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Survival strategies of the all-business airlines

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Eos and Maxjet have kicked the proverbial bucket, but the all-business carrier concept isn’t quite dead yet. Silverjet found new life by getting a cash infusion, a promise of more cash, and possibly even a bidding war/buyout offer. Huzzah for them!

But the other remaining trans-Atlantic airline, L’Avion, has figured that it can survive by partnering with others. And it’s linking up with another new airline — the British Airlines subsidiary OpenSkies, which launches flights from Paris (Orly) to New York (JFK) on June 19.

L’Avion will codeshare the OpenSkies flight, but not the other way around, at least for now. L’Avion flies all-business class from Newark to Paris, while OpenSkies flies a plane with business, premium economy, and economy from JFK to Paris. L’Avion’s seats are all forward-facing cradle seats (not lie-flat) while OpenSkies has alternating front-and-rear facing 180-degree lie flat business seats.

For L’Avion’s survival, getting a codeshare with a British Airways subsidiary seems like a smart move. I’m still not sure how they can afford to sell tickets for under $1500 round trip in business class and survive long-term, but the new codeshare may have thrown them a lifeline for the short term.

Singapore Airlines to fly all-business class widebodies across Pacific

For a few years now, there’s been abundant competition for business-class travelers on the trans-Atlantic route, with upstarts carving out all-business class niches to woo passengers away from the major airlines. But until now, there’s been no such movement on the trans-Pacific routes.

But it’s no upstart that’s offering this new service. It’s Singapore Airlines.

They’re converting their ultra-long-haul Airbus 340-500’s to all-business configurations, which means that “Executive Economy” customers are getting the boot. These widebody planes will go from 181 passengers to 100.

Others have already chimed in on the issue. Jared Blank thinks this will be a cash cow. The Cranky Flier is skeptical, calling it a “no-win,” and throwing some barbs at the aircraft for good measure.

Is this a great business move? I don’t know. But my thoughts are this: The supply of business class seats on Singapore Airlines — a truly top-notch airline — just went up big-time. Maybe, just maybe, the frequent flyer seat inventory went up, too. This could be a great opportunity to cash in frequent flyer miles and really get some bang for your proverbial buck.

After all, Newark to Singapore is 9535 nonstop miles, according to the excellent Great Circle Mapper. If ever there’s a flight where you really want to be in business class, it’s this one.

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Upgrades and Downgrades — February 11, 2008 — Frequent flyer law, Delta’s business class upgrade, mergers and unionizations, and Air Gitmo

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Upgraded: Frequent flyer legislation
Downgraded: The value of your miles

Frequent flyer programs can be a byzantine maze. Above all, nearly everyone is cranky about being able to cash in their frequent flyer miles. I just tried winnowing down the uncomfortably large kitty of points for some Caribbean travel in May and was given the Heisman. But I’m not cheering on Washington state legislator Chris Hurst, who’s proposing a bill that would allow consumers to cash in their miles at 0.2 cents apiece. “Cash in” literally — for cash. House Bill 2707 is probably not going to go anywhere, but it’s meant as a shot across the bow of airlines whose point redemptions are increasingly stingy. Representative Hurst, call me when you start demanding 2 cents per mile or better. (via Pointswizard)

Upgraded: Delta’s business class seats… on some of its planes
Delta is rolling out new fully-flat seats on its 767s that travel internationally. Excellent news. But only on the 767s for starters, which means that the Delta fleet will have a patchwork of seating at the front of the plane. Sure, every airline rolls new seats out one plane at a time, but it’s odd to limit the rollout explicitly to one aircraft type.

Upgraded: Delta’s flight attendants’ trepidations
With Delta and Northwest in confirmed talks regarding a possible merger, the as-yet non-unionized flight attendants at Delta are looking to organize. Delta’s attendants might be members of the AFA-CWA as of February 14. Consider it a Valentine to Delta management. The goal is to “have a seat at the table” when merger discussions take shape.

Upgraded: Competition for hourly car rentals
With the success of hourly “car-sharing” rentals like Zipcar, the big car rental players are getting in on the action. Reportedly, Enterprise is launching its own version, dubbed “WeCar,” which is being test near Washington University in St. Louis. Just be sure to walk around the car and take photos before and after the rental. If WeCar is anything like their regular operation, those Enterprise guys will try to nail you for any damages on the car, whether it happened on your watch or not.

Upgraded: Gitmo!?
Disturbing and bizarre: There actually exists scheduled service to Guantanamo Bay, ironically provided by the happy-go-lucky sounding Air Sunshine, using 9-seat Cessnas. For those wishing to plan their trip, service is only four days a week, at $250 each way. Not cheap, for such a short trip, and you’d better hope they honor the return portion of the ticket. But you may never want to leave. After all, as Dick Cheney described the conditions for detainees at the base’s prison facilities, when he spoke to CNN in 2005, “They’re living in the tropics. They’re well fed. They’ve got everything they could possibly want.”

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Upgrades and Downgrades — February 4, 2008

sleeping-tsa.jpgUpgraded: Your chance to vent at the TSA
Homeland Security first got a blog, but now the TSA has one too. And it’s not just staffed by the man at the top. They asked for your honest opinions. Give ‘em hell. Just keep it civil. (Thanks, Stephen!)

Upgraded: Nude Aviation
Who could forget Naked Air, the chartered “airline” that transported “naturists” to sunny destinations. Now, a German travel agency will make naked flights a regular option. But for those longing for a long overnight trip in the buff, you’ll have to keep waiting. It’s just a short trip within Germany. (Seriously, why bother?)

Upgraded: Business travel blogging
Hirsute frequent flyer kingpin Randy Petersen has gathered a number of blogs related to business travel into one place — BoardingArea.com — and you’ll find Upgrade: Travel Better syndicated there, too. You’ll find some familiar names there as well, plus some spunky newcomers. The site’s launch was featured in the New York Times, too, including a photo of the hirsute proprietor. Check it out.

Upgraded: Hotel thieves
If you’ve ever stolen stuff from a hotel room, you can return those towels, glasses, bathrobes, and … punch bowls? In any case, if you’ve been a pilferer from the Renaissance Mayflower Hotel, your day of amnesty is here. Bring back the contraband, no questions asked. (Thanks Dr. Vino!)

Upgraded: JetBlue’s alliance prospects
Perhaps you remember my prediction from February 6 last year, that jetBlue and Aer Lingus would try to sync up in an alliance? Looks like the prediction was right, according to WSJ reports. But Aer Lingus might find some competition from jetBlue shareholder Lufthansa, who is also looking into an alliance of sorts with the ‘blue.

Upgraded: Short runways, long flights, 2-year old sarcasm
British Airways has announced another luxury initiative, aimed squarely at its all-business class competitors. The new all-business class service will fly from London’s City airport — a tiny airport with a short runway — to an as-yet unnamed New York area airport. The flight will feature only 36 seats on an Airbus A318. Not A319. Not A320. A318. The shortest in the family, and the biggest plane legally permitted to depart from London-City. The Cranky Flier has a nice post on the logistics of the proposed service. But jeez, it looks like my sarcastic comments from April 2006 were taken seriously: “What’s next?: Will someone determine that London City airport needs nonstop business class service to White Plains or Islip?” I guess life imitates snark?

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British Airways’ new premium sub-airline: Why bother?

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The ink barely dried on the demise of Maxjet, when this report in the New York Times hints at the next premium class carrier to try its hand at the cross-Atlantic luxury market. But it’s no venture-capital-backed startup. As mentioned last summer, it’s British Airways.

Much of the attention will be focused on British Airways, which is expected to introduce a “mini-airline” on Jan. 9. The discount start-up, developed under the code name Project Lauren, plans to begin service in May, flying a Boeing 757 configured mostly with premium-class seats between a European city (Paris and Brussels are the leading candidates) and New York (either Kennedy International Airport or Newark Liberty International Airport).

People involved with Project Lauren said the name of the new airline is likely to be Open Skies, a nod to a new agreement that takes effect in late March and greatly expands the ability of international airlines to choose new routes between Europe and the United States.

Historically, sub-airlines are a problematic proposition, because they end up competing against the parent company. And while many subsidiaries are on the discount end of the spectrum (Continental Lite, Delta’s Song, United’s Ted) this is a little different, as it’s aiming at premium passengers.

But what’s interesting is one word in the quote above: “mostly.” As in: “flying a Boeing 757 configured mostly with premium-class seats.” That means we’re looking at some economy seating on those flights.

Which, in turn, raises the question: Why bother? Why create a full-fledged multi-class airline, when a multi-class parent airline — BA — already exists? The answer may be labor costs. (Or, if you prefer, labour.) Pilots for the new airline would operate under a different (presumably less expensive) contract than regular British Airways pilots. A-ha.

So perhaps this is all just a way for BA to skirt existing contracts and pay their staff less money to do the same work they did before.

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Maxjet declares bankruptcy and cancels all flights

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Merry Christmas from Maxjet. The discount all-business class airline shut down all its operations today — on Christmas Eve — when it declared bankruptcy earlier in the day.

The airline’s demise was no surprise — see this post — but passengers are now left scrambling to find alternate ways to and from their destinations, with some help.

MAXjet said it was working with rival all-business class Eos Airlines to find alternative routes. Meanwhile, Continental Airlines and Silverjet Aviation Ltd., another all-business class carrier, said they would honor limited numbers of MAXjet tickets.

“Honoring” tickets doesn’t mean they’ll do it entirely for free, but the cost is minimal. Continental’s rules for accepting these Maxjet tickets state:

MAXjet customers will be accepted for travel on a standby basis on Continental flights between Los Angeles/Las Vegas/Newark and London Gatwick from Dec. 24, 2007 through January 6, 2008. Passengers will be charged a $50 per flight segment ticketing fee, plus any applicable taxes and security fees. Continental will waive the current fuel service charge normally required for Newark to London passengers.

Note that they don’t state that they’ll transport you in business class, just that they’ll transport you on a standby basis. Lesson: If you want to fly in business class, and if Eos or Silverjet will take you, take advantage of that (especially if it’s the superior service at Eos). Call them first before you just show up at the airport with your Maxjet scrip.

Also: if you haven’t started your travels yet, you may not be able to simply swap carriers. Getting a refund — if possible — may be the better option. Notify your credit card company and let them know. If you bought through a travel agent, call them ASAP.

Maxjet’s homepage has an apology and some instructions, too.

For those left with this conundrum, my condolences, and best wishes for finding a way home, or wherever Maxjet was going to take you. Feel free to report back with tales of how you got there and back.

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Is the end near for Maxjet?

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This past Friday, all-business class carrier Maxjet suspended trading of its shares on the London-based Alternative Investment Market stock exchange. The reasons for the trading halt started vague (”pending clarification of its financial position”) but got more dire as the day went on (”…the US group struggled to put together a financial rescue package.”)

Uh oh.

It’s not easy being Maxjet. As the least-luxurious of the all-business carriers flying between New York and London, it lacks the cachet of an Eos, or even a Silverjet. And Maxflier, their frequent flyer program, stinks. (16 roundtrips necessary in order to get a free trip? C’mon!)

The airline assures its customers and suppliers that it’s still operating as usual, but it’s facing a cash crunch and is trying to line up funds to stay afloat. This doesn’t look good for them.

Maxjet is certainly a pioneer, but they’re facing stiff competition from both upstart airlines and old-school carriers on a well-traveled route. Those competitors are bound to benefit from this uncertainty that now hangs over Maxjet. The biggest thing going for Maxjet has been good value — even if they’re not the top of the line. But with expenses going up, that’s been a tough model to sustain.

Related:
- Maxjet’s fatal flaw?
- All-business class to China?
- Silverjet IPO enables third London-New York all-business-class airline

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Short hops — November 28, 2007 — Mental anguish, healthy snacks, shameless self-promotion, and more

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Flight delayed? Sue!
A judge in India has ruled that passengers whose Go Air flight was canceled were due the equivalent of US$380 each because of the mental anguish they suffered. Is this a trend? Where can I sue for suffering through flight delays inside a regional jet?

Get on the bus
The American Bus Association wants you to feel green about hitting the road: They claim that buses — ahem, motorcoaches — are more environmentally friendly than passenger cars, trains, and planes. According to their numbers, a bus gets 184 passenger miles per gallon, while commuter rail comes in at 86 and planes only make 42. I’ve sat behind some black soot-spewing buses, and I find this claim hard to believe. And what about all the electric rail out there? Nonetheless, one thing is indisputable: Buses are more efficient than passenger cars.

Which airline has the healthiest snacks?
Domestically, it’s United and their $5 snackboxes according to Charles Stuart Platkin of dietdetective.com. See his post for the lowdown on the various airlines’ snacks.

Business class shootout!
Reader Gianugo has personally tested three of the all-business class airlines that cross the Atlantic. In his tests, Silverjet comes out on top, with L’Avion and Maxjet trailing. (No test of Eos Airlines, but they’re generally at a much higher price point.) The L’Avion review certainly jives with previous reports from the field (here and here). Read his detailed post for the breakdown of what makes these discounted business class airilnes tick.

No more being charged extra fees for returning your car with a full tank
Consumer victory! One of the very first posts on this blog — in its first week of inception, in fact — railed against Budget Rent-a-Car’s practice of levying a $9.50 charge if the odometer registered fewer than 75 miles upon return. This is one of those “what are they thinking” fees that gives the travel industry a bad name. I’m pleased to report that the Federal Trade Commission has clamped down and told Budget to stop. (via Consumerist)

Shameless self-promotion, part one
Chris Elliott, consumer advocate, National Geographic ombudsman, and general thorn in the travel industry’s side, compiled his list of the seven “most influential” travel bloggers. You’re reading one of them. Huzzah! The others: Paul Brady at Jaunted, Arthur Frommer, Holly Hegeman at PlaneBuzz, CondeNast’s Wendy Perrin, Ben Popken at Consumerist (where I’ve been a guest blogger on several occasions), and FareCompare’s Rick Seaney. Nice company to be in, to be sure, and a good starting point for your other blog-reading needs. There are seven runners-up, too, so go read the whole thing. Consider other blogs, like the Travvies winners from earlier this year. (Or heck, the finalists!) And peruse the blogroll in the pulldown in the right sidebar for more great blogs that I read regularly.

Shameless self-promotion, part deux
Upgrade: Travel Better goes audio: You can hear a few snippets of me commenting on recent frequent flyer mile devaluations on Marketplace, which aired this morning on public radio. If you didn’t wake up to the “dulcet tones” of my voice on your clock radio this morning, you can hear the clip and read the transcript here.

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Great idea, bad marketing: Austrian Airlines’ color-by-numbers business class seats

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Austrian Airlines recently announced a genuine upgrade on its medium-haul flights: real business class seats. But the picture they used to accompany their public relations blitz (above) is taking the term “illustration” a bit literally. Couldn’t they take a real photo?!

That said, it’s actually a meaningful change for Austrian to put these seats in their Airbus A320s. After all, the majority of “business class” seating on single-aisle flights in Europe involves just adjustable armrests in a regular row of coach seating. That means there’s no center seat, but it’s not a “real” business class seat.

So by offering a real business class seat on shorter routes — albeit a cradle seat, not a top-of-the-line lie-flat seat — Austrian is kicking things up a notch. It’s a small scale, but if it works, it could signal the start of a new trend in Euro-travel.

The new seats will be put into a whopping four planes in the fleet by September 2008, which will cover flights from Vienna to Damascus, Cairo, Tehran, Dubai, and Astana. (Astana? Borat demands a cradle seat!)

Now if only they could get their art department involved.

(Thanks, Benet!)

What great customer service looks like

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Airlines are catching a lot of well-deserved flak for their declining customer service these days. But it’s not that way across the board. Sometimes, an airline gets it right.

This story of love, hope, and redemption comes to us from the desk of… my dad. Yes, the dadster writes in with some reader mail, with a rave about the service he received from Swiss International Airlines. (The airline chieftains hate it when you call them Swissair, the bankrupt carrier from which the modern Swiss International Airlines emerged…)

Dad flew Swiss coming back from Germany last week. He used 90,000 80,000 of his United miles to fly business class to Germany on Lufthansa, and back on Swiss. (edit: Dad e-mailed to correct me on the mileage…) And predictably, I applaud him for a fine cents-per-mile use of the miles.

The bulk of his praise is for what he experienced on the ground. If you’ve ever just missed a flight, then you’ll especially appreciate this. Read on after the jump… (more…)

Short hops — September 14, 2007 — Ozone, first and business class sales, and more dangerous shirts

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Next thing to worry about in flight: Ozone
Like “sick building syndrome,” you can now start worrying about the plane’s air. But not because of the germs. It’s the ozone. Not holes in the ozone layer, either, but ozone levels in the cabin. Most interestingly, narrow-body flights are more prone than wide-body planes to higher ozone levels. Yet another reason to love the jumbos.

Korean Air shows off its Airbus A380 interiors
Singapore Airlines may be the first airline to fly the A380 mega-uber-hyper-super-jumbo-jet (and tickets are finally on sale for Sydney-Singapore flights, which start October 25, by the way), but you can get a photo tour of Korean Air’s A380. Lavender??! Who’s their interior designer? Yuck! (Thanks, Jeff!)

First class fare sale… if you’re traveling tomorrow
I know that airlines like to put out the e-fares and net-savers for weekend travel, but this offer from United struck me as odd. First class fares are on sale for travel on Saturday, September 15 only. Fly there in first, fly back in coach, savor the difference? Fares are less than regular paid first, but the bulk of fares are for really short flights where paying cash money for first class is bonkers.

Business class fare sales to Europe
All-business class L’Avion is flying Newark to Paris for $1398 roundtrip, pre-tax. Maxjet is doing London to New York or DC for $998, also roundtrip, also pre-tax. Both are through the end of 2007, but not every date may be available. (Thanks, Michelle!)

More dangerous shirts
I don’t know what to make of this. “Your liver is evil. It must be punished.” Har har har. But Continental Airlines wasn’t laughing when they kept Edna and Frank Taylor from getting onboard, because of that shirt. What’s with this “What Not to Wear” airline trend?

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Short hops — September 5, 2007 — animal sacrifice, Motel 6’s lights-on policy, the Air Force’s lost baggage, and so much more

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Whom or what would they kill to get an upgrade?
Nepal Airlines mechanics sacrificed two goats to appease Akash Bhairab, the Hindu sky god, after they just couldn’t quite fix the problems in their Boeing 757. How many goats does it take to get a 757 to arrive on time at LAX? Slaughtering livestock isn’t limited to Himalayan aviation: Longtime readers may recall that Turkish Airlines maintenance workers killed a camel to celebrate the disposal of a regional jet last year.

$100K isn’t a good flight value
I know it was for charity. But paying $100,000 to fly on the inaugural Airbus A380 flight on Singapore Airlines seems a bit much. Most importantly, will they earn miles?

Shocker: Motel 6 really won’t leave the light on for you
To conserve energy, the ultra-budget chain doesn’t really leave lights on. So says their folksy pitchman Tom Bodett. So you know it’s true.

Delta’s apparently not afraid of the competition
Inside baseball, maybe, but still: Looking over the blogroll at Delta’s blog, I noticed that they link to their competitors: Southwest’s blog. That’s pretty gutsy for a corporate blog!

United names dates and planes for new business class rollout
The first plane to receive the long-awaited upgrade of 180-degree lie-flat seats in the business class cabin: a Boeing 767. It’s scheduled to travel between Washington and Frankfurt on October 29, 2007. Saver awards are unavailable at press time.

US Air Force tags nuclear warheads to wrong airport
Next time your luggage heads to Ketchikan, Alaska instead of Kansas City, take heart: The Air Force does it too. A B-52 bomber mistakenly carried six nuclear warheads from Minot, North Dakota to Barksdale Air Force Base in Louisiana. Oops. Just better hope it doesn’t end up at the Unclaimed Baggage Center.

Courts: Entering an airport means you’re subject to searches
This is old news, but I admit I just got wind of it now. If you’re at an airport in the U.S., you can’t turn around and leave the premises if you want to avoid being searched. “Citing threats of terrorism, the court ruled passengers give up all rights to be free of warrantless searches once a ‘passenger places hand luggage on a conveyor belt for inspection’ or ‘passes though a magnetometer.’ […] In 1973, the circuit court ruled that airport searches were valid ‘only if they recognize the right of a person to avoid search by electing not to board the aircraft.’” Not anymore. Offer to leave all you want, they can still search you. For the law-dogs out there, the case is United States v. Aukai, 04-10226. (via Wired’s Threat Level)

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