Sky Talk

New Delta COO from Dallas

The folks at Delta reminded me today that Steve Gorman, the new chief operating officer for the post-merger Delta, lived in Dallas for many years and considers North Texas home. Gorman, 53, was the CEO of Dallas-based Greyhound Lines before he joined Delta last year.

Maybe he can arrange to bring more service back to D/FW Airport?

- Trebor Banstetter

Baker: Holiday fares still high

Analyst Jamie Baker of J.P. Morgan is throwing some water on reports from FareCompare.com and Bestfares.com that airlines are slashing prices for holiday travel. In a research note today, Baker writes:

We are puzzled by reports that the slowing economy is prompting airlines to reduce holiday fares or to launch sales earlier than normal. While we certainly continue to expect industry revenue growth to diminish in coming months, sale activity is neither unusual nor remarkable. In fact, holiday price points appear broadly HIGHER than last year – not to mention you’ll be paying for that suitcase. Additionally, AirTran raised the majority of its 7AP-and-under fares by $5 to $15 one-way yesterday, which has been broadly matched by competitors.

Baker said that while Northwest did file its annual fare sale on Oct. 28, while it was launched Oct. 31 last year. "The difference of three days does not strike us as material, nor are the sale parameters meaningfully different," he writes.

- Trebor Banstetter

Quake didn't damage D/FW

Officials from Dallas/Fort Worth Airport say last night's small earthquakes didn't appear to do any damage, and operations are normal today. Apparently the second quake was strong enough that airport staff felt the floor rumble.

Here's what airport officials said in a report:

DFW’s Department of Public Safety, Airfield Operations and the Airport Operations Center conducted visual inspections of the buildings, bridges, airfield (taxiways, taxiway bridges, runways, signs and lighting vaults) and did not find any damage. DFW Airport Engineering is conducting additional inspections this morning. In addition, Airfield staff is continuing to inspect the airfield in daylight, concentrating on the safety areas. DFW is working with key partners including Oncor and Chesapeake Energy to ensure Airport operations continue to operate normally. The Airport has been advised that further tremors could occur and the Airport Operations Center will continue to monitor the situation.

- Trebor Banstetter

Southwest CEO: A sharp dressed man

As usual, the Halloween costume worn by Southwest Airlines CEO Gary Kelly was a secret held more closely than the most valuable strategic plans at the Dallas airline. He arrived at work this morning dressed as Billy Gibbons from the legendary Texas blues-rock band ZZ Top. His executive assistant, Gillian Kelly, and his chief of staff, Nan Barry, filled out the rest of the band.

- Trebor Banstetter

Southwest ground workers file for mediation

After nearly a year of stalled contract negotiations, ground workers at Southwest Airlines are asking for help from a federal mediator to get talks moving again. It's an unusual development for Southwest, which is famous for its friendly labor relations. Keep reading for more details.

- Trebor Banstetter

New sandwiches for sale on American

American Airlines is adding two sandwiches to its for-sale menu on domestic afternoon flights: an Italian Deli Panini and a Roast Beef Ciabatta. The airline will also continue to sell an Asian chicken wrap.

And now I'm hungry.

- Trebor Banstetter

FareCompare tracks biggest fare sale of the year

Rick Seaney at FareCompare.com says that in the past 24 hours he's tracked more domestic fare sale activity than at any other point this year. He said the sales are 10 times what he usually sees on sales that are launched early in the week and expire on Fridays.

"This is great news for consumers, many of whom have given up on holiday travel this year," Seaney said.

The big sale was kicked off by Northwest, he said, and other airlines quickly began matching the discounts. Seaney is urging consumers to take a second look at holiday fares if they had written off trips because of the price.

- Trebor Banstetter

Leisure, biz travel to decline next year

The Travel Industry Association is releasing its annual travel forecast, and the group is expecting demand to dip next year as the economy cools. The association is predicting that leisure travel will dip by 1.3 percent next year. Business travel, meanwhile, is expected to fall by 2.7 percent next year.

The drop in business travel is more ominous for the major airlines, because they make most of their money from corporate fliers. The decline is one of the reasons that airlines are cutting back capacity, which will reduce costs and help keep fares highers.

"Business travel is the weakest link in this picture," said Suzanne Cook, the group's senior vice president of research, on a conference call this morning with reporters.

The good news in the forecast is that travel for both business and leisure is expected to rebound in 2010.

- Trebor Banstetter

DOJ approves Delta/Northwest merger

Here's what the Associated Press is reporting:

WASHINGTON (AP) — The Justice Department has approved a much-anticipated merger between Delta and Northwest, clearing the way for the creation of the world's largest airline.

Federal regulators said Wednesday the merger would likely benefit consumers without substantially reducing competition. Another hurdle remains ahead, however: a federal lawsuit seeking to block the deal. Trial is set for Nov. 5 in San Francisco.

The combined airline would be called Delta and keep its Atlanta headquarters and its chief executive, Richard Anderson. Northwest would become a wholly owned subsidiary of Delta during the integration process.

Wednesday's decision caps a six-month Justice Department investigation of the deal.

- Trebor Banstetter

Love Field cheapest in the nation

Dallas Love Field had the cheapest fares in America during the second quarter, according to a new report from the DOT. Average fares there were $221 each way. Cincinnati had the most expensive prices, at $595.

D/FW was ranked 19th, at $409. The full list of the top 100 airports can be found here.

Overall, average fares reached the highest level since the DOT began collecting the data in 1995. Travelers paid, on average, $352 each way on domestic flights.

- Trebor Banstetter