(Translated by https://www.hiragana.jp/)
Gulliver | The Economist
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Business travel

Gulliver

  • Malev stops flying

    Survival of the fittest

    Feb 3rd 2012, 18:41 by P.C.

    THE future of Malev, Hungary’s 66-year-old national flag-carrier, has looked bleak since the European Commission ruled last month that government aid it had received between 2007 and its renationalisation in 2010 was illegal and must be repaid. The deeply indebted airline had no way of paying the money back and indeed was relying on continuing state backing to keep going while a buyer was sought. Early on Friday it ceased flying after the government—which is suffering a debt crisis of its own—decided to stop financing it.

    Viktor Orban, the prime minister, said that restarting Malev was “not impossible”. Earlier this week the airline’s boss had used the same half-hearted phrase to express his hopes of reviving takeover talks with the Chinese state owners of Hainan Airlines. However, in the absence of a deep-pocketed rescuer, the loss of confidence an airline suffers on grounding its planes tends to prove fatal. Especially when, as in this case, stronger rivals immediately swoop in to grab its customers. Ryanair, which only ten days ago had announced plans to open five new routes out of Budapest airport, said on Friday that it would increase that to 31 routes, basing a fleet of brand-new Boeing 737-800s at Budapest from February 17th. Likewise Wizz Air, a Hungarian low-cost carrier, also said it would expand its Budapest schedules to fill the gaps left by Malev.

  • Passenger numbers

    Europe's passenger problem

    Feb 3rd 2012, 15:09 by A.B.

    AIRPORT traffic in Europe grew 7.3% in 2011, according to new figures from the Airports Council International (ACI). Having said that, it makes more sense to compare 2011’s traffic with a 2010 figure that does not include the traffic-reducing effect of the volcanic ash cloud. In this scenario the increase in traffic in 2011 is only 5.2%.

    Traffic grew more strongly in airports outside the European Union than those inside (12.2% v 6.3%). The slowdown in the euro zone was partly to blame for this discrepancy. For example, Athens saw the greatest drop in passenger numbers (-6.3%) out of the continent's 50 biggest airports, and—more alarmingly—its traffic dropped 10% year-on-year in December 2011.

    Problems in the euro zone explain why Olivier Jankovec, the director general of ACI Europe, expects the region's traffic to be less impressive in 2012 than in 2011.

    The odds are that 2012 will be a different story. Economies have come to a stand-still in many parts of Europe with the sovereign debt crisis, which is also having a ripple effect on growth prospects elsewhere. This will affect demand for air transport. At the same time, fuel costs and national aviation taxes are going to limit airlines ’ willingness to add capacity – a serious concern, especially for regional airports.

    Heathrow remains the biggest airport in Europe, with over 69m passengers passing through in 2011. Amsterdam Schiphol, currently the continent's fourth-biggest airport, will overtake Heathrow in 2019 if both facilities continue to grow at the same rate as at present. (Given that Schiphol has five runways and Heathrow two, this particular changing of the order has an air of inevitability.)

    At the other end of the scale, spare a thought for the least busy of ACI Europe's 168 member airports. Arad in Romania saw 1,124 passengers in 2011—an average of 22 a week. I guess its 300 parking spaces don't see too much use...

  • Travelling in India

    All aboard the Vivek Express

    Feb 3rd 2012, 10:20 by A.B.

    A COLLEAGUE travelled through India recently on the world's eighth-longest train ride. Four days on the Vivek Express took him from Dibrugarh, a scruffy town in a remote corner of Assam, down to the southernmost tip, at Kanyakumari.

    Fellow passengers, of course, offer the most. A companion in your correspondent’s cabin, who boarded in Dibrugarh, rides all the way south to Kerala. He calls himself Mr Kamil, tells stories of being a trader in coconuts and “small things”, and of roaming the country for work over the past 27 years. After so long on the rails, he says he has learned much about his homeland. Such as? “India”, he leans over to reveal, “is very, very big”.

    Read the whole article

  • TripAdvisor

    Tripped up

    Feb 1st 2012, 17:27 by A.B.

    TRIPADVISOR has been taken to task by Britain's advertising watchdog for using "misleading" wording on its website. In an adjudication released today, the Advertising Standards Authority (ASA) decreed that phrases such as "Reviews you can trust", "read reviews from real travellers", "TripAdvisor offers trusted advice from real travellers" and "More than 50 million honest travel reviews and opinions from real travellers around the world" breached two codes of the Committee of Advertising Practice.

    The ASA says TripAdvisor's wording misleadingly implied that all its reviews were genuine. Reviewers are required to confirm that they are giving their own opinions, but since TripAdvisor does not verify the reviews, such declarations are open to abuse. 

    TripAdvisor admits that the site is not perfect. I spoke to Steve Kaufer, the CEO, a while ago about the scope for abuse and his rather phlegmatic response was: “One or two phoney reviews: who gives a shit?”. TripAdvisor has ways to weed out false reviews, and it gives wronged hotels a right of reply, but it still relies heavily on its users to think hard before accepting all content at face value.

    The ASA does not think this works well enough:

    We noted that TripAdvisor allowed hoteliers a ‘right of reply’ to critical or negative reviews posted on the site and that they believed that users of the site had a healthy scepticism as a result of their experience of review sites more generally. However, we did not consider that consumers would necessarily be able to detect and separate non-genuine reviews from genuine content, particularly where a hotel or other establishment had not received many reviews, and nor did we consider that a hotelier’s response in itself would go far enough to alert consumers to, and moderate, non-genuine content.

    TripAdvisor actually changed some of the wording on its site some months ago. “Reviews you can trust” became “Reviews from our community” in September. But it has not removed its reviewers' ugliest excesses: the Telegraph notes the prevalence of descriptions of hotel staff as "homophobic" or "racist", suggesting that TripAdvisor is not pursuing its no-toleration policy against hate speech as assiduously as it should.

    The ASA was acting on a complaint filed by KwikChex, which helps companies manage their online reputations, and two hotels. KwikChex wondered today why TripAdvisor can't do more to verify reviews, given that one of its subsidiaries' websites, Holiday Lettings, only takes opinions from people whose stays at the property in question have been authenticated.

    TripAdvisor's response was: "we believe all travellers, not just the one individual who made the reservation or has the receipt, are entitled to share their honest feedback about where they have stayed. Requiring a proof of stay would dramatically reduce the number of reviews on the site, and we know from user feedback that our visitors value both the quantity and quality of the reviews available." That's fair enough, but if this really is TripAdvisor's approach, why does it require authentication for reviews on Holiday Lettings?

    In response to the ASA's ruling, TripAdvisor pleaded a certain amount of helplessness. "The ASA upheld the complaints on the basis that we could not provide 100% certainty that that every single review on the site was written by a real traveller and could be trusted," the company wrote in a statement. "No system, verified or not, could provide this."

    These strike me as reasonable defences. People enjoy using TripAdvisor because all the world is allowed to comment. Consequently, popular hotels have hundreds of reviews, and users can either wander around the sprawling site and read everything, or they can look at properties' average ratings for an overview. Yes TripAdvisor needs to be careful about excessive claims to genuineness; and it needs to be vigorous in responding to complaints from hotels. But if users of the site keep their brains fully engaged, they should have little bother benefiting from the wisdom of the travelling crowd.

  • Immigration

    What it's like to be deported

    Jan 31st 2012, 13:14 by A.B.

    WHAT happens when you step off a plane in a foreign country and immigration officials refuse to let you in? If you’re Christopher Johnson, a Canadian journalist living in Japan whose story earned a great deal of interest recently, you end up on a flight to Vancouver after a rather harrowing experience in the basement of Narita airport.

    The Japanese authorities refused to discuss the circumstances of Mr Johnson’s deportation when contacted by The Economist, but the country’s immigration service emerges with little credit for the manner of the deportation, even if the reasons for it are still murky.

    Moving on to the point of this post, I want to research a wider piece on the way immigration officials in the developed world treat arriving foreigners whom they don’t want to allow in. More specifically, I would like to hear what happens when the foreigners being turned away reckon they have the right (and the correct paperwork) to be allowed in. If this has happened to you, please do share details of what happened in the comments or by email, if you want some privacy—and I may follow some stories up. I’d like to know what reasons were given for the denial of entry, how you were treated, why you think you were treated in this manner, and what the short- and long-term outcomes were.

  • Alcohol

    Possibly the best travel tip ever

    Jan 31st 2012, 10:17 by N.B. | WASHINGTON, D.C.

    DRINKERS of the world, today I'm pointing you to this blog post from the Atlantic's James Fallows, who offers what is probably my favourite travel tip of all time. It meets all the criteria for a great tip: it's not totally obvious, you don't see people doing it all the time, it saves you money, it can make travel a little more fun, and it offers some of the satisfaction most of us get from flouting authority just a wee bit. You can thank me (and Mr Fallows) later. Here you go:

    As someone that enjoys a drink as much or more than the next guy (and is also frugalish), the fluids rules for flying were a huge bummer for me because it was my practice for morning flights to build myself a nice big bloody mary in a disposable bottle for consumption as I passed my way through the security apparatus and inevitable downtime before the flight. Rather a good deal compared to the pathetic offerings for top dollar otherwise available to travelers.

    Which brings me to my travel tip: Minis (the tiny little liquor bottles) happen to fit into your TSA quart sized baggie and are perfectly legal to take through security. A bottle of OJ on the far side of the line and you're in screwdriver heaven. Although, please be discrete as the US still has insane open container laws.

    Which brings me to my story: Not long after I figured out this loophole, I tossed my baggie full of minis in the x-ray bin and the TSA screener looked at them and gave me a broad grin and said, "Now there's a man 'at knows how to fly." To which I could only grin and nod in agreement.

    Let's say it again: there's a man who knows how to fly. Dean Martin and Dylan Thomas would be proud.

    Now, since America's Transportation Security Administration (TSA) hates fun and merriment and America's airlines probably don't want you bringing your own drinks on board when you could be buying from them, it's important to be discreet about this travel tip. Don't bring 20 minis on the plane, get drunk, try to open the door mid-flight, and ruin it for everyone else. As they say in the adverts, please drink responsibly.

    But if you follow the rules, this tip should allow you to mix your aeroplane drinks just how you like them (even in coach!) and save a few dollars, too. Until 2005, bizarre laws made South Carolina the world capital of miniature liquor bottles. In 2012, thanks to Mr Fallows's tip and the TSA's three-ounce rule, aircraft might take the title. Prost!

  • easyJet

    easyJet beats expectations

    Jan 30th 2012, 11:00 by N.B. | WASHINGTON, D.C.

    EASYJET, Europe's second-largest discount airline, surprised analysts last week by posting better-than-expected results for the fourth quarter of 2011. Revenue rose 16.7% to £763m ($1.19 billion) and passenger numbers increased over 8% to nearly 13m. Revenue per seat, an industry benchmark, was up 7.7%. As Reuters notes, much of the growth was driven by business travel:

    Last year, easyJet agreed a string of deals aimed at giving it a larger share of the business travel market.

    The airline said some 200,000 more business passengers flew with the carrier in the quarter year-on-year, despite a general decline in business travel.

    That seems like good news for the airline and Carolyn McCall, who took over as CEO in March 2010. And it's not surprising that business travel is at least partially driving easyJet's better results—many airlines are dependent on business travel for their bottom lines.

    But all is not well at easyJet: Stelios Haji-Ioannou, who founded the company and still owns the plurality of its shares, is not happy. He says easyJet has exaggerated how much business-travel bookings have helped it, and argues that the airline is paying its executives far too much. Mr Haji-Ioannou has been battling easyJet's board for years—in addition to the pay dispute, he's also upset about its aeroplane-acquisition strategy. The Guardian (which is owned by a company that Ms McCall once ran) has one of the better explanations of Mr Haji-Ioannou's complaints about executive pay:

    The easyGroup entrepreneur, who has waged an on-off conflict with the carrier over a range of subjects since 2008, said directors were in line for share awards of around £8m over the next three years.

    The shares were issued to 10 executives under the company's long term incentive plan this month and will pay out if the airline meets what Stelios described as a "phoney" return on capital employed (ROCE), a measure of how efficiently a business invests its capital.

    "The gravy train has gone wild at EZJ ... we must stop it," said Stelios. He believes the way easyJet calculates ROCE delivers a figure three times higher than the rate of return using a different method of calculation.

    As you can see, even one of the better explanations of the issue leaves much open to dispute. But this much seems clear: ongoing boardroom chaos can't possibly be good for easyJet. Stock-price increases in recent weeks are a sign the markets think the company was undervalued. But turmoil at the top will eventually trickle down, and three years is a long time for a board to bicker, especially so publicly. As The Economist wrote when this fight first broke out in 2008, "There is never a good time to have a full-blown boardroom brawl in public." It's past time for Mr Haji-Ioannou and the rest of the board to sort out their differences. It's hard to imagine easyJet's other shareholders are thrilled about the company continuing to be an object of media drama.

  • Boeing

    Faster, faster, faster

    Jan 26th 2012, 18:28 by A.B.

    AN ARTICLE in this week's Economist looks at Boeing and its struggles to fill its orders.

    At Boeing’s Renton factory near Seattle the existing version of the 737 is now being turned out at a record rate of 35 a month, after a recent speeding-up of the two assembly lines. At the front of assembly line number one, a plane destined for flydubai, an airline that can’t afford capital letters, is ready to roll. Behind it is the latest addition to Ryanair’s huge fleet of 737s, which has just had its engines fitted. Next, a Korean Air plane which is about to receive rows of seats; then an Azerbaijan Airlines jet, its toilet cubicles lined up alongside ready for installation. The plan is to increase the production rate further, to 42 a month by 2014. Fortunately, there is space to squeeze a third assembly line into the giant hangar.

    Read the whole piece.

  • Norwegian Air Shuttle

    Making a big deal of it

    Jan 25th 2012, 17:41 by I.C.

    HERE'S a traveller's tale that belies the woes of the euro zone and highlights the difference between sturdy northern Europe and struggling economies below the olive belt. When Europe's largest ever aircraft order comes from a carrier few outside the Nordic countries have heard of, it is time to take notice. Norwegian Air Shuttle (trading as Norwegian) has ordered 222 single-aisle Boeing and Airbuses. This is a breakthrough deal for Boeing, being only the second order for its souped-up 737, known as the 737Max. For Airbus, with its well-established new-engine option A320 sweeping the market in the past year, this is an entry into what was an all-Boeing zone. That an airline with a market capitalisation of only NKr 2.3 billion ($390m) could order planes worth $22 billion at list prices speaks volumes of the creditworthiness of a country with a wealth fund of $570 billion saved from oil and gas revenues. No wonder the American and European export credit agencies were happy to back the deals. Norwegian's shares rose on the deal, which is seen as another nail in the coffin of ye olde SAS, a carrier saddled with public-sector legacy issues.

  • In short

    Good news for Swiss, and other stories

    Jan 25th 2012, 16:55 by A.B.

    • SWISS International Airlines is—by some distance—the best of the European short-haul carriers according to a new survey. Its “customer score”, in a poll of more than 6,000 people by Which?, a consumer watchdog, was 76%. Aer Lingus came second with 67%. Swiss was the only airline to receive a five-star rating for its check-in procedure, and the only one to earn four-star ratings for its cabin environment and value for money. The table was propped up by Thomas Cook Airlines in 19th place on 37%, just behind Ryanair on 38%. Which? notes that Ryanair gets four stars for its costs, but only two stars for "value for money". "Passengers have perhaps realised the hard way", went the write-up, "that cheaper doesn't necessarily mean better."

    • A report by Amadeus (pdf), a company that provides technology to the travel industry, looks at the way technology is changing the face of travel. There's talk of translation tools, augmented-reality tools, intelligent-recommendation tools and luggage that can let you know where it is. One of the outcomes of these developments is that business travellers will morph into "business tourists", thanks to all the useful new services that hotels will provide. We can but hope.

    • This is not very recent, but Brendan Nelson's take on the military strategies needed to get a seat on London's public transport during rush hour is beautifully put together.

  • Airport security

    How much can you trust the traveller?

    Jan 25th 2012, 12:33 by G.L. | BERLIN

    MOST airlines still seem to think that peeling the back off a sticky label, looping one end through a bag handle and sticking it to the other end is too mentally taxing for the average traveller. So while you can check yourself in and print out your own boarding pass online or at a screen in the airport, checking luggage remains a highly specialised task for which you must find a person who has been adequately trained.

    Lufthansa, at least, seems to have decided to give its passengers the benefit of the doubt. At Munich airport, from where I flew to Berlin this morning, you plop your bag on to the weighing-scale next to the check-in screen, put in your details, and it spits out a luggage tag. After you've attached it, the scale, which is also a conveyor belt, shoots the bag into the maw of the baggage-handling system, but not before passing it under an electronic gate that reads the tag. On my first attempt it spotted that I had forgotten to remove the tag from my previous flight, and shot the bag back to me. Having pulled off the old tag, I put the bag back on the scale again—but must have put it on slightly askew, because it gave a different weight reading and the machine thought I had switched it for another bag; I had to start all over again. Evidently, Lufthansa not only trusts its passengers to be smart, but has accounted for the stupid and sneaky ones too.

    How advanced, I thought, as I made my way to the gate; in fact, how civilised. Things could still have gone wrong. I could have put the tag through a poorly fastened strap, so that it fell off later. I could have forgotten to take off the luggage ticket that is printed with the tag and stick it to my boarding pass (though these days, you almost never need it). But in fact, most of us have seen airline staff do these things so many times that we automatically know how. Instead of treating passengers like children, Lufthansa treats them like adults.

    Funny, though, I thought, after stopping to help a family who had somehow become trapped on the wrong side of another gate when they came off the plane, and were making frantic semaphore gestures through the glass doors to passers-by. (I told a Lufthansa person, whose first reaction was, "Well, they should stay there. It is forbidden to come out on this floor.") Funny how the check-in machine hadn't asked me to scan my passport or any other form of ID—I had just typed in my name and reservation code. And funny, I thought as I waited in line to board, that the gate staff weren't checking anyone's ID either, just their boarding passes. I got on the plane, ruminating that I could have given my name and reservation code to anyone, and they could have taken my flight instead. Now, most of us wouldn't do such a thing. But in these days of heightened security, is that taking trust in the passenger just a shade too far?

  • Hotel search engines

    Meet Roomkey

    Jan 24th 2012, 15:57 by F.C. | NEW YORK

    SIX hotel chains have combined forces to create a new search engine for guests seeking rooms. Choice, Hilton, Hyatt, InterContinental, Marriott and Wyndham are the joint owners of Roomkey.com, which removes online travel agents from the booking process and sends guests to the chains' own websites for payments.

    Much is made of the absence of an intermediary, such as Expedia or Kayak. "Accurate hotel information straight from the source," trumpets the press release on InterContinental's website. It might have added that bringing information "straight from the source" means the hotels do not have to pay a third party for the introduction or the transaction.

    Roomkey is a handsome enough site, with a clean design that is less utilitarian and more inviting than those of the online travel agents and aggregators. For the user, the design is one of the two perks of Roomkey, since its capabilities are not markedly different from its competitors'. Users put in the city or zip code of their destination, plus travel dates, and then receive an array of hotel options presented as a list or on a map, with an "estimated total" per night that includes taxes and fees. You can filter the results by price and star range, and when you've made your choice, a click takes you through to the relevant hotel website, where the price should be the same. That's the second perk, because this is not always the case on other sites. In one test I did, for example, Kayak listed a hotel room rate that was $30 less than the price I was actually required to pay to complete the booking on the hotel's website. For the same transaction, Roomkey gave an accurate price, as you would expect. If it remains reliable in its pricing, it should win business despite covering a smaller market than the aggregators and travel agents.

    At present Roomkey focuses on American destinations, but will expand to other English-speaking regions from March. The site has pricing for 23,000 properties, and the plan is to expand that to 80,000 properties worldwide by the middle of 2012. Other features such as independent hotel reviews and a facility for sharing travel plans have also been touted.

  • FAA reauthorisation

    The battle to keep the FAA running

    Jan 23rd 2012, 16:10 by N.B. | WASHINGTON, D.C.

    ON FRIDAY afternoon, National Journal reported that congressional negotiators were nearing a deal to reauthorise funding for the Federal Aviation Administration (FAA), America's airline regulator. A day later, the Hill added the news that Congress will probably still have to pass a short-term funding bill while negotiators hammer out the details of the larger, four-year bill. But the biggest fight in the bill—over rules governing airline and railway workers' ability to form unions—seems to be over. If you're a business traveller, it's time to rejoice. Congress certainly is: "Congressional leaders were happy to have agreed on something at last," wrote the National Journal

    The biggest news for business travellers is that there won't be another FAA shutdown; the last time that happened, the airlines' taxes went down but fares went up. Airlines and other big businesses are so desperate to see the FAA bill and the associated air-traffic-control reforms pass that even the US Chamber of Commerce, America's top big-business lobby, has urged Republicans to give ground on the union issue. (The matter is this: the Obama administration had changed the second part of the two-step process whereby a union gets recognised as the legal representative of a group of workers. It said that a majority of those voting, not a majority of all workers, would suffice. Republicans unhappy at this development were mollified by a change to the first part of the process, which raised the percentage of workers required to express interest in forming a union from 35% to 50%, and by a tweak to the run-off election rules.) 

    Though the major point of contention in the struggle over the FAA bill related to labour issues, there were also other battles—including several that could dramatically impact business travellers. Will the government continue to subsidise rural air service to the tune of $200m per year? (If not, flights to small towns and remote areas could get a lot pricier or cease altogether.) Will new rules make it harder to ship lithium batteries by air? (If Congress makes it harder to ship batteries in bulk, your gadgets and their batteries could cost more.)

    Even individual airports are directly affected by the rules in these sorts of bills. One of the last remaining controversies in the bill, according to a Bloomberg report, is over take-off and landing slots at Ronald Reagan National (DCA), Washington's most convenient airport. Will lawmakers relax restrictions on how far flights can travel after taking off from DCA, or offer more slots for long-haul flights? If so, which airlines will benefit? If Reagan offered more than one flight to Los Angeles, it might cut into Dulles airport's long-haul business. You can imagine how Virginia politicians and Dulles-dependent airlines would feel about that—which is probably why it's still a controversy. And that's how the sausage is made, folks.

  • Entering America

    Obama moves to simplify visa process

    Jan 21st 2012, 19:19 by N.B. | WASHINGTON, D.C.

    ON THURSDAY, the White House announced that President Barack Obama had signed a new executive order aimed at promoting travel to America by easing the visa process and reducing paperwork. This is good news. Gulliver has written before about the need for visa reform, which is a really simple, largely non-controversial way that America could boost its economy. Unfortunately, Congress, sclerotic and divided as usual, was unable to act—and Mr Obama had to do what he could on his own. 

    Mr Obama's executive order will reduce visa waiting times for Chinese and Brazilian travellers, move towards eliminating visas entirely for visitors from Taiwan, and take the Global Entry programme, which speeds pre-screened travellers through customs, out of the trial phase and make it permanent. Easing visa requirements for travellers from Brazil and China was one of the major planks of the US Travel Association's "Ready for Takeoff" visa reform campaign, so this should be counted as a victory for the trade group, which represents a wide swathe of businesses that benefit from tourism. The group posted a swoony press release on its website praising the White House move. "The steps the president took today are significant and will boost travel to and within the United States," said Roger Dow, the group's president. "His timing could not be better."

    But there's still a lot more that could be done on visa reform, and some of it can only be done by Congress. The big thing, of course, is hiring more people to process visas. The administration has called for a 40% increase in capacity on that front, but realistically, that will either require more funding or shifting money from some other priority. It seems unlikely that Congress will act to spend even the smallest amount of new money on something like this during an election year. Mr Obama also wants 80% of non-immigrant visa applicants interviewed "within three weeks of application". That's a great goal, but don't be surprised if the State Department and Department of Homeland Security fall short. The president is a powerful man, but even he cannot fix America's slow, clunky visa system with a wave of his hand. That will take money—and more money for visa processing and visitor screening just isn't on the cards right now.

  • Heathrow

    Olympic rush

    Jan 20th 2012, 17:30 by A.B.

    CLAUSTROPHOBES should avoid travelling through Heathrow airport on August 13th this year, though sports fans might revel in the experience. The day after the closing ceremony of the London Olympics is expected to be the busiest in the airport’s history, thanks to the number of athletes, officials and media representatives heading home.

    Six months before the games start, Heathrow has published a report detailing the state of its Olympic and Paralympic preparations. 138,000 passengers are expected to depart on August 13th, 45% more than on a normal day, taking 203,000 bags (35% more than normal) with them, many bulging with canoes, pistols and poles. Heathrow is recruiting 1,000 volunteers to help ensure its smooth operation during the Olympic rush, but Terminal 3 in particular is predicted to be stretched to bursting on August 13th.

    Considering your own travel plans, you might think that standing behind Usain Bolt or Yelena Isinbayeva is not the worst way to pass time in a check-in or security queue. But that won't, sadly, be happening. BAA, which owns Heathrow, expects to spend £20m ($31m) on its Olympic plans, and that includes the construction of a dedicated, temporary games terminal for athletes' and officials' use on August 13th-15th. Most athletes will check in and drop-off baggage at the Olympic Village, before being bused to the temporary terminal to deal with any remaining baggage issues and security. But they can't be kept away from the unsporty hordes forever, so you might spot a medal or two in the crammed departure lounges and duty-free shops.

    I just wonder whether the numbers will be quite as high as Heathrow predicts. One way to ensure August 13th will not be the busiest day in the airport’s history is to tell everyone months in advance that it will be. Travellers who might otherwise have flown on that day—and whose journeys would have been included in the calculations—will then choose to travel at other times. Problem (partially) solved.

  • High-speed rail in Britain

    The importance of doing something

    Jan 20th 2012, 15:47 by A.B.

    A COLLEAGUE has written on our Which MBA? blog about the plans for a second high-speed rail track in Britain. One management teacher theorises about why the country would be better off spending £34 billion ($53 billion) on putting a woman on the moon instead.

  • British Airways

    Jingle belles

    Jan 19th 2012, 15:24 by A.B.

    IF YOU'VE enjoyed the music from British Airways' familiar adverts (you would struggle not to) and wondered where it comes from, you should know that it is "Sous le dôme épais", AKA the "flower duet" from Delibes's opera, "Lakmé"—here it is in full. But if you've wondered what it really means, this clip explains all.

  • Uncomfortable travels

    Too big to fly?

    Jan 18th 2012, 14:37 by A.H. | TORONTO

    YOU'RE in luck if you need extra room on a Canadian airline because you're obese. Federal regulations require airlines to treat such passengers as disabled and provide a second seat at no additional charge. But you're out of luck if you're too tall, as Malcolm Johnson from Edmonton has discovered. The Canadian Transportation Agency recently dismissed Mr Johnson's complaint that Air Canada was discriminating against him in forcing him to pay extra for a seat that could accommodate his 201cm (6'7) frame. The reason: Mr Johnson did not prove that his height was a disability. Though his doctor wrote a note supporting his case, pointing out that Mr Johnson was at risk of developing deep vein thrombosis if forced to sit in an economy-class seat, the agency decided that “a risk of developing a medical condition does not equate with having a condition.”

    Fees for preferred seating vary by airline, length of flight, type of fare purchased and frequent-flyer status. Mr Johnson says they add up to an extra $200 when he travels from Edmonton to Paris twice a year. An Air Canada spokesperson pointed out that the fees start at $16 per one-way trip, though this is of dubious relevance because that price applies to flights under 350 miles within Canada and the US.

    Mr Johnson's troubles are akin to those experienced by Brooks Anderson on a Spirit Airlines flight from Chicago to Fort Myers, Florida, in 2010. In that case, Mr Anderson, also 201cm tall, spent most of the flight standing up, “dodging people going to and from the bathroom.”

    One fellow tall person said in support of Mr Johnson: “Perhaps us tall guys should all stand and be counted.” Just don't do it on take-off.

  • Japan

    Gulag for gaijin

    Jan 18th 2012, 14:11 by A.B.

    A COLLEAGUE writing on the Banyan blog has put up an interesting story about a Canadian living in Japan who was deported as he tried to re-enter Japan after a short trip abroad. The circumstances of his deportation sound horrendous:

    Officials falsified statements that he gave them and then insisted that he sign the erroneous testimony, he says. Guards tried to extort money from him and at one point even threatened to shoot him, he says—unless he purchased a wildly expensive ticket for his own deportation, including an overt kick-back for his tormentors. Once he was separated from his belongings, money was stolen from his wallet and other items removed from his baggage (as he has reported to the Tokyo police).

    Read the whole post.

  • In-flight announcements

    The wrong warning

    Jan 17th 2012, 15:48 by A.B.

    THERE was terror for passengers and embarrassment for British Airways after an accidental announcement during a flight from Miami to London on January 14th. Some three hours into the journey, as the plane soared over the Atlantic, a message was broadcast over the intercom: "This is an emergency, we will shortly be making an emergency landing on water."

    Cue panic. Two passengers told the Telegraph, "We looked at each other and figured we were both about to die. Families with children were distraught and people were in tears. It was very distressing." And it was not until 30 seconds later that flight attendants told passengers that the warning was a mistake.

    This wasn't a mechanical malfunction: British Airways says the recorded message was "played in error". I'd say that's a serious mistake. The "you're all going to die" message (because with a landing on water, Miracle on the Hudson notwithstanding, that's what we're talking about) should not somehow be playable in error. BA's technicians, cockpit designers, etc, need to ensure this can't happen again.

  • Regular travellers

    What kind of a road warrior are you?

    Jan 16th 2012, 17:34 by A.B.

    IF you're the kind of person who could navigate through the local airport wearing a blindfold, there's a quiz over on the CNBC website that you should try. It will tell you, in massively formal terms of course, how tough a road warrior you are.

  • The Jet Business

    The business of jets

    Jan 16th 2012, 14:42 by A.B.

    IF you're a business-jet broker, how do you tempt buyers to your office? Steve Varsano, an industry veteran, has put a lot of money into the answer. He has located his new company, the Jet Business, on a highly visible site in one of London’s more moneyed areas, and built a full-size mock-up of the interior of an Airbus A319 in one of the reception rooms.

    The Jet Business is an interesting enterprise. Styling itself "the world's first corporate aviation showroom for business jet aircraft", it's a brokerage that links purchasers to planes (mainly second-hand). But it throws a lot more technology at the process than has traditionally been the case. Sitting in front of a 26-ft (8-metre) display screen, Mr Varsano uses a database of the world’s business jets to help clients decide on the craft they need and to work out their availability. The giant screen allows the oligarchs and the potentates to compare, in life size, the cabin dimensions of different planes, look at the seating, and drool over the detailing of the walnut veneers. That’s something you can’t do with PDFs sent by the manufacturer.

    The investment in this office is an indication of Mr Varsano's faith in the health of the top end of the business-jet market as the world economy negotiates choppy waters. He admits that the financial crisis has had an effect lower down the market, where people are looking to spend $1m on a jet. But for Mr Varsano there is no recession. He focuses his attention on three types of jet—the super-mid size, the large-cabin and the ultra-long-range—and would-be purchasers of $30m planes are not becoming rarer. “There’s always somebody making money,” says Mr Varsano. “I follow the money.”

    Changes to the world economy have had an obvious effect on the nationalities of private-jet buyers. A market that as recently as 15 years ago was dominated by American clients now reflects the rise of the BRICs. Last year 35% of sales of ultra-long-range business jets went to buyers from mainland China.

    But wherever the jet-buyers are from, they all eventually come to London. Mr Varsano says the city was an obvious place for him to set up his business because so many rich people pass through. “They have to come through Knightsbridge and they look through the window [of the showroom],” he says. What else is there to do when you're sitting in a chauffeur-driven Bentley waiting for the lights to change on Hyde Park Corner?

  • Amtrak

    The wrong question about Amtrak's profitability

    Jan 16th 2012, 10:27 by N.B. | WASHINGTON, D.C.

    EARLIER this month, the New York Times's "Freakonomics" blog asked a panel of experts whether Amtrak, America's government-run passenger rail company, could "ever be profitable". The answers ranged from the supportive (Amtrak's problems are many, but they're not all the company's own fault) to the critical (it's time to start breaking up the beast). One astute respondent, journalist Nate Berg, noted that the company had already answered Freakonomics's question: "Amtrak will never be profitable," David Gunn, Amtrak's president, told a Senate committee in 2002.

    Liberal commentators, however, seemed put off by Freakonomics's framing of the issue. "'Can Amtrak Ever Be Profitable?' is a dumb question & predictably leads to a dumb debate," Grist's Dave Roberts wrote on Twitter. The problem, of course, is that Amtrak's competition—interstate highways and domestic airlines—isn't "profitable", either. Intercity travel of any kind has enormous fixed costs—purchasing or seizing land for airports or rights-of-way; building highways and railroad tracks; buying, fuelling and operating planes and trains. That's why governments have traditionally played a large role in air, rail and road travel.

    Here are some better questions: what's the right balance of public- and private-sector involvement in these sorts of enterprises? How much, if anything, should governments continue to invest in air, rail and road infrastructure? If the government is going to invest in infrastructure (rather than simply let the market decide), what is the right balance of spending between those different modes of travel? And how much should the environmental consequences of various modes of travel be taken into account when making these decisions?

    Freakonomics's panellists, to their credit, explored some of these questions in their answers. But framing the discussion around a weird notion of "profitability" isn't particularly helpful. Here's a good rule of thumb: if a government entity's profitability is the main thing you're worried about, it probably shouldn't be a government entity. Nobody worries about the military or the courts being "profitable". It's probably not the right question about Amtrak, either.

  • American Airlines' bankruptcy

    Seeking the best partner for AA

    Jan 15th 2012, 18:56 by N.B. | WASHINGTON, D.C.

    BOTH Delta Air Lines and US Airways have expressed interest in possibly acquiring the bankrupt American Airlines, according to multiple reports this week. Hunter Keay, an analyst with Wolfe Trahan & Co, told Bloomberg he expects the odds of American being an independent company post-bankruptcy are "20 percent, at most." So if a merger looks inevitable, which suitor would best for business travellers?

    First, a few things to keep in mind. As my colleague noted in November, American has some debt problems—before it entered Chapter 11 in November, it had $30 billion worth of obligations against around $4 billion in cash. And the airline industry isn't exactly a great business. Note one of my favourite statistics ever, via Slate business correspondent Matt Yglesias: "Cumulative earnings across the history of American passenger aviation are negative $33 billion." That doesn't mean that individual airlines haven't made money, or that the industry couldn't be profitable in the future—indeed, the progress of industry consolidation and deregulation offers some hopeful signs for both travellers and the industry itself. But it's hard to know which way that's going.

    Mr Yglesias argues for a "patriotic merger" between American and US Airways in order to give America three very large global airlines (Delta, United and the new US Air/American entity), with one big airline in each of the three major airline alliances. (Mr Yglesias wants the merged airline to join the American-led oneworld alliance, which sounds like a good idea but is far from a forgone conclusion. An American-less oneworld would be under enormous pressure from Star Alliance and SkyTeam, and could conceivably lose more members or fold altogether—something that should probably be avoided.)

    Since I'm generally bullish on the airline alliances (and competition between them), I'd tend to think the US Airways/oneworld route would be better for competition, and thus better for travellers. But the real question is what American government regulators and anti-trust authorities think about the whole idea. A Delta-American merger would produce a company that would control a huge chunk of domestic market—29.6%, double the share of its next biggest competitor, Southwest Airlines.

    Another issue is whether Delta's supposed interest in acquiring American is serious or simply an effort to cause problems for US Airways and oneworld. It's hard to imagine that Delta's executives aren't aware of the regulatory problems a merger with American might face. Whatever happens, this struggle will be interesting to watch.

  • Micro hotels

    Rooms without a view

    Jan 12th 2012, 18:05 by A.B.

    A PIECE in this week's Economist looks at developments in Britain's budget-hotel sector. In particular, it examines plans being made for the Trocadero, a Victorian building in the heart of the West End, where a new hotel will have 600 identical windowless rooms of ten square metres each.

    The niche looks promising. Budget hotels in London had an occupation rate of 84% in 2010, better than their grander equivalents in the capital and the 69% occupancy in the rest of England, according to Miles Quest of the British Hospitality Association (BHA). Yet Britain still has proportionately fewer low-cost hotels than many other countries; budget brands make up a quarter of the French market, for example, and a third of the American one, reckons the BHA.

    Read the whole article.

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