Economy

World Economies

It was just reported that China has passed Japan to become the world’s second-largest economy behind the United States. The Chinese economy represents a value of $1.33 trillion. To put this in perspective, the United States is valued at $14 trillion.

So, who moves and shakes the world? You guessed it — the United States, not China. When we sneeze, the rest of the world catches a cold. I think this is an interesting point when you look at the big picture and see how truly large the United States is in comparison to the rest of the world.

The European Union, if it were a country (and it’s not), would be valued slightly more than the United States. I think, however, that the events of the summer still prove that the EU is just an association tied more into a common currency than anything else.

So, threats of China’s world domination in the near term are untrue, but who knows what the future may bring!

– Fran Gallagher, publisher and CEO

Checking Out Hangar 9

I must admit that I’ve never spent a lot of time considering how airlines develop their cabin configurations and seat designs. Ninety-nine percent of the time, I fly in economy class, and my impression is that the only thing most airlines consider in designing for that class is how many seats they can squeeze in before their passengers consider flying some other airline. I was most impressed and interested, then, with what I learned on a visit to Air New Zealand‘s Hangar 9 in downtown Auckland, where full-scale mock-ups of the airline’s new seat designs were on display.

Before we had a chance to try out the new business premium, premium economy and economy skycouch designs, Ed Sims, group general manager of International Air New Zealand, gave us a short but fascinating brief on the process ANZ went through in seeking to meet its goal of creating the world’s best long-haul flight experience. The airline was the first to purchase the Boeing Dreamliner but didn’t like any of Boeing’s seat designs offered in 2006. (In a word, he stated they were “all dreadful.” No mincing words here!) ANZ received approval from Boeing to build its own showroom/mock-up in Auckland where the airline could design and develop all-new concepts for its new planes. By the way, they scrapped first class in 2005, reasoning that providing an excellent business-class experience made more sense economically for both the airline and the passenger than adding an additional tier for much more money but with a barely appreciable difference in the service and experience.

Sims also noted that the company, while being the 36th-largest airline in the world, seeks to be the first in innovations. Competing in its region with airlines which he readily admitted are “outstanding” and regular award-winners in the travel industry, ANZ’s focus is on providing service which is genuine rather than ”robotic” and providing cabins which meet the needs of all its passengers, from families to business travelers. The first step in the process was to bring in Ideo, an American global design and innovation consulting firm. They began by developing a clear model of their passenger types, focusing on the reasons people travel (rather than the usual demographic parameters of age and income) to identify their needs. One surprise? They used The Simpsons characters as a shorthand means of identifying these passenger types – a highly sociable Marge (comprising about 40 percent of travelers) as opposed to “cocooners” and those who wish to be left alone, like a Mo or Mr. Burns (60 percent). From there, a whole slew of ideas were presented, actors were hired to test out an assortment of new configurations in simulated long-haul flights, and these were then whittled down to a select few to be incorporated as early as this coming November in a number of 777-300 jetliners.

A few ideas that didn’t make the cut? Bunk beds, staggered seating and clustered seats. Those which you’ll be seeing soon: In economy, the new skycouch (dubbed “cuddle class” by the media) in which three economy seats can be transformed into a flexible space used for stretching out, corraling squirmy toddlers with a need for some play space or putting an infant to bed. The entertainment system has been upgraded with multiplayer video games, a kids’ section and live news feeds from the New Zealand Herald. In premium economy, the new Spaceseat works like a wall-hugging recliner so that the person in front of you won’t be reclining into your space. Business Premier offers a thicker mattress and soft duvet for its fully lie-flat bed, and the ability to order meals, beverages or snacks from a touch-screen menu whenever the mood strikes. And for the crew, an additional galley, special new convection ovens and one crew member designated solely for food prep translates to better, more efficient passenger service.

All in all, this was one of the most eye-opening and entertaining field trips I’ve ever experienced. Seeing how seriously Air New Zealand takes thinking outside of the box and delivering a unique and comfortable travel experience to all of its passengers makes me eager to fly them again soon and try out those new features in the air.

– Patty Vanikiotis, proofreader

The Power of Travel

Are delays problematic? Or opportunities gained? As Fran noted in his blog, I could not help but wonder what I would do if I was one of the travelers stranded as a result of the volcanic ash. I have to believe if (and this is a big if) I had some flexibility as to when I had to be home, I would find an alternative port to disembark from and make an adventure out of the change of plans.

While I find the power to imagine exciting, the end result of all the canceled flights is another travesty for the travel and tourism industry. I heard on the radio that New York City restaurants, transportation and other related industries are losing a combined $250 million a day in revenue as a result of the canceled flights. Not to mention the astronomical losses to the airlines per day, ranging anywhere from $15-30 million per day, both for the major European airlines and for various carriers around the world.

Anyone who doesn’t believe in the power of travel and what it can do to stimulate or hurt an economy only needs to look at this past week as proof. We need to keep planes full and airports busy to help local economies and keep jobs in the marketplace. Hopefully, the test flights that showed no sign of damage from the volcanic ash will allow flight schedules to return to full capacity safely sooner rather than later.

– Alex Young, vice president and associate publisher

St. Vincent’s Hospital

Last weekend was an ideal time to walk around New York City’s West Village. The weather was perfect and people were happy. I was with a dear friend who is a doctor in Philadelphia. She did her first year of residency at St. Vincent’s Hospital in the Village. This is the same St. Vincent’s that is one of the oldest in NYC. The same St. Vincent’s that is the last Catholic hospital in the city and the one that announced last week that it will be closing its doors long after first opening them in 1809.

This came as a huge disappointment to the community and especially to my friend, as many of her colleagues still work at the hospital. I was saddened to hear the news when it first broke, but I was not nearly as devastated as I was after hearing my friend’s additional points on the impact the loss of the hospital will have on the city.

Emergency ambulances have already been diverted away from St. Vincent’s to other city hospitals. The problem? Other city hospitals are maybe only 15 minutes away; however, with normal city traffic during the night and day (not to mention rush hour), it will take ambulances more than 40 minutes to reach them. The result: the immeasurable amount of lives lost in the balance will be staggering.

St. Vincent’s is closing because it is $700 million in debt. That’s no small fee. It is no secret that the hospital took over other hospitals in recent years, which added to its debt. It had also been poorly managed. Yet, with all the government bailouts going to poorly managed entities in the past year, why not a bailout to a life-saving hospital? Hundreds of jobs will be lost. Doctors can be placed elsewhere with minimal issue, but what about janitors, social workers and other employees? I hope in the end the space will be salvaged for some medical purposes.

– Alex Young, vice president and associate publisher