Baggage fees and other extra costs are big bucks for airlines. Image: Payton Chung/Flickr/CC BY

The baggage fees and the other little extras charged by modern airlines can be expensive and annoying for the traveler. But they are gravy for the airlines. A new report suggests they add up to billions for the industry.

New report adds up the extras

A newly released report, the Amadeus Review of Ancillary Revenue Results, says baggage fees, frequent-flier programs, co-branded credit cards and other non-transportation fees earned the industry $21.46 billion last year.

Top dollar earners

The airline that brought in the most non-transportation money United Continental Airlines, which brought in $5 billion in extras. Second was Delta, at $3.7 billion. American Airlines, at $2 billion, was the third largest earner. All of them are companies based in the U.S.

Low-budget means extras are high percentage of revenue

Bargain airlines, however, with their lower ticket costs and shorter-distance flights, depend more on those extra fees to generate income. They lead the pack if the data is analyzed as a percentage of their total income. The big three earners, percentage-wise, were Allegiant Airlines, at 29.2 percent, Spirit Airlines, at 22.6 percent, and Ireland-based Ryanair, which brought in 22.1 percent of its revenue with those little extras.

Fees likely to go up

Jay Sorensen, co-author of the report and president of IdeaWorks, believes that more non-transportation fees will coming soon. “Oil prices spiked in 2008, which was also the year in which the U.S.industry introduced baggage fees. We’re nearing those historical oil prices again, and I believe we’re going to see another round of new à la carte fees.”

An earlier study

The Consumer Travel Alliance, a Washington D.C.-based lobby, did a similar study earlier this year. Its study was done in conjunction with Open Airlines for Airfare Transparency, a coalition of travel agencies. The study found that in 2010, air passengers paid an average of $36.80 in fees for every round trip.

Urging government pressure

The two groups have collected, as of last March,  more than 60,000 online signatures in an attempt to urge the federal government to to force airlines to make their fees more transparent.

MSNBC
Denver Business Journal
Business Week

Musings of a full blown energy crisis are becoming more common as gas prices near record highs. Photo from Wikimedia Commons.

Rumors of an energy crisis are beginning to become more than mere whispers as gas prices inch closer to a record high. The national average cost of a gallon of gasoline has been steadily increasing for weeks, putting pressure on households and industries. The price hike shows no sign of slowing down.

Price of gasoline quickly rises 20 cents

The nationwide average cost of a gallon of gasoline has risen by nearly 20 cents in the past few weeks. A Lundberg survey put the cost of a gallon of gas at an average of $3.76 as of April 8, according to Reuters, up from $3.57 on March 18. The price of gas has increased by nearly $1 in the past year. The current record for gas prices in the United States was set in July of 2008, at $4.11 per gallon. Currently, large cities in the U.S. are averaging more than that. California, according to CBS, has already reached a statewide average of $4.14 per gallon as of April 8.

Gas prices could clip wings of airlines

The air travel industry is set to withstand a battering as the cost of jet fuel is increasing, according to CNN. Jet fuel costs go up with the price of petroleum, which recently climbed to $112 per barrel. The record was in 2008, when the cost of oil hit $150 per barrel and airlines took an enormous hit to their bottom lines. Shares of major airlines have begun to fall on stock markets because of the increasing cost of oil. On April 8, the stock price of Delta fell by 4 percent, Jet Blue fell by 5 percent and UnitedContinental stock fell by almost 7 percent. Costs of oil and gasoline are not likely to decrease, as analysts do not believe that unrest in the Middle East is subsiding. Airfare increases have already been noted this year, and there are likely to be more as the cost of fuel keeps going up.

Consumers cutting back

There are already signs of consumers not wanting to grin and bear greater costs of a gallon of gas. Credit card companies, according to Daily Finance, have noted falling gas sales for the past five weeks, and 70 percent of the nation’s gas station chains have noticed the same. People are beginning to cut back on the amount of gas they purchase and trade in less fuel efficient vehicles for economically friendly gas sippers. Sales of hybrids, according to USA Today, have increased by 37 percent since the start of the year. The increase in price is leading to lower demand, as fewer people are willing to pay the increased cost of fuel.

Sources

Reuters

CBS

CNN

Daily Finance

USA Today

Delta Air Lines is reducing service to Japan, along with other major airlines, as the disasters there as well as rising fuel prices are wreaking havoc with the airline industry. Image from Wikimedia Commons.

Delta Air Lines has announced that flights to Japan will be reduced in the wake of the tsunami and earthquake. Falling demand and rising costs have caused numerous airlines to cut service to and from Japan after the nation was rocked by natural disaster. The entire airline industry is facing falling revenues and rising fuel prices.

Major airlines cut service to quake-ravaged Japan

The number of flights going in and out of Japan is being reduced across the board, as major airlines have too little demand and costs are too high to keep sending flights, according to Bloomberg. Service to and from Japan is being reduced by the Qantas JetStar line, Singapore Airlines, Cathay Pacific Airways and Korean Air Lines, as the earthquake that struck on March 11 has crippled demand.

Delta, according to Reuters, will reduce service levels 15 to 20 percent until May. The company estimates that the quake, tsunami and nuclear disaster will cost it $250 to $400 million. However, American Airlines has not yet announced it will reduce its service to Japan, which is provided through a joint venture with Japan Airlines. More than 9 million people fly to the U.S. from Japan each year.

Fuel prices wreak havoc with airlines

Airlines worldwide have been contending for the past several months with rising jet fuel prices. Rising oil prices due to unrest in Libya and the Middle East have been part of the increased cost of jet fuel, but harsh winter conditions during the past few months have also negatively impacted fuel prices and airline revenue. As a result, air fare increases are being implemented by numerous airlines. Southwest Airlines, for instance, has already had to raise air fares six times since the beginning of the year, according to Forbes, despite a 13 percent increase in the number of passengers flying with Southwest since the same period last year.

Expect summer vacation to cost a bit more

The increases in oil, gasoline and jet fuel prices have nothing to do with any actual shortage of supply caused by unrest in Libya, which provides only 2 percent of world supply, according to CNN. Speculators raise prices because of fears that the unrest will spread.

Unfortunately means that a full tank of gas is going to cost more during the summer, and some people may need installment loans to finance plane tickets for summer travel. How much more costly air tickets will become remains to be seen, but projections seem to indicate that the cost of travel will continue to rise for some time.

Sources

Bloomberg

Reuters

Forbes

CNN

If gas prices rise too high, more people will start using public transportation rather than get personal loans to fill up the tank. Image from Wikimedia Commons.

A new study suggests that if gas prices reach $4 per gallon, it could make drivers so desperate that they might start using public transportation. The national average for a gallon of gas is still below $4 per gallon, so until pain at the pump sends people headed for the bus station, there are still plenty of ways to save on gas in the meantime.

Americans may have a limit when it comes to gasoline

A new study purports that Americans may soon be pushed to a breaking point when it comes to gas prices, according to USA Today. The study, by the American Public Transportation Association, asserts that if the price of gas rises to a national average of $4 per gallon, public transportation systems will deliver an additional 670 million trips per year. In other words, people will only be able to tolerate gas prices to a certain point before turning to cheaper alternatives, as few will stand for having to take out personal loans to fill up their tanks. The APTA also asserts that ridership will rise with each dollar more per gallon, estimating that $5 per gallon will result in an additional 1.5 billion rider trips per year, and $6 per gallon will result in an additional 2.9 billion trips per year.

Public transportation can save money

Utilizing public transportation can save a lot of money, though many avoid it because of a perceived lack of convenience. The American Public Transportation Association projects that at a national average gas price of $3.47 per gallon, riding the bus can save a person $825 per month, and up to $9,904 per year. This figure includes savings on gasoline and on parking. The national average cost of a monthly parking pass is estimated by the APTA to be $161.56 for a parking space in a downtown business district, which is less than a bus pass would cost.

Gas costs can be gotten around

There are ways to circumvent rising gas prices,  if a person does not want to take out installment loans to buy a new hybrid, according to CNN. There are such things as gas station coupons, though they can be hard to locate and usually are only for one gas station. Warehouse clubs, such as Costco and Sam’s Club, offer gas discounts to members, and some gas station rewards cards can offer steep discounts off the cost of a gallon of gas. However, any savings from a gas station credit card can be effectively nullified by a high interest rate, so purchases should be paid off immediately before allowing interest to accrue.

Sources

USA Today

American Public Transportation Association

CNN

The rising price of jet fuel is being blamed for increasing airline fares. Image: Flickr / didbygraham / CC-BY

In the sixth such move since the first of the year, most airlines have raised their ticket prices. This recent $10 increase in standard fares is particularly significant because Southwest, usually a holdout, followed suit. The increase is being blamed on rising oil prices.

The rising price of an airline ticket

According to airline industry reports, the average cost of an airline ticket has increased by $60 this year. A ticket that would have cost $200 on Jan. 1, 2011, now costs $260. Not all airlines follow suit during price increases. Unless all airlines raise prices, the increases usually go back down. This latest $10 increase, however, was followed by Southwest Airlines, traditionally a holdout.

Low-cost carriers and fuel costs

Southwest Airlines is one of several low-cost airline carriers in the United States. Traditionally, Southwest Airlines has avoided many of the fees and rate hikes that larger airlines have undertaken, in an effort to keep customers. JetBlue and AirTran are also low-cost carriers that attempt to keep their prices low. These lower profit margins, however, open the carriers up to more price volatility. When the price of a barrel of oil goes up by $10 to $20, the airlines often raise their per-ticket price by a similar amount. The CEO of Southwest pointed out that Southwest will likely spend $1.3 billion on fuel in 2011, which is three times the total net income of Southwest in 2010.

The increasing cost of travel

As airlines are raising their fares, travel in the United States in general is getting more expensive. When individuals have long distances to travel, they are left with relatively few options. Airlines are the most obvious. Driving is also an option, though the rising cost of fuel can often put the price of a long-distance trip relatively close to that of an airline ticket. Bus service is also experiencing an increase in cost, thanks to rising oil prices. Rail travel is still a viable option in some areas of the country, but a train ticket that was $50 in 2008 is now $150, and service to much of the West is spotty. High-speed rails are still more theory than practice.

Sources

WSBTV
USA Today
News OK

Photo Credit: CC BY-ND/aSIMULAtor/Flickr

Increased airline baggage fees have more passengers toting carry-on luggage, reports the Washington Post. The increased flow of baggage to be inspected has passed the costs on to the Transportation Security Administration, which in turn is passed on to taxpayers. According to Homeland Security Secretary Janet Napolitano, the influx of carry-on luggage is costing approximately $260 million per year.

More carry-on luggage requires more security

So long as carry-on luggage fits an airline’s parameters, travelers have the right to bring it aboard. However, as Napolitano reminded Senate Appropriations subcommittee chairwoman Sen. Mary Landrieu, nothing comes free:

“When you have to pay to check a bag, it increases carry-on luggage, and that means there is more to inspect at the gate and so forth for passengers to get on planes,” she said.

In order for the TSA to be able to function optimally, costs must be absorbed. What’s at stake currently is whether the airlines or U.S. taxpayers should be covering the cost of additional carry-on luggage. Napolitano suggested to Sen. Landrieu and her subcommittee colleagues that increased airport security fees be assessed on airline tickets. By adding an additional $5-$10 per ticket, Napolitano estimates TSA would take in $600 million more per year.

Airport security fees haven’t made it through Congress

An airport security fee is far from a new idea. It has appeared each year since the concept was first proposed in 2002. However, Congress has not approved the airline ticket cost increase. Fewer flights, higher ticket prices and other passenger fees have already contributed to the first profitable year for the airline industry since 2007. Government estimates place 2011 airline profits at $5 billion and $5.6 billion in 2012. Perhaps Congress doesn’t want to push its luck with more fees.

Baggage policies for economy airlines

Knowing exactly what an airline’s baggage policies entail is important before hitting the gate. You may be surprised by what’s free and what isn’t. In general, wheelchairs are checked in as free baggage and do not count toward a traveler’s baggage allotment. Certain airlines allow children’s strollers for free without counting as part of the luggage allowance. In most cases, airlines won’t accept luggage heavier than 100 pounds as checked in baggage. Here are some baggage policy highlights for a trio of major economy airlines:

• Southwest – Two checked bags up to 50 pounds each are free. Extra and oversized luggage ranges from $25 to more than $100.
• JetBlue – One bag weighing 50 pounds or less may be checked for free. The second checked bag costs $50. Up to a 40-pound carry-on luggage piece is also free. Excess or oversized pieces run $50 to $100.
• Virgin America – First checked bag costs $25 and may weigh up to 70 pounds. Subsequent check-ins up to 50 pounds are $25 . Excess and oversized bags run $10 to $50 each.

Sources

About.com Air Travel

Washington Post

Cenk Uygur vs. Ana Kasperian on carry-on luggage

Two TSA employees at the JFK airport have been arrested for stealing more than $160,000 from luggage. Image: Wikimedia Commons

Two TSA agents were arrested at JFK airport this morning. The two Transportation Security Administration screeners are accused of stealing more than $160,000 worth of cash and items from airline luggage. The two were discovered after $39,000 was stolen from one bag at JFK.

TSA agents arrested at JFK

Davon Webb, 30, and Couman Perad, 36, were arrested today at JFK airport. The two men were charged with grand larceny, possession of stolen property and official misconduct. Webb and Perad were also officially fired by the Transportation Security Administration, which cited its “zero-tolerance policy” toward theft in the workplace. Both of the screeners admitted to their crimes when they were arrested.

$160,000 stolen from passengers

Webb and Perad first showed up on the radar of the TSA and Port Authority Police on Jan. 30. A passenger who was flying from JFK to Argentina found $39,000 missing from his bags. Webb and Perad worked in tandem, with one notifying the other whenever he saw cash in bags that were going through the X-ray scanner. The second screener would identify those bags for private screening in a separate room, where he would steal the money. The money was found by Port Authority police in one of the screener’s homes.

Other problems facing the TSA

The arrest of Webb and Perad is just the latest difficulty the TSA faces with allegations of misconduct. Just two days ago, on Monday, two other TSA employees admitted stealing thousands of dollars from baggage run through the Newark Liberty Airport in Newark, N.J. The TSA calls these “isolated incidents of misconduct.” The TSA is still facing heavy questions of its use of full-body scanners; all the while security holes at airports around the country are being highlighted. In short, the Transportation Security Administration is facing tough challenges from both the inside and outside the agency.

Sources

Daily Mail
New York Daily News

The Transportation Department will clarify its position this spring with an outright electronic cigarette ban on U.S. flights. Image: CC Daquella manera/Flickr

Smoking electronic cigarettes on U.S. commercial flights will be banned this spring. The U.S. Department of Transportation has let it be known that e-cigarettes will fall under standard smoking regulations. The U.S. senator who wrote the law banning smoking on airplanes is pressing the federal government to clarify its stand on the use of e-cigs on airplanes.

E-cigs prohibited by most airlines

The pending ban of e-cigs on U.S. flights was revealed in a letter from Transportation Secretary Ray LaHood to Sen. Frank Lautenberg, D-N.J., obtained by the Associated Press. Thanks to Lautenberg, smoking has been banned on airplanes since 1987. But e-cigarette manufacturers advertise their products as acceptable anywhere smoking tobacco is prohibited. Most airlines have official policies stating that using e-cigs on airplanes is not allowed. Yet videos proliferate on YouTube showing e-cig users gleefully puffing during flights. Some passengers feign ignorance, claiming to believe that e-cigs are like other electronic devices that must be turned off only during takeoffs and landings.

E-cigs: carcinogens and anti-freeze

E-cigarettes are indeed electronic devices. Manufactured to look and feel like a real cigarette, complete with a little light that glows on the end, e-cigs are battery-powered atomizers that heat chemicals into vapor. Inhaling the vapor provides a dose of nicotine without the acrid smoke or stinking breath. In 2009 the Food and Drug Administration released a laboratory analysis of e-cigarettes that found carcinogens and diethylene glycol, a toxic chemical used to make antifreeze. The FDA attempted to regulate e-cigarettes as drug delivery devices, but a federal judge ruled that the FDA only had authority over tobacco cigarettes.

E-cig hazards TBD

E-cigarettes made inroads on airplanes last fall in an unusual partnership between e-cig manufacturer Blu Cigs and charter airline Global Exec Aviation. Blu-Cigs is giving free samples to Global Exec passengers and hopes to do the same for commercial airlines. E-cig users may not pollute their surroundings with tobacco smoke, but forcing fellow passengers to inhale vapors that contain diethylene glycol raises concern. “We still don’t know the health effects of e-cigarettes,” Lautenberg said in a statement, “and we don’t want to turn airline passengers into laboratory mice.”

Sources

Associated Press

Daily Mail

USA Today

Chaos has reigned on the streets during the Egypt riots of 2011. (Photo Credit: CC BY-ND/Stephen Blackwell/Death + Taxes)

The U.S. State Department has warned U.S. tourists and expatriates that they need to get out of Egypt now. The Associated Press reports that the State Department has secured chartered planes to get U.S. citizens out, but efforts to inform everyone of the Egypt evacuation have been only semi-successful because of the Egyptian government’s Internet lock down.

The challenges of evacuating Egypt

Assistant Secretary of State Janice Jacobs told the AP that the first flights out of Egypt for U.S. expatriates and others are expected to arrive in Cyprus Monday. The process of evacuation is expected to take several days, and every moment is vital as protests against the regime of Egyptian President Hosni Mubarak continue to intensify. A crackdown on Facebook, Twitter and most Internet usage in general has made spreading word of Egypt’s evacuation days more difficult.

The Egyptian government’s freeze of online communications has sent ripples felt as far away as China, where censors have disabled searches including the word “Egypt,” in fear that the Egyptian civilian insurrection will inspire Chinese civilians to rebel against the Communist Party.

Cairo airport a nightmare

Cairo’s international airport has been completely overwhelmed by a flood of foreigners seeking escape from Egypt. Shouting, confusion and random fist-fights punctuate the drama within overcrowded terminals. Delayed or canceled flights are common, and staffing is woefully inadequate because 3 p.m. to 8 a.m. curfews make staffing almost impossible. EgyptAir had to shut down for 14 hours as a result, and an anonymous airline official told the AP that only 26 of 126 scheduled EgyptAir flights were operational as of Monday.

“It’s an absolute zoo; what a mess,” said Justine Khanzadian, a 23-year-old graduate student hoping for a flight out of Egypt.

Flight information available

Secretary of State Hillary Clinton has appealed to Hosni Mubarak’s administration for lasting democracy. Before the press, Clinton stated that the U.S. rejects the Egyptian dictatorship.

“(We don’t) want a democracy for six months or a year that evolves into a military dictatorship or a so-called democracy that then leads to what we saw in Iran,” said Clinton.

Information on flights out of Egypt is available at via State Department and embassy websites, via egyptemergencyusc(at)state.gov, at 888-407-4747 (within U.S. and Canada) and outside at 202-501-4444 .

Sources

Associated Press

Associated Press re. Cairo airport

Los Angeles Times

U.S. protesters back those oppressed by Hosni Mubarak regime

Moscow's Domodedovo Airport has been rocked by a possible suicide bomb attack. Image: Wikimedia Commons

In Russia’s Domodedovo Airport, explosion and a  possible suicide bomber has attacked the baggage claim area. Initial reports say that more than 30 people have been killed and hundreds injured. Domodedovo Airport is the busiest airport in Moscow.

Domodedovo Airport explosion

In the middle of the afternoon at Domodedovo Airport’s international arrivals terminal, a large explosion went off. The president of Russia, Dmitry Medvedev, has called this explosion a terrorist attack. It is estimated that thousands of people were in the airport arrivals baggage area at the time of the explosion. Russian news agencies are reporting that 31 people were killed and more than 100 were injured, 20 critically so. Fifty-six ambulances were called into the airport, and the most critically injured were rushed to area hospitals.

Fears of additional attacks after Domodedovo Airport explosion

In 2004, 2006 and 2009, Chetcheyn rebels attacked various transportation targets within Russia. During every one of these attacks, coordinated explosions hit multiple targets or multiple areas within a target. Many are worried that the explosion at Domodedovo Airport is just the first of several possible attacks today. Medvedev has ordered beefed up security at all possible transportation targets within Russia. Domodedovo Airport is one of three major airports within Moscow and serves an average of 22 million individuals each year.

Response to the Domodedovo Airport attack

Within Russia, the Domodedovo Airport attack has prompted several changes. The Domodedovo Airport has been trying to improve security, but there has been a lot of criticism and questions about corruption within the security procedures. The 2004 attacks on two planes flying out of Domodedovo Airport started with airport employees illegally selling tickets to the suicide bombers. President Medvedev has postponed his departure for the World Economic Forum meetings in Switzerland. The Secretary-General of NATO has also said he is “deeply disturbed” by the terrorist attacks within Russia.

Reports of the Domodedovo Airport terror attack

Source

The Republic

The three New York airports, Newark, Laguardia (pictured) and JFK are open but slowed to a crawl by snow. Image from Wikimedia Commons.

The three main New York City airports are open but are virtually paralyzed by blizzard conditions. JFK, La Guardia and Newark International are all able to get planes to land safely. However, getting people out of the planes and clearing flights for take off is incredibly difficult.

Blizzard conditions pound New York airports

A record amount of snowfall and blizzard conditions have battered New York City for days, and the New York airports have taken a lot of punishment. All three New York airports are open but are virtually paralyzed by conditions. Flights are landing at JFK, La Guardia and Newark International Airport, but getting passengers deplaned is incredibly difficult, according to CNN. Passengers on some flights have been stranded on the tarmac for hours on end. Equally difficult is the task of getting other flights to take off, as some people have been staying in the airport for more than 24 hours, waiting for their flights to be cleared to leave.

Stranded on the runway

Several flights have landed at New York airports, only to be forced to wait until airport workers can clear a gate for them to deplane. By Tuesday, Dec. 28, La Guardia had all three runways open, but JFK and Newark were down to a single working runway, according to the New York Times. More than 4,000 flights have been canceled in the wake of severe winter weather. A Cathay International flight from Hong Kong, already diverted to Toronto and back to New York, sat on the runway at John F. Kennedy International for more than 10 hours. AeroMexico flight 404 from Mexico City sat from just after 1 a.m. to 7 a.m. A British Airways flight had a similar predicament, as customs workers had already left for the night.

Delays continue

As winter storms continue to batter New York City, the New York airport system will continue to experience delays and cancellations. Snowfall is already on record as some of the worst weather the East Coast has ever experienced.

Sources

CNN

New York Times

Hairspray packed into a checked bag caused a small explosion at the Miami Airport. Image: Wikimedia Commons

Police and emergency crews at the Miami Airport are on high alert today. A baggage handler reported an explosion while loading luggage. The Miami airport explosion was due to a can of hairspray.

Hairspray boom at Miami airport

About 11:30 a.m. on Tuesday, the Miami-Dade bomb squad was called to respond to a Miami airport explosion. A baggage handler was unloading luggage from an American Airlines flight when a bag exploded. Pieces of metal flew everywhere, and a splinter of metal lodged itself in the baggage handler’s shoe. The baggage handler was not severely hurt, and the exploding hairspray shrapnel did not hit anyone else.

TSA investigating Miami Airport flight 2585

The Transportation Security Administration is currently investigating the explosion at Miami airport. None of the 148 passengers have been detained or questioned, though one is surely missing his or her hairspray. Hairspray is allowed to be in checked luggage, though it has been banned from carry-on for years. Checked luggage is subject to much larger swings in air pressure, as the baggage compartment is not usually pressurized. Any can or bottle of pressurized liquid, such as hairspray, would be subject to explosive decompression after the extreme swings in pressure after being in the baggage compartment.

No major delays at Miami Airport

The Miami Airport, despite being overrun with police, TSA, and the bomb squad, is not encountering any major delays. Flights are continuing on schedule, in general, from the Miami Airport. Flights into and out of many other East Coast airports continue to be heavily delayed due to the big blizzard. The TSA has not reported any plans to ban pressurized cans, such as hairspray, from flights. Larger cans or bottles of liquid continue to be banned from carry-on luggage. TSA security will not let passengers onto flights with liquids but will kindly confiscate them for those who want to make their flights.

Source

NBC Miami

Gas prices have soared over the past month, and experts expect oil futures to top $100 a barrel in 2011. Image: dykstranet/Flickr

Consumers can expect to pay higher gasoline prices in 2011 for a number of reasons. Global economic recovery and a falling U.S. dollar have sent crude oil futures past $90 a barrel in the past few weeks. Gas prices in many states in the U.S. average more than $3 a gallon, and energy analysts expect the trend to continue through the next decade.

Gas prices put a strain on income

The average gas price in the U.S. passed $3 a gallon last week for the first time since October 2008. Oil prices are also more than $90 a barrel for the first time since October 2008. According to the American Automobile Association, average gas prices in the U.S. have gone up 4 percent in the past month and up 16 percent from a year ago. The average driver spent $305 on gas in December, according to the Oil Price Information Service. Another study from PortiaGroup found that buying gas used 7.6 percent of median household income in 2010, up from 6.5 percent last year and 4.2 percent after the oil shock of 2008.

What is driving gas prices

Gas prices were already rising in November when Texas tycoon T. Boone Pickens predicted crude oil at $100 a barrel in 2011. Pickens last predicted oil at $100 a barrel in 2008. In July that year oil reached $145 a barrel. Gas prices in the summer of 2008 averaged more than $4 a gallon. Steep price increases forced consumers to curtail driving habits. As demand plummeted, prices adjusted accordingly. What is different about rising gas prices in December 2010 is that demand has remained constant. An increase in trading activity for oil futures and a falling U.S. dollar are driving the current spike in gas prices.

How high will gas prices rise?

Gas prices will keep rising and hit $5 a gallon in 2012, according to the former president of Shell Oil. John Hofmeister told Platt’s Energy Week that consumers can expect gas prices to soar along with global oil demand. Other analysts agree that $5 a gallon gas is inevitable, but say the global economy won’t grow fast enough to reach that price by 2012. In December the Organization of Petroleum Exporting Countries predicted a lower growth in global oil demand next year. Even with oil approaching $100 a barrel, OPEC hasn’t increased production.

Sources

CNN

Dallas Morning News

HR Morning.com

The NYC MTA is accepting LIRR tickets at Penn Station as a way to handle snowfall. Image: Wikimedia Commons

In the Northeast, huge snowfall totals are snarling business and traffic across multiple states. The website for the New York City MTA, which manages transit in and around New York City, has been practically shut down. New Jersey transit is trying to keep major routes online. The Long Island Rail Road, LIRR, is mostly offline, though New York City transit is honoring LIRR tickets at some stations.

MTA trip planner alternative

The New York City MTA is the only service with most routes still running. The MTA transit planner is proving difficult to access, however. The extreme amount of traffic on the MTA NYC website is crashing the servers. There is an alternative to the MTA transit planner, however. MTA and Google partnered quite a while ago to create transit maps on Google maps. Using the Google Transit MTA Trip Planner will show you the MTA route for your trip. However, Google Transit maps are based on a best-case scenario, so call the MTA at (718) 243-7777 to confirm.

NJ Transit bringing service online

The NJ transit service is trying to clear bus and light rail services as quickly as possible. Trains are running on an enhanced holiday schedule, and there are 15- to 20-minute delays on some rail lines. The NJ Transit service is encouraging riders to stay home today, because “getting to the station will be trouble enough.” If you are using the NJ Transit trip planner, officials are suggesting using Jan. 17, 2011 as the “travel date” to get accurate plans.

Long Island Rail Road

The Long Island Rail Road is facing its own troubles in getting passengers around. With snowfall totals of 16 inches or more, the blizzard warning is in effect until 6 p.m. Monday. The LIRR is using scraper shoes, jet-powered snowblowers, hot-air jets, snow brooms and other snow clearing equipment to clear the rail lines. All local stops at about 10 stations are running, though there are many trains that got stuck. New York City transit MTA services are honoring tickets for subway service from Penn, Atlantic Terminal and Jamaica stations.

Are you in the Northeast trying to catch the MTA, LIRR, or NJ transit service today? Having any luck?

Sources

Newsday
NJ.com

American Airlines tickets may not be available on Orbitz much longer. Image: Wikimedia Commons

Update: American Airlines pulls fares from Orbitz on 12-22-10.

In a ruling issued on Tuesday, a judge blocked Orbitz’s restraining order against American Airlines. American wants to block Orbitz from selling tickets on its airline. American claims this move will help them cut costs; consumer advocates question the results of this action.

American Airlines wants to cut out Orbitz

American Airlines first announced that they would take their listings off Orbitz on Dec. 1. An injunction to prevent American Airlines from taking that action was filed. Travelport Ltd., which is a privately-held company that owns 48 percent of Orbitz, brought this action. Though a Chicago judge turned down the motion, American Airlines has not yet pulled their listings. American claims that by cutting ties with Orbitz, they will help reduce the cost of their tickets by cutting out brokerage and commission fees.

The structure of online travel purchasing

The steps American Airlines has taken to take itself off Orbitz is an effort to cut costs. Online travel sites, such as Orbitz, Travelocity, Kayak, Expedia, and Priceline, get their booking information from “global distribution systems.” When an airline ticket is booked through an online site, the airline pays a part of that ticket price to the global distribution system as a fee, and a part of that ticket price as a commission to the travel site. This three-tiered system allows for comparison shopping, but also increases costs to the airline. Some discount airlines, such as Southwest and JetBlue, do not participate in online comparison shopping to help reduce their costs.

Consumer advocates concerned about Orbitz move

Though American Airlines has threatened to take their listings off Orbitz, they have not made the same move to other global distribution system websites. Airline industry consultants applaud American’s move to get their listings off Orbitz as a cost-cutting move. Consumer advocates, however, are worried that by taking their tickets off comparison-shopping sites, American Airlines would be able to charge higher prices for their tickets without as much competition.

Sources:

NPR.org
LA Times

The 90,000 ton Royal Caribbean ship Brilliance of the Seas was tossed like a cork in high winds and heavy seas on a Mediterranean cruise. Image: CC Rennett Stowe/Flickr

The Brilliance of the Seas, a Royal Carribean cruise ship, was caught in a surprise storm off the coast of Egypt over the weekend. Heavy seas and high winds damaged the ship and injured 30 passengers. The entire Middle East was battered by the storm, which sunk a cargo ship and forced Israeli airports and seaports to close.

Storm causes ‘severe ship movement’

The Brilliance of the Seas was en route to the port of Alexandria, Egypt, when it sailed into a storm with winds twice as strong as forecast. The ship was carrying more than 2,000 passengers on a 12-day cruise in the Mediterranean Sea. Winds up to 70 knots (80.6 mph) resulted in “severe ship movement” according to Royal Caribbean. Passengers reported people getting thrown around amid broken furniture and shattered glass. Two people landed in the ship’s infirmary with fractures. Most injuries were minor. Guests sailing on Brilliance of the Seas will have to do without the beauty salon, disco and video arcade for the remainder of the journey, which concludes in Barcelona on Friday.

Royal Caribbean’s goodwill gesture

The Brilliance of the Seas is based in Dubai and sails to ports in the Middle East and India. The cruise ship is 962 feet long, weighs 90,000 tons and has a crew of 859. The storm was reported to cause aesthetic damage only. The engines and operating systems emerged from the storm intact. Some passengers called the storm a “horrifying” experience. According to the website Cruise Critic, passengers reported that beds were sliding back and forth and furniture was upended. In a goodwill gesture, Royal Caribbean is giving passengers a full refund and an on-board credit.

Storm wreaks havoc in Middle East

The storm that lashed Brilliance of the Seas triggered sandstorms in Jordan and Egypt and blanketed the streets of Damascus in Syria with snow. Twelve-foot waves closed the port of Alexandria, which forced Brilliance of the Seas to bypass Egypt and proceed to Malta. A Moldovan cargo ship wasn’t so fortunate. It sank off the Israeli coast, but the 11-member crew was rescued.

Sources

CNN

USA Today

MSNBC

Some TSA screening personnel have made serious mistakes, but many have not and don't deserve ill treatment. Image from Wikimedia Commons.

The new Transportation Security Administration guidelines, and the TSA screenings and pat-downs, are not popular with a lot of people. There have been some serious transgressions by screening personnel since the guidelines debuted. This does not mean every TSA screener is out to abuse the public.

Workers conducting TSA screening deserve some sympathy

Since the new TSA screening procedures became the norm, public resentment has grown toward the new security guidelines. Granted, flagrant abuses by screening personnel absolutely should be condemned. The behavior on the part of some airport personnel is disgusting. However, bear in mind that airport personnel make few decisions, if any, on how to execute their duties. They are ordered to conduct searches in a specific way, and it is not inconceivable that they equally resent being abused by the public for merely doing their jobs as they are told. Also, according to a recent article on CNN, some members of the public flying the friendly skies are not exactly on their best behavior.

The customer can certainly be wrong

The platitude “the customer is always right” is popular, but anyone who has worked in public services knows just how wrong the customer can be. There are numerous websites dedicated to describing the odd, amusing, or downright rude behavior the public can exhibit, such as Notalwaysright.com, among others. Obviously, employees are expected to do their jobs professionally, and many do, but those are the people that are rarely noticed, never mind thanked.

More people accept screenings than not

Some polls about the new guidelines, according to ABC, reveal that more people are for the scans than against them, but just slightly more people are against pat downs than for them. Perhaps a pat down is going a little too far, as it isn’t as if anyone is committing a crime by flying. Though TSA employees who obviously go too far certainly deserve to be singled out for disciplinary action, the ones who do not should not be subjected to ill treatment just for doing their jobs.

Sources

CNN

Nowalwaysright

ABC

Few air travelers chose to opt out of full body scans in a protest that could have snarled airports on the busiest air travel day of the year. Image: CC alist/Flickr

Air travelers were choosing to opt out of “National Opt Out Day” as Nov. 24 unfolded. National Opt-Out Day is a grass-roots protest attempt calling on air travelers to refuse full body scans. The opt out protest threatened to snarl passenger traffic at airports on Nov. 24, the busiest air travel day of the year.

Opting out: why its a bad idea

National Opt Out Day is a response to the use of full body scanners and TSA pat-down procedures employed at airports to prevent airline terrorism. The grass roots group We Won’t Fly organized the opt out protest in hopes to send the Transportation Security Administration a message that air travelers are fed up with invasive “security theater.” National Opt Out Day was up against millions of holiday travelers willing to put up with overcrowded airports and security screening so they can spend Thanksgiving with their loved ones. Making a time-consuming, stressful ordeal worse with a demonstration of social disobedience appears to have gone over like a lead balloon.

Common sense prevails at airports

The TSA beefed up its staff at airport screening stations around the country to mitigate delays caused by National Opt Out Day. More than 2 million people are expected to fly Nov. 24. However, by mid-morning, several news outlets reported no major delays or incidents at major airports in the U.S. In an appearance on “Good Morning America” Wednesday, TSA Administrator John Pistole said airport screeners in the field had not reported that air travelers en masse were refusing full body scans to provoke a TSA pat-down.

A majority of air travelers approve TSA screening

An airport screening with a full body scanner takes about 20 seconds by the time the image is processed and reviewed. The TSA pat-down can take up to two minutes. A Gallup poll released Tuesday showed seven in 10 frequent travelers said the loss of personal privacy from full-body scans or TSA pat-downs was a fair price to pay to prevent airline terrorism. Fifty-seven percent said they were not bothered by full-body scans. However, 57 percent said they were either angry or bothered by the TSA pat-downs.

Sources

ABC News

CNN

Los Angeles Times

The TSA pat-down, already rare at crowded airports, can be avoided with common sense and a cool head. Image: CC Lars Ploughmann/Flickr

The controversial full-body scanners used by the TSA are installed at a small number of airports in the U.S. But the TSA pat-down is a fact of life at all of them. A very small percentage of air travelers get the TSA pat-down, but there are common sense steps holiday air travelers can take to further lower the odds of a manual body search.

Facts about the TSA pat-down

Of the 450 airports in the U.S., 69 use the full body scanners that create a near-naked image of people. The remaining airports use the good old-fashioned metal detectors everyone is used to. According to the TSA, fewer than 3 percent of air passengers get the TSA pat-down. Those that do either refuse to be scanned, an object is detected during a scan, or someone watching pre-flight screening in a secret room simply decides they look suspicious. A scan gets you through airport screening in about 20 seconds. The TSA pat-down takes a couple of minutes. Pat-downs are conducted by people of the same sex as the person touched by the TSA.

Avoid getting touched by the TSA

The best way to avoid a TSA pat-down is to ignore the hyperbole about digital nudity and radiation exposure and simply walk through the scanner. Fellow air travelers will appreciate the fact they aren’t held up further with airport screening that is already inconvenient. Wear slip-on shoes. Empty your pockets. Put jewelry and spare change in your carry-on, and take  bottles out. Don’t wear clothes with a lot of zippers, snaps or studs. Women should wear pants and avoid underwire bras. People with joint replacements or any other internal screws or plates should alert TSA screeners before getting scanned. Try to relax.

What to do if you’re touched by the TSA

About 2 million people fly every day, not including the holidays. The TSA said it has fielded about 2,330 complaints about the TSA pat-down since the procedure was implemented nationwide Nov. 1. The White House said about 340,000 people have been subjected to the TSA pat-down, 1 percent of 34 million people who flew in the past three weeks. For people who are singled out to be touched by the TSA, a private grope can be requested and everyone has a right to have a witness present.

Sources

Washington Post

ABC News

SNL TSA skit

The Saturday Night Live skit about the Transportation Security Administration aired on Nov. 20. The skit mimics a late-night adult telephone line advertisement, with sexy women offering a “personal touch.” The Transportation Security Administration agents come as a surprise, but the point is clear –TSA agents are feeling up travelers so much that it feels dirty. Combined, the SNL TSA skit video has more than 1 million views on YouTube, with many more on the NBC website.

Increasing debate over TSA screenings

The debate over TSA screening procedures has been getting louder over the last few months. Since “enhanced screening procedures” were instituted, more and more travelers are complaining that their privacy is being violated. A wide variety of viral videos and stories have hit the internet, with everything from a small boy being patted down to a cancer survivor having to reveal her breast prosthetic, all just to get onto a flight. These pat-downs only happen if a traveler opts-out of advanced imaging body scans – but those come with privacy concerns, too.

National ‘opt-out’ day of TSA screenings

Pilot’s unions have encouraged members to speak out against these screenings, and a national “opt-out day” is being planned for Nov. 24. Though the SNL TSA skit puts a humorous spin on what many are calling assault, there are very real consequences for the 24 million travelers expected to fly over the next few days. If you are traveling, do you plan to opt-out of the enhanced screening procedures? Where do you think the line between safety and privacy should be drawn for air travelers?