Monthly Archives

Monthly Archives for February 2013.

In Under the Wire: Should You Get the US Airways and American Credit Cards Now Before Any Merger?

In my discussion last week about the ten best credit card signup bonuses, many of the reader comments centered around what’s looking likely to be a merger between American Airlines and US Airways. Several readers asked, given the probability of a merger, should they get in on the US Airways card now? In general my answer is yes but not for the reason most people seemed to be thinking. Neither the US Airways card nor the American Airlines cards will go away right away. In fact I expect both cards to stick around for awhile. But getting them now may provide for the opportunity to get them again (including signup bonuses) before one of them disappears. Getting a 50,000 mile bonus from the Citibank American card and a 40,000 mile bonus from the US Airways…

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Looks Like We’ll Have to Wait Until Midweek for US Airways-American

From the ever-useful Dallas Morning News aviation blog The Associated Press, which Friday had been quoting sources saying the AMR board was scheduled to meet Monday and that the US Airways board would meet over the weekend or Monday, on Sunday said the meetings had been delayed. The AMR board wants to meet in person rather than have a telephone conference, and the US Airways board would take its vote after the AMR board does, AP reported. Reuters, which also been reporting a Monday meeting, said Sunday that “AMR needed more time to finalize details and the boards of the two airlines are now not expected to gather until around Wednesday, the sources said.” The drama has been going on for a year, I guess we can wait just a few more days.

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Do Alaska Airlines Miles Really Expire?

Expiring miles are an interesting thing, programs like them to expire because they hold the miles as a liability on their books and if they expire unused they both save themselves from the expense of redemption and also can recognize any remaining revenue associated with those miles. At the same time, programs like active, engaged members even more. Because those members are profitable, they make the programs profitable. Dormant members, though, not so profitable. Delta was one of the leaders in reducing the length of time it takes for miles to expire down from 3 years to 18 months. having done that, expired tons of miles, cleaned up their balance sheet they now say their miles won’t ever expire. Eighteen months is the ‘U.S. standard’ though with United and American maintaining that rule. And when…

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Bits ‘n Pieces for February 9, 2013

News and notes from around the interweb: Sequestration’s across the board budget cuts won’t affect travel in a meaningful way. I’ve made that case before, and now air traffic control isn’t even part of the Administration’s parade of horribles. Lufthansa Miles & More discounted awards for bookings by February 28 and travel through March 16. Details of Virgin Atlantic’s planned domestic U.K. service How Airlines Prepare for Big Storms

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We’re Number One! (But Don’t Actually Believe It)

@GrantMartin tweets Looks like @garyleff is back on top. The battle continues! He’s referring to this blog’s Technocrati ranking (and as compared to his Gadling). I don’t pay attention to rankings, and I don’t even often check the stats package for this blog or Google Analytics. I just write and hopefully some folks find it useful or interesting. And I suspect that the rankings for what’s the most influential blog in all of travel must be off and highly flawed even. I’m even more confident in that judgment when I see that Technorati lists me as having the 16th most influential blog in Living. … just a hair behind MTV Style and Fashionista. I did once skip the velvet rope at KU DÉ TA in Singapore. But that’s as close to being one of the…

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Bits ‘n Pieces for February 8, 2013

News and Notes from Around the Interweb: One 787 was allowed to fly yesterday. Some Singapore Airlines flights are offering 2 saver seats in ‘suites class’ (redeemable with Singapore’s miles, which can be reasonably transferred in from Membership Rewards or Starwood). Currently these awards can be found on routes to and from London, Melbourne, Paris, Sydney, and Zurich. Lucky reports the news of Air Canada’s new business class seat, the introduction of premium economy, and squeezing 10 across instead of 9 in their 777 economy cabin. Another Alitalia discount, this time 20% off but excludes USA, Canada, UK, France, Holland, and Libya. Book by February 13 for travel between April 5 and May 31. Points on the Dollar doesn’t like Travelocity’s price guarantee for airline tickets.

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Why Does Parker Get to Run the Show at a Combined US Airways/American Airlines?

Over at travelingbetter.com, EXP asks, As a layman, this is what I don’t understand: All of the reports that I’ve read indicate that rather than a merger, it’s actually AA that’s “swallowing” US. So, if AA is the stronger party (~75% equity vs. ~25% for US, keeping the name, the logo, the HQ, etc.), why does Doug Parker get to run the new company, essentially pushing out Tom Horton? If that’s indeed what ends up happening? Back in July, American’s Tom Horton was spreading the word that the merger was really his idea. That’s why July was the turning point for me in believing the merger was going to happen. Previously I thought it would be enough to forestall the merger that the combination wouldn’t actually make for a better, more profitable airline. But the…

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Why in the World is US Airways Increasing Award Prices NOW?

It’s been 3 years since US Airways made major adjustments to its award chart. During that time they’ve been dubbed ‘the official consolidator for Star Alliance premium cabin fares’ because of the speed at which they’ve been printing miles on the cheap — through major promotions and offers to sell miles at a deep discount (through outright purchase or transfers from one account to another). In other words, the thinking has been that US Airways has offered up so many miles that they’ve become a way to buy miles and obtain ‘distressed inventory’ (which partners release as awards) across the Star Alliance. Basically they haven’t just been rewarding loyalty with miles, they’ve been selling partner award tickets for cash with miles as the intermediate form of currency. Given the production of so many Dividend Miles,…

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Starwood/Delta News Even Bigger Than We Thought: Benefits and Earning Goes Both Ways

Yesterday news leaked that Delta was introducing benefits for Starwood Preferred Guest elite members: Golds and Platinums can earn 1 Starpoint per dollar spent on tickets (or a fixed 500 points per segment in some cases) and Starwood Platinums will receive many of the benefits of entry level elite status — priority check-in, priority boarding, and free checked bags. It turns out the leak was incomplete (and in one instance incorrect), and now we have the rest of the story. First, the relationship is reciprocal, because Delta elite members will also earn miles in addition to Starpoints on their Starwood hotel stays. And second because the rumor that Starwood Platinums would receive day of departure upgrades on Delta (after every last elite in the queue had cleared) was incorrect. Presumably that was discussed at one…

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