The pact between Air France – KLM, Delta, and Alitalia to coordinate their operations for transatlantic routes may have been having a negative impact on the rates that the passengers have to pay and the services that they are receiving. The EU Regulators intend to find out if the absence of competition for these transatlantic routes has left passengers at the mercy of the airlines and is actually hurting them.  

The pact has enabled these airlines to not only share revenues but also losses that may have been incurred for the transatlantic routes. This type of agreement has much more benefit to the airlines than experiencing mergers. Mergers between airlines are costly and such a pact is much better than having two or more airlines merge.

The rising cost of aircraft fuel is one of the reasons why airlines have gone into a pact like this. In order to minimize losses, airlines agree to instead of competing with each other, they cooperate with one another by sharing almost everything on the transatlantic routes; this includes ticket sales, revenues and losses.

Unfortunately, removing competition from the picture may mean that the rates may no longer competitive as competition no longer exists.  The services that these airlines provide may have also been negatively affected. This is the reason why EU Regulators are going to find out if such agreements are actually hurting passengers on the US-EU routes. The Regulators are attempting to find out if such joint ventures between airlines are in breach of EU antitrust rules.

A spokesperson for Delta said that the investigation would only cover a small number of routes and that any concerns would be resolved. Air France – KLM expressed that all of the airlines being investigated concerning the matter would fully cooperate with the Commission.

On the other hand, US Regulators have given the members of the alliances antitrust immunity to further intensify cooperation. More alliances have started requesting antitrust immunity as well for the same reasons.

Lawyers in the aviation industry do not expect that the Brussels lead commission will disband any of the alliances but may require more concessions. The investigation into this alliance could spark investigations into other alliances as well.

A spokesperson for the commission said “The goal is to ensure that this tie-up does not harm passengers on the EU-US routes”.

The increasing cost of aircraft fuel is taking its toll on the airline industry. Airlines are finding ways to stay in the skies by forging alliances. However, such alliances should not harm passengers.

Ground breaking ceremonies to formally start the first phase of the three-phase project was held recently. The first phase of the project involves the creation of a new Terminal B concourse that will accommodate the regional jet operations of United Airlines.

The new concourse will cost $160 million. The facility will take up 225,000 square feet and will provide passengers with a better airport experience. The new Terminal B south concourse will feature modern gate lounges, concessions, as well as modern restroom facilities.

Passengers going to and from the new concourse will walk through a 95 foot wide bridge with concessions and other facilities available. The concourse will be installed with 28 foot high, floor to ceiling, glass windows that will provide an excellent view of the tarmac and airport operations. Travellers will be able to view the movements of the aircrafts around the airport.

The Terminal B Phase one project is scheduled to be completed in 2013. The remaining phases that include construction of a new concourse and development of the Terminal B lobby will be completed by 2023 or sooner according to demand.

The remaining phases will see the redevelopment of the Terminal B lobby and the baggage claim areas. A new international concourse is also planned to be built. The new concourse will be able to accommodate international and regional flights. The Federal Inspection Services facility will also be upgraded. It will also feature an assortment of modernized facilities such as baggage claim areas and other enhancements that are focused on providing quality services to travellers.

The new Terminal B concourse will be focused on energy efficient practices as directed by the Leadership in Energy and Environmental Design (LEED). This award body recognizes attempts to keep modern buildings environmentally friendly.

Mayor of Houston, Annise Parker, was present at the ground breaking ceremony. She said that her number one focus over the next two years is to provide jobs to Houstonians.  The phase one redevelopment of George Bush Airport is the first delivery of her promise of jobs to Houstonians. “Houston will thrive, as our global gateway expands to include more flights and greater access to business connections around the world,” she said.

United Airlines also views George Bush Airport as one of their major hubs. Pete McDonald, COO and VP of United Airlines said that the airport is one of the largest hubs and a vital international gateway in United’s network. He also said that “this investment in the Houston hub will allow us to accommodate more customers and more aircraft types, provide new amenities for travellers and improve efficiencies for the new United.”

The George Bush Intercontinental Airport is the 7th busiest airport in America. The airport caters to more than 49 million passengers and 17 airlines a year. Flights departing from the airport have 170 destinations worldwide.

In order to offset the increase in higher fuel costs, Delta had to increase airfare and decrease flights so that it would match the demand. This strategy helped them post earnings in the fourth quarter. As a result of limiting their flights, Delta had lower fuel costs compared to the same period of last year.

Southwest Airlines also had to implement a similar strategy and ended up increasing their earnings for the fourth quarter. The airlines’ fuel and oil cost was higher than it was for the same period last year. The average fares increased by 10% and passenger unit revenue increased by 8.2%. The demand for air travel did not weaken during the final quarter and this helped the airlines surpass their targets.

JetBlue experienced stronger profits for the fourth quarter and this was also due to increasing their fares. JetBlue is expecting to continue seeing good earnings at least for the first half of this year.

United Continental also saw higher-than-expected fourth quarter earnings. The airlines also experienced an increase in their fuel expenditures for the last quarter. Fuel cost the airlines $3.1 billion for that quarter, a significant increase for the amount it paid during the same quarter of last year.

While some airlines were posting profits for the 4th Quarter of last year, US Airways posted lower Q4 profits as it experienced a 30% jump in fuel expenditures. The airlines had to pay $1.2 billion more than the amount they paid for fuel during the same period of last year.

The airline industry has only started to recover from the beating it experienced during the last decade. Many airlines have had to close their doors and hang-up their wings. Some airlines had to undergo mergers in order to survive.

Even though the nation is continuing to experience economic difficulties the demand for air travel did not seem to decrease for some airlines. For airlines that experienced a decrease in demand, the strategy to decrease their flights to match the demand paid off enabling them to post stronger earnings.

The biggest hurdle to a full recovery of the airline industry is the rise in aircraft fuel prices. Airlines across the globe have been struggling to cope with higher fuel prices. Adding to this is the weak economy that the US has been experiencing for quite some time. However, as long as the demand for air travel does not go down to levels where airlines can no longer justify their flights, the airline industry will still hopefully continue its recovery.  The higher than expected earning of some airlines during the fourth quarter of last year gives hope to the airline industry.

The EMAS installed at both ends of the runways of Groton New London Airport is one of only 67 installed systems in the world. The system has a 100% success record and is a huge step in making the airport safer for passengers.

According to Zodiac Aerospace Engineered Arresting Systems Corporation, manufacturer of the EMAS, the system is made up of cellular cement material that is designed to crush under the weight of an aircraft should it overshoot a runway. The system will be able to bring the aircraft to a safe controlled stop.

With the EMAS, an aircraft is decelerated controllably thereby minimizing or preventing injury to passengers and damage to the aircraft. In an emergency, the system will not prevent emergency rescue vehicles from gaining access to the aircraft. Engineered Arresting Systems Corporation stated that “winter weather conditions do not affect the system’s performance and snow can easily be removed.”

The EMAS costs $9 million to be installed at the Groton-New London airport and most of the funding for the installation of the EMAS came from the Federal Aviation Administration (FAA). $790,000 was contributed by the state.

For years the FAA has pushed for airports to have a 1,000 foot runway safety area (RSA) at the ends of each runway in case an aircraft overshoots a landing. However, this is not possible for some airports and the EMAS is the best possible alternative.

Should an aircraft overshoot a runway at the Groton-New London airport, the EMAS will prevent the aircraft from plunging straight into the Poquonnock River at the south of the runway, and Bakers Cove at the north. According to Airport Manager Catherine Young “safety is the No. 1 concern.” “The EMAS system will make it easier for emergency vehicles to access an aircraft,” she said.

Currently the FAA has had an EMAS systems installed in 36 airports in the United States. Should an aircraft damage the cellular cement blocks, the blocks will need to be replaced once the aircraft is removed. The runway can still continue to be used under the guidelines of the FAA.

One event that proves that the EMAS system can safely stop an aircraft happened on November 03, 2011. An aircraft overshot one of runways at Key West International Airport and was stopped by the EMAS system with minimal damage. Another aircraft also overshot another end of the runway a few days earlier. That end did not have an EMAS system installed. The aircraft was able to safely stop but incurred heavy damages. 

With the new EMAS system installed at the ends of the major runway of Groton-New London Airport, passengers and crew of airplanes are assured that the airport has made their safety a number one priority.

In order to offset the increase in higher fuel costs, Delta had to increase airfare and decrease flights so that it would match the demand. This strategy helped them post earnings in the fourth quarter. As a result of limiting their flights, Delta had lower fuel costs compared to the same period of last year.

Southwest Airlines also had to implement a similar strategy and ended up increasing their earnings for the fourth quarter. The airlines’ fuel and oil cost was higher than it was for the same period last year. The average fares increased by 10% and passenger unit revenue increased by 8.2%. The demand for air travel did not weaken during the final quarter and this helped the airlines surpass their targets.

JetBlue experienced stronger profits for the fourth quarter and this was also due to increasing their fares. JetBlue is expecting to continue seeing good earnings at least for the first half of this year.

United Continental also saw higher-than-expected fourth quarter earnings. The airlines also experienced an increase in their fuel expenditures for the last quarter. Fuel cost the airlines $3.1 billion for that quarter, a significant increase for the amount it paid during the same quarter of last year.

While some airlines were posting profits for the 4th Quarter of last year, US Airways posted lower Q4 profits as it experienced a 30% jump in fuel expenditures. The airlines had to pay $1.2 billion more than the amount they paid for fuel during the same period of last year.

The airline industry has only started to recover from the beating it experienced during the last decade. Many airlines have had to close their doors and hang-up their wings. Some airlines had to undergo mergers in order to survive.

Even though the nation is continuing to experience economic difficulties the demand for air travel did not seem to decrease for some airlines. For airlines that experienced a decrease in demand, the strategy to decrease their flights to match the demand paid off enabling them to post stronger earnings.

The biggest hurdle to a full recovery of the airline industry is the rise in aircraft fuel prices. Airlines across the globe have been struggling to cope with higher fuel prices. Adding to this is the weak economy that the US has been experiencing for quite some time. However, as long as the demand for air travel does not go down to levels where airlines can no longer justify their flights, the airline industry will still hopefully continue its recovery.  The higher than expected earning of some airlines during the fourth quarter of last year gives hope to the airline industry.

The pact between Air France – KLM, Delta, and Alitalia to coordinate their operations for transatlantic routes may have been having a negative impact on the rates that the passengers have to pay and the services that they are receiving. The EU Regulators intend to find out if the absence of competition for these transatlantic routes has left passengers at the mercy of the airlines and is actually hurting them.  

The pact has enabled these airlines to not only share revenues but also losses that may have been incurred for the transatlantic routes. This type of agreement has much more benefit to the airlines than experiencing mergers. Mergers between airlines are costly and such a pact is much better than having two or more airlines merge.

The rising cost of aircraft fuel is one of the reasons why airlines have gone into a pact like this. In order to minimize losses, airlines agree to instead of competing with each other, they cooperate with one another by sharing almost everything on the transatlantic routes; this includes ticket sales, revenues and losses.

Unfortunately, removing competition from the picture may mean that the rates may no longer competitive as competition no longer exists.  The services that these airlines provide may have also been negatively affected. This is the reason why EU Regulators are going to find out if such agreements are actually hurting passengers on the US-EU routes. The Regulators are attempting to find out if such joint ventures between airlines are in breach of EU antitrust rules.

A spokesperson for Delta said that the investigation would only cover a small number of routes and that any concerns would be resolved. Air France – KLM expressed that all of the airlines being investigated concerning the matter would fully cooperate with the Commission.

On the other hand, US Regulators have given the members of the alliances antitrust immunity to further intensify cooperation. More alliances have started requesting antitrust immunity as well for the same reasons.

Lawyers in the aviation industry do not expect that the Brussels lead commission will disband any of the alliances but may require more concessions. The investigation into this alliance could spark investigations into other alliances as well.

A spokesperson for the commission said “The goal is to ensure that this tie-up does not harm passengers on the EU-US routes”.

The increasing cost of aircraft fuel is taking its toll on the airline industry. Airlines are finding ways to stay in the skies by forging alliances. However, such alliances should not harm passengers.

Cebu Pacific Airlines has the reputation of providing some of the lowest fares in Asia. It flies to 34 domestic locations and 19 short haul international destinations in Asia. In November 2001, the budget carrier offered flights from the Philippines to Kuala Lumpur, Macau, Shanghai, Hong Kong, Ho Chi Minh, Jakarta, Bangkok, Taipei, Busan, Kota Kinabalu, Osaka, Seoul, and Guangzhou.

The budget carrier is also responsible for the increase of passengers to and from Hong Kong and other international destinations because of its low airfares. The company intends to use the same strategy when it launches it long haul flights to the US, Europe, Australia, and the Middle East.

The carrier will provide the lowest possible airfares on its long haul flights. By leasing the Airbus A330-300 aircrafts, Cebu Pacific expects to be able to provide a fare that is 35% lower than the fares provided by other carriers. The company also provides promos and during these times the fares can be lower by around 80%.

The Airbus A330-300 has a flight range of 11 hours which makes it ideal for providing long-haul non-stop flights to these destinations. “We are exploring cities where large Filipino communities reside…” said Lance Gokongwei, President and CEO of Cebu Pacific Airlines.

At the moment, the company has not announced the particular cities in US, Europe, Middle East & Australia that will be the airlines’ long-haul destinations. In its current domestic and international operations, the budget carrier flies more routes than the country’s flag carrier, Philippine Airlines.

Between 2012 and 2021, the budget airlines plans to lease an additional 23 A320 and 30 A321neo aircrafts to increase the number of flights it can provide to international destinations.

Cebu Pacific currently operates 37 aircrafts. It has 10 Airbus A319, 19 A320s, and 8 ATR-72 500 aircrafts with an age of approximately 3.6 years. It is one of the youngest fleets in Asia. By offering budget flights from the Philippines to international destinations such as the US, Cebu Pacific is expected to increase trade, tourism, and foreign investments in the Philippines.

With a budget carrier that can provide long haul non-stop flights, Filipinos and foreign nationals who visit the country but have to rely on connecting flights will enjoy the ability to fly non-stop to and from the Philippines.

The Philippines has a large number of citizens who work overseas and have to limit their travel home because of the high cost of airline seats. The budget carrier is expected to tap into this market in order to increase the number of Filipinos and foreign nationals travelling to the country. The Philippines is also a popular tourist destination in Asia and the low airfares that the company offers will give tourism a boost.

Since the merger with Continental Airlines, United Airlines now operates a wide range of aircrafts, the airlines has the flexibility of placing a particular aircraft that will meet market demand.

The merger allowed the airline to provide new international routes to Mexico, Lagos, Montreal, Nigeria, Haiti, Shanghai, Stuttgart, and Port-au-Prince. The airline also started routes from its hub in Tokyo to Hong Kong; and from its hub in Guam to Okinawa, Japan.

Whether the demand for a particular route is large or small, the airline has the right aircraft to service that route efficiently. Some of the new routes that United announced are seasonal, while the others will operate all year around.

Dulles – Honolulu

The first route announced is a daily non-stop flight from Dulles Airport to Honolulu, Hawaii. This will be the only non-stop flight that will service this route. The service will start on June 7 and will last all year. United Airlines Boeing 767-400 aircrafts are to be used.

United Airlines is the largest carrier to service these two points and connects Hawaii with 8 other mainland cities. United also provides flights from Honolulu to Tokyo, Guam and Majuro.

Denver – Fairbanks, Alaska

Fairbanks is a popular destination as it is the door to Denali National Park. Starting June 7, United will provide flights from its hub in Denver direct to Fairbanks. The flights will continue on until August 27. Boeing 737-800 aircrafts will be used and these flights will complement existing flights to Anchorage from United’s hubs in Denver, Seattle, San Francisco, Houston, and Chicago.

Houston – South Dakota

Starting June 7 up to August 27, United Express will offer daily service from Bush Intercontinental in Houston, to Rapid City, South Dakota. ExpressJet will provide the service using its ERJ-145 aircrafts.

United has flights from its hubs at Denver and Chicago going to Rapid City.

Houston/San Francisco – Wyoming

From June 8 to August 27, United will fly twice weekly flights from its Houston hub to Jackson Hole, Wyoming. Boeing 757 aircrafts will be used in these flights.

From July 1 to August 27, United Express will fly daily from San Francisco to Wyoming using their Bombardier CR7 aircrafts flown by SkyWest Airlines.

United currently service this route from its hubs in Denver, Chicago and Los Angeles.

United Airlines previously announced its new international routes that will begin this spring. It will fly from New York/ Newark to Buenos Aires; from Washington Dulles to Manchester, UK; and from Washington/Dulles to Dublin, Ireland.

With the announcement of the new routes, United Airlines will be able to provide the most number of domestic flights.  The seasonal flight additions aim at taking tourists to popular destinations in Canada and inside the US.  The routes were chosen to provide tourists with the quickest way to get to their destinations and back.

In the last few years we saw the merger of United Airlines and Continental Airlines. The product, United-Continental Airlines, did exceedingly well last year posting a whole year net profit of $840 million. United is still recovering from losses it had incurred due to the merger with Continental.

One of the reasons why United was able to end the year on a positive note was due to its decision to cut the number of flights and increase their airfares. The strategy paid-off and the airline is well on its way to recovery. It is expecting to see a profitable 2012 and to continue being the top US airline company.

Ever since Delta Airlines bought Northwest Airlines, the company has been doing well despite the challenges of the past years. For the fourth quarter of last year, Delta Airlines posted a profit of $425 million. In order to combat increasing fuel prices and less demands, Delta had to cut down the number of flights and increase the amount of ticket prices as well. The strategy also paid-off for Delta and shares of the company rose after the announcement of their Q4 earnings.

One airline that did not do particularly good over the past years is American Airlines. The airline filed for bankruptcy protection last November and is currently undergoing restructuring and hopes that it will emerge as a more profitable airline. There are talks that American Airlines may undergo a merger with one of its competitors. US Airways has already confirmed that it is interested in exploring a deal with American Airlines.

A merger between US Airways and American Airlines will create an airline that is almost the size of its major competitors.

What the airlines have done in the past three years have made the industry seem to be a lot more stable than it has been in the past. “Airlines seem to much more stable than I can remember in decades,” said William S. Welbar, a research engineer with MIT’s International Center for Air Transportation. “Consolidation is having a significant impact on pricing, no doubt…”

With the continuing rise of aircraft fuel prices, there is still hope for the airlines to perform well in 2012. Some routes may have been unprofitable in the past and the airlines have learned to give out these routes and search for new routes that will give them profit. Mergers have enabled the airlines to become more flexible so that they can offer routes using aircrafts that are more efficient in terms of handling the demand.

The 41 B757-200s operate between Washington/Dulles to Amsterdam and Paris. They also operate between New York/Newark to major destinations like Amsterdam, Barcelona, London, Madrid, Paris, Frankfurt, Berlin, Glasgow, Copenhagen, Dublin, and other major cities in Europe.

United’s B757-200s now have larger video screens in Economy. The premium cabins have flatbed seats with audio and video on demand.

United’s 23 B747-400s; 21 B767-300s; and 22 B777-200s already have Economy Plus and premium cabins. 1 B767-400 has already been modified with Economy Plus and premium cabins while the other 11 767-400 and 14 767-300 are yet to undergo modification.

With the modification of United’s B757-200 aircrafts, the airline now has the largest number of large legroom economy seats in the industry. The airlines will now have Economy Plus seats on 400 mainline aircrafts and 150 regional jets. Economy Plus seats have been offered by United since 1999.

United is also planning to modify its fleet of Airbus aircrafts. The overhead bins of these aircrafts will be expanded to accommodate more carry-on luggage.

United Airlines also plans to install satellite enabled inflight internet service on all its passenger aircrafts by the middle of this year.

Passengers who have premium status MileagePlus and One Pass frequent flyer programs can confirm complementary Economy Plus seats when available. Passengers who wish to purchase Economy Plus seats online may do so at United.com or Continental.com. The seats may also be purchased from agents or directly from the airport.

United Airlines & Continental Airlines fly approximately 5,656 flights to 376 destinations on a daily basis. They are also a member of the STAR Alliance that has 21,000 flights to 1,290 destinations daily.

One of the reasons why the B757-200s were modified with Economy Plus seats is that the aircrafts have been popularly used on routes that did not have large demands for single flights. It was not economical to use larger aircrafts on these flights. Instead, United can offer 2 flights to some destinations daily, instead of one large flight.

United’s customers who have enjoyed the Economy Plus seats on its other aircrafts will continue to enjoy these seats on its fleet of Boeing 757-200s.

Passenger comfort and services continue to be a priority of United & Continental airlines. The airlines not only provide more comfort by modifying its aircrafts, but also ensure that passengers have more flight options during times when bad weather is expected. The weather was not so good the past weeks so United offered its customers a way to quickly change their reservations without having to pay change fees.

United Airlines & Continental Airlines’ hubs are at Cleveland, Denver, Chicag, Newark Liberty, San Francisco, Houston, Guam, Washington D.C., and Tokyo. The company employs over 80,000 employees across America and overseas.