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

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

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

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

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

The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities and Minister responsible for Quebec, and Mr Michel Després, Quebec Minister of Transport and Minister responsible for the National Capital Region, are pleased to announce that their governments have committed to contributing $16.5 million to innovative public transit initiatives as part of the Urban Transportation Showcase Program (UTSP) in Gatineau, Montreal and Quebec City.

These contributions will help put electric buses into service in Old Quebec, and in Gatineau, implement various measures designed to make public transit more attractive and user-friendly in a corridor that will accommodate a combination of regular buses and hybrid diesel-electric buses. In Montreal, the Société de transport de Montréal is also planning to put hybrid buses into service.

“Canada’s New Government is proud to be working with all levels of government and transit authorities to encourage Canadians to incorporate public transit into their lifestyle. This will be a legacy for future generations,” said Minister Cannon. ” Today’s announcement is a step towards making public transit more energy-efficient and more attractive to riders.”

“These projects are perfectly in line with the objectives of Quebec’s Public Transit Policy, to which we have introduced an innovative component, and the Climate Change Policy, which were tabled in June 2006,” said Mr. Després. “The Public Transit Policy sets out the objective to increase public transit ridership by 8 per cent by 2012, and we are certain that we will meet this objective. I am also very pleased that one of these exceptionally innovative projects will be implemented in the National Capital Region.”

“Once again, Québec is demonstrating its avant-gardism in the area of new technology,” added the Honourable Josée Verner, federal Minister responsible for the Québec region. “This initiative highlights the importance of environmental issues to the people of Québec, and shows our Government’s commitment to implement solutions that will improve air quality and protect our environment.”

For Benoît Pelletier, Minister responsible for the Outaouais Region and MP for Chapleau, this announcement is yet another sign of the importance of the environment issue in the region. “The announcement of the hybrid bus in our city, and the Urban Transportation Showcase Program for all of Quebec and Canada emphasizes the importance of the environment on our daily lives. Residents of the Outaouais Region will have access to efficient, environmentally sound urban transportation services.”

In Gatineau and Montreal, the total cost of the projects is estimated at $19.7 million. The partners will contribute the following amounts:

• $6.4 million from the Quebec government;
• up to $4 million from the federal government;
• $2.2 million from the Société de transport de l’Outaouais (STO);
• $3.2 million from the Société de transport de Montréal (STM); and
• $3.9 million from the Société de financement des infrastructures locales, which is co-funded by the Governments of Canada and Quebec.

In Quebec City, the total cost of the project is estimated at $12.2 million. The partners will contribute the following amounts:

• $4.1 million over two years from the Quebec government;
• up to $2 million from the federal government; and
• $6.1 million from Quebec City.

Funding for these pilot projects is contingent on the signing of contribution agreements.

UTSP funds community showcase programs that highlight and assess ways of reducing transportation-related greenhouse gases. The program was developed following consultations with provincial, territorial and municipal partners, among others. Following a Request for Qualification issued across the country, eight municipalities were selected to present their strategies for facing these urban challenges.

Tags: bus transit, public transport, utsp, canada, quebec, gatineau, montreal, municipal

The Government of Canada, the Province of Ontario and the City of Sault Ste. Marie today marked the completion of the new transportation corridor leading to the Sault Ste. Marie International Bridge.

The Honourable Donna Cansfield, Ontario’s Transportation Minister and Sault Ste. Marie’s Mayor John Rowswell officially opened the transportation corridor. A total of $11.2 million was shared between the Government of Canada and the Province of Ontario. The City of Sault Ste. Marie also contributed $1.4 million for construction, as well as $6.3 million for the purchase of required property.

“Sault Ste. Marie is the 9th busiest Canada-United States crossing and Canada’s new government is proud that this route could finally be completed,” said Minister Cannon. ‘”This transportation corridor is designed to ease local congestion, which will reduce emissions into the air and improve access between Ontario and Michigan.”

“Sault Ste. Marie is an important northern gateway. More than 130,000 commercial trucks carry about $3.5 billion of goods across the International Bridge every year,” said Cansfield. “The new truck route will reduce delays and save commercial carriers about $1 million a year.”

The new truck route, which will also be shared by cars, was designed to ease local congestion and improve access to the International Bridge connecting Ontario and Michigan. The new transportation corridor connects Highway 17 with the International Bridge via the Second Line Road and Hudson Street, and provides a more direct connection to Interstate 75 in Michigan. Trucks will bypass Sault Ste. Marie’s downtown area. The new route will reduce travel time for trucks and eliminate several 90-degree turns, making roads safer for residents of Sault Ste. Marie.

“This long awaited transportation corridor moves trucks out of the downtown area, allows traffic on the west side of the city to move quickly to the city’s centre, and lets us immediately advance Sault Ste. Marie as a multimodal transportation hub,” said Mayor Rowswell.

In the 2006 Federal Budget, Canada’s new government has committed an unprecedented $16.5 billion over the next four years for provincial, territorial and municipal infrastructure, including $2.4 billion over the next five years from the Highways and Border Infrastructure Fund.

This year, the Government of Ontario is investing more than $1.4 billion in highway improvements through its five-year ReNew Ontario infrastructure investment plan. The Ontario government has also invested an additional $400 million under Move Ontario, which municipalities may use for improvements to municipal roads and bridges.

Transport companies from Canada, the USA but also as far as Asia and Europe will love the significant time gains these new infrastructures make possible.

Manufactures and consumers, on both sides of the border, can now expect faster border crossings and much more efficient transit alternatives.

Everybody agreed there was a congestion problem and in no small measure, it’s been properly addressed. Another job well done!

Tags: transportation corridor, sault ste. marie, ontario, canada, usa, transit

The US Department of Transportation (DOT) has a new Secretary of Transportation and it’s important to get to know this leading figure who is now heading all of the country’s most ambitions and much needed transportation projects.

Meet Ms Mary E. Peters, the new Secretary of Transportation, at the DOT:

“She was nominated by President George W. Bush on September 5, 2006, and confirmed by the US Senate as the 15th Secretary of Transportation on September 30, 2006, after spending more than two decades crafting solutions to our nation’s toughest transportation challenges.

Secretary Peters brings a unique perspective to her role as the nation’s transportation chief, having spent her career working on transportation issues in the private and public sectors, including leading both federal and state transportation agencies. This hands-on experience allows her to understand and appreciate the real-life aspects of planning, building and operating transportation systems on local, regional and state levels.

Over her 20-plus years in transportation, Secretary Peters has earned a solid reputation as an innovative problem solver, a force for safety and a strong advocate for effective use of taxpayer dollars. As Secretary of Transportation, she intends to use these same skills to tackle today’s most pressing challenges including fighting congestion across all modes of transportation, improving safety and addressing strains on traditional sources of transportation funding.

She is responsible for maintaining a safe, reliable and efficient transportation system, while leading an agency with almost 60,000 employees and a $61.6 billion budget that oversees air, maritime and surface transportation missions.

Prior to joining President Bush’s Cabinet, Peters worked in Phoenix, AZ, as the national director for transportation policy and consulting at HDR, Inc., a major engineering firm. She was responsible for building a management consulting practice and formulating public policy initiatives for the firm’s transportation program.

In 2001, the President asked Peters to lead the Federal Highway Administration (FHWA). As FHWA Administrator from 2001 to 2005, she placed special emphasis on finding new ways to invest in road and bridge construction, including innovative public-private partnerships that help build roads faster and at less expense. She also was a strong advocate for using new technology to reduce construction time, saving taxpayer money and resulting in safer, longer-lasting roads and highways.

From 1985 to 2001, she served in the Arizona Department of Transportation (ADOT). During her tenure, Peters worked her way up through the ranks as a contract administrator, deputy director for administration, and deputy director. In 1998, then-Governor Jane Hull appointed her director of the agency. While in office, she was recognized as the Most Influential Person in Arizona Transportation by the Arizona Business Journal.

Secretary Peters received the 2004 National Woman of the Year Award from the Women’s Transportation Seminar, a national organization of transportation professionals. She chaired the Standing Committee on Planning and the Asset Management Task Force for the American Association of State Highway Officials (AASHTO), and was a member of the AASHTO 2001 Reauthorization Steering Committee.”

NavSite.com would like to -officially- congratulate Ms Peters on her new appointment while also wishing her and her team lots of success!

Tags: mary e. peters, dot, appointment, transportation projects

Naturally similar to the monorail, the innovative FlyWay urban transit system can move people and cargo along fixed beamed aerial pathways.

While Siemens had perfected previous concepts, a Swedish company has taken interest in the idea and pushed the engineering of this alternative transport method to the next level.

It’s a new way to move small groups of people in all sorts of areas, including the different Olympic settings, in Torino.

This innovative unmanned transit system is called the MiniMetro.