United Ups Change Fee, Reinstates Saturday Night Stay

United Ups Change Fee, Reinstates Saturday Night Stay
Published on Modern agent: April 22, 2008

United Airlines has made two changes to its ticketing policies. It has increased by 50 percent how much it charges to change a ticket and has added a Saturday night stay requirement on all discounted tickets where it competes head-to-head with other legacy air carriers. The fee to change a ticket has gone from $100 to $150 and the Saturday night stay will impact 65 percent of all markets United serves — for example, Chicago-Minneapolis and Chicago-Boston. In an environment where fuel prices are averaging almost $120 a barrel, the carrier says it is facing a cost increase of more than $2 billion this year and that is more than twice the operating earnings it generated last year. The airline said the changes are designed to help it adapt to today’s tough market realities and find new ways to generate revenue, according to a company spokeswoman. For more information, visit www.united.com.

Grumpy Santa’s Excellent Adventure

Fare Compare Launches “Santa’s Excellent Adventure”
Published on modern agent: December 10, 2007

The airline fare comparison site Fare Compare has sent “Grumpy Santa” (actually Fare Compare writer and researcher Michael Federico) on an epic quest to fly to the 48 contiguous states in the shortest amount of time for the lowest possible fare. Dressed in a Santa suit, Frederico began his trip in Dallas last weekend and is scheduled to finish his marathon in Los Angeles Dec. 19. Grumpy Santa and his team bought all tickets on each airline’s websites, going for the lowest available fares. For more on “Santa’s Excellent Adventure,” visit http://santa.farecompare.com.

Bush Administration Set to Reduce Holiday Air Delays

Bush Administration Set to Reduce Holiday Air Delays
Published on Modernagent: November 16, 2007

President Bush and U.S. Transportation Secretary Mary Peters announced several new measures to reduce air travel delays over the upcoming holiday season. President Bush said that the military will make available some of its airspace over the East Coast for use by civilian airliners this Thanksgiving. These new routes will help relieve air congestion from Maine to Florida for nearly five full days surrounding the holiday. He also said that the Department of Transportation (DOT) is imposing a holiday moratorium on all non-essential projects, so that the FAA can focus its personnel and equipment exclusively on keeping flights on time. The FAA is also partnering with the Port Authority of New York and New Jersey to reduce bottlenecks in the New York metro area. Authorities will make a series of operational adjustments — such as new procedures that will increase the number of planes that can land at the busy JFK and Newark airports in bad weather and implementing a moratorium on non-essential maintenance and operations — to keep the air travel system running at full capacity.

These policy changes will increase airspace and airport efficiency and help reduce delays caused by weather and holiday congestion, Secretary Peters said. In addition, President Bush said that the federal government is using the Internet to provide real-time updates on flight delays. He said that the government is also proposing to double the amount of compensation passengers receive when they are forced off over-booked flights.

The DOT also issued new proposals to increase passenger rights and protections before the next winter travel season. These include a new proposal to require airlines to create legally binding contingency plans for extended tarmac delays, respond to all consumer complaints within 30 days, publish complaint information online, and provide on-time performance information for their international flights in addition to their domestic flights. Secretary Peters also announced that the DOT is proposing to require airlines to include all cancelled flights and tarmac delays in their monthly delay reports, something they are not currently required to do. In addition, the department is issuing a second notice of proposed rulemaking to increase the required financial compensation for passengers involuntarily “bumped” from their flights.

The Air Transport Association of America (ATA) applauded the administration’s efforts to improve air service and reduce delays. Continental Airlines also issued a statement applauding the moves. For more information, visit www.dot.gov, www.fly.faa.gov or www.whitehouse.gov.

Alaska Airlines testing Wireless Internet System

Published on TravelWeekly 10/3/07

ALASKA AIRLINES said it would test a satellite-based, in-flight, wireless Internet system on one of its aircraft next year with the goal of adding wireless Internet to its entire fleet by the end of 2009. The airline said it would install Westlake Village, Calif.-based Row 44 Inc.’s broadband service on a Boeing 737 jet next spring. If the system works, all of its 114 planes would receive it. Customers with Wi-Fi-enabled laptops, smart phones, personal digital assistants and gaming systems would be able to connect to the system through wireless hot spots in the aircraft cabin. Row 44’s system is designed to work over water and across international borders. Alaska said it is researching pricing options for the service ranging from free service to day passes. If the system works, Alaska would become the first U.S. carrier to have wireless Internet capabilities on its entire fleet.

Midwest Boardroom Battle Looms Over AirTran Bid

Midwest Boardroom Battle Looms Over AirTran Bid
Published on: June 15, 2007

Midwest Airlines said that based on a preliminary review of the proxies voted at yesterday’s annual meeting, it appears that shareholders have elected three directors nominated by AirTran Holdings, Inc., which allows AirTran to take its battle for Midwest into the boardroom. For the first time, Midwest said its board will permit AirTran Holdings to make a presentation to the Midwest Air Group board regarding AirTran’s proposal. The board noted that it has made no determination to engage in negotiations with AirTran and no date for the session has been established. Timothy Hoeksema, Midwest’s chairman and chief executive officer, said that the election of directors constitutes a definitive action by shareholders.

“While we are disappointed by today’s results, we recognize that our shareholders have spoken,” Hoeksema said. “If today’s election says anything at all, it says that our shareholders want us to listen and that is what we intend to do. The board remains fully committed to creating value for Midwest shareholders.” Joe Leonard, AirTran’s chairman and CEO, called the election results an important victory for Midwest shareholders. Meanwhile, Midwest passengers continue to log their opposition to the merger with postings on www.savethecookie.com, a site launched by Midwest response to its passengers’ calls for a way to stave off takeover.

AirTran Extends Tender Offer for Midwest Air

AirTran Extends Tender Offer for Midwest Air
Published on: June 12, 2007

AirTran Holdings, Inc. is extending its latest tender offer of $15 per share of Midwest Air Group, until midnight Aug. 10. As of the close of business on June 8, 2007, shareholders had agreed to tender more than 14.6 million shares of Midwest to Galena Acquisition Corp., a wholly owned subsidiary of AirTran, which represents 59.5 percent of all outstanding shares of Midwest Air Group, or 64.1 percent of outstanding shares that are not held by the Midwest board or management. “We are gratified by the response we are receiving from Midwest’s shareholders regarding both the tender offer and the slate of directors that we have nominated for the Midwest Board,” said Joe Leonard, AirTran Airways’ chairman and chief executive officer.

But Midwest’s management, which can block the takeover, continues to resist its unwanted suitor. Its board of directors said it continues to believe there is greater value for shareholders in the company’s long-term strategic plan than in the offer proposed by AirTran, according to Timothy Hoeksema, chairman of the board and CEO. “It is all about value,” said Hoeksema. “We believe the strategic initiatives, particularly those recently announced, will unlock value not reflected in the current share price or in the AirTran offer.” Coupled with Midwest’s product, service offering and loyal customer base, he predicted these initiatives will allow shareholders to benefit as the plan is executed.

Regarding the tender offer results, Midwest reiterated remarks previously issued, noting that the results do not have any material effect on Midwest in that no shares of Midwest have actually been purchased by AirTran as a result of the tender. Wisconsin law allows Midwest to use a poison-pill defense to stop the takeover. AirTran said it hopes that Midwest shareholders will elect new members to the board later this week who can push other members of the board to reconsider its decision. Midwest, which is distinguished by its high levels of service, has successfully rallied employees and customers to lobby against the takeover.

Delta Emerges From Bankruptcy Protection

Delta Emerges From Bankruptcy Protection
Published on: May 1, 2007

Delta Air Lines emerged from bankruptcy yesterday and unveiled its new brand, a red widget icon flying across a blue background designed to symbolize the new Delta. The airline is now seeking to position itself as a customer-focused airline. In emerging from bankruptcy, Delta pointed out that it had completed a comprehensive transformation plan one year ahead of schedule, delivering $3 billion in annual financial improvements and reported four consecutive quarters of operating profits, with $155 million in operating profit in the first quarter of 2007. To conclude the exit process, Delta closed on a $2.5 billion exit financing facility that will be used to repay the company’s $2.1 billion debtor-in-possession credit facilities led by GE Capital and American Express, to make other payments required upon exit from bankruptcy, and to increase its already strong liquidity position. The exit facility was co-led by 10 financial institutions – JP Morgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS, Barclays Capital, Royal Bank of Scotland, CIT, Credit Suisse and Calyon — and consists of an industry leading $1 billion first-lien revolving credit facility, a $600 million first-lien synthetic revolving facility, and a $900 million second-lien Term Loan B.

Midwest Airlines Board Rejects New AirTran Offer

Midwest Airlines Board Rejects New AirTran Offer
Published on: April 16, 2007

The board of directors of Midwest Air Group said on Friday that it unanimously recommended that Midwest’s shareholders reject AirTran Holdings, Inc.’s revised offer to acquire all outstanding shares of Midwest for a combination of $9 in cash and 0.5842 of a share of AirTran common stock. The board advised shareholders not to tender their shares to AirTran. It said it reached its conclusion after discussions with its legal and financial advisors and careful consideration, including a thorough evaluation of the revised AirTran offer, the various alternatives available to Midwest, and Midwest’s long-term strategic plan.

Timothy Hoeksema, chairman and CEO, said that the board determined that AirTran’s revised offer did not take into account the long-term value of Midwest’s strategic plan. He said that the board “believes that Midwest’s future holds great promise and that the best interests of all stakeholders lies in Midwest continuing to execute its plan. Midwest filed an amendment to Schedule 14D-9 with the Securities and Exchange Commission (SEC) on Friday, which sets forth the reasons for the board’s recommendation and related information. The amendment described AirTran’s revised offer as inadequate. The board said that it received an oral opinion from Goldman, Sachs & Co. on April 12, that as of that date, the revised offer was inadequate from a financial point of view to Midwest’s shareholders (other than AirTran and its affiliates). For more information, visit www.midwestairlines.com.

JetBlue Releases New Customer Bill of Rights

JetBlue Releases New Customer Bill of Rights
Published on: February 21, 2007

JetBlue Airways released a comprehensive customer promise and compensation program called “The JetBlue Customer Bill of Rights” following its admission that it suffered operational breakdowns over the past week during winter storms. The terms of its new Bill of Rights have been made retroactive to Feb. 14 to help compensate passengers who were both stranded and angered by operational inefficiencies. Under the Bill of Rights, JetBlue will notify customers of delays prior to scheduled departure, cancellations and their cause and diversions and their cause. It also promises to take the necessary action to deplane customers if an aircraft is ground-delayed for five hours.
Under this rule, JetBlue captains have discretion if the aircraft is positioned and almost ready for take-off. If a flight lands and is unable to taxi in to a gate right away, the following compensation will be made for customers: Delayed 30-60 minutes, customers receive a $25 voucher valid toward the purchase of their next JetBlue flight; delayed one-two hours, customers receive a $100 voucher; delayed two-three hours, customers receive a voucher for the full amount of their one-way fare; delayed more than four hours, customers receive a voucher for the full amount of their roundtrip. If a flight has a ground delay on departure, the following compensation applies: Delayed three-four hours, customers receive a $100 voucher; delayed more than four hours, customers receive a voucher in the full amount of the customer’s original roundtrip.

If a flight is cancelled within 12 hours of scheduled departure, and it is a situation within the control of the company (as opposed to weather or ATC delays), customers may choose a full refund or a full credit, as well as a voucher valued at the cost of their original roundtrip. If JetBlue delays a flight in a situation within the company’s control, customers can expect compensation that ranges from a $25 voucher for a one-two hour delay up to a voucher valid for the full amount of the roundtrip if delayed more than six hours.

Midwest Air Group Reports 2006 Profit

Midwest Air Group Reports $5.4 Million 2006 Profit
Published on: January 26, 2007

Midwest Air Group, operator of Midwest Airlines and Skyway Airlines d/b/a Midwest Connect, reported a full-year profit of $5.4 million in 2006, even as the airline is fighting off a hostile bid from AirTran Airways. “Our performance was very strong, resulting in our third consecutive quarterly profit and continuing the turnaround for Midwest Air Group,” said Timothy Hoeksema, the carrier’s chairman and chief executive officer. “Traffic and revenue remained strong, and we benefited from moderating fuel prices in the quarter. Clearly, our strategic plan is driving growth for the company.”

In the fourth quarter, Midwest’s operating revenue increased 17.9 percent to $168.3 million. The revenue increase reflects a 16.3 percent increase in passenger traffic due to strong customer demand in response to competitive pricing, as well as schedule and service enhancements, the company said. For the full year, operating revenue increased 27.1 percent to $664.5 million. Going forward, Hoeksema said Midwest is committed to creating long-term value while continuing to provide the superior customer service that its customers expect.

“Our long-term strategic plan provides significant opportunities to continue to improve profitability, including a 15 percent increase in capacity in 2007 and an average increase of 10 percent per year over the next three years,” he said. “And our customers will benefit from aggressive route expansion and equipment upgrades in 2007, as well as the addition of at least six new destinations and as many as 12 new routes.”