Airport customs personnel entitled to overtime

Bureau of Customs personnel at the Manila airport are hopeful of a merry Christmas following a ruling by the Supreme Court that they are entitled to overtime pay from airline companies which they have not received since 1992.

The high court’s ruling said customs employees at the Ninoy Aquino International Airport who work beyond regular office hours are entitled to overtime pay.

Tess Roque, head of the BOC contingent at the Ninoy Aquino International Airport, said the Supreme Court decision was a victory for customs employees who had retired while waiting for the final decision on the case.

“We welcome the SC decision and we hope to receive it at least before Christmas, also for those who had left the airport, ’’ Roque told the Inquirer in an interview.

She said that most of the customs personnel now in the NAIA are “new entries.’’

Covered by the order of the Supreme Court are the 28 members of the Board of Airlines (BAR): Asiana Airlines, Cathay Pacific, Cebu Pacific,China Airlines, China Southern Airlines, Continental Micronesia Airlines, Emirates Ethad Airways, Eva Air Airways, Federal Express Corp.,Gulf Air, Japan Airlines, AirFrance, KLM Royal Dutch Airlines, Korean Air, Kuwait Airways, Lufthansa German Airlines, Malaysia Airlines, Northwest Airlines, Philippine Airlines, Qantas Airlines, Qatar Airlines, Royal Brunei Airlines, Singapore Airlines, Swiss International Airlines, Saudi Arabian Airlines and Thai International Airways.

She said they expect the airlines to file a motion for reconsideration. They have until October 13 to do so.

The Supreme court’s recent ruling stated the Customs Administrative Order No. 1 issued in 2005 was constitutional, reversing an earlier decision of the Court Appeals that was unconstitutional.

The highest court ordered the airlines to pay custom employees at the NAIA P30-38 hourly overtime pay, P50 travelling allowance per day, and P50 allowance per meal.

Section 3506 of the customs order states that “Customs officials may be assigned by a collector to render overtime work at rates fixed by the Commissioner of Customs when the service rendered is to be paid for by importers, shippers, or other persons served.”

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Green Day singer ejected from flight over pants

Green Day rocker Billie Joe Armstrong has complained that he was booted from a Southwest Airlines flight in Oakland, California, because of the way he wore his pants.

Armstrong, 39, said on the website Twitter on Thursday, "Just got kicked off a Southwest flight because my pants sagged too low!...".

The flight was going from Oakland, California, to the Los Angeles suburb of Burbank, said Brad Hawkins, a spokesman for Southwest Airlines..

Cindy Qiu, an associate producer at Bay area television station ABC7/KGO-TV, was on the flight and described the incident on her company's website..

She said that Armstrong, when he was initially approached by a flight attendant and told to hike up his pants, said "Don't you have better things to do than worry about that?".

He then tried to take his seat but was asked to leave the plane, Qiu said on the ABC7 website..

The situation appears to have been soon resolved..

"As soon as we became aware of what had happened, we reached out to apologize for this customer's experience," Hawkins said. "He elected to take the next flight.".

The Oakland-born Armstrong is the lead singer for the punk band Green Day, which came to fame in the 1990s with songs such as "When I Come Around." A musical called "American Idiot" based on the band's music is playing on Broadway.

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4 most common reasons airlines lose luggage

As frequent globetrotters and travel writers, we have no shortage of nightmarish lost-luggage tales -- and neither, it seems, do our readers.

Take Geri Mitchell of Seattle, for example, whose bag went missing for the entirety of her four-day stay in Hawaii for a wedding. The day she arrived back home, a Maui airport employee called to inform her that her belongings had been sitting in the lost-luggage office there for a week.

"For five days, not one person who works there bothered to read the very obvious ID tags and call me!" a still-incredulous Mitchell noted. The war-story winner, though, has to be Michelle Buchecker of Chicago, whose suitcase vanished during a six-day, multi-city business trip in 1993. She had to buy new clothes when she landed. Oh, and the missing bag? She never saw it again.

Buchecker is among the tens of thousands of air travelers each year to have their luggage lost forever. But it's not like the bags slip through a hole in the space-time continuum (like, say, socks in a dryer).

It's simply that, if a suitcase can't be reunited with its rightful owner within 90 days, the contents may be donated to charity -- or, more likely, shipped off to the Unclaimed Baggage Center in Alabama, a sprawling, 40,000-square-foot store where eager shoppers come by the busload to snap up lost treasures (maybe even yours) at bargain-basement prices.

So how does it get to that point? Though none of the following four scenarios are common (last year, airlines only mishandled 12.07 bags for every 1,000 passengers) they are among the most frequent reasons bags are lost, according to various airline officials and fliers' rights groups.

Scenario #1: The routing label gets damaged

Cause: When you check your bag, it gets tagged with an oddly printed, illegible routing label -- or a legible label gets snagged and torn off your bag shortly after being tagged. Adding insult to injury, it's a new suitcase, and you've forgotten to fill in the cool, leather-bound identification card.

Effect: No one notices the missing/unreadable tag until the bag has gone through TSA and arrived in the hectic distribution area. Because there's no way to tell where the bag should be headed, it just stays put. After arriving at your destination and waiting in vain for your bag to appear on the carousel, you file a report at the local baggage-service counter, providing a solid description of the suitcase. You're told it's going to take a bit of searching, so you continue on without it.

Scenario #2: You forget to pick up your luggage upon landing

Cause: Maybe you're distracted by an urgent text upon landing at home, and head straight for a taxi. Maybe you're weighed down with heavy carry-on bags and forget you checked one more. Or perhaps you're a tad buzzed from in-flight cocktails. Whatever the reason, you walk straight past the carousel and leave the airport without collecting your generic black roller bag (with no I.D. tag, natch), and don't realize it until you've arrived at home.

Effect: Eventually, an airline employee takes the bag off the carousel and stores it in the carrier's unclaimed baggage room. You call the airline and they put you through to an airport-based staff member who takes down a description and begins a search.

Scenario #3: The attendant types in the wrong destination code

Cause: When you hand over your luggage, the bag-check attendant accidentally inputs the wrong destination code. So off you go to LGA -- while your bag heads to LAX.

Effect: When you arrive to your destination and your bag does not, you file a lost-baggage report, giving a detailed description. The agent files it into the system and other agents are notified to be on the lookout in case an unclaimed bag fitting your description arrives at their location.Your suitcase sits in your airline carrier's holding area waiting to be properly identified. If it's tagged with your identification details, employees will most likely figure out where your bag was supposed to go and eventually send it there (or at least call to inform you it's been found). If it has no ID tag, it will sit -- and sit -- with the other unclaimed luggage.

Scenario #4: Your bag is loaded onto the wrong plane

Cause: You check your bag and, moments after it rides out of view on the conveyor belt, human error steps in: An employee places it on the wrong baggage cart, and, as a result, it gets loaded onto the wrong plane.

Effect: Even though the bag goes to the wrong city, it is properly tagged. So when it is the last piece of luggage on the carousel, an attendant will most likely see it, realize the mistake, and notify an attendant at your destination. The airline will then re-route your bag to where you are (hopefully without further incident), usually delivering it to your destination or, if you've reached the end of your trip, to your home.

How NOT to lose your luggage:

Over two million bags were lost, damaged, delayed, or pilfered in 2010, according to "mishandled baggage" reports made by the largest U.S. airlines to the Department of Transportation. (That's about 3.57 reports per 1,000 passengers.) Here's how you can prevent becoming part of this statistic:

Double-check: Ask the flight attendant handling your bag if you can see the routing information placed on the handle to verify its accuracy before she sends your suitcase down the conveyor belt. This is especially important if you have a connecting flight, because bags are not always routed directly to the final destination -- on occasion, it may be your responsibility to pick up your bag from the first leg of your journey and re-check it, and the best way to confirm this is to see what's written on the label.

Make yourself known: The key is to ID your bag in multiple places -- outside as well as inside -- by placing ID cards in various pockets and pouches. And then add another, using the paper tags provided by the airline carrier. Be sure to include your name, address, and phone number (preferably a mobile number).

Share your plans: Pack a copy of your itinerary (in a place that's not too hard to find) so that airline workers will know where to route your bag in the case they find it and cannot get in touch with you.

Document the evidence: Photograph or video the contents of your bag as you pack. "I just lay everything out on the bed and take a few photos with my phone," said Kate Hanni, of FlyersRights.org. Not only will that help to identify your bag if it goes missing, it will also help with claims forms if your suitcase is never found.

Remove extras: Before checking your bag, take off any removable straps; this will decrease the likelihood of it getting snagged along the way.

Arrive early: If you check a bag within 30 minutes of your departure time, it may not actually make it onto the plane.

Stick to tradition: Finally, don't check your bag with the curbside baggage checker; go inside to the main counter to decrease the chances of a mix-up.

Embellish your bag: Whether you buy a colorful handle wrap or just add a few stripes of bright duct tape, making yours different from the others could draw the attention of a not-so-motivated airline employee. Another option is to purchase a bag that's not black or navy (like the overwhelming majority), making it easier to spot in a roomful of luggage.

Finally, what are your rights if your bag is lost for good?

In the event that your bag is lost for good, US airlines can be held liable for up to $3,300 for domestic flights. The airlines will not, however, simply pay you to replace your missing items. Instead, they'll decide the compensation amount based on original purchase prices, minus depreciation (this is according to the "contract of carriage," which you automatically agree to when you buy a plane ticket). Here is a ray of sunshine: As of August 2011, a new law requires airlines to reimburse passengers for checked baggage fees (typically $25 and up) when said baggage is lost.

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Airlines begin canceling flights in earnest

Hundreds of thousands of travelers will have vacation plans changed by Hurricane Irene

U.S. airlines will cancel at least 6,100 flights over the next three days, grounding hundreds of thousands of passengers as Hurricane Irene sweeps up the East Coast.

If weather forecasters are right, the storm could strike major airports from Washington to Boston, buffeting them with heavy rain and dangerous winds.

United Continental Holdings Inc., the world's largest airline company, said late Friday it would cancel 2,300 flights Saturday and Sunday. Delta Air Lines said it would shut down entirely at New York-area airports on Sunday and cancel 1,300 flights through Monday.

US Airways canceled 1,166 flights for Saturday and Sunday, JetBlue Airways scrubbed about 880 flights through Monday, and AirTran Airways, owned by Southwest Airlines, also canceled 265 flights through Monday. American Airlines said it would cancel 265 flights on Saturday and probably even more on Sunday.

American expected to halt flights in and out of Washington-area airports around noon Saturday, but United hoped to remain open at Dulles International Airport in suburban Virginia, said spokesman Mike Trevino.

The hurricane is expected to make landfall around North Carolina on Saturday, move up the coast to New York on Sunday and then weaken in New England.

Delta's 1,300 cancelations, including Delta Connection flights, will equal about 8 percent of the company's flights between Saturday and Monday.

Many of the cancelations were on smaller, so-called regional affiliates such as United Express, Continental Express and Delta Connection. When weather limits flights at an airport, airlines ground those smaller planes first and try to salvage flights on the bigger "mainline" jets.

The airlines declined to say how many passengers would be affected by the hurricane, and the mix of small and big planes made it hard to estimate a figure. But the JetBlue flights, mostly on one type of aircraft, would likely have carried about 110,000 passengers, and they'll account for only about 15 percent of all canceled flights.

Airlines waived rebooking fees for customers who wanted to delay their flights to more than two dozen cities on the East Coast. Details varied by airline, with some giving travelers more time to make their rescheduled flight. Travelers whose flights were canceled would be eligible for refunds.

George Hobica, founder of the travel website airfarewatchdog.com, said travelers who bought nonrefundable tickets should wait until the airline cancels the flight rather than taking the airlines' offer to reschedule by a few days.

The problem with rebooking on the airlines' terms, Hobica says, is that you're unlikely to want to take the same trip a few days later.

Airlines have reduced flights in recent years, meaning it could be several days for stranded travelers to find a seat on another plane, says Airline consultant Mark Kiefer.

The hurricane will also affect cars, buses and trains.
A spokesman said Greyhound Lines started to cancel some service between Washington and New York on Thursday. Amtrak canceled most of its scheduled Saturday passenger rail service through Sunday south of Washington.

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In-flight film "explains" mysteries of female pleasure

The in-flight entertainment on some planes run by Australian airline Qantas currently contains a somewhat unusual offering -- a movie that purports to elucidate the mysteries of female sexual pleasure.

The 50-minute French film "The Female Orgasm Explained," which includes naked scenes, is carried on long-haul "Video on Demand" aircraft in the airline's "The Edge" channel -- complete with a warning that it is for mature audiences only.

"In general programs are selected according to quality of content, box office/ratings, topicality and Qantas customer demographics," Qantas said in a statement, adding that programs were screened by their program team before licensing.

"With the Edge, we source programs that are out of the ordinary across all genres."

Airline crews are able to block content to the seats of minors and at the requests of their parents, it added.

The film will be run until November.

The choice of film may be a bit risky given the fact that airlines are usually quite careful about what they show, said Catriona Eider, an associate professor at the Department of Sociology and Social Policy, Sydney University.

"I think sociologically it's interesting they are showing something that has the potential in that quite confined space to have people say 'Oh, what are you watching?' or shows that might be understood as titillating as porn," she said.

But she added that changing social norms mean that off-limit topics have shifted.

"'In Sex and the City', the orgasm is something pretty much spoken in everyday levels. It's no longer the taboo subject it was."

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Airline passengers warned over battery dangers

Australia's Civil Aviation Safety Authority (CASA) has warned passengers to avoid checking some types of electronic devices into an aircraft's hold.

The organization said August 2 that passengers would see additional screening since lithium batteries, used to power items such as laptops, mobile phones, cameras and iPods, have been linked to a rise in dangerous goods incidents onboard airplanes in recent years.

It said that given certain conditions, the new type of battery is more susceptible to starting a fire as the energy contained in them is greater than that found in previous types of rechargeable or dry cell batteries.

"As these batteries have the potential to short circuit and burn under certain conditions, the preference is to have them carried in the cabin by passengers where the risk can be better managed," CASA's Director of Aviation Safety John McCormick said.

"Cabin crew and flight crew are specifically trained in the management and handling of dangerous goods incidents in the aircraft cabin, including those caused by lithium battery fires and can respond quickly if an incident arises."

Battery incidents are not uncommon on commercial flights, and evidence suggests that they are growing with the popularity of electronic goods, in some cases resulting in cabin fires which crew are trained to extinguish.

However, a fire in the cramped, inaccessible cargo hold presents a significantly greater risk to an aircraft and is considered a possible cause of a fire which resulted in the crash of cargo flight UPS006 last year in the United Arab Emirates, in which both pilots were killed.

Shortly after the crash, the US Federal Aviation Administration issued an urgent warning to airlines about the dangers of carrying large shipments of lithium batteries.

CASA said that passengers may now experience a small delay at check-in as airlines begin questioning passengers on whether their luggage contains batteries and advise on how to carry them safely.

The Civil Aviation Administration of China implemented new rules regarding transportation of electronic devices following a cabin fire involving a video camera in May.

More information from the Australian Civil Aviation Safety Authorities is available at: http://adf.ly/486953/banner/www.casa.gov.au/dg

PAL posts $72.5-M net income in fiscal year 2010

Flag carrier Philippine Airlines (PAL) on Friday said it registered a profit for the fiscal year ending in March and reversed a marginal loss a year earlier.

In a statement, the airline said its income rose to $72.5 million, overturning the previous year's $14.4 million loss.

Revenues, meanwhile, soared to $1.67 billion or 23 percent higher than the figure posted a year earlier.

In fiscal year 2010, passenger and cargo traffic expanded by 12.4 percent and 41.8 percent, respectively, on the back of global recovery from the economic downturn.

Earlier, the company reported carrying 1.06 million passengers from January to March this year, up 7 percent from 942,144 in the same period last year.

Inbound passengers totaled 477,039 and outbound passengers reached 529,212

However, domestic passengers in January to March dropped by 15 percent year-on-year to 1.17 million.

Despite its positive results, PAL said growth is being weighed by rising expenses, particularly for jet fuel — the company's largest expense at $142 million, up 29.9 percent year-on-year.

From April 2010 to March 2011, fuel prices soared to $102.89 per barrel on average from $86.94 per barrel a year earlier.

Expenses for the fiscal year, meanwhile, totaled $1.61 billion, up 19 percent.

"While PAL is pleased with its recent positive performance, we remain watchful of the year ahead as fuel prices continue its upward trend. We have also noted a gradual slowdown in traffic demand especially for leisure travelers," the airline said.

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JetBlue offers $4 L.A.-area "Carmageddon" flights

For some Los Angeles-area travelers looking to beat the gridlock during an upcoming weekend freeway closure widely dubbed "Carmageddon," the best alternative route may be thousands of feet above the city.

JetBlue Airways on Wednesday offered special $4 nonstop flights between Long Beach Airport and Bob Hope Airport in suburban Burbank for Saturday, the first day of a long-planned and much-feared shutdown of the 405 Freeway for two days of construction.

The $4 one-way tickets include taxes and fees, and for $1 more, travelers can buy a bit of first-class treatment, including extra leg room and early boarding privileges.

"We're helping Angelenos get over the gridlock altogether and enjoy the valley or the beach ... without having to brave the traffic jams to get there," JetBlue marketing manager Mark Rogers said in a statement introducing the "Carmageddon" special.

The special offer was promoted with the slogan: "405 Freeway Closure? We're So Over It!"

The offer was obviously popular. Tickets for all four flights -- about 600 seats in all -- sold out in just two hours, airline spokeswoman Jenny Dervin told Reuters.

The airline known for introducing leather seats and satellite TV to U.S. bargain-fare service also offered a 40.5 percent discount on the airfare portion of its JetBlue Getaways vacation to Las Vegas from either Burbank or Long Beach.

As part of its "Over-the-405" special, JetBlue scheduled two one-way, nonstop flights from Burbank to Long Beach -- one in the early afternoon and one in the evening -- and two more in the other direction, from Long Beach to Burbank.

Passengers making a round-trip outing for the day from Burbank to Long Beach and back would have six hours on the ground. Those flying in the other direction would get a four-hour "layover."

Dervin said the promotion was not intended to introduce a new regular Burbank-Long Beach route but "to meet the short-term needs of our customers in Southern California."

Because the airline's Airbus 320 jetliners will be flying below the typical cruising altitude of 28,000 feet, the company needed the cooperation of the Federal Aviation Administration and air traffic controllers "to make these flights a reality," she said.

Authorities are warning Los Angeles motorists of area-wide traffic tie-ups of epic proportions during the 53-hour shutdown of the 405 to allow crews to demolish a bridge as part of a $1 billion freeway widening project.

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Tibet again closed to foreigners: travel agents

Foreign tourists will be barred from going to Tibet until the end of July, travel agents said Monday, the second time this year the troubled region has been closed to overseas visitors.

"At the moment we're not admitting foreign tourists," an employee at China Travel Service in the regional capital Lhasa told AFP by phone, adding the agency had received a notice saying this would be enforced until July 26.

A worker at the Tibet Youth Travel Service agency confirmed the ban, saying it begins on Tuesday and was linked to celebrations marking the 60th anniversary of China's rule over Tibet, reportedly scheduled for July.

The official Global Times newspaper quoted the Lhasa-based manager of a travel website as saying they would not accept tourists holding foreign passports until mid-August due to "safety concerns."

The regional tourism bureau refused to comment when contacted by AFP, and a spokesman for the Tibetan government said he was unaware of the situation.

Tensions run deep in Tibet, where many Tibetans accuse the government of trying to dilute their culture, and cite concern about what they view as increasing domination by China's majority Han ethnic group.

Disquiet spilled over into violent anti-government riots in Lhasa in March 2008, which then spread to neighbouring provinces with significant Tibetan populations.

In the wake of the 2008 unrest, foreign tourists were banned from travelling to the Himalayan region for more than 12 months.

In March this year, Tibet was once again closed to foreigners ahead of the third anniversary of the riots, but travel agencies said overseas visitors had been able to visit from April to June.

Even when foreigners are allowed in, authorities require them to obtain special permits -- in addition to Chinese visas -- and also travel in tour groups.

China, which says living standards in the region have improved markedly since it started ruling the region in 1951, has increased security in Tibetan areas since the 2008 unrest.

But reports of unrest still surface. One region in the southwestern province of Sichuan was hit by demonstrations earlier this year after a Tibetan monk self-immolated and died in an apparent anti-government protest.

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Lufthansa bets big in Philippines jet servicing

A hangar the size of two football pitches is rising at Manila airport as the Philippines bids to become one of the world's select few pit stops for the Airbus A380, the world's biggest commercial jet.

Lufthansa Technik Philippines is building the $30 million hangar, its third at the airport, to accommodate the new trend of larger aircraft, said its sales and marketing vice-president Dominik Wiener-Silva.

"What we're going to see is an increase in the average size of aircraft," he told AFP during a recent interview, adding that the industry overall was on an upswing after a difficult period.

The German firm hopes to cash in on the small group of carriers that have made the first 60 orders for the 275-tonne behemoths but lack their own maintenance facilities.

Only four sites worldwide can currently service the massive jet, which has a wing span of nearly 80 metres (262 feet).

"The Airbus 380 is a very large aircraft but it's not an unusually large aircraft," Wiener-Silva said. "The new hangar will be A380-capable. It will be large enough to have the largest aircraft in the world."

Set to be completed early next year, the new facility ramps up Lufthansa's capital investment in the Philippines to about $130 million, he added.

The core business of Lufthansa's Philippine unit is heavy maintenance.

Once every five or six years, jets are grounded for 25 days and are stripped to bare metal to get all their many thousands of individual parts tested for safety.

Britain's Virgin Atlantic is its biggest customer, along with the likes of the long-haul budget carrier Air Asia X, Cathay Pacific, Etihad, Japan Airlines, Korean Air, Qantas and Saudi Airlines.

Twenty other airlines also have their line maintenance at Lufthansa's expanding Manila base for Airbus aircraft as well as the ATR 72-500, the short-haul turboprop favoured by many budget airlines.

Line maintenance is a lighter, 24-hour safety check that regulators require once every 18 months.

Lufthansa offers other types of services at its 30-plus units around the world, including one in southern China that specialises in thrust reversers and other composite-material components.

"After some very difficult years in 2009 and 2010 we certainly see signs of an upturn," Wiener-Silva said.

"Airlines, especially in Asia, are picking up fast. We're actually seeing the strongest growth worldwide in the Middle East and Asia."

Aircraft maintenance accounts for about 10-12 percent of airline operating costs, and the local unit, the largest majority-owned Lufthansa unit outside Germany, has tidy revenues of about $200 million yearly, said Wiener-Silva.

But the 2,700-strong workforce -- almost all of whom are Filipinos -- is what makes the firm stand out, he said.

"In aircraft maintenance you will always encounter the unpredictable. It's not a standard production process and if you look for defects you require solutions," Wiener-Silva said.

"Filipinos are really passionate about finding the solution, getting the aircraft fixed and making the customer happy."

Wiener-Silva said the Philippines was unique in the region for its English-speaking population and extensive network of aviation schools that supply Lufthansa's local workforce.

"That is different from other up-and-coming countries like India and China -- you won't find that infrastructure," he said.

New graduates who go to work for Lufthansa Technik are put through the in-house training school, where they undergo a further 1.5 years of hands-on training before they are entrusted with the multi-million-dollar planes.

The unit sees new business in cabin modification, both for full-service carriers, which are keen on issues such as improving cabin amenities, as well as low-cost operators seeking to improve efficiency, said Wiener-Silva.

"Even a mechanic needs to be able to differentiate between a full-service carrier, where the cabin is the important part of the product... and low-cost carriers, some of which don't even have carpets in their cabins anymore."

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Qantas, American get approval to coordinate more

An Australian consumer bureau has granted interim approval for a closer relationship between Qantas and American Airlines.

The two airlines already code share flights to 54 destinations in the U.S., Canada and Mexico. Qantas says full approval from the Australian Consumer and Competition Commission would allow the partners to further coordinate schedules, fares and marketing on those routes. Thursday's interim decision allows cooperation on Qantas' new route to Dallas/Fort Worth in Texas.

The commission says the move protects the airlines from anti-competition claims for such cooperation.

The approval is temporary while the commission does a full review of the application. A draft of its final decision is expected in August or September.

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Airline changes baggage fees after U.S. troops returning from Afghanistan complain they were charged $2,800

Delta Airlines found itself scrambling to shore up its patriotic credentials after U.S. troops returning from Afghanistan posted a YouTube video complaining the airline had charged them more than $2,800 in excess baggage fees.

"We showed up and found out we had too many bags," Army Staff Sgt. Robert O'Hair, of the 95th Infantry Division, said in the video, the Huffington Post's Amanda Terkel reported today.

"We had four bags, and Delta Air Lines only allows three bags. Anything over three bags you have to pay for, even though there's a contract between the United States government and Delta Air Lines: When returning from Afghanistan on military orders, you're authorized up to four bags."

The 34 soldiers, from the 95th Infantry Division, had to pay $200 each out of pocket to the airline to transport their fourth bag.

Delta Airlines on Wednesday changed its policy to permit active-duty soldiers traveling economy class to check four bags at no extra fee, Terkel writes in an update.

For now, however, the 34 returning soldiers are still awaiting word of what Delta plans to do about the fees it assessed to them under the old policy. Terkel reports that a social-media spokeswoman for Delta, identified only as Rachel R., said that the company was telling the soldiers it was sorry for the episode. "She apologized to the Army unit on behalf of Delta and said the airline would be reaching out to each of them personally 'to address their concerns and work to correct any issues they have faced,' " Terkel writes. "Rachel R. did not say whether the soldiers would be reimbursed." You can read Rachel R.'s comments on the company's policy on the Delta Airlines blog

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Flag carriers join battle for low-cost sector

Three Asian flag carriers have announced plans to set up new low-cost airlines, jumping on the budget airline bandwagon as their cheap and cheerful rivals grab an ever bigger share of passengers and make inroads into the long-haul business.

The region's full-service carriers have rebounded from the global economic downturn. But they are in a dogfight with each other for lucrative premium-class passengers while low cost airlines like AirAsia and Qantas-owned Jetstar aren't ceding any of the ground they gained from aggressive expansion during the recession when cheap flights gained extra appeal.

Now, national flag carriers are increasingly deciding that if you can't beat them, join them. Some analysts say that shows the traditional airlines are finally facing up to the major strategic challenge that has been looming for the past decade: the incursion of low-cost carriers into short-haul flights and, more recently, into bread-and-butter long-haul routes — flights longer than 6 hours.

"Ten years ago, low-cost carriers only accounted for one percent of the market" in Asia, said Brendan Sobie, analyst at the Sydney-based Centre for Asia Pacific Aviation.

"Five years ago, they accounted for about nine percent. This year, they will account for almost 20 percent," he said, predicting the figure could double within the next decade.

The proliferation of budget airlines, and their new moves into intercontinental flights, spells good news for travelers: increased competition will further drive down air fares as the line between low cost and full-service airlines becomes increasingly blurry.

But it will also mean an even tougher fight to stay profitable for both budget and regular carriers as they grapple with high fuel costs. The International Air Transport Association has forecast Asia-Pacific Airlines to earn combined profits of $3.7 billion this year, down from $7.6 billion in 2010.

In Malaysia, budget airlines account for nearly half of seat capacity, in Singapore, they account for 22 percent and in Thailand about 17 percent, eating into the business of flag carriers in the three Southeast Asian countries.

Yet, it came as a surprise to the industry when Singapore Airlines Ltd. — one of the world's most profitable carriers — announced last month plans to set up a budget airline to operate medium and long-haul routes next year.

The move follows the appointment of new management this year and is a major gamble for the national airline, which relies heavily on business and first-class travelers who make up a small percentage of seats but account for up to 40 percent of revenue. It will be only the second flag carrier to launch a low-cost unit after Qantas Airways Ltd.

"It is a defensive move in a difficult market," said Rigan Wong, analyst at Citigroup Inc. in Hong Kong.

Singapore Airlines already owns a third of low-cost carrier Tiger Airways, which flies short-haul routes. It also owns SilkAir, which occupies a niche between premium and low cost for medium-haul flights. Singapore Airlines will be able to cater to travelers it currently doesn't reach by adding a budget long-haul airline, Wong said.

Singapore Airlines hopes to echo the success of AirAsia X, which started in 2007 and became profitable just three years later with flights to 15 cities in Asia, Australia, Europe and the Middle East.

While route details are unknown, CAPA said Singapore Airlines could target fast growth markets in China, India and Europe in a direct challenge to AirAsia X, which is partly owned by AirAsia and Richard Branson's Virgin Group, and JetStar.

Elsewhere in Asia, other flag carriers are only just getting around to venturing into the low cost approach to short-haul routes.

In Japan, All Nippon Airways is to tie-up with Hong Kong-based First Eastern Investment to set up the country's first budget carrier. Peach Aviation is expected to start flights in March 2012, offering fares on short-haul international routes at 50 percent lower than current prices.

Thai Airways has also approved plans for a wholly owned budget carrier to operate two to three hour flights from Bangkok by early 2012. It has also been trying to form a venture with Singapore's Tiger Airways but resistance from Thai regulators and other hurdles may end up scuttling the long-delayed plan.

"In today's business, we cannot survive in the long run if we do not compete at every level. We have lost huge opportunities by not having a budget airline for two years now, so it is high time to get things moving fast now," Thai Airways chairman Ampon Kittiampon said last month, according to Thai media reports.

Analysts said more long-haul airlines aimed at travelers on a tight budget are likely to emerge in Asia, with plans in the pipeline by Indonesia's privately owned Lion Air and Japan's Skymark. Jetstar, which flies from Singapore to Australia and New Zealand, plans to begin flights to Europe and North Asia.

Outside Asia, CAPA said Air Canada is seeking approval for a proposed long-haul low-cost carrier, but success in the trans-Atlantic market is uncertain following the collapse of Canadian-British carrier Zoom. After seven years, Zoom file for bankruptcy in 2008 blaming rising oil prices.

Citigroup's Wong says low-cost carriers flying long-haul routes will in particular cause changes in the airline industry.

It may see full-service carriers cutting fares on long-haul routes in attempt to squeeze out budget airlines. Some may also adopt the low-cost model of giving customers the choice to pay for the additional services they want such as food and in-flight entertainment, he said.

"Until full-service carriers respond more aggressively to the competition, low-cost airlines may continue to build market share gains in the long-haul segment and generate good profits," Wong said.

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Rats found on Qantas plane just before takeoff

A flight crew checking the cabin of a Qantas plane before takeoff found rats in a compartment holding medical equipment, grounding the plane for more than a day, a spokeswoman said Thursday.

Crews did a visual check of the plane Tuesday afternoon and found no more rats or any damage. The rodents had been in a cabinet holding a defibrillator. The plane returned to service Thursday morning.

Passengers had not yet boarded the Sydney-to-Brisbane flight and were instead put on another plane.

A Qantas spokeswoman called the incident "very unusual." She declined to be named, citing policy.

But Scott Connolly of the Transportation Workers Union told Australian Broadcasting Corp. radio on Thursday that members have had concerns about hygiene and sanitation on Qantas flights.

The spokeswoman denied that was the case. "This is a very irregular occurrence," she said.

Qantas, Australia's national carrier, has experienced a series of troubles in recent months, including an engine explosion and forced landings.

Earlier this week, a Qantas flight from Dallas, Texas, to Australia made an unscheduled stop on a Pacific island after pilots feared they might run out of fuel because of strong headwinds. The Qantas spokeswoman said the airline was committed to the route — which is new and one of the world's longest for Boeing 747 jets.

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PAL Flight Attendants serenading Bruno Mars at 30,000 feet

Airport operations disrupted by swarm of bees

MANILA, Philippines—A swarm of bees affected the operations and delayed some flights at the Ninoy Aquino International Airport (NAIA) Terminal 2, Thursday afternoon.

Some airport workers, including wheelchair attendant Rodolfo Gabriel, were reportedly stung by the bees.

According to Andrew Balde, assistant Terminal 2 manager, airport employees were surprised when bees suddenly swarmed the control panels of at least five aerobridges at Gates 32 to 38 around 1 p.m., preventing controllers from attaching the movable walkways to arriving airplanes.

The gates were immediately closed by the authorities, saying the incident posed danger to both passengers and airport workers.

Arriving and departing passengers at that time were made to use the service stairs down the ramp. Airport buses were also used to ferry the arriving passengers to the baggage claim area.

Balde said the incident prevented aerobridge operators from getting near the control booth for fear that they would get stung.

He added that maintenance workers then immediately cleared the bees using vacuum cleaners. It took about half an hour for maintenance workers to clear all the bees from the boarding bridges.

Some flights were also slightly delayed as a result of the incident, Balde said, but added that operations at the terminal went back to normal as soon as the boarding bridges were cleared of the insects.

He also said that they have deployed pest control experts who started the fumigation process.

Balde as well as some seasoned employees at the NAIA Terminal 2 claimed it was the first time that a swarm of bees attacked the airport.

“This is the first time it happened. Usually, there were bird strikes,” Balde told the Philippine Daily Inquirer. He added that they have not found any beehive in the area.

There were several instances in the past when bird strike incidents happened in NAIA, causing damage in aircrafts and delays in flights.

“There were no beehives. And besides we regularly conduct cleaning and fumigation. We suspect the bees came from nearby areas since the bridge to which the planes connect is open,” he said.

Some airport workers believe that the bees could have possibly been taken to Manila by a passenger and had escaped from a cage.

“But how can that be when at least five aerobridges were affected? That would have been possible if the bees were found in only one boarding bridge,” countered one employee.

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British Airways, Iberia agree to $7 billion merger

By Tracy Rucinski and Rhys Jones

MADRID/LONDON (Reuters) – British Airways (BAY.L) and Spain's Iberia (IBLA.MC) announced on Thursday a preliminary agreement for a $7 billion merger to create the world's third-largest airline by revenue.

The deal, which the companies hope to close by the end of 2010, ends the British flag carrier's long pursuit of Iberia to create an enlarged group, able to cope with the industry's largest downturn in decades.

BA shareholders will have 55 percent of the combined firm, to be headquartered in London with 419 aircraft flying to 205 destinations, while Iberia shareholders are to get 45 percent.

In a joint statement, BA and Iberia said the merger would provide "enhanced scale to compete with other major airlines and participate in future industry consolidation."

The new company will combine British Airways' strong position in Europe-to-North America traffic with Iberia's Latin American business, and will potentially be reinforced by a planned alliance with AMR Corp's (AMR.N) American Airlines.

Iberia's chairman Antonio Vazquez will be chairman of the new company, while BA's Chief Executive Willie Walsh will be CEO. Each airline will have seven members on the new 14-member board.

The deal will create a new holding company, which will own the two airlines. The two companies will have dual hubs in London and Madrid, and will keep their own licenses, codes and brands for the first five years of the merger.

This mirrors the structure set up by Air France-KLM (AIRF.PA) from the Franco-Dutch merger in 2004, which created a holding company plus two operational units to preserve national identities and bilateral international landing rights.
Ahead of the announcement of a deal, BA shares closed 7.5 percent higher at 206.8 pence, while Iberia shares ended up 11.8 percent at 2.22 euros.

http://news.yahoo.com/s/nm/20091113/bs_nm/us_ba_iberia