Tag Archives: ticket prices

790 Airline Ticket Price

The components of an airline ticket price, Boeing’s contract negotiations with the International Association of Machinists, the NTSB’s frustration with Boeing’s cooperation, American Airlines’ order of 260 planes, an Alaska Airlines flight with an open cargo door, pilots falling asleep mid-flight, an Alaska Supreme Court ruling on aircraft surveillance, and a “technical event” involving a LATAM flight.

Aviation News

UK Air Passenger Duty Increasing, Premium Cabins Hit Hardest

The passenger tax in the UK is called the Air Passenger Duty (APD) and it is just one part of an airline ticket price. One Mile at a Time calls the APD “the highest passenger tax on air travel anywhere in the world.” As of April 1, 2024, the APD is going up:

  • The domestic economy APD will increase by £0.50, from £6.50 to £7 (~$9)
  • The domestic premium APD will increase by £1, from £13 to £14 (~$18)
  • The long haul economy APD will increase by £4, from £84 to £88 (~$112)
  • The long haul premium APD will increase by £9, from £185 to £194 (~$246)
  • The ultra long haul economy APD will increase by £1, from £91 to £92 (~$117)
  • The ultra long haul premium APD will increase by £2, from £200 to £202 (~$257)

Additional increases are planned for 2025.

An airline ticket price is made up of the base fare and carrier-imposed surcharges. Government taxes and fees include an excise tax (a 7.5% tax imposed by the U.S. government on domestic flights), flight segment tax (a $4 fee per flight segment), a passenger facility charge (an airport fee determined by the U.S. airport from which you depart), the September 11 security fee ($5.60 per one-way trip to offset security costs), Air Passenger Duty (APD) (for flights departing from the U.K.), and other country-specific charges.

As watershed contract talks with Boeing open, Machinists think big

International Association of Machinists logo.

Boeing and the International Association of Machinists are negotiating a new labor contract. The union’s District 751 represents more than 32,000 Boeing Machinists. The union says they’ll ask for a wage increase of over 40% over the next three years and the restoration of its traditional pension. Also, a commitment to build the next new Boeing airplane in Seattle, more quality inspectors, more union input into quality control, and a shift in the corporate culture to one that doesn’t alienate employees. IAM president Jon Holden said the union “must stand up and save this company from itself.” A mass meeting and strike authorization vote are scheduled for mid-July. The contract expires on September 12, 2024.

NTSB Chair Not Pleased With Boeing’s Cooperation On Door Plug Probe

Regarding the investigation into the Alaska Airlines door plug incident, NTSB chair Jennifer Homendy recently testified at a Senate hearing that “Boeing has not provided us with the documents and information that we have requested numerous times over the past few months.” At the hearing, Homendy complained that Boeing was not cooperating as the NTSB attempted to interview team members.

NTSB Chair: Alaska 1282 investigation is like ‘peeling an onion’

In an exclusive interview with The Air Current, Jennifer Homendy said the NTSB is planning a public investigative hearing into the January 5 accident aboard Alaska Airlines 1282. Homendy told TAC that the hearing will occur towards the end of the summer.

American Airlines to buy 260 new planes from Boeing, Airbus and Embraer to meet growing demand

American Airlines ordered 260 new aircraft and placed options for up to 193 more planes. The orders include 85 Boeing 737 Max 10s, 85 A321neo planes from Airbus, and 90 E175 aircraft from Embraer.

Alaska Airlines flight carrying pets arrives with cargo door open as carrier and Boeing face $1B lawsuit

Alaska Airlines logo

An Alaska Airlines flight from Los Cabos, Mexico arrived at Portland, Oregon with its cargo door partly open. None of the pets in the cargo hold were injured. Alaska Airlines told KOIN in a statement that “there was no indication to the crew that the door was unsealed during [last Friday’s] flight and all indications point to the door partially opening after landing.” Also, “Our maintenance teams inspected the aircraft, replaced a spring in the door, tested the door, and reentered it into service.”

A plane was flying with 159 onboard. Then both pilots fell asleep

A preliminary report by Indonesia’s National Transportation Safety Committee says both pilots of a PT Batik Air Indonesia flight fell asleep at about the same time for around 28 minutes. The plane was carrying 153 passengers and four crew members headed to Jakarta on a two-hour and 35-minute flight.

Officers need warrants to use aircraft, zoom lenses to surveil areas around homes, Alaska court says

According to the Alaska Supreme Court, law enforcement officers cannot use aircraft with binoculars or cameras with zoom lenses to surveil a person’s home, unless they obtain a warrant. This stems from a 2012 case where Alaska State Troopers flew past a property to verify a tip that marijuana was being grown there. The officers used a camera and zoom lens to take photos of the property. Based on what they saw, a search warrant was obtained.

At least 50 hurt as LATAM’s Boeing 787 to Auckland ‘just dropped’ mid-flight

A Boeing 787 operated by LATAM Airlines experienced what the airline called a “technical event” mid-flight from Sydney to Auckland. Reportedly, the plane abruptly dropped and at least 50 people were hurt. Ten passengers and three cabin crew members were taken to a hospital. One person is in serious condition. The 787-9 Dreamliner (registered CC-BGG) operated as flight LA800 between Sydney, Australia, and Auckland, New Zealand.

A passenger told the BBC “The plane, unannounced, just dropped. I mean it dropped unlike anything I’ve ever experienced on any kind of minor turbulence, and people were thrown out of their seats, hit the top of the roof of the plane, throwing down the aisles. Some of the roof panels were broken from people being thrown up and knocking through the plastic roof panels in the aisle ways. And there was blood coming from several people’s heads.”

Mentioned

Understanding The UK Air Passenger Duty (APD)

FlightSimExpo

This new Airbus air taxi has a 50-mile range and is quieter than a hairdryer

XPeng’s AeroHT flexes its eVTOL expertise, taking its X2 flying car to the skies above Guangzhou

Aviation Careers Podcast

Hosts this Episode

Max Flight, Rob Mark, Max Trescott, David Vanderhoof, and our Main(e) Man Micah.

731 Bits and Pieces 30

We speak with the President and CFO of DG Fuels LLC about producing Sustainable Aviation Fuel (SAF), and the Co-Founder and Chief AI at Fetcherr about continuous pricing models for airlines. We also take a look back at 2022.

Sustainable Aviation Fuel (SAF)

Christopher J. Chaput is the President of DG Fuels, LLC. He has over 23 years of experience as an executive, an investment banker, a restructuring advisor and investor, primarily in the aviation sector.

Christopher J. Chaput, the President of DG Fuels, LLC.
Christopher J. Chaput

DG Fuels is developing a Sustainable Aviation Fuel (SAF) production facility at Loring Commerce Centre in Limestone, Maine, the former Loring Air Force Base. Chris explains SAF and biofuels and describes how the DG Fuels process uses waste timber products and stranded electricity to make SAF efficiently and sustainably. An existing pipeline to the coast will facilitate the transport of the SAF to Boston and New York markets.

Prior to DG Fuels, Chris was a partner in and co-founder of RPK Capital Management, investing in commercial aircraft and other aviation-related assets. Chris was a partner and head of the Structured Finance Group at the Seabury Group where he arranged secured financings of aircraft and other assets. Chris was a senior member of the advisory team that represented US Airways in its merger with America West Airlines and that restructured US Airways, Air Canada, and Northwest Airlines in bankruptcy. Prior to that he structured and executed public and private aircraft-backed secured bonds at Morgan Stanley. Early in his career, Chris was the Managing Director-Corporate Finance at Northwest Airlines.

Chris earned his B.A. from Creighton University, magna cum laude, and his J.D., cum laude, from the University of Minnesota Law School, where he also taught Business Planning for two years as an adjunct professor.

Continuous pricing models for airlines

Dr. Uri Yerushalmi, the co-founder and chief AI officer at Fetcher.
Dr. Uri Yerushalmi

Dr. Uri Yerushalmi is the co-founder and chief AI officer at Fetcherr, an Israeli tech company that developed a proprietary AI-powered engine that predicts demand and enables continuous pricing for the airline industry. The company was founded in 2019 by experts rooted in deep learning, algorithmic trading, e-commerce, and the digitization of legacy architecture.

Uri explains the continuous pricing approach and how that can solve airline challenges and maximize revenue. Airlines typically employ dynamic pricing where the prices are bucketed into certain levels and change infrequently. Under a continuous pricing model, the price can be set at any level. Dynamic pricing is all that was allowed by the technology in the 80s. Now, however, deep learning and reinforcement learning technology can predict the behavior of the market by considering factors such as travel origins, destinations, number of stops, days of advance purchase, stay days, capacity (load factor), seasonality, and time of day.

Old pricing models are inefficient and utilize “middlemen” that introduce an added cost. Uri tells us that the efficiency of continuous pricing models negates the need for middlemen and creates a revenue uplift for the airlines.

Fetcherr technology is running live now with low-cost Azul Airlines. The company is onboarding a large traditional global airline and exploring advanced functionality with another major airline.

2022 I Can Hardly Remember

Our Main(e) Man Micah brings us his year-in-review piece. He originally thought 2022 was pretty quiet for him aviation-wise, but when he reflected on it Micah realized that quite a lot actually happened. 2022 was very much an #AvGeek year for Micah.

John Bush VSF50 VisionJet
Micah in the 787 headed for the UK
Dartmouth-Hitchcock Helicopter
Friends at Spurwink
More friends at Spurwink
Sunday Roast at The Greyhound Inn
Micah and Lt Hardinger

Hosts this Episode

Max Flight, our Main(e) Man Micah, and Brian Coleman.

695 Sustainable Aviation Fuel

Sustainable aviation fuel (SAF) and how it is being made available, how you can save on airline tickets, an F-35 shoots down a drone, and the eighth anniversary of the loss of flight MH370.

Sustainable Aviation Fuel

Richard Thacker, Atlantic Aviation
Richard Thacker

Richard Thacker is the Director of Strategy and Operations at Atlantic Aviation. Rich has been with Atlantic for more than 30 years and has been a leading voice for the company, and broadly in the aviation industry on increasing sustainability through education and outreach.

Atlantic operates one of the largest FBO networks in the U.S. and they provide a full suite of services to the private aviation sector. We asked Rich to come on the show and talk about sustainable aviation fuel (SAF) because Atlantic is making it available at some airports.

SAF is jet fuel and no change is required to the aircraft or ground support infrastructure. It can be freely co-mingled with JET-A. Rich explains why now is the time for sustainable aviation fuel. We look at sources, availability, and the cost of SAF.

There are two main producers of SAF at this time: Neste and World Energy. Most SAF comes from Neste, a supplier of renewable diesel and sustainable aviation fuel, through Avfuel. (See Neste’s role in sustainable aviation and Sustainable Aviation Fuel: Now Offering Neste MY SAF). World Fuel Services gets SAF through an agreement with World Energy.

Atlantic is providing SAF at its Aspen and Los Angeles locations but has plans for wider distribution. Rich notes that since SAF availability is primarily on the coast, road transportation is required to reach inland airports. For its Aspen facility, Atlantic uses renewable diesel in the tanker trucks since burning fossil fuel to deliver sustainable aviation fuel wouldn’t make sense.

Rich explains the “Book and Claim” process for purchasing fuel where SAF isn’t available. “Green credits” are purchased equal to the SAF premium and the SAF is consumed where it is available.

Atlantic is taking other measures to reduce carbon footprint, including switching to LED lighting and electrifying ground support equipment. For more on the classification of emissions, see the article What are scope 1, 2, and 3 emissions?

Scott’s Cheap Flights

Scott Keyes, Scott's Cheap Flights.
Scott Keyes

Brian Coleman interviewed Scott Keyes, the founder and chief flight expert from Scott’s Cheap Flights, a service that notifies subscribers about great airline deals from their home airport. We learn how a hobby turned into a business and Scott provides some good context for the current state of airline fares. Free and paid membership options are available.

Scott’s Cheap Flights serves nearly 2 million members and has a distributed team of more than fifty travel aficionados. Scott authored a bestselling book divulging some of the secrets used to find amazing deals for members, Take More Vacations: How to Search Better, Book Better Cheaper, and Travel the World.

Through April 30, 2022, Scott is offering Airplane Geeks listeners a 25% discount on a Premium membership. Use the discount code GEEKS.

Israeli News Desk

Eyal relates that an Israeli Defense Forces (IDF) spokesman released an announcement on March 1, 2022, about a shootdown of two Iranian UAVs in June 2021 carrying weapons destined for HAMAS. The interception and shootdown had been made by an Israeli F-35A, the first operational and actual kill for the F-35 family worldwide.

MH370

Rob Coates marks the eighth anniversary of the disappearance of flight MH 370. As of this date, the plane has still not been located.

American Helicopter Museum

Airplane Geeks listeners can enjoy a one-year individual membership at a 50% discount. For $25.00 (normally $50.00) you get:

  • Unlimited admission to the Museum for one year.
  • Two One-Day Guest Passes.
  • Admission to FamilyFest and SantaFest.
  • Invitations to Member Receptions.
  • 10% discount on gift shop purchases.

The offer is good through May 31, 2022, at this link.

Hosts this Episode

Max Flight, Rob Mark, Max Trescott, and Brian Coleman, with contributions from Eyal Shay and Rob Coates.

Episode 121 – Jason is Wired on Aviation

Jason Paur joins as guest. He’s a contributing writer for Wired.com where Jason posts to the Autopia blog. Find Jason on Twitter as @jasonpaur. We talk about the week’s aviation news and some of Jason’s recent articles, including Exclusive: We Fly An Electric Airplane and SpaceShipTwo First Glide Flight Details From The Pilot.

The week’s aviation news:

Mentions:

Also see Steve and Grant’s Australia Desk archive and their Flight Time Radio segments.

Follow the @AirplaneGeeks on Twitter and on Facebook, send us email at thegeeks@airplanegeeks.com, or leave a message on our listener line: (361) GEEKS01.

Opening and closing music is provided by Brother Love from the Album Of The Year CD. You can find his great music at http://www.brotherloverocks.com/.