This opinion column trashing KLM’s service to Ghana is a fun read, but even more enjoyable is KLM’s point-by-point refutation.No doubt the original author gets some details wrong and KLM uses that to cast doubt over the whole story. And some of KLM’s claims may be unfair, suggesting that since the author isn’t a member of the airline’s frequent flyer program that they must not have actually flown the airline (when they could simply have not sought frequent flyer credit, or credited their flights to a partner airline’s program).Nevertheless I wish there was a greater dialogue like this on the part of airlines instead of marketing platitudes. It’s refreshing to see a major corporation go on the attack with specifics.
Monthly Archives
Monthly Archives for July 2004.
Credit Cards are Big Business
I earn a plurality of my miles from credit card spending. And Inside Flyer has reported that more miles are earned nationwide from credit card spending than from flying (actual flight miles, not counting elite bonuses and other special promotions). One indication of how big the credit card business is: the domain name CreditCards.com has been sold for $2.75 million.
But low fare carriers aren’t a magic bullet for success
Airtran is pulling out of Piedmont Triad International even though they’re running at about 80% load factors. Airtran also pulled their Washington Reagan-National to West Palm Beach flights almost immediately after their introduction (inconveniencing me!). It’s worth remembering that in spite of the conventional wisdom that the low cost carriers can do no wrong, not every business decision works out for them. But at least pulling out of a market is a sign that they care about profitability and are willing to make tough and even embarassing decisions in furtherance of their bottom line, a lesson that the major carriers need desperately to learn.
Conventional Wisdom Explained
It may be obvious, but low cost carriers are now driving the airline industry. In a business in which everyone sells the same thing, the low-cost producer usually comes out on top. It took 25 years, but that is exactly what has happened in the airline business. … Give the major airlines credit: They managed to hold off the challengers for an awfully long time. They used their muscle at big airports to deny gates to the upstarts. They employed frequent-flier programs to build brand loyalty. And they kept a stranglehold on the business traveler, the guy who would pay $2,300 to fly round-trip from Boston to Los Angeles. … The discounters kept getting bigger. In 1993 they flew 8.4 percent of the nation’s passengers. By 2003 their market share was up to 21.7 percent.…
Donating frequent flyer miles
It’s great to see newspapers recommending the donation of frequent flyer miles. It’s a great way to feel good for folks with large balances, and for those whose miles are expiring it’s better than letting them go to waste (although there are certainly easy ways to extend the life of miles in almost all circumstances — most carriers require only some account activity every three years, I might transfer 125 miles into an airline account from my Radisson Goldpoints account for instance).The options for donations are far more varied than the piece suggests, offering only two choices. A good place to check out is MileDonor.com which serves as a clearing house for donation information.
Automated Checkin Kiosks to Roll Out at Vegas Hotels
Las Vegas’ McCarran airport has check-in kiosks which serve multiple airlines, a departure from the standard practice of each carrier having its own proprietary system. The system will get a boost at the end of July when American Airlines and JetBlue Airways join the SpeedCheck system. They’ll join AirTran, Alaska, Aloha, America West, Continental, Delta, Midwest, Northwest, Song, Southwest, Ted, United and US Airways, which are already on the system. This fall the kiosks will be rolled out to local casino resorts on a test basis, beginning with three as yet undetermined properties. Travelers will be able to checkin and check baggage at their hotels. Currently some airlines offer this service through their own proprietary system at some airport hotels close to their hubs. If memory serves, United offers this at the O’Hare Hilton and…
Who should read this website?
Honeymooners!
Modifed Recommendations for Luxury Travel on the Cheap
USA Today interviews Joel Widzer, author of The Penny Pincher’s Passport to Luxury Travel. As is so often the case, the advice is almost on target but a bit incomplete. Being a regular customer, or just being nice, can get you an airline passenger upgrade. Elite status with an airline (regular customer) matters most, as long as you follow the rules for receiving upgrades. Most upgrades are processed automatically, so it’s more about rules than interaction. Make sure you know what the airline offers — free domestic upgrades versus paid for with cash or certificates, a certain minimum fare required, etc. And make sure to request the upgrade explicitly. Each airline has their own procedures.“Being nice” certainly helps, especially combined with status, at the airport on the day of departure. Sometimes an airline has to…
Update on the Free Flatscreen and iPod
A quick update on the Free Flat Screen and Free iPod offers. (Details of the offers below.) I’ve completed all the tasks for the iPod and I’ve placed my order. I’m told the order is in progress. Not bad for a few minutes work. I have all my needed referrals for the Flat Screen offer. I haven’t completed my own part, though, because I get a recurring error “Not Logged In.” So I’m very close to the finish line and I’ve had a problem that no one else seems to have encountered. I’ll try from another computer tomorrow. Still, these are turning out to be quite lucrative.
United Gets $1 Billion in Loans
United is set to receive $1 billion in loans and may stay in bankruptcy through June 2005.That pretty much proves the point that United has access to private capital markets, contrary to claims made in furtherance of their failed application for government-backed loans. The key difference is that had they gotten the government-backed loans, they would have quickly emerged from Chapter 11 without finishing the job of cost cutting.By going to the private market for funding, they’re being forced to make painful cuts in order to become profitable.
