Ain’t No Sun Up In The Sky. . .Then again, maybe there is. It kinda’ depends on who’s looking. Opinions about the state of the airline industry run the gamut from dire predictions that all the major airlines could be in bankruptcy by early next year, to more optimistic forecasts that the industry is bound to recover at some point and could even evolve into something more friendly for investors and travelers alike. The grimmest analysis, commissioned by the Business Travel Coalition (BTC) and conducted by the consulting firm AirlineForecasts, concludes that the airline industry is in a full-blown crisis and “heading toward a catastrophe.” Others, however, such as renowned business travel columnist Joe Brancatelli, opine that “recent airline troubles don’t signal the end of the industry, just a return to its past.”  In any event, most seem to agree there will be stormy, or shall we say stormier, weather ahead. (Sources: Arizona Star, 06/14/08;TheWashington Post, 06/24/08)

When Autumn Leaves Start to Fall. . . Airlines normally cut capacity in the fall after the rush of summer vacation travel, but this year, under pressure from soaring fuel costs, major airlines have said they will reduce flight schedules by an average of about 10%. The anticipated sharp reduction is naturally of concern, particularly for smaller hubs where it is expected that airlines will reduce service or eliminate it all together. The Air Transport Association, the premier trade group of the nation’s principal airlines, predicts as many as 200 cities could lose air service and many more will have fewer flying options. Major business markets such as New York, Chicago and Atlanta aren’t likely to see as many cutbacks or significant fare hikes due to greater demand and competition from low-cost carriers. Many airlines aren’t tipping their hands just yet as to exactly where cuts will be made, partly for competitive reasons and partly because there’s at least some reason to hope things could change by fall. In the meantime, at least one travel expert—aviation consultant Michael Boyd—cautions against Chicken Little forecasting and urges communities to take care in interpreting reports predicting or implying loss of all service at their airports.  (Source: CNN Money, 06/20/08; The Dallas Morning News, 06/25/08)

Heartbreak Hotel. . .With all the doomsday talk about the airline industry these days one might assume the picture is equally bleak for hotels, that “the bell hops tears are flowin’ and the desk clerks are dressed in black.” Not so, say the folks who analyze this sort of thing. The numbers, they tell us, indicate there are slowing rates of growth in the lodging industry rather than an actual decline. U.S. hotel executives are hoping that business travel will save the day for them, especially when the hard-hit summer vacation season ends. Hotel companies know that eliminating all business travel is not an option. Assuming this proves true, the industry’s dependence on business travel could give companies a much stronger bargaining position this fall as they start negotiations for 2009 hotel contract rates. (Sources: Business Week, 06/25/08; ReportonBusiness.com, 06/25/08)

I Can’t Get No Satisfaction. . . Fliers’ unhappiness has reached its worst level in three years, according to J.D. Powers and Associates’ annual study of airline customer satisfaction. Surprisingly perhaps, the study revealed it’s not the higher fares and new fees that have passengers up in arms so much as it is the way they’re treated by airline employees. Satisfaction with the knowledge, courtesy and helpfulness of reservations and gate agents, check-in staff and flight crews has declined dramatically since 2007, J.D. Powers said, pointing to a reduction in airline staff as the probable cause. As for rankings, Continental and Alaska Airlines tied for the highest levels of customer satisfaction among the eight legacy carriers; United and Northwest tied for last place.  Among the low-cost carriers, JetBlue ranked first in customer service; AirTran was last.  (Source: Executive Travel SkyGuide E-Alert, 06/23/08)

Up, Up and Away. . .In the midst of all the talk about the impending demise of the airline industry, a new start-up carrier took flight June 30. Genius or madness? Only time will tell, but the idea certainly seems ripe with possibility. SeaPort Airlines offers business travelers a new option for the much-traveled Portland-Seattle corridor. It all comes down to time and convenience. The carrier promises to cut travel time in half, and eliminate the general hassles of the full airport experience, all for prices comparable to traditional airlines. SeaPort Air will operate out of its own terminal adjacent to Flightcraft at Portland International Airport and out of King County Municipal Airport (Boeing Field), just south of downtown Seattle. Both sites avoid the congestion and delays associated with TSA check-points and the remoteness of Sea-Tac airport. Onsite parking is available free of charge in Seattle; mandatory onsite valet parking is offered in Portland for $18 per day. SeaPort Air offers weekday service with eight flights each way, leaving every 45 minutes during peak times—morning and late afternoon. Weekend service is also available, with a shortened schedule. As an introductory offer, tickets purchased during the month of July cost as little as $149 round trip ($75 one way) plus applicable fees and taxes. SeaPort planes are Swiss-built Pilatus PC-12s, a pressurized, fast and comfortable turbo-prop aircraft. The airline is a dba of Alaska Juneau Aeronautics, an FAA Part 135 certified scheduled air service with 25 years experience in commercial aviation. (Sources: The Portland Business Journal, 06/13/08; SeaPort Airlines)

Surfin’ USA. . . Nearly two years after Boeing terminated its Connexion Internet system in late 2006, airlines are trying once again to offer the ability to browse websites and check e-mail during flights. Several airlines are now planning to conduct tests of a new generation of wireless Internet equipment this summer despite facing fuel-induced financial woes, saying the fee-based service could provide much needed extra revenues. The Internet systems in the works won't include the ability to use cell phones, which are currently banned during flight because of concerns that cellular signals could interfere with the plane's electronic equipment. In addition, airlines would still have to decide whether to allow Internet-based telephone and video-conferencing. Because of advances in technology since Boeing’s original attempt, equipment is expected to cost significantly less and installation to require less time, so look for more reasonable connection fees than the $30 fee Boeing charged (Source: Los Angeles Times, 06/17/08)