International Airport has $161 million in new projects, taking advantage of a drop in construction costs.

"We were getting fantastic bids," said Mark VanLoh, director of aviation. "Prices were just getting better, so we decided to pull the trigger."

Mr. VanLoh added: "We like to call it our Midwest mentality. We're practical and frugal. We see opportunity and we jump on it."

Source: New York Times, by Leslie Wayne

June 23, 2009 / category: News / link / comments (0)

flydubai, Dubai's first low cost airline, became a reality on Monday, June 1, 2009, when its first commercial flight took off. The first flight, which was to the Lebanese capital, Beirut, was closely followed by flights to Amman, Jordan, on June 2, Damascus, Syria, on June 8 and Alexandria, Egypt, on June 9, giving the new airline a total of four destinations in just nine days.

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai said: "This region is very dependant on air transport. It is a great credit to the vision and leadership of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that this airline has now taken off, thereby ensuring residents and visitors alike will be able to travel to more places more often."

The flydubai model is simple, with customers only paying for the services they want. The ticket price includes all taxes and one piece of hand baggage, weighing up to 10kg, per passenger.

Passengers have the option to purchase checked-in baggage in advance at just 40AED for the first piece and 100AED for the second, weighing up to 32kgs, subject to availability. Checked baggage is strictly subject to availability and passengers are advised to book early to secure the space, as only pre-purchased baggage can be guaranteed.

A nominal payment of 5AED allows customers to select their seat and just 50AED secures the extra legroom positions. Tickets are changeable for a small fee, plus any difference in the fare, and food and drink can be purchased on board.

"flydubai aims to make travel a little less complex, a little less stressful and a little less expensive," explained flydubai's CEO Ghaith Al Ghaith. "Our passengers have the option to customise their travel experience depending on what services they want and how much they want to pay.

"We plan to stimulate the markets in which we operate and encourage people to travel to more places more often. flydubai's aim is not to drive traffic away from the other carriers but to help grow these markets. When you consider that low cost travel in this region could be as little as 2% of all air travel, as opposed to more than 20% in Europe and America, it is clear that there is a lot of untapped potential in these markets.

"In addition, flydubai will fly to airports that are currently underserved by the traditional carriers. In a region which is so dependant on air transport, we are looking forward to providing the reality of accessible, low cost, uncomplicated travel."

flydubai operates from a modernised and enhanced Terminal 2 on the north side of Dubai International Airport. Customers can book their flights via the website, http://www.flydubai.com, the call centre, +9714 3010800, through travel agents and branches of Emirates Post and Emirates NBD.

SOURCE flydubai

June 16, 2009 / category: Carriers / link / comments (0)
When American Airlines Flight 63 departs Paris for Miami at 10 a.m. local time on Thursday, June 11, it will embark upon a journey that aims to prove that trans-Atlantic flights can be operated a bit greener and leaner.

Through the Atlantic Interoperability Initiative to Reduce Emissions (AIRE), American will be the first U.S. airline to test next-generation technology and procedures that will significantly reduce carbon emissions and save fuel on trans-Atlantic routes. The testing will be conducted during a normally scheduled flight so American can obtain real-time benefits.

AIRE, a joint initiative among the Federal Aviation Administration (FAA), the European Commission, and several airlines, is designed to speed up application of new technologies and operational procedures, which have a direct impact on reducing carbon emissions and noise pollution as well as conserving fuel. Part of the AIRE project includes gate-to-gate flight demonstrations to test the benefits of technologies that will be used with the FAA's NextGen air traffic management system.

"It is critical that the aviation industry work with our Air Traffic Control partners to demonstrate the benefits of NextGen technology today. By implementing this technology as quickly as possible, we can make real and meaningful strides to reduce our impact on the environment, increase system capacity, and reduce air traffic delays," said Bob Reding, American's Executive Vice President - Operations. "Utilizing NextGen technology is a crucial part of American's overall environmental and fuel savings efforts. These efforts have already yielded fuel savings of more than 110 million gallons annually and reduced our carbon emissions by 2.3 billion pounds in 2008."

Using a Boeing 767-300 aircraft, American Flight 63 will fly from Paris Charles De Gaulle and arrive at Miami International Airport at 1:55 p.m. EDT. The flight will conduct several fuel conservation measures, including single-engine taxi on departure and arrival, continuous climb out and descent, optimized routing over water, and a "tailored arrival." Several of these endeavors are already key elements of Fuel Smart, American's ongoing employee fuel conservation program. In 2009, American aims to save 120 million gallons of jet fuel and reduce its carbon emissions by 2.5 billion pounds.

Post-flight data analysis by the FAA, European Commission, and American will determine the carbon and fuel savings gained on the demonstration flight. The FAA and AA will then conduct a two-month trial in Miami to continue testing the next-generation technology and procedures.

American has long been a leader in optimizing air travel efficiency over the Atlantic. In fact, more than 20 years ago, American pioneered the routine use of two-engine aircraft on trans-oceanic flights, which fundamentally changed air operations. Up to that point, almost all international flights were flown by three- and four-engine aircraft. American's efforts to open up the Atlantic to two-engine aircraft resulted in the almost universal shift by Boeing and Airbus to use two-engine aircraft for international flights. This resulted in a significant reduction in carbon emissions from older aircraft and greater fuel efficiency across the industry.

SOURCE American Airlines

June 9, 2009 / category: American / link / comments (0)
Airfarewatchdog(TM) announces 7 Timely Tips & Strategies for Buying Summer Airfare to Europe, designed to help travelers save money by showing them how to find the lowest airfares. Airfarewatchdog founder George Hobica says, "There are five countries that are especially cheap to fly into from North America right now: Ireland, Spain, Portugal, Germany and Switzerland. And we've been finding non-stops from New York to Zurich for around $440 round-trip including tax - which is amazing!"

Some highlights from 7 Timely Tips & Strategies for Buying Summer Airfare to Europe:

  • Use a flexible date search on Orbitz or Cheaptickets or Hotwire. A fare from New York to Rome can be $500 with taxes on one set of dates in August, $800 on another set, and $1,000 on still another. Read More.

  • Don't "blinder" yourself into one set destination. Get to know alternative airports, Ryanair, the rail system, and even cheap inter-city buses in Europe. For example, it may be cheaper to fly into Dublin and then grab a low-fare flight to your ultimate European destination in order to save money on the airfare. Read More.

  • Check fares every day. International fares typically only change once a day, and they do change, sometimes by hundreds of dollars up or down. Sign up for all the alert systems like Airfarewatchdog, Yapta, Orbitz, Travelocity, Kayak, Farecast and Farecompare. Read More.

  • Check the airline's site. Once you find a fare you like on an online travel agency (OTA), check the actual airline site to compare the fares. Many international airlines don't share their best deals with the OTAs and consumers can save substantially by purchasing their tickets directly through the airline's site. But that works in reverse sometimes too; an OTA might have a fare on Virgin Atlantic, for example, for hundreds less than what it's being sold for on the Virgin site. Read More.

Hobica says, "Fares to Europe are much lower than they were last summer, and indeed on some routes they are much lower than we have seen in many years. If you have the time, inclination, and money, this is a great year to visit."

About Airfarewatchdog.com(TM)

Airfarewatchdog.com (TM) is an airfare deal site that lists hand-picked low airfares from online travel agencies and airline sites. Airfarewatchdog.com is owned and operated by Smarter Travel Media LLC.

SOURCE Airfarewatchdog.com

June 3, 2009 / category: Fares / link / comments (0)

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