JetBlue Eliminates Carry-On for Basic Economy Customers
JetBlue Airways announced a shift in policy from the JetBlue we all grew to know and love, eliminating change fees for most passengers (yay!), and removing carry-on bags for Basic Economy passengers. (boo!)
By forcing those with the cheapest tickets to pay to check their bags, the airline is introducing an overhead bin space guarantee, offering a $25 credit for passengers forced to check their carry-on while flying on a Blue fare or higher.
Like other U.S. airlines, JetBlue will now allow anyone booked on a non-basic itinerary to make changes without a fee. The airline did take the more passenger-friendly choice on fare differences, where a higher fare will require payment to make up the difference, but if the fare has dropped, a credit will be issued for the difference (looking at you, United).
Basic Economy fliers will be charged a change fee at a rate of $100 for domestic routes and those to the Caribbean, Mexico, & Central America. All other destinations will incur a $200 change fee in addition to having your name and address announced prior to boarding as a Basic Economy passenger.
Aeromexico Files Year-End Fiscal Report
Grupo Aeromexico (for those who do not speak Spanish, that translates to Aeromexico Group) posted a net loss of $2.1 billion for 2020, a significant loss that sounds much better than when it’s calculated in pesos, as it converts to a loss of a cool $42.893 billion pesos.
Aeromexico’s revenues for 2020 declined down to $1.4 billion, a 58.5% drop from 2019. The airline was forced to file for Chapter 11 bankruptcy in the United States, and it continues to sort through the process at this time. Costs dropped 34.4% in 2020, aided by the bankruptcy process, down to just $1.7 billion. Cost savings included its ability to reject and return leased aircraft through Chapter 11, a reduction of its workforce through voluntary leave and involuntary furlough, and renegotiation with several union contracts.
The airline closed the year with $399 million in cash liquidity, access to $625 million debtor-in-possession (DIP) financing through the U.S. bankruptcy court, and 23 gallons of tequila. It mostly kept its fleet in tact throughout the pandemic, closing the year with 106 aircraft including six B737 MAX aircraft and an unpaid invoice from the U.S. government in 2018 for a portion of the unfinished border wall.
Shocker: Ryanair Headed to Court
Ryanair announced its intention to appeal a pair of rulings in EU’s Court of Justice with regards to state aid being offered to Air France and SAS. A spokesman for the airline said that Ryanair hasn’t taken a government entity to court in a while and that this seemed as good as any other reason. He also added that Ryanair’s trial lawyers like to stay sharp, and if they go more than a couple weeks without litigating in an open court, their skills atrophy very quickly.
Both airlines received aid proposals at the beginning of the pandemic – Air France and other French carriers received an airport tax deferral from the French government while SAS was offered a loan guarantee from the Swedish government. Ryanair’s beef with the loans is that the national governments offered the aid to their national airlines only and not to those based in other countries. Which, well, duh.
According to Ryanair’s appeal to the EU, €30bn in state subsidies has been doled out to EU flag carriers since the onset of the pandemic. Ryanair is chapped that it hasn’t gotten in on any of the handouts, that they were reserved for national carriers going against the idea of the EU’s single market for air travel. It calls itself a “truly European airline,” with no rich and powerful home country to subsidize it during the pandemic (which can’t make Ireland feel great).
Etihad Reaches Agreement with Gulf Air
Etihad Airways and its regional rival Gulf Air announced a Strategic Commercial Cooperation Agreement, a fancy way to say that the two airlines agree to play nicely together when it mutually benefits them both.
The agreement builds on a previous Memorandum of Understanding agreed to in 2018. By June 2021, the codeshare agreement between the two will be greatly expanded. Combined, they will offer an additional 30 combined destinations for passengers to connect via the airlines’ two hubs.
In addition, the two airlines, pending regulatory approval, will work together to optimize joint operations on the Bahrain-Abu Dhabi route to improve network connectivity from their two respective hubs. The pair will also strive to make the passenger experience (not revenue) on the Bahrain-Abu Dhabi route metal neutral. They envision a seamless, identical passenger journey regardless of operating carrier, with baggage handling (check-in and baggage claim), ancillary fees, canceled flight & delay announcements, and chaotic boarding processes.
The expanded agreement will enhance the loyalty program benefits for passengers. Later this summer, elite passengers of both programs will receive reciprocal lounge access at hubs and premium seating in economy next to the same crying baby regardless of airline.
FAA to Costa Rica: You’re #1
The FAA has returned Costa Rica and its civil aviation authority to a Category 1 ranking, which for the FAA represents the highest international standards. The FAA’s ranking system is practically a pass/fail concept where Category 1 ranked countries have no safety-based restrictions on operating flights to the United States and Category 2 countries fail and are prevented from flying to the U.S. Some Category 2 countries are permitted to operate on a limited, case-by-case basis but it’s generally not a badge a country wants to wear proudly.
The FAA downgraded Costa Rica’s Direccion General de Aviacion Civil (DGAC) in May of 2019, preventing new service to the U.S. by any Costa Rican airlines. The news was met with a whimper in the Costa Rica with most residents saying that they’d rather be on the beach in Costa Rica anyway.
Volaris Costa Rica is the only carrier from the country currently operating to the United States and it can now add new service if it so chooses. To celebrate the upgrade back to Category 1, the DGAC is supplying all passengers flying between the US and Costa Rica – regardless of airline – with a giant foam #1 finger through April 30.
Airline Potpourri
- Allegiant is adding two new routes for summer travel, one from Key West (EYW) to Pittsburgh beginning June 3. Also on June 2 it will begin flying St. Pete-Clearwater (PIE) to Portsmouth, NH (PSM). The airline is also expanding its route from Punta Gorda (PGD) to Rapid City, SD to operate twice-weekly all summer. It was originally supposed to exist on a limited basis in August for the Sturgis Motorcycle Rally.
- Austrian Airlines is increasing its schedule for the summer, now expecting to serve 20 destinations with up to 150 weekly flights.
- Etihad’s cargo division signed a five-year MOU with UNICEF to assist the organization with distribution of vaccines, healthcare equipment, and other supplies to help fight the pandemic in Africa.
- Finnair will dismantle an entire retired A319 aircraft in at home in Finland, with plans to recycle all components of the aircraft. It has pledged to not begin the dismantling until all passengers have disembarked from the aircraft’s final flight.
- Oman Air ended its plan to expand by doubling its fleet. It will now look to downsize and try and turn a profit.
- Solomon Airlines is taking delivery of its first 19-seat Twin Otter aircraft today.
- Texel Air ordered its first B737-800 that has been converted for freight use prior to having taken delivery of the aircraft.
- WestJet announced the departure of its CCO Arved von zur Muehlen. At this point there’s been no confirmation that WestJet’s arch-rival, Korean LCC Eastar Jet has contacted von zur Muehlen.
Andrew’s Moment of Levity
What did the fisherman say to the magician? Pick a cod, any cod.