Monthly Archives

Monthly Archives for January 2005.

Independence Air Has Breathing Room, Too

by Gary Leff

independence air
Jan 22 2005

The year started with a bleak outlook for Independence Air, as news broke that they had missed an interest payment on some bonds leading to speculation that they were close to a bankruptcy filing. (If they were going to file for bankruptcy there was no reason to make the payment, and they’d want to conserve cash in any case.) Then they announced plans for job cuts, renegotiated lease payments on aircraft, agreed to return some aircraft, and obtained a loan from GE. All of this bought some breathing space for the carrier, though did little to improve their revenue outlook. But my opinion of the carrier is somewhat boosted by two big bets being made on the carrier by Wall Street heavyweights. Regulatory filings late Friday indicate that two major hedge funds have acquired 12.5%…

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USAirways Gets Some Breathing Room

by Gary Leff

usairways
Jan 22 2005

Members of the machinists union at USAirways approved pay cuts. They were the last union to do so. Coupled with the bankruptcy court’s decision to allow USAirways to draw on the cash behind its federally back load guarantee, the airline has been given a few more months of life. There’s currently no indication that they’ll return to profitability, especially since March is generally their lowpoint in cash for the year. But I don’t see an immediate liquidation threat. In other words, it should be fine to book February flights on the airline.

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Surely this must make sense in some parallel universe

by Gary Leff

airport
Jan 22 2005

The Hagerstown, Maryland airport currently serves an average of fewer than 45 passengers a day. So it may be no surprise that the airport is currently slated to lose commercial service on April 30. But they’re spending $60 million to upgrade the runways for bigger planes starting in April anyway. And bizarrely enough, the fact that they’re losing all service is seen as bolstering the decision to invest in support for larger aircraft.

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Two New Free Electronics Offers

by Gary Leff

free electronics
Jan 21 2005

Gratis Networks, the semi-secret company behind the free electronics offers like the free Photo iPod, looks like it is beginning to come out of the closet. Their corporate website now features a blog with updates on their offers and newsclips. It makes for an interesting read, as they’ve been covered across the mainstream media. It also signifies a bit of a shift for them, I think. They seem to have tried to fly a bit ‘under the radar’ in the past, making it difficult to find out who or where they were. Part of their business model has been to keep everything automated and to provide nearly no customer service whatsoever. I wonder whether that’s changing. I have had absolutely outstanding luck with them. I’ve received an iPod, a Photo iPod, a flatscreen TV, a…

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Too many miles chasing too few seats (so burn as you earn)

by Gary Leff

airplane
Jan 20 2005

Back in November I explained why mileage award prices will go up, now and in the future, because there are simply too many miles chasing too few seats. This new piece (originally in the Boston Globe and then syndicated) outlines the current state of the phenomenon. Frequent-flier miles are easier to come by as airlines sell more miles to partners like credit card companies and hotels, but they’re harder than ever to redeem. Behind-the-scenes deals with corporate partners are helping cash-strapped airlines rake in millions of dollars at a time when high fuel costs and lower fares are killing their bottom lines. At the same time, these deals give companies that buy miles a sought-after incentive to offer their customers. But frequent-flier club members shouldn’t think all the freebie miles they’ve racked up will add…

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Foot Locker Discount

by Gary Leff

FootLocker has a printable coupon for 30% off valid from January 21 – January 23. It can be used online as well with promo code FF05EM01. There’s a similar printable coupon for Foot Action and Champs Sports.

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Northwest Enhances its Website – in a Good Way

by Gary Leff

nwa-planes
Jan 18 2005

Another reason that I picked Northwest for Best Website in the Freddie Awards balloting — they’ve just introduced online redemption for upgrade awards. Most airline programs won’t even tell you when upgrades are available. Most won’t even display their upgrade inventory buckets publicly in the Global Distribution Systems. They keep the information proprietary and you have to call and and waste tremendous amounts of your (and their agents’) time. Sure, there are workarounds. With United you can search for award travel in expert mode and the upgrade buckets appear (e.g. X is the first class upgrade bucket, I is for upgrading to business class). But nothing replaces good ‘ol functionality, and it looks like Northwest has got it.

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