Wow, what a month and it isn’t even over yet. Four airlines cease operations and one files for Chapter 11. So far we’ve seen Aloha, ATA, Skybus and most recently, EOS, all stop flying in the last month. We’ve also seen Frontier Airlines, one of the highest quality US airlines, file for Chapter 11. So what does all this mean to you?

1. Aside from large cash reserves, little can defend against an era of $100+ oil.
2. Innovative airline models seem even more susceptible. All first class (EOS/MaxJet), bare-bones coach (Skybus/ATA), and even geographically protected (Aloha) airlines are taken down without sympathy.
3. Fewer brands mean less capacity, thus generally increasing prices and creating less frequent flier availability.

While overall this isn’t great news, things could be a whole lot worse:

1. With the Delta and Northwest merger on the horizon, we’ll know it short order (before the presidential election) if it is approved. It’s not a done deal, particularly given a ticking clock on the remaining days of a known, merger-friendly, administration.
2. With a softening economy, bookings, particularly on international routes, may not come in as robust as previously expected. This could mean slightly lower prices for summer travel.
3. Your miles are generally safe unless you are vested on one of the smaller airlines.

Finally, many thanks to the great folks out there who are telling the world about InsideTrip. Our passion is all about showing the same prices as the other guys but giving unrivaled quality insight to help people make the most intelligent travel choices. Special kudos to Aseem Kishore at On-Line-Tech-Tips.com and Lisa Marie Mercer at Flyaway-Weblog.com for their postings and for reaching out to say hello.

1. AIRLINE MERGERS: Not happening in the near term due to oil prices and lack of labor cooperation.
   • Dave’s Take: GOOD. Mergers will most certainly drive up prices and reduce frequent flier seat availability.
2. AIRFARE INCREASES: Pricing hikes led by AA, DL, and UA are increasing some prices between $10 and $50.
   • Dave’s Take: BAD. With oil at $100+ per barrel, airlines are scrounging for any way to remain profitable at the expense of your wallet.
3. JETBLUE CHARGES FOR BEST LEGROOM: In an effort to differentiate their seats that offer the most legroom, Jetblue will begin charging for the best seats of the plane.
   • Dave’s Take: GOOD. JetBlue, already offers the best economy legroom in the in US at a minimum of 34″ which will still be free.
4. ALOHA CHAPTER 11, ALOHA: Aloha Airlines files for bankruptcy protection.
   • Dave’s Take: PUSH. Even though they are in Chapter 11, Aloha is nowhere near liquidation and a very good brand. Fly them without risk for the time to come.

Hi and thank you very much for helping to get InsideTrip off to such a great start!

The site traffic has surpassed all of our forecasts and we are so thrilled people are responding to our TripQuality view of the world. With an occasional stubbing of our toe here and there, we are listening to everything you are saying and love all feedback, good and not-so-good.

Having previously run the pricing/revenue management department at Alaska as well as the strategic planning group at TWA, I can’t wait to start sharing my insider’s view of the world.

Lots of crazy industry stuff going on: new fare sales, bad bag policies being matched, and general airline industry “pain” involved with oil at 100 bucks a barrel. All of these things affect your travel experience so please stay tuned!

Dave

Hi and welcome to InsideTrip! Please check out my blog as I will be writing about the launch of InsideTrip as well as interesting stuff in the world of airlines and travel.