Despite some well-publicized incidents involving drunk passengers, U.S. airlines aren’t about to fly dry. The revenue is just too big. But flight attendants say drunk passengers are the top source of harassment and want airline staff to keep them off planes.
PSA Airlines has been in the news lately. But do travelers have any idea what PSA is? Is this a problem? Should passengers have a better idea what regional airline they're flying? Or doesn't it matter?
The Department of Transportation's inspector general has several ongoing audits trying to measure the effectiveness of the Federal Aviation Administration. That's probably a nuisance to the FAA, but it's not necessarily a bad thing. Oversight is important.
In three years, Embraer will be able to deliver new regional jets to U.S. airlines that could significantly reduce their fuel bill. But U.S. airlines may not be able to take them because of restrictions in collective bargaining agreements with pilots. It's easy to blame pilots for their stance. But they have leverage. Why shouldn't they use it?
American probably does have too many executives for an airline of its size. And considering the stock is down, this is probably not a bad time to cull the ranks. If everything goes well, passengers will probably not notice any changes.
In May, United removed tomato juice because few passengers drink it. Afterward, though, United got another lesson in the power of social media. Many folks complained, and so tomato juice has returned. The funny thing is, United's customers still aren't asking for it. But at least it's there.
The government of South Africa is adamant the country needs a global airline as a matter of national sovereignty. That has been a costly decision. Is it necessary?
Like many airlines, Cathay Pacific underestimated the digital revolution and the threat of low-cost competition. It is playing catch up, and its recent financial results have not been pretty. But Cathay Pacific has an excellent brand, and it serves a lucrative home market. It should be OK.
Until Air France-KLM implements a long-term cohesive strategy, it probably will keep falling behind its main competitors, International Airlines Group and Lufthansa Group. But unless the macroeconomic environment changes, it should be OK. Even with rising fuel prices, now is a good time to be in the airline business.