United Remains the Problem Child of the U.S. Airline IndustryBusiness WeekApril 24th, 2014http://www.businessweek.com/articles/2014-04-24/united-remains-the-ugly-stepchild-of-the-u-dot-s-dot-airline-industry
- Summary: United was one of the few airlines that did not emerge from the winter quarter with profits. Mainly due to the airlines canceling about 35,000 flights due to weather equating to 7 days out of the 90 days of the quarter were not flown. The company has created an efficiency effort called Project Equality to lessen their costs by 250 to 300 million this year. They include focusing on revenue management, airline seating, better efficiency with hub travel, and better efficiency with aircraft size and route.
- Relevance: Being on the west coast, weather is not as much of a factor, but we should keep these strategies in mind to lower costs to increase profit.
Travelers Love Airlines- Except for the Flying
NBC News
April 21st, 2014
http://www.nbcnews.com/business/travel/travelers-love-airlines-except-flying-n86131
- Summary: In the latest customer index satisfaction report, consumers gave the airline industry overall good marks, however the drop off is the actual flight. Most companies saw an increase in their satisfaction reports, but JetBlue and Southwest saw a decrease. The report believes that is due to the rise in ticket prices. Both companies have a motto of low cost travel, they get dissatisfaction when the companies' ticket prices are expensive.
- Relevance: Make sure to keep this in mind if ticket prices need to rise due to costs.
Making Jet Fuel Out of Garbage
Environment and Energy Publishing
April 25th, 2014
http://www.eenews.net/stories/1059998443
- Summary: British Airways and Solena Fuels have partnered together to make 50,000 metric tons of jet fuel from municipal solid waste per year. This is the first project in the world to convert trash to fuel. Recent studies have shown that this fuel could reduce greenhouse gases by 95 percent compared to those emitted by fossil fuels. However, this technology is quite expensive. About 600 million dollars will go to developing Solena Fuels technology. British Airways plans to fly from JFK airport to Heathrow in 2017 fueled with this trash fuel if everything works out.
- Relevance: Look into purchasing this fuel to appeal to green aware consumers.
Company Camera: Portland Bolt and Manufacturing Co.
Oregonian
April 30th, 2014
http://www.oregonlive.com/business/index.ssf/2014/04/company_camera_portland_bolt_a.html#incart_river
- Summary: A company profile that is based in Portland, Oregon, done by the Oregonian.
- Relevance: Something that our PR company needs to pitch to the Oregonian to get the news out about Air Pacific.
Frontier Airlines Now Charging for Carry On Bags
KGW.com
April 28th, 2014
http://www.kgw.com/news/business/256993071.html
- Summary: Frontier has decided to lower their tickets prices by 12 percent, but with that comes fee prices like charging to carry on bags, or certain seat assignments.
- Relevance: No word on whether consumers like fee- dependent airlines in comparison to the big four, but Air Pacific should look into becoming a low cost airline without fees to stand out.