Aviation consultant Robert Mann said that when airlines change the boarding process, they frequently encounter a “Whac-A-Mole” syndrome, where pressing the mole down in one place means it shows up someplace else — in other words, the law of unintended consequences. For instance, Mann said, the new American policy could “create a lot of gate-level game playing behavior where, if you shed your bag, you go ahead of other people, which makes the zone number on your boarding pass irrelevant and also cuts down on their baggage fee collection.”

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Salt Lake City Airport is getting passengers' feedback about what they like to see in the redeveloped facility. / Salt Lake City International Airport

Mountain views, faster takeoffs and workout equipment are a few things Salt Lake City officials are considering as they draw up plans for a nearly $2 billion remake of the city’s airport.

The bulk of the budget for construction comes from fees airlines pay to use the facility and from passengers buying tickets, among a few other sources. Federal grants make up about 11 percent of the bankroll.

Some wings of the airport are about 50 years old. Others date back over 30 years. That means a new facility is overdue, said Salt Lake City International Airport spokeswoman Barbara Gann.

“Airport years are longer” than human ones she said, due to changing technology and increases in traffic. The original facility was designed to shepherd about 12 million travelers each year, roughly half as many as it does now.

“We’re very space-constrained,” Gann said. “We’re constantly trying to squeeze more space out of these security checkpoints.”

Workers are set to break ground on the new airport next spring and have it finished by 2024. Officials and architects have sketched out a design for the takeoff area. Now, they’re asking travelers what they’d like to see at the airport before they reach the gate.

Authorities say the planned airport will be more efficient and likely have a design that showcases mountain views. Others say the airport will be more environmentally responsible, with a lofty goal to try to generate as much energy as it uses.

Delta Air Lines operates about 3 out of 4 flights leaving from the airport. It began using the facility as a hub in the late 1980′s. Southwest comes in second for its proportion of flights, now about 12 percent.

Last year, about 21 million people passed through the airport. The redesign is set to take on about 24 million travelers annually and go up right next to the current one.

Salt Lake City is already regarded as one of the most on-time airports in the country, but officials say that’s due more to good weather than efficient engineering.

Right now, the airport’s gates are set up in a few different horseshoe formations. That means planes have to take turns backing out of the cul-de-sacs.

The proposed plan calls for a derby setup, with each gate tucked into a straight line. That means less traffic on the ground.

Officials are asking for public input on the airport’s website and say they have already received requests for a gym, more secluded seating areas and more electrical outlets.

“We’re due for an upgrade,” said Art Raymond, spokesman for Salt Lake City Mayor Ralph Becker. Solar power and environmentally-minded engineering are components of the new plan, he said, and will help the airport toward its goal of producing as much energy as it uses. The new construction will also make the airport safer in the event of an earthquake, Raymond said.

The new airport’s design, Gann says, will likely show off Utah’s mountain views for travelers before they reach the baggage claim.

Gann says she has received requests from people who want the airport to better reflect Utah’s reputation as an outdoors capitol, incorporating more natural elements like glass and granite.

“People want it to reflect Utah,” Gann said. “They want it to be bright and airy.”

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These travelers were standing in line at LAX in April. Will we see much more of this during the summer travel season? Damian Dovarganes / Associated Press

Call it the spring of uncertainty: The government says you can travel with little pocket knives, then decides no, you can’t. Budget sequester trims air traffic controllers’ hours, resulting in airport backups, then Congress restores schedules — for now, anyway. Homeland security curbs airport security checkpoint overtime and says lines aren’t longer, but some travelers report longer lines.

As we plan our summer trips, it’s harder than ever to anticipate schedule quirks. But these things are certainties: Airplanes are being reconfigured with less room per passenger, fees are on the rise, and any hiccup in the weather is likely to strand passengers as airlines book every flight to the gills (and sometimes beyond the gills).

The good news: Austin-Bergstrom International is an even better home airport this summer, with a fourth security checkpoint easing security lines to the point where, this year, airport officials are not asking you to be at the airport two hours before your flight.

Let’s take a look at how summer travel’s shaping up, starting with the infamous sequester.

In April, furloughs hit the air traffic control system, and the effect was felt immediately, compounded by a windy sequester kickoff week. At New York’s LaGuardia, for example, airplanes taxied around for an hour in Disney World-like zigzag lines, converging in a bunch on the runway to await their sequence. Los Angeles, Denver and Dallas also suffered significant backups, and the delays trickled down to Austin.

It took barely more than a week for Congress to pass a quick, temporary fix putting all the controllers back to work full-time, but furloughs could hit again later in the year.

The Transportation Security Administration isn’t enacting furloughs, but it is reining in overtime, and that could add some length to lines. Hartsfield-Jackson Atlanta International Airport already has blamed longer lines on TSA staffing, and it’s not even summer yet. Customs is in the same overtime boat, and travelers are reporting lines of an hour or more coming back into the U.S. at some entry points, especially New York and Los Angeles.

If you’re trying to get a passport, by the way, the State Department isn’t reporting any delays right now in processing applications. However, it’s always a good idea to apply several months in advance. Keep in mind that you need a passport to re-enter the U.S. from Canada and Mexico (or a passport card for a land-based crossing). There’s more information on all that at travel.state.gov.

When you do get on that plane, you might be a little more squished than last summer if you get on an aircraft that’s been reconfigured. Southwest, for example, starting reconfiguring its 737s a year ago to get in six more seats. The result, for those of us in coach, is a slightly smaller pitch (the distance from a point on one seat to the same point on the seat in front of it) and a tad less leg room. Also, seat-back pouches are so tight you can’t fit anything bigger than a Kindle in there. American’s new 737s and 757s feature the dreaded 31-inch pitch in coach, as well (although some seats have more leg room if you’re willing to pay more).

Fees are heading skyward as well, with United, US Airways, Delta and American raising the fee for changing a ticket to $200. Frontier just added a fee for carry-ons that don’t fit under your seat if you don’t book on its website. George Hobica, president of the Airfarewatchdog fare information site, says he expects other airlines to follow suit. (A tip here: After you comparison-shop on aggregate sites, you’ll almost always find the best fare on the airline’s own site.) Southwest and JetBlue remain the only airlines offering a free checked bag (two for Southwest) on domestic flights. Most airlines charge $25 each way.

Airlines are going fee crazy in self-defense. Ticket prices haven’t come close to matching inflation. Every time fares go up, you can expect follow-up sales canceling out the increases, especially on competitive routes (which is why Denver and San Francisco are such a deal from Austin, where Virgin America this week joins the nonstop San Francisco derby). Nonstop flights, of course, are always the best option because of the danger of missing a connecting flight and getting stranded, sometimes for days, because planes are totally booked or overbooked in summer.

All airfares, by the way, could go up later this year because of a proposed increase in federal taxes. If you’re going to be traveling anytime this year, buy your ticket the next time a fare sale pops up on your favorite airline — and for most of us, the favorite airline is now the one offering the cheapest flight. Loyalty is biting the dust with restructuring of frequent flier programs, although American’s is still easy to use if you book 330 days out.

About those knives: TSA was going to let you take small pocket knives, souvenir bats from the Louisville Slugger factory and other little sports implements onboard. That’s been postponed indefinitely.

TSA’s Precheck program continues to expand, and now it’s at Austin-Bergstrom. It’s an expedited screening program where you can leave your shoes and jacket on and speed through a special line. It’s available to you if you’re among the elite customers of the major airlines (typically business customers who pay top ticket prices) or if you sign up ($100 application fee) for U.S. Global Entry and pass a security check. There’s more information at 1.usa.gov/SgS5at.

Last, a few words about Austin-Bergstrom: There’s construction going on, including renovation of restrooms, inside the terminal, but what you’ll notice most later this month will be the closure of the east part of Lot A. This space will become home to a new, five-story car rental building (and as a result, more garage space will be freed up for public parking).

This will be the first summer for the airport to open its fourth security checkpoint, built last November in honor of Formula One. It’s only used during peak times, but spokesman Jason Zielinski says summer qualifies and you can be comfy arriving 90 minutes before your flight. Happy flying.

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In the A4A’s crosshairs is the recent CBP agreement with Abu Dhabi Airport to establish a preclearance facility at the airport.

At a briefing today on its summer travel forecast, A4A displayed a slide showing that Abu Dhabi Airport ranks 80th in average daily passenger arrivals in the U.S., with 573 passengers per day, compared with airports such as London Heathrow, Toronto, and Tokyo Narita, the top 3, with each sending more than 10,000 passengers per day to the U.S.

Yet, although London Heathrow and Tokyo Narita don’t have a preclearance facility (Toronto does), Abu Dhabi, with direct Etihad Airways service recently announced to Washington Dulles Airport,  is getting a preclearance operation.

Then came the dig at CBP, with the trade group stating: “CBP has a huge opportunity to better align its resources and improve the travel experience for the 90 million airline customers who arrived at U.S. airports in 2012.”

A4A, which represents Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit, United and US Airways, noted that the average wait time in the U.S. at customs was one hour in 2012, and that maximum wait times, conservatively speaking, were “as high as three hours.”

In a follow-up question from Skift, A4A spokesperson Katie Connell, stated:

“Using U.S. taxpayer dollars and resources, DHS has agreed to the establishment of a preclearance facility in Abu Dhabi that would allow passengers traveling from Abu Dhabi into the U.S. to be pre-cleared for entry into the U.S. by U.S. Customs and Border Protection in Abu Dhabi (versus when they arrive in the U.S.) to the benefit of a foreign government and a single foreign airline competitor. Our point/position is pretty simple: customs lines have been and remain an ongoing issue for our customers who are traveling into the U.S. from around the world and continue to wait in exceedingly long and completely unacceptable lines at many of our own U.S. airports.

 

“DHS needs to focus its resources and U.S. taxpayer’s dollars on fixing the long customs lines our passengers endure here in the U.S. first before considering opening preclearance facilities in other countries, particularly those that are not served by a single U.S. carrier. We have started a campaign, DrawTheLineHere.com to allow the public to voice their opposition to such an agreement as it negatively impacts the U.S. economy, its travel and tourism, and the global competitiveness of the U.S. airline industry.”

The United Arab Emirates may be an emerging market, but A4A is arguing that the DHS and CBP have their priorities misaligned because there are just not that many passengers traveling today from Abu Dhabi to the U.S.

The A4A is challenging the right of the DHS to enter into such agreements.

In other news, the A4A projects that U.S. airline passenger numbers will hit 208.7 million in the June through August period in 2013, the highest market since 2008, and a 1% increase from 2012. Most of the increase comes from international passengers, with their numbers rising 2.5% to 27.4 million passengers, a new record.

The passenger growth, the A4A says, is driven by a healthier economy, including “improved” financial condition of U.S. airlines.

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The five men face charges including soliciting or accepting a bribe as a public employee and soliciting or accepting an unlawful gratuity as a public employee.

The defendants, all employed as Ground Transportation Unit agents at Logan and known as “cab starters,” are accused of allowing drivers to skip the sometimes lengthy wait at the airport’s taxi pool in exchange for cash.

The defendants are scheduled to be arraigned May 24.

Massport CEO Thomas Glynn says the agency will “not tolerate abuse of the public’s trust.” The workers have been suspended without pay.

Copyright (2013) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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After a Boeing battery fix, United Airlines plans on reintroducing 787 Dreamliner service with its six aircraft beginning May 20. / United Airlines

United Airlines CFO John Rainey said today allegations that the airline engaged in anticompetitive behavior last month when Virgin America debuted San Francisco and Los Angeles service from Newark Airport were “absolutely false.”

Answering questions after making a presentation at the 2013 Bank of America Merrill Lynch Global Transportation Conference in Boston, Rainey said United lowered its fares and added supply in Newark because New York-San Francisco is an important market for the airline. He didn’t mention Virgin America by name.

Importantly, Rainey said United reallocated capacity from other routes without increasing overall capacity because the airline did not want to “upset the applecart.”

Maintaining so-called “capacity discipline” is key for many airlines as they want to keep airfares high.

In fact, Rainey indicated that United expects its fleet count to remain relatively flat over the next five years, and long-term capacity growth would be almost undetectable at less than 1%.

On other issues, Rainey said:

• Well over two years after the United-Continental merger closed,  the two airlines’ maintenance systems, as well as some collective bargaining contracts, have not been integrated.

• United will tweak its frequent flyer program to enable members to use their miles on additional non-air offerings, and the airline plans to more sharply differentiate classes of service.

• The airline likes its competitive position in relation to the American Airlines-US Airways merger. Despite “overlaps” in Chicago, Dallas, Houston, Los Angeles and New York, when you consider United’s product offerings and the breadth of its network in the Pacific, Europe and Latin America, “we like where we stand in that game,” Rainey said.

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It wasn't exactly a game-changer, but in 2012 tiny Cape Air became the first airline to use ITA Software/Google's airline reservations system. Pictured are Cape Air Cessna 402s at Logan Airport in Boston. / flickr.com

Eight years after signing a deal to power Air Canada’s reservations system and two years after Google acquired ITA Software, the company is withdrawing from the airline reservations business.

ITA Software’s website states:

“We’re discontinuing the Passenger Services System (PSS) for airlines. We’re doing this to enable our team to focus on other travel solutions for users and partners such as Google Flight Search and Hotel Finder, and ITA’s QPX software suite.

 

“Cape Air is live on this system and we’ll continue to work with them under our agreement. We won’t be launching PSS with other clients. Going forward, we’re excited to keep developing new, innovative travel solutions for our users.”

 

This is indeed a bitter pill for ITA Software’s founders to swallow as they put years and millions of dollars into their dream to transform the nuts and bolts of the way airline reservations systems, also called Passenger Services Systems, are handled behind the scenes.

They had similar visions to make wholesale changes to the way global distribution systems work, but that project was put aside years ago.

ITA Software didn’t have great success in its fledgling airline reservations system business.

It’s big win was the 2005 contract to power Air Canada’s reservations system, but that ended, the victim of Air Canada’s financial crisis.

In 2011, ITA Software entered into an agreement to provide an ITA Merchandising solution to American Airlines, enabling the carrier “to offer customized travel options through all channels,” ITA said, but it seemed to be a relatively smallish deal.

And, there was no word today about what will happen to ITA’s American Airlines agreement, although ITA did state that it “will continue to work with Cape Air,” which became the first and only airline to implement TA’s airline reservations system in 2012.

There had been many questions leading up to Google’s acquisition of ITA Software concerning whether search-engine Google would have the appetite to allow ITA Software to pursue something so far afield — airline reservations systems — and now the answer is in.

What does this mean?

By airline reservations systems, we’re talking about technology systems that enable airlines  to process tickets, maintain departure and control systems, choreograph crew scheduling, and handle baggage.

Google/ITA’s dropping of airline reservations systems does not impact its ongoing commitment to Google Flight Search, Google Hotel Finder, and QPX (the system that handles airfare shopping on many airline and travel agency websites), says a Google spokesperson.

Google does not intend to reduce headcount.

“Our Cambridge office will continue to be a key hub for our travel team,” the spokesperson says.

The decision does set the stage for Google to try to sell its airline reservations system technology — or parts of it, at least — although Google declined to be pinned down on the question.

“Google does not talk about business plans that they may or may not be considering,” the spokesperson says.

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Rick Piccolo, president and chief executive officer of the airport, told his Sarasota Manatee Airport Authority board Monday morning that the two sides are talking again.

“We reinstituted contact with them, all we’re doing is talking,” Piccolo told the Herald. “It’s a good exercise for both. Good for us, good for them.”

Southwest’s AirTran service left SRQ airport in 2012, and the airport started a Do You SRQ? marketing campaign to have passengers and organizations pledging to use the airport and its carriers, basically nixing Southwest out of the equation.

While Piccolo is still pushing that pledge, internal talks between the two sides to resume service in some manner are ongoing.

“What applied a year ago may not apply today, and may not apply five years from now,” Piccolo said. “We’re very gracious, looking forward to continuing the dialogue.”

Despite the loss of AirTran, passenger traffic decreased just 2.6 percent in 2012, according to Piccolo’s annual report.

“We recovered about 60 to 65 percent of total passengers that AirTran took away,” Piccolo said.

So far, passenger count is down 14.4 percent through one-third of the year, and Piccolo expects that number to improve during the summer, ending around 11 to 12 percent down. The full-year additions of JetBlue service to New York and Boston should improve those numbers.

Financially, the airport is doing well thanks to its conservative fiscal approach, according to the report. A surplus of $821,000 was rebated to the airlines, and the airport had a net of $2.4 million from operations in fiscal 2012. That stood as an increase of $735,000 from fiscal 2012, according to the report. The airport is on track to be debt free in August 2014, paying off its terminal built in 1989, and has been operating on a pay-as-you-go basis save for the $150 million bond for the terminal.

“I think our conservative financial management has strategically placed the airport in a strong position to weather the economic storms and we are better positioned than most airports from a financial perspective,” Piccolo wrote in his report. “The Southwest announcement is a prime example of how the prudent fiscal policies positioned SRQ to weather the volatile swings in aviation with a minimal impact on airport facilities, services, and staff.”

Several improvements are expected to help the airport in the coming years. A customs inspection facility continues to progress, and the airport hopes to advertise bids to construct the areas this year.

A new air traffic control tower is designed and the airport hopes the FAA will fund construction, but sequestration budget cuts in Washington stalled those talks. The state and the airport have both committed $4 million each to the tower, which is estimated to cost a total of $12 million to $15 million, Piccolo said.

The tower would be relocated to the southwest part of the property to allow about 40 acres to be developed for hangars and other real estate development, Piccolo said.

The airport is also hoping to finalize regulatory approval for its customs, which when completed would help lure international carriers, Piccolo said.

The $2.5 million facility is designed to handle 130 to 150 passengers during a peak hour, which is fine for narrow-bodied aircrafts, but European carriers use larger planes, so the facility needs to handle 250 to 300 passengers in a peak hour if it wants to attract carriers like Monarch, he said.

Seventy percent of the construction cost is funded through grants, he said.

The authority released its annual performance evaluation for Piccolo on Monday, and the chief executive officer received a near perfect score save for one incomplete grade.

Piccolo earned 250 points out of a possible 300 points on his annual evaluation. Newly appointed board member Dr. Peter A. Wish declined to grade Piccolo because Wish only attended one meeting.

“I don’t feel I have enough information to make my evaluation,” Wish wrote in his review. “From what I have observed so far about Mr. Piccolo’s performance, I am very impressed.”

Wish was appointed by Gov. Rick Scott in February to replace former board member Bob Waechter, who quit the board in December after he was accused of felony identity fraud and improper campaign contributions relating to allegations he purchased Visa gift cards in a Republican political rival’s name and donated those funds to a Democratic fund.

Piccolo is graded on 10 areas: business development, relationship with board, financial management, public image, staff development, community relations, strategic planning and goals, leadership, job and industry knowledge and regulatory compliance.

Charles Schelle, business reporter, can be reached at 941-745-7095. Follow him on Twitter@ImYourChuck. ___

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It's no laughing matter, but Bob Hope Airport in Burbank, California, took the brunt of cuts when airlines decided to transition away from smaller airports. Steve Wilson / flickr.com

Airline mergers, a deep recession and surging fuel prices have led to sharp cuts in airline service around the country. Hardest hit: medium-size airports.

In California, Bob Hope Airport in Burbank, John Wayne Airport in Santa Ana, LA/Ontario International Airport and other mid-size airports lost an average of 26.2 percent of their flights from 2007 to 2012, according to a new study by MIT’s International Center for Air Transportation [embedded below].

The cuts are a result of airlines eliminating less-profitable routes and focusing on more popular, high-profit routes, the report said.

Many airlines have also replaced multiple flights of small, 50-seat planes with one or two flights using larger, 76-seat planes, the report noted.

“The past six years have been challenging ones for domestic air service in the United States,” according to the report by researchers Michael D. Wittman and William S. Swelbar. “Most airports have seen a reduction in scheduled domestic flights.”

Large airports such as Los Angeles International Airport have lost 8.8 percent of their flights, while small airports such as Long Beach and Santa Barbara municipal airports lost 18.2 percent in the six-year period, the study found.

The biggest drop has been at mid-size airports such as Bob Hope Airport, where airline departures dropped 24.8 percent in the six-year period.

Bob Hope officials say they are trying to reverse the trend by holding down the cost for airlines to fly out of the airport.

Those costs include landing fees and rental and leasing rates for airport facilities, airport spokesman Victor Gill said.

The airport also launched an incentive program in November to waive landing fees for all new flights to cities previously not served by the airport.

To draw more passengers, the airport is increasing its marketing efforts. For example, Gill said the airport recently signed a deal to make Bob Hope the official airport of the Rose Bowl for the next three years.

The MIT study on small community air service:

Download (PDF, 1KB)

(c)2013 Los Angeles Times. Distributed by MCT Information Services.

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A Flybe aircraft headed to the Shetland Islands. Karen Bryan / Flickr

Flybe Group Plc rose as much as 21 percent, leading advancing stocks on the FTSE All-Share Index, after Europe’s biggest regional airline said it’s in talks to sell take-off and landing slots at London Gatwick airport.

Negotiations are taking place “with a number of parties,” the Exeter, England-based airline said in a statement today. “Discussions are ongoing and there can be no certainty as to whether any transaction will be forthcoming.”

Flybe shares were up 13 percent at 59 pence, the highest intraday price in eight months, as of 9:50 a.m. in London. That extended the gain this year to almost 16 percent, valuing the airline at 44 million pounds ($68 million). The number of shares traded was more than four times the average daily amount over the past three months.

“EasyJet, British Airways and Norwegian Air Shuttle are likely interested parties,” Peter Hyde, a London-based analyst at Liberum Capital, said by phone. “EasyJet may pay the most because it already has 41 percent of slots at Gatwick and could put the additions to best use.”

Flybe said last month that it had 54.4 million pounds in cash at the end of its financial year on March 31 and that it would report an underlying pretax loss at the low end of its forecast, on sales similar to the previous year. Chief Executive Officer Jim French announced details of a cost-reduction plan in January.

Flybe pilots agreed this month to a 5 percent cut in pay to avoid job losses. The airline’s regional focus means Flybe has higher unit costs than discount carriers such as Ryanair Holdings Plc and EasyJet Plc.

Airport fees

“Recent airport charges increases at Gatwick have been skewed against the operators of smaller aircraft, like Flybe,” Gerald Khoo, a London-based analyst at Espirito Santo Investment Bank with a neutral rating on Flybe shares, said in a note. “The continuation of such measures could place an ongoing squeeze on the profitability of Flybe’s Gatwick routes.”

Gatwick is Flybe’s main London-area airport, where it maintains 25 slot pairs, with a smaller presence at Luton.

Ryanair, Europe’s largest discount carrier, had offered to pay Flybe 100 million euros ($130 million) in cash to operate aircraft and short-haul routes as it sought regulatory approval to acquire Aer Lingus Group. Antitrust authorities blocked the deal in February.

Editors: David Risser, Robert Valpuesta. To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net. To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net. 

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