Hemingway’s Chrysler to be restored in Cuba

May 6, 2011, 8:46 am

Christopher P. Baker

On March 26, 2011, I posted to this blog about speculation that Ernest Hemingway ’s long-lost Chrysler had at last been found in Cuba. See ‘Has Hemingway’s Chrysler been found in Cuba?’

As I mentioned, Bill Greffin, a former board member of the Ernest Hemingway Foundation, in Oak Park, Illinois, contacted me and asked me to confirm its existence and to try to document as much evidence as possible during my April 3-14 visit to Cuba.

Enthused, I made sleuthing this a priority. First visit was to the Museo de Aotomoviles, where my acquaintance, the director Eduardo Monsejo welcomed me. If anyone knows it’s whereabouts, I thought, it’s Eduardo, who during dinner together in 2009 had informed me that he’d seen the car, which he described as “hidden away” and as being in restorable condition.

Alas, Eduardo informed me that he didn’t know the car’s current whereabouts.

Determined to get to the bottom of things, I headed out to the Museo Ernest Hemingway, at the Nobel Prize-winning author’s former home, Finca Vigía, in the hilltop village of San Francisco de Paula, on the southeast outskirts of Havana.

I was amazed to find Ada Rosa, the amiable director of the beautifully restored home and museum, already awaiting my visit. “We knew you were coming. We read your blog,” she informed me. She motioned for me to sit. A freshly-brewed taza (cup) of delicious Cuban coffee came. And Ada then proceeded to document proof that the car – which I could see sitting on cement blocks under a tarp nearby – actually belonged to Hemingway. (The vehicle was manufactured on 18 February 1955 and shipped to Miami ten days later for deliver to Comiac Havana, Chrysler’s distributor in Cuba.)

Although Ada informed me that there is no documentation showing that Hemingway registered the 1955 Chrysler New Yorker DeLuxe convertible coupe in Cuba, she showed me the insurance policy that he took out, with the vehicle’s registration number. She then showed me the placa (the plate unique to each vehicle), with the data recorded by Chrysler about the specific vehicle in question, including its chassis and engine numbers. I photographed both.

Ada then ran through the documentation used to trace the vehicle to Hemingway, beginning with the 1961 legal paperwork from Cuba’s National Registry of Vehicles showing the Chrysler as belonging to Hemingway’s doctor (1961-1973), Dr. José Luis Herrera Sotalongo, to whom Hemingway apparently bequeathed the vehicle; then to his son, José Herrera Bella (1973-78); and a long list of connected individuals that ends with the last known owner, Leopoldo Nuñez Gutiérrez, in whose garage the vehicle was found.

I was then directed to the car, which arrived at the museum in December, 2010. The tarp was pulled off. And I gasped with dismay at the Chrysler’s deteriorated condition.

The original two-tone Navajo Orange with Desert Sand color scheme was no longer visible beneath a shoddy white on top of blood-red paint-job. The original interior trim of Navajo Orange leather with beige leather inserts was lost forever, eaten away to virtually nothing by mildew and the stresses of time. So, too, the Ivory vinyl convertible top. And the chassis was rotten away completely, so that I stared down at the tarmac beneath the car. Even the 250-HP C68 Firepower V8 engine looked beaten up.

“I want to exhibit the car when it is restored,” said Ada. “A Cuban expert will be in charge of restoration,” which will be a 100 percent Cuban effort intended to restore the treasured vehicle to running condition.

Having written a coffee-table book, Cuba Classics: A Celebration of Vintage American Automobiles, I was well aware of the effort this would take. Aware, also, of the amazing skill and ingenuity of Cuban automotive restorers. I have faith.

Ada ran through a list of original parts that would be required, such as whitewall tires and a mechanical system for the convertible roof. I passed these on to Bill Greffin, along with a note that the Museo Ernest Hemingway also seeks a $100,000 donation to help restore Finca Vigía’s former garage as an exhibition center for the precious Chrysler, other memorabilia related to Hemingway’s cars and automotive life in Cuba, plus six other cars that ‘Papa’ owned in Cuba, once they’re tracked down and acquired.

Apparently the restoration work will begin this month, with a rather ambitious three-month goal. More likely a full year will be required, not least to track down some of the required replacement parts.

I can’t wait to see the car once restoration is finished.

To Ada, her staff, and the restorers… suerte! Good luck!

Learn more about Christopher P. Baker.

For further information about travel in Cuba, buy Moon Cuba

For further information on Havana, buy Moon Spotlight Havana.

Buy an autographed hardback copy of Mi Moto Fidel: Motorcycling Through Castro’s Cuba direct from the author.

Looking for the perfect coffee-table book gift item? Buy an autographed hardback copy of Cuba Classics: A Celebration of Vintage American Automobiles direct from the author.

Disclosure: I occasionally accept free or discounted travel when it coincides with my editorial goals. However, my opinion is never for sale. The opinions you see in Cuba & Costa Rica Journal are my unbiased reflection of the good, the bad, and the ugly.

Copyright © Christopher P. Baker

Travel to Cuba opens to every U.S. citizen

May 1, 2011, 8:45 am

Christopher P. Baker

Pack your bags! Finally, its time to go to Cuba.

On January 31, I posted about how the Obama administration restored the “people-to-people” category of permissible and “purposeful” travel to Cuba, along with relaxing the regulations that have also long restricted educational and religious travel. The President’s directive was intended to “increase people-to-people contact; support civil society in Cuba; enhance the free flow of information.”

Last week, the long-awaited official guidelines were finally published spelling out the exact details of who can and can’t go to Cuba, and under what circumstances.

In essence, for the first time since the Clinton administration, virtually anyone with a serious rationale with an interest in learning can now find a way to visit Cuba legally.

The publication of the new regulations on April 21 coincided with a U.S. consumer survey, released on April 26, that found that exactly three-quarters of U.S. citizens would visit Cuba if given the chance to travel freely by Uncle Sam.

Obama’s executive changes touch on four of the twelve categories of travel codified in the 2000 Cuba Trade Sanctions Reform and Export Enhancement Act and which the the executive labels “purposeful” (religious travel, academic travel, journalist travel and “people-to-people” travel)

For example, academics and students can now go to Cuba under a ‘general license,’ which is a pre-authorization to travel and requires no written approval from OFAC. Any accredited college can now “sponsor travel to Cuba for course work for academic credit under a general license.”

For example, colleges can offer one-week or longer intercession, spring break or summer programs in Cuba for any academic course, including Spanish language study, that provide credit toward students’ graduation (including those from other schools). Students can even participate in educational exchanges sponsored by an accredited academic institution that is not their own. Each student, teacher, adjunct or full or part-time staff simply has to “carry a letter on official letterhead, signed by a designated representative of the sponsoring U.S. academic institution.” An “adjunct” can be anyone appointed by the academic institution to offer tuition on a part-time basis.

More pertinent to most U.S. residents is the “people-to-people” provision, which was eliminated by President Bush in 2004. “People-to-people” travel is defined as “educational exchanges not involving academic study pursuant to a degree program when those exchanges take place under the auspices of an organization that sponsors and organizes such programs to promote people-to-people contact.” Tour companies, alumni associations, etc. can now apply for a specific license to offer “people-to-people” exchanges spanning the spectrum of possibilities. For example, a minor league baseball team can apply for a license to visit Cuba to play against Cuban club teams. A photographic club can apply for a license to interact with Cuban photographers. And motorcycle enthusiasts can arrange tours where they get together with Cuba’s harlistas (owners of Harley-Davidsons). Birders. Bicyclists. Botanists. You name it. In theory it’s now licensable. The only requirement is that it has an “educational exchange.”

A specific license for people-to-people programs can be issued for multiple trips to Cuba. Applicants should submit a specific sample itinerary, avoiding the use of the word “tour” or “tour leader”! Much preferred would be an “educational exchange program” and “educational leader.” All travel arrangements would be handled by a separate Travel Service Provider (TSP), authorized by OFAC to make and pay for travel arrangements on behalf of specific (or general) license holders. These are listed in Moon Cuba.

The April 21 directive also coincided with a forum at the Commonwealth Club, in San Francisco, that I attended on April 18, in which Cuba specialists Wayne Smith (former head of the U.S. Interests Section, in Havana), Elizabeth Newhouse (Center for International Policy), and attorney Robert Muse outlined the prospects for tour companies, academic institutions, and other travel providers seeking to offer group tours under the new “people-to-people” guidelines.

While the window, but not the door, has been widened, there is no indication of how expansive the Office of Foreign Assets Control (OFAC, the agency of the U.S. Treasury Department that oversees the ban on trade with Cuba, and therefore on travel) will be in granting licenses under the people-to-people provision. As an example, on April 18 OFAC denied a license to Cuba travel advocate John McAuliff, of the Fund for Reconciliation & Development, for a traditional Irish music band made up of U.S. residents wishing to attend the Festival of Music and Celtic Traditions, in Havana.

Nonetheless, the audience on April 18 included several owners and/or executive heads of key travel companies and alumni associations, etc. As a result, I’ve since been invited to lead several tours to Cuba in 2011. Stay tuned to this blog for further news.

Learn more about Christopher P. Baker.

For further information about travel in Cuba, buy Moon Cuba

For further information on Havana, buy Moon Spotlight Havana.

Buy an autographed hardback copy of Mi Moto Fidel: Motorcycling Through Castro’s Cuba direct from the author.

Looking for the perfect coffee-table book gift item? Buy an autographed hardback copy of Cuba Classics: A Celebration of Vintage American Automobiles direct from the author.

Disclosure: I occasionally accept free or discounted travel when it coincides with my editorial goals. However, my opinion is never for sale. The opinions you see in Cuba & Costa Rica Journal are my unbiased reflection of the good, the bad, and the ugly.

Copyright © Christopher P. Baker

Scams to beware in Havana, Cuba

April 17, 2011, 12:20 pm

Christopher P. Baker

I returned last Friday from eight days in Havana. As expected, I had a fantastic time escorting a tour for Santa Fe Photographic Workshops. But, as always, I experienced a dizzying number of scams at every turn.

Life for Cubans is hard, and almost everyone needs access to pesos convertibles (CUC, the equivalent of hard currency), used for buying anything of value in Cuba. Since Cubans get paid a pittance (the average monthly wage is about $15 equivalent) in virtually worthless pesos (which buys virtually nothing), as opposed to pesos convertibles, Cubans hustle to get access to pesos convertibles through interactions with tourists in Cuba (others are lucky enough to receive remittances sent from family abroad).

So far so good. The problem, however, is that far too many Cubans who interact with tourists haven’t learned to leave well enough alone. Put less diplomatically: they’re intent on ripping you off.

Here are three classics examples from my recent week-long trip:

1) Bicitaxis
These crudely constructed, two-passenger pedal-cabs roam the streets of Habana Vieja (old Havana) and Centro Habana. They’re typically pedaled by the type of lesser-educated Cubans who would otherwise be hustling tourists as jiniteros (hustlers). A few are honest. But my experience on recent visits suggests that the majority are short on scuples.

For example: one night our group had an evening engagement at Fototeca, the Cuban state photo agency, on Plaza Vieja. We decided to take bicitaxis from our hotel, the Hotel Parque Central. Two person to each bicitaxi.

We agree a fare of CUC3 per person – a pretty nice reward (equivalent to almost a week’s salary at the state peso wage rate) for the five-minute ride.

Inevitably, the various bicitaxis got separated en route and I arrived with another bicitaxi. The two bicitaxis pulled up a block short of Plaza Vieja, where they are not allowed. Inevitably, the bicitaxi owners demanded CUC20 per cab. A row ensued as I refused to pay more than the agreed upon CUC3.

It’s an experience that has repeated itself several times during recent visits.

2) Taxis
Tourist taxi drivers can be equally dishonest, as I discovered when I took two workshop participants on a trip to Cojímar, the coastal village made famous by Ernest Hemingway, who berthed his sportfishing boat, the Pilar, here.

We planned on a triangular tour to Cojímar, then inland to the Museo Ernest Hemingway, and returning via the district of Luyano to visit Sergio Morales, a Harley-Davidson mechanic.

We agreed a fare of CUC50 for the route, plus CUC10 per hour for periods when the taxi was waiting.

All went to plan. We returned. The taxi driver did his calculation. And hit us up for CUC190! His calculation was a total mind-twister that included seven hours waiting, plus miscellaneous charges that left me scratching my head. In fact, the taxi waiting period added up to a total of about four hours.

Again, an argument ensued. I did my own calculations, stuck the correct CUC90 in his hands, and walked away.

Who needs this headache?

3) Currency exchange
Time to check out of the Hotel Parque Central. My bill reads CUC156.30. I’m low on efectivo (cash) in CUC, and therefore ask if I can pay in dollar bills.

As I explained in my April 3 blog post, Cuba’s convertible peso at par with U.S. dollar, a ten percent tax is charged for changing U.S. dollars into pesos convertibles, so I expected to take a hit.

The reception did a calculation, then told me the bill in U.S. dollars would be $190. I’m pretty bad at math, but I did know that the receptionist had made an “error.” I asked her to give me a written conversion. Lo and behold… the bill was now $171.93.

Caveat emptor in Cuba!

Learn more about Christopher P. Baker.

For further information about travel in Cuba, buy Moon Cuba

For further information on Havana, buy Moon Spotlight Havana.

Buy an autographed hardback copy of Mi Moto Fidel: Motorcycling Through Castro’s Cuba direct from the author.

Looking for the perfect coffee-table book gift item? Buy an autographed hardback copy of Cuba Classics: A Celebration of Vintage American Automobiles direct from the author.

Disclosure: I occasionally accept free or discounted travel when it coincides with my editorial goals. However, my opinion is never for sale. The opinions you see in Cuba & Costa Rica Journal are my unbiased reflection of the good, the bad, and the ugly.

Copyright © Christopher P. Baker

Cuban-American terrorist Luis Posada Carriles proclaimed innocent

April 9, 2011, 2:44 pm

Christopher P. Baker

Three days ago I arrived in Havana to lead a group tour for Santa Fe Photographic Workshops. I always feel a great satisfaction arriving in Cuba, where yesterday I spent long hours walking the Malecón and chatting while seated in rocking chairs – a quintessential Cuban pastime – with my “familia cubana.” My mood was buoyant.

Alas, today I checked my emails and found the deflating and dispiriting (and unbelievable) news that the self-admitted terrorist Luis Posada Carriles has been acquitted on all federal charges in a trial related to his illegal entry into the United States in 2005.

Words cannot express my anger and frustration. In short, it makes a mockery of the concept of so-called U.S. justice and the concept of fairness. It’s not often I post a purely political commentary on my blog, but the result of this trial deserves as much press as it can get. Plus, it has the potential to detrimentally affect efforts to establish a thaw in U.S.-Cuba relations, not least in regard to existing travel restrictions.

For readers not familiar with the attempt to bring Luis Posada Carriles to justice, I’ll let today’s post from the Cuban Central website do the talking:

“If champagne corks are popping in some quarters in Miami, faces are glistening with tears in households from Havana to Montreal. It is in those cities where many of the victims and survivors of his terrorist activities live, where hopes for America’s justice system, despite decades of bitter experience, continued to be expressed.

The evidence seemed incontrovertible especially against someone so brazen. He had, after all, confessed to the bombings in Havana [hotels] that took the life of Fabio Di Celmo, on audio tape. He had, after all, snuck into the United States and then called a press conference to announce that he arrived. He had, after all, denied these things to federal agents, with hope of remaining here in America.

We cannot imagine how crushing this news is to Livio Di Celmo whose brother was killed in 1997. He was outraged that Posada was being prosecuted for perjury and obstruction rather than the violent act that had taken the life of his brother who was, as Posada is heard to say on tapes played in court without a hint of remorse, “in the wrong place at the wrong time.” Now the Di Celmo family must see Posada – prosecuted only for immigration violations – go free.

Nor can we fully appreciate how this will go down in Cuba, which continues to be labeled by our government as a state sponsor of terrorism.

The verdict puts our country in a terrible position. As Peter Kornbluh of the National Security Archive observed this afternoon, “This is a disaster, for the U.S. legal system, the credibility of the U.S. campaign to fight international terrorism, and for U.S.-Cuban relations. Most of all it is an insult to the families of Posada’s many victims who hoped this trial would afford them a small modicum of justice for the loved ones lost to his acts of terrorism.”

Kornbluh, who has documented evidence against Posada over the last decade, said, “Having presented a comprehensive case that Posada was involved in acts of international terrorism the U.S. government must now exercise the post 9/11 laws it has to deal with situations like these.”

This would be a good step. We can only hope the Department of Justice is listening.”

Posada (a Cuban American and former CIA agent) was convicted in Venezuela for the bombing of a Cubana airliner on October 6, 1976, in which all 83 passengers were killed. He escaped from prison and, although unrepentant of his terrorist crime, was later exonerated by President George H. Bush.

In short, this puts the United States government in the position of actively supporting a known terrorist.

The specific charges of the recent trial, held in Texas (and seemingly proved beyond a shadow of a doubt by the prosecution), were for perjury, fraud, and obstruction of justice relating to Posada’s illegal entry into the United States.

Spirit Airlines’ Right to Charge Ancillary Fees

24 hours into the brave new world of carry-on baggage fees...

Posted By:  James S. Craven – August 2, 2010

OK, so I’ll probably lose most of my followers, but here I go anyway…

I understand where Spirit Airlines is coming from with their ancillary fees (including the new carry-on baggage fee) and I agree with them.  OK, so I said it!

Now, I don’t like fees any more than the next guy but I choose to live in a world governed by the “invisible hand” of the free market.  If I don’t like the ancillary fees Spirit Airlines charges, then I can simply “vote with my wallet” and choose another carrier.  There is not a single set of city pairs in which Spirit operates as a monopoly.  I also believe in freedom of choice, and so don’t feel it is in my prerogative to prevent others from flying on a carrier of their choice just because I don’t like the carrier’s revenue model.  And who likes paying for things that they don’t use?  I don’t!  If I’m on a one-day business trip with no luggage, why should I pay the same rate as the guy with two bags on a leisure trip?  If I don’t plan to eat the inedible airline food anyway, why should I pay for it?  Not that there is airline food these days…

So why the great public outcry over Spirit Airlines and their ancillary fees?

I think the push-back is not so much about the fees themselves, but about transparency — the inability to compare one carrier’s bundled airfare (fare + fees) to another’s and the customer’s sense of “bait & switch.”

Since ancillary fees were first added to ticket prices, there have been some improvements.  Consumers have been conditioned to know that the $9.00 advertised fare is far from what they will end up paying for their flight.  Carriers are also doing a better job of stating additional fees on their websites during the booking process, before the customer’s credit card is charged.  This transparency is good, but the process is still too time-consuming when comparison shopping airfares. It is sheer drudgery to determine which carrier offers the best total unbundled fare. What the flying public needs, is an easy way to compare one carrier’s bundled airfare against another’s — a way to compare “apples to apples” quickly and easily.  The GDS, OTA or any company (Google/ITA) that comes up with that “killer app” will surely move market share to their booking site and win praise from the flying public!

Spirit Airlines’ carry-on bag fee starts Sunday

Bags bound for overhead bin incurs $30 fee if paid in advance; paying at gate kicks fee up to $45

Spirit Airlines passengers may want to get to the airport a little earlier than normal Sunday as a new charge for carry-on bags takes effect.

by The Associated Press

The low-fare airline sparked controversy in April when it announced plans to charge for carry-on items. Passengers who pay in advance, either online or by phone, have to fork over $30. For those who don’t pay before arriving at the boarding gate, the fee jumps to $45.

Members of Spirit’s special fare club only pay $20 for a carry-on. And any bag small enough to fit under a seat flies for free.

The privately held Spirit is based in Miramar, Fla. and has about 150 daily flights. Most carry leisure travelers from big airports in the U.S. through Fort Lauderdale and on to Latin America.

Spirit says extra employees will be on hand at airports to assist passengers. The airline is expecting to handle 23,000 passengers Sunday, including 5,800 in Fort Lauderdale.

Spirit spokeswoman Misty Pinson says the airline wants to ensure an easy transition for customers and employees. “We’ll have to see how things go over the next week or so,” she said.

Spirit is the first airline to charge passengers for carry-on items. Travelers have grudingly paid the fees for checked baggage that most airlines, including Spirit, have been charging for the past two years. But Spirit’s plan to charge for carry-ons really touched a nerve.

New York Sen. Charles Schumer has extractd a promise from five of the nation’s biggest airlines, including American and Delta, that they wouldn’t charge for carry-on bags.

Spirit reduced its lowest fares by an average of about $40 ahead of the new carry-on fees. The average one-way base fare for August is $63, Pinson said. She said passengers have been paying the carry-on fee in advance but she did not have specific numbers.

A larger bag destined for the overhead bin will incur a $30 fee, as long as the passenger pays in advance. Paying at the gate brings the fee up to $45.

Umbrellas, camera bags, strollers and car seats are among the items that will remain free of charge.

Most airlines have found fees for extras to be lucrative. Besides checked bags, travelers have been paying extra for things like more legroom and refreshments.

A recent study by consulting firm IdeaWorks showed that worldwide, carriers took in $13.5 billion from fees in 2009, a 43 percent jump in just one year.

Edsel and Kaiser Sightings in Cuba

By Christopher P. Baker

Created 07/27/2010 – 07:53

[1]

When I shot the image of this 1958 Edsel Corsair taking a bath in the Río Táyaba, outside the colonial town of Trinidad [2], I’d pretty much stopped getting excited about seeing Edsels. They’re a dime a dozen in Cuba [3]!

When was the last time you saw one rolling down the byways of your local town?

Launched on the eve of Castro’s coming to power [4], the Edsel [5] had Teletouch Drive transmission pushbuttons in the steering wheel, a cyclops-eye speedometer, and “enough flashing lights… to satisfy pinball machine addicts,” thought Consumer Reports.

Its radical styling, however, drew as many guffaws as plaudits. A chiropodist remaked that the Edsel’s fins resembled ingrown toenails. And its bold new horse-collar grill became a countrywide joke (even Madison Avenue promoted the Edsel for its “vaginal looks,” while its designer, Roy Brown, claimed it represented “modern vertical thrust”).

“The Edsel look is here to stay,” brayed the ads. But Ford’s great hope for the mid-price market was launched during the 1958 recession. Alas, the flamboyant folly fitted well with the last hurrah of Havana’s heyday and, like Batista’s regime, by year’s end was already on the ropes. By 1959, when production was discontinued, only 81,446 had been made.

Nonetheless, I’ve photographed at least a dozen Edsels in Cuba.

And Kaisers? Heck, I’m English. I didn’t even know what a Kaiser [6] was until I hit Cuba to photograph cars for my coffee-table book, Cuba Classics: A Celebration of Vintage American Automobiles [7].

In all, I photographed six Kaisers that I can remember. I saw plenty more. Oddly enough, I was photographing Alain Lossano’s 1951 Kaiser Traveler in the Camilo Cienfuegos suburb of Havana [8] in 2001 when a MININT official stopped me and sent me on my way.

The Kaiser-Frazer Corporation was formed in 1945 as the last attempt by an independent company to challenge the Detroit dominance of the popular market. Although their cars were ahead of their time (they included a pop-out front window, a padded dash with recessed instrument panel, and other safety features that the federal government would eventually mandate), the company was undercapitalized and eventually succumbed to the Big Guns’ sales blitz.

Still, Kaiser shipped hundreds of Traveler and Manhattan sedans across the Florida Straits, where most are still running down the highways to the rhythm of the rhumba on the radio.

For further information about travel in Cuba, buy Moon Cuba [9]

For further information on Havana, buy Moon Spotlight Havana [10].

Disclosure: I occasionally accept free or discounted travel when it coincides with my editorial goals. However, my opinion is never for sale. The opinions you see in Cuba & Costa Rica Journal are my unbiased reflection of the good, the bad, and the ugly.

Copyright © Christopher P. Baker [11]

Southwest Reports $112 Million Net Income for Second Quarter

Published on: July 30, 2010

Southwest Airlines reported second quarter 2010 net income of $112 million, or $.15 per diluted share, compared to net income of $91 million, or $.12 per diluted share, for second quarter 2009. Results for both years included special items related to non-cash, mark-to-market, and other items associated with a portion of the company’s fuel hedge portfolio. Excluding special items for both periods, second quarter 2010 net income was $216 million, or $0.29 per diluted share, compared to $59 million, or $0.08 per diluted share, for second quarter 2009. The second quarter 2010 net income, excluding special items, of $0.29 per diluted share exceeded Thomson’s First Call mean estimate of $0.27 per diluted share.

Total operating revenues for second quarter 2010 increased 21.1 percent to $3.2 billion, compared to $2.6 billion for second quarter 2009. Total second quarter 2010 operating expenses were $2.8 billion, compared to $2.5 billion in second quarter 2009. Operating income for second quarter 2010 was $363 million, compared to $123 million in second quarter 2009. Excluding special items, operating income was $414 million in second quarter 2010, compared to $183 million for the same period last year. Second quarter 2010 operating margin was 11.5 percent, and excluding special items was 13.1 percent.

“We are extremely pleased with our second quarter results,” said Gary Kelly, chairman of the board, president, and CEO. “Second quarter net income (excluding special items) dramatically improved over second quarter last year, largely due to another record revenue performance. Total operating revenues reached an all-time quarterly record of $3.2 billion, a year-over-year increase of 21 percent. On a unit basis, our revenues increased approximately 22 percent, compared to second quarter last year, also an all-time quarterly record. Second quarter pretax margin (excluding special items) was 11 percent. Our second quarter 2010 earnings performance (excluding special items) was second-best in our history, behind second quarter 2006. This was, indeed, a strong performance, despite significantly higher fuel prices and other cost pressures.”

Kelly said Southwest had made excellent progress toward generating revenue levels sufficient to reach its 15 percent pretax return on invested capital target. “Although business demand has not fully recovered, it has strengthened, and consumer travel demand is robust,” he said. “We experienced record traffic levels during the quarter, despite flat year-over-year capacity, demonstrating a continuing and significant market share shift to Southwest, in part due to our unique and successful ‘Bags Fly Free’ policy. Further, we led the industry with our year-over-year domestic passenger revenue and corresponding unit revenue performance.”

Kelly said Southwest has built considerable, industry-leading revenue momentum that began in second half 2009. “We see no signs that the momentum will stall in second half 2010,” he said. “Based on traffic and revenue trends to date, we expect strong year-over-year unit revenue growth in third quarter 2010. Our year-over-year growth rates will face more and more difficult comparisons, of course, due to the rapid revenue recovery that began at Southwest a year ago.”

Second quarter 2010 unit costs, excluding special items, increased 13.6 percent from second quarter 2009, largely due to a 32.4 percent increase in economic fuel costs to $2.37 per gallon. Second quarter 2010 economic fuel costs included $39 million in unfavorable cash settlements for fuel derivative contracts. As of July 26, the company had derivative contracts in place for approximately 55 percent of its estimated third quarter 2010 fuel consumption at varying crude-equivalent prices up to approximately $100 per barrel; approximately 30 percent if market prices settle in the $100 to $120 per barrel range; and approximately 45 percent if market prices exceed $120 per barrel. Based on this fuel hedge position and market prices (as of July 26th), the company estimates economic fuel costs, including fuel taxes, for third quarter 2010 will be in the $2.40 per gallon range. For more information, visit www.southwest.com.

Apple tries to patent travel, hotel, shopping apps

by Erica Ogg

CNET

In its App Store, Apple provides a platform for third-party developers to design and sell mobile applications. But the company also appears to have its eye on patenting a few key types of apps.

Apple applied for a patent on a travel-booking mobile app.

(Credit: USPTO/Screenshot by Erica Ogg/CNET)

Unwired View unearthed three patent applications filed on Apple’s behalf that cover travel- and shopping-related apps. One for travel booking, one for hotel services, and another for high-end fashion retail. All three were applied for between October and December, but were published by the US Patent and Trademark Office on Thursday.

The first, a travel-booking app, is designed to reserve travel plans, check in to flights, and deliver airport and flight info. As described, the app appears to need some sort of integration into an airline’s own system since it proposes to request in-flight services and provide arrival notification to people waiting to pick up the traveler. It also would show nearby restaurant and entertainment options, and detailed information about the location the person is traveling to.

The hotel services app would also require some sort of integration to a hotel’s information system. A person using the app could request services before arriving at the hotel, check in, check out, order room service or pay-per-view movies. It also would appear to put some hotel concierges out of work: it’s designed to be its own concierge service, making local restaurant reservations or buying tickets to local events.

The last one isn’t travel-related, but it aims to provide similar types of remote services: the user of this app would get information about promotional and invite-only high-end fashion events, and enable him or her to browse and buy clothes through the app, see what’s in stock, and review fashion outlets. There’s also a recommendation feature based on personal clothing preferences.

It’s important to keep in mind that these are just patent applications. Lots of tech companies, including Apple, apply for patents just in case they might want to pursue a certain technology in the future. It’s not necessarily an indication that it’s something Apple is working on at the moment.

Still, it does confirm something else: that Apple has no problem competing with its outside developers.

One feature of Apple’s proposed patent for a hotel services application

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She’s also one of the hosts of CNET News’ Daily Podcast. In her non-work life, she’s a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur.