Travelore Report, Monthly In Print Since 1971: #Airlines

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Wednesday, March 2, 2016

Lufthansa Begins New Panama - Frankfurt Service

New route further raises Lufthansa’s presence and profile in Latin America; extensive codeshare agreement established with Copa Airlines

Lufthansa began its new, non-stop service between Frankfurt, Germany and Panama City, Panama. Flight LH 484 departed from Frankfurt (FRA) at 10:15 a.m. local time, and is scheduled to arrive at the Aeropuerto Internacional de Tocumen in Panama City (PTY) at 4:40 p.m. local time this afternoon. Eastbound flight LH 485 will leave Panama City at 6:45 p.m. local time this evening, and is due to land in Frankfurt at 11:35 a.m. local time tomorrow (March 3, 2016). Lufthansa will be operating a five-times-weekly service on the new route all year round.

“It’s an exciting time at Lufthansa as Panama is one of several new leisure destinations that we are adding to our growing network,” said Juergen Siebenrock, Vice President Lufthansa German Airlines, The Americas. “Passengers traveling from this new gateway will now be able to experience the quality service and premium products that Lufthansa has always been known to offer, including our brand new Premium Economy Class that offers extra space for comfort and relaxation, as well as an elevated experience.”

The Airbus A340-300, which is used on this route, is equipped with FlyNet, Lufthansa’s broadband internet access product, and offers a three-class configuration that includes 18 Business Class seats, 19 Premium Economy seats and 261 Economy Class seats, for a total of 298 seats.

Lufthansa’s new Business Class offers a unique seating arrangement in the form of a “V” that angles two neighboring seats towards one another along a central axis. This innovative solution enables Lufthansa to fulfill one of the main wishes expressed by customers during an extensive research process – to sit or lie facing the direction of travel, while at the same time virtually doubling the distance between two neighboring seats at shoulder level so Business Class passengers have greater privacy and more space. At the push of a button, the seat converts to a full-flat, horizontal sleeping surface measuring 6’6” in length. Ergonomically improved cushioning ensures a high degree of comfort in a sitting or horizontal position, and adjustable armrests provide more space in the shoulder area when lying down.

Debuting in November 2014, the Premium Economy Class is a new travel class for Lufthansa passengers to enjoy. The new class touts affordability with greater comfort, offering up to 50 percent more room, a seat pitch of 38 inches, height-adjustable head and foot rests and individual armrests. Other features surrounding the seats include a bottle holder, electrical outlet and ample storage. Premium Economy passengers also receive a baggage allowance of two items weighing up to 50 pounds each and access Lufthansa Business Class Lounges for 25 EUR. The 261 Economy Class cabin seats also feature an in-seat video screen and an optimized ergonomic seat design with a slimmer seat back that adds to more personal space per passenger.

Frankfurt – Germany’s most international city – offers a rich culture and history. With a population of about 5.6 million, the Frankfurt Rhine-Main metropolitan region is one of Europe’s leading economic centers and a popular travel destination, offering a wide range of tourist attractions and sights, including world-class ballet, opera, theatres and art exhibitions. Although only fifth in size among German cities, Frankfurt is Germany's financial powerhouse. The German Central Bank is there, as is the European Central Bank, which manages the Euro.

Through its home base at Frankfurt Airport and together with its Lufthansa Group carriers and Star Alliance partners, Lufthansa provides passengers connecting through Frankfurt with convenient access to the world’s largest airline network and more than 1,300 destinations worldwide.

Under the new codeshare agreement, Lufthansa travelers can fly with Star Alliance partner Copa Airlines from Panama City, Panama to 73 further destinations in Ecuador, Venezuela, Peru and Costa Rica – many of them bookable under Lufthansa flight numbers. In return, Copa Airlines customers gain access to the global network of the Lufthansa Group, which currently extends to 261 destinations in 101 countries.

Since both partner airlines are members of Star Alliance, their customers can also earn and redeem miles on both carriers under the ConnectMiles and Miles & More programs. As a further benefit of the new partnership, Lufthansa travelers can check their baggage right through to their final Copa Airlines destination, obtain all of their boarding passes for the trip at their first airport of departure and enjoy lounge access at Panama City Airport.

While Panama is a new addition to the Lufthansa route network, the Lufthansa Group is no stranger in this country. LSG Sky Chefs opened a new, state-of-the-art production facility at Aeropuerto Internacional de Tocumen in March 2014, replacing the previous facility, which had been in use since 1963. The new development is part of a broader airport expansion that has been prompted by the substantial growth in passenger numbers in the last few years.

LSG Sky Chefs includes hub carrier Copa Airlines, and further leading international carriers such as Air France, American Airlines, AviancaTaca, Delta, Iberia, KLM and United, among its Panama airline customers. The new facility is approximately 69,000 square feet and is twice as big as its predecessor, offering ample space for further expansion. It also incorporates the latest production equipment to optimize processes and procedures. The facility currently employs 500 personnel, who produce an average of 27,000 meals a day for approximately 200 flights.

The new service in brief

A round-trip Lufthansa flight between Panama City, Panama and Frankfurt, Germany is currently available for approximately $990. For further information and reservations visit LH.com.

Frankfurt – Panama City (Panama)
Airport/three-letter code/time zone	– Frankfurt Airport, Terminal 1 (FRA); UTC +1 hour – Aeropuerto Internacional de Tocumen (PTY); UTC -5 hours
Schedule (all times local summer time)	NEW from 2 March 2016 Every Monday, Wednesday, Thursday, Friday and Sunday LH 484 depart Frankfurt 10:15 – arrive Panama City 16:40 LH 485 depart Panama City 18:45 – arrive Frankfurt 11:35 (next day)
Flying time (average)	11 hours 20 minutes
Flight length	9,070 km (4,897 nautical miles) / 5635.8 miles
Aircraft type	Airbus A340-300 (298 seats: 18 Business, 19 Premium Economy and 261 Economy)

About Lufthansa

One of the world's largest and most prestigious airlines, Lufthansa, serving 21 North American gateways, currently flies to 198 destinations in 77 countries. The air carrier offers hubs in Frankfurt and Munich. With the Lufthansa Group acquisition of Austrian Airlines, SWISS and a stake in Brussels Airlines, additional hubs include Vienna, Brussels, and Zurich. The entire Group flew a total of 108 million passengers in 2015 and currently serves 261 destinations in 101 countries worldwide. Lufthansa, along with its Group members and Star Alliance partners, serves over 1,300 destinations worldwide. An industry innovator, Lufthansa has long been committed to environmental care and sustainability, operating one of the most technologically-advanced and fuel-efficient fleets in the world. Its long-haul fleet to and from North America includes the Boeing 747-8 and the Airbus A380— the industries’ two most environmentally-friendly passenger aircraft. Lufthansa is the largest European operator of the A380 and was also the launch customer for the new Boeing 747-8. The Lufthansa Group currently has 259 new aircraft on order worth €35 billion in list prices, to be delivered by 2025. Known for its premium services, Lufthansa continues to build new or upgrade existing lounge facilities across its worldwide network. In 2014, Lufthansa introduced its new Premium Economy Class which offers further comfort and more personal space. Lufthansa’s entire long-haul fleet now features all new onboard products in each class– bringing Lufthansa one step closer to becoming the first five-star airline in the Western Hemisphere. Additionally, the entire Lufthansa long-haul fleet is equipped with its onboard broadband wireless Internet service, FlyNet. For more information or reservations, visit LH.com.

Saturday, February 27, 2016

Southwest Starts Offering Pay With Amazon For In-Flight Purchases

Photo courtesy of Southwest Airlines

Southwest Airlines has partnered with Amazon to offer a new in-flight payment service. The Dallas-based low-cost carrier’s Wi-Fi-equipped planes now allow passengers to make purchases with Pay with Amazon.

To use Pay with Amazon, fliers simply have to log into their Amazon account on their own device and approve whatever purchases they want to make. The feature can be used for buying Wi-Fi access or purchasing movies and TV shows.

Keeping up with current trends

Heather Figallo, Southwest’s senior director of product innovation and management, touted the new payment option as an example of the airline’s ability to keep up with current trends: "We're continually following the trends of our Customers, looking for ways to enhance the Customer Experience onboard our aircraft. With the addition of Pay with Amazon to our entertainment portal, we're doing just that.”

The Amazon payments will work on iOS and Android devices, and the service will also be accessible via web browsers.

READ MORE: Is This The Future of In-Flight Retail?

Not the only airline-Amazon partnership

Southwest’s IFE system is powered by Golden Eagle Entertainment, a firm that offers in-flight entertainment and connectivity solutions to airlines around the world. Golden Eagle is the IFE partner that is helping Norwegian Air roll out its live TV service. It is also a leader in the gate-to-gate connectivity movement.

Southwest isn’t the only airline to tap into Amazon’s considerable clout. JetBlue’s IFE portal features an enhanced version of Amazon Instant Video, which is accessible via the airline’s free Fly-Fi connection. The service is free for Amazon Prime members, and other passengers can sign up for a free trial when they fly. Since Southwest charges for Wi-Fi access, their IFE options are technically not free, though Amazon Prime members should still be able to use their account after they purchase Wi-Fi.

READ MORE: JetBlue's Cabin Redesign: What Does It Mean for the Industry?

Convenience... and an easier upsell

Pay with Amazon will certainly bring a higher level of convenience for Southwest passengers, allowing them to make purchases with a couple of clicks instead of having to go through the comparatively tedious process of whipping out a credit card and entering payment information. If they are already logged into Amazon on their device, they don’t even have to enter a password. Some fliers will also probably appreciate the extra layer of security that comes from not having to enter a new credit card number before clicking “purchase.”

So on one hand, Pay with Amazon brings a higher level of convenience and security. On the other, the click-and-buy payment model will make upselling that much easier for the airline. Also, adding another payment option shows that Southwest is most likely planning to continue charging for in-flight entertainment for the foreseeable future. Luckily, the airline is also apparently planning to keep its free checked baggage policy as well, so there is a trade-off for fliers.

The other trend to note is that Amazon seems to be getting more and more involved in in-flight entertainment, at least as far as U.S.-based low cost carriers are concerned.

By JOSH LEW

Thursday, February 18, 2016

Airlines To Offer Cheaper Flights, But Are They Worth The Savings?

Graham Roumieu

Rock-bottom fares once unique to low-cost carriers like Spirit and Frontier may, in the coming months, be offered by all three of the nation’s legacy airlines, American, United and Delta.

Great news for you and your wallet, right? The answer isn’t so clear-cut.

Spirit Airlines cemented its no-frills reputation a couple of years ago when it declared itself the “home of the bare fare”: a ticket that doesn’t include a seat assignment, a checked bag, even water. (The airline’s Twitter accountis duly frugal: “A big social media team costs money,” it explains, “so we put our feed on Autopilot to save you cents on every ticket.”) Frontier also offers bargain fares that don’t include seat assignments, in-flight entertainment and checked or carry-on bags as well as a slightly more costly package called “the works,” with privileges such as being able to choose your seat and bring a carry-on bag. Travelers have flocked to these airlines, drawn by fares like $53 each way between Chicago and New York on Spirit, and $79 each way between Miami and Philadelphia on Frontier. Unwilling to lose customers in certain markets where the low-cost airlines fly, major domestic airlines are rolling out their own no-frills fares.

Delta was the first to take the plunge, introducing “basic economy” fares on routes where it wanted to compete with discount carriers. Basic economy tickets do not include advance seat assignments. They cannot be changed or refunded (after a one-day grace period). And there are no free upgrades for anyone — even travelers with elite status, or travelers willing to pay to upgrade to business class or simply a preferred seat in coach.

Last year Delta put a number of changes to the fare rules into effect and announced that basic economy had spread to more than 450 markets since its introduction in 2012. Now the other big domestic carriers plan to follow suit. United said during its quarterly earnings call in January that it plans to introduce an entry-level fare “that will appeal to the purely price sensitive customer” in the second half of this year. American Airlines said during its quarterly call that it will roll out the first phase of a basic economy product in the same time frame.

The particulars of the programs are still under wraps. In the meantime, the frequent flier world is abuzz. On FlyerTalk, a popular frequent flier website and forum, United’s earnings call sparked chatter amid elites that the new discounted fares would be as restrictive as Delta’s basic economy fares. “I’m assuming as an elite we won’t be allowed to book these Entry Level fares right?” one member wrote. “Or we will and we won’t get any of our benefits?”

Another member pointed out that many business travelers work for companies whose policies require them to book the cheapest fare, which would mean they would have to fly with no perks and less flexibility. “A lot of business travelers are going to be hurt by this,” the user said. (Other members hypothesized that they would be able to avoid the fares because their company policy is to take the “lowest logical fare” — and that such stripped-down fares are not logical for business travel.)

For the most cost-conscious travelers, no-frills fares allow them to afford certain trips that they might not otherwise have been able to take. And, of course, no-frills fares are good for the airlines. “The more we segment our fares,” Jim Compton, vice chairman and chief revenue officer for United Airlines, told investors during the most recent earnings call, “the better opportunity we will have to minimize revenue dilution.”

It’s too early to know how these no-frills fares will affect different types of travelers (I’ll revisit that later this year). But the big domestic airlines are in the habit of copying one another, which suggests that Delta’s basic economy fares are the best indicator of what’s to come.

“We realize that Basic Economy fares aren’t for everyone,” Delta explains on its news site, “including families traveling with children.”

That’s in part because the fares don’t allow travelers to choose a seat in advance, so a mother could end up sitting in a different row than her children. (The airline makes it clear on its website what basic economy does and does not include.)

For travelers who frequently need to change their tickets, such fares are problematic because voluntary changes are not allowed.

For elites, the restrictions already implemented by Delta on such seats seems to send a message: We value your loyalty— sometimes.

“Delta’s elite frequent fliers need to shout from the rooftops, ‘I am not my fare,’” wrote Gary Leff, an air travel expert and author of the blog, View From the Wing. “I am a valued customer, or I am not, and how welcome I’m made to feel should not change between Tuesday on a full fare and Thursday on a discount one when I’m buying a ticket pretty much every week.”

For the occasional leisure traveler, how helpful the new fares will be remains to be seen. But let’s say that at some point you spot one of these rock-bottom fares on a big domestic carrier and it’s on par with a fare from, say, Spirit. Which carrier do you choose?

As a general rule of thumb, don’t assume that a low-cost carrier, or a legacy carrier that offers no-frills fares, always has the best price. You still have to do your homework, which means comparing prices as well as reading the fare rules, especially with regard to the flexibility of your ticket and its ability to earn you miles in your preferred program. Also look at which airline offers the most convenient flight times and airports. If possible, spending a few dollars more can be worth it. When Delta first introduced basic economy, Brian Kelly, author of the Points Guy blog, priced a particular itinerary and found a basic economy fare to be “a measly $12 cheaper.”

“Frankly, I’d rather pay the extra few bucks and be assured of a seat assignment I liked,” he wrote.

If looking at the fare rules and flight times doesn’t bring you any closer to a decision, and all things are still equal, consider the planes and the perks. Spirit, for example, has seats that don’t recline. There’s no Wi-Fi. Or video. A Delta basic economy fare is on a plane with seats that recline. Wi-Fi is available. You get in-flight entertainment. And a snack. So in that case, if the fares are about the same and you’re not trying to accrue miles, Delta would be a smart choice because you would have a more comfortable flight.

There is also the bigger picture to consider. Will economy seats with no benefits become the industry norm? Delta is already expanding its basic economy fares to routes where it does not compete with Spirit or other low-cost carriers. Will such fares further dilute frequent-flier programs by barring elites from upgrades? Will the big domestic airlines squeeze their smaller competitors, endangering their health and, in turn, healthy competition? We’ll learn more before the year is out.

Stephanie Rosenbloom