Yes, Delta and Northwest are finally man and wife. The United States Department of Justice approved the marriage this week. Once the deal is consummated, Delta will become the world's largest airline. The happy couple will establish a home base in Atlanta.
Passengers will start to see evidence of the union early next year. By spring, Northwest flight attendants will don those snazzy Delta outfits designed by Richard Tyler. By summer, flight schedules and frequent flyer programs are likely to be fully merged.
However, during a honeymoon period of several months, the two airlines will continue to operate as singles, with independent websites and separate check-in areas at airports. But as the marriage develops, Northwest will lose its identity and become fully integrated into the Delta family.
The Daily Suitcase: A Travel Site Packed With News, Information and Punditry
Friday, October 31, 2008
Wednesday, October 29, 2008
Batter Up!
Talk about home field advantage. While members of the Philadelphia Phillies weathered a 40-hour World Series rain delay (which started Monday night) in the comforts of their homes, the Tampa Bay Rays were booted out of their hotel on Tuesday morning and relocated to another state. Because no Philadelphia hotel worthy of hosting the American League champions had 85 rooms available on Tuesday night, the Rays had to move 25 miles out of town. Of course, they did get to stay at the historic Hotel DuPont in Wilmington, Delaware. But the upheaval obviously didn't help, as the Phillies quickly disposed of their Florida foes when play resumed on Wednesday.
Tuesday, October 21, 2008
Europe's on Sale (and so is Australia)
In a previous post, I discussed the growing strength of the U.S. dollar against the Icelandic krona. Well, the greenback is also gaining ground in other countries. So, between off peak rates and the strengthening dollar, this winter will be the cheapest time to travel overseas in quite awhile.
Let's play the exchange game. The dollar has strengthened nearly 50 percent against the Icelandic krona since a year ago. It's gone up nearly 20 percent against the British pound during the same time period. In Romania, the dollar will buy you 15 percent more lei than a year ago. Most European countries, of course, are in the Euro zone. Since last October, the dollar has increased 10 percent in value against the Euro.
While the dollar will buy more in Europe this winter, it's still cold on the Continent. If you are hankering for a bit of sun and fun, head to Australia, where December through March is summertime. The U.S. dollar is 20 percent stronger against the Aussie dollar than one year ago, so it might be a fine time to go Down Under.
One other factor in the winter traveler's favor this winter--soft demand. Airlines, cruise operators and hotels are predicting low numbers for the upcoming quarter. To entice travelers, plenty of good deals on overseas airfares and tour packages are likely to be on offer.
Let's play the exchange game. The dollar has strengthened nearly 50 percent against the Icelandic krona since a year ago. It's gone up nearly 20 percent against the British pound during the same time period. In Romania, the dollar will buy you 15 percent more lei than a year ago. Most European countries, of course, are in the Euro zone. Since last October, the dollar has increased 10 percent in value against the Euro.
While the dollar will buy more in Europe this winter, it's still cold on the Continent. If you are hankering for a bit of sun and fun, head to Australia, where December through March is summertime. The U.S. dollar is 20 percent stronger against the Aussie dollar than one year ago, so it might be a fine time to go Down Under.
One other factor in the winter traveler's favor this winter--soft demand. Airlines, cruise operators and hotels are predicting low numbers for the upcoming quarter. To entice travelers, plenty of good deals on overseas airfares and tour packages are likely to be on offer.
Friday, October 3, 2008
Sky High Fuel Surcharges Mean Profits for Airlines
If anyone doubts that the airlines are making money on fuel surcharges, take a gander at an article on international travel in the October 3 issue of USA Today's Money section.
The article quotes aviation consultant Michael Boyd, who says at $94 a barrel, about $80,000 of fuel is consumed on a one-way flight on a Boeing 777 from Newark to Shanghai. Now, given that a 777 can carry around 400 passengers, a $200 per passenger fee would completely cover the cost of filling up. So how can a carrier possibly justify a fee upwards of $200? And why should passengers cover the entire "tankful", anyway? After all, fuel surcharges were designed to have passengers cover the extra cost of fuel, given recent price increases. So, in reality, the fee shouldn't cover the entire fuel bill--just the additional expense created during this last year of price increases.
Fuel surcharges vary (randomly) by destination. FareCompare.com has compiled a chart of average international fuel surcharges based on data from nearly 620,000 round-trip airfares between the USA and foreign cities.
According to FareCompare.com, the highest average round-trip fuel charge from the U.S. to an international destination is $500 to Tel Aviv, Israel. Next on the list is Tokyo ($474), Hong Kong ($465), Sydney ($448), Dubai ($440) and Beijing ($409). Fuel surcharges for most European destinations fall within the $330 to $360 range.
Given the discrepancies in fuel surcharges among international carriers (American's fuel surcharges vary on each route depending on flight length and competition, while Air France has a standard $165 fee and Lufthansa has a standard $105 fee on one-way flights to the U.S.), it's important to consider more than the base fee when comparing the cost of international tickets.
The article quotes aviation consultant Michael Boyd, who says at $94 a barrel, about $80,000 of fuel is consumed on a one-way flight on a Boeing 777 from Newark to Shanghai. Now, given that a 777 can carry around 400 passengers, a $200 per passenger fee would completely cover the cost of filling up. So how can a carrier possibly justify a fee upwards of $200? And why should passengers cover the entire "tankful", anyway? After all, fuel surcharges were designed to have passengers cover the extra cost of fuel, given recent price increases. So, in reality, the fee shouldn't cover the entire fuel bill--just the additional expense created during this last year of price increases.
Fuel surcharges vary (randomly) by destination. FareCompare.com has compiled a chart of average international fuel surcharges based on data from nearly 620,000 round-trip airfares between the USA and foreign cities.
According to FareCompare.com, the highest average round-trip fuel charge from the U.S. to an international destination is $500 to Tel Aviv, Israel. Next on the list is Tokyo ($474), Hong Kong ($465), Sydney ($448), Dubai ($440) and Beijing ($409). Fuel surcharges for most European destinations fall within the $330 to $360 range.
Given the discrepancies in fuel surcharges among international carriers (American's fuel surcharges vary on each route depending on flight length and competition, while Air France has a standard $165 fee and Lufthansa has a standard $105 fee on one-way flights to the U.S.), it's important to consider more than the base fee when comparing the cost of international tickets.
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