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Norwegian, the budget airline famous for offering huge price cuts on Transatlantic flights, is adding another huge cut price deal to its growing stable of bargains.
British travellers can now get all the way from London to the Caribbean with Norwegian, and potentially pay less than £200 ($303) to do so.
That's because the carrier has announced that from this week, it is selling flights from New York, Boston, and Washington to the islands of Martinique and Guadeloupe for as little as £34 ($51).
Norwegian currently offers 14 flights to the US from London, and travellers can get to New York for just £149 ($225) on their cheapest flight. A quick connection in New York onto a £34 ($51) flight to the Caribbean would mean a one-way cost of £183 ($276).
The move could provide big competition to British Airways and Virgin Atlantic, both of whom fly to the Caribbean from London Gatwick, the same airport that Norwegian operates from in the UK.
Norwegian's prices massively undercut both its more established rivals, who generally offer flights for more than £500 ($756) for a one-way trip to Caribbean islands like Jamaica. A quick online search revealed that on Friday morning, the cheapest flight from the UK to the Caribbean right now is £538 ($814).
The new flights are part of plans from Norwegian to steal market share in long-haul flights from well-known competitors. In October, Norwegian's CEO Bjorn Kjos told Business Insider that he is aiming to attract business travellers looking to save money with the company's transatlantic flights.
Speaking about the announcement on Friday, Kjos said: “For the first time in over 20 years there are now direct flights between the US east coast and the stunning holiday islands of Martinique and Guadeloupe.
“This is great news for UK passengers looking for a low-cost sun and city break. UK travellers can fly with Norwegian to New York, spend a few days in the Big Apple and then fly on with us to the Caribbean. This gives our customers new and exciting travel options.”
For the time being, holidaymakers from the UK will only be able to take advantage of the deal by flying to New York, with three flights per week from the city to both Guadeloupe and Martinique. However, Kjos told Business Insider that he hopes to offer flights from London to Boston, and Washington DC within the next year.
"We're planning to keep expanding in the US and we are launching our low-cost route to Boston in May next year."
Kjos also added that the current route to Washington is "heavily underserved" and describes the cost of flights to the US capital as "high".
Join the conversation about this story »
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Norwegian, the budget airline famous for offering huge price cuts on Transatlantic flights, is adding another huge cut price deal to its growing stable of bargains.
British travellers can now get all the way from London to the Caribbean with Norwegian, and potentially pay less than £200 ($303) to do so.
That's because the carrier has announced that from this week, it is selling flights from New York, Boston, and Washington to the islands of Martinique and Guadeloupe for as little as £34 ($51).
Norwegian currently offers 14 flights to the US from London, and travellers can get to New York for just £149 ($225) on their cheapest flight. A quick connection in New York onto a £34 ($51) flight to the Caribbean would mean a one-way cost of £183 ($276).
The move could provide big competition to British Airways and Virgin Atlantic, both of whom fly to the Caribbean from London Gatwick, the same airport that Norwegian operates from in the UK.
Norwegian's prices massively undercut both its more established rivals, who generally offer flights for more than £500 ($756) for a one-way trip to Caribbean islands like Jamaica. A quick online search revealed that on Friday morning, the cheapest flight from the UK to the Caribbean right now is £538 ($814).
The new flights are part of plans from Norwegian to steal market share in long-haul flights from well-known competitors. In October, Norwegian's CEO Bjorn Kjos told Business Insider that he is aiming to attract business travellers looking to save money with the company's transatlantic flights.
Speaking about the announcement on Friday, Kjos said: “For the first time in over 20 years there are now direct flights between the US east coast and the stunning holiday islands of Martinique and Guadeloupe.
“This is great news for UK passengers looking for a low-cost sun and city break. UK travellers can fly with Norwegian to New York, spend a few days in the Big Apple and then fly on with us to the Caribbean. This gives our customers new and exciting travel options.”
For the time being, holidaymakers from the UK will only be able to take advantage of the deal by flying to New York, with three flights per week from the city to both Guadeloupe and Martinique. However, Kjos told Business Insider that he hopes to offer flights from London to Boston, and Washington DC within the next year.
"We're planning to keep expanding in the US and we are launching our low-cost route to Boston in May next year."
Kjos also added that the current route to Washington is "heavily underserved" and describes the cost of flights to the US capital as "high".
Join the conversation about this story »
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Etihad Airways has grown from tiny upstart to one of the world's most respected international airlines — all in a little more than a decade.
At the helm of the Abu Dhabi-based carrier for most of that time has been its chief executive, James Hogan.
During a recent trip to New York, Hogan sat down with Business Insider for an interview to discuss everything from opportunities in China and Africa to the merits of owning equity stakes in carriers all over the world.
And he responded to US rivals, who have accused Etihad, along with its fellow Middle Eastern airlines Emirates and Qatar, of fueling their rapid expansion, palatial terminals, and massive fleets with as much as $42 billion in government subsidies.
A coalition comprising of American, United, and Delta Air Lines have petitioned the US State Department to reevaluate the "Open Skies" agreements between the US and the Gulf States, which allow airlines to fly freely between the countries.
The veteran Australian airline executive — whose résumé includes executive experience at Gulf Air and British Midland — took the top job at Etihad in September 2006.
Since then, the carrier has grown its fleet to more than 120 Airbus and Boeing jets while its network has expanded to include 116 destinations in 68 countries.
Etihad's high-quality service, lavishly appointed aircraft, and explosive growth have earned the airline praise from consumer-aviation ratings groups as well as Air Transport World Magazine's 2016 Airline of Year Award.
Over the past few years, Etihad has spent billions of dollars to take major equity positions in more than half a dozen international airlines around the world, including Air Berlin in Germany, Jet Airways in India, Italy's flag carrier Alitalia, and Virgin Australia.
Etihad and its network of equity-partner airlines offer a combined fleet of more than 700 aircraft with flights to 580 destinations.
Here are a few takeaways from our interview:
While 2016 will be a strong year for Etihad, growth in Europe will be minimal, he said. According to Hogan, the international-airline business is difficult to predict for the same reason it's difficult to run an international airline.
"There are so many factors outside of your control," he said. "There's the economy which affects sales and fuel expenses, pandemics which can shut down a whole region of the world, to war which we have to navigate, to competition."
With that said, the company has a growth plan for the next five years.
"In our five-year plan, our growth is mainly in China and Africa," the Etihad CEO said. "We'd like to see more flights into West Africa, and the secondary cities in China are considerable."
But the company doesn't see much more expansion into the US.
"In the US, we are pretty much there, we have one, maybe two more cities to grow into. That's it," Hogan said. "We are happy with where we sit, frankly."
Although Etihad and its partner airlines already fly into China, Hogan would like to see his company tap into the country's burgeoning middle class.
"China, within our network group, is very important," he said. "The market's opening and people are traveling."
He said they are "well-educated with access to information and to destinations, are good consumers with money to spend, and want to have good service."
In 2013, Dubai-based Emirates launched service between Milan, Italy, and New York's JFK International Airport. But don't expect Etihad to join Emirates in its trans-Atlantic endeavors.
"We invested in Alitalia and they are our partner in Italy, as is Air Berlin in Germany," the CEO said. "We expect them to operate trans-Atlantic."
In addition, Air Serbia — in which Etihad holds a 49% stake — will operate five nonstop flights per week between Belgrade and New York starting in summer 2016.
But that doesn't mean Emirates won't have competition on its Milan-to-NYC route.
"Emirates can only operate out of Milan, and frankly, we'd prefer that route be dominated by Alitalia," Hogan said.
When asked about the accusations made by America's legacy carriers that Etihad's rise has been fueled by billions of dollars' worth of government subsidies, Hogan replied matter-of-factly.
"At the end of the day. We have a shareholder who placed equity in the airline who gave us loans to be repaid. That's what people do when they invest in the business," he said.
Etihad was created in 2003 by a royal decree from the Abu Dhabi government. The company's board of directors is comprised completely of members of the emirate's ruling family.
"Over the 11 years, we have created value, a great brand, connectivity, we have created value in frequent-flier, holiday, and cargo businesses. We are seen by others as running a good business, we have a clean sheet of paper. And I think the critics would be doing the same thing I'm doing if they were in my shoes."
"We've done nothing improper. We've created a great airline, with great service, created value, and the accounts are audited by one of the top accounting firms in the world," Hogan said. "I don't know what the problem is."
Furthermore, the Etihad CEO contends that much of the reason upstart airlines require so much initial capital is due to the size and strength of the major legacy carriers.
"The cost of entry into aviation is due to legacy carriers," Hogan said. "Legacy carriers dominate key hubs. In Europe, they were gifted infrastructure years ago when they were privatized."
The Airbus A380 Superjumbo is one of the most impressive yet controversial airliners to enter service. Etihad currently operates a fleet of five double-decker jets along with another five aircraft on order. Etihad's Superjumbo fleet is equipped with the airline's industry-leading 125-square-foot "Residence" first-class suite, complete with a living room, bedroom, shower, and private butler.
But when asked if Etihad will be ordering any more of the behemoth jets, Hogan's answer was a firm "No."
"No, we're done," Hogan said. "We are taking over 70 Boeing 787s, over 60 Airbus A350s, and we are the launch customer for the next generation Boeing 777. We just believe in two-engine technology — they are much more efficient."
The airline business is one that's fraught with risk. That's in addition to the complexities of running an operation with tens of thousands of employee spread around the world. So how does Etihad thrive in this environment?
"The most important factor for me is the culture of your company and that you have a culture where people want to win," Hogan said. "Safety is first, but they also want to win. So what does it mean to win?
"Winning is about meeting your guests' expectations for quality service, winning is about improving market share and revenue while becoming more efficient, and how we differentiate ourselves from the competition."
As a result, the airline boss emphasized the need for a good team of smart people to help manage the complexities while reaffirming the company's "winning" culture.
"That's what winning is all about: Safety, service, and making money," he said.
SEE ALSO: British Prime Minister David Cameron is getting his own 'Air Force One'
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NOW WATCH: Here's everything that happens in the cabin 15 minutes before you board your plane
Airbus on Wednesday filed a second patent for a plane that can fly from London to New York in less than one hour, Patent Yogi first reported.
The patent includes a huge rocket engine that would enable the jet to travel at more than four times the speed of sound, which means it could cross the Atlantic in less time that it takes to cross London on a bus.
Plans for a supersonic jet were first released by Airbus in July this year, but it looks as though the company has gone back to the drawing board to make improvements to their initial design. The two designs have clear differences.
Here's a graphic of the original July design, which looks very different to a traditional passenger jet:
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And this is what the new design looks like in the patent images. It's far more conventional:
The airplane is described by the company as "a space aircraft capable of taking off from the ground in the usual manner, reaching an altitude of at least a hundred kilometres, flying at a transsonic or even supersonic speed, and then landing in the usual manner of an aircraft."
The plane would have a huge rocket engine at the back of the body, with two turbojet engines on either side of it. The turbojets would fly the plane up to a certain altitude, before the rocket engine ignites, sending the plane vertically upwards to its final altitude.
At first ignition, the rocket engine would make a huge supersonic boom, creating enormous drag on the aircraft, which Airbus says it would counter this with anti-drag flaps.
When it released the original designs back in July, Airbus said that the hypersonic jet could have both civilian and military applications. In civilian trim, the craft could serve as private jet or as an airliner with room for 20 passengers. When used by the military, the jet could serve as transport for soldiers or as a reconnaissance plane.
Patent Yogi has released a great video showing just how Airbus' new design might look if it ever actually goes into production.
You can check out some clips from the video here:
Airbus, like many technology companies, files hundreds of patents a year to protect its intellectual property. It doesn't mean all of these ideas will become reality. Two weeks ago, for example, it patented a crazy new way of loading passengers onto planes.
The vast majority of patents never get off the drawing board, but the fact that the company has filed two separate patents for the same device suggests that it may seriously be considering trying to make the supersonic jet in the coming years.
The full patent filing can be viewed on Patent Yogi's website, or check out the site's full video below:
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Everyone knows there are winners and losers in any bear market, including the recent commodity rout. Low crude oil prices have definitely hurt explorers and producers. Airlines, on the other hand, appear to be thriving.
According to the International Air Transport Association (IATA), a global airlines trade group, the industry is set to post a collective $33 billion in net profits this year—a record—on fuel cost savings and stronger passenger flight demand.
Want to know how significant a record this is? In 2014, profits came in at $17.4 billion—about half of what they are today.
What’s more, profits are expected to be even larger next year.
World demand grew 6.7 percent from a year ago, the IATA says, and is estimated to rise a further 6.9 percent in 2016. And with oil likely to stay relatively low, the group forecasts that airlines will spend $135 billion on fuel in 2016, down nearly a quarter from $180 billion in 2015.
This, coupled with improved fuel efficiency, is expected to contribute toward the group ending next year with estimated total net profits of $36.3 billion.
You can see below that global airline stocks have soared in recent years, especially in response to flagging oil, airlines’ largest expense.
In the past, airlines were notorious for their inefficiency and tendency to destroy capital. These claims were probably exaggerated, especially by Warren Buffett, who has repeatedly decried the industry as a money-loser. What a lot of people don’t realize is that Buffett didn’t do as bad as he claimed.
Former US Airways CEO Ed Colodny explained in 2013 that after Buffett’s shares didn’t appreciate, he wrote down his investment and got out when he could.
“I think at the end of the day, he got all his dividends paid and his principal back,” Colodny said.
In any case, airlines are now going into their third year of the present secular bull market. These often last much longer. We believe this cycle is different, in that the U.S. airline industry could easily create $20 billion of free cash flow this year and next. Low fuel costs have been the cherry on top.
Back in August, the cover of Bloomberg Businessweek featured a whole gaggle of bears, which delighted bulls. (There’s an old belief that the market will soon do the exact opposite of what the press predicts.) Yet here we are four months out, and the commodities rout has only extended itself further.Indeed, 2015 was not kind to oil and other commodities, with many of them slumping to multiyear and, in some cases, multi-decade lows.
Crude oil is presently testing financial crisis support levels, making many investors wonder whether the bottom for black gold has been reached—or if more pain is to be expected.
There’s no shortage of analysts and experts right now sharing their (wildly divergent) predictions of where oil might be headed from here. Some are calling for $20 per barrel; others, such as legendary hedge fund manager T. Boone Pickens, $70 or more in the next six months.
We can’t say whether Pickens is right or wrong. It’s worth pointing out, though, that crude has pretty closely followed its five-year trading pattern, with 52-week lows reached in late November, early December. The short-term trend shows oil rallying sharply starting in January, according to Moore Research analysis.
Here’s another way of looking at it. The following heat map shows that, in the last five years, the oil price historically popped in February after months of losses. What this means is that January might be a good time to buy.
The oscillator below confirms that. Right now crude is down 1.2 standard deviations—already signaling a buy, but it might have further to fall, based on past incidences.
One of the more balanced perspectives comes from energy strategist Dr. Kent Moors, who tempers his optimism with a dose of reality:
"We are not racing back to $100 a barrel oil. Absent the outlier of a geopolitical event that impacts supply, more subdued rises are in order. But we certainly do not need triple-digit oil to make some nice investment returns, especially in a sector that has been so oversold."
I agree. I’m not interested in adding my own forecast to the ever-lengthening list so much as I am in finding ways to make money at current prices.
As are other investors. Based on the most searched-for trends on ETFdb.com right now, you can clearly see what’s on their minds.
One of the main reasons why prices are so depressed, of course, is that the world is awash in the stuff. The Organization of Petroleum Exporting Countries (OPEC), responsible for about 40 percent of global supply, just had its most productive month since 2012, pumping 31.7 million barrels in November. That’s 1.7 million barrels over its “official” production ceiling.
Crude slipped below $37 per barrel on the news, a seven-year low, which is about as low as prices can go for most American companies to stay profitable. (As of this writing, WTI crude sits at $35.20, Brent at $36.83.)
As expected, OPEC announced after its last meeting that it would keep oil production levels the same in its bid to force higher-cost producers (re: American frackers) to trim their own operations. Solidarity among its members has weakened further, however, as it becomes clearer and clearer to them that they underestimated the resilience of American oil producers.
Five OPEC members—Venezuela, Nigeria, Libya, Iran and Ecuador—are now in open opposition to the Saudi policy of unchanged production. That the cartel as a whole exceeded its production ceiling last month suggests that each member-nation is making its own rules up anyway, regardless of what was decided.
It’s estimated that OPEC is already pumping about 900,000 barrels a day more than is needed next year. And with international sanctions against Iran about to be lifted—in exchange for an agreement to halt its nuclear program—the country has promised to increase its own production from 3.3 million barrels a day to as many as 4 million barrels a day by the end of 2016.
Venezuela in particular is in deep turmoil. Low oil prices have battered its currency and left its economy in tatters, with food shortages worsening every day. The International Monetary Fund (IMF) expects the South American country—which has the largest proven oil reserves in the world—to contract 10 percent this year and has declared it the worst-performing economy in the world right now.
In the recent parliamentary elections, rightfully fed-up Venezuelans responded by ousting members of Hugo Chavez’s United Socialist Party of Venezuela (PSUV), giving the opposition party, the more-centrist Democratic Unity Roundtable (MUD), a supermajority that could challenge President Nicolás Maduro.
This countrywide rejection of failed, far-left leadership is an encouraging sign that Latin America’s political ideology is finally shifting away from European-style socialist economic models of no growth. We’ve seen South American countries tax away growth and impose envy policies on the financial sector. Mining and oil executives have seen their cash flow confiscated by value-added taxes, leading to drops in capex and job creation.
But just last month we saw Argentina elect its first business-friendly president, Mauricio Macri, in decades. And now Venezuela is demanding change, so there’s hope.
As head of the cartel, Saudi Arabia hasn’t gone unscathed in the oil rout either. For the first time, the kingdom will tap international bond markets to make up for lost oil revenues.
Also in the hard-to-believe category is Alaska’s plan to institute an income tax for the first time in 35 years to “close a $3.5 billion dollar deficit the state is carrying,” according to Zero Hedge. The Last Frontier is known, of course, for giving all Alaskan residents an annual dividend based on oil revenue. In 2015, that amount was $2,072.
But since oil revenue has been cut in half, hard measures must be taken to keep the dividend running, Alaska Governor Bill Walker argues.
“This plan keeps the permanent fund permanent,” Walker tweeted last Wednesday.
This plan keeps the permanent fund permanent. #akgov
— Governor Bill Walker (@AkGovBillWalker) December 9, 2015Crude oil reserves here in the U.S. are currently at levels not seen since 1972. That’s with a 65 percent decline in rigs in operation from a year ago, a clear indicator of how efficient American producers have become.
But some analysts have suggested the oversupply isn’t as bad as we might think. Tom Kloza, head of energy analysis at the Oil Price Information Service (OPIS) told CNBC this week that it’s important to think of oil supply in the context of population growth:
"This is a glut in terms of the most crude oil we’ve ever had in North America. But if you measure it versus the population, it’s not altogether that much. We’ve had much more crude-per-population back in previous decades."
Kloza has a fair point. In 1970, at the height of U.S. oil production, the country’s population was just over 205 million and the total number of registered vehicles—passenger cars, motorcycles, trucks and buses—was 111 million, according to the Department of Transportation. Today the population hovers just north of 319 million and, as of 2013, the number of registered vehicles has more than doubled to 255 million.
It’s worth reminding ourselves that the U.S. isn’t the only growing country. Population is booming all over the globe. People continue to have babies—Chinese couples even more so now that the one-child policy has been lifted—and the global middle class is swelling rapidly. This helps oil demand continue to rise, as well as air travel demand.
SEE ALSO: The American shale oil boom did wonders for Republicans
As airlines and airplanes have evolved, so have their "liveries"— the exterior designs, including paint colors and logos, on the aircraft.
As planes crisscross the globe, their exterior graphics not only represent the companies that operate them, but in many instances also serve as visual ambassadors for their respective homelands.
A great airline livery gives onlookers a taste of a carrier's values or its culture in an attractive and effective color scheme.
You mess with this at your own peril. Airlines like Southwest, Spirit, and American have recently updated their liveries, with mixed results.
Others have hit home runs. Here's a selection of 15 airline exterior designs that look simply amazing.
Hoverboards are all the rage these days — but they're also causing plenty of rage, in more ways than one.
Take actor Russell Crowe, who claims to have gotten off a Virgin flight on Monday night because he couldn't bring his family's hoverboards — what he calls "Segway boards"— aboard the plane.
Ridiculous @VirginAustralia. No Segway boards as luggage? Too late to tell us at airport.Kids and I offloaded. Goodbye Virgin. Never again.
— Russell Crowe (@russellcrowe) December 29, 2015Though there have been dozens of injuries and emergency room visits from people simply falling off their hoverboards, the high-wattage batteries inside the vehicles is why so many companies, including Amazon, refuse to do business with them. Despite so many warnings from so many different people and companies, many people continue to buy these devices that are prone to both catching fire and/or exploding.
We don't recommend you buy hoverboards, given their safety issues and their many various public bans. But for those people that already own "Segway boards" like the Crowe family, we do hope you consider your own safety first and foremost, even if that means ditching these hundred-dollar fire hazards just to get on a flight.
Join the conversation about this story »
NOW WATCH: Adults try hoverboards for the first time — and it didn't go well
After more than a decade of development, China's first homegrown airliner earned approval early this year from the country's government to carry passengers. The ARJ21-700, from China's government-owned aircraft manufacturer, Comac, is designed to compete with offerings from Western airplane makers.
First test-flown in 2008, the ARJ21-700 has overcome a series of design setbacks and production delays. One aircraft was delivered in 2015. Whether the ARJ21 will become a truly effective passenger carrier remains to be seen, but it will definitely force the competition to take notice.
The cost of buying an airline ticket will hit a three-year low this month, before starting to creep back up as demand increases this spring, according to a new forecast by Hopper.com.
The site predicts its Consumer Airfare Index will fall to $210 this month, about 2.5 percent lower than last month and more than 14 percent lower than last year, thanks to plummeting oil prices.
Honolulu was the destination with the biggest projected price drop in January, with a potential $20 decline from the current $545 price. Hopper projects that prices could fall 17 percent on tickets to Miami and New Orleans, and 16 percent on tickets to Las Vegas and Houston this month.
The international cities where tickets prices could drop the most are Rio de Janeiro (23 percent); Milan (18 percent); and Bora Bora, in French Polynesia, and Istanbul (17 percent each).
Prices will rise through the spring, according to the forecast, peaking in June at about $20 below 2015 levels.
Being flexible with your travel plans can reduce already low rates even further. It’s usually cheaper to fly Monday through Wednesday, rather than Thursday through Saturday. You’ll also likely find better fares in the early morning and on red-eye flights.
For North American destinations, you might also be able to save by purchasing two one-way tickets in lieu of a round trip flight.
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NOW WATCH: Major airlines are introducing ‘last class’ — a category worse than coach
This week, Icelandic budget airline WOW Air unveiled a set of new flight deals from Los Angeles International Airport and San Francisco International Airport: $199 one-way tickets to various destinations in Europe, and $99 straight to Iceland.
Yes, you read those numbers right.
The $199 flights have a one-hour stopover in Keflavik, Iceland, before allowing you to jump to 18 different cities in Europe, including London, Paris, and Berlin.
For a long-haul transatlantic commute, that's a steal; a quick online price check with traditional carriers shows nonstop flights for later this month going for $1,200 and up, and one-stop options hovering in the $700 range. With more than two stops on your route, you're still going to have to shell out $518.
Meanwhile, budget transatlantic air rival Norwegian Air is posting prices upwards of $275.
So what's the catch? WOW Air is a notorious budget carrier, along the lines of the Spirit, Ryanair, and Allegiant brands. They identify as part of the "ultra-low-cost long haul" category, in which they're shooting to become the industry leader.
Currently rated at 2.5 stars on Yelp, you're going to have to pony up for traditional carrier amenities. It's $25 for an aisle seat; $10 for seat assignment in advance; up to $48 for an extra five inches of legroom; a $48 fee for "overweight" carry-on luggage, which means anything over 11 lbs.; and $67 or more for checked luggage. Reviewers also mention that in-flight refreshments are not free.
Still, since they launched Boston and Washington, DC low-cost routes in 2015, they've grown substantially, running at 90% capacity this year and expecting to double their passenger capacity this year.
"We have had a tremendously positive response to our low prices on our current transatlantic routes and this gives us confidence that passengers will take up the chance to travel even further afield," said CEO and Founder Skuli Mogenson in a statement posted on their site.
You'll be flying in one of three new Airbus A330-300 aircraft that WOW purchased just for these routes, each holding up to 340 passengers. And there will be no "upgrades" to business class, as WOW flies single class only.
Don't get too excited about making an affordable last-minute escape to Europe this winter, though. A quick search shows that their $199 deals are booked out to most destinations through the fall of 2016. But you know what they say: Paris is always a good idea. It'll be lovely next October, especially for just $199.
SEE ALSO: 100 trips everyone should take in their lifetime
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NOW WATCH: The 10 best cities in the world, according to travelers
Shares of Delta Air Lines jumped more than 4% Tuesday after the company reported a profit for the fourth quarter.
Adjusted earnings jumped 51% to $926 million, the company said.
It wasn't all good news. The fourth-quarter results came up shy of analyst expectations, with the company blaming volatile currency markets for a drop in revenue.
The Atlanta-based airline expects the foreign-currency pressures to continue in early 2016 — hitting revenue by as much as 4.5% in the first quarter of 2016.
But investors were clearly focused on the good news. Fuel is Delta's largest expense, and the plunge in crude oil prices over the past few months is having an obvious impact.
Delta said it saved $5.1 billion in fuel costs in 2015 — a huge amount given that the airline the reported a full-year profit of only $4.5 billion. It could help cut another $3 billion off costs this year, the company's president, Ed Bastian, said in the earnings statement.
For now, there's little reason to expect fuel prices to climb. In its latest report, the International Energy Agency said it expected the addition of Iran's daily production of 600,000 barrels to further lower already depressed oil prices.
Delta returned $2.6 billion to shareholders in 2015 in the form of $360 million in dividends and $2.2 billion in share repurchases.
SEE ALSO: Canada's answer to Boeing could be in for another blow
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The lowest fuel prices for more than a decade are proving to be a double-edged sword for US airlines.
While carriers saved hundreds of millions of dollars from oil prices halving since June, they forfeited a large chunk of that gain because of the fuel hedges they bought as protection against oil rising.
The bulk of those hedges, which effectively lock in fuel costs in advance, are set at levels that force airlines to pay more for fuel than current market prices, turning them into a hindrance rather than a help.
As a result, three of the four biggest carriers — Delta, Southwest, and United — said this week they were rethinking their hedging tactics. American, which does not hedge fuel costs at all, is reaping the biggest savings.
Southwest Airlines said on Thursday that its outstanding hedges represented a loss of $1.8 billion through 2018, at January 15 prices. But it still expects a fuel bill that is more than $0.30 a gallon lower this year than in 2015, or a net benefit of roughly half a billion dollars.
The budget airline has exited some contracts so that 30% to 35% of its fuel consumption in the second half of 2016 is covered by fuel hedges, down from 60% to 70%, its chief financial officer, Tammy Romo, said on an investor call. She did not say how much the airline paid to rid itself of the hedges.
"While our hedging philosophy has not changed, our tactics have in this environment," Romo said. "We will focus on catastrophic protection with no downside risk," she added, referring to more expensive hedges that cap the price an airline will end up paying for fuel.
Delta Air Lines said on Tuesday it had exited hedge contracts for 2016 at a cost of $100 million to $200 million per quarter in order to pocket each dollar that fuel prices decline. It forecast savings at $3 billion this year.
"You could have made this call a while ago. The pain wouldn't have been so bad," aviation industry consultant Robert Mann said, noting that oil oversupply was expected to continue as sanctions on Iran lift and the country pumps extra crude into the market.
United Continental Holdings has not added new hedges since July and is evaluating its hedging program structure, acting CFO Gerry Laderman said Thursday on the airline's investor call.
At the same time, United said the oil rout had hurt sales to energy clients near the airline's Houston hub.
To make matters worse, lower fuel costs have given big carriers room to chop fares so that smaller, low-cost rivals do not undercut them, leading to revenue-draining price wars.
The big winner is American Airlines Group Inc. The world's largest carrier said its fuel cost was $1.48 to $1.53 a gallon in the fourth quarter because it had not hedged fuel at all — better than Delta, United, and Southwest by some $0.30 or more.
SEE ALSO: Cheap oil is haunting United Airlines
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With one of the largest blizzards in recent history expected to wreak havoc along the East Coast of the US this weekend, airlines have begun to cancel flights.
According to the airline-tracking service FlightAware, airlines have canceled more than 10,000 flights within, into, or out of the US.
More than 3,000 flights were canceled Friday, another 4,500 are grounded for Saturday and 2,500 on Sunday.
So far the airports hardest hit by cancellations have been concentrated along the Mid-Atlantic region, with Charlotte and the Washington, DC, area airports bearing the brunt.
As the storm moves north, Philadelphia, New York, and Boston are ramping up cancellations in preparation for the effects of the winter storm Jonas. United Airlines will suspend all flights out of Washington D.C. starting at 4pm on Friday and all operations in the New York metro area all day Saturday. The airline hopes to resume operations on Sunday.
The blizzard has created a backup that has rippled across the US, with Atlanta and Chicago reporting more than 100 flight cancellations on Friday.
As a result, airlines have offered passengers with tickets for travel to certain snow-affected airports the opportunity to change their flight schedules at no charge.
If you are traveling on any of these airlines here is what you need to know:
Delta Air Lines:
Delta has offered to refund tickets for passengers whose flights are significantly delayed or canceled as a result of the winter weather. Even if your flight isn't canceled, passengers traveling into, out of or through the affected cities listed here may make a one-time change to their ticket free of charge.
To qualify, passengers must be ticketed to travel between the dates of January 22-24 with tickets reissued on or before January 27 for travel no later than January 27.
Click here for the latest information from Delta Air Lines and a list of cities included Delta's waiver.
American Airlines:
Passengers traveling on American Airlines or America Eagle scheduled to fly into, out of, or through cities affected by the storm may make a one-time change to their itinerary without the need to pay a ticketing fee. To qualify, passengers must be ticketed to fly between January 22-24 with tickets originally purchased before January 21st.
The passengers may switch to a new flight as long as they book in the same class and do not change the destination or origin from their original booking.
Click here for the latest information from American Airlines and the latest list of affected cities.
United Airlines:
Passengers traveling with United Airlines who are affected by the winter storm may also switch to a different flight without paying a change fee. Travelers who quality must be ticketed between the dates of January 22-25 into, out of , or though the affect cities listed on its website.
For qualifying passengers, the airline will waive the change fee and difference in airfare for new flights departing between now and January 29 as long as the new flights are in the same cabin class and between the same cities in the original ticket.
Click here for the latest information from United Airlines and the latest list of affected cities.
JetBlue:
JetBlue will waive change fees and the difference in airfare for passengers traveling into, out of or through cities affected by the blizzard. To qualify, customers must be scheduled to travel between the dates of January 22-24 with tickets purchased before January 20. Affected passengers may re-book for travel between today and January 29. Customers who have had their flights canceled may alternatively opt for a refund.
Click here for the latest information from JetBlue and the latest list of affected cities.
Virgin America:
Virgin America will waive the change fees and the difference in airfare for passengers scheduled to travel between January 22-24 to or from affect cities. Customers have until January 24 to change their travel plans for new flights scheduled for no later than March 10 that are in the same cabin class and between the same cities as the original ticket. Alternatively, qualifying passengers may cancel their itineraries without incurring a cancellation fee.
Click here for the latest information from Virgin America and the latest list of affected cities.
Southwest Airlines:
Passengers flying on Southwest in cities affected the winter storm may also be eligible for to rebook on different. However, the exact parameters for eligibility vary from city to city.
Click here for the latest information from Southwest and the list of eligible cities.
#Blizzard Warnings from #DC to #Philly& #NYC ahead of #Winter Storm #Jonas; LIVE NOW w/ latest. #NYwx#DCA#PAwxpic.twitter.com/mhNyBZyrXF
— The Weather Channel (@weatherchannel) January 22, 2016According to the National Weather Service, parts of the mid-Atlantic states could get as much as 2 feet of snow this weekend, while the New York metro area could get as much as a foot.
Predicting the path and severity of these types of winter megastorms is an inexact science. Last year, the New York area was expected to be clobbered by a massive blizzard that missed the city, unleashing its fury upon Boston instead.
Check back here for updates on further flight delays and cancellations.
Impacted airports by #Jonas have reduced or no service in the coming days. Check flight status before you travel: https://t.co/hSJ3Skh5fD
— American Airlines (@AmericanAir) January 21, 2016#Jonas is snow joke. We’ve canceled flights across the Northeast US. Check travel options here: https://t.co/kNkPUilgez
— American Airlines (@AmericanAir) January 21, 2016
UPDATE: @Delta plans response to weekend winter storm @DeltaNewsHubhttps://t.co/oDioseNlsE
— Delta News Hub (@DeltaNewsHub) January 21, 2016
We will suspend flights at our Dulles hub and other mid-Atlantic airports starting Friday, Jan. 22, at 4 p.m. ET.
— United (@united) January 21, 2016
STORM UPDATE: We’re suspending all flights at Newark on Saturday and plan to resume on Sunday. Use website or our mobile app to reschedule.
— United (@united) January 22, 2016
Winter weather affecting the northeast U.S. may cause service disruptions. Updates: https://t.co/EV97sLRqhl. pic.twitter.com/RTA1ywjdx9
— Southwest Airlines (@SouthwestAir) January 20, 2016
Traveler Alert: Due to DCA, IAD, LGA, JFK, EWR, + BOS possible wx delays JAN 22-24 pls check flt status. Details: https://t.co/Wf65cSBAuA.
— Virgin America (@VirginAmerica) January 20, 2016SEE ALSO: The jumbo jet is officially on life support — here's a look at its glory days
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NOW WATCH: Here are the states that are expected to get the most snow from Winter Storm Jonas
How did you spend your $700?
That’s how much the average American driver saved at the pump in 2015, according to a report from J.P. Morgan Chase. The bank also found that the savings fueled consumer spending on non-gas related purchases, which, based on credit and debit card transactions, were higher than previously thought.
For every dollar saved, Americans spent roughly $0.80 on other things—restaurant visits, appliances, new gadgets and more.
But everyday consumers weren’t the only ones who saved big in 2015. Lower fuel prices represented a huge windfall for the airline industry. Delta Air Lines alone netted $5.1 billion in savings. As a whole, U.S. carriers retained between 50 and 75 percent of fuel cost savings, says Credit Suisse, and with crude oil at 13-year lows, they can expect to hang on to a similar percentage this year.
As I mentioned in a previous Frank Talk, cheaper fuel helped the domestic airline industry soar to record profits in 2015. According to the International Air Transport Association (IATA), airlines are collectively set to post an annual $33 billion in net profits, up from $17.4 billion in 2014, an increase of almost 90 percent.
Profits could touch $36 billion this year, the IATA says, resulting in record amounts of free cash flow.
So the question is: What are airlines doing with it all?
Besides upgrading their fleets to include more fuel-efficient aircraft, airlines are putting the cash to work by improving balance sheets and rewarding shareholders.
In 2015, more than $10 billion—about 7 percent of U.S. airlines’ market cap—was returned to shareholders in the form of stock buybacks and dividends. That’s double the amount from 2014. Among the carriers expected to raise their dividends this year are Delta, American Airlines, Alaska Air Group and Southwest Airlines, according to a Barron’s article this week. Credit Suisse calls American’s $1.5 billion stock buyback program, more than 12 percent of its market cap in 2015, “a sign of management confidence of what’s to come in 2016.”
Investors are taking notice. Within the industrials sector, airlines are the least expensive, with network carriers (American, Delta, United Airlines, etc.) at 7.1 times earnings and low-cost carriers (Spirit Airlines, JetBlue, Allegiant Air, etc.) at 10.5 times earnings.
A concern some investors might have is rising labor costs, which have overtaken fuel as airlines’ top expense. (In its World Airline Profit Outlook 2016, the CAPA Centre for Aviation calculates that the industry’s fuel expenses came down from 30 percent of revenue in 2014 to 25 percent in 2015. This year, they could fall to as low as 19 percent.) There have been reports that pilots, flight attendants, ground crew and other personnel are seeking higher wages and salaries as company profits climb.
These additional costs, if approved, could be offset by not only lower-for-longer fuel prices but also growing ancillary revenue—non-ticket fees for checked-in baggage, priority seating, in-flight meals and the like—and more disciplined capex spending.
Don’t expect airfares to drop dramatically, however. As far as anyone can tell, they’re likely to stay where they currently are. In the second quarter, the average price for a seat fell a slight 2.8 percent year-over-year, from $396 to $385.
That’s a little less than the $700 you saved at the pump.
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With more than 10,000 flights canceled this weekend, winter storm Jonas has wreaked havoc on air travel across the country.
According to Flightaware, more than 3,000 flights were canceled Friday, with 4,500 grounded for Saturday and another 3,000 expected on Sunday.
The area hit hardest is the northeastern portion of the US.
Normally, the airspace between Washington D.C. and New York City is some of the busiest in the world.
On Saturday, the historic winter storm transformed the region into a ghost town.
Seven major airports serving D.C., Baltimore, Philadelphia and New York are all but shutdown.
In a screenshot from the Flightradar24, the airspace above the region shows virtually no activity.
The few aircraft that are in the area are inbound flights from other parts of the US and Canada.
Under normal conditions, the map would be covered in a sea yellow, with planes traveling into, out of, or through the region's bustling airports.
All major airlines operating in the US have temporarily shuttered their operations between D.C and New York.
United Airlines announced on Friday that it has shut down its major hubs at Washington Dulles and Newark Liberty International Airports. Although the airline said yesterday it intends to resume service on Sunday, no specific timeframes have been set as of this writing.
Major international carriers such as Etihad and Emirates have also canceled or significantly delayed their flights into and out of New York and Washington D.C. on Saturday.
"We are closely monitoring the situation," An Emirates spokesperson told Business Insider in an email. "We apologise for any inconvenience, the safety of our crew and passengers is of the utmost importance."
New York City Mayor Bill de Blasio indicated at a press conference that he will meet with the Port Authority of New York and New Jersey Saturday night to determine a timeline to reopen JFK, LaGuardia and Newark Liberty.
Delta has offered to refund tickets for passengers whose flights are significantly delayed or canceled as a result of the weather. Even if your flight isn't canceled, passengers traveling into, out of, or through the affected cities listed here may make a one-time change to their ticket free of charge.
To qualify, passengers must be ticketed to travel between the dates of January 22-25 with tickets reissued on or before January 29 for travel no later than January 29.
Click here for the latest information from Delta Air Lines and a list of cities included Delta's waiver.
Passengers traveling on American Airlines or American Eagle who are scheduled to fly in cities affected by the storm may make a one-time change to their itinerary without having to pay a ticketing fee. To qualify, passengers must be ticketed to fly between January 22-24 with tickets originally purchased before January 21st.
The passengers may switch to a new flight as long as they book in the same class and do not change the destination or origin from their original booking.
Click here for the latest information from American Airlines and the latest list of affected cities.
Passengers traveling with United Airlines who are affected by the winter storm can switch to a different flight without paying a change fee. Travelers who qualify need to hold tickets dated for January 22-25 into, out of, or though the affected cities listed on United's website.
For qualifying passengers, the airline will waive the change fee and difference in airfare for new flights departing between now and January 29 as long as the new flights are in the same cabin class and between the same cities in the original ticket.
Click here for the latest information from United Airlines and the latest list of affected cities.
JetBlue will waive change fees and the difference in airfare for passengers traveling through cities affected by the blizzard. To qualify, customers must be scheduled to travel between January 22-24, with tickets purchased before January 20.
Affected passengers may re-book for travel between January 23 and January 29. Customers who have had their flights canceled may alternatively opt for a refund.
Click here for the latest information from JetBlue and the latest list of affected cities.
Virgin America will waive the change fees and the difference in airfare for passengers scheduled to travel between January 22-24 within affected cities. Customers have until January 24 to change their travel plans for new flights scheduled for no later than March 10 that are in the same cabin class and between the same cities as the original ticket.
Alternatively, qualifying passengers may cancel their itineraries without incurring a cancellation fee.
Click here for the latest information from Virgin America and the latest list of affected cities.
Passengers flying on Southwest in cities affected the winter storm may also be eligible to rebook. However, the exact parameters for eligibility vary from city-to-city.
Click here for the latest information from Southwest and the list of eligible cities.
A massive storm slammed into the US East Coast this weekend, dumping several feet of snow on major cities from Washington, DC to New York.
The air-travel system going into and out of the region was effectively shut down while the white stuff was coming down.
But as everyone digs out, travel will resume. However, it won't be without some challenges.
Commercial planes are no strangers to extreme cold. Above 37,000 feet, the air is far colder than it is on the ground. Low temperatures on their own don't stop air travel.
So why does cold strike fear in the hearts of airport managers and travelers?
Because it creates conditions that slow down airport operations. Significantly.
Heavy snow can reduce visibility to the point where officials decide it's unsafe to take off and land. Ice buildup on aircraft is especially dangerous. In his book, "Cockpit Confidential," airline pilot and blogger Patrick Smith explains that even a quarter-inch-thick layer of ice on a plane can disrupt "the flow of air over and around a wing's carefully sculpted contours, destroying lift."
Lift, it goes without saying, is what enables airplanes to take off and fly.
Ice on the ground makes things tricky, too. Last year, New York's JFK Airport was shut down for several hours when a Delta plane skidded off the runway into the snow. (No injuries were reported.)
The problem is that while planes can be de-iced (usually by spraying them with a mix of water and glycol alcohol), getting ice off a runway when the temperatures are low and there's no sunshine is much harder.
"There's hardly anything you can do," Jack Gartner, who worked in operations at New York airports for over 30 years, told Business Insider. Especially since you don't want to risk damaging the pavement on the runway. Potholes and other imperfections in the pavement make takeoff and landing less safe.
On top of the threat posed by ice, there's the fact that cold weather slows down the work that has to be done on the tarmac. In conditions like these, workers at Minneapolis-St Paul use a buddy system, Operations Manager for Field Maintenance James Riley said. They don't spend more than 20 minutes at a time outside a vehicle or shelter, and so they're "not getting as much done."
The equipment used to pump jet fuel can freeze, so refueling planes gets tricky. That has slowed airline operations in the past.
Simply put, cold weather makes it harder, though not impossible, to do everything necessary to get a plane in the air or on the ground safely, and to make sure everyone involved remains safe as well.
Usually, that means flights are delayed. And when things get really bad, it means cancellations.
Fortunately, Winter Storm Jonas' impact looks as if it will be short-lived. Temperatures are expected to rise over the course of the coming week, speeding up the melting of all that snow.
[And earlier version of this post was written by Alex Davies.]
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Winter Storm Jonas has had a devastating effect on air travel in the northeastern US.
More than 12,000 flights have been canceled since Friday.
According to FlightAware, cancellations included 3,000 flights on Friday, 4,500 on Saturday, and another 3,500 on Sunday.
And nearly 1,500 flight have already been canceled Monday.
Normally, the airspace between Washington, D.C., and New York City is some of the busiest in the world.
Over the weekend, the historic winter storm halted movement across the region.
Seven major airports serving D.C., Baltimore, Philadelphia, and New York were all but shut down.
In a screenshot from Flightradar24, the airspace above the region shows virtually no activity.
All major airlines operating in the US temporarily shuttered their operations between D.C. and New York during the storm.
The few aircraft seen in the area were inbound flights from other parts of the US and Canada.
By Monday morning, however, things were beginning to return to normal as air travel around the region resumed service.
Delta Air Lines told Business Insider this morning that its operations in the Northeast and Mid-Atlantic regions of the US are back at strength. The airline expects the majority of the backlog of passengers to clear out by the end of the day today with a few bleeding over to Tuesday.
Thus far Monday, according to FlightAware, Newark Liberty International has reported more than 250 flight cancellations, while LaGuardia has reported more than 150. Reagan National and Washington Dulles each have reported more than 100 cancellations Monday morning.
JFK International and Baltimore-Washington International have reported fewer than 50 cancellations each. Philadelphia International is reporting about 75 flight cancellations.
Delta has offered to refund tickets for passengers whose flights are significantly delayed or canceled as a result of the weather. Even if your flight isn't canceled, passengers traveling into, out of, or through the affected cities listed here may make a one-time change to their ticket at no charge.
To qualify, passengers must be ticketed to travel between January 22 and 25 with tickets reissued for travel no later than January 29.
Click here for the latest information from Delta Air Lines and a list of cities included Delta's waiver.
Passengers traveling on American Airlines or American Eagle who are scheduled to fly in cities affected by the storm may make a one-time change to their itinerary without having to pay a ticketing fee. To qualify, passengers must be ticketed to fly between January 25 and 26 with tickets originally purchased before January 24.
The passengers may switch to a new flight as long as they book in the same class and do not change the destination or origin from their original booking.
Click here for the latest information from American Airlines and the latest list of affected cities.
Passengers traveling with United Airlines who are affected by the winter storm can switch to a different flight without paying a change fee. Travelers who qualify need to hold tickets dated January 22-26 into, out of, or though the affected cities listed on United's website.
For qualifying passengers, the airline will waive the change fee and difference in airfare for new flights departing before February 2 as long as the new flights are in the same cabin class and between the same cities as in the original ticket.
Click here for the latest information from United Airlines and the latest list of affected cities.
JetBlue will waive change fees and the difference in airfare for passengers traveling through cities affected by the blizzard. To qualify, customers must be scheduled to travel between January 22 and 25, with tickets purchased before January 20.
Affected passengers may rebook for travel before January 29. Customers who have had their flights canceled may alternatively opt for a refund.
Click here for the latest information from JetBlue and the latest list of affected cities.
Virgin America will waive the change fees and the difference in airfare for passengers scheduled to travel between January 22 and 24 within affected cities. Customers have until January 24 to change their travel plans for new flights scheduled for no later than March 10 that are in the same cabin class and between the same cities as those in the original ticket.
Alternatively, qualifying passengers may cancel their itineraries without incurring a cancellation fee.
Click here for the latest information from Virgin America and the latest list of affected cities.
Passengers flying on Southwest in cities affected the winter storm may also be eligible to rebook. The parameters for eligibility, however, vary from city to city.
Click here for the latest information from Southwest and the list of eligible cities.
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Winter storm Jonas all but shut down air travel for much of the eastern United States over the weekend.
The blizzard, which left much of the region paralyzed under as much as 30 inches of snow, has caused more than 12,000 flights to be canceled.
The seven major airports serving New York, Philadelphia, Baltimore, and Washington, DC, were closed for most of the weekend, leaving the normally bustling airspace deserted.
The airline industry could lose an estimated $200 million in revenue as a result of the blizzard, Airways News senior business analyst Vinay Bhaskara told Business Insider.
That comes in the form of canceled flights, forfeited fees, and lost business due to alternative modes of transit.
However, with the airlines reporting record levels of profitability, it is unlikely last weekend's blizzard will have a significant effect on the industry's bottom line.
"No, no, no," Bhaskara said when asked whether the blizzard will result in any long-term financial impact on airlines.
The airline industry generates more than $170 billion in revenue every year, so a $200-million loss will not make a significant dent in the overall business.
But the lost revenue will likely show up in airlines' first-quarter earnings results and could cause less sophisticated investors who do not following the industry to make a rash decision, Bhaskara cautioned.
Although the vast majority of investors will not make much of the losses, he added.
Thus far, the market has reacted in subdued fashion to the blizzard. Delta and United shares are flat in trading on Monday, while shares of American and Southwest are down slightly.
The blizzard caused by winter storm Jonas fell during the period when airlines are reporting their 2015 annual and 2015 fourth quarter earnings. Thus far, major US carriers such as United, Delta, and Southwest have all reported stellar profits driven by cheap fuel and increased business discipline.
American Airlines is set report 2015 earnings this week.
SEE ALSO: The jumbo jet is officially on life support — here's a look at its glory days
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A new craze for life-size dolls is sweeping through Thailand and a low cost airline has been forced to draw up new guidance for staff on passengers bringing on board these dolls. The dolls, called look thep or Child's Angels have become fashionable in Thailand after several celebrities 'adopted' them in the belief that they bring good fortune.
The owners put the dolls through a ceremony to 'draw angels into them'. They take care of the dolls, which are the same size as infants, as they would real children, which includes cradling them, feeding and dressing them up.
The dolls can cost anywhere from 2,000 baht to 20,000 baht (£1.1 to £391; $55 to $556). The owners believe that the dolls hold children's spirits which bring them good luck, wealth, blessing and protection from harm. The Carbonated TV website said the dolls are believed to be possessed by the spirits of deceased children, who are invited to inhabit the doll through ancient rituals.
In a bid to avoid upsetting passengers who want their dolls to be treated as infants, Thai Airways' low cost carrier, Thai Smile Airways, is now giving passengers the option to buy an additional seat for the doll.
Those who do purchase an extra seat for their doll, will have all facilities and services accorded as if a real child is travelling with them. This means, snacks and drinks will be served to the dolls and seatbelts must be fastened during take-off and landing.
The airline issued a statement to explain the guidance issued, noting that it was an internal document for staff. It explained that more than 40 passengers had brought their Child's Angel on board over the past two or three months and there was a growing need to issue guidelines for cabin crew staff to deal with the situation.
The airline noted that some passengers were unhappy when cabin crew members placed their dolls on the overhead compartments or under the seats for safety reasons. The guidance therefore outlines procedures for its staff treat the dolls respectfully but at the same time sticking to the airline's safety requirements.
Thai Smile Chief Executive Officer Woranate Laprabang said that most passengers with the dolls place them on their laps or strapped them on seats next to them, as they believe that the dolls are valuable. This practice, he said, may obstruct or disturb other passengers on board.
He said these dolls can be placed on seats if they are unoccupied but they must have seat belts fastened to prevent them from being flung around in the event of turbulence. For passengers who choose not to purchase an additional ticket for their dolls, they will be treated as carry-on baggage and will have to weigh not more than 7kg.
Chula Sukmanop, the director of the Civil Aviation Authority of Thailand said a meeting of all Thai-registered airlines and airport operators will be convened in a few days to discuss standard procedures to handle passengers with Child Angel dolls. "Without a standard, if passengers carry on look thep dolls aboard airplanes and cause a problem or unexpected incident in the way that affects air safety, that may affect efforts to solve the red flag and significant security concern of the International Civil Aviation Organisation."
The new trend has even prompted several restaurants in Bangkok to offer children's meals to the dolls.
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