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Lots of News

I’m a bit too lazy to enter each of these things as separate entries, so here’s a whole bunch of recent stories, starting with the most interesting (but not necessarily declining in interestingness).

–US Airways has pulled its flights off Expedia after, they say, Expedia raised booking fees on US Airways tickets to $8.99 from $5. US Airways was the first airline to complain publicly (in an SEC filing) that 3rd party distributors (ie, Expedia) were becoming rather expensive means of distribution. Northwest pulled their flights off Expedia a year or so ago, and worked out a deal a couple of weeks later. This move could be permanent.

–My friend Doug passes along this fascinating tidbit about Ryanair. The airline plans to, ahem, enhance the breasts on the angels that adorn its logo. site whois . I’m not making that up. Really. Fill in your own Hooters Air joke here.

–Interesting little article about America West looking at the change to their business since they introduced their low fare strategy. Tidbit: While they lowered their highest fares, they actually raised their lowest: business travelers now make up 44% of their business (up from 34%).

–Another US Airways story: Their CEO said that they expect US Airways’ fares to be “fully competitive” with Southwest’s when the latter airline enters the Philadelphia market in 2004. Unfortunately, this will entail a 30% reduction in Revenue per Available Seat Mile (RASM), but the airline says they should get a 5-10% fare premium over the low cost carrier. Good luck with all that.

–And finally, Sinagpore Airlines will enter the budget market, launching Tiger Airways, to be part owned by the family that owns Ryanair. The airline will launch in mid to late 2004, and routes haven’t been announced. I expect that Air Asia will dump a ton of capacity into Johor Bahru (across from Singapore) and blow them out of the water with cheap fares. It will be a fight. Of course, most of you don’t give a hoot about this, so I’ll reiterate that Ryanair is enhancing the bust size of the angel on its logo.

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