The FAA gets dissed.
Since politicians were not able to come to an agreement over extending the operating authority of the FAA as of midnight tonight, about 4,000 people will be out of work and federal airline ticket tax will no longer be collected. The shutdown will not affect airline safety, but it will stop airlines from collecting about $200million per week in ticket taxes that would help to to fund FAA programs. In the short term, passengers might celebrate since they will be able to save money by not paying taxes, but this means that projects will be delayed and costs might end up being higher in the long run.
At this time it seems unclear exactly how this partial shutdown will affect the airline industry. Although confusing, I am willing to bet that Spirit Airlines will come up with some fancy advertising campaign about the FAA shutdown. Although I normally celebrate an airline’s unique advertising campaign, it seems odd to celebrate a failure in politics, which will end up hurting airline-related projects, but I am sure it will happen.
Update 1: looks like Virgin America jumped on the tax-themed sale already.
Update 2: Boeing confirmed via email to AirlineReporter.com that 787 Dreamliner and 747-8 certifications will not be affected by the FAA partial shut down.
Update 3: Alaska Airlines is also advertising (see screen shot) lower fares from the FAA partial shut down on their homepage. Still nothing from Spirit Airlines — guess I was way off on that one.
Here is the direct copy and paste of the FAA’s press release as well as some information from Alaska Airlines how these changes will change their fares…
From the official FAA Press release:
Transportation Secretary Ray LaHood and FAA Administrator Randy Babbitt expressed disappointment today after Congress adjourned for the week without passing a clean FAA reauthorization extension. Because of Congress’ inaction, many states will have to bear a significant economic burden and many airport projects will be halted.
’œI’m very disappointed that Congress adjourned today without passing a clean extension of the FAA bill,’ said Secretary LaHood. ’œBecause of their inaction, states and airports won’t be able to work on their construction projects, and too many people will have to go without a paycheck. This is no way to run the best aviation system in the world.’
The current FAA reauthorization expires at midnight tonight, Friday, July 22, 2011. Congress has extended the FAA’s authorization 20 separate times without controversy. Without an extension, the FAA will be forced to furlough nearly 4,000 employees and will be unable to move forward on important airport construction projects and other critical airport activities.
While this lapse in FAA’s authorization affects thousands of public and private sector jobs, it is important to note that the safety of the flying public will not be compromised.
’œThe FAA employees who will be furloughed perform critical work for our nation’s aviation system and our economy,’ said FAA Administrator Babbitt. ’œThese are real people with families who do not deserve to be put out of work during these tough economic times.’
The Airport Improvement Program has already stopped processing new airport grants in anticipation of a furlough. The program, which provides construction project grants to airports, will be shut down and unable to provide roughly $2.5 billion for airport projects in all 50 states that could put thousands of people to work in good paying jobs.
For example:
* Orlando International Airport in Orlando, Florida is still waiting on funding to rehabilitate a major taxiway
* St. Petersburg-Clearwater International Airport in St. Petersburg-Clearwater, Florida is still waiting on funding to rehabilitate Runway 04/22
* Cambridge Municipal Airport in Cambridge, Ohio is still waiting on funding to acquire snow removal equipment and conduct a survey to develop an instrument approach procedure
* Houghton County Memorial Airport in Hancock, Michigan is still waiting on funding to modify their terminal building and discourage wildlife from entering the active airfield
* Richmond International Airport in Richmond, Virginia is still waiting on funding to proceed with construction of a new apron for terminal concourse A
* Henderson City-County Airport in Henderson, Kentucky is still waiting on funding to rehabilitate Runway 09/27
* Clovis Municipal Airport in Clovis, New Mexico is still waiting on funding to relocate the localizer equipment due to a runway extension construction. This equipment is out of service on the main runway until the project can proceed
* Lubbock International Airport in Lubbock, Texas is still waiting on funding to begin the third phase of a critical runway rehabilitation
* Adams Field in Little Rock, Arkansas is still waiting on funding to begin the rehabilitation of taxiway lighting, construction of a Runway Safety Area, and the installation of Precision Approach Path Indicator
Additionally, the FAA will be forced to withhold money for states and individual airports as a result of the lapse in authorization. For example, Florida airports will not have access to over $40 million in funding and the state of California cannot use nearly $38 million. The FAA also cannot give the state of Ohio over $10 million in airport grant money or the state of Virginia over $16 million for which they are eligible.
Up to 4,000 FAA employees in 35 states, the District of Columbia and Puerto Rico will be furloughed and forced to go without pay. Large numbers of employees in New Jersey, New York, California, Georgia, Oklahoma, Texas, Washington, Illinois and the District of Columbia will be affected. This includes many of FAA’s engineers, scientists, research analysts, administrative assistants, computer specialists, program managers and analysts, environmental protection specialists, and community planners.
Specific Details from Alaska Airlines:
For tickets sold on alaskaair.com starting 12 a.m., Saturday, July 23, 2011, the following taxes will not be collected until congress votes to reinstate them:
* The 7.5% tax generally applicable to domestic transportation (as well the7.5% tax on amounts received from the sale of ’œfrequent flier miles’.)
* The $3.70 domestic segment tax.
* The $16.30 international arrival/departure tax.
* The $8.20 departure tax for flights between Alaska/Hawaii and the mainland US.
For example, on Alaska this represents a savings of approximately $44 off a $300 roundtrip ticket, or about 14 percent. All other taxes and fees will continue to apply.
Alaska Airlines Bombardier CRJ-700 (N215AG) operated by Skywest seen at SEA.Photo by Keith Draycott.
Not too long ago, Seattle-based Horizon Air flew CRJ-700s for the Alaska Air Group. Then, Horizon announced they would get rid of the CRJ-700s and only fly a fleet of Bombardier Q400s). Shortly thereafter, Alaska announced they would absorbthe Horizon brand. Now, Alaska Airlines has contracted out with Skywest to fly Bombardier CRJ-700 regional jets on some of their west coast routes.
The Alaska Air Group felt there was still a need for a 70-person regional jet to serve some of their west coast destinations, resulting in Alaska Airlines contracting with Skywest to fly 22 daily CRJ-700 flights between Seattle/Portland and Burbank, Fresno, Long Beach, Ontario and Santa Barbara.
Interesting enough, Skywest is leasing the CRJ-700s from Horizon Air and flying them for Alaska under the new brand. The regional jets will sport the Alaska Airlines livery with a smaller “Skywest” on the fuselage. The interior will have blue leather seating, to match what you might find on an Alaska Air Boeing 737. However, the service will mirror what you would expect from flying on Horizon Air (yay free beer and wine).
“Alaska’s goal is to create a consistent customer experience on all of its regional-aircraft flights and provide a level of service including beer and wine that will compete against other regional airlines that offer a first class cabin,” Marianne Lindsey, Alaska Airlines Corporate Communications explained to Airline Reporter. “Coffee, napkins, cups, the inflight magazine, flight attendant uniforms and flight attendant announcements will match Alaska’s. Boarding passes and a decal next to the aircraft boarding door will indicate the flights are being operated for Alaska by SkyWest.”
Horizon hopes to have a single fleet of Q400’s by June 1st, matching Alaska’s single fleet of Boeing 737s. It becomes more economical for Horizon to lease the aircraft through Skywest since they have many more CRJs in their fleet, allowing economies of scale that Horizon or Alaska cannot match.
Horizon Air employees are trained to work with the CRJ-700, but since they will now be operated by Skywest, there will be some operational changes that have required employees to go through some re-training. “More than 2,200 employees at Alaska, Horizon, SkyWest and our partner vendors have been trained,” Lindsey explained. “More than 40 computer systems have been integrated and more than 400 processes have been confirmed–all to ensure safety and compliance, as well as a seamless product for our customers.”
Alaska didn’t indicate that it immediate plans for additional routes to be flown by the CRJ-700s. “We’re continually evaluating demand in all Alaska markets and will ensure the aircraft type and frequency (or capacity) continue to match demand throughout the Alaska system,’ Lindsey confirmed.
I would imagine there could be some hiccups with so many changes happening at one time for the new Alaska, old Horizon and the addition of Skywest. However, Alaska has a good track record of keeping people informed and trying to make the changes unnoticeable to their customer. Although many of us airline geeks will notice a change of aircraft type and livery, most people just want to get from point A to B as safe and cheaply as possible.
Being a Seattle native, I have mixed feelings seeing the Horizon brand slowly going away. Alaska needs to be able to compete and keep themselves a strong independent airline. They have weathered many economic downturns without having to sell or merge. It is a love/hate relationship and it helps that Alaska Air’s livery looks so darn good on the Bombardier Q400 and CRJ-700.
Things of interest:
* Schedule of the Skywest CRJ-700s
* Photo of CRJ-700 in Horizon livery (N601QX which is now N215AG)
* An ex-Horizon CRJ-700 caught in Atlanta (N604QX)
* Photo of Alaska livery on CRJ-700 in flight (N215AG)
* Another photos of CRJ in AS livery on the ground (N215AG)
Image by Keith Draycott via Flickr
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Alaska Airlines Boeing 737-400 Combi (N764AS) arrives at Sea-Tac.
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After landing, the captain brings out the lucky salmon.
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24,300 pounds of salmon are unloaded from the Boeing 737-400 Combi.
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The Chefs are ready to cook up the Salmon.
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The Salmon-3-Salmon Boeing 737 (N792AS) was present to watch the event.
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The salmon get fileted right after de-planing.
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Judges try the different salmon dishes.
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Medals are handed out – everyone is a winner.
All photos done by Tad Carlson/NYCAviation – Click any for larger view.
Today Seattle welcomed Alaska Air Cargo’s Boeing 737-400 Combi (N764AS), containing 12 tons of Copper River Salmon, which is a favorite of fish connoisseurs.
One lucky fish was donated by Ocean Beauty Seafood to be cooked up for Alaska Airline’s second annual Copper Chef Cook Off Competition. The large fish was carried off the plane by the captain and in the open market it would be worth about $1000.
Three Seattle area restaurants, Anthony’s, Elliott’s Oyster House and SkyCity at the Needle, did their best to wow the VIP judges. At the judging table were Jay Buhner, Seattle Mariner Hall of Famer, Mike Fourtner, deckhand on the F/V Time Bandit on the Discovery Channel’s ’œThe Deadliest Catch’ and Joe Sprague, Alaska Airlines’ vice president of marketing.
Local Seattle celebrity John Curley provided humor and commentary while the cooks had 30 minutes to cook their best salmon. Although all three restaurants created delicious dishes for the judges and guests, Anthony’s held on to their title as Best Copper Chef of 2011.
The three recipes prepared for the Copper Chef Cook-off are available to download on Alaska’s website and fish lovers are encouraged to share their own favorite salmon recipes on Twitter, using the hashtag #CRsalmon.
Along with Alaska employees and invited media, Alaska MVP members who donated 75,000 miles to the Make-a-Wish foundation were invited to celebrate the arrival of the salmon and get a taste of each recipe.
Alaska Airlines is no stranger to flying seafood. Last year, they flew more than 22 million pounds of Alaskan seafood to the continental US, including almost 350 tons of Copper River Salmon.
“We’re proud to bring this prized, wild Copper River salmon to the Lower 48 and points beyond,” said Joe Sprague, Alaska Airlines’ vice president of marketing. “With enhanced food quality procedures and additional flights to support the Alaska seafood industry, we are going the extra mile to deliver fresh seafood throughout the country.”
This story was a joint effort between AirlineReporter.com and NYCAviation.com
In April, passengers didn't have to spend a lot of extra time inside Seattle-Tacoma International Airport since many flights were on-time.
Happy news for Seattle and on-time performance. During April 2011, Seattle-Tacoma International Airport (SEA) had the most flights departing on-time than any other airport in the US, according to the Puget Sound Business Journal.
SEA had 84.97% of their flights leave on time, which puts them at the number one spot. Even when looking at all of North America, SEA comes in second, with Vancouver, BC (just north of Seattle) beating them out with 86.07% of their flights on-time.
Not only did Seattle’s airport do well, but Seattle’s hometown airline, Alaska Airlines did very well too.
Alaska was number 2 in April for most on-time flights with 89%, where Horizon Air (Alaska’s sister carrier) was number three with 86.33%. Not surprisingly, Hawaiian Airlines (which has a history of being the #1 carrier for on-time performance in the US) was first with 92.35% of their flights on-time.
Congrats to all those based in Seattle who work hard to make these results possible!
Image: Benji Stewart
