Archive for the ‘Southwest Airlines’ Category

Lining up to board a Southwest flight in Houston (Photo: Old Shoe Woman / Flickr)

Earlier this week, I wrote the following Op-Ed for the Atlanta Journal-Constitution. The newspaper asked me to write about what effect Southwest’s arrival in Atlanta would have on business travelers. My take? Most Atlanta business travelers are too heavily invested in SkyMiles and their “complex” relationship with Delta to give Southwest a try– so there won’t be that big of an effect.

Take a read and let us know if you agree…or not. (Here’s a link to the column on AJC.com)

Here goes:

Even with the exciting entry of a respected airline like Southwest Airlines, most frequent business travelers in Atlanta will continue to fly Delta Air Lines despite their complex relationship with our hometown carrier.

Atlanta business travelers love Delta for its deep southern roots. They appreciate being able to catch a Delta nonstop to just about every major city in the world, getting Porsche rides from the plane to the parking lot or relaxing in plush Sky Clubs.

But most of all, they love Delta for its SkyMiles program, and the dream of “free” travel and special recognition. Despite whining about the dearth of upgrades and difficulty finding award seats, they keep going back for more—and in fact go out of their way to earn those SkyMiles that they love and loath.

So for now, despite mixed feelings about Delta, frequent flyers in Atlanta will likely stick with it due to a mix of loyalty, inertia and fear of the unknown.

At the top of frequent flyers’ list of fears about Southwest is its so-called “cattle call” boarding process. Southwest does not allow advance seat selection. But those traveling on more expensive, less restricted tickets, elite level Rapid Rewards members and those who have paid an extra $10 “early bird” fee board first, and can lay claim to the best seats and overhead bin space.

But frequent flyers like the security of being able to choose their seat ahead of time. The boarding process at Delta is familiar, yet frustrating in Atlanta since so many elite-level passengers can skip to the front of the line, which feels like a cattle call. But at least there is no uncertainty around where they’ll be sitting—and frequent travelers don’t like uncertainty.

Then there’s the fear of getting on board a plane without wi-fi. While it’s aiming for fleet-wide wi-fi, Southwest has it on only 150 of 550 planes and makes no guarantees regarding availability. On the upside, wi-fi connections run a flat $5 per flight, regardless of flight length. But Atlanta-based business travelers have been spoiled by the availability of in-flight wi-fi on nearly 100% of Delta and AirTran flights. That certainty is increasingly important in our “always connected” business world.

Business travelers have plenty of other fears about straying over to Southwest: They fear starting off at the bottom rung at Southwest’s Rapid Rewards program, which is based more on how much you spend than how many miles you fly. With Southwest’s intention of eliminating AirTran’s popular business class, they worry about losing the ability to upgrade (or afford) to fly at the front of the plane on long flights out west. Time-deprived executives will be irritated at the extra step of checking Southwest.com every time they want to do a complete fare comparison, since its fares are not listed anywhere else.

But despite those fears, the fast-growing population of more independent business travelers who are entrepreneurs, freelancers or those who work for small and mid-sized companies will be the early adopters of Southwest. They are the ones for whom Delta’s $150 fee to change a ticket comes right out of their wallet, or shrinking per diem. (Southwest does not charge change fees.) They are the independent sales reps who must travel with a couple of suitcases of samples and don’t want to pay Delta’s $120 fee to check two bags roundtrip. (No bag fees on Southwest.) The ones who just want quick, dependable and cheap transportation and don’t care much about airport lounges, lie-flat seats to London or what type of metallic card is in their wallet.

So Atlanta-based business travelers shouldn’t expect any major changes when Southwest arrives at Hartsfield-Jackson next week, especially those with an expense account to fall back on. But if you’re an independent, budget-focused, or an up-and-comer without a big investment in Delta SkyMiles, you’ll find a fresh new option to consider on your next flight.

Agree or disagree? Are you too invested in SkyMiles to give the new kid in town a go? Or will you welcome Southwest with open arms…and open wallet? Please leave your comments below!

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Southwest Airlines route map showing new nonstops from ATL

Stay tuned to The TICKET for AirTran/Southwest news (and our commentary and advice) as Southwest enters the Atlanta market over the next few months. Here’s what we’ve got now…more on the way…

HERE COME THE RED BELLIES! This time next month, travelers at ATL will notice a new bird buzzing around the airport— Southwest’s Canyon Blue (upper fuselage) red (undercarriage—the “belly”– and tail) and orange (tail) Boeing 737’s. Empty planes will be ferried in from Dallas on Saturday, February 11, and the first scheduled Southwest flight will depart ATL on Sunday morning, February 12 at 6 a.m. destined for Baltimore. Later that day, flights will depart for Chicago MDW, Denver, Houston Hobby and Austin. On March 10 Southwest will add nonstops flights to Las Vegas and Phoenix. On June 10, it will add one daily nonstop between ATL and LAX in addition to AirTran’s three daily flights. Southwest flights will, at least for now, arrive and depart from Concourse C at ATL.

AIRTRAN DOWNSIZING. As Southwest moves in and re-arranges things to its liking, ATL will be losing some nonstops to smaller cities currently served by AirTran. Starting August 12, AirTran will stop flying to Allentown, Lexington, Harrisburg, Sarasota, Huntsville, and White Plains. Southwest will not deploy its aircraft on these routes leaving the nonstop market to Delta (only) so you can expect to see higher fares and more restrictions on those tickets. (See below…)

KEEP AN EYE ON SEATTLE. On August 12, those loooong flights between ATL and Seattle will changeover from AirTran to Southwest aircraft… meaning no more business class, and no more guaranteed Gogo wi-fi. (Southwest offers wi-fi on only 150 out of 500 jets now…so there’s no guarantee you’ll get it on the ATL-SEA flights.) Keep an eye on Seattle fares… it’s going to be interesting to see how Delta and Alaska Air respond as the only two carriers with nonstops with premium class service between ATL and SEA—and will help us predict how Delta will respond when Southwest no longer offers AirTran business class between ATL and other long haul west coast routes like Los Angeles or San Francisco.

SOUTHWEST AIRLINES ROUTE MAP. (See map above) If you are interested in watching how Southwest takes over AirTran’s hub at ATL…keep an eye on its route map. Right now, AirTran and Southwest offer two separate maps, and will continue to do so until they get a “single operating certificate” (SOC) from the FAA—expected this March. Southwest told The TICKET, “The Southwest route map shows what Southwest is currently selling; the AirTran route map shows the same for AirTran.  Until we obtain SOC from the FAA, the carriers continue to fly separately and have not published any schedules where the networks are connected. When Southwest launches ATL service on February 12, we’ll do so with the nonstops and published schedules we’ve already announced:  Austin, Baltimore/Washington, Chicago Midway, Denver, Houston (Hobby), Las Vegas Los Angeles, Seattle and Phoenix.  The Southwest map references those nonstop options and additional, published connecting services. AirTran continues to offer its schedule and, as the integration progresses, it will have fewer flights and Southwest will have more – more routes, more Employees, more aircraft, etc.”

ATL-DFW: A TASTE OF THINGS TO COME? As most TICKET readers know by now, AirTran/Southwest was forced to abandon its nonstops between ATL and Dallas Ft Worth due to the Wright Amendment. We predicted that fares would increase on the nonstop route dominated by only Delta and American. Today we got this email from TICKET reader RP: “Wow, what is up with prices from ATL to DFW on Delta? Pricing out three and four weeks in advance and its $700 round trip. I’ve been traveling from ATL to DFW for 11 years and have never seen prices like this outside of the 14-day window and plenty of seats are unsold.  Just for fun, I priced out a ticket for next week and it’s not much more.”

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AIRPORTS TRIM THE FAT. Eating healthy on the run has always been a challenge that road warriors must face, but the nation’s airports are beginning to take notice. According to the latest report from the Physicians Committee for Responsible Medicine (PCRM), which assesses the fare on offer at restaurants in 15 major airports, Delta’s Detroit hub offers some of the healthiest food option in the country. Other airports that ranked high include Washington Dulles and San Francisco. Airports are ranked based on the percentage of their restaurants that have at least one healthy option on the menu including a low-fat, high-fiber, cholesterol-free vegetarian entrée. Charlotte scored as the most improved in the country. Other top choices included Minneapolis/St. Paul, Dallas/Ft. Worth, Denver, and Miami. Atlanta’s Hartsfield Jackson and Washington Reagan National ranked at the bottom of the pack. (You know you’ve been sneaking in too much of that fried chicken and waffle fries at Popeye’s and Chick-fil-a.) Regarding Atlanta, the report offered this advice: “But travelers looking for healthful meals can find a few choices, including spicy tofu made with vegetarian broth at Asian Chao, burritos or tacos with black beans, pinto beans, or tofu crumbles and grilled veggies (hold the cheese) at Moe’s Southwest Grill, or Bistro Del Sol’s Mediterranean Trio: hummus, tabouli, and stuffed grape leaves.” Gosh, imagine what’s going to happen to the score when the Varsity arrives at ATL…What’s YOUR favorite food at ATL?? Leave your comments below.

DELTA SKY PRIORITY GOES GLOBAL. The Sky Priority branding familiar to Delta SkyMiles Gold, biz and first class passengers that provides expedited boarding, ticket counter assistance, and other preferred travel benefits in the US will now be adopted by the entire SkyTeam alliance. This means that eventually, the Sky Priority features will be available on all SkyTeam flights including the popular separate boarding lane allowing customers to bypass the line. It will take some time to implement this at all SkyTeam airports, but major hubs in the alliance network will see it first including Amsterdam, Nairobi, Shanghai, and Taipei. In 2013, the premium airport program will be rolled out at nearly 1,000 airports worldwide. SkyTeam is the first alliance to adopt such a program for its premium travelers.

DO BIZ TRAVELERS LUV SOUTHWEST? A Travel Leaders travel agent network survey found that many AirTran clients are seeking alternatives that offer a premium cabin now that Southwest has announced it will eliminate Air Tran’s business class offering. Southwest does offer two free checked bags and does not assess those awful $150 change fees, but many travelers have come to love their Delta upgrades and see them as the only solace left in today’s travel environment. Delta is bound to be the prime beneficiary of defectors, but other airlines may also take notice and offer competitive fares and frequent flyer promotions to lure away AirTran loyalists. What about you? Will you give Southwest a chance when it arrives on February 12? Please leave your comments below.

TECHNO-DELTA. PC World magazine named Delta the top tech-friendly airline in the US. Delta has been a leader in this category with amenities like recharging stations in the top 19 airport gate areas, a clever smart phone app, and more wi-fi equipped aircraft than any other carrier. A favorite of many passengers is the smart phone app’s baggage tracking feature and the ability to view upgrade lists in real time. The @DeltaAssist Twitter program also has earned instant respect from travelers who reach out for assistance during their travels and receive on-the-spot assistance. Do you agree? Please leave your comments below…

SKYMILES UP NORTH. Delta has signed a codeshare agreement with Canadian airline WestJet allowing travelers to earn SkyMiles, through check their bags, and book connecting itineraries with ease. In the partnership’s first phase, the Delta code will be placed on WestJet flights to 15 cities including flights between Toronto and Edmonton, Halifax, Kelowna, Ottawa, Regina, and Vancouver; between Calgary and Las Vegas, Vancouver, and Victoria; and between Vancouver and Honolulu, Kelowna, and Las Vegas. The WestJet code is being placed on flights to five Delta city pairs including between Detroit and Montreal, Quebec City, and Ottawa; and between Boston and Toronto.

AIRTRAN DUMPS XM. Atlanta is preparing for Southwest’s arrival, which will bring many positive changes for travelers like no baggage or change fees. However, one change will not be so exciting. Southwest has opted to remove XM satellite radio from Air Tran planes to standardize its entire fleet. The free amenity will be removed from planes progressively beginning immediately. What do you think? Did you use the XM service? Will you miss it? Leave your comments below.

NEW FLIGHTS TO HAITI. Delta will launch new Saturday-only flights from Atlanta to the Haitian capital Port Au Prince April 7. This new flight follows a two-decade hiatus for nonstop service from Atlanta. Delta also flies daily from JFK to Port Au Prince to serve the large Haitian community living there. After the massive earthquake in Haiti two years ago, Delta was among the first airlines to fly relief aid to the country.

If you’ve been putting off business trips, blown off your family back home, or missed that romantic weekend away because airfares are too high, you should check out the new “dead week” deals offered by AirTran and  Southwest.

Dead weeks are the annual low points in travel demand, which ironically come in the midst of the peak holiday travel season. And when demand plummets, so do prices. However, the catch is that you’ve got to travel when everyone else is staying at home.

Dead weeks typically fall during the first few weeks of December right after the big Thanksgiving rush, and again right after the Christmas/New Years rush in early January.

In a 72-hour sale that starts today,  AirTran and  Southwest are now offering some pretty remarkable fares for travel during this period. Keep in mind also that hotel rates plummet during this time (except in NYC during December). There are also tons of last minute deals as desperate suppliers try to dump unsold seats, rooms and cars. Transcons between ATL and West Coast cities for less than $300? Those are very good deals.

Here are some examples of the deals from Atlanta on AirTran…I imagine by the time you read this other airlines will have matched them. For 72-hours only, you can purchase one-way tickets for $35, $65, $95 or $125 based on length of travel (Add $25-$35 to each of these round trips to cover taxes/fees. Fares are not valid on SUNDAYS.)

• For travel up to 450 miles, fares are $35 one-way, $70 round trip. (Charlotte, Jacksonville, New Orleans, Tampa)
• For travel 451 to 1,000 miles, fares are $65 one-way, $130 round trip. (Baltimore, Boston, New York City, Washington DC, Key West)
• For travel 1,001 to 1,500 miles, fares are $95 one-way, $190 round trip. (Denver, Portland ME)
• For travel 1,501 or more miles, fares are $125 one-way, $250 round trip. (Los Angeles, Las Vegas, Phoenix, San Francisco, San Jauan, Seattle)

These low fares are available for purchase through 11:59 p.m. PST October 20, 2011, for travel beginning Nov. 30 through Dec. 14, 2011 and Jan. 4 through Feb. 15, 2012. See  www.airtran.com.

This week Southwest Airlines CEO Gary Kelly took a few minutes to chat with The TICKET about the arrival of those red bellies at ATL in February.

In this interview, Kelly talks about fares and fees, pointing out that Atlantans will soon have access to Southwest’s vast low-fare network.

He also shows no shame in discussing Southwest’s boarding process (which some refer to as the “cattle call”), no assigned seating, or the fact that Southwest plans to eliminate AirTran’s popular business class. He stresses that Southwest offers a different product than what we might be used to, but he’s clearly confident that Atlanta travelers are going to appreciate those differences.

It’s a great interview and we are very flattered that Mr Kelly took the time to talk to The TICKET! Take a look!

Please post your comments and questions about Southwest below.

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The red bellies are coming! The red bellies are coming! At long last, Southwest Airlines has announced that it will begin flying between Atlanta and five cities starting in February.

Below you’ll find its press release announcing the new flights.

Stay tuned for more news and analysis in a future issue of The TICKET. For now, we just wanted to get the news out.

Please take a moment and leave your comments and thoughts about Southwest.…have you flown it before? Are you happy or sad that it will be replacing AirTran? What are you most looking forward to with Southwest? What will you miss the most about AirTran? Please leave your comments in the space below.

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Southwest Airlines Announces Fares and Flights to/from Hartsfield-Jackson Atlanta International Airport

- Initial Schedule of Fifteen Daily Departures Begins Feb. 12, 2012
– Fares starting as low as $79 one-way
– Southwest, AirTran Take First Steps to Blend Frequent Flyer Programs

Southwest Airlines is launching new service to Atlanta (ATL) on Feb. 12, 2012, bringing greatly reduced fares and new flexibility for both business and leisure Customers. With initial fares for nonstop travel as low as $79 one-way, the first Southwest flights to and from Georgia will also mark a significant and eagerly anticipated milestone in the carrier’s acquisition of AirTran Airways.

Southwest President, Chairman, and CEO Gary Kelly revealed details of Southwest’s first Atlanta schedule during a luncheon with the Metro Atlanta Chamber of Commerce.

“We’re bringing especially great value to those of you who travel last-minute,” Kelly told the audience of business leaders. “Here in Atlanta, our fully refundable, walk-up fares will be, on average, more than 30 percent lower than anything currently in these markets. And we are bringing the flexibility Southwest Customers already enjoy in other cities because we don’t charge a $150 fee simply to change your plans.”

From Atlanta, Southwest initially will offer 15 nonstop departures each day to five destinations: Baltimore/Washington (BWI), Chicago Midway (MDW), Denver (DEN), Houston Hobby (HOU), and Austin, Texas (AUS)–a route not previously served by AirTran Airways.

NEW ATLANTA SERVICE BEGINNING FEB. 12, 2012 (open today for purchase on southwest.com):

$99 each way between Atlanta and Austin - two daily roundtrips

$79 each way between Atlanta and Baltimore/Washington- four daily roundtrips

$99 each way between Atlanta and Denver - two daily roundtrips

$99 each way between Atlanta and Houston Hobby - three daily roundtrips

$79 each way between Atlanta and Chicago Midway – four daily roundtrips

The nonstop flights make possible additional direct or connecting service between Atlanta and 48 destinations on Southwest Airlines.

The inaugural schedule also brings, for the first time, one-stop/no change-of-plane service between Atlanta and Dallas’ Love Field on Southwest Airlines.

In a first step toward blending frequent flyer programs, Kelly announced top-tier members of both carriers’ frequent flyer loyalty programs– A-List Members of Southwest’s All New Rapid Rewards and elite A+ Members of AirTran’s A+ Rewards–will enjoy some, limited reciprocal benefits when flying on either carrier beginning today.

A-List benefits include extra Rapid Reward points, Priority Boarding, access to priority security lanes, and more. On the flip side, Southwest A-List and A-List Preferred Members booking on AirTran will get Free Business Class upgrades, no baggage fees, and all other benefits that AirTran’s elite Members enjoy.

Visit southwest.com/travelexperience to learn more about Southwest’s legendary Customer Service with No Hidden Fees. Southwest doesn’t charge a fee to check a first or second bag; there’s no charge for onboard sodas or snacks; there’s never a fee to speak with one of our Agents on the phone; and Southwest does not charge a fee to change a reservation.

In its 40th year of service, Southwest Airlines continues to differentiate itself from other low-fare carriers–offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation’s largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. With the addition of Atlanta, Southwest will serve 73 cities in 38 states and remains one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 35,000 Employees.

Introductory Fare Rules

Southwest Airlines sale fares are available for purchase Aug. 22, 2011, through Sep. 5, 2011, 11:59 p.m. PDT, and travel must take place between Feb. 12, 2012, and March 9, 2012. Fares are available only on southwest.com or swabiz.com. Fares do not include a federal excise tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Seats are limited. Fares may vary by destination, flight, and day of week, and won’t be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel. Fares may be combined with other combinable fares. Fares are not combinable with Senior Fares. When combining fares, all rules and restrictions apply. Fares are nonrefundable but may be applied toward the purchase of future travel on Southwest Airlines. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only.

Is loyalty really a two-way street, as Delta points out here in a recent ad campaign?

Delta really raised the ire of its frequent flyers this month with a last-minute, poorly announced rule change. Starting August 15, if you want to change or cancel a SkyMiles award flight within 72 hours of departure, your miles will be forfeited.  You read that right: If you must change or cancel your award flight within 72 hours of your trip, you now forfeit the miles. Poof! Gone! Buh-bye…

SkyMiles can still be redeemed for flights within the 72-hour window (without a close-in booking fee), but all awards now become non-refundable and non-changeable within 72 hours of the departure flight. There are no exceptions to this rule for Platinum or Diamond members. Delta “announced” the rule change just this week (see below)–only six days prior to its effective date of August 15.

This means, for example,  that if you redeemed a ticket for a flight at the high level and it drops to the lower level two days before departure– too bad, you are stuck paying the higher amount of miles.

Delta claims this is to prevent misuse by members who have been booking award seats and then not actually traveling on them (later requesting a change or refund) and causing as many as “a million seats”  to fly empty.

Limiting cancellations with this policy might hold some weight…but we feel Delta’s very best customers– those who have shown enough loyalty to earn award flights–   should still be allowed to at least change their ticket within 72 hours.

We at The TICKET were as stunned as everyone else when we received word of this most recent, radical change, and contacted Delta for confirmation. The news was indeed confirmed, and we were told to find Delta’s explanation for the change on social media channels…interestingly, the change was not officially announced anywhere on Delta’s web site. [Update: We found it on Delta's site today.]

On Milepoint.com, we found the following (surprisingly smug and somewhat condescending) post from Delta’s social media maven:

Late last month, I posted information about recent changes to our Award redeposit policy. The changes were made after we reviewed the number of award seats that were going out empty and the number was large – massive, in fact. So we made some adjustments to help address the situation and increase award availability.

In response to that post, members asked if we were looking at making changes to the policy for any time prior to departure. In fact, we were. During that review we determined that there are more than 1,000,000 award seats that were going unused at the 72 hour mark prior to departure. That is 3 days in which those seats could otherwise be sold or used for other SkyMiles members who truly intend to sit in the seat and travel.

As a result, we’re updating this policy once more. So, effective August 15, 2011, SkyMiles members who wish to cancel or make changes to their award ticket now need to do so at least 72 hours before their flight departure (for changes, this applies to each flight segment – outbound and return). This change will make those seats available to other members and ultimately increase award availability. Miles for tickets cancelled within 72 hours will be nonrefundable. Taxes and fees for award travel cancelled within 72 hours will be refundable upon request. Same-day standby options will remain.

For changes or cancellations made at least 72 hours prior to departure, Diamond and Platinum Medallion members will continue to receive reissue and redeposit fee waivers. Reissue and redeposit fees will continue to apply for other members.

We will be sending out an email to customers with advance award travel booked later today – delta.com is being updated with this information as well.

Because it was a trending theme in last month’s thread, let’s address another issue head-on. We understand that extenuating circumstances do happen and our agents are equipped to review those situations on a case-by-case basis to determine if an exception is warranted. (Just do us a favor and try to make sure it’s not the 8th time your great uncle has passed away.)

Candidly, we expect that this change may be unpopular with some – and we will hear all of your concerns related to it – so we are communicating this early and will be sending a variety of communications to customers later today. When program changes occur, we want our members to be aware of them so that they can adapt accordingly.

Now let’s start the conversation. I’m gathering your comments and bringing them all back to the team…

Michelle, SkyMiles | Delta Social Ambassador

A Delta 2-Million Miler wrote to The TICKET in disbelief, but thankful that he made a last-minute change last week, before the policy went into effect, “I was one of those last minute changes just last week when an unexpected business meeting caused me to cancel plans for AMS and CDG. But these things do happen, and to lose your miles is just harsh, very harsh.”

[Update:] On the other hand, another TICKET reader from Dallas writes: “Diamonds were booking business/first class seats using miles but not putting in their Skymiles number (since you can book a seat using miles for anyone). Then, the same Diamond would book a coach seat in hopes of getting an upgrade to business/first -naturally this reservation contained the sky miles number. The net result is a double booking of this person. Once they get the upgrade on the coach booking, they would call and cancel the second reservation booked in business/first with miles – sometimes while at the gate – which caused seats to go empty. I find it hard to believe that it resulted in one million going empty – but I see Delta’s point. A few people found a loop hole, exploited it, and we are all paying for it.”

So, TICKET readers, what do you think? Is this fair? Will it affect you? Is Delta making a smart business decision that will improve SkyMiles for everyone? Or is this just one more of the proverbial 1000 cuts? Does it make you feel more like checking out what Southwest will bring to the table next year?  PLEASE LEAVE YOUR COMMENTS BELOW!

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UPDATE Sunday 7:45am: AP reports all airlines except Alaska, Frontier and Virgin America have raised fares. Only those travelers who acted fast were able to take advantage of the short term discount mentioned below. http://finance.yahoo.com/news/Airlines-are-taking-savings-apf-1533581816.html?x=0&.v=8

Original story posted Saturday morning: Due to the budget stalemate in Washington, airlines stopped collecting some federal taxes on airline tickets at 12:01 Saturday morning.

This means that most airline tickets bought from now until there’s a budget agreement in Washington will not be subject to the 7.5% federal excise tax, the $3.50 segment fee, or the $16.30 international departure tax.

For example, travelers booking now will get a savings of $37 on a typical $400 domestic fare.

The higher the fare, the more you save on the federal excise tax. So, let’s say you need to take a quick trip to New York next week and the last minute fare is $1000 round trip– you’ll save $82 on that fare.

While airlines may be price matching soon or already — just raising fares to make up the difference and pocket the windfall–  a Delta spokesperson told The TICKET that the carrier is not collecting the federal taxes and has not increased fares as a result, and ticket prices have declined. Similarly,  a United spokesman said this morning that the carrier has stopped collecting the taxes and while its base fares remain unchanged, the final ticket price to the consumer would be less. Also, Alaska Airlines told the Seattle Times that it is not collecting the tax and its customers would save about 14% on ticket prices as a result.

However, a spokesman for AirTran (and Southwest) said that the carriers have raised roundtrip fares $8 “to offset industry cost pressures.” That means that AirTran’s ticket prices today will be more or less the same as they were yesterday. Also, the Washington Post reports that American and US Airways have raised fares to offset any tax savings.

So if you’ve been sitting on a fence about a fare, now might be a good time to go ahead and bite the bullet– at least on Delta, United, Alaska and Virgin America. But keep an eye on this…as always fares are subject to change!

If steep fares are keeping you grounded this summer, there’s relief in sight.

AirTran has kicked off a big sale for fall travel with fares significantly lower than what we are paying this summer. If you have firm plans to travel this fall, The TICKET recommends that you take advantage of this sale.

Systemwide fares are based on mileage and priced at $40, $80 or $120 each way.

Sample fares for travel between August 23 through November 16 from ATL. (Fridays and Sundays and Labor Day–Sept 1-5–  are blacked out.)

>Indianapolis, Memphis, Jacksonville: $40 each way; $80 round trip

>New York, Houston, Philly: $80 each way; $160 round trip

>Los Angeles, San Francisco, Seattle: $120 each way; $240 round trip (wow! that is SUPER dirt cheap for west coast flights)

If these fares sound good to you (and they should!) you must act fast: The sale is only good between now and 11:59 pm Thursday.

Although they have not formally announced a sale matching AirTran yet, when searching for fares on Delta.com or other carriers, you will find those that match AirTran’s (in markets where they compete nonstop.)

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The Steven Penley (a noted Atlanta artist) painting presented by AirTran CEO Bob Fornaro to Southwest CEO Gary Kelly to celebrate their historic deal. The work depicts an AirTran 737 and a Southwest 737 with the Atlanta FAA tower, the Atlanta skyline, Falcons 1 tail, and several AirTran Atlanta sponsorships such as Georgia Aquarium, Woodruff Arts Center, Centennial Olympic Park, UGA, Georgia Tech, Georgia State, Atlantic Station, etc. What do you think?

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The following is a statement provided by AirTran regarding the closing of its purchase by Southwest Airlines today. In a nutshell, not much will change for AirTran customers until next year. We’ve emphasized the most important parts of this statement:

Southwest and AirTran will immediately begin the work to integrate AirTran into Southwest Airlines.  However, AirTran will continue to operate under the AirTran brand with its same policies, procedures, and product features for a period of time. Southwest plans to integrate AirTran into Southwest Airlines over time by transitioning the AirTran fleet to the Southwest Airlines livery, developing a consistent Customer Experience, and transitioning the operations of the two carriers onto a Single Operating Certificate.  Southwest currently expects it will obtain a SOC in the first quarter of 2012 and estimates it will take several years to fully transition AirTran into Southwest Airlines to become one airline.

In the near term, Customers can expect to interact with each carrier as they always have. Customers flying on AirTran will continue to make reservations or check in at airtran.com or by calling 800-247-8726, and visit AirTran kiosks and ticket counters.  AirTran Crew Members (employees) will assist on scheduled AirTran flights. Customers flying on Southwest will continue to make reservations or check in at southwest.com or by calling 800-435-9792, or at Southwest kiosks and ticket counters.  Southwest Employees will assist on scheduled Southwest flights. Customers will continue to earn and redeem through the respective frequent flier loyalty programs, as they do today, until those programs are combined over time.

Southwest plans to provide the ability for Customers to connect across the networks and integrate key Customer Service policies for a more consistent Customer Experience, in the fall or early next year, depending on both companies’ readiness. Any changes to the Customer Experience on either carrier will be communicated in advance via southwest.com, airtran.com, and in direct Customer communications.

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(Photo: Andertho / Flickr)

SOUTHWEST + AIRTRAN DEAL. Southwest Airlines has announced that its deal to purchase AirTran will close on May 2. However, the announcement indicated that full integration of the two airlines will not be complete until 2013—that’s two years away. They won’t even operate under a single certificate until 2012. This means that for the time being, Southwest will likely operate AirTran as a subsidiary.

So, folks, it’s going to be a while until those Southwest redbellies roar over ATL. AirTran’s business class, reserved seating and A+ Elite program benefits will remain intact for the time being. But the eventual integration of the two carriers, and Delta’s reaction, is going to be very interesting to watch.

Stay tuned to The TICKET for details as it all unfolds!

Expect a lot more details and a clearer timeline once the deal closes on May 2.

>>SCROLL DOWN FOR MORE NEWS!>>> DELTA UPDATE COMING NEXT WEEK!>> SCROLL DOWN

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Attention AirTran A+ Rewards members: Your frequent flyer program is going to change. Big time.

This week Southwest Airlines announced a complete revamp of Rapid Rewards, its frequent flyer program. With the impending takeover of AirTran by Southwest, we’ll all be Rapid Rewards members late this year or in early 2012.

Let’s take a look at some key components of the new Rapid Rewards program and compare them to the current A+ Rewards plan and speculate a bit on how the transition from A-Plus to Rapid Rewards might play out.

On March 1, Rapid Rewards is changing from a flight-credit based program very similar to that of AirTran to a points-based program. Points earned are based more on how much you spend than how often or far you fly.

The new program is more appealing to business travelers, who typically pay more for less restrictive fares. It’s less appealing to those who typically fly on very low discounted fares.

So if you are a frequent business traveler who tends to fly more at the last minute and pays higher fares, you will probably like Rapid Rewards. If you are a bargain-hunter and stick to the lowest fare categories, the new Rapid Rewards program is probably going to have less appeal than AirTran’s A+ Rewards.

>EARNING. With AirTran’s A+, members earn one flight credit per segment no matter how much it costs. 16 segments equal one free roundtrip. With the new Rapid Rewards, members earn points based on fare paid. For example, on a Southwest deeply discounted $100 “Wanna Get Away” one-way fare you’ll earn 600 points– six points per dollar. If you choose to pay the $200 “Anytime” fare, you’ll earn 2000 points– 10 points per dollar. And if you choose the most expensive “Business Select” fare of $220, you’ll earn 2,640 points– 12 points per dollar.

>REDEEMING. With AirTran’s A+, you redeem your credits for an award certificate. When you book your award flight using that certificate, you are subject to availability and blackout dates. With the new Rapid Rewards program, you use your points like currency to “buy” any available seat listed on Southwest.com—there are no blackouts or availability issues. So if you find and book the least expensive “Wanna Get Away” one-way fare that normally sells for $100, it will cost 6000 points. The less restrictive $200 “Anytime” fare will cost 20,000 points. Business Select fares ($220) would cost 26,400 points. TIP: AirTran members should go ahead and redeem credits for long-distance and/or business class awards this year while the going is good.

>EXPIRATION. One of the most frustrating features of AirTran’s A+ program is the short shelf life of flight credits— one year for regular members or two years for elites and those holding the A+ Visa card. With the new Rapid Rewards program, points expire only if you don’t have any earning activity within a 24-month time period.

>INTERNATIONAL FLIGHTS. Just like AirTran’s A+ Rewards program, Southwest has teamed up with a third party travel agent allowing members to use their points to “buy” tickets on other carriers. (Details are somewhat sketchy here, but if the program is similar to that of AirTran, tickets for international flights will require a hefty redemption of points . . . but at least it’s an option for members who’ve banked lots of points.) The option differs from AirTran’s by requiring those who want to take advantage of it to hold a $59/year Southwest Rapid Rewards credit card.

>ELITE LEVELS. AirTran offers just one level of elite status to those who earn at least 25 flight credits in a rolling calendar year or 10 credits in a 90-day window. To maintain elite status, A+ members only have to earn 12 credits in a rolling 12 month period. The new Southwest program will offer two elite levels: A-List, A-List Preferred, plus the popular Companion Pass. Members have to fly 25 one-way segments or earn 35,000 “tier qualifying points” to qualify for the A-List. For the A-List Preferred tier, you must fly 50 one-way segments or earn 70,000 tier qualifying points. To help build point banks faster, A-List members get a 25 percent booking bonus; Preferred members get a 100 percent bonus. (AirTran does not offer any flight credit bonuses to elite members.) Members who fly at last 100 one-way segments or earn 110,000 points (even if they are just standard points from Southwest credit card purchases, not the “tier qualifying” points needed for A-List or Preferred) get a “Companion Pass,” allowing one designated person to fly free with the member for a year.

>UPGRADES. AirTran A+ Elite members can use their credits and status to upgrade to business class. Southwest has stated that it will replace AirTran’s business class with its all coach product. While Rapid Rewards elites won’t be able to upgrade to a big business class seat, they do get other perks such as access to special lines at check-in and airport security, early boarding and standby priority.

>FREE WI-FI. With the new Rapid Reward program, those near top of the heap, A-List Preferred and Companion Pass members, will get free Wi-Fi access on all Southwest flights. Currently Southwest has close to 100 planes with Wi-Fi with plans to have it fleet wide within two years. As TICKET reader know, all of AirTran’s planes are equipped with Wi-Fi, but with a different system (Gogo) than the one Southwest has chosen. Time will tell how that part of the transition works!

>TRANSITION. Southwest is hesitant to address transition to the new program until the transaction to buy AirTran closes. I assume that it will offer AirTran A+ members the same deal it’s offering Rapid Rewards members: current banked flight credits will retain their value until they are used or expire. If you don’t have enough credits for a free flight, you’ll be able to “buy” them for 1200 points. Fair enough. I also assume that Southwest will honor AirTran elite status, but the jury’s out on how it will determine which level of Rapid Rewards elite they’ll get.

For a peek and more details of the NEW Rapid Rewards program, check out the new site here: www.newrapidrewards.com

So, what do you think? Is this good or bad news for A+ Reward members?

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Full, friendly service on a recent AirTran flight between ATL and SFO.

Elite level members of AirTran’s A+ Rewards program are getting more opportunities to sample the joys of business class this season. Enjoy it while you can because those big seats are reportedly going to disappear later in 2011 when Southwest takes over.

Here’s the deal: AirTran soft-launched a promotion last Wednesday (December 8 ) and it runs through February 18, 2011.  Elites traveling on discounted coach fares will now be upgraded (if there is a seat available in Biz Class) at 24 hours prior to departure.  Prior to Dec 8, they were eligible for upgrades 40 minutes prior to departure and it was a manual gate agent process.  Now it is automated, and they know if they are upgraded at time of check-in.  (The official announcement about this goes out next week.)

As a permanent policy change, AirTran is allowing Elites to call the special Elite number, the A+ number or the 800-AIRTRAN number to pay for an upgrade on any coach fare 48 hours prior to departure.  (This part is permanent, not a promotion.)

All in all, this means that Elites will now have more opportunities to sit upfront:

>They can buy a Business Class ticket – A fare – and sit upfront.

>They can buy a full coach ticket (Y or B) and be upgraded at time of booking if seat is available.

>They can buy a discounted coach ticket and pay the upgrade fee 48 hours prior to departure by calling us.  Permanent change.

>And through February 18, they can buy a discounted coach ticket and get the complimentary upgrade 24 hours prior to departure (instead of 40 minutes) – and check-in is allowed 24 hours prior to departure so they know they are upgraded when they check in.

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(Photo: testpatern / flickr)

WORD OF WARNING: If you think you’re beating crowds by taking off for Thanksgiving this weekend, beware. Airlines and online travel agents report that some of the holiday’s busiest days will be this Friday and Saturday. In another new twist, the TUESDAY before Thanksgiving is expected to be busier than Wednesday, a traditional peak day. And as always, be prepared for tough days at the airport on the Sunday and Monday after Thanksgiving— be particularly wary of Monday morning back ups at airport security checkpoints. Add to that a high level of angst about new security screening procedures and we are ripe for disruptions this week. Plan accordingly.

BODY SCANNERS. In case you’ve not been to ATL lately, there are now 14 of the controversial new full-body scanners scattered across all four security checkpoints. Some good news: The scanners in use at ATL are “millimeter wave” machines instead of the newer “backscatter” ones now being rolled out across the country. I’m no expert on radiation, but from what I’ve read, the millimeter wave scanners use radio waves which sounds less threatening than the low-dose X-rays used by the newer backscatter machines. There’s a lot of hyperbole surrounding the machines this week, so if you are interested in reading a well researched and informative article, check out this one from Bloomberg (written by a fellow TICKET reader Mary Jane Credeur!) One good nugget from the article: A radiology professor at the Mayo Clinic says, “You would need 1000 or 2000 airport scans to equal just one dental X-ray.”

AIRTRAN+SOUTHWEST CLOSING DATE? Closing date for the sale is expected to be this coming spring and then full integration of the two carriers will take about two years. Currently, the deal is under government anti-trust scrutiny which most observers don’t expect to significantly slow down the integration time line. So far, no date has been set for the first Southwest “redbelly”  (see photo below) to touch down at ATL.

SOUTHWEST’S BIGGEST CITY? Right now, it’s Las Vegas, but guess what? Once Southwest gobbles up AirTran, Atlanta is going to be its largest city in terms of daily flights. So in ATL, we’re Delta’s biggest city AND soon, Southwest’s biggest. Go figure…

COKE…NO PEPSI. Just in case Atlantans are wondering or worried…Southwest Airlines is a COCA-COLA airline. However, its selection of in-flight beverages is not as robust as AirTran’s.

SEARCHING FOR SOUTHWEST. One thing Atlanta-based travelers are going to have to get used to when Southwest moves into town:  more time devoted to searching for low fares. Unlike AirTran, Southwest Airlines does not participate in systems that allow its flights to appear on online travel agency sites like Expedia or Travelocity. They don’t show up on meta-search sites like Kayak, either. To compare, you are going to have to check southwest.com, the only site that lists all of Southwest’s flight and fare info.

HOW DO TICKET READERS FEEL ABOUT SOUTHWEST? Be sure to read the COMMENTS section of our post, 10 Things you need to know about Southwest + AirTran. Very revealing!

MORE AWARD SEATS. Delta announced a fatter international summer travel schedule this week, which could help out if you’re having trouble redeeming your SkyMiles. From Atlanta, Delta is re-launching B777 nonstops to Shanghai. From NYC there are new flights to Iceland. Boston and Miami get nonstops to London Heathrow. Paris gets new or more nonstops from Boston and Pittsburg (via a skinny B757…not so sure about that!)

DELTA SKY CLUB RE-DO. Delta’s opened a new SkyClub at Indianapolis’s flashy new airport terminal. The new look for this Sky Club is expected to carry over to new Sky Clubs in Philadelphia and Seattle and in others where renovations are in the works such as ATL and LAX. Here’s a short video tour of the club at Indy.

premium economy on British Airways

PREMIUM ECONOMY ON DELTA? Our contacts at Delta won’t confirm it, but several sources point to a leaked internal Delta memo that shows plans underway for a new class of international service between coach and business class. This is good news for travelers at companies that forbid business class travel, but might turn a blind eye to a product called “premium economy.” If Delta’s product is anything like competitors such as British Airways, the premium economy cabin will be separated from standard economy and offer a slightly larger seat with slightly more legroom and better food and beverage service.  It’s a poor substitute for a nice flat business class bed, but a welcome step up from the horrors of eight-plus hours in coach. For transatlantic flights from the East Coast, I would expect Delta’s premium economy fares to run in the $2500 round trip range.

DELTA READY TO RUMBLE WITH SOUTHWEST. In an interview with Business Travel News, Delta CEO Richard Anderson sounds confident that Delta’s product will beat Southwest’s when it comes to business travelers. Here’s what he said: “AirTran had first class, they had assigned seats, and Southwest has no first class, no assigned seats, doesn’t sell through global distribution systems—a very different product than what AirTran offered in the market. It’s very distinguishable. If you want international service, if you want high frequency all around the world, a club, business class, first class, don’t have to stand in a line to get on airplanes when you’re a business traveler—that’s the product Delta offers.” What do you think? Will you be giving Southwest a try? LET US KNOW!

REGIONAL JETS BECOMING…REGIONAL! Delta and its subsidiaries are dumping Barbie jets like crazy these days. Seems they’ve finally figured out that RJ’s don’t make much economic sense, they tend to clog up airspace and runways, and travelers don’t like them. All this means that on Delta you will no longer find regional jets used on flights longer than 750 miles (or about 2.5 hours).

At the CLEAR sign up kiosk at MCO

CLEAR IS BACK. But only in Orlando for now. The airport security line by-pass lanes reopened on November 9 at MCO’s Main terminal East and West.  Plans to open up lanes in Denver this month have been stymied, but stay tuned. If you had a CLEAR card before, new owners are honoring membership terms. Have a minute? Check out the new company’s clever new video describing how CLEAR works. Cost: $179 per year.

DELTA + MARRIOTT = 5000 MILES. From now through January 31, SkyMiles members will earn a 5000-mile bonus when Delta flights coincide with Marriott stays. Not bad! Details.

DELTA NOT SO DREAMY. Delta has pretty much thrown in the towel on the Boeing 787 “Dreamliner,” delaying delivery for TEN YEARS (to 2020). It had inherited an order of 18 of the new fuel-efficient but delay-plagued wide bodies from Northwest. This means that at least the next decade, Delta’s wide body fleet will remain 777, 767, 747 and A330. United hopes to be flying the 787 sometime next year…

DILUTING MQM’s? As you know, it’s getting harder and harder to travel on award tickets. I’m writing to tell you that I’m really disappointed to see the newest oncoming freight train – the awarding of MQMs by someone other than Delta.  I’m sure that the new Hilton promotion is going to be great for Delta, otherwise you wouldn’t have  written about it in The TICKET.  BUT it makes the Medallion Qualifying Miles worth far less to us Delta fans and that’s at a time when Delta need all the friends it can get. I’m a friend!  And I’m a Hilton Honors Gold level but I’m still annoyed by what I see happening: the demise of the value of the MQM.  I know there’s a segment qualifier, but the MQM devaluation is really a disaster.  I wonder if you’ve heard about this from others or am I the only crab in town? –JL from Atlanta. Is he? LET US KNOW! Leave your comments below.

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Expect to see Southwest "Redbellies" flying over ATL soon! (Photo: Andertho / Flickr)

QUESTION:

Dear Chris: Hope all is well! I wanted to get your take on something. Do you think Southwest will, in any way, recognize those of us who have Elite status with AirTran? My status expires 2/1/2011 and I’m wondering if it is worthwhile to try to maintain my status by taking 3 more AirTran flights before that time. Or is it better to just let it expire.

Thanks,
Todd

ANSWER:

Good question, Todd! I’d go for it. The merger is not expected to close until April or so, and I don’t think we’ll see a whole lot of change until the end of next year, so your status will retain value.

Right now, neither airline is talking specifics about anything regarding combined operations, so all we can do is speculate.

I predict that Southwest will match your AirTran elite status in its Rapid Rewards program….its elite level program is all called “A-List.” (See A-list benefits)

One thing we do know is that Southwest does not plan to keep AirTran’s business class seating, so your status is not going to help you get to the front of the plane.

But it will get you to the front of the line. With Southwest’s “cattle call” boarding, passengers board in groups based on their status and the time they check in for the flight. If you have A-list status, Southwest says you’ll nearly always board in Group A, the first group allowed on the plane, which means you’ll get first dibs on the best seats and overhead bin space.

If you are a super-frequent traveler– flying at least 50 round trips per year, or earning 100 credits from flying or with Southest partners, Southwest give you a free companion pass for a year. This companion pass lets one designated person fly free when traveling with you anytime for an entire year– not bad! (See Companion Pass details)

How do YOU think Southwest’s takeover of AirTran is going to affect your flying? LET US KNOW! Leave your comments below.

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