August Dispatches
The Alaska-Hawaiian merger is a go, and Frontier, Southwest, and Spirit make changes.
Notes from the Road
The harbor, Cirkelbroen, Nyhaven, Amalienborg, the Little Mermaid statue, Sortedams Sø, the list goes on. These are all sights in Copenhagen that I hit on a run last month. Exploring the Danish capital at the speed of run in the early morning hours of a blue-sky summer day is one of the most cathartic — especially after a transatlantic trip with kids — and wonderful ways to see a new place.
What I’m Writing
The Alaska Airlines-Hawaiian Airlines merger is a go. The Department of Justice’s review of the $1.9 billion deal ended anti-climactically Monday night when the review window expired. Now, only U.S. Department of Transportation sign off remains. The combination and integration of the 6th (Alaska) and 10th (Hawaiian) largest U.S. airlines by total seats can now move forward; the original timeline called for close sometime in the first half of 2025.
“The end of the people’s airline,” was how frequent Southwest Airlines flier (and companion pass holder) Saty Reddy reacted to the seating changes it unveiled in late July. Southwest will do away with open seating, add a premium offering, and launch red-eye flights next year. (The Washington Post)
(I also spoke with the Los Angeles Times on the changes from Southwest)
Spirit Airlines unveiled four new fare bundles that, as
put it, tries to “make it easier for people to fly them.” Whether it does or not remains to be seen. And the plan comes with the risk of alienating some of Spirit’s budget customers. (The Washington Post)JetBlue has an official turnaround plan, JetForward. It’s largely what Wall Street needed to hear, a back-to-basics blueprint to return to steady profits but includes the largest U.S. airline network retrenchment since the Great Recession. And the transformation won’t happen fast. (FlightGlobal)
Frontier adds New York-Las Vegas plus six more routes, United returns between San Francisco and both Detroit and St. Louis, and American connects Charlotte and Quebec City ahead of fall foliage. These are some of the exciting new airline routes launching in August. (Travel + Leisure)
I increasingly like the word “moat” as applied to the airline business. Airlines with moats, like Delta with premium travelers (or at least until the CrowdStrike IT outage), are financially outperforming those without. Allegiant Air is a budget carrier with a moat — low capital costs and a network with little direct competition — that, while facing the same challenges as the rest of the U.S. industry, sees a path back to sustained profitability without reinventing itself. (FlightGlobal)
Frontier Airlines deferred 54 Airbus models as its turnaround effort continues. The move is generally seen as positive but could create some negative cost consequences for the airline whose model is predicated on growth. (FlightGlobal)
What I’m Reading
Potential good news for Amtrak riders from Washington, D.C. The railroad may do away with the terrible queues to board trains after taking control D.C.’s Union Station on July 29. This would be a long overdue improvement. (For background,
did a good explainer of Amtrak’s “insane train boarding rules” in DC a few years ago)Australia has always been a tough domestic market for any airline that wasn’t one of the big two — Qantas and whoever its competitor is (today that’s Virgin, before that was Ansett). Rex, who during the pandemic challenged Qantas and Virgin on key trunk routes, suspended flights and entered administration on July 30.
Slate’s
had a fascinating series on the Paris Olympics, from officials’ unique approach to managing crowds on transit during the games to emphasizing cycling and their mixed economic results.I don’t envy Boeing’s new CEO, former Rockwell Collins chief Kelly Ortberg. He’s got quite the to do list that ranges from rebuilding trust in the airframer and certifying the much-delayed 737-7 and -10, and 777X programs. But at least he has the support of United CEO Scott Kirby.
A fully automated, modern Metro in the continental U.S. and not at an airport? It could happen in, of all places, Los Angeles, writes
.Speaking of automated Metros, Sydney has opened a 9.6 mile extension of its new M1 Metro line under its eponymous harbor and through the CBD. And that’s just the start, another extension will open next year and a line to the west in a few years. By 2030, Sydney could have 70 miles of automated Metro over four lines.
What I’m Listening To
FlightRadar24’s AvTalk is a perennial podcast favorite of mine. I recently joined Ian and Jason to discuss everything from Southwest and Spirit’s product changes to Boeing’s new CEO.