Aspen’s airlines in financial upheaval
April 28, 2008 at 6:20 pm | In Uncategorized | Leave a CommentTags: Aspen, Frontier airlines, Stay Aspen Snowmass, United Airlines
ASPEN — All three airlines that fly into Aspen are facing dire financial troubles, and it’s anyone’s guess if the local aviation market will crash and burn.
But even with Frontier Airlines’ recent Chapter 11 bankruptcy filing, Delta’s first-quarter loss of $247 million and United Airlines’ $537-million first-quarter loss, industry observers are optimistic that Aspen will remain a strong destination for the airline carriers.
And as long as fuel costs continue to rise and a national recession lingers, the aviation industry will remain in turbulence.
“It’s airline carnage. … All three of these airlines are in trouble, and we are in for a period of turmoil,” said Bill Tomcich, president and CEO of Stay Aspen Snowmass and the local liaison to the airline industry. “But Aspen is in one of the most enviable positions.”
The driving force is that there is more competition in the Aspen market than there has been for more than a decade. With Frontier’s inaugural flight scheduled for Saturday morning and then offering up to five daily flights to Denver, travelers have options that should keep fares competitive.
But airline tickets in and out of Aspen are still more expensive than most places in the country, which is a blessing in disguise, according to Mike Boyd, an aviation consultant in Evergreen, Colo.
United Airlines parent UAL Corp. said Tuesday that it’s cutting flights and 1,100 jobs to combat soaring fuel costs and recoup its losses. But it’s unlikely that flights will be cut in and out of Aspen.
Business here appears to be extremely lucrative for the short-haul carriers who likely will depend on this market as a steady revenue stream.
“It won’t be Aspen … your fares are too high,” Boyd said, adding that prices can’t get much higher here. “Markets like Aspen can only help the situation. You’re kind of bulletproof from this.
“Believe me, you’re in the minority.”
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Frontier trims new service before flying
April 25, 2008 at 5:36 pm | In Uncategorized | Leave a CommentTags: Frontier airlines
Canceled service to Montana won’t affect Aspen market, officials say
Citing economic problems, Frontier Airlines announced Wednesday that it has canceled service to Missoula, Mont., which was one of eight new cities that the company planned to fly into starting next month.
Aspen is one of those new destinations. Frontier Airlines will make its inaugural flight into Sardy Field on Saturday morning. Frontier will operate three daily flights from Aspen to Denver until May 15. After that it will be five daily flights.
Frontier’s decision to bail on the Missoula market won’t affect service into Aspen, airline industry officials say.
“I did get a phone call [from Frontier] reassuring us that Aspen is not going to be canceled,” said Bill Tomcich, president and CEO of Stay Aspen Snowmass and the local liaison to the airline industry.
Frontier filed for Chapter 11 bankruptcy on April 10. That type of protection allows the airline to conduct business as usual while it goes through reorganization.
Officials from Frontier Airlines Holdings, Inc. said Wednesday that the airline had reached a mutual agreement with Republic Airways to terminate their code sharing agreement. There will be a structured reduction and gradual phase-out of Republic’s 12 aircraft from Frontier’s daily operation to be completed by mid-June.
“We appreciate the great job Republic has done in helping us serve our customers,” said Frontier President and CEO Sean Menke. “Republic, while operating under the Frontier brand, provided a safe, efficient and customer-friendly product that is hallmark to our company. Unfortunately with current economic conditions and other business changes, we have been forced to drastically rethink the use of regional aircraft in our fleet mix.”
Frontier also canceled service to Sioux City, Iowa; Jacksonville, Fla.; Little Rock, Ark.; Memphis, Tenn. and Tulsa, Okla.
Those cities, including Missoula, were served by Republic Airways’ aircraft that were operated by Frontier.
“We have enjoyed our partnership with Frontier and have a lot of respect for their people,” said Republic CEO Bryan Bedford. “It’s unfortunate that despite their many efforts to reorganize their business outside of Chapter 11, factors beyond their control conspired to force a deeper reorganization. We wish them success in their continuing efforts to combat persistently high oil prices.”
Joe Hodas, a spokesman for Frontier, said the airline is proceeding with plans to start service to Aspen on its subsidiary, Lynx Aviation, on April 26.
Lynx announced its expansion plans in February. In addition to Aspen, the new cities Lynx will fly into include Colorado Springs, Grand Junction and Durango, as well as Jackson, Wyo., Fargo, N.D. and Bozeman, Mont.
While it might seem odd that a struggling airline is adding service, Lynx Aviation President Tom Nunn told The Times earlier this month that the Aspen route and other new cities selected for expanded Lynx service are “critical” to helping Frontier weather tough times.
Jet fuel prices have soared 60 percent in the last year, Nunn said. Three small air carriers went out of business earlier this month and even the largest airlines are dipping into cash reserves to cover the increased costs.
A key to its strategy is serving Aspen with its new fleet of 10 Bombardier Q400 turboprop aircraft. The Q400, dubbed the “green machine,” is about 35 percent more fuel efficient than a similarly sized regional jet.
“Their decision to end their agreements with Republic (70-passenger EMB-170s) and focus on their more cost efficient 74-passenger Q-400s makes perfect sense to me as a strategy now that they have this incredibly efficient machine,” Tomcich said.
The high fuel prices will continue to cause upheaval in the airline industry, determining what markets will continue to be served and where cuts will be made.
The new regional markets announced in February are shorter-haul markets, better suited to leveraging the economics of the Q400, airline officials say.
Frontier is the second largest carrier in Denver, behind United Airlines. It flies to 60 cities in the U.S., as well as destinations in Mexico and Canada. It serves about 12 million passengers annually.
For more information on flying with Frontier, click here
The Fly Guy on the Delta / Northwest Merger
April 24, 2008 at 7:54 pm | In Uncategorized | Leave a CommentAfter months of rumors and speculation, Delta and Northwest formally announced merger plans that would create America’s Premier Global Airline. Pasted below are links to a new website, more than half a dozen related press releases, a media presentation, and a page dedicated to the expected benefits to the state of Colorado.
While I have always held the opinion that a Delta / Northwest merger would be good for our resort as well as our entire region, it wasn’t until reading through the attached documents of this very well thought-out merger plan this morning that I had come to appreciate the kinds of opportunities we could realize if this merger goes through. As a destination that relies on a very large and growing percentage of its winter visitors coming from overseas, I can see nothing but good coming from the creation of America’s strongest global airline from two existing airline partners who are already very familiar with the Aspen/Snowmass market and with whom we have close and long-standing relationships.
What will be key to helping this merger go through is strong initial public support. I encourage you to familiarize yourself with the public benefits of a DL/NW merger and for you to join me in voicing support of this plan. Attached below also is a call-to-action of how we can help, including links to a form letter that is encouraged to be sent to our elected officials, including Representative John Salazar, and Senators Ken Salazar and Wayne Allard if you are so inclined.
On behalf of all our friends at both Delta Air Lines and Northwest Airlines, I thank you very much in advance for your support of what I believe represents a very exciting opportunity for all.
http://www.newglobalairline.com/
http://www.newglobalairline.com/news/
http://www.newglobalairline.com/news/presentation/
http://www.newglobalairline.com/states/colorado/
http://newglobalairline.com/help/
US Airways to charge for window, aisle seats
April 22, 2008 at 4:05 pm | In Uncategorized | Leave a CommentTags: US Airways
US Airways to charge for window, aisle seats
Desperately seeking more revenue to pay for pricier fuel, US Airways said yesterday that it would impose a fee of $5 to $30 on coach passengers who want an aisle or window seat at the front of a plane.
Calling its program “Choice Seats,” the airline said that starting May 7, customers could reserve the seats up to 24 hours in advance if they checked in and got a boarding pass at its Web site, www.usairways.com, at least 90 minutes before a scheduled departure. Customers checking in at an airport also may be able to reserve a seat for the fee if one is available.
Air travelers irked by the fee – part of what airlines call “a la carte pricing” to capture more revenue – might get relief from another development announced yesterday. The U.S. Department of Transportation ordered airlines to double the compensation they must pay passengers – up to $800 – for bumping them from a flight. Airlines said the rule might result in less service to smaller cities.
The intrusions into passengers’ pockets are part of a trend in the industry. Airlines steadily have added fees for services that used to be included in the price of a ticket. It started with charging for meals and snacks, and now extends, on some airlines, to pillows and blankets. US Airways recently said it would charge $25 for a second piece of checked baggage, a fee that most other major carriers have matched.
The seat fee is not new. Several other U.S. carriers, including Northwest Airlines Corp., Allegiant Air and Spirit Airlines Inc., have adopted similar policies that let customers pay extra to sit in certain seats.
Still, word of US Airways’ move animated some Internet discussion boards, with reactions varying from scorn to resignation or grudging acknowledgment of rising costs.
Click here to read more about US Airways.
Frontier rolls out new ad campaign
April 22, 2008 at 3:58 pm | In Uncategorized | Leave a CommentTags: Frontier airlines
Can the singing mascots help turn a troubled airline around?
by Colin Campbel, News2
April 18, 2008
DENVER (KWGN) — Frontier Airlines is hoping cute, fuzzy animals singing a sixties pop tune will help turn their company around.
The singing mascots are just one of a few new ads that Frontier is releasing, and the marketing team is excited about them. The newly released ad uses the catchy tune taken from the sixties hit, “The Wanderer.” It features the Frontier mascots singing all the destinations that they travel to and where Frontier passengers can fly.
Click here for more or watch the new ad
Visit www.stayaspensnowmass.com for more frontier deals.
2nd bag to cost $25 to check on Continental
April 8, 2008 at 2:42 pm | In Uncategorized | Leave a CommentTags: continental, Luggage
Angela Townsend and Sarena McRae
Plain Dealer Reporter
Continental Airlines will start charging most of its economy passengers $25 to check a second bag, the airline announced Friday.
The policy applies for tickets purchased beginning today for destinations within the United States, Puerto Rico, the U.S. Virgin Islands and Canada for travel starting May 5.
However, first-class and business-class ticket holders and elite frequent-flier members will still check bags for free.
Janice DiMichele of Cleveland said the new charge won’t stop her from flying.
“I don’t want to pay it, but I know it’s coming,” said DiMichele, who was flying to New York City on Friday with her two children.
DiMichele said she isn’t looking forward to the increased clutter of carry-on luggage.
“It’s going to be chaos on the plane,” she said.
The fees will help defray rising fuel costs, but airline officials would not say how much savings they expected.
Passengers will still pay a fee for overweight bags.
In February, United Airlines became the first major airline to announce a charge for a second checked bag. Delta, Northwest and US Airways also will adopt new policies next month.
Spirit Airlines, a discount airline, already charges for all checked luggage.
As he waited for a flight home to Austin, Texas, John Korcsmar didn’t seem too concerned about the charge.
“I can’t remember the last time I checked two bags,” he said.
Plain Dealer researcher Jo Ellen Corrigan contributed to this story.
Need to pack light? Click here for packing tips
In the News: ATA discontinues all flights, files for bankruptcy
April 4, 2008 at 2:19 pm | In Uncategorized | Leave a CommentTags: ATA, bankcruptcy
ATA Airlines announced Thursday morning it is shutting down all operations and canceling all current and future flights.
More than 2,200 employees are out of a job. ATA also says it can no longer honor passenger reservations or tickets.
The airline shut down operations as of 3 a.m. Thursday morning. Customers who arrived for flights at Midway International Airport were turned away Thursday morning, while employees who showed up for work were told they were no longer needed.
The move comes after the airline filed for Chapter 11 bankruptcy on Wednesday in Indianapolis. In a statement posted on its Web site Thursday morning, the airline said it had become impossible to continue operations after the loss of a key contract for its military charter business.
- Customers of ATA Airlines are turning up at Chicago’s Midway Airport only to find the airline has discontinued all fights and filed for bankruptcy.
It appears that not only passengers are flabbergasted. Workers for the Indianapolis-based airline showed up for work, only to find out their services weren’t needed.
ATA says in a statement on its Web site that it became impossible to continue operations after it lost a key contract for its military charter business.
ATA announced last month that it would leave its hub at Midway Airport. The airline had flights from Midway to Dallas/Fort Worth and Oakland, California. It also had flights to Hawaii from Oakland, Los Angeles, Phoenix and Las Vegas.
All Current, Future Flights Canceled
The airline said in a statement that ATA customers should “seek alternative operations for current and future travel. They have composed a list of other airlines serving the same destinations as ATA.
TA said if passengers bought tickets using a credit card, they should contact their credit card company or travel agency to inquire about a refund for unused tickets. For tickets purchased with cash or check directly from ATA, refunds are not currently available, the airline said.
Cash or check customers may receive full or partial refunds by submitting a claim to the Chapter 11 proceedings for ATA, the airline said.
For more airline news, click here.
Frequent-flier miles tough to use
April 3, 2008 at 4:19 pm | In Uncategorized | Leave a CommentBy Chris Walsh for the Rocky Mountain News
Dust off the swimsuit, grab the industrial-size tube of sunscreen and call the pet sitter, you’re cashing in frequent-flier miles this summer for a family trip to Hawaii!
On second thought, make that Boise.
Scoring mileage award flights to popular vacation destinations is quickly becoming an exercise in futility, as a growing number of travelers fight for a limited number of free seats. That’s forced consumers to consider cities with lower demand, to fly off-season or to use more miles for unrestricted reward flights.
It’s a trend that has been playing out for years, and some experts say it’s getting worse. There are anywhere from 10 trillion to 14 trillion unused miles in circulation, according to various estimates. That means travelers have a lot of free flights coming to them, and airlines have billions of dollars of liabilities on the books.
Blame it on shifting mileage policies, a reduction in domestic capacity at some airlines and an overwhelming increase in the number of people earning miles for everything from grocery purchases to mortgage loans.
To read the rest of the article click here
AIRLINE PLANS AT A GLANCE
United Airlines
Mileage plan: Mileage Plus
Free flight: 25,000 miles for domestic travel with limited availability, 50,000 for any open seat
Expiration: After 18 months with no account activity
Blakout dates: No
Frontier Airlines
Mileage plan: Early-Returns
Free flight: 15,000 miles for domestic travel with limited availability, 30,000 for any open seat
Expiration: After two years with no account activity
Blackout dates: Yes
Southwest Airlines
Mileage plan: Rapid Rewards
Free flight: Eight round-trip flights for domestic travel with limited availability, 16 flights for any open seat.
Expiration: Flight credits expire if not used within 24 months.
Blackout dates: Yes
TIPS FOR REDEEMING YOUR MILES
* Start planning early, and find out how far in advance an airline sells fares. Frontier, for instance, sells tickets for travel up to nine months out. If you can plan that far ahead, you’ll have the best chance of scoring a reward seat. Look to book as soon as the carrier starts selling those tickets.
* Check out last-minute deals because airlines sometimes release reward seats in the days or weeks leading up to a flight.
* Be flexible. If the exact dates you want to travel aren’t available, try leaving a day or two earlier or returning later. Also consider nearby airports, such as Philadelphia or Baltimore rather than Washington, D.C.
Frontier Airlines for Aspen Destination
April 1, 2008 at 8:58 pm | In Uncategorized | Leave a Comment
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