CNBC still hot on airline stocks

CNBC keeps noting that airline stocks may be a good buy for 2010. Delta and United were the top two picks and have the potential to increase 50%. They are cautious on Southwest (LUV) due to the fact of increasing ticket prices that will try to absorb non fuel related costs.

Thanks British Airways

Well, it seems like the BA cabin crew will go on strike. I talked about this a month ago stating that the BA cabin crew folks are upset about a 2010 pay freeze, 3,000 full time employees switching to part-time, and a decrease in employees on long-haul flights out of Heathrow.

BA is not taking legal action against the cabin crew union, unite. The proposed 12 day strike will start on December 22 and conveniently disrupt peak holiday travel for BA customers. BA is already taking refunds on tickets and has a battle plan in action, if the strike occurs.

Why is this happening? Well, BA is feeling the pinch of the global economic crisis and since the airline relies on premium, long-haul traffic, they are now having a tough time filling those front end seats. As well, high oil prices and insane labor contracts have hampered this once cash cow airline.

It looks like a strike will happen and BA will lose any shot at making a profit this month and passengers will be ticked.

Airline stocks still hot

CAL up 35% in the month, DAL up 10% this week. The NYSE ARCA shows an increase of 25.62% This is all attributed to lower fuel costs, lower capacity, and fares staying put. CNBC analysts remain bullish on jetBlue stock and Alaska Air stock. I think airline stocks stink, but the past month shows differently.

introducing…the Skycar

Cool things come out of California. Apple computers, movies, music, surfing, avocados, and skycars. Moller International has created two airplane/car-like devices that can fit in your garage and fly you around town. The Neuera, an off-road style flying saucer, is one option offering from Moller. The other is the Skycar, which is more in line of what we think a car airplane should be. This vehicle gets 20mpg, can cruise at 36,000ft and fly at speeds of up to 360mph. You can launch from your driveway and cross the state line in minutes! The Skycar has a range of 750nm, so you could leave LA after work, and be in Vegas to show of your Skycar on the strip an hour or so later.

airline stocks are hot

This week, CNBC keeps harping on airline stocks. Personally, I think they are terrible, no matter what the case. But they have increased roughly 6% since Monday and keep climbing. I think some of this is due to lower oil costs right now and a slight uptick in future bookings. Big question remains: will oil stay in the $75-$85 range? Also, it’s great that planes are filling up, but is the yield really that good?

Take the sting out of travel with Minute Suites!

Today, I tried out the Minute Suites in Atlanta airport at concourse B, gate 15. The folks at Minute Suites gave me a tour and let me try out a room. It was so awesome and beat any airport lounge. I had a couch to myself, free headphones, directv, free wifi, plasma tv, and a blanket. The nice rep at Minute Suites turned on a “sleep mate” device that put me into a sleepy trance. I heard no outside noise and felt so relaxed!

The cost is $30 for the first hour and then $7.50 for each additional 15 minutes. If you travel quite a bit, I think this is one of the best concepts to hit the airport scene in years. Oh, and each room has a name from Atlanta. Cool.

Here are a few pics of the suite.

CNBC picks: UAUA, JBLU, AMR

CNBC keeps talking about United, American, and jetBlue as good stocks right now. I don’t buy it, but they are increasing over the past week. Maybe the airlines got it right, finally?

 

 

Fly in private jets, for less

While I was in White Plains the other week, I saw an “airline” called Coastal Jet Service. This company uses ultra fast, Citation X jets that shuttle passengers to California and Bermuda. The concept is that each seat in the Citation is sold individually. Rather than chartering a private plane for a lot of $$$$, you can buy a seat on a private plane that will cost $$—a lot less! You may not have that ultimate privacy, but you still can avoid all the hassles of commercial travel and cross the good ole USA in 5 hours.

Future cities include, Ft. Lauderdale, London, Las Vegas, Chicago, and Dallas.

 

BA Hong Kong cabin crew go to court

15 female (former BA) Hong Kong based flight attendants are squaring off with BA legal in England tomorrow on grounds of age discrimination. The flight attendants claim that once they reached the age of 45, they were let go. Meanwhile, other internaitonal crews are allowed to stay with BA well passed 45. The Hong Kong crews are upset at the age discrimination practice and want the anti-age discrimiation laws passed in the UK, to apply to them.

More on the story can be found here: cranky, old HKG BA crews.

Too bad airline gals don’t look like this anymore:

the good old days

 

 

 

Singapore Airlines, CEO, on CNBC

One of the coolest CEO’s in the world, Chew Choon Seng, of Singapore Airlines was on CNBC discussing his airline. He remained positive on SIA’s business strategy and ability to manage capacity, while taking a premium yield. Here are some highlights of the interview.

–Singapore Airlines is the largest airline in terms of market capitalization.

–USA still remains a strong priority, UK market is very weak.

–China and India are the strongest markets.

–Seng says there is too much global capacity.

–Seng says there is a need for governments to change old rules, and allow for cross-border consolidation. That will help industry.

–Airline hedged at $100, 22% hedged at end of Oct. 2009.

–Management needs to keep eye on capacity and keep costs low.

–Business travel has recovered a little bit.

–Tough to manage fuel hedging, and risk of locking in at a high price.

Seng seems like a great guy. I know he wants to invest more, especially in the USA.

CEO Seng