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How can US airlines make money from JFK to LAX (or SFO) – bailout is around the corner!

by on Mar.16, 2009, under Airlines

There are four airlines (American, Delta, United, Virgin) that operate nonstop flights between New York JFK and Los Angeles LAX. Each airline has six round trip flights per day out of each airport. This means there are 24 flights per day from JFK to LAX. Assuming each flight can carry around 200 passengers which means there are 4,800 available seats from JFK to LAX. Do we really need that many flights each day between the two cities?

The number gets bigger if you include the Greater NYC and Los Angeles areas. Continental which flies out of Newark has about eight nonstops to LAX, Burbank and Long Beach. Jetblue has four nonstops from JFK to Long Beach and Burbank. This means there are 36 flights a day with 7,200 available seats everyday from the Greater NYC to Los Angeles area.

The among of flights between the two metro areas are way too excessive. This is one of many excess and waste we have in America which is part of the reason we are in a recession. Just like having too many Starbucks on one street, too many Citibanks in a two block radius, we have too many airlines flying half empty planes coast to coast. I can see the demand for the flights during peak travel season and peak travel days such as Mondays, Thursdays, Fridays and Sundays. I highly doubt the Tuesday, Wednesday and Saturday flights are full.

For the record, the same airlines have similar among of flights between the Greater New York area and the Bay area (San Francisco, Oakland and San Jose). Also keep in mine that my statistics are only for NON-STOP flights. There are 200 more options if you decide to connect or use multiple carriers. Below is a simple search result from Kayak with a three week advance purchase search:

Kayak Search Result (JFK-LAX)

Kayak Search Result (JFK-LAX)

As a frequent coast to coast traveler, I have been on many half empty plane for the past month flying out on Monday mornings and Thursday evenings (which are peak travel times). Perhaps this is why my round trip tickets has not been more than $400 when I bought it 24 hours before the flight. This week’s round trip JFK/LAX ticket was $210 which was purchased 5 days in advanced. Competition driving prices down is capitalism at its best. I have benefited as a consumer. However we all should know that these airlines aren’t money on these flights. Here’s a link to a WSJ article (March 12, 2009) about fuel-hedging loses are impacting Cathay, Delta, etc. Eventually the airlines will go to the government to ask for money.

Government needs to step in to manage the airline industry or we will see another bail out request situation – which already happened once if you recalled post September 11. The previous bail out also drove every single major airline to bankruptcy. I may sound like a socialist but I rather be a socialist than paying for it like we are funding Wall Street and Detroit. I don’t want President Obama the US to appoint me as the Airline Czar to manage the bailout funds when he decides to distribute funds for airline failures. The airline industry needs government intervention now.

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United is a thankless carrier

by on Mar.12, 2009, under Airlines

I have been at least a Premier Executive for United since 1998 – was Premier Exec 1K four times. After 11 years of being a Premier Executive, I was about 8,000 miles short of making status for 2009. Instead of downgrading me from Premier Exec to Premier (or even the ghetto Premier Associate status), UAL sent me an email telling me how I can buy 8,000 more miles to be a Premier member again.

What ever happened to customer loyalty or even customer retention in this down economy? Perhaps this is why I have switched my allegiance to other airlines. There’s only so much abuse you can take from an airline when they show you no loyalty or service. UAL needs to learn from Marriott – look at Statusmonger’s post from earlier this year.

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Delta needs to better communicate its JFK to LAX flights depart from Terminal 4

by on Mar.10, 2009, under Airlines

I finally took a Delta flight from JFK to LAX since Delta’s announcement of all LAX flights departing out of Terminal 4 as opposed to the normal Terminal 2 and 3 gates. I found my experience a bit confusing for the following reasons:

1.  Poor Pre-Flight Communications – Prior to my flight to LAX, Delta did not notify that my JFK to LAX flight was departing from Terminal 4. If I was a first time Delta flyer (or anyone without a Delta Medallion profile), I would not have received the original Delta email telling me that all LAX flights were leaving from JFK’s Terminal 4 (or for some, read my previous post on Triangle Trip). Furthermore, I could have easily forgotten or never read the email.

2.  Delta’s website lack information – On Delta.com’s flight status page, only the gate information was provided (Gate 22). Gate 22 resides in Terminal 4 was no where to be found. Delta is wrong to assume its passengers know where Gate 22 is at JFK. Regardless if I was a frequent flyer or a novice, there is no way I would have known to go to Terminal 4 for Gate B22. There is actually a Gate 22 at Terminal 2 where most of Delta departure gates are located. As a matter of fact, I don’t recall Delta displaying Terminal information for any its JFK flights which was somewhat OK since Terminal 2 and 3 are linked. Regardless, the website does not provide adequate information to its travelers.

3.  Lack of signage outside the airport (JFK) – On my way to JFK Airport, the JFK Expressway does not have any signs stating Delta has departing flights from Terminal 4. The lack of signage led to my limo driver asking me several times if he was supposed to drop me off at Terminal 4 instead of Terminal 2 or 3. Delta should work with the Port of Authority of NY & NJ to address this issue ASAP.

4.  Poor signage inside the airport (JFK) – Once I arrived into Terminal 4, I do not see Delta checkin agents/kiosks or any signs that tells me where Delta’s located. I can clearly locate ticketing/checkin counters of other airlines such as TAM, Virgin America, etc. Again, Delta needs to work with JFK airport management to address this issue.

Due to the lack of pre-flight communication, inadequate information on the website and signage at JFK, I could have missed my JFK to LAX flight because I would have ended up at Terminal 2 or 3. Taking the AirTrain from Terminal 2/3 to 4 could take 20 minutes as the connection between Terminal 2 and 3 and the AirTrain station can be quite challenging, especially those passengers with bags.

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