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The merger insider
Holly Hegeman’s red phone rang, and a trusted insider gave her this update on the United-Continental merger rumors. It’s on.

…the bulk of the existing United Airlines brand will continue to be used internationally, but Continental will take over the domestic operation for the most part. Other details we were told included the fact that there has already been a transition team put together. The deal will be announced after Delta/Northwest goes public. There will initially be a holding company set up to run both airlines. This operation will continue for three-five years. This will allow for a “smoother transition” from the two airlines into one operation.

But what happens if Delta-Northwest doesn’t go through, as it’s now hit a labor-related snag?

The “holding company” concept is one I expected when merger speculation first arose. Much like Air France and KLM operate separately under one company, it looks like the same idea is in the cards for the United-Continental merger, at least to start. But the merger looks like it’s on. Oh well.

Is that “going #3″?
Best opening paragraph in a while:

A newborn baby girl survived an ignoble birth after slipping down the toilet bowl of a moving Indian train onto the tracks when a pregnant woman unexpectedly gave birth while relieving herself on Tuesday.

Bad karma? Or a moral social stand?
Fighting the trend of tipping in American society seems like a losing battle, but the WSJ’s Eric Felten argues against the tip jar at Starbucks. It’s a good read.

Less than 1 cent per mile? No thanks.
I was going to comment that Delta’s new policy that allows you to use SkyMiles to buy a ticket based on the cost of the ticket, rather than the origin and destination, was generally a bad deal, and that it was an other salvo in their devaluation of the mileage currency. But Gary Leff and Tim Winship have already argued this point forcefully, so I’ll let them speak for me. I’ll just nod in agreement.

Misspellings go multinational
My disdain for the name “SimplyWheelz” is not enough to stop the brand from spreading. Hertz’s low-cost car rental subsidiary is expanding beyond Orlando to Alicante and Malaga, Spain, with sales channels targeting British and German tourists.

An old favorite: Fly first class at coach prices
One of this blog’s longstanding favorite subjects, the Y-UP fare, which books into economy but seats you in first class, gets a fresh look from Rick Seaney. The usual caveat applies: Y-UP may be cheaper than walkup regular-economy fares, but they’ll rarely ever beat out a cheapo fare purchased months ago. Nonetheless, it’s always worth a search.

Unscheduled landings stink, but especially internationally
Being diverted to another airport? Never fun. Being stuck on the plane? Never fun. Being diverted, and then stuck on a plane, because you’ve just landed in a different country? Even less fun. Just ask the Qantas passengers who were stuck on the plane during an unscheduled mechanical pit stop in India. (Thanks, Rob!)

First it was Boeing’s failed Connexion service (R.I.P.). But in recent months, inflight internet is making a comeback. There was JetBlue’s announcement of a Yahoo/Blackberry inflight internet service. Then last week, Southwest announced that they would be rolling out wi-fi internet access onboard a limited number of their planes in coming months. Then, this week, Continental followed suit with a JetBlue style TV and limited internet service. The similarity to JetBlue’s product isn’t coincidental: They’re buying the service from a JetBlue subsidiary.

The Southwest internet announcement was more interesting, because it was real internet, and not limited to Yahoo or Blackberry. Still, I had some questions. Today, I’ve got some answers from the heart of Southwest HQ.

The biggest deal: No voice. Not even Voice-over-IP. Just try and use your Skype connection. I dare you. Double-dog dare you. Southwest has got you blocked, sucka.

Q: Will passengers know in advance which routes will have the wi-fi capability?
A: Maybe. Noncommittal. “Nothing is concrete yet.”

Q: Will voice features, e.g., the portal for Skype, be turned on, or off?
A: OFF. Southwest will be blocking VoIP. “We’ll have more than enough bandwidth to support e-mail and IM…great SILENT communication options!”

Q: Any plans to consider cellphone capability?
A: Not at this time. (Whew!)

Q: Any plans to bundle wi-fi with the “business” fares now offered?
A: No word yet on the pricing. TBA.

Related:
- JetBlue starts testing inflight internet next week
- Feed the Internet addiction: American Airlines will roll out high-speed inflight wi-fi next year
- It’s official: Boeing pulling the plug on its inflight internet service, Connexion
- “No Cellphones” light to be added to aircraft interiors

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If you’re booking flights on Continental, you might as well give this promotional code a shot.

To redeem, go to continental.com and choose “Advanced Search” at the bottom of the blue fare search box on the left side. On the following screen enter ZB2UAS82JH in the “Offer Code” box halfway down the page. Then choose flights, etc.

No guarantees on how long this code will be valid, but give it a try.

(Thanks to reader Jim V. for sharing!)

UPDATE: Try ZB5HBFJEBT as an alternate discount code. Thanks, Srinivasan!

Thanksgiving is almost upon us. And I’m giving thanks that I’m not traveling this holiday. But in the spirit of the season, how about an upgrade/downgrade cornucopia:

Downgraded: Hooters Style
Kyla Ebbert, the Southwest miniskirt bandit, has posed for Playboy. Glad to know she wasn’t in it for the publicity. Nah, never… What took her so long?

Upgraded: Carry-on rules for UK travel
The UK may — may — allow passengers to have more than one carry-on item again, if airports demonstrate their ability to handle the load. If they pass muster, airports will be greenlighted starting January 7, 2008.

Upgraded: Weight-based airfare proposals
An Australian doctor is proposing airfare based on your weight. Not a particularly practical policy for advance purchases, but heck, hotels have tried it, so why not.

Downgraded: American Airlines’ flight tracking
What did AA do to keep up with the list of 130 diverted flights on December 29, 2006? It kept a list on a legal-sized notepad. Way to work the high tech! (via Consumerist)

Upgraded: Elitism on Greyhound
Greyhound, taking a page from the Skybus playbook, is charging $5 for early boarding on its buses. It’s not a bus with free wifi, but it’s a start, I guess.

Downgraded: Merger Mania
Yes, Delta and United are in play for a merger. Sure, Delta said the airlines weren’t talking. But their stockholders (hedge funds) were. So who the heck knows if this will actually happen. We’ve seen this thing before (United-Continental? US Airways-Delta?) and it hasn’t happened. Bottom line: airlines are making record profits, despite record fuel prices, and yet they still keep arguing for a need to cut capacity and raise fares, which is most easily effected through a merger. This makes no sense on so many levels. I remain opposed to airline mergers, like a broken record.

For some time the airlines have been doing their best to make frequent flyer miles less valuable. Expiration dates. Increased mileage requirements. Limits on the number of seats available for “free” seats. And on and on. Sure, travelers complain, but why haven’t banks?

Banks?

Yes, banks. Why? Because banks want to continue issuing the airlines’ frequent flyer affinity credit cards, since they make a pretty penny from them. And people will only put up with the annual fees and interest charges if they feel it’s worth it. Kill the demand for miles, you kill the demand for those cards.

And increasingly, frequent flyer programs are losing their value for customers. Take the latest changes to Continental’s OnePass: Tim Winship notes downgrades to the OnePass program effective February 1, 2008. Effectively, they’re price increases:

The price increase that will affect the most members will be for first-class awards on flights within or between the contiguous U.S., Alaska, and Canada. Capacity-controlled SaverPass awards will increase in price from 45,000 to 50,000 miles. And the price of unrestricted EasyPass awards will rise from 90,000 to 100,000 miles.

The other price increase applies to overseas BusinessFirst awards. Award flights between North America and Asia, India, Africa, or the Middle East will increase from 250,000 to 300,000 miles. And award flights between North America and Southern South America will rise in price from 180,000 to 250,000 miles.

Adding insult to injury, Continental is eliminating their 500-mile online booking bonus for tickets purchased at continental.com, effective December 1, 2007. While others, like Delta and United, have cut the bonus from 1000 to 500 miles, Continental takes the next step and just eliminates it. Edit: Delta eliminated their online booking bonus entirely in June 2007. Thanks to Chris and Walt for pointing out the error!

Take for granted that travelers should be annoyed. But if I were in charge of Chase’s Visa card program with Continental, I’d be annoyed too. If travelers decide that Continental’s miles are no longer worth pursuing, then they’ll bail out on the Continental/Chase card as well.

So why aren’t the banks raising a bigger stink at these mile devaluations?

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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The March of Dimes Foundation is raising money by auctioning off a first-class travel package on Continental Airlines, with all proceeds benefiting the charity. The 10-day auction starts today on eBay.

The winner of the auction gets “round trip, first-class transportation, dinner for two with executives from Continental and Boeing, a night at the Renaissance in Seattle, a tour of the Boeing plant and two seats aboard the Ferry Flight of their newest 777. All proceeds from the winning bid will go directly to the March of Dimes Foundation.”

Mmm… that new plane smell…

For more details on how to bid, click here.

Update December 9, 2007:
The freetraveling.com site is dead. So the list of promotional codes for American Airlines and other carriers, linked below, is down. However, there IS a 5% discount codes for American Airlines, as well as a discount for US Airways Vacations, in the 2008 edition of the Entertainment book, which may be a worthwhile investment.

The text of the original post follows, as originally published.

————————

The folks at FreeTraveling.com have compiled a list of promo codes (Edit: link is deleted, as the site is dead) for several U.S. airlines.

Most of the discounts are for American Airlines, but I found codes for Continental and Northwest as well.

To find your code, you need to select your destination city from a pulldown menu first. At this point, there are about 40 cities with promo codes.

Discounts aren’t always available for every time frame, much less on every airline, but it’s worth taking a look before you buy.

To use the codes, you may need to select “advanced” fare search options on the airlines’ websites. They don’t always make it immediately apparent.

Alternate way to get a discount: Buy an Entertainment book. The price of the book varies according to the “home” location, but each book contains a 5% discount code for American Airlines.

All danger, all the time. Hide the kids!

Dangerous hotel: Hilton closes hotel due to norovirus
The Hilton near Washington Dulles Airport was closed last week due to an outbreak of the norovirus, which infected over 100 people in the hotel. What is this, a cruise ship??

Dangerous flight: Plane aborts takeoff, skids off runway
A Northwest DC-9 went off the runway in Milwaukee after pilots “discontinued takeoff” thanks to an engine problem. No one was hurt. An engine problem? On a Northwest DC-9? A plane that hasn’t been built since 1982, yet is still the workhorse of Northwest’s operation? Unheard of!…

Dangerous flight… for the pilot
A Continental Airlines pilot died in-flight en route to Puerto Vallarta from Houston. The copilot landed the plane at McAllen, Texas.

Dangerous security lines?: Does CLEAR actually hurt security?
Security guru Bruce Schneier has an interesting op-ed in the New York Times. He argues that the registered travel program and its increasingly popular iteration CLEAR actually damage security, because the background check provides a false (and easily exploited) sense of security. Go read.

Dangerous shirts. Again.
Remember the guy who was nearly kicked off a flight from London to Melbourne because of the “George Bush: World’s Number 1 Terrorist” t-shirt he was wearing? Looks like his month in Australia is over, and he decided to wear the same shirt on the flight back. This time, Qantas didn’t let him on board. I still think it’s a pretty silly restriction on the part of the airline, but the guy is clearly looking for publicity.

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More and more airlines are downsizing the planes they fly across the Atlantic. Whether it’s service to new cities on smaller routes, or just a downgrade for existing service, Boeing’s 757 has gotten a new lease on life, despite no longer being produced since 2005.

The latest international route in a 757 is US Airways, which last week announced new 757 service from Philadelphia to Brussels. The airline will be installing winglets on its planes to maximize fuel efficiency (and thereby increase the aircraft’s range).

From a business perspective, this certainly makes sense. Some routes simply aren’t profitable with an Airbus 330/340 or a Boeing 747/767/777. The 757 is the compromise.

757s internationally aren’t new. American Airlines was flying 757s to and from Ireland for a while, without even bothering to upgrade the cabin to an international configuration. Icelandair relies on the 757 for the core of their operations. It was Continental that really got things started, though, by adding the winglets to their existing 757s, putting international business class seats up front, and flying the planes from Newark to smaller European markets like Edinburgh, Bristol, Oslo, and Cologne.

Not my idea of a good time

All well and good. But as a customer, I just don’t like this single-aisle plane on long routes. Sure, it can provide point-to-point service for smaller cities, and there’s definitely a benefit in having that convenience. But the comfort just isn’t there on a 757, unless you’re upgraded. A single aisle means more blocked aisles, and less room to get up and stretch. Arguably the ride over the North Atlantic is bumpier than in the widebodies, too.

The seats themselves are no great shakes, either. While every airline configures their seat pitch differently, the 757’s economy-class seats are consistently a narrow 17.2 inches. I have yet to sit in any 757 coach seat — on any airline — that I would truly describe as “comfortable.” These planes are fine for domestic runs, but international service needs a little more space.

8 hours on such a flight? No thanks.

Disagree? Prefer the 8-hour nonstop flight in a single aisle to a one-stop in a widebody? Hit the comments!

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Airline mergers are headlining the news again today, with United and Continental in early discussions, and with AirTran’s offer for Midwest Airlines confirmed (but declined). This of course comes on top of the US Airways offer for Delta, which Delta is resisting.

So consolidation is afoot. Like lemmings, the airlines run off the cliff, hoping to grow bigger. My feelings on mergers like this are negative, and I’ll just repeat part of an earlier post, when Continental and United were first being bandied about as potential merger partners:

But the bottom line for travelers doesn’t look good. Planes are full, demand is there, and airlines are eking out a profit, even with high oil prices. When airlines say there’s too much capacity, it just means that they want to charge more. A merger would drive out competition and increase prices — at ALL airlines, not just United-Continental. Not to mention the mess that could arise from merging two frequent flyer programs. I’m wary of a merger, and hoping it doesn’t happen.

That said, the counterargument suggests that consolidation will breed the rise of new competitors, or the expansion of other carriers to fill the void (and higher prices) in the wake of mega-mergers.

Possible, and probable in the long run, but in the short to medium run, mergers like this aren’t pro-consumer. They’re pro-Wall Street, and pro-airline executives, and that’s about it.

US Airways announced an $8 billion cash and stock bid to buy Delta out of bankruptcy. If it goes through, the new company will fly under the Delta banner.

It’s pretty remarkable that US Airways is doing this, since they’re not even finished digesting their previous merger (when America West bought the old US Airways and took over the older rival’s name.)

The merger would mean a 10% cut in capacity (i.e., fewer seats, higher prices, fuller planes) and inevitable job losses in cities served by both airlines. Consumers and employees are likely losers here.

Two questions on my mind:

1) Will the emergent Delta be a member of Star Alliance or SkyTeam? I’d put my money on SkyTeam, given Delta’s size and international presence, compared to US Airways.

2) Will this announced offer lead to more mergers? United+Continental has been talked about for some time, though the latest buzz has United going private. But airlines are making money, for now, and the impetus to merge has faded somewhat. US Airways is striking now, while Delta is still in bankruptcy court, and control of the company rests with creditors.

We’ll see what happens.

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