Notiflyer has an update on the United-Sony music download site I reported on last week which will allow Mileage Plus members to earn frequent flyer miles for buying songs or spend miles instead of money for song downloads.Here’s the money quote: “What Connect has finally done is beat the pirates at their own game to offer better-quality files without consumers having to spend a dime,” said Jay Samit, Sony Connect’s general manager. Online micropayments have failed as a business model thus far. Could miles as currency revolutionize e-business and save the music industry from itself?
Monthly Archives
Monthly Archives for January 2004.
A new Priceline commercial…
… boldly going where others went, 40 years before — starring their perennial pitchman William Shatner and Leonard Nimoy.
Another sign points toward the end for USAirways
USAirways is going to charge its lounge members a premium to access partner lounges. On April 1, US Airways will begin charging three different fees for use of airport lounges by new frequent-flier members. The carrier says it will lower the rate for use of just US Airways lounges across the country and in London’s Gatwick Airport. The current cost is between $260 and $450 a year, depending on the number of frequent-flier points a traveler has accumulated. An additional fee will be required of those who want access to United lounges, and a still-higher fee will be charged for use of the rest of the Star Alliance members’ lounges. Current US Airways frequent fliers won’t face the increases until Sept. 1. US Airways spokeswoman Amy Kudwa declined to disclose the amounts of the price…
Delta matches American on “Fly 2 Get 1 Free”
Delta is matching American’s buy 2 get 1 free offer for taking flights between Boston and New York and Florida or California.
Is the Hero Miles program still necessary?
Operation Hero Miles allowed frequent flyers to donate their miles for American troops to use. The federal government was flying troops back to the US but not paying for their domestic flights home. But now the Pentagon is covering those costs. Folks behind Operation Hero Miles, though, still want to keep it going. Now that the Pentagon is covering those costs, Ruppersberger says Hero Miles are still needed for troops on emergency leave and to help families visit their loved ones at 14 military hospitals around the country. Ruppersberger says he will contact the airlines participating in “Hero Miles” to explain the continuing need and encourage them to continue their support of the effort. So far, American have donated more than 400 million frequent flyer miles – equal to 16,000 free round-trip tickets. I think…
Air Canada faces constraints on selling its frequent flyer program
Reported in Canada’s National Post: GE Capital Aviation Services could receive part of the proceeds of a sale involving Air Canada’s Aeroplan, according to terms of the US$1.5-billion financing pact between the U.S. company and the carrier. … Under the agreement, GECAS will provide the Montreal airline with US$1.5-billion in financing, designed to help Air Canada emerge from creditor protection and acquire regional jets. One of the wrinkles in the agreement stipulates that should Air Canada sell 100% of Aeroplan — its popular and cash-producing frequent-flyer program — to another investor, it is obliged to set aside 25% of the proceeds, or no less than US$125-million, for GECAS. The money will go toward paying down loans supplied by the aircraft lessor. However, if Air Canada, during the first six months following its exit from bankruptcy…
American’s Big Offer
I’m a bit late to the party reporting on this (busy with work), but it’s worth noting even a few days late that American is offering one of the most lucrative flight bonuses around. American Airlines yesterday launched a “buy two, get one free” promotion that’s aimed squarely at Forest Hills-based JetBlue Airways and other discounters. The offer covers members of American’s frequent flyer club who take two roundtrips by April 15 between Boston or New York and destinations reachable nonstop in Florida or California. Doing so earns them a free coach class roundtrip ticket, including international flights, redeemable until April 15 of next year. The free trips have to be booked 14 days in advance and must include a Saturday night stay. These trips are on top of the usual frequent flyer miles earned…
An interesting but hardly humble man
Last month Business Week ran a three part interview (Part One, Part Two, Part Three).Interesting, fun read, mostly for the reminiscences. One quibble that I have, though, is that Kelleher boasts about Southwest’s employee stock ownership plan but it’s my understanding that he was initially vigorously opposed to its creation.There’s nothing inherently inconsistent about that. It’s wonderful when a manager admits their error and becomes a champion of a successful idea. But Kelleher isn’t the most humble of men. And though he notes the timeline of taking of the reigns of Southwest Airlines in 1982, he never mentions the names of any of the other founders.
Worldwide airline industry recovery
A current feature in Air Transport World predicts significant recovery for the airline industry in 2004, with worldwide net profit of $3.2. The driving factors will be stronger economic growth and lower fuel costs, offsetting lower yields resulting from expanding low cost carriers.
Elite changes and what they mean for first class upgrades
I’m not usually a fan of the First Class Flyer website. I find it rather schmaltzy. But they currently have a good roundup of elite level changes for 2004 across the major airlines (none of which should be news to readers of this blog, but it’s a good summary nonetheless).
