Blog Archives




 
  • When Even Good News Is Bad

    By Steve Smith - Tuesday June 19, 2012
    If every cloud has a silver lining, please blow some our way. Even good news seems to bring more bad for the airline industry. First, the good news: Fuel prices are down some 8 percent to date this year. Now, the bad news: Prices are down as a result of a worldwide slump in economic activity. “The reduction in fuel prices is a great thing for the airline industry, but they are coming down because of concerns over world economic activity,” IATA chief Tony Tyler told Reuters at the group’s recent annual summit in China. “If the world enters an economic slump, that will be even worse for the industry than the higher fuel price on its own.” The United States is just hanging on. High-flying China is experiencing its first...
  • Another Book Report On China

    By Steve Smith - Tuesday June 12, 2012
    I didn’t expect to write back-to-back blogs on the same subject, but more news keeps trumpeting China’s aviation ambitions that it’s hard to set it aside even for a week. This week, Li Jiaxiang, chief of the Civil Aviation Administration of China told delegates attending an IATA meeting in Beijing the country plans to build 70 airports in three years as well as expand 100 existing airports. Chinese carriers would operate around 4,700 planes by 2015 – this on the heels of IATA figures that announced wafer-thin profit margins for airlines this year. China brings two advantages to its rather late-start to build an industry that took much of the rest the world the past century to develop. One, its commercial airline fleet consists...
  • China’s Sky High Ambitions

    By Steve Smith - Tuesday June 5, 2012
    Americans have good reason to scoff at attempts to “plan” a nation’s economy. In the late 1950s, for example, China started “A Great Leap Forward,” a five-year plan to industrialize a largely agricultural economy. But the plan included making steel in backyard furnaces, forcing farmers off their fields at bayonet point and creating a famine that starved 30 million people. The country never gave up on its five-year plans though. But the China of the last 30 years or so is a far cry from the Chairman Mao days. The country’s currently on its 12th five-year plan. And part of this plan centers on turning the country into an aviation powerhouse. Right now more than two-thirds of the world’s airport construction is happening in...
  • Keep Calm And Carry On

    By Steve Smith - Tuesday May 29, 2012
    Our headline comes from a poster hung up around Britain at the beginning of World War II to bolster morale. In other words, keep a stiff upper lip. The Nazis might be dropping bombs on London every night, but that doesn’t mean you can’t find the time to have a cup of tea. The phrase became popular again in 2000 and can be found on any number of items, ranging from doormats to baby bibs – although you have to figure that last item is more for the parents than the one adorned. So I wonder if any of these posters are hanging up at Heathrow Airport. Although we’ve written about this before, a real Olympian task during the Summer Games will be done by Heathrow’s baggage crews. During a dry run last Wednesday, baggage handlers...
  • Safety Initiatives In The News

    By Steve Smith - Tuesday May 22, 2012
    While I searched for news this morning for our weekly GSW e-newsletter, I read about the death of a ramp worker at Pearson Airport. Apparently, the Swissport employee got caught between a baggage loader and the plane he was servicing. I also read about a cargo loader at an airport in India who died after a 660-pound container fell on him. I included the Swissport news, but not this one if only because it happened at the beginning of this month but just reached our newsfeeds service today. Accidents at airports seem to be either deadly to person or damaging to aircraft and ground equipment. A couple of news items we’ve also read about lately show that safety on the ramp is taking center stage. IATA, for example, announced the...
  • More On Delta’s Oil Deal

    By Steve Smith - Tuesday May 15, 2012
    Old story, I know. Back on April 30, Delta Air Lines announced that a subsidiary, Monroe Energy LLC, would buy a Pennsylvania oil refinery for $150 million. After investing another $100 million to squeeze every last drop of jet fuel from production, Delta says the refinery will help reduce its fuel expense by $300 million annually. As Delta’s CEO put it: “What we’re tackling here today is the jet crack spread, which you cannot hedge in the market place effectively. It’s the fastest single growing cost at Delta.” There’s more to “jet crack spread,” but I think it’s safe to consider them akin to profit margins. I didn’t pay much attention to an oil refinery for sale until rumors of Delta’s kicking the tires put it on...
  • In Praise Of Baggage Fees

    By Steve Smith - Tuesday May 8, 2012
    I’ve only flown Spirit Airlines once and hated everything about it. I didn’t know too much about the ala carte airline so I was surprised to be charged for my carry-on and then see the beverage “service” be anything but. Had to take a red eye back home, too. The only good thing I can say is that someone else paid for my ticket. So it did seem like divine retribution when Spirit hit the headlines twice last week – once for its new $100 charge to bring a carry-on past the gate – rather than pay $35 online or $50 at the counter – and again for its bone-headed decision not to refund the ticket of a dying veteran. What part of "dying" and "veteran" are we not supposed to understand? After a good pillorying in the press and a...
  • GSW LinkedIn Group Responds To Seat Belts

    By Steve Smith - Tuesday May 1, 2012
    We posted last week’s blog on Delta’s recent agreement with OSHA to install seat belts in 6,000 pieces of GSE at 90 U.S. airports to our LinkedIn group site. We received plenty of comments from our members – in fact, I received a few more as I typed these words. The comments were much like this: “I've seen seat belts on forklifts and GSE that were tied in knots behind the seat or wadded up under it. I stress the importance of using installed belts to ensure benefits in case of accident or injury! Like anything it will be the Supervisor that that will have to enforce it and he MUST have support from the company.” A few wondered what the speed limit was on the ramp and wondered if Atlanta-based Delta was employing...
  • Delta’s Seat Belt Order

    By Steve Smith - Tuesday April 24, 2012
    The news that Delta Air Lines agreed last week to install seat belts on 6,000 pieces of GSE at 90 airports seems to be greeted with a ho-hum shrug of the shoulders. I haven’t read much more elsewhere about the implications this might have for our industry. The most interest I saw came from litigation lawyers' web sites that were more than happy to share this good news. Delta cut the deal with OSHA following the August 2010 death of a baggage tractor driver who was not wearing a seat belt and was ejected from his vehicle. The Atlanta Journal-Constitution , the home town paper for the airline, had more details about a memo Delta sent to employees after the agreement. The memo said many of its vehicles do not have seat belts. That might...
  • Eliminate Baggage Fees

    By Steve Smith - Tuesday April 17, 2012
     Air travel would be safer if we allowed knives, lighters and liquids, according to Kip Hawley, who was in charge of the Transportation Security Administration during George W. Bush’s second term, in a Wall Street Journal essay published last Saturday. “Preventing terrorist attacks on air travel demands flexibility and the constant reassessment of threats,” he writes, describing a system made too brittle by enforcing regulations rather than managing risks. “It also demands strong public support, which the current system has plainly failed to achieve.” Hawley proposes a few baggage-related changes that he believes would make the system better and certainly provide the agency with some sorely needed public buy-in...