Winging It

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The U.S. Senate Commerce Committee is conducting a hearing today in Washington to look into airline industry consolidation, a topic that could have a profound effect on travelers who use Philadelphia International Aiurport. Among the issues: How would service and fares at PHL be affected were US Airways to acquire Delta, and the surviving entity "rationalizes" its route structture in a way that cuts the number of flights or airplane seats available ?

Nerws releases and the text of US Airways CEO Doug Parker's testimony at the hearing can be found at the airline's Website, usairways.com. Another view, from Delta CEO Gerald Grinstein, can be found on delta.com, (search for Newsroom on the Delta site).

One group of passengers who are mad as hell at the airline industry is using the hearing to issue a call for a passengers' Bill of Rights. These folks are angry because on Dec. 29,. they were among hundreds of American Airlines passengers stranded aboard planes that sat on the ground for as long as nine hours at the Austin (Tex.) Bergstrom International Airport. The travelers, whose flights were diverted to Austin by bad weather elsewhere, had no water, food or sanitary restroom facilities during their ordeal. And they're not happy with the airline's response to their treatment, offering little in the way of compensation, the group says.

The movement that this group of travelers could start has been brewing for awhile, with complaints about airline service growing. We will keep up with it and report further developments as they happen.

The federal government issued its Air Travel Price Index (ATPI) for the third quarter of 2006, and the results won't surprise you if you've were flying much last year. Fares shot up in the third quarter at the fastest rate for that three-month period in the 11 years the index has been around. If you like statistics, check out the details at the Department of Transportation’s Bureau of Transportation Statistics (BTS) Website, bts.gov. Analysts who keep track of the industry say the major network carriers have raised fares a dozen times since the start of 2006.

Raising ticket prices is among the management decisions airlines seldom announce widely.That was the case overnight when Delta Air Lines raised its base coach fares by $5 each way. Analyst Jamie Baker of JP Morgan Securities reported in an investors' note today that American and Alaska matched the increase, making it likely that the other "legacy carriers" -- Continental, Northwest, United and US Airways -- will do the same over the weekend.

The increase was the second one for that group of airlines this year and brings to about a dozen the number of times base fares gone up since the start of 2006. Pushing up the full coach fares also means many lower-priced tickets also rise, since they're based on a percentage discount from the highest fare. The upward cycle of fares, along with cuts in capacity (the number of flights and seats available) by many arilines last year, helped them make money, a rare occurrence for most of them since their salad days in the 1990s .

Discounts are still out there, of course, especially if you can book weeks in advance and are willing to take connecting flights on the majors. But seldom does a major carrier put all of its non-stop flights on sale at the same time -- unless it faces competition from a low-cost ariline on a route. So watch, too, what the low-cost carriers, led by AirTran and Southwest at PHL, are doing. Every few weeks, they put all or most of their advance-purchase tickets on sale..

Check out the most recent news on Delta Air Lines bankruptcy reorganization since it turned down US Ariways' dream of a merger.

Read the full story here.

Forget what we said Friday evening about a $5-one-way fare increase for the major airlines. Over the weekend, other carriers failed to match the increase that was initiated by Delta Air Lines, and it was rescinded by those that had adopted it. Industry analyst Jamie Baker of JP Morgan Securities notes that this is the second failure out of three attempts this year by the older legacy airlines to push up prices.

One of my colleagues in the business of writing about airlines, Trebor Banstetter of the Fort Worth Star-Telegram, has added more understanding of what happened to the big carriers' most recent effort at a fare increase. Here's what he found, in an article published yesterday:

Analysts say fares may have stabilized for now
TREBOR BANSTETTER
STAR-TELEGRAM STAFF WRITER

After a year of steady increases in airfares, prices may have finally peaked, at least for now, according to airline-industry analysts.
A broad $10 increase on round-trip tickets that was implemented late last week by several airlines, including Fort Worth-based American, collapsed Monday after it was rescinded by United Airlines.

It was the year's second price increase to be withdrawn after just a few days. Only one fare increase has stuck so far in 2007.

The collapses could be a sign that airline ticket prices are stabilizing.

"The relevance and likelihood of future increases is increasingly debatable," analyst Jamie Baker of JPMorgan Securities said in a note to investors Monday.

The sharp uptick in ticket prices was a key component of the airline industry's return to profitability last year. The major carriers raised fares by an average of nearly 10 percent in 2006, according to analyst Ray Neidl of Calyon Securities.

But that growth slowed considerably toward year's end. Domestic fares in December, for example, were up less than 2 percent from December 2005, according to the Air Transport Association. That was the slowest rate of growth all year.

Neidl is forecasting that fares will increase just 1 percent this year.

While it's good news for travelers, a softening of ticket prices could slow revenue growth at the major carriers, pressuring them to cut costs further.

Look on the bright side: Flight delays at PHL aren't getting worse, and in one way, they're getting better.

Philadelphia improved its ranking for on-time airline departures in 2006, moving from last place to No. 27 out of 31 large airports, the U.S. Bureau of Transportation Statistics reporrted today. . The agency said 72.2 percent of flights left Philadelphia on time last year, compared with 71.9 percent in 2005. In on-time arrivals, the airport was in 27th place in both years; 70.4 percent of flights arrived on time last year, compared with 71.8 percent in 2005.

Nationwide, airline delays last year rose to their highest level since 2000, the federal data shows. About 22.6 percent of flights arrived at least 15 minutes late, the most since record delays of 23.9 percent in 2000.

Spirit Airlines doesn't serve PHL but it does fly to Atlantic City International Airport, so some of you may find this of use. Starting Saturday, Spirit will allow a passenger one piece of free checked luggage. The second checked bag will cost $10. More than two bags costs even more, as they do on most airlines these days. Southwest is the only major carrier that allows three bags at no charge. Spirit appears to be the only one with a one-bag limit, but if there is a foreign airline with the same policy we haven't heard about, let us know.

Thanks to those of you who alerted us to at least two other airlines, both foreign, with limits on checked or carry-on bags. As noted in the comments about last week's Spirit Airlines posting, Virgin Blue, the Australian discount carrier, is one of the airlines. Of course, it doesn't serve PHL.

What British Airways is doing needs a little more space, and it does serve PHL. Starting tomorrow, BA will institute a limit of one free checked bag weighing up to 23 kilograms (about 50 pounds) on coach passengers, on both transatlantic and intra-Europe flights. Checking more than one bag will cost extra. Those in other classes of service are allowed to check more free. BA also has a carry-on limit of one bag per passenger, which is different from most domestic airlines.

When it comes to baggage rules, it should be mandatory to check an airline's Website to make sure you know what's allowed before getting to the airport. Find the latest from BA
here

Soutwest Airlines was the leader this time in raising most of its fares. Southwest prices went up $2 each way on flights of 400 miles and less, $3 each way on flights of 401 to 999 miles, and $10 each way on flights of 1,000 miles or more. Southwest put the higher fares up Friday night, and by today, the six other big airlines had largely matched the increase. The smaller carriers did not raise prices, or haven't decided yet whether to match.

This is the first fare increase of 2007 for Southwest, and its seventh since the start of last year. The other major carriers have increased ticket prices a dozen times since the start of 2006.

Frequent air travelers know this, so here's some information for the less-than-frequent. AirTran Airways became the first airline we've seen to issue a news release this afternoon about the big winter storm that's moving across the Midwest and will hit the East Coast tomorrow. As carriers always do during big weather events, AirTran will relax its rules on penalizing passengers who need to change their flights. If you're flying this week, check the Website of your airline to see what you need to do to adjust. You will find links to airlines serving PHL in the column to the right.

The snow is flying in the Philadelphia area this morning, but most flights are still operating on schedule, according to PHL's handy Website, which has real-time arrival and departure information. You can check on your flight here.

That "wintry mix" is getting heavier. Most flights to and from PHL are operating late and about 25 percent had been canceled as of mid-afternoon. Keep checking with your airline or the airport's Web site if you're flying.

No suprise: PHL is not operating normally, but it is open and crews have been working to keep runways clear. Here is what you need to know, from our story posted on philly.com.

Air travel: Philadelphia International "Through about 11 o'clock about 50 percent of arrival and departures are canceled," says Mark Pesce, spokesman for Philadelphia International Airport. "We also have numerous delays." For flight information, go to http://www.phl.org or call 1-800-745-4283 (1-800-PHL-GATE). "The airport is operational," he said. "We've had crews working since yesterday keeping our airfield open, our roadway system, our sidewalks, everything that we do here." About 300 city employees help with airport snow removal, using 50 large pieces of equipment and assorted smaller ones to the airport's 25 million square feet of concrete, he said. "The airfield alone is 16 million square feet." (During better weather, those employees do other kind of maintenance.)

The number of cancellations is down compared with yesterday, but the weaher continues to affect PHL operations. Many flights are running a half hour to two hours behind schedule.
You can check on your flight here.

A post on Monday (see One-bag airlines) had incorrect information about British Airways' policy for checked bags on transatlantic flights. The airline will allow two checked bags for coach passengers. When you check the BA Website for detailed information under "checked baggage allowances," don't be confused, as we were, by looking at the limits for "Europe and all other international routes." Keep moving down the page to "USA etc." routes. On another portion of the Website, you have to watch for the asterisk that shows the exception for US flights. We appreciate a commenter for pointing out the error. Find the rules on the BA Website here

Local broadcast coverage of the aftermath of last week's snow and ice would lead one to believe that there's a repeat going on of US Airways' infamous baggage-service meltdown during the 2004 Christmas holidays. That's not true. Then, as now, this is an easy story for TV stations to do because it's a visual about the airport they can capture on tape without going through security, or in fact doing much work at all. Here's the way we look at the "story."

When it snows, especially when mixed with ice, airports and airlines slow down. If they didn't, safety could easily be compromised. US Airways ramp workers who load bags and direct planes in and out know this: There were several broken bones and cuts requiiring stiches for workers who slipped and fell last week. Of course, flights are going to be delayed and many cancelled. Bags are going to miss connections. Some will take days to find their owners. The bag-tracing phone lines at US Airways and other airlines will be jammed, and you may be cut off. In the end, only a tiny handful of bags will be truly lost. On average more than 99 percent of all checked bags are delivered when they're supposed to be, at the end of a flight.

But is the number of bags that piled up over the weekend at PHL unusual for US Airways or any airline? The answer is no. About 700 bags were in the US Airways bag-claim area yesterday. By this morning, when the story was still being broadcast, there were betrween 300 and 400 bags still waiting to be reunited with their owners. US Airways carries about 60 percent of the 31-million-plus passengers who use the airport annually. If each passenger checks one bag, which is average, US Airways handles close to 20 million bags a year -- just at PHL.

PHL has experienced flight delays and a few cancellations today, mostly because of the big winter storm that's beaten up the Midwest and Northeast the last few days. As always, check with your airline or the airport's phl.org Website if you're planning a trip.

Elsewhere, JetBlue canceled more flights at its hub at JFK in New York. For the most recent story posted on philly.com click here

We have added a handy feature to philly.com that provides links to all of the key traffic and weather Websites in the Philadelphia region.Watch the traffic move -- or not -- or I-95, get the latest updates on highway conditions, check on mass transit or on the status of a flight to or from PHL. A link directly from this page can be found near the bottom of the right-hand column, under useful sites. Take a look here

A JetBlue Airways flight enroute from Pittsburgh to New York's Kennedy Airport made an unscheduled landing this morning at Philadelphia International Airport. The diversion was not an emergency. The 54 passengers were given a choice of getting off and finding their own way to the New York area, or riding a bus to JFK that JetBlue chartered.

JetBlue, airport and FAA officials explained what happened. The captain of the jet dverted after a cockpit instrument indicated a problem with de-icing devices, which are mounted on the leading edge (the front part) of the wings. The devices prevent ice from building up on the wings as the plane passes through cold, wet air. The air near Kennedy had the potential for an ice buildup, so the captain decided to do the prudent thing and go to PHL, the nearest major airport where conditions were better. The FAA doesn't keep track of diversions but they're not uncommon, and they usually are because of weather conditions at the scheduled destination..In fact, three United Airline flights headed to Washington Dulles were diverted to other airports today because of the weather, an FAA spokesman said.

For anyone living in a cave the last two weeks,. JetBlue was criticized after bad weather stranded passengers in planes at JFK, its main hub, for up to 10 1/2 hours after the Valentine's Day storm. The airline has been playing catchup, promising a better performance in the future.

US Airways has had success in using PHL as its main international hub, but all the routes go south or east, to the Caribbean, Latin America or Europe. Now the airline says it wants to do something completely different here: Nonstops to China. Read more about it: here

US Airways CEO Duog Parker was in Philadelphia yesterday, appearing at City Hall to formally announce, as we reported, that the airline wants PHL-to-China route authority. But the most interesting comment he made was that flights to Shanghai could also lead to US Airways flying nonstop to Tokyo, since the airline would need to buy or lease long-range jets. Read more here

If you're planning to fly US Airways from Sunday on next week, you may want to hold your breath for this: The airline this weekend switches to a single computer reservations system, integrating what have been separate US Airways and America West systems.The airline says it's been testing the new combined system for weeks, and it chose to do the switch on a weekend when the fewest number of passengers could be affected. Let's hope for the best, but US Airways warned in its weekly newsletter to employees today that "a migration from one reservations system to another, no matter how carefully planned and tested, is a complex task and may have hiccups."

US Airways warned Friday that there could be "hiccups" when it integrated the old America West and US Airways computer reservations systems into a single new one. Now it looks like it was more like loud belching and severe indigestion. An independent flight-data monitoring service, FlightStats, reported last night that just 14 percent of US Airways flights departed yesterday within 15 minutes of schedule, and two out of five flights left the gate more then 45 minutes late. US Airways said this morning that about half its flights arrived on time yesterday.
Travelers also reported difficulty accessing usairways.com but the Website appears to be working OK now. If you're traveling on US Airways, let us know about your experience. And we will update you later today.

The snow is blowing sideways around Philadelphia this morning, with one to three inches forecasted by nightfall. PHL is open but delays are running anywhere from a few minutes to two or three hours, according to the airports phl.org Website. We will update later today. In the meantime, as you languish in a lounge or airport club, please let us know how your trip is going.

PHL has the experienced the usual delays a snow day brings. The airport has closed one runway at a time to clear snow, which always slows operations, but the runways have never been completely shut down. US Airways canceled nine mainline, large-jet flights, 6 percent of its schedule, and scrubbed 63 Express flights, about 22 percent of the total. Other carriers also have canceled flights. Most flights are arriving or departing from a few minutes to several hours late.

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But that doesn't mean it was a cheery morning for quite a few travelers. More than half of departures and arrivals were 15 or more minutes late before noon today, according to the flightstats.com Website. Schedules have gotten much better since noon, with just 15 percent of departures and 10 percent of arrivals running late, flightstats says. We're getting fewer reports of long lines at US Airways today than we did the last four days. Please keep us informed as you travel..You can find flightstats.com here

As you may have read in The Inquirer or other newspapers, some Delaware County residents and many of its political leaders are opposed to a plan the FAA is studying that's designed to reduce flgiht delays in and out of PHL. The FAA is expected later this spring to choose one of four alternatives for rerouting air traffic, or leaving flight paths as they are now. Read the most recent Inquirer story on the issue,

We're reporting today from US Airways annual media day at its Tempe, AZ, headquatrters, and one of the first words out of CEO Doug Parker's mouth were: "We're not running as good an airline as we'd like or thought we would be. The key to that is fixing Philadelphia." The day promises more briefings on just what the airline's senior executives are going to do to improve its PHL operations. Parker and president Scott Kirby also were out front on the messy switchover to an integrated US Airways-America West reservations system that caused so many long lines and delayed flights last week.

A cold rain, but no snow, is falling in the Philadelphia area this morning, with a mix of snow and rain forecast for tonight. Just before 9 a.m., about 65 percent of scheduled departures and arrivals so far today were on time, according to flightstats.com. Look for more delays and cancellations to the upper Midwest and the Northeast as the winter storm moves up the coast. Several airlines are making their usual offers allowing changes to tickets without penalty to those affected by the weather.

Speaking of forecasts, the FAA has issued a long-range estimate for growth in air traffic. No surprise, the increase is going to be large. Read more here

Conditions are getting worse at PHL, with the rain mixing with sleet and ice pellets. US Airways has canceled flights and delays are running as long as three or four hours. United and Southwest have cancelled most or all of their schedules for the day, an airport spokeswoman says. Elswhere, JetBlue Airways, still smarting from its big breakdown in service last month, preemptively cancelled most of its flights from JFK and Newark airports. Keep checking with your airline if you're flying. The phl.org Website's real-time flight arrival and departure service is working only intermittently.

It's been another bad day at PHL for airlines and their passengers trying to recover from the surprisingly nasty winter storm. This morning's Inquirer news story about what happened yesterday can still be found on philly.com. We said in the story there were no "immediate" reports of long strandings on airplanes. Now there are. See the comment from Kevin sent last night but just posted. We will continue reporting on how the airlines and the airport handled the situation.

After last weekend's problems with weather and US Airways computer problems at PHL, you may not want to take another flight for awhile. But why not dream a little, and think about what it would be like to ride on a 600-passenger jet. Check out today's print and online story about the first U.S. flight of the Airbus 380 jet here

Many of you have posted comments here, sent us e-mail or called regarding the last four days at PHL and US Airways performance. At about 2 p.m. today, there were still about 1,000 misplaced bags (we counted) in US Airways B-C bag-claim area. There are scattered reports of piles of bags in other airports also, waiting to be reunited with their owners. We spoke yesterday to a local leader of the customer-service agents' union, for a print and online story. Read what she says the problem is. here.

One way business journalists learn what airlines are doing is listening to Webcasts of their presentations to industry analysts. You can listen to one of these by US Airways earlier today by clicking here. It may take a few hours for the sponsor, JP Morgan, to get the US Airways presentation up on the site.

These kind of presentations to investment companies are archived on the "investor relations" portion of the US Airways Website, allowing you to listen at your convenience. Other major airlines also are presenting at the JP Morgan conference, and you can usually find their executives' remarks in the same way, by going to the investor relations portions of their Websites.

PHL gest a bad rap whenever the weather disrupts normal operations, and many of you believe it deserves it. No doubt, the grounding of all flights during last Friday's sleet caused as much pain and suffering to travelers as any storm has recently. The local media was out in force to report on how passengers were affected. Sleeping in an airport is no fun -- there's no way to minimize how grim that can be.

But most of what happened to travelers was beyond the airport's control. The airlines were required by the FAA to stop flying while ice was falling -- they had no choice about cancellatioins.The response of US Airways was another matter that has been written and talked about and some of you have vented about it (Please, keep it up.) .The airline has a new computer system that employees say doesn't work properly and that only made the dismal experience of waiting to rebook even worse. But the airport staff didn't take the weekend off. Many employees made a serious effort to do what they could to help. If you want to know more about how the airport's managers view the way they responded, read a news release the airport issued this afternoon here

International aviation agreements aren't a topic most travelers think much about. Indeed, reading them can put you to sleep. But they affect what we pay for overseas airline service and our choices of airlines. The U.S. and EU governments are moving steadily toward what the Europeans call "liberalization" (liberalisation in European English) of the transatlantic market, with the promise of greater competitition bringing lower fares. Read the most recent action taken by the EU here

Read today's update on plans to redesign the airspace in the Northeast to try to reduce flight delays here.

In the early 1990s, the U.S. Department of Transportation identified a phenomenon it called "the Southwest effect," to show what happens when the airline starts service in a new city: fares drop and traffic goes up. Today, there's no better example of the effect than traffic at Philadelphia International. Read details in our report on PHL traffic in 2006 here

Delta Air Lines plans to be out of Chapter 11 by April 30. For the full story click here.