Mexicana Woes...
Mexico’s Mexicana Airlines is in bankruptcy. This is not good. They are still flying some flights but I would avoid them if at all possible. They have a lot of debt and creditors are trying to repossess the planes.
United Wants to Buy You A Drink...
United is offering to buy you a free adult beverage if you fly in an Economy Plus seat before August 16. You have to be 21 years of age and you are limited to only one free drink. Only one free drink and you need to ask...why does every free offer have a catch?
Sum of All Parts...
Airline Weekly’s financial summary of the second quarter offers a great look at the last three months:
- Delta rides merger and joint venture synergies to more than half a billion dollars in net profits, watching to see how United-Continental evolves.
- American is stuck in the bAAsement. High labor costs, lack of joint ventures, belated route restructuring and other woes leave it out in the cold.
- United sees mammoth revenue growth as Asian markers rebound; recording some of the industry’s best margins.
- Continental manages the best year over year turnaround measured by revenue growth relative to cost growth. Star Alliance synergies a big plus.
- Southwest somehow shrinks 3% and still produces explosive revenue growth and excellent margins. Should it start adding planes again?
United/Continental Heading to Court...
Speaking of United and Continental the airlines are facing an antitrust lawsuit filed in June in California. A group of travelers said the two airlines are competitors on many routes and a merger will lead to higher ticket prices and worse service. Continental and United say they plan to vigorously defend against the charges.
This lawsuit has not gotten a lot of press and we do not get the feeling that either United or Continental is at all worried about this legal action. We will keep you posted.
Southwest Flies ‘Em Full...
Southwest just released extremely strong July traffic numbers. The company filled a record 84.9% of its seats in July.
If all of the carriers are reporting similar load factor numbers, then fares can only continue to increase. We will keep you posted.
Oil on the Rise...
Oil prices are above $80 per barrel once again. We will keep an eye on this for you. If it goes above $85 per barrel you can expect to see fuel surcharges from the airlines and cruise lines.
However, the number of airline seats in the air this month will be greater than August of last year. This is the first time since 2007 that there has been any year-over-year growth in the number of airline seats in the air. If this trend continues, then there will be downward pressure on airfares. Goodness, gracious! The airlines make everything so complicated!
Republic Gets Underperform Rating...
Bank of America/Merrill Lynch (BAML) does not rate Republic Airways stock as a buy. BAML rates the stock as “Underperform.” Republic is the owner of Frontier.
More Tax Tidbits...
Chicago, New York City and Boston all have very high taxes on business travelers. But the highest travel taxes in the country are in Portland, Oregon. A recent study by the National Business Travel Association found the taxes in Chicago, New York City and Boston to be 56% higher than the national average. Portland’s taxes were an amazing 144% higher than the national average.
Four Score and Seven Years Ago...
I have long been very interested in and have read a lot about the Civil War. As many of you know, I am a Southerner. What you did not know is that my Great Grandfather fought for the South at Vicksburg. I have been to Vicksburg, but I had never been to Gettysburg.
Last week I attended meetings in Lancaster, PA. If you have never been to this part of Pennsylvania I suggest you spend some time in the Lancaster area. It is historic, the countryside is beautiful, and it is only 70 miles from Gettysburg.
After the meetings in Lancaster ended, my wife and I drove the hour plus to Gettysburg. The very, very best way to tour the battlefields at Gettysburg is to call the National Park Ranger office (717-334-6414) and reserve a registered Park Ranger. The charge is only $50 and it is worth every dollar.
Our Ranger was just wonderful. We spent the next two hours in our car as he drove us around the many battlefields that the two armies fought over for those three days in 1863. If you attempted to do this yourself you would not know exactly what you were viewing. Our Park Ranger knew facts I did not know and had many individual stories about men from both armies. Did you know Gettysburg was the largest battle ever fought on American soil?
There is no way to stand where General Lee stood looking directly up the hill at General Meede and not be moved. There is also no way to stand where General Meede stood and not wonder why General Lee chose to attack the way he attacked. When the battle ended 51,000 Americans were dead, wounded and missing. Remember both the North and South soldiers were American.
This is also the spot where President Lincoln gave the most famous speech any American President has ever given. The Gettysburg Address is 273 words long and took Lincoln only two minutes to deliver the speech. The speech was given the November after the July battle at the dedication ceremonies for the National Cemetery at Gettysburg. Lincoln’s words are also engraved on his monument in Washington, which—in my opinion—is by far the best monument in Washington.
Traveling offers us an amazing chance to look into the past. You can read about life changing events in history books. You can visit Internet sites and be part of someone’s Twitter page. But until you can stand where history was made and view firsthand what the participants saw you do not have a real idea of what actually happened on those historic days in 1863.
Thanks for your business and have a great week!
