It’s Electric: United to Move Toward Air Taxis
Nope, we’re still several weeks from April Fools; this one’s real. United, the airline that gives us hits like “Newark Airport” and “Morning Fog in San Francisco” is ready spread its literal wings to be the first airline to offer air service via electric air taxis.
United announced an agreement to purchase up to 200 electric aircraft from Archer Aviation to offer a “quick, economical, and low carbon way to get to United’s hub airports and commute in dense urban environments within the next five years.” Ironically enough, five years is also when your currently delayed United Express flight from Newark to Ithaca is expected to take off.
The project jives well with United’s goal to be completely carbon neutral by 2050 as these aircraft are expected to reduce carbon emissions by as much as 47% per passenger. Archer wants the launch to be in the Hollywood neighborhood of Los Angeles, flying people to LAX. Because that’s exactly what LA needs – traffic jams in the air to go along with the gridlock on the ground.
Spirit Pokes Back at American
The public spat between Spirit and American took a new turn on Tuesday as Spirit responded to American’s recent DOT filing with a filing of its own.
In its most recent submission to the DOT, American tore Spirit a new one, addressing each one of Spirit’s complaints individually while dismissing them with vigor and gusto. Spirit fired back, matching AA’s fervor and snark, while staying focused on its main beef which continues to be over slots at the slot-controlled airports in the northeast including DCA, JFK, and LGA.
Spirit refers back to multiple past mergers and codeshares where the federal government raised concerns and/or required slot divestures for less overlap than this agreement. One it specifically references is the Delta/Continental/Northwest codeshare from 2003. While what it says is true, Spirit neglects to consider that referencing a case where two of the three airlines referenced no longer exist and that took place – checks notes – 18 years ago may not be all that analogous. A lot has changed since then, including the invention of the iPhone, internet on airplanes, and at least forty seven iterations of Eastern Airlines.
Spirit saved its best for last, accusing American and JetBlue of filing the paperwork on their alliance exactly 180 days before January 20 when a new administration would takeover DOT. Spirit says that American chose its filing day “cynically” highlighted by the fact that then Transportation Secretary Chao signed the agreement one day before she left office. Maybe AA did it, maybe they didn’t – but to think the AAirline mAAniuplated the calendar so that the agreement would be signed one day before Secretary Chao resigned as a response to the insurrection at the U.S. Capitol seems a bit much.
Delta to Offer Vaccine to All Employees
Delta Air Lines has begun offering a COVID-19 vaccine to its 75,000 employees worldwide. The airline is beginning with employees 65 and older based in Atlanta and those who find themselves in Atlanta. It plans to expand the offering as the state of Georgia makes other groups eligible.
The airline has started offering the vaccines both at the Delta Flight Museum and on Concourse C at its Atlanta hub. Both Concourse C and the flight museum have been closed since the onset of the pandemic.
The feat is less impressive compared to Etihad, which announced this week that it became the first airline to vaccinate its entire cabin staff. The airline managed to get it done, powering through the difficult logistics of… having its entire staff live in the one city and having almost full control over its staff Kudos, Etihad!.
Delta began offering vaccines on Monday and says that nearly 700 employees have received their first shot in the first two days. The airline is hopeful to expand the vaccine program to its other major hubs including Detroit, Los Angeles, New York/JFK, Salt Lake City, & Seattle.
Spirit Posts Final 2020 Fiscal Report
Spirit Airlines released its Q4 and year-end 2020 earnings report after market close on Thursday, finishing the quarter with $158 million in losses on $498.5 million revenue.
The full year saw a loss for Spirit of $507 million. The airline brought in $1.8 billion in revenue for 2020, of which $2 came from base airfares and the remaining billions from fees, buy-ups, and add-ons. The $1.8 billion figure was $70 less than projected, as a gate agent allowed a family of four to carry on two of their four bags without charging on December 27. That agent was immediately reassigned to work as a ramp agent, splitting their time between Las Vegas (summer) and Minneapolis/St. Paul (winter). Spirit did curtail costs in 2020, reducing its expenses by 22% from 2019 down to just $658 million.
The airline ends the year with $1.9 billion of unrestricted cash, cash equivalents and short-term investment securities. It plans to have a 17% drop in capacity for Q1 2021 vs Q1 2019, and $750 million in expenses. Approximately $350 million of the expenses are allotted to running the airline with the remaining $400 million being funneled to DOT objections to the pending American and JetBlue Northeast Alliance.
Delta To Debut Digital Concierge
Delta Air Lines announced its plans to debut its digital concierge, albeit not in the manner it was originally designed. The program was announced by Delta at CES 2020, in a pre-pandemic world that reminds us all of simpler times. Delta is pivoting the digital concierge to streamline requirements related to the pandemic for passengers based on where their travel is taking them.
The digital concierge, which is quite similar to United’s Travel-Ready Center, will give travelers a one-stop shop detailing what is needed for safe travel. The airline plans to offer travelers all testing and vaccine requirements for their destination and any intermediate stops. It will also list, along with test scheduling options, the ability to validate and confirm test results in the app for hassle-free travel.
Delta will also launch a pilot with CLEAR Health Pass, beginning February 18 on one daily flight from Los Angeles to Honolulu. Participation is voluntary, and Delta will use the information from those who opt-in to better determine what steps it needs to take to expedite passengers’ re-entry into the United States based on current health guidelines.
Airline Potpourri
- Air France is reducing its frequency to Papeete (PPT) to once-weekly for the rest of February with a stop in Vancouver to avoid US health guidelines. The airline also plans to upgauge its daily service to Tel Aviv to an A330-200 on February 20. It will increase to 2x daily on June 13.
- Burundi Airlines was announced as the new flag carrier of
LuxembourgBurundi, replacing Air Burundi which has been defunct since 2008. - Cathay Pacific is suspending service to nine cities worldwide effective February 20. Suspensions include three of its four cities served in Australia, leaving just 5x weekly flights to Sydney. The airline will also suspend flying to two North American destinations: San Francisco and Vancouver.
- Flair Airlines, the Canadian ULCC and 18-time heavyweight champion of the world, is expanding with eight new destinations across Canada this summer. It will begin service to Ottawa (YOW) and three others in May with four more destinations to follow later in the summer.
- JSX is adding a “pop-up” flight for potential spring breakers. It will operate between Dallas/Love and Cabo San Lucas (SJD) from March 11-14 and again April 1-5. When asked for comment, Magnitude said only, “Pop, pop!”
- LATAM Brasil operated a cargo flight to China, delivering materials to a Chinese vaccine manufacturer. The flight was the first between Brazil and China – cargo or passenger — since July.
- Lufthansa Group has extended its suspension of change fees on all flights. Travelers may make unlimited changes through May 31, and then one free change after that date.
- Virgin Australia matched rival Qantas’s policy of unlimited flight changes through January 2022 for itineraries booked by the end of April 2021.
Andrew’s Moment of Levity
A slice of apple pie is $2.50 in Jamaica and $3.00 in the Bahamas. These are the pie rates of the Caribbean.