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United Airlines
United and Continental merged in 2010, but until this Saturday, passengers almost could have missed it. The big change occurs early Saturday when United combines passenger reservation data from both airlines into one massive computer system. That means one frequent-flier program and one website. Tickets will be issued under United’s name only.
The switch is a huge undertaking that has its risks. Any hiccups could mean delays throughout the airline’s system. That’s why United conducted four dress rehearsals with executives staying overnight at headquarters to make sure things went well.
Here are the changes:
CONTINENTAL’S LAST FLIGHT
Continental flight 1267 is scheduled to depart from Phoenix at 11:59 p.m. PST on Friday. It’s set to arrive in Cleveland as United 1267 Saturday morning.
The airline will stop using Continental’s “CO” code. That means no more Continental Airlines tickets, or flights — even though the Continental name is still painted on some planes.
AT THE AIRPORT
The names of both airlines have been on signs at gates at its 10 hubs. By Saturday, it’s aiming to take down the “Continental” signs at all 372 airports it serves.
Until now, each airline issued its own tickets, and passengers had to use separate ticket counters. Now, it will no longer matter which ticket counter travelers go to. Gate agents should be able to book travelers on flights across the combined airline, which will be a big improvement any time a blizzard or thunderstorm snarls travel.
The change will also mean that airline workers can send planes from either airline to any of their gates. Previously, gate computers had been connected to separate reservation systems and they couldn’t handle planes from the other airline.
FREQUENT FLIERS
The systems are combining under the name of United’s MileagePlus frequent-flier program. Travelers who have accounts at both airlines will essentially be credited for their Continental OnePass miles in their combined MileagePlus account. But their MileagePlus account numbers will be those from OnePass.
As for passwords, PIN numbers and addresses — some of those will transfer and some won’t. United has emailed frequent fliers about the details.
WEBSITE
United.com becomes the website for the combined airline. But its look and feel is the old Continental.com. Passengers will be able to use it to check in, regardless of which airline issued their ticket.
The websites are set to go dark at 2 a.m. EST Saturday. United is aiming to have the switch done in time for travelers to check in for 6 a.m. EST flights. The airline says travelers who check in on the old United.com for Saturday flights should see their check-in transfer over to the new system.
WHAT CAN GO WRONG
Plenty. There’s a reason United held those dress rehearsals. Five years ago, US Airways Group’s reservations system merger with America West went haywire. Hundreds of check-in kiosks didn’t work, forcing passengers to use ticket counters. The snafu delayed flights around the US Airways system for days.
Virgin America’s switch to a new reservation system in October caused problems that lingered for months.
“This transition is extremely complex and there is a strong likelihood for significant flight delays and cancellations,” the head of the Air Line Pilots Association’s United unit in San Francisco warned pilots in an email.
Jay Pierce, the head of the ALPA unit at Continental, said in an interview that the airline “actually has done a fairly decent job of advising all the employees that there’s a potential for disruptions and possible problems.” The company has asked employees not to use their discounted travel benefit over the weekend, to help keep volume low, he said.
The airline moves an average of 264,000 passengers per day. It picked a Saturday for the switch because traffic is as much as 15 percent lighter than on weekdays. It further reduced the number of United flights because those are the flights that are switching to Continental computers.
“We have tested an incredible amount of scenarios across the enterprise and I feel very, very comfortable we will be able to service customers better starting this weekend,” said Martin Hand, United’s senior vice president for passenger experience.
BEHIND THE SCENES
United must still schedule flight crews from each airline separately because it doesn’t yet have union contracts to cover the combined groups. US Airways has been operating that way since its 2005 America West merger.
Pilots from both United and Continental have already been using the “United” radio handle with air traffic controllers, and flight attendants have been announcing flights onboard as United flights, even if passengers walked past a “Continental” sign to get on the plane.
The parent company’s name, United Continental Holdings Inc., stays the same.
source: http://www.washingtonpost.com/national/this-weekend-united-airlines-makes-changes-that-mean-most-of-continental-fades-away/2012/03/01/gIQAOh7UlR_story.html
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Dubai Gulf airlines such as Air Arabia and flydubai do not intend to increase ticket prices in the wake of rising oil prices even though Emirates said it would add a fuel surcharge as high as Dh610 on all tickets starting Thursday.
The rising price of oil, which touched a 10-month high of $125 (Dh459.14) a barrel during the week, have traditionally compelled carriers to increase ticket prices in order to offset the impact.
And as per the International Air Transport Association fuel monitor, the global airline industry will have fuel bills of over $32 billion in 2012, with the fuel price averaging $129.70 per barrel.
The global aviation body’s latest jet fuel price monitor also reveals that the cost of fuel globally rose to $134 approximately for the week ending February 10 against $130.59 the week before.
Surcharges to vary
“Due to the current volatility of oil prices, Emirates is introducing a fuel surcharge for all tickets issued on or after March 1, 2012, to reflect the substantial recent increases in our fuel costs,” an Emirates spokesperson told Gulf News in a statement, adding that the increase will differ by markets and routes.
Asked if flydubai was planning to add a fuel surcharge, an airline spokesperson told Gulf News: “We are not immune to price fluctuations but do take every step we can to keep our fares as low as possible to encourage more people to fly to more places more often,” adding that the budget carrier constantly monitors its fares.
“And these can go up or down depending on many external factors, including the price of fuel, currency fluctuations or market forces. Fuel is the single biggest cost for airlines,” the budget carrier’s spokesperson said.
Similarly, Air Arabia, which has 25 per cent of its fuels costs hedged for 2012, has no immediate plans to increase fares.
“As of today, we have no plans to introduce such a surcharge. But, we will continue to monitor the fuel price movement closely. And if it continues to escalate, then the whole air transport industry will add the surcharge,” Air Arabia CEO Adel Ali told Gulf News earlier this week.
“The fuel price has been very unstable. One has to wait and watch for it to somewhat stabilise in order to make those judgments.
“Naturally, if it continues to rise, then airlines will have no choice but to put a special fuel surcharge in,” he added.
Emirates, meanwhile, said that while the fuel surcharge would go up to as much as Dh610 for first and business class on routes from the UAE to the Americas, the economy class increase will be Dh170 on the route.
“All surcharges are one-way,” a spokesperson said.
Listing other increases, Emirates said the fuel surcharge on routes from Dubai to Africa, Europe, the Far East and Australasia is Dh120 in economy class and Dh500 in first and business classes.
On the routes from the UAE to the GCC, Middle East and Asian subcontinent, the increase will be Dh60 in economy class and Dh390 on first and business class tickets.
Levy will be reviewed
“Emirates has already incurred substantial costs by absorbing the recent price rises, but the surcharge gives us the ability to respond faster to market conditions, rather than a lengthier process of incorporating them into fares,” the Emirates spokesperson said, adding that the changes will also give the airline the ability to “decrease prices quickly, where appropriate”.
An Etihad spokesman, said: “Etihad Airways constantly monitors the cost of jet fuel and reviews ticket prices accordingly. Sustained high jet fuel prices will inevitably impact ticket prices, although sound hedging policies ensure Etihad Airways passengers are buffered from sudden oil market fluctuations.
“We will review the level of the surcharge on an ongoing basis.”
Qatar Airways, meanwhile, did not respond to the questions sent by Gulf News.
Carriers will follow suit
Market experts, however, see other carriers following suit. As Saj Ahmad, chief analyst at Strategic-Aero Research, said: “Oil costs have hurt many carriers and with Emirates increasing fuel surcharges, some of which will no doubt cover the costs for the EU’s ETS (emissions trading scheme) as well, it is likely that Qatar Airways and Etihad Airways will follow suit if oil price rises continue. They can’t afford their costs to rise and miss out on increasing revenue through additional fees.”
Peter Morris, chief economist at UK-based aviation consultancy Ascend, said it is “an intelligent marketing ploy” for the low-cost carriers, Qatar Airways and Etihad to do the same thing, “that is to announce they will not charge a fuel surcharge, but just align their fares with the Emirates equivalent fares, including a surcharge.”
Andrew Charlton, managing director of Aviation Advocacy, said: “The fare is ultimately a question of what the market will accept.
“There is a disconnect between the fare charged and the cost of production. How the airlines choose to present that fare amount is up to them.”
Dubai Emirates has yet to start charging Europe-bound passengers additional carbon tax costs, even as Etihad Airways’ surcharge of $3 (Dh11.02) per person for flights into and out of Europe comes into effect today.
The move is aimed at offsetting the costs being imposed on the Abu Dhabi carrier (as well as those globally) by the European Union (EU) Emissions Trading Scheme (ETS).
Emirates, however, has not introduced this charge yet. “The charges have not started and we don’t have a time period yet either,” an Emirates spokesperson told Gulf News yesterday in a statement, adding that the additional costs of the EU ETS programme will almost certainly have to be passed on to customers.
“But how this will be done has not yet been determined,” the spokesperson said. Emirates estimates that the ETS will cost the airline over €40 million (Dh196.22 million) in 2012 and well over half-a-billion euros in the nine-year period to 2020.
According to analyst Saj Ahmad, Emirates will likely account for the ETS fees “through this new fuel surcharge”. “The last thing it will want to do is to sting passengers with another fee and drive business away,” he said, adding that about 85 per cent of Emirates ETS credits is already covered by EU permits. “So, there’s no real need to implement a secondary fee as Etihad Airways has done,” he added.
“ETS is a significant cost. Coupled with a fluctuating carbon market, Emirates seeks to manage these cost increases in our total pricing as competitively as possible, but we have no fixed per ticket amount,” the airline’s spokesperson said.
Source: http://gulfnews.com
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Olympics 'will hit demand for business flights'
The owner of British Airways – the official airline of the Olympics – has warned that the Games will “dampen” demand for its flights, particularly in the lucrative business market.
Willie Walsh, chief executive of International Airlines Group (IAG), which owns BA and Spain’s Iberia, said: “Airlines that have hosted the Olympics previously say it disrupts the normal flow of business. Business travellers tend to reschedule to avoid the Olympics. While the Olympics will be positive for the long-term position of London as a global destination, at best it will be neutral for us in the short term.”
Mr Walsh also warned of fares hikes this year, saying it was “deeply regrettable but there’s nothing we can do” due to higher fuel costs.
That is despite IAG’s operating profit more than doubling in 2011 to €485m (£409m) as business travellers returned in droves.
IAG, created by a merger between BA and Iberia in 2010, saw a 15 per cent increase in business travellers last year, particularly between the US and UK, and overall revenues rose by more than 10 per cent to €16.3bn. It shaved nearly 6 per cent off its non-fuel costs last year, but the high oil price meant IAG’s fuel bill rose by nearly 30 per cent to €5.1bn over the 12 months.
“We’re facing a €1.2 bn increase in our fuel bill this year and we can’t bear that cost ourselves,” Mr Walsh said.
Air passenger duty (APD) is also due to rise in April. BA paid £500m in APD last year and claimed that it was undermining British aviation’s competitiveness.
IAG said higher fuel costs plus weaker demand in Europe will leave results for 2012 lower in this first half compared to last.
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Boeing 747-8 Intercontinental is the longest jet in the world. The first passenger version of the jet has been delivered to an unnamed VIP customer. Photo: Reuters
Boeing has handed over the first passenger version of its upgraded 747 to a secret VIP customer, who sent the plane along to a modification center to transform it into the “jewel of the sky.”
The delivery of the 747-8 Intercontinental – Boeing’s largest and most recognizable commercial airplane – caps a development delay of more than a year.
Boeing, the world’s second-largest plane-maker marked the milestone with an understated ceremony, keeping the media at arm’s length to safeguard the identity of its customer.
“The 747 is the most iconic airplane in the world, and I know customers are going to love what we’ve done to enhance its performance,” Jim Albaugh, president and chief executive of Boeing Commercial Airplanes, said in a statement.
“The Intercontinental is fast, efficient and quiet, offering real savings and a great flying experience,” he said.
Boeing, which competes for orders with rival Airbus , has taken 36 orders – nine from non-airlinecustomers – for the aircraft, which lists at $US332.9 million ($A309 million). The plane is more than 12 months behind its initial delivery schedule and some experts say the order book is puny.
The Intercontinental is an elongated, upgraded version of the classic 747, which first flew more than 40 years ago. The 747 was the world’s largest plane until 2005, when Airbus unveiled its A380.
“The 747-8 has been slow to take off, and the success of the aircraft is still questionable given so few orders,” said Alex Hamilton, an aerospace analyst and managing director at EarlyBirdCapital.
Boeing had delayed the delivery to 2012 from the fourth quarter of 2011. The company blamed delays in flight testing and the time required to incorporate flight-test driven changes.
Boeing does not identify VIP customers, but past buyers of customized planes have been multimillionaires and heads of state.
The first airline set to receive the plane is Germany’s Deutsche Lufthansa, which has ordered 20. Boeing has not set a delivery date for Lufthansa’s first Intercontinental.
EXTENSIVE MODIFICATIONS
VIP customers for planes as large as the 747 often request extensive modifications such as bedrooms or bathrooms to accommodate the special needs of the primary passengers and their entourages. These modifications typically are done outside of Boeing, but the company must sign off on the changes.
Boeing Business Jets president Steve Taylor, who was set to fly the airplane from Paine Field near Seattle, said it will spend about six months at Boeing’s Wichita facility - the plant that modified Air Force One - for basic modifications.
From there it goes to a facility in Hamburg where it will spend two years receiving customer-specific outfitting like bedrooms, dining rooms and galleys, he said.
Taylor said the unnamed customer wants the new Intercontinental to be the “jewel of the sky.”
The Intercontinental incorporates some of the technology of the lightweight, carbon-composite787 Dreamliner. It can seat 467 passengers, 51 more than the current version of the 747, but fewer than the competing 525-seat A380.
By some estimates, the new 747-8 is 8 to 10 tonnes overweight. Elizabeth Lund, 747 program manager, acknowledged the plane is heavier than originally planned. But she said a redesigned wing makes up for the weight in terms of performance.
Additional weight can reduce the distance a plane can fly or the amount of cargo it can carry.
The freighter version of the 747-8 was first delivered in October. Orders for the freighter have been strained by an economic downturn that has dampened cargo markets.
Boeing made first delivery of its 787 Dreamliner last year after three years of delays. The 787 represents a bigger leap in technology than the 747-8.
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