The airline industry reported that it filled up more than 80 percent of available seats in April, 2006. Yet the airline industry continues to lose money hand over fist.  That is what happens when you sell a 10 dollar steak for 5 dollars.

The competition in the airline industry on price is killing it. Until the airlines figure out this lesson that competition does not mean destruction the industry will continue to be in turmoil.

And the early results from April, which indicate that more than 80% of U.S. airlines’ seats were filled with paying passengers, portend a record-setting — and uncomfortably crowded — summer travel season ahead.

Seven airlines that have reported for April all show fuller planes. No. 4 Northwest ran fullest: 84.9%. No. 1 American filled 81.7% of its seats. And No. 5 Continental filled 82.9%. No. 3 Delta, despite a public battle with pilots over cost cuts that included threats of a strike or shutdown in mid-April, filled 77.6% of its seats. Even discounters Southwest and AirTran, which normally record load factors lower than the big network carriers, came close to filling 80% of their April seats.

For all of 2005, the domestic airline industry filled 77.6% of its seats, according to the Air Transport Association. The April numbers are good news for an industry that has lost more than $40 billion over the last five years. Better yet for the industry, travelers have been paying on average about 13% more for their tickets than last summer. via USATODAY.com

Venezuela has postponed its new restrictions on US airlines into their country for one month after talks with the US State Department. The country was planning on curtailing the ability for American, Delta, and Continental Airlines to fly into the country, but threats from the State Department to restrict further travel from Venezuela into the United States if these sanctions went into effect.

The threatened airline restrictions had heightened political tensions between left-wing Venezuelan President Hugo Chavez and the United States, which receives about 15 percent of its energy imports from Venezuela, the world’s No. 5 oil exporter.

Venezuela says it has improved aviation safety standards since it was first downgraded by the FAA in 1995, a move that imposed restrictions on Venezuelan airline services.

Under the FAA category two status, local airlines must lease aircraft and crew from a category one country to fly to U.S. airports and cannot expand flight services. Venezuelan airlines said they backed the ban because they wanted to force the United States to lift the restrictions.

Washington is caught in a heated dispute with Chavez over his close ties to Cuba and Iran. A self-styled socialist revolutionary, Chavez accuses U.S. officials of working to oust him while they counter that he is a threat to democracy.

Venezuela has been doing erratic things recently as a nation with their President Hugo Chavez, but the most recent one has aviation experts shaking their heads. On Thursday,  Francisco Plaz, President of the National Aviation Institute, informed Delta and Continental that they were not welcome to fly into Venezuela starting March 1st, 2006.

Speaking late Thursday, Plaz said that the measure, which also will restrict American Airlines flights, was taken because the U.S. Federal Aviation Agency had established a similar ban on commercial jets registered in Venezuela 10 years ago due to safety violations.
The ban would take effect on March 1, Plaz told the local Globovision television channel.
Delta Airlines currently services a daily route from Simon Bolivar International Airport to Atlanta while Continental Airlines has daily flights to Houston and weekly flights to New York. American Airlines services daily routes to Puerto Rico and Miami.

A spokesperson for the Venezuelan Association of Airlines, who spoke on the condition of anonymity, told The Associated Press the three U.S.-based airlines received notification of the ban on Thursday.

(AP) Venezuela Bars Two U.S. Airlines | WKRN.COM.

It is amazing how this can happen, especially on an international flight. The pilots have 24 hours at a minimum layover, enough time to have some drinks and sober up. But another idiot  is risking his 200,000 dollar a year job(edited: It was brought to my attention that American Pilots took a 40% pay caut in March of 2002, and my estimate of their pay rate was grossly exagerated. Apologies) by showing up at the airport  intoxicated.

An American Airlines pilot was arrested in Britain on Saturday on suspicion of being drunk before a scheduled flight to Chicago, the airline said.
A statement by the world’s No. 1 airline said the crew member was a relief pilot on the Boeing 767-300 with 198 passengers, meaning he was a backup to the captain and first officer. The crew member was not identified.
He was arrested on suspicion of being under the influence of alcohol after reporting for duty at Manchester airport, the carrier said. A court appearance was scheduled for Monday.
American said in a statement it was investigating and would not provide additional details. via  Reuters.com.

The end of the hot meal in coach on American Airlines is officially over as the galleys on some of their aircraft are being removed to create more seating space on board. This move scheduled for September is expected to save the company 34 million dollars a year in fuel costs and provide additional revenue for the airline.

American Airlines parent AMR Corp. yesterday said it plans to remove the rear galleys from its MD-80 aircraft and replace them with four seats beginning in September. Delta Air Lines Inc. will add seats this summer and may kill galleys as well, setting the stage for other carriers to do likewise as they seek to add revenue and reduce fuel costs by lowering weight.

By adding more seats, American said it is possible that the seat pitch, or leg room, in the coach cabin could be affected. “At this point, we don’t believe the average seat pitch will change appreciably,” said American spokesman Tim Wagner. via   the Washington Post.

The major airlines are raising fares 10 dollars per round trip trying to recoup the increased price of jet fuel. On Friday the price of a barrel of crude topped 69 dollars.

American, United Airlines and Continental Airlines all raised fares Thursday night, following a fare increase by Delta Air Lines, said Tom Parsons, chief executive of Bestfares.com, an Arlington, Texas-based firm that monitors airline ticket prices. US Airways matched the increase Friday.
While broad, the higher price does not include many markets where discount airlines, such as Dallas-based Southwest Airlines or AirTran Airways of Orlando, Fla., compete. It covers most advanced-purchase tickets, but did not affect last-minute tickets, which are generally the most expensive. via Buffalo News

Madison, Wisconsin is getting direct flights between itself and New York City. The home of the University of Wisconsin has a contingent of 3,000 students that hail from New York. It also is a vibrant research community that will prosper with the ability of investors gaining easier access to the city. This is a big win for the Madison community.

County Executive Kathleen Falk said the flight would be a boon for area business and academics.
“Most of the venture capital in the country is on the coasts and to have nonstop access for those venture capitalists to come here and meet with our companies, get to know them, fund them, it’s very important,” said UW Chancellor John Wiley.
The UW has 3,000 students who are from New York. via Channel3000.com

As airlines fight to stay out of bankruptcy, or remove themselves from bankruptcy, we are going to see more novel ways of generating revenue on the flights. The airlines are going start taking some of the things we expected, free sodas and snacks, and putting a price tag on them. They may also start charging for new things as The Houston Chronicle explains:

“The biggest news I see for 2006 will be extra charges for things like assigned seats, aisle seats, emergency-row seats, checked luggage, carry-on bags, snacks and soft drinks,” says Minneapolis-based Terry Trippler, a 30-year industry veteran and consumer advocate who now surveys airline developments and trends for Cheapseats.com.
Sodas for sale
Before you scoff, consider that American Airlines is testing sales of soft drinks and snacks for $1 with its American Eagle affiliate on selected routes in California. Several carriers already charge economy-class passengers for meals, but diet sodas and peanuts have been free until now.
“And United is allowing you to buy your way into the elite seats,” Trippler says of another test policy that allows non-elite frequent flyers to pay a surcharge for unsold window or aisle seats closer to the front of the economy-class cabin.
“I don’t know that I’ve ever seen something tested by an airline that wasn’t eventually established fleetwide,” Trippler says.
Trippler doesn’t anticipate airlines charging customers extra Chron.com

With the demise of Independent Air, other airlines have provided alternatives for their ticket holders.

Visit these Airlines Sites to see how they can help you with your ticketing if you are holding an Independence Air ticket.

• AirTran Airways
• American Airlines
• ATA Airlines
• Continental Airlines
• Delta Air Lines
• Frontier Airlines
• JetBlue Airways
• Northwest Airlines
• Southwest Airlines
• United Airlines
• US Airways

I hope this helps travelers who are holding Independence Air tickets get to where they need to.