American Express is providing a $100 million loan and prepaying $500 million for Skymiles. The loan is presumably part of Delta’s process lining up debtor-in-possession financing for a bankruptcy filing. Today’s 8-K filing details the transaction in substantial detail. American Express, of course, issues the co-branded Delta Amex cards, Delta is a key partner in the Membership Rewards program, and Delta benefits are key to the Platinum and Centurion products. In other words, Delta needs to keep flying for American Express’ profitability. When United filed for Chapter 11, BankOne which issues the United Visa, provided $600 million in debtor-in-possession financing. Frequent flyer miles are truly big business. We’ve reached a situation where airlines need to exist for banks’ profitability if for no other reason.
Monthly Archives
Monthly Archives for October 2004.
Phillipine Airlines Offers Lifetime Elite Status… who knew?
Million miler programs are a bit mysterious. Some airlines reward their frequent flyers with lifetime status after accumulating one million miles. United offers Premier Executive (mid-tier) elite status after one million flown miles. Delta offers Silver elite after one million flown miles, Gold elite after two million flown miles, and Platinum Elite after four million flown miles. American offers lifetime Gold status after one million miles accumulated in a frequent flyer account from any source, and lifetime Platinum (mid-tier) elite status after two million miles accumulated in a frequent flyer account from any source. (Though I understand they are reconsidering this and may switch over to flown miles only – but that’s just a rumor.) In addition to lifetime status, there’s usually a few upgrade certificates to mark the milestone. The reason the programs are…
250 Free Aloha Miles
Enter promotion code ALOHA and your Aloha Airlines frequent flyer number when enrolling in the Prince Resorts membership program. Through December 31st you’ll receive 250 free AlohaPass miles.
More on the Amex Black Card
For folks with an interest in the legendary American Express Centurion (“Black”) card, check out this page of benefits for British Centurion card members. (There is currently no U.S. Centurion website, but I understand one is in the works.) U.K. Centurion cardholders could have gone to the Emmy awards, attended a part with the cast of the Sopranos, and had lunch with Hilary Swank.
The TSA Should Compensate Passengers with Frequent Flyer Miles…
A Tongan noble was awarded 10,000 Air New Zealand Airpoints when he was held up 45 minutes at checkin while his identity was verified. As a noble from Tonga, he uses only one name.
Useful computer tip of the day
Via the Knowledge Problem, Google has a new downloadable tool to search your hard drive.
10% Off at AA.com
Participants in Race for the Cure receive a discount code that is valid for 10% off American Airlines flights booked at AA.com for travel through December 31. You must sign in with your AAdvantage number and enter the promotion code 4D12KD on the confirmation page. This code is valid on tickets of $160 and up (not including taxes and fees). Some fares are ineligible, but my experience is that you can’t always predict in advance which ones those will be — you just have to price out an itinerary to see.
Hotels You’ll Never Stay In
The Ryugyong Hotel in Pyongyang was estimated to cost 2% of North Korea’s GDP to construct. It’s 105 stories tall and incomplete. Construction halted in 1992, perhaps for lack of funds. It has 3000 rooms in a country and city with little tourism. Though it can be seen from every part of Pyongyang, it has been removed from the city’s maps.Hat tip to Marginal Revolution.
Membership Rewards Partners with JetBlue
Via Notiflyer, JetBlue has partnered with American Express Membership Rewards. Beginning December 8th, 1,250 Membership Rewards points will transfer to five JetBlue TrueBlue points.The Notiflyer headline highlights that this is JetBlue’s first partner for its mileage program.More important to me is that this represents the addition of another partner for American Express which has been slowly bleeding partners without any additions. Northwest left the program. TWA doesn’t exist anymore. Marriott is leaving at the end of 2004. The program seemed to be dying on the vine, with fewer partners and fees on mileage transfers imposed seven months ago.The addition of JetBlue to the folks at least gives me some hope and confidence that American Express is still trying to build their program and deliver value.
Double Alaska Miles on Alaska and… Delta
Alaska Airlines is offering double miles on all Alaska, Horizon, and Delta flights between November 1 and December 15, 2004. Registration is required. This is great news for Alaska flyers — and non-elite Delta flyers should consider crediting their flights to Alaska Mileage Plan during the promotion period. Including Delta in the double miles promotion is meant to highlight the new partnership between the two airlines. Beginning November 1 the two airlines offer reciprocal mileage earning and burning opportunities.
