Friday, February 22, 2013

Secretary LaHood is not playing around. The USA does not want to bailout the airlines yet again.

...“We are beginning today (click here for video) discussions with our unions to likely close more than 100 air traffic control towers at airports with fewer than 150,000 flight operations per year,” LaHood said....

Recently, US Airways and American Airlines announced intentions to merge. The CEOs stated they would keep all flights in operation and would not be cutting any from their schedule. With announcement by Secretary LaHood, all airlines need to rethink their flight schedules beginning March 1st and they need to do that now rather than risk unhappy passengers.

The End of Cheap Airfare (click here)

The US Airways/American merger will mean fewer flights, higher prices, and worse service. But that’s OK.

By Matthew Yglesias|Posted Tuesday, Feb. 19, 2013, at 2:47 PM
...American Airlines is a much larger company than US Airways, yet it’s in effect being acquired by the smaller company. That’s because the larger company was bankrupt. The new firm will be owned by a blend of US Airways shareholders and American Airlines creditors, and run primarily by US Airways’ top management. US Airways itself was the product of a similar merger back in 2005. It had filed for bankruptcy in 2002 and then again in 2004, and found itself de facto taken over by the smaller America West Airlines. That merger saw America West’s brand subsumed under the better-known US Airways, but it was America West’s CEO Doug Parker who ran the merged entity and who now, with the American merger, will be CEO of the country’s largest airline....

American Airlines is already bankrupt. The USA is not going to bailout an industry always in contention of their own profitability.

The airline industry needs to put the announcement by Secretary La Hood into practice to prevent 90 minute delays by narrowing their number of flights to eliminate congestion at the airports that remain open. They also need to move any and all fights into airports to be closed after March 1st off their schedules. There won't be any Air Traffic Controllers there to even land a jet in an emergency.

There is a lot to be rearranged and it is time for the airlines to do that now. March 1st is just around the corner. I remind, January 1, 2014 will bring additional reductions in spending and additional contraction of the industry. The only reason this is happening on March 1, 2013 is because Congress instituted a delay last year.

Advanced planning will cause a reduction in the amount of liability to the airlines for accommodating passengers held over when their flights are delayed. One of the problems of the airline industry is that they hand out meals and lodging when their flights are postponed and/or cancelled. 

One other thing, if Secretary La Hood is stating there will be 90 minute delays; that is at one airport. That means a jet leaving NYC flying to Los Angels in a non-stop flight will be delayed 90 minutes. At Los Angels it will be delayed again 90 minutes when it receives new passengers on a return flight to NYC.

For a flight having many stop overs and passenger changes, which tend to be the venues of the smaller airlines, their delays will be compounded by 90 minutes every time they land and take off again. Follow? The delays and costs will be exponential. So, the CEOs need to get their act together. The cuts in funding will not be met with bailouts.