Monthly Archives: November 2008

Winter Outlook for Executive & Corporate Aviation.

Posted on November 24, 2008 by | Leave a comment

Every now and then I like to veer away from airlines and write about the other side of the industry. My last article said that demand would remain the same – even during the pricey fuel summer. Now that pricey fuel has gone to a nice low, there is a new burden among us; the economy. It’s fair to say that the price of fuel barely affected Executive Aviation. However now that the economy is at a low, we may see a turn for the worse in this sector of aviation.

Ford recently announced their plans to reduce their corporate jet fleet, which currently stands at 5 aircraft, after facing criticism from members of congress. Travel expenses can account for a large percent of a company’s expenses. A trip to Europe, for one employee, can be as much as $1,000 just on coach. Private & Executive aircraft are not cheap; even NetJet’s fractional interests start at $416,625. It’s a costly luxury to have. Companies are facing financial hardship, and I think we may see quite a few ground their executive jets.

What are the advantages? Ford says that executives are safer and able to get more work done when they fly in a corporate jet. Sure – it’s easier to get work done in a corporate jet, but safer…? Everyday thousands of business travelers take the risk of flying. I personally think that your chances of perishing on-board a commercial flight are lower than private. Boeing says, “In 2000, the world’s commercial jet airlines carried approximately 1.09 billion people on 18 million flights, while suffering only 20 fatal accidents.”

Why fly corporate? It’s faster, it’s direct, and it’s easier for executives. Remember the expression “Time is money?” – it’s just that. As for the winter of 2008-2009, I think we may see a slight drop in corporate aviation’s popularity.

Interested in Executive / Corporate Aviation? Head on over to Robert Mark’s JetWhine.

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Dan’s Saturday Links #20

Posted on November 22, 2008 by | Leave a comment

Hi, everyone! Dan Webb here. I run the blog “Things in the Sky” over at BoardingArea, and my good friend Jon invited me to share my weekly “Saturday Links” post on his blog. In this weekly post, I put up links to articles that I found interesting but either didn’t get to or that I decided not to write a post about. So, here it is. Also, please check out what I wrote on my blog this week!

So, to be completely honest this is a very ATW link-heavy post for some reason.

  1. ABX Air, which flies mainly for DHL, has begun outlining its plans for the future now that DHL is shriking in the US.
  2. Three new runways opened at US airports this week, and Jon Heckman has the details.
  3. Mexicana will be launching European flights next year. The first flight is Mexico City to Gatwick.
  4. Southwest has started a dining program for Rapid Rewards. There’s a good thread on FlyerTalk about it.
  5. Air France-KLM’s profit was way down compared to the same quarter last year. Like many of the US airlines, its results were affected negatively by potential hedging losses.
  6. Cranky  has a good post on a presentation by United on customer experience.

(Yes, I am aware that #2 is completely redundant)

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Three New Runways: Chicago, Seattle, and Washington D.C.

Posted on November 21, 2008 by | 2 Comments

What a great day for airports – three new runways opened at 3 major airports in the United States. Due to the number of delays in the nationwide air traffic system, runways were built at Chicago’s O’Hare International Airport, Seattle-Tacoma International, and Washington’s Dulles International. These runways will increase capacity at these major airports. News reports say that nearly $1.8 billion dollars went into these runways (total): $450 million at Chicago’s O’Hare International, nearly $350 at Dulles International, and over $1 billion dollars into Seattle’s new runway. If you haven’t noticed already, all of these airports are hubs to at least one major carrier.

I see this as a great opportunity for the airlines based at these airports. I think specifically of United, whose on-time performance and massive amount of complaints (leader) was nothing to brag about (January thru June period). Washington’s Dulles and Chicago’s O’Hare are major gateways for United. I think this will significantly help their flights arrive on-time, and it will have a ripple effect of improving their entire network of route’s on-time performance.

Who else is this good news to? American Airlines (hub in Chicago’s O’Hare), Alaska Airlines / Horizon Air (hub in Seattle) and Northwest Airlines (focus city in Seattle). Better yet, it’s good for travelers everywhere. Note that Chicago O’Hare significantly impacts United Airlines’ and American Airlines’ entire route structure. Granted, it will not solve all problems, but it’s an important step. This new runway, for Chicago, is part of a massive $15 billion dollar project that aims to lay down another runway and a terminal by 2014. All ORD (Chicago O’Hare) needs is the funding. 

The next step, as the AP article correctly suggests, is the air traffic control system. Yet that will cost Americans roughly $30 billion dollars in tax-payer money. The new system implements GPS over the obsolete radar method of controlling aircraft. Another step is improving capacity in other locations. The FAA has said that they easily see 4 major airports going up within the next 2 to 3 decades. Whether or not that does happen, I think all can agree that today was a good day for travelers, airlines, and the world’s air traffic system. 

Image: stock.xchng.com

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Virgin America to Stream to YouTube Event, Delta Improves Check-In.

Posted on November 20, 2008 by | Leave a comment

AirCell, the company that produces GoGo, can now welcome Virgin America to its growing client list. AirCell provides wireless broadband, via technology similar to cell-towers (except pointed upward). The company already has Delta Air Lines and American Airlines. You might recall my two articles about it; with American and Delta. Virgin American will be testing GoGo through YouTube’s live November 22 event, using streaming media from a circling Virgin America aircraft flying at 35,000 feet above the event in San Francisco. Virgin America has said that they plan on offering GoGo for all of Virgin America’s fleet by second quarter 2009. Pretty cool, huh? I guess this means that travelers aren’t only limited to Red (Virgin America’s in-flight entertainment), but they are able to use their laptops. This, without a doubt, will help boost revenue and load factors. 

Delta Air Lines has announced some great news for travelers. The airline said that they have made ticket purchases and check-in at kiosks much easier for passengers. Delta says that they also are improving curb-side check-in for customers traveling internationally. The carrier said that they have made check-in much simpler by lowering the number of screens a passenger must suffer through to retrieve their ticket. The new system also features enhanced destination information, like weather, and itinerary information. New online features include the ability to save their profile to reduce steps in the booking process, which may allow some passengers to book within 30 seconds. Amazing. 

Out of all the big 6 airlines in the United States, I feel as though I can safely say that Delta has the best check-in / booking as well as entertainment. In my opinion, Virgin America leads all U.S. airlines in entertainment and in-flight travel experience – they just need to grow.

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