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Even though we’ve been hearing our fair share of bad news regarding all flavors of downsizing going on in the airline business, the Global Fortune 500 List comes back, in 2008, to remind us that some airlines out there are still doing very well for themselves.

To put it simply, some people just need to fly.

For business or leisure, lots of sky travelers simply can’t do without their airplane link to another location on our Blue Planet. The airlines that are performing the best are those which properly cater to these people — and they’re not necessarily selling the cheapest seats either, it’s actually quite the contrary.

While the budget challenged airplane travelers need to cut back on their travel expenses, the richer crowd doesn’t really bother with the extra charges related to homeland security, fuel or various other fees being piggy-backed on the ticket prices.

Planes consuming less fuel, flying with less (empty) seats and serving busier routes will help the airlines who dare to reinvent themselves to thrive, even with the bargain-hunting passenger crowd.

So who’s on top, in the 2008 list of the Global Fortune 500?

Let’s take a look at the numbers:

The profits aren’t anywhere near those from banks or pharmaceuticals but this is airline transport, an industry where the competition is fierce in the air but also from alternative transportation like high-speed trains, direct bus routes, marine shuttles, people’s cars and others.

In this particular context, turning a profit -at all- is a good sign.

Because of anticipated market pressures on the airlines, in the US and abroad, the next few months and years could prove to be bumpy for the investors who need to keep in mind that with technological breakthroughs and advances, planes will likely get more affordable to operate and as such, profits could be looking up. Also, the current price of fuel, which is at an all-time high, is expected to go down enough for the airliners to breath, at least for a short while.

Let’s see how these and other smaller airlines perform in these challenging times, in the months and years to come. Expect major and not-so-major mergers and acquisitions to reshape, yet again, this industry.

Tags: airlines, airliners, airplanes, planes, sky travelers, tourists, business travel, air travel, airplane tickets, bargain prices, bargain hunters, lower prices, high fuel prices, fuel prices, airplane fuel, passengers, us, world, global, fortune, money, revenues, profits

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The Ambassador Bridge, linking Windsor to Detroit, is privately owned by Michigan-based businessman Matty Moroun. He profits from a generous 60 million dollars annually, in toll revenues and it’s no big surprise since this bridge serves North America’s busiest trade corridor, handling 500 million dollars daily.

So the Windsor-Detroit link is very important, for both Canada and the United States but there’s a huge problem. As it stands, the bridge is a bidirectional traffic nightmare featuring ongoing bottlenecks and congestion that doesn’t even spare the trucking industry which is hurting badly from this state of affairs.

In short, the clogged Windsor-Detroit crossing is a heavy barrier to both trade and travel.

Matty Moroun knows this and he’s planning another “twin-span” bridge to be erected just a few meters from the current 79-years-old Ambassador Bridge but his plans aren’t moving fast enough so the DRIC has studied alternative locations to build a new bridge, intended to resolve the massive traffic problems at the border, on both sides.

After evaluating several routes, the DRIC is said to have chosen a preferential corridor that spans from Brighton Beach, on Canada’s side of the Detroit River and lands just northeast of Zug Island, on the US side, to then travel into a plaza located in an industrial area of Detroit known as Delray.

So who’s part of DRIC?

Decisive public partners such as Transport Canada, the Ontarian Ministry of Transportation, the US Federal Highway Administration as well as the Michigan Department of Transportation are in charge of the Detroit River International Crossing Project (DRIC) binational border transportation partnership group.

The entire end-to-end project, including the Windsor-Essex Parkway, is anticipated to cost 5 billion dollars and create up to 25,000 person years of employment — this is very good news for both Windsor and Detroit workers. The final say on the new bridge’s location will however be officially announced sometime in the summer of 2008 by officials from both sides of the border.

Get a feel for the whole project with the following images from the WEParkway web site:

It’s important to note that Canada is experiencing its second-longest period of economic expansion in history. That’s mainly why Canada is investing in such modern, world-class infrastructure projects in order to foster a stronger economy, a cleaner environment and hopefully safer, more prosperous communities.

While the new bridge isn’t built yet, commuters and truckers on both sides of the border will benefit from a massively upgraded crossborder highway transportation system.

Tags: ambassador bridge, windsor, detroit, bridge, north american, trade, travel, border, prosperity

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The entire supply chain is under great financial stress as the spot price of WTI crude oil rose steadily to over US$110 per barrel, on March 13th of 2008 — a record-setting price.

While the price for WTI crude oil is expected to average near $100 per barrel through the rest of this year, transport companies and everybody else getting their supply through their services are bracing for the effects of higher fuel prices during the summer season, defined as the period from April 1st to September 30th.

Pricewise, let’s start with the regular grade gasoline retail prices, which averaged $2.93 per gallon last summer (of 2007) and are projected to average $3.54 per gallon during the current driving season.

The trucking business is going to be hit even harder as diesel fuel prices, which averaged $2.85 per gallon last summer, are projected to average $3.73 this summer.

In fact, the monthly average gasoline price at the pump is projected to peak at just over $3.60 per gallon in June while the monthly average diesel price is expected to peak at just over $3.90 per gallon in April.

These rather scary retail price projections reflect higher prices for the refiners’ average acquisition cost of crude oil, projected to average close to $97 per barrel, up from about $67 per barrel last summer which account for a hefty $30 price hike, per barrel. Furthermore, strong world distillate demand growth, especially in Europe and Asia, will do nothing to help the situation domestically, in America.

It is important to note, however, that even if the US national average monthly gasoline price comes to peak around $3.60 per gallon this summer, it’s entirely possible that prices, at some point, will cross the $4 per gallon threshold, severely hurting the transport industry and those who depend on it.

Countless consumers may be forced to reconsider driving their cars at all and the same kind of dilemma may happen for transport operators of all sizes as well as petroleum-based product manufacturers.

Transportation and logistics companies, especially in America, need to plan (and provision lots of “emergency money”) right now for this summer’s potential fuel price explosion.

Tags: gas, fuel, wti crude oil, oil, diesel, petroleum, pump, america, usa, transport, logistics, summer

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Back in the 1960’s, taking the plane was a “special event” where the passengers were treated like kings, from the moment they entered the departure airport to the moment they left the arrival one.

For instance, the meals that Air France served to it’s Montreal-Paris liaison passengers were prepared by the very prestigious Ritz-Carlton, on Sherbrooke Street, in Montreal. If you’ve flown this Air France lately, you know it’s not as glitzy anymore, even if you fly in the more expensive business class.

So things have changed in the airlines business and not everyone agrees it’s for the better.

Companies like Air Canada, after being sold to American interests, lost interest in the less traveled routes, such as Atlantic Canada, Quebec and Northern Canada, thus severely penalizing smaller communities which had, under Canadian management, been decently served — globalization, privatization and shareholder greed have apparently trumped over all basic consumer satisfaction obligations.

Air travel horror stories abound.

From the fact that it’s still complicated to deal with the airlines, to buy tickets or worse, to get customer service, to the continuous stream of mismanagement imbroglios (think about the luggage nightmares), many modern day airlines have dumbed down their service to the point where it’s not even close to what their marketing promises.

For air passengers, the bread and butter of the airlines, the multiplication of fees (for everything, really), the grossly exagerated security paranoia, the flight delays (with little or no compensation to the ticket holder), the arrogant attitude from the airline personnel and the plastic-like food served on flights (when anything is served, at all) taking the plane has become a pain more than a “generally pleasant experience”.

Regular air travelers are now even attempting to opt-out of today’s air travel madness by asking their companies to buy sophisticated “always-on” teleconferencing solutions to minimize the air commuting back and forth from the various company locations — in itself, this is a good thing but still, it’s precipitated by the fact that taking the plane, for many people, is not exactly a walk in the park, at least not anymore (because it used to be much easier, more expensive but easier nonetheless).

Some airlines specialize in high-yield market niches like the C-level business travel and that’s fine but their ads feature “great service” as a plus… shouldn’t that be a bare minimum for even the “regular” flights?

While the airline industry isn’t too bothered with customer satisfaction, a study published earlier this week by American universities reveal that over 25% of the flights were late, in 2007. Accordingly, the number of traveler complaints filed was up by a whopping 60% last year, making it the worst year for air traffic, in America, ever!

Even more preoccupying is the fact that experts in airline customer satisfaction predict the current situation will continue to worsen as the price of tickets, the fees and the barriers to free movement of travelers continue to mount while, at the very same time, the service level continues to drop.

This being said, let’s keep in mind that the current state of affairs could translate into a unique opportunity for venturing airline entrepreneurs with an astute sense for customer satisfaction.

Tags: airlines, air travel, planes, customer satisfaction, passengers, great service, tickets, fees, security

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The number of elderly drivers will skyrocket across the United States, over the next 20 years. That could pose significant problems for states concerned about highway safety, according to William Neikirk of the Chicago Tribune.

Slightly over half the states have taken steps to deal with safety problems posed by older drivers but there’s growing concern that as the Baby Boom population retires, states might have to do more to prevent additional age-related accidents.

The Government Accountability Office (GOA) cited the issue in a report, in April of 2007, as a looming problem that will mean more public expenditures to help the aging Boomers stay safe, on the roads.

For those who had lost count, here’s a reminder: the oldest Boomers will turn 61, this year.

“Older driver safety issues will become increasingly significant in the future because older adults represent the fastest-growing segment of the American population”, said the GAO. “By 2030, the number of licensed drivers aged 65 and older is expected to nearly double to about 57 million”.

Nifty ideas like multigenerational households, customized public transit, home office employment alternatives, intelligently integrated proximity services, elderly-friendly neighborhood designs, drivers retraining as well as safety-enhancing car technologies might help deal with this influx of Baby Boomers driving from point A to point B.

The states that still haven’t tackled this important demographics issue should look into it promptly before they’re overwhelmed with requests they don’t know how to properly handle.

Tags: baby boomers, elderly drivers, gao, states, population, driving

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