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The Last Low-Cost, All-Biz Class NYC-London Airline Closes

It was only a month ago that I posted a blog item (April 28, 2008) on the only remaining, low-fare carrier, Silverjet, to serve the NYC-London market.  Its competition, MaxJet and eos, had closed, leaving Silverjet as the only all-business-class carrier offering consistently low fares between Newark and London's Luton airports.

Only a few days ago, Silverjet said that while it was experiencing cash flow problems, a major investor was poised to cough up sufficient capital to keep the airline flying.  That clearly didn't work out.  The airline shut down operations today.

With all three low-cost airlines out of business, major carriers such as British Airways, American, United and Virgin Atlantic have more flexibility in pricing their front-of-the-plane offerings, so count on prices going up.  For the moment, L'Avion is the only trans-Atlantic, all-biz-class airline around, flying between Newark and Paris' close-in airport, Orly. 

How To Save 54 Cents a Gallon on Gas (From the Sierra Club)

Maybe you haven't heard, but airlines are telling their captains to slow down planes.  Why? To save fuel.

And according to the Sierra Club, that can be good advice for those of us who drive cars, too.  For every 10 mph we drive above 60 mph, we're paying 54 cents more per gallon for gas.  That startling figure is predicated on the price of gas at $3.25 a gallon, which seems like a dim memory to most of us now.

And if you're driving an SUV or another gas gulper, the price of going faster is even greater. 

The Sierra Club attributes its numbers to the Union of Concerned Scientists, who says that dropping your highway speed from 70 mph to 60 mph improves fuel efficiency by an average of 17.2 per cent.  Dropping from 75 to 55 jacks that percentage up to a whopping 30.6 per cent. 

While 55 is no longer the national speed limit, the upward spiral in the price of gas is making that number look darn attractive.

American Airlines To Charge $15 To Check A Bag; $25 For Second

American Airlines upped the ante in ala carte pricing today when it announced that in the case of domestic tickets purchased on or after June 15th, it’ll cost $15 to check a bag for a domestic flight.  The airline already charges $25 for a second bag.

Is this a sign of things to come?

Let me state this clearly: This is just the beginning.  Expect other airlines to follow suit, just as they fell in line with the $25-for-a-second-bag rule not so long ago. 

As the other George Bush used to like to say, “It’s just this simple.”  Every major airline in the country except Southwest is expected to lose money in 2008.  This, after several emerged from bankruptcy with high hopes and lower labor costs. The culprit, of course, is the cost of fuel.  Delta and United's post-bankruptcy plan had a worst-case scenario of crude oil selling for $60 to $80 a barrel. Today, of course, that benchmark hit $130 a barrel. 

The only reason Southwest still knows what black ink looks like is that it’s had the cash to hedge fuel prices of years now, so it’s paying way-below-market value on most of its fuel.

Here’s the other truism: Airfare prices are going to rise this year month after month, if not week after week.  They simply must.  So if you know where you want to spend Thanksgiving . . . if you have a kid going far away to college later this summer . . . if you know when and where you’re going to want to fly for the December holidays, lock in a fare and reservation right now. Waiting will cost you perhaps hundreds of dollars, especially if there will be more than one of you flying.

Now, some American passengers will be exempt from this baggage charge.  Those flying on full-fare tickets, in business or first class, or gold, platinum and executive platinum members of American’s frequent flyer program won’t have to pay any luggage surcharge. 

The rest of us will have to go to our pockets.  American isn’t the first to do this—UK’s Ryanair begain charging for luggage way back in 2006.  But now let’s count the hours or days until American’s competitors file suit as airlines look for new revenue streams—beyond selling snack boxes, charging for curbside luggage check ins, and selling preferable seats 24 hours before a flight—to stay in business.

And let’s see how many of us get a lot better at packing carry-on bags.

United Cuts Miles It Will Grant Frequent Flyers On Short Flights

Beginning July 1, passengers who are members of United Airlines’ frequent flyer program will earn actual miles on flights of less than 500 miles. Until then, the current (and traditional) policy of awarding a minimum of 500 miles on ALL flights will apply. The airline’s announcement on the subject said the change was to “align [award travel] with actual miles flown.” Translation: "We’re saving on the number of miles we’re granting you guys flying short hops."

 

Virgin Seeks To Add Chicago's O'Hare To Its Portfolio

Virgin America hopes to add an eighth city to its network by beginning service later this year between San Francisco and Los Angeles to and from Chicago. If the airline’s request is approved to serve O’Hare, it will compete against United and American that both have non-stop flights linking the two West Coast cities with Chicago.

The discount carrier currently serves New York, Washington, San Diego, Seattle, and Las Vegas as well as San Francisco and LA.  Virgin America hopes to grab a share of the market by offering lower fares, but I expect both United and American will immediately drop some of its prices to match Virgin and perhaps offer bonus frequent flyer miles, as well.

Chicago’s O’Hare is under a federal cap limiting service to the airport because it’s so busy. So Virgin will need government permission to add flights. Currently, United and American dominate service to and from O’Hare.

Big, Tough, Cold, and Wonderful Alaska on History Channel

My buddy Geo Beach says everything is bigger, colder and tougher in Alaska, and yesterday he proved it, making his television debut as host of the first of 13, one-hour shows on History, the cable channel that used to be "The History Channel."  The series is called "Tougher In Alaska."

I've known Geo since he contributed regularly to the weekend public radio show I co-founded and hosted for four years, "The Savvy Traveler."  Geo's stories and commentaries always featured his trademark energy and love of word play.  He's lived in Alaska for more than 25 years, and he's worked some tough jobs, including laboring as a commercial fisherman, logger, fireman, and medic.  At six-feet, three-inches tall and tipping the Toledos at 225 pounds, he's a formidable presence in person and on camera.  And he needs his powerful voice to rise above the sounds of the jackhammer he wielded in his premier show on the hardy gold prospectors of Alaska.

Upcoming episodes take a look at the dangerous and back-breaking work of salmon fishing, electric linemen, railroad workers, and salvage experts, among other professions.  Catch "Tougher In Alaska" on History Thursday nights at 10 p.m. Eastern.