Downgraded: American’s luggage fees
Speaking of fees, this is more or less the norm: American is raising its checked baggage fees by $5, both for the first piece (now $20) and the second ($30).

Downgraded: Open Skies
OpenSkies, the all-premium class British Airways subsidiary, is dropping its New York-JFK to Amsterdam route and is focusing entirely on flights from Paris to Newark and JFK. Just days after announcing that the airline was for sale. A shame.

Downgraded: Government architecture
Just when they started making customs and border crossing buildings a little more interesting, they go ahead and roll it all back: The 21-foot-high letters spelling “United States” were deemed a target, and thus a security risk. Words fail me.

Upgraded: Deals at Starwood hotels
Starwood is cutting rates by up to 50%, albeit off rack rates. “Limited time only,” they say, but no end date.

Upgraded: Headline writing
A Southwest Airlines flight made an emergency landing shortly after leaving Hartford, due to an electrical problem emanating from a coffeemaker, but you’ve gotta love the Times of London’s headline for the incident: “Southwest Airlines flight grounded by coffee aroma.”

Upgraded: Eco-designations for hotels
AAA is planning to note an “eco-friendly” designation in their TourBook travel guides for properties that participate in local, regional, or third-party eco-accreditation systems. The patchwork approach means that a hotel might make the cut in one state but not in another, based on regional variation.

Downgraded: Bangkok airport duty-free
If you’re in Bangkok, you might want to skip the duty-free shop. Customers have been falsely accused (better: framed) of shoplifting. And thanks to an apparently collusive agreement between the police, the duty free operator (King Power), and individual “translators,” all working in cahoots, travelers have been forced to pay up thousands of dollars in order to leave the country. “The British Embassy has also warned passengers at Bangkok Airport to take care not to move items around in the duty free shopping area before paying for them, as this could result in arrest and imprisonment.” Absurd! Read the whole convoluted story of the “zig zag scam” here.

Downgraded: OpenSkies
British Airways is looking to sell its all-business class OpenSkies subsidiary, only a year after buying L’Avion and merging the two operations. The airline-in-an-airline is still operating, though, and there are some pretty sweet deals for premium class travel. If you’re flying between New York and Amsterdam or Paris anytime soon and looking for a relatively inexpensive upgrade, this could be the ticket. (~$1230 all-in roundtrip for a 140° cradle seat, or ~$2100 for a 180° flat bed.) But I wouldn’t book more than a month or two out.

Upgraded: Inflight internet overseas
Lufthansa is reportedly exploring ways of restarting the now-defunct Boeing Connexion satellite-powered inflight internet service. The receivers are already installed on many of their planes (a process which was undertaken at a hefty cost. Panasonic is the most likely provider of the services to the airline.

Downgraded: The St. Regis Monarch Beach
Upgraded: Irony
You may recall the St. Regis Monarch Beach in California as the site of controversy — Weeks after accepting a huge federal bailout, AIG executives spent nearly half a million smackers to host a swank affair at the resort. Now the resort itself has gone into receivership: Creditor Citigroup has foreclosed on the property, taking possession from the franchisees, Makar Properties. (Perhaps not surprising if reports of 15% occupancy rates are true.) But foreclosure doesn’t mean closure. The property remains open, albeit under new ownership.

Upgraded: Exotic inflight vermin
Paging Samuel L. Jackson! A passenger on a Southwest Airlines flight departing Phoenix was stung by a scorpion in flight. The creature fell out of luggage in the overhead bin, where numerous other scorpions were residing.

Downgraded: Budget Rent-a-Car’s ethics
Budget Rent-a-Car is still working with Trilegiant, the shady operators who send out “checks” you shouldn’t endorse. Signing the back commits you to an expensive membership in a “consumer club” with minimal benefits — all billed to the credit card you used when you rented a car from Budget. I reported on this back in January. I just received a similar solicitation this week, offering me a $10 check in exchange for a $219.98/year membership in “HealthSaver.” Shame on you, Budget, for pimping out the credit card data that your customers trusted you with.

Downgraded: Airline fees
Another week, another hike of airline fees. Continental, as part of its earnings report, is raising the cost of checked luggage by $5, bringing it to $20 for the first bag and $30 for the second. Also: Delta is adding a $5 in-person luggage fee for bags not checked in in advance online.

(image)

Here’s part of the e-mail that went out last week:

In light of recent international developments, and following our acquisition by the prestigious British Airways, beginning April 4th, L’AVION will fully merge with and formally change its name to OpenSkies.

The premium service you received on board L’AVION is not only being preserved, but further enhanced, all while maintaining very attractive prices. OpenSkies will be a unique, all business class airline featuring 2 cabins of service. You will recognize the normal L’AVION Business Class, which will be called “Biz Seat”, as well as enjoy an entirely new product, “Biz Bed” featuring a 180° fully reclining flat bed available at prices that are still unbeatable! You can combine the rates for the two classes, too. This way, you could, for example, book an outgoing flight in “Biz Seat” and a return flight in “Biz Bed”.

You will also benefit from the “British Airways Executive Club” customer-loyalty frequent flyer program, allowing you to accumulate BA Miles that can be converted to complimentary flights or upgrades.

What’s odd here is the branding of the cabins. OpenSkies has already been operating a two-cabin aircraft (down from three cabins, when they ditched economy), which this will align. But OpenSkies labels their cradle seats “Prem+,” while the L’Avion planes will use the “biz” title, implying business class.

From various reports from the field, L’Avion’s product has been widely described as a better premium economy product. Which is fine. And which would align with OpenSkies’ terminology. So the fact that they’re becoming OpenSkies, while at the same time still calling themselves “biz,” is odd.

(There is no sign that OpenSkies is (yet) adopting the “biz” nomenclature, so somehow, the merged airline will still maintain two distinct cabin identities.)

This is what L’Avion’s seats – the “Biz Seats” – look like now:

In any case, for aficionados of the discounted premium class travel, it seems that BA is sticking with their OpenSkies sub-brand, and that L’Avion really is the sole survivor of the all-premium independent airlines (though admittedly it’s not independent anymore…).

Related:
- Booking flights on L’Avion just got less risky
- Inside L’Avion, part un: a good seat but a shortage of fluids and information
- Inside L’Avion, part deux: the airline that is betwixt and between

But the treaty wasn’t supposed to end with a few new routes across the Atlantic. European airlines in particular are hoping to move into the North American market in a way they’ve never been allowed to before.

The Europeans are prepared to lobby vigorously for the part of Open Skies they see as far more crucial: relaxed ownership rules. In 2010, a year that will likely inflict further financial stress on a global airline industry struggling under recession, expect a new push to soften the 25% cap the U.S. imposes on foreign investment in airlines. It’s no secret to anyone that among the developed world’s airlines, U.S. carriers are the unfortunate, pitied cousins, their service and finances both in shocking disrepair. Most U.S. airline executives would welcome a strong financial partner, or the ability to sell out to one of them. And Europeans want greater access to fly domestic U.S. routes and to acquire airlines here.

But those who are salivating at the prospect of an Air France or Lufthansa flying into Toledo or Raleigh, wipe the spittle off your chin and stop dreaming. It’s not happening. Especially with this guy in a position of power:

In the U.S., Rep. James Oberstar (D-Minn.), chairman of the House Transportation Committee, reaffirmed his support for tightening foreign-ownership restrictions by inserting protectionist language in legislation to reauthorize FAA funding.
[...]
Labor has also cultivated a warm relationship with Oberstar and has voiced support for his tougher language on control.

Capt. John Prater, president of the Air Line Pilots Association, said, “ALPA strongly backs language in the bill affirming that U.S. citizens must control key operational aspects of U.S. airlines. This bill does that by identifying fleet composition, route selection, pricing and labor relations as among the operational elements that the Department of Transportation must ensure U.S. citizens control.”

Oberstar’s language would require U.S. citizens to “control all matters pertaining to the business and structure of the air carrier, including operational matters such as marketing, branding, fleet composition, route selection, pricing and labor relations.”

I understand that the airline industry is critical for the movement of goods and services in the country. And as such, the government takes a special interest in its ownership. But the 25% limit on ownership is overly restrictive, and actually hurts American airlines’ access to global capital.

Oberstar’s efforts to add conditions to expanded ownership will make US airlines less attractive to foreign investors. That’s intentional. And it’s dumb. Short-term it “protects” the companies from control by outsiders, but long-term it makes these American companies — already a laughing stock in the global marketplace — increasingly irrelevant.

Frankly, I don’t think most passengers care much, one way or the other, who owns the airline they’re flying. JetBlue is 19% owned by Lufthansa; does that make you more or less likely to fly them? How about Virgin America, whose nationality is perpetually being challenged, with its high-quality inflight product?

So, as much as I’d enjoy the prospect of a high-quality international carrier coming in and serving domestic cities, it’s not going to happen. And it looks increasingly unlikely that American carriers will get to partner with stronger international partners. And that, in particular, is a shame.

Many of those seats are still available. Economy class fares are creeping up for those folks who waited until the last minute to book their tickets, but business class (and premium economy) are still comparatively low.

If you’re doing a search for fares, run a separate search for business class fares. The economy search that is the default on most booking sites won’t necessarily capture business or first class fares, even if they’re lower than coach.

The best deal I’ve seen for last-minute 2008 holiday travel has to be on L’Avion, the all-business class carrier flying between Newark and Paris. $1479 plus taxes ($1,581.79 all-in) pays for the round-trip. The coach fare on Air France is $1623 for the same holiday dates. L’Avion isn’t the top-of-the-line business class seat — it’s a cradle, not a flat bed — but it’s $50 less than the cramped coach seat. No contest. (Plus, you can earn miles in British Airways’ Executive Club, as of December 2, 2008.)

Some of those flights may be operated by OpenSkies, the British Airways subsidiary that sells premium-economy (cradle) and business class (flat-bed) seats. A L’Avion seat in business is considered equivalent to an Open Skies Prem+. Check both sites, but I found the fares lower on the L’Avion side — even for the OpenSkies operated flights.

Related:
- Booking flights on L’Avion just got less risky
- Inside L’Avion, part un: a good seat but a shortage of fluids and information
- Inside L’Avion, part deux: the airline that is betwixt and between
- L’Avion (aff)

Upgraded: Great reviews of awful hotels
Speaking of lousy hotels… how about this gem in Huntsville, Arkansas? Your room may have security cameras trained on your bed. Fantastic! (Thanks, Kim!)

Downgraded: Honesty, and eventually, safety
American and Delta are pulling out of a voluntary pilot-error reporting program with the FAA. The program was designed to allow pilots to admit to mistakes without fear of punishment, in order to improve how the air traffic control system functions. Guess what: The pilots say they’re being penalized by the airlines anyway, so they’re refusing to report errors. Which harms the system in the long run. Less data means the FAA will have a less accurate sense of the problems — however minor — which plague air travel. Management-labor relations, doing damage once again.

Downgraded: Advantage Rent-a-Car
Upgraded: My mood
Advantage Rent-a-Car, my least favorite car rental company in the United States of America, filed Chapter 11, with plans to close nearly 70% of their locations. Good riddance. My experiences with them were uniformly unpleasant, and downright insulting. I’m sure there were good people who work(ed) for the firm, and for those people, I’m sorry. I’m also sorry that I never actually met any of those people at an Advantage Rent-a-Car counter.

Upgraded: EU and Canada strike open-skies deals
The EU and Canada have liberalized the possibilities for air traffic between one another. “Under the deal, which is expected to come into force in the first half of 2009, airlines based in the 27-nation bloc will be able to operate direct flights to Canada from anywhere in Europe.” More competition for routes across the Atlantic should ensue.

Upgraded: Hartford
Northwest canceled the Hartford-Amsterdam flight, but post-merger Delta resumes it. Service is on a 757. Let’s see if they can make it work.

Upgraded: Algae fuel!
Yes, it’s just in the experimental phase, but Boeing is testing jet fuel derived from algae.

Upgraded: Your Merrill Lynch stock
Elite Island Resorts, with several properties in the Caribbean, are accepting stock as payment for your holiday stays. Better yet, they’re valuing the stock at July 1, 2008 levels. Merrill Lynch stock is down nearly 60% from that level. So, a 60% discount off the room rate! And at these levels, it might even be a good long-term investment for the resort. (via NYT)

Downgraded: Delta’s SkyMiles
It’s not coming as a surprise, but Delta has added a third tier to its frequent flyer program. I have expected this since last year, when Delta eliminated the “last seat availability” clause and added restrictions to its “SkyChoice” tier of frequent flyer tickets. (Previously, if you were willing to pay about double the miles, and if a seat were still for sale on your desired flight, you’d be guaranteed the opportunity to buy it. Much like full-fare tickets.) Now you have to pay TRIPLE the miles for the “last seat availability.” Bad enough. But there’s insult added to this injury. We know that miles are being devalued, and we understand that airlines are trying to make a buck (by screwing their most loyal customers, ahem), but it’s disingenuous when the airline says it’s giving travelers “more choice” or “flexibility,” when in reality that flexibility was taken away and then replaced at higher prices. I’m in complete agreement with Jared Blank on this one: Delta is pissing on us and telling us it’s raining.

Bonus: Since you’re going to need more miles, why not get some for very little effort, and have a story to tell your friends over a beer? Via Gary Leff, get 20,000 Delta miles by getting a free hair loss restoration consultation. Even if you’re a hirsute Adonis with a flowing mane (or, for the sake of equality, it seems, even if you’ve got the Crystal Gayle look), you’re eligible.

Downgraded: Standby on Frontier
Frontier has eliminated the complimentary standby policy and has moved to a Southwest-style model. You can still get on an earlier flight, but you’ll have to pay the difference between the ticket you’re holding and the walkup fare for the desired flight. If you’re on a full-fare ticket, then rock on. But walkups are most likely far more than what you’re holding. (Hat tip to Dan Webb.)

Bonus: A decent summary of most major US airlines’ standby policies, as of July 3, is here. (via FlightWisdom)

Upgraded: OpenSkies dumps economy, plans flights to Amsterdam
OpenSkies to fly JFK-AMS
British Airways’ new subsidiary OpenSkies just announced a new route from New York to Amsterdam, adding to their New York-Paris flights. At the same time, after only flying for a few weeks now, they’re giving up on their economy cabin, making the Boeing 757s a split between premium economy (using a version of the old BA biz class seats) and true lie-flat business class.

Downgraded: Le génie de Jerry Lewis
Jerry Lewis carried a gun in his carry-on luggage at Las Vegas’ McCarran Airport. Some confusion arose over whether the gun was a prop or not. Either way, stupid.

Upgraded: Google Maps adds walking directions
I just stumbled across this, in looking for directions within Boston: Google Maps now features walking directions, and not just driving directions. Of course, this only makes sense if you’re in a walkable city, and it’s not rolled out everywhere yet, but it’s a good start.

Downgraded: United
United is taking its pilots to court, accusing them of sick-outs and work slowdowns. I’m in no position to judge the validity of the charges, but this sort of acrimony isn’t exactly the kind of thing a person making travel plans wants to see. Flying is undependable enough, especially in summer, and no one needs another layer of uncertainty. If you had the choice between United and any other airline, and you saw that the pilots and management were swiping at each other, with “work stoppage” and “sick-out” being tossed around, how comfortable would you be booking with United?

(image)

British Airways is buying the last surviving standalone all-business class airline to cross the Atlantic. L’Avion, which flies from Newark to Paris-Orly, is being bought by BA and incorporated into their OpenSkies subisidiary.

The move comes as a bit of a surprise to me, since L’Avion and OpenSkies just started codesharing a few weeks ago. I would have expected that relationship to progress for at least few quarters before moving to full-on merger. But here we are.

The deal comes with a £54M pricetag, but about half of that covers the cash L’Avion has on hand.

British Airways plans to merge L’Avion into its new OpenSkies subsidiary, but that can only be a good thing, if recent reviews hold up.

But most importantly, the fact that L’Avion now has a major backer (with a meaningful frequent flyer program connected to a major alliance, I might add), it takes an element of risk off the table for those afraid to take the plunge with a standalone carrier. Especially after the spectacular failures of Maxjet, Eos, and Silverjet, it’s good to know that L’Avion tickets are highly likely to be backed by alternative itineraries, should a flight be cancelled or a route eliminated.

And, as we’ve seen, L’Avion’s service is a decent product in its own right. Flights in business class for $1499? Book away.

Related:
- Survival strategies of the all-business class airlines
- Inside L’Avion, part un: a good seat but a shortage of fluids and information
- Inside L’Avion, part deux: the airline that is betwixt and between
- L’Avion customer service: Meet your pilot and purser!

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.

The European-American open skies treaty was signed today. Assuming the U.S. Senate ratifies it (as expected), the deal goes into effect in March 2008.

The big news is that American airlines can fly into any European city, and vice versa. Plus, American airlines can fly passengers between countries within Europe. European airlines can’t fly domestically within the U.S., so you won’t see Air France or Lufthansa flying from Orlando to Memphis.

Overall, this deal should lead to greater competition and lower prices. That’s good!

But… the devil is in the details. As the treaty is written, there are some concerns, as Ed Hasbrouck points out:

The “Open Skies” agreement [Article 8, Section 3] requires compliance with all “recommended practices” of the International Civil Aviation Organization (ICAO). By making ICAO recommendations mandatory, the “Open Skies” agreement effectively delegates to ICAO the legislative power of the E.U. and the US. This is especially problematic because national delegations to ICAO have never included data protection, civil liberties, or human rights authorities.

Less legalese translation: An unelected international organization can dictate the aviation policy (including aviation security policy) of the US and the EU.

Governments ceding some of their sovereign authority to international organizations isn’t anything new. But considering how much importance security issues have in the American consciousness, it’s startling that our leaders were willing to hand off so much authority.

(image)

The proposed “open skies” treaty between the European Union and the United States moved a big step forward today when the EU transportation ministers voted unanimously in favor of the agreement. The treaty now goes to the US Congress.

So, if this passes (a big if), what’s in it for you? I gave an analysis earlier, in the pre-game show, so to speak, here.

Short version: More point-to-point routes and competition on trans-Atlantic routes: good! The possibility of international airline mergers: mixed, probably bad. Net effect: still good!

London Heathrow remains a big sticking point. Within seconds of the EU passing the treaty, Continental filed an application to fly to Heathrow. We’ll see if they can find room for more airlines at that already-overcrowded airport.

The other big sticking point is an American change in airline ownership rules. If the treaty passes, foreigners will be allowed to own a majority in American airlines — as long as the voting stake doesn’t exceed 25%. Expect an eventual trans-Atlantic merger.

The deal heads to Congress. I hope they pass it, and that the treaty signing ceremony on April 30 goes on as planned. If you care about this sort of thing, one way or the other, write your senators.

(image)
Related:
- Will foreign ownership of airlines mean lower prices?
- More on open skies
- Are open skies dirty skies?
- US-EU open skies treaty dead in the water, so to speak

After months of impasse, the European Union and the United States have announced a tentative agreement on their proposed so-called open-skies treaty. Details are not yet fully released, but some key points are leaked:

The agreement, announced by the Transportation Department, would allow European airlines to fly from anywhere in the EU to any point in the U.S., and vice versa. For example, it would end restrictions on the number of airlines allowed to fly between the U.S. and London’s Heathrow Airport, one of the world’s busiest. Only four carriers — United Airlines, American Airlines, British Airways and Virgin Atlantic — now serve that market.

Putting aside the scheduling nightmare of adding more flights to Heathrow, this sounds like a good step for consumers. More competition, more point-to-point flights, and quite likely lower prices. Sounds good, right? But that’s not where the story ends.

In the past, an open skies deal was stymied by parallel negotiations over airline ownership.:

Another key aspect of the deal, described by a U.S. government official who spoke on condition of anonymity, would enable European companies to own as much as 49.9% — and in some circumstances, more than 50% — of U.S. airlines, up from the current 25% limit. Yet another provision could help Richard Branson’s Virgin Group Ltd. gain regulatory approval needed to launch a U.S. subsidiary, Virgin America Inc.

Virgin America must be fuming at that phrasing — “U.S. subsidiary” — considering their arguments that they’re as American as curly fries and NASCAR. But if it keeps them in business, they may wince, but accept it.

More importantly, this is a significant shift in U.S. policy, if it’s passed. (Congress would still need to ratify such a treaty, and that’s not guaranteed.)

Changed ownership rules are a double-edged sword. In principle, I’ve argued repeatedly that specific bans against foreign ownership are misguided patriotism, and that arbitrary rules like that keep valuable foreign capital out of American aviation.

On the other hand, the proposed open-skies treaty apparently makes it possible for trans-Atlantic mega-mergers, and outright mergers are rarely pro-consumer, since they tend reduce services and raise prices.

But trans-Atlantic mergers might be different: Yes, there might be service reductions and price hikes on the international routes, but the domestic markets on either side wouldn’t be affected much.

Besides, mergers need to be reviewed by federal regulators, regardless of whether they’re between domestic players or between a foreign company and a domestic one. So there’s — at least theoretically — an escape hatch if a merger looks likely to hurt consumers.

So, while the devil is in the details, I’m hoping that this treaty works out. Am I missing something? Hit the comments.

Related:
- Will foreign ownership of airlines mean lower prices?
- More on open skies
- Are open skies dirty skies?
- US-EU open skies treaty dead in the water, so to speak