Flight Blog

Feb 22 2011 Fares on the March, Redux! BY sgf-adminTAGS Fares

 

wingsdollars1Most airlines tried raising fares last week, but they didn't stick because US Airways wouldn't play ball. This week, "American, United, Continental and US Airways raised prices Monday by $20 to $60 per round trip on some tickets favored by business travelers." That's according to the Associated Press. Oil prices are the culprit, not to mention the fear of energy prices going substantially higher due to the unrest in Egypt and Libya. Get the deep background from Flightglobal.


Feb 15 2011 American Eagle Spin Off? BY sgf-adminTAGS American

 

AMR Corporation, which is the parent company of American Airlines and American Eagle Airlines, may be close to divesting American Eagle. That's according to Bloomberg News, quoting a pilot's union official.

Any news about Eagle catches our attention because it provides us with service to Chicago and Dallas/Ft. Worth. AMR has talked about selling Eagle for several years due to the high cost of running the commuter airline.

Bloomberg reports, "Unloading Eagle would let Fort Worth, Texas-based American seek cheaper ways to fly regional routes. A spinoff, public offering, leveraged buyout and sale to a private-equity buyer were among the possibilities under review..."

 


Feb 14 2011 Flirting Whilst Flying? BY sgf-adminTAGS Misc.

 

"45% of passengers admit to flirting whilst flying, whilst 95% want to join the mile high club..."

The Queen's English makes this piece from skyscanner.com all the more amusing. Read the rest of the story here.


Feb 10 2011 Fares on the March! BY sgf-adminTAGS Fares

 

wingsdollars1There have been so many fare hikes lately that we've stopped mentioning them. This one really gets your attention though...

 

 "United and Continental airlines are raising fares on U.S. business travelers by $20 to $60 for a round-trip ticket." Read the rest of the story from the Houston Chronicle.


Feb 08 2011 Joplin Essential Air Service BY sgf-adminTAGS Fares

 

We received this email from Chad:

"I just stumbled across an article stating that American Airlines will now offer daily flights to DFW from Joplin.  I travel weekly for business and just booked 3 flights departing SGF yesterday.  My trip to Portland on American totaled about $900 after taxes and fees, however, I checked the same flight dates from Joplin and the fare totaled about $350.  How does the airport plan to compete with this new Joplin service?"

The American service out of Joplin is new (starts this week) and it’s Essential Air Service (EAS). EAS is a federal program that pays airlines to fly into markets that otherwise would not have air service. In other words, the service is subsidized by the federal government—it gives American a revenue guarantee. That’s one reason the fares out of Joplin are lower than Springfield.

Also…It’s our understanding that the previous EAS airline in Joplin did a good job of running off customers. American finds itself in the position of having to rebuild the service from the ground up. We suspect American’s low inaugural fares are part of its attempt to rebuild. Bottom line: we expect the fares to go up after a financial quarter or two.

EAS is something of a political hot potato these days. This week Senator John McCain proposed a bill that would eliminate the program. Here's part of what the Juneau Empire reports:

"Although this program is called the Essential Air Service, in my view it’s far from essential,” he said. He said the program’s expendability stems from that most Americans live within 120 miles to major hub airports and so bypass EAS flights. He said the program originated because airline deregulations inspired Congress to subsidize carriers to service small communities “at a loss because otherwise no sane business would serve a market at a loss."

By the way, our airport does not qualify for EAS funding — we're too big and the airlines can make money here without subsidies.