Kudos to news media that are trying to explain changes in airline elite qualification. But very few stories are able to cut through the rhetoric and explain the important changes clearly. A story in this morning’s USA Today is a perfect example. The article leads with Continental’s changes in elite qualification, counting only 50% of mileage flown at lower fare classes towards elite qualification (although leaving out Continental’s escape hatch for next year only – fares booked on the Continental website will still accrue 100% of mileage towards elite qualification). Then it notes changes at Delta and Alaska, and historical changes at Northwest and American. So far so good. But the article only alludes to problems of using fare class (as opposed to revenue) as a proxy for customer value: Continental’s new elite qualification rules…
Monthly Archives
Monthly Archives for September 2003.
If we didn’t have such high costs, we’d make more money
Gordon Bethune makes the stupid statement of the day. Bethune allowed that traditional carriers’ costs are higher, but said this was because staff are more senior than at low-cost carriers that have started up in the past few years. Continental recently calculated its 2002 financial statements assuming it had the same revenue and network, but the labor cost structure, of JetBlue. Instead of a $350 million loss, Bethune explained, Continental would have had a $450 million profit. The difference is “directly attributable to wage rates and seniority levels,” he said. Yup, it’s just the unfair advantage of a lower cost structure that makes JetBlue better off. Don’t blame us!This from the head of an airline that has had the cost-shaving advantages of two bankruptcies. Wonder who Gordo thinks negotiated those higher costs?
Welcome to blogging
Travel columnist Christopher Elliott has a new blog.
An Amusing Story
This guy was intimidated flying first class. I guess I didn’t know what to expect the first time I flew up front, either. But you get used to it very quickly.Once upon a time I used to walk back through the first class cabin to get to coach and I couldn’t imagine that I’d fly up front. I also didn’t understand how anyone could pay the prices the First Class commanded. I didn’t know that it was possible to use frequent flyer miles to get up there. I didn’t know about upgrade coupons. I didn’t even know that there were frequent flyer awards for first class. Mileage earning meant saving up 25,000 points for a domestic ticket, right?Now I’ve learned the error of my ways and I pretty much always fly up front. And I…
It’s not just JetBlue and the Defense Department
Most of the media’s attention to airlines divulging passenger data to the government has focused on JetBlue’s offering up information in violation of its own privacy policy and then covering it up.Something that’s gotten far less publicity is that NASA requested a significant amount of passenger data from Northwest Airlines. NASA initially denied having made the request but then confirmed it.Stonewalling by NASA and Northwest Airlines has left it unclear what information, if any, was actually shared and what was done with any information that was transferred.It does seem odd, though, for NASA to be entering the airline security game.
The future for our airline friends up North
Bidding for Air Canada has been narrowed down to two potential suitors. U.S. buyout specialist Cerberus Capital Management LP and a company controlled by Canadian businessman Victor T.K. Li. Both were among more than a dozen suitors that expressed interest in the insolvent airline, the company said, adding it hoped to make a final choice before the end of October. Air Canada, the country’s dominant airline and world No. 11, said it selected the two finalists because of the “higher enterprise and equity values” of their proposals as well as their lower completion risk. Potential deals preserve Air Canada’s ability to sell part of its Aeroplan frequent flyer program later to raise additional cash.But why would anyone want to make a C$700 million equity investment in a failing airline? The National Post offers an assessment…
Keeping track of your miles
It’s important to manage your miles and prevent them from expiring. Odds on if you’re reading this website, you don’t need a newspaper article to tell you that!But this article seemed like a good prompt to remind you about a free software program called Miletracker. It’s what I use to manage my frequent flyer miles. It checks all your accounts with a single click and can log you into any of them with a click as well.For a more full service option — including letting you know when your miles will be expiring (so you can do something about it before that happens!), letting you know about current bonuses, and even guaranteeing your mileage against unauthorized use — consider Mileage Manager. It comes with a (very) small cost but is likely worth it for many.
Do online hotel bookings save money?
The Newark Star-Ledger reports that online booking of hotels doesn’t seem to be saving consumers money. No doubt the median consumer isn’t as web savvy as some, and while there are savings to be had the article suggests that the savings are by no means automatic. It’s certainly possible to get four star hotels on the cheap online.The lower end properties show virtually no savings from online bookings. Of course, there’s alot less room to save on a Best Western than on a Ritz Carlton property.And it’s possible that the existence of online pricing prevents gouging at the direct reservation level as well. Nevertheless, it’s an interesting conclusion that deserves greater study.
General Accounting Office Report: Private Screeners Were More Thoroughly Tested Than Federal Screeners
Airport security screeners became federal employees, ostensibly because we couldn’t trust the quality of private contractors. But it turns out that under the old private system, the FAA ensured greater quality control than the TSA now does with federal screeners. The federal government isn’t testing the skills of airport security screeners as thoroughly as it did before the Sept. 11, 2001, terrorist attacks and needs to develop a recurrent training program, according to an investigative report issued Wednesday. The General Accounting Office report found that the Transportation Security Administration, which hired more than 55,000 airport screeners nearly a year ago, “collects little information regarding screener performance in detecting threat objects.” The agency’s covert team, which tries to determine whether weapons can get through a checkpoint, performs fewer tests than the Federal Aviation Administration conducted before…
What’s German for the Shuttle?
Flying US Airways? Credit the flight to your Lufthansa Miles & More account and earn double miles. Offer is valid for your first roundtrip between October 26 and December 31.
