Continental Airlines plans to slash 3,000 jobs and reduce domestic flights in an effort to reduce operating costs. The cuts include pilots, flight attendants, mechanics, administrative personnel, and management.
"These actions will help Continental survive the crisis," wrote Chairman and Chief Executive Larry Kellner, and President Jeff Smisek, in a letter to Continental's 45,000 employees. In a move to demonstrate a personal response and commitment, the executives also announced that they would forgo incentive pay for the rest of 2008.
It has been estimated that charges for fuel will be $2.3 billion higher in 2008 than in the previous year. Beginning in September, Continental will decrease capacity by 11%, and will remove 67 airplanes from the fleet by the end of 2009.
United Airlines announced 14% reduction of capacity planned for fourth quarter of 2008. United Airlines is cutting 1,600 jobs.
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Delta announced 10% reduction of capacity in the fourth quarter of 2008.
American Airlines announced plans to reduce capacity by 12% in the fourth quarter of 2008.
As oil prices continue to rise, airlines are forced to respond with fewer flights, fewer routes, less staff, more passengers per plane, and higher prices. Reduced capacity translates to fewer flights, and this means that many of the smaller airports may be the first to feel the pinch. While some travelers may have enjoyed the convenience of smaller airports for proximity or to avoid the crowds of large airports, the availability of flight options may be greatly reduced. Airlines simply cannot afford to move aircraft with empty seats, so expect full flights, or expect that route to be on the chopping block.
In an effort to increase the number of passengers per plane, flights that do not have enough passengers may be canceled to combine passengers with other flights to the same destination. While many frequent flyers have experienced this interruption in travel plans in the past, it is likely to become commonplace while the airlines adjust to the new demands. When incomplete flights are combined, the result is typically an overbooking situation, which means more passengers than seats. As a result, some passengers may be temporarily stranded in a city overnight, pending an available flight the following day. Overbooking will become even more common as airlines endeavor to keep prices down by filling every seat on the plane.
What does all this mean to you?
Expect full flights. You will be able to tell your grandchildren about the days when you secretly counted the remaining number of individuals boarding the plane in hopes that you would have an empty seat between the window and aisle. Your grandchildren will think that you are making up stories when you tell them about the complimentary meals and movies that you enjoyed on the plane ride. One day the free meals and movies may sound as ridiculous as allowing smoking on a plane, imagine that.
Expect longer delays at security and check-in counters. Yes it is true, security is becoming more efficient, and automated check-in counters are intended to facilitate faster service. Nonetheless, as routes are consolidated and oversold crowds are consolidated into flight patterns that maximize the productivity of reduced staff to handle them, human traffic jams will occur. It is inevitable that consolidation will occur in the battle to control price increases, and in many ways the check-in lines will more often resemble the crowded lines at theme parks, mouse ears and all.
When possible, book direct flights. While this may be slightly more expensive than those connecting flights that enabled you to eat lunch in Houston and dessert in Orlando, it will also decrease your risk of spending an unexpected evening in Texas. When making your travel plans, consider the risk of an unexpected hotel and transportation in a connecting city, while your luggage goes on without you. Try to schedule your travel on morning flights, as opposed to the typical evening business flights, to allow greater opportunity for another flight without an overnight delay. If you do need to book a connecting flight, make sure that you have at least one hour between flights at the connecting airport. Remember that next flight boards thirty minutes before the scheduled flight time, which means that your seat could be on the roulette wheel if there is any delay on your original flight. Take responsibility to check your travel carefully when booking flights, and reduce your risks.
