Steele Luxury Travel Blog

Starwood Capital bullish on Miami, buys Gansevoort Hotel $100M Renovation www.SteeleTravelBlog.com

2012-02-06T14:22:00.000-05:00

By Barbara De Lollis, USA TODAY

In a sign of confidence in the Miami Beach hotel market, new owners have bought the Gansevoort Miami Beach hotel and plan to give an extensive, $100 million revamp.They've also given it a new name - Perry South Beach Hotel.
The massive hotel has 334 rooms, 255 condo units, extensive retail space, three outdoor swimming pools, a rooftop pool and lounge, a private beach and a 42,000-square-foot David Barton gym and spa.

It occupies the entire block between 23rd and 24th streets on Collins Avenue on the edge of South Beach.
The oceanfront property had failed during the recession, but a consortium of Starwood Capital Group (run by Starwood Hotels founder Barry Sternlicht), the LeFrak Organization and Invesco think it has a promising future, their press release says. They teamed up to buy it from Credit Suisse, which had acquired it through foreclosure in 2010. Jones Lang LaSalle Hotels arranged the sale on behalf of Credit Suisse.

Starwood Capital plans to reposition the hotel by, among other changes, giving it several new and national stores in the retail space along Collins Avenue, as well as new restaurants. About five blocks away on Collins Avenue, Marriott's working on building one of its high-end boutique-style Edition hotels.
The Starwood Capital group's plan is to eventually re-launch the ex-Gansevoort hotel - with a brand name - in 2013.

"This is an incredibly exciting opportunity to create a premier luxury hotel and residences along one of the world's most beautiful and popular beaches at a time when global interest in the Miami marketplace is close to surpassing its all-time high," Sternlicht said in a press release. "This is a powerhouse asset with a unique beach footprint in one of the strongest hotel markets in the nation with high barriers to entry."
Interestingly, the release notes, the three partners had previously bought the loans and real estate assets of a failed bank, including more than 2,000 condominium units in Miami. The pace at which the condos sold convinced them that it was time to invest further in Miami.

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American Airlines Announces Workforce Cuts, Rejects Sale Option

2012-02-02T11:25:00.000-05:00

Tom Horton, chairman and CEO of AMR Corporation, parent company of American Airlines, sent a letter to employees announcing that the airline will cut all workgroup costs by 20 percent. The savings will be achieved in a variety of ways, Horton said, including a reduction in the number of employees. But Horton said that the cuts will save other jobs.

            Horton also said that he did not believe that selling American to another airline or breaking it up and selling parts of it would be in the best interests of the company, its employees or its stakeholders.
            Horton told employees that the recent quarterly financial results of other airlines that have gone through the bankruptcy process shows the business benefit of restructuring under Chapter 11. American is the last legacy carrier to go into Chapter 11.

            “Network carriers have benefited from investing their restructuring-driven profits in products and services that have helped drive revenue growth,” Horton wrote. “And low-cost airlines continue to benefit from the cost efficiency that has made them a force in our industry. Several network carriers reported profits despite soaring fuel prices.

            Horton said that American will invest about $2 billion a year on aircraft so that by 2017 American's mainline jet fleet will be the youngest in North America, with the versatility to match aircraft size to the markets. This will improve fuel efficiency and save money on maintenance.

            American will increase departures across its five key markets -- Dallas/Fort Worth, Chicago, Miami, Los Angeles and New York -- by 20 percent over the next five years. The airline plans a $3 billion annual financial improvement with these and other measures -- $1 billion per year through network scale, fleet optimization and product improvements, and cost savings of $2 billion, from restructuring debt and leases, grounding older planes, improving supplier contracts and other initiatives, and necessary employee-related changes.

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American Airlines Set to Add Miami-Barcelona Flight www.SteeleTravelBlog.com

2012-01-25T13:39:00.000-05:00

American Airlines will start a new Miami-Barcelona flight on April 3. The flight will operate five times a week until June 14 when it will operate daily. Iberia, which along with British Airways, is part of a three-way trans-Atlantic venture with American, will increase its Miami to Madrid service as it grows its presence at Madrid’s Barajas Airport (MAD). Effective March 25, Iberia will add a second MIA-MAD flight four times per week. American will continue to operate one daily MIA-MAD flight.

American’s new route connects its Miami hub to Barcelona’s El Prat International Airport. Barcelona is one of Europe’s top tourist destinations. Barcelona will be the 111th destination served by American and its regional carrier American Eagle from MIA. The flights will be operated with Boeing 767-300 aircraft with 225 seats including 30 Business Class seats and 195 seats in the Main Cabin.

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Lufthansa to Introduce Private Jet Service to North America www.SteeleTravelBlog.com

2012-01-24T08:59:00.000-05:00

Lufthansa is introducing its Lufthansa Private Jet in North American on Feb. 1. Made possible by an expanded relationship with NetJets Inc., this expands Lufthansa’s Private Jet product that is already operated in Europe in conjunction with NetJets Europe.

Lufthansa Private Jet will provide flights tailored to the customer’s itinerary throughout North America on a fleet of aircraft managed and operated by NetJets. Lufthansa Private Jet service in North America is available through an interchange program with NetJets Europe. Travel can be booked through Lufthansa and in seamless combination with trans-Atlantic flights arriving or departing from the 21 North America destinations serviced by Lufthansa and Swiss or for direct point-to-point travel within the North America coverage area, which includes over 3,000 airports.

With Lufthansa Private Jet, a dedicated customer care service team provides a unique single point of contact to fully address all passenger needs, from flight arrangements to ground transportation and special requests.

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Emirates, Alaska Airlines Announce Frequent-Flyer Partnership

2012-01-20T14:25:00.000-05:00

Emirates and Alaska Airlines have announced a new frequent flier partnership that will allow members of Alaska Airlines Mileage Plan to accrue miles when they fly to any of Emirates' 118 destinations worldwide, including points across Africa, India and the Middle East.

Emirates Skywards members can also accrue miles across the Alaska Airlines network in the United States (including Alaska and Hawaii), Canada and Mexico. Under the new partnership, travelers connecting between any point on Alaska Airlines and Emirates' networks will be able to check in for their flights at either carrier's counter, receive their boarding passes and check their bags to their final destination.

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How Much Time Do You Really Need Before Your Flight? Steele Travel on Huffington post

2012-01-18T15:49:00.000-05:00

The Huffington post January 18, 2012

It's the endless debate of air travel: Do you bite the bullet and trek into airport hell a solid three hours early? Or do you take your chances and go for broke, arriving at the last minute possible? Personally, yours truly falls into the latter category.

Luckily, today there are a variety of ways to minimize the time you need to arrive at the airport in advance to make your scheduled departure. Arriving two hours before a flight isn't always necessary (provided you don't require extra time or aren't a part of a group). There are some excellent strategies you can implement to skim that two hour-protocol down to one. Nonetheless, for anxious travelers who would rather be safe than sorry, many airports now offer a bevy of pleasureful amenities that can quickly pass hours of waiting.

Foremost, one must take into consideration the airport itself. How far is it from your present location? How congested is traffic getting to the airport? In Amsterdam, Schiphol's railway station offers speedy service from Centraal Station and is interconnected to most of the nation's rail system. It can shave the transport time to the airport by more than half. Likewise, the MagLev Train in Shanghai zips passengers at roughly 260 mph from a station in central Pudong to the airport, where they can skip over peripheral Shanghai's crowded transit network. Traffic can be horrendous and, in both situations, travelers save money.

In some instances, taking public transport isn't always the fastest option for saving yourself time. In the case of New York City's LaGuardia Airport, there is no direct-connecting subway. More often than not, it's faster to grab a taxi than deal with an exhausting train-to-bus route that makes numerous stops -- even without bad traffic. You can easily buy yourself an extra 20 minutes.

Secondly, knowing how busy an airport is or how many international departures it handles, can be beneficial. Atlanta's Hartsfield-Jackson, London's Heathrow, Chicago's O'Hare, Tokyo's Narita, New York's JFK, Paris's Charles de Gaulle, Frankfurt and Beijing are all massively large airports, with the highest passenger traffic in the world. Moreover, they all serve as hubs for major airlines and are the top, first-entry points for many foreign flyers, adding to the chaos. Having a firm understanding on what you're getting yourself into before you arrive at an airport will help you to better gauge how close you should cut it. If you're flying United (Continental) from Newark, take into consideration that it's a hub, with loads of international flights from Buenos Aires to Tel Aviv. Lines can be longer and delays should be anticipated.

Check-in requirements can vary drastically depending on your airport or destination. For instance, Delta requires that voyagers heading to Moscow and Istanbul check in at least three hours before departure, more than three times earlier than if you were going to Las Vegas. It's best to follow rules strictly. Arriving two hours early at Spokane's relatively sleepy airport for a flight to Denver is just silly. Most domestic flights don't require over an hour check-in. Portland, Maine's tiny jetport has non-existent city traffic and virtually no lines, which translates into the perfect last-minute arrival -- certainly not more than an hour prior to departure.

It's no longer a secret that on-line check-in is a highly effective tactic that travelers can use to shave their airport hang time. The vast majority of airlines offer this option, which means you may not even have to deal with an agent and can have your boarding documents already in hand or on a smart-phone. Naturally, packing only a carry-on makes check-in a breeze, but if you can't travel light, many airliners offer cheaper, on-line payment for checked luggage. This can speed up dropping off your bags, enabling you to zoom over to security lines and arrive later at the airport.

This brings us to perhaps the most loathed travel obligation: airport security. A select list of airports and countries permit "trusted traveler programs," which enable swift security movement. Preferred-status members and first-class travelers also have significant advantages, which mean they pass through lines and check-points quickly. They won't generally need to show up at standard times and can be more liberal with their airport arrivals. Should this not be a possibility for you, an excellent method for allowing yourself a bit more pre-airport time, is to dress smart. Wearing loafers or moccasins and cutting down on jewelry and bulky, layered clothing can skim your security time, perhaps cutting back on your need to show up quite so early.

Of course life is always a learning experience. I myself have underestimated Thursday night traffic to JFK or the lengthy shuttle bus route from Milan to Malpensa -- all to disastrous ends. Whether you're flying to Accra and required to drop bags off at least three hours in advance or just can't handle the stress of potentially missing a flight; airports aren't always the migraine-inducing nightmares of yore. From VIP lounges to improved dining options, airports offer a range of relaxing and enjoyable distractions for those that will be spending some extra time meandering the terminals.

Look no further than JetBlue's $800m JFK Terminal 5, which boasts more than two dozen restaurants, an assortment of shops, free wireless, lounges, a kid's play area and even live entertainment: Swedish pop star Robyn made an appearance there in the summer of 2011. From Ermenegildo Zegna and Harrod's to Dior, Heathrow has some of the grandest pre-flight shopping anywhere. At Amsterdam's Schipol the Rijksmuseum operates a small annex for travelers with extra time and also opened an airport library in 2010.
Singapore Changi Airport, which won a Skytrax award for best airport leisure amenities, has a butterfly garden and nature trails, a Balinese-themed swimming pool, luxury shopping and a world-class Crowne Plaza. Not far behind is Hong Kong International, where travelers can enjoy a show at its 4D Extreme Screen theater, sneak in some golf at SkyCity Nine Eagles Golf Course or shop and eat endlessly at the airport's fabulous establishments.

So even if you have to show up early, live your indulgence... in an airport!
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Celebrate Twenty Years of Life at Vienna’s Life Ball www.SteeleTravel.com/lifeball

2012-01-18T11:17:00.000-05:00

VIENNA, AUSTRIA - Steele Luxury Travel recently announced that it will be the exclusive USA-base tour operator for the Life Ball for the fourth year in a row. This glittering event is Europe’s biggest HIV/AIDS benefit gala, one of the largest in the world, and by far the most fantastical.

Held in the ancient imperial capital of Vienna, the Life Ball is a dazzling, once-in-lifetime experience where some of the world’s greatest fighters and luminaries come together in the battle against HIV/AIDS. Bill Clinton, Janet Jackson, Sharon Stone and Brooke Shields are rich supporters in the cause and past attendees. In 2011, the Life Ball raised €1.9 million in one single night.

Founded in 1993, every Life Ball carries a theme and motto; starting in 2009, a cycle of the four alchemic elements began: Water ("Let Love Flow"), Earth ("Sow the Seeds of Solidarity"), Air ("Spread the Wings of Tolerance!"), and now, on May 19th, 2012, the primordial power of divine Fire takes the stage with "Fight the Flames of Ignorance!"

The Life Ball transforms the historic Viennese city hall into a phantasmagoria of light and sound, music and dance. Steele Luxury Travel guests will witness up close and personal the 2-hour-opening extravaganza on City Hall Square, before moving the celebration inside the gracefully gothic city hall. The grand chambers and yards of this historical building open up for guests in full costume or black tie dress, indulging them with an iridescent show comprising of live concerts by international stars exciting performances and culinary surprises until sunrise.

The audience can expect glitter and opulence on a mind-boggling scale, culminating in the grand finale fashion show - Donatella Versace, Jean Paul Gaultier, John Galliano, Vivienne Westwood, Roberto Cavalli, Gianfranco Ferré, Missoni, Moschino, Agent Provocateur, DSQUARED2, Kenneth Cole, Diane von Furstenberg, Calvin Klein, the Blonds for Patricia Field among others have presented their creations at the Life Ball.

Vienna’s Life Ball 2011 (Source:Dane Steele Green)

Having assisted you in securing your Business or Economy Class seats to Vienna, Steele Luxury Travel will welcome to you Austria before you before whisking you off to the casual luxury of Vienna’s Ring Hotel, your home base for the festivities. Those festivities, however, will for you continue long after the Life Ball itself: An exclusive tour of the Demel confectionary house and a grand post-Life Ball Sunday brunch await you.

And then there is Prague. Immediately following your Life Ball 2012 Experience, it is on to the capital of the Czech Republic, the gorgeous "City of a Hundred Spires" (today’s count is 500).

Spending two nights at the luxurious 5-star Roccoforte Augustine Prague, Steele Travelers will be treated to three unforgettable days in this fairy tale of a city, taking in historic sites such as the majestic Prague Castle, the Wallenstein Garden, and the famous Charles Bridge, before sitting down to the fine Czech culinary traditions unique to Central Europe. Following Prague, Steele Luxury Travel can assist in arranging further travel extensions, or guests can return home.

Please contact Steele Luxury Travel for more details on your flight arrangements and a full schedule of Life Ball 2012 events.

Roundtrip airport transfers are also provided for Steele Travelers on the Austrian Airlines group flight.
• Land Only: $2,950 Double Occupancy
• Single Supplement: $1300
• Prices do not include international or domestic airfare.

LINK: http://www.steeletravel.com/lifeball

Starwood Set to Open Up to 20 More Hotels in India www.SteeleTravelBlog.com

2012-01-13T08:47:00.000-05:00

Starwood Hotels & Resorts Worldwide, Inc. said it plans to open nearly 20 additional hotels in the fast-growing market of India by 2015. The company currently operates 33 hotels in India and claims to be the largest international hotel operator of four- and five-star hotels in India. Since 2009, Starwood said it has opened nearly as many hotels in India as rivals Hyatt, Hilton and Marriott combined.
In 2012, Starwood will continue its growth momentum from the luxury to mid-market tiers with the opening of ITC Grand Chola, a Luxury Collection Hotel, Chennai, Westin Chennai Velachery, ITC Rajputana, a Luxury Collection Hotel, Jaipur and two Aloft hotels. With the opening of the ITC Grand Chola Rajputana, the Luxury Collection brand will have nine hotels in India, making it the brand’s second largest market behind only the U.S.

“Starwood continues to widen our long-standing lead in India, which is second only to China in terms of our future global growth,” said Vasant Prabhu, Starwood’s vice chairman and CFO. “India’s breathtaking economic growth and the rise of its middle class have generated a keen appetite for high-caliber global brands. We expect to accelerate the expansion of all of our brands across India, where demand for new hotels is expected to far exceed supply for the next three years.”

In just four years, Starwood said it has grown its worldwide luxury room count by 73 percent, fueled by the popularity of its high-end brands W, St. Regis and the Luxury Collection in diverse global markets. The W brand will arrive in India in 2015 with the opening of the W Mumbai and the W Retreat & Spa Goa, which will be followed by the opening of W Noida, Delhi NCR in 2016. St. Regis will make its entry into India with the opening of The St. Regis Noida, Delhi NCR in 2016. With the debut of the W and St. Regis brands, Starwood will feature eight of its nine brand flags in India including W, St. Regis, The Luxury Collection, Le Méridien, Westin, Sheraton, Four Points by Sheraton and Aloft.

Driving growth in India is the increase in the number Starwood Aloft and Four Points by Sheraton brands. Aloft recently doubled its footprint in India with the opening of Aloft Coimbatore and will continue its rapid growth with new hotels opening in Ahmedabad and Chandigarh. Four Points by Sheraton benefits from the halo effect of the powerful Sheraton brand and its long legacy in India, and will add two new hotels in the next two years.

Reiterating its commitment to the region and to support the aggressive expansion plans of Starwood in the region, Starwood has relocated to a new state-of-the-art office in Gurgaon. Starwood has had a regional office in Gurgaon for over six years but it was no longer larger enough given the rapid expansion in the region. The new office at Vatika Business Park on Sohna Road houses a vibrant workspace for over 60 associates who actively work towards supporting Starwood’s growth strategy in the region.

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WOW!!! New rules require airlines to show fees with fares www.SteeleTravelBlog.com

2012-01-12T11:35:00.000-05:00

The cheap fares that some airlines advertise — $29 to here or $59 to there — may look more expensive later this month. The government is forcing airlines to be more upfront about what your flight will really cost.

The Transportation Department, as part of a new set of consumer-protection rules, is requiring airlines in two weeks to:

•Make sure that advertised fares include all government taxes and other fees that now are hidden behind asterisks or stuck in footnotes, but which can add 30% to 50% to a ticket price.

•Include any fees for checking bags when you book and pay for a ticket online. The goal is to prevent passengers who are checking bags from being surprised by the fees and having to pay them at the airport.

•Give customers 24 hours to change their reservations without having to pay rebooking fees. This would save passengers money in case they make a mistake.

At present, passengers often don't see the full cost of a ticket until the last steps of booking and paying for it online. Customers sometimes can't pay the baggage fee ahead of time, when buying through travel agents or shopping sites such as Expedia or Travelocity.

In addition to providing greater ease and transparency, the Transportation Department says, the new rules will let consumers more easily compare prices between airlines — some of which have built their business on advertising low fares.

The rules, Transportation Secretary Ray LaHood says, "will help ensure that air travelers receive the respect they deserve before, during and after their flight."

Many fliers — and even travel agents who work daily with fares and all the various fees — say some regulation is needed on ticket prices with all the separate fees that airlines now charge.

"Everybody is frustrated with the entire process," says Olga Ramudo, president of Express Travel in Miami. "What is happening now is that they can't make decisions based on the total cost of their airline ticket."

But many airlines object to the new rules. They argue that by telling them how to advertise, the DOT is violating their free speech. They complain that they'll lose customers. And they warn that providing more fare information could result in less transparency on what a flight will cost.

Allegiant, Spirit and Southwest airlines have asked the U.S. Court of Appeals for the D.C. Circuit to void the full-fare advertising rule. Southwest fears the rule will cost it $30 million because of losing customers and revising its frequent-flier program.

"Contrary to (the government's) claims, the full-fare advertising rule will have the effect of confusing customers and suppressing ticket sales," Southwest says in a court filing.

Allegiant and Spirit say letting passengers make free changes in their tickets for 24 hours would have "devastating consequences" for them because 90% of their tickets are sold in the week before a flight.

But nobody expects a delay to the full-fare rule. A three-judge panel refused in September to block the rule while the case is argued.

For the consumer

The new rules are the latest in a string of consumer-oriented regulations imposed on airlines by President Obama and his Republican secretary of Transportation, LaHood.

In the last three years, the Transportation Department has told airlines they can't hold planes on tarmacs indefinitely and that they must return them to terminals or face huge fines. It's required airlines to reimburse passengers with more money if they're involuntarily bumped from flights and if their bags are lost.

The department also ordered the airlines to post their baggage fees clearly on their websites. But the new rule goes further by forcing them to disclose baggage fees when tickets are booked. The rule is designed to prevent passengers from having to wait until they get to the airport to pay the fees, which can hit $25 or more for just the first bag.

Even sophisticated frequent business travelers see some sense in the new rules, even though many of them avoid paying baggage fees because they're members of elite frequent-flier programs or have company travel managers or agents book their flights.

"I don't like any surprises when I get to the airport," says Clarissa Cervantes, a research associate in Beverly Hills who flew nearly 100,000 miles last year, mostly for business.

"I think the overall issue is trust," says Navy Capt. Stephen Maronick, who works in personnel services in Guam and who avoids luggage fees as a million-mile flier with United and Continental. "The airlines are supposedly in a customer-service business, yet their practices are more akin to snake-oil salesmen and payday loan purveyors."

Paul Ruden, senior vice president for legal and industry affairs for the American Society of Travel Agents, says $25 to $50 baggage fees alone make it hard for customers to shop.

"It's not a trifling thing," Ruden says. "If you're a family of four, it really becomes potentially prohibitive if you don't know what you're doing."

The other side

The airlines say it's unfair to make them include government taxes and fees upfront as part of ticket prices.

Steve Lott, a spokesman for Airlines for America, says customers are used to buying everything from groceries to electronics with the taxes added on at the cash register.

And, they say, the fare disclosure rule may result in less price specificity. Because government fees vary depending on how many stops a flight makes, airlines probably will have to advertise fares in ranges.

For example, a Southwest passenger from Houston to Las Vegas has four choices of flights: a non-stop, stopping in El Paso, changing planes in Albuquerque or stopping in San Antonio and changing planes in Phoenix. But what has been advertised as a $192 fare under current rules would become a range of $201 to $212, making it harder to advertise and sell.

"For most of Southwest's markets, it will similarly be impossible to advertise a single accurate price to cover all possible itineraries between the passenger's origin and destination cities," Southwest says in its court filing.

Tickets include a 7.5% excise tax for the Federal Aviation Administration, passenger facility charges up to $4.50 a trip segment and a security fee for the Transportation Security Administration of $2.50 a segment. A flight from Peoria, Ill., through Chicago to Raleigh, N.C., for $238 in airfare hits $300 with taxes and fees.

Airlines contend that forcing them to reveal the $300 total cost upfront prevents them from exposing to consumers the government's sizable share of a ticket's price.

"We think that's wrong," says David Berg, general counsel for Airlines for America. "It's a limitation on our speech, both commercial and political."

The industry also says the rule isn't needed because customers rarely complain about advertising for ticket prices. The Transportation Department averages 7.7 complaints per 100 million passengers, compared with a one-in-a-million chance of getting hit by lightning, according to a legal argument the airlines filed in the case.

But government regulators and consumer advocates say the full-fare rule is needed to combat the splintering of prices.

"You can't confuse consumers about the actual price they are going to pay," says Robert Rivkin, the Transportation Department's general counsel.

Arthur Sackler, executive director of the advocacy group Open Allies for Airfare Transparency, a coalition of consumer groups, says, "It's important to be able to compare that all-in price on an apples-to-apples basis."

Information on changes

The new set of rules includes one that requires the airlines to give passengers prompt notification about flight cancellations, diversions or delays of more than 30 minutes. Another prevents the airlines from raising the price of a ticket after it's been bought.

The airlines fear that the government isn't done regulating them. The Transportation Department is expected to propose in August a rule requiring the disclosure and payment of more fees — such as those for early boarding, special seat assignments and meals — be bundled into a ticket's price.

"What has happened recently in the industry is we are seeing many more fees broken out in the price of air transportation," says Rivkin, the general counsel at the Transportation Department. "There are some airlines that have gone to extremes."

That next proposal could also allow travel agents and third-party sites such as Expedia and Travelocity to sell the extra services to customers rather than direct them to the airlines and their websites to purchase them.

"If these proposed rules are really consumer protection rules, it's difficult to see how allowing the carriers to hide the ball — which is what's happening — is the right outcome," says Brent Thompson, Expedia's vice president for government and corporate affairs.

But forcing airlines to provide pricing that way may be going too far, some legal analysts say. The airlines note that they already must post prices for services on their websites.

"I think they're a long way from ever being able to implement that," says Kenneth Quinn, an aviation lawyer with Pillsbury Winthrop Shaw Pittman in Washington, D.C.

"There is going to be a lot of resistance to those rules."

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American Airlines to Cut 150 Jobs, Eliminate Two Routes www.SteeleTravelBlog.com

2012-01-11T10:02:00.000-05:00

American Airlines, which filed for Chapter 11 bankruptcy protection in November, said that it will cut its flights to New Delhi and Burbank, Calif., and will also cut 150 positions. American’s Chicago-New Delhi service will be cancelled effective March 1, and the airline will stop flying between Dallas/Fort Worth and Burbank, Calif., effective Feb. 9. This will result in the closing of both Delhi and Burbank operations. Some operational and business changes that occurred prior to the company filing for reorganization will result in a reduction of approximately 150 airport-related employees.
The airline said that the flight cancellations and job cuts are related to normal business changes and aren’t specifically related to bankruptcy restructuring.
The job cuts will affect approximately 45 full-time Title II facility and automotive mechanics and 75 full-time Title III fleet service clerk positions in the U.S. In addition, 30 full-time Title III fleet service clerk positions in San Juan will be eliminated on Feb. 17. American warned that other “adjustments” may occur.
The airline said that it would make every effort to minimize the number of involuntary reductions by offering voluntary programs for TWU-represented airport employees. American said the job cuts were due to the loss of the U.S. Postal Service domestic mail contract, the closing of its ground service equipment refurbishment shop in St. Louis, and employee headcount changes related to its October 2011 winter service reductions.
American will offer the Stand in Stead (SIS) program, which provides terminated employees with voluntary separation benefits, including travel privileges.

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US Airways Installs First Class Section on Regional Jets www.SteeleTravelBlog.com

2012-01-10T11:00:00.000-05:00

US Airways has finished installing a first class section on 110 US Airways Express regional jets including the Embraer 175 and 170 and Canadair Regional Jet 700 and 900 fleets. The airline now offers seamless same-class service to more than 85 destinations.

First class has a dedicated cabin, bigger seats and more legroom, free snacks and alcoholic beverage, free pillows and blankets and priority baggage handling.

Delta adds $3 surcharge to flights to and from Europe

2012-01-06T11:00:00.000-05:00

By Nancy Trejos, USA Today

Delta Air Lines on Monday added a $3 surcharge each way to flights between the United States and Europe, a day after a European Union law went into effect charging airlines for their greenhouse gas emissions.

Trebor Banstetter, a spokesman for Delta, would not comment on whether or not the law, part of the Emissions Trading Scheme (ETS), was the reason behind the surcharge.
Rick Seaney, chief executive officer of FareCompare.com, which tracks fare changes, said "this small change is pretty clearly related to ETS."

So far, Delta is the only airline to add a surcharge, though Lufthansa Airlines said this week that it will have to add the cost of the new law to ticket prices.
Environmentalists have lauded the ETS, started in 2003, as a way to combat climate change. The airline industry appealed the law adding airlines to the program, but the Court of Justice of the European Union upheld it last month. The program caps carbon-dioxide emissions at 2006 levels and permits airlines to fly 85% that amount for free the first year and 82% after that. Airlines will have to pay for the rest as well as any increase in fuel burning by buying so-called allowances from industries burning less.

The International Air Transport Association estimates that the initial cost of the ETS in 2012 could be 900 million euros (about $1.2 billion) and rise to 2.8 billion euros (about $3.7 billion) in 2020. Airlines for America, an industry association, has said the law could cost U.S. airlines more than $3 billion through 2020.

Lufthansa Airlines on Monday said that it expects to incur additional expenses of 130 million euros (about $170 million) in 2012.

"Lufthansa will have to pass on the costs via higher ticket prices, as recommended by the EU," the airline said in a press release. "Lufthansa will therefore include the cost of purchasing the certificates in its existing fuel surcharge as of the beginning of 2012. However, it has no immediate plans to increase this surcharge."

Both Hong Kong's Cathay Pacific Airways and Singapore Airlines told Reuters that they too are not ruling out increasing fares.
"It is inevitable that increased costs will be passed on to the passengers. We will share the details at appropriate time," Carolyn Leung, a spokeswoman for Cathay Pacific Airways, told Reuters.
The European Union could still face pressure to scale down its plan. According to Bloomberg News, China's carriers today said they would not comply with the law, and a civil aviation ministry official from India said the country's carriers might withhold emissions data.
The airline industry has argued that it's doing what it can to improve fuel efficiency and reduce greenhouse gas emissions. The ATA said in a press release last summer that "the U.S. airline industry improved its fuel efficiency by 110% between 1978 and 2009, resulting in carbon dioxide savings equivalent to taking 19 million cars off the road each of those years."

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Turkish Airlines Launches Daily LA-Istanbul Flights www.SteeleTravelBlog.com

2012-01-05T04:28:00.000-05:00

Turkish Airlines has begun daily flights between Los Angeles and Istanbul. This is the only nonstop service between the two cities and the flights offer connections to Europe. The service is aboard Boeing 777-300ER aircraft.

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British Airways Introduces Upgraded Onboard Menus, Drinks www.SteeleTravelBlog.com

2011-12-19T17:26:00.002-05:00

British Airways is upgrading its onboard menus and drinks choice as part of a multimillion-dollar customer service program launched this autumn. The new menus include Hereford beef and corn-fed chicken for main courses in Club World as well as finger sandwiches and miniature pastries as part of the afternoon tea service. The airline is also making a new investment in Champagne and wines onboard with new premium vintages being introduced. Laurent-Perrier Grand Siècle is the latest Champagne to be featured in first class, while Club World customers will enjoy Taittinger.
For the first time, World Traveller Plus (premium economy) customers will enjoy Club World (business class) meals. All customers will now be able to choose from a range of Twinings speciality infusions and green teas in both British Airways lounges and onboard.

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Delta to Add 100 Flights, 29 Destinations from LaGuardia www.SteeleTravelBlog.com

2011-12-19T17:23:00.002-05:00

Delta Air Lines said that it plans to use its new New York hub at LaGuardia Airport to add more than 100 flights to 29 new destinations. Delta has more capacity out of LaGuardia thanks to a slot exchange of takeoff and landing rights at LaGuardia and Reagan National Airport in Washington, D.C. between Delta and US Airways.
Delta’s investment will be the largest single expansion by any carrier at LaGuardia in decades, with total flights increasing by more than 60 percent, and total destinations by more than 75 percent. By summer 2012, Delta will operate 264 daily flights between LaGuardia and more than 60 cities, more than any other airline.
Delta will offer more domestic flights and seats from New York's three major airports than any other carrier, with more than 400 daily domestic departures from LaGuardia, JFK and Newark to destinations nationwide. Delta's new hub will benefit consumers across the state of New York and the Northeast with convenient new nonstop jet service to LaGuardia.

W Paris -- Opera Hotel to Mark Brand’s Debut in France www.SteeleTravelBlog.com

2011-12-15T06:54:00.000-05:00

The coming W Paris -- Opera Hotel represents a new style for hotels in the City of Light. W Hotels Worldwide will mark its debut in France on Feb. 14 with the opening of W Paris -- OpÈra hotel. Owned by Barcelona-based Meridia Capital, the hotel is set inside an elegant 1870s Haussman-era heritage building.

Situated across the street from the OpÈra Garnier, W Paris -- OpÈra was conceptualized to create a dynamic dialogue between the historic faÁade of the building, Paris as the City of Light, and W’s DNA by infusing a sense of energy into the quintessential Parisian neighborhood. This approach results in a stimulating fusion of New York’s dynamism and its never-ending energy with the sophistication and culture of Paris.

The hotel design revolves around an oversized backlit digital undulating wall that defines the central core of the building and weaves through the public and private spaces. The “spark” will appear as a dotted pattern that forms abstract clouds. This wall will be set at various tempos to create different moods to match the season, event, time of day, and location within the hotel, bringing the historic building to life with a glowing vibrancy. The elevators, DJ booth and staircases will be cloaked in red to give the illusion of being inside an epicenter of energy.

Historic features of the 19th century building, such as ornamented columns, vaulted ceilings, marble staircases and fireplaces, have been partially restored, celebrated and often juxtaposed against contemporary elements. The original stained-glass windows and mosaic flooring on the second floor will be protected to reflect the building’s heritage.

The five-story hotel will have 91 stylish guest rooms, including 20 suites and two Extreme WOW Suites (W’s interpretation of the Presidential Suite). With soaring ceilings up to three and a half meters in height, the guest rooms and suites offer a contemporary, spacious design and stunning views of OpÈra Garnier and the Parisian streets. For more information, call 011 33 (0)1 44 77 10 68.

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American Awards Double Elite Miles for Travel Through Jan. 31 www.SteeleTravelBlog.com

2011-12-15T06:52:00.000-05:00

American Airlines is giving AAdvantage members the chance to earn double elite qualifying miles for travel on all flights operated by American, American Eagle or AmericanConnection through Jan. 31. Customers can qualify for elite status in the AAdvantage program by earning 25,000 elite qualifying miles for AAdvantage Gold status, 50,000 miles for AAdvantage Platinum status, and 100,000 miles for AAdvantage Executive Platinum status in a calendar year.

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Ethiopian Airlines Officially Joins Star Alliance www.SteeleTravelBlog.com

2011-12-14T12:11:00.000-05:00

Ethiopian Airlines officially joined the Star Alliance in a ceremony at Addis Ababa’s Bole International Airport. “Today we have taken a large step forward in completing our Africa strategy,” said Jaan Albrecht, CEO of Star Alliance. “With Ethiopian Airlines now part of the Star Alliance network, we offer our customers the widest choice of flights connecting to, from and within Africa.”
With the addition of Ethiopian Airlines, the Star Alliance network in Africa grows to cover major commercial and political cities of the continent particularly in East, Central and West Africa. In total, the 16 Star Alliance member carriers serving Africa offer more than 750 daily flights to over 110 destinations in 48 countries on the continent, with Addis Ababa, Cairo and Johannesburg serving as the main hubs.

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Delta Puts Elite Perks Up for Sale www.SteeleTravelBlog.com

2011-12-14T11:41:00.000-05:00

As this calendar year comes to a close, frequent travelers' thoughts turn to earning elite perks for 2012.
For those within striking distance of earning status, or upgrading from a lower to a higher elite tier, the typical strategy involves a mileage run—one or more flights taken to earn as many elite-qualifying miles as possible, at the lowest possible cost.
But if you're a member of Delta's SkyMiles program, there's another option for topping up your balance of Medallion-qualifying miles (MQMs).
Offer Details
Through December 15, Delta SkyMiles members may purchase up to 10,000 MQMs, as follows:

2,500 MQMs for $295
5,000 MQMs for $495
7,500 MQMs for $695
10,000 MQMs for $895

The purchased MQMs will apply toward Medallion status in 2012.
Deal or No Deal
Depending on the quantity purchased, the miles price out at between around 9 and 12 cents apiece. With non-elite miles generally available for sale at around 3 cents each, the MQMs look very expensive by comparison. On the other hand, because they count toward earning the benefits of elite status, they are worth more than non-qualifying miles.
How much more is in the eye of the beholder, and ultimately comes down to the value you place on a year's worth of elite perks.
If you're already considering a mileage run to top off your account, it's definitely worth comparing the cost of flying to the cost of simply buying the MQMs. Even savvy consumers will be hard pressed to earn 10,000 MQMs—the equivalent of two cross-country round-trips—for much less than $895. And that's without factoring in the value of the time wasted on a mileage run.
Reader Reality Check
How much would you be willing to pay for elite-qualifying miles?

Source: FrequentFlierCrier

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Delta Offers Full Flat-Bed Seats on U.S.-Brazil Routes www.SteeleTravelBlog.com

2011-12-13T09:20:00.000-05:00

Delta Air Lines now offers full flat-bed seats in BusinessElite on all flights between the U.S. and Brazil. It is now using 767-400ER aircraft, which offer full 180-degree flat-bed seats in BusinessElite between JFK and Sao Paulo. On Dec. 14, Delta also will begin using the 767-400ER on routes between Atlanta and Sao Paulo.

The aircraft upgrade increases the number of seats Delta offers on the routes by 17 to 18 percent. Previously Delta had operated the flights using smaller Boeing 767-300 aircraft. Delta operates 35 nonstop flights between Brazil and the U.S., including nonstop service from Atlanta, Detroit and New York-JFK to Sao Paulo, as well as nonstop service from Atlanta to Rio de Janeiro and Atlanta to Brasilia.

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British Airways Offers $2,012 Club World Fares to London www.SteeleTravelBlog.com

2011-12-09T22:39:00.000-05:00

British Airways is selling all-inclusive Club World tickets to London for $2,012 from the U.S. and Canada in a two-day sale. Customers can travel outbound between Dec. 20 and Jan. 5, 2012 and back by Jan. 8, 2012, giving them a Christmas and New Year in London.

The $2012 fare includes all taxes, fees and charges. This offer is valid from all 20 British Airways U.S. gateways and all four Canadian gateways, plus San Juan, Puerto Rico, to London Heathrow, Manchester and Edinburgh. The New York JFK to London City service is also included in this special offer.

Click here to visit the British Airways website for more details!

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Airbus predicts United will buy A380 superjumbo jet www.SteeleTravelBlog.com

2011-12-05T16:35:00.000-05:00

Will the Airbus A380 soon be flying for a U.S. carrier?
Ever since it made its first commercial passenger flight in 2007, aviation industry observers have been skeptical that a U.S. airline would decide to add the world's largest commercial passenger aircraft to its fleet.
But Airbus apparently thinks that's about to change.
Aviation Week reports:

United Continental Holdings is contemplating an Airbus A380 order, and while a final deal will take some time, Airbus expects the U.S. airline to adopt the double-decker for its extensive Asian network.

That came from Airbus COO John Leahy, who told Aviation Week he believes United Continental CEO Jeff Smisek has softened in his thinking that the A380 isn't a good fit for the route networks of U.S. carriers.

Still, Aviation Week writes that "when pressed on a pending United deal," Leahy said:

I'm not saying there is an order soon, but United understands that if it wants to have a major presence in Asia it needs the A380.

Leahy, who says Airbus views current Boeing 747 customers as potential A380 buyers, is quoted by Reuters as saying:

There are only two operators of the 747 in the U.S.: United and Northwest-Delta. And yes, those guys are in my sights, particularly United. Everyone in Asia-Pacific has A380s now... If you want to compete in Asia-Pacific, at some point in time United is going to have to get on board with the A380.

Airbus' A380s have sold well in Middle East and Asia, but have not been purchased by airlines in the Americas.
Nonetheless, Leahy was optimistic, telling Aviation Week he thinks the A380 will find its way to U.S. airlines as air traffic here puts an ever-increasing strain on the handling capacity of the nation's air traffic control system.

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American Unveils Interiors Designs for 777-300 ER Aircraft www.SteeleTravelBlog.com

2011-12-01T17:28:00.000-05:00

American Airlines, which this week filed for bankruptcy under Chapter 11, is publicizing the details of the interior selections for its fleet of Boeing 777-300ER aircraft, including fully lie flat First and Business Class seats, seating plans that will give the airline the opportunity to offer a premium product in the main cabin, and Wi-Fi capability.

The unveiling of the interior designs is an effort by the airline to show how it is using restructuring to improve its fleet and become more fuel efficient. American is scheduled to take delivery of 10 state-of-the-art Boeing 777-300ERs in 2012 through 2013, with London dedicated as a first market for this aircraft, and more markets to be announced. American is the first U.S. airline to order the 777-300ER and will be the first U.S. airline to take delivery of the 777-300ER.

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The Passenger Aircraft Caste System - Huffington Post

2011-11-28T16:51:00.000-05:00

First Class. When I hear those two words, I think of the comfort, service, warm chocolate chip cookies, pre-boarding and airport lounge access even though -- when I actually break it down -- I'm really just talking about extra space, a larger seat and a better meal: Big whoop. But it still intrigues me for some reason and I become obsessed with flying in the premier cabins of airlines, as do many other travelers worldwide. Actually, what makes flying up front on a commercial jet so alluring is that on an airplane, a simple caste system is created for the few hours you are in-flight.

On board, you have the Commoners in Economy, the Businessmen seated in Business Class and finally the Royals in First Class. The entire flow of how the system works is intriguing. The airlines have introduced these higher classes of service and certainly do their best to market and promote their premium cabins. Airlines work hard on promoting their "money making" seats, which always have to be the best on the competitive market in technology and comfort. Add a teaspoon of supply and fold it in with heavy demand and you've got yourself a sought out product that passengers yearn for.

In order for economy, business and first class to differentiate from one another, there are authentic rules and regulations to each of the three caste classes on board. The Commoners wait on long lines, pay extra fees for their bags, are limited to how much they can bring on board and receive poor service with little or no food on board. The Commoners are frequently not treated well by the flight crew, which we can also call the "hierarchy" to the caste system. Ahead of the Commoners comes the more monied caste. Members of the Business Class caste can check bags with no fees, have separate areas for check in for their caste class only and are invited to pre-departure lounges where they can mingle with other members of their caste prior to their departure. On board, they are offered spacious seats, gourmet multi-course meals, gift packages, and plenty of surprises. The Commoners are very aware of the Business Class. It is written everywhere--on airport signs, on the separate check in security lanes, and on a red carpet, which they are only allowed to step on at boarding time. The Business Class is always invited to board an aircraft first. This actually helps kick start the entire on board caste vibe.

As the Business Classmen take their seats, the champagne, juices and pre-flight services begin. The Commoners are then invited to board, passing right through the area that is dedicated only to business class travelers. As the lines to the back of the jet get backed up with people, the commoners get a glimpse of what is offered in front of them. They are teased as the upper class fidgets with their electronic massage seats while sipping on cold red wine and munching on salted nuts. Announcements are made of the entire PA systems. One may frequently hear remarks such as "Business and First Class passengers; make sure to have your electronic seats and foot rests in the upright position and be sure to stow your monitors.

The entire caste system on boards hears instructions for the elite casts, making these perks known. Why don't they segment the PA system? Once takeoff occurs, the curtains that separate the two classes are abruptly closed. Members in economy are in no way allowed to enter into the area of business class or they will be sent back to where they came from. Throughout the flight the commoners are continuously teased with the sound of luxurious silverware tapping on fake bone china along with the smell of delicious meals and warm cookies.

In front of Business Class is First Class where its Royalty members reign. This is the epitome of the hierarchy of the system. Members of this extremely elite caste of the plane are usually not seen, nor heard; individuals who are well known and need additional space, security and VIP treatment. They are most certainly kept away from the Commoners and most of the time from the Businessmen. One may never even see a Royal on board a flight as they are protected. Many airlines even offer private car service to and from the aircraft for the Royals.

Obviously, an individual must buy into one of the caste systems. The amount one pays for their ticket instantly classifies them places a monetary and social value on that an individual. The airlines offer incentives for higher paid tickets in their frequent flier programs. Their most loyal customers are showered with points; the more you fly, the more points you accuralaccrue the more you pay for your ticket, the more bonus points you receive. This causes a chain reaction, where the rich get richer, and the poor stay poor. Frequent fliers are invited to enter into a higher caste class when they reach specific status levels in their frequency of flying. One may be converted from a Commoner to a Businessman or from a Businessman to a Royal. However, under no circumstance may an individual jump two caste classes, the airline hierarchy will not allow that; for example Commoner to Royal - no way, it is impossible. If a traveler does not fly frequently nor pays into a higher caste class, they are assigned to the back.

It is shocking to realize that many travelers will pay over $5,000 for a flat bed for a single 8 hour period, but will not pay over $1,000 for their extra large-pillowtop-tempur-foam-plush bed where they spend an average of seven hours per night. The airlines (hierarchy) have made such a buzz about their premium cabins that individuals and corporations are throwing their money out on this product. Yes, one does get better rest in a larger flat seat, but is it really worth it? The onboard menu for the upper classes may have been mastered by a celebrity chef or a congress of intelligent sommeliers, but is the food ever really of high restaurant quality or beyond delicious? I may rather stop at Bennigans on the way to JFK and order an early bird meal to go. Here is another question for you: if economy class somehow introduced lie-flat seats for everyone, would business class passengers decide to save money and downgrade their travels to a lower class of service in economy? Is it really just the comfort?

Each passenger pays a different price for his or her selected class of service, depending on when it is purchased. The gentleman seated next to you might have paid $500 more for his ticket. The guy behind you, $200 less. And then you have the travelers spending up to $20,000 for their round trip ticket all the way up front in First Class. Take away all the extravagant sought-after perks, glitz, glamour and false opulence of a flight; the amusing thing is that every passenger arrives at their destination at the same exact time.

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Continental and United merger is 'on track' www.SteeleTravelBlog.com

2011-11-15T12:33:00.000-05:00

By Roger Yu, USA Today. In a recent speech, Jeff Smisek, CEO of United Continental Holdings, likened merging two large airlines to a total house remodeling.

"We are not doing painting and spackling here," he told a group of business executives in Chicago.

Like a large construction project, the integration of United and Continental airlines is having its share of drama: meshing disparate cultures; the issue of new union representation contracts running behind schedule; some disgruntled pilots; customer confusion; and a long to-do list that includes minute details such as the proper verbiage when warning flight attendants to prepare for takeoff.

Executives at United Continental maintain that crucial operational issues have been addressed and that the merger is proceeding without major glitches.

"From my perspective, things are on track," says Jim Compton, United Continental's chief revenue officer. "Merging two airlines is a long process and complicated. We have a lot of work ahead of us."

United and Continental announced their $3 billion merger in May 2010, creating the world's largest airline to be branded "United." They said they would generate up to $1.2 billion from cost savings and new revenue from their combined flight networks. The combined airlines would generate annual revenue of about $29 billion (based on 2009 financial results), they said. Shareholders approved the deal in September 2010.

For now, the two carriers are flying under their own banners, and the company doesn't expect to finish merging the two reservation systems until the end of March. But some early integration tasks, such as painting planes and replacing signs, are proceeding quickly. Other crucial customer service issues — aligning frequent-flier programs, recoding kiosk software, agreeing on a reservation system standard — have made progress, too, Compton says.

United Continental also has begun to rejigger the combined fleets by shifting some planes to better matching routes. For example, a United Boeing 777 plane, with both first- and business-class cabins, has replaced the business-class-only 757 jet used by Continental from Newark to Brussels, considered a premium market.

Mark Ozenick, an aviation consultant at SSA & Co., says dealing with mechanical and hardware issues is easier than combining and transforming the culture. "Where mergers fail is when they don't humanize the process and are not integrating the culture," he says. "Continental has a reputation for being very customer-centric. United not so much. At least that's the perception in the marketplace."

Potentially thorny labor issues, including settling on new union contracts and combining seniority lists, remain the largest obstacle to completing integration, says Robert Mann, an airline analyst at R.W. Mann & Co.

United pilots have also complained that training for new flight procedures is inadequate and asked a federal judge for an injunction to delay the implementation. The request was denied.

Protracted labor problems could worsen customer service, Mann says. "At the end of the day, it's still a service industry," he says.

Compton, however, says that the labor tussles will not affect safety. "They have never been a safety issue," he says.

Here are updates from several key areas of integration:

•Branding. The Continental brand remains prominent at gates and agent desks at its hub airports: Cleveland, Newark and Houston Intercontinental. At major United hubs, such as Chicago O'Hare and Denver, United's signs are bolder and larger, while Continental signs have been minimized. All Continental signs are scheduled to disappear by the end of next year.

About 40% of the combined fleet has been painted with the new United name and Continental's globe-like logo and blue color scheme.

•Ticketing. Both websites are active, and you can buy one carrier's ticket on the other's site. Phone agents from one airline can't serve the other's customers, but they now can transfer calls for premium customers.

Moving to one reservation system — they're consolidating to the old Continental system — is estimated to be completed by the first quarter of 2012. But airport kiosks already have been reprogrammed to process both carriers' reservations.

Continental and United agent desks are now next to each other at about 50 airports.

•Airport service. Most of the airlines' buy-in travel options haven't been combined. But with Continental offering fewer options, expect to see more of United's practices, such as faster check-in for a fee, emerge, United says.

The carriers' names for their airport lounges — Continental's Presidents Club and United's Red Carpet Club — have been retired and rebranded as United Club.

In its economy cabin, United boards its window passengers first, followed by those in the middle seat and aisle. Continental loads back-to-front. The combined carrier will switch to United's procedure next spring.

•Frequent-flier programs. United and Continental now run separate frequent-flier programs. But Continental's OnePass program will be closed at the end of the year, and its members will be automatically enrolled in the new combined program, to be branded MileagePlus.

It will offer four levels of elite-member status — 25,000, 50,000, 75,000 and 100,000 qualifying miles — that can be used for upgrades, faster boarding, waived bag-check fees and the Economy Plus seating that has more legroom. Each airline currently offers only three levels.

The new MileagePlus miles will expire in 18 months if the account is inactive, whereas Continental's miles now don't expire.

•Air service. Continental planes will continue to fly as Continental until the reservation systems are merged. But the company plans to retain Continental's two-cabin structure for at least several years. United's Economy Plus seating will be introduced to all 340 Continental's planes. Continental's first two planes with Economy Plus seats will start flying this month.

Otherwise, the fleets will largely be left alone. But some planes will be shifted to other markets. Some profitable routes — flights to London or Asia, for instance — will get the biggest, best planes.

Markets with less business travel demand may not need United's first-class cabin and could be served instead by Continental planes that have just economy and business cabins.

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