The Airbus A380 is widely regarded in aviation as a technical achievement, yet a financial disaster.    Airbus has successfully built the largest passenger aircraft in the world, yet sold a relatively few number of them.   Worse, production delays have meant that a precious few are being delivered every year.   In the last three years since it’s introduction to passenger service, only 38 have been delivered, out of a total of only 234 ordered.   By comparison, Boeing delivered over 160 747 aircraft in it’s first three years of production.   If Airbus delivers the remaining 196 aircraft it has on order in the next ten years, it will still have built less than half of the number of Boeing 747s than were built during the first 13 years of it’s production.

The A380 In Service

Nevertheless, there are five airlines that currently operate the aircraft, Singapore, Qantas, Emirates, Lufthansa, and Air France.     These airlines seemed pleased with the aircraft and it’s anemic sales have been blamed on a smaller than expected market for aircraft seating over 500 passengers, as well as it’s limited cargo capacity.   Passengers love the airplane.  With it’s spacious aisles and headroom to it’s near silent cabin, people often go out of their way to book a flight on this plane.

While I have not yet had the privilege of flying on this plane, I was fortunate enough to see a demonstration of it’s capabilities last year at the Airventure gathering in Oshkosh Wisconsin.   It was an impressive demonstration, despite the hard landing I witnessed during a challenging crosswind.

The A380 Out Of Service

On November 4th, 2010, an A380 operated by Qantas experienced an engine failure on departure from Singapore, enroute to Sydney.     With jet engines, there are two types of failures, contained and contained.    Contained engine failures are the most common as well as the least serious.   This is when the engine shuts down without any parts protruding from the engine shroud, called a nacelle.    Parts may come loose or be ejected safely from the tail pipe, yet the failure is still considered “contained.    For example, US Airways flight 1549, the “miracle on the Hudson” experienced the contained engine failure of both of its engines after they ingested birds.

By contrast, an uncontained engine failure is a very rare and serious event.  In an uncontained engine failure, the fan blades or other components come loose at a velocity sufficient  to exit the side of the engine, possibly penetrating the cabin or damaging other parts of the aircraft.  Aircraft are designed to withstand an uncontained failure as much as is feasible, yet they can still cause enough damage to take down an airplane.   For example, on July 19, 1989 United flight 232 experienced an uncontained engine failure that severed the hydraulics that control the aircraft.   While the pilots used the thrust of the engines to steer the airplane and attempt a landing in Souix City Iowa, a crash occurred, killing 172 of the 285 people on board.

The A380 incident was an uncontained engine failure, with parts of the engine nacelle falling on a populated area.   There are even pictures of the wing that appear to have an engine piece protruding through it.    Thankfully, the aircraft landed safely and no one was injured.   In response, Qantas has grounded its entire fleet of aircraft, snarling its schedule for thousands of passengers.

Should You Be Concerned?

First, it is important to know that there are essentially two kinds of A380s flying.   Some have the Rolls Royce Trent engines, and some have powerplants from Engine Alliance, and consortium of General Electric and Pratt & Whitney.   All Qantas aircraft have the Trent engines, as do the A380s of Singapore and Lufthansa.     As of this writing, Singapore is temporarily suspending A380 operations, while Lufthansa is performing safety checks, but is still not halting operations.   Air France and Emirates fly the version with engines from Engine Alliance.

You can think of a jet engine kind of like the lens on a high end camera.   Aircraft are ordered from the airframe manufacturer, but the engines, like camera lenses, are considered a separate purchase.    Failure of one manufacturer’s engine is not relevant to the operation of another manufacturer’s engine.   If you or someone you know is planning on flying an Air France or Emirates, A380, this event is completely inconsequential to the safety of their flight.

If I was considering flying an A380 of Lufthansa, Singapore, or even Qantas, I still would not give it a second thought.   It so happens that these three airlines are among the safest in the world.    For example, Qantas has never had a fatality on a jet aircraft, and it has been nearly sixty years since they have had any fatality at all.   The fact that the most recent incident, though serious, resulted in no injuries or loss of life is a testament to the safety of the A380 and the professionalism of the crew.   By grounding their A380 aircraft fleet, Qantas is going out of their way to ensure that their safety record remains immaculate.   When they decide to restart A380 operations, I would be glad to be a passenger.

Priceline is a great idea, made famous by snappy commercials.    It seems to work for many people, but not for me.   Here is why:

1. My Vacation Time Is Very Valuable. I don’t get off many days of the year, and I like to take a lot of vacations.    What that means is that I tend to schedule my vacation very closely around my work.   It is not unusual for me to leave work at four in the afternoon for a 6:00 P.M. flight, so that I can spend the entire first day of my vacation at my destination rather than traveling.   When you book a flight on Priceline, you have no idea what time of day you will travel or even if you will change planes.   There is nothing to stop them from giving you a six hour layover somewhere.   Worse, you could change planes in an inconvenient location, spending your day in the air.   If I have to change planes, I want to know how long and where that will be.

2. I Am Particular About Which Airlines I Fly. Frankly, some airlines are just not worth the trouble.  I have had so many bad experiences with United Airlines, that I have determined that the organization provides little incentive for any of it’s employees to provide decent customer service.     Other airlines outsource their flying to small, regional airlines that are unreliable.   They often fly regional jets that are uncomfortable.   Call me an airline geek, but I want to choose what airline I am flying and what aircraft I will be in.

3. I Don’t Consider Hotels A Commodity.  Even more than airlines, knowing which hotel you are staying in is important.   I like to spend a few minutes on Trip Adviser skimming the reviews before committing to a hotel.   I don’t care how many stars someone rated a hotel, I am not staying there if it has multiple reports of dirty rooms, noisy disturbances, crime, or bedbugs.     I do want a hotel that is near to my destination.   Especially if I am not planning on renting a car, I want to know exactly where the hotel is in reference to restaurants and public transportation.

4. I Want To Know Exactly What Fees They Are Going To Charge Me. One of the biggest flaws in Priceline is their toleration of so called resort fees.   As you can read in this article at The Consumerist, there is nothing to stop Priceline from giving you a hotel at one price, and the hotel charging you a “resort fee”  that exceeds the cost of the room.    I hate these fees, and the way Priceline is ignoring them is fraudulent.

5. Booking Directly Puts You On Their Good Side. I have read too many stories about what happens to people who make reservations on Priceline or other discounters.   They show up to a hotel, and they are given the unheated room next to the elevator.    The hotel is making very little profit on these discounted rooms, and since you didn’t pick them by name, they have no incentive to see that your stay is comfortable.

6. Booking Directly Gives You More Flexibility Thankfully, most hotels still have cancellation policies that are quite flexible.    Generally, you can cancel with a full refund up until the night before, or often 6 pm on the day of arrival.    Call this built in travel insurance if your flight is canceled, or there is some other reason your trip just isn’t going to happen as planned.   As the reader in The Consumerist post found out, book with with Priceline, and they are keeping your money no matter what.

7. There Are Lots Of Really Good Deals Out There I know that people score great deals with Priceline, just like people win big in Vegas.  Nevertheless, I prefer not to gamble on my travel.   Instead, I find Best Rate Guarantees from travel providers like Expedia.    I also find other hotel deals and promotions that are quite good.   When all else fails, I have been known to negotiate directly with a property.

Conclusions

If you have plenty of extra time on your vacations, and price is your only consideration, Priceline may be for you.    If you really don’t care what kind of hotel you stay in, so long as it is rated with so many stars, you might get a deal on Priceline.   If paying resort fees of an unknown amount is acceptable to you, go ahead, give Priceline a try.    For me, I will stick with booking my travel directly with the airlines and hotels I plan on patronizing.

This is a golden age for air travel if you are lucky enough to live in Denver.     When I moved here in 1997, Denver’s new airport had recently opened in 1995.   It was said that the grand new facility was conceived for three major airline hubs, built for two, and opened with one.   During the time it took to design and build the airport, Western airlines was absorbed by Delta and it’s Denver hub was closed, and Continental chose to abandon it’s Denver hub at the old Stapleton Airport rather than move to the new field.    When Denver International Airport (DIA) opened in 1995, only United remained as the sole carrier offering service to more than a handful of destinations.   As you can imagine, prices were high.  I once purchased a lasts minute ticket from Denver to Atlanta for $1,600 round trip.   I might have paid less  if I had flown to Sydney.  As I write this, I just searched for a trip from Denver to Atlanta leaving today and returning Thursday.   The price was just over $600.

What Changed?

Frontier Airlines grew a hub in Denver throughout the last decade.   Although they struggled, they offered lower fares to dozens of destinations around the country.   Last year, they emerged from bankruptcy when they were acquired by  Republic, the owner of Midwest.   Earlier this year, the Midwest brand was folded into Frontier.    Four years ago, Southwest Airlines began service to Denver.   Southwest aggressively expanded their Denver service, their fastest ever growth to a new city.   The result is that Denver is now the airport that was originally envisioned, one with three hubs, United, Frontier, and Southwest.

Having three hubs has a fantastic effect on prices out here.   According to the Denver Post, the average airfare from Denver has dropped by a third in the last decade. I don’t think there is much precedent for three airline hubs operating out of a single airport.    Chicago has American, United, and Southwest out of Midway.  Orlando has Southwest, Airtran, and Jetblue.  Even Milwaukee has miniature connecting operations of Southwest, Frontier, and Airtran.   In the last two of those cases, Southwest’s purchase of Airtran will shrink competition back to two major carriers.

Is It Sustainable?

How long can this situation continue.   Let’s face it, Denver is not Chicago and never will be.    On the other hand, few people realize that Atlanta has the busiest airport in the world, so these things are not intuitive.     The fact is that Denver made a huge bet 20 years ago that Denver’s location would be so ideal for connecting operations, that multiple carriers would be willing to compete with each other here.    At first, it seemed like a terrible bet, building what was at the time, the world’s largest airport in the high planes, 15 miles outside of Downtown.    Today, it seems like the bet is paying back handsome dividends  as Denver is one of the top 10 busiest airports in the world and one of the top 5 in the county.    Denver’s airport continues to grow despite the current economic downturn.

What Are The Lessons Here?

To some extent, you could say “If you build it, they will come,” but only if they have nowhere else to go.   Other airports built in major cities in the last forty years have been only moderately successful when they have had to compete with their predecessors, such as Washington Dulles and Dallas-Ft. Worth.    In the case of Atlanta, their enormous new terminal finished in 1980 has also been an overwhelming success.  Like Denver, it has no competition offering commercial service in the metropolitan area.

Another clear lesson is that competition will always benefit consumers.   When airlines merge, woe be it unto travelers who once flew a competitive route that is now dominated by a single carrier.  Keep that in mind next time there is a merger proposed between airlines, and their media people claim that the results will be good for consumers.