Monthly Archives: September 2008

United Stock Plummets Due to False Rumor.

UAL Corporation, the parent company of United Airlines, had their stock fall 76% due to a false rumor that the airline was going to file for bankruptcy. United issued a statement saying it was “caused by the irresponsible posting of a 6-year-old Chicago Tribune article by the Florida Sun Sentinel newspaper website with the date changed. The story was related to United’s 2002 bankruptcy filing, and United has demanded a retraction from the Sun Sentinel and is launching an investigation. United exited bankruptcy in February 2006.” Wired’s Kim Zetter reports that a worker at a Miami investment advisory firm googled ‘bankruptcies’ and found the article online and assumed that it was current, and ignored the clearly marked date (2002), then included it in a newsletter to Bloomberg. 

The 6 year old report sent UAL’s stock (UAUA) from nearly $12 a share, to $3 a share. After someone finally realized that the story was old, trading on the stock was halted after 11am Eastern Time. Nearly half an hour later, the stock jumped up near its original price, and closed at $10.92 a share. 

Well, we all make mistakes, yet, whatever happened to double checking information? Currently the Florida Sun Sentinel newspaper’s website blames the Tribune Company (which I’m guessing oversees newspaper). It’s no doubt that they’re trying to cover-up what they did by redirecting users to a unfamiliar name / company. It’s such an amazing thing that one internet post from a random newspaper can crash a stock these days. What about Bloomberg? Do they proofread information before releasing it? We trust these people with our day-to-day news. There isn’t just one particular person to blame for this, it’s the group of people who didn’t care enough to proofread and double check what they’re posting / sending out. Heads up! It sounds like this could happen to any company, not just United.

Image: flickr.com

Southwest Airlines Moves to Cashless Cabin: Credit / Debit Cards Only!

Dallas based Southwest Airlines will be following many legacy carriers, announcing that they will be implementing the “Cashless Cabin” into their on-board service. Cash will no longer be accepted on Southwest Airlines flights next tuesday, instead credit / debit cards will be the only form of payment. The credit card swipe machines are from GuestLogix Inc. 

US Airways, Delta Air Lines, and American Airlines have already implemented the technology on-board flights. On my last American Airlines flights, the credit card machines appeared to be much more efficient for passengers and flight crews on-board flights. It also allows those who forgot cash, or who just don’t feel like carrying it, to purchase snacks and beverages on-board flights. 

Image: flickr.com

Airlines Delaying Service to China: American Airlines the Latest.

American Airlines asked the Transportation Department for permission to delay service from Chicago O’Hare to Beijing, China for a year. The airline stated that the high price of fuel and other obstacles have caused this delay, but they plan to initiate service to China’s capital April 4th, 2010. They are the fourth airline to delay service to china. 

Other airlines that have delayed service to China are United Airlines, US Airways, and Northwest Airlines. As a local Philadelphian, I’ve watched US Airways delay service from Philadelphia to Beijing. The airline, like many, got approval from legislators and local governments to help approve the service. State governors were approached to aide the airline in getting approval for the routes. Locals were also asked to sign a petition, via email, to help get the service. 

I see these routes as being high potential for these carriers. Service to Beijing, from any major city in the United States, is crucial. I firmly believe that these routes will be highly profitable for carriers mainly because Asia is crucial to the United States’ economy, and I’m sure passengers would rather fly non-stop than have a connection in California or Asia. 

Image: flickr.com

American Airlines: In Review.

This past week, I had the privilege to take a trip with American Airlines. The cheap airfare is what mainly grabbed my attention. I was able to snag a $350 fare on American from Philadelphia, PA to Tucson, AZ. I booked all MD-80 service, since that was the cheapest, and had to go through American’s hub-and-spoke system at Dallas / Fort Worth International Airport. 

Where to start. My initial flight from Philadelphia to Dallas / Fort Worth left at 6 AM. I had to get up at 4, and I left home around 4:15.  Check-In may be seen as simple, since the airline offers computer kiosks to check-in at, however the lack of people in the process can and has strained passengers. If a passenger wishes to check a bag, they must have a credit card to feed the machine. If not… you’re out of luck. At Philadelphia, I heard one check-in agent questioning a foreign customer, “What do you mean you don’t have a credit card!?!?” She was in disbelief. After a passenger checks in with the computer, you then hand your bags to the check-in agent and they’ll call you up to check ID… etc. 

The flight to Dallas was great. I had my favorite seating selection, the window seat. Upon arriving at Dallas, I had about an hour and 1/2 to walk around the super-hub. I got the chance to ride SkyLink, Dallas’ automated monorail that makes stops around the airport. After suffering a gate change, more delays followed to my flight from Dallas to Tucson. After an hour after the scheduled departure time, American’s automated flight notification system called my cell-phone and notified me that the flight was cancelled, due to mechanical problems with the MD-80. The automated flight information call alerted me that the flight was cancelled 5 minutes before the gate agent did. I called American’s re-scheduling 1-800 number, and was one of the lucky few that got on the flight. Others waited in the long line to rebook with the gate agent, however 30+ passengers were put on standby by the time I left on the second flight out. I spent a total of 5 hours in Dallas… not too fun.

The second journey, Tucson to Philadelphia. The security line was non-existent and the check-in was simpler than the last. The flight arrived early into Dallas’s D Terminal, which was great since I had to take SkyLink into the C Terminal. I luckily got to pass the KLM and Lufthansa aircraft sitting at their respective gates. Everything was going well, until the MD-80 we were supposed to fly, which had to be taxied from the hangar, was delayed. That plane never came, and it ended up being an hour and 45 minute wait at the gate. We arrived about 45 minutes late, which was pretty good timing, considering the delay we suffered through at Dallas. 

Side Notes: I spoke with a nice American Airlines 757 pilot in SkyLink. I asked him how he likes the 757 fitted with winglets. The winglets only affect the flight of the aircraft when flaring. However, other than that, it’s pretty much the same feeling. 

Overall, customer service at American Airlines was awesome. The only problems that I saw with American were equipment delays at Dallas Fort Worth International Airport. Had the aircraft been on-time, everything would have gone smoothly. The people at American were great and the on-board service was great. I give American 4 stars for my journey. 

Image: flickr.com