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

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August 30, 2004

Why Are the Airlines Failing?
It's difficult to find companies that have destroyed more investment capital over the past few decades than the major airlines. While it's true that they have suffered their share of, well, just plain awful luck recently, the history of failure surrounding the dominant carriers goes well beyond any particular event-driven malaise. These businesses are largely failing for two reasons. One, their antiquated structure makes it exceedingly difficult to bring costs in line with revenues. Two, they provide a commodity product in a service industry, yet overall they offer an abhorrent level of service to their customers. Motley Fool | Posted 6:30 a.m.
• Can NWA Prosper - Even With Fees? (Star-Tribune)
• Aid Has Run Out For Carriers (News & Observer)

A few short years ago, I felt as if I was the only one saying government subsidies were a bad idea. Looks as if I'm in good company now.

BA Gives Employees Free Flights
British Airways staff will be given free air tickets for enduring the stress of this month’s travel chaos - but thousands of passengers must fight for compensation. The company has offered almost all of its 17,500 operational workers two complimentary return flights each in recognition of the "additional pressure" they were under. Thousands of passengers faced travel misery at Heathrow airport last week when BA canceled more than 100 flights because of staff shortages and technical difficulties. Scotsman | Posted 6:35 a.m.

Hotels Allow Internet Check-Ins
Radisson Hotels & Resorts this week starts allowing guests to check in via the Internet up to a week before arrival. The move, soon to be followed by Hilton Hotels, marks something of a second electronic wave in the hotel industry as chains adopt high-tech lures to attract wired business travelers. The first wave — the rush to install high-speed Internet in guest rooms — is nearly complete. USA Today | Posted 6:45 a.m.

Will US Airways Outlast Fidel? - At US Airways, the future isn't plastics. It's Cuba, according to a well-respected aviation consultant. The financially troubled airline surprised many people, most especially its 28,000 employees, when it revealed plans last week to increase Caribbean and Latin American service from Fort Lauderdale Hollywood International Airport in Florida. Although it did not mention Cuba publicly, US Airways clearly is positioning itself to offer service to the once and future playground of the rich and famous as soon as President Fidel Castro leaves power, said Michael Boyd, an Evergreen, Colo.-based aviation consultant. Tribune Review | Posted 7 a.m.

Tanzania Steamed at U.S. Warning - Tanzania has strongly dismissed the US claim that Tanzania-bound tourists still face the risk of terrorist attacks, the Daily News reported on Tuesday. The country's crime rate is not as threatening as the United States has claimed and Tanzania is probably the safest country in east Africa, Tanzania's Director of Criminal Investigation (DCI) Adadi Rajab was quoted by the newspaper as saying. Xinhuanet | Posted 7:05 a.m.

United Recalls Flight Attendants - United Airlines, the world's second-largest airline, is recalling nearly 375 flight attendants to increase that work force about 2 percent as it boosts international flights and keeps its aircraft flying for more hours. The carrier, a unit of UAL Corp. that's operating under bankruptcy court protection, told employees in a daily message that 171 attendants will be called back on Oct. 18 and 200 will be asked to return Nov. 22. The attendants accepted voluntary layoffs when the company reduced its staff after the Sept. 11 attacks because of lower demand. Bloomberg | Posted 7:10 a.m.

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• Off the Record ... James Wysong's latest column, which I posted this morning, adds an interesting perspective to the recent controversy over passenger weight. What about overweight pilots? He tells the disturbing story of one pilot who was a heart attack waiting to happen. Posted 7:15 a.m. | Send us your comments.

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