Some industry updates…

I figured I’d make a consolidated post with some of the stories/news I’ve seen in the industry this week.

  • Many airlines are raising the price for liquor/food onboard. AirTran is raising the price of alcoholic beverages by a dollar to $6. Starting June 1, United is raising the price of their “fresh food” items to $7, up from $5. The snackboxes are still $5, which is a pretty good deal. Even at $7, it’s not a bad deal since the selection is pretty good, in my opinion. American raised their prices from $5 to $6 for both alcohol and fresh food. Ultimately I can see the need for all of them to raise their prices, although I’m not sure how smart of a move it is. I guess we’ll see, but it seems like $5 would be perceived as reasonable, while some may consider $6 too expensive for a drink. I guess it all comes down to elasticity of booze and food on planes.
  • JetBlue announced they would defer the delivery of 21 A320 aircraft, a move which makes complete sense given the state of the industry.
  • According to a thread by a reputable FlyerTalker, UA will be reducing the frequency of LAX-HKG to four times a week over the summer, and will be discontinuing the service on September 2. There are also rumors of large scale layoffs as well as more capacity reduction, so we’ll stay tuned for that.
  • Northwest has matched United’s offer to give anyone that contributes at least $50 to the China Earthquake Relief fund 500 miles.
  • Delta’s FA’s have once again voted down a union by a sizeable margin. This shows that they must have quite a bit of faith to not be unionized in such tough times, so kudos to the company as a whole.
  • Speaking of Delta, a complete nut (or maybe I shouldn’t even say that if I don’t want to be sued for several million dollars) is suing Delta for $1 million for some flight delays and poor customer service. I think the article speaks for itself, but this is just crazy. Even forgetting about the million dollars, how do you spend $21,000 for a hotel, rental car, clothes and flights? Sounds pretty nutty to me…

Comments

  1. Big piece if news is Silverjet folding today. Yet another all-business LCC(ish) falls over…

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