NYTimes.com Article: Airline Food

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Airline Food

August 31, 2004
 JOE SHARKEY





AIRLINE FOOD Two years after free meals became largely a
memory (good or bad) in the coach cabins of many domestic
flights, American Airlines is considering joining
competitors that started selling meals to passengers after
eliminating free meals during the post-9/11 slump in
business. American said it would begin testing in-flight
food sales in September on selected flights, including some
between Dallas and New York and New York and Phoenix. Meals
will cost $5 to $7. If the tests are successful and
American expands the service throughout its domestic
schedule, the airline, the world's largest, will join most
major airlines and a handful of low-cost carriers in
selling food in coach on some or all flights. (In business
and first class, free meals are still the norm.) Among the
major carriers, only Continental still serves free meals in
coach on most domestic flights.

FUEL PRICES The airlines insist they are not crying wolf
about the trouble that high oil prices are causing. "While
the soaring price of fuel is a huge problem for the
economy, it is rapidly becoming a catastrophe for the
airline industry," according to a letter to Congress signed
by the chairmen of most domestic airlines. The letter
states that at current prices, the fuel bill this year for
the nation's airlines will be $6 billion more than it would
have been with last year's prices. The letter, sent under
the aegis of the Air Transport Association, asks for
oversight hearings to review the "feverish speculation" in
oil markets. "We are convinced," the letter says, "that the
only thing that will stop the wild increase in prices is
fear by the speculators that the U.S. government is ready
to step in with actions that could either increase supply
or reduce demand."

BIGGER LITTLE PLANES Relief is on the way for frequent
fliers who hate regional jets, which typically have about
50 seats crammed into a cabin with little legroom or
overhead space. Airlines are kicking the tires on a new
breed of higher-capacity 70-to-120-seat regional jets with
more comfortable interiors (and more efficient engines).
Manufacturers will produce 387 regional jets this year, and
that number will include "a progressively higher proportion
of larger capacity aircraft" than in recent years, says
Forecast International, an aviation research company.
During the next 10 years, production of 70-to-120-seat
regional jets will be "particularly dynamic," it says. Two
aircraft makers, Bombardier and Embraer, have recently
introduced such aircraft: the Embraer 190 and 195, now in
production, and the CRJ-900. Boeing's 717-200 and Airbus's
A318 aircraft are also designed to compete in that growing
market, Forecast International says.

BUSINESS IN VIETNAM Millions of Vietnam veterans passed
through the dusty Tan Son Nhut airfield in Saigon, now Ho
Chi Minh City, in the days when it was mostly a busy
military base. In a further sign that Vietnam has now
become a business-travel center in Southeast Asia,
construction started last week on a $220 million terminal
that will increase the airport's capacity to as much as 17
million passengers a year, according to the news service
Asia Pulse.

LABOR DAY CROWDS AAA is predicting "potentially record
high" travel this Labor Day weekend. That includes an 11
percent increase from a year earlier in the number of air
travelers, to 3.9 million, the automobile association says.
JOE SHARKEY

http://www.nytimes.com/2004/08/31/business/31memo.html?ex=1094965113&ei=1&en=2024d9baa28dd4af


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