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June 23, 2008

‘Pay-for-what-you-use’ In-flight Café

Beginning in August, US Air will charge $2 for all non-alcoholic beverages (including sodas, juices, bottled water and coffee) and $7 for alcoholic beverages (currently available for $5). They will continue to serve complimentary beverages on US Airways Shuttle, and in First Class and Envoy.
We saw this one coming, first was headsets, then food, finally baggage, and now beverages. We actually don't believe this will really help out the airlines as much as they think. It really means that everyone will be buying their water and soda at the airport stands. Since passengers can't bring their own beverages through security, the airports and airlines now will have a monopoly on this one.

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June 22, 2008

Continental, United plan cooperation

We received notice on Thursday evening announcing that United and Continental plans to cooperate globally, linking their networks and services worldwide. Also, Continental will go on to join the Star Alliance network. This is a huge blow for the Sky Team network whose key members in the US were Delta, NWA, and Continental. With 2 of the 3 merging and now Continental leaving, this potentially leaves Delta/NWA in a uncertain situation with Continental’s strong presence in flights to Latin America.

Obviously, the new partnership will allow customers to have a new frequent flier reciprocity on both carriers, along with access to both airport lounges for elite status members. Also, this will allow for code sharing flights not only domestically, but also internationally.

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