Delta Industry News Update #2

Laptop ban future uncertain

Wider ban on laptops would cost passengers $1 billion, airline group warns

Widening the current laptop ban for flights from middle east and north Africa to include European flights would affect more than 10,000 flights monthly and would cost more than $1 billion dollars in the long run. The industry in on the edge of its seat advising that U.S and U.K authorities to work closely with the industry if they want to introduce further bans.

U.S. proposing increased security measures

U.S will lift the laptop ban for Etihad Airways flights arriving from Abu Dhabi. 9 other airlines including Emirates are still under the ban. Reason for this repeal is that Abu Dhabi airport already has a U.S. border security which will ensure screening more boarding the aircraft. Last week authorities introduced new measures that will increases screening for electronics that might be promising for loosening the ban.

Increase traffic volume and stable oil price contributing to a profitable quarter amidst turmoil

Delta airlines’ profit increased 3.5% in May over last year. A review of historical U.S airline record since 2004 shows that although overall jet fuel consumption and domestic departures has been declining, airline revenues are seeing a steady increase. This is due to the increased fuel economy of the new aircrafts and airlines increased occupancy of the flights, which increased 5% from 2007- 2016. Stable low oil price will help increase airline profits this quarter.

Airlines avoiding capacity growth

Delta airlines’ profit increased 3.5% in May over last year and increased traffic by 1.7% with no capacity growth. Seven major airlines have slowed down capacity growth as price competition due to overcapacity became major factor in harming airline profitabilities.


Say goodbye to Virgin America, Richard Branson looking to start new Airline

Richard Branson hints at potentially starting a new airline in the U.S. - Travel + Leisure.clipular (1)

Alaska Airline announced after acquisition of Virgin America brand that it would be dissolved in 2019. When asked about whether he is planning to start a new airline Richard Branson told report: “Watch this space” hinting at possibilities.


Airlines’ China appeasement policies backfires into series of PR disasters

Recently airlines competing in the China market have made series of moves to appease the Chinese sensitivities that have turned out into unmanageable disasters.

Emirates airline has recently increased capacity to 39 flights weekly to major Chinese cities. In a leaked corporate email the airline ordered its Taiwanese cabin crews last week to switch their Taiwanese flag uniform pin for Chinese flag pins i. This has incited anger among the Taiwanese staff and had since been retracted after it being publicized.


Cathay Pacific flight crews refused to add Chinese name tag.

After a disappointing quarter and the biggest ever job cut plan, and a huge debate between using traditional or simplified Chinese in flight, Cathay Pacific is in the news again after ordering its Hong Kong and Taiwan crews to add Chinese names on their name tags. Many resented the act as an appeasement to its Chinese customers and will potentially infringe on the crews privacy if their customer look them up and publicly criticize their service. And many did not like to use their Chinese names as they were sound too “outdated”

For airlines there are definitely ways to make your customers identify with you more through better services but it should never be at the cost of the respect for your own employee’s, especially when it comes to the sensitive topics on China relations and identities.


Dutch king reveals he held part-time job as airline pilot

Dutch King Willem-Alexander has revealed that for the past 23 years his favorite pastime was to fly the KLM passenger jets as “guest pilot” saying: “You can’t take your problems from the ground into the skies. You can completely disengage and concentrate on something else. That, for me, is the most relaxing part of flying.”

Colombian airline wants to make passengers stand

Low fare airline Viva Columbia is considering removing seats from its cabins and introduce a standing cabin hoping that it will drive down fares by squeezing in more passengers each flight.

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