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Friday, January 30, 2009
SkyTips: Flying within Europe

Most U.S. frequent-fliers are pretty well-versed on how to find flights and fares for travel within North America. But, what if you're looking to travel solely within Europe? Is there a site that you think does best in finding fares on all European carriers –- even on the continent's myriad low-cost carriers? Or, where do you go to find out which airlines fly the routes you want to take? Whatever tips you have for flying within Europe, share them in this week's SkyTips.

Guest post: Should flight attendants be able to chew gum on duty?

USA TODAY reporter Kitty Bean Yancey, also our Hotel Hotsheet blogger, has a question about the airline industry that she wanted to put out to our Today in the Sky audience. Here is a guest post from Kitty, who is looking for your insights and opinions:

"Twice in the past few months I have noticed flight attendants chewing gum as they made their rounds. I had never seen this before and think it still may be against the rules, but these two women chomped openly. I'm wondering if Today in the Sky readers have seen this, too. If so, what airline? Can anyone in the industry tell me if this violates rules at their carriers? Am I being too retro to feel that flight attendants -– like hotel staffers and servers and others who work with the public –- should not be seen chewing gum in public?" 

IATA: Airlines in financial crisis, lost $5 billion in 2008

In case you missed this story in this morning's USA TODAY, reporter Marilyn Adams writes:

"Airlines around the globe are in their most widespread financial crisis since World War II, the world's largest aviation trade group said Thursday. The International Air Transport Association (IATA), which represents 230 airlines worldwide, reported that December's international air passenger traffic fell 4.6% year-over-year, and only about 74% of plane seats were sold. International air cargo volume fell an unprecedented 22.6% year-over-year, a sign of plummeting consumer spending."

" 'There is no clearer description of the slowdown in world trade,' said Giovanni Bisignani, the association's CEO. The report came on the same day that four U.S. carriers — Alaska, Continental, JetBlue and US Airways — posted losses for 2008. The only major US carrier that reported a 2008 profit is Dallas-based discount giant Southwest Airlines. American, Delta and United also posted 2008 losses. … In all, the IATA said airlines worldwide lost $5 billion last year, and will post more losses this year."

Check out the full story online.

US Airways crash-landing survivors get top frequent-flier status ... and some still complain

US Airways is conferring its top level of frequent-flier status to the survivors of US Airways Flight 1549, according to the New York Post tabloid. Passengers on the flight, which crash-landed off Manhattan in the Hudson River on Jan. 15, will receive Chairman's Preferred status through March 2010. Chairman's Preferred is US Airways' top frequent-flier status, typically reserved for customers that fly 100,000 miles or more in a calendar year. Perks for Chairman's Preferred members include automatic upgrades on mainland domestic flights, two upgrades on overseas flights, access to a special reservations number and double miles on every flight.

Though earning such elite status is the dream of many frequent fliers, the Post's story finds passengers on Flight 1549 who called the gesture too little and insincere. "Some who were on the plane … said the temporary tease of first-class perks is for the birds," the tabloid writes, though it was not clear from the article whether the Post tried to seek out any survivors who had good things to say about US Airways. As for the passengers that the Post did to talk to, one said: "They [US Airways] are happy they had such amazing results, and they applaud themselves, and then give us a small token? That's how I take it."

The Post's story is not the first in which passengers from Flight 1549 have groused about their compensation -– which included a $5,000 check to assist "with immediate needs" and reimbursement for the ticket. In a recent story, USA TODAY writes "many US Airways passengers who endured a crash landing in the Hudson River ... say they appreciate the $5,000 that the airline has offered — but some say it's not enough."

That story unleashed a torrent of feedback from USA TODAY readers, with nearly 1,300 comments posted. Many of those lashed out at the Flight 1549 survivors who complained about compensation. Reader kdb comments that “$5,000 … is ample. There was no negligence here; why do Americans think they should get rich when they see an opportunity."  Another reader, TravelChick, says passenger gripes about compensation "makes me ill."

Share your thoughts: Are the passengers from Flight 1549 justified in thinking US Airways can or should do more? Or, do they come across as greedy and ungrateful. Share your thoughts.

Continental: SkyTeam membership ends Oct. 24

UPDATE (as of 8 a.m. ET on Friday, Jan. 30): Continental Airlines will end its membership in the SkyTeam frequent-flier alliance on Oct. 24, the carrier says in e-mail sent to its frequent fliers Thursday evening. The Houston Chronicle says that opens "the way for it to join the Star Alliance, led by United Airlines and Lufthansa."

Though the change seems to be widely anticipated many Continental frequent fliers, the switchover could be bumpy, some industry observers say. "It will be decidedly confusing in the short term ... ," aviation consultant Bob Mann of R.W. Mann & Co., predicts in the Chronicle article.

In the meantime, Dow Jones Newswires notes that "as part of the pact, Star is seeking antitrust immunity for Continental alongside the existing approval (already) granted to some (of its other) members on transatlantic and other markets." Continental announced in June that it would defect from the SkyTeam frequent-flier alliance -- and codeshare partner Delta -- in favor of a partnership with United and the Star Alliance group.

ORIGINAL POST:

Continental: SkyTeam membership ends Oct. 24
That's from an e-mail that the carrier sent to its frequent fliers last night. In it, Continental says:

"In June 2008, Continental announced plans for extensive commercial cooperation with United Airlines and Star Alliance, linking our networks and services worldwide to deliver new benefits to our customers. We pledged to keep you informed of developments and would like to provide you an update."

"Regarding SkyTeam, Continental intends to end its participation in the SkyTeam Alliance after the last scheduled flight on Oct. 24, 2009."

"We continue to work through the details of our planned exit from SkyTeam and entry into Star Alliance, but anticipate our participation in Star Alliance will begin promptly after we leave SkyTeam. We are committed to providing our OnePass members with opportunities to earn and redeem miles over an extensive network."

"We will be working hard with our good partners at SkyTeam, and our future good partners at Star, to make the transition from SkyTeam to Star Alliance as smooth as possible."

"You can expect to receive updates from us as we continue to develop our participation in Star Alliance. Remember the most current updates may be found at continental.com."

"As always, many thanks for flying Continental. We appreciate your business."

JetBlue resurrects LAX plans

Beginning June 17, JetBlue will begin service at Los Angeles International. The carrier will fly two daily round-trip flights to both New York JFK and Boston. JetBlue had previously announced plans to fly from LAX, but put that "plan on hold last summer as fuel prices climbed to record highs," The Associated Press reports. "Last year, when we postponed plans to serve LAX, increasing fuel costs made launching a new destination prohibitively expensive," Chief Commercial Officer Robin Hayes says in a statement. "Fuel prices have now reduced and we continue to get overwhelming requests from our customers to serve this market. Clearly, the time is right for JetBlue to enter LAX."

The Los Angeles Times writes "the service … could help ignite a transcontinental fare war at LAX, especially for flights to Boston. Two carriers -- American and United -- now offer four daily flights from LAX to Boston's Logan International Airport. A third airline, Virgin America, plans to begin Boston service next month, with fares starting at $149 one-way." AP suggests "the time also may be ripe for JetBlue to take advantage of capacity pullbacks at major carriers. American Airlines, Delta Air Lines and United Airlines scaled back at the airport last year as fuel prices forced capacity reductions."

Meanwhile, The Boston Globe writes "a JetBlue spokesman denied that yesterday's move was in response to Virgin's entrance to the Boston market, … although he acknowledged Virgin is seen as a competitor." JetBlue spokesman Sebastian White tells Today in the Sky: "A key part of JetBlue's commercial strategy is to become even more relevant to business travelers, and LAX is a key airport for them. But more than that, it's a place our customers have long asked us to serve."

JetBlue also serves two other L.A.-area airports, flying out of Burbank and Long Beach. The latter is one of the carrier's busiest airports. As for LAX, White says: "We've been in L.A. nearly our entire history, serving the region from airports north and south of the city. This new service will be a boon to people living downtown and on the West Side of L.A. where LAX is a very convenient option." White also points out the airline's presence in Boston, saying the LAX service "is equally a testament to the strength of JetBlue in Boston, where we now offer 30 destinations."

Thursday, January 29, 2009
AP: Computer problem delays US Airways flights

This just in from The Associated Press: "US Airways said Thursday its computer system is returning to normal after a cut cable delayed about 100 flights. The airline said that a fiber-optic cable was accidentally cut near one of its Phoenix data centers, affecting its flight dispatch and airport computer systems. US Airways said no flights were delayed for more than an hour because of the problem.The carrier said its systems were coming back on line Thursday evening, but customers were advised to check with the airline about their flight's status. US Airways has about 3,100 flights a day to destinations in the U.S., Canada and international cities."

Thursday news round-up

Here is a round-up of the aviation-related stories posted on USATODAY.com involving news and columns posted since Wednesday. The stories listed below include only those not already covered in the Today in the Sky blog. 

Click on the headline links to see more details.

Spirit flight attendants: We are not 'walking billboards'
AP: Flight attendants for Spirit Airlines are unhappy with a new uniform design that includes aprons displaying logos for alcoholic beverages. The Association of Flight Attendants chapter at Spirit Airlines said Tuesday that the uniforms send the wrong signal to passengers and make it harder for flight attendants to enforce safety regulations.

Column: Emirates sets new standard for airlines, but will its master plan fly?
USATODAY.com: A billboard on an Oakland city bus touts complimentary chauffer-driven limousine service for first- and business-class passengers flying to Dubai and beyond on Emirates Airlines. Although it might seem an unlikely place to plug an airline based 8,000 miles away, this is part of a much larger advertising campaign for a new nonstop flight linking this rapidly growing Middle East city with San Francisco, Emirates' fifth gateway in North America.

Column: Five strategies for finding cheap airfares in 2009
SmarterTravel.com: After reflecting on what happened last year and consulting with some of my fellow industry observers, I can tell you that while finding good air deals will be a challenge this year, there are some real opportunities for savings if you employ the following tactics.

Column: Promo codes may provide the key to the lowest airfares
USATODAY.com: The trend among some carriers in recent months has been to drive more consumers to their own branded sites, and the weapon of choice in this war for brand loyalty has been promotion or discount codes, often referred to as promo code fares. They require you to insert a short sequence of letters and/or numbers when booking, and in many cases they're the keys that can unlock the absolute lowest fares.

Name that airport...

TodayphotoHere is this week's "name that airport" photo.

Submit your guess by clicking on the "comment" link and typing your answer there.

Check back Monday, when I'll reveal the airport's identity around 2 p.m. ET.

Good luck!

JetBlue to add flights to Jamaica

Beginning May 21, JetBlue will add service between New York JFK and Montego Bay, Jamaica.  The carrier will fly one daily round-trip flight using 150-seat Airbus A320 jets. In a press release, JetBlue says connections to Montego Bay will be offered "from numerous other Northeastern cities including Boston, Buffalo, Rochester, and Washington." Tickets are expected to go on sale on Feb. 4, "subject to receipt of government operating authority." Montego Bay will be JetBlue's 11th international destination. For anyone wondering about JetBlue's announcement in relation to the news of Air Jamaica cutbacks (see below), JetBlue spokesman Sebastian White tells Today in the Sky that's "just coincidental." He adds "the Caribbean is a top performer for us."

Struggling Air Jamaica drops three U.S. routes, will slash staff

Tough times at Caribbean carrier Air Jamaica are forcing it to slash staff and eliminate service to three U.S. cities as it tries staunch losses, The Associated Press reports. Airline CEO Bruce Noble says Air Jamaica must "cut routes where we are losing money." In doing so, the airline will end service to Atlanta, Miami and Los Angeles -- as well as to three in the Caribbean (Barbados, Grenada and Grand Cayman). "With these changes the airline's fleet will be reduced to nine aircraft, the appropriate number required to effectively operate the new schedule," Air Jamaica says in a statement quoted by The Jamaica Observer.

In Miami, The Miami Herald notes the airline's exit will end four decades of  Air Jamaica service at the airport. The paper writes "the government-owned carrier will continue its service to Fort Lauderdale-Hollywood International Airport, where nearly four times as many of its South Florida passengers already fly, said ... Nobles." Nobles adds: ''Will we ever come back to Miami? I can't say." He tells the Herald the airline's Fort Lauderdale is profitable, while Miami is ''losing money -- a lot.”

In Jamaica, the move to drop Miami seemed to resonate the most. In an editorial, The Jamaica Observer says "Miami was not a route like any other. Over time, Miami became the heart and soul of Air Jamaica." The editorial adds: "We have to believe that the decision by Air Jamaica, the national airline, to drop its Miami route, among others, was based on very strong financial reasons. … Otherwise, Air Jamaica might just have sounded its death knell."

All losses: Continental, US Airways, JetBlue and Alaska Air

All four of those carriers reported fourth-quarter losses this morning. Here's a brief recap from The Associated Press on each airline's result: 

"Continental Airlines said Thursday it lost $266 million in the fourth quarter as the recession bit into traffic and fuel and labor costs increased," The Associated Press reports. "Excluding net charges of $170 million, Continental's loss would have been $96 million, or 84 cents per share. Analysts surveyed by Thomson Reuters expected a loss of 89 cents per share," AP adds.

"US Airways said on Thursday it lost $541 million in the fourth quarter on a mix of sour fuel hedges and operating losses," The Associated Press writes. "Not counting special items such as $234 million in paper losses on fuel hedges, US Airways said it would have lost $1.93 per share. Analysts surveyed by Thomson Reuters, who generally exclude one-time charges, expected a loss of $2.15 per share on revenue of $2.78 billion."

JetBlue this morning "reported a pretax loss of $49 million, compared with a pretax loss of $3 million a year earlier. The 2008 period includes a charge of $53 million on the value of auction-rate securities, which rapidly lost value as the credit crisis spread," The Associated Press reports. "Excluding the charge, the airline said it would have reported pretax income of $4 million, compared with a pretax loss of $3 million in the 2007 fourth-quarter. JetBlue said it is evaluating the tax position of a special charge and will not report net income for the fourth-quarter until mid-February, when it plans to file its annual report with the Securities and Exchange Commission on form 10-K," AP writes. 

"Alaska Air Group, operator of Alaska Airlines and Horizon Air, said Thursday it swung to a $75.2 million fourth-quarter loss as sales slid and fuel costs increased," The Associated Press writes. AP adds: "The results, when one-time items are excluded, beat Wall Street expectations. The Seattle-based company said its loss for the October-December period was equivalent to $2.08 a share … . Excluding special items, it posted a fourth-quarter profit of $16.4 million, or 45 cents a share. Analysts polled by Thomson Reuters, on average, expected Alaska Air Group to post a loss of 4 cents per share in the fourth quarter, excluding one-time items."

Stay tuned for more details ...

Time to call Allegiant the USA's most-profitable airline?

Allegiant Air appears ready to assume the role as the nation’s most-profitable airline. The company "said that for the fourth quarter ended Dec. 31 it earned $18.2 million or 88 cents per share, up from $4.8 million or 23 cents in the year-ago quarter," the Las Vegas Sun writes. With Southwest now sliding into the loss column the past two quarters, Allegiant has become the only big U.s. commercial carrier to consistently post profits in recent quarters. The Las Vegas Journal-Review adds that "a dramatic decline in fuel prices helped Las Vegas-based Allegiant Air reap a double-digit profit margin and to project growth in 2009, despite a lousy economy that's dragging down tourism."

Air Transport World notes Allegiant was "unfettered by a fuel hedge program," with the carrier having ended that 18 months ago. That allowed Allegiant to take full advantage of fuel prices once they began to plummet during last part of 2008. For the full year, Allegiant's profit was $35.4 million, "up 12.4% from $31.5 million earned in 2007," according to ATW. In addition to sinking fuel prices, Allegiant benefited from "its continued emphasis on driving ancillary revenue, such as charges for seat assignments, travel insurance and other add-ons," the Journal-Review writes.

Allegiant is expecting another strong year ahead. "The world has not ended," Allegiant CEO Maurice is quoted as saying by BusinessRockford.com. "It is hard to get that message across." As for growth, ATW reports Allegiant "will add four MD-80s to its fleet in the first half of 2009." And BusinessRockford.com writes Allegiant also "is planning to announce either a new focus city or another service expansion, officials said in a conference call with investors … ."

The Sun writes "Allegiant focuses on linking small cities with big leisure destinations such as Las Vegas, Phoenix, Fort Lauderdale, Fla.; Orlando, Fla.; and Tampa Bay/St. Petersburg, Fla. It offers charter services for casinos and can bundle travel with hotel rooms, rental cars and other travel-related services."

Frontier posts best December ever, eyes bankruptcy exit

Frontier Airlines posted a profit of $18.7 million in December, the airline's best-ever performance for the month, according to the Rocky Mountain News. The paper says "it's another indication that the homegrown company, which filed for bankruptcy protection last April, has turned a corner financially. Although Frontier certainly still faces challenges, it has reported profits for two consecutive months after racking up nearly $100 million in losses from April through October."

The Denver Post says Frontier benefited from "deep cost cuts and a new fare system." For the October-to-December quarter, Frontier earned a profit of $1.1 million, "which included special gains and charges such as proceeds from aircraft sales and losses from fuel hedges," according to the Post. "For the first time in five years, we've actually recorded a profit for the December quarter," Frontier CEO Sean Menke tells the Post. "This is really big in light of what a number of companies, especially airlines, have been reporting."

The Associated Press says the profit "has set the stage for the airline to emerge from Chapter 11 bankruptcy protection, possibly as soon as the summer, … Menke said Wednesday." The Rocky Mountain News says the company now "is ratcheting up efforts to secure roughly $125 million in financing to emerge from bankruptcy."

Wednesday, January 28, 2009
Today's chat: Should fliers be able to drink in exit-row seats?

Is United considering pulling out of Denver? Why are airfares so high? Do you prefer to consider aircraft type when choosing your flights? Is the United-Continental pact on schedule?

Find out the answers to these questions –- and about 20 others –- by reading the transcript of today's chat.

US Airways announces intention for first South American flights

US Airways just announced plans for what would be its first South American route. The carrier says it has requested permission from regulators to begin daily, year-round service between Charlotte and Rio de Janeiro in Brazil. 'The proposed service will be operated with Boeing 767 aircraft with seating for 18 in Envoy Class and 186 in the main cabin," the airline says in a press release. US Airways says it hopes to begin the service "later this year."

"Brazil is an attractive market for US Airways and fits well into our commitment to expand our international service," US Airways CEO Doug Parker says in the release. Parker also lauded U.S. and Brazilian officials for helping make the service possible by liberalizing flight rules between the nations. "We applaud the Department of Transportation in securing new frequencies between the U.S. and Brazil and the Brazilian government in eliminating restrictions on the number of U.S. carriers permitted to fly to the country," Parker says.

Chicken parts as jet fuel? Pond scum? It's possible

In case your missed this story in yesterday’s USA TODAY, reporter Dan Reed writes:

"Chickens can't fly very far. But chickens — or the fatty parts left after processing —could be powering jet flights across the country and around the world in the next few years. Or maybe it'll be algae, essentially pond scum, fueling them. Or jatropha, a smelly and poisonous subtropical plant with nicknames such as 'black vomit nut' or 'bellyache bush.' Or liquid fuel converted from coal or natural gas, using a technology pioneered by Adolph Hitler's Nazi war machine."

"Airlines, airplane and engine makers, the fledgling synthetic and biofuels industry, the U.S. government, environmentalists and even the big oil companies are working together to develop alternative fuels from these and other sources. Their goal: to replace a significant portion of the 19 billion gallons of kerosene that U.S. carriers burn in their planes each year and to do it by the end of the next decade. If they succeed, airlines will reduce their carbon footprint — and save big money that could possibly help hold down fares. The U.S. Air Force also is pushing development."

Check out the full story online.

Delta to revamp fares at USA's most-expensive airport

Delta says it's planning a new fare structure for its hub at Cincinnati/Northern Kentucky International Airport, which is consistently ranked among the nation's most-expensive airports. That disclosure came during Delta's fourth-quarter earnings report, in which company officials acknowledged "weakness" at its Detroit and Cincinnati hubs (see below). As for Cincinnati, Delta CEO Richard Anderson is quoted by The Cincinnati Enquirer as saying: "Very shortly, we're going to be rolling out a new fare structure in Cincinnati."

The paper adds "Anderson would not elaborate on details of the new fare system, including when it would be implemented or how it would change local fares." Anderson says that fares and schedules will be adjusted at Cincinnati to "respond to the demand environment. We don't have specifics out yet, but between our new network strategy and fare strategy, we expect to see nice improvement in Cincinnati."

However, additional details likely will be scarce until Delta is ready to formally unveil its new strategy. The Enquirer writes "airline officials later declined to discuss the CEO's statements further, citing legal concerns about possibly disclosing future pricing plans." Noting that Delta controls more than 90% of the local market, the Enquirer says "Cincinnati has long had the most expensive fares in the nation."

"As a region, we have been pushing the fare issue at every opportunity with Delta and, if nothing else, the fact that the CEO of Delta would even consider that they are thinking about Cincinnati and our fare situation means to us that they are hearing our plea for relief," Doug Moormann, vice president of the Cincinnati USA Regional Chamber,” tells the Enquirer.

Delta: Detroit, Cincinnati hubs have 'most weakness'

Delta President Ed Bastian said during an earnings conference call Tuesday that Detroit and Cincinnati have "the most weakness" among the company's hub airports, Bloomberg News reports. The Associated Press writes "demand has dropped in many regions, but especially in the Detroit and Cincinnati areas on the domestic side, which have been affected by cuts in the automotive and industrial sectors, and on trans-Atlantic routes on the international side, (Delta) executives said." The officials say hubs in Atlanta, Minneapolis/St. Paul and Salt Lake City also are affected by the economy, but not to the same extent as Detroit and Cincinnati.

Another weak spot for Delta: Shuttle flights between New York and both Washington and Boston, according to The Atlanta Journal-Constitution. As for Detroit, it may not fare that poorly -– despite the "weakness." Delta "officials said the cuts would affect all of its hubs, but not Detroit more than others," The Detroit News writes. "The Detroit facility is doing quite well ... This doesn't back down our commitment or investment in that facility," Bastian is quoted as saying by the Detroit Free Press.

Delta warns on demand, but predicts 2009 profit

Delta warned yesterday that even steep fare sales don't seem to be stimulating demand. Delta made that observation during yesterday's earnings report, in which "the world's biggest carrier posted a $1.4 billion loss for the final three months of 2008 and signaled the revenue environment for 2009 will be challenging," The Associated Press writes. Indeed, AP adds that Delta "said advance bookings for February and March so far are not promising, especially for international flights." The company's shares plunged 18% after the report.

Bloomberg News writes Delta said "it will remove 40 to 50 of its mainline jets from the fleet in 2009 as it trims seating capacity by 6% to 8%. The company said it will 'monitor the demand environment' and can cut more deeply if warranted." The airline also said fees for once-free perks -- such as checked luggage -- will continue to be an important source of revenue. However, Delta CEO Richard Anderson is quoted by AP as saying a fee for carry-on bags is not being considered as a new option.

Delta may need the a la carte revenue stream to help offset declines elsewhere. The Financial Times writes that "in its first reporting quarter since merging with Northwest Airlines to create the world's biggest carrier by traffic, the company said that passenger unit revenue -- an industry measurement that factors how well an airline fills aeroplane seats and how much it charges for tickets -- would fall 4% this year." AP adds "it's not just leisure travelers who are not spending as much, it is business travelers as well." Delta President Ed Bastian says: "They're flying in the front cabin less often."

As for the details of the results, The Atlanta Journal-Constitution notes the company's $1.4 billion loss for the fourth quarter includes a "massive one-time special charges related to its merger with Northwest Airlines and losses from fuel hedges." Bloomberg says excluding the one-time charges, "the loss was $340 million, or 50 cents a share," which "exceeded analysts' estimates." AP says "analysts surveyed by Thomson Reuters, who generally exclude one-time items from their estimates, expected a loss of 34 cents a share. Delta said the analyst estimates did not factor in a 12 cents per share loss related to the non-cash impact of purchase accounting."

Still, the carrier said better days are ahead. “Despite the difficult economic environment, we expect to be solidly profitable in 2009, driven by lower fuel costs, capacity discipline, and merger synergies," Anderson says in a statement quoted by Reuters. And the Journal-Constitution notes "Delta expects to save $5 billion on fuel costs this year and $1 billion by cutting flight capacity, while generating $500 million in benefits from its merger with Northwest."

Delta adds new Mississippi route

Beginning May 4, Delta will add nonstop service from its Memphis hub to the Golden Triangle Regional Airport (GTRA) near Columbus, Miss. The Associated Press writes "Delta officials said Tuesday that the airline will fly 32-passenger turboprop planes to Memphis twice a day, with one morning and one afternoon flight coming to GTRA from Memphis and vice versa." The carrier will use Saab 340 aircraft, according to The Clarion-Ledger of Jackson, Miss.

"Delta says its recent acquisition of Northwest Airlines led it to add the flights," AP adds. The Memphis Business Journal writes "a Delta official confirmed Tuesday the airline was currently working to add the flight into its system, but the flight is not immediately available for purchase." Delta already flies between GTRA and its biggest hub in Atlanta. Airline officials say the Memphis route will make it easy for Mississippi passengers to catch connecting flights to the West.

AirTran posts first annual loss since 1999

This just in from The Associated Press: "AirTran Holdings, parent of discount carrier AirTran Airways, said Wednesday its fourth-quarter loss widened to $118.4 million, as it took a hit from bad bets on fuel hedges. It also posted a loss for 2008, its first annual loss since 1999. Orlando-based AirTran, which has its hub in Atlanta, said its net loss for the October-December period was equivalent to $1 a share, compared to a loss of $2.2 million, or 2 cents a share, in the same period a year earlier."

"The fourth-quarter loss included non-operating losses of $147.7 million related to fuel hedge contracts. After locking in prices that looked reasonable earlier in 2008, some airlines finished the year paying substantially more than market price for a portion of their fuel. Without the fuel hedge losses, AirTran would have posted a profit for the quarter.Analysts polled by Thomson Reuters, on average, expected AirTran to post a fourth-quarter loss of 3 cents per share. Analysts' projections generally exclude one-time items."

Check out the full story, and stay tuned for more details later today.

Wednesday morning news round-up

Here is a round-up of the aviation-related stories posted on USATODAY.com involving news from Tuesday. The stories listed below include only those not already covered in the Today in the Sky blog. 

Click on the headline links to see more details.

Many French flights to be canceled during strike
AP: France's civil aviation authority is predicting major disruptions to scheduled flights to and from French airports on Thursday during nationwide strikes.

Lufthansa flight attendants to strike
AP: A union representing flight attendants at Deutsche Lufthansa has called on its members to stage a six-hour walkout Wednesday in a pay dispute with the airline.

Greece: Flight disruption expected Wednesday
AP: Air traffic controllers say they plan to stage work stoppages at Athens International Airport Wednesday, which will likely disrupt flights to the Greek capital.

Nome airline flying to Russian mines
AP: Nome-based airline Bering Air is offering chartered flights to gold mines in the Russian Far East.

Earnings Preview: AirTran Airways
AP: AirTran Holdings, operator of discount carrier AirTran Airways, reports fourth-quarter and full-year results on Wednesday. The following is a summary of key developments and analyst opinion related to the period.

Airports testing radar that could spot birds
AP: Federal aviation officials say a handful of U.S. airports will soon begin testing experimental radar systems designed to track flocks of birds. Aviation officials hope the systems might help pilots avoid the type of collision believed to have crippled a US Airways jet over the Bronx.

Tuesday, January 27, 2009
How did Virgin America get 'coveted' Orange County flight slots?

Where did Virgin America pick up the slots to fly to capacity controlled John Wayne Airport? (Related Post: Orange County is Virgin America’s newest destination) The Orange County Register writes "the coveted slot openings, which are restricted due to noise controls, became available after the collapse last April of Aloha Airlines. Aloha flew three daily round trips to and from John Wayne Airport. Alaska Airlines also cut back its (John Wayne) service last year," the paper says.

But, even with that, Virgin America still had to work its way up the list to snag the flights, according to the Register. The paper says that as recently as last June, Virgin America was fifth on a waiting list for John Wayne flights, should any slots open up. Hawaiian was No. 2 on the list, but told the airport it would not begin flights if offered the slots. Air Canada, No. 1 on the list, expressed interest but did not officially advise the airport of a starting date, the Register says. The other two airlines -– Air Tran and WestJet –- were "noncommittal," according to the Register, which cites airport spokeswoman Jenny Wedge.

Virgin America's newest destination: Orange County

Beginning April 30, Virgin America will add service to the John Wayne Airport in Orange County, Calif. The carrier will fly five daily round-trip flights between Orange County and San Francisco, the airline's home base and busiest airport. John Wayne will be Virgin America's ninth destination. The others: San Francisco, Los Angeles, San Diego, Seattle, Las Vegas, Washington Dulles, New York JFK and Boston. Virgin America will offer connecting service to Orange County from Seattle, Boston, New York JFK and Washington Dulles.  (Related post: How did Virgin America get 'coveted' Orange County flight slots?)

Virgin America will have competition on the route, however. Just two weeks ago, Southwest Airlines announced it would add its own nonstop service between San Francisco and Orange County –- a move some speculated might be a preemptive strike against Virgin America, which had previously signaled its interest in adding flights to the Southern California airport. Southwest's flights -– also five daily round trips –- begin May 9. And Southwest won't be Virgin America's only competition on the route. American, Alaska Air and United also offer nonstop service between San Francisco and Orange County.

L.A. walks away from Palmdale, which still hopes to lure air service

Los Angeles World Airports (LAWA) says it is surrendering its federal certification to operate commercial flights at California's Palmdale Regional Airport. LAWA, which operates Los Angeles International and L.A./Ontario International, is making the move after United became the eighth airline to come and go at Palmdale since 1971, according to the Los Angeles Times. United ended its United Express flights there in December after 18 months of serving Palmdale.

The Times writes that "because a substantial effort has been made to develop Palmdale airport, L.A. World Airports officials contend that pulling out of the airport for now will not violate a 2005 court settlement that requires the agency to pursue a policy of regionalism -- spreading the growth in air travel to airports across Southern California to relieve congestion at LAX."

In the meantime, the Times reports the city of Palmdale plans to take over responsibility for developing commercial air service at the facility, which is about 65 miles north of downtown Los Angeles. In a Nov. 12 article, the Times writes "the move is spurred by the imminent departure of United Airlines and reflects the frustration of Palmdale city officials with L.A.'s inability to develop passenger service at the airport."

Palmdale officials believe their airport should haven been better able to tap into local demand to expand as a reliever facility to the L.A. region. Inconvenient flight schedules, lack of nonstop options and high fares are citied by Palmdale supporters as reasons why their airport has not made better inroads among L.A.-area travelers. As for United's recently ended service, the Times says its flights "have been less than a third full, and the carrier has received almost $2 million in government subsidies to provide service for 18 months." Subsidies on United's Express flights amounted to about $230 per passenger, according to the Times.

And today's airport is ... Marrakech, Morocco

TodayairportThe photo shown in this week's "name that airport photo" is Menara International Airport (RAK), which serves Marrakech, Morocco.

Congratulations to reader zoegksf for being the first to correctly identify the photo.

And thanks to reader John Albrecht of the Bay Area for submitting the photo. Albrecht also happens to be the Aviation Marketing Manager at Oakland International Airport.

Also included in this post is a second, interior shot of the airport that Albrecht sent to us.

Todayairport_2Speaking of photos, readers can now submit their own photos to be considered for "name that airport" by emailing them to todaysky@gmail.com

All photos are welcome, but shots of U.S. and Canadian airports are especially encouraged. Readers' photos will also be considered for occassional photo galleries and for use with other features at USATODAY.com. Please be sure to include your name and city of residence if you'd like us to consider your photo.

Unfortunately, because of the volume of mail we receive, I cannot reply personally to each submission. 

Spirit pilots reject contract offer, raise strike possibility

Pilots at Spirit Airlines have rejected the latest contract proposal from management and say talks have deteriorated to the point where the union might seek permission to strike, the South Florida Sun-Sentinel reports. The paper writes Spirit's "growth to new destinations in Latin America and the Caribbean has become a bone of contention. The union claims it is essentially being asked to finance the company's expansion by flying to more places with fewer pilots and for less pay and benefits."

The Air Line Pilots Association (ALPA) claims that management is "reneging" on previous tentative agreements that two sides reached during more than two years of talks, according to the Sun-Sentinel. Capt. Sean Creed, Spirit's local union chairman, tells the Sun-Sentinel the proposed contract calls for $5.8 million in concessions and is "completely a take, take, take, take on (management’s) part with virtually no benefit to us." He tells the paper the contract terms come even though Spirit is spending millions to expand in Latin America. If Spirit does not come around on the agreements, then the union says it will begin exploring strike options.

As for Spirit, the Sun-Sentinel writes "Spirit has been adjusting its business model — including contracts with pilots and other vendors — in order to be financially successful and be able to offer passengers more travel options, (CEO Ben) Baldanza said. The pilots' existing contract, signed in 2003, doesn't reflect the economic hardship and uncertainty facing Spirit and the rest of the industry today, he said." The Sun-Sentinel says Baldanza would not go into specifics, but he did tell The Miami Herald the latest contract proposal "assures Spirit's competitiveness in the industry and allows it to grow. . . . The process is a back-and-forth process. The last volley they don't like from us, but there are more volleys to go.''

Lufthansa's bid for Brussels Air hits a snag

Lufthansa’s buying spree may have hit a road bump. The Associated Press writes European regulators said on Monday that "they needed to carefully probe Lufthansa's bid for Brussels Airlines, to check if the tie-up would create a monopoly on some routes. The regulators set a new deadline of June 10 to rule on the deal. The EU rarely blocks takeovers, but can demand the companies sell off units or change the way they do business in order to eliminate antitrust worries," AP writes.

Lufthansa plans to take a 45% stake in the Brussels-based carrier in a deal that would give it an option to acquire all of Brussels Air by 2011. The European Commission's initial review of the deal included concerns about competition on routes that include those between Brussels and Berlin, Hamburg, Geneva, Frankfurt, Munich and Zurich.

Is Delta's threat to downsize Atlanta just a bluff?

A bluff? That's how many industry experts are describing Delta's threat to reroute some connecting passengers and flights from its Atlanta hub to secondary hubs like Memphis or Cincinnati. The airline is just playing "hardball" as it prepares to enter into negotiations on a new lease with officials at Atlanta's Hartsfield-Jackson International Airport. The Atlanta Journal-Constitution writes Delta "is unlikely to follow through with its effort to pressure the Atlanta airport to shrink or slow down its costly, long-term construction plans, these people (experts) said."

The paper adds "while Delta might shift a small amount of traffic to a lower-cost airport such as Memphis, they said, the Atlanta-based airline would be reluctant to retreat from the attractive Atlanta market, where it has spent decades building Hartsfield-Jackson into the world’s busiest airport." Delta claims long-term airport projects could push Atlanta's costs to more than double than those at some other airports. Given that, Delta decided to point out in a memo to Atlanta airport officials that up to two-thirds of its connecting traffic at Atlanta could shifted to a hub like Memphis.

"They’re playing hardball," airline industry consultant Mike Boyd tells the Journal-Constitution. "I wouldn't put too much into this. They will come to a mutually beneficial agreement. They won't pull too many, if any, flights out [of Atlanta]." Additionally, the airport disputes some of Delta's calculations.

Regardless, some experts tell the Journal-Constitution that shifting flights from Atlanta to a smaller market may not make economic sense. Airport consultant Jerry FitzGerald notes Atlanta's lucrative base of corporate travelers. Memphis, while the airport may have lower costs, wouldn't present Delta with the same type of customer base that helped it establish its Atlanta global hub, FitzGerald says. "Airlines don't go where the cheapest airport is. They go to where the passenger demand is," he tells the Journal-Constitution.

Nearly all experts predict an eventual agreement that will end up with Delta keeping its Atlanta hub intact. "I understand what [Delta is] doing. Sometimes you end up spending for the Taj Mahal when all you really want is a Quonset hut," airline industry consultant Robert Mann tells the Journal-Constitution. However, he tells the paper that Delta's threat is "tough … to make good on. They would lose some of the productivity of a so-called fortress hub." Stay tuned ...