April 7, 2013 |
News that the tiny Samoa-based carrier Samoa Air has begun to charge fares based on the weight of its passengers has some fliers worried that the idea might catch on with other airlines. “There is no doubt in my mind that this is the concept of the future,” said Samoa Air's chief executive, Chris Langton. But industry experts don't think the idea will fly. “Any airline that tries that, heavy people would not fly that airline,” said Jan Brueckner, a UC Irvine economics professor and expert on the airline industry.
April 1, 2013 |
The airline industry thinks it's just plain unfair that they have to disclose the total cost of a ticket to passengers. The U.S. Supreme Court begs to differ. The justices have left intact Transportation Department rules requiring airlines to prominently feature the total cost of air travel in ads and online, rather than lower -- and misleading -- pretax prices. The airlines had shamelessly argued that the rules violate their free-speech rights by preventing them from illustrating how fees and taxes drive up passenger costs.
March 19, 2013 |
The proposed merger of American Airlines and US Airways will reduce competition and lead to higher fares, critics of the union argued before a U.S. Senate panel Tuesday. But supporters of the merger said the creation of the nation's largest airline will improve service and protect the jobs of hundreds of airlines workers. The testimony came Tuesday before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights. The merger, which was announced last month, must still get approval of the U.S. Department of Justice and the judge overseeing the bankruptcy proceeding of AMR Corp., the parent company of American Airlines.
February 14, 2013 |
Here's a question for you: Is there a single example of consumer prices going down and market competition increasing after deregulation of a U.S. industry? I'm serious. The phone industry? The cable industry? Regulatory oversight for both was eased - and in some cases eliminated - and look where that's gotten us. And now look at the airline industry, which witnessed its latest multibillion-dollar deal Thursday with the merger of American Airlines and US Airways, creating the world's largest carrier.
January 23, 2013 |
Tempe, Ariz.-based US Airways became the latest airline to report strong profit for 2012, another signal of a resurgence of the nation's airline industry. US Airways, which has pushed for a merger with American Airlines, reported Wednesday a record profit of $537 million for the year or $2.79 per share, compared with a profit of $111 million in 2011. For 2012, total revenues for US Airways reached $13.8 billion, up 5.9% over 2011, with revenue per available seat miles up 3.9% and the average percentage of filled seats at 82.9%, compared with 82.3% in 2011.
December 18, 2012 |
Brand-new "flushable potty economy seats" on planes mean you'll never again have to crawl over others to use the bathroom. Talk about convenient! And airlines make money on the deal by adding seats where toilets once were. "It's a win win for everyone," crows a blog with an illustration of the new seats that was posted Monday by a Northern California travel agency. They're kidding, right? Of course. It's a humorous holiday attempt by Fremont-based Let's Fly Cheaper to take a jab at the airline industry and create some marketing buzz too. "The airlines always find new ways to charge us extra dollars," says Chief Executive Ramon van Meer.