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A volcano on the sparsley populated island country of Iceland has reminded us that no matter how much technology we have, we are still sometimes at the complete mercy of Mother Nature. Airports all across Europe were completely shut down for days. But because most large carriers --- no matter where they are based --- are tied in to "feeding" passengers in to Europe, or receiving passengers from there, this "ash" scare wreaked havoc on airlines and stranded passengers all around the world. Nothing in our Air Travel Survival Kits could aid anyone stuck sleeping in the terminals of JFK Airport for 3 or 4 nights. Stay tuned to how this situation is dealt with should more eruptions occur --- or if its "companion" volcano nearby --- which geologists say could even be worse --- decides to act up.
And we all thought the "eruption" from passengers who fly Spirit Airlines was pretty bad. The Florida-based airline that mostly serves select East Coast cities, the Caribbean and South America from its Fort Lauderdale base, announced recently that beginning in August they would start charging up to $45 for carry-on bags (only $30 if paid in advance). So far, no other airlines have followed suit. Yet, they'll all be watching with great interest. For, if they see that Spirit is able to carry it off without any significant loss of passenger seat miles, they may want to test the waters for themselves. The airilnes have made a ton of money off of charging for checked bags, and with jet fuel prices beginning to creep up, this could be a way to bring in additional revenue. Of course, some lawmakers are threatening to introduce legislation to ban this practice. But, I'm sure the PR guys at Spirit were happy to have a volcano erupt to "take the heat" off of them for awhile.
But the story that leaves me shaking my head the most is the one I read about on Time.com (04/18/10 article by Sean Gregory). During this time when so many companies and individuals are struggling to make ends meet, it was reported that ABERCROMBIE & FITCH is paying their company CEO Mike Jeffries --- the same man that made so many bad decisions in the last year that they netted only $254,000 (way down from $273 million the year before) --- a $4 million lump-sum payment to stop flying on the company plane. Where is the corporate governance in A & F? It's going to take them selling an awful lot of $90 pants or $30 boxers to cover this little extravagance. If I were a shareholder, I would surely be vocally present at their June 9 Annual Meeting to be held at their New Albany, Ohio headquarters! Where is Warren Buffett when we need him?
But this is only the beginning, for in about a week's time, the new ruling by the Department of Transportation takes effect. That would be the one that fines an airline $27,500 per passenger (yes, you read that right) --- NOT per occurence --- any time an airplane is stranded on the tarmac for longer than three hours without letting the passengers off. It's a shame that it had to resort to a financial hit this big to get the attention of the airline industry. Bet you don't see it happening too often. I don't even think Sully Sullenberger would have the guts to make that call --- one that could cost the airline several million dollars for some of the larger aircraft.
Despite all of this...keep on traveling. Nothing much happens when you sit still.
Ken Hawkins
April 22, 2010 (Happy Earth Day!)
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