Fightin' words

By Colby Cosh - Thursday, December 9, 2010 at 2:40 PM - 0 Comments

Steve Jobs; Jon Stewart; TTC; Officer Bubbles; Taylor Momsen | Steve Russell/Toronto Star/Getstock; Robert Galbraith/Reuters; Leigh Vogel/Danny Martindale/FilmMagic/Getty Images; Jason Wieler

Conan vs. Leno
The Conan O’Brien-Jay Leno feud began in earnest on Jan. 7, with NBC’s announcement that it intended to give Leno an 11:35 p.m. show and move O’Brien’s Tonight Show to 12:05 a.m. The world gaped at what followed: O’Brien’s public rejection of the deal, his prolonged Viking-funeral farewell from Tonight, the tag-team mockery of Leno by late-night rivals Letterman and Kimmel, O’Brien’s exile from TV, his return, and, inevitably, a book (Bill Carter’s The War for Late Night) about the whole fracas.

Steve Jobs vs. Jim Balsillie
Apple CEO Steve Jobs and Research in Motion co-CEO Jim Balsillie tussled over the future of mobile devices under the looming shadow of Google’s Android operating system. Jobs boasted that the iPhone was beating RIM’s BlackBerry and declared RIM’s PlayBook tablet “DOA.” Balsillie countered with a volley aimed at Apple’s most notorious weakness: “We know that while Apple’s attempt to control the ecosystem and maintain a closed platform may be good for Apple, developers want more options and customers want to fully access the overwhelming majority of websites that use Flash.”

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Flying into trouble

By Chris Sorensen and Aaron Wherry - Tuesday, November 23, 2010 at 10:10 AM - 62 Comments

Using its Airbus A380s, Emirates wants to offer daily flights to Toronto; Rovinescu accuses Emirates of being a foreign predator | Chris Ratcliffe/Bloomberg/Getty Images; Darryl Dyck/CP

In early October, Canada’s armed forces learned they had just one month to pack up and move a key Mideast military base used to support the war in Afghanistan. Located in the United Arab Emirates, Camp Mirage has been used primarily as a transfer point for Canadian Forces flying to and from Kandahar. For the past eight years, it had provided the Forces with a safe place to land and refuel hulking Hercules transport planes while weary soldiers relaxed at a makeshift camp, complete with a ball-hockey rink.

But the desert oasis, a short drive from Dubai’s beaches and air-conditioned shopping malls, ceased to be part of the military’s operations as of Nov. 3, following a high-level spat between Ottawa and the U.A.E. over commercial airline flights between the two countries.

It was an abrupt end to a long-standing strategic relationship between the countries, and it sent the military scrambling. “It’s a pain in the ass for all these guys who are supposed to be doing other things,” says Douglas Bland, the chair of defence management studies at the School of Policy Studies at Queen’s University. “Now they have to stop, pack up and move all of this equipment.” At no small cost: by some estimates $300 million.

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The man who’s driving Air Canada crazy

By Chris Sorensen - Friday, August 13, 2010 at 8:43 AM - 0 Comments

Photograph Jessica Darmanin /Andrew Tolson

At first glance, Robert Deluce seems an unlikely giant killer. The founder and chief executive of Toronto-based Porter Airlines stands shorter than many of the retro-uniformed flight attendants working his airplanes, and his small-town Ontario mannerisms—unfailingly polite with a tendency to ramble—are about as far away from Bay Street big shot as you can get.

On a recent afternoon, he ambled through the departure lounge of Porter’s terminal at the Billy Bishop Toronto City Airport and chatted awkwardly with pilots and other staff, resembling a sort of Columbo of Canadian commercial aviation, minus the scruffy trench coat. And like the fictional TV detective, he is not to be underestimated.

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Who's suing who

By macleans.ca - Thursday, June 17, 2010 at 4:40 PM - 1 Comment

Getty Images

Newfoundland: A group of Newfoundlanders is suing the federal government to save a pond in Long Harbour from becoming a dump site for mining waste. They claim cabinet changed the federal Fisheries Act in 2006 allowing small bodies of water to be used as tailings ponds, a decision, they argue, that should be made by Parliament.

Quebec: A Montreal couple claims their wedding was ruined by a lack of air conditioning and is suing the Ritz-Carlton for $150,000. They spent $120,000 on the event, which they argue was wrecked by “oppressive” heat that forced guests to loosen their ties and eat hors d’oeuvres outside.

Ontario: A roofer who went blind after spending five days in a Toronto jail in February 2009 is suing the Ontario government for $1.2 million in damages. He claims to have lost sight in his left eye, and thus his livelihood, after guards and doctors at the jail denied him medication needed to treat an infection, originally caused by a burning cigarette butt that landed on his cornea while he was helping a friend move.

Alberta: An Edmonton family is suing Air Canada for $1.5 million, alleging that employees threatened and falsely imprisoned them for an hour after they asked to leave a plane prior to takeoff due to safety concerns they had over a faulty cabin door.

British Columbia: A couple from Whistler is suing the federal government for $687,500 they claim they lost after contracts for housing members of the Vancouver 2010 Integrated Security Unit in chalet-style homes during the Olympics were cancelled. The government says mould, water leaks and unsafe wiring made the homes unacceptable.

Mitchel Raphael on John Baird's mom, his Grade 7 teacher, her sister . . .

By Mitchel Raphael - Thursday, June 17, 2010 at 9:20 AM - 5 Comments

Kelly Block and the Bloc
MPs from all parties took home prizes at Maclean’s fourth annual Parliamentarians of the Year awards ceremony held in the West Block. For the fourth time in a row, Nova Scotia NDP MP Peter Stoffer won for Most Collegial. (Stoffer said he voted for Liberal whip Rodger Cuzner, a fellow Nova Scotian, who came in second.) Ted Menzies got the prize for Hardest Working MP. It was the first year the Bloc won awards: Gilles Duceppe for Most Knowledgeable and Robert Bouchard for Best Represents Constituents. There was even a joke that the party was on a roll when it was announced that Saskatchewan Conservative Kelly Block had won for Rising Star. Toronto Liberal MP Bob Rae won for Best Orator, which was not surprising since he seems to be one of the few MPs who can ask a question in the House without reading from a piece of paper and can even do a follow-up question that takes into account the answer he just got from the government. The big winner of the night, though, was Transport Minister John Baird, who was named Parliamentarian of the Year.

Attending the awards ceremony was Baird’s mother, Marianne Anderson. Anderson told Capital Diary she tapes question period every day and watches it in the evening. Besides her son, her favourite people to watch in QP are Liberal MP Hedy Fry and NDP Leader Jack Layton. Also there to honour Baird was his Grade 7 teacher Kay Stanley, who happens to be Tory Senate leader Marjory LeBreton’s sister. “John was a very curious student,” said Stanley, who is credited with getting Baird into politics. Stanley used to have a phone in her classroom because she was head of the local teachers’ federation. But she was also heavily involved with the Progressive Conservative party and once received a call during class from then-PC leader Joe Clark. That really impressed Baird. “I never thought my sister and John would end up in cabinet together,” says Stanley. LeBreton said Baird always calls her “Marg, like in The Simpsons. So I call him Homer.” Laureen Harper, who often has Baird as her date at Ottawa social functions, was also at the party. When Stephen Harper famously surprised guests at the National Arts Centre by playing the piano, Mrs. Harper said Baird got a text from a friend saying: “It’s a real drag when your date’s husband shows up.” The night of the awards, Baird had a fundraiser scheduled in his riding so he sent Defence Minister Peter MacKay there in his place. Labour Minister Lisa Raitt, who was at the Maclean’s awards ceremony, said she learned that Baird has two stories he tells every time at fundraisers. She said that when she heard one of them the first time, “I thought it was the funniest joke I ever heard and I believed it as a true story.” Baird describes going to a rickety old house no one ever hits while campaigning in the dead of winter. The person opens the door and says, “Who are you and why are you bothering me? I hate everything to do with the government.” Baird’s punchline? “I’m Dalton McGuinty and I’m here to get your vote for the Liberal party.” Baird’s award wasn’t without controversy. According to Toronto Liberal MP Rob Oliphant, “Anyone who has such great disdain for Parliament and parliamentary procedure makes it an embarrassing evening for Maclean’s. It makes a mockery of the contest.” Though Newfoundland Liberal MP Scott Simms noted that, “given the fact Parliament is immature, maybe it’s a good choice. Despite the bravado, Baird is an approachable guy. But I once called him a blowfish in the House.”

The MP and the pilots
Tory MP Patrick Brown hosted a special reception in the West Block for Air Canada’s pilots union. There are more than 200 Air Canada pilots who live in Barrie, Ont., the city Brown represents. That’s because pilots, Brown explained, must live close to the airport they work out of and Barrie is near Toronto’s Pearson International Airport. The Barrie pilots have a monthly pub night and a hockey league. Brown says Barrie is nicknamed “Terminal 4,” a reference to when Pearson had three terminals.

Jason Kenney couldn’t stop laughing
During a scrum on his immigration bill, Immigration Minister Jason Kenney was told that Liberal MP Jim Karygiannis, an outspoken MP who at times rubs people the wrong way, was complaining that had the bill in its current form been around when he immigrated to Canada from Greece, he would not have been allowed into the country. A cheeky journalist immediately asked, “Will the bill be retroactive?” Kenney started to crack up and couldn’t continue.

One ballroom, two very different days
The Council of Arab League Ambassadors in Ottawa held a celebration to showcase their countries in the Fairmont Château Laurier ballroom. Tables were set up highlighting a variety of Middle Eastern cultures, though Palestinian representatives kept their table empty as a sign of mourning for the aid flotilla that attempted to reach Gaza. The honoured guest was Senate Speaker Noël Kinsella. Treasury Board President Stockwell Day’s aide noted that the previous day the room had been made kosher by rabbis because Israeli PM Benjamin Netanyahu was supposed to have had an event there but had to return to Israel early to deal with the flotilla crisis.

The Maclean’s Parliamentarians of the Year party was sponsored by TD Bank Financial Group, Pfizer Canada, the Cable Public Affairs Channel (CPAC), the Canadian Medical Association, the Canadian Wireless Telecommunications Association and Wayne Gretzky Estates winery and was hosted in association with the Historica-Dominion Institute and L’actualité.

This week's travel news

By Bruce Parkinson, Takeoffeh.com - Friday, June 11, 2010 at 2:11 PM - 4 Comments

Why Robert Milton Made $14.7 Million In 2009
Robert Milton’s legacy at Air Canada may be hotly debated, but there’s no question Milton’s long association with the airline has left a lasting legacy in his bank account. While long since departed to England, Milton is still president and CEO of ACE Aviation, AC’s parent company and 35% shareholder in the airline. As Canadian Press reported this week, thanks to a ‘rationalized’ compensation structure, Milton received close to $15-million from ACE in 2009 – not bad compensation for a part-time job. In reality, Milton’s big payday has more to do with the ‘value-enhancing transactions’ that have enriched shareholders in the past five years, namely spinning off Aeroplan and Jazz Air. In actual compensation for 2009 Milton received a base salary of just over $500,000 and consulting fees of $157,500. Milton also received severance compensation of $7.62 million and a “last payment” of $5 million in ‘incentive awards.’ This year’s $14.7-million in compensation should be the last of the big windfalls for Milton – he made $39-million in 2006 and 2007, again mostly in cash bonuses for engineering the asset sales that warmed the hearts of investors and enraged unions. Going forward, Milton’s paycheque will be held to $270,000 per year – unless he works more than 40 days, at which point he’ll get a per diem of $8,000 per day.

Versailles No More: Pearson Named World’s Most Improved Airport
Once derided as the most expensive place in the world for airlines to land, Toronto’s Pearson International has been honoured by the International Air Transport Association as the world’s ‘most improved’ airport. Over the past three years, Pearson has decreased various charges by 13 to 15 percent. The fee cuts come in the wake of an IATA campaign to get the Greater Toronto Airport Association to lower costs. As IATA director general Giovanni Bisignani puts it: “They built a monument with no notion of how to fund it. We called it Versailles. We had to get rid of a [federal] minister and the [GTAA] CEO. Then we started to work closely together.” As Doug McArthur reported at TakeOffeh.com this week, whether or not passengers are benefitting from lower costs is an open question. Asked if the savings are being passed on to passengers, Bisignani replied cryptically that “the money doesn’t stay in the airlines’ pocket.” Asked the same question, Marilynne Day-Linton, chair of the GTAA board, said she didn’t know. Air Canada president and CEO Calin Rovinescu came closest to giving a clear answer, saying cost reductions are reflected in Air Canada’s fares, which are lower “on an absolute basis” than they were a decade ago. IATA says the big benefit of the reduced costs is that fewer airlines will pull out of Toronto and more new airlines will start flying there.

More Profit, More Planes for Emirates
A day after announcing that it is on track to earn more than $1 billion in profits this year, Dubai based airline Emirates placed an $11.5 billion order for 32 Airbus A380s – the world’s largest passenger aircraft. Emirates now has 90 of the big birds on order, over 40% of the entire A380 order book for Airbus. A380s aren’t the only planes in Emirates’ future - in total the airline has contracted for 150 wide-body aircraft worth more than $40 billion, including 70 A350s and 18 Boeing 777-300s. It’s all part of of Emirates’ ambitious strategy to act as a global hub, joining previously unconnected city-pairs around the world through just one stop in Dubai. Emirates is currently flying 10 A380s, with Toronto one of the stops on its route map. The airline was founded just 25 years ago and now ranks among the top 10 in the world in terms of revenue and international passengers. Profitability and a reputation for first rate onboard service has earned Emirates 8^th place in this year’s Skytrax ranking of the world’s best airlines. To put its $1 billion profit projection in perspective, the world’s airlines are expected to earn a total of $2.8 billion this year.

By: Bruce Parkinson
Bruce Parkinson is a travel industry journalist and regular contributor to Takeoffeh.com as well as sister company, OpenJaw.com

Photo Credits: aceaviation.com, gtaa.com, emirates.com

This week's travel news

By Bruce Parkinson, Takeoffeh.com - Monday, June 7, 2010 at 10:29 AM - 1 Comment

The Volcano Is Resting…Here Come The Hurricanes
Now that the Iceland volcano has quit smoking – at least for now – travel industry fears are focusing on the 2010 Atlantic hurricane season, and the news isn’t good. According to Reuters, leading U.S. forecasters are now predicting 18 named tropical storms and 10 hurricanes, five of them major, with a 76% likelihood that a major hurricane will hit the U.S. coastline during the season that extends from June 1 through November 30. Travelling during hurricane season has risks and rewards. The vast majority of visitors won’t even have a sniff of a major storm. Prices are lower too, so it comes down to a personal risk/benefit analysis. But even in a very active hurricane season, you shouldn’t write off the region when planning a winter holiday after November. By then, most storms are just memories discussed over dominoes in the rum shop.

Canadian Passports Going Digital
As of 2012, Canadian passports will have an invisible microchip embedded in the back cover. The chip will store the same personal information now found on page 2 of our passports, along with a digital copy of the passport photo suitable for use by facial recognition software. As reported on TakeOffeh, the proposed new ePassport will have a shelf life of 10 years as opposed to the current five, though children’s passports will have an earlier expiry date. Canada isn’t on the leading edge of this effort — 70 countries, including the EU, are already issuing their own versions of ePassports, with some featuring fingerprints and iris scans as well as digital photos. According to the Association of Canadian Travel Agencies, which recently attended a Passport Canada event, one of the major reasons we’re lagging behind on this effort is a lack of funding for Passport Canada. While it is a government agency, Passport Canada operates on a cost-recovery model and receives no funding from the government. Some of the benefits of an ePassport include increased security, less risk of identity theft and a lower chance of forgery or alteration.

Where Is WestJet Going Next?
Since the appointment of Gregg Saretsky as WestJet CEO, speculation has grown about whether the airline has greater ambitions than sticking to its low-cost, North America-focused roots. Their declared intention of becoming one of the world’s top five airlines by 2016 feeds rumours of planned expansion beyond North America. The once-underdog airline with the positive public image has set its sights on taking on Air Canada. It’s doing a good job of that in the Canadian domestic market, but wants to take the challenge a step further, with plans to double its share of the trans-border market to over 25% within six years. WestJet also recently announced a codeshare deal with Hong Kong’s Cathay Pacific Airways and said a partnership with a U.S. carrier is imminent – which is rumoured to be Delta. Airline consultant Rick Erickson believes this aggressive alliance strategy could be a case of testing the waters before operating its own overseas flights. That’s how it got into packaged holidays: in 2003, it entered into a partnership with Transat that saw WestJet fly charter flights to destinations in Mexico and the Caribbean. But, after realizing how profitable selling packaged holidays can be, it launched its own WestJet Vacations business. “I think they’re going to do the same thing in the international arena,” Erickson told Macleans.

But Saretsky poured some cold water on those views this week. Speaking at an annual investor’s day, the CEO pledged to retain the airline’s low-cost, one-type aircraft business model. “We are very much getting back to our focus on costs,” Saretsky said, part of which is continuing to fly a fleet of only Boeing 737 aircraft that keeps costs down but limits how far it can fly. While WestJet’s future plans remain unclear, one thing is for sure: they definitely include becoming a bigger thorn in AC’s side, at least at home and in the competitive U.S./Canada transborder market.

Down In Front: Researcher Says Airlines Need A New Financial Model
Henry Harteveldt of Forrester Research says aging boomers and the growing use of global communications as a replacement for some corporate travel will dramatically alter the airline landscape. Harteveldt told Canadian Press reporter Russ Marowits that legacy carriers like Air Canada need to rethink their heavy reliance on high-paying premium passengers, because there simply won’t be as many of them in future. Evolving communications technology, high-definition video conferencing and corporate restrictions on premium travel could alter the destinations serviced by airlines and the size of the premium cabins, Harteveldt says. He points out that several European carriers have already eliminated first class on some routes. “The airlines really have to figure out who is their core customer and they haven’t been very good at this,” Harteveldt says. In the future, the researcher believes leisure travel will drive aviation growth, as retiring boomers set off to explore the world. Not everyone agrees with Harteveldt’s take, including a spokesperson for Air Canada. “Our own experience is that people like and need to travel for business and, as the world economy continues to globalize, we expect this will not change,” said Peter Fitzpatrick. That may be true, but the question remains as to whether employers (and shareholders) will be willing to pay premium fares as much as 10 times as high as economy prices.

By: Bruce Parkinson
Bruce Parkinson is a travel industry journalist and regular contributor to Takeoffeh.com as well as sister company, OpenJaw.com

Photo Credits: ppt.gc.ca, westjet.com

Chinese airlines in Canada

By Takeoffeh.com - Monday, June 7, 2010 at 10:16 AM - 8 Comments

There will soon be some new tails at Canada’s airports. With the government of China finally granting Canada ‘Approved Destination Status,’ air traffic between the two countries is expected to boom. As tour groups of mainland nationals begin to flock to our shores, the entrepreneurial Chinese aren’t about to leave all the flying to Air Canada.

Ever heard of Hainan Airlines? It’s definitely not a household airline name in Canada. But it may soon be. How about Shadong Airlines? Xiamen Airlines? These young carriers serve millions of Chinese passengers in a rapidly expanding domestic market. Hainan is one of the few to spread its wings beyond China onto the international front. They currently serve Seattle and have now received regulatory approval to become the first Chinese carrier to offer scheduled flights between Toronto and Beijing.

Thanks to its geographical position, Vancouver is the natural Canadian gateway to Asia, and Chinese carriers are already firmly entrenched. China Airlines, China Eastern and Air China each serve Vancouver, while currently all outbound Toronto flights to Chinese cities are served by Air Canada.

China is the fastest-growing major economy in the world, with an average annual GDP growth rate of over 10%. A large middle class population with strong consumption power is emerging, especially in major cities. China’s outbound tourists totalled 20.22 million in 2003, overtaking Japan for the first time. But that was only the beginning: the China Tourism Academy estimates as many as 54 million tourists will go abroad this year, up from 47 million in 2009. With 54 million Chinese travellers poised to fly, the world’s skies may soon be dominated by eastern carriers.

The Approved Destination Status now allows Chinese travel agents to advertise and organize group tours to Canada. In 2008, visits to Canada by Chinese citizens were up 5.3 per cent from the year before, for a total of 159,000. Chinese travellers had the highest average length of stay (28 nights) in Canada and spent more than visitors from any other country ($1,648.51). According to a Conference Board of Canada survey, approved destination status is expected to boost the yearly rate of travel to Canada from China by up to 50 per cent by 2015. With U.S. overnight visitors down 53% since 2000, there’s no doubt that Canada’s inbound tourism industry is awaiting the influx of Chinese visitors with bated breath.

The other benefit of the ADS designation is that new services offered by Chinese carriers flying to our cities will likely mean tighter pricing on fares for Canadians wanting to visit China.

Photo Credits: boeing.com, images.businessweek.com

WestJet's big plans to conquer Air Canada and then the world

By Chris Sorensen - Thursday, May 27, 2010 at 6:51 AM - 35 Comments

LARRY MACDOUGAL / CP

For most big airlines, having a chief executive with a long and accomplished history in the business would be considered a no-brainer. Not at WestJet. Since its launch nearly 15 years ago, the remarkably successful low-cost carrier has made a point of ditching industry conventions whenever possible. Economy-class only. No connecting flights. Friendly staff. And, until recently, chief executives who generally came from outside the industry.

So eyebrows were naturally raised earlier this year when WestJet, based in Calgary, named industry veteran Gregg Saretsky as a replacement for outgoing CEO Sean Durfy, who was formerly the head of Enmax, a utility company. Durfy, in turn, had replaced WestJet co-founder and chairman Clive Beddoe, who, although a hobby pilot, was in the real estate business prior to launching the airline in 1996.

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This Week's Travel News: News you need to know

By Bruce Parkinson, Takeoffeh.com - Monday, May 17, 2010 at 11:45 AM - 0 Comments

The Americans Are Watching
Flying from Toronto to Cancun? The Americans want to know who you are. Why? Because you’ll be flying over their airspace. Coming this December, new U.S. ‘Secure Flight’ rules require Canadian airlines to provide personal information on passengers flying over the home of the brave. If your name happens to show up on a U.S. watch list or no-fly list, you could be stuck on the ground – even though you aren’t even landing in the U.S. When you consider that a large percentage of Canadian flights do pass above U.S. territory, it’s a daunting proposition. And while Canada’s privacy watchdog isn’t happy about these new rules, Chantal Bernier says there isn’t a doggone thing she can do about it: “There is a limit that is beyond us — and that is United States sovereignty over U.S. airspace. Geography works against us here,” Bernier told MPs at parliamentary hearings into the matter. Of course 99.9% of travellers shouldn’t be affected, but we all know that no-fly lists are not perfect, and officials say ‘false positive’ results will take 50 to 60 days to clear up – in other words, the trip is off. As Canwest News Service reported, Bernier told the committee that another concern is that passenger information supplied to the U.S. could be used for other purposes, including law enforcement and immigration.

Room With A View? For $5 We’ll Uncover The Window
With airlines now charging for everything from (literally) soup to nuts – and earning billions in the process — hotels have been watching with envy. Now some of them are taking a page out of the airline industry’s ‘unbundled’ approach by charging extra for anything from towels to air conditioning. As Consumer Traveler reports, the most extreme example is Asian budget hotel chain Tune Hotels, which boasts the marketing tagline ‘5-star sleeping experience at 1-star price.’ For one very low price – basic rates start as low as $5 per night in Asia – guests get a room, bed and bathroom. You can make the room as comfy as you wish by paying additional fees for things like air conditioning, hair dryers, toiletries and even towels. In September the chain will make its first foray outside Asia with a London, England location. Starting at 9 square metres (97 square feet), Tune hotel rooms are a little bigger than ‘pod’ or ‘capsule’ hotels like Yotel. One thing Tune does offer is a decent bed, which it says is custom-made by bedmakers who supply 5-star hotels – hence the ‘5-star sleeping experience’ claim. Don’t expect a mad rush by major hotel chains to follow Tune’s lead. In a somewhat counter-intuitive twist, luxury hotels already charge for ‘extras’ like Internet, parking and room safes, while mid-market hotels tend to get by on the value offered through an inclusive package where things like Internet, parking and breakfast are included. Dorothy Dowling, senior VP marketing and sales for 2,200 hotel-strong Best Western told TakeOffeh: “The mid-market will continue to sell the value package.” Will consumers embrace bare-bones hotels? One reader comment on the Consumer Traveler story shows there’s definitely a market for it: “Well, I did it! I refused the towel, and used my bedsheet instead.”

Two Best Hotel Lists – Wildly Divergent Results
Two online giants owned by the same company have each produced lists of the world’s top reviewed hotels, but the lists are so different they leave you wondering what to believe. The ranking of top ten European and U.S. hotels from both Expedia and TripAdvisor – which is owned by Expedia — reveal no common names whatsoever. One U.S. hotel featured in the Expedia’s global top ten didn’t even make the top 30 hotels in its own city, let alone the world, based on TripAdvisor reviews. In fact, none of the top ten hotels featured on the Expedia list are featured among TripAdvisor’s 719 top properties. So are these lists of any use at all? Expedia representatives say that it uses a “mathematical formula” to rank its properties, with over 1 million traveller reviews as the most influential factor. TripAdvisor’s approach is similar, although it claims more reviews. But Expedia also takes into account the views of 400 Expedia “market managers,” who contribute “their insight and firsthand knowledge of their destination’s best hotels.” And Expedia’s version does have another advantage: to post a review, travellers must have booked through Expedia. That’s different from TripAdvisor, where any registered user can post a review without having to prove they have ever stayed there. Critics – especially hoteliers – say that fact leaves the TripAdvisor system more prone to manipulation.

Air Canada Makes Progress, But There’s A Long Road Ahead
The recovery is underway for Air Canada, but the airline still has a long way to go, as the Montreal Gazette reported this week. “This is not a sprint, it’s a marathon,” CEO Calin Rovanescu told analysts after the carrier reported a Q1 operating loss of $126 million, down from a loss of $188 million a year ago. The net loss was $85 million – better than analysts expected, but not a result to send stock soaring. And that stock has a long way to soar, considering that it was issued at $20 and now hovers around $2. Analysts point to a number of factors impacting AC success: fierce competition, low yields, volatile fuel prices, less cash on hand than its peers and ongoing labour uncertainty. The airline is doing a number of things very well – it continues to fill the vast majority of its seats (83% in April) and has successfully weeded out tens of millions in costs. But the Icelandic volcano stung the carrier for about $20-million, and business travellers still aren’t willing to pay premium prices. As Peter Hadekel points out in the Gazette, Air Canada doesn’t have a lot of wiggle room if things go wrong. And, in the travel industry something always seems to be going wrong.

By: Bruce Parkinson
Bruce Parkinson is a travel industry journalist and regular contributor to Takeoffeh.com as well as sister company, OpenJaw.com

Photo Credits: tunehotels.com, carlosphotos, Fotogma, aircanada.com

Come Fly with Me!

By Takeoffeh.com - Tuesday, May 4, 2010 at 4:55 PM - 0 Comments

From the jet propulsion heydays of Pan Am, TWA and Eastern, the vibrant U.S. airline legacy has dwindled down to just four major, traditional carriers.

When Pan Am promised to ‘take the travail out of travel’, no one would have imagined how the airline landscape would change 50 years later. Here are a few nostalgic video reminders of the glory days of the big birds, from the ever increasing list of defunct airlines: Pan Am, TWA, Northwest Airlines, Eastern Air Lines, Braniff and Aloha Airlines.

A bit of nostalgia:
Pan Am: Introducing a new era of jet service
Braniff: When you got it, flaunt it
Welcome to the world of Trans World Airlines (TWA)

The New American Airline Landscape
Fast forward to 2010, and two of the legacy carriers – Continental and United Airlines – announce a merger which will create the world’s largest airline. If the merger is approved, the four surviving carriers will be United Airlines, Delta, American Airlines and US Airways.

Until this week, the new Delta, formed by the merger of Delta and Northwest, was the largest carrier in the world by revenue. With United Airlines buying out Continental, they’ll take over pole position, but not by much, with combined revenue of just under $29-billion while Delta hovers around $28-billion. Next stop on the U.S. list is American Airlines at $20-billion, then it’s a steep drop to US Airways at $10.5-billion, just ahead of Southwest.

Today there is a new breed of airline players in America – the ‘low-cost carriers’. Led by AirTran Airways, JetBlue, Southwest, Allegiant Air, Spirit Airlines, Sun Country, and Virgin America – these LCC’s are smaller, more flexible, and more adaptable than the big 4, but unfortunately, also susceptible to the vagaries of the airline industry.

Why Should We Care? We’re Canadian
While United and Continental are responsible for over 400 weekly flights at Toronto Pearson and more than 100 at Montreal Trudeau, the merger isn’t expected to have a significant impact on Canadian travellers. Industry analyst Robert Kokonis says the fact that Air Canada is a Star Alliance member along with United may result in some new cross-border codeshare destinations, but other than that, he doesn’t see much specific impact on Canadians.

However, Kokonis does believe that U.S. airfares will rise as a result of one less player, which would have a Canadian impact, mostly on corporations with frequent U.S. business travel. But there likely won’t be a dramatic increase, as Kokonis points out that U.S. domestic airfares have barely budged in 15 years.

One thing is clear: if this deal is approved, it will likely be the last of the U.S. airline mega-mergers. American and US Airways don’t appear to have enough in common to benefit from a union. There may be consolidation in the low-cost market, but nothing on the scale of Delta/Northwest and United/Continental.

The industry hopes the latest merger will take some of the ‘travail’ out of surviving in a fiercely competitive market.  Travellers, however, will still have to face the reality that air travel 50 years after that Pan Am commercial looks a lot more like a cattle call than a cocktail party.

by Bruce Parkinson

Photo Credits: upload.wikimedia.org, aviationexplorer.com, beta.thehindu.com

This Week's Travel News: News you need to know

By Bruce Parkinson, Takeoffeh.com - Monday, May 3, 2010 at 3:00 PM - 5 Comments

Plastic Only Please: Air Canada Moving To Cashless Cabin
As of May 1 passengers will need a credit card for on-board purchases on Air Canada including food, alcoholic drinks, headphones and duty-free items. The airline is moving to a cashless cabin and debit cards won’t be among the options. For both the airline and its flight attendants it is good news. Retired Air Canada flight attendant Alexandra Ludgate says handling cash was one of the most time consuming parts of the job. “Running back and forth for change and waiting for passengers to rummage through their wallets was really impractical.” Passengers will also have the ability to purchase vouchers before boarding a flight. However, vouchers are only available online and will also require a credit card for purchase. Reacting to the news on TakeOffeh sister site OpenJaw.com, one travel industry member wrote: “While I agree going cashless cabins will make things more efficient, it seems to me that they might have also included debit cards. The transaction takes about the same time, and some people may not have a card or wish to use a credit card on board.” WestJet says it is considering a similar move but has not yet made a decision.

You Have The Right To Remain Prone On A Sun Lounger
It’s not enough that Europeans get weeks and weeks of paid vacation every year. Or that whole countries slap up a ‘Closed’ sign for the month of August. Get ready to go green with envy, my vacation-deprived North American friends, for the worst is yet to come: The EU has declared that vacations are a human right and plans to subsidize holidays for those who can’t afford it. “Travelling for tourism today is a right. The way we spend our holidays is a formidable indicator of our quality of life,” EU commissioner Antonio Tajani said recently. Under Tajani’s plan, taxpayers would foot up to 30 per cent of the travel bill. Expected to cost hundreds of millions of Euros, the plan will be open to pensioners, young people between 18 and 25, disabled people, and families facing “difficult social, financial or personal” circumstances. No doubt you can find one of those categories to apply to you, but there is little hope North American government will subsidize our annual pilgrimages to a swim-up bar.

Lots Of Car Rental Brands, Few Car Rental Companies
If anyone’s keeping score, Avis and Budget are one company, National, Enterprise and Alamo are owned by the same group and now Hertz has swallowed up Dollar Thrifty, which was already a dual-brand car rental company. With all the car rental brands out there, there are surprisingly few car rental companies. The announcement of Hertz’s $1.2-billion Dollar Thrifty purchase raises fears that rental prices will climb even further —  after a year in which they reached historic highs. Chris Brown, executive editor of Auto Rental News, told CNN: “We’re in an era of higher-priced car rentals and that era is probably going to stay in place for a while. I’m not sure that Hertz buying Dollar Thrifty [will be] a driver of a rate increase.” Insiders say that the main cause of higher prices is tighter lending, which means car rental companies can’t buy as many cars.

Will The Next Cancun Please Stand Up
You may have never heard of the Mexican state of Tamaulipas, but odds are you will soon. Like Cancun, Loreto, Huatulco, Ixtapa and Los Cabos, the coastal region of Mexico’s sixth-largest state is going to be another of the country’s “Integrally Planned Centers” — in other words, a massive new resort area. Located on the Gulf Coast with Texas as its northern border, Tamaulipas will be home to ‘Megaproject Costa Lora,’ which in its first stage will be home to 6,900 hotel rooms and 11,500 condominiums and tourist villas. The federal government, through tourism arm Fonatur, has agreed to fund up to 90 percent of the $5.5 billion project. Despite its well-publicized drug war and last year’s struggles with swine flu, Mexico is one of the world’s leading destinations, and continues to build a tourism product highly regarded for quality and value. Here’s an idea of the scale of the new project: it begins with the provision of basic services followed by the development of golf courses and water sports facilities, a central marina, a residential area with housing for 150,000 and a new international airport. No doubt there’s a Senor Frog’s in there somewhere too.

By: Bruce Parkinson
Bruce Parkinson is a travel industry journalist and regular contributor to Takeoffeh.com as well as sister company, OpenJaw.com

Photo Credits: aircanada.com, cdwheatley, tourbymexico.com



The meaning of Guergis (II)

By Aaron Wherry - Monday, March 1, 2010 at 4:20 PM - 48 Comments

After asking for Ms. Guergis’ resignation, the Liberals up the ante slightly.

Liberals are calling on Transport Minister John Baird to launch a formal investigation into the Helena Guergis incident at the Charlottetown airport and to assure Canadians that the security tapes will not be destroyed as part of routine procedure at the Canadian Air Transport Security Authority.

The Liberal Party has filed an Access to Information request for copies of the security video tapes of the February 19th episode involving Minister Guergis’ attack on airport personnel and her inappropriate attempts to force open locked gates. The Liberals have also asked for copies of any incident reports filed by CATSA or any other airport authority.

Helena Guergis would like to apologize

By Aaron Wherry - Thursday, February 25, 2010 at 4:38 PM - 59 Comments

Helena Guergis would like to apologize. For something. The Globe suggests why. The CBC, via Wayne Easter, via an anonymous letter, has further alleged details.

“On February 19, I was rushing to catch a flight at the Charlottetown Airport and spoke emotionally to some staff members. Regardless of my workload and personal circumstances, it was not appropriate and I apologize to airport and Air Canada staff.

“It was certainly not my intention to create any additional stress for airport or Air Canada employees who already have a very difficult job.

“My father was born in Summerside and many of my relatives still live on the Island, which I love and visit almost every year. To me, it is a very special place that demonstrates the best Canada has to offer. I wish to express my appreciation to all the hard-working people who make it so welcoming.”

Still more from the Globe, Star and Guardian.

Why The Airlines Won't Let You Call In Sick

By Sarah Dawson, Takeoffeh.com - Thursday, November 19, 2009 at 3:17 PM - 2 Comments

Last week, news headlines thundered about an Air Canada passenger who informed the airline she had H1N1 and expected sympathetic assistance in rebooking her trip. Air Canada merely offered to change her travel date for a large fee. The passenger – who believed she was doing the right thing by letting the airline know – was shocked at the treatment.

Most airlines such as Air Canada and WestJet are actually under no obligation to re-accommodate passengers on another flight whether they suffer from H1N1 or a stomach bug. Nor will they offer a full refund if the conditions of their ticket do not allow any cancellations.

For the airlines and tour operators, it all comes down to basic economics, and the effect supply and demand has on selling prices. Imagine a passenger booking a flight for $99 in a seat sale in January, and then calling to change the flight to a March Break departure when everyone else on that flight will have paid at least $699.

With tour operators, where there is a hotel booked as well as an air seat, changing the original ticket can have financial implications for the tour operator. As such, they tend to charge higher change fees and cancellation penalties because the hotels they deal with dock them for holding the room. For instance, if you cancel a booking in early December for a Christmas holiday, chances are you will not get any money back because the hotel will charge the tour operator a full penalty.

A little research before making any changes is extremely advisable. There will almost always be a difference in selling prices, so be prepared to pay more. As far  as a refund is concerned — they may deduct a change fee, but is not unreasonable to ask.

The key terms to look for are: full cancellations allowed up to departure, or no (low) change fees, whatever the circumstances. With respect to H1N1, if the provider’s policy does not state specifically that cancellations or changes are allowed if the passenger has H1N1, then they are probably not.

For any packages booked with a tour operator, there are only a few companies currently offering H1N1 protection. Sunwing offers a “Worry Free” cancellation plan for $49 per person, allowing cancellations up to 3 hours prior to the flight departure for any reason. Signature offers a very similar “Care-Free Cancellation Waiver” plan for $50 or $60 per person, allowing cancellations to 24 hours prior to the flight departure. WestJet Vacations allow cancellations outside of 21 days for a $75 fee. While passengers may not get cash refunds, receiving the full booking value in future travel credit is certainly reasonable.

Passengers should also look toward travel insurance as a means of protection. RBC Insurance, the largest provider of travel insurance in the Canadian market, confirmed to Take Off eh! that their Trip Cancellation Insurance does cite H1N1, or similar flu-like illness, as an “emergency medical condition and the policy holder would be eligible for the reimbursement of the non-refundable portion of their prepaid travel arrangements, subject to the terms and conditions of the policy”. This requires confirmation from a physician, as with any other medical condition. The coverage applies as long as the passenger does not have the H1N1 virus as a pre-condition, or made a booking for travel to a destination for which the government has issued a formal H1N1 warning after the warning was issued.

In short, whether people have the flu or any other infectious condition, in many instances, the claim can be difficult to prove. It’s a very murky area for airlines and tour operators to navigate and set fair policies for. But bear in mind that an air carrier also reserves the right to deny boarding to someone who is visibly not well enough to fly.

From the airline and tour operators’ perspective, is it fair to single out any type of flu over say, asthma or strep throat? And why should travel have to follow different rules than any other service providers such as theatres or sports vernues? Travellers have to protect themselves with the tools available to them, or simply not travel.

By: Sarah Dawson

Photo Credit: macky_ch

Without a plan

By Chris Sorensen - Wednesday, November 11, 2009 at 2:40 PM - 10 Comments

Dale Seto is accustomed to toiling out of the spotlight. Most days, the aircraft mechanic crawls around inside the guts of an Airbus jetliner, grease on his hands. “We’re kind of the underdogs,” says Seto, 57, who has worked for Air Canada for the past two decades. “But in my opinion, we perform the most important function in the entire airline industry, and that’s making sure that the planes are safe and ready to fly.”

Hundreds of thousands of lives depend on the quality of work done by Seto and his colleagues, but he says the industry’s perennial woes means they haven’t had a pay raise in nearly a decade. That helps explain why he and12,000 Air Canada employees represented by the International Association of Machinists and Aerospace Workers jealously guard their defined benefit pension plans, an increasingly rare species of retirement income in the private sector. More than just a perk, defined benefit plans—in which the employer guarantees retirees a certain level of benefits—are viewed by workers as a key element of overall compensation. Continue…

Week in Pictures: July 9th – July 15th, 2009

By macleans.ca - Thursday, July 16, 2009 at 2:49 PM - 0 Comments

The brewing fight for pet-free flights

By Stephanie Findlay - Thursday, July 16, 2009 at 1:20 PM - 15 Comments

When Air Canada banned pets from aircraft cabins in 2006, pet owners were furious. But many say the airline’s recent decision to reverse that ban was a bigger mistake, as it puts pets ahead of people—and may even put lives at risk.

As of Canada Day, dogs and cats can travel with their owners on executive or economy Air Canada flights, as long as they’re in pet carriers that fit under the airplane seats. The plan, which was recently announced as part of Air Canada’s “renewed commitment to the customer” initiative, allows pet owners to register their pets 24 hours before the flight, as long as they pay a $50 or $100 fee. Continue…

Dogs and cats in cabins? Oh my!

By Kate Lunau - Friday, June 19, 2009 at 3:56 PM - 145 Comments

Before leaving his home in Smithers, B.C. for Northern Ontario in 2004, Dr. Darren Jakubec felt nervous about taking his dog on the flight with him, “for reasons I can’t entirely explain.” A family doctor, Jakubec was travelling to Wawa, Ont., with his wife, a nurse, to start a six-month work contract. Leaving their black dog Sila behind wasn’t an option, he says. Sila, a black lab mix, was kenneled and placed in the plane’s cargo hold. After deplaning in Winnipeg for a connecting flight, the couple waited anxiously for their dog. When she was finally taken off the plane, they were devastated by what they saw: “Sila was brought out onto the carousel,” he says, “dead.”

Jakubec paid for an autopsy “that showed carbon monoxide poisoning as the probable cause of death,” he says. After a two-year legal battle, the case was settled out of court. Jakubec and his wife eventually made it to Wawa, where they adopted another stray dog, Beck, also a black lab mix. Though he won’t fly with a pet again, Jakubec says “if you absolutely have to, insist they’re in the cabin with you.” Continue…

Real competition is back!

By Chris Rivers, Takeoffeh.com - Tuesday, June 16, 2009 at 12:03 PM - 1 Comment

Let’s not jump for joy yet but the green shoots of airline competition in Canada may finally be ready to bloom into a crop that could be a bonanza for the Canadian consumer.

Since the demise of Canadian Airlines and its absorption into Air Canada, there have been several attempts by the likes of Jetsgo, Harmony, Roots Air and Canjet to take on the scheduled air dominance of Air Canada. Sadly, none of them succeeded. WestJet, on the other hand, has not only survived but seems to be emerging as a bonafide challenger to Air Canada. Continue…

Unbelievable

By Andrew Coyne - Thursday, June 4, 2009 at 8:00 AM - 78 Comments

He destroyed himself. Nobody did it to him. He was simply asked, respectfully, to explain himself. And he could not. If the former prime minister of Canada is now widely suspected of corruption, it’s all his own work.

Brian Mulroney was not on trial before the Oliphant inquiry, nor was the commission counsel, Richard Wolson, his prosecutor. Wolson’s job was simply to test the witness’s story, to see how well it stood up: whether there was any evidence to support it; whether it conflicted with others’; whether there were any internal inconsistencies. But mostly it was to let the witness tell his story. And the more Mulroney talked, the less believable he became.

Continue…

WestJet’s plan to crush Air Canada

By Jason Kirby - Thursday, April 30, 2009 at 9:40 AM - 104 Comments

On March 31, WestJet announced a promotion that tapped into the uncertainty many struggling consumers feel today. Tickets bought over the ensuing week came with an innovative price guarantee. If the same seat later went on sale, customers could get a credit for the difference. It was a remarkable promise in an industry that constantly tweaks its prices, driving customers mad, and it was made all the more remarkable by its timing. A day earlier, Air Canada had fired its CEO and the papers were full of speculation that the national carrier would soon have to file for bankruptcy protection for the second time in less than five years. WestJet’s ad wasn’t just marketing. It was a message, part of a long-term strategy that’s quickly coming into focus. It said, none too subtly: WestJet is out to crush Air Canada.

The price guarantee was just one front in an expanding battlefield between these two companies, whose rivalry is as long as it is ferocious. WestJet has already seized a large swath of the Canadian airline business since its launch 13 years ago. By 2013 WestJet aims to control as much as half of the domestic market, up from 36 per cent today. Recently, it has taken aim at Air Canada’s lucrative transborder and international business, signing deals with Southwest, Air France and others to sell international tickets under its own name.

Continue…

Air Canada pledging to improve customer service, then pull our other leg

By Scott Feschuk - Wednesday, February 18, 2009 at 5:59 AM - 19 Comments

The Globe reports this morning: Air Canada is becoming increasingly worried about the ascent of WestJet Airlines Ltd., assigning chief operating officer Bill Bredt to deliver cross-country pep talks urging staff to improve customer service amid competitive threats and the recession.

Wow, bad enough the guy actually has to speak in front of Air Canada employees – he also has to travel across the country on their planes. Bill Bredt, my nickname for you is Short Straw, for that is what you have drawn.

Air Canada’s customer service is legendary – among humorists, satirists and masochists. It’s the easiest joke in the world and one of the most rewarding to tell, because everyone gets it.

Of course there are some nice people who do good work for Air Canada (I remember encountering one – the year was 1985). But anyone who’s ever flown on the airline is familiar with Continue…

In defence of the corporate jet

By Colin Campbell - Friday, February 6, 2009 at 5:04 PM - 34 Comments

In the corporate jet business, there are three people who are especially unpopular these days: the heads of the Detroit Three automakers. When the trio jumped on their corporate planes and flew to Washington late last year, they turned the business jet from being a nice perk for well-off executives into a symbol of corporate excess. How, people screamed, could these businessmen display such excess when the entire purpose if their trip was to beg for a public bailout? The “delicious irony,” as one congressman said, was too much.

The CEOs elected to drive to Washington on their next trip, but the damage was done. Even today, the outrage over corporate aircraft burns brightly. Last week, U.S. President Barack Obama chastised Citigroup for its plans to buy a new $50 million jet after accepting $45 billion in government bailout money. His administration is now talking about  rules that could force companies that receive federal money to relinquish their private jets. This week, Bank of America Corp. said it will sell a number of its corporate aircraft.

But while there are some ethical dilemmas at play, not all corporate jet travel is bad or unjustified, say ethics and business experts. In some cases, company boards (like the one at General Motors) actually require that their CEOs fly private jets for security reasons. The optics may be terrible in these recessionary times, but flying the corporate jet isn’t always the evil it’s made out to be. “Whether there’s a problem depends on the circumstances,” says Leonard Brooks, a professor of business ethics at the University of Toronto. When jets are used for business purposes and they free up time for executives to work, or improve their state of being when they arrive somewhere to do business, the costs may well be justified, he says. In an interview last month, GM’s vice chairman Bob Lutz was unapologetic, saying that he’d still elect to fly to Washington via private jet, even if it was to ask for tax dollars. (He was not one of the executives who made the now infamous trip in November.) Imagine, he argued, a haggard executive showing up late to a congressional hearing because he’d been bumped off his Northwest Airlines flight. Continue…