TRANSATLANTIC MARKET SHEDDING CAPACITY The transatlantic air travel market in the first quarter of 2009 will lose nearly 384,717 seats, nearly 5% less capacity than in the same period this year. The reduction is surprising, given that new capacity and service flooded the market in the second quarter of 2008, following the enactment of the Open Skies agreement that aimed to grow business between the United States and Europe. U.S. airlines slashed domestic capacity in 2008, the results of which are evident in first-quarter 2009 schedules. 10% fewer domestic seats will fly in the first quarter compared with the same period in 2008—twice the decline in the transatlantic market. Based on a poll of about 50 travel buyers, UBS airline analyst Kevin Crissey in a research note this month showed that the demand trends match the capacity declines. ONLINE BOOKING HABITS CHANGING The percentage of travelers making online airline, rental car and hotel reservations has increased 15% during the past year, according to a survey by J.D. Powers and Associates. The survey found that overall, 70% of travel reservations were booked online in 2008, up from 53% in 2007. But only 16% were made through independent travel Web sites. Consumers who booked travel using an independent Web site also reported being less satisfied compared with 2007. Prices contributed to the decrease in customer satisfaction with independent travel Web sites, but so did problems with excessive content, pop-ups and having to download new software in order to book, the survey found. END IN SIGHT FOR AIRLINE PASSENGERS’ LIQUID LIMIT For the past two years passengers have had to display their toiletries in a clear plastic bag before being allowed through security. Within the past few weeks the International Air Transport Association, which represents 230 airlines, said it hoped that the next generation of scanners could be introduced into airports across the world. Travelers have repeatedly fallen foul of the 100 ml limit and have been forced to surrender an array of liquids. Many routine items – such as shaving cream, contact lens solution and spray deodorant – are difficult to obtain in containers smaller than 100 ml. Smiths Detection, a company at the forefront of aviation security, has started trials of its latest scanners. But several hurdles have to be cleared before the machinery can be used, including laboratory testing. Further trials would have to take place at an airport. The Department for Transport hopes that the restrictions could be lifted once the technology is in place.
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