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E L L I O T T ' S TRAVEL NOTES
Travel news, opinion and analysis

August 24, 2004

Thousands of BA Passengers Stuck
Thousands of British Airways passengers have been stranded by canceled flights and lengthy delays at Heathrow Airport because of staff shortages and technical problems at the airline. British Airways canceled 10 flights to short-haul destinations in Britain and Europe on Tuesday -- a day after the airline scrapped 25 flights to the United States and other European destinations. The airline, which usually carries around 100,000 passengers throughout the day, said there would also be delays to short-haul flights that have not been canceled. AP | Posted 6:30 a.m.
• British Airways Reaches Pay Deal (Bloomberg)
• 'Pure Pandemonium' at Airport (Standard)

Not only is this a popular time for vacations in the U.S., but it's also when a lot of Britons take off on holiday. Good thing the BA strike was averted, otherwise this could have been much, much worse.

US Airways Pilot Negotiations Collapse
US Airways' pilots union announced that negotiations on pay and benefit cuts broke down yesterday, prompting the carrier's executives to ask that their latest proposal be taken directly to the union's leadership for a vote. The collapse in talks underscores the friction between management and workers as US Airways Group Inc. seeks to secure $800 million in cuts by the end of September to stave off its second bankruptcy filing in two years. But bringing the proposal to the union's executive council is likely to accelerate the contract process, said Standard & Poor's analyst Philip Baggaley. "The move should bring the negotiations closer to a conclusion one way or another," Baggaley said. Washington Post | Posted 6:35 a.m.

A Solution to Airlines' Woes
These are dark days for the airline industry, particularly for the traditional, so-called legacy carriers: Delta, American Airlines, US Airways, United, Continental, and Northwest. All are well along the way to posting huge losses this year. One, United, is in bankruptcy proceedings, and several more may be headed that way. Between record fuel costs, an uncertain economy, and a lingering post-September 11 travel slowdown made worse by the SARS disease scare in Asia and Canada, the industry hasn't been able to catch a break. BusinessWeek | Posted 6:45 a.m.

Another Price-Gouging Suit in Florida Hurricane - A Sarasota hotel is the target of a price-gouging lawsuit filed by Florida Attorney General Charlie Crist today. Crist is charging that the Airport Inn, located at 8440 N. Tamiami Trail, with improperly inflating prices to consumers seeking emergency shelter from Hurricane Charley. The complaint accuses the hotel of price gouging and deceptive and unfair trade practices for charging significantly higher prices than its regular rates as the hurricane threatened Florida. Business Journal | Posted 7 a.m.

ATA Selling Off Assets to Avoid Chapter 11 - Consolidation of the overcrowded US low-cost airline sector could begin as ATA, the country's 10th largest carrier, prepares to sell its most valuable assets to avert bankruptcy. Seabury Group, a boutique investment bank that specializes in transportation, has been appointed to find buyers for ATA's operations at Chicago's Midway airport, where it accounts for about 40 per cent of all departures. ATA is seeking buyers for its leases on 14 airport gates and also wants to transfer the leases on its more than 30 Boeing 737-800 aircraft, according to several investment bankers. FT | Posted 7:05 a.m.

Stanley Cup Lost in Luggage Limbo - The Stanley Cup spent Sunday night in luggage limbo. The fabled trophy disappeared during an Air Canada flight from Vancouver to Fort St. John over the weekend when Vancouver airline officials removed it from the plane because of weight restrictions. Walter Neubrand, keeper of the Cup, was delivering the trophy to Jake Goertzen, head scout for the Stanley Cup champion Tampa Bay Lightning. AP | Posted 7:10 a.m.

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• Off the Record ... the TSA is introducing new lines for kids at several airports this fall. I got to take an early look at one of the lines that had been set up in Orlando and filed a report for the NPR show Day to Day. Posted 7:15 a.m. | Send us your comments.

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