Aloha Airlines Files for Chapter 11, Cites “Predatory Pricing”
Will Passengers Ever Want to Leave Heathrow’s Terminal 5?
Still Class-less, JetBlue to Charge For Extra Legroom
Delta Pilots Union Rejects Arbitration With Northwest
ALOHA AIRLINES FILES FOR CHAPTER 11, CITES “PREDATORY PRICING” – USA Today
Aloha Airlines filed for Chapter 11 bankruptcy protection last week, stating that it couldn’t generate enough revenue against “predatory pricing” by its competitor, Mesa Air Group’s go! airline. Aloha has announced that it will continue to fly if the bankruptcy court accepts its financial plan. Mesa launched its budget carrier go! to fly between the Hawaiian islands in 2006, directly competing against Aloha and Hawaiian Airlines. Aloha has said that it was forced to match go!’s “below-cost” fares during a time of sky-high jet fuel prices. “It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action,” said David Banmiller, Aloha’s president and CEO.
Link: USA Today
WILL PASSENGERS EVER WANT TO LEAVE HEATHROW’S TERMINAL 5? – Fodors
Although Queen Elizabeth II has officially opened Heathrow Airport’s new Terminal 5, non-royal folks will have to wait until this Thursday to try out the trendy shops, restaurants and activities available. The terminal, which will be used exclusively by British Airways, boasts so many amenities that some passengers are left wondering, just how long do they expect us to stay in the airport? The stylish 1,300-foot-long structure boasts high-end spots such as Harrods, Coach and Prada stores, along with Chef Gordon Ramsay’s latest venture, Plane Food. Although no more runways have been added to the airport, there will be improvements in baggage handling and check-in to accommodate the estimated 30 million passengers that will travel through the new terminal each year.
Link: Fodors
STILL CLASSLESS, JETBLUE TO CHARGE FOR EXTRA LEGROOM - BusinessWeek
JetBlue will charge passengers extra for more legroom in a move to boost its non-core revenue by 60 percent this year. The airline’s Chief Executive David Barger spoke at a conference last Tuesday and announced “What we want … is the ability to upsell.” The Forest Hills, New York-based airline will roll out the program, called “even more legroom” that will charge passengers to sit in the first few rows and emergency exit seats of its larger aircraft, but Barger denies that this is a move to create a business-class component to the airline.
Link: BusinessWeek
DELTA PILOTS UNION REJECTS ARBITRATION WITH NORTHWEST – Los Angeles Times
Delta Air Lines Inc.’s pilots union rejected the idea of arbitration with Northwest pilots to discuss the seniority issue that has stalled merger talks. Arbitration is a lengthy process that often takes place between airlines when their unions can’t reach agreements. Currently, Delta and Northwest have not yet announced a merger and Delta executives have stated that they will only move forward if their employees’ seniority is protected.
Link: Los Angeles Times
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