It’s still a long-shot, but United requested a bid from Independence Air to operate as a United Express carrier. This is precisely the move being pushed for by Independence Air’s largest shareholder. The Washington Dulles-based low fare carrier has been losing buckets of money and warnings have been issued about a possible bankruptcy filing in January, a mere seven months after starting service as an independent carrier. FlyI used to operate as Atlantic Coast Airlines with most of their flying as the United Express carrier at Dulles and additional activity as a regional carrier for United at Chicago and for Delta at Boston (if I recall correctly, in this last case). The problems they face are several-fold. They decided to sell tickets directly to consumers, bypassing Global Distribution Systems. The model works well for an…
Monthly Archives
Monthly Archives for December 2004.
Accounting and Frequent Flyer Programs
Alaska Air made a $5.2 million accounting error in the third quarter related to its frequent flyer program. They sold a bunch of bonus miles to their partners and booked the revenue. That turns out to have been the problem — because their accounting practices require them to book revenue when the miles are redeemed rather than sold. That simple item may offer a window into the behavior of airlines offering award sales and alternative redemption options. In the case of award sales, customers are encouraged to book award flights they otherwise wouldn’t — allowing the airline to recognize revenue. In the case of alternative redemption options (such as magazines for miles or even points exchanges), the airline gets to book revenue even though it also has a cash cost. In this latter case the…
Swiss Service Fee
Starting January 3rd, SWISS will begin charging a “Swiss Service Fee” for booking tickets in its home Swiss market – including tickets purchased online. SWISS unveiled its new and more transparent 2005 Distribution Model to the travel sector back in June 2004. Under the new model, the price paid for any SWISS ticket will consist of two components, which will be shown separately on the ticket. The first of these will consist of the fare, all airport user fees and any other flight-related surcharges. The second will be the SWISS Service Fee. The new approach will enable customers to distinguish clearly between the price they pay for their journey by air and the service fee they are charged for the advisory, booking and ticket-issuing services provided by SWISS. Maybe they should charge a higher fare…
Season’s Greetings
Happy Holidays from United Airlines. Turn on your speakers. I have an inexplicable affection for Rhapsody in Blue.
Overstock discount
Overstock.com is offering 10% off through Monday night.
Q & A on Free Electronics
In response to several e-mail requests, I’m going to offer up a brief summary of the free electronics offers that are out there. Gratis Internet has six free offers that I’m aware of: Free Game System. Free designer handbag Free photo iPod. Free iPod. Free flatscreen TV. Free desktop computer There are several other ‘free stuff’ offers out there on the internet. Several of them are scams. They promise you computers or cameras in exchange for ‘testing’ products. In the end they all require money and I don’t personally know of anyone that has received products. Not so with the Gratis Internet offers. I’ve personally gotten an iPod, a television, and a computer and I haven’t spent any money. The way it works is that you sign up. Then they make several offers to you…
Q & A on Free Electronics
In response to several e-mail requests, I’m going to offer up a brief summary of the free electronics offers that are out there. Gratis Internet has six free offers that I’m aware of: Free Game System. Free designer handbag Free photo iPod. Free iPod. Free flatscreen TV. Free desktop computer There are several other ‘free stuff’ offers out there on the internet. Several of them are scams. They promise you computers or cameras in exchange for ‘testing’ products. In the end they all require money and I don’t personally know of anyone that has received products. Not so with the Gratis Internet offers. I’ve personally gotten an iPod, a television, and a computer and I haven’t spent any money. The way it works is that you sign up. Then they make several offers to you…
Q & A on Free Electronics
In response to several e-mail requests, I’m going to offer up a brief summary of the free electronics offers that are out there. Gratis Internet has six free offers that I’m aware of: Free Game System. Free designer handbag Free photo iPod. Free iPod. Free flatscreen TV. Free desktop computer There are several other ‘free stuff’ offers out there on the internet. Several of them are scams. They promise you computers or cameras in exchange for ‘testing’ products. In the end they all require money and I don’t personally know of anyone that has received products. Not so with the Gratis Internet offers. I’ve personally gotten an iPod, a television, and a computer and I haven’t spent any money. The way it works is that you sign up. Then they make several offers to you…
Delta American Express Bonus Offers
The Delta Amex is offering a 20.05% bonus on purchases in January, up to 10,000 bonus miles. Registration required. You can also earn triple miles for Delta purchases of $265 or more from February 15 to March 15, 2005. Registration required. These bonuses are in addition to double miles on retail purchases in February and the “always double miles” offered on certain purchases. Hat tip to Free Frequent Flyer Miles.
Bonus for Converting Hotel Points to British Airways
Converting hotel points into British Airways miles will earn a 50% bonus through January 31, 2005. The offer applies to points from Hyatt, Hilton, Starwood, Marriott, and Priority Club.